Maduro Clings to Power in Venezuela

Politics, Geopolitics & Conflict

While reports are circulating that Israel is claiming to have forced the collapse of the Hamas brigade in Rafah, it remains unclear if the brigade has been defeated or has simply dispersed under the Israeli barrage. 

On the ever-expanding Russian-Ukrainian frontline, Ukraine continued its incursion into the Russian region of Kursk, while Moscow focused its revenge on eastern Ukraine, both barraging the other's energy infrastructure. Ukraine has set multiple Russian oil depots on fire and Russia has left parts of Kyiv without power and water. A focus of news this week was a report that Washington is prohibiting the UK from allowing Kyiv to strike military targets inside Russia with Storm Shadow missiles. Why? Because using those missiles would require access to U.S. intelligence. On the Russian offensive, Moscow has a two-pronged approach in a flanking maneuver to take the Ukrainian town of Pokrovsk. Intense battles are being reported in this area. Taking the area would allow Moscow to disrupt Kyiv's military logistics and supply lines.

In Venezuela, Maduro continues to use its Supreme Court ally to claim victory and oppress the opposition following elections widely believed to have been rigged. After keeping her head low since the elections, opposition figurehead Machado on Wednesday vowed to topple Maduro to keep protesters inspired in the face of the threat from security forces. Maduro has been busy stacking strategic ministries (including oil) with his biggest allies to shore up more support. 

Discovery & Development

Shell plans to cut 20% of its global workforce in the exploration and well development divisions, with significant impacts in the U.S., Netherlands, and Britain. These cuts are part of CEO Wael Sawan's broader cost-saving strategy, following recent reductions in Shell's renewables and low-carbon sectors. The restructuring aligns with Shell's goal to enhance profitability by focusing on core assets, despite scaling back on its carbon reduction commitments. Shell's stock has risen over 8% this year, reflecting investor confidence in the company's improved financial performance.

United Oil & Gas Plc has denied rumors of a commercial oil or gas discovery in Jamaica, clarifying that no wells have been drilled in the Walton Morant license area. The company holds a 100% interest in the asset and is actively seeking a strategic partner to explore the resource potential within the 8,649-square-mile offshore block, which holds an estimated 2.4 billion barrels of unrisked prospective resources. 

Apache subsidiary Khalda Petroleum Company has made a notable oil discovery in Egypt's Western Desert in the West Fewebs-1 area, producing 7,165 barrels of high-quality oil and 23 million cubic feet of gas per day. The discovery was confirmed through drilling into the Paleozoic sands in the Khalabsha Development Area.

Trans Canada Gold Corp. has announced that it has successfully completed 50% of the drilling for its second multilateral horizontal heavy oil well near Lloydminster, Alberta. The drilling, led by Precision Drilling, is progressing efficiently and is expected to be completed by August 30, 2024, with completion operations planned for early September. Trans Canada Gold Corp. has also acquired additional lands within the Area of Mutual Interest, increasing its potential for further multilateral wells in the Sparky and GP producing zones. 

Deals, Mergers & Acquisitions

Qatar is in discussions with the German government to potentially acquire Rosneft's stake in the PCK Schwedt refinery, which Berlin placed under trusteeship following Russia's invasion of Ukraine. The German government confirmed ongoing talks with Qatar over various investment opportunities, though it did not specify whether the Rosneft stake was included. The trusteeship over Rosneft's assets in Germany, which supply 90% of Berlin's fuel, is set to expire on September 10, with a decision pending. Rosneft has been actively trying to sell its German assets, valued at around $7 billion, with the process expected to conclude by September.

Africa Oil Corp. is moving to increase its stake in Impact Oil & Gas, focusing on Namibia's offshore exploration opportunities in the Orange Basin. Through a call and put option agreement, the Canadian company aims to acquire an additional 7% interest, potentially raising its shareholding to 39.5% in Impact Oil & Gas. This strategic move aligns with Africa Oil's objective to enhance its influence over the Venus oil discovery and other key assets in the region. The expansion follows Africa Oil's recent consolidation of interests in Prime Oil & Gas and a deal to increase its holdings in South Africa's SANAM super-basin.

Marathon Oil Corporation has received the necessary stockholder approval for its proposed merger with ConocoPhillips. The company announced that the transaction is expected to close by late Q4 2024, pending regulatory clearance and other customary conditions.