Page 6 - AsianOil Week 26

AsianOil SOUTHEAST ASIA AsianOil

resources of 55.2 bcf (1.56 bcm) of sales gas, Jadestone pointed to the lack of near-term
2.2mn barrels of condensate and 5.8mn barrels spending commitments, which provides devel-
of oil equivalent (boe) of liquid petroleum gas opment flexibility, as one of the deal’s positives.
(LPG). Despite announcing bumper profits for
Incremental production over a six-year 2019 in its April results, the company said at
period has been projected to reach 5,300 boe the time that it intended to cut spending this
per day, based on an estimated average gross year by around 80% from a planned $160-
gas production plateau rate of 18.8mn cubic feet 190mn to $30-35mn in order to “insulate”
(532,000 cubic metres) per day, plus associated its balance sheet. Jadestone president and
condensate and LPG. CEO Paul Blakeley said the company’s strong
Jadestone said that while the deal was subject financial position meant it would remain on
to certain government approvals – such as its the lookout for inorganic growth “should the
appointment as operator of the PSC – that were right opportunities emerge”.
due on or before June 26, 2021, it expects to final- Indeed, the company intends to complete the
ise the purchase in the first quarter of 2021. acquisition from available cash on hand, noting
Locally owned Hexindo Gemilang Jaya gas that the deal did not compromise its ability to
has the remaining 10% stake, while the govern- fund this year’s budget, the company’s maiden
ment can back-in to a 10% stake if a final invest- dividend or the acquisition of a 69% operated
ment decision (FID) is reached. Should the interest in the Maari project offshore New Zea-
government exercise its right in full, Jadestone’s land, which is slated for completion in the sec-
stake would drop to 81%. ond half of 2020.™

EAST ASIA

Sibur, Sinopec strike shareholder

deal for Amur chemicals complex

PROJECTS & RUSSIAN petrochemicals giant Sibur has signed Sibur has repeatedly delayed taking a final
COMPANIES a shareholder agreement with China’s Sinopec investment decision (FID) on the project, which
on forming a joint venture to build the Amur gas it anticipates will cost $10.7bn, because of diffi-
chemical complex (GCC), Russia’s Prime news culties attracting partners to cover some of the
agency reported on June 29. project’s expenses and share some of its risks. It
The pair struck the deal in June and are has been holding talks with Sinopec for over five
working on securing regulatory approvals, the years. The Chinese firm bought a 10% stake in
agency reported citing Sibur documents. The Sibur in 2015.
Moscow-based firm said back in May that Sin- Much like the oil and gas market, the global
opec’s board had already cleared the deal, which petrochemicals market has been grappling with
is expected to see the Chinese firm take a 40% oversupply over the past year, owing to weaker
stake in the project. demand in Asia and extra production capacity
The Amur GCC in the Russian Far East is coming on stream. The coronavirus (COVID-
expected to produce 2.3mn tonnes per year 19) pandemic has exacerbated the situation.
of polyethylene and 400,000 tpy of polypro- Sibur swung to a RUB52.3bn ($707mn) loss in
pylene. It will be supplied with 3.5mn tpy of the first quarter, after ruble devaluation drove up
ethane and LPG feedstock produced at Gaz- the value of its foreign-denominated loans. Its reve-
prom’s Amur gas processing plant (GPP), nues were also down 7.8% year on year owing to the
which is due to start handling Russian gas on collapse in prices, although the blow was cushioned
route to China via the Power of Siberia pipe- by a ramp-up in production at its new Zapsibneft-
line starting in 2023. ekhim complex in Western Siberia.™

P6 www. NEWSBASE .com Week 26 02•July•2020