Newsflash about oil&gas industry on November 21, 2018
Time: 2018-11-21 09:17:46 Source: Rigzone ;OGJ
China's Tariffs: A Headache for the Next Wave of US Natgas Export Projects? China is the world’s second largest importer of LNG after Japan and an important customer for U.S. LNG. For example, this year between January and August, China purchased 1.6 of the 14.9 million tonnes of U.S. LNG, according to Thomson Reuters’ data, but Sept. 24 marked the start of President Trump’s imposition of tariffs on $200 billion worth of Chinese goods and China’s retaliatory levy of 10 percent on imports of US LNG. What effect will this have on US LNG exporters in particular and LNG trade?
Wholesale prices are already near their highest levels in a decade, driven by rising shipping costs, low European gas stocks and Chinese purchases to avoid a recurrence of last winter’s gas shortages. In the run-up to and during this winter, tariffs on U.S. LNG could lead Chinese purchasers to diversions and swaps with other sources of supply such as Qatar, Australia, Papua New Guinea, Russia and according to Guy Broggi of Consultant indépendant chez LNG Markets “even European re-loads.” China is expected to buy about 8 million tons of LNG in coming months on the spot market. Companies like Cheniere Energy could still benefit since they also supply the spot market for traders to swap cargoes, take advantage of price differences or shorter delivery times.
NYMEX oil prices holding under $57/bbl for December. Light, sweet crude oil prices settled moderately higher Nov. 19 on the New York market but prices were falling in early trading Nov. 20 amid thin trading volumes with the approach of the US Thanksgiving holiday.
Analysts are watching the Organization of Petroleum Exporting Countries to see if OPEC and some non-OPEC producers, including Russia, will agree to trim production during a Dec. 6 meeting.
Castello Branco to become CEO of Petrobras. Roberto Castello Branco, a past advocate for privatization of Petroleo Brasileiro SA (Petrobras), will become chief executive officer of the Brazilian oil and company.
Pacific Drilling Emerges from Bankruptcy. Pacific Drilling S.A. has emerged from Chapter 11 bankruptcy after successfully completing its restructuring, the company announced Nov. 19.
Eni and Lukoil Form Offshore Mexico JVs. Eni S.p.A. and PJSC Lukoil have signed a farm-out deal to transfer participating interests in three shallow-water exploration licenses offshore Mexico, Eni reported Tuesday.
The new joint ventures, which Lukoil stated await approval from the National Hydrocarbons Commission of Mexico, include the following Sureste Basin blocks in the Bay of Campeche:
Area 10: Eni 80 percent operator and Lukoil 20 percent stakeholder
Area 12: Lukoil 60 percent operator and Eni 40 percent stakeholder
Area 14: Eni 40 percent operator, Citla 40 percent and Lukoil 20 percent stakeholders, respectively
