Page 7 - GLNG Week 34

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coronavirus (COVID-19) pandemic and result-
ing price collapse.
Russia’s offshore Arctic zone is thought to
contain many billions of barrels of oil, along with
trillions of cubic metres of gas. But the region’s
remoteness and harsh operational conditions make
development extremely costly. The well that found
Pobeda cost around $700mn, making it the most
expensive ever drilled in modern Russia.
There are also doubts about whether Rosneft
has the expertise to carry out Arctic offshore
drilling effectively without a foreign partner such
as ExxonMobil.
In other news, Gazprom Neft has reported its
second-quarter results, with both EBITDA and
net income arriving in line with expectations.
But investors were disappointed by the compa-
ny’s negative free cash flow (FCF) of $1.1bn.
Gazprom Neft has also announced the launch
of the next phase of the Novoportovskoye oilfield
in the Arctic – one of its main greenfield projects.
The company is now drilling for oil at the field’s
northern section, in order to keep output stable.
Novoportovskoye is expected to flow 160,000
barrels per day (bpd) of crude in 2021.
If you’d like to read more about the key events shaping
the former Soviet Union’s oil and gas sector then please
click here for NewsBase’s FSU Monitor.

GLNG: Setbacks for Chevron, Sempra
LNG projects in different parts of the world –
and at different stages of development – have
suffered setbacks in recent days.
Significantly, Chevron has confirmed spec-
ulation that it will need to shut Trains 1 and 3
at its Gorgon LNG project in Australia in order proposed Energia Costa Azul project in Mexico.
to carry out maintenance. This comes as Train According to an August 21 Reuters report that
2 remains offline for repairs after weld quality cited sources familiar with the matter, the Mex-
issues were found on propane heat exchangers, ican government has asked Sempra’s unit in the
prompting fears that the other trains may also be country, IEnova, to commit to another facility
affected. (See: Chevron to avoid Gorgon closure in the Port of Topolobampo before it grants the
with staggered shutdown of trains, page 9) permit for Energia Costa Azul. (See: Mexico says
However, the 15.6mn tonne per year (tpy) Sempra must build second gas export facility to
Gorgon project will not need to be taken offline secure permit, page 13)
altogether at any point, after Western Australia’s Media have been unable to confirm any
Department of Mines, Industry Regulation and further details, but it is believed that the Ener-
Safety approved Chevron’s plan to stagger the gia Costa Azul, which would be the first export
shutdown of the trains. Under this plan, Chev- permit of its kind for a private company in Mex-
ron will shut Train 1 in early October and Train ico, could still be issued promptly. Nonetheless,
3 in January 2021 for inspections and any neces- the report suggests that the path forward is not
sary maintenance. The super-major said Train 2 entirely straightforward for Sempra.
remained on track to restart in early September.
According to two Singapore-based LNG Latin America: Corruption considerations
traders cited by Reuters, Chevron has informed Questions about corruption have come to the
Gorgon customers that it can supply them from forefront in Latin America’s oil and gas sector
the Wheatstone and North West Shelf LNG over the past week.
plants instead while work on the trains is being In Mexico, Emilio Lozoya, the former head
carried out. of national oil company (NOC) Pemex, has
In Central America, meanwhile, Sempra claimed that three former Mexican presidents
Energy may be facing additional hurdles as and various lawmakers and aides may have been
it attempts to obtain an export permit for its involved in vote-fixing, bribes and other illegal

Week 34 28•August•2020 www. NEWSBASE .com P7