Middle East Oil & Gas News for the week of July 03, 2020
Here are 9 key Middle East Oil & Gas News snippets from stories we are following at MEES for the week of July 03, 2020:
Egypt’s Qalaa: End Of The Road?
Egyptian conglomerate Qalaa stretched its finances to get the $4.4bn ERC hydrocracker online in late 2019. No sooner had output ramped up than margins collapsed. Qalaa says it is looking to restructure debt. But liabilities exceed assets by $1.25bn: auditor PWC doubts it is a going concern.
Eni Extends Winning Run In Egypt
The Bashrush discovery is around 3–4tcf and close to existing shallow-water
production. This should enable rapid tie-in to existing facilities.
Saudi-Kuwait Neutral Zone Back Online
Not only has output from the Neutral Zone restarted after a month-long hiatus, the onshore Wafra field has joined offshore Khafji for the first time since 2015.
Oman LNG Exports Dip, Expansion Next
Oman’s LNG output soared over the four years to 2019, to top 10.7mn t/y nameplate capacity. 1H volumes fell 14% amid weak demand, but Oman eyes further expansion.
Israel: Output Slump, Karish Dispute
Israel’s gas output fell 23% in Q2 amid Covid-19 and Egypt cutting imports. Key firm Delek plots a 2H rebound but this may be wishful thinking.
Energean Keeps Focus On East Med
With North Sea and Algeria excluded from its Edison deal, Energean will remain East Med-focused. Hefty discounts reflect rapid decline at Edison’s Egyptian fields.
Shell Tops BP With $15–22bn Writedown
Shell’s corporate realignment for now is less radical than that of BP, which this week announced its exit from petrochemicals.
Brooge Energy Delays Fujairah Storage Boost
Fujairah-based Brooge Energy is pushing ahead with sizeable storage and refining projects through to end-2022, despite a short-term delay to expansion plans.
Oil Markets Move Towards Balance
Senior oil figures from Opec’s Mohammad Barkindo to Aramco CEO Amin Nasser are cautiously optimistic, while acknowledging that oil market recovery remains tenuous.
