Total renounces oil survey work off Western Sahara
Total renounces oil survey work off Western Sahara
“Total has informed the Moroccan authorities that it would not request a new extension of its reconnaissance authorization in the Anzarane block,” said the source.
“The first analysis of seismic data didn’t find anything,” added the source.
However the decision comes less than two weeks after a farm trade deal between the European Union and Morocco was annulled by the EU’s top court because it illegally involved the disputed region of Western Sahara.
It also comes as oil companies are slashing investment as oil prices slide to 11-year lows, making many offshore projects no longer financially attractive.
Total received the contract to conduct geological survey work in the vast 100,000 block off Western Sahara in December 2011 and it was extended to December 2015, according to Total’s website.
The agreement excluded formal exploration work.
“The results of the geological surveys conducted in the Anzarane block... were not encouraging and the reconnaissance authorization will not be transformed into an exploration license,” a Total spokesman told AFP. Total’s work off Western Sahara had been controversial as the region has been disputed since Morocco took control of most of the territory in November 1975 after the end of Spanish colonization, unleashing a war for independence that lasted until 1991.
A UN-brokered cease-fire between Morocco and the Polisario Front, a movement in Western Sahara that has been campaigning for independence for decades with the backing of Morocco’s arch-rival Algeria, has held since then, but UN efforts to organize a referendum on the territory’s future have been resisted by Rabat.
Total insists on its website that independent experts it had consulted said the geological and geophysical works it carried out in the Anzarane block were “not legally in breach with international law or the United Nations charter.”
The Total spokesman said the company remains committed to the Moroccan market, noting in particular its filling station network had listed on the Casablanca stock exchange, as well as discussions on importing liquefied natural gas.
Harley-Davidson to move some production out of US to avoid EU tariffs
- The shift in production is an unintended consequence of Trump’s administration imposing tariffs on European steel and aluminum
- In response to US tariffs, the EU began charging import duties of 25 percent on a range of US products
Harley-Davidson Inc. said on Monday it would move production of motorcycles shipped to the European Union from the United States to its international facilities and forecast the trading bloc’s retaliatory tariffs would cost the company $90 million to $100 million a year.
The shift in production is an unintended consequence of US President Donald Trump’s administration imposing tariffs on European steel and aluminum early this month, a move designed to protect US jobs.
In response to the US tariffs, the European Union began charging import duties of 25 percent on a range of US products including big motorcycles like Harley’s on June 22.
In a regulatory filing https://bit.ly/2tA1ru0 on Monday, the Milwaukee, Wisconsin-based company said the retaliatory duties would result in an incremental cost of about $2,200 per average motorcycle exported from the United States to the European Union, but it would not raise retail or wholesale prices for its dealers to cover the costs of the tariffs.
The company expects the tariffs to result in incremental costs of $30 million to $45 million for the rest of 2018, the filing said.
“Harley-Davidson believes the tremendous cost increase, if passed onto its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region,” the company said.
Struggling to overcome a slump in US demand, Harley has been aiming to boost sales of its iconic motorcycles overseas to 50 percent of total annual volume from about 43 percent currently.
In January, the company announced the closure of a plant in Kansas City, Missouri as part of a consolidation plan after its motorcycle shipments fell to their lowest level in six years.
In 2017, Harley sold nearly 40,000 new motorcycles in Europe which accounted for more than 16 percent of the company’s sales last year. The revenues from EU countries were second only to the United States.
Harley said ramping-up production at its overseas international plants will require incremental investments and could take at least nine to 18 months.
The company will provide more details of the financial implications of retaliatory EU tariffs and plans to offset their impact on July 24 when its second-quarter earnings are due, the filing said.
Trump vowed to make the iconic motorcycle maker great again when he took office last year.
In late April, Harley said Trump’s metal tariffs would inflate its costs by an additional $15 million to $20 million this year on top of already rising raw material prices that it expected at the start of the year.