Page 8 - NorthAmOil Week 36

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The programme is likely to prioritise the The head of the South Yaran project emphasised
interests of Pemex, the national oil company the importance of the MOS being locally built,
(NOC) over the private sector. According to the noting that it was the first time a domestically
head of a local trade group, the government’s produced MOS had been installed in the West
plans do not include any exploration of devel- Karoun oil region.
opment projects open to the participation of
foreign investors. If you’d like to read more about the key events shaping
Meanwhile, Refineria di Korsou (RdK), the the Middle East’s oil and gas sector then please click
operator of Curaçao’s only oil refinery, has taken here for NewsBase’s MEOG Monitor.
legal action against Venezuela’s national oil com-
pany (NOC) PdVSA in a US court. RdK said in Quarterly losses mount in North America
documents filed in a New York state court that it North America’s oil and gas industry continues
was seeking to recover $51mn worth of overdue to see mixed signals, with weekly US rig counts
service payments from PdVSA. So far, neither creeping up for only the second time since early
the NOC nor the Venezuelan government has March, but crude prices declining. The West
responded to the lawsuit. Texas Intermediate (WTI) benchmark dropped
below $40 per barrel in recent days, which has
If you’d like to read more about the key events shaping been attributed to a number of domestic factors,
the Latin American oil and gas sector then please click as well as international trends as Saudi Arabia
here for NewsBase’s LatAmOil Monitor. announced that it would cut prices for its Octo-
ber sales.
Mideast: Export facilities come into focus While some North American producers are Iran is seeking
Export infrastructure came into sharp focus better positioned to ride out the storm than oth-
this week as news emerged of talks to extend the ers, concerns remain about the ability of small to expand its
planned oil pipeline between Iraq and Jordan companies in particular to survive. Last week,
to Egypt. The discussions also involve collabo- Western Canadian firms that produce around capabilities
ration in the field of electricity, and follow talks 20,000 barrels per day (bpd) were described as
about the grid interconnectivity among several “an endangered species” by the head of a private ahead of a
of the region’s countries. equity firm. (See: Small Canadian producers potential easing
For Iraq, the move to increase westward oil struggling to survive, page 9) Such private equity
flows will ease dependency on Gulf terminals. players are among those seeking to capitalise on of sanctions.
These facilities handle the vast majority of the the downturn by buying up struggling compa-
country’s exports, including no less than 86% of nies at bargain prices, and more acquisitions are
all August shipments. Meanwhile, Amman and expected in the coming weeks and months.
Baghdad have agreed to resume trucked crude In the US, meanwhile, the upcoming presi-
exports in response to the oil price drop and the dential election is generating further uncertainty
coronavirus (COVID-19) pandemic. in an operating environment already contending
In Iran, authorities have said that the Jask with numerous unknowns. (See: Permian drill-
oil terminal project will be ready for operation ers scramble for federal permits ahead of election,
by the end of March 2021, enabling the Islamic page 11) Democratic nominee Joe Biden clari-
Republic to export crude without needing to fied his position on hydraulic fracturing last
traverse the Strait of Hormuz. Iran has period- week, saying he would not seek to ban the prac-
ically threatened to block the s trait if its crude tice if he were to be elected to the presidency in
exports are unacceptably harmed by US sanc- November. Biden’s comments came in response
tions, while Washington has said such a move to allegations by US President Donald Trump
would require a response. that the Democratic nominee would indeed
As Iran seeks to expand its capabilities ahead seek to ban fracking. Biden made the assurances
of a potential easing of sanctions, local firm during a speech in the swing state of Pennsylva-
Petroleum Engineering and Development Co. nia, which is a leading shale gas producer. Biden’s
(PEDEC) announced that it had increased oil climate change plan calls for ending new oil and
production capacity at the South Yaran oilfield gas leases on public land, but it would not ban
by 5,000 barrels per day (bpd) following the drilling or prohibit any specific method for pro-
installation of a new mobile oil separator (MOS). ducing fossil fuels.™

P8 www. NEWSBASE .com Week 36 10•September•2020