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many of the political and logistical pitfalls that hope to finally take the Brassay project for-
large-scale plants face. ward after years of delay.
Over in Ireland, Providence Resources hopes
If you’d like to read more about the key events shaping to finally attract a farm-in partner at the Barry-
the downstream sector of Africa and the Middle East, roe field, Ireland’s largest offshore oil discovery.
then please click here for NewsBase’s DMEA Monitor. It continues to hold talks with SpotOn Energy,
which is leading a consortium that also com-
European deal-making prises a number of major oilfield services firms.
There has been a flurry of new deals announced These firms will gain equity stakes in the project
in Europe over the past week. in lieu of payment for their services, helping to
France’s Total has closed the sale of a group keep development costs down. Norway’s Equinor
of UK North Sea assets to Neo Energy, backed Providence has struggled to find a farm-in
by Norwegian private equity HitecVision. The partner for the field, with two deals collapsing has agreed to
transaction was completed on schedule, despite in 2015 and 2018. Ireland’s investment climate sell 41% of the
Oman’s Petrogas dropping out as a joint buyer is hardly conducive to its efforts, with the new
alongside Neo in May. When first announced in coalition government looking to ban the issue Brassay heavy
summer 2019, the deal was valued at $635mn. of new oil and gas licences on environmental
But Total is likely to have received much less after grounds. oilfield east of
renegotiating terms with Neo to account for the
collapse in oil and gas prices this year. If you’d like to read more about the key events shaping the Shetlands to
The French major is on a divestment drive, Europe’s oil and gas sector then please click here for EnQuest
looking to weed out non-core, lower-margin NewsBase’s EurOil Monitor.
assets in its portfolio. And it appears to have
fast-tracked disposal plans in response to the FSU production setbacks
COVID-19 pandemic. Last week it also clinched Russian gas producer Novatek saw its interna-
a deal to sell the 180,000 barrel per day (bpd) tional sales of natural gas plunge 32% year on
Lindsey oil refinery in north-east England to a year in the second quarter, underscoring the
local player, and it is also reported to be mulling impact of the COVID-19 pandemic on global
the sale of a North Sea natural gas pipeline. demand. The company’s overseas shipments
Meanwhile, Norway’s Equinor has agreed came to only 2.5bn cubic metres (bcm) in the
to sell 41% of the Brassay heavy oilfield east of three-month period, down from 3.65 bcm a
the Shetlands to UK producer EnQuest. Like year earlier. Its domestic sales were also down,
Total, it too is looking to clean up its portfolio, though much less significantly, dropping to 14.4
although it will retain a further 41% interest in bcm from 15.1 bcm.
the project. EnQuest and Equinor both have The slump in international sales stemmed
experience in developing heavy crude depos- chiefly from a fall in the amount of LNG that
its. By combining their expertise, the partners Novatek was able to buy from its Yamal LNG

P16 www. NEWSBASE .com Week 31 06•August•2020