Page 17 - AsianOil Week 27

AsianOil NRG AsianOil

becoming more of a burden. Firms not affiliated
with Pemex, the national oil company (NOC),
say that customs inspectors are throwing up
unnecessary roadblocks to shipments of refined
fuels, especially diesel.

If you’d like to read more about the key events shaping
the Latin American oil and gas sector then please click
here for NewsBase’s LatAmOil Monitor.
OPEC+ compliance and some movement
In the Middle East, there were signs that state-
owned producers are starting to feel more
confident. Saudi Arabia and Kuwait resumed
production from their shared Al-Khafji oilfield
in the Partitioned Neutral Zone (PNZ). The asset
was shut in on June 1 under the banner of efforts
to adhere to OPEC+ quotas; however, the recent Several North American entities have reported
history of the PNZ has been somewhat colourful. setbacks and disappointments over the last
At capacity, Al-Khafji and the onshore Wafra week.
oilfield can produce around 550,000 bpd; how- ExxonMobil is set to post two consecutive
ever, the fields were shut in because of disagree- quarterly losses for the first time in its history,
ments between the two governments in 2014 and thanks to the coronavirus pandemic and the
then in 2015. Russian-Saudi oil price war. According to a
Output resumed at both fields in Decem- regulatory filing submitted last week, the US
ber 2019, increasing to 260,000 bpd by April, super-major’s upstream oil and gas unit sus-
with production of 130,000 bpd from each tained a loss of $3.1bn in the second quarter of
asset. Wafra has remained in production since 2020, while its downstream refining unit lost
December. nearly $1bn. The company is due to release a full
Plans are in place to raise output capacity report on its quarterly results at the end of this
at the PNZ to 575,000 bpd, with an increase month.
coming in the form of a 25,000 bpd ramp-up at Dominion Energy and Duke Energy have
al-Khafji, which is currently capable of 300,000 decided against going forward with the con-
bpd. struction of the Atlantic Coast natural gas
Meanwhile in Oman, signs of a rebound in pipeline. Even though the partners scored an
exploration came by way of Sweden’s firm Tethys important victory in the US Supreme Court last
Oil signing an exploration and production-shar- month, they have concluded that the risk of fur-
ing agreement (EPSA) for the Sultanate’s onshore ther litigation is too high to ensure the project’s
Block 58. viability.
The company has a growing presence in Also on the legal front, a US district court
Oman and has taken advantage of the downturn has ordered Energy Transfer to shut down and
to increase its asset base. However, the move is empty its 570,000 bpd Dakota Access oil pipe-
unlikely to be echoed throughout the region, line (DAPL) within 30 days. Under this ruling,
with only Israel holding an active 2020 bidding the company must suspend operations pending
round. the completion of a new environmental impact
In the UAE, though, Abu Dhabi National Oil report, which is likely to take more than a year
Co. (ADNOC) has taken advantage of the dip to complete.
in demand to take the giant Bab oilfield offline Meanwhile in Canada, the Newfoundland
for scheduled maintenance, with production to & Labrador Oil & Gas Industries Association
remain shut-in until late July. (NOIA) has urged Seamus O’Regan, the coun-
Prior to the shutdown, production from Bab try’s natural resources minister, to uphold his
was running above 370,000 bpd of light, sour recent pledges to assist offshore oil and gas oper-
Murban crude, which has an API gravity of ators. “We need immediate action to get people
40.5°. Bab has a capacity of 420,000 bpd. back to work, to remain globally competitive
The move also aligns well with the UAE’s and to retain the investment we have previously
OPEC+ commitments, with July the final month attracted to our industry,” said Karen Winsor, the
before the reductions are eased. chairperson of NOIA’s board. “We need a show
of faith in our future and we need it immediately.”
If you’d like to read more about the key events shaping
the Middle East’s oil and gas sector then please click If you’d like to read more about the key events shaping
here for NewsBase’s MEOG Monitor. the North American oil and gas sector then please click
Facing obstacles in North America here for NewsBase’s NorthAmOil Monitor.™

Week 27 09•July•2020 www. NEWSBASE .com P17