Sudan Shuts Down Heglig Oil Facilities after Drone Attacks

A worker walks by an oil well at the Toma South oil field to Heglig, in Ruweng, August 25, 2018. (Reuters)
A worker walks by an oil well at the Toma South oil field to Heglig, in Ruweng, August 25, 2018. (Reuters)
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Sudan Shuts Down Heglig Oil Facilities after Drone Attacks

A worker walks by an oil well at the Toma South oil field to Heglig, in Ruweng, August 25, 2018. (Reuters)
A worker walks by an oil well at the Toma South oil field to Heglig, in Ruweng, August 25, 2018. (Reuters)

Sudan has initiated a shutdown of the Heglig oil facility following drone attacks it blamed on the Rapid Support Forces, according to a letter sent by its government to its South Sudanese neighbour and seen by Reuters.

Heglig, which lies along Sudan's southern border, houses the main processing facility for South Sudanese oil, which accounts for the majority of South Sudan's government revenues, Reuters reported.

The 2023 outbreak of the war between the Sudanese army and the RSF has disrupted the flow of South Sudanese oil to Sudan, which before the conflict had been receiving between 100,000 and 150,000 barrels of oil per day for further exports.

The letter sent by Sudan's energy ministry to its South Sudanese counterparts cited drone attacks on August 26 and 30 as the cause for the shutdown.

"Such unprovoked attacks represent a serious threat to the stability of oil flows from South Sudan and we cannot in good faith continue to man the operation there," the letter, dated August 30, said.

As a result, Sudan had instructed the Sudanese companies operating in the area, 2B OPCO and PETCO to evacuate, and said the latter would not be able to meet its lifting schedule.

"Their continued operation despite ongoing attacks by the RSF will render them inoperable in the long run," the letter said.

South Sudanese officials and the two companies could not be immediately reached for comment.

The RSF did not respond to requests for comment.



Syria Signs Gas Sector Contract with US Energy Giant

A screen displays the logo for ConocoPhillips on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
A screen displays the logo for ConocoPhillips on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
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Syria Signs Gas Sector Contract with US Energy Giant

A screen displays the logo for ConocoPhillips on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
A screen displays the logo for ConocoPhillips on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid

Syria on Tuesday signed a contract involving US oil giant ConocoPhillips to develop the country's gas sector, state media reported, as Damascus seeks to attract international energy investment.

Damascus previously signed memoranda of understanding on energy with international companies including Chevron as well as HKN Energy, which has begun managing and operating oil fields recently handed over to the government by Syrian Kurdish authorities.

State news agency SANA reported that the state-owned Syrian Petroleum Company signed "a contract with US companies ConocoPhillips and Novaterra with the aim of developing a number of gas fields in Syria and increasing production from existing fields".

The move seeks to "contribute to supporting the energy system and strengthening gas supplies required for the electricity sector and other vital sectors," it said.

In Washington last week, Syrian Petroleum Company CEO Youssef Qablawi said it would be "the biggest contract" to be signed since the new authorities took power after the December 2024 ouster of longtime ruler Bashar al-Assad.

At the signing ceremony in Damascus, Qablawi said the move was "an important step in the process of developing the gas sector in Syria".

"Through this cooperation, we look forward to increasing production, improving operational capabilities and supporting the energy system," he added.

A Syrian delegation headed by Energy Minister Mohammad al-Bashir held talks in Washington last week on investment prospects in energy and infrastructure in Syria and possible partnerships with the US private sector.

After years of civil war that fractured the country and ravaged its industries and infrastructure, Syria is seeking to modernize its energy infrastructure, attract investment and boost development as it pushes on a path of economic recovery, particularly after the lifting of Assad-era sanctions.

Syria aims to produce one million barrels of oil per day by 2030 and is seeking to broaden international cooperation on exploration and production.

Last month, Syria signed a memorandum of understanding with ConocoPhillips, France's TotalEnergies and Qatar's QatarEnergy, on offshore oil and gas exploration.

In February, it also signed a preliminary deal with US energy giant Chevron and Qatari firm Power International for offshore energy exploration.

Damascus now controls all the country's oil and gas fields, after taking over areas previously under Kurdish control in the north and northeast this year.

The deputy governor of the northeastern Hasakah province, Ahmed al-Hilali, on Monday said HKN Energy had begun managing and operating those fields.


Oil Drops About 4% to Three-month Low as Markets Weigh US-Iran Deal

AUSTIN, TEXAS - JUNE 15: In an aerial view, oil storage tanks are seen at the Sunoco LP Fuel Supply Terminal on June 15, 2026 in Austin, Texas.  Brandon Bell/Getty Images/AFP
AUSTIN, TEXAS - JUNE 15: In an aerial view, oil storage tanks are seen at the Sunoco LP Fuel Supply Terminal on June 15, 2026 in Austin, Texas. Brandon Bell/Getty Images/AFP
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Oil Drops About 4% to Three-month Low as Markets Weigh US-Iran Deal

AUSTIN, TEXAS - JUNE 15: In an aerial view, oil storage tanks are seen at the Sunoco LP Fuel Supply Terminal on June 15, 2026 in Austin, Texas.  Brandon Bell/Getty Images/AFP
AUSTIN, TEXAS - JUNE 15: In an aerial view, oil storage tanks are seen at the Sunoco LP Fuel Supply Terminal on June 15, 2026 in Austin, Texas. Brandon Bell/Getty Images/AFP

Oil prices fell about 4% on Tuesday to fresh three-month lows as markets weighed prospects for a resumption of supplies through the Strait of Hormuz alongside weaker physical demand and scant details on a preliminary deal to end the Iran war.

Brent crude futures were down $3.20, or 3.85%, at $79.97 a barrel at 1253 GMT. They earlier touched $79.61, the lowest since March 3, and the first time they have fallen below $80 since that day.

US West Texas Intermediate was down $3.52, or 4.36%, at $77.23 a barrel. WTI's intra-day nadir of $76.88 was the lowest since March 10.

Before the war started on February 28, Brent and WTI futures were trading around $65-70 per barrel.

Oil prices sank nearly 5% on Monday after US President Donald Trump announced an interim deal to end the US-Israeli war with Iran, though full details have not been released.

Iranian Foreign Minister Abbas Araqchi said on Tuesday that Iran and the US would start a new round of talks in Switzerland on Friday to reach a final agreement.

"Near-term downside risks remain as the market prices a faster reopening of the Strait and a return of stranded barrels," Saxo Bank analyst Ole Hansen said.

However, depleted inventories, seasonal demand, strategic stock rebuilding and lingering geopolitical uncertainty suggest the path back to pre-war prices may be far less straightforward than current market optimism implies, Hansen said.


Gold Rises over 1% as US-Iran Peace Deal Optimism Eases Rate Hike Bets

Two people look at gold jewelry outside a shop in the Grand Bazaar in Istanbul (AFP)
Two people look at gold jewelry outside a shop in the Grand Bazaar in Istanbul (AFP)
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Gold Rises over 1% as US-Iran Peace Deal Optimism Eases Rate Hike Bets

Two people look at gold jewelry outside a shop in the Grand Bazaar in Istanbul (AFP)
Two people look at gold jewelry outside a shop in the Grand Bazaar in Istanbul (AFP)

Gold prices rose more than 1% on Tuesday as expectations of an interest rate hike from the US Federal Reserve this year eased, following an interim US–Iran peace deal that sent oil prices and inflation fears lower.

Spot gold was up 0.9% at $4,343.51 per ounce as of 9:10 a.m. ET (1310 GMT). Prices touched their highest level since June 5 in the previous session.

US gold futures delivery added 0.2% to $4,358.90.

The interim deal announced by US President Donald Trump would extend a tenuous ceasefire agreed upon in April by another 60 days and reopen the Strait of Hormuz, which Iran has effectively blocked since the US and Israel attacked Iran in February.

"Supporting the market over the last two sessions has been the prospects of an agreement between the US and Iran in regards to ending the war," said David Meger, director of metals trading at High Ridge Futures, Reuters reported.

"What we've seen as a result of that has been short-term interest rates drop, energy prices come down, and less likelihood that the Fed will need to raise interest rates later this year."

Brent crude futures have dropped below $80 a barrel for the first time since early March, after sinking nearly 5% on Monday after the announcement of the interim deal.

Markets have pared back expectations for a Fed rate hike in December to 58% from around 70% earlier, according to the CME FedWatch tool.

Bullion has been under pressure since the onset of the US-Israeli war against Iran, as rising oil prices fuel expectations of prolonged high interest rates. Despite being an inflation hedge, non-yielding gold suffers in a high interest rate environment.

Market participants are now awaiting a series of central bank meetings this week, including the Fed's rate decision on Wednesday, the first under new Chair Kevin Warsh.

Spot silver rose 0.7% to $70.51 per ounce. Platinum gained 2.7% to $1,812.76, and palladium climbed 0.9% to $1,360.75.