Page 5 - FSUOGM Week 35 2020

FSUOGM NEWSBASE’S ROUNDUP GLOBAL (NRG) FSUOGM

Risks to stability

Oil prices have changed very little in recent weeks, disappointing those that

had hoped for a late-summer rebound. And prices could falter if fears of a
second global COVID-19 wave are realised

GLOBAL WELCOME the latest edition of NewsBase’s Africa: South Sudan looks to 2027
Roundup Global (NRG), in which our team of South Sudan’s oil industry has suffered some
international editors provide you with a snap- setbacks this year. Fallout from the coronavi-
shot of some of the key issues affecting their rus (COVID-19) pandemic has caused crude
regional beats. Get the NRG Oil & Gas Editor’s production levels to remain at 170,000-180,000
Picks to your inbox every week for free. Just sign barrels per day (bpd), falling short of the target
up here. level of 200,000 bpd. Nevertheless, the national
Oil prices have remained relatively stable oil company (NOC) Nilepet is looking ahead
over the past week, despite hurricanes that tem- and preparing for the time when it will assume
porarily took some 2mn barrels per day (bpd) operatorship of fields now under the control of
of oil supply in the US Gulf of Mexico offline. foreign companies.
Brent remains at just above the $45 per barrel The shift looks set to begin in 2027, when the
mark, having seen very little change over the licence granted to China National Petroleum
last month. This has disappointed those that had Corp. (CNPC) and other investors in the Dar
hoped for a late-summer rebound. Petroleum Operating Co. (DPOC) consortium
Prices have also been supported by news in is due to expire. DPOC, which is developing
Libya, where the Libyan National Army (LNA) Blocks 3 and 7 in the Melut Basin, accounts
has rejected a ceasefire with the government. for more than half of South Sudan’s current oil
This means the country’s oilfields will remain output.
shut-in for longer. Meanwhile, Total (France) and its partners
Fuel demand remains stuck below pre-coro- are also optimistic about South Africa’s offshore
navirus (COVID-19) levels, even though low zone. The group has spudded its first exploration
prices have encouraged consumption. Mean- well at Luiperd, a section of the Block 11B/12B
while, countries across the world are bracing for licence area. Its new well, known as Luiperd-1X,
a second wave of the virus, which risks derailing lies along the same sequence as Brulpadda-1X,
the market’s recovery. A surge in cases in the where large hydrocarbon reserves were discov-
last few days in Spain and some other European ered last year.
countries is disconcerting. Other international majors are taking a

Week 35 02•September•2020 www. NEWSBASE .com P5