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The project involves the Bangka, Gendalo and It has left at least 158 people dead, 6,000 injured
Gehem fields. Bangka came on line in August and some 300,000 homeless.
2016, but a second phase of the project, a $6.98bn Lebanon is already deep in economic crisis,
development scheme for Gendalo and Gehem, caused by years of stagnation, government mis-
has failed to get off the drawing board. management and corruption, and made worse
The ministry’s acting oil and gas direc- by fallout from the coronavirus (COVID-19)
tor-general, Ego Syahrial, said on August 5 that pandemic. The explosion has stoked public
Chevron’s exit from IDD was connected to the anger against authorities, and nationwide pro-
expiry of its licence for the onshore Rokan Block tests led the government to resign on August 10.
in 2021. Pertamina is lined up to take over the Iraq has delivered some 720,000 litres of gas-
oilfield’s operatorship next year. oil to the country as a form of humanitarian aid.
“What’s clear is the government’s aim is to Alongside fuel oil, gasoil serves as a vital fuel in
ensure this project runs by 2027,” said Ego. This Lebanon’s power sectors. But supply shortages
start date represents a substantial delay from the have been chronic, resulting in frequent power
original target date of 2024. outages for decades.
“Essentially, Chevron has more attractive Iraq is eager to supply Lebanon with gasoil
opportunities elsewhere, and the project will and fuel oil on a regular, commercial basis. For
need a new operator before it can progress,” its part, Lebanon has long wanted to diversify its
Wood Mackenzie upstream analyst Andrew imports of these products once contracts with
Harwood told The Jakarta Post on August 6. Algeria’s Sonatrach and Kuwait’s KPC expire at
Indonesia’s problems with attracting foreign the end of this year.
upstream investors are well documented and In other news, Saudi Aramco has awarded a
even prompted the government to unveil new $80mn contract to Spain’s Tecnicas Reunidas to
plans in December 2019 to allow developers build a new sour water stripper at its 550,000 bpd
to pick between the gross split scheme that was Ras Tanura oil refinery. The Saudi oil giant has
introduced in 2017 and the pre-existing cost-re- scaled back spending significantly in response to
covery PSCs. The new regulation was approved the oil price collapse, and so it is proceeding with
on July 15. only the most necessary and minor projects to
Whether the government is able to convince improve its downstream efficiency.
Eni to take on Chevron’s stake in IDD in the cur- Aramco has notably axed a far costlier plan to
rent climate is uncertain. Harwood said the Ital- build a synthetic rubber production in the east-
ian major “could find synergies with its existing ern Saudi port of Al Jubail, at least according to
Jangkrik development in the Muara Bakau PSC”. its Russian partner Sibur.
However, Chevron identified late last year
that gas prices were likely to stay lower for If you’d like to read more about the key events shaping
longer, prompting its upstream portfolio review the downstream sector of Africa and the Middle East,
in the first place. The coronavirus (COVID-19) then please click here for NewsBase’s DMEA Monitor.
pandemic has only served to distort the global
supply and demand imbalance further, with the Europe: UK offshore decarbonisation
global economy in recession and no clear indica- The UK Continental Shelf (UKCS) can deliver
tion of when events will improve. 60% of the necessary emissions cuts for the
country to meet its net-zero target, according
If you’d like to read more about the key events shaping to a new report by the Oil and Gas Authority
Asia’s oil and gas sector then please click here for (OGA).
NewsBase’s AsianOil Monitor. Integrating oil and gas production with
renewable energy, carbon, capture and storage
DMEA: Crisis in Lebanon (CCS) and hydrogen could achieve 30% of the
Lebanon has reached out to dozens of countries emissions cuts required by 2050, while the use
for financial and humanitarian support, follow- of offshore wind, wave and tidal projects could
ing an explosion last week that flattened much of contribute a further 30%, according to the OGA.
Beirut’s port and the surrounding area. Lebanese Among its key findings, the report estimates
officials say the blast, which has caused up to that UKCS reservoirs could store up to 78 giga-
$15bn of damage, occurred at a warehouse stor- tonnes of CO2, which sufficient for hundreds of
ing thousands of tonnes of ammonium nitrate. years of the UK’s CCS needs.

Week 32 12•August•2020 www. NEWSBASE .com P7