Page 7 - GLNG Week 48 2020

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shelf, which it estimates to hold 1-2 trillion cubic ExxonMobil and Total are now renegotiating
metres of gas. It will, however, first need to drill that contract with each other.
to find out how much gas is really out there and The companies are reportedly seeking to
how much can be recovered commercially. cut costs wherever they can, in response to the
Over in Russia, both Gazprom and Tatneft impact of COVID-19 and the worsening secu-
reported their third-quarter results on Novem- rity situation in northern Mozambique. The
ber 30. While Gazprom swung to a net loss of negotiations are reported to be particularly sig-
RUB251bn ($3.3bn), Tatneft stayed in the black, nificant for ExxonMobil, as it has yet to make a
delivering a net income of $0.49bn. final investment decision (FID) on the Rovuma
Gazprom blamed its reversal on a project, which is estimated to cost $30bn.
RUB464.3bn foreign exchange loss relating This comes as developers elsewhere in the
to the revaluation of its foreign currency-de- world are backing away from resource-shar-
nominated debts. Tatneft’s board, meanwhile, ing. Earlier in November, it was reported that a
disappointed investors by failing to announce planned two-project development in Papua New
a decision on a dividend for Q3 2020, implying Guinea (PNG) might end up being altered so
that one is not likely to be paid. that one new project goes ahead while an expan-
sion of another – already operational – facility
If you’d like to read more about the key events shaping could be scrapped.
the former Soviet Union’s oil and gas sector then please
click here for NewsBase’s FSU Monitor . LatAmOil: Guyana drilling plans
Offshore Guyana, two consortia are hoping to
GLNG: Looking at LNG resource-sharing launch new drilling programmes before the end
The oversupply in the LNG market, which has of next year.
been exacerbated by the coronavirus (COVID- According to a statement from Canada’s Eco
19) pandemic, is prompting developers to con- (Atlantic) Oil & Gas, shareholders in the Orin-
sider options including resource-sharing. This duik block are currently reviewing several pros-
is now playing out in Mozambique, where Total pects that may contain light sweet crude oil in
and ExxonMobil are reported to be in talks order to “provide further definition to the Cre-
over a potential resource-sharing deal. (See: taceous interpretation.” The company did not
ExxonMobil, Total in talks over Mozambique identify any of the prospects but said that the
resource-sharing deal, page 13) highest-graded target areas would be added to
Last week, three sources familiar with the the drilling programme. “[We] hope to have tar-
matter told Reuters that the two companies get selection in the next six months, allowing us
were in negotiations, with each reportedly seek- to begin drilling preparation in the second half of
ing to extract more gas from a shared field that 2021,” said Gil Holzman, Eco Atlantic’s president
straddles their two developments and cut costs. and CEO.
Total is already developing its Mozambique To date, Eco Atlantic and the other sharehold-
LNG export terminal, which will use feedstock ers in Orinduik have made two non-commercial
gas from Offshore Area 1. ExxonMobil, mean- discoveries of heavy oil at Orinduik. Neverthe-
while, is still weighing whether to go ahead with less, Tullow Oil (UK/Ireland), the operator of the
Rovuma LNG, which would use feedstock gas block, has remained optimistic about the group’s
from neighbouring Offshore Area 4. Separately, chances of discovering light sweet crude.
ExxonMobil is also involved in the Eni-led Coral Meanwhile, two other Canadian compa-
South floating LNG (FLNG) project, under nies, CGX Energy and Frontera Energy, have
development currently and using gas from Off- secured permission to push back their deadlines
shore Area 4. for drilling at the Corentyne block. In a state-
The field that straddles ExxonMobil and ment, Frontera said Guyana’s government had
Total’s project areas contains cheap and abun- agreed to wait for another 12 months – that is,
dant gas resources. The volume each project until November 27, 2021 – for the drilling of the
could extract from the shared area was set out next well at Corentyne. It attributed the delay
in a 2015 unitisation – or resource-sharing – to the coronavirus (COVID-19) pandemic and
agreement, but according to the sources, both said that the partners “remained committed

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