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sign of reversing the decline in its crude output
and may see production drop from the current
level of 100,000-200,000 bpd to near zero.
As recently as 2019, Venezuelan yields still
stood at 650,000 bpd. However, US sanctions,
deteriorating infrastructure and the fall in
global energy demand have wreaked havoc on
the sector.
Meanwhile, Venezuela’s National Assembly,
which is dominated by parties that oppose the
socialist government led by President Nico-
las Maduro, has launched an investigation of a
recent oil spill off the coast of Falcón state. MPs
have requested information from the national
oil company (NOC) PdVSA and other state-run Forward momentum on both projects and
institutions for details on the incident, which diversification in North America
appears to be related to maintenance work at the Differing approaches to the energy transition
El Palito refinery. Opposition legislators say the mean that there is momentum on both oil pro-
spill happened because heavy rainfall caused the jects and diversification efforts among North
146,000 bpd plant’s oxidation ponds to overflow. American oil and gas companies.
In other news, Argentina’s YPF has reported On August 14, the US government approved
that its financial and operational performance ConocoPhillips’ Willow project in the National
suffered in the second quarter of 2020 as a result Petroleum Reserve-Alaska (NPR-A). (See: Cono-
of the coronavirus (COVID-19) pandemic. The coPhillips’ Willow project in Alaska on path to
state-owned firm said it had incurred a loss of approval, page 15) The US Bureau of Land Man-
ARS85bn ($1.17bn) in the April-June period, agement (BLM) published a final Environmental
down by 154.8% on the loss of ARS33.36bn Impact Statement (EIS) for the project, saying it
($458.7mn) reported in the same period of 2019. could produce more than 160,000 barrels per
day (bpd) of oil over the next 30 years.
If you’d like to read more about the key events shaping If constructed, Willow will be the west-
the Latin American oil and gas sector then please click ernmost development on the North Slope. Its
here for NewsBase’s LatAmOil Monitor. approval comes as the administration of US Pres-
ident Donald Trump continues its broader push
Iranian contract awards continue as output to spur oil development in Alaska. Within days
increases of Willow being authorised, the US Department
Iran this week announced the award of 13 con- of the Interior (DoI) approved a sweeping plan
tracts with 14 local companies for field develop- to allow oil leasing across the Arctic National
ment projects that are expected to increase the Wildlife Refuge’s (ANWR) entire 1.56mn acre
country’s crude production capacity by more (6,313 square km) coastal plain. The area has
than 180,000 barrels per day once complete. been off-limits to oil drilling for decades, and
A signing ceremony was held on August authorisation of drilling there will run into high
17, during which the National Iranian Oil Co. levels of opposition from environmental and
(NIOC) said that the deals were for the second conservation groups.
phase of a plan to maintain and increase produc- But despite strong support for oil develop-
tion capacity. Of the 13 projects for which con- ment from the Trump administration, a number
tracts were signed, 10 have already implemented of major producers are diversifying beyond oil,
their first phase, reaching 25% completion. likely encouraged by ongoing crude price vola-
Meanwhile, three new wells were completed tility. A prominent example of this recently has
at South Pars Phase 22, raising output from the been Chevron, which said last week that it was
overall SP 22-24 project by 200mn cubic feet investing in nuclear fusion start-up Zap Energy.
(5.7mn cubic metres) per day. SP22-24 had been The super-major joins Italy’s Eni and Norway’s
earmarked to produce a combined 18.6bn cubic Equinor in backing nuclear fusion start-ups to
metres per year by March 20, 2019, but a lack of reduce their carbon footprint. (See: Chevron’s
foreign currency after the US withdrawal from latest moves illustrate diversification push, page 9)
the nuclear deal derailed these ambitions. The announcement came shortly after Chev-
M&A activity continued to rebound as the ron also unveiled a plan to build 500 megawatts
UAE’s Senaat and other minority shareholders of (MW) of renewable energy plants to power
the National Petroleum Construction Co. (NPCC) some of its operations in the US’ Permian Basin
submitted a bid to merge the firm with the National and overseas. The plants will be developed
Marine Dredging Co. (NMDC). The deal would under a four-year agreement with Algonquin
create a new regional EPC major, which already Power and Utilities, and appear to mark a new
has an established footprint in MENA and South level of engagement with renewables for Chev-
Asia and a combined revenue of $2.4bn. ron. At the same time, though, the super-major
continues to move forward with oil projects,
If you’d like to read more about the key events shaping with the Wall Street Journal reporting on August
the Middle East oil and gas sector then please click 17 that Chevron is in talks over an investment in
here for NewsBase’s MEOG Monitor . an Iraqi oilfield.™

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