Page 11 - EurOil Week 48 2020

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coronavirus (COVID-19) pandemic and said If you’d like to read more about the key events
that the partners “remained committed through- shaping the Middle East’s oil and gas sector then
out to completing its exploratory commitments please click here for NewsBase’s MEOG Monitor .
in full, despite operational activities in Guyana
being severely affected for much of 2020.” NorthAmOil: Shale producers pivot to-
wards gas
If you’d like to read more about the key events shaping US shale producers are reported to be turning
the Latin American oil and gas sector then please click their attention to natural gas amid projections
here for NewsBase’s LatAmOil Monitor . that gas prices will rise higher than oil prices.
This comes as OPEC meets this week, amid jit-
MEOG: Gulf upstream uptick ters over the impact any rise in global production
A string of announcements last week show that could have on crude prices.
operators are returning to action across the Mid- Earlier this month, EOG Resources, one of
dle East despite uncertainty about the future of the US’ largest shale producers, said in Novem-
the OPEC+ agreement. ber that it would start selling gas from 15 new These gas wells,
Maintaining the momentum following the wells next year from a newly discovered field in
usual post-ADIPEC flurry, Abu Dhabi National Texas holding 21 trillion cubic feet (595bn cubic targeting the
Oil Co. (ADNOC) announced that it had agreed metres) of gas.
a $519mn extension to the world’s largest ever These gas wells, targeting the Eagle Ford and Eagle Ford and
seismic survey, currently being carried out by Austin Chalk plays, are reported to be as profita-
Chinese firm BGP. The survey, which is being ble as the company’s best oil wells. Austin Chalk
shot both onshore and offshore, will now cover Also in November, Apache said it planned plays, are
around 82,000 square km, with ADNOC look- to complete three Texas wells after boosting its
ing to continue its prolific exploration form third-quarter US gas production by 15% over reported to be as
following the previous week’s discovery of 24bn the second quarter and 6% over the same period
barrels of oil. of 2019, and Continental Resources recently profitable as the
In Iraqi Kurdistan, London-listed Genel shifted drilling rigs to gas from oil in Oklahoma.
Energy announced first oil from its Sarta field, Both US oil and gas rig counts have been company’s best
with an expansion planned for early 2021. rising in recent weeks after bottoming out over oil wells.
Despite having been delayed because of issues the summer. Country-wide gas rig counts are up
related to the coronavirus (COVID-19) pan- 13% since July, and over that period the number
demic, first oil comes less than two years after of active rigs has increased 25% in the Haynes-
the company acquired its 30% working interest ville shale and 8% in the Marcellus – both gas
from Chevron. Elsewhere in the semi-autono- plays.
mous region, Russia’s Gazprom Neft reached Part of the reason US gas prices are improv-
total cumulative production of 32mn barrels ing is that associated production of natural gas
from its Sarqala field, where output is anticipated from oil-rich regions has fallen as shale drillers
to increase to 32,000 barrels per day (bpd) in the scaled back activity earlier this year. Indeed, the
first half of 2021. US Energy Information Administration (EIA)
Meanwhile, drilling work is set to resume projected in mid-November that nationwide
offshore Oman this month, with Masirah Oil gas production would contract again in both
Ltd acquiring a jack-up from Shelf Drilling to November and December.
further develop the Yumna oilfield and explore
the wider potential of Block 50, where a previ- If you’d like to read more about the key events shaping
ous report estimated resources at more than 4bn the North American oil and gas sector then please click
barrels. here for NewsBase’s NorthAmOil Monitor .™

Week 48 03•December•2020 www. NEWSBASE .com P11