Petrofac Win Builds on Decade-long Iraq Presence
This week’s review of the most popular downstream-related articles on Rigzone – in terms of pageviews – showcases key contract wins as well as expectations about oil demand. Keep reading for more details.
Petrofac has provided Basra Oil Co. (BOC) with operations and maintenance services for the Iraq Crude Oil Export Expansion Project (ICOEEP) for years, and it recently secured a contract extension from the customer. As this article notes, the six-month extension enables it to continue its role at the offshore complex that handles approximately 50 percent of Iraq’s crude oil exports. In addition to its nearly eight-year role at ICOEEP, Petrofac has maintained a presence In Iraq since 2010.
According to a new report from Fitch Solutions Country Risk and Industry Research, the average price of Brent crude should be higher than expected this year. Previously, analysts at the firm had predicted an average Brent price for the year of $33 per barrel. However, they recently revised their forecast for the global oil benchmark to $40 per barrel. Moreover, they anticipate rising average Brent prices through 2024.
Global demand for crude oil has fallen sharply in recent months. Consultancy Rystad Energy revealed that it expects total oil demand to decrease by 11.4 million barrels per day (bpd) – or 11.5 percent – from 2019 to 2020. That equates to a 2020 global oil demand estimate of 88.1 million bpd, compared to 99.5 million bpd for last year. Rystad does anticipate a gradual demand rebound to 96.3 million bpd for 2021, though.
One of the biggest downstream-related stories on Rigzone this week was this report on three major deals to build liquefied natural gas (LNG) carriers for Qatar Petroleum. Valued at approximately $19 billion, the shipbuilding agreements with South Korea’s “Big Three” yards will give Qatar Petroleum more than 100 new vessels as it expands its LNG output.
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