Page 12 - AsianOil Week 44 2020

AsianOil NRG AsianOil

Global

demand for
petrochemicals is
beginning to pick

up again from
lows experienced

earlier this year
infrastructure. The review led the government to Global demand for petrochemicals is begin-
issue a new decree to supplement the existing legis- ning to pick up again from lows experienced
lation in advance of the construction and comple- earlier this year. Saudi Arabian producer SABIC
tion of new LNG plants and associated production, managed to return to profit in the third quarter,
transportation and processing infrastructure. following three quarterly losses in a row.
Meanwhile, Nigeria’s Department of Petroleum SABIC, which was recently bought by Saudi
Resources (DPR) confirmed last week that it had Aramco, attributed the latest results to the rever-
not yet wrapped up the marginal fields licensing sal of impairments, higher prices and increased
round. Paul Osu, the head of DPR’s public affairs production. While conditions have improved,
department, informed the local press that the the market is still oversupplied, though, and
process of bidding for the 57 sites involved in the this has prompted some operators to scale
heavily subscribed auctions was ongoing. He was back investment plans. Aramco and SABIC
responding to reports that DPR had already fin- announced earlier this month they were consid-
ished reviewing the bids received by September 15 ering downsizing a $20bn oil-to-chemicals plant
and would reveal the results of the contest soon. in Yanbu.
In other news, Iran has been plagued by a
If you’d like to read more about the key events shaping number of fires and explosions in recent months
Africa’s oil and gas sector then please click here for at mostly energy and military facilities. The latest
NewsBase’s AfrOil Monitor. blast occurred at a petrochemicals plant in the
country’s south-west, owned by Bandar Imam
DMEA: OMV closes petchem deal Petrochemical. These incidents are understood
Austrian oil giant OMV has closed a $4.7bn deal to be linked to the deterioration of Iranian infra-
to buy an extra 39% stake in petrochemicals structure, although there are suspicions that
group Borealis from Abu Dhabi state investor some are security-related.
Mubadala.
OMV already has a 36% interest in Borea- If you’d like to read more about the key events shaping
lis, but a controlling share will provide it with the downstream sector of Africa and the Middle East,
greater say over the Ruwais complex in the UAE, then please click here for NewsBase’s DMEA Monitor.
poised to become the world’s largest integrated
refining and petrochemicals hub. The move also EurOil: Tough quarter for majors
fits with OMV’s strategy of growing its gas and Europe’s largest oil and gas producers were
petrochemicals business while moving away spared in the third quarter from the pain they
from crude oil sales. endured in the previous three months, when the
Borealis is partnered at Ruwais with the coronavirus (COVID-19) crisis was at its height.
UAE’s state-owned ADNOC. The pair want to But their numbers were still dramatically lower
double the project’s production capacity to over than in the same period last year, and the market
9mn tonnes per year (tpy) by 2030. outlook remains bearish.

P12 www. NEWSBASE .com Week 44 05•November•2020