Page 9 - LatAmOil Week 23 2020

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Egdon has secured licence extensions for the specialised platform for what is expected to
Resolution and Endeavour gas discoveries, be the first gas field on Russia’s Arctic shelf to
bringing it one step closer to completing a farm- start production. Kamennomysskoye-more is
out to Royal Dutch Shell. thought to contain 550bn cubic metres of gas
Cluff, meanwhile, says it is still committed to and will flow 14.5 bcm per year at full capacity.
drilling at the Pensacola and Selene finds, even
though one of the wells will be delayed by a year. If you’d like to read more about the key events shaping
It too is partnered with the Anglo-Dutch major. the former Soviet Union’s oil and gas sector then
please click here for NewsBase’s FSUOGM Monitor.
If you’d like to read more about the key events shaping
Europe’s oil and gas sector then please click here for Full storage capacity in Europe shifts LNG
NewsBase’s EurOil Monitor. trade flows
The US could find itself receiving more LNG
FSU: Russia commits to longer cuts cargoes as a lack of available storage capacity in
Russia and its OPEC+ allies agreed a one-month Europe leads to shipments being directed else-
extension to record output cuts in a meeting on where. On June 8 a tanker from Trinidad was
June 6. The alliance of oil producers will now reported to have arrived at Dominion Energy’s
keep 9.7mn bpd of supply offline until the end of Cove Point LNG terminal in Maryland over the
July and then ease the cuts. weekend. Meanwhile, it is thought that another
The group’s decisiveness, together with recov- tanker, Madrid Spirit, sailing from Nigeria may
ering demand, should help stabilise the market, also unload its cargo of the super-chilled fuel in
with analysts forecasting that oil could rise back the US.
up to $50 per barrel as a result. Those OPEC+ This comes after US gas futures started trad-
members that have failed to keep their commit- ing at a premium to European benchmarks in
ments so far, namely Iraq and Nigeria, will have April for the first time in 10 years. This, com-
to compensate for this with greater reductions bined with filling storage capacity in Europe,
throughout the rest of the year. prompted buyers to cancel a number of upcom-
Low prices have not checked the Arctic ambi- ing cargoes scheduled for loading from US LNG
tions of Russia’s oil and gas companies. State oil terminals. Meanwhile, analysts have said it could
firm Rosneft has reportedly asked the govern- make sense under these circumstances to send
ment to auction off licences for three gas fields in some LNG to the US for storage.
Russia’s far north. Most operating LNG plants in the US began
It appears that the company’s plan is to estab- their life as import terminals before being con-
lish its own LNG production in the region. It has verted to liquefaction in recent years. They can
long coveted rival Novatek’s success in the LNG still receive cargoes as well as send them out.
sphere, but has failed to advance any projects of According to Reuters, 21 LNG cargoes were
its own. delivered to the US last year – also mostly from
The company wants to develop the three gas Trinidad – while over 500 were exported.
deposits as part of its Vostok Oil project. Few Demand for LNG in Europe persists, how-
details have been revealed about Vostok Oil, ever, despite short-term challenges caused by
which Rosneft CEO Igor Sechin has claimed storage capacity filling amid the coronavirus
could one day flow up to 2mn bpd of oil. But (COVID-19) pandemic. It was recently reported
despite Rosneft’s secrecy, the $160bn scheme is that 100% of the regasification capacity at the
anticipated to secure large tax breaks and financ- LNG terminal in Swinoujście, Poland, had been
ing from the government. reserved. The terminal is in the process of being
Meanwhile, Gazprom has ordered a expanded.

Week 23 11•June•2020 www. NEWSBASE .com P9