Wednesday, August 4, 2021

Iran opens oil export terminal beyond Strait of Hormuz 

Iran has just launched a new export terminal in Jask, Hormuzgan Province, south of Iran, which can receive up to 1 mbd of crude oil from a massive pipeline from Goreh, Bushehr Province.

The terminal is built to allow Iran export its crude oil beyond Strait of Hormuz. The project has been officially inaugurated by a direct order from Iranian President Hassan Rouhani via videoconference on Thursday, July 22, 2021.

Implementation of Goreh-Jask crude oil transfer project took place with about $2 billion investment with the aim of creating a daily export capacity of 1 million barrels of crude oil through the new Jask terminal, ensuring continued oil exports, decentralization of export terminals and diversification of oil export  centers, sustainable development and job creation on the shores of Makran, where a capacity of 300,000 barrels of oil (per day) has been provided so far, and this capacity will gradually increase to one million barrels in the near future.

The share of more than 90% of domestic manufacturing and maximum use of the power of Iranian contractors and builders is one of the most important features of this national plan; 250 contractors and domestic manufacturers have participated in the project’s implementation and by relying on domestic capabilities, the equipment and goods required for the project were manufactured domestically for the first time in the country. The items include slabs, sheets and pipes suitable for sour fluid, raw materials for FBE pipe coating, giant 2.7 MW BB3 pumps, 42-inch class-900 motor valves and all-Iranian control systems.

Another notable feature that stands out in this national plan is the construction and commissioning of about 1,000 kilometers of crude oil transmission pipeline in less than 2 years, with full reliance on domestic capabilities.

To reach its current stage, this project has created 5,000 direct and 15,000 indirect jobs. Once fully operational, the project will pave the ground for construction of refining and petrochemical facilities in the Makran region, heralding a prosperous and thriving future for the region.

Tuesday, August 3, 2021

Oil - Hitler's Only Chance to Win the War? - WW2 Special

Iraq Wants Other U.S. Oil Company To Replace Exxon

 Iraqi laborers work at an oilfield near Basra 

Iraq wants another U.S. company to replace Exxon as a shareholder in the West Qurna 1 field, one of the country’s largest after the supermajor leaves the country.

“Exxon Mobil is considering exiting Iraq for reasons that are to do with its internal management practices, decisions, and not because of the particular situation in Iraq,” Prime Minister Mustafa al-Kadhimi told media after a meeting with President Joe Biden, as quoted by Reuters.

Exxon, which holds a $32.7-percent interest in West Qurna 1, has been looking for a buyer with plans to exit the country entirely. The stake was valued last year at up to $500 million. At the time, reports said two Chinese companies were interested in acquiring it, state-owned CNPC and CNOOC.

The plans for the stake sale appear to have been prompted by the impact the pandemic had on Exxon’s finances as it sought to keep its dividend intact and reduce debt. Later reports said that Iraq could end up buying the West Qurna 1 stake itself.

There could be other reasons for Exxon leaving Iraq, too. As Gerald Jansen wrote for Oilprice earlier this month, these have to do with the souring relationship between the company and Baghdad after Exxon ventured into Kurdistan oil, and with the continued political and financial instability in Iraq. This, according to Jansen, may have compromised the profitability of whatever plans Exxon may have had for its Iraqi business earlier.

Just two years ago, Exxon was all set to take part in a $53-billion plan to boost Iraq’s oil production, but it seems the pandemic and the Iraqi situation changed many things, including this ambitious plan.

“When Exxon Mobil departs, we will not accept its replacement to be other than another American company,” Prime Minister Kadhimi told media this week, but an American company has yet to express interest in acquiring Exxon’s holdings in Iraq.

Monday, August 2, 2021

UK accuses Iran of ‘deliberate & callous’ drone attack on tanker & plans...

Iron ore price craters on Chinese steel output cuts

 Iron ore price tumbles on gloomy China demand outlook

Spot iron ore traded below $200 a tonne on Thursday for the first time since May 28. Stock Image. 

Iron ore prices tumbled on Friday, collapsing under the weight of China’s resolve to reduce steel output in line with its decarbonization drive, and slowing domestic demand for the construction and manufacturing material.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $181.57 a tonne, down 7.6% from Thursday’s closing, the lowest since April.


Iron ore on China’s Dalian Commodity Exchange closed daytime trading 8.1% lower at 1,027 yuan ($158.95) a tonne, with its monthly loss of nearly 8% the steepest since February 2020.

Spot iron ore traded below $200 a tonne on Thursday for the first time since May 28, SteelHome consultancy data showed.

“Prices fell as iron ore demand weakens in the face of policy to reduce China’s steel output as a means to cut emissions,” Commonwealth Bank of Australia commodities analyst Vivek Dhar said in a note.

China has asked mills to limit this year’s output to no more than the 2020 volume after the first-half production grew nearly 12% compared with a year earlier.

Shagang Group, the world’s fourth-largest steel mill, said this week that it’s curtailing production and overseas sales to comply with government efforts to cut emissions.

Beijing’s attempts to cap steel output below last year’s record haven’t proved successful so far, with production climbing 12% in the first half from a year earlier.

That is raising expectations that activity will need to be restricted significantly through the end of the year. At the same time, China has unveiled more measures to curb overseas shipments, with the aim of using lower exports and inventories to offset supply shortfalls.

China’s steel curbs are weakening demand for iron ore, Vivek Dhar, commodities analyst at Commonwealth Bank of Australia, said in a note.

“Keeping production flat this year implies a 12% year-on-year contraction in second-half output. We don’t expect China’s crude steel output to contract to that extent, but China’s steel production is now facing more headwinds than slowing steel demand.”

Investors are also assessing signs of weaker demand from the property sector, according to Australia & New Zealand Banking Group.

China urged five cities to stabilize their local markets after residential housing prices rose too fast in the first half, the People’s Daily reported.

(With files from Bloomberg and Reuters)

Thursday, July 29, 2021

Petra Diamonds finds 342-carat rough at Cullinan mine

 Petra Diamonds finds 342.92 carat rough at Cullinan mine

The 342.92-carat Type IIa white diamond. (Image courtesy of Petra Diamonds. 

South Africa’s Petra Diamonds (LON:PDL) has recovered a 342.92-carat Type IIa white rough at its iconic Cullinan mine.

The company said the diamond is “exceptional” quality, in terms of both its colour and clarity,  and that it will likely be sold at the September tender.

Petra fetched in March $12.2 million for a 299.3-carat Type IIA white diamond. That meant it obtained $40,701 per carat, which exceeds the $34,386/ct received for the 424.89-carat “Legacy of the Cullinan Diamond Mine” in May 2019. 

Type II diamonds are found less frequently and are more valuable than Type I diamonds, as they have no measurable nitrogen impurities. This gives them exceptional transparency and brilliance.

Cullinan is known as the birthplace of the famed 3,106-carat Cullinan diamond, which was cut to form the 530-carat Great Star of Africa.

The operation also yielded the 317-carat Second Star of Africa.

They are the two largest diamonds in the British Crown Jewels.

Cullinan is known as the world’s most important source of blue diamonds, such as the 39.34-carat stone Petra found in April and which sold for $40.2 million earlier this month. It was the company’s highest price ever for a single stone.