Page 7 - FSUOGM Week 27

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petrochemicals discretely abroad than oil, amid last week completed a $25bn asset swap that
the US’ ongoing sanctions regime. began in 2018 – one of the largest deals in the his-
Tehran has a reputation for making bold and tory of German industry. Under the final stage of
unrealistic predictions. But some progress is the transaction, RWE received E.ON’s renewable
already being seen, with authorities announcing and gas storage assets. RWE is investing heav-
last week the launch of the 140,000 tpy Mian- ily in clean energy, with $5.6bn earmarked for
doab petrochemicals plant. A new hexane-pro- new projects in Europe, North America and the
ducing unit was also brought on stream at the Asia-Pacific region, with $1.1bn set aside for
Imam Khomeini oil refinery. German investments.
South Africa’s Sasol is continuing its divest-
ment drive, striking a deal last week to sell its If you’d like to read more about the key events shaping
10% share in a Chevron-operated gas-to-liquids Europe’s oil and gas sector then please click here for
(GTL) plant in Mozambique. It is also seeking NewsBase’s EurOil Monitor .
a buyer for its share of a pipeline that brings
Mozambican gas to South Africa. FSU: Nord Stream 2 battles on
Like many South African state-owned enter- Russia’s embattled Nord Stream 2 project cleared
prises, Sasol is up to its eyes in debt, meaning the a key hurdle this week, with Danish regulators
COVID-19 crisis has left it in a difficult position revising the construction permit they issued last
financially. It has responded by fast-tracking its year to allow Gazprom to use anchored vessels
divestment plans. to finish the remaining 120 km of the pipeline’s
offshore section. It is understood that Gazprom
If you’d like to read more about the key events shaping intends to use two Russian vessels stationed at
the downstream sector of Africa and the Middle East, the German port of Mukran to finish the pipe-
then please click here for NewsBase’s DMEA Monitor . line, and anchoring could be necessary.
While this is a clear step forward for Nord
Upstream antipathy in Europe Stream 2, now running over a year behind sched-
Times are changing, and more and more coun- ule, the threat of stricter US sanctions continues
tries in Europe are clamping down on upstream to hang over the project. A bill announcing new
development. Ireland’s new coalition govern- sanctions is making its way through US Con-
ment has pledged to outlaw new licences for gas gress, but both Germany and the EU have said
exploration, less than a year after banning new they will consider countering US actions with
oil licences. This marks a shift in Irish policy, as measures of their own.
the former government last year had defended Russian producers are banding together to
gas as a “transition fuel.” share technology and expertise to develop hard-
As the energy transition picks up pace, com- to-recover oil, which is anticipated to account
panies are having to make drastic changes to for an increasing share of the country’s output
their outlooks for oil and gas prices, and some over the coming decades. Gazprom Neft has just
early-stage upstream projects previously seen signed a deal with Zarubezhneft on joint extrac-
as safe bets now risk becoming worthless. Royal tion of hard-to-recover reserves in Western Sibe-
Dutch Shell has followed BP in announcing up ria, less than a week after announcing a similar
to $22bn in impairments after cutting its price partnership with Lukoil and Tatneft for projects
forecasts. The charges relate to the major’s inte- in the Volga-Urals area.
grated gas business, namely its LNG operations Elsewhere, Uzbekistan is pushing ahead with
in Australia, and upstream activities in Brazil the revamp of its refining sector, hiring South
and US shale basins. Korea’s SK Engineering & Construction to
It marks an end to an era for the German undertake front-end engineering design (FEED)
power sector, after energy giants E.ON and RWE work for a $500mn upgrade of the Bukhara oil

Ireland’s

new coalition
government has
pledged to outlaw

new licences for
gas exploration.

Week 27 08•July•2020 www. NEWSBASE .com P7