Page 9 - AsianOil Week 05 2021
P. 9
AsianOil SOUTHEAST ASIA AsianOil
Pan Orient reports Thai reserve boost
PROJECTS & CANADIAN-LISTED independent Pan
COMPANIES Orient has announced that the proven (1P)
oil reserves of its Thai subsidiary more than
doubled last year, following an independent
reserves evaluation.
The company said on February 1 that 1P
oil reserves at onshore Concession L53/48,
which is operated by Pan Orient Energy (Siam),
climbed by 130% in 2020 to reach 2.84mn bar-
rels as at December 31. Proven plus probable
(2P) reserves increased by 30% year on year to L53AA is the most recent oilfield discovery,
4.75mn, while proven plus probable plus possi- having being found in the first quarter of 2020,
ble (3P) reserves amounted to 6.84mn barrels. and added 6,001 barrels of oil sales from its
Pan Orient owns a 50.01% stake in Pan Ori- 90-day production test.
ent Energy (Siam). Commenting on the reserve report, Pan
Sproule International conducted the independ- Orient’s president and CEO Jeff Chisholm
ent reserves evaluation, with Pan Orient noting said: “While the oil volumes are strong, the
that a 15% increase in the block’s oil sales in 2020 to proven and probable net present value after
2,426 barrels per day had contributed to the revised tax (discounted at 10%) was down 11% y/y
evaluation. Of this figure, the block’s L53DD field as a result of the substantially lower (-17%)
delivered 2,005 bpd, with the remainder coming average oil price forecast at year-end 2020 ver-
from the L53G, L53A, L53D, L53B, L53AA South sus year-end 2019, a reflection of the current
and L53AA fields. The L53DD field had been uncertainty in the global oil markets.”
assigned 1P reserves of 2.32mn barrels as well as 2P Concession L53/48’s reserves are located in
reserves of 3.47mn barrels. conventional sandstone reservoirs.
EAST ASIA
Japan’s trading houses
pull back from upstream
FINANCE & JAPAN’S trading houses have begun pulling equivalent per day (boepd), the country now
INVESTMENT back from upstream projects amid intensify- appears to be losing some of its energy security
ing emission reduction targets and weakening driven need to secure international resources.
domestic oil and gas demand. That is the claim Wood Mackenzie said trading houses were
by global energy consultancy Wood Mackenzie beginning to question their tendency to hold
in a new report published on February 2, which small equity stakes in large, long-life oil and gas
cites the various divestment strategies by Mitsui, projects. It noted: “This [tendency] has created
Sumitomo, Sojitz and Marubeni. portfolios with longevity, but little control or
Wood Mackenzie said Mitsui had closed the operator experience and lacking exposure to
sale of its 35% stake in Beach Energy’s BassGas key global growth themes, such as deepwater
project off the coast of Australia’s southern state and unconventionals.”
of Victoria last week. Sumitomo has said it will Between the trading houses diversifying
avoid new oil projects, Sojitz intends to shift its their business interests and Japan’s recently
focus away from the upstream and Marubeni is announced pledge to reach net-zero emissions
currently looking to divest some of its portfolio by 2050, making the case for new upstream
of exploration and production assets. investments has become tougher for many.
The consultancy suggested that the shift in Wood Mackenzie said: “The response is an
focus could see Japanese trading houses move increased focus on upstream portfolio rationali-
to “de-risk their upstream portfolios” this year, sation, and we expect the divestment of non-op-
noting that the move made sense given declining erated stakes in smaller oil and other non-core
domestic demand for oil and gas. assets to gather pace. For several companies,
After Japanese companies built a more beyond existing positions in LNG that are likely
than $70bn upstream portfolio, which is capa- to remain intact, everything else may go. This is
ble of producing around 1.6mn barrels of oil the sharp end of the energy transition.”
Week 05 04•February•2021 www. NEWSBASE .com P9
