Page 15 - AsianOil Week 12

AsianOil
NEWS IN BRIEF AsianOil
services such as purchase of non-oil products without leaving vehicles, expanding contactless services for all categories of products at gas stations. CNPC, March 19, 2020
MOL posts notice on
recording extraordinary
loss
Mitsui OSK Lines (MOL) hereby announces that it expects to record an extraordinary loss on its Consolidated Financial Statements for fiscal year (FY) 2019 (April 1, 2019 – March 31, 2020) as outlined below. The company also expects to record an extraordinary loss on its Non-consolidated Financial Statements, also explained below.
In relation to a loan to Gearbulk Holding AG, which owns and operates bulkers, the company’s equity-method affiliate, MOL Bridge Finance, the company’s consolidated subsidiary, plans
to record a provision of allowance for doubtful accounts of $71mn as an extraordinary loss, because the market is remaining sluggish for a longer period of time than anticipated due to the impact of the novel coronavirus (COVID-19), and other factors. Therefore, business performance of the aforementioned equity- method affiliate is expected to show a significant delay in recovery, which may cause difficulties in recouping part of the loan.
The company also plans to record provision for loss on guarantees of $71mn as an extraordinary loss on its non- consolidated financial statements, because the joint guaranty is included in liabilities of the aforementioned consolidated subsidiary. However, the aforementioned provision
for loss on guarantees will be eliminated from the company’s consolidated financial statements and will have no impact on the consolidated financial
In relation to the charter-out contracts of containerships to Ocean Network Express (ONE), the equity-method affiliate, the company recorded the estimated future losses of that
time as a loss related to business restructuring for FY2017 (ended in March 2018). However,
it plans to record a loss related to business restructuring of $75mn as an extraordinary loss, because an additional loss is anticipated as a result of reflecting the latest trend of both charter rates and vessels’ costs in our assumption.
The company expects to make a downward revision in its forecast for the consolidated financial results ending in March 2020 due
to the above-mentioned extraordinary losses ($146mn) in total for both categories, but is now examining, based on other situations, and plans to announce the results on April 30.
MOL, March 24, 2020
OCEANIA
Oil Search provides PNG APA’sresponsetoCOVID-19 Update
shutdowns
APA’s operations are an essential service to our customers and the people of Australia. As such, our critical facilities and essential field sites will remain operational to ensure our assets remain safe and services to our customers continue.
Our focus is on the safety of our people and the community, and the resilience of critical operations. In light of recent announcements by the Prime Minister and various state premiers about progressive shutdowns of non-essential services, our people will work remotely wherever possible. Offices and field depots will remain open for essential activities only, such as our Integrated Operations Centre.
A dedicated Crisis Management Team, reporting to the CEO and Managing Director, Rob Wheals will continue to monitor the situation and lead APA’s response.
Rob Wheals said, “APA is absolutely focused on its essential role in ensuring the ongoing supply of gas and electricity for Australians. We will continue to do that safely and reliably. APA has mature and well-tested business continuity plans that will ensure our assets, people and communities remain safe and that our valued services are provided to our customers in accordance with our Customer Promise.
“We will work collaboratively with others in our industry to provide the essential services that our customers and the people of Australia rely on.”
APA, March 23, 2020
On Sunday 22 March 2020, Papua New Guinea’s National Executive Council announced the implementation of a series of measures in response to the first positive test of Coronavirus (COVID-19) in PNG. These include declaring a State of Emergency for 14 days and, following the cessation of incoming international flights on 21 March, stopping all domestic flights for 14 days starting on Tuesday 24 March 2020.
Oil Search has been monitoring the COVID-19 developments since early in the year and established a multi-disciplinary COVID Task Force to proactively prepare comprehensive plans to ensure business continuity in the event that an outbreak of COVID-19 in PNG occurs. As a result of these preparations, the Company’s business continuity plans are well developed
and are currently being implemented. Over the past week, the Company has commenced safely suspending all discretionary activities, such as the acquisition of seismic and development drilling, and is demobilising non-essential staff from the field. All key staff, including expatriates and relief staff, are now in PNG, located either
in the field or in Port Moresby, as required. As
a precautionary measure, business essential personnel have been isolated, to ensure safe and uninterrupted production from the Company’s operations in PNG
These measures will assist in minimising the risks of spreading COVID-19 and support business continuity for production from Oil Search’s operated assets..
OIL SEARCH, March 23, 2020
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