The largest offshore drilling and well drilling company in the world, Valaris PLC is currently talking to creditors to check
possible bankruptcy possibilities. The London headquartered company is fighting against $6.5 billion debt burden.
Valaris, which employs around 5800 people worldwide, was working with debt restructuring advisers such as Alvarez
& Marsal in March, trying to cope with an accident occurred on a rig. Since then, energy prices have fallen into
negative for the first time in history with a consequent demand collapse and this has put Valaris into a further critical
situation.

On Friday last week, the price of a barrel of crude oil in the USA was of $18.27 (€16.80). On Monday, it dropped to
minus $37.63 (€34) in a matter of hours, meaning that producers would have to ask buyers to get rid of their oil.

However, on Tuesday it recovered to $1.10.

The price of crude oil in the States has never fallen below $10.
It’s been a combination of no existing demand, lack of storage capacity and speculative investors.
As for comparison in January, a barrel of oil was $60 (€55).

The Italian government has confirmed Claudio Descalzi and Francesco Starace as CEOs of the top state-controlled
companies Eni and Enel.

However, Lucia Calvosa, a board member of the newspaper “Fatto Quotidiano”,
was named new president, replacing Emma Marcegaglia, a former head of industrial employers’ group Confindustria.
Descalzi has gone through hard times during the past few years because of his involvement in Nigerian oil deal
corruption. Nonetheless, Descalzi has always denied any implications or wrongdoings.
Descalzi is Eni’s CEO since May 2014. He is also a member of the National Petroleum Council.

As a precautionary measure, SNAM has allowed its employees living in Emilia-Romagna, Lombardy, Piedmont and Veneto to “smart” work from home from February 24th until March 8th. Some days ago, Snam has also arranged an internal team to collaborate with the Civil Protection to keep up to date with the situation and be able to support the entire staff.
Furthermore, on February 25th a company employee from the San Donato Milanese office and residing in Lecco was found positive to the coronavirus/Covid-19. According to Snam, he is in good conditions.

Wells Fargo joins Goldman Sachs and JPMorgan and becomes the 3rd major US bank to decline credit or facilitate transactions for oil and gas projects in the Arctic region, including the Arctic National Wildlife Refuge.
According to a recent statement from Wells Fargo, “the decision is part of a larger 2018 risk-based decision to forego participation in any project-specific transaction in the region.” In December last year, Goldman Sachs has stopped financing for new oil projects in the Arctic area. The US bank also announced not to provide lending to companies whose revenues come predominantly from coal.

Eni and Sonatrach have completed the 185 km gas pipeline construction in the onshore Berkine basin.The pipeline connects the Bir Rebaa Nord and Menzel Ledjmet Est fields. When operating at full capacity, the gas pipeline will bring the production to a total of 7 million cubic meters of gas per day and 10,000 barrels of associated liquids. This, together with the oil development will allow a production of 65,000 barrels of oil per day. Eni has been in operation in Algeria since 1981, with an equity production of around 90,000 boepd.

The President of the central-northern Tyrrenian Port Authority Francesco Maria di Majo has recently met with Mise to discuss the reconverting of the Torrevaldaligia Nord coal plant.
During the meeting, di Majo has highlighted the importance of the gas reconverting of the plant to be accompanied by concrete measures such as the “Just transition fund”.

According to di Majo, the decarbonisation plan needs to go hand-in-hand with an ambitious Territorial Coordination Plan for the re-launch of the local economy.

Saudi Aramco has received the regulatory approval to go ahead with the unconventional gas field development of Jafurah, the biggest non-associated gas field in Saudi Arabia.
Jafurah will produce around 130,000 barrels per day of ethane, which is about 40 percent of the current production in the Kingdom and 500,000 barrels a day of gas liquids and condensates to be used as feedstock for petrochemical industries.

The unconventional gas field is approximately 170 kilometres long and 100 kilometres large. Production will start in early 2024.
In addition to being the most important oil producer in the word, Saudi Arabia will also become one of the biggest gas producers globally.

The restrictions related to coronavirus implemented in Kuwait do not cover oil sector traffic.

Due to coronavirus, the country has barred foreign ships but has excluded oil carriers from a ban on tankers departing and arriving from a number of countries.
At the moment, oil trade with Kuwait contiues uninterrupted and is therefore safe.
Also, Kuwait has asked Asian buyers to buy more oil for loading in March. Japan, together with China and South Korea are considered the biggest buyers of Kuwait’s crude oil.