Page 11 - AsianOil Week 23

AsianOil NRG AsianOil

Shoots of recovery

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Welcome to the latest edition of NewsBase’s Roundup Global (NRG), in
which our team of international editors provide you with a snapshot of

some of the key issues affecting their regional beats. Get the NRG Oil &

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NRG FOLLOWING on from the mayhem of April Libya, by contrast, will not be affected by the
and May reported in previous editions, the mid- decision to extend cuts through July. Instead, it is
term future may be a little clearer after the crucial working to determine how quickly it can resume
OPEC+ meeting which agreed to extend oil pro- production at two large oilfields, El-Feel and
duction cuts through to the end of July. Sharara. Together, these two sites may bring Lib-
The ripples of quota limitations, reduced prices yan output up by as much as 390,000 bpd. This
and the changing face of the coronavirus can be would represent a nearly five-fold increase on the
seen in all of our monitors. The world as it was estimated May figure.
before February/March still seems a long way off In Kenya, Tullow Oil’s early oil produc-
but political issues still raise their head and will no tion scheme (EOPS) appears to have ground
doubt feature more in the months ahead. to a halt. The company’s upstream operations
in the Lokichar basin were already running
Production issues in Africa behind schedule, owing to the coronavirus
Production issues have been in the spotlight in pandemic and other factors. They will likely
several African countries within the last week. have to slow down further as a result of the
Nigeria, for example, has come under pres- expiration of Tullow’s two-year trucking
sure to comply with the new production quotas contract, which provided for crude to be
approved by the OPEC+ group over the week- transported to Mombasa for export. In the
end. Officials in Abuja have pledged to do so meantime, Tullow still has 185,000 barrels of
and have agreed in principle that producers unexported crude in storage at port facilities
exceeding their limits ought to compensate in Mombasa.
the group’s other members. The West African If you’d like to read more about the key
country reported extracted 1.61mn barrels per events shaping Africa’s oil and gas sec-
day (bpd) of oil in May, above the target figure tor, then please click here for NewsBase’s
of 1.41mn bpd. AfrOil Monitor.

Week 23 11•June•2020 www. NEWSBASE .com P11