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The authorities are planning to award licences in May quota, which it will have to compensate for
early 2021. through deeper cuts later this year.
While Norwegian production is due to ramp Kazakhstan faced accusations of disregarding
up over the next five years, its current output is its commitments under the previous OPEC+
subdued. Gas extraction fell for the fifth month deal, which expired in April.
in a row in May, as suppliers held back volumes While its share of the cuts is far smaller than
in response to weak prices. the likes of Russia and Saudi Arabia, OPEC+’s
Oil production was up last month, but is due lead members will want to ensure that all parties
to fall in June as government-mandated cuts keep to their promises. The stakes are high, after
come into force. all, as the deal’s collapse would derail the market
In the UK, low prices will mean some fields recovery and cause oil to spiral downwards once
are shut down earlier, providing a boon to the again.
decommissioning sector in the coming years. Downstream, Russian refineries cut their
But the Oil and Gas Authority (OGA) has gasoline output to a 15-year low in May in
warned that decommissioning spending will response to a slump in fuel demand triggered
take a hit in 2020 as operators cut costs. This by coronavirus-related travel restrictions, the
could have a significant impact on the supply country’s energy ministry estimates. The speed
chain, risking undermining the UK’s status as a at which fuel demand collapsed in Russia has
global leader in decommissioning, the upstream been matched by how quickly it has recovered,
regulator warns. catching suppliers unaware. At the start of June,
Meanwhile, German power giant RWE has Russia’s energy ministry called on producers to
said it aims to finalise LNG supply contracts by cut gasoline exports and send more fuel to the
the end of this year that will underpin the devel- domestic market.
opment of what could be Germany’s first regas- In Georgia, there is progress at the West
ification terminal. That will clear the way for an Rustavi gas field, with London-listed operator
FID to be taken. Block Energy reporting the arrival of an early
There are several similar schemes currently production facility. This brings the company one
underway in Germany, but how many are real- step closer to launching gas sales from the field
ised could hinge on the government shifting its in the second half.
stance in favour of gas-derived hydrogen. Despite slashing spending by 40% in April,
Block says it remains “enthusiastically active on
If you’d like to read more about the key events shaping many fronts.” It has formed a partnership with
Europe’s oil and gas sector then please click here for international consultancy EPI to help draw up
NewsBase’s EurOil Monitor. development plans for both its existing pro-
jects and others it is looking to acquire from
FSU: OPEC+ pressures Kazakhstan Schlumberger.
Kazakhstan is reportedly being pressed by its
OPEC+ partners to better comply with agreed If you’d like to read more about the key events shaping
oil output quotas. the former Soviet Union’s oil and gas sector then
The Central Asian state failed to stick to its please click here for NewsBase’s FSUOGM Monitor.

P8 www. NEWSBASE .com Week 25 24•June•2020