Page 8 - AsianOil Week 35
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around 43% of its 13,000 boepd of second-quar- and continuing progress with our Ground-
ter net production from the field was condensate. birch tight gas asset in British Columbia, which
Neither side will incur penalties or fees from will provide equity gas for our interest in LNG
the split. Canada.”
“Full ownership and operatorship of the Encana rebranded itself at the start of the year
Duvernay asset is a significant step in the evolu- as part of a wider corporate reorganisation that
tion of PCC’s business,” said PCC president and saw the independent re-domicile in the US.
CEO Jilin Fu in a statement. “It is also a major Ovintiv CEO Doug Suttles said at the time
development in our upstream capabilities, which that the move would allow his company to tap
include increasing production at our MacKay into larger pools of investment in US index funds
River commercial project in northern Alberta, and passively managed accounts.
Kazakhstan slashes oil shipments to China
PIPELINES & KAZAKHSTAN cut oil shipments to China were on the rise and one of Kazakhstan’s three refin-
TRANSPORT to 12,100 tonnes (2,860 barrels per day) in July eries was on maintenance, the traders said.
and to 10,000 tonnes (2,365 bpd) in August (as China’s oil imports set an all-time record of
of August 28), from 98,865 tonnes (24,160 bpd) 12.99mn bpd, before retreating to 12.13mn bpd
in June. in June. The country’s imports in August are
The sharp decline comes as Kazakhstan anticipated to reach 12.11mn bpd in August,
reduced output under the OPEC+ global produc- according to Refinitiv Oil Research data cited by
ers’ pact and owing to low profitability compared Reuters this week.
with westward shipments via Russia, according to As noted by the newswire’s source above,
four industry sources cited by Reuters. however, Chinese imports are seen as more
“Exports to China are $5-25 less profitable opportunistic than indicative of a complete
per tonne (in August) than through (the Rus- recovery in demand. As such, industry observ-
sian port of) Ust-Luga,” one source said. Another ers have begun to question how much longer the
source noted that shipments via the Caspian Asian giant can continue to prop up the global
Pipeline Consortium were the most profitable oil market, given that onshore and floating oil
ones at the moment. storage is filling up.
“All the storage facilities in China are full, they Refinitiv has estimated that between tank-
stocked up in April and May when prices fell,” a ers floating offshore both China and Singapore,
source said. Chinese buyers have more than 107.5mn bar-
The Chinese route was profitable during the rels of crude either waiting to be offloaded or in
second quarter when demand and prices in China route.
P8 www. NEWSBASE .com Week 35 03•September•2020
