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And even during this period of low demand, would have to pay as much as $1.0-1.5bn to do
some LNG markets are growing rapidly. For so. According to acting general manager Agnes
example, new data released by Turkey’s energy Moensi-Sokowikromo, Staatsolie may have
regulator last week showed that LNG out- difficulty raising such a large sum at this time,
stripped the country’s gas pipeline imports in especially since Suriname’s credit ratings were
May and that LNG shipments that month had recently downgraded.
surged by 205.5%. Meanwhile, Malaysia’s Petronas has arranged
Chinese LNG demand is also expected to be to use the Maersk Developer, a rig owned by
strong throughout the remainder of the year, Maersk Drilling (Denmark), for a drilling pro-
as the country leads efforts to recover from the ject at Block 52 offshore Suriname.
impact of COVID-19. However, there have also The Malaysian company intends to use the
been warnings that Chinese buyers of the super- rig to sink one well at the Sloanea section of the
chilled fuel will likely seek lower prices. This is block and will probably begin drilling in the
not surprising, given the oversupplied market, fourth quarter of this year. Equity in Block 52 is
but will not be welcomed by exporters seeking to split 50:50 between Petronas and ExxonMobil
recover from the drop in LNG demand. (US), which is already a major player in neigh-
One area where LNG has the potential to bouring Guyana’s offshore zone.
expand is its use as a marine fuel. Last week, Gaz- In other news, the Energía Costa Azul LNG
prom Neft became the first Russian company to project is still on hold. California-based Sem-
join the Society for Gas Marine Fuel (SGMF), a pra Energy and its Mexican subsidiary IEnova
group that seeks to promote the fuelling of ships had hoped to take a final investment decision
with LNG. (FID) on the scheme by the end of June but are
The company has added motivation to do so, still waiting for Mexico’s government to issue an
as the decision by Russia and its OPEC+ allies export permit. Company executives say they are
to restrict oil supply will prevent Gazprom Neft still optimistic about pushing the project for-
from advancing new oil projects. Gazprom Neft’s ward soon, even though Mexican government
parent company, Gazprom, also wants to move bureaucracies are operating more slowly because
into LNG bunkering. Other companies around of the COVID-19 pandemic.
the world may follow, as they seek areas where
there is scope for demand to grow. If you’d like to read more about the key events shaping
the Latin American oil and gas sector then please click
If you’d like to read more about the key events shaping here for NewsBase’s LatAmOil Monitor.
the global LNG sector then please click here for
NewsBase’s GLNG Monitor. Mideast: Gulf OSPs to drop as output rises
Oil production from OPEC member countries
Latin America: Another look at Suriname has increased by 1mn barrels per day (bpd), as
This week’s issue of LatAmOil takes another look producers in the Gulf are stepping back from
at Suriname, which recently reported a new oil their extra voluntary output cuts.
find at Block 58 in the offshore zone. As production has increased, there is grow-
Staatsolie, the national oil company (NOC), ing speculation that Saudi Aramco and ADNOC
has shown strong interest in joining Apache will cut their official selling prices (OSPs) for
(US) and Total (France) in the development crude cargoes to Asia loading in September as
of Block 58. The NOC does have the right to they seek to continue efforts to increase market
acquire a stake of up to 20% in the project, but it share.

Week 31 05•August•2020 www. NEWSBASE .com P9