Natural Gas Daily: April 24th, 2020
ACG to Cut Output Under Opec+ Deal: Press
BP and its partners have agreed to cut oil output at Azerbaijan's flagship Azeri-Chirag-Gunashli (ACG) project in the Caspian Sea by 80,000 b/d next month, sources told Reuters on April 23, under a deal by Opec+ producers to take 9.7mn b/d of global supply offline.
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The Big Picture:
- Like other Opec+ members, Azerbaijan has committed to reducing national extraction by 23% in May.
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The BP-led Azeri-Chirag-Gunashli (ACG) fields in the Caspian Sea are by far Azerbaijan's biggest source of oil.
US Firm Hired for Arctic LNG-2 Compressor Controls
Novatek has awarded several contracts to Compressor Controls Corp (CCC), a subsidiary of US-based Roper Technologies that specialises in LNG turbomachinery controls, relating to its Arctic LNG-2 liquefaction project in northern Russia.
The Big Picture:
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CCC also worked at Yamal LNG, Novatek's first LNG project that came on stream in late 2017.
- The $21bn Arctic LNG-2 project is slated to start production in 2023.
Eni Swings to Q1 Loss on Covid-19 Pain: Update 2
Italian oil and gas company Eni has slashed its forecast for this year's production, after swinging to a loss in the first quarter, it said. The company added that the senior management, led by CEO Claudio Descalzi, would be paid less this year.
The Big Picture:
- The company suffered a net loss of €2.93bn in the three-month period, versus a €1.1bn profit a year earlier.
Norway's Aker BP warned it expected to swing to a pre-tax loss in the first quarter, owing to $500-700mn in impairments on its assets as a result of the oil price collapse.
The Big Picture:
- The company's one bright spot was the launch in the second quarter of the low-cost Aerfugl gas field three years ahead of schedule.
China's March LNG Imports Up Over 4%
China’s LNG imports during March totalled 4.19mn metric tons, up 4.3% yr/yr, according to customs data published on April 23.
The Big Picture:
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Chinese LNG and pipeline gas imports have taken a hit this year because of the Covid-19 outbreak, with yr/yr growth slowing down significantly.
Wentworth Reports Higher Earnings, Pays Dividend
Independent UK producer Wentworth reported revenues of $18.6mn on its 2019 sales in Tanzania, underpinned by long-term, fixed-price contracts. Its adjusted pre-tax earnings (Ebitda) net of exploration expenses were $8.8mn, up 6% on 2018.
The Big Picture:
- At a time when nearly all oil and gas producers are in defence mode, one exception is Wentworth Resources.
- The company is debt free and while other companies are slashing dividends this year, it is paying shareholders the equivalent to a 7.2% yield.
