Page 10 - LatAmOil Week 43 2020

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Mideast: Iraq plods on despite delays this week. Cenovus Energy has struck a deal to
Iraq’s oil minister this week said that the country acquire Husky Energy for CAD3.8bn (2.9bn), or
still intends to increase oil production capacity to CAD10.2bn ($7.7bn) including the assumption
7mn barrels per day (bpd) by 2027 despite facing of debt.
significant issues in financing new projects and This makes it the largest Canadian oil and
delays at those already in the pipeline. gas deal in nearly four years based on enterprise
The minister expressed confidence that value, and it comes as consolidation picks up
despite delays and payment issues, IOCs will in both the US and Canada. More stock-based
remain, without any developments being can- deals with low premiums are expected.
celled or postponed. Meanwhile, the ministry For Cenovus, the third-largest Canadian
has engaged in discussions with France’s Total producer by output, the merger will narrow
over plans for the company to take over the the gap with top producers Canadian Natural
development of one or more gas projects in the Resources Ltd (CNRL) and Suncor Energy. Sep-
Western Desert and near Basra. arately, the provincial government of Alberta
Russia’s Lukoil also said this week that it has announced that it will end mandatory pro-
intends to increase its oil production in Iraq duction curbs at the start of December, a month A merger
once output restrictions imposed by the OPEC+ earlier than previously scheduled.
group have been lifted. This comes as Alberta’s production continues involving two
Lukoil Mid-East’s managing director Egor to be reduced as a result of companies reining in major Canadian
Zubarev said that the company had intended to output in response to the coronavirus (COVID-
increase output at the supergiant West Qurna-2 19) pandemic. Alberta Minister of Energy Sonya producers has
field by 80,000 bpd, but it has actually cut pro- Savage said nearly 16% of the province’s crude
duction by 120,000 bpd in accordance with a output was currently offline. This, in turn, has been announced
request form the Iraqi oil ministry. eased congestion on pipelines carrying oil out of
In Iran, a group of Indian developers have Alberta – which is what the province’s govern- this week
finally lost out on the Farzad-B gas field, which ment had been seeking to achieve through the
has now been awarded to local firm PetroPars, mandatory curtailments prior to the pandemic.
a subsidiary of the National Iranian Oil Co. The government had already been gradually
(NIOC). Tehran had previously issued numer- easing the curtailments since taking office last
ous ultimatums to the group to make progress. year, and the latest industry downturn, exacer-
The US, meanwhile, announced a new raft bated by COVID-19, has allowed it to speed up
of sanctions on Iran, its Oil Ministry, NIOC and the process.
others in a move appearing to be more about the The current shut-ins mark an improve-
look than the substance as President Donald ment from 22% of the province’s oil output – or
Trump prepares for the upcoming election. 880,000 barrels per day (bpd) – being shut in at
the peak of the production cuts during the worst
If you’d like to read more about the key events shaping of this year’s downturn. Nonetheless, it appears
the Middle East’s oil and gas sector then please click that mandatory curtailments are no longer
here for NewsBase’s MEOG Monitor. needed as producers keep some demand shut in
voluntarily.
North America: Consolidation in Canada
It has been an eventful few days for Canada’s oil If you’d like to read more about the key events shaping
and gas industry. A new merger involving two the North American oil and gas sector then please click
major Canadian producers was announced here for NewsBase’s NorthAmOil Monitor.™

P10 www. NEWSBASE .com Week 43 29•October•2020