Mergers, Field Development and 2045 OutlookBy Peter Appleby | Thu, 10/08/2020 - 17:59
Announcements were made regarding the FPSO to be used on Italian IOC Eni’s Area 1 development, while a UK IOC gets swallowed in a reverse takeover by a fellow British group and OPEC releases a wide-ranging World Oil Outlook 2020 report that offers insight about Mexico’s oil and gas industry in 2045.
All this and more in The Week in Oil and Gas!
US conglomerate Honeywell announced last week that it will supply the security platform to the MODEC-built FPSO that will be used in Eni’s Area 1 development. The company said that the platform includes a radar video surveillance system that will alert the FPSO’s crew of any intruders and will help block any potential unauthorized access.
Eni’s Area 1 has been a standout success in Mexico’s oil and gas industry, having been the first to reach first oil on the Mitzon field, one of the three that make up the Area. The company is now moving into development and Honeywell’s addition underlines the concern that some operators will have about security in Mexico. Since 2017, successful and attempted pirate attacks have risen sharply and the trend is continuing.
Tom Garbee, of MODEC, said "Honeywell offers a complete set of solutions designed to protect personnel and facilities, including an integrated safety and security platform developed specifically for the requirements of the oil and gas industry. As operating companies become increasingly dependent on critical production resources, such as FPSOs, efficient management of these resources and reducing risks to operators will become increasingly important.”
Premier Oil has merged with Chrysoar Holdings in a reverse takeover that has freed the UK IOC from heavy debt and created the largest independent oil and gas company listed on the London Stock Market.
In Mexico, Premier Oil operates two offshore blocks, Block 11 and 13 in the Burgos Basin, and also has two participating interests: Block 7, site of Zama reserve, and Block 30.
The company had struggled with significant debt and at the beginning of the week had a gross debt of US$2.7 billion. But the COVID-19 pandemic has caused further damage and, as with other oil companies, Premier Oil was forced to reconsider its situation.
OPEC this week released its World Oil Outlook 2020 report in which it forecast oil and energy demand from 2020 to 2045, in light of the recent COVID-19 pandemic.
According to the report, Mexico’s liquid supply would slip to 1.6MMb/d by 2045. “With a significant debt load, as well as new pressures resulting from the COVID-19 downturn, it appears that PEMEX is struggling to meet its own commitments according to its business plan. In addition, political pressures to focus on cheaper but potentially less prolific onshore fields, may mean that longer-term sustainable growth proves a challenge, especially in potentially bountiful deepwater areas. As such, this Outlook’s projection is for Mexican liquids supply to modestly decline in the long-term, to 1.6MMb/d by 2045,” it said.