Page 8 - AsianOil Week 33 2022

AsianOil SOUTH ASIA AsianOil

ONGC, ExxonMobil pen deal on deepwater

offshore exploration

PROJECTS & INDIA’S ONGC and US major ExxonMobil strategic fit where ONGC’s knowledge and past
COMPANIES have penned a deal to target deepwater explo- experience in these areas will be coupled with
ration prospects in the Krishna Godavari and ExxonMobil’s global insights.”
For ONGC, deepwater Cauvery basins off India’s east coast and in the Indian Petroleum Secretary Pankaj Jain com-
exploration is a Kutch-Mumbai region off the country’s west mented that the tie-up between the two compa-
key focus and it coast, they said on August 18. nies would “bring tangible benefits in the entire
has reached out to The heads of agreement (HoA) signed by energy value chain and open new vistas to explo-
international players for the pair follows a memorandum of under- ration and production.”
assistance. standing (MoU) they reached in 2019 to “This collaboration will boost our confidence
undertake joint technical studies and co-op- in going further ahead in deepwater exploration
erate in frontier oil and gas zones. ONGC on the east coast of India, where the potential is
operates a number of offshore rigs and is eager quite significant,” he said.
to expand its deepwater exploration efforts, ONGC is already undertaking the $5bn
primarily in the gas-prone Krishna Godavari KG-DWN-98/2 deepwater development in
basin. It has been seeking international part- the Krishna-Godavari basin, set to signifi-
ners to support this. cantly expand the company’s oil and gas output.
“There has been a scientific exchange of Adjoining the Reliance-operated D6 block, it
exploration data in the last few years, which has was originally awarded to Cairn Energy in 2000,
led to this partnership,” the Indian government and since then, 10 discoveries have been made
said in a statement on August 17. “Collabora- at the block. ONGC took over the project in
tion between ONGC and ExxonMobil will be a 2005.™
EAST ASIA

Chinese LNG imports see 15.4%

slump in July

PIPELINES & CHINESE LNG imports slumped 15.4% year on “The weakening gas demand was due to a
TRANSPORT year in July to 4.74mn tonnes, according to cus- confluence of factors, including economic slow-
toms data published on August 18, as the coun- down, rising gas import prices, policy support
Despite the overall try is forecast to see its biggest slump this year in for clean coal and a warmer than usual winter,”
slump, China is buying LNG demand since it began importing the fuel. the Edinburgh-based consultancy said in mid-
more and more Russian Cumulative LNG imports in the first seven July. “Gas-fired power was a major contributor
LNG. months of this year were down 20.3% y/y, total- to the absolute decline in volumes. In addition
ling 35.93mn tonnes, according to customs data. to the factors mentioned earlier, the sector was
Meanwhile, pipeline gas imports rose by 8% y/y pressured by growth in use of renewables.”
in July to 3.96mn tonnes, and were up 10.8% y/y In contrast to the prevailing trend, Chi-
in January to July, at 26.28mn tonnes. na’s LNG imports from Russia have seen sus-
China’s own production also rose in July by tained growth over recent months. According
8.2% y/y, at 17.1bn cubic metres, the country’s to customs data, the country imported some
National Bureau of Statistics reported on August 400,000 tonnes of Russian LNG in July, up
15. Output was up 7.8% month on month. Pro- 20.1% y/y and marking the fourth consec-
duction in the first seven months of the year utive month of growth. Chinese oil imports
expanded by 5.4% y/y, arriving at 126.7 bcm. from Russia have similarly been higher this
Chinese LNG imports soared 18.3% last year year, and in July were up 7% at 7.14mn tonnes
to a record 78.93mn tonnes, but Wood Mac- (1.69mn barrels per day). Beijing has been
kenzie has forecast that shipments will see their taking advantage of the discounted cost of
biggest ever decline in 2022, falling 14% y/y to Russian energy exports to expand supply
69mn tonnes. from its main geopolitical ally. ™

P8 www. NEWSBASE .com Week 33 21•August•2022