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In other news, Russia and Argentina are mov- CNRL is one of Canada’s largest produc-
ing forward with plans for joint production of ers, and the deal illustrates its desire to keep
steel pipes for oil and gas projects. Ricardo Lago- growing its footprint in the liquids-rich Mont-
rio, Argentina’s ambassador to Moscow, told ney shale gas play in northeastern British
Sputnik earlier this week that Tenaris, an inter- Columbia.
national company founded in Argentina, and News of the deal comes within days of
Russia’s Severstal were working together to build CNRL reporting a better-than-expected loss
a new welded pipe plant in Western Siberia. The for the second quarter of 2020. The company’s
facility is due to begin production next year and adjusted loss came in at CAD772mn ($581mn)
will reach full capacity in 2024, Lagorio said. or CAD0.65 ($0.49) per share, while Refinitiv
Elsewhere in Latin America, Mexico’s data showed that analysts had expected it to
national electricity provider CFE is under fire post an adjusted loss of CAD0.85 ($0.64) per
for burning residual fuel oil at a plant near the share.
capital that contravened regulations pertaining Other second-quarter losses also contin-
to maximum sulphur content. Shortly after a ued to pile up over the past week, extending
Reuters report brought the utility’s violations to a trend that quickly became clear after the
light, a Mexican Nobel Prize winner called for first North American producers reported
a ban on the use of heavy fuel oil in power gen- their earnings. Among those reporting a loss
eration. Residual fuel oil is plentiful in Mexico, in recent days in the US was leading shale
as the country produces large amounts of heavy producer EOG resources, which performed
crude oil. worse than analysts’ expectations. The com-
pany posted a net loss of $909.4mn, or $1.57
If you’d like to read more about the key events shaping per share, for the second quarter of 2020, from
the Latin American oil and gas sector then please click a profit of $847.8mn, or $1.46 per share, a year
here for NewsBase’s LatAmOil Monitor. ago.
A number of shale producers, including
Quarterly losses mount in North America Pioneer Natural Resources and Devon Energy,
Larger North American companies appear to have also unveiled plans for a variable divi-
be gaining the confidence to make acquisitions dend in an effort to keep rewarding sharehold-
despite the continued uncertainty over the near- ers as they struggle to deliver returns. Other
term oil and gas outlook. shale players have also said they may consider
This week, Canadian Natural Resources such a move. Pioneer’s CEO, Scott Sheffield,
Ltd (CNRL) announced that it had agreed to has suggested this could be a new model for a
acquire Painted Pony Energy for CAD461mn volatile industry that had fallen out of favour
($347mn) including debt. Indeed, the assump- with investors in recent years.
tion of Painted Pony’s debt makes up the A number of
majority of the transaction at CAD350mn If you’d like to read more about the key events shaping
($264mn), while CNRL will pay CAD111mn the North American oil and gas sector then please click shale producers,
($84mn) in cash for the company. here for NewsBase’s NorthAmOil Monitor.™
including
Pioneer Natural

Resources and
Devon Energy,
have also

unveiled plans
for a variable

dividend.

Week 32 12•August•2020 www. NEWSBASE .com P15