Brazil’s #Oil Major @Petrobras Paying Off Its #Chinese #Debt- 8 years ahead of schedule!

Petrobras has repaid a $5-billion loan to China Development Bank eight years ahead of the deadline. Reuters reported, citing a securities filing by the Brazilian energy major, that the repayment means it will no longer have to offer Chinese oil companies preferential access to 100,000 bpd. 



Petrobras signed a $10-billion debt finance deal with China Development Bank back in 2016. In return for the money, it was obliged to offer Chinese companies preferential terms on 100,000 barrels of crude oil daily.



See the full story on  OilPrice.com 



Why Brazil’s Oil Major Is Rapidly Paying Off Its Chinese Debt | OilPrice.com:

Despite the extension, refinery owners are looking to end the 34-year cooperation under pressure from US sanctions.

Mérida, December 2, 2019 (venezuelanalysis.com) – Venezuela’s state-run oil company PDVSA has managed to temporarily extend its lease on Curacao’s Isla Refinery.

Venezuela’s PDVSA Secures Temporary Lease Extension for Curacao Refinery

Despite the extension, refinery owners are looking to end the 34-year cooperation under pressure from US sanctions.

Dec 2nd 2019 at 6.41pm

The agreement will allow PDVSA to continue to use the refinery for a maximum of one additional year as part of a “transition” to a new operator, according to a statement from the state-run refinery owner Refineria di Koursou (RdK) on Sunday.

The deal was reached during a meeting between PDVSA President Manuel Quevedo and RdK representative Marcelino de Lannoy in Caracas Saturday, and reportedly includes a commitment by PDVSA to invest in maintenance during 2020.

Sitting a mere 140 kilometres of Venezuela’s northern coast, the Isla Refineryhas a capacity to process 335,000 barrels per day (bpd) of crude oil into conventional fuels, polymers, petrochemicals, asphalt and raw waxes, as well as lubricating oils. It also provides storage facilities for Venezuelan oil-based products.

PDVSA has leased the premises continuously since 1985, but RdK is considering switching operators to avoid coercive measures from Washington. The firm began talks with European industrial conglomerate Klesch Group in September, but no further details have yet been disclosed.

#Saudi #Aramco pares back #IPO to ~25% of initial expectations on weak foreign demand

A billboard advertisement in Jiddah, Saudi Arabia, reads 'Saudi Aramco, soon on the stock exchange' © AP

Saudi Arabia revealed on Sunday that it will seek to raise between $24-$25.6bn from the listing of Saudi Aramco, a fraction of the $100bn it had once hoped for.

Aramco will float just 1.5 per cent of its total shares to investors at price that will value the company at between $1.6tn-$1.7tn. This would still make it the largest listed company in the world — overtaking Apple — but it falls far short of the $2tn valuation sought by Crown Prince Mohammed bin Salman, the kingdom's heir apparent.

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While Aramco will still court investment from top foreign institutions, it is now paring back its international roadshow, which will no longer include trips to the US or Japan.

The IPO will instead rely heavily on demand from domestic retail investors, as well as Saudi funds, regional investors and other sovereign funds. Saudi officials have visited China and Russia in recent weeks in a bid to underpin demand from countries that have been keen to deepen ties with the oil-rich kingdom.

One banker on the deal said the listing was effectively an IPO in name only after efforts to recruit foreign investors were curtailed. 

...

Foreign institutional interest will be limited to the roughly 1,500 qualified foreign investors already able to trade on the Saudi stock exchange or those nominated by Saudi Aramco or its advisers and approved by the market regulator.

Saudi bankers report plentiful domestic demand for the issuance, with pressure on wealthy families and institutions to apply for allocations of shares at the higher end of the valuation.

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The bookbuilding process began on Sunday. It ends for retail subscriptions on November 28 and for institutions on December 4. The final price for the shares will be announced on December 5, just as oil ministers from Opec countries meet to decide oil supply policy for the next year.

See the whole article here: 

Saudi Aramco pares back IPO on weak foreign demand https://www.ft.com/content/6a84cf06-090a-11ea-b2d6-9bf4d1957a67

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