Page 13 - FSUOGM Week 46

FSUOGM NRG FSUOGM

comments come as welcome news for the French concern for Saudi Aramco over the past year or
company. so, having come under attack previously, while
issues with the refinery and terminal have also
If you’d like to read more about the key events shaping posed their own problems.
the global LNG sector then please click here for The news wasn’t all bad in Saudi Arabia
NewsBase’s GLNG Monitor . though, as Aramco is reported to be preparing
to kick off work to expand production capacity at
Latin America: Brazil launches Marlim sale the super-giant offshore Safaniyah field. Tender
In Brazil, the national oil company (NOC) Petro- documents have been issued to the company’s
bras has launched the teaser stage for its planned pool of contractors that are signatories of long-
sale of the Marlim cluster, a group of deepwater term agreement (LTA) contracts with Aramco,
oil and gas fields in the Campos basin. The four ahead of an anticipated award in the first quarter
fields within the group are currently producing of 2021.
about 217,000 barrels per day of crude oil and
more than 3.6mn cubic metres per day of gas, If you’d like to read more about the key events shaping
according to a company statement. the Middle East’s oil and gas sector then please click
The NOC said last week that it intended to here for NewsBase’s MEOG Monitor.
stay on as operator of the licence area but was
looking to unload half of its 100% stake. Mean- North America: Asset sale and bankruptcy
while, Houston-based Welligence Energy The shale industry has been prominent in North
Analytics described Marlim as “the biggest American oil and gas developments in recent
acquisition opportunity” in the region and spec- days, with notable news including a reported
ulated that the sale might draw bids from major asset sale and a bankruptcy.
international oil companies (IOCs). On November 13, Reuters reported that Den-
Meanwhile, Suriname’s NOC Staatsolie is ver-based Ovintiv was seeking to sell its assets
gearing up to offer eight shallow-water offshore in the Eagle Ford shale, citing several people
blocks to foreign investors. The company said familiar with the matter. The company – which
last week that it was on track to launch a new bid- was previously based in Calgary and known as
ding round on November 16. The winners of the Encana – bought its Eagle Ford assets in 2014
auctions will be able to negotiate contracts that from Freeport-McMoRan for $3.1bn. According
provide for the collection of new 3D seismic data to one of Reuters’ sources, the assets could fetch
from the blocks in the first phase of exploration. around $600-700mn. The plan to sell the assets
In Mexico, President Andres Manuel Lopez is reported to be at an early stage.
Obrador has said his government is ready to The difference in the assets’ original prices
issue the last permit needed for Sempra Energy and what they could fetch now illustrates how
to make a final investment decision (FID) on the much more challenging the operating envi-
Energía Costa Azul (ECA) project. ronment is now – when even before this year’s
He also stated, though, that the company downturn, shale drillers were already struggling.
would have to commit to helping Mexico City Some are now seeking to boost their perfor-
dispose of excess gas supplies to receive the mance and pay down debt, including through
permit. asset sales. Indeed, Ovintiv is estimated to have
debt of $7.1bn that a sale of the Eagle Ford assets
If you’d like to read more about the key events shaping could help pay down.
the Latin American oil and gas sector then please click Other shale drillers, meanwhile, have found
here for NewsBase’s LatAmOil Monitor. themselves forced into bankruptcy protection.
This has also played out in recent days once again
Mideast: Attacks and contracts in recent days, with Gulfport Energy announc-
ADNOC, the UAE’s national oil company ing that it had filed for Chapter 11 bankruptcy
(NOC), announced progress on several initia- protection.
tives last week and also struck deals on new pro- The company said on November 14 that it
jects, using the platform of the annual ADIPEC had entered into a restructuring support agree-
event to spread the word of its successes. ment, with over 95% of its revolving credit facil-
The state-run oil firm continues to supple- ity lenders and certain noteholders. The plan is
ment its core business of oil and gas production aimed at strengthening Gulfport’s balance sheet,
as it increases activities throughout the value “significantly” reducing its funded debt and low-
chain, and this strategy was exemplified by pro- ering operating costs, it stated.
gress in the upstream, midstream and services The company said that after it completes the
sectors. Meanwhile, the company is ramping up restructuring process, it will have eliminated
efforts to improve its environmental stewardship roughly $1.25bn in funded debt. Gulfport Ener-
through carbon capture, utilisation and storage gy’s debts came to about $2.5bn as of September
(CCUS). 30, according to a filing with the US Bankruptcy
In Saudi Arabia, oil facilities at Jazan, which is Court for the Southern District of Texas.
located near the border with Yemen, came under
attack from Houthis. While the attack was ulti- If you’d like to read more about the key events shaping
mately foiled, it resulted in a fire, although there the North American oil and gas sector then please click
were no casualties. Jazan has been an area of here for NewsBase’s NorthAmOil Monitor. ™

Week 46 18•November•2020 www. NEWSBASE .com P13