U.S. Firm Sells $1.4B Oil Assets to UK Firm
Sources: WSJ, 2023.02.20 ISM Roundup
U.S.-based Chesapeake Energy sold oil assets worth $1.4 billion in Texas to U.K.-based Ineos. This deal follows Chesapeake’s recent $1.4 billion sale in the same shale basin to a U.S. firm WildFire Energy I LLC. Both of these sales may help Chesapeake refocus on low-cost gas wells. As the fourth largest chemical company in the world, Ineos is entering the U.S. oil and gas production market for the first time. This month, the UK was designated as an exempted foreign state for CFIUS reviews.
FIRB Approves $2B Iron Ore Joint Venture
Sources: SMM, Reuters, Taiwan News
FIRB has cleared the $2B Iron Ore joint venture in Western Australia between state-owned firm China Baowu and Anglo-Australian firm Rio Tinto. The two entities already have a JV in the eastern part of the country and hope this extension of the partnership will further centralize their iron ore purchasing processes. The firms also signed a procurement agreement and expect to begin production in 2025. The world’s second largest metals and mining firm, Rio Tinto receives more than 50% of its annual revenues from China, and the Chinese state-owned Chinalco owns roughly 14% of the firm. Less than a week ago, Rio Tinto formally changed its designation of Taiwan in its regular revenue reports. Revenues from Taiwanese clients will be reported as coming from “Greater China,” rather than the previous designation of “other Asian regions,” which excluded China and Japan.
Ireland and Portugal End “Golden Visa” Real Estate Programs
Sources: Forbes, 2023.01.09 ISM Roundup, Schengen Visa
Ireland and Portugal have begun the processes to end their “Golden Visa” programs that were begun in 2012 and 2013 respectively. These programs granted non-EU nationals residency in exchange for purchasing real estate and other investments in the country. While these programs have generated billions of euros and admitted thousands of applicants, the governments are disbanding the programs over real estate price speculation concerns. Britain ended its similar program a year ago. Spain is considering ending its own initiative. This past week, Greece has doubled its own program’s minimum investment from €250,000 to €500,000.
