Unveils PDVSA Revival Plan. Venezuelan President
NicolÃ¡s Maduro has pledged to overhaul the country's oil industry, setting a
2mbpd oil production target (currently at 0.9mbpd), all the while promising to
ramp up gas output and recovering petrochemical production. Hinting at a
potential Rosneft interest in the mooted PDVSA privatization scheme, Maduro
nominated US-sanctioned Tareck El Aissami to head the newly-created
presidential commission that is supposed to oversee the upcoming reforms.
Drops March Crude Prices. With no Nigerian cargoes
sailing for China in February and the prime African crude producer becoming
increasingly dependent on European demand, Nigeria's state oil company NNPC has
effectuated an across-the-board price cut on its March 2020 official selling
prices. Its flagship export streams like Bonny Light, Qua Iboe, Forcados, Egina
or Escravos were all cut by 50-60 cents per barrel month-on-month.
of Tripoli's Port Aggravates Libya Situation. The
UN-brokered peace talks in Libya have crumbled as Field Marshal Haftar started
to bomb the port of Tripoli starting Wednesday, forcing the Libyan NOC to
evacuate fuel vessels and stop all loading operations. With the Zawiya Refinery
shut since February 08, supplying Tripoli with fuel has been increasingly
difficult and the port attacks seems a clear cut attempt to exhaust the GNA.
Libyan oil production dropped to 0.122 mbpd as of February 20, according to the
NOC-issued information bulletin.
Plunging from All-Time High. Azeri crude values are
looking back to a remarkably tumultuous 2 weeks - after attaining an all-time
high in premiums vs Dated Brent (at +6.90 USD/bbl), buyers in its traditional
market outlet in the Mediterranean have shifted their sight to cheaper
West-African replacements and US grades, too. Consequently, when SOCAR started
to offer its mid-March cargoes it could barely find a buyer with a price offer
of some +3 USD/bbl against Dated Brent.
and Indonesia Go For Crude Swaps. The national oil
companies of Malaysia and Indonesia, Petronas (KL:6033)
and Pertamina, have signed a framework deal that would
allow them to swap crude as part of their refinery optimization strategies.
Malaysia generally produces light sweet grades like Kimanis or Kikeh, whilst
Indonesian production is more to the medium sweet side. Valued by the sides at
$0.5 billion, the contract also accounts for potential product swaps (read:
Malaysian gasoline to Indonesia) and further cross-investment into each other's
Mandates Road Transport ULSD Switch. The Mexican
government has adopted a new environmental rule which would require that all
truck and bus manufacturers and retailers market only vehicles running on ultra-low-sulfur
diesel (ULSD) starting from January 2021. The national oil company PEMEX
estimates that the domestic availability of ULSD currently stands at 86%, i.e.
it would either need to ramp up imports by then or to reoptimize its refinery
Reiterates its Faith in LNG Growth. Shell has
presented its 2020 LNG outlook, stipulating that global LNG demand will double by 2040 to 700 million
tons LNG. The Anglo-Dutch major reckons Asia will remain the key growth region
for LNG, to the extent that Europe will soon cease to be the balancing market
and Asian consumers will be able to fully digest most of the supply growth.