COVID-19 Concerns Continue to Cast DoubtBy Peter Appleby | Thu, 09/17/2020 - 17:04
The no-longer novel virus is still the top of the news in oil and gas, both for good and bad reasons.
This week saw Eni help the Tabasco government – where Area 1 is located - with a donation of medical and food supplies, including 10 ventilators and almost 4,000 food and cleaning kits. OPEC has been holding meetings to discuss plans ahead of demand falling once more. Various regions of the world, particularly Europe, are facing what may be a second wave of the virus as colder weather begins. And finally, CNH continues to approve plans for PEMEX and privates.
All this and more in The Week in Oil and Gas.
Eni Joins Fight Against COVID-19 in Tabasco
Italian IOC Eni, operating Area 1, also known as the AMT for the fields it contains – Amoca, Mitzon and Tecoalli – sent medical supplies to the local government of Tabasco to help the state tackle its COVID-19 problem.
The company sent a range of medical supplies including 10 ventilators, 700 PCR test kits to detect 1,500 potential cases of COVID-19 and a thermal cycler used in the testing process, as well as 3,900 food and cleaning packages for people in the state’s Cardenas municipality.
“With this donation, the company joins the efforts of all health professionals and communities to help prevent and combat the spread of COVID-19, thus reaffirming its commitment and support to the communities where it operates, particularly the most vulnerable who are located in the coastal area of the municipality of Cardenas, Tabasco,” Eni said.
OPEC+ Holds Emergency Meeting Ahead of Rising COVID-19 Cases
OPEC+ held an emergency meeting on Thursday to discuss how an increase in COVID-19 cases may negatively affect oil demand as the World Health Organization again warned of worrying COVID-19 trends.
The group, which successfully came together to make a 9.7MMb/d production cut earlier this year, is concerned about how markets will react should demand fall again.
Essential markets like the US continue to suffer from the virus, though cases are slowly declining, and the northern hemisphere will soon be entering colder weather, the time of year when viruses normally propagate.
Crude concerns for refiners are also hampering higher prices, as an oversupply of distillates are forcing the refining of fuels like diesel and jet fuel in place of crude.
More Exploration Plans Approved
CNH has approved more exploration plans for both the NOC and private national player, Diavax.
PEMEX’s approved exploration plan was for the AE-0170-Holok area, an offshore deepwater location off the coast of Veracruz. The base investment for the plan is US$9.63 million and could rise to US$15.98 million, reports Milenio.
Diava’z plan, meanwhile, was for the CNH-M4-Ebano-2018 contract, located on a block that stretches between Tamaulipas and Veracruz and is only 20km from the important port of Tampico. The initial investment is US$9.13 million with the potential to increase.