Chevron, A Dividend Champion In Trouble: What Is The Impact Of The Ecuadorian Judgment?
Caiman Valores • 52 Comments
Caiman Valores • 52 Comments
Sep. 26, 2013, 6:55 PM
- You know a major corporation really cares about an appellate court argument when they bring out one of the bar’s big guns, and no gun is bigger than Ted Olson, the former U.S. solicitor general and noted Supreme Court advocate.
- Chevron (CVX) today rolled out Olson to convince a three-judge panel to clear the way for a civil racketeering suit it wants to start next month against plaintiffs’ attorney and environmental activist Steve Donziger.
- The real question was the future of the $19B oil pollution verdict imposed on CVX by an Ecuadorian court in 2011, engineered by Donziger, who wants to get the U.S. district judge overseeing the racketeering suit, Lewis Kaplan, removed from the case.
- Late this afternoon, the court issued an order refusing to remove Kaplan; Chevron prevailed and Olson earned his fee.
Sep. 25, 2013, 9:06 AM
- Linc Energy (LNCGY.PK, LNCYF.PK), seeking a shale exploration partner in central Australia, says it is in talks with two groups, including a U.S. oil services company, interested in helping to develop its prospects.
- Linc wants to move ahead with its five-well drilling program at the shale oil properties in South Australia’s Arckaringa Basin on the assumption that a prospective partner will step up; Linc said earlier this year that it had been contacted by several companies interested in funding the development.
- Chevron (CVX), ConocoPhillips (COP), BG Group (BRGYY.PK, BRGXF.PK) and Statoil (STO) are among global energy companies that have made shale investments so far in Australia.
Sep. 24, 2013, 8:39 AM
- Chevron (CVX) reportedly will receive bids on Sept. 30 from prospective buyers of three oil blocks in the Niger Delta, with several local Nigerian firms in the running.
- Oil industry sources estimate the mean value of the three blocks combined at $500M-$600M and anticipate winning bids will be around those levels.
- CVX said in June it would be selling its 40% stake in five onshore blocks with total oil reserves of ~134M barrels and 5T cf of gas.
Sep. 23, 2013, 11:42 AM
- Apache (APA -0.6%) names Rod Eichler as CEO of its proposed Kitimat liquefied natural gas export facility in Canada, a strong sign the project may be moving forward.
- Eichler has been with APA for 20 years, including the past two years as COO; analysts say it’s an encouraging sign that APA is naming such a high-ranking executive in charge of the Kitimat development.
- Eichler's appointment is one of a series of executive changes taking effect Jan. 1.
- The Kitimat project, 50% owned by Chevron (CVX +0.2%), would allow for exports of Canadian gas to Asia and other overseas markets.
Sep. 20, 2013, 2:29 PM
- Ukraine's government moves closer to a new shale gas deal, as a regional council approves its draft for a production-sharing agreement with Chevron (CVX -0.3%).
- One locality had sent the draft back to the government last month, but today it voted 62-1 for passage after receiving a commitment to allocate 10% of any gas produced for local consumption.
- The approval of a second council in a neighboring region is needed before an agreement can be finalized.
Sep. 20, 2013, 10:58 AM
- A decade has passed since Chevron (CVX) was in growth mode in Canada, but that’s about to change, as it prepares to build and run the first large liquefied natural gas facility on the country's west coast, Kitimat LNG, while taking on the Duvernay shale gas play in Alberta.
- After years of purchases by Asian energy companies in western Canada, CVX's re-commitment to Canada suggests a new theme, FT's Claudia Cattaneo writes: Oil majors are taking a second look at the country, buoyed by its unconventional resource potential, its emerging LNG business and in response to federal and provincial governments’ aggressive campaigns to promote resource development and cultivate new markets.
Sep. 19, 2013, 6:15 PM
- More on Brazil's planned auction of the Libra oil prospect: Only 11 companies registered to participate - far fewer than the expected 40 - and some of the biggest firms backed out, including Exxon (XOM), Chevron (CVX) and BP (earlier).
- Asian state-owned companies dominate the list of participants: India's ONGC, Malaysia's Petronas, Colombia's Ecopetrol (EC), China's Cnooc (CEO) and China National Petroleum (PTR); China's Sinopec (SNP) will take part through joint ventures with Brazilian units of Spain's Repsol (REPYY.PK, REPYF.PK) and Portugal's Galp Energia (GLPEF.PK).
- Also taking part: Shell (RDS.A, RDS.B), Total (TOT) and Mitsui (MITSY.PK, MITSF.PK).
- Analysts blame the lack of interest on new rules drawn up by Brazil's government that place development and profits under greater state control; too many companies don't want "the trouble of dealing with Petrobras (PBR) and the government. You can get good oil assets elsewhere without that."
- ETFs: EWZ, BRF, EWZS, BRAF, BRXX, UBR, BZQ, BRAZ, BRAQ, BRZS, BRZU.
Sep. 18, 2013, 12:17 PM
- Severe cost inflation could well show up on Canada’s west coast, industry participants say, should Chevron (CVX), Royal Dutch Shell (RDS.A, RDS.B) and Malaysia’s Petronas launch multibillion-dollar liquid natural gas construction programs at the same time.
- The British Columbia government is counting on natural gas exports to provide it with billions of dollars over several decades, but new entrants are skeptical that B.C. can escape Australia’s fate, where a building frenzy saw costs for CVX’s Gorgon LNG plant blow past $50B.
Sep. 18, 2013, 10:14 AM
- Chevron (CVX -0.1%) wins an international arbitration ruling releasing it from collective environmental damage claims related to an ongoing class-action lawsuit over alleged oil pollution in Ecuador.
- The case stems from an old dispute over environmental contamination in Ecuador allegedly produced by Texaco, which CVX bought in 2001; the plaintiffs in 2011 won a $19B judgement, which CVX considered fraudulent and refused to pay.
- "It is now beyond question that efforts by American plaintiffs lawyers and the government of Ecuador to enforce this fraudulent judgment violate Ecuadorian, U.S., and international law," CVX says.
- Ecuador's president is calling for a boycott against the "abusive, corrupt and polluting" company.
Sep. 17, 2013, 8:04 AM
- Lithuania's environment ministry approves Chevron's (CVX) bid to explore for shale gas, as the country seeks to end its energy dependence on Russia.
- The government still must make a final decision, but the prime minister is known to favor a deal with CVX; the two parties then would have 90 days to sign a contract.
- Officials have said Lithuania could have 30B-50B cubic meters of extractable shale gas reserves.
Sep. 16, 2013, 6:48 PM
- Natural gas drilling sites aren't leaking as much methane as the federal government had estimated, according to a peer-reviewed study by researchers at the University of Texas that was the first attempt to measure actual emissions from gas drilling operations at 190 sites.
- Measurements of gas emissions found that wells emitted ~20% less greenhouse gases than the EPA estimate.
- The study also found that pneumatic switches used in wells leaked much more methane than previously believed, highlighting an area of needed improvement.
- Companies cooperating in the project included Anadarko (APC), Chevron (CVX), Shell (RDS.A, RDS.B), Pioneer Natural Resources (PXD), Southwestern Energy (SWN) and Exxon’s (XOM) XTO Energy.
Sep. 15, 2013, 3:22 AM
- The SEC is pushing energy companies to disclose how much of their liquid reserves comprise fuel that is not derived from crude oil but from natural gas, such as the less valuable propane.
- BHP (BHP) and ConocoPhillips (COP) are among the companies to have recently agreed to the SEC's request, joining the likes of Exxon Mobil (XOM) and Anadarko Petroleum (APC).
- The matter has become quite important, because while crude is worth $100 a barrel, the prices of other fuels have dropped along with that of natural gas.
- Other companies to have been contacted by the SEC over the issue include Chevron (CVX) and Marathon Oil (MRO).
Sep. 13, 2013, 5:06 PM
- Chevron (CVX) agrees to pay 95.2M Brazilian reais ($42M) to settle lawsuits related to the Frade offshore oil spill in 2011, WSJ reports, a far cry from the $20B in damages Brazilian federal prosecutors originally sought.
- The value of the settlement fell after government regulators concluded spill damage wasn't as bad as thought, the prosecutor says; the agreement will be presented to a judge, who can approve or reject it but can't alter the financial terms.
- The settlement represents an "amicable resolution," a CVX official says, adding that CVX is studying details of the upcoming Libra auction and has until Sept. 18 to express its interest.
- Transocean (RIG), which was operating the rig on CVX's behalf at the time of the accident, won't make any payment, according to the agreement.
Sep. 13, 2013, 11:27 AM
- Federal prosecutors in Brazil reach a deal with Chevron (CVX +0.6%) and Transocean (RIG -1.5%) to settle lawsuits seeking up to $20B in damages stemming from a 2011 offshore oil spill; no details have been revealed.
- Prosecutors and local officials were criticized for the heavy-handed response to what was considered a relatively minor spill at the Frade field, where between 2,400 and 3,700 barrels of crude seeped from cracks in the seabed off Brazil's coast.
- Brazil may be seeking to clear the air before next month's auction of the Libra prospect, believed to be one of the largest deepwater oil fields ever discovered.
Sep. 13, 2013, 8:43 AM
- A record 50 oil companies, including all the majors except BP, applied to take part in Norway's mature areas licensing round, indicating continued exploration interest even as the country's oil production sinks to a 25-year low.
- Newcomer Tullow Oil (TUWLF.PK, TUWOY.PK) joins the usual applicants, including Statoil (STO), Shell (RDS.A, RDS.B), Chevron (CVX), Exxon (XOM) and Conoco (COP), with awards expected in January.
- There is heightened interest in available acreage in the northern part of the North Sea and the Barents Sea relative to previous years.
Sep. 12, 2013, 6:44 PM
- Fifty of the world's 500 largest publicly traded companies are responsible for nearly three quarters of the group’s greenhouse gas emissions, according to a new report by a group that compiles data on climate change.
- The big emitters are not doing enough to reduce emissions, and the top 50 have increased their emissions since 2009, the report says.
- U.S. companies in the top 50 include oil majors such as Exxon (XOM), Chevron (CVX) and ConocoPhillips (COP), and other giants such as Wal-Mart (WMT), FedEx (FDX), Dow Chemical (DOW), AT&T (T) and Duke Energy (DUK).
- Exxon, Shell (RDS.A, RDS.B), Sasol (SSL), BP and Petrobras (PBR) are the five biggest emitters in the energy sector.
Chevron Corp. is an integrated energy company, which provides administrative, financial, management and technology support to U.S. and international subsidiaries that engage in fully integrated petroleum operations, chemicals operations, mining operations, power generation and energy services.... More
Sector: Basic Materials
Industry: Major Integrated Oil & Gas
Country: United States
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