Page 7 - AsianOil Week 32 2021

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SOUTHEAST ASIA AsianOil
it expired. He added: “On the other side of that, government will be operating the gas field, so this is a decision that government needs to make and analyse because government itself has a lot of constraints in terms of operations.”
Udenna’s Malampaya Energy has agreed to pay up to $460mn for Shell’s 45% stake in the field, after having already secured Chevron’s 45% interest earlier this year.
The Department of Energy (DOE) signed off on the Chevron deal, much to Gatchalian’s dis- may, with the senator calling the department to be more transparent in its approvals process.
Malampaya Energy has defend its develop- ment capabilities, with CEO Raouf Kizilbash telling the Gatchalian-led hearing last month that his group had $200mn to invest in the field after the transaction has closed.
The executive said: “What we have provided is about $100mn. We’ve retained in the Chevron companies between UC 38 and Singapore com- panies, UC Malampaya. In addition, when we take over the Shell business, there will be cash in that company as well as about $100mn. There will be about $200mn that can be used for explo- ration and growth.”™
EAST ASIA
China’s crude imports edge up in July
PIPELINES & TRANSPORT
CHINA’S crude oil import volumes edged up in July from a month earlier, but remained sig- nificantly behind the heady pace that was set in 2020 when buyers moved to capitalise on bar- gain basement prices.
The country imported 41.24mn tonnes (9.75mn barrels per day) of oil in July, up from the 40.14mn tonnes (9.81mn bpd) purchased in June. This was still far behind the 51.29mn tonnes (12.13mn bpd) of oil the country imported in July 2020.
China’s oil imports have slowed this year for a mixture of reasons, including mounting invento- ries, rising international oil prices and the central government’s crackdown in April on the import quota trading. Imports in the first seven months slid 5.6% year on year to 301.83mn tonnes (10.44mn bpd).
Analysts have attributed the slight recovery to planned maintenance schedules at several state- run refiners being wrapped up.
“With state-owned refineries completing overhauls, the number of refineries resum- ing operation is gradually increasing,” Reuters quoted China-based Longzhong consultancy as saying on August 7. The newswire, however, noted that operating rates at Shandong Prov- ince’s independent refiners remained depressed
in July, falling to an average rate of 63% in late July – the lowest level in the year.
In addition to the oil prices recovery and limited domestic demand growth, the central government’s crackdown in April on the illicit trading of crude imports has been cited as being behind sluggish import rates. Beijing slashed the private sector’s quotas for the second half of this year by 35%.
The government not only went after teapot crude quota trading but also the state majors’ non-compliant crude supply to the intendents. Shandong Province’s government reportedly responded this month by ordering independent refiners not to trade crude oil quotas.
Provincial authorities asked 30 refiners to sign a letter of guarantee by the end of August 4, Reuters reported on August 3, citing industry sources and an official document. The newswire quoted the document as saying the move was designed to “safeguard crude oil market order ... and ensure stable fuel supplies”.
“The government has stepped up checks on teapots in recent months, inspecting whether they have shut old units as promised, whether they are operating at the capacity previously agreed with the government,” an unnamed offi- cial at a Shandong-based refiner told Reuters.™
Week 32 12•July•2021 w w w . N E W S B A S E . c o m P7