On 2 April, AAPG will host a webinar entitled “Venezuela: Opportunities and challenges.” I have the honor of moderating a dialogue with two leading experts on the topic: Dr. Francisco Monaldi, director for the Latin America Energy Program from Rice University’s Baker Institute, and Mark Oberstoetter, Vice President and Head of Americas Upstream Research at Wood Mackenzie. Register to attend here.
Now, let’s dig into two pieces of energy news from the past week.
Shangyou Nie
Editor, Well Read
U.S. Eases Russian and Iranian Sanctions, as Conflict in the Middle East Continues
Tomas Ragina/Shutterstock.com
The U.S. government relaxed sanctions on some Russian and Iranian oil, as the Brent price rose above $110 per barrel. The European Union strongly opposed the decision to lift sanctions on Russian oil.
“This temporary, short-term authorization is strictly limited to oil that is already in transit and does not allow new purchases or production,” added U.S. Secretary of the Treasury Scott Bessent.
An estimated 140 million barrels of Iranian oil at sea will become available for purchase. That will be the equivalent of about seven days of oil normally shipped across the Strait of Hormuz.
According to the WSJ, an estimated 124 million barrels of Russian oil were at sea, or about six days' worth of oil that would have shipped through the Strait of Hormuz normally.
The purchases can continue until 11 April, according to a Treasury Notice.
Bessent announced on X that “We will be using the Iranian barrels against Tehran to keep the (oil) price down as we continue Operation Epic Fury.”
The latest in Iran
As of 22 March, 22 countries signed a joint statement calling Iran to immediately stop blocking shipping through the Strait of Hormuz
The contract said that the countries are ready “to contribute to appropriate efforts to ensure safe passage through the Strait.”
From the United States: The same day, President Trump issued an ultimatum to Iran, stating it must reopen the Strait of Hormuz within two days or the United States will strike Iranian power plants.
Netanyahu said he will “hold off” on future attacks on Iranian energy infrastructure, per President Trump’s request.
From Qatar: Qatar said that it will take five years to repair two of its LNG trains, which were damaged during Iran’s attack on the Ras Laffan Industrial City. The attack cost the country $20 billion in revenue.
An estimated 17 percent of Qatar LNG export capacity, or 12.8 million tonnes per annum will not be available due to damage.
The World Reacts
The European Union: The European Union is maintaining sanctions on Russian oil and condemned the United States’ decision.
It says Russia was “probably the biggest beneficiary of this (Iran) conflict.”
Ukraine: “This one concession by the United States could give Russia about $10 billion for the [Russia-Ukraine] war. This certainly does not help peace,” said President Zelenskyy.
Italy: Deputy prime minister Matteo Salvini urged Brussels to follow the United States. “It’s not about being pro-Putin, or anti-Putin,” but making pragmatic choices, he said.
China: China has been importing Russian oil uninterrupted through 2025. With interruptions to oil imports from the Persian Gulf and Venezuela, China is set to buy more Russian oil.
What to watch:
How will the United States, Israel, and Iran de-escalate and end the conflict?
Will the lift on Russian and Iranian sanctions extend beyond 30 days?
Energy Opportunities 2026 – Rio de Janeiro
Connect with global decision-makers and gain insight into the trends, technologies, and opportunities shaping exploration, energy transition, and sustainable development.
Shell, ExxonMobil, COP, and Repsol Win Bids in Alaska
Oil platforms in the Cook Inlet.EWY Media/Shutterstock.com
The U.S. Bureau of Land Management announced that Shell, Repsol, ConocoPhillips, ExxonMobil, and other players were the winners for the onshore lease sale to explore the National Petroleum Reserve-Alaska (NPR-A) region. Total bids amounted to roughly $250 million in the BLM’s first lease sale in seven years. The lease sale was considered the most-successful in the NPR-A leasing history.
By the numbers:
According to the BLM, a total of 5.5 million acres in 625 tracts were offered during the lease sale. About 1.3 million acres were awarded.
Shell (70 percent) and Repsol (30 percent, operator) committed $93 million in high bids across 42 contiguous tracts, covering 230,000 acres that are close to the West Willow field of COP.
COP, the biggest Alaska producer, was the third-largest bidder, committing $21 million, winning 30 tracts, and adding to its existing 1 million acres in the NPR-A region. Total bids for COP amounted to $39 million.
Epoch Oil and Gas was the fourth-largest bidder, winning eight tracts with $16.8 million in high bids and total bids of $22 million.
ExxonMobil also returned to exploration in Alaska. It was the fifth-largest bidder, committing $7.6 million in high bids and securing 24 tracts, after competing in 69 tracts with a total bid of $22 million.
Armstrong Oil and Gas, through its subsidiary North Slope Exploration, was the second-highest bidder, committing $22 million and securing 78 tracts.
Other winners during the bid included Santos, Peritas, SE Partners, and Beacon Land Management, which collectively committed $2.1 million and won five blocks, after bidding for a total of $19 million.
What they are saying:
“This is the strongest sale we have ever had in the National Petroleum Reserve in Alaska by nearly every measure,” said Kevin Pendergast, BLM’s State Director for Alaska.
“Alaska has resources that are company-changing for a company the size of Repsol,” said Francisco Gea Pascual de Riquelme, Executive Managing Director for E&P, Repsol, on 24 March during the CERAWeek conference.
“We are very pleased to participate in this Alaska bid round, after it last held a lease sale for this region seven years ago in 2019,” said Colette Hirstius, President of Shell USA, at the same CERAWeek session on 24 March.
Why it matters:
As countries and companies re-adjust the pace of their energy transition, growth opportunities have returned to oil and gas companies.
This is especially true for European majors such as Shell and Repsol, which were on a different growth trajectory several years ago.
This is a major portfolio reload for Shell, which was once the leading IOC in global exploration. Shell exited from its Alaska E&P activity in 2024.
The partnership with the minority holder and operator Repsol allows Shell a low-footprint region/country re-entry.
ExxonMobil has a long history as a major oil and gas producer in Alaska, especially along the North Slope.
Go deeper: For details of this Alaska lease sale result, refer here.
Sponsored
Call For Expression of Interest
Licensing round of nine free blocks of the Cameroon oil and gas domain.
