Page 8 - MEOG Week 43
P. 8

MEOG                                   FINANCE & INVESTMENT                                            MEOG


       Valeura selling Turkish gas




       business to UK-based TBNG




        TURKEY           OIL and gas explorer Valeura Energy said on   Valeura is continuing to look for a new part-
                         October 20 it has agreed to sell its conventional  ner to join it at Banarli, with Guest telling S&P
                         gas production business in Turkey to UK-based  Global Platts in May that it expected offers from
                         TBNG for $15.5mn in cash.            potential partners by the end of 2020.
                           Under the signed deal, the buyer will pay   The transaction to sell the convention gas
                         Canada-based Valeura an additional $1mn to  business will be processed through the sale of
                         $2.5mn in royalties over a five-year period upon  all shares in Thrace Basin Natural Gas (Tur-
                         the closing of the transaction, Valeura said in a  kiye) Corporation and Corporate Resources
                         statement. Valeura added that it plans to plough  B.V. These are the subsidiaries through which
                         the proceeds from the sale into mergers and  Valeura holds its conventional gas production
                         acquisitions that will accelerate its growth.  assets in Turkey.
                           Valeura plans to develop the deep gas play   Valeura is retaining its interest in its 20 trn
                         at the Banarli block in the Thrace Basin took a  cubic feet Tcfe unconventional gas play in the
                         blow earlier this year when Norwegian partner  Thrace Basin. It will also keep access to local gas
                         Equinor exited the project. The partnership was  markets via existing gas transportation and pro-
                         working on developing the unconventional gas  cessing infrastructure for use in its ongoing deep
                         accumulation following a successful explora-  gas appraisal activities.
                         tion well – Yamalik-1 – announced in 2017. An   Valeura expected that the transaction would
                         appraisal well, Inanli-1, was drilled at the site in  be closed in the first quarter of 2021.
                         2019. Despite Valeura saying subsequent flow   “We are continuing in our commitment to
                         tests from the well and a second well, Devepi-  Turkey as we appraise our 20 Tcfe unrisked mean
                         nar-1, were encouraging, Equinor decided to  prospective resource deep tight gas play,” Valeura
                         exit.                                CEO Sean Guest said.™







       SABIC swings back to profit in Q3





        SAUDI ARABIA     SAUDI petrochemicals giant SABIC returned  continued to allow us to meet the challenges fac-
                         to profit in the three months ending September  ing the global economy, while our business and
                         30, following a string of three straight quarterly  operational performance continued to demon-
                         losses, thanks to the reversal of impairment  strate resilience.”
                         charges.                               Looking forward, SABIC warned that there
                           The  world’s fourth-biggest  petrochemi-  was still a global oversupply of its key products
                         cals manufacturer achieved a 47% jump in  and that this would weigh down on prices and
                         net income to SAR1.09bn ($291mn), up from  weaken its margins for the foreseeable future.
                         SAR740mn a year earlier. Besides the reversal of  The petrochemicals sector, like other industries,
                         SAR690mn in asset impairments, the company’s  must adapt to a “new normal,” al-Benyan said.
                         stronger performance came from higher prices   The improved result will be welcomed by
                         and increased production and sales volumes for  Saudi Aramco, which became SABIC’s parent
                         some products.                       in June after closing the purchase of a 70% stake
                           Revenues were still down 11% year on year  in the company from Saudi wealth fund PIF for
                         at SAR29.3bn, although this represented a 19%  almost $70bn. Aramco will pay for the shares in
                         recovery quarter on quarter. EBITDA came to  instalments dating all the way to 2028.
                         SAR5.67bn, marking a 26% decline y/y but a   Global demand for petrochemicals is begin-
                         62% gain q/q.                        ning to pick up again from lows experienced
                           “The third quarter of 2020 benefited from  earlier this year. But the market is still over-
                         an improvement in economic activity and an  supplied, prompting some operators to scale
                         increase in oil prices, which translated into  back investment plans. Aramco and SABIC
                         higher product prices,” SABIC CEO Yousef  announced earlier this month they were consid-
                         al-Benyan said in a statement. “During this  ering downsizing a $20bn oil-to-chemicals plant
                         time, the strength of our global supply chain  in Yanbu.™




       P8                                       www. NEWSBASE .com                        Week 43   28•October•2020
   3   4   5   6   7   8   9   10   11   12   13