Coronavirus company news summary – Wintershall Dea reports rise in production volumes – Survey reveals extent of cost cutting in Canadian oil and gas – IOC purchases 20 million barrels of spot crude

24 November 2020 (Last Updated November 24th, 2020 11:30)

24 November

German oil and gas firm Wintershall Dea has reported that production volumes in Q3 stood at 606,000bpd, registering a 3% rise y-o-y. The Covid-19 pandemic cast a shadow over the company’s third quarter results, however the company said reduced operating costs and increased output would help in the long run. Wintershall Dea is poised for a positive cash flow by the end of 2020.

The Covid-19 pandemic pushed around 70% of companies in the Canadian oil and gas sector to take cost reduction steps, with 37% of companies opting for permanent layoffs. A survey by energy labour market organization PetroLMI revealed that 29% of companies deducted executive pay, 28% decreased worker pay and 21% of firms reduced work hours. The pandemic exacerbated a crisis in the industry, which was already bearing the brunt of depressed oil prices for half a decade.

India’s state-owned Indian Oil Corp bought around 20 million barrels of spot crude from Middle East and West Africa, which will be delivered early next year. This is the biggest purchase by the refiner since the onset of the coronavirus pandemic. The refinery has been operating at 100% capacity since early November after domestic fuel demand rebounded, thanks to the reopening of the economy after the easing of lockdown restrictions.