Page 17 - AsianOil Week 09 2023

AsianOil NEWS IN BRIEF AsianOil
Carnarvon Energy hires new CFO as the country's refineries take advantage has provided much-needed revenue for
The increased demand for oil from China
of cheap prices and increased domestic fuel
Carnarvon Energy, an Australian oil demand. However, Russia's plans to reduce Russia, particularly after the Group of Seven
company working with Santos to reach oil exports could limit Chinese purchases in imposed a $60 price cap on Russian crude.
FID on the Dorado offshore oil field the coming months. However, Russia's plan to cut exports will
development, has appointed Alex Doering Hefty demand from China, along with likely cap buying in the coming months.
as its new CFO, effective June 1, 2023. robust demand from India, has been driven Despite the potential for reduced buying,
Doering, currently the Financial Controller by the steep price discounts offered by Russia. the record imports from Russia demonstrate
and Joint Company Secretary at Carnarvon, The purchasing manager for a refinery in the important role that the country plays
is a qualified Chartered Accountant and Shandong said, "price is king", highlighting in China's oil supply chain. Chinese
Associate of the Governance Institute of how the country's refineries have taken companies will continue to seek out mid-
Australia with a Graduate Diploma in advantage of the lower prices on offer. to-large sized oil and gas fields and will
Corporate Finance. Doering's appointment Tanker tracking consultancies Vortexa undoubtedly look for new momentum for
follows the departure of the current CFO, and Kpler have estimated that nearly offshore oil and gas developments, helping
Thomson Naude, who has served the 43 million barrels of Russian crude oil, to fortify the resource foundation for the
company for 13 years. Carnarvon Energy including at least 20 million barrels of high-quality and sustainable development
recently sold a 10% interest in the Bedout ESPO Blend and 11 million barrels of Urals, of the industry.
Basin offshore blocks, including the Dorado will reach China in March. The previous
offshore oil field, to a subsidiary of Taiwan’s high for Russian seaborne crude imports
national oil and gas company, CPC, for a was 42.48 million barrels in June 2020, Petronas eyes clean energy
total cash consideration of $146 million, according to shiptracking data.
which will help fund the company’s share of Additionally, data showed that there growth in India, Australia
the Dorado development costs. have been record arrivals of rarely-bought
oil from Russia's Arctic, with three tankers Malaysia's state oil firm Petronas' clean
carrying about 3.15 million barrels expected energy subsidiary, Gentari, has identified
CNOOC strikes oil at Bozhong to reach China this month, after 2.7 million India and Australia as key markets for
growth and will require additional financing
barrels landed in February.
26-6 field including through pipelines. It has been to achieve its ambitious goals, according to
China is Russia's largest oil buyer,
its CEO, Sushil Purohit. Petronas created
CNOOC Limited, a Chinese oil company, taking steady volumes of ESPO crude as Gentari in June with the aim of building
has announced the discovery of the refiners, mostly independent plants, favour 30-40GW of renewable energy capacity
Bozhong 26-6 oilfield in the Bohai Sea, the oil's high quality and proximity. ESPO and producing up to 1.2 million tonnes
off China. According to the company, this Blend is a light, low-sulphur grade exported of hydrogen annually in the Asia-Pacific
discovery "brings another hundred million from Far East ports. region by 2030, along with establishing
tons of reserves." The Bozhong 26-6 oilfield However, state refiners scaled back 25,000 public charging points for electric
is located in the southern region of the buying Urals crude in late 2022 due vehicles.
Bohai Sea, with an average water depth of to concerns about sanction risks after Purohit said that both India and Australia
22 meters, and is identified as the largest Western governments imposed a price cap had provided the necessary policies to
metamorphic buried hill oilfield in China. on Russian oil imports and implemented enable projects, and that Gentari was also
The oil property is light crude, and the main embargoes over Moscow's invasion of eyeing Malaysia as a potential growth
oil-bearing play is Archean buried hill. Ukraine. State-owned PetroChina and market. He added that acquisitions and
The discovery well BZ26-6-2 was drilled Sinopec recently resumed buying Urals organic growth were both on the table.
and completed at a depth of 4,480 meters - a medium-heavy, high-sulphur crude "In terms of expansion, we will seek to
and encountered a total of 321.3 meters oil loaded from Russia's European ports collaborate with companies in different
pay zones. The well was tested to produce - after receiving permission from their markets. If there is a good strategic fit for
an average of approximately 2,040 barrels headquarters to do so, as they looked to us, we would look at that as an opportunity
of crude oil and 11.45 million cubic feet boost refining margins. for us to buy into the company or acquire
of natural gas per day. This is the third The March imports include shipments the company in totality," he said.
oilfield discovery with hundred million carried by at least two Chinese-owned Petronas is among several oil majors
tons of reserves in the southern Bohai supertankers that transshipped Urals from increasing their investment in clean energy
Sea after Kenli 6-1 and Kenli 10-2. The smaller vessels loaded at Russia's Western to meet net-zero emissions targets. Gentari's
discovery demonstrates the broad prospect ports. Most of these cargoes were bought acquisition of Australian renewables firm
of exploration for subtle buried hills in the by China's independent refiners, which are Wirsol Energy last month was the latest in a
Bohai Sea, providing important guidance larger customers of seaborne Russian oil series of deals, including Petronas' purchase
for exploration in similar basins. The Bohai than the state importers. of Singapore-based solar energy firm
Sea has been one of the targeted areas of The discounts on the crude have widened to Amplus Energy Solutions in 2019.
exploration for the company and they will $14 a barrel for April-delivery cargoes, which However, Purohit noted that Malaysia
continue to look for mid-to-large sized are $2 cheaper than similar quality Oman still required policies and incentives to
oil and gas fields to fortify the resource crude. However, solid demand is likely to push encourage private investment in the sector,
foundation for the high-quality and up prices and drive down the steep discounts, a and Gentari intended to invest heavily in
sustainable development of the company.. China-based oil trader said. the country. He also acknowledged that
At the same time, free-on-board (FOB) funding requirements for the company's
prices at Baltic ports have jumped on talk ambitious plans would be substantial and
China brings ashore Russian that Russia is considering lowering exports that Gentari would look to attract investors
to bolster prices. The tighter discounts
for specific projects or countries to support
crude at record pace on crude at Baltic ports, limited shipping its growth. Purohit did not disclose the
capacity, and continued Indian demand
amount or time frame for financing.
China's oil imports from Russia are could diminish China's appetite for Urals, a
expected to reach a new record this month Chinese Urals dealer said.

Week 09 03•March•2023 www. NEWSBASE .com P17