An unexpected move by the United Arab Emirates to cut volumes of a key oil grade sold to project partners including BP Plc and TotalEnergies SE is set to put a dent in some trading books. The hit stems from a mismatch in positions taken in the derivatives market to hedge against their expected supply of Murban crude for July, according to people familiar with the matter. The discrepancy may have led to losses as high as $12 a barrel for some equity shareholders, which is considered steep given profits can be as little as a few cents for each barrel, they added.  It’s unclear why state-owned Abu Dhabi National Oil Co. allocated volumes that were lower than contracted levels to international partners, but the reduction was not related to production constraints, the people said, asking not to be identified because they’re not authorized to speak on the matter. Adnoc declined to comment. The six partners in the UAE’s onshore production – BP, TotalEnergies, China National Petroleum Corp., Inpex Corp., Zhenhua Oil Co., and GS Energy Corp. – did not respond to requests for comment. The size of the cuts was outside the so-called operational-tolerance clause in contracts, which only allows for a small variance in volume, according to the people. The reduction translates to cargoes around 20 percent smaller on average than the standard 500,000-barrel shipment, they added. According to estimates from traders, equity partners that chose to fill their net-short positions after they were informed of lower volumes could have locked in a loss of as much as $12 a barrel, compared with official selling prices. At the time, oil had surged due to the conflict between Israel and Iran. There’s precedent for Adnoc cutting volumes, such as when OPEC+ shaved output quotas to manage prices, but those curbs were smaller and

Equinor ASA and its partners have agreed on a NOK-21 billion ($2.09 billion) investment to develop Fram South, which will unlock new gas for Europe, the operator said. The consortium forwarded the development plan to Norway’s Energy Ministry on Thursday, the majority state-owned energy major said. The project, a subsea tieback to the existing Troll C platform, holds estimated recoverable volumes of 116 million barrels of oil equivalent. Oil comprises 75 percent and gas 25 percent, according to Equinor. It expects the project to start production 2029. “We have done a thorough job maturing the new resources discovered in the Fram and Troll area in recent years”, Kjetil Hove, Equinor executive vice president for Norwegian exploration and production, said in an online statement. Fram Vest and Fram East started production 2003 and 2006 respectively. Both are tied back to Troll C. “We have a large portfolio of projects that will phase in discoveries to our producing fields. Equinor expects to put more than 50 such projects on stream by 2035”, Hove added. The Fram South development consists of Echino South, discovered 2019; Blasto, discovered 2021; and two smaller discoveries. Fram South is in the northern part of the North Sea, about 20 kilometers (12.43 miles) north of Troll C and around 120 kilometers northwest of Bergen. It has a water depth of approximately 350 meters (1,148.29 feet), while the reservoir depth is 1,800-2,800 meters, according to Equinor. The development will have 4×4 subsea templates. Initially 12 wells will be started up, with plans for a later development. Oil from the Fram field goes through Troll Oil Pipeline II to Mongstad, and gas is exported to Kollsnes via the Troll A platform. “As the first on the NCS [Norwegian continental shelf], Fram Sor will use all-electric Christmas trees that eliminate the

PT Medco Energi Internasional Tbk. has agreed to acquire Fortuna International (Barbados) Inc. from Repsol E&P S.a.r.l. The company said in a media release it will shell out $425 million in the process. It expects to close the transaction in the third quarter of 2025. MedcoEnergi said Fortuna International holds an indirect 24 percent interest in the Corridor Production Sharing Contract (PSC). The Corridor PSC has seven producing gas fields and one producing oil field, all located onshore in South Sumatra, Indonesia, MedcoEnergi said. The gas is sold under long-term contracts to high-quality buyers in Indonesia and Singapore, it said. “This acquisition supports our strategy of owning and developing high-quality, cash-generative assets and reaffirms our commitment to national development where natural gas is a vital bridge to a lower-carbon future”, Hilmi Panigoro, President Director, stated. Last month MedcoEnergi signed a gas swap agreement through its subsidiaries, Medco E&P Natuna Ltd. (part of the West Natuna Group Supply Group) and Medco E&P Grissik Ltd. (from the South Sumatra Sellers). The agreement, signed with various key parties including PT Pertamina (Persero) and PT Perusahaan Gas Negara (Persero) Tbk (PGN), reallocates gas volumes. Specifically, the West Natuna Supply Group will now supply gas to Singapore, replacing volumes previously sent from the South Sumatra Sellers. These redirected South Sumatra volumes will then be supplied to PGN to meet Indonesia’s domestic gas demands, MedcoEnergi said. Additionally, Medco E&P Natuna Ltd., along with Premier Oil Natuna Sea B.V. and Star Energy (Kakap) Ltd., signed a separate Domestic Gas Sales Agreement with PGN. In other developments, MedcoEnergi earlier this month started commercial operations at its 25-megawatt peak East Bali Solar Photovoltaic Plant, PT Medcosolar Bali Timur, located in Karangasem, East Bali. To contact the author, email [email protected] What do you think? We’d love to hear from you,

The Trump administration has eased recent export limits on a critical petroleum product that’s used to make plastics — a shift that represents a modest pullback on curbs used as leverage in trade negotiations with China.  Under the change, Enterprise Products Partners LP and Energy Transfer LP are being allowed to load that gas, known as ethane, onto tankers and transport it to Chinese ports. However, they are still barred from unloading that cargo for use by Chinese entities, said people familiar with the matter who asked not to be named.  Enterprise Products “may not complete” ethane exports to Chinese entities “without further BIS authorization,” the US Bureau of Industry and Security said in a letter Thursday to the firm. Energy Transfer was also notified of the change, the people said. The shift follows weeks of lobbying by oil industry advocates who told administration officials the restrictions were inflicting more pain on the US than China. The use of ethane, which China depends almost entirely on America for, as a trade war bargaining chip has disrupted supply chains and redirected flows. While US inventories of ethane — essentially a byproduct of shale production in West Texas — climbed, expensive ships purpose-built to carry the fuel have been forced to idle or sail to new destinations like India after previously only plying dedicated routes between the US and China.  As of late last week, INEOS Group Holdings SA had one tanker full of ethane waiting to ship and Enterprise Products Partners had three to four cargo ships stuck in limbo, according to a person familiar with the matter. Representatives of Enterprise Products, Energy Transfer and the Commerce Department, which oversees BIS, did not immediately respond to requests for comment on the shift, first reported by Reuters.  While the revised licensing requirements will ease congestion at US Gulf

Oil held steady as traders grappled with conflicting signals about how much US military strikes hobbled Iran’s nuclear program and whether Washington will continue to target Tehran’s oil flows. West Texas Intermediate edged up to settle near near $65 a barrel while Brent closed little changed near $68. WTI had climbed as much as 2.3% earlier after the Financial Times reported that European capitals believe that Iran’s highly enriched uranium stockpile remain largely intact following US strikes. President Donald Trump, in a social media post, denied reports that Iran successfully moved nuclear material from its sites before the attacks. At the same time, an Iranian law to suspend cooperation with the UN nuclear watchdog came into effect. Prices eased off intraday highs after CNN reported that Washington has discussed offering incentives to restart talks with Iran, including possibly easing sanctions. At a news conference on Wednesday, Trump indicated that US financial penalties are doing little to stop China from buying Iran’s supplies, contradicting earlier comments that he’s “not giving up” on a strategy of targeting Tehran’s petrodollars. “If they’re going to sell oil, they’re going to sell oil,” Trump said. “China is going to want to buy oil. They can buy it from us. They can buy it from other people.” In another headwind, White House Press Secretary Karoline Leavitt told reporters that there are no imminent plans to refill the Strategic Petroleum Reserve. She also said there were no plans for nuclear talks between Washington and Tehran and reiterated that the US destroyed Iran’s nuclear capabilities. The developments highlight the fragility of a ceasefire between Israel and Iran, with traders still on edge over potential disruptions to energy supplies from the Middle East. Still, the large geopolitical risk premium in the market only a few sessions ago has mostly

Diversified Energy Co. PLC and Carlyle have formed a partnership to invest up to $2 billion in proven developed producing (PDP) natural gas and oil assets across the United States.  “This exclusive partnership will combine Carlyle’s deep credit and structuring expertise, led by Carlyle’s asset-backed finance (ABF) team, with Diversified’s market-leading operating capabilities and differentiated business model of acquiring and optimizing portfolios of existing long-life oil and gas assets to generate reliable production and consistent cash flow”, a joint statement said. “Under the terms of the agreement, Diversified will serve as the operator and servicer of the newly acquired assets”, the companies added. “As investments occur, Carlyle intends to pursue opportunities to securitize these assets, seeking to unlock long-term, resilient financing for this critical segment of the nation’s energy infrastructure”. Diversified Energy chief executive Rusty Hutson Jr said, “This arrangement significantly enhances our ability to pursue and scale strategic acquisitions in what we believe is a highly compelling environment for PDP asset consolidation”. “Diversified is a leading operator of long-life energy assets and a pioneer in bringing PDP securitizations to institutional markets”, commented Akhil Bansal, head of Carlyle ABF. “We are excited to bring institutional capital to high-quality, cash-yielding energy assets that are core to US domestic energy production and energy security. “This partnership underscores Carlyle’s ability to originate differentiated investment opportunities through proprietary sourcing channels and seek access to stable, yield-oriented energy exposure”. Carlyle ABF, part of Carlyle’s Global Credit platform, focuses on private fixed income and asset-backed investments. Carlyle ABF supports businesses, specialty finance companies, banks, asset managers and other originators and owners of diversified pools of assets. It has deployed around $8 billion since 2021 and has about$9 billion in assets under management as of the first quarter of 2025, according to Washington-based Carlyle. Birmingham, Alabama-based Diversified Energy