Pandemic coronavirus led to the failure of maintenance of oil and gas projects from Far East Russia to Canada, this poses a serious problem for the entire industry and compromise the supply of raw materials. This writes Reuters, citing its sources.
Regular repair is needed to maintain the wells, pipelines and refineries. Without maintenance increases the risk of failure or downtime. Delays increase the cost of the work in the future. However, the pandemic has hampered the supply of spare parts and does not allow the staff to fully carry out the service.
the maintenance Program of the Russian project “Sakhalin-2” in the far East comes with delays, as the company is unable to obtain the previously ordered items. “The headache was due to parts made in China. After the outbreak of coronavirus, the supplier said can’t deliver our order. Trying to find a replacement, but the time lost,” — said the source publication.
In the project “Sakhalin-1” which is operated by ExxonMobil, has also previously stated that forced to adjust schedule and scope of work at the factory. “To ensure the safety of our personnel, we are focused only on those operations which are necessary for our future economic and operating stability,” said ExxonMobil.
“When quarantine measures will weaken, this does not mean that the same work can be performed with the same intensity. Weather window may be missed. Large role played by seasonality, the situation may postpone the service for next year,” said Vice President of oilfield development company Rystad Matthew Fitzsimmons.
Many service companies do not get the expected revenues. According to Rystad, oil and gas company engaged in exploration and production, spent annually to service the roughly $ 80 billion in the period from 2015 to 2019. Now they don’t want to invest big money in maintenance projects.
the Agency estimated that about a dozen companies around the world are faced with problems of maintenance because of the pandemic. For example, a quarantine in Italy has affected the energy sector, as the country is a leading manufacturer of valves for the production and processing of oil. Until recently, only ten percent of Italian manufacturers was working, trying to deliver the items to overseas customers. In Nigeria, the facilities and field development was delayed for months as local oil company were not able to obtain the equipment.
In April, the oil price of the American WTI reached negative values. The drop in oil demand occurred on the background of the pandemic coronavirus and because of price wars between the major players�� market. At the same time the leading manufacturers worldwide made the deal with OPEC, which was to stabilize the market, which is already affecting global oil prices. As of may 19, July futures for Brent crude is above $ 35 per barrel, while WTI rose above 32 dollars. The Russian Urals brand is sold at a price above $ 30 for the first time since March this year.
