Page 8 - AfrOil Week 49

AfrOil NEWSBASE’S ROUNDUP GLOBAL (NRG) AfrOil

NRG: Oil market strategising

Policy decisions made this past week will have long- and short-term ramifications for the energy sector

COMMENTARY WELCOME to the latest edition of NewsBase’s In the long term, however, the upstream
Roundup Global (NRG), in which our team of industry needs to prepare for a global transition
international editors provide you with a snap- away from fossil fuels. The importance of such
shot of some of the key issues affecting their strategising was underlined by Denmark’s deci-
regional beats. Get the NRG Oil & Gas Editor’s sion to ban all new exploration in the North Sea,
Picks to your inbox every week for free. Just sign while allowing its existing production projects to
up here. remain in place.
Some of the biggest news this past week The move reflects a similar decision made last
revolved around policy decisions in the year by New Zealand, a much smaller hydrocar-
upstream space. The oil market was able to relax bons producer, and should give the wider oil and
somewhat following OPEC+’s decision to keep gas industry pause for thought.
production cuts in place until the end of January.
The importance of efforts to support oil prices Asia: Abadi supply deal
was underscored by Chevron’s announcement Indonesia’s state-owned distributor Perusahaan
last week that it would cut its capital expenditure Gas Negara (PGN) has signed a preliminary
budget. agreement to buy natural gas from Japanese
While production cuts will help balance one developer Inpex’s Abadi field, which lies in the
side of the equation, a recovery in demand will offshore Masela block.
be essential to help prices recover, and as long The head of upstream regulator SKK Migas,
as uncertainty over when such a recovery will Dwi Soetjipto, revealed on December 3 that the
present itself remains, then other developers will two firms had signed a memorandum of under-
likely follow Chevron’s example. standing (MoU) on domestic gas supplies.

P8 www. NEWSBASE .com Week 49 09•December•2020