Page 7 - NorthAmOil Week 48 2020

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shelf, which it estimates to hold 1-2 trillion cubic The companies are reportedly seeking to
metres of gas. It will, however, first need to drill cut costs wherever they can, in response to the
to find out how much gas is really out there and impact of COVID-19 and the worsening secu-
how much can be recovered commercially. rity situation in northern Mozambique. The
Over in Russia, both Gazprom and Tatneft negotiations are reported to be particularly sig-
reported their third-quarter results on Novem- nificant for ExxonMobil, as it has yet to make a
ber 30. While Gazprom swung to a net loss of final investment decision (FID) on the Rovuma
RUB251bn ($3.3bn), Tatneft stayed in the black, project, which is estimated to cost $30bn.
delivering a net income of $0.49bn. This comes as developers elsewhere in the
Gazprom blamed its reversal on a world are backing away from resource-shar-
RUB464.3bn foreign exchange loss relating ing. Earlier in November, it was reported that a
to the revaluation of its foreign currency-de- planned two-project development in Papua New
nominated debts. Tatneft’s board, meanwhile, Guinea (PNG) might end up being altered so
disappointed investors by failing to announce that one new project goes ahead while an expan-
a decision on a dividend for Q3 2020, implying sion of another – already operational – facility
that one is not likely to be paid. could be scrapped.

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 former Soviet Union’s oil and gas sector then please the global LNG sector then please click here for
click here for NewsBase’s FSU Monitor . NewsBase’s GLNG Monitor .

GLNG: Looking at LNG resource-sharing LatAmOil: Guyana drilling plans
The oversupply in the LNG market, which has Offshore Guyana, two consortia are hoping to
been exacerbated by the coronavirus (COVID- launch new drilling programmes before the end
19) pandemic, is prompting developers to con- of next year.
sider options including resource-sharing. This According to a statement from Canada’s Eco
is now playing out in Mozambique, where Total (Atlantic) Oil & Gas, shareholders in the Orin-
and ExxonMobil are reported to be in talks over duik block are currently reviewing several pros-
a potential resource-sharing deal. pects that may contain light sweet crude oil in
Last week, three sources familiar with the order to “provide further definition to the Cre-
matter told Reuters that the two companies taceous interpretation.” The company did not
were in negotiations, with each reportedly seek- identify any of the prospects but said that the
ing to extract more gas from a shared field that highest-graded target areas would be added to
straddles their two developments and cut costs. the drilling programme. “[We] hope to have tar-
Total is already developing its Mozambique get selection in the next six months, allowing us
LNG export terminal, which will use feedstock to begin drilling preparation in the second half of
gas from Offshore Area 1. ExxonMobil, mean- 2021,” said Gil Holzman, Eco Atlantic’s president
while, is still weighing whether to go ahead with and CEO.
Rovuma LNG, which would use feedstock gas To date, Eco Atlantic and the other sharehold-
from neighbouring Offshore Area 4. Separately, ers in Orinduik have made two non-commercial
ExxonMobil is also involved in the Eni-led Coral discoveries of heavy oil at Orinduik. Neverthe-
South floating LNG (FLNG) project, under less, Tullow Oil (UK/Ireland), the operator of the
development currently and using gas from Off- block, has remained optimistic about the group’s
shore Area 4. chances of discovering light sweet crude.
The field that straddles ExxonMobil and Meanwhile, two other Canadian companies,
Total’s project areas contains cheap and abun- CGX Energy and Frontera Energy, have secured
dant gas resources. The volume each project permission to push back their deadlines for
could extract from the shared area was set out drilling at the Corentyne block. In a statement,
in a 2015 unitisation – or resource-sharing – Frontera said Guyana’s government had agreed
agreement, but according to the sources, both to wait for another 12 months – that is, until
ExxonMobil and Total are now renegotiating November 27, 2021 – for the drilling of the next
that contract with each other. well at Corentyne. It attributed the delay to the

Week 48 03•December•2020 www. NEWSBASE .com P7