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While the fuel industry has welcomed the move, would likely continue its work even if the sanc-
there are concerns that the government could tions are applied. Gazprom also appears to have
backtrack on reforms once world fuel prices transferred one of the vessels to another com-
recover. Nigeria is heavily dependent on imports, pany, shielding itself from potential punitive
and mere rumours of hikes in fuel costs have measures.
triggered rioting in the past. The road to market In the North Sea, Premier Oil has managed to
liberalisation is therefore politically fraught. renegotiate a lower price for a group of BP assets,
In an encouraging development for Angola, while also making peace with its main creditor
London-based investment firm Gemcorp is pre- which opposed the deal. If completed, the trans-
paring to take a final investment decision (FID) action will be a boon for North Sea M&A activ-
by the end of this month on a new 60,000 bpd oil ity, which has slumped since the March oil price
refinery in Cabinda. This is one of three plants collapse.
the West Coast African country wants to build North Sea juniors Egdon Resources and Cluff The US is
to make motor fuel imports a thing of the past. Natural Resources are pushing ahead with devel-
Meanwhile, Iran is looking to expand its gas- opment plans, despite the current market condi- considering
oline storage, in response to a slump in demand tions. Egdon has secured licence extensions for additional
caused by the coronavirus and in preparation for the Resolution and Endeavour gas discoveries,
an expansion of the Persian Gulf Star refinery. bringing it one step closer to completing a farm- sanctions as a
Iran was one of the countries hardest hit by the out to Royal Dutch Shell. Cluff, meanwhile, says
pandemic, with travel restrictions causing gaso- it is still committed to drilling at the Pensacola last-ditch attempt
line stockpiles to reach unprecedented levels last and Selene finds, even though one of the wells
month. will be delayed by a year. It too is partnered with to prevent Russia
the Anglo-Dutch major. from completing
If you’d like to read more about the key events shaping
the downstream sector of Africa and the Middle East, If you’d like to read more about the key events shaping the Nord Stream
then please click here for NewsBase’s DMEA Monitor. Europe’s oil and gas sector then please click here for
NewsBase’s EurOil Monitor. gas pipeline
Europe: US wades into German affairs;
North Sea developments FSU: Russia commits to longer cuts
The US is considering additional sanctions in a Russia and its OPEC+ allies agreed a one-month
last-ditch attempt to prevent Russia from com- extension to record output cuts in a meeting on
pleting its Nord Stream 2 pipeline. But with a June 6. The alliance of oil producers will now
mere 6% of the pipeline left to lay, further puni- keep 9.7mn bpd of supply offline until the end
tive action is unlikely to thwart the project and of July and then ease the cuts. OPEC+’s decisive-
could backfire by further straining Washington’s ness, together with recovering demand, should
relations with Berlin. help stabilise the market, with analysts forecast-
Russia is expected to use two of its own pipe- ing that oil could rise back up to $50 per barrel
laying vessels to finish Nord Stream 2, which as a result.

P8 www. NEWSBASE .com Week 23 10•June•2020