Page 15 - DMEA Week 31

DMEA REFINING DMEA

Omani fuel output slumps in H1

OMAN REFINERIES in Oman run by national petro- rising 16% to 91,800 bpd. The fuel is primarily
leum company OQ saw a steep decline in pro- used for heavy vehicles, many of which con-
Gasoline output began duction of motor fuels, aviation fuels and other tinued transporting goods in spite of lock-
recovering in June, refined products in the first half of the year. down measures. It is also used for construction
however. Figures published by the National Centre for machinery and small-sized power generation in
Statistics and Information (NCSI) show that pro- remote areas.
duction of Oman’s two main motor fuel grades The sharp declines in overall fuel consump-
slumped 32% year on year to 28,000 barrels per tions were reflected in the financial results of
day (bpd) in the six months. Premium M-95 out- Oman’s main fuel retailers.
put fell only 12% to 31,800 bpd, however. Shell Oman Marketing, the country’s largest
Gasoline output recovered towards the end of fuel supplier, reported a 25.1% decline in reve-
the period, soaring 47.6% month on month in nues for the first half to OMR189.7mn ($445mn).
June, the NCSI said, as coronavirus (COVID-19) Al Maha Petroleum Products Marketing suffered
travel restrictions were eased. a 27% fall in turnover to OMR171.6bn.
Jet fuel production plummeted 40% to 25,500 Oman’s current refining throughput capac-
bpd in the first half, as a result of flight bans. LPG ity is 335,000 bpd, but it is constructing a
production, meanwhile, dropped 25% to 15,500 230,000 bpd new plant in the port of Duqm. The
bpd. Oman-Kuwait joint venture is due to come on
Diesel bucked the trend, with production stream in 2021. ™

Iranian workers strike amid wage

payment delays

IRAN IRANIAN oil and gas workers began industrial its way out of the current situation, with local
action on August 1 following delays to wage companies contracted to develop large assets in
Strikes have occured payments. the south-west. Tehran has made positive noises
at refineries and According to local media, all workers went on about the prospect of sanctions being lifted;
petrochemicals strike at the Abadan, Parsian and Qeshm refin- however, there is little prospect of such a change
facilities. eries, the Lamerd petrochemical complex and while US President Donald Trump remains in
South Pars gas field facilities, demanding the office.
implementation of the job-classification law as Speaking in mid-July, Oil Minister Bijan Zan-
well as overdue pay and benefits. ganeh was quoted by official energy industry
Radio Farda quoted contractors at Qeshm media outlet Shana as saying: “It is true that our
refinery as saying that their employers had failed oil production has now decreased because of the
to pay them regularly. unfair sanctions. But it will not remain like this
Meanwhile, the industrial action adds to forever. We should increase capacity so that any-
the growing tension at Abadan refinery, where time needed, we enter the market with full force
workers have protested in recent months. At and revive our share.” Zanganeh highlighted the
complexes in Assaluyeh dedicated to phases 22 prolific West Karoun oil region, noting that the
and 24 of South Pars workers have gone on strike Islamic Republic would seek to ramp up out-
again, with industrial action having been taken put from reservoirs shared with neighbouring
several times there over the past three years. Iraq.™
Despite the widespread discontent, the state-
owned Iran Labor News Agency (ILNA) quoted
a director at Qeshm as saying that workers are
seeking raises, adding that there are no issues
with overdue wage payments.
That Iranian industry is struggling to pay
the bills is not surprising given the multiple
challenges of sanctions, soft oil demand and the
impact of coronavirus (COVID-19).
However, the country’s oil and gas sector has
in recent weeks sought to independently fight

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