Page 9 - FSUOGM Week 27

FSUOGM NRG FSUOGM

produce more high-value light fuels.
In Mexico, independent fuel importers have
complained that bureaucratic procedures are
becoming more of a burden. Firms not affiliated
with Pemex, the national oil company (NOC),
say that customs inspectors are throwing up
unnecessary roadblocks to shipments of refined
fuels, especially diesel.

If you’d like to read more about the key events shaping
the Latin American oil and gas sector then please click
here for NewsBase’s LatAmOil Monitor .

OPEC+ compliance and some movement
In the Middle East, there were signs that state-
owned producers are starting to feel more
confident. Saudi Arabia and Kuwait resumed
production from their shared Al-Khafji oilfield
in the Partitioned Neutral Zone (PNZ). The asset Facing obstacles in North America
was shut in on June 1 under the banner of efforts Several North American entities have reported
to adhere to OPEC+ quotas; however, the recent setbacks and disappointments over the last
history of the PNZ has been somewhat colourful. week.
At capacity, Al-Khafji and the onshore Wafra ExxonMobil is set to post two consecutive
oilfield can produce around 550,000 bpd; how- quarterly losses for the first time in its history,
ever, the fields were shut in because of disagree- thanks to the coronavirus pandemic and the
ments between the two governments in 2014 and Russian-Saudi oil price war. According to a
then in 2015. regulatory filing submitted last week, the US
Output resumed at both fields in Decem- super-major’s upstream oil and gas unit sus-
ber 2019, increasing to 260,000 bpd by April, tained a loss of $3.1bn in the second quarter of
with production of 130,000 bpd from each 2020, while its downstream refining unit lost
asset. Wafra has remained in production since nearly $1bn. The company is due to release a full
December. report on its quarterly results at the end of this
Plans are in place to raise output capacity month.
at the PNZ to 575,000 bpd, with an increase Dominion Energy and Duke Energy have
coming in the form of a 25,000 bpd ramp-up at decided against going forward with the con-
al-Khafji, which is currently capable of 300,000 struction of the Atlantic Coast natural gas
bpd. pipeline. Even though the partners scored an
Meanwhile in Oman, signs of a rebound in important victory in the US Supreme Court last
exploration came by way of Sweden’s firm Tethys month, they have concluded that the risk of fur-
Oil signing an exploration and production-shar- ther litigation is too high to ensure the project’s
ing agreement (EPSA) for the Sultanate’s onshore viability.
Block 58. Also on the legal front, a US district court
The company has a growing presence in has ordered Energy Transfer to shut down and
Oman and has taken advantage of the downturn empty its 570,000 bpd Dakota Access oil pipe-
to increase its asset base. However, the move is line (DAPL) within 30 days. Under this ruling,
unlikely to be echoed throughout the region, the company must suspend operations pending
with only Israel holding an active 2020 bidding the completion of a new environmental impact
round. report, which is likely to take more than a year
In the UAE, though, Abu Dhabi National Oil to complete.
Co. (ADNOC) has taken advantage of the dip Meanwhile in Canada, the Newfoundland
in demand to take the giant Bab oilfield offline & Labrador Oil & Gas Industries Association
for scheduled maintenance, with production to (NOIA) has urged Seamus O’Regan, the coun-
remain shut-in until late July. try’s natural resources minister, to uphold his
Prior to the shutdown, production from Bab recent pledges to assist offshore oil and gas oper-
was running above 370,000 bpd of light, sour ators. “We need immediate action to get people
Murban crude, which has an API gravity of back to work, to remain globally competitive
40.5°. Bab has a capacity of 420,000 bpd. and to retain the investment we have previously
The move also aligns well with the UAE’s attracted to our industry,” said Karen Winsor, the
OPEC+ commitments, with July the final month chairperson of NOIA’s board. “We need a show
before the reductions are eased. of faith in our future and we need it immediately.”

If you’d like to read more about the key events shaping If you’d like to read more about the key events shaping
the Middle East’s oil and gas sector then please click the North American oil and gas sector then please click
here for NewsBase’s MEOG Monitor . here for NewsBase’s NorthAmOil Monitor .™

Week 27 08•July•2020 www. NEWSBASE .com P9