Page 12 - FSUOGM Week 36

FSUOGM NRG FSUOGM

The programme is likely to prioritise the inter- the importance of the MOS being locally built,
ests of Pemex, the national oil company (NOC) noting that it was the first time a domestically
over the private sector. According to the head of a produced MOS had been installed in the West
local trade group, the government’s plans do not Karoun oil region.
include any exploration of development projects
open to the participation of foreign investors. If you’d like to read more about the key events shaping
Meanwhile, Refineria di Korsou (RdK), the the Middle East’s oil and gas sector then please click
operator of Curaçao’s only oil refinery, has taken here for NewsBase’s MEOG Monitor.
legal action against Venezuela’s national oil com-
pany (NOC) PdVSA in a US court. RdK said in Quarterly losses mount in North America
documents filed in a New York state court that it North America’s oil and gas industry continues
was seeking to recover $51mn worth of overdue to see mixed signals, with weekly US rig counts
service payments from PdVSA. So far, neither creeping up for only the second time since early
the NOC nor the Venezuelan government has March, but crude prices declining. The West
responded to the lawsuit. Texas Intermediate (WTI) benchmark dropped
below $40 per barrel in recent days, which has
If you’d like to read more about the key events shaping been attributed to a number of domestic factors,
the Latin American oil and gas sector then please click as well as international trends as Saudi Arabia
here for NewsBase’s LatAmOil Monitor. announced that it would cut prices for its Octo-
ber sales.
Mideast: Export facilities come into focus While some North American producers are
Export infrastructure came into sharp focus better positioned to ride out the storm than oth- Iran is seeking
this week as news emerged of talks to extend the ers, concerns remain about the ability of small
planned oil pipeline between Iraq and Jordan companies in particular to survive. Last week, to expand its
to Egypt. The discussions also involve collabo- Western Canadian firms that produce around
ration in the field of electricity, and follow talks 20,000 barrels per day (bpd) were described as capabilities
about the grid interconnectivity among several “an endangered species” by the head of a pri-
of the region’s countries. vate equity firm. Such private equity players are ahead of a
For Iraq, the move to increase westward oil among those seeking to capitalise on the down- potential easing
flows will ease dependency on Gulf terminals. turn by buying up struggling companies at bar-
These facilities handle the vast majority of the gain prices, and more acquisitions are expected of sanctions
country’s exports, including no less than 86% of in the coming weeks and months.
all August shipments. Meanwhile, Amman and In the US, meanwhile, the upcoming presi-
Baghdad have agreed to resume trucked crude dential election is generating further uncertainty
exports in response to the oil price drop and the in an operating environment already contending
coronavirus (COVID-19) pandemic. with numerous unknowns. Democratic nomi-
In Iran, authorities have said that the Jask nee Joe Biden clarified his position on hydraulic
oil terminal project will be ready for operation fracturing last week, saying he would not seek
by the end of March 2021, enabling the Islamic to ban the practice if he were to be elected to
Republic to export crude without needing to the presidency in November. Biden’s comments
traverse the Strait of Hormuz. Iran has period- came in response to allegations by US President
ically threatened to block the s trait if its crude Donald Trump that the Democratic nominee
exports are unacceptably harmed by US sanc- would indeed seek to ban fracking. Biden made
tions, while Washington has said such a move the assurances during a speech in the swing state
would require a response. of Pennsylvania, which is a leading shale gas
As Iran seeks to expand its capabilities ahead producer. Biden’s climate change plan calls for
of a potential easing of sanctions, local firm ending new oil and gas leases on public land, but
Petroleum Engineering and Development Co. it would not ban drilling or prohibit any specific
(PEDEC) announced that it had increased oil method for producing fossil fuels.
production capacity at the South Yaran oilfield
by 5,000 barrels per day (bpd) following the If you’d like to read more about the key events shaping
installation of a new mobile oil separator (MOS). the North American oil and gas sector then please click
The head of the South Yaran project emphasised here for NewsBase’s NorthAmOil Monitor .™

P12 www. NEWSBASE .com Week 36 09•September•2020