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The report in the Nikkei suggested that the San Nicolas refinery’s tanks to store crude oil and
money would support Total’s Mozambique petroleum products. It has not identified any of
LNG project, in which Mitsui & Co. and JOG- the bidders, but it hopes to sign a lease contract
MEC together hold 20%. with the winner of the tender by August 1.
Japan’s confirmation of the involvement of Meanwhile, KBR has agreed to supply
its commercial banks as well as the state-owned Uruguay’s state oil company Administracion
JBIC is a good sign that Total will be able to Nacional de Combustibles Alcohol y Pórt-
secure all its financing by the end of 2020. land (ANCAP) with technology for a refinery
In June, Total said it had reached an agree- upgrade project. Under a new contract with
ment with a group that included 20 lenders for ANCAP, the US-based oilfield services giant will
the first phase of senior debt funding of $14.4bn. help Uruguay’s NOC upgrade the 50,000 bpd
Other banks named included Standard Bank Eduardo Acevedo Vázquez refining complex at
Group, Societe Generale and Rand Merchant La Teja. KBR’s technology will allow the plant to
Bank. produce more high-value light fuels.
As well as Total’s $20bn Mozambique LNG In Mexico, independent fuel importers have
project, which aims to produce 12mn tpy of complained that bureaucratic procedures are
LNG, ExxonMobil is developing the 7.6mn becoming more of a burden. Firms not affiliated
tpy Rovuma project in the African country. with Pemex, the national oil company (NOC),
However, only Total is close to FID, with Exxon say that customs inspectors are throwing up
delaying any decision until 2021. unnecessary roadblocks to shipments of refined
Even though Japan’s LNG imports fell by fuels, especially diesel.
8.8% y/y in April to 5.13mn tonnes, because of
the impact of COVID-19, LNG imports are of If you’d like to read more about the key events shaping
long-term strategic importance to the country’s the Latin American oil and gas sector then please click
energy sector. here for NewsBase’s LatAmOil Monitor .

Downstream updates in Latin America OPEC+ compliance and some movement
Officials in Aruba have confirmed that the search In the Middle East, there were signs that state-
for a new operator for the San Nicolas refinery, a owned producers are starting to feel more
235,000 bpd plant formerly owned by Valero, is confident. Saudi Arabia and Kuwait resumed
underway. Representatives of the Aruban gov- production from their shared Al-Khafji oilfield
ernment said last week that they had teamed up in the Partitioned Neutral Zone (PNZ). The asset
with state-owned Refineria di Aruba NV (RdA) was shut in on June 1 under the banner of efforts
to invite qualified bidders to participate in a two- to adhere to OPEC+ quotas; however, the recent
tiered request for expression of interest (REOI). history of the PNZ has been somewhat colourful.
Potential investors have been asked to respond At capacity, Al-Khafji and the onshore Wafra
by July 17, they said. oilfield can produce around 550,000 bpd; how-
Aruba’s government is also mulling offers ever, the fields were shut in because of disagree-
from three companies interested in using the ments between the two governments in 2014 and

Week 27 10•July•2020 www. NEWSBASE .com P7