Page 5 - GLNG Week 43 2020

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French major should be able to complete its acqui- Field production is projected to peak before
sition of Tullow’s Ugandan portfolio in the near the end of this year, bolstering the company’s gas
future. output by around 35.32mn cubic feet (1bn cubic
metres) per day and condensate output by 5,720
If you’d like to read more about the key events shaping barrels per day (bpd).
Africa’s oil and gas sector then please click here for
NewsBase’s AfrOil Monitor . If you’d like to read more about the key events shaping
Asia’s oil and gas sector then please click here for
China makes gas push NewsBase’s AsianOil Monitor .
China’s state-run CNOOC Ltd has pledged to
boost natural gas’ share of its overall production Aramco scales back chemical plans
by 2035 after announcing weaker third-quarter Saudi Aramco is looking to downsize a plan to
results on the back of falling crude oil prices. build a $20-30bn oil-to-chemicals complex in
The company, which is the listed arm of the kingdom’s western port city of Yanbu, as it
state-owned China National Offshore Oil Corp. reassesses its downstream expansion plans in
(CNOOC), said on October 22 that it wanted light of weak market conditions.
gas to account for half of its total production by Aramco unveiled the project in 2017, esti-
the middle of the next decade, up from 21% at mating at the time it would process 400,000
present. barrels per day (bpd) of crude to produce 9mn
Company CFO Xie Weizhi told reporters that tonnes per year (tpy) of chemicals and base oils.
CNOOC Ltd would speed up gas exploration That would make the complex the largest of its
and production at home and abroad in order to kind in the world. It was due to start up in 2025.
achieve the target. However, Aramco and newly acquired sub-
The move comes after the company’s sidiary SABIC said last week they were consid-
third-quarter revenue shrank by 26.8% year on ering integrating Aramco’s existing refineries
year to CNY35.55bn ($5.32bn). While realised in Yanbu with a mixed feed steam cracker and
gas prices gained 2% on the year to $5.85 per derivative olefins units. The scope is being reas-
1,000 cubic feet ($206.56 per 1,000 cubic metres), sessed “to maximise the economic value while
oil prices shrank 29% to $43.03 per barrel. evaluating the optimal technical options and
Weaker international crude prices offset the market risks,” SABIC said in a filing.
company’s 5.1% increase in net oil and gas pro- The shift in plans comes as oversupplied
duction, which amounted to 131.2mn barrels of oil and petrochemicals markets have forced
oil equivalent (boe) for the period. operators in both areas to re-evaluate pro-
CNOOC Ltd announced plans earlier this duction projects. It marks the first time the
year to focus investment on domestic energy crude-to-chemicals scheme has been adjusted
projects at the expense of some of its overseas since the coronavirus (COVID-19) pandemic
developments and this strategy was reflected started.
in its production mix. The company recorded a Israel continues to increase ties with its Arab
10.4% rise in production from domestic assets, neighbours in the energy sector. Israeli pipeline
while output from foreign fields contracted by firm EAPC on October 20 signed a preliminary
4.6%. deal to bring UAE oil to Europe. The oil would
On the same day it posted its results, CNOOC flow through a 254-km pipeline linking the Red
Ltd announced that it had started up production Sea city of Eilat with the Mediterranean port
from the shallow-water Bozhong 19-6 gas and of Ashkelon. The agreement comes after Israel
condensate field, which is located in the central and the UAE normalised their relationship last
Bohai Sea. The company has built a new well- month through a landmark peace deal.
head platform at the field, which has been tied Israeli-Arab relations have dramatically
into existing processing facilities at Bozhong changed in recent years, amid shared concerns
13-1, and intends to drill seven production wells about Iran and its efforts to expand Shia influ-
and one water source well. ence in the region. Tehran has also worsened ties

Week 43 30•October•2020 www. NEWSBASE .com P5