Page 10 - LatAmOil Week 35

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Middle East: Drilling, discoveries and deals severe industry downturn that began in March
Iran announced this week that local firm Pet- and was compounded by the spread of corona-
ropars would soon begin drilling at South Pars virus (COVID-19). Demand is picking up and
Phase 11, the project that was awarded to French crude prices have stabilised recently, but they
super-major Total and China’s CNPC under an remain unfavourably low, and market conditions
integrated petroleum contract (IPC). The part- are still relatively challenging for producers.
ners withdrew from the project in August 2018 Over the past week, it emerged that Norway’s
and October 2019 respectively, leaving Petropars Equinor is set to cut jobs “significantly” in the US
to go it alone. and Canada – as well as in the UK. An Equinor
With Iran determined to press ahead with spokesman told Reuters that employee numbers
projects to raise oil and gas production capac- in these countries would be cut by around 20%, Players in the US
ity, drilling is now set to begin by the end of the while contractor numbers would be reduced by
autumn at SP11, with gas expected to reach around 50%. Gulf of Mexico
onshore facilities in the next 12 months. Equinor will also not drill any new uncon-
On the other side of the Gulf, Saudi Ara- ventional wells in the US this year, according to have had to
mco has reported the discovery of two new oil the spokesman. The company has acreage in the contend with
and gas fields in the north-east of the country. Marcellus and Bakken formations. It is one of
Though they are comparatively miniscule by numerous producers scaling back its shale oper- disruption caused
Saudi standards, the finds offer a ‘good news’ ations in response to the downturn.
story for Aramco during what has so far been an Separately, leading independent US shale by Hurricane
incredibly challenging year. The company will players Pioneer Natural Resources and Parsley
now carry out further appraisal work to establish Energy were reported to be planning to cut staff Laura last week
reserve levels and development plans. numbers in the coming days.
Following the announcement of a handful of On top of the ongoing challenges related to
deals between US firms and the Iraq government the industry downturn, energy sector players
last week, MEOG has been provided with details in the US Gulf of Mexico and on the Gulf Coast
about Baghdad’s plans for the Thi Qar project have had to contend with disruption – and in
under discussion with Chevron. some cases damage – caused by Hurricane Laura
last week. Over the last few days, operations were
If you’d like to read more about the key events shaping being restored across oil platforms in the Gulf,
the Middle East’s oil and gas sector then please click refineries and LNG export terminals, among
here for NewsBase’s MEOG Monitor. other facilities. On August 31, it was reported
that a US Strategic Petroleum Reserve (SPR) site
Job cuts hit North America’s oil industry in Louisiana, West Hackberry, had sustained
Further job cuts have been reported in recent “considerable damage” as a result of the storm.
days to be looming for oil and gas producers with
operations in North America. If you’d like to read more about the key events shaping
This comes as producers on the continent the North American oil and gas sector then please click
continue to struggle to bounce back from the here for NewsBase’s NorthAmOil Monitor. ™

P10 www. NEWSBASE .com Week 35 03•September•2020