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to target contract opportunities at refining and development of what could be Germany’s first
petrochemical projects in Africa, the Middle regasification terminal. That will clear the way
East and elsewhere, while South Africa’s Rener- for an FID to be taken.
gen has partnered with France’s Total to market There are several similar schemes currently
and distribute LNG from a liquefaction plant it underway in Germany, but how many are real-
is building. ised could hinge on the government shifting its
stance in favour of gas-derived hydrogen.
If you’d like to read more about the key events shaping
the downstream sector of Africa and the Middle East, If you’d like to read more about the key events shaping
then please click here for NewsBase’s DMEA Monitor . Europe’s oil and gas sector then please click here for
NewsBase’s EurOil Monitor .
Norway’s new offering
Norway has kicked off its next offshore licensing OPEC+ puts pressure on Kazakhstan
round, inviting companies to bid for an extra 36 Kazakhstan is reportedly being pressed by its
oil and gas blocks. Current market conditions OPEC+ partners to better comply with agreed
may deter some from submitting offers. But oil output quotas. The Central Asian state failed
Norway’s tax system is generally successful at to stick to its May quota, which it will have to
ensuring that investment in exploration contin- compensate for through deeper cuts later this
ues even when prices are low. Meanwhile, those year.
companies that are in possession of discoveries Kazakhstan faced accusations of disregard-
have extra incentive to push ahead with devel- ing its commitments under the previous OPEC+
opment after Parliament recently approved a tax deal, which expired in April. While its share of
relief package. the cuts is far smaller than the likes of Russia and
Companies have until September 22 to bid Saudi Arabia, OPEC+’s lead members will want
for the offered acreage, with authorities planning to ensure that all parties keep to their promises.
to award licences in early 2021. The stakes are high, after all, as the deal’s collapse
While Norwegian production is due to ramp would derail the market recovery and cause oil
up over the next five years, its current output is to spiral downwards once again.
subdued. Gas extraction fell for the fifth month Downstream, Russian refineries cut their
in a row in May, as suppliers held back volumes gasoline output to a 15-year low in May in
in response to weak prices. Oil production was response to a slump in fuel demand triggered
up last month, but is due to fall in June as govern- by coronavirus-related travel restrictions, the
ment-mandated cuts come into force. country’s energy ministry estimates. The speed
In the UK, low prices will mean some fields at which fuel demand collapsed in Russia has
are shut down earlier, providing a boon to the been matched by how quickly it has recovered,
decommissioning sector in the coming years. catching suppliers unaware. At the start of June,
But the Oil and Gas Authority (OGA) has Russia’s energy ministry called on producers to
warned that decommissioning spending will cut gasoline exports and send more fuel to the
take a hit in 2020 as operators cut costs. This domestic market.
could have a significant impact on the supply In Georgia, there is progress at the West
chain, risking undermining the UK’s status as a Rustavi gas field, with London-listed operator
global leader in decommissioning, the upstream Block Energy reporting the arrival of an early
regulator warns. production facility. This brings the company
Meanwhile, German power giant RWE has one step closer to launching gas sales from the
said it aims to finalise LNG supply contracts field in the second half.
by the end of this year that will underpin the Despite slashing spending by 40% in April,

Week 25 24•June•2020 www. NEWSBASE .com P9