Page 6 - LatAmOil Week 29 2020

LatAmOil NEWSBASE’S ROUNDUP GLOBAL (NRG) LatAmOil

NRG: A global mixed bag

The global pandemic is beginning to sort the weak from the strong, with some oil and gas projects

receiving continued support despite the downturn, while others are being labelled “wait and see”

COMMENTARY WELCOME to the latest edition of NewsBase’s In Mozambique, Total has revealed details of
Roundup Global (NRG), in which our team of a financing agreement that will allow it to cover
international editors provide you with a snap- around three quarters of the cost of an ambitious
shot of some of the key issues affecting their LNG scheme. On July 17, the French major said
regional beats. Get the NRG Oil & Gas Editor’s it had signed an agreement with 19 commer-
Picks to your inbox every week for free. Just sign cial banks and eight export credit agencies for
up here. $14.9bn in loans for the Mozambique LNG
Countries continue to struggle to adapt to the consortium.
coronavirus (COVID-19) pandemic, leading to The Total-led group has put the cost of devel-
sporadic lockdowns around the world. Govern- oping Offshore Area 1 and building a gas lique-
ments are trying to revive economic output even as faction plant capable of turning out more than
they enforce social distancing measures that ham- 12mn tonnes per year (tpy) of LNG at around
string recovery efforts. That situational diversity is $20bn.
to an extent being reflected in the global upstream, In Uganda, the Electricity Regulatory
with some producing countries reporting falling Authority (ERA) has quantified the effect of
production while some OPEC+ members look to fluctuations in crude oil markets on the power
take advantage of an easing in quota restrictions. generating sector.
The downturn has provided some investment The state agency said last week that the decline
opportunities, with Noble Energy agreeing to a in oil prices since the beginning of 2020 would
multi-billion-dollar acquisition offer from Chev- allow it to keep electricity tariffs unchanged in
ron and Royal Dutch Shell arranging a financing the third quarter of the year.
deal to allow the Mozambique LNG to go ahead. In Kenya, the Energy and Petroleum Reg-
Others, however, are focusing on improved oper- ulatory Authority (EPRA) has hiked the price
ational efficiencies and reduced spending as they of gasoline and diesel, in line with a rise in the
seek to wait out the oil market volatility. average landed cost of gasoline. The increase has
led some observers to raise concerns about the
A look at East Africa possibility that unscrupulous traders may mix
This week’s AfrOil takes a close look at develop- kerosene into diesel in order to bring their costs
ments in several East African countries. down.

P6 www. NEWSBASE .com Week 29 23•July•2020