Page 5 - AsianOil Week 14 2021

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Maersk COO Morten Kelstrup said he aimed Brunei’s National Unitisation Secretariat (NUS)
to build on the experience the vessel had gained to develop the fields. Petronas president and
while working for Brunei Shell Petroleum (BSP), CEO Tengku Muhammad Taufik Tengku Kam-
which is a 50:50 joint venture between Shell adjaja Aziz hailed the UA as a testament to the
(operator) and the Brunei government. two sides’ synergy.
The JV picked Maersk Viking in Novem- Shell has been exploring development
ber 2020 to drill a single deepwater explora- options for Geronggong – including a tie-back
tion well, with operations slated to begin last to the already producing Gumusut-Kakap field
month and run for around 35 days. While the – for the better part of a decade and the UA could
contract’s firm value is around $9mn, includ- help speed up the process.
ing additional services provided and a mobili- BSP discovered oil at Geronggong in 2011,
sation fee, the deal also includes an additional with initial estimates suggesting that 25,000-
one-well option. 42,000 barrels per day (bpd) of production could
This week’s award comes hot on the heels of be delivered.
Malaysia and Brunei’s unitisation agreement Shell has considered the use of a floating pro-
(UA) for the offshore Gumusut-Kakap and duction, storage and offloading (FPSO) vessel
Geronggong-Jagus East fields, which straddle to unlock the field’s potential, but is understood
the two countries’ maritime border. to now favour a tie-back to its existing offshore
Malaysia’s state-owned Petronas said on facilities at Gumusut, which came online in
April 5 that the UA paved the way for both it and 2012.™

Total justifies position on Myanmar

POLICY FRENCH major Total has defended its decision in escrow in protest over the violence, it had
to continue producing natural gas in Myanmar decided against doing so for fear of exposing its
despite the military coup, arguing that to do oth- local managers.
erwise would put local staff at risk of reprisals The CEO said the company had not paid its
from the military regime. $4mn monthly tax bill since the February 1 coup
Total CEO Patrick Pouyanne told France’s “for the simple reason that the banking system
Journal du Dimanche on April 4 that his com- no longer functions”.
pany was concerned its staff might be forced to The French developer is not the only com-
work against their will at the Yadana field if Total pany weighing up the pros and cons of an opera-
opted to suspend operations. The executive said tional suspension or exit from the country.
the field was a major source of gas supply both South Korean steel giant POSCO is report-
to Thailand and the local market, adding that edly mulling how it might end its relationship
this had also contributed to its decision-making with a military backed company in Myanmar
process. Economic Holdings Ltd (MEHL), in which it
“Can we halt production of this gas that sup- owns a 70% stake. Unit POSCO C&C arm wants
plies electricity to a large population in Yangon, to either sell its 70% stake in the conglomerate
adding to their suffering?” Pouyanne said in the or buy out its partner, an unnamed source told
statement. “For their part, the Thai authorities reported on April 5.
have alerted us to the importance of this source However, the newswire quoted its sources
of energy.” as saying the South Korean company was con-
Total has been under mounting pressure cerned that any exit might endanger hundreds of
from campaigners to cease all of its Myanmar millions of dollars in profits from POSCO’s gas
operations in response to the military regime’s assets in the country.
increasing violence towards protestors. The Subsidiary Posco International operates
company has suspended new projects in the the producing Shwe field in partnership with
country. state-owned Myanmar Oil and Gas Enterprise
There are growing calls on the international (MOGE). The South Korean company also oper-
stage for the military’s violent response to end, ates Block A3, where it discovered gas via the off-
with Japanese daily The Nikkei reporting this shore Mahar well in February 2020.
week that the 10-member Association of South- Australia’s Woodside, meanwhile, began
east Asian Nations (ASEAN) was edging closer reducing staffing levels in late February and
to an emergency summit on the issue. while its existing exploration efforts are set to
Total’s Pouyanne added that while the com- continue, the company is reviewing all new
pany had considered placing its tax payments projects.™

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