Page 8 - GLNG Week 46

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Latin America: Brazil launches Marlim sale issues with the refinery and terminal have also
In Brazil, the national oil company (NOC) Petro- posed their own problems.
bras has launched the teaser stage for its planned The news wasn’t all bad in Saudi Arabia,
sale of the Marlim cluster, a group of deepwater though, as Aramco is reported to be preparing
oil and gas fields in the Campos basin. The four to kick off work to expand production capacity at
fields within the group are currently producing the super-giant offshore Safaniyah field. Tender
about 217,000 barrels per day (bpd) of crude oil documents have been issued to the company’s
and more than 3.6mn cubic metres per day of pool of contractors that are signatories of long-
gas, according to a company statement. term agreement (LTA) contracts with Aramco,
The NOC said last week that it intended to ahead of an anticipated award in the first quarter
stay on as operator of the licence area but was of 2021.
looking to unload half of its 100% stake. Mean-
while, Houston-based Welligence Energy If you’d like to read more about the key events shaping
Analytics described Marlim as “the biggest the Middle East’s oil and gas sector then please click
acquisition opportunity” in the region and spec- here for NewsBase’s MEOG Monitor .
ulated that the sale might draw bids from major
international oil companies (IOCs). North America: Asset sale and bankruptcy
Meanwhile, Suriname’s NOC Staatsolie is The shale industry has been prominent in North
gearing up to offer eight shallow-water offshore American oil and gas developments in recent
blocks to foreign investors. The company said days, with notable news including a reported
last week that it was on track to launch a new asset sale and a bankruptcy.
bidding round on November 16. The winners On November 13, Reuters reported that Den- Suriname’s
of the auctions will be able to negotiate contracts ver-based Ovintiv was seeking to sell its assets in
that provide for the collection of new 3D seis- the Eagle Ford shale, citing several people famil- NOC Staatsolie
mic data from the blocks in the first phase of iar with the matter.
exploration. The company – which was previously based is gearing up
In Mexico, US-based Sempra Energy and in Calgary and known as Encana – bought its to offer eight
its local subsidiary IEnova have announced a Eagle Ford assets in 2014 from Freeport-Mc-
final investment decision (FID) on the Energía MoRan for $3.1bn. According to one of Reuters’ shallow-water
Costa Azul (ECA) project, which envisions the sources, the assets could fetch around $600-
establishment of an LNG export terminal in 700mn. The plan to sell the assets is reported to offshore blocks to
Baja California. They took this step after Mex- be at an early stage.
ican President Andres Manuel Lopez Obrador The difference in the assets’ original prices foreign investors.
pledged to issue the last permit needed to reach and what they could fetch now illustrates how
the FID stage, provided that ECA commits to much more challenging the current operating
helping the national power provider CFE dis- environment is – when even before this year’s
pose of excess gas supplies. downturn shale drillers were already struggling.
Some are now seeking to boost their perfor-
If you’d like to read more about the key events shaping mance and pay down debt, including through
the Latin American oil and gas sector then please click asset sales. Indeed, Ovintiv is estimated to have
here for NewsBase’s LatAmOil Monitor . debt of $7.1bn that a sale of the Eagle Ford assets
could help pay down.
Mideast: Attacks and contracts Other shale drillers, meanwhile, have found
ADNOC, the UAE’s national oil company themselves forced into bankruptcy protection.
(NOC), announced progress on several initia- This has also played out once again in recent
tives last week and also struck deals on new pro- days, with Gulfport Energy announcing that it
jects, using the platform of the annual ADIPEC had filed for Chapter 11 bankruptcy protection.
event to spread word of its successes. The company said on November 14 that it
The state-run oil firm continues to supple- had entered into a restructuring support agree-
ment its core business of oil and gas production ment with over 95% of its revolving credit facil-
as it increases activities throughout the value ity lenders and certain noteholders. The plan is
chain, and this strategy was exemplified by pro- aimed at strengthening Gulfport’s balance sheet,
gress in the upstream, midstream and services “significantly” reducing its funded debt and low-
sectors. Meanwhile, the company is ramping up ering operating costs, it stated.
efforts to improve its environmental stewardship The company said that after it completes the
through carbon capture, utilisation and storage restructuring process, it will have eliminated
(CCUS). roughly $1.25bn in funded debt. Gulfport Ener-
In Saudi Arabia, oil facilities at Jazan, which is gy’s debts came to about $2.5bn as of September
located near the border with Yemen, came under 30, according to a filing with the US Bankruptcy
attack from Houthis. While the attack was ulti- Court for the Southern District of Texas.
mately foiled, it resulted in a fire, although there
were no casualties. Jazan has been an area of If you’d like to read more about the key events shaping
concern for Saudi Aramco over the past year or the North American oil and gas sector then please click
so, having come under attack previously, while here for NewsBase’s NorthAmOil Monitor .™

P8 www. NEWSBASE .com Week 46 20•November•2020