Page 10 - LatAmOil Week 48 2020

LatAmOil NRG LatAmOil

Earlier in November, it was reported that a that site at more than 4bn barrels.
planned two-project development in Papua New
Guinea (PNG) might end up being altered so If you’d like to read more about the key events shaping
that one new project goes ahead while an expan- the Middle East’s oil and gas sector then please click
sion of another – already operational – facility here for NewsBase’s MEOG Monitor.
could be scrapped.
North America: Pivot towards gas
If you’d like to read more about the key events shaping US shale producers are reported to be turning
the global LNG sector then please click here for their attention to natural gas amid projections
NewsBase’s GLNG Monitor. that gas prices will rise higher than oil prices.
This comes as OPEC meets this week, amid jit-
MEOG: Gulf upstream uptick ters over the impact any rise in global production
A string of announcements last week show that could have on crude prices.
operators are returning to action across the Mid- Earlier this month, EOG Resources, one of
dle East despite uncertainty about the future of the US’ largest shale producers, said in Novem-
the OPEC+ agreement. ber that it would start selling gas from 15 new
Maintaining the momentum following the wells next year from a newly discovered field in
usual post-ADIPEC flurry, Abu Dhabi National Texas holding 21 trillion cubic feet (595bn cubic In Iraqi Kurdistan,
Oil Co. (ADNOC) announced that it had agreed metres) of gas. These gas wells, targeting the
a $519mn extension to the world’s largest ever Eagle Ford and Austin Chalk plays, are reported Genel Energy has
seismic survey, currently being carried out by to be as profitable as the company’s best oil wells.
Chinese firm BGP. The survey, which is being Also in November, Apache said it planned begun extracting
shot both onshore and offshore, will now cover to complete three Texas wells after boosting its
around 82,000 square km, with ADNOC look- third-quarter US gas production by 15% over crude oil from its
ing to continue its prolific exploration form the second quarter and 6% over the same period Sarta field
following the previous week’s discovery of 24bn of 2019, and Continental Resources recently
barrels of oil. shifted drilling rigs to gas from oil in Oklahoma.
In Iraqi Kurdistan, London-listed Genel Both US oil and gas rig counts have been
Energy announced first oil from its Sarta field, rising in recent weeks after bottoming out over
with an expansion planned for early 2021. the summer. Country-wide gas rig counts are up
Despite having been delayed because of issues 13% since July, and over that period the number
related to the coronavirus (COVID-19) pan- of active rigs has increased 25% in the Haynes-
demic, first oil comes less than two years after ville shale and 8% in the Marcellus – both gas
the company acquired its 30% working interest plays.
from Chevron. Elsewhere in the semi-autono- Part of the reason US gas prices are improv-
mous region, Russia’s Gazprom Neft reached ing is that associated production of natural gas
total cumulative production of 32mn barrels from oil-rich regions has fallen as shale drillers
from its Sarqala field, where output is anticipated scaled back activity earlier this year. Indeed, the
to increase to 32,000 barrels per day (bpd) in the US Energy Information Administration (EIA)
first half of 2021. projected in mid-November that nationwide
Meanwhile, drilling work is set to resume off- gas production would contract again in both
shore Oman this month, with Masirah Oil Ltd November and December..
acquiring a jack-up from Shelf Drilling to fur-
ther develop the Yumna oilfield and to explore If you’d like to read more about the key events shaping
the wider potential of Block 50. the North American oil and gas sector then please click
A previous report estimated the resources of here for NewsBase’s NorthAmOil Monitor.™

P10 www. NEWSBASE .com Week 48 03•December•2020