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Coronavirus company news summary – Total to temporarily shut down Donges refinery – Goldman Sachs expects OPEC+ to extend output curbs – Enquest Group output averages 60,777bpd

25 Nov 2020 (Last Updated November 25th, 2020 09:51)

25 November

Multinational oil company Shell may close its refinery in Convent, Louisiana next week, according to a Reuters report. The refinery produces 211,146bpd of oil and is reportedly planned to be shut down as Shell was unable to find a buyer during the pandemic. The Covid-19 pandemic reduced fuel demand by roughly 30% compared with 2019, while the worldwide demand is expected to decline by 4.7 million bpd by 2025.

Operations at Total’s Donges refinery located near France’s Atlantic coast will be halted for several months, until refining economics bounce back after being impacted by the coronavirus pandemic. Total incurred losses during the pandemic, as margins continue to dwindle due to the drop in oil demand.

OPEC+ members are scheduled to meet soon to consider extension of oil production curbs into 2021 owing to weak demand as coronavirus cases are increasing across the globe. Goldman Sachs is predicting OPEC+ will defer boosting output by three months, considering high levels of crude stockpiles, Libya’s output recovery and the reimplementation of Covid-19 related lockdowns.

Oil company Enquest reported minimal impact due to Covid-19 pandemic as its production averaged 60,777bpd year to date. Full year output is expected to be slightly lower than the yearly guidance of 57,000 to 63,000bpd. The group production declined in the second half of 2020, compared with the first half, due to maintenance closedown schedule and the unexpected outage at PM8/Seligi field in Malaysia.