Page 8 - GLNG Week 43 2020

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once output restrictions imposed by the OPEC+ deals with low premiums are expected.
group have been lifted. For Cenovus, the third-largest Canadian
Lukoil Mid-East’s managing director Egor producer by output, the merger will narrow
Zubarev said that the company had intended to the gap with top producers Canadian Natural
increase output at the supergiant West Qurna-2 Resources Ltd (CNRL) and Suncor Energy. Sep-
field by 80,000 bpd, but it has actually cut pro- arately, the provincial government of Alberta
duction by 120,000 bpd in accordance with a has announced that it will end mandatory pro-
request form the Iraqi oil ministry. duction curbs at the start of December, a month
In Iran, a group of Indian developers have earlier than previously scheduled.
finally lost out on the Farzad-B gas field, which This comes as Alberta’s production continues Alberta’s
has now been awarded to local firm PetroPars, to be reduced as a result of companies reining in
a subsidiary of the National Iranian Oil Co. output in response to the coronavirus (COVID- production
(NIOC). Tehran had previously issued numer- 19) pandemic. Alberta Minister of Energy Sonya continues to
ous ultimatums to the group to make progress. Savage said nearly 16% of the province’s crude
The US, meanwhile, announced a new raft output was currently offline. be reduced
of sanctions on Iran, its Oil Ministry, NIOC and This, in turn, has eased congestion on pipe-
others in a move appearing to be more about the lines carrying oil out of Alberta – which is what as a result of
look than the substance as President Donald the province’s government had been seeking to
Trump prepares for the upcoming election. achieve through the mandatory curtailments companies
prior to the pandemic. reining in output
If you’d like to read more about the key events The government had already been gradually
shaping the Middle East’s oil and gas sector then easing the curtailments since taking office last in response to
please click here for NewsBase’s MEOG Monitor . year, and the latest industry downturn, exacer-
bated by COVID-19, has allowed it to speed up COVID.
Consolidation in Canada as Alberta pre- the process.
pares to end cuts The current shut-ins mark an improve-
It has been an eventful few days for Canada’s oil ment from 22% of the province’s oil output – or
and gas industry. A new merger involving two 880,000 barrels per day (bpd) – being shut in at
major Canadian producers was announced the peak of the production cuts during the worst
this week. Cenovus Energy has struck a deal to of this year’s downturn. Nonetheless, it appears
acquire Husky Energy for CAD3.8bn (2.9bn), or that mandatory curtailments are no longer
CAD10.2bn ($7.7bn) including the assumption needed as producers keep some demand shut
of debt. in voluntarily.
This makes it the largest Canadian oil and
gas deal in nearly four years based on enterprise If you’d like to read more about the key events shaping the
value, and it comes as consolidation picks up North American oil and gas sector then please click here
in both the US and Canada. More stock-based for NewsBase’s NorthAmOil Monitor. ™

P8 www. NEWSBASE .com Week 43 30•October•2020