Page 11 - FSUOGM Week 43

FSUOGM NRG FSUOGM

once output restrictions imposed by the OPEC+ deals with low premiums are expected.
group have been lifted. For Cenovus, the third-largest Canadian
Lukoil Mid-East’s managing director Egor producer by output, the merger will narrow
Zubarev said that the company had intended to the gap with top producers Canadian Natural
increase output at the supergiant West Qurna-2 Resources Ltd (CNRL) and Suncor Energy. Sep-
field by 80,000 bpd, but it has actually cut pro- arately, the provincial government of Alberta
duction by 120,000 bpd in accordance with a has announced that it will end mandatory pro-
request form the Iraqi oil ministry. duction curbs at the start of December, a month
In Iran, a group of Indian developers have earlier than previously scheduled.
finally lost out on the Farzad-B gas field, which This comes as Alberta’s production continues
has now been awarded to local firm PetroPars, to be reduced as a result of companies reining in
a subsidiary of the National Iranian Oil Co. output in response to the coronavirus (COVID-
(NIOC). Tehran had previously issued numer- 19) pandemic. Alberta Minister of Energy Sonya
ous ultimatums to the group to make progress. Savage said nearly 16% of the province’s crude
The US, meanwhile, announced a new raft output was currently offline. Alberta’s
of sanctions on Iran, its Oil Ministry, NIOC and This, in turn, has eased congestion on pipe-
others in a move appearing to be more about the lines carrying oil out of Alberta – which is what production
look than the substance as President Donald the province’s government had been seeking to
Trump prepares for the upcoming election. achieve through the mandatory curtailments continues to
prior to the pandemic.
If you’d like to read more about the key events The government had already been gradually be reduced
shaping the Middle East’s oil and gas sector then easing the curtailments since taking office last as a result of
please click here for NewsBase’s MEOG Monitor . year, and the latest industry downturn, exacer-
bated by COVID-19, has allowed it to speed up companies
Consolidation in Canada as Alberta pre- the process.
pares to end cuts The current shut-ins mark an improve- reining in output
It has been an eventful few days for Canada’s oil ment from 22% of the province’s oil output – or
and gas industry. A new merger involving two 880,000 barrels per day (bpd) – being shut in at in response to
major Canadian producers was announced the peak of the production cuts during the worst COVID.
this week. Cenovus Energy has struck a deal to of this year’s downturn. Nonetheless, it appears
acquire Husky Energy for CAD3.8bn (2.9bn), or that mandatory curtailments are no longer
CAD10.2bn ($7.7bn) including the assumption needed as producers keep some demand shut in
of debt. voluntarily.
This makes it the largest Canadian oil and
gas deal in nearly four years based on enterprise If you’d like to read more about the key events shaping
value, and it comes as consolidation picks up the North American oil and gas sector then please click
in both the US and Canada. More stock-based here for NewsBase’s NorthAmOil Monitor .™

Week 43 28•October•2020 www. NEWSBASE .com P11