Page 8 - NorthAmOil Week 27

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Downstream updates in Latin America state-owned producers are starting to feel more
This week’s issue examines refineries in several confident. Saudi Arabia and Kuwait resumed
different countries and also reports on com- production from their shared Al-Khafji oilfield
plaints of excessive delays among Meican petro- in the Partitioned Neutral Zone (PNZ). The asset
leum product importers. was shut in on June 1 under the banner of efforts
Officials in Aruba have confirmed that the to adhere to OPEC+ quotas; however, the recent
search for a new operator for the San Nicolas history of the PNZ has been somewhat colourful. Noia has called
refinery, a 235,000 bpd plant formerly owned At capacity, Al-Khafji and the onshore Wafra
by Valero, is underway. Representatives of the oilfield can produce around 550,000 bpd; how- on Canada’s
Aruban government said last week that they had ever, the fields were shut in because of disagree-
teamed up with state-owned Refineria di Aruba ments between the two governments in 2014 and government to
NV (RdA) to invite qualified bidders to partic- then in 2015.
ipate in a two-tiered request for expression of Output resumed at both fields in December provide more
interest (REOI). Potential investors have been 2019, increasing to 260,000 bpd by April, with support for
asked to respond by July 17, they said. production of 130,000 bpd from each asset.
Aruba’s government is also mulling offers Wafra has remained in production since Decem- offshore oil and
from three companies interested in using the ber. Plans are in place to raise output capacity
San Nicolas refinery’s tanks to store crude oil and at the PNZ to 575,000 bpd, with an increase gas operators
petroleum products. It has not identified any of coming in the form of a 25,000 bpd ramp-up at
the bidders, but it hopes to sign a lease contract al-Khafji, currently capable of 300,000 bpd.
with the winner of the tender by August 1. Meanwhile in Oman, signs of a rebound in
Meanwhile, KBR has agreed to supply exploration came by way of Sweden’s firm Tethys
Uruguay’s state oil company Administracion Oil signing an exploration and production-shar-
Nacional de Combustibles Alcohol y Pórt- ing agreement (EPSA) for the Sultanate’s onshore
land (ANCAP) with technology for a refinery Block 58.
upgrade project. Under a new contract with The company has a growing presence in
ANCAP, the US-based oilfield services giant will Oman and has taken advantage of the down-
help Uruguay’s NOC upgrade the 50,000 bpd turn to increase its asset base. But its example is
Eduardo Acevedo Vázquez refining complex at unlikely to be followed in the region, with only
La Teja. KBR’s technology will allow the plant to Israel holding an active 2020 bidding round.
produce more high-value light fuels. In the UAE, though, Abu Dhabi National Oil
In Mexico, independent fuel importers have Co. (ADNOC) has taken advantage of the dip
complained that bureaucratic procedures are in demand to take the giant Bab oilfield offline
becoming more of a burden. Firms not affiliated for scheduled maintenance, with production to
with Pemex, the national oil company (NOC), remain shut-in until late July. Prior to the shut-
say that customs inspectors are throwing up down, production from Bab was running above
unnecessary roadblocks to shipments of refined 370,000 bpd of light, sour Murban crude, which
fuels, especially diesel. has an API gravity of 40.5°. Bab has a capacity of
420,000 bpd. The move also aligns well with the
If you’d like to read more about the key events shaping UAE’s OPEC+ commitments, with July the final
the Latin American oil and gas sector then please click month before the reductions are eased..
here for NewsBase’s LatAmOil Monitor.
If you’d like to read more about the key events shaping
Middle East: OPEC+ compliance the Middle East’s oil and gas sector then please click
In the Middle East, there were signs that here for NewsBase’s MEOG Monitor.

P8 www. NEWSBASE .com Week 27 09•July•2020