Page 17 - AsianOil Week 42

AsianOil NEWSBASE’S ROUNDUP GLOBAL (NRG) AsianOil

Challenges ahead

Certain developments in recent days illustrate the scale

of ongoing challenges for the oil and gas industry, but
various players are forging ahead undeterred

GLOBAL WELCOME to the latest edition of NewsBase’s And in North America, mergers and acqui-
Roundup Global (NRG), in which our team of sitions (M&As) are gaining pace, with Cono-
international editors provide you with a snap- coPhillips confirming this week that it will acquire
shot of some of the key issues affecting their Concho Resources. At the same time, reports of
regional beats. Get the NRG Oil & Gas Editor’s merger talks between Pioneer Natural Resources
Picks to your inbox every week for free. Just sign and Parsley Energy have also emerged.
up here.
A number developments over the past week or Africa: Policy initiatives
so have highlighted the scale of challenges facing Several African countries have moved forward
the oil and gas industry. Members of the OPEC+ with the development of new laws and institu-
oil alliance have warned that the oil market could tions to govern the oil and gas sector over the last
be pushed back into surplus next year as the coro- week.
navirus (COVID-19) pandemic continues to hang In Nigeria, members of the House of Repre-
over demand while new supply threatens to upset sentatives are gearing up for the second reading of
the balance. the Petroleum Industry Bill (PIB), which is slated
Meanwhile, Rystad Energy has warned that to take place next week. They are doing so as more
hydrocarbon production on the UK Continental Shelf details of the legislation, which has been in the
(UKCS) is unlikely to exceed 2mn boepd again and works for years, come to light.
the International Energy Agency (IEA) highlighted In Mozambique, the central bank has publicised
the challenges that lie ahead for the LNG market. details of its plan to set up a new sovereign wealth
Such challenges are not stopping progress fund for future earnings from natural gas and LNG
on various fronts, though. The Philippines has projects. According to officials in Maputo, the gov-
lifted a six-year moratorium on exploration in ernment could deposit as much as $96bn worth of
disputed waters of the South China Sea and has revenue into the fund.
begun signing off on the development of LNG In Somalia, a new government agency is work-
import capacity. Meanwhile, Qatar has embarked ing to ensure that all regions of the country are rep-
on a push to find more buyers for its LNG as it resented within its governing structures. Last week,
expands its liquefaction capacity. the Somali Petroleum Authority (SPA) appointed

Week 42 22•October•2020 www. NEWSBASE .com P17