Page 4 - GLNG Week 32

GLNG NEWSBASE’S ROUNDUP GLOBAL (NRG) GLNG
NRG: Bad news, good news
Amid bad news including the explosion in Lebanon and concerns about security at storage facilities in Libya, progress is being made elsewhere, with a licensing round launched in Somalia and a major acquisition announced in Canada
NRG
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Market conditions remain challenging glob- ally, and the ongoing pile-up of second-quarter losses and revenue declines being announced by oil and gas companies illustrates this. Notably, Saudi Aramco saw its net income for the first half of this year fall by 50%, while a number of Cana- dian and US producers added to the growing list of North American companies announcing quarterly losses.
Meanwhile, the government of Lebanon has resigned following a major explosion in Beirut, which occurred at a warehouse storing thou- sands of tonnes of ammonium nitrate, and warn- ings have been issued about security conditions at storage facilities in Libya.
It has not all been bad news, however, with a major acquisition announced in Canada and Somalia launching its first-ever offshore licens- ing round.
Africa: Tension rising in Libya
North Africa appears to be a hot spot this week. Mustafa Sanalla, the chairman of National Oil Corp. (NOC), has raised concerns about security conditions at the storage facilities that serve Lib- ya’s export terminals on the Mediterranean Sea.
Sanalla claims that these depots are facing heightened risks now that militia groups have seized control of key oil and gas infrastruc- ture. Libya may also be facing broader risks, as the maritime accord it signed with Turkey last December conflicts with a new agreement between Egypt and Greece on exclusive eco- nomic zones (EEZs) in the eastern Mediterra- nean Sea.
Meanwhile in East Africa, Somalia’s govern- ment has launched its first offshore licensing round. The bidding contest will include only seven blocks, instead of the originally planned 15. The newly created Somali Petroleum Author- ity (SPA) hopes to wrap up the auctions and sign contracts with new investors by the end of March 2021.
Uganda, by contrast, appears to be less certain about its timeline for oil production. France’s Total is not likely to make a final investment
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w w w . N E W S B A S E . c o m Week 32 14•August•2020