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AfrOil NEWSBASE’S ROUNDUP GLOBAL (NRG) AfrOil

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 The country had produced 713,300 bpd
Roundup Global (NRG), in which our team of of crude oil in the first six months of the year,
international editors provide you with a snap- upstream regulator SKK Migas said on July 17,
shot of some of the key issues affecting their noting that this was down from the 755,000 bpd
regional beats. Get the NRG Oil & Gas Editor’s that was lifted in January-June 2019. Natural gas
Picks to your inbox every week for free. Just sign production, meanwhile, tumbled from 6.67bn
up here. cubic feet (188.89mn cubic metres) per day to
Countries continue to struggle to adapt to the 5.61 bcf (158.88 mcm) per day.
coronavirus (COVID-19) pandemic, leading to “The upstream oil and gas sector nationally
sporadic lockdowns around the world. Govern- and internationally is going through extraordi-
ments are trying to revive economic output even as nary pressures due to lower prices,” SKK Migas
they enforce social distancing measures that ham- chairman Dwi Soetjipto said. “This is then
string recovery efforts. That situational diversity is followed by the COVID-19 pandemic, which
to an extent being reflected in the global upstream, impacted consumption and demand. With
with some producing countries reporting falling these pressures, we are having problems achiev-
production while some OPEC+ members look to ing targets.”
take advantage of an easing in quota restrictions. Upstream investors across the world have
The downturn has provided some investment begun rationalising their spending in order to
opportunities, with Noble Energy agreeing to a survive the industry downturn, a development
multi-billion-dollar acquisition offer from Chev- that the agency has acknowledged by lowering
ron and Royal Dutch Shell arranging a financing its full-year upstream investment target from
deal to allow the Mozambique LNG to go ahead. $13.83bn to $11.6bn.
Others, however, are focusing on improved oper- Royal Dutch Shell has already notified SKK
ational efficiencies and reduced spending as they Migas of its desire to exit the giant Masela gas
seek to wait out the oil market volatility. block, which will underpin the Abadi liquefied
natural gas (LNG) terminal development. While
Asia: Indonesia’s production woes the regulator told the media Shell, alongside
Indonesia’s oil and gas production has fallen in partner Inpex, would have to continue develop-
the first half of the year, driven both by weaker ing the project, it acknowledged that the project
domestic energy demand and natural declines would likely need to be recalculated and that it
at mature fields. had become “a wait-and-see situation”.

P6 www. NEWSBASE .com Week 29 22•July•2020