Natural Gas Daily: July 15th, 2020
Aramco to Restructure Downstream Business
Saudi Aramco announced plans on July 14 to reorganise its downstream business to support its global growth strategy, a process it expects to complete by the end of the year.
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- As part of this strategy it recently bought Saudi petrochemicals giant Sabic for $69.1bn, and it also wants to double its refining capacity to 10mn b/d.
Woodside Sees 8% Drop in Q2 Revenue
Australia's Woodside reported an 8.35% yr/yr drop in revenue for the three months to June 30 (Q2) thanks to weaker realised oil and gas prices as demand plunged due to Covid-19 lockdowns.
- In March, Woodside had deferred targeted FIDs on Scarborough, Pluto Train 2 and Browse and slashed approximately 50% in forecast 2020 total expenditure in response to uncertain market conditions created by low oil prices and Covid-19 outbreak.
Oz Origin to Take A$1.16bn-A$1.24bn Hit
Australian gas and power retailer Origin Energy expects to recognise non-cash post-tax charges in the range of A$1.16bn-A$1.24bn for the 12-months to June 30, it said in a statement.
- The sharp decline in global oil and gas prices has resulted in asset writedowns and sharp cuts in spending. Earlier this week, another Australian oil and gas company, Woodside, said it will recognise non-cash, post-tax impairment losses of $3.92bn (A$5.6bn) during the six months to June 30.
Premier Expects Positive Cash Flow in 2020
UK North Sea producer Premier Oil expects to be free cash flow positive this year, it said, having hedged more than a fifth of its output in the second half to a price of $56/barrel of oil equivalent (boe). Brent is trading at $42.5-43.5/b. Premier expects its first-half revenues to come in at $530mn.
- Premier is preparing to seal a deal to buy a group of UK North Sea assets from BP, after negotiating a much lower purchase price, but it has dropped plans to take an extra 25% stake in the Tolmount gas field from South Korea's Dana Petroleum.
