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Market Chatter: Venezuelan Oil Sales Stall as Shipping Costs Surge

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Sales of Venezuelan oil for October loading have stalled after a surge in shipping costs muddled negotiations between PDVSA and buyers, Bloomberg reported Wednesday, citing people with knowledge of the situation.

Shipping costs have more than doubled since the end of August, making Venezuelan crude less competitive with Canadian barrels for US refiners, according to the people, the report said.

Buyers are currently being offered Venezuelan oil at a discount of around $14 to benchmark ICE Brent for October loading, the people said, according to the report.

With shipping costs to the US Gulf Coast near $7 a barrel, the oil arrives at a discount of $7 a barrel, at least $5 more expensive than competing Canadian supplies, according to the people, Bloomberg reported.

Vitol and Trafigura did not immediately respond to requests for comment from.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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Market Chatter: Adnoc Unit XRG Targets Piece of Shell-led LNG Canada JV

Emirati energy investment company XRG is in talks with Chinese oil and gas producer PetroChina and other partners in the LNG Canada joint venture for a potential stake purchase, Bloomberg News reported Tuesday, citing people familiar with the matter.The liquefied natural gas export project is led by oil and gas major Shell (SHEL.L, SHELL.AS) with a 40% shareholding. Additionally, PetroChina and Mitsubishi Corp. each own a 15% interest, while Malaysia's Petroliam Nasional, or Petronas, and Korea Gas Corp., or Kogas, hold stakes of 25% and 5%, respectively.The discussions with Abu Dhabi National Oil Co., or Adnoc, unit XRG may not result in a deal, the sources said. Shell and LNG Canada declined to comment, while XRG and PetroChina did not immediately reply to a request for comment from.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$SHEL.L$SHELL.AS
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Market Chatter: Saudi Aramco Reportedly Plans New Gas Division, Eyes Potential Minority Listing

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SASE:2222
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Shell Closes $840 Million Sale of Interests in Na Kika Platform, Coulomb Tieback

Shell (SHEL.L, SHELL.AS) said Tuesday that it earned $840 million from completing the sale of a 50% non-operated working interest in the Na Kika semi-submersible platform and the 100%-owned Coulomb tieback in the Gulf of Mexico.The oil and gas company's Shell Offshore unit agreed in June to sell the interests to a Talos Energy subsidiary and a Ridgewood Energy affiliate for a total consideration of $1.7 billion. The agreement covers uncapped upside-linked payments through 2027, as well as conditional overriding royalty interests on production from new Na Kika tiebacks.Shell co-owned the Na Kika platform with BP (BP.L), which holds the operating interest. It expects both assets to cease meaningful contribution to its production by 2030.

$BP.L$SHEL.L$SHELL.AS