Page 6 - NorthAmOil Week 47 2020

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from 75,000 bpd to 140,000 bpd in a matter of that disputes the previous award of acreage in the
months. The facility was damaged during the Barents Sea. A lawsuit, backed by Greenpeace
ISIS invasion and occupation, and again when Norway and Nature and Youth, is attempting to
it was retaken by Iraqi forces. Sumood’s capacity use Norway’s founding principles as a justifica-
is expected to be restored to 280,000 bpd within tion for curbing oil and gas activity in the area.
two years, making it once again the country’s The court is due to give a final verdict at around
biggest oil refinery. the turn of the year.
Iraq also hopes to bring the 140,000 bpd Kar- Over in Romania, Russia’s Lukoil is under-
bala refinery south-west of Baghdad on stream stood to be seeking an exit at offshore block
in the first quarter of 2022. EX-3-Trident, further dimming prospects for
In other news, Nigeria has signed a memo- the country’s Black Sea gas development. Lukoil
randum of understanding (MoU) on potentially has an 87.8% stake in the block, while Romgaz
obtaining petroleum product supplies from holds the remaining interest. Initial exploratory Rosneft estimates
neighbouring Niger. work at the site in 2015 had indicated potential
Nigeria’s petroleum ministry said the recoverable gas deposits of around 30bn cubic Vostok Oil’s
non-binding accord covered the transportation metres. liquids resource
and storage of oil products. Talks on this subject The move comes amid continued frustration
have been ongoing for four months between over offshore legislation passed in 2018, which base at 6bn
Nigeria’s state-owned NNPC and its counterpart developers claim has made their projects unfea-
in Niger, SONIDEP. sible. The government has promised to address barrels of oil
Niger’s 20,000 bpd Soraz refinery is situated the industry’s concerns after the country’s parlia-
in Zinder, some 260 km from the Nigerian bor- mentary elections in early December. But con- equivalent,
der. According to the ministry, Niger’s domestic sidering the bearish conditions on European gas although its fields
fuel demand is only 5,000 bpd, leaving a surplus markets at present, this may be seen as too little,
of 15,000 bpd of capacity available for export. too late. have not been

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Europe: Norway launches new investor call FSU: Rosneft attracts first Arctic partner
The main news in the European oil industry Russian state oil company Rosneft looks finally
this week is Norway’s launch of its 25th frontier set to succeed in attracting a foreign partner to its
licensing round, aimed at driving forward explo- flagship Vostok Oil project in the Arctic, which it
ration in relatively unexplored regions. says will one day yield over 2mn barrels per day
Authorities have invited firms to bid for 136 (bpd) of oil.
new exploration blocks in eight frontier zones in Rosneft said last week that its board of direc-
the Barents Sea and one zone in the Norwegian tors had agreed on the sale of a 10% stake in its
Sea. Companies have until February 23 2021 to Vostok Oil LLC subsidiary to Trafigura for an
file their bids, and awards should occur the fol- undisclosed sum.
lowing month. The pair are “at the advanced stage of negoti-
Unlike Norway’s annual awards in predefined ations” on closing the transaction, Trafigura was
areas (APA) rounds, which seek operators for quoted as saying by Kommersant.
blocks in mature areas of the shelf, its numbered Vostok Oil is set to combine the fields in Ros-
rounds occur at less regular intervals in areas neft’s Vankor cluster – Vankorskoye, Lodoch-
where infrastructure is scarcer and drilling risks noye, Suzunskoye and Tagulskoye – with the
greater. But wells can also yield potentially large Paiyakha fields held by Neftegazholding, a pri-
discoveries. vate oil firm owned by former Rosneft presi-
The round’s launch comes less than a week dent Eduard Khudainatov. Other Rosneft assets
after the country’s Supreme Court finished including the West-Irkinsky block, and poten-
hearing a case brought by environmentalists tially the Baikalovskoye field it operates with BP

P6 www. NEWSBASE .com Week 47 26•November•2020