Page 16 - AsianOil Week 43 2020

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Iraq plods on despite delays acquire Husky Energy for CAD3.8bn (2.9bn), or
Iraq’s oil minister this week said that the country CAD10.2bn ($7.7bn) including the assumption
still intends to increase oil production capacity to of debt.
7mn barrels per day (bpd) by 2027 despite facing This makes it the largest Canadian oil and
significant issues in financing new projects and gas deal in nearly four years based on enterprise
delays at those already in the pipeline. The min- value, and it comes as consolidation picks up
ister expressed confidence that despite delays in both the US and Canada. More stock-based
and payment issues, IOCs will remain, without deals with low premiums are expected.
any developments being cancelled or postponed. For Cenovus, the third-largest Canadian
Meanwhile, the ministry has engaged in discus- producer by output, the merger will narrow
sions with France’s Total over plans for the com- the gap with top producers Canadian Natural
pany to take over the development of one or more Resources Ltd (CNRL) and Suncor Energy. Sep-
gas projects in the Western Desert and near Basra. arately, the provincial government of Alberta Alberta’s
Russia’s Lukoil also said this week that it has announced that it will end mandatory pro-
intends to increase its oil production in Iraq duction curbs at the start of December, a month production
once output restrictions imposed by the OPEC+ earlier than previously scheduled.
group have been lifted. This comes as Alberta’s production continues continues to
Lukoil Mid-East’s managing director Egor to be reduced as a result of companies reining in
Zubarev said that the company had intended to output in response to the coronavirus (COVID- be reduced
increase output at the supergiant West Qurna-2 19) pandemic. Alberta Minister of Energy Sonya as a result of
field by 80,000 bpd, but it has actually cut pro- Savage said nearly 16% of the province’s crude
duction by 120,000 bpd in accordance with a output was currently offline. companies
request form the Iraqi oil ministry. This, in turn, has eased congestion on pipe-
In Iran, a group of Indian developers have lines carrying oil out of Alberta – which is what reining in output
finally lost out on the Farzad-B gas field, which the province’s government had been seeking to
has now been awarded to local firm PetroPars, achieve through the mandatory curtailments in response to
a subsidiary of the National Iranian Oil Co. prior to the pandemic. COVID.
(NIOC). Tehran had previously issued numer- The government had already been gradually
ous ultimatums to the group to make progress. easing the curtailments since taking office last
The US, meanwhile, announced a new raft year, and the latest industry downturn, exacer-
of sanctions on Iran, its Oil Ministry, NIOC and bated by COVID-19, has allowed it to speed up
others in a move appearing to be more about the the process.
look than the substance as President Donald The current shut-ins mark an improve-
Trump prepares for the upcoming election. ment from 22% of the province’s oil output – or
880,000 barrels per day (bpd) – being shut in at
If you’d like to read more about the key events the peak of the production cuts during the worst
shaping the Middle East’s oil and gas sector then of this year’s downturn. Nonetheless, it appears
please click here for NewsBase’s MEOG Monitor. that mandatory curtailments are no longer
needed as producers keep some demand shut in
Alberta prepares to end cuts voluntarily.
It has been an eventful few days for Canada’s oil
and gas industry. A new merger involving two If you’d like to read more about the key events shaping
major Canadian producers was announced the North American oil and gas sector then please click
this week. Cenovus Energy has struck a deal to here for NewsBase’s NorthAmOil Monitor.™

P16 www. NEWSBASE .com Week 43 29•October•2020