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Confidence as focus returns to exploration Shell and EQT pursue new projects
Middle Eastern countries are showing an appe- Royal Dutch Shell has filed plans to start oil and
tite for resuming exploration efforts as confi- gas exploration in state waters offshore Alaska.
dence about demand recovery emerges. The proposals, which come during a challeng-
Despite recently cancelling a contract to drill ing year when many in the industry are staying
11 wells to raise heavy oil production, state- away from new offshore drilling, come after the
owned Kuwait Oil Co. (KOC) is preparing to super-major abandoned exploration in federal
launch a tender for an offshore seismic survey as waters off Alaska in 2015 following a series of
the emirate seeks to identify between six and 20 mishaps during drilling. Under the latest pro-
drill sites as part of its inaugural maritime explo- posals – which involve a different offshore region
ration effort. – Shell would form an exploration unit cover-
In Oman, while recent licensing efforts ing 86,400 acres (350 square km) and 18 Alaska
have failed, US horizontal drilling specialist Beaufort Sea state offshore leases that it holds.
EOG Resources has become the latest firm to Shell said it had identified several prospects
commit to brownfield development, signing within these leases that it believes could hold
an exploration and production-sharing agree- oil and gas accumulations. The company is pro- Energean is
ment (EPSA) for Block 36 in the south-west of posing to update seismic and geological data in
the Sultanate. 2022 and 2023, followed by exploration drilling eyeing a return to
In the Eastern Mediterranean, Energean is that would be conducted in 2024 and 2025. The
eyeing a return to exploration work as it pre- work would be carried out in West Harrison Bay, exploration work
pares for production to start at the Karish field. which is located offshore the National Petroleum
The London-listed company has signed gas sales Reserve-Alaska (NPR-A). as it prepares
deals worth over $2.5bn and it hopes to add to In a separate development – and one that for production to
its already significant resources with nearfield could also considered noteworthy during a
developments. severe industry downturn – shale gas producer start at the Karish
Meanwhile, Iraq is resuming efforts to EQT is reported to be pursuing an acquisition
re-launch the Iraq National Oil Co. (INOC) fol- in the Appalachian Basin. The company, which field offshore
lowing a failed attempt two years ago. Baghdad is the largest US gas producer by volume, has
will hope that putting full control of the sector in reportedly put in a bid for Chevron’s Appala- Israel.
the hands of one company will result in a stream- chian gas assets, according to sources familiar
lined approach; however, given the country’s with the matter, who were cited by Reuters.
record with corruption, there are fears about the According to one of these sources, EQT has
consolidation of power. offered $750mn for the properties.

If you’d like to read more about the key events shaping If you’d like to read more about the key events shaping
the Middle East’s oil and gas sector then please click the North American oil and gas sector then please click
here for NewsBase’s MEOG Monitor. here for NewsBase’s NorthAmOil Monitor .™

P8 www. NEWSBASE .com Week 38 25•September•2020