Page 9 - DMEA Week 23

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Shoots of recovery

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Welcome to the fifth edition of NewsBase’s Roundup Global (NRG), in
which our team of international editors provide you with a snapshot of

some of the key issues affecting their regional beats. Get the NRG Oil &

Gas Editor’s Picks to your inbox every week for free. Just sign up here.

NRG FOLLOWING on from the mayhem of April decision to extend cuts throughout July. Instead,
and May reported in previous editions, the mid- it is working to bring production at two recently
term future may be a little clearer after the crucial restarted oilfields, El-Feel and Sharara, back up
OPEC+ meeting which agreed to extend oil pro- to previous levels. Together, these two sites may
duction cuts through to the end of July. raise Libyan output up by as much as 390,000
The ripples of quota limitations, reduced bpd. This would represent a nearly five-fold
prices and the changing face of the coronavirus increase on the estimated May figure.
can be seen in all of our monitors. The world as In Kenya, Tullow Oil’s early oil production
it was before February/March still seems a long scheme (EOPS) appears to have ground to a
way off but political issues still raise their head halt. The company’s upstream operations in the
and will no doubt feature more in the months Lokichar Basin were already running behind
ahead. schedule, owing to the coronavirus pandemic
and other factors. They will likely have to slow
Production issues in Africa down further as a result of the expiration of
Production issues have been in the spotlight in Tullow’s two-year trucking contract, which pro-
several African countries within the last week. vided for crude to be transported to Mombasa
Nigeria, for example, has come under pres- for export. In the meantime, Tullow still has
sure to comply with the new production quotas 185,000 barrels of unexported crude in storage
approved by the OPEC+ group over the week- at port facilities in Mombasa.
end. Officials in Abuja have pledged to do so and If you’d like to read more about the key events shaping
have agreed in principle that producers exceed- Africa’s oil and gas sector, then please click here for
ing their limits ought to compensate the group’s NewsBase’s AfrOil Monitor.
other members. The West African country
reportedly extracted 1.61mn barrels per day of Asian variations
oil in May, above the target figure of 1.41mn bpd. The pandemic has weighed on each of Asia’s
Libya, by contrast, will not be affected by the economies differently and as each country looks

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