Latest News
-
QatarEnergy is seeking US LNG deals until 2031, according to sources
QatarEnergy has been in talks with several producers about securing multi-year contracts for?U.S. Three trading and industry sources said that QatarEnergy is negotiating with several producers to secure multi-year?U.S. Two of the sources cited said that discussions were held with Venture 'Global, Cheniere, and Woodside. Sources said that the contract talks were part of QatarEnergy's effort to replace volumes lost from its Ras-Laffan facility, after Iranian strikes damaged two of its 14 gas-to liquids (GTL), and two LNG trains. QatarEnergy has also changed its approach from purchasing dozens of U.S. LNG spot cargoes in order to meet commitments with some of their Asian clients. The company is now looking for longer-term solutions. QatarEnergy CEO Saad al-Kaabi stated in March that repairs will sideline 12.8 millions tons of LNG capacity per year for three to five more years. QatarEnergy, which halted production back in March, has issued force majeure notifications every month. The most recent extension was to November. Further?extensions are possible, as the Strait of Hormuz is still closed, according to the sources. QatarEnergy Trading is the trading arm of QatarEnergy, which managed 10 million tons of LNG for the company. One source said that the company was looking to achieve 2-3 millions metric tons annually through 2031. A fourth source stated that "They'll have to buy anything they can." QatarEnergy has not responded to an immediate request for comment. Venture Global, Cheniere and Woodside LNG declined to comment. Saul Kavonic is the head of energy research and advisory at MST Marquee. He said that Qatar sees a risk in their ability to export LNG over several years. He added that "it signals that Qatar believes the disruption of Strait of Hormuz could be longer lasting and the damage to Qatari's LNG infrastructure has been more extensive than originally hoped and repair may take longer." Around 80% of Qatar LNG exports are usually exported to Asian buyers. Many clients in Asia began to look for alternatives to Qatari gas due to the uncertainty surrounding when flows will resume through 'the major waterway. According to a fifth party, some market participants are testing scenarios where no Qatari gas will be available.
-
Oil tanker prices reach record highs after US and Iranian shipping attacks
This week, the cost of'shipping' oil in the largest tankers reached record levels following the most intense wave of attacks against shipping since the U.S. - Iran war began late in February. According to Baltic Exchange, the shipping rate for supertankers, also known as very large crude carriers (VLCCs), loading oil in the Gulf of Oman to be shipped to China, reached around 450 on Worldscale, which is?roughly?$11.50 per barrel. The rate is at its highest level since it was introduced earlier this year after the U.S. and Israel war against Iran. The increase in rates is a sign of 'how the Middle East conflict feeds into the wider economy. The rise in shipping costs could add to inflationary pressures, and increase costs for consumers and businesses already feeling the effects of a growing conflict. Iran announced on Wednesday that it had launched 10 attacks near the Strait of Hormuz, after the U.S. destroyed five Iranian oil tanks. Four Yemeni government officials said that the Houthis, who are aligned with Iran, reached Perim, a strategic island in the Bab El-Mandeb Strait on Friday, possibly tightening their hold on one of the world's most important shipping routes. Ioannis Pandimitriou, analyst at Vortexa, said that "repeated attacks between the U.S. Navy and Iran continue to push freight rates in the Gulf up to new heights." Papadimitrou said that the higher risk of operating in the Middle East Gulf and the surrounding area is driving up the Gulf of Oman's freight rates, out of fear of Iranian reprisals. This naturally reduces the number of available tankers in the region. The recent military escalation is having a wider impact, with VLCC rates also reaching record highs on the West Africa-Asia route.
-
Travel chaos caused by the protest of Polish train drivers who slow down during safety demonstrations
On Friday, Poland's railways were impacted by widespread disruption as train drivers protested safety concerns and slowed down their trains. Around two thirds of services experienced delays on what is one of the busiest weeks of the year. A train that hit a truck and derailed at a level-crossing in central Poland Wednesday killed one person and sent 10 to the hospital. This is just the latest of a series of accidents caused when road users ignore warning signs. "We do not view this as protest but as an act of desperation," said Sebastian Piernik. He added that the union's demands for safety were?ignored in the past. "The fundamental problem is to ensure that drivers are held accountable for crossing the tracks at a time when there's a red signal." Train drivers at all level crossings slowed to 20 kilometres an hour (12 mph), as part of the protest that lasted until Friday noon local time. As a consequence, train operator PKP intercity reported that as of 12 p.m. (1100 GMT), 203 of 290 services?faced delays averaging 38 minutes. Alicja Kiman, a resident of Gdansk, said that she wasn't surprised by the protest because?motorists are?often reckless. She said, "I've seen garbage trucks break the barrier twice - forcing themselves in when it was closing." The government announced that it would introduce harsher 'penalties for drivers disregarding warning signals at crossings, and it spent hundreds of millions?zlotys to improve safety. Dariusz Klimczak, Infrastructure Minister, told reporters that "these changes will result in the risk of losing a driver's licence" for drivers who enter a road/rail crossing with RED light on.
-
Gains in UAE shares as oil supply concerns fuel regional conflict
The UAE stock market closed higher on Friday. Dubai was the best performer in its region, aided by a sharp rise in oil prices. Attacks on Middle East shipping routes have fueled concerns about supply disruptions. Crude oil was on track to gain over 7% this week while U.S. Diesel prices reached a record. The Strait of Hormuz remains closed to oil as Iran and the U.S. trade attacks. Meanwhile, the Houthis, who are aligned with Iran, have taken control of Yemen's Mocha port, which threatens Saudi oil exports into the Red Sea. Preliminary ship tracking data on Friday showed that the number of vessel transits in the Strait of Hormuz dropped to seven on Thursday, from eleven the day before. This is well below the 10-day average of 15 Brent crude, the main driver for Gulf economies, fell 3.6% to $103.75 per barrel by 1056 GMT. Dubai's main stock market gained 0.6% following two sessions of losses, thanks to a 4.2% surge in the top lender Emirates NBD Bank. Utility firm Emirates Central Cooling Systems Corporation also rose by 1.9%. National Central Cooling's shares fell by 2.1%, however, after the announcement of Yousif al Hammadi becoming its new CEO. Abu Dhabi's benchmark Index edged up for the fourth consecutive session by 0.03%, supported?by a rise of 3.6% in investment firm Two Point Zero Group owned by IHC. Adnoc Logistics & Services, a state-owned energy shipping company, grew by 2.9%. Meanwhile, energy infrastructure developer NMDC Group grew by 3.5%. The index's gains were capped by a 5% decline in Fertiglobe, a chemical manufacturer, and a 1.5% drop in First Abu Dhabi Bank, the largest lender. Six people with knowledge of the matter said that the United Arab Emirates is quietly revising its plans for a 5-gigawatt AI Data Center?project, one of the largest outside the U.S., after the Iran War prompted a reconsideration of where and how critical infrastructure should be built. According to LSEG, the Abu Dhabi Index and Dubai Index both recorded weekly gains of 1,4% and 1%, respectively.
-
Turkish Minister says Turkey and Azerbaijan are aiming to sign a deal on a power transmission line in Europe by November.
Alparslan Bayraktar, the Turkish Energy Minister, said that Turkey, Azerbaijan, and other participating 'countries' aim to sign an agreement for a power transmission link to europe during COP31 - the climate summit, in November. The electricity corridor would allow surplus electricity from Azerbaijan, Georgia, and Turkey to be exported to Southeast Europe. Bayraktar said at the Azerbaijan and Turkey Energy Forum in Baku that "this is a TANAP on a regional scale" referring to the?pipeline that carries Caspian gas through Turkey to Europe. Bayraktar stated that the participating governments aimed at finalising an intergovernmental agreement regarding the overland electric corridor during the United Nations COP31 Climate Conference in Antalya, in November. Turkey and Azerbaijan want to use their geographical positions and existing energy ties to become major exporters of green electricity as European countries diversify and pursue decarbonisation goals. Azerbaijan is 'further planning to build a regional power bridge connecting Central Asia with Turkey via the 'Zangezur Transport Corridor, said?country energy minister, Parviz Shahbazov.
-
AirBaltic has postponed a key bondholders meeting
In an email, Latvia's airBaltic> announced that it had rescheduled the meeting of its?bondholders, which was scheduled to take place on Friday. The airline stated that the bondholders meeting had been postponed in order to give bondholders more time to review and submit their voting instructions. The virtual meeting will now take place on September 15th. The Latvian government, which owns the majority of the carrier, has said it will seek financing from bondholders in a bid to avoid default. AirBaltic asked bondholders on Friday for approval of a plan to raise EUR257,000,000 ($298,000,000) via new super-senior bonds due in 2027. The airline is a 'test case' for the wider market, where weaker operators who struggle to re-pass on increased costs are most affected by the soaring jet fuel price caused by the Iran War. Analysts said that the rise in yields could be due to a 'priority' given to new bonds over notes due in 2029.
-
Myanmar's Mandalay Airport shuts down after drone attack
According to a major domestic carrier, flight operations at the airport international serving Myanmar's 2nd largest?city were shut down following a drone strike on 'Thursday' by rebels fighting the country's military in a long-running civil war. Myanmar Airways International announced on its official page on Facebook late Thursday night that all international flights into and out of Mandalay's Tada-U International Airport had been temporarily suspended. Domestic flights will be?transferred until further notice to another airport for "operational" reasons. An official from Myanmar Airways International's Bangkok office, who declined to give their name, said that flights to Mandalay on September 11 and 12, are cancelled. The airport is closed, so the flights have been cancelled. Global New Light of Myanmar, the state-run news outlet, reported that security forces thwarted a terrorist attack by the People's Defence Force (PDF), a prodemocracy militant organization, who fired six suicide drones from 'first-person' view at an airport. The attack caused a temporary disruption of some domestic flights. The newspaper reported that no injuries or damage was caused to airport runways or vehicles. Local media reported that the resistance was targeting military jet fighters on the airport. Could not independently verify the situation. Since the February 20, 2021 coup that ousted Aung San Suu Kyi's elected government, Myanmar has been engulfed in conflict. This has triggered a national resistance movement which has developed into a civil war involving the military with a variety of ethnic groups armed and pro-democracy militas. Min Aung Hlaing was the former head of Myanmar's junta and was elected president in April by a parliament backed by the military. This formalised his hold on power following five years under army rule.
-
AirBaltic has postponed a key bondholders' meeting
AirBaltic, a Latvian carrier, has rescheduled the'meeting with bondholders scheduled for?Friday. The majority-owned airline by the Latvian government has stated that it is seeking funding from bondholders in order to avert default. AirBaltic asked its bondholders on Friday for their approval of a plan to raise EUR257m ($298m) via a new super-senior loan due in 2027. The virtual meeting will now take place on the 15th of September, without further explanation. The airline is a good test case for the broader airline market, where weaker operators who struggle to pass higher costs on face the greatest pressure due to the rising jet fuel prices caused by the Iran War. The new bonds will be given priority in repaid from collateral, which includes eight aircraft and seven engines. Notes due in 2029 are ranked third. Analysts believe this could have been the cause of a spike in yields this week.
Mali's Barrick hardball talks are being driven by two former Barrick employees
According to sources familiar with the discussions, two former Barrick Gold executives who have inside information about the Canadian miner's operations in West Africa help drive Mali's demand for a payment from the Canadian company of approximately $200 million.
Mamou and Samba Toure were both employed by Randgold in Mali, now part of Barrick, which is a mining firm.
Mali's military government, which seized in December three metric tonnes of gold worth approximately $245 million from Barrick, has given miners until Saturday midnight to respond to their demands.
According to a source with knowledge of the situation, it wants Barrick pay back taxes totaling 125 billion CFA Francs ($199m) according to a source.
Source: If the deal is finalised Mali will return the gold seized and release the four Barrick executives who have been detained since November.
Barrick has publicly announced that he is a member of the Barrick
rejected
The charges brought against its employees are not specified. According to the court documents reviewed by, these include money laundering and funding of terrorism.
Barrick declined to answer any questions regarding the current status of the negotiations, and the Mali mines ministry also did not respond.
The dispute will have ramifications on global miners, foreign investors and others who have invested billions of dollars in West Africa. They are now being forced to follow a different set of rules because the military governments of Mali Niger and Burkina Faso want a larger share of mining revenue.
Beverly Ochieng is senior analyst at Control Risks for Francophone Africa. She said that the standoff with Barrick shows just how far governments led by military forces in the Sahel region are willing to go in order to force foreign operators to adhere to new regulations aligned with their pursuit of resource nationalism.
We spoke with more than 20 people, including mining executives and consultants, diplomats, and people who had direct knowledge of the discussions, to get a better picture of the negotiation. Sources requested anonymity due to the sensitive nature of the situation.
Nine people with knowledge of the situation say that the two Toures form part of a small group on the Malian front, including junta chief Assimi Goita and the Minister of Finance and Economy Alousseini Sanou.
They are not related, despite sharing a common surname. Samba Toure was older than the other two men by several decades and was West Africa Operations Director at Randgold. Mamou worked as underground manager at the Loulo Mine.
Sources said that Mamou is the most influential negotiator in Mali due to his close relationship with the powerful Finance Minister Sanou.
Mamou’s Iventus consultancy won the contract for auditing foreign mining companies in Mali. This led to the new mining code of 2023 and the renegotiation of the miner's contracts. Samba works now for him in the consultancy.
Mamou is the current boss, said a former co-worker. Samba's technical and managerial expertise was still crucial to decision making. "The decisions are made more by Samba than Mamou."
Mamou responded to detailed questions by saying that gold production has not benefited the Mali people as it should for many decades. Mali is Africa’s second largest gold producer.
He said, "It's only natural for the state to ask for a correction." "The state made great efforts to reach an accord, which is the reason all other companies reached an agreement with state."
Samba Toure has not responded to a comment request.
ACRIMONIOUS TALKS
Barrick's talks have been acrimonious, while other Western miners, including Canada's B2Gold, Allied Gold, and Australia's Resolute, have reached deals with Mali over the past few months.
Legal disputes, arrests, nationalisations, and threats are being used by the military governments of Mali, Niger, and Burkina Faso to strengthen their ties with Russia and gain greater control over gold and uranium.
Ochieng of Control Risks, however, said that this did not mean Western operators would be unwelcome. She said that several western mining companies were allowed to expand their operations and acquire new assets, provided they met the latest taxation and regulatory demands.
The Mali junta, which will take power in 2020 has pledged to examine its mining industry so that the state can benefit from gold prices at record highs.
Some companies, such as B2Gold, were able to reach an agreement quickly. Some companies, such as Australia's Resolute whose CEO was arrested while in Mali to hold talks, took a little longer.
B2Gold said it would proceed with its planned investments at its Fekola complex this year after achieving the deal. Resolute said on Thursday that its deal with the Mali government would allow for better collaboration as the mine is developed.
The relationship with Barrick deteriorated in the last year. Barrick paid 80 million dollars to release four Malians who were arrested by the authorities in September. Mali demanded more payments, as it is owed a total amount of $350 million.
Barrick generated $949m in revenue in the first nine-month period of last year from its operations in Mali.
Bristow announced in early November that it had agreed to offer Mali 55% economic benefits from the Loulo-Gounkoto mining complex, similar to the agreement struck by the miner with Tanzania five years earlier.
Mali demanded that the remaining amount be paid in one go, rather than in installments. Mali began to block Barrick's imports in early November.
Mali claims that Barrick still has 125 billion CFA Francs to pay after discounting VAT credits.
Mali issued a warrant of arrest for Barrick CEO Mark Bristow in December 5 after four Barrick employees were again detained when no payment was received.
Contacts continued in the background. On Dec. 6, a source who spoke with Barrick senior management said that Barrick was on the verge of paying a second 50 billion CFA tranche. The payment never materialized and the conversation ceased. On Tuesday, formal talks resumed.
Freddie Brooks is a metals & Mining analyst at BMI. A FitchSolutions Company. He said that Barrick, under Bristow, had the highest level of tolerance for operational risks among major miners.
He said that if they failed to negotiate a deal with Mali's junta military, it wasn't for lack of effort.
CLASHES WITH BRISTOW
Samba Toure left Randgold nine years ago, after an argument with Bristow who was the CEO at that time.
Samba's rift grew after he resigned and was denied the right to sell his Randgold shares, based in London.
Mamou Toure left Randgold after a dispute in 2015 with Bristow regarding the use of foreign contractors.
Barrick declined to comment on the circumstances surrounding the Toures departure.
Mamou's company Iventus Mining won the consulting contract when the government announced that it would audit the mines. Two sources claim that Samba Toure was the one who led the audits.
Samba became chairman of the board in 2022 after Mali established a state-owned mine, SOREM. Mamou was appointed as a member.
However, the influence of Toures cannot be denied. Last summer, junta leader Goita grew frustrated with the negotiations and brought in the director of state security, Modibo Kone, one of the five colonels-turned-generals who lead the junta, one source said. Kone's participation in the talks was confirmed by a second source.
According to a source familiar with these talks, at least once, the Finance Minister has taken over the negotiations and told Mamou to step down when he had gone too far in his requests.
Five sources claimed that the Mines Minister, a technocrat without any military ties, had been marginalized. Mamou, however, denied this, pointing out that the ministry has two members on the commission. He said that the commission receives its orders both from the Finance Ministry and the Mines Ministry.
The Mali finance ministry and the presidency have not responded to any requests for comment. The state security service could not be reached.
Special Forces Raid
Stockpiles of gold were increasing in the "gold room" located at Loulo-Gounkoto's complex, despite exports being banned.
According to a court order dated Jan. 2, Barrick had just over 3 tons of gold in its vaults as of Dec. 27.
Unannounced, a helicopter arrived at the landing strip of the mine complex in mid-morning Jan. 11. One source said that four special forces soldiers and a customs officer, along with two officers from the state mining department and other plainclothes personnel, disembarked the helicopter and handed paperwork to Barrick employees authorizing them to seize gold.
The source added that the second shipment was made in the evening.
The gold that Barrick's mines seized is currently in the vaults at the Banque Malienne de Solidarite, a state-owned bank in Bamako. The bank declined comment.
Barrick, the company that confirmed the seizure, has announced it will suspend operations at Loulo-Gounkoto.
According to the Jan. 2, order, the seizure of Bristow's and other Barrick employee's property was taken as a precautionary measure in connection with the money laundering charges and other unspecified crimes against Bristow.
Two sources claim that Barrick has resisted the government's request to migrate to the 2023 mining code due to increased taxes.
Barrick's mining license will be renewed next year. The government has indicated that it may refuse the permit.
A source who had previously consulted with the Malian government said that the government wanted leverage in the negotiation while the company was looking to secure a long-term contract renewal at favorable terms.
The person stated, "I don't think they trust each other but no one is interested in a split-up."
Some investors are predicting a difficult road for Barrick Mali. They even think the company may lose its assets.
Martin Pradier is a materials analyst with Veritas, a Toronto-based investment research firm that covers Barrick. The exchange rate is $1 = 626.7500 CFA francs. (Additional reporting from Tiemoko and Fadimata in Bamako. Writing by David Lewis, Portia Crowe and Daniel Flynn. Editing by Silvia Aloisi, Veronica Brown, and Daniel Flynn.
(source: Reuters)