Page 17 - AsianOil Week 14

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NEWS IN BRIEF
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The discovery marks a significant milestone for Petronas in strengthening and developing Petronas’ ventures in the Americas, as it diversifies and expands its oil and gas business portfolio in the US and offshore US Gulf of Mexico.
The ultra-deepwater Monument exploration well was drilled to a total depth of 10,164 metres and encountered approximately 60 metres of
net oil-bearing sands in the Lower Wilcox of Paleogene sandstone. With the discovery, further appraisal works are required to determine the full potential of the oil accumulation.
Petronas Executive Vice President & Chief Executive Officer of Upstream, Adif Zulkifli said, “The discovery in the US Gulf of Mexico is an encouraging development for Petronas as we continue to pursue opportunities beyond Malaysia. It is in line with Petronas’ three- pronged growth strategy to expand our core oil and gas business by growing our resource base.”
“This is the company’s first entry and discovery into oil and gas operations in the US Gulf of Mexico. We will continue to explore opportunities in the Americas region and strengthen the sustainability of our global portfolio,” he added.
The Monument exploration well is located in the central US Gulf of Mexico. It is operated by Equinor Gulf of Mexico LLC with a 50% working interest while PRUL holds 30% and Repsol E&P USA Inc. holds the remaining 20%. The Monument exploration well is located in the central US Gulf of Mexico. It is operated
by Equinor Gulf of Mexico LLC with a 50% working interest while PRUL holds 30% and Repsol E&P USA Inc. holds the remaining 20%. PETRONAS, April 6, 2020
KrisEnergy completes disposal of Andaman II PSC
KrisEnergy, an upstream oil and gas company, refers to the announcements made by
the company on 29 October 2019 and 19
November 2019, in relation to the entry into a conditional sale and purchase agreement with BP Exploration Operating Company Limited for the disposal of its 30.0% non- operated working interest in the Andaman II production sharing contract in the Malacca Strait, Indonesia.
The company announces that completion of the disposal has taken place today. The consideration for the disposal is US$15.0 million, subject to a retention sum of US$1.7 million which may be used by the buyer to offset against any payment obligations that may become due by the Seller from the completion date until 31 December 2021.
Pursuant to the terms of the Group’s revolving credit facility with DBS Bank (DBS), the proceeds from the disposal will be held in a collection account over which DBS has security. The Company will provide further updates on the use of proceeds as and when necessary. KRISENERGY, Singapore, 8 April 2020
OCEANIA
Lytton Refinery T&I decision, trading update
Caltex Australia refers to its trading update of 23 March 2020 regarding demand and other business impacts from responses to COVID-19.
In response to the unfolding COVID-19 crisis and the broader dynamics in the global fuel marketplace, Caltex today announces a number of operational and capital initiatives. Together these will protect the business and assist in navigating this challenging period, while ensuring both the wellbeing of our people and the safe and reliable supply of high-quality transport fuels to our customers.
Global fuel demand erosion caused by COVID-19 is expected to impact refining conditions for a number of months.
Consequently, Caltex will bring forward and extend the duration of the planned shutdown for the upcoming Lytton refinery T&I which will now commence in May 2020. Refinery operations will recommence when margin conditions have sufficiently recovered.
The decision has been made for a combination of reasons. The current weak refiner margins are creating operating cash flow challenges at Lytton. Having the refinery offline for this period will reduce the costs related to the normal operations of the refinery. This approach will deliver a more capital efficient T&I and enable a reduction in the cost of the shutdown, as well as further optimisation of the supply chain, including a reduction in working capital. This approach will also allow us to comply with COVID-19 requirements during the T&I to ensure the health and safety of all who work on our site.
CALTEX AUSTRALIA, April 6, 2020
SA supports exploration amid COVID-19 challenges
APPEA today welcomed the South Australian Government’s move to provide relief to oil and gas explorers by deferring costs and work program commitments linked to exploration licences as the industry confronts the challenges posed by the COVID-19 pandemic.
The Government has implemented an immediate deferral of annual petroleum fees due in the next six months. These licence fees will now not be due until 31 December 2020.
APPEA Chief Executive Andrew McConville said the measures would particularly help smaller exploration companies that continue
to play a critical role in the identification and development of new energy resources.
“Current economic conditions have the potential to irreparably damage oil and gas exploration in Australia unless steps are taken to provide short term relief to allow companies to remain in business until the economy has moved through the worst of the downturn,” Mr McConville said.
“The relief that SA has announced today will help exploration companies weather the storm and continue to play a critical role in discovering new sources of supply. This is important in the gas dependent states of South Australia and Western Australia but also right across the tight East Coast gas market.”
Mr McConville said the Australian oil and gas industry is responding to the personnel and operational challenges posed by the COVID-19 pandemic to protect the health and safety of our workforce and host communities, while ensuring vital energy supplies are maintained. APPEA, April 3, 2020
Week 14 09•April•2020
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