Page 13 - AsianOil Week 44 2020

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Demand and prices for oil and fuels has the coronavirus (COVID-19) pandemic, as well
recovered in recent months following the eas- as weak market conditions.
ing of COVID-19 lockdowns over the summer The government expects that the Zaburunye
and continued supply cuts by OPEC+. Gas and Sarayshky blocks to attract the strongest
prices have taken longer to bottom out and then interest, and their market value has been esti-
rebound, however, partly because of oil indexa- mated at $63mn and $57mn respectively.
tion in some contracts. But an end to the market
turmoil is still not in sight. If you’d like to read more about the key events shaping
The world is now in the grip of a second wave the former Soviet Union’s oil and gas sector then please
of COVID-19, with Europe, the US and many click here for NewsBase’s FSU Monitor.
other nations again seeing record daily infection
rates. Some major oil consumers such as Italy, GLNG: Asia’s ups and downs
Germany and France are again going into lock- Certain Asian LNG projects have suffered set-
down mode. It is telling that OPEC+, which is backs over the past week, while good news has
among the most bullish forecasters, reportedly been reported elsewhere. In late October, it was
now sees a risk of an oil supply surplus re-emerg- reported that ExxonMobil had decided not to
ing in 2021. proceed with plans to participate in an LNG
After months of low prices, though, import terminal in Pakistan, and had exited the
Europe’s majors have largely exhausted their Energas Terminal consortium.
financial defences, having already made This comes as the super-major seeks to
drastic cuts to operational and capital spend- reduce spending amid this year’s industry down-
ing. This gives them little room to manoeu- turn, despite only entering into the consortium
vre if there is another full-blown slump in last year.
fuel demand, and puts them at the mercy of “ExxonMobil is evaluating all appropriate
OPEC+ decision-makers. steps to significantly reduce capital and operat-
At the same time, Europe’s oil leaders are also ing expenses in the near term as a result of mar-
pursuing aggressive strategies to move away ket conditions and commodity price decreases,”
from fossil fuels and expand in cleaner energies. an ExxonMobil spokesperson told Pakistani
But implementing these plans will not be cheap. financial daily Business Recorder.
The company continues to pursue LNG
If you’d like to read more about the key events shaping import plans elsewhere in Asia, having
Europe’s oil and gas sector then please click here for signed a memorandum of understanding
NewsBase’s EurOil Monitor. (MoU) last week to develop an integrated
LNG-to-power project in the Vietnamese
FSU: Novatek bullish on LNG city of Hai Phong.
Russia’s biggest independent gas producer According to a joint press release with Japan’s
Novatek remains bullish on long-term prospects JERA, ExxonMobil has submitted a master
for gas, despite prices falling to unprecedented plan application with a project concept for
lows this year in the wake of the pandemic.
Speaking to investors on October 29, Novatek
CFO Mark Gyetvay said the LNG exporter
“remains absolutely committed to its portfolio
strategy to deliver up to 70mn tonnes of LNG” per
year (tpy) by 2030. Novatek expects global LNG
consumption to reach 365mn tonnes in 2020, up
2% year on year, and sees it doubling to over 700mn
tonnes by 2040. This growth will be driven by gains
in the Asia-Pacific region, where economies are
expanding fast and governments are looking to
improve air quality by phasing out coal.
In the shorter term, the CFO said that while
gas prices were still lower than the pre-corona-
virus level, the recovery is underway. A rise in
forward curve prices for the upcoming winter
reflects expectations of colder weather ahead,
Gyetvay said.
Over in Kazakhstan, the government has
put up for auction 10 oil and gas blocks in the
Atyrau region, marking the country’s first ever
online contest for acreage. Authorities are look-
ing to attract interest from foreign investors
despite restrictions put in place in response to

Week 44 05•November•2020 www. NEWSBASE .com P13