Page 6 - LatAmOil Week 26

LatAmOil COMMENTARY LatAmOil

NRG: Trying to adapt

World oil markets have found some support over the last week,

but companies are still adjusting to the new price environment

COMMENTARY WELCOME to the latest edition of NewsBase’s scrutiny in Africa and the Middle East, as well as
Roundup Global (NRG), in which our team of Russia.
international editors provide you with a snap-
shot of some of the key issues affecting their African pipelines in the spotlight
regional beats. Get the NRG Oil & Gas Editor’s Pipeline construction plans are moving to centre
Picks to your inbox every week for free. Just sign stage in both East Africa and Nigeria.
up here. On the eastern side of the continent, Tanza-
Crude oil prices slipped last week but have nia is gearing up for talks with France’s Total on
regained ground in the early part of this week, with a host government agreement (HGA) for the
front-month contracts for WTI and Brent clos- East Africa Crude Oil Pipeline (EACOP), which
ing at $38.60 and $41.02 respectively on June 29. will pump crude from the Lake Albert region in
This upswing appears to indicate that the OPEC+ Uganda to the coast of the Indian Ocean. Total
group’s production agreement is lending some sup- has already sent a team to Kampala to negotiate
port to world oil markets, which are under some an HGA with Ugandan officials and will soon
bearish pressure as inventory levels remain high send the team to Dodoma, Tanzania’s capital,
and the number of coronavirus (COVID-19) cases according to Salum Mnuna, EACOP’s national
rises in the US and elsewhere. co-ordinator for the latter country.
Meanwhile, oil and gas firms around the world Further west, Nigerian National Petroleum
continue trying to adapt to a lower price environ- Corp. (NNPC) has had to push back the comple-
ment. Some are looking to divest and privatise tion date for the Obiafu-Obrikom-Oben (OB3)
assets in order to streamline their operations, while natural gas pipeline once again.
others – including a big name in the US unconven- It has attributed the delay, which will affect
tional sector – are declaring bankruptcy. plans to deliver gas to power plants, to technical
Meanwhile, midstream projects are also under problems.

P6 www. NEWSBASE .com Week 25 25•June•2020