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Global Operators Remain Cautious on Hormuz, Expand Overseas Deals - Bakken Wire
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Global Operators Remain Cautious on Hormuz, Expand Overseas Deals

While the U.S.-Iran deal offers hope, shipping delays and major Bakken players' international moves highlight a complex global energy landscape.

Bakken Wire Staff·☀️Morning Wire·

The world's largest tanker operator has cautioned that a full return to normal oil shipments through the Strait of Hormuz could take weeks, even after a U.S.-Iran deal, according to a report from OilPrice.com. For Bakken operators, this means continued uncertainty for global crude flows and pricing, despite the announced diplomatic breakthrough.

Jotaro Tamura, CEO of Mitsui OSK Lines, told the Financial Times that shipping companies will wait until the deal is formalized this Friday and they see "material" safety guarantees before returning to the critical chokepoint. "Given the experiences in the last couple of months, I think it’s reasonable to assume that it may take at least a couple of weeks or if not a month," Tamura said. Even after a formal agreement, organizing insurance could further delay recovery, OilPrice.com reported.

This cautious stance persists despite a Monday social media post from former President Trump claiming ships were moving. The delay in resuming full traffic through the strait, which handles about one-fifth of global oil consumption, underscores that global supply chains will not snap back instantly, a factor Bakken producers must watch as it influences international benchmark prices.

Concurrently, major U.S. operators with significant Bakken assets are advancing international projects. ConocoPhillips, a leading Bakken producer, is set to sign a deal this week with Syria’s state gas company, according to a separate OilPrice.com report. The company would partner with Novaterra Energy to develop existing fields and explore for new production in Syria. A preliminary deal was signed last year, with expectations it could boost Syria’s gas output by 4 to 5 million cubic meters daily.

"This is a pivotal moment," Andrew Tabler, a former advisor on Syria, told the Financial Times. "The administration has been talking about sanctions relief, companies are hoping to get in on the ground floor." The report noted that Syria holds remaining discovered resources of at least 1.3 billion barrels of oil equivalent, with its offshore sector entirely untapped.

In a separate development, Chevron, another major Bakken leaseholder, has expanded its exploration footprint in the Greek Mediterranean, according to Rigzone. The company has expanded its partnership with Helleniq Energy to a total of five offshore concessions in Greece.

These moves by ConocoPhillips and Chevron highlight a strategic diversification of assets by companies central to the Bakken play. Their investments in international exploration and development, including in post-conflict regions like Syria, come as the global oil and gas map undergoes significant shifts. For North Dakota, the core operations of these companies in the Bakken remain vital, but their global capital allocation decisions can influence long-term investment strategies in the state.

Source

OilPrice.com, Financial Times, Rigzone

strait of hormuzshippingconocophillipschevronglobal supplyexplorationsyriagreece

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