Coronavirus company news summary – Occidental bears the brunt of Covid-19 pandemic – Beach Energy prepared to drill exploration well

11 November 2020 (Last Updated November 11th, 2020 09:48)

11 November

US-based hydrocarbon exploration company Occidental Petroleum registered a larger-than-expected loss in September quarter, as the ongoing pandemic affected crude prices. The oil and gas producer has retrenched employees, reduced production and asset values to deal with the impact of the pandemic. Occidental estimates output in Q4 to be between 1.1 million bpd and 1.16 million bpd, while it expects its total spending for 2020 to be between $2.4bn and $2.6bn.

Australian oil producer Beach Energy will drill the Artisan offshore exploration well in the Otway Basin at a water depth of 71m. The well was planned to be drilling between the first or second quarter of 2020 but delayed to the coronavirus pandemic. Drilling of the well is now planned to be undertaken between the current quarter and end of 2021 and is expected to take approximately 35 to 55 days.

The G20 countries responded to the Covid-19 crisis by providing stimulus to industries and companies that are dependent on fossil fuels, which accelerate global warming. The G20 set aside more than $230bn of Covid-19 recovery funds for spending on the oil and gas sector, while only $150bn has been earmarked for spending on clean energy. The move has been criticised by environmentalists who have been calling to stop incentives for the oil, gas and coal industry.