Daily Energy News
The Ministry of Finance of Mexico will granted state oil company Pemex a US$5bn billion rescue package to reduce its US$104bn debt load. The rescue package includes a debt refinancing plan and a US$5bn capital contribution for prepayment of bonds maturing between 2020 and 2023. Pemex will issue new bonds maturing in 7, 10 and 30 years for the refinancing of short-term debt. The company had already been granted several tax breaks and cash support throughout 2019. The Mexican government already budgeted for another US$4.4bn of tax and cash support for the year 2020.
Energias de Portugal (EDP), through EDP Finance, has issued €600m worth of green bonds to finance the development of its renewable portfolio (Portugal). The Medium-Term Notes (MTN) were issued under its Programme for the Issuance of Debt Instruments and will mature on September 2026. The funds raised will finance wind and solar projects by EDP Renovaveis.
EDP had previously issued €600m worth of green bonds in October 2018 (to mature in October 2025).
The Norwegian Petroleum Directorate has granted Equinor approval to extend the lifetime of another two installations on the Norwegian continental shelf (NCS), namely Tordis and Vigdis oil fields both in block 34/7 in the Tampen area of the Norwegian North Sea (Norway). The fields will have a life extension of 34 years until December 2036 and December 2040 respectively.
Russian energy group Lukoil announced it closed its transaction with New Age M12 Holdings to buy a 25% interest in the Marine XII project in the Republic of Congo for US$800m. All suspensive conditions were met, including the approval of the Congolese government.
The agreement between the two parties was disclosed in June 2019. Eni is the project's operator with a 65% stake. Based on a production sharing contract, the project also involves the state company Société nationale des pétroles du Congo (SNPC) with a 10% stake.
India and Russia have agreed on the purchase of a 49% stake at Russia’s Vankor cluster oilfields in Eastern Siberia, by an Indian consortium led by ONGC Videsh (OVL). A preliminary pact on the deal was signed during the Eastern Economic Forum along with multiple other investment agreements. Rosneft, the cluster's operator, also offered to sell stakes at five other fields.
Policy & Regulatory
The Lithuanian Ministry of Energy proposed three renewable energy auctions for 2020-2022. The country will allocate 0,7 TWh of electricity per year, regardless of renewable energy type (biomass, biogas, solar, or wind). To attract investors, the Government will require electricity distribution and transmission system operators to publish online details of existing free grid in their networks.
The European Union General Court has overruled a decision from the European Commission (EC) from October 2016 that allowed for Gazprom to access over 12.8 bcm/year (threshold stated before the 2016 ruling) of the total capacity at the OPAL gas pipeline. The EC decision was deemed in breach of the principle of energy solidarity, according to the General Court. The request for annulment was led by the polish company Polskie Górnictwo Naftowe i Gazownictwo (PGNiG).
Energy & Climate Markets
The Turkish Karpowership announced its 235 MW powership Ayşegül Sultan departed from Turkey to Senegal. The vessel, which will be anchored in Dakar, intends to begin commercial operation in early October 2019. It will be the first project to generate electricity from LNG in Africa. The company plans to use liquid fuel as bridging fuel in the first six months, then it will fuel the floating power plant with LNG.