Page 18 - AsianOil Week 36

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service payments from PdVSA. So far, neither If you’d like to read more about the key events shaping
the NOC nor the Venezuelan government has the Middle East’s oil and gas sector then please click
responded to the lawsuit. here for NewsBase’s MEOG Monitor.

If you’d like to read more about the key events shaping Quarterly losses mount in North America
the Latin American oil and gas sector then please click North America’s oil and gas industry continues to
here for NewsBase’s LatAmOil Monitor. see mixed signals, with weekly US rig counts creep-
ing up for only the second time since early March,
Mideast: Export facilities come into focus but crude prices declining. The West Texas Inter-
Export infrastructure came into sharp focus mediate (WTI) benchmark dropped below $40 per
this week as news emerged of talks to extend the barrel in recent days, which has been attributed to a
planned oil pipeline between Iraq and Jordan number of domestic factors, as well as international
to Egypt. The discussions also involve collabo- trends as Saudi Arabia announced that it would cut
ration in the field of electricity, and follow talks prices for its October sales. Iran is seeking
about the grid interconnectivity among several While some North American producers are
of the region’s countries. better positioned to ride out the storm than others, to expand its
For Iraq, the move to increase westward oil concerns remain about the ability of small compa-
flows will ease dependency on Gulf terminals. nies in particular to survive. Last week, Western capabilities
These facilities handle the vast majority of the Canadian firms that produce around 20,000 barrels
country’s exports, including no less than 86% of per day (bpd) were described as “an endangered ahead of a
all August shipments. Meanwhile, Amman and species” by the head of a private equity firm. Such potential easing
Baghdad have agreed to resume trucked crude private equity players are among those seeking to
exports in response to the oil price drop and the capitalise on the downturn by buying up struggling of sanctions
coronavirus (COVID-19) pandemic. companies at bargain prices, and more acquisitions
In Iran, authorities have said that the Jask are expected in the coming weeks and months.
oil terminal project will be ready for operation In the US, meanwhile, the upcoming presiden-
by the end of March 2021, enabling the Islamic tial election is generating further uncertainty in an
Republic to export crude without needing to operating environment already contending with
traverse the Strait of Hormuz. Iran has period- numerous unknowns. Democratic nominee Joe
ically threatened to block the s trait if its crude Biden clarified his position on hydraulic fractur-
exports are unacceptably harmed by US sanc- ing last week, saying he would not seek to ban the
tions, while Washington has said such a move practice if he were to be elected to the presidency
would require a response. in November. Biden’s comments came in response
As Iran seeks to expand its capabilities ahead to allegations by US President Donald Trump that
of a potential easing of sanctions, local firm the Democratic nominee would indeed seek to
Petroleum Engineering and Development Co. ban fracking. Biden made the assurances during a
(PEDEC) announced that it had increased oil speech in the swing state of Pennsylvania, which is
production capacity at the South Yaran oilfield a leading shale gas producer. Biden’s climate change
by 5,000 barrels per day (bpd) following the plan calls for ending new oil and gas leases on pub-
installation of a new mobile oil separator (MOS). lic land, but it would not ban drilling or prohibit any
The head of the South Yaran project emphasised specific method for producing fossil fuels.
the importance of the MOS being locally built,
noting that it was the first time a domestically If you’d like to read more about the key events shaping
produced MOS had been installed in the West the North American oil and gas sector then please click
Karoun oil region. here for NewsBase’s NorthAmOil Monitor.™

P18 www. NEWSBASE .com Week 36 10•September•2020