Vitol sells VTX Energy Partners to Verde Operating Company. Vitol has agreed to sell its US upstream company, VTX Energy Partners, LLC (VTX) to Verde Operating Company, LLC (Verde) for an undisclosed sum, subject to certain customary conditions precedent. VTX was created in 2022 by Vitol and the former ATX management team, led by Gene Shepherd and Erik Hoover. Today, VTX is a successful operation, producing 60,000 barrels of oil equivalent a day in the southern Delaware Basin, spanning Reeves and Pecos counties, Texas. Ben Marshall, head of Americas, Vitol said: "VTX's success demonstrates what a committed and expert team can deliver. Their professionalism and capital discipline has been exemplary. It has been a pleasure to work with Gene, Erik and the team and we wish them every success in the future." Gene Shepherd said: "I would like to thank Vitol for the opportunity of building VTX into the successful business it is today. It is a great time for US energy and I am really excited by the next chapter for VTX with Verde." Verde will fund the acquisition utilizing equity commitments from funds managed by Carnelian Energy Capital Management, L.P. and EnCap Investments L.P., together with additional equity investments from Chief Capital, HF Capital, Formentera Partners, management and a group of other co-investors. Vitol was advised by Goldman Sachs & Co. LLC and Kirkland & Ellis LLP as financial and legal advisors, respectively. Gibson, Dunn & Crutcher LLP served as legal advisor to Verde. Morgan Stanley & Co. LLC served as lead financial advisor, with TPH&Co., the energy business of Perella Weinberg Partners, also acting as financial advisor to Verde on the acquisition of VTX. Wells Fargo Securities, LLC and BofA Securities, Inc. will lead the syndication of a new reserves-based credit facility to support the transaction.

South Africa LNG imports could answer both the gas cliff and the power cliff. 23rd July, 2026 Long Walk to Power Resilience - Unlocking LNG into South Africa By Paul Eardley-Taylor, Gas Sector Lead, Standard Bank Group Gas means different things in different geographies. In the United States of America (USA), "Gas" means natural gas or gasoline. In South Africa (SA), gas normally means Liquefied Petroleum Gas or more commonly, cylinders seen at restaurants. Globally though, gas means natural gas (methane or CH4). Gas is used across multiple applications. For example, Gas to Power (GTP), Industrial applications (steam, process heat) and heating (e.g. commercial buildings and residential) across the Northern Hemisphere. Per the Energy Institute's Statistical Review, natural gas represents 25.1% of the world's Total Energy Supply (TES). Within the power sector, 22% of the world's generation (in Terawatt Hours) comes from GTP. Within SA, both percentages are very different. Natural Gas' percentage of SA Total Energy Supply is 3.3% (largely Sasol). In the case of GTP, SA does not presently have a single Kilowatt Hour of grid-connected GTP. SA Backdrop The core reason behind SA's lack of natural gas is two-fold. Firstly, per the Energy Institute (2026), Coal remains 73% of South Africa's TES. The second reason is that, geologically, South Africa has not had historically ready access to natural gas, compared to say USA or Nigeria. As such, SA traditionally had some access to Methane Rich Gas (MRG) produced as a by-product of Sasol's coal to liquids production. This position changed in 2004 when Sasol started operating a major gas export project which transported Mozambique's onshore natural gas (from the Pande Temane fields) through the 865km Republic of Mozambique Pipeline Investments Company (ROMPCO) pipeline to Secunda. The gas was primarily for Sasol's own use in its Secunda and Sasolburg complexes, although over the years some 40 Petajoules (PJ) of natural gas has been made available for third parties, with around 25 PJ of MRG also available from Sasol, making a total third-party market of 65 PJ. As has been extensively discussed, Pande Temane's gas production is now organically declining. Sasol's date for ceasing the third-party sale of natural gas and MRG has been extended but is now scheduled to firmly cease in June 2030. This cessation of supply to industrial consumers is known as the "Gas Cliff". Without an alternative supply source, multiple SA businesses will be affected and potentially thousands of jobs could be lost. In parallel with the "Gas Cliff", the bulk of Eskom's power station fleet comprises coal-fired power stations that came online in the 1980s. Multiple stations are scheduled to reach the end of their operating life from 2030 onwards, which will reduce South Africa's available electricity generation. This is known as the Power Cliff. The argument is that importing Liquefied Natural Gas (LNG) into South Africa can help solve each of the Gas and Power Cliffs (boosting energy security). This is also being seen as a route to massively expand SA's gas supply, albeit at an incremental (LNG driven) price compared to the historical price driven by Mozambican onshore gas charged to (largely industrial) gas consumers.That said, when used in the power sector, LNG will be cheaper than diesel-fired generation. LNG Import Terminals There are two LNG terminals in advanced development (the country does not yet have an operating terminal). The Matola Floating Storage and Regasification Unit (FSRU), in Southern Mozambique, is targeted to send its natural gas through the existing ROMPCO pipeline. In time, it will also supply Southern Mozambique. This project is sponsored by Gigajoule and TotalEnergies. In Richards Bay, KwaZulu Natal, the Zululand Energy Terminal (ZET) (sponsored by Vopak, Reatile and Transnet Pipelines) was selected to own and operate a 3 MTPA Floating Storage Unit (FSRU) which in time will be supplemented by a 4.5 MTPA Storage Tank. ZET will connect to the existing Lilly gas pipeline. Both projects are expected to take Final Investment Decision (FID) in the 2nd Half of 2027. Elsewhere, LNG import terminals are also being developed at Coega by the Central Energy Fund and at Durban by Vitol Group, with the possibility also being raised of an additional import terminal at Saldanha. The Role of GTP A new LNG import terminal is argued to broadly require around 100 PJ of capacity purchases (2 MTPA of LNG) to be acceptable to its investors. As such, SA's existing gas market of 65 PJ is insufficient to support two new terminals. Accordingly, the Integrated Resources Plan 2025 (IRP) envisages the building of 6 GW of GTP by 2030 and 17 GW by 2039. This is needed not just to replace the retiring Eskom capacity, but also to support the significant Gigawatts of new Variable Renewable Electricity (VRE) capacity being built (which is inherently intermittent and weather dependent). The first key demand source is the 2 GW GTP programme promoted by the Department of Energy & Electricity, for which 2.8 GW of GTP capacity from four bids was submitted on 29th May. We understand that two bids were to have their gas sourced from Matola and two from ZET. In broad numbers, 2 GW of GTP requires the purchase of 100 PJ of terminal capacity which, when added to other sources of demand (see below) can take both terminals towards an FID in 2027. Also, in the case of ZET, we note that Eskom is planning to build 3 GW of GTP at Richards Bay, which could be seen as being executed in phases (for example, over a 5 to 10-year period). The Unknown Knowns and the potential for Investment Scale Final numbers will not be known until each constituent project reaches financial close. Given the current evidence, it is reasonable to suppose that 2.8 GW of GTP bids could have a USD 5.6 billion total capital expenditure requirement. Perhaps the two LNG terminals (assuming a Storage Tank is built by ZET) could cost USD 1.5 billion. In addition, the ancillary projects (e.g. SSLNG, Lilly Pipeline, Marine Bunkering, Avon Fuel Switch) could perhaps require another USD 500m. Accordingly, the cumulative LNG/Gas/GTP investment requirement could be around USD 7.5bn (or ~ZAR 120 - 130bn). This will be a major contribution to SA's capital formation from 2027, with most of the investment expected to come from private sources. Shortly afterwards, Eskom's first phase of Richards Bay GTP could take FID. Assuming a 1 GW development, this could be another USD 2bn, making an overall investment requirement of ~USD 9-10bn. As of July 2026, the building blocks of SA LNG Imports / Gas are starting to fall into place. For example, key target contractual counterparties have recently been announced by ZET and four GTP bids were submitted in May 2026. The next key milestone is expected to be the preferred bidder announcement for the 2 GW GTP Programme. This will then trigger intensive work towards the commercial signing and closing of all constituent projects. It is realistic to assume that individual projects can take FID / Financial Close from the 2nd half of 2027 onwards.

Refiners are edging out traders to grab a bigger share of Venezuelan oil. Oil-producing and refining firms from the U.S., and other countries, are gaining market shares in Venezuelan crude oil as they sign direct deals with PDVSA. This puts them in competition with global traders who signed 'earlier contracts' with the interim government of President Delcy Rodriguez. Vitol, Trafigura and other trading houses control the majority of Venezuela's oil exports. These agreements were signed with Caracas in January under Washington's supervision. They are able to take 100 million barrels to resell to final buyers within six months. PDVSA is gradually returning to its business model before the U.S. imposed energy sanctions on the OPEC member in 2019. This business model prioritizes supply agreements with joint-venture partners, refineries, and other direct suppliers over intermediaries. Sources involved in negotiations claim that the model could help PDVSA secure better prices in long-term sales deals. After a seven-year pause, Phillips 66 began purchasing spot cargoes in 'May from PDVSA. Shipping documents show that in July, three cargoes were allocated to the company for delivery at the main oil port of the country, Jose. According to documents, India's Reliance Industries began purchasing crude oil directly from PDVSA as early as May. These barrels will now be added to cargoes purchased from Vitol Trafigura, and Chevron in order to ensure sufficient volumes to meet the demand. Sources said that Valero Energy, Thailand's Tipco asphalt and other companies are expected to start direct purchases within the next few months. Documents show that as of mid-July they still had not yet been assigned loading window numbers. The four companies were under crude supply contracts with PDVSA up until early 2019 when U.S. sanctioned cut Venezuela's oil imports to the U.S.A., Europe and certain Asian countries. A company source stated that the state company wants them to return to their pool of customers in order to diversify destinations, prices and secure long-term contracts to allocate heavy grades which can otherwise be difficult to market. PDVSA, Venezuelan oil ministry, Chevron Phillips 66 Valero and Reliance all declined to comment on requests. Tipco stated that the company had not yet completed any purchases. In May, the U.S. Energy Department reported that Venezuelan oil sales totaled $2 billion to 3 billion dollars per month. About half of this volume was bound for the U.S. The Energy Department has listed TotalEnergies units, Aramco and Chevron as well as Citgo Petroleum, Exxon Mobil Marathon?Petroleum Exxon Mobil, Citgo Petroleum Exxon Mobil, Phillips 66 Trafigura Valero Vitol, PBF Energy in its list of importers to the U.S. for this year. PARTNERS EXPANDING As Venezuela exports over 1.2m barrels of oil per day (bpd), an increase of an average of 847k bpd in 2025, PDVSA's biggest partners are expanding their intakes of Venezuelan oil. Chevron?in the second-quarter exported?about 293,000 bpd?of Venezuelan crude?to its refineries?and others?, an increase of 223,000 bpd?from the previous quarter?and a step in its goal to expand output and exports?in Venezuela? Documents show that Spain's Repsol started loading Merey 16 crude directly at Jose in July, after purchasing from traders the previous months. Meanwhile, Italy's Eni was also allocated a "cargo" bound for Europe in this year. Sources said that the oil was being used to pay off pending debts owed by companies. This year, Chevron and Eni announced?expansions of oil and gas projects in Venezuela. Exports from joint ventures will?increase, putting pressure on trading firms. On their part, the 'global traders' are also looking to expand business in Venezuela. Trafigura already has a team in Caracas and Vitol will be hiring about 12 people. Venezuela's crude production is expected to increase to 1,37 million barrels per day (bpd) by the end of the year from its current 1.2 million bpd. This will allow for increased supplies and competition. (source: Reuters)