Arab
News, Tuesday, May 16, 2023 | Shawwal 26, 1444
Oil prices rise prospects of tighter supplies
RIYADH: Oil prices edged up on Monday as optimism about tightening supplies from
the Organization of the Petroleum Exporting Countries and its allies supported
crude prices.
Brent crude futures were up 9 cents, or 0.12 percent, to $74.26 a barrel
at 11:15 a.m. Saudi time. The US West Texas Intermediate crude was at $70.24 a
barrel, up 20 cents, or 0.29 percent.
Last week, both benchmarks fell for the fourth consecutive week, the
longest streak of weekly declines since September 2022, over concern that the US
could enter a recession on “significant risk” of a historic default within the
first two weeks of June.
ONEOK acquires Magellan for $18.8bn
ONEOK Inc. agreed on Sunday to buy US pipeline operator Magellan
Midstream Partners in a deal valued at about $18.8 billion, bringing the natural
gas-focused company into transporting refined products and oil.
ONEOK will pay $25 and 0.6670 shares of its common stock for each
outstanding Magellan common unit, representing a premium of 22 percent based on
Magellan shares’ closing price on May 12. The buyer will also absorb Magellan’s
$5 billion debt pile.
The deal will give ONEOK access to Magellan’s refined products and crude
oil transportation business. According to a presentation, the combined company
will have 44 percent of its business in natural gas liquids and 21 percent in
refined products.
“The combination of ONEOK and Magellan will create a diversified North
American midstream infrastructure company with predominately fee-based earnings,
a strong balance sheet and significant financial flexibility,” ONEOK CEO Pierce
H. Norton II, who will head the combined company, said in a statement.
Goldman Sachs & Co. is the lead financial adviser to ONEOK and Morgan
Stanley & Co. to Magellan.
TotalEnergies inks deal with Suriname for 2 drilling blocks
French oil giant TotalEnergies on Monday said it had reached a deal with
Suriname on sharing production at two planned offshore blocks in the Latin
American country.
TotalEnergies will operate blocks 6 and 8, with a 40 percent interest,
alongside Qatarenergy and Paradise Oil Co., which hold 20 percent and 40 percent
interest, respectively, the French company said in a statement.
(With input from Reuters)