Page 11 - EurOil Week 03 2021

EurOil PIPELINES & TRANSPORT EurOil

Swiss insurer reportedly drops

out of Nord Stream 2

EUROPE SWISS-BASED Zurich Insurance Group will place and is committed to fully comply with any
withdraw from Russia’s Nord Stream 2 pipeline, applicable sanctions regulations.”
Companies are taking sources told Reuters on January 16, as the US Other companies are also taking the sanc-
the sanctions treat prepares to slap stricter sanctions on the project. tions threat very seriously. Norway-based qual-
seriously. Washington is set to expand its sanctions ity assurance firm DNV GL said in early January
regime against the near-complete project within it would no longer provide pipeline integrity
weeks, after both houses of US Congress over- verification services for the pipeline, over fears
rode a Trump veto of a defence bill containing of incurring Washington’s wrath.
the measures. Current sanctions only target Nord Stream 2’s offshore section is around
those companies providing pipelaying vessels for 95% complete. Construction was halted in
Nord Stream 2, but the US wants to punish those December 2019 after the US imposed its first
providing technical certification and insurance, round of sanctions, prompting Allseas to leave
as well as other construction activities such as the project. But work resumed in German waters
surveying, trenching and rock replacement. last month and off Denmark on January 15, with
The US State Department earlier this month Russia now using its own pipelaying vessels for
warned European companies suspected of the job.
assisting at the project to pull out before it was While US says Nord Stream 2 is a threat to
too late. Zurich has extensive operations in the European energy security, Germany’s support
US, meaning that it is greatly exposed to asset has not wavered for the pipeline, which at full
seizures and other potential sanctions measures. capacity will pump 55bn cubic metres per year
It is one of around 20 insurers that is supporting of Siberian gas to the north German coast. Ger-
Nord Stream 2, according to Reuters. many’s northern state of Mecklenburg-Vor-
The insurer declined to comment on specific pommern is seeking to establish a foundation
customers, but it did tell the news agency that it to support the pipeline’s completion, following a
“has a comprehensive compliance framework in vote by the local parliament earlier this month.™

INVESTMENT

Marubeni eyes North Sea sale

UK JAPAN’S Marubeni is the latest company be JX Nippon Exploration & Production and
reported to be seeking a withdrawal from the Mitsui & Co.
Idemitsu Kosan and UK North Sea, Bloomberg cited sources as say- Marubeni also holds 5-8% shares in the
Itochu left the North ing last week. North Sea Columba fields, which yield a com-
Sea in recent years. The company has hired Jefferies Financial bined 3,500 boepd, but it is unclear whether
Group to assist with the sale of its non-oper- these assets are also up for sale.
ated stake in the Montrose-Arbroath area, Binding offers for the Montrose-Arbroath
situated in the Central North Sea. The area fields are due in March, the sources told
contains the Montrose, Arbroath, Arkwight, Bloomberg.
Brechin, Wood, Godwin, Cayley and Shaw Merger and acquisition (M&A) activity looks
fields, which together flowed 24,000 barrels of set to heat up in the North Sea now that the mar-
oil equivalent per day (boepd) in the first nine ket outlook has become more predictable than
months of 2020. it was at the height of the coronavirus (COVID-
Marubeni has a 41% stake in the project, 19) pandemic. BP recently relaunched the sale
while Sino-Spanish joint venture Repsol Sinopec of some of its assets, following the collapse of a
Resources serves as operator with the remaining previous deal with Premier Oil.
interest. Others reportedly seeking divestments
Both Idemitsu Kosan and Itochu have exited include CNOOC, Suncor and ExxonMobil. Over
the North Sea in recent years. If Marubeni’s sale in Norway, Italy’s Edison has just struck a deal to
is finalised, the only remaining Japanese opera- sell its oil and gas production business in Norway
tors with producing assets in the North Sea will to local player Sval Energi for $300mn.™

Week 03 21•January•2021 www. NEWSBASE .com P11