Albania, Brazil and Croatia Oil and Gas Report Q2 2016; New Report Launched

Weak oil prices have essentially stalled exploration and development work in Albania's upstream, and will negatively impact production in 2016. Two key companies are also looking to exit their position in the country as investment is pulled back.

We highlight the following trends and developments in Albania's oil and gas sector:

• We have revised down full-year oil production for 2015 and our forecast for 2016 due to reduced investment in the upstream.
• Bankers Petroleum, the top producer has suspended its drilling programme over H116 due to low oil prices.
• Bankers will focus on its polymer flood programme and is targeting 16 well conversions in H216, though only if oil prices improve.
• As of January 2016, only one rig was operating in Albania, according to Baker Hughes.
• Petromanas sold its entire Albanian asset base to Shell in February 2016 for USD45mn.
• TransAtlantic is still in the process of marketing its entire Albanian portfolio, putting around 700b/d of oil production and the country's best gas prospect at risk.
• We now see no domestic gas production over our forecast, with the TransAtlantic's Delvina prospect delayed for years at best.
• The construction schedule of the Trans-Adriatic Pipeline (TAP) - traversing Albania on its route from Greece to Italy - remains on track for gas deliveries in 2020.
• The refining sector has seen little benefit from stronger global fuels demand. The country produces no gasoline which supported strong margins over the last 18 months.

For more information Visit at: http://www.marketresearchreports.com/business-monitor-international/albania-oil-and-gas-report-q2-2016

Brazil's vast pre-salt reserves suggest substantial growth potential over the long term, underpinning our bullish upstream view that crude, natural gas, and other liquids output will rise over the next decade. However, production growth will be limited by declining investment funds and continued fallout from the corruption scandal.

As such, we maintain a relatively modest outlook, reflecting our view that the above-ground environment remains a considerable obstacle to the upstream and downstream segments due to weakening project economics, waning investor confidence, and a burdensome regulatory environment.

The key trends and developments in the Brazilian oil and gas sector are:

• On January 12, Brazilian national oil company (NOC) Petrobras announced it had approved further reductions to its 2015-2019 Business and Management Plan (BMP), supporting our previously held view. This revision, revealing the third iteration of the five-year plan, represents a 17.5% decline from the version released in October of 2015 and a 24.5% reduction from the original version released in June 2015. These adjustments underscore the extent to which sustained market weakness has undercut the company's ability to execute its long-term plans.
• The start up of Petrobras's Cidade de Maricá floating, production, storage and offloading unit on February 16 is the first of three large-scale developments anticipated to begin in 2016. Located within the Lula Field in the presalt later of the deepwater Santos Basin, the project is expected to generate up to 150,000 bbl of oil along with 6mn cubic metres (mcm) of associated natural gas per day.
• Production growth of natural gas in Brazil will experience an uptick in 2016 but will be unable to maintain this trend through 2020. With NOC Petrobras under severe pressure to cut costs and operate within its existing cashflow, we believe projects included its five-year BMP will be subject to continued delays, limiting upside in the latter half of the decade.

For more information Visit at: http://www.marketresearchreports.com/business-monitor-international/brazil-oil-and-gas-report-q2-2016

Croatia's new government is likely to impose new restrictions on offshore drilling amid growing domestic opposition stemming from concern for the environment and tourism sector. This, alongside ongoing maritime boundary disputes, creates additional uncertainty for investors in Croatia's oil and gas sector. Progress on the Krk liquefied natural gas terminal continues and a final investment decision was expected mid-2016; a positive decision would see Croatia emerge as a regional energy hub.

The main trends and developments in Croatia's oil and gas sector are:

• Prime Minister Tihomir Orešković, who took office in January 2016, has expressed doubts over offshore drilling due to environmental concerns. Amid a growing backlash against offshore exploration, there is growing uncertainty facing the industry. Orešković has backed onshore exploration, but new regulations, and possibly even a ban on drilling in the Adriatic, are possible, though the government policy remains unclear. In addition to environmental opposition, contested maritime boundaries present further obstacles to investment, as evidenced by OMV and Marathon's decision to relinquish blocks awarded during an offshore bidding round.
• Uncertainty over the future of Croatia's nascent offshore oil and gas sector only reinforces the bearish prospects for reserves and production of both oil and gas. The absence of clarity on policy only exacerbates the impact of low oil prices, which will further discourage investment in Croatia's upstream sector, which is thought to have only modest upside potential.
• Croatia confirmed receipt of seven bids for a proposed LNG import terminal on Krk island. Officials indicated they hoped to make a final investment decision by mid-2016 and complete the project by 2019. Development of the terminal would position Croatia as a key source of alternative supply to imports of Russian gas. The project could also help to meet growing domestic demand for as domestic output continues to decline.

For more information Visit at: http://www.marketresearchreports.com/business-monitor-international/croatia-oil-and-gas-report-q2-2016