Page 10 - NorthAmOil Week 20 2021
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NorthAmOil INVESTMENT NorthAmOil
Japex exits Canadian shale gas project
BRITISH JAPAN Petroleum Exploration (Japex) has to 72%, while Sinopec will hold 15%, Indian Oil
COLUMBIA agreed to sell its 10% stake in a Canadian shale Corp. (IOC) will own 10% and Petroleum Bru-
gas project to Malaysia’s state-owned Petronas nei will have 3%.
for an undisclosed figure. “As a result of this transaction, Japex expects
Japex said on May 13 that overseas subsidiary to record an extraordinary loss of approximately
Japex Montney Ltd (JML) had signed a contract CAD493mn [$408.8mn] in the consolidated
to sell its stake in the North Montney joint ven- financial results for the second quarter of the
ture to project operator Petronas Energy Canada fiscal year ending March 31, 2022,” the Japanese
Ltd (PECL), with the deal expected to be final- developer said.
ised by the end of June. It added that the impact of the sale had
The Japanese developer said it had been already been reflected in its forecast of consol-
motivated to exit the project amid emerging idated business performance for financial year
structural challenges in the upstream segment, 2021-2022.
brought about by both the coronavirus (COVID- The North Montney venture had intended to
19) pandemic as well as the global shift towards provide gas for the Pacific North West LNG pro-
decarbonisation. ject, which was cancelled in 2017 owing to envi-
The company noted that it had formulated a ronmental concerns and low prices. Japex said
mid-term business plan in 2018 that focused on the export project’s cancellation had not affected
achieving sustainable growth amid oil prices of its decision to exit the project.
$50-60 barrel. The developer said: “Even after the decision
It added: “Based on the recognition, our E&P not to proceed with the LNG project in July 2017
projects have been striving to improve their prof- due to changes in the business environment,
itability by optimising the business portfolio, Japex has been working with PECL and its part-
including the sale of the asset.” ners to maximise the value of the NM project by
The deal will see Petronas’ interest increase optimising the development plan.”
PERFORMANCE
EIA forecasts slight tight oil
output increase in June
US THE US Energy Information Administration tight oil production of 7.71mn bpd in May, up
(EIA) has projected that tight oil output from the from 7.61mn bpd previously.
country’s seven leading shale formations will rise Meanwhile, the EIA has predicted that shale
by 26,000 barrels per day in June compared with gas production will fall again in June com-
May, reaching 7.73mn bpd. This marks the sec- pared with May, but less rapidly than previ-
ond consecutive month in which the agency has ously monthly declines. The agency anticipates
forecast a slight increase in tight oil production, that total shale gas production across the seven
as conditions improve for the industry but shale shale regions will be 83.57bn cubic feet (2.367bn
drillers continue to favour restraint. cubic metres) per day in June, down by 53mn
The projected increase is anticipated to cubic feet (1.5mn cubic metres) per day on May.
come almost entirely from the Permian Basin, Again, the latest May forecast is higher than it
with the EIA predicting output there to rise by was a month ago, at 83.62 bcf (2.368 bcm) per
54,000 bpd month on month, while another day, compared with 82.78 bcf (2.344 bcm) per
1,000 bpd is added in Appalachia. However, day previously.
anticipated declines across most of the other Gas output from the Permian Basin and
regions will go some way towards offsetting the Haynesville shale plays is forecast to rise month
Permian gains. on month, but this is expected to be offset by
It is also worth noting that the EIA’s projec- declines from the other regions.
tion for May has increased since its last monthly This comes as both oil and gas rig counts
forecast. The agency – which only covers the continue to rise gradually, reaching levels last
current month and the one that follows it in its seen in April 2020. Production trends tend to
Drilling Productivity Report – now anticipates lag rig movements.
P10 www. NEWSBASE .com Week 20 20•May•2021
