Page 11 - AsianOil Week 06

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for 2020 by 25% to 820,000 bpd, owing to the coronavirus. Rystad this week pointed to Chi- nese restrictions on public transport as well as domestic and international air travel as behind the slowdown in demand growth.
“Our previous growth forecast, published in December, before the coronavirus outbreak, stood at 1.1 million bpd. The coronavirus’ impact on demand growth could be even wider, however, slashing growth to as low as 650,000
bpd year on year in our worst-case scenario,” Rystad said.
Wood Mackenzie said on February 4 that it had lowered its first quarter global oil demand forecast by nearly 900,000 bpd to 98.8mn bpd, with shrinking Chinese demand accounting for 200,000 bpd of that figure.
The consultancy said: “Much of the drop is attributable to efforts to contain the outbreak, including flight cancellations.”v
OCEANIA
Queensland to launch upstream auction in April
FINANCE & INVESTMENT
AUSTRALIA’S Queensland State has unveiled plans to open its next oil and gas exploration bid round in April.
The 12 blocks, which cover 6,804 square km, provide coal-bed methane (CBM), unconven- tional gas and conventional oil and gas explo- ration opportunities, the state government said last week. In addition to the oil and gas acreages, which are located in the Bowen and Surat basins, the government will also release two coal explo- ration licences in the Bowen Basin.
The competitive tender process for the oil and gas blocks will close in June, with the results set to be revealed in September.
The Brisbane government said the gas pro- duced from the blocks would feed both liquefied natural gas (LNG) export projects and the local market as well.
It added: “As part of the Queensland govern- ment’s commitment to unlocking additional gas supply for the domestic market, some tender areas will be released subject to an Australian market supply condition. This condition ensures that any gas produced from those areas is sup- plied exclusively to the domestic market.”
The government said it would evaluate bids based on the tenderer’s proposed exploration work programme and its technical and financial capability to deliver on its proposed work commit- ments. Bidders will also be judged on their history of, and commitment to, compliance with relevant resources, environmental, health, safety, cultural heritage and native title requirements. The govern- ment will also take the bidder’s proposed commu- nity consultation approach into consideration.
Image: Queensland government
The planned auction comes after the govern- ment awarded 3,450 square km of new exploration acreage in October. The land was divided into six licences spread across the Bowen and Surat basins.
Praising the latest release of land for explo- ration, Queensland Resources Council (QRC) CEO Ian Macfarlane said: “We have been very supportive of the release of areas for exploration for all resources and the development of gas to service the domestic market. A proactive explo- ration programme secures tomorrow’s resource industry while supporting jobs, many of which will be in regional Queensland.”v
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