Eksfin - Export Finance Norway’s Post

The Mexican Association of Oil Services Companies (AMESPAC) urges PEMEX, SENER, and SHCP to resolve mounting debts with suppliers, highlighting the financial strain on service providers and regional economies. #OilAndGas #EnergySector #PEMEX #Tariffs #OilPrices #FinancialStrategies #EnergyNews #MexicoBusiness #AMESPAC https://ow.ly/EqlP50Ui9Qn

The Mexican Association of Oil Services Companies (AMESPAC) has formally requested a reliable payment schedule from PEMEX, SENER, and SHCP to address outstanding debts. As PEMEX’s unpaid obligations grow, the financial strain on service providers and regional economies intensifies. AMESPAC members support the government's energy policies but stress the need for fiscal resources to capitalize PEMEX, invest in strategic projects, and reduce liabilities. Stay updated on this crucial development. Read the full article on Mexico Business News! 🌐 #PEMEX #AMESPAC #EnergySector #DebtManagement #MexicoEconomy #OilAndGas #FinancialStability #MexicoBusinessNews

During the Covid-19 pandemic, I was assigned to prepare a presentation about Tanjung Jati B Contract. I happened to read an insightful book titled "Making Foreign Investment Safe: Property Rights and National Sovereignty" by Wells and Ahmed. Instead of focusing on the unique contract scheme, I emphasized the project's history. Much of the content in this writing was drawn from this book, which I highly recommend to anyone interested in the history of Indonesia's energy sector. -The Emergence of Private Electricity- In the 1990s, the Indonesian government approved several Power Purchase Agreements (PPAs) with various foreign investors. Under these PPAs, investors would typically contribute a portion of the capital, with banks covering the remaining costs. The investors, through a newly established project company, would then own the power station and sell electricity to PLN, which served as the sole off-taker at prices predetermined by the agreements. -Tanjung Jati B PPA- In September 1994, PLN signed PPA for the 2 x 660 MW Tanjung Jati B coal-fired power plant. There were several parties involved in this project including: CEPA, Hopewell Holdings, Ltd. (CEPA's parent company which owned investments in power plant projects across Asia), Sumitomo Corporation (appointed contractor) and PT HI Tubanan. -Asian Financial Crisis- By 1996, construction of the Tanjung Jati B power plant was underway. CEPA began facing financial difficulties that year, struggling to manage its various projects. The Tanjung Jati B project was then transferred to Hopewell, which established PT HI Tubanan to manage the project. Meanwhile, Sumitomo Corporation, which had made significance progress, incurring significant expenses. By May 1998, construction had halted because Sumitomo had not been paid. PT HI Tubanan declared Force Majeure in September 1998 due to the financial crisis. During this time, Indonesia was hit hard by the financial crisis. The banking sector withdrew from financing projects, including Tanjung Jati B, and subcontractors refused to continue without payment. Recognizing the dire situation, Sumitomo proposing to secure low-interest loans from Japanese export credit institutions so that PLN was able to contract Sumitomo to complete the plant. -Entering a New Millennium- In 2001, negotiations led to a new proposal, approved by the Indonesian government, to continue the Tanjung Jati B project under a Build, Lease, Transfer scheme. The Finance Lease Agreement was signed in 2023 amid electricity crisis in Java, with Indonesian government agreeing to provide liquidity facilities to PLN as part of the lease guarantee. Under this scheme, Sumitomo established PT Central Java Power (CJP), which became the owner of the Tanjung Jati B plant. Sumitomo resumed construction, which had been delayed for years. Once completed, the plant was leased to PLN by PT CJP. Tanjung Jati B began commercial operations in 2006, supplying electricity to Jamali system.

Petroperu, the state-owned #oil company, is going through a major financial crisis, requiring urgent #governmentsupport. With an alarming #debt and management challenges, its future depends on effective reforms and political stability to guarantee Peru's energy security. L’article Petroperu: Financial challenges and government support crucial for the future est apparu en premier sur energynews.

PEMEX paid 3-5% of its debt to suppliers, offering temporary relief to over 120 companies in Tabasco and Campeche. A larger disbursement in January 2025 is expected to further ease financial strain.  Stay updated with Mexico's energy sector at Mexico Business News. #PEMEX #EnergyNews #MexicoEnergy #OilAndGas #FinancialHealth #DebtRelief #MexicoBusinessNews https://lnkd.in/e2yBQxZG

Is it possible this is the result of the “secret negotiations” between former WESTHEM Dir Juan S. Gonzalez and Venezuela’s Jorge Rodriguez? Is this the reason why the U.S. wanted to have #Venezuela presidential elections? Is this one of the reasons why the #USGOV dropped its support to #MCM? Is not about Venezuela’s freedoms. It’s about interests and oil remains the objective. ✅ #ConocoPhillips has been granted a series of licences to aid in the recovery of approximately $10bn owed to it by Venezuela, reported Bloomberg, citing sources. ✅ The licences, issued by the US Government, enable the oil and gas company to pursue legal avenues to reclaim funds from the nationalisation of its assets by Venezuela more than a decade ago. ✅ Earlier in the year, a court in Trinidad and Tobago 🇹🇹 ruled in favour of ConocoPhillips, allowing the enforcement of a $1.33bn (50.01bn bolivars) claim against Venezuela. ✅ This judgment permits the seizure of Venezuelan assets from gas projects shared with Trinidad as compensation. ✅ In the global context, where #PDVSA has financial holdings, these US licences position ConocoPhillips advantageously among other creditors. https://lnkd.in/eSHv3RQn

Staatsolie Maatschappij Suriname N.V., a key player in Suriname's oil sector, has announced the issuance of a new bond to raise at least USD 250 million and EUR 50 million. This strategic move is aimed at securing funds for the development of the GranMorgu offshore oil field in Block 58. The bond, open for subscription from February 3 to February 25, 2025, offers a competitive interest rate of 7.75% for USD and 7.25% for EUR investments, with a notably low entry point of USD 100 or EUR 100 to encourage participation across the Surinamese population. This initiative reflects Staatsolie's commitment to fostering local involvement in national economic projects. Staatsolie’s decision to finance partially through this bond issuance minimizes dependence on bank loans and leverages its existing cash reserves to cover its USD 2.4 billion investment share in the GranMorgu field. This project is part of a broader USD 12.2 billion development plan and represents a significant milestone, as it is the first oil field to be developed in Suriname's offshore territory. Notably, the financing aligns with Staatsolie's production-sharing contract, allowing up to a 20% stake in the venture, reflecting its strategic role in the burgeoning energy landscape of Suriname. The economic impact of Staatsolie's operations is substantial, contributing approximately 9.5% of Suriname’s GDP over the past three years and accounting for a significant portion of government revenues. With the GranMorgu project, Staatsolie is poised to enhance its influence further and deliver on its vision of "Energizing a bright future for Suriname." This development not only signifies a new chapter for Suriname’s energy sector but also underscores Staatsolie’s pivotal role in driving national economic progress through strategic financial management and strong public engagement. Past successful bond issuances reinforce the confidence in Staatsolie’s financial management capabilities, setting a strong precedent for the current initiative. By tapping into public investment and leveraging its operational expertise, Staatsolie continues to position itself as a cornerstone of Suriname’s economic future, catalyzing growth, prosperity, and energy independence through savvy investments and strategic partnerships.

Insights from the Exxon Mobil case for the Non-Oil and Gas Practitioner I found some interesting nuggets in the recent district court order favoring the taxpayer in ExxonMobil v. United States.  The case involved an oil and gas development project, and specialized oil & gas provisions of the Code (e.g., IRC § 636). More importantly for those of us who don’t know the difference between percentage depletion and depletion percentage, the Court’s order also addressed the IRS’s increasingly broad use of economic substance doctrine, as well as the de facto partnership doctrine. De Facto Partnership Analysis. One key issue in the case was whether the parties’ contractual relationships were classified as a de facto partnership, despite the parties not forming a separate legal entity to conduct the project. In finding a de facto partnership, the Court’s decision serves as an important reminder that partnerships can and do arise out of contractual relationships that have enough hallmarks of partnership status.  The taxpayer’s reporting of the arrangement by filing a Form 8865 was relevant. Moreover, the Court found common profit sharing, some element of loss & risk sharing, joint management activities and a custodial account. This is a good example of how you can have a partnership for tax purposes without forming a legal entity. One related issue was how to characterize the government of Qatar’s rights to a fixed set of payments from Exxon (a production loan).  The Court viewed the loan as a separate instrument, since it could be assigned separately from the rest of the rights under the contract. This illustrates how a de facto partnership can be coupled with another transaction, such as a secondary purchase of rights or, as here, a debt instrument from the partnership to the partner. Economic Substance Found Not Relevant to Debt-Equity Analysis. In seeking to disallow the taxpayer’s interest deductions on the production loan, the IRS reached for its purported cure-all—the economic substance doctrine (ESD). The Court soundly rejected this for several reasons. One reason was that the ESD is inapplicable to debt-equity issues. As the Court stated, “there may be no tax-independent reason for a taxpayer to choose between … different ways of financing a business.” However, it’s well established that a taxpayer can use debt to save tax. Another reason was that the production loan figured as part of an overall business transaction that indisputably had economic substance. Billions of dollars were spent on extraction infrastructure and drilling oil & gas in this transaction between third parties. The Court refused to allow the IRS to “slice and dice” an overall transaction and use ESD to nullify the tax beneficial step. Thus, I found a lot to glean from this case, even though I had no familiarity with Section 636.  There also are a ton of choice quotes and citations to other helpful cases.  

Mexico's Treasury to bail out state-owned oil and gas company Pemex. Mexico's Treasury will take out a loan for Pemex on its behalf, allowing the state oil company to pay off $20 billion in debt to contractors. Mexico's Treasury is preparing to bring in a consortium of banks to provide financing that state-owned oil and gas company Petroleos Mexicanos (Pemex) will use to pay off debt to service providers. CEO Victor Rodriguez said at a closed-door event that the company is coordinating with the Treasury, which could potentially take on the debt on its behalf, Bloomberg reports. Pemex and the Treasury will work with a consortium of banks to provide the funds, Rodriguez said at the event. That would be in addition to budget support already allocated to the state-owned oil driller and refiner through 2025, he added. Pemex understands that many suppliers will come seeking repayments, so the company will be responsible for who it pays first, Rodriguez said. Pemex owes its suppliers more than $20 billion for oil field work and other services, according to John Padilla, managing director of energy consultancy IPD Latin America. Earlier this month, Mexico said it would transfer about $6.7 billion to Pemex through budget support to cover debt payments in 2025. In the past, banks including Citigroup and Deutsche Bank have provided financing to Pemex to help it pay outstanding bills to oil field service providers, including SLB (formerly Schlumberger). In return, SLB effectively guaranteed that Pemex would not default on the loan. Content Author: https://lnkd.in/eSZPPd6P Source: https://lnkd.in/eVhxZwkH   #butov #oilgasmarket #oilgasworld #innovation #management #humanresources #technology #digitalmarketing #entrepreneurship #careers #socialmedia #socialnetworking #futurism #startups #branding #advertisingandmarketing #creativity #marketing #sales #motivation #energy #money #sustainability #productivity #gettingthingsdone #leadership #education #strategy #business #europe #mindfulness #inspiration #engineering #africa #india #europeanunion #china #smallbusiness #success #production #oilandgas #collaboration #contentmarketing #research #globaltrade #onlineadvertising #dubai #kenya #abudhabi #socialmediamarketing #manufacturing #climatechange #oilandgas #work #oilgas #science #logistics #hydrocarbons #shipping #growth #uae #marketresearch #oil #oilindustry #oilandgasindustry #agriculture #designer #oilfield #oilindustry #petroleum #trading #gas #chemistry #chemical #petrochemical #agro #refinery #import #export #industrial #agribusiness #quality 

Angola: "Ex-Im Bank’s $2.5 billion Angola loan funds Chinese-tied firms, not American jobs"-- Where is the money? "The U.S. Export-Import Bank faces scrutiny over a $2.5 billion giveaway to green energy development in Angola that benefits foreign companies with ties to China and the Angolan president, despite the bank’s claims that it will support thousands of American jobs." The U.S. Export-Import Bank faces scrutiny over a $2.5 billion giveaway to green energy development in Angola that benefits foreign companies with ties to China and the Angolan president, despite the bank’s claims that it will support thousands of American jobs. https://lnkd.in/eztisbh2