Page 10 - FSUOGM Week 34

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coronavirus (COVID-19) pandemic and result-
ing price collapse.
Russia’s offshore Arctic zone is thought to
contain many billions of barrels of oil, along with
trillions of cubic metres of gas. But the region’s
remoteness and harsh operational conditions make
development extremely costly. The well that found
Pobeda cost around $700mn, making it the most
expensive ever drilled in modern Russia.
There are also doubts about whether Rosneft
has the expertise to carry out Arctic offshore
drilling effectively without a foreign partner such
as Exxon.
In other news, Gazprom Neft has reported its
second-quarter results, with both EBITDA and
net income arriving in line with expectations.
But investors were disappointed by the compa-
ny’s negative free cash flow (FCF) of $1.1bn.
Gazprom Neft has also announced the launch
of the next phase of the Novoportovskoye oilfield
in the Arctic – one of its main greenfield projects.
The company is now drilling for oil at the field’s
northern section, in order to keep output stable.
Novoportovskoye is expected to flow 160,000
barrels per day (bpd) of crude in 2021.
If you’d like to read more about the key events shaping
the former Soviet Union’s oil and gas sector then please
click here for NewsBase’s FSU Monitor.

GLNG: Setbacks for Chevron, Sempra
LNG projects in different parts of the world –
and at different stages of development – have
suffered setbacks in recent days.
Significantly, Chevron has confirmed spec-
ulation that it will need to shut Trains 1 and 3
at its Gorgon LNG project in Australia in order According to an August 21 Reuters report that
to carry out maintenance. This comes as Train cited sources familiar with the matter, the Mex-
2 remains offline for repairs after weld quality ican government has asked Sempra’s unit in the
issues were found on propane heat exchangers, country, IEnova, to commit to another facility
prompting fears that the other trains may also in the Port of Topolobampo before it grants the
be affected. permit for Energia Costa Azul.
However, the 15.6mn tonne per year (tpy) Media have been unable to confirm any
Gorgon project will not need to be taken offline further details, but it is believed that the Ener-
altogether at any point, after Western Australia’s gia Costa Azul, which would be the first export
Department of Mines, Industry Regulation and permit of its kind for a private company in Mex-
Safety approved Chevron’s plan to stagger the ico, could still be issued promptly. Nonetheless,
shutdown of the trains. Under this plan, Chev- the report suggests that the path forward is not
ron will shut Train 1 in early October and Train entirely straightforward for Sempra.
3 in January 2021 for inspections and any neces-
sary maintenance. The super-major said Train 2 If you’d like to read more about the key events shaping
remained on track to restart in early September. the global LNG sector then please click here for
According to two Singapore-based LNG NewsBase’s GLNG Monitor.
traders cited by Reuters, Chevron has informed
Gorgon customers that it can supply them from Latin America: Corruption considerations
the Wheatstone and North West Shelf LNG Questions about corruption have come to the
plants instead while work on the trains is being forefront in Latin America’s oil and gas sector
carried out. over the past week.
In Central America, meanwhile, Sempra In Mexico, Emilio Lozoya, the former head
Energy may be facing additional hurdles as it of national oil company (NOC) Pemex, has
attempts to obtain an export permit for its pro- claimed that three former Mexican presidents
posed Energia Costa Azul project in Mexico. and various lawmakers and aides may have been

P10 www. NEWSBASE .com Week 34 26•August•2020