Page 7 - GLNG Week 46

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left in Norway following the departure of Chev-
ron in 2018 and ExxonMobil the following year. If you’d like to read more about the key events shaping
Its main focus is the Greater Ekofisk Area, which the former Soviet Union’s oil and gas sector then please
consists of the Ekofisk, Eldfisk and Embla fields, click here for NewsBase’s FSU Monitor .
in the southern North Sea.
ConocoPhillips has a 65%interest in PL1009, GLNG: Projects moving forward
while PGNiG has 35%. The pair will “assess Various LNG projects around the world are tak-
the results of the discovery together with other ing steps forward despite an increasingly chal-
nearby prospects with a view to a potential devel- lenging market. Among those making progress
opment to existing infrastructure,” the NPD said. in recent days is Sempra Energy’s Energía Costa
Azul LNG scheme in Mexico, which became
If you’d like to read more about the key events shaping 2020’s first project to reach final investment deci-
Europe’s oil and gas sector then please click here for sion (FID) stage on November 17. (See: Finally,
NewsBase’s EurOil Monitor . an FID for ECA LNG, page 13)
Meanwhile, the Papua LNG project received
FSU: Rosneft returns to red a major boost last week after the Papua New
The Russian oil giant Rosneft returned to a net Guinea (PNG) government passed six pieces of
loss in the third quarter, on the back of ruble legislation that allow operator Total to proceed
devaluation and low prices. with the $20bn development. (See: Papua LNG
The company swung to its first net loss since boosted by new PNG legislation, page 17) PNG
2012 in the first quarter after sustaining heavy Prime Minister James Marape said Total would
impairments but rebounded to profit in the send a delegation to the country soon for discus-
second quarter. The company suffered another sions on the project, and talks are reportedly also
loss of RUB64bn ($800mn) in the third quarter, planned with the other partners.
though, owing to a weaker ruble. This compared Back in the Western Hemisphere, US-based
with a RUB225bn profit a year earlier. Tellurian is reportedly in talks with unidentified
Rosneft’s EBITDA performed better, arriving Asian buyers to sell almost half of its output from
at RUB366bn ($5bn) in the third quarter of 2020, a proposed terminal on the Gulf Coast. (See: Tel-
beating a forecast by BCS Global Markets (BCS lurian reportedly in supply talks with Asian buy-
GM) by 6%. This is versus RUB544bn of earn- ers, page 16) Tellurian’s planned Driftwood LNG
ings in the same period of 2019 and RUB170bn facility was dealt a blow this year when previous
in the second quarter of 2020. Its net loss was talks with India’s Petronet failed to result in a
also 7% less than the Moscow-based brokerage supply deal amid the global downturn in LNG
projected. demand and prices.
Core earnings outperformed thanks to solid Last week, Tellurian’s chairman, Charif Souki,
free cash flow (FCF), BCS GM said. This “con- told Bloomberg that his company had other
firmed a significant recovery in the macroeco- potential customers interested in buying 12mn
nomic environment for Russian oil producers,” tonnes per year of output from Driftwood. The
it said. “We consider this to be a positive for the facility would produce 27.6mn tpy in total if it
stock.” goes ahead.
Revenues totalled RUB1.44 trillion ($20.1bn) According to Souki, the deals would be final-
in the three-month period, down 42% year on ised during the first half of 2021, with construc-
year but up 40% quarter on quarter. Oil prices tion on the terminal beginning in the middle of
slumped in March and April, only to recover in the year. He also said Tellurian would no longer
the subsequent months, thanks to a recovery will employ memoranda of understanding
in fuel demand after historic lows during lock- (MoUs) as a precursor to more in-depth talks,
downs, as well as OPEC+ cuts to supply. after the failure of the company’s MoU with Petr-
These cuts led Rosneft to reduce its overall onet to lead to a firm deal.
hydrocarbon output by 9.5% in the first nine For now, Total remains Driftwood’s only cus-
months of the year to 5.232mn barrels of oil tomer, so on top of Papua LNG progress, Souki’s
equivalent per day (boepd). This was led by comments come as welcome news for the French
a 10% drop in oil and condensate output to company.
155mn tonnes (4.14mn barrels per day).

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