Page 12 - AsianOil Week 38 2022

AsianOil NEWS IN BRIEF AsianOil

Mongolia’s president meets foothold in Brazil will further open business India's ONGC unclear when
avenues in neighboring Latin American
Putin, Xi, backs pipeline countries." Sakhalin-1 will start up
BPCL said the field development plan
plans and final investment decision for the BM- again
SEAL-11 block is expected to be declared
Mongolian President Khurelsukh soon. Oil production from the block is India's Oil and Natural Gas Corp ONGC.
Ukhnaasaid on September 15 at a trilateral expected from 2026/27. NS said on Monday there was no clarity
meeting with Russian President Vladimir BPCL is the second largest fuel retailer on the resumption of its oil and gas project
Putin and Chinese President Xi Jinping in India and operates three refineries in Sakhalin-1.
that he supports the construction of oil the country with a combined capacity of Production at Sakhalin-1 was
and gas pipelines from Russia to China via 706,000 barrels per day (bpd). "minimized" shortly after the Ukraine war
Mongolia. started and there is no clarity or timeline yet
The three presidents met at a summit when it could be resumed, ONGC officials
of the Shanghai Cooperation Organisation Hess launches third phase told Reuters on the sidelines of the 38th
(SCO) in the Uzbek Silk Road oasis of Annual Asia Pacific Petroleum Conference
Samarkand. Khurelsukh stated that he of NMB project (APPEC) 2022.
backed the pipeline plans, proposing studies The project was hit due to force majeure
of their economic feasibility. US oil firm Hess has started gas production declared by the operator, Exxon Mobil
Khurelsukh, as reported by Reuters, from the North Malay Basin (NMB) Phase Corp, after sanctions against Russia had
said: "We also support the construction of 3 project in Block PM302, located 290 made it difficult to ship crude to customers.
oil and gas pipelines to supply natural gas kilometres offshore Peninsular Malaysia. ONGC Videsh, the overseas investment
from Russia to China through the territory Malaysian oil and gas giant Petronas arm of India's ONGC, Exxon Mobil Corp
of Mongolia and propose to study this shared the news of production startup on and Japan's SODECO are partners in the
issue from the viewpoint of technical and September 26. Sakhalin-1 project. ONGC Videsh owns a
economic justification". Block PM302 is operated by Hess 20% stake in the project.
Russian energy giant Gazprom has plans Corporation’s subsidiary, Hess Exploration
to build the Power of Siberia 2 gas pipeline and Production Malaysia B.V. (Hess) with
that will run via Mongolia to China. The a 50 percent participating interest, in Indonesia to offer more
aim is to transit 50bn cubic metres of gas partnership with Petronas Carigali Sdn Bhd,
per year via the route by 2030. A formal which owns the remaining 50 percent. blocks to boost oil
proposal for the investment is awaited. The NMB Phase 3 project was sanctioned
in 2019 and is part of a multi-phase produciton
development. It includes the installation of
India's BPCL signs MoU the new Bergading-B Wellhead Platform Indonesia will launch a second auction of
that adds another 100 million cubic feet
oil and gas blocks this year as it seeks to
with Petrobras to diversify per day (MMscfd) of gas supply from Block cash in on high energy prices and boost
output after decades of decline due to a lack
PM302, bringing the total production to
oil sources 400 MMscfd. of exploration and investment, officials said
on September 21.
Petronas Senior Vice President of
India's state-run Bharat Petroleum Corp Malaysia Petroleum Management (MPM), Southeast Asia's biggest economy is
said it had signed a preliminary agreement Mohamed Firouz Asnan, said, “We are committed to reaching a lifting target of
with Brazil's national oil company Petrobras pleased that Hess has taken a long-term 1 million barrels per day (bpd) in 2030,
PETR4.SA to help it diversify its crude oil view of the business in Malaysia across Energy Minister Arifin Tasrif told an
sourcing. industry cycles, demonstrating confidence industry conference in Jakarta.
Indian state refiners rarely buy Brazilian in Malaysia's upstream industry. Together, The once-OPEC member reached peak
oil. The Memorandum of Understanding we have continued to develop the NMB crude oil production in 1995, producing
(MoU) was signed by BPCL Chairman project to unlock the full potential of the more than 1.6 million bpd. But output has
Arun Kumar Singh and Petrobras CEO Caio block. This is a major milestone for both declined steadily ever since due to a lack
Paes de Andrade, BPCL said in a statement partners, as the NMB Phase 3 project is of exploration, an absence of discovery of
on September 24. key in sustaining Peninsular Malaysia’s gas large reserves, and shifting investment into
The MoU will help the company to supply amid rising demand.” renewable energy.
explore sourcing of crude oil through long “The close collaboration between Oil lifting in the January-June period was
term contracts "especially considering the Block PM302 parties and their service 614,500 bpd, upstream regulator SKK Migas
current geopolitical situations," it added. providers in overcoming challenges during said.
India recently allowed BPCL to invest the pandemic delivered this successful "Indonesian oil and gas upstream
$1.6bn for developing an ultra-deep water completion, which reflects the overall investment potential is still huge," Arifin
hydrocarbon block in Brazil. The block is resilience of the Malaysian Upstream told conference participants. "We have
majority owned and operated by Petrobras. ecosystem,” he added. 70 potential unexplored basins to offer to
Singh said: "Strengthening India's investors."

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