Page 8 - LatAmOil Week 23 2020

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Pakistan, meanwhile, is reportedly considering In an encouraging development for Angola,
the deregulation of gasoline prices amid grow- London-based investment firm Gemcorp is pre-
ing supply shortages that many within the local paring to take a final investment decision (FID)
industry had warned about some weeks ago. The by the end of this month on a new 60,000 bpd oil
Pakistani Energy Ministry’s Petroleum Division refinery in Cabinda. This is one of three plants
has agreed in principle to “completely dereg- the West Coast African country wants to build
ulate” pricing and marketing of gasoline, local to make motor fuel imports a thing of the past.
news outlet Dawn reported on June 8. The paper, Meanwhile, Iran is looking to expand its gas-
citing an official record of the division’s talks oline storage, in response to a slump in demand
with oil marketing companies (OMCs), said caused by the coronavirus and in preparation for
the ministry had decided to link gasoline prices an expansion of the Persian Gulf Star refinery.
to the S&P Global Platts Oilgram Price Report Iran was one of the countries hardest hit by the
of the previous month. This would replace the pandemic, with travel restrictions causing gaso- The US is
government’s current method of setting prices line stockpiles to reach unprecedented levels last
based on state-owned Pakistan State Oil’s (PSO) month. considering
import bill. additional
Australia’s Queensland State has unveiled a If you’d like to read more about the key events shaping
new natural gas royalty model that will adopt a the downstream sector of Africa and the Middle East sanctions as a
volume-based approach to calculating payments then please click here for NewsBase’s DMEA Monitor.
rather the current index-based system. The gov- last-ditch attempt
ernment has also indicated that it will include a Europe: US wades into German affairs;
sliding rate scale that will lower rates for domes- North Sea developments to prevent Russia
tic focused production. The new mechanism will The US is considering additional sanctions in a from completing
be locked in place for five years, though industry last-ditch attempt to prevent Russia from com-
has already called for the Labor government to pleting its Nord Stream 2 pipeline. But with a the Nord Stream
match the opposition Liberal Party’s election mere 6% of the pipeline left to lay, further puni-
pledge of a 10-year freeze on royalties. tive action is unlikely to thwart the project and gas pipeline
could backfire by further straining Washington’s
If you’d like to read more about the key events shaping relations with Berlin.
Asia’s oil and gas sector then please click here for Russia is expected to use two of its own pipe-
NewsBase’s AsianOil Monitor. laying vessels to finish Nord Stream 2, which
would likely continue its work even if the sanc-
Downstream: Nigerian fuel deregulation; tions are applied. Gazprom also appears to have
initiatives in Angola, Iran transferred one of the vessels to another com-
Nigeria has removed a cap on gasoline pump pany, shielding itself from potential punitive
prices as it pushes ahead with the deregulation measures.
of its fuel industry. The move aims to encourage In the North Sea, Premier Oil has managed to
private companies to import and sell gasoline, renegotiate a lower price for a group of BP assets,
helping to boost the country’s supply security. while also making peace with its main creditor
While the fuel industry has welcomed the which opposed the deal. If completed, the trans-
move, there are concerns that the government action will be a boon for North Sea M&A activ-
could backtrack on reforms once world fuel ity, which has slumped since the March oil price
prices recover. Nigeria is heavily dependent collapse.
on imports, and mere rumours of hikes in fuel North Sea juniors Egdon Resources and
costs have triggered rioting in the past. The road Cluff Natural Resources are pushing ahead with
to market liberalisation is therefore politically development plans, despite the current market
fraught. conditions.

P8 www. NEWSBASE .com Week 23 11•June•2020