Africa

Refining Capacity Growth In Nigeria Will ‘Substantially’ Erode Exports

13 Dec 2017   Nigeria

Nigeria’s projected growth in refining capacity over the early 2020s will ‘substantially’ erode the country’s crude oil exports due to a ‘weak’ new project pipeline. Nigeria’s projected growth in refining capacity over the early 2020s will ‘substantially’ erode the country’s crude oil exports due to a ‘weak’ new project pipeline, according to a new report from BMI Research. While the report hailed the projected start up of the 650,000 barrel per day (bpd) Dangote refinery by 2020 and the potential of a second 250,000 bpd facility start up by 2021, oil and gas analysts at BMI highlighted that Nigeria may struggle to increase its oil production to meet new demand from these facilities, as well as sustain exports, as other countries have done. “Saudi Arabia has successfully managed this challenge, adding new capacity in 2013 and 2015, yet maintaining strong levels of exports,” the report stated. Nigeria however, has […]

Russia ready to consider easing arms embargo for Libya: Ifx cites diplomat

13 Dec 2017   Libya, Russia

Russia is ready to consider easing an arms embargo for Libya, the Interfax news agency cited Russian Deputy Foreign Minister Gennady Gatilov as saying on Wednesday. Libyan Prime Minister Fayez al-Sarraj said this month he was hopeful that a U.N.-imposed arms embargo would be partially lifted against some branches of the country’s military. The Libyan government is allowed to import weapons and related materiel with the approval of a U.N. Security Council committee overseeing the embargo imposed in 2011.

Uganda to Raise Shs300b for Crude Oil Pipeline

13 Dec 2017   Uganda

Japan’s Sumitomo Mitsui Banking Corporation Europe Ltd (SMBCE), Standard (Stanbic) Bank, and Industrial and Commercial Bank of China Limited (ICBC), the three financial advisors for France’s Total E&P, Uganda-Tanzania, and China’s Cnooc, are said to be carrying out “market sounds to gauge financing appetite” for the proposed East African Crude Oil Pipeline (EACOP). Officials familiar with the matter say the response is so far “positive” especially given that the technical Front-End Engineering Designs (FEED) for the 1,445km pipeline planned to run from Hoima to Tanzania’s southern Tanga Port are not yet in. The FEED study report, according to Total E&P, the lead joint venture partner on the project, is currently at compilation stage. The tender for FEED was awarded last December (slightly behind schedule) to Houston-based Gulf Interstate Engineering to examine the technical aspects to give a clear picture of the project, which is expected to pave way for […]

Nigeria: Petrol Depots Still Dry Despite NNPC’s Pledge to Flood Market

13 Dec 2017   Nigeria

Despite the pledge by the Nigerian National Petroleum Corporation (NNPC) to flood the country with petrol, most of the depots in Lagos were still dry at the weekend as the corporation’s imported cargoes were still to arrive the country, THISDAY has learnt. THISDAY, however, gathered that the queues experienced in some filling stations did not worsen, despite the tight supply. The queues resurfaced a week ago after some oil traders involved in NNPC’s Direct Sale-Direct Purchase (DSDP) contract flooded the market with diesel instead of petrol that was stipulated in their contract agreements. While the market became wet with diesel, there was a shortfall in the supply of petrol by the NNPC, which is majorly the sole importer of the product. The shortfall had fueled an allegation by the Independent Marketers Association of Nigeria (IPMAN) that the NNPC was undersupplying its members and giving priority to depot owners. IPMAN […]

Will Libya Be First To Ditch The OPEC Production Deal?

12 Dec 2017   Libya

Just two weeks after it pledged to cap its crude oil production at the level of 1 million barrels daily, Libya has sent a signal that it actually has immediate plans to raise this, according to media reports . In a rare meeting this weekend, the Prime Minister of the UN-recognized Government of National Accord met with the heads of the National Oil Corporation and the Libyan central bank to discuss funding for boosting crude oil production. As Reuters notes, the relationship between PM Fayez Seraj and the central bank governor, Sadiq al-Kabir Sadiq, have not been the best, with regular clashes over fiscal reform and monetary policy. The tension is significant as the central bank is where the income from crude oil exports—Libya’s principal revenue source—goes. To add to this, the overall political situation in the country remains unstable. This prompted analysts to factor in possible future oil […]

Big Oil Backs Away From a Former Industry Darling

9 Dec 2017   Angola

The boom in oil money helped crown Angola’s seaside capital, Luanda, as the world’s most expensive city. Angola was once a magnet for the world’s biggest oil companies, drawing billions of dollars in investment from BP PLC, Exxon Mobil Corp. XOM 0.13% and others back when crude prices were rising to $100 a barrel. Now, foreign companies have all but given up on new ventures there. BP PLC partially pulled out of an offshore block, taking a $750 million write-down this year. Halliburton Co. HAL 1.22% and other oil-service companies blamed falling revenue on declining activity in regions including Angola. Total SA of France is reshuffling personnel to cut costs while Italy’s Eni E 0.18% SpA is renegotiating service contracts. Energy companies have reduced capital spending in Angola more than in any other sub-Saharan African country, with an estimated $67 billion in spending cuts from 2015 to 2020, according […]

Nigeria Reforms Oil Sector To Draw New Investment

8 Dec 2017   Nigeria

The additional revenue generated from the reforms will be used to help balance the federal budget and encourage fresh investment in the energy industry. “The reform is aimed at increasing private sector equity participation to improve efficiencies in the sector and also provides revenue to the government, which will be deployed solely and exclusively for creating new assets in Nigeria,” a statement from the Debt Management Office (DMO) said. The idea of raising revenue by selling stakes in JV energy assets has been on the table for more than a decade but has always faced significant opposition. However, the plan was given fresh impetus in 2015, when the Central Bank of Nigeria (CBN) promoted the measure as a way to stimulate economic development and create jobs, offsetting the negative impact of falling oil prices. Sharper focus on inefficiencies and finances The proposals signal a significant change in the way […]

Shell Idles Six Nigerian Power Plants After Gas Shortage

8 Dec 2017   Nigeria

Nigeria’s lack of infrastructure is hampering the transportation of gas to power plants, and six plants are currently sitting idle in the country because they lack gas, according to Shell’s Nigerian unit, Shell Petroleum Development Company (SPDC). “The reason is because we have about six power plants in this country that are standing idle that are not getting gas. The reason why they are not getting gas, even though we are flaring 800million scuf per day is that we don’t have enough pipelines to deliver the gas to the power plants,” SPDC Senior Commercial Adviser, Upstream Gas, Emmanuel Anyaeto, said at a gas forum. Gas producers in Nigeria are owed some US$500 million, mostly by power companies, Anyaeto said , adding that the power companies in turn are also owed huge sums, mostly by the Nigerian federal government. The lagging payments to producers, as well as regulatory issues and […]

Exclusive: China’s Sinopec looking to sell Nigeria business – sources

7 Dec 2017   China, Gabon, Nigeria

China’s Sinopec Group has hired BNP Paribas ( BNPP.PA ) to sell its oil business in Nigeria and Gabon, three people with knowledge of the matter said, as the state-owned oil giant pares back its presence in Africa. Sinopec and other oil groups including China National Petroleum Corporation and CNOOC ( 0883.HK ) made large acquisitions between 2009 and 2013 with the help of low-cost loans from Chinese state-owned banks. Sponsored The hunt for overseas assets was intended to bulk up their energy reserves and meet future demand from China, the world’s second-largest economy. But oil prices fell to about $27 a barrel in 2016 from more than $100 in 2014, making some of these investments unprofitable. Benchmark Brent Crude oil LCOc1 is […]

Nigeria: Fuel Scarcity Throws Nigerians Into Panic

6 Dec 2017   Nigeria

Nigerians have been thrown into panic following the re-emergence of long queues at fuel stations in parts of the country. The situation, amid rumour of hike in pump price of petrol, sparked fear that the festive season could be marred by scarcity of the product. In Abuja, many motorists who closed from work yesterday were unable to buy fuel, as many stations were shut. At about 8 p.m., there was a long queue at the NNPC retail station along Kubwa Expressway that kept motorists waiting for hours. One buyer, Alabi Ajibola, said: “Most fuel stations have closed. I have been on the queue for about two hours. This should not be at this Christmas period.” Haruna Bashir, a commercial driver, said his side mirror was destroyed as he jostled to buy fuel. […]

Exxon eyes Egypt’s offshore oil and gas

4 Dec 2017   Egypt

Exxon Mobil ( XOM.N ) is considering a foray into Egypt offshore oil and gas, seeking to replicate rivals’ success in the country and boost its reserves, officials and industry sources said.  Officials from the world’s largest listed oil producer recently held talks with Egypt’s petroleum ministry to discuss investments in oil and gas production, known as upstream operations, Petroleum Minister Tarek El Molla told Reuters. Sponsored “We have been discussing with them, visiting them. They’ve visited us… We are exploring all opportunities for having more and further upstreamers in Egypt,” Molla said on the sidelines of an OPEC meeting in Vienna. “I would be happy to have them with us,” he said, adding that no decision has been made yet. Exxon declined to comment. The Irving, Texas-based […]

Nigeria Delta Protestors Shut Down Two Oil Wells

1 Dec 2017   Nigeria

Protestors shut down Adibawa wells 4 and 10, which feed into a flow station of the same name. Hundreds of demonstrators, comprising youths, elderly people, and women gathered to sing in solidarity and to demand power supply to their homes from the oil facility nearby. “We took the step as a last resort following several talks, the oil firm had given us hope but they later backed out by telling us that the transmission line to our community is not strong enough cannot carry the power,” youth leader Oyeso Atena said. “We have several oil wells here and merely shutting two of them have put the entire Adibawa flow station out of action, and that shows that without the oil wells from here, the flow station cannot fire and we are just asking that they give us electricity from that facility.” The oilfield in question […]

How Nigeria’s Oil Industry Went Local

30 Nov 2017   Nigeria

The biggest real-estate foreclosure in Manhattan’s history began with a Nigerian jet-fuel binge. Kola Aluko, now in hiding from the authorities of multiple countries, allegedly spent so much money on jet fuel that he could no longer pay the mortgage on his Midtown penthouse, which was consequently auctioned for $36 million in late 2017. Aluko is a central figure in criminal trials for money laundering and petro-business corruption now underway in Houston, Lagos, and London. Media coverage has, understandably, focused on the juicy details of his spending. Along with the penthouse, he owned a yacht that Jay Z and Beyoncé once rented for her birthday party, but now, on orders of a Nigerian court, sits idle with other seized cars and jets. A less-discussed byproduct of the alleged crimes committed by Aluko and his conspirators in the Nigerian government, however, is how they catalyzed what was possibly the largest […]

Can Nigeria And Libya Avoid A Production Cut?

30 Nov 2017   Libya, Nigeria

Beyond discussing the broader terms of the production cut deal, OPEC will crunch the numbers of exempt producers Libya and Nigeria this week to see if their oil production has recovered enough to justify asking or persuading them to join the pact with some sort of cap. However, the outlook for both countries’ future oil production is still clouded, as militant and civil strife hasn’t completely vanished, but has abated enough in recent months to allow the two African producers to boost their oil production to the highest in years. So while OPEC will likely discuss Libya and Nigeria’s production, it’s uncertain whether it will impose quotas or caps due to the still-tentative recovery and possible return of sudden outages due to militancy, sources and analysts tell Platts . At June’s end, Libya topped one million bpd of crude oil production for the first time in four years . […]

Israel, Egypt Said to Discuss Gas Exports

27 Nov 2017   Egypt, Israel

Egypt clarified that option to import Israeli gas still open Previous arbitration ruling remains an obstacle to deals A natural gas production platform west of the Ashkelon shore in Israel. Ministers from Egypt and Israel held a call last week to discuss the potential sale of Israeli gas to Egypt, according to a person with direct knowledge of the matter. Egyptian Oil Minister Tarek El-Molla and Israel’s energy minister, Yuval Steinitz, spoke after an interview El-Molla gave to Bloomberg earlier this month sent shares of Israeli gas companies tumbling on speculation Egypt would halt talks on buying gas from Israel, the person said. El-Molla told Steinitz that Israeli gas exports to Egypt, which would be carried via pipeline, are still on the table, the person said. Shares of Israeli gas producers extended their gains, with Delek Group Ltd. closing 6.9 percent higher in Tel Aviv on Sunday. El-Molla said […]

Nigeria Makes First Step Away From Oil

25 Nov 2017   Nigeria

Nigeria’s state oil company is venturing into renewable fuels with a contract that will see a bioethanol plant built in the state of Kebbi, in northeastern Nigeria. The plant will have a capacity to produce 84 million liters of bioethanol derived from cassava and sugarcane. This is the second such contract that NNPC has signed with state governments this month. Earlier, the state oil company inked a preliminary contract with the government of Ondo state for a 65-million-liter bioethanol plant, to use cassava as feedstock. That project, according to NNPC’s group managing director Maikanti Baru, would also involve foreign investments. The idea of developing a biofuels industry in Africa’s top crude oil producer was originally announced by the federal government back in February, with a plan to establish a fund of US$50 billion to develop biofuels production. The funds will be provided to a Bieofuels Equity Investment Fund, which […]

Nigeria: Reps Kick Against Nigerian Govt’s Plan to Spend $1.8 Billion On Refineries

24 Nov 2017   Nigeria

The House of Representatives has criticised a bid by the Nigerian National Petroleum Corporation, NNPC to spend $1.8 billion on the maintenance of the refineries across the country. In a motion by Ibrahim Isiaka (Ogun – APC) at the plenary on Tuesday, he queried the viability of further expenditure on the country’s four refineries and the daily allocation of 445,000 barrels of crude to the facilities as they perform poorly. “The House is cognisant that sums of $308 million, $57 million, $200 million, and lately, more than N264 billon were spent on refineries, yet it was reported that the NNPC is seeking $1.8 billion to carry out another TAM (Turn Around Maintenance) to make the refineries attractive to investors.” He added that the federal government’s efforts to bring in private investors to build refineries had not yielded the desired result. “Despite major paradigm shift and consideration of different reliefs, […]

Gambia emerging as new oil frontier

22 Nov 2017   Gambia

West African explorer FAR Ltd. said Tuesday that an independent audit has uncovered at least 1 billion barrels of oil offshore Gambia. FAR Ltd., an Australian company with a strong portfolio offshore West Africa, said an audit of geotechnical data show the Samo and Bambo prospects off the coast of Gambia hold combined best estimate prospective reserves of 1.1 billion barrels. According to the data, the Sama prospect in particular holds substantial promise, with an estimated chance of success of more than 50 percent. Managing Director Cath Norman said in a statement that Gambia could be a “huge prize” if data analysis turn into real barrels. “Given the eight successful wells drilled on the shelf to date in Senegal and […]

Nigeria: Again, Militants Threaten Proposed Pandef Meeting in Warri

21 Nov 2017   Nigeria

The Reformed Niger Delta Avengers (RNDA), has again kicked against the proposed Tuesday meeting of the Pan Niger Delta Elder Forum (PANDEF) in Warri, Delta State, describing the meeting as a threat to the peace in the region. Security operatives had a few weeks back disrupted a similar meeting of PANDEF at Hotel Presidential, Port Harcourt, Rivers State, citing threat by the ex-militants to stop the meeting and resume bombing of critical infrastructure in the region. The RNDA, whose members the leader of PANDEF, Chief Edwin Clark, had always described as ‘ laptop militants’, reiterated the rejection and disbandment of the Clark led group, warning that if the Federal Government allows the meeting to hold, there would be a series of coordinated attacks on oil and gas pipelines. Led by John-Mark Ezonbi, the group said it arrived at the decision after a meeting held along the creeks […]

Libyan wealth is wasted, U.N. envoy says

18 Nov 2017   Libya

The humanitarian situation in Libya is in a severe state even though the OPEC-member sits on “vast wealth,” a United Nations envoy said. Ghassan Salamé, the U.N. special envoy for Libya, told members of the Security Council the situation in Libya has not improved much since the end of Moammar Gadhafi’s regime in 2011. The envoy testified that, at one point, Libya was one of the top humanitarian donors to Africa, but can now barely take care of its own needs. “It is outrageous that a country which stands upon such vast wealth has so many suffering,” he said. “However, it does, and so we must [help] them tackle the urgent concerns.” Libya is a […]

Nigeria: Militant Group Threatens Attack On SPDC Facilities

17 Nov 2017   Nigeria

Supreme Egbesu Tigers of Africa, a militant group in the Niger Delta region, yesterday, threatened to attack oil and gas facilities belonging to Shell Petroleum Development Company, SPDC, in Ekeremor Local Government Area of Bayelsa State, for allegedly neglecting the local content law in the state. The group, in a statement by its spokesperson, Mr. Ogoun Tensighan, also issued two weeks ultimatum to the company to involve the Amabuluo Federated Communities in its operational activities in the area, failure of which it would carry out its threat. Describing the attacks by the Niger Delta Avengers as “child’s play” compared to its planned attack, Tensighan said: “The silence of the group should not be taken for granted as we are determined to make the region uninhabitable for the oil company to operate. “We have watched with patience the impudence of some individuals from Egbemagalabri community to undermine the people of […]

Nigeria: Crude Oil Suffers Setback As More Traders Opt for U.S. Blend

17 Nov 2017   Nigeria

Nigeria’s crude oil is under serious pressure at the international market, as Asian refiners have increasingly been moving away from their usual favourite, frequently opting for United State (U.S) crude oil, the Organisation of the Petroleum Exporting Countries (OPEC) has said. Besides, Nigeria’s crude oil production declined by 54,200 barrels per day (bpd) from the 1.792bpd it recorded in September to 1.738 bpd in October. OPEC, which made this disclosure in its November monthly oil report yesterday, said Taiwan’s latest tender showed Asians’ more appetite for U.S. crude oil and this would eventually lead to overhang of Nigeria’s crude oil. It noted that differentials for Nigerian crude were also under pressure on low U.S. refining demand and with Chinese refiners increasingly switching their slate to use more U.S. crude over the last few months. OPEC disclosed that during the month under review, trade was limited and some tenders that […]

Africa’s richest woman removed as head of Angola state oil group

16 Nov 2017   Angola

Angola’s president João Lourenço has dismissed Africa’s richest woman, Isabel dos Santos, as head of the country’s state oil company, in a bold move to wrest power from the family of the country’s former leader. The daughter of former president José Eduardo dos Santos, who stepped down ahead of elections in August after 38 years in power, had run Sonangol for just under 18 months, having been appointed by presidential decree in June 2016. The move to replace her with the secretary of state for oil, former Sonangol executive Carlos Saturnino, underscores Mr Lourenço’s apparent determination to move swiftly against the old regime and to establish his own power base.

Until now, a series of moves against allies of the former president had been variously interpreted as the first signs of something bigger or choreographed theatre cooked up with Mr dos Santos, who is still head of the ruling Popular Movement for the Liberation of Angola (MPLA), to give the perception of change. But the move to replace Ms dos Santos, alongside six other Sonangol board members, is the first direct assault on the patronage of the Dos Santos family, taking control of an energy industry that has been the primary source of Angola’s wealth since the end of its brutal three decade-long civil war in 2002.

“This is the big one,” said Ricardo Soares de Oliveira, an Angola specialist at Oxford university. “It’s no longer cosmetic changes.” Since taking office in September Mr Lourenço has replaced the head of the central bank, Angola’s government-backed diamond company and the boards of all three state-run media companies.

African Americans Face Higher Health Risks from Oil, Gas Pollution

A new report suggests that African Americans face disproportionate health risks than other races due to pollution from oil and gas. The health risks for African Americans caused by environmental pollution from oil and gas are elevated compared to other races, a November 2017 report by the Clean Air Task Force (CATF) and the National Association for the Advancement of Colored People (NAACP) said. According to the report, more than one million African Americans live within a half mile of existing natural gas facilities, resulting in African American communities facing a higher risk of cancer due to toxic air emissions from natural gas development. “More than one million African Americans live in areas where toxic air pollution from natural gas facilities is so high that the cancer risk due to this industry alone exceeds EPA’s level of concern,” the report found. Citing previous reports by CATF, the most recent […]

Another Group Joins Niger Delta Avengers’ Ceasefire Boycott

11 Nov 2017   Nigeria

Another militant group in the Niger Delta has vowed to break its truce against the Abuja government and restart attacks on oil and gas infrastructure in the area, according to a report by Vanguard on Friday . A spokesperson from the Niger Delta Revolutionary Crusaders ordered workers on floating production storage and offloading facilities on or near Agbami, Akpo, Usan, Erna, Abo, Yoho, Unity and Benga to evacuate the area. Other platforms operated by Chevron, Total, Mobil, Shell and Agip are also under threat, the note said, adding that the workers’ safety “can no longer be guaranteed by the gods of the rivers and land.” Another group, The Niger Delta Avengers, announced its plan to rescind its participation in the ceasefire last week, with the following threatening statement: “Our next line of operation will not be like the 2016 campaign which we operated successfully without any casualties; this outing […]

Kenya Set To Give Local Communities Greater Share Of Oil Revenues

11 Nov 2017   Kenya

Kenya plans to allocate 30 percent of future oil revenues to the community where the crude oil has been discovered, backtracking on a previous proposal to cap revenues at specific amounts in what analysts see largely as a political move. Commercial quantities of crude oil in Kenya were discovered in 2012 in the far northern county of Turkana. Tullow Oil, which discovered the resources, has continued its exploration and appraisal drilling campaigns in Kenya, and an initial assessment indicates recoverable resources of up to 750 million barrels of oil . Tullow Oil is currently reviewing the data from the South Lokichar basin and plans to announce its assessment of contingent resources as well as its plans for developing the basin in the first quarter of 2018. Kenya’s government initially wanted to cap the revenue sharing to the equivalent of US$213 million (22 billion shillings) for the local county government […]

Nigeria’s Bonny Light crude at 3-month high on steadier exports

11 Nov 2017   Nigeria

Nigeria’s Bonny Light crude has seen its price rise to its highest levels since February, as the grade began to trade in a more regular fashion in the spot market following several months of disruption due to loading delays and forces majeures. S&P Global Platts on Thursday assessed Bonny Light at a premium of 60 cents/b versus the West Africa Dated strip. The grade last hit this value mid-August and was last higher February 21, when it was assessed at 65 cents/b. Bonny Light differentials have been depressed compared with other Nigerian crudes over the course of 2017, which traders have attributed to the unreliability factor of the grade. Terminal Operator Shell has declared force majeure on Bonny Light loadings three times in 2017, the most recent being between September 16-October 19. As a result, typical buyers of Bonny Light have moved to other grades. Similar grade Qua Iboe […]

Nigeria: Another Militant Group Shelves Ceasefire in Niger Delta

10 Nov 2017   Nigeria

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More oil expected from offshore West Africa

9 Nov 2017   West Africa

West-African explorer Tullow Oil said Wednesday it raised its expectations for production following a string of successes off the coast of Ghana. Tullow, which has headquarters in London, is tapping into the Jubilee oil field and the Tweneboa, Enyenra, Ntomme complex offshore Ghana, some of the more promising basins in West Africa. Tullow CEO Paul McDade said his business was drawing down some of its debt and generating free cash flow. “We have upgraded our oil production forecasts for West Africa following strong production at both Jubilee and TEN,” he said in a statement . The company said it now expected to produce between 85,000 and 89,000 barrels of oil per day from its portfolio, an upward revision of about […]

Nigeria: Govt, Delta Appeal to Avengers for Patience

8 Nov 2017   Nigeria

The federal and the Delta State governments Monday appealed to the Niger Delta Avengers (NDA) to put paid to its threat at the weekend to resume hostilities in the oil-rich region, admitting that their demands were in tandem with the development plans for the region. Making this appeal at the State House, Abuja, after a meeting with President Muhammadu Buhari, the Minister of Niger Delta, Mr. Usani Uguru, said the federal government is committed to the development of the region, citing a recent presidential directive for the take-off of the Maritime University, Okerenkoko, with N5 billion as one of such commitments. His appeal came just as the British Foreign and Commonwealth Office (FCO) confirmed Monday that one of the British hostages, Mr. Ian Squire, who was kidnapped last month in Delta State, has been killed and three others freed. Squire was one of four Britons abducted by suspected militants […]

Algeria Invests $2 Billion Into Hassi Rmel Gas Field

7 Nov 2017   Algeria

Algeria’s state energy firm Sonatrach on Monday started $2 billion of new investments into the Hassi Rmel gas field to keep production stable at the country’s biggest gas field. “The objective is to maintain the 190 million cubic metre output for the next 10 years,” Chief Executive Abdelmoumene Ould Kaddour told reporters at the site. Hassi Rmel gas field represents 60 percent of Algeria’s total gas output. It produces between 190 and 210 million cubic metre per day but Sonatrach needed to invest into the field’s compression facilities to maintain output, Kaddour said. “This is a strategic project for us, we need to make sure it will come online 2020. Delays are unacceptable,” he added. […]

Libyan state oil firm confirms “security breach” at El Sharara oilfield

7 Nov 2017   Libya

Libya’s state oil company said on Monday there had been a “security breach” at its southern El Sharara oilfield on Sunday night.  NOC blamed weak security for the incident at a facility called 186 station, according to a statement posted after a NOC meeting that discussed the event. It gave no details of the incident and did not say whether production had been affected. Sponsored An engineer at the field said unknown people had attacked the station and stolen company cars and phones from employees. The El Sharara field lies deep in Libya’s south that is gripped by insecurity. It has closed several times due to protests by security guards asking for salaries or other groups, part of turmoil in the North African country since 2011. Last week, […]

Nigeria supports OPEC cut extension under ‘the right terms’

7 Nov 2017   Nigeria, OPEC

Nigeria supports an extension of a deal between OPEC, Russia and other non-members to cut oil supply until the end of 2018 “as long as the right terms are on the table” regarding its own participation, its oil minister said. Nigeria’s Minister of State for Petroleum Emmanuel Ibe Kachikwu talks about an OPEC cut extension during an intrerview with Reuters in Abuja, Nigeria November 6, 2017. REUTERS/Afolabi Sotunde He said there is growing agreement among other members of the Organization of the Petroleum Exporting Countries to extend the deal. Sponsored “There isn’t any reason to change what is a winning formula,” oil minister Emmanuel Ibe Kachikwu told Reuters, adding “there is a consensus to extend. The issue will be the duration.” Nigeria itself, however, is exempt from the deal. OPEC, along with Russia and nine other producers agreed to cut oil output by about 1.8 million […]

There will be blood, Nigerian militant group warns

4 Nov 2017   Nigeria

To the international oil companies working in the Niger Delta region of Nigeria, a militant cease-fire is officially over, the Niger Delta Avengers said Friday. “Our next line of operation will not be like the 2016 campaign which we operated successfully without any casualties,” spokesman Murdoch Agbinibo said in a statement . “This outing will be brutish, brutal and bloody.” It’s been nearly a year to the day since the group took credit for an attack on oil infrastructure in the Niger Delta region. The last time it took credit for an attack of note was during the second week of November 2016 when it said its rebel forces attacked an export pipeline controlled in […]

Decent labor figures, Nigerian oil threats, boost oil prices

4 Nov 2017   Nigeria

 Steady improvements in the U.S. labor market, coupled with militant threats against a major OPEC producer, helped support a soft rally in oil prices Friday. The U.S. Labor Department reported Friday that total non-farm payrolls jumped 261,000 last month, with food services and restaurant employment offsetting any of the declines that came as a result of Hurricanes Irma and Harvey. That beats the estimate early this week from payroll processor ADP, which reported private-sector employment increased by 235,000 from September to October The federal government added that those employed part-time because of economic reasons declined by 369,000 in October, another indication of post-hurricane resilience. More jobs means growing demand for energy products, something traders are watching for in oil […]

Nigeria’s ‘Delta Avengers’ militants end oil hub ceasefire

4 Nov 2017   Nigeria

A Nigerian militant group whose attacks on energy facilities in the Niger Delta last year helped push Africa’s biggest economy into recession said on Friday it had ended its ceasefire. The Niger Delta Avengers announced a halt to hostilities in August 2016, although they carried out attacks in October and November last year. “Niger Delta Avenger’s ceasefire on Operation Red Economy is officially over,” the group said on its website ( www.nigerdeltaavengers.org/ ). “Our next line of operation will not be like the 2016 campaign which we operated successfully without any casualties; this outing will be brutish, brutal and bloody,” it said in a section of its statement addressed to oil companies. The move threatens Nigeria’s fragile economic growth and poses […]

Libya Loses 50,000 BPD In Production As Protests Continue

3 Nov 2017   Libya

The Libyan National Oil Company (NOC) said it was “very concerned” about the development of events in the area, adding notes that Wintershall had been reducing production without official notification. Libya is one of two African countries that have been allowed to take advantage of an exemption since January, when the Organization of Petroleum Exporting Countries began their deal to reduce supplies to the glutted market. Since the deal went into effect in January, both Nigeria and Libya have been recovering their capacity, making it harder and harder to justify their special treatment in the cartel. Several members in the bloc have made their opinions heard about the situation, but so far, no rumors about a change in status for the African duo have been heard. Despite the recovery in Libyan oil production over the course of 2017, Libya’s National Oil Corporation (NOC) has been able to […]

Nigeria: Judge Throws Out Diezani’s Application to Facilitate Her Return From UK

2 Nov 2017   Nigeria

A Lagos Federal High Court has dismissed an application filed by Diezani Alison-Madueke, former Minister of Petroleum Resources, that she be joined as a defendant in an alleged N450m fraud case in Nigeria. The judge, Justice Rilwan Aikawaon, Wednesday rejected her application which he said was bizarre and misuse of court processes, stressing that he would not allow himself to be used to frustrate Diezani’s imminent trial in the United Kingdom, where she currently under investigation and on bail. Alison-Madueke, who is currently in London where she is being investigated for money laundering, is seeking an opportunity to defend the allegations in a charge filed against her, Mohammed Belgore, SAN, and a former Minister of National Planning, Abubakar Sulaiman. The Economic and Financial Crimes Commission (EFCC) on Monday opposed the application filed by Diezani Alison-Madueke, seeking to be joined as a defendant in a N450m fraud charge before Justice […]

FAR Ltd. said Senegal oil may be its priority next year

1 Nov 2017   Senegal

Most of next year’s budget for Australian energy company FAR Ltd. will focus on Senegal, where Cairn Energy serves as the operator.  The majority of the budget for 2018 will be targeted to the development of major oil discoveries off the coast of Senegal, FAR Ltd. said Tuesday. FAR Ltd. is working alongside partners tapping the emerging basins off the coast of West Africa. The broader West African basin is gaining a reputation as an emerging producer and Senegal in particular could hold more than 1.5 billion barrels of oil off its coast The Australian company in an update on first-half operations said that, as of June 30, it had more assets than liabilities, with cash and cash equivalents of $91.3 million on hand. FAR is committed to $14 million toward the development of Senegal’s offshore oil. “The majority of […]

Nigeria: Oil Spill Victims Sue Shell in UK Over Alleged $3.6 Bn Compensation

1 Nov 2017   Nigeria

Oil spill victims under the aegis of Oil Spill Victims Vanguard (OSPIVV) have initiated a lawsuit in the United Kingdom against Shell Nigeria Exploration and Production Company (SNEPCO), a subsidiary of the Royal-Dutch Shell Plc., over alleged $3, 600,191, 206 compensation to 168,000 persons and 350 communities affected by the December 20, 2011 spill from its Bonga Oil Field in Delta State. The group’s Executive Director, Harrison Jalla in a statement, said the move was to ensure accelerated hearing and justice. He said: “We have filed a pre-action notice on September 21, 2017 in the TCC High Court of Justice in London through our lawyers, Johnson & Steller Solicitors of Handover Square, Mayfair on behalf of the victims and communities affected by the Bonga Oil Field spills of December 20, 2011 when Shell Nigeria Exploration and Product Company (SNEPCO), due to equipment failure in their Bonga Oil […]

Oil gives short-term life to African economies, IMF says

31 Oct 2017   Africa

The economies of sub-Saharan Africa get some support from oil production in Nigeria and elsewhere, though it flattens out by 2019, the IMF said Monday. The International Monetary Fund said in a regional report that the downturn for the economy is easing, with growth expected to improve from last year’s 1.4 percent rate to 2.6 percent. “Growth is expected to reach 2.6 percent in 2017, but the pickup reflects one-off factors, notably a recovery in oil production in Nigeria and the easing of drought conditions in eastern and southern Africa,” the report read. Nigerian crude oil production averaged 1.85 million barrels per day in September, according to economists with OPEC. That’s up 7.4 percent from July. The national economy came out of recession during […]

Exclusive: Chad wants to cut off Glencore’s oil supplies in debt row

31 Oct 2017   Chad

Chad is on a collision course with top creditor Glencore as it wants to divert oil from the Swiss trading house to U.S. energy company ExxonMobil from the new year amid a dispute over debt restructuring.  A government document showed that Chad wants to hand over crude oil marketing rights currently held by Glencore under a $1.4 billion loan agreement to Exxon, the biggest oil producer in the Central African country. Three government and industry sources confirmed the details. Sources close to Glencore say they believe the contract does not allow such a change. Under pressure from the International Monetary Fund, Chad is renegotiating its hefty external commercial debt, namely to Glencore, which eats up nearly all of its oil profits […]

Nigeria: 26 Firms Bid to Overhaul Nigeria’s Refineries – Govt

26 Oct 2017   Nigeria

The Nigerian government has disclosed that 26 firms have shown interest in the plan to overhaul the nation’s oil refineries. The Minister of State for Petroleum Resources, Ibe Kachikwu, made this known at an oil conference in Cape Town on Tuesday. Mr. Kachikwu said the 26 firms had indicated their interest in the project that will require investment of $2 billion. He explained further that Nigeria was close to finalising the process for the overhaul of the three existing refineries, adding 450,000 bpd as part of the effort by Africa’s biggest economy to reduce its reliance on imports. “We are almost at a threshold of finalising the process of selection,” he said, adding that it could announce its selection by January or February. Similarly, the minister said that the Dangote Refinery with capacity to process 650,000 barrels per day (bpd) of oil being built in Nigeria is due to […]

OPEC’s Newest Member Looks To Raise Oil Production

25 Oct 2017   Guinea

OPEC’s newest member country, Equatorial Guinea, is seeking to lift its crude production after smaller oil companies acquired stakes in offshore oil fields operated by U.S. Hess Corporation, Equatorial Guinea’s Minister of Mines, Industry and Energy, Gabriel Mbaga Obiang Lima, told Bloomberg in an interview published on Tuesday. On Monday, Hess Corporation said that it had entered into an agreement to sell its interests in offshore Equatorial Guinea to Kosmos Energy and Trident Energy for a total consideration of US$650 million , effective January 1, 2017. Hess holds an 85-percent paying interest and is operator of the fields, while Tullow Oil holds a 15-percent paying interest, and the Republic of Equatorial Guinea holds a 5-percent carried interest. The sale is part of Hess’s strategy to invest in higher-return assets and divest more mature, higher-cost assets, while Kosmos Energy sees the deal as capturing “a material position in proven but […]

Nigeria: Oil Spills Lead to Increased Newborn Mortality in the Niger Delta

24 Oct 2017   Nigeria

Researchers from the University of Sankt Gallen have found that neonatal mortality rises if a child’s mother lives close to an oil spill before conception. Niger Delta resident Annkio Briggs still remembers the days when she could simply draw water from her family’s well without having to worry about it being contaminated. “I grew up drinking water from a well in my grandfather’s house. We just used to take a clean bucket, lift water up and drink it”, Briggs, now an environmental campaigner, told DW. “Nowadays the water is polluted. I cannot drink it anymore, although it is a natural source meant for me and my people”, the 65 year old said. He has since resorted to buying bottled water. Persistent spills in Nigeria’s oil producing region have not just contaminated water resources. Residents are also exposed to harmful chemicals found in crude oil through direct skin contact or […]

Wood Mac: Africa has oil potential, but progress will be slow

23 Oct 2017   Africa

Sub-Saharan African oil producers may be among the more promising emerging players, though a downturn in investments is striking a blow, analysis finds. Nigeria is a member of the Organization of Petroleum Exporting Countries and one of the more established producers in the region. At least three new projects there are expected to start production within the next three years and, according to new analysis from consultant group Wood Mackenzie , new developments from Sub-Saharan Africa could commercialize 13 billion barrels of oil equivalent reserves before the end of the decade. Nigerian crude oil production averaged 1.85 million barrels per day in September, according to economists with OPEC. That’s up 7.4 percent from July and the national economy came out of […]

Libyan oil production gains limited

21 Oct 2017   Libya

War damage to port facilities in Libya could constrain production to around 1.25 million barrels per day, analysis from consultant group Wood Mackenzie found. Secondary sources reporting to the economists at the Organization of Petroleum Exporting Countries said Libya produced an average 923 million barrels of oil per day last month, down from the July peak of 1 million bpd. “Wood Mackenzie believes Libya may now be reaching its near-term production limits and future growth will be gradual,” the consultant group said in an emailed report. In early October, the EUobserver, citing a “restricted” report from the European Union’s Border Assistance Mission in Libya, described lingering fractures remaining in Libya six years after civil conflict led to the death […]

Shell Restarts Bonny Light Exports

21 Oct 2017   Nigeria

Shell Nigeria has lifted the latest force majeure off its Bonny Light exports, which was introduced a month ago after a leak was discovered in one of the two pipelines that carry the grade to the company’s Bonny export terminal. This was the latest in a string of force majeure events over the last year for the crude oil grade, prompted by either bombings of pipeline infrastructure or other issues such as vandalism and oil theft. The grade is widely used by European and American refineries, which makes Bonny Light an important source of revenues for Nigeria. Normally, Shell exports around 230,000 bpd of Bonny Light crude from the Bonny Island terminal. The repeated force majeures have disrupted the normal rate of operation of the terminal, and for now it remains unclear how much Bonny Light Shell’s Nigerian subsidiary will export in the next two months. The Bonny Light […]

Nigeria: Senate Partners Russian Oil Giants to Develop Nigeria’s Oil and Gas

21 Oct 2017   Nigeria

The Senate said on Thursday that it had began talks with Russian oil companies for partnership to develop Nigeria’s oil and gas sector. Disclosing this in an interview with newsmen in St. Petersburg, Russia, Chairman, Senate Committee on Oil and Gas, Sen. Bassey Akpan, said it was time Nigeria sought support to further develop the sector. Akpan is part of President of the Senate, Dr Bukola Saraki’s delegation to the 137th Inter-Parliamentary Union (IPU) Assembly in Russia, who met with the oil firms. “We came here as part of the delegation of the Senate to consult with the Russians as regards development of Nigerian oil and gas. “You are aware we are working on the Petroleum Industry Bill (PIB) and I can confirm to you that they are very much interested in partnering Nigeria as regards development of oil and gas. “One thing the visit has endeared in us […]

Nigeria: Shell Lifts Force Majeure On Bonny Light Exports

21 Oct 2017   Nigeria

Barely two days after Aiteo Eastern Exploration and Production Company announced the completion of repairs of the Nembe Creek Trunkline (NCTL), Shell Petroleum Development Company (SPDC) thursday lifted force majeure on exports of Bonny Light crude. The NCTL and the Trans-Niger Pipeline (TNP) are the two major pipelines used by SPDC and some other producing companies to evacuate crude from the eastern Niger Delta to the Bonny export terminal. The 600,000 barrels per day capacity, 100-kiloemtre NCTL built by SPDC and inaugurated in 2010, was sold by the oil major to Aiteo in 2015 as part of the divestments of its onshore assets. But even though SPDC handed over the ownership and operatorship of the asset to the indigenous firm, the multinational company and other producers have continued to utilise the pipeline for crude evacuation. Shell had declared force majeure on Bonny exports a month ago after Aiteo shut […]