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Big Oil's selling spree might prove tricky

October 23/2020

MOSCOW (MRC) -- The worlds leading energy companies are hoping to sell dozens of oil and gas fields and refineries worth over USD110 billion to reduce ballooning debt and their carbon footprint, said Reuters.

But with the outlook for oil and gas prices shrouded in uncertainty because of the coronavirus epidemic and the looming energy transition, finding buyers and agreeing on asset prices might prove tricky.

"This is not a very good time to sell assets," Total CEO Patrick Pouyanne said while presenting the French giants strategy to switch to renewables energy.

Eight of the world's top oil companies - Exxon Mobil, Chevron, Royal Dutch Shell, BP, Total, Equinor, Eni and ConocoPhillips - are expected to sell in the coming years assets with resources of around 68 billion barrels of oil and natural gas equivalent, around two years of today's global demand, according to Norwegian consultancy Rystad Energy.

Those assets carry an estimated value of USD111 billion, Rystad said in a note.

As it was written earlier, petrochemical companies are suspending production expansion projects in the US amid declining margins due to slowing demand growth. According to the American Chemistry Council, chemical companies have invested USD96 billion since 2010 to complete more than 200 shale oil projects in the United States, and another USD99 billion has been invested in projects underway. planning or building.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, neftegaz, petrochemistry.
Category:General News
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