Page 9 - AfrOil Week 48 2020

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Tatneft’s board, meanwhile, disappointed inves- final investment decision (FID) on the Rovuma
tors by failing to announce a decision on a divi- project, which is estimated to cost $30bn.
dend for the third quarter of 2020, implying that This comes as developers elsewhere in the
one is not likely to be paid. world are backing away from resource-shar-
ing. Earlier in November, it was reported that a
If you’d like to read more about the key events shaping planned two-project development in Papua New
the former Soviet Union’s oil and gas sector then please Guinea (PNG) might end up being altered so
click here for NewsBase’s FSU Monitor . that one new project goes ahead while an expan-
sion of another – already operational – facility
GLNG: Looking at resource-sharing could be scrapped.
The oversupply in the LNG market, which has
been exacerbated by the coronavirus (COVID- If you’d like to read more about the key events shaping
19) pandemic, is prompting developers to con- the global LNG sector then please click here for
sider options including resource-sharing. This NewsBase’s GLNG Monitor.
is now playing out in Mozambique, where Total
and ExxonMobil are reported to be in talks over Latin America: Guyana drilling plans
a potential resource-sharing deal. Offshore Guyana, two consortia are hoping to
Last week, three sources familiar with the launch new drilling programmes before the end
matter told Reuters that the two companies of next year.
were in negotiations, with each reportedly seek- According to a statement from Canada’s Eco
ing to extract more gas from a shared field that (Atlantic) Oil & Gas, shareholders in the Orin-
straddles their two developments and cut costs. duik block are currently reviewing several pros-
Total is already developing its Mozambique pects that may contain light sweet crude oil in Shareholders
LNG export terminal, which will use feedstock order to “provide further definition to the Cre- in Guyana’s
gas from Offshore Area 1. ExxonMobil, mean- taceous interpretation.” The company did not
while, is still weighing whether to go ahead with identify any of the prospects but said that the Orinduik block
Rovuma LNG, which would use feedstock gas highest-graded target areas would be added to
from neighbouring Offshore Area 4. Separately, the drilling programme. “[We] hope to have tar- are reviewing
ExxonMobil is also involved in the Eni-led Coral get selection in the next six months, allowing us
South floating LNG (FLNG) project, under to begin drilling preparation in the second half of several offshore
development currently and using gas from Off- 2021,” said Gil Holzman, Eco Atlantic’s president prospects that
shore Area 4. and CEO.
The field that straddles ExxonMobil and To date, Eco Atlantic and the other sharehold- may contain light
Total’s project areas contains cheap and abun- ers in Orinduik have made two non-commercial
dant gas resources. The volume each project discoveries of heavy oil at Orinduik. Neverthe- sweet crude oil
could extract from the shared area was set out less, Tullow Oil (UK/Ireland), the operator of the
in a 2015 unitisation – or resource-sharing – block, has remained optimistic about the group’s
agreement, but according to the sources, both chances of discovering light sweet crude.
ExxonMobil and Total are now renegotiating Meanwhile, two other Canadian companies,
that contract with each other. CGX Energy and Frontera Energy, have secured
The companies are reportedly seeking to permission to push back their deadlines for
cut costs wherever they can, in response to the drilling at the Corentyne block. In a statement,
impact of COVID-19 and the worsening secu- Frontera said Guyana’s government had agreed
rity situation in northern Mozambique. The to wait for another 12 months – that is, until
negotiations are reported to be particularly sig- November 27, 2021 – for the drilling of the next
nificant for ExxonMobil, as it has yet to make a well at Corentyne.

Week 48 02•December•2020 www. NEWSBASE .com P9