Page 13 - AsianOil Week 25a

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explains why it was able to go ahead despite the Norway’s tax system is generally successful at
market uncertainty. But Aramco, which now ensuring that investment in exploration contin-
has private shareholders to consider, negotiated ues even when prices are low. Meanwhile, those
a longer payment schedule. companies that are in possession of discoveries
By bringing SABIC’s vast petrochemicals have extra incentive to push ahead with devel-
capacity into the fold, Aramco wants to develop opment after Parliament recently approved a tax
its downstream business into an effective hedge relief package.
against oil market volatility. But in the short term, Companies have until September 22 to bid
SABIC will be a financial burden. The company for the offered acreage, with authorities planning
has suffered two consecutive quarterly losses in to award licences in early 2021.
a row, on weaker demand for petrochemicals in While Norwegian production is due to ramp
Asia and excess global supply. up over the next five years, its current output is
Elsewhere, Nigeria is looking to build a new subdued. Gas extraction fell for the fifth month
200,000 bpd condensate refinery to ease reli- in a row in May, as suppliers held back volumes
ance on fuel imports, with a final investment in response to weak prices. Oil production was
decision (FID) due to be taken on its first train up last month, but is due to fall in June as govern-
before the end of July, state-owned NNPC has ment-mandated cuts come into force.
said. The country is also intending to repair In the UK, low prices will mean some fields
and upgrade its existing plants, but progress are shut down earlier, providing a boon to the
has been slow. decommissioning sector in the coming years.
Meanwhile, a Dubai-based firm called Ecomar But the Oil and Gas Authority (OGA) has
has started up a new oil refinery in Fujairah, build- warned that decommissioning spending will
ing on the UAE port’s status as a major hub for take a hit in 2020 as operators cut costs. This
oil trading, bunkering and storage. US contrac- could have a significant impact on the supply
tor KBR has teamed up with an Indian counter- chain, risking undermining the UK’s status as a
partto target contract opportunities at refining global leader in decommissioning, the upstream
and petrochemical projects in Africa, the Middle regulator warns.
East and elsewhere, while South Africa’s Rener- Meanwhile, German power giant RWE has
gen has partnered with France’s Total to market said it aims to finalise LNG supply contracts by
and distribute LNG from a liquefaction plant it the end of this year that will underpin the devel-
is building. opment of what could be Germany’s first regas-
ification terminal. That will clear the way for an
If you’d like to read more about the key events shaping FID to be taken.
the downstream sector of Africa and the Middle East, There are several similar schemes currently
then please click here for NewsBase’s DMEA Monitor. underway in Germany, but how many are real-
ised could hinge on the government shifting its
Norway’s new offering stance in favour of gas-derived hydrogen.
Norway has kicked off its next offshore licensing
round, inviting companies to bid for an extra 36 If you’d like to read more about the key events shaping
oil and gas blocks. Current market conditions Europe’s oil and gas sector then please click here for
may deter some from submitting offers. But NewsBase’s EurOil Monitor.

Week 25 25•June•2020 www. NEWSBASE .com P13