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In the UAE, China’s CNOOC joined Abu Dha- $30mn worth of financing obligations for asso-
bi’s Lower Zakum consortium just as signs were ciated infrastructure. The acquisition, in the liq-
emerging that ADNOC would resume offshore uids-rich Inga-Fireweed asset directly adjacent
contracting activity. The growing role of Chi- to ConocoPhillips’ existing Montney position,
nese companies in the Emirati oil and gas sec- comprises roughly 140,000 net acres (567 square
tor has been emphasised by CNOOC’s entry km). The deal will bring ConocoPhillips’ total
to the Lower Zakum, Umm Shaif and Nasr Montney footprint to 295,000 net acres (1,194
concessions. square km). The US saw its
Meanwhile, Chevron agreed to buy Noble The Montney is primarily known as a gas
Energy for $5bn in stock in the first major deal play, and though this acquisition consists of first increase
of the current oil downturn, providing the major both gas and liquids, it may indicate gas coming
with a foothold in Israel. Buyers may be attracted back into favour with producers – as Chevron’s in the active oil
by bargain prices, but appetite has been muted in forthcoming merger with Noble also does. This
recent months. is more of a longer-term trend, however. rig count since
In another sign of stability, Iraq took steps In the short term, meanwhile, the US saw mid-March
towards resuming crude oil exports to Jordan, its first increase in the active oil rig count since
starting with trucked cargoes ahead of longer- mid-March. But the increase was a marginal one,
term and broader pipeline plans. As cross-bor- with Baker Hughes’ data showing the number of
der trade edges towards normality, optimism is oil-focused rigs had risen by one in the week up
growing that contracting and M&A activity will to July 24 and, given a drop of three in the gas rig
begin to ramp up again. count over the same week, there was still a slight
net decline. At the basin level, both the Permian
If you’d like to read more about the key events shaping Basin, Eagle Ford and Granite Wash regions saw
the Middle East’s oil and gas sector then please click slight increases in the oil rig count. And while
here for NewsBase’s MEOG Monitor. these were cancelled out by declines in the num-
ber of gas rigs, they are being held up as a reason
Not all bad news in North America to be cautiously optimistic about the start of a
Last week’s news that Chevron was buying gradual recovery.
Noble Energy for $5bn was followed by other At the same time, though, second-quarter
positive developments in North America. First, results announcements are looming, and prom-
another acquisition – solely involving acreage ise to be largely negative. Indeed, oilfield ser-
and smaller than Chevron’s deal, but still sizea- vices leader Schlumberger reported a net loss
ble nonetheless – was announced. Then the latest of $3.4bn on July 24, and eyes are now turning
Baker Hughes oil rig count edged up for the first to the upstream players as they prepare for their
time since March. own second-quarter earnings releases..
ConocoPhillips said on July 22 that it was
buying additional acreage in Western Canada’s If you’d like to read more about the key events shaping
Montney shale play from Kelt Exploration for the North American oil and gas sector then please click
around $375mn, plus the assumption of roughly here for NewsBase’s NorthAmOil Monitor.™

P10 www. NEWSBASE .com Week 30 30•July•2020