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Weaker international crude prices offset the However, Aramco and newly acquired sub-
company’s 5.1% increase in net oil and gas pro- sidiary SABIC said last week they were consid-
duction, which amounted to 131.2mn barrels of ering integrating Aramco’s existing refineries
oil equivalent (boe) for the period. in Yanbu with a mixed feed steam cracker and
CNOOC Ltd announced plans earlier this derivative olefins units. The scope is being reas-
year to focus investment on domestic energy sessed “to maximise the economic value while
projects at the expense of some of its overseas evaluating the optimal technical options and
developments and this strategy was reflected market risks,” SABIC said in a filing.
in its production mix. The company recorded a The shift in plans comes as oversupplied
10.4% rise in production from domestic assets, oil and petrochemicals markets have forced
while output from foreign fields contracted by operators in both areas to re-evaluate pro-
4.6%. duction projects. It marks the first time the
On the same day it posted its results, CNOOC crude-to-chemicals scheme has been adjusted
Ltd announced that it had started up production since the coronavirus (COVID-19) pandemic
from the shallow-water Bozhong 19-6 gas and started. Oversupplied
condensate field, which is located in the central Israel continues to increase ties with its Arab
Bohai Sea. The company has built a new well- neighbours in the energy sector. Israeli pipeline crude oil and
head platform at the field, which has been tied firm EAPC on October 20 signed a preliminary petrochemicals
into existing processing facilities at Bozhong deal to bring UAE oil to Europe. The oil would
13-1, and intends to drill seven production wells flow through a 254-km pipeline linking the Red markets have
and one water source well. Sea city of Eilat with the Mediterranean port
Field production is projected to peak before of Ashkelon. The agreement comes after Israel forced operators
the end of this year, bolstering the company’s gas and the UAE normalised their relationship last
output by around 35.32mn cubic feet (1bn cubic month through a landmark peace deal. to re-evaluate
metres) per day and condensate output by 5,720 Israeli-Arab relations have dramatically production
barrels per day (bpd). changed in recent years, amid shared concerns
about Iran and its efforts to expand Shia influ- projects
If you’d like to read more about the key events shaping ence in the region.
Asia’s oil and gas sector then please click here for Tehran has also worsened ties with some of
NewsBase’s AsianOil Monitor. its neighbours through its support for Yemen’s
Houthi rebels.
DMEA: Aramco scales back chemical plans
Saudi Aramco is looking to downsize a plan to If you’d like to read more about the key events shaping
build a $20-30bn oil-to-chemicals complex in the downstream sector of Africa and the Middle East,
the kingdom’s western port city of Yanbu, as it then please click here for NewsBase’s DMEA Monitor.
reassesses its downstream expansion plans in
light of weak market conditions. Europe: Engie delays US LNG contract
Aramco unveiled the project in 2017, esti- France’s Engie has reportedly delayed signing
mating at the time it would process 400,000 a $7bn contract to buy US LNG, after pressure
barrels per day (bpd) of crude to produce 9mn from the French government to seek cleaner
tonnes per year (tpy) of chemicals and base oils. supplies instead. But the US government also
That would make the complex the largest of its plans to intervene to convince French officials to
kind in the world. It was due to start up in 2025. let the deal go ahead.

Week 43 28•October•2020 www. NEWSBASE .com P7