Coronavirus company news summary – Gazprom Neft expects oil demand to recover in late 2021 – European bank loans $253m to Georgian oil corp

24 September 2020 (Last Updated September 24th, 2020 10:11)

24 September

Gazprom Neft CEO Alexander Dyukov has said he expects oil demand to recover to pre-Covid-19 crisis levels in the second half of next year, Reuters reported. At an event, he also said the company remains comfortable with current oil prices of more than $40 per barrel. Earlier, Russian energy minister Alexander Novak said that global oil consumption will completely recover in the second quarter of next year.

The European Bank for Reconstruction and Development has agreed to provide a loan of $253m (€217m) to Georgia’s state-run Oil and Gas Corporation. The loan amount will help the company refinance its Eurobond issue, set to mature next year. According to the bank, the loan will help GOGC to mitigate cash flow issues coming from pandemic-related issues.

Premier Oil has started discussions with BP to lower the value of a deal to buy stakes in two North Sea oilfields. According to a Reuters report, Premier Oil aims to reduce the cash payment to BP to $80m, a reduction of $70m. It is also working to raise $530m to pay for the deal and reduce debt. The acquisition was originally valued at $625m, but Premier’s cash payment was revised to $210m following the oil price cash.