Page 10 - LatAmOil Week 19 2020

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It has also said it would shut down some existing wells, resulting in 125,000 bpd being taken off the market in May and 100,000 bpd in June. This will mark an increase from the 24,000 bpd that the company shut in during April.
And Pioneer Natural Resources, a lead- ing Permian Basin independent, now expects to produce on average 198,000-208,000 bpd, about 7,000 bpd below previous guidance. The company is among those that have warned there could be additional reductions in output if world crude oil prices remain lower for longer.
Even with the cuts that are being made,
producers remain concerned about spare storage capacity running out as demand remains depressed globally owing to numer- ous countries’ ongoing lockdowns. Indeed, Hess announced in its first-quarter results that it had chartered three very large crude carriers (VLCCs) to store 2mn barrels each during May, June and July of Bakken crude production that is expected to be sold in the fourth quarter.
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MEXICO
Qatar Petroleum farms into three blocks offshore Mexico
QATAR Petroleum has signed three farm-in agreementstoacquirestakesinthreeblocksoff- shore Mexico from the French oil major Total.
The deal gives the state-owned Qatari com- pany around 30% of the French company’s par- ticipating interest in Blocks 15, 33 and 34. All three blocks are located in the Bay of Campeche, in the southern part of the Gulf of Mexico.
The farm-in agreements are still subject to regulatory and other approvals by Total’s exist- ing partners, as well as the government of Mex- ico, Qatar Petroleum said in a press statement. The company also said, though, that it was satis- fied with the deal.
“We are pleased to sign these agreements, which further expand Qatar Petroleum’s foot- print in Mexico, and demonstrate our com- mitment to achieving our international growth strategy, with Latin America as a core area in our international portfolio,” said Saad Sherida Al-Kaabi, the CEO of Qatar Petroleum.
Al Kaabi, who also serves as Qatar’s Minis- ter of State for Energy Affairs, added: “We look forward to collaborating further with Total, our other partners in these blocks, and the gov- ernment of Mexico. I would like to take this
opportunity to thank the Mexican authorities andourpartnersfortheircontinuedsupport.”
The three offshore blocks are less than 90 km away from Mexico’s giant Cantarell and KMZ oilfields. They cover a total area of around 2,300 square km and lie in waters ranging from around 10 metres to 1,100 metres in depth.
The deal is in line with Total’s current divest- ment strategy. The Paris-based firm has said it aims to shed $5bn worth of assets during the 2019-2020 period. Last month, it sold a package of non-core assets that included exploration and production facilities in Brunei and marketing and services assets in Sierra Leone and Liberia. Collectively, these sales brought in $400mn.
Total hopes that further sales will help it weather the crisis caused by the slide in oil prices.
Qatar Petroleum is already active in Mexico. In 2018, it acquired a 35% stake in the Area 1 production-sharing contract (PSC) from Italy’s Eni. The licence area, which is also located in the Bay of Campeche, includes the Amoca, Mizton and Tecoalli offshore fields. These sites hold an estimated 2.1bn barrels of oil equivalent (boe), about 90% of which is oil. ™
Qatar Petroleum signed a farm-in deal with Eni for the Amoca, Mizton and Tecoalli fields in 2018 (Image: Eni)
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