OPEC attempts to stabilise the oil & gas market
It has been reported that OPEC (Organisation of the Petroleum Exporting Countries) has taken steps to stabilise the volatile oil and gas market.
In combination with efforts by the G20 and International Energy Agency, OPEC’s newly brokered deal could result in a reduction of up to 20mn barrels of oil per day (bpd) from circulation, therefore decreasing excess stockpiles and driving up prices.
This could be very positive news for an industry which has been beset by problems since the beginning of 2020. OPEC’s deal, supplemented by the as-yet-undefined efforts of the G20, could sow the seeds for restoring normality to the market.
According to reports, Russia and Saudi Arabia will each reduce their production to 8.5mn bpd (previously 12.3mn and 11.29mn bpd respectively), a significant cut in the oil industry’s history.
“[The production adjustments] are the largest in volume and the longest in duration, as they are planned to last for two years,” said H.E. Mohammed Barkindo, Secretary-General of OPEC.
“We are witnessing today the triumph of international cooperation and multilateralism which are the core of OPEC values.”
In addition to the potential for stabilising the global oil and gas market, OPEC’s deal is expected to also bring a degree of prosperity to the African continent. APPO (African Petroleum Producers' Organisation) has been following proceedings accordingly.
Among the African nations expected to benefit from OPEC’s production cuts are Nigeria, Angola and South Sudan.
Nigeria’s Minister of State for Petroleum Resources, Hon. Chief Timipre Marlin Sylva, announced in a statement that, “This [...] promises an appropriate balancing of Nigeria’s 2020 budget that has been rebased at $30 per barrel.”
Meanwhile, South Sudan’s Minister of Petroleum, Hon. Puot Kang Chol, added his support OPEC’s new deal, as well as guaranteeing its national battle against COVID-19 (coronavirus).
“We welcome all efforts to stabilize the oil market and South Sudan will continue to play its role. Our government will continue doing its utmost best in making the oil production and fighting the Coronavirus a priority and we will continue collaborating with all our partners.”
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Global Offshore rebrands Enelift and invests in global hubs
Global Offshore has rebranded Enelift and will invest "a seven-figure sum" in establishing new support hubs in Houston, Dubai, Singapore, Perth and the Caspian during the next six months.
The investment will cover oil, gas and renewables, mainly concentrating on manufacturing capability with associated R&D, as well as in stock held in the hubs.
The company’s flagship Hinge Lok technology provides aluminium, non-welded light weight transportation cradle for casing and tubing. Enelift now plans to enhance its offering by augmenting its existing solutions with robotics and remote operational and training technology, which will reduce manpower for handling offshore equipment that is transported and stored using the Hinge Lok system.
Enelift is partnering with "a Japanese robotics company" and the technology will be trialed with "a Norwegian operator on a Norwegian drilling rig", according to a statement.
Operating from its bases in Aberdeen, UK and Esbjerg, Enelift was founded by 35-year industry veteran and Managing Director Paul Brebner 10 years ago to offer the offshore energy industries safe, reliable and efficient storage and transportation of equipment.
The expansion plans are bolstered by the appointment of Jim Clark of the Craigendarroch Group to Chairman, and Adam Maitland to Non-Executive Director. Maitland is the Managing Director of Hutcheon Mearns IF, and brings his wealth of expertise in the field of corporate finance.
Brebner said Enelift may be a new name in the market, but the experience it brings is "industry renowned".
"Our solutions are underpinned by safety that enables inefficiencies and their associated costs to be eradicated – meaning operational personnel can focus doing what they do best, safely. We remain committed to providing the safest storage and transportation solutions for equipment in the sector as we grow our global operations," he said.
Clark said the market is changing and its solutions fully support customers’ economic and safety aspirations.
"We are very well placed to take full advantage of increasing opportunities in the Middle East, Africa, Far East and Americas. Safety is our absolute commitment to our customers and our support hubs will facilitate this. Aligning our identity to our entire offering ensures that we will drive our expansion through new products and global support sites across the rest of this year."