2025-04-17 07:23

British colonists seized lands inhabited by local communities Avenues for redress limited by immunities, statutes of limitations Dispute in Nandi pits local farmers against British-owned estate NANDI HILLS, Kenya, April 17 (Reuters) - A dispute between a British-owned tea plantation and a local community in western Kenya has come to the boil in what could be a sign of turbulent times ahead for tea producers facing a growing backlash over colonial-era injustices. On the rolling green hills of the Sitoi estate in Nandi County, more than 100 residents are occupying 350 acres (140 hectares) of land, picking tea and living in huts made of mud and rusty iron sheets while grazing their cattle. Sign up here. They say the land was gifted to them in 1986 by Eastern Produce Kenya. EPK, which is majority owned by London-listed Camellia Plc (CAME.L) , opens new tab, says the gift was for 202 acres (82 hectares), not the 550 acres (222 hectares) that the local Kimasas farmers' cooperative claims. Kimasas chairman Daniel Biwott said his grandfather lived on the land before it was seized by British colonists around 1905 and that reclaiming the disputed 350 acres would right a historical wrong. "Nothing has happened all these years," said Biwott, standing among knee-high bushes where he, his father and his grandfather once worked as EPK employees. "This is the time to solve it." The standoff follows several violent incidents at estates in Kenya, the world's fourth-leading tea producer. In January, a farm belonging to Sri Lankan-owned Browns Plantations was attacked and more than 100 eucalyptus trees uprooted, according to the Kenya Tea Growers Association (KTGA). The industry group said in a statement that "criminal gangs who appear to enjoy political cover" were behind the "Zimbabwe-like illegal land invasion" of Sitoi, referring to seizures of white-owned farms in the early 2000s. It said EPK was losing over $200,000 per month and the incidents threaten an industry that accounts for nearly a quarter of Kenya's export revenues and supports 5 million livelihoods. Several people working on land issues said the attacks reflect broader frustration with a failure to remedy colonial land grabs. "I have tried hard to use the legal system," said Joel Kimutai Bosek, a lawyer who has brought litigation against tea companies and the UK government on behalf of local communities without success. "I think the new or coming generation will be more aggressive." FEW REMEDIES During the colonial era from 1895-1963, British authorities seized vast tracts of land, much of which became tea plantations, according to a 2021 U.N. report. Awareness of historical injustices has grown since 2010, when Kenya established the National Land Commission (NLC) to address the issue, said Samuel Tororei, who was a commissioner until 2019. But Tororei said the commission's effectiveness was undermined by its limited mandate and an "unholy marriage" between tea companies and political elites. Under Kenya's 2010 constitution, tea companies' previous 999-year leases were reduced to 99 years but activists complain the government has not used its ownership of the land to extract meaningful concessions in land or money for local communities. "The underlying cause of tension is that you have overseas owners of large-scale plantations which are based on land that was taken from the community," said Guy Chambers, managing director from 2015-2022 of Britain's James Finlay, which had tea estates in Kenya until 2023. Kenyan government spokespeople did not respond to requests for comment. The companies say they comply with Kenyan law and accuse some politicians of exploiting historical tensions to undermine their land tenures and advance personal business interests. Other community attempts to reclaim land have yielded little. Legal options are constrained by statutes of limitations and official immunities, the U.N. report said. The private equity firm Chambers runs and a community group in the tea-growing county of Kericho jointly bid last year for estates belonging to CVC Capital-owned (CVC.AS) , opens new tab Lipton in an arrangement that would have fully transferred control to the community within two decades. Lipton eventually sold to Browns. A spokesperson for Lipton said it chose the best bidder who could help raise standards in the industry. Browns did not respond to a request for comment. In a 2019 report, the NLC called on the British government to apologise to communities in Kericho and provide reparations. The British government has not directly responded to that call. Asked for comment, the Foreign, Commonwealth & Development Office said: "We are concerned by the attacks on tea farms in Nandi and are in contact with the Kenyan authorities." 'DANGEROUS PRECEDENT' EPK first acquired land in Nandi in 1948. It said the current dispute is not over a historical land injustice but rather a gift made on a "willing donor, willing donee basis". The NLC found in 2019 that all 550 acres belonged to Kimasas. EPK contested that in court, saying Kimasas' evidence was forged. As litigation proceeded, more than 200 people, including a national lawmaker from the area, overran the disputed plot on August 3, 2023 and began plucking tea. A court issued an injunction the following day, ordering them to leave. Most did, but many then returned. In January, squatters attacked a company car and employees, EPK said. The company said police have not enforced the injunction, while the public prosecutor's office told it that any prosecutions risked interfering with the civil case. "If we allow this kind of situation where the younger generations now start saying they don't have enough and they want more, then it is a dangerous precedent that should be stopped at all costs," said EPK general manager Peter Goin. The police and prosecutor's office did not respond to requests for comment. Biwott said Kimasas felt justified occupying the land because there was no final ruling against it. https://www.reuters.com/world/africa/kenya-land-standoff-sends-warning-foreign-owned-tea-estates-2025-04-17/

2025-04-17 06:51

Board member says in "everyone's interest" to keep transition period short Some climate campaigners unhappy at lack of vote on strategy U-turn BP under pressure for more change by Elliott campaign SUNBURY-ON-THAMES, England, April 17 (Reuters) - BP's CEO Murray Auchincloss and Chair Helge Lund were re-elected on Thursday, although the sharply reduced level of shareholder support for Lund could mean his previously announced departure is sooner than expected. BP's (BP.L) , opens new tab board was up for re-election at its annual general meeting as the group faces activist shareholder Elliott Management and criticism from climate-focused investors, some of whom had called for a vote against Lund. Sign up here. BP, whose stock has been underperforming rivals including Shell (SHEL.L) , opens new tab and Exxon (XOM.N) , opens new tab for years, has been working to boost its share price. That pressure increased after Elliott Management built up a nearly 5% stake in recent months. Auchincloss received 97% of votes and Lund an unusually low 75.7%, provisional results showed. Board members need 50% of votes to be elected and typically achieve tallies near 100%. Lund announced this month he would step down likely in 2026. Board member Amanda Blanc, who is in charge of finding Lund's successor, told shareholders before poll results were announced that it was in everyone's interest to keep the transition period as brief as possible and that the search was underway. Both Lund and Auchinloss had supported previous chief Bernard Looney's 2020 plan to cut BP's oil and gas output by 40% this decade and invest heavily in renewables. A few months later BP started backtracking. In February, Auchincloss, who was finance chief under Looney, said BP would completely abandon the plan and renew its focus on oil and gas. Some climate-focused investors are unhappy that BP did not offer a vote on the strategy U-turn. "Why aren't we voting on that level of (climate) ambition?", said Matt Crossman, stewardship director at UK asset management company Rathbones. Legal & General (LGEN.L) , opens new tab, a top-10 BP shareholder according to LSEG data, meanwhile, called for a vote against Lund, citing climate and governance concerns. Lund told shareholders the board had been encouraged by the level of support in its engagement with shareholders and it had not seed a majority asking for a so-called Say on Climate vote. He also told shareholders BP had learnt from mistakes. "The company pursued too much while looking to build new low carbon businesses. And some existing businesses did not operate with the expected reliability and efficiency. I can assure you lessons have been learned from this," he said. Elliott Management did not ask BP's board any questions at Thursday's meeting. Influential proxy advisers Institutional Shareholder Services Inc (ISS) and Glass Lewis had recommended that shareholders vote in favour of the re-election of BP's 12-member board. https://www.reuters.com/business/energy/bp-leadership-faces-shareholder-vote-amid-elliott-campaign-climate-ire-2025-04-17/

2025-04-17 06:49

JOHANNESBURG, April 17 (Reuters) - South Africa's rand weakened early on Thursday against a firmer dollar, as markets awaited information on U.S. tariffs and local investors looked for news on the future of the coalition government. At 0635 GMT, the rand traded at 18.8550 against the U.S. dollar , about 0.2% weaker than its previous close. Sign up here. The dollar last traded about 0.3% stronger against a basket of currencies. "Ahead of the Easter long weekend, investors will be reluctant to take on any significant market position. There are so many daily changes that doing so would be risky," ETM Analytics said in a research note. U.S. President Donald Trump met with Japanese officials on Wednesday, in one of the first rounds of face-to-face talks since his tariffs on most countries roiled markets and stoked recession fears. Markets were also processing comments from Federal Reserve Chair Jerome Powell, who warned of the risk of slowing growth and rising prices due to tariffs. Like other risk-sensitive currencies, the rand takes direction from global drivers such as U.S. economic policy in addition to domestic factors. Local investors will eye developments around a budget stand-off between the two biggest parties in the coalition government, the African National Congress (ANC) and the Democratic Alliance (DA), over a proposed value-added tax (VAT) hike on May 1. The pro-business DA voted against the budget's fiscal framework in parliament and is challenging the VAT hike in court, raising concerns among investors over the stability of the coalition government. "All of (South Africa's) domestic political developments are not taking place in isolation. On the contrary, if left unresolved, they may compound an already uncertain international environment," ETM Analytics said. "The ZAR is therefore expected to trade cautiously with one eye on local developments and the other on the performance of the USD." South Africa's benchmark 2030 government bond was firmer in early deals, with the yield down 2 basis points to 9.16%. https://www.reuters.com/markets/currencies/south-african-rand-weaker-markets-await-tariff-local-government-news-2025-04-17/

2025-04-17 06:48

U.S. shale drillers slowing activity IEA lowers US oil production forecasts for 2025 Companies will likely delay new large project approvals LONDON, April 17 - Nimble U.S. oil producers are responding quickly to the economic turmoil sparked by President Donald Trump's trade war by slowing down drilling activity, while larger companies are rethinking big-ticket projects. This means short-term tariff drama could have long-term consequences for the U.S. oil industry. American shale drillers, particularly in the Permian basin, have upended oil markets during the past 15 years, catapulting the United States into its current position as the world's largest oil producer. Sign up here. But they are now running into an impasse. These technology-driven frackers require a relatively high oil price to expand production, between $60 to $71 a barrel, according to a recent survey of 130 producers conducted by the Dallas Federal Reserve Bank. The benchmark U.S. oil price currently sits at $63 a barrel, following a 9% drop since Trump's tariff announcement on April 2. And the gap is most likely even wider than it initially appears because the imposition of 25% tariffs on steel and 10% levy on other drilling equipment , opens new tab will almost certainly push up breakeven prices. This means many new wells will simply not be drilled. The dramatic price decline already appears to be affecting drilling activity. Drillers reduced the number of oil rigs employed in the week to April 11 by the most in any week since June 2023 to 583, energy services firm Baker Hughes said in its closely followed report. The short-cycle nature of fracking means these producers are the best positioned to respond quickly to oil price swings. Smaller firms tend to be the most sensitive to price changes, while larger shale producers such as Exxon Mobil and Chevron can use their large balance sheets to weather volatility. But given the extent of the recent price decline and the scale of the volatility, even the large players will probably retrench to the most profitable acreage within their vast shale positions. The International Energy Agency this week reduced its forecast for growth in U.S. shale oil production in 2025 by 70,000 barrels per day to 260,000 bpd to bring total U.S. crude output to 13.48 million bpd. The actual growth figure will, of course, depend on how the trade war unfolds and its impact on oil prices, but a sustained period of uncertainty and low prices would certainly be expected to drive activity sharply lower. NOT ADDING UP But much more meaningful than any short-term shifts in oil production is the heightened uncertainty over the long-term outlook that is quickly setting in among industry executives, as it will almost invariably lead to boards slowing down investments. This should have a particularly lasting effect on companies planning to invest in large oil and gas projects such as offshore fields that take years to develop and cost billions of dollars. Boards are expected to decide on more than 60 such large-scale upstream oil and gas projects this year and next, according to consultancy Wood Mackenzie. These projects would require oil prices of $42 a barrel, on average, to generate profits. At first glance, this suggests most of these projects could be cleared to go ahead with Brent crude near $65 a barrel. But the calculus is a bit more complicated. Leading oil and gas producers from Exxon and Chevron to Shell and TotalEnergies have significant overhead spending commitments to investors in the form of dividends and share repurchases, which have been the backbone of their investment proposition in recent years. For example, Exxon would require an oil price of $88 a barrel to cover its dividend and buybacks commitment this year, while Shell would need a price of $78 a barrel, according to RBC Capital Markets. Add volatile market conditions on top along with the potential impact of tariffs on operating costs, and it’s very likely that boards will hold off on making any big investment decisions. Delaying large projects that take years to develop risks creating a tighter oil market down the line. Additionally, companies may pile in with a backlog of projects once prices recover, putting pressure on oil services suppliers and generating more volatility. So the uncertainty engulfing the global economy won’t just generate short-term pain, but is likely to have a deep and long-lasting impact on an industry already facing a hazy future. ** The opinions expressed here are those of the author, a columnist for Reuters. ** Want to receive my column in your inbox every Thursday, along with additional energy insights and trending stories? Sign up for my Power Up newsletter here. https://www.reuters.com/business/energy/trade-turmoils-oil-market-bite-is-already-leaving-lasting-scars-bousso-2025-04-17/

2025-04-17 06:29

Sanctioned barrels figure in ship-to-ship transfers around Singapore, Malaysia Delivery route is longer and more costly India has cut purchase due to sanctions SINGAPORE/MOSCOW, April 17 (Reuters) - Russia's exports of Arctic oil to China are set to rise sharply in April after sellers offered wide discounts and shipment on non-sanctioned tankers to counter a U.S. embargo, analytics firm Vortexa and two Russian oil traders said. A tenth of Russia's seaborne oil exports make up the Arctic oil business disrupted by Washington's sweeping sanctions levied in January on nearly all tankers carrying supplies of grades such as ARCO, Novy port and Varandey, and producer Gazprom Neft. Sign up here. To evade the curbs, such cargoes go through international waters off Singapore and Malaysia to be transferred to Very Large Crude Carriers (VLCC) that have not been sanctioned, a process known as ship-to-ship (STS) transfers, before heading to China, said the traders and Vortexa senior analyst Emma Li. Li estimated at least 4 million barrels of Arctic oil completed STS last week and 16 million more have arrived, or will arrive, in the South China Sea this month. China's Arctic oil imports are set to rebound, given the ample supply, but the volume eventually discharged would vary, depending on logistics hurdles and buying interest from Chinese refiners, she added. Lukoil and Gazprom Neft did not immediately respond to Reuters' requests for comments. China imported 25,000 barrels per day of Arctic oil in March, according to Vortexa. One of the traders said such transfers are used because many Chinese buyers require oil to be shipped on non-sanctioned vessels so as to avoid the risk of secondary sanctions and are willing to pay higher prices for these cargoes. For example, non-sanctioned VLCC Atila loaded 2.07 million barrels of ARCO from two sanctioned tankers in March in Greater Singapore waters and discharged the cargo at the Dongying port at eastern Shandong province in April, Kpler data shows. Atila previously engaged in STS transfers for Iranian oil. Arctic grades are produced in Russia's northern regions, where harsh weather affects output and logistics, so that setting up an oil project requires gigantic investments. Light Varandey oil is produced by Lukoil, while Gazprom Neft is a producer of light Novy port and heavy ARCO. However, these shipments now take two months to reach China as the tankers are travelling via the Suez Canal, with the STS adding to shipping costs, while the shorter North Sea Route (NSR) to China is closed until July, traders said. "It's a very long and expensive route," one trader said. "The only idea is to evacuate barrels." Light Arctic oil is offered at discounts against Brent prices, down from premiums previously, the traders said. India, previously the top buyer of Arctic oil, has cut purchases due to sanctions, traders said. Arctic oil going to India is mostly Varandey supplied by Litasco, they added. This month, Indian authorities barred a tanker from transferring its Russian oil cargo to another vessel at sea. Other Arctic oil buyers include Syria, with the first shipments taking place earlier this year, and Myanmar. (This story has been corrected to rectify the data to 25,000 bpd, not 250,000 bp, and add attribution, in paragraph 7) https://www.reuters.com/business/energy/exports-sanctioned-russian-arctic-oil-china-set-rise-april-sources-say-2025-04-17/

2025-04-17 06:27

Trump's currency demands could threaten Japan's economic recovery, central bank independence Intervening to strengthen yen would require hefty selling of Treasuries Talking down the dollar is a dangerous strategy with market sentiment fragile TOKYO, April 17 (Reuters) - U.S. President Donald Trump's desire for a stronger yen against the dollar is almost certain to figure into trade negotiations with Japan underway in Washington, but analysts say any effort to shift the currencies is fraught with risks for both sides. Japan's chief negotiator, economy minister Ryosei Akazawa, got talks started on Wednesday by meeting with U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson, with Trump also making a surprise appearance. Sign up here. The White House put the exchange rate unequivocally on the agenda after Trump last month accused Tokyo of pursuing a policy to devalue the yen, giving the Japanese an unfair trade advantage. The yen didn't figure into Wednesday's negotiations, Akazawa said, but currency issues are more naturally a discussion for Finance Minister Katsunobu Kato, who will have his own round of talks with Bessent when he arrives in Washington next week for International Monetary Fund and World Bank meetings. Analysts warn that any deal on where the dollar should trade versus the yen is inherently tricky. An attempt by Tokyo to force the Bank of Japan into speeding up rate hikes could push up the yen, but risks snuffing out Japan's fledgling economic recovery and tramples on the idea of central bank independence. Japanese officials could also sell U.S. dollars for yen, but that would mean pulling out billions of dollars it has invested in U.S. debt at a time when markets are particularly fragile. Citigroup sees Japan as a prime target in the event that the Trump administration takes aim at a coordinated devaluation of the dollar to make the United States more competitive globally, a proposal dubbed the "Mar-a-Lago Accord". "At this point we do not see a 'Mar-a-Lago Accord' as a concrete risk," Citigroup currency strategist Osamu Takashima said in a research note. However, "countries such as Japan, which have sizeable foreign currency reserves and whose currency is undervalued, would tend to be the target in this case," he said. The U.S. is Japan's biggest export destination and automobile shipments account for roughly 28% of its exports there. Japan is reeling from Trump's 25% duty on cars. Since its announcement on March 26, the benchmark Nikkei share average (.N225) , opens new tab has slumped 6%. Akazawa offered few details of the initial discussions, but told reporters Trump said getting a deal done with Japan was a "top priority". MAR-A-LAGO ACCORD? The yen has already come off its lows against the dollar. In the middle of last year, the dollar was worth nearly 162 yen for the first time since 1986, the period after the Plaza Accord when Japan, Britain, Germany and France agreed with the U.S. at New York's Plaza Hotel to devalue the dollar. The Mar-a-Lago Accord is a reference to this and Trump's Mar-a-Lago Resort in Florida. This week though, the dollar dipped below 142 yen following a steep slide on fears that Trump's focus on tariffs could trigger U.S. recession. And speculative bets on further yen strength have built up to the highest levels since the Commodity Futures Trading Commission (CFTC) started recording the data in 1986. Trump and Bessent would probably be well advised to bear in mind the current environment before making any strong demands for help weakening the dollar. Unlike in 1985 at the time of the Plaza Accord, international investors hold nearly $15 trillion in U.S. government debt, which has held a special position as the benchmark for risk-free investment returns. The Trump-induced Treasuries rout this month has called those assumptions into question and, while some level of calm has returned to debt markets this week, sentiment is fragile. "We have to remember that the Treasury Secretary is the head salesperson for U.S. Treasuries," said Yunosuke Ikeda, Nomura's Japan head of macro research. "Trying to talk down the dollar would be a very dangerous strategy at the moment, even if Bessent believes in the merits of a weaker currency in the longer term." While the yen remains weak by historical standards and Tokyo also desires a stronger currency, authorities have said they hope to bolster the yen's value through initiatives such as better industrial competitiveness. That may not be the quick fix Trump is angling for. Nor can the Bank of Japan be called on to hurry rate hikes along. Rising borrowing costs and inflation are both pain points for voters, and crucial upper house elections loom in July. "The Japanese side is going to say the BOJ is independent, and they are not trying to manipulate the currency," said Shoki Omori, chief desk strategist at Mizuho Securities. "After all, we're in a tightening cycle." https://www.reuters.com/markets/currencies/why-yen-is-wrong-gambit-any-us-japan-trade-row-2025-04-17/