Page 6 - GLNG Week 34

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and Habib Rahi Limestone formations of Eocene Ukraine. This disruption was averted as Moscow
age. Testing did not, however, yield commercial and Kyiv were able to agree an 11th-hour deal
quantities of gas from both formations.” covering continued transit in 2020. Besides the
OGDCL owns 70% of the block, while Jura pandemic, milder weather earlier this year also
holds 13.5%, IPR Transoil has 11.5% and Gov- weighed down on demand.
ernment Holdings Private owns 5%. UK producer Premier Oil unveiled a plan
last week to settle some of its debts and alle-
If you’d like to read more about the key events shaping viate shareholder concerns about the state of
Asia’s oil and gas sector then please click here for its finances. The company is seeking to raise
NewsBase’s AsianOil Monitor. $530mn from its investors as part of a $2.9bn
refinancing move. It also wants to raise a further
Europe continues stocking up on gas $230mn to fund its takeover of some of BP’s oil-
The US has moved closer to imposing tougher fields in the North Sea.
sanctions on Russia’s embattled Nord Stream
2 project. US Secretary of State Mike Pompeo If you’d like to read more about the key events shaping
announced last week that his department would Europe’s oil and gas sector then please click here for
remove an exemption protecting the pipeline NewsBase’s EurOil Monitor.
from a US sanctions package introduced in 2017.
At the same time, another sanctions bill is mak- FSU: Rosneft returns to the Arctic offshore
ing its way through US Congress. Given low prices and the unpredictable market
Europe’s gas storage facilities were almost outlook, it is somewhat surprising that Rosneft
90% full on August 18, data published by Gas has chosen this moment to resume costly drilling
Infrastructure Europe (GIE) shows, marking an in the offshore Arctic.
unusual high for the time of year. In a meeting with Russian President Vladimir
Europe has seen an unprecedented build-up Putin, Rosneft CEO Igor Sechin revealed last
in gas storage volumes over the past year, and week that the company was drilling two more
the impact of the coronavirus (COVID-19) pan- wells in the Kara Sea. These sites are not far from
demic on demand is just one reason. The con- where Rosneft and ExxonMobil made the 2014
tinent’s LNG imports soared in 2019, as higher Pobeda oil discovery, estimated to exceed 900mn
production capacity in the US and elsewhere barrels in size.
drove down prices. This encouraged increased ExxonMobil was forced to exit the project
consumption, but also gave traders an incentive because of US sanctions against Russia, and all
to store more volumes. work was halted. Rosneft’s decision to resume
Towards the end of last year companies drilling on the shelf is oddly timed. Like its peers
also expanded their stocks in anticipation of a across the world, the company has been forced
potential disruption to Russian gas supplies via to make deep spending cuts in response to the

P6 www. NEWSBASE .com Week 34 28•August•2020