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Confidence as focus returns to exploration Shell and EQT pursue new projects
Middle Eastern countries are showing an appe- Royal Dutch Shell has filed plans to start oil and
tite for resuming exploration efforts as confi- gas exploration in state waters offshore Alaska.
dence about demand recovery emerges. The proposals, which come during a challeng-
Despite recently cancelling a contract to drill ing year when many in the industry are staying
11 wells to raise heavy oil production, state- away from new offshore drilling, come after the
owned Kuwait Oil Co. (KOC) is preparing to super-major abandoned exploration in federal
launch a tender for an offshore seismic survey as waters off Alaska in 2015 following a series of
the emirate seeks to identify between six and 20 mishaps during drilling. Under the latest pro-
drill sites as part of its inaugural maritime explo- posals – which involve a different offshore region
ration effort. – Shell would form an exploration unit cover-
In Oman, while recent licensing efforts have ing 86,400 acres (350 square km) and 18 Alaska
failed, US horizontal drilling specialist EOG Beaufort Sea state offshore leases that it holds.
Resources has become the latest firm to commit Shell said it had identified several prospects
to brownfield development, signing an explora- within these leases that it believes could hold Energean is
tion and production-sharing agreement (EPSA) oil and gas accumulations. The company is pro-
for Block 36 in the south-west of the Sultanate. posing to update seismic and geological data in eyeing a return to
In the Eastern Mediterranean, Energean is 2022 and 2023, followed by exploration drilling
eyeing a return to exploration work as it pre- that would be conducted in 2024 and 2025. The exploration work
pares for production to start at the Karish field. work would be carried out in West Harrison Bay,
The London-listed company has signed gas sales which is located offshore the National Petroleum as it prepares
deals worth over $2.5bn and it hopes to add to Reserve-Alaska (NPR-A). In a separate devel- for production to
its already significant resources with nearfield opment – and one that could also considered
developments. noteworthy during a severe industry downturn start at the Karish
Meanwhile, Iraq is resuming efforts to – shale gas producer EQT is reported to be pur-
re-launch the Iraq National Oil Co. (INOC) fol- suing an acquisition in the Appalachian Basin. field offshore
lowing a failed attempt two years ago. Baghdad The company, which is the largest US gas pro-
will hope that putting full control of the sector in ducer by volume, has reportedly put in a bid for Israel.
the hands of one company will result in a stream- Chevron’s Appalachian gas assets, according to
lined approach; however, given the country’s sources familiar with the matter, who were cited
record with corruption, there are fears about the by Reuters.According to one of these sources,
consolidation of power. EQT has offered $750mn for the properties.

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 38 23•September•2020 www. NEWSBASE .com P9