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Insurgents with suspected links to Islamic market conditions by retiring more vessels, and
State have been battling government forces in this could mean that operators struggle to find
gas-rich northern Mozambique, where several semi-submersibles for the work they plan in
major LNG export projects are under develop- 2021, according to Bassoe. Some will have to drill
ment. The attacks have grown in frequency over in the harsher winter months in order to secure
the past year. In July, eight employees of a pri- rigs, rather than working in the more favourable
vate construction firm working on Mozambique summer months.
LNG were killed in an ambush. This is set to be a long-term if not permanent
Mozambique LNG is due on stream in 2024 shift in market dynamics, Bassoe says. If opera-
and will produce 13.1mn tonnes per year (tpy) tors cannot find a way to progress with plans in
of super-cooled gas at its peak. The Golfinho and the coming year, it could lead to more units being
Atum gas fields in the Offshore Area 1 conces- retired or cold-stacked, making rig scarcity even
sion serve as its resource base. worse.
Total and its partners secured almost $15bn Neptune Energy, the Netherlands’ biggest
in senior debt financing for the project in early oil and gas producer, saw its core earnings more
August. They will be hoping that the security sit- than halve in the second quarter. But the com-
uation can be contained. pany fared better than others thanks to hedging
In other news, Iraq’s oil-for-projects deal a good deal of its production. But the mainly
with China is reportedly on hold because of the gas-focused producer warns that the recovery in
former’s unfolding economic crisis and pressure gas and LNG prices will be slow.
from the US. The agreement reached last year is Neptune’s fortunes were lifted in August
expected to see China support a $10bn joint fund when it made the Dugong oil discovery off
to develop reconstruction projects, including a Norway – the country’s largest find of the year
number of refineries. In return, Iraq will supply containing up to 120mn barrels of oil equivalent
China with 100,000 barrels per day (bpd) of oil. (boe). It now says there is scope for additional
However, local media report that the agree- potential at the site, but has not divulged details.
ment has been put on ice. Washington is pressing
the government to cancel it, they claim. If you’d like to read more about the key events shaping
Europe’s oil and gas sector then please click here for
If you’d like to read more about the key events shaping NewsBase’s EurOil Monitor.
the downstream sector of Africa and the Middle East,
then please click here for NewsBase’s DMEA Monitor. Gazprom’s worst quarter in many years
Russia’s Gazprom has reported its worst set of
Turn of tide for UK rig market quarterly results since the 2000s, as the corona-
The market for semi-submersible rigs in UK virus (COVID-19) pandemic took its toll on the
waters has been oversupplied for years, weighing company’s European sales.
down on day rates. But “the tide is beginning to Gazprom’s EBITDA was $1.3bn, versus
turn” according to a new report by Oslo-based $7.4bn a year ago, marking its worst earnings in
brokerage Bassoe Offshore. at least a dozen years. The company was also free
Rig owners are responding to the testing new cash flow (FCF) negative, and its net debt crept

Week 35 02•September•2020 www. NEWSBASE .com P7