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This level is “low and competitive, compared (FID) due to be taken on its first train before the
with our peers,” he said. end of July, state-owned NNPC has said. The
Low costs are now why the company is seek- country is also intending to repair and upgrade
ing to expand, despite harbouring plans to cut its existing plants, but progress has been slow.
this year’s capex budget of $4.61bn by 15-20%, Meanwhile, a Dubai-based firm called Eco-
or $691.5-922mn. The cuts were driven by a 28% mar has started up a new oil refinery in Fujairah,
quarter-on-quarter contraction in net profit in building on the UAE port’s status as a major
January-March to $275mn. hub for oil trading, bunkering and storage. US
contractor KBR has teamed up with an Indian Saudi Aramco
If you’d like to read more about the key events shap- counterpart to target contract opportunities at
ing Asia’s oil and gas sector then please click here for refining and petrochemical projects in Africa, is bringing
NewsBase’s AsianOil Monitor. the Middle East and elsewhere, while South Afri-
ca’s Renergen has partnered with France’s Total SABIC’s vast
Downstream: Aramco closes SABIC deal to market and distribute LNG from a liquefac- petrochemicals
Saudi national oil company (NOC) Saudi Ara- tion plant it is building.
mco has closed its $69bn acquisition of a major- capacity into
ity share in petrochemicals giant SABIC from If you’d like to read more about the key events shaping
sovereign wealth fund PIF. That the transac- the downstream sector of Africa and the Middle East, the fold
tion was between two state-controlled entities then please click here for NewsBase’s DMEA Monitor.
explains why it was able to go ahead despite the
market uncertainty. But Aramco, which now Europe: Norway’s new offering
has private shareholders to consider, negotiated Norway has kicked off its next offshore licensing
a longer payment schedule. round, inviting companies to bid for an extra 36
By bringing SABIC’s vast petrochemicals oil and gas blocks. Current market conditions
capacity into the fold, Aramco wants to develop may deter some from submitting offers. But
its downstream business into an effective hedge Norway’s tax system is generally successful at
against oil market volatility. But in the short term, ensuring that investment in exploration contin-
SABIC will be a financial burden. The company ues even when prices are low.
has suffered two consecutive quarterly losses in Meanwhile, those companies that are in pos-
a row, on weaker demand for petrochemicals in session of discoveries have extra incentive to
Asia and excess global supply. push ahead with development after Parliament
Elsewhere, Nigeria is looking to build a new recently approved a tax relief package.
200,000 bpd condensate refinery to ease reliance Companies have until September 22 to bid
on fuel imports, with a final investment decision for the offered acreage.

Week 25 24•June•2020 www. NEWSBASE .com P7