Page 15 - MEOG Week 35.indd

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Platform at Iran’s South
Pars gas field.

group has said that the country’s hydrocarbon Job cuts hit North America’s oil industry
sector may be able to attract hundreds of millions Further job cuts have been reported in recent
of dollars from private companies before the end days to be looming for oil and gas producers with
of 2020. According to Francisco José Lloreda, the operations in North America.
president of the Colombian Petroleum Associa- This comes as producers on the continent
tion (ACP), private investors are willing to make continue to struggle to bounce back from the
about $715mn available for the development of severe industry downturn that began in March
oil and gas projects. This funding could play a and was compounded by the spread of coro-
crucial role in the revival of the hydrocarbon sec- navirus (COVID-19). Demand is picking up
tor and help jump-start the country’s economy, and crude prices have stabilised recently, but
Lloreda said last week. they remain unfavourably low, and market
conditions are still relatively challenging for
If you’d like to read more about the key events shaping producers.
the Latin American oil and gas sector then please click Over the past week, it emerged that Norway’s
here for NewsBase’s LatAmOil Monitor. Equinor is set to cut jobs “significantly” in the US
and Canada – as well as in the UK. An Equinor
Drilling, discoveries and deals in the Mid- spokesman told Reuters that employee numbers
dle East in these countries would be cut by around 20%,
Iran announced this week that local firm Pet- while contractor numbers would be reduced by
ropars would soon begin drilling at South Pars around 50%.
Phase 11, the project that was awarded to French Equinor will also not drill any new
super-major Total and China’s CNPC under an unconventional wells in the US this year,
integrated petroleum contract (IPC). The part- according to the spokesman. The company
ners withdrew from the project in August 2018 has acreage in the Marcellus and Bakken
and October 2019 respectively, leaving Petropars formations. It is one of numerous producers
to go it alone. With Iran determined to press scaling back its shale operations in response
ahead with projects to raise oil and gas produc- to the downturn.
tion capacity, drilling is now set to begin by the Separately, leading independent US shale
end of the autumn at SP11, with gas expected to players Pioneer Natural Resources and Parsley
reach onshore facilities in the next 12 months. Energy were reported to be planning to cut staff
On the other side of the Gulf, Saudi Ara- numbers in the coming days.
mco has reported the discovery of two new oil On top of the ongoing challenges related to
and gas fields in the north-east of the country. the industry downturn, energy sector players
Though they are comparatively miniscule by in the US Gulf of Mexico and on the Gulf Coast
Saudi standards, the finds offer a ‘good news’ have had to contend with disruption – and in
story for Aramco during what has so far been an some cases damage – caused by Hurricane Laura
incredibly challenging year. The company will last week.
now carry out further appraisal work to establish Over the last few days, operations were
reserve levels and development plans. being restored across oil platforms in the Gulf,
Following the announcement of a handful refineries and LNG export terminals, among
of deals between US firms and the Iraq govern- other facilities. On August 31, it was reported
ment last week, Middle East Oil & Gas (MEOG) that a US Strategic Petroleum Reserve (SPR)
has been provided with details about Baghdad’s site in Louisiana, West Hackberry, had sus-
plans for the Thi Qar project under discussion tained “considerable damage” as a result of the
with Chevron. storm.
If you’d like to read more about the key events shaping If you’d like to read more about the key events shaping
the Middle East’s oil and gas sector then please click the North American oil and gas sector then please click
here for NewsBase’s MEOG Monitor. here for NewsBase’s NorthAmOil Monitor.™

Week 35 02•September•2020 www. NEWSBASE .com P15