Page 13 - AsianOil Week 35

AsianOil NEWSBASE’S ROUNDUP GLOBAL (NRG) AsianOil

Risks to stability

Oil prices have changed very little in recent weeks, disappointing

those that had hoped for a late-summer rebound. And prices could

falter if fears of a second global COVID-19 wave are realised

COMMENTARY WELCOME the latest edition of NewsBase’s Africa: South Sudan looks to 2027
Roundup Global (NRG), in which our team of South Sudan’s oil industry has suffered some
international editors provide you with a snap- setbacks this year. Fallout from the coronavi-
shot of some of the key issues affecting their rus (COVID-19) pandemic has caused crude
regional beats. Get the NRG Oil & Gas Editor’s production levels to remain at 170,000-180,000
Picks to your inbox every week for free. Just sign barrels per day (bpd), falling short of the target
up here. level of 200,000 bpd. Nevertheless, the national
Oil prices have remained relatively stable oil company (NOC) Nilepet is looking ahead
over the past week, despite hurricanes that and preparing for the time when it will assume
temporarily took some 2mn barrels per day operatorship of fields now under the control of
(bpd) of oil supply in the US Gulf of Mexico foreign companies.
offline. Brent remains at just above the $45 The shift looks set to begin in 2027, when the
per barrel mark, having seen very little change licence granted to China National Petroleum
over the last month. This has disappointed Corp. (CNPC) and other investors in the Dar
those that had hoped for a late-summer Petroleum Operating Co. (DPOC) consortium
rebound. is due to expire. DPOC, which is developing
Prices have also been supported by news in Blocks 3 and 7 in the Melut Basin, accounts
Libya, where the Libyan National Army (LNA) for more than half of South Sudan’s current oil
has rejected a ceasefire with the government. output.
This means the country’s oilfields will remain Meanwhile, Total (France) and its partners
shut-in for longer. are also optimistic about South Africa’s offshore
Fuel demand remains stuck below pre-coro- zone. The group has spudded its first exploration
navirus (COVID-19) levels, even though low well at Luiperd, a section of the Block 11B/12B
prices have encouraged consumption. Mean- licence area. Its new well, known as Luiperd-1X,
while, countries across the world are bracing for lies along the same sequence as Brulpadda-1X,
a second wave of the virus, which risks derailing where large hydrocarbon reserves were discov-
the market’s recovery. A surge in cases in the ered last year.
last few days in Spain and some other European Other international majors are taking a
countries is disconcerting. different course, however. Equinor (Norway)

Week 35 03•September•2020 www. NEWSBASE .com P13