Page 14 - EurOil Week 33

EurOil NRG EurOil

sign of reversing the decline in its crude output
and may see production drop from the current
level of 100,000-200,000 bpd to near zero.
As recently as 2019, Venezuelan yields still
stood at 650,000 bpd. However, US sanctions,
deteriorating infrastructure and the fall in
global energy demand have wreaked havoc on
the sector.
Meanwhile, Venezuela’s National Assembly,
which is dominated by parties that oppose the
socialist government led by President Nico-
las Maduro, has launched an investigation of a
recent oil spill off the coast of Falcón state. MPs Forward momentum on both projects and
have requested information from the national diversification in North America
oil company (NOC) PdVSA and other state-run Differing approaches to the energy transition
institutions for details on the incident, which mean that there is momentum on both oil pro-
appears to be related to maintenance work at the jects and diversification efforts among North
El Palito refinery. Opposition legislators say the American oil and gas companies.
spill happened because heavy rainfall caused the On August 14, the US government approved
146,000 bpd plant’s oxidation ponds to overflow. ConocoPhillips’ Willow project in the National
In other news, Argentina’s YPF has reported Petroleum Reserve-Alaska (NPR-A). The US
that its financial and operational performance Bureau of Land Management (BLM) published a
suffered in the second quarter of 2020 as a result final Environmental Impact Statement (EIS) for
of the coronavirus (COVID-19) pandemic. The the project, saying it could produce more than
state-owned firm said it had incurred a loss of 160,000 barrels per day (bpd) of oil over the next
ARS85bn ($1.17bn) in the April-June period, 30 years.
down by 154.8% on the loss of ARS33.36bn If constructed, Willow will be the west-
($458.7mn) reported in the same period of 2019. ernmost development on the North Slope. Its
approval comes as the administration of US Pres-
If you’d like to read more about the key events shaping ident Donald Trump continues its broader push
the Latin American oil and gas sector then please click to spur oil development in Alaska. Within days
here for NewsBase’s LatAmOil Monitor. of Willow being authorised, the US Department
of the Interior (DoI) approved a sweeping plan
Iranian contract awards continue as output to allow oil leasing across the Arctic National
increases Wildlife Refuge’s (ANWR) entire 1.56mn acre
Iran this week announced the award of 13 con- (6,313 square km) coastal plain. The area has
tracts with 14 local companies for field develop- been off-limits to oil drilling for decades, and
ment projects that are expected to increase the authorisation of drilling there will run into high
country’s crude production capacity by more levels of opposition from environmental and
than 180,000 barrels per day once complete. conservation groups.
A signing ceremony was held on August But despite strong support for oil develop-
17, during which the National Iranian Oil Co. ment from the Trump administration, a number
(NIOC) said that the deals were for the second of major producers are diversifying beyond oil,
phase of a plan to maintain and increase produc- likely encouraged by ongoing crude price vola-
tion capacity. Of the 13 projects for which con- tility. A prominent example of this recently has
tracts were signed, 10 have already implemented been Chevron, which said last week that it was
their first phase, reaching 25% completion. investing in nuclear fusion start-up Zap Energy.
Meanwhile, three new wells were completed The super-major joins Italy’s Eni and Norway’s
at South Pars Phase 22, raising output from the Equinor in backing nuclear fusion start-ups to
overall SP 22-24 project by 200mn cubic feet reduce their carbon footprint.
(5.7mn cubic metres) per day. SP22-24 had been The announcement came shortly after Chev-
earmarked to produce a combined 18.6bn cubic ron also unveiled a plan to build 500 megawatts
metres per year by March 20, 2019, but a lack of (MW) of renewable energy plants to power
foreign currency after the US withdrawal from some of its operations in the US’ Permian Basin
the nuclear deal derailed these ambitions. and overseas. The plants will be developed
M&A activity continued to rebound as the under a four-year agreement with Algonquin
UAE’s Senaat and other minority shareholders of Power and Utilities, and appear to mark a new
the National Petroleum Construction Co. (NPCC) level of engagement with renewables for Chev-
submitted a bid to merge the firm with the National ron. At the same time, though, the super-major
Marine Dredging Co. (NMDC). The deal would continues to move forward with oil projects,
create a new regional EPC major, which already with the Wall Street Journal reporting on August
has an established footprint in MENA and South 17 that Chevron is in talks over an investment in
Asia and a combined revenue of $2.4bn. an Iraqi oilfield.

If you’d like to read more about the key events shaping If you’d like to read more about the key events shaping
the Middle East oil and gas sector then please click the North American oil and gas sector then please click
here for NewsBase’s MEOG Monitor . here for NewsBase’s NorthAmOil Monitor.™

P14 www. NEWSBASE .com Week 33 20•August•2020