Crude prices slightly rise; Total Energies secures deal for 2 drilling blocks in Suriname

Oil prices edged up on Monday as optimism about tightening supplies from the Organization of the Petroleum Exporting Countries and its allies supported crude prices.
Brent crude futures were up 9 cents, or 0.12 percent, to $74.26 a barrel at 11:15 a.m. Saudi time. The US West Texas Intermediate crude was at $70.24 a barrel, up 20 cents, or 0.29 percent.
Last week, both benchmarks fell for the fourth consecutive week, the longest streak of weekly declines since September 2022, over concern that the US could enter a recession on “significant risk” of a historic default within the first two weeks of June.
ONEOK Inc. agreed on Sunday to buy US pipeline operator Magellan Midstream Partners in a deal valued at about $18.8 billion, bringing the natural gas-focused company into transporting refined products and oil.
ONEOK will pay $25 and 0.6670 shares of its common stock for each outstanding Magellan common unit, representing a premium of 22 percent based on Magellan shares’ closing price on May 12. The buyer will also absorb Magellan’s $5 billion debt pile.
The deal will give ONEOK access to Magellan’s refined products and crude oil transportation business. According to a presentation, the combined company will have 44 percent of its business in natural gas liquids and 21 percent in refined products.
“The combination of ONEOK and Magellan will create a diversified North American midstream infrastructure company with predominately fee-based earnings, a strong balance sheet and significant financial flexibility,” ONEOK CEO Pierce H. Norton II, who will head the combined company, said in a statement.
Goldman Sachs & Co. is the lead financial adviser to ONEOK and Morgan Stanley & Co. to Magellan.

Total Energies inks deal with Suriname for 2 drilling blocks
French oil giant Total Energies on Monday said it had reached a deal with Suriname on sharing production at two planned offshore blocks in the Latin American country.
Total Energies will operate blocks 6 and 8, with a 40 percent interest, alongside Qatar energy and Paradise Oil Co., which hold 20 percent and 40 percent interest, respectively, the French company said in a statement.