Page 15 - AsianOil Week 38

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Gastech that two sets of buyers could emerge on facilities that serve oil production facilities in
the LNG market if carbon-neutral LNG becomes Monagas State. The NOC is eager to bring these
more commonplace. The first set would be those fields back on stream, as they contain light crude
that are more carbon-conscious and the second that can be made into gasoline more easily than
would be those that are more sensitive to price. the heavy crude contained in the Orinoco belt.
The discussion about carbon-neutral LNG Further north, Canada’s Crystallex has asked
comes as Qatar – one of the leading producers a judge in the US federal court system to set a
of the super-chilled fuel – is seeking to undercut date for the sale of shares in PdV Holding, the
competitors by developing significant new low- PdVSA subsidiary that is the parent company
cost LNG capacity. This week, a warning came of US-based downstream operator Citgo Petro-
that this push to bring down the cost of LNG leum. Crystallex, which is trying to enforce a
could make it more difficult for producers in $1.4bn arbitration decision that went against
Australia and elsewhere to sanction new lique- Venezuela, has proposed that the sales begin on
faction projects. January 11, 2021.

If you’d like to read more about the key events shaping If you’d like to read more about the key events shaping
the global LNG sector then please click here for the Latin American oil and gas sector then please click
NewsBase’s GLNG Monitor. here for NewsBase’s LatAmOil Monitor.
Confidence as focus returns to exploration
Pressure on Venezuela Middle Eastern countries are showing an appe-
This week’s LatAmOil takes a close look at devel- tite for resuming exploration efforts as confi-
opments involving Venezuela. dence about demand recovery emerges.
The South American state continues to suf- Despite recently cancelling a contract to drill
fer widespread fuel shortages but is awaiting the 11 wells to raise heavy oil production, state-
arrival of two tankers filled with Iranian gasoline. owned Kuwait Oil Co. (KOC) is preparing to
The shipments are not likely to provide relief for launch a tender for an offshore seismic survey as
long, as the vessels only hold enough to cover the emirate seeks to identify between six and 20
consumption for a few weeks, US special envoy drill sites as part of its inaugural maritime explo-
Elliott Abrams pointed out last week. Abrams ration effort.
also indicated that Washington did not intend to In Oman, while recent licensing efforts have
seize these cargoes, as it did in August. failed, US horizontal drilling specialist EOG
In the meantime, the national oil company Resources has become the latest firm to commit
(NOC) PdVSA is reportedly scrapping some of to brownfield development, signing an explora-
its own infrastructure in order to secure metal tion and production-sharing agreement (EPSA)
and parts. According to Bloomberg, it hopes to for Block 36 in the south-west of the Sultanate.
use these materials as payment in kind for repair In the Eastern Mediterranean, Energean is
work on pumping stations and compression eyeing a return to exploration work as it prepares

Week 38 24•September•2020 www. NEWSBASE .com P15