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Middle East: Iranian contract awards final Environmental Impact Statement (EIS) for
Iran this week announced the award of 13 con- the project, saying it could produce more than
tracts with 14 local companies for field devel- 160,000 barrels per day (bpd) of oil over the next
opment projects that are expected to increase 30 years.
the country’s crude production capacity by If constructed, Willow will be the west-
more than 180,000 barrels per day (bpd) once ernmost development on the North Slope. Its
complete. approval comes as the administration of US Pres-
A signing ceremony was held on August ident Donald Trump continues its broader push
17, during which the National Iranian Oil Co. to spur oil development in Alaska. Within days
(NIOC) said that the deals were for the second of Willow being authorised, the US Department
phase of a plan to maintain and increase produc- of the Interior (DoI) approved a sweeping plan
tion capacity. Of the 13 projects for which con- to permit oil leasing across the Arctic National
tracts were signed, 10 have already implemented Wildlife Refuge’s (ANWR) entire 1.56mn-acre
their first phase, reaching 25% completion. (6,313-square km) coastal plain. The area has
Meanwhile, three new wells were completed been off-limits to oil drilling for decades, and
at South Pars Phase 22, raising output from the authorisation of drilling there will run into high
overall SP 22-24 project by 200mn cubic feet levels of opposition from environmental and
(5.7mn cubic metres) per day. SP22-24 had been conservation groups. Despite strong
earmarked to produce a combined 18.6bn cubic But despite strong support for oil develop-
metres per year by March 20, 2019, but a lack of ment from the Trump administration, a number support for oil
foreign currency after the US withdrawal from of major producers are diversifying beyond oil,
the nuclear deal derailed these ambitions. likely encouraged by ongoing crude price vola- development
M&A activity continued to rebound as the tility. A prominent example of this recently has
UAE’s Senaat and other minority shareholders been Chevron, which said last week that it was from the Trump
of the National Petroleum Construction Co. investing in nuclear fusion start-up Zap Energy. administration,
(NPCC) submitted a bid to merge the firm with The super-major joins Italy’s Eni and Norway’s
the National Marine Dredging Co. (NMDC). Equinor in backing nuclear fusion start-ups to a number of
The deal would create a new regional EPC major, reduce their carbon footprint.
which already has an established footprint in The announcement came shortly after Chev- major producers
MENA and South Asia and a combined revenue ron also unveiled a plan to construct 500 MW
of $2.4bn. of renewable energy plants to power some of are diversifying
its operations in the US’ Permian Basin and beyond oil
If you’d like to read more about the key events shaping overseas. The plants will be developed under
the Middle East’s oil and gas sector then please click a four-year agreement with Algonquin Power
here for NewsBase’s MEOG Monitor. and Utilities, and appear to mark a new level of
engagement with renewables for Chevron. At
North America: Forward momentum the same time, though, the super-major contin-
Differing approaches to the energy transition ues to move forward with oil projects, with the
mean that there is momentum on both oil pro- Wall Street Journal reporting on August 17 that
jects and diversification efforts among North Chevron is in talks over an investment in an Iraqi
American oil and gas companies. oilfield.
On August 14, the US government approved
ConocoPhillips’ Willow project in the National If you’d like to read more about the key events shaping
Petroleum Reserve-Alaska (NPR-A). The US the North American oil and gas sector then please click
Bureau of Land Management (BLM) published a here for NewsBase’s NorthAmOil Monitor .™

P10 www. NEWSBASE .com Week 33 19•August•2020