Page 8 - AsianOil Week 32

AsianOil SOUTHEAST ASIA AsianOil

Petronas backs offshore technology project

PROJECTS & MALAYSIA’S state-owned Petronas Research
COMPANIES has teamed up with FASTsubsea to develop a
subsea multiphase pump that does not include
a topside.
The goal of the development is to reduce the
cost and complexity of multiphase subsea pump-
ing technology, which can help boost oil and gas
field productivity significantly.
Increased Petronas Research, a unit of Malaysian capital expenditure investment than conven-
recovery now national oil company (NOC), will support the tional subsea pumping systems, which are key in
development and testing of the technology, this market environment,” he said on August 11.
can be done in while FASTsubsea will bring the product to the Aker Solutions CEO John Macleod said
market in 2022. FASTsubsea is a joint venture bringing in an operator the size of Petronas was a
a much more between Norwegian offshore service providers significant achievement, given current industry
sustainable way, FSubsea and Aker Solutions that was created in conditions. Upstream operators across the globe
April 2019.
have trimmed their capital expenditure capex
The founding partners said last year that budgets this year in response to the collapse in
and at up to 50% the technology’s current limitations meant that oil and gas prices, and Petronas is no exception.
lower capex multiphase pumps were installed in fewer than The state major said in May that it would
30 of the world’s more than 1,500 offshore fields cut its 2020 capex by 21% and operating costs
despite having the potential to increase oil recov- by 12%, warning at the time that it expected a
ery rates by more than 20%. “downward production trend” in the near term
FASTsubsea chief technology officer Alex- as the coronavirus (COVID-19) pandemic
ander Fuglesang said his company’s technology eroded demand and disrupted operations.
would not only allow operators to boost hydro- FASTsubsea said Petronas’s participation
carbons production from existing wells but in the project, which comes in addition to a
would also enable infrastructure to be installed NOK11mn ($1.22mn) commitment from the
more rapidly. Research Council of Norway, would permit
“End-users are drawn to the technology, as engineering work to start immediately. The pro-
increased recovery now can be done in a much ject still has room for another two operators to
more sustainable way, and at up to 50% lower join as partners.™

EAST ASIA

China pauses Venezuelan loan repayments

POLICY CHINA has reportedly agreed to grant Vene- President Nicholas Madura from office.
zuela a grace period on billions of dollars’ worth US sanctions have even seen state-owned
of oil-for-loan repayments this year. China National Petroleum Corp. (CNPC) halt
Chinese banks have extended a grace period direct crude purchases from PDVSA, Reuters
on $19bn worth of Venezuelan loans until the cited other Venezuelan sources as saying.
end of December, Reuters reported on August The sanctions have forced state-run Pet-
13, citing unnamed Venezuelan sources. roChina to dissolve its Singaporean-based
“This [arrangement with China] will be in shipping joint venture with PDVSA, Reuters
place until at least December, and then they will reported on August 12.
re-evaluate it,” one of the sources said. Reuters Citing Singapore court documents, Reuters
calculated that the grace period would save Ven- said sanctions targeting PDVSA had left the
ezuela from repaying $3bn this year. vessels without insurance, leading to millions
While China has lent more than $50bn to of dollars in losses for CV Shipping. PetroChina
Venezuela since 2006, the South American declared the venture as bankrupt and took con-
country’s debt had dropped below $20bn in trol of three very-large crude carriers (VLCCs)
recent years. However, state-owned PDVSA has – each of which is capable of transporting up to
stopped publishing the pending balance. 2mn barrels of oil – in January-February.
“This [agreement] helps, but it does not alle- While PDVSA controls a fourth VLCC, Reu-
viate the cash flow problem,” another source said. ters said a US glass manufacturer had requested
Caracas has been struggling to meet its loan a Singapore court seize the tanker to cover a
obligations in the wake of an 18-month cam- $500mn arbitral award after Venezuela expro-
paign by the US government to force Venezuelan priated two of its factories in 2010.™

P8 www. NEWSBASE .com Week 32 13•August•2020