Oil Updates — Crude Stable; Myanmar will import Russian oil; Phillips 66 offers to buy pipeline operator DCP Midstream
RIYADH: Oil prices were little changed on Thursday as investors grappled with falling inventories in the United States, rising production from Russia and worries about a possible global recession.
Brent crude futures climbed 10 cents, or 0.1%, to $93.75 a barrel at 0347 GMT.
U.S. crude futures gained 10 cents, or 0.1%, to $88.21 a barrel.
Myanmar to import Russian oil, army says
Myanmar, under military control, plans to import Russian gasoline and fuel oil to ease supply problems and rising prices, a spokesman for the junta has said, the latest developing country to do so in a context of global energy crisis.
The Southeast Asian country has maintained friendly ties with Russia, although the two remain under a series of sanctions from Western countries – Myanmar for a military coup that has overthrew an elected government last year, and Russia for its invasion of Ukraine, which it calls a “special military operation.
Russia is seeking new customers for its energy in the region as its main export destination, Europe, will impose a phased embargo on Russian oil later this year.
“We have received permission to import gasoline from Russia,” military spokesman Zaw Min Tun told a news conference on Wednesday, adding that it was preferred for its “quality and low cost”.
Fuel oil shipments are expected to start arriving from September, according to media reports.
Phillips 66 offers to buy pipeline operator DCP Midstream
U.S. refiner Phillips 66 on Wednesday offered to acquire DCP Midstream’s state-owned units in a deal that would value the pipeline operator at $7.2 billion and bolster Phillip’s natural gas liquids business. .
A deal would mark the first major move for Mark Lashier, who took charge of Phillips 66 last month. Earlier this year, the company acquired the public units of transportation and storage company Phillips 66 Partners.
Canadian pipeline operator Enbridge, which owned 50% of DCP’s general partner, said it would reduce its stake in the company to 13.2% from 28.3%. He received a $400 million cash payment from Phillips 66 as part of the deal.
Enbridge will in turn take over as operator and more than double its stake in the Gray Oak Pipeline, previously operated by Phillips 66. The Gray Oak Pipeline transports crude oil from West Texas to the Gulf Coast.
Phillips 66’s economic interest in the Gray Oak Pipeline will drop from 42.25% to 6.50%.
Aker Energy postpones Ghana oilfield project due to Lukoil involvement
Norway’s Aker Energy said on Wednesday it would postpone submitting a development plan for its Pecan oilfield offshore Ghana, fearing the project could be sanctioned by war in Ukraine due to the involvement of the Russian oil company Lukoil.
Aker Energy, controlled by Aker ASA, owns 50% of the deepwater block offshore Ghana where the Pecan field is located, while Lukoil owns 38%, Ghana National Petroleum Corporation 10% and Fueltrade 2%.
The partners will not submit a development plan to the Ghanaian authorities “until the challenges have been resolved”, Aker ASA CEO Oeyvind Eriksen said in a call with analysts.
Russia invaded Ukraine in February in what it calls “a special military operation”, prompting unprecedented Western sanctions against Moscow and a breakdown in economic relations.
“We are continuing a dialogue with Lukoil and the Ghanaian authorities on possible solutions,” Eriksen told Reuters, adding that one option was for Lukoil to divest from the project.
Aker said Ghanaian authorities have extended the deadline for submitting the plan until September 30.
(Contributed by Reuters)