26.40 +0.72 (2.80%)
After hours: 6:25PM EST
|Bid||25.50 x 800|
|Ask||28.80 x 800|
|Day's range||25.62 - 26.40|
|52-week range||25.62 - 36.34|
|Beta (5Y monthly)||0.79|
|PE ratio (TTM)||6.92|
|Forward dividend & yield||1.88 (7.12%)|
|Ex-dividend date||22 Sep 2019|
|1y target est||40.00|
(Bloomberg) -- Pakistan’s main buyer of liquefied natural gas is considering canceling two long-term contracts as a slump in spot prices and abundant production create opportunities for cheaper supply, according to people familiar with the situation.State-owned Pakistan LNG Ltd. is weighing the possibility of exercising termination clauses in contracts it signed with Eni SpA and Gunvor Group Ltd. in 2017, according to the people, who asked not to be identified because the matter is private. No final decision has been made and the company is seeking input from the Ministry of Energy, said the people. Canceling both deals may cost the Pakistani firm nearly $300 million in penalties, according to Bloomberg calculations.Pakistan LNG directed questions to the energy ministry, which didn’t respond to requests for comment. Gunvor declined to comment, while Eni didn’t respond to requests for comment.A glut of new LNG supply and sputtering demand growth have sent spot prices to record lows, straining more expensive long-term supply deals based on oil prices. The global oversupply may persist over the next few years, analysts including Morgan Stanley forecast, stoking speculation that buyers will be pressuring sellers for revisions to term contracts.Pakistan isn’t alone in seeking better deals. Japan’s Osaka Gas entered into arbitration last year with the marketing unit of Exxon Mobil Corp.’s PNG LNG project after a dispute during a price review. Indian gas importers have started discussions with Qatar on moving away from linking LNG prices to oil and are seeking cheaper rates. In 2015, Petronet LNG reworked the pricing formula in its 25-year contract with Qatar’s RasGas that resulted in lower prices.See also: LNG Buyer Cancels Cargoes From Biggest U.S. Exporter in GlutPakistan LNG is still open to sourcing supplies through new or revised contracts if the pricing terms are more favorable, according to one of the people. The South Asian nation is seen as one of the biggest growth markets for the fuel, with BloombergNEF forecasting imports could grow 80% from last year’s level to 2023.Under the terms of the contracts, which are posted on Pakistan LNG’s website, the company must give a 90-day termination notice and pay damages equal to the value of six cargoes, which is based on average Brent prices for the three months preceding the month the notice is served. That would be about $142.5 million for the Gunvor deal and $148.8 million for Eni, according to Bloomberg calculations based on front-month Brent futures traded on ICE Futures Europe.The two deals are linked to oil at a rate that prices cargoes more than double what’s currently available through the spot market. The Gunvor contract, which runs for five years to June 2022, is priced at 11.62% of Brent -- or about $7.42 per million Btu according to Bloomberg calculations using the average of November to January.The Eni contract, which runs for 15 years to 2032, is priced at 11.6247% for the first two years, 11.95% for the following two years, then 12.14% for the remaining 11 years, according to one of the people. Both deals are for one cargo per month.The Japan/Korea Marker, the spot Asian LNG benchmark published by S&P Global Platts, has dropped more than 50% in the past year and reached a record low this month of $2.71 per million British thermal units. Front-month futures traded at $2.90 per per million Btu on Tuesday in New York. A spot cargo to neighboring India was purchased recently for as low as $2.40 per million Btu.(Updates with price in last paragraph)\--With assistance from Anna Shiryaevskaya and Andy Hoffman.To contact the reporters on this story: Stephen Stapczynski in Singapore at email@example.com;Faseeh Mangi in Karachi at firstname.lastname@example.orgTo contact the editors responsible for this story: Ramsey Al-Rikabi at email@example.com, Jasmine NgFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The latest five-day oil rally has been brought to an end by market uncertainty surrounding OPEC+ production cuts and a recovery in Chinese demand
A Nigerian oil reform two decades in the making is urgently needed to get money into its energy sector, industry executives say, as tax increases and regulatory uncertainty scupper investments. Africa's largest oil exporting nation has not carried out a full revamp of the law underpinning its oil and gas sector since the 1960s. Government officials say a sweeping overhaul is imminent and will be presented to the National Assembly next week, which for industry leaders is not a moment too soon.
Italian energy group Edison has begun drilling an exploratory well in deepwater acreage in Egypt, not far from other giant east Mediterranean gas fields, the CEO of Israel-focused gas driller Energean said on Wednesday. Energean is in the process of taking over Edison's Egyptian assets in a deal reached last year. "We're drilling right now in North Thekah, a deep water exploration ... it started a couple weeks ago," Energean CEO Mathios Rigas told reporters on the sidelines of an energy conference in Cairo.
A Milan court has rejected a prosecution request to hear testimony from a former legal adviser of Eni who has accused the company of spying on judges, offering a boost to the Italian oil firm as it fights bribery allegations over a Nigerian oil field. The ruling removes the prospect of months of testimony voicing allegations of wrongdoing by Eni and sets a timetable for finally reaching a verdict in the long-running case. The decision is the second piece of bad news in a few days for Milan prosecutors after a witness last week refused to confirm a key statement.
Russian oil pipeline monopoly Transneft faces claims of up to $1 billion related to contaminated oil, more than double its own estimates, industry sources said, setting the stage for protracted haggling with oil suppliers. Up to 5 million tonnes of tainted Russian oil was contaminated en route to central Europe via the Druzhba pipeline. State-owned Transneft, the supplier of Urals crude to Russia's Baltic port of Ust-Luga, as well as the operator of the Druzhba pipeline, has set aside 23 billion roubles ($371 million) for compensation related to tainted oil.
A witness in a graft case involving oil contracts in Nigeria refused to confirm a key statement during a court hearing on Wednesday, offering a possible boost to Italian oil major Eni, which is fighting allegations of bribery. In one of the oil industry's biggest scandals, Italian prosecutors allege Eni and Shell bought a Nigeria oilfield in 2011, knowing that most of the $1.3 billion purchase price would be siphoned off to agents and middlemen.
After several days of losses, oil prices stabilized on Tuesday morning after OPEC and partners announced their intent to extend output cuts till June of this year
Big Oil will be in focus this week with supermajors ExxonMobil (XOM) and Chevron (CVX) reporting fourth-quarter earnings on Friday.
Eni (ENI) continues its discovery streak with the addition of Mahani-1 exploration well, the first onshore discovery in the UAE Sharjah, since the early 1980s.
Chevron (CVX) is contemplating the potential sale of its stake in the Indonesian Deepwater Development gas project to control costs and prepare for long-term low prices.
Congo Republic's public debt could be more than one-third higher than the International Monetary Fund estimated when it awarded a bailout last year because of liabilities held by the state oil company, environmental and rights group Global Witness said on Monday. If confirmed, this increase could hinder the OPEC producer's economic recovery from a downturn that began in 2014 when oil prices dropped sharply, causing debt levels to balloon to 118% of GDP in 2017. The IMF plan for Congo Republic was agreed last year after Brazzaville renegotiated a portion of its Chinese debt.
Italian tax police searched the Milan offices of three managers at Eni on Thursday to widen an investigation into suspected obstruction of justice by officials at the Italian oil group, two sources said. The inquiry is still in an early phase and has been overshadowed by an ongoing corruption trial centering on the 2011 purchase of a Nigerian oilfield by Eni and oil major Royal Dutch Shell Plc. Milan prosecutors opened the obstruction case in 2018 to investigate whether in 2015 and 2016 Eni officials had sought to discredit two independent board members who later became witnesses in the Nigeria case.
Tensions between Turkey and Cyprus that have been simmering for decades flared up again this month after Cyprus called Turkey a “pirate state”
Schlumberger (SLB) reported upbeat Q4 earnings on strength in its international operations. Meanwhile, Eni (E) announced the flow of first oil from the Agogo field, offshore Angola.
Nigeria's financial crimes watchdog charged a former attorney general suspected of taking bribes to facilitate a $1.3 billion oil block sale, the agency said on Tuesday, in the latest twist in one of the industry's biggest alleged corruption scandals. An international investigation into the 2011 sale of the offshore oilfield known as OPL 245 by Malabu Oil and Gas has entangled two of the industry's biggest players, Shell and Eni, as well as an array of powerful figures from the previous Nigerian government. Mohammed Adoke, Nigeria's ex-attorney general, was charged with receiving the U.S. dollar equivalent of 300 million naira in 2013 to facilitate the OPL 245 deal and help waive taxes for Shell and Eni, according to a charge sheet filed in an Abuja high court last week.
Eni (E) starts production from the Agogo oilfield only nine months following its discovery, supported by operational synergies from FPSO Ngoma.