Page 9 - FSUOGM Week 36

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Africa: Offshore activity Petronas will review the “affordability” of
Several African states have reported new off- such a payment following the release of its
shore developments this week. fourth-quarter results, company president and
In Senegal, the RSSD consortium has moved CEO Tengku Muhammad Taufik Tengku Aziz
one step closer to finalising its new shareholder said on September 4.
line-up, with the signing of a bunding sale and “Our dividend payout is governed by our
purchase agreement (SPA) between Australia’s affordability and will need to take into account
Woodside Petroleum and UK-based Cairn Energy. our business-as-usual capex and immediate
The latter had previously arranged to sell its equity financial obligations,” Taufik said at Petronas’
in the offshore Sangomar block to Russia’s Lukoil, first-half results briefing. “Our year-end results
but Woodside pre-empted the sale. would be the guidance to set the expectation.
Meanwhile, Senegal’s government is looking to That dialogue will continue as this industry
make Sangomar and other offshore blocks a future is volatile and, like other oil and gas compa-
source of natural gas for the domestic market. The nies, shareholders will tend to not see so much
country’s sovereign wealth fund has secured a grant returns.”
from the US Trade and Development Administra- Petronas’ dividend was MYR24bn ($5.77bn)
tion (USTDA) for a feasibility study on the con- in 2019, but 2020 is proving to be a much more
struction of a pipeline that could deliver gas from challenging year, owing to the COVID-19 pan-
the offshore zone to thermal power plants (TPPs). demic. The state major’s first-half revenue shrank
In Morocco, Chariot Oil & Gas (UK) has by 23% to MYR93.6bn ($22.52bn), down from
wrapped up efforts to re-process 3D seismic data MYR121.1bn ($29.13bn) a year earlier, as a result
from the Lixus block. As a result of this re-process- of the collapse of oil and gas prices and sales vol-
ing, Netherland Sewell & Associates Inc (NSAI) has umes in the second quarter. Petronas posted a
revised the resource assessment for a 50-square km MYR21bn ($5.05bn) net loss in April-June, after
section of the licence area upwards by 148%. This recording a MYR14.7bn ($3.54bn) net profit in
section, which includes the Anchois field, is now the same period of 2019. Second-quarter reve-
thought to contain 1tn cubic feet (28.3bn cubic nue, meanwhile, tumbled 42% y/y to MYR34bn
metres) of natural gas. ($8.18bn) from MYR59.1bn ($14.22bn).
Further east, Egypt has stepped up talks with Taufik said that while the pandemic had
Cyprus on proposals for a joint pipeline construc- placed additional financial pressure on the
tion project. The proposed pipeline would pump government, the board had to review Petronas’
gas southward from the Aphrodite field offshore finances before committing to any payment. He
Cyprus to the Egyptian coast, where it could be then noted that the board was contemplating
made into LNG and exported to other markets. The a company-wide salary cut in order to avoid
project could help Egypt achieve its aim of becom- redundancies.
ing a regional energy trading hub, but it may also be “We have explored possible [cost-cutting]
affected by geopolitical developments. options. We also want to be a responsible man-
agement,” the executive said. He added: “As such,
If you’d like to read more about the key events shaping we would not take this decision lightly and we
Africa’s oil and gas sector then please click here for will deliberate on all possible options. With
NewsBase’s AfrOil Monitor . regard to the current position, I do not want to
pursue the path of retrenchment or layoffs. We
Asia: Petronas may shelve 2020 dividend have to share the pain.”
After posting a first-half net loss of MYR16.5bn
($3.97bn), Malaysia’s state-owned Petronas has If you’d like to read more about the key events shaping
warned the government that it could struggle to Asia’s oil and gas sector then please click here for
pay this year’s annual dividend. NewsBase’s AsianOil Monitor .

Week 36 09•September•2020 www. NEWSBASE .com P9