Page 18 - MEOG Week 46

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Conoco said it had found gas and condensate slumped in March and April, only to recover in
at production licence (PL) 1009 after drilling a the subsequent months, thanks to a recovery
wildcat well some 35 km from the Equinor-op- in fuel demand after historic lows during lock-
erated Heidrun oil and gas field, where Conoco downs, as well as OPEC+ cuts to supply.
has a 24% position. The discovery is also 27 km These cuts led Rosneft to reduce its overall
south-west of the Aker BP-operated Skarv field, hydrocarbon output by 9.5% in the first nine
in which PGNiG has a 11.9% stake. months of the year to 5.232mn barrels of oil
Conoco is the only US-based major left in equivalent per day (boepd). This was led by a
Norway following the departure of Chevron in 10% drop in oil and condensate output to 155mn
2018 and ExxonMobil the following year. Its tonnes (4.14mn barrels per day).
main focus is the Greater Ekofisk Area, which
consists of the Ekofisk, Eldfisk and Embla fields, If you’d like to read more about the key events shaping
in the southern North Sea. the former Soviet Union’s oil and gas sector then please
Conoco has a 65%interest in PL1009, while click here for NewsBase’s FSU Monitor.
PGNiG has 35%. The pair will “assess the results
of the discovery together with other nearby pros- GLNG: Projects moving forward
pects with a view to a potential development to Various LNG projects around the world are tak-
existing infrastructure,” the NPD said. ing steps forward despite an increasingly chal-
lenging market. Among those making progress
If you’d like to read more about the key events shaping in recent days is the Papua LNG project, which
Europe’s oil and gas sector then please click here for received a major boost last week after the Papua
NewsBase’s EurOil Monitor. New Guinea (PNG) government passed six
pieces of legislation that allow operator Total to
FSU: Rosneft returns to red proceed with the $20bn development.
The Russian oil giant Rosneft returned to a net PNG Prime Minister James Marape said
loss in the third quarter, on the back of ruble Total would send a delegation to the country in
devaluation and low prices. the coming weeks for talks on how the project
The company swung to its first net loss since would proceed, and talks are reportedly also
2012 in the first quarter after sustaining heavy planned with the other partners.
impairments but rebounded to profit in the Elsewhere in the world, US-based Tellurian
second quarter. The company suffered another is reportedly in talks with unidentified Asian
loss of RUB64bn ($800mn) in the third quarter, buyers to sell almost half of its output from a
though, owing to a weaker ruble. This compared proposed terminal on the Gulf Coast. Telluri-
with a RUB225bn profit a year earlier. an’s planned Driftwood LNG facility was dealt
Rosneft’s EBITDA performed better, arriving a blow this year when previous talks with India’s
at RUB366bn ($5bn) in the third quarter of 2020, Petronet failed to result in a supply deal amid the
beating a forecast by BCS Global Markets (BCS global downturn in LNG demand and prices.
GM) by 6%. This is versus RUB544bn of earn- Last week, Tellurian’s chairman, Charif Souki,
ings in the same period of 2019 and RUB170bn told Bloomberg that his company had other
in the second quarter of 2020. Its net loss was potential customers interested in buying 12mn
also 7% less than the Moscow-based brokerage tonnes per year (tpy) of output from Driftwood.
projected. The facility would produce 27.6mn tpy in total if
Core earnings outperformed thanks to solid it goes ahead.
free cash flow (FCF), BCS GM said. This “con- According to Souki, the deals would be final-
firmed a significant recovery in the macroeco- ised during the first half of 2021, with construc-
nomic environment for Russian oil producers,” tion on the terminal beginning in the middle of
it said. “We consider this to be a positive for the the year. He also said Tellurian would no longer
stock.” will employ memorandums of understanding
Revenues totalled RUB1.44 trillion ($20.1bn) (MoUs) as a precursor to more in-depth talks,
in the three-month period, down 42% year on after the failure of the company’s MoU with Petr-
year but up 40% quarter on quarter. Oil prices onet to lead to a firm deal.

P18 www. NEWSBASE .com Week 46 18•November•2020