Page 6 - LatAmOil Week 35

LatAmOil NEWSBASE’S ROUNDUP GLOBAL (NRG) LatAmOil

NRG: Risks to stability

Oil prices have changed very little in recent weeks, disappointing hopes for a rebound

in late summer. And prices could falter if fears of a second COVID-19 wave are realised

COMMENTARY WELCOME to the latest edition of NewsBase’s in Spain and some other European countries is
Roundup Global (NRG), in which our team of disconcerting.
international editors provide you with a snap-
shot of some of the key issues affecting their Africa: South Sudan looks to 2027
regional beats. Get the NRG Oil & Gas Editor’s South Sudan’s oil industry has suffered some
Picks to your inbox every week for free. Just sign setbacks this year. Fallout from the coronavi-
up here. rus (COVID-19) pandemic has caused crude
Oil prices have remained relatively stable over production levels to remain at 170,000-180,000
the past week, despite hurricanes that temporarily barrels per day (bpd), falling short of the target
took some 2mn barrels per day (bpd) of oil supply level of 200,000 bpd. Nevertheless, the national
in the US Gulf of Mexico offline. Brent remains at oil company (NOC) Nilepet is looking ahead
just above the $45 per barrel mark, having seen and preparing for the time when it will assume
very little change over the last month. This has dis- operatorship of fields now under the control of
appointed those that had hoped for a late-summer foreign companies.
rebound. The shift looks set to begin in 2027, when the
Prices have also been supported by news in licence granted to China National Petroleum
Libya, where the Libyan National Army (LNA) Corp. (CNPC) and other investors in the Dar
has rejected a ceasefire with the government. This Petroleum Operating Co. (DPOC) consortium
means the country’s oilfields will remain shut-in for is due to expire. DPOC, which is developing
longer. Blocks 3 and 7 in the Melut basin, produces more
Fuel demand remains stuck below pre-coro- than half of South Sudan’s current oil output.
navirus (COVID-19) levels, even though low Meanwhile, Total (France) and its partners
prices have encouraged consumption. Meanwhile, are also optimistic about South Africa’s offshore
countries across the world are bracing for a second zone. The group has spudded its first exploration
wave of the virus, which risks derailing the mar- well at Luiperd, a section of the Block 11B/12B
ket’s recovery. A surge in cases in the last few days licence area.

P6 www. NEWSBASE .com Week 35 03•September•2020