Good morning, this is the Oil Patch. We're the Robin Hood of oil and gas...and we Sherwood like to help.

Here's what the Oilman has for you today:

• The Spanish City at the Heart of a Scandal

• Freeport LNG is back in business

• British Energy Companies See Record Profits, But Government Ups Taxes

• Tweet of the Day

The Spanish City at the Heart of a Scandal

Nestled between the Mediterranean and the Atlantic Ocean, Ceuta is a city with a dark reputation.

Not only is it notorious for being a drug-trafficking hub, but it has also become a central point for ship-to-ship transfers of crude oil of unknown origin.

But is the origin unknown?

Windward Ltd has reported an increase in these STS transfers, which they say are clearly linked to Russia. This is part of Russia's plan to mask the origins of crude, as the country looks to evade Western sanctions and price caps on its products.

Tankers carrying crude oil from Russia have seen a 147% jump in port calls to North Africa.

Tankers registered in countries like Panama, Malta, Liberia, and Cameroon are being used for these activities.

A change of hands

Crude isn't the only thing being transferred. Tankers are changing ownership.

To the Oil Man, this sounds like a great way to avoid sanctions.This isn't a new ploy. Sanctioned Iranian and Venezuelan oil has already been moving in these ways, but now increasingly larger volumes of Russian oil and products have joined the fray.

From the Mediterranean to Asia

Traders are using STS transfers to move the crude from smaller to larger tankers, making the journey to Asia profitable.

Looks like Ceuta is the Mediterranean gateway through which sanctioned oil flows.

Freeport LNG is back in business

After months of being out of commission, the Texas plant is finally getting back on track.

The return of its first tanker since 2022 and the pickup of more LNG volumes from Korea's SK E&S Prism Agility have been warmly welcomed by the U.S. and global gas markets.

Although the plant is not yet at full capacity, we can expect a partial re-start this month and all three trains to come online by March.

This is great news for the U.S. gas market, as Freeport LNG is capable of providing over 20 percent of total U.S. LNG exports.

So let's hope for some strong LNG export demand from Europe and China, and perhaps, a warmer winter too!

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British Energy Companies See Record Profits, But Government Ups Taxes

Centrica and BP have reason to celebrate, with FY 2022 profits hitting record highs.

The UK government, however, isn't in a celebratory mood, as it plans to increase taxes on the energy industry.

A tale of money, power, and politics

Centrica's profits tripled to 3.3 billion pounds, boosted by its oil and gas division and nuclear power generation.

BP doubled its profits from the previous year to nearly $28 billion, despite taking a massive charge after exiting its Rosneft PJSC stake.

These record-breaking profits have led the UK government to increase the windfall tax on oil and gas producers' profits from 25% to 35%, which means energy giants like BP and Shell will now pay 75% in taxes.

Feast or famine

The UK government's move to increase taxes aims to tackle the country's cost of living crisis and improve finances for everyday British people.

Energy companies argue that the tax hike could hamper investments, but the UK government isn't buying it.

While these companies make huge profits, many households struggle to make ends meet.

That's all fine and good, but the Oil Man doesn't remember anyone calling for increased taxes to bail out the oil and gas industry in the midst of March 2020.

That line of thinking probably doesn't play too well in politics, though.

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