Sunday, October 25African Business News
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Oil & Gas

Amidst climate concern, stakeholders insist oil key to Africa’s future

Amidst climate concern, stakeholders insist oil key to Africa’s future

Oil & Gas
• Growing population, dearth of investment, others worry experts   Stakeholders in Africa’s energy sector have insisted that crude oil still has a major role in the continent’s future despite growing concern over climate change. The stakeholders, who gathered at the African Refiners Association (ARA) Week 2020, however, stressed the need for clean energy transition and climate change mitigation policies to address looming challenges. They also called for investments that would enable the region to achieve a proposed 10ppm (parts per million) sulphur fuels for the pan-African transport sector by 2030. This calls for upgrade of refineries, while stringent regulation should be placed on imported petroleum products. Global think tanks, including S&P Global Platts...
NNPC, stakeholders express concerns over E&P future

NNPC, stakeholders express concerns over E&P future

Oil & Gas
Nigerian National Petroleum Corporation (NNPC), and stakeholders in the upstream sector have expressed concerns over the impact of the Covid-19 on oil and gas exploration and production in the country, as major oil companies continue to reduce investment in the sub-sector.Recall that amid low crude oil price, the future of thousands of upstream projects estimated at about $160billion in Nigeria alone has remained uncertain, as companies struggle to stay afloat. Indeed, Managing Director of NNPC’s Integrated Data Services Limited (IDSL), Ferdinand Bariwei, is particularly worried about operational inefficiencies, adoption of new technologies and processes, to enhance productivity, reduce waste and improve system efficiency. Speaking at a webinar organised by Energy & Corporate Afr...
‘FG aggressively developing gas-to-power infrastructure, exploration’

‘FG aggressively developing gas-to-power infrastructure, exploration’

News, Oil & Gas
The Group Managing Director, Nigeria National Petroleum Corporation (NNPC), Mele Kyari, has said the Federal Government is aggressively pursuing other gas development initiatives to improve Nigeria’s current utilization of alternative fuels as well as stimulating gas demand and power generation in the country. Kyari, at the virtual Businessday Future of Energy Summit, also said the NNPC is making concrete efforts to expand natural gas resource exploration, noting that it would capitalize on its experience on key players in the industry to grow production efficiently, leveraging technology acquisition, and project financing across the value chain.   This is even as the Minister of State for Petroleum Resources, Timipre Sylva, hinted that the abundance of natural gas resour...
Fresh concern over contract secrecy in Nigeria’s oil, gas sector

Fresh concern over contract secrecy in Nigeria’s oil, gas sector

Oil & Gas
The secrecy shrouding terms and conditions of contracts in Nigeria’s extractive sector has, once again raised concern for stakeholders, especially as the country fights corruption.   Although a signatory to the London Anticorruption Summit, and the Open Government Partnership, as well as Extractive Transparency Initiative, over 20 civil society organisations insisted that the current practice in which contracts entered into by government are negotiated and held in secrecy negates the globally-accepted practice. In a communiqué obtained by The Guardian, stakeholders decried the lack of transparency and accountability, noting that the sector was still exposed to corruption, unfavourable contracts, and revenue losses to the nation. They group called for the development, a...
High inventories weigh on oil markets, refiners as demand weakens

High inventories weigh on oil markets, refiners as demand weakens

Oil & Gas
The slow pace of global oil demand recovery has stalled in recent weeks of weak refining margins, lack of recovery in jet fuel demand, and uncertainties over global economic growth, including the world’s top oil importer, China, the International Energy Agency (IEA), has warned. Indeed, while most of the market’s attention has been focused on how fast gasoline demand will recover, lower economic and manufacturing activity in all regions of the world has led to oversupply in distillates, including diesel, gasoil, and jet fuel. Faced with an unprecedented crash in jet fuel demand amid the pandemic, refiners have geared toward making more of the other distillate fuels, whose stocks have risen to levels not seen in decades. The glut in diesel and other middle distillates has becom...
OPEC adjusts oil demand to 8.9 million bpd

OPEC adjusts oil demand to 8.9 million bpd

Oil & Gas
The Organization of the Petroleum Exporting Countries (OPEC), yesterday, revised downward its world oil demand in 2020, to an estimated 8.9 million barrel per day (bpd) adjusting it up by 0.1 million bpd against last month’s projection. OPEC’s projections enclosed in its July Monthly Oil Market Report, comes amid uncertainties clouding the extension of production cuts earlier agreed with allies to stabilise the market, as some analysts forecast price, insisting extension of the cuts may be suicidal. This week, OPEC+ is expects to hold a committee meeting to assess the status of the oil market and decide on its next steps. The cartel currently agreed on a 9.7 million bpd cuts, which expires at July end and likely to be reduced further to 7.7 million bpd. OPEC said the upward revisi...
Second wave of pandemic poses risks to oil rebound

Second wave of pandemic poses risks to oil rebound

Oil & Gas
As countries brace for a second wave of the coronavirus spread, analysts have warned that an unexpected hit to demand could derail oil prices, as producers are yet to reduce their stock builds in the last quarter. Similarly, warnings of massive storage build-ups have re-affirm fears that the worst may not yet be over for oil prices. Analysts at Cordros Capital and S&P Platts warned that any shock to demand will present quite a conundrum for an already stretched OPEC+. In the wake of the lockdown in April, Nigeria had in a desperate effort to offload and sell stranded barges of oil, offered oil traders huge discounts on its crude grades below the $10 mark, as glut and energy imbalance triggered by the COVID-19 hit the oil industry. Brent Crude traded lower ye...
Federal Government hopeful of $5.7 billion investment from marginal fields

Federal Government hopeful of $5.7 billion investment from marginal fields

Oil & Gas
If the Federal Government succeeds with its on-going bid rounds for the 57 marginal oilfields being offered to investors, it might be able to attract about $5.7billion into the economy. Although the Department of Petroleum Resources (DPR) did not put a specific cost to each oilfield, the regulator however said the fields have lower cost of investment of between $50 and $100 million, and risk of development compared to major capital projects. If it successfully gets investors to stake the maximum on the oil fields, the 57 fields may earn Nigeria additional $5.7billion, an income higher than the loans the Federal Government sought from the Bretton Woods institutions within the last few months to address the effects of the coronavirus pandemic. While awaiting fresh World Bank loa...
Oil production threatened by non-compliance to COVID-19 protocols

Oil production threatened by non-compliance to COVID-19 protocols

Oil & Gas
Nigeria’s ability to meet its monthly oil production quota and revenue target may become hampered if rising cases of coronavirus in offshore oil fields are not addressed. With the country suffering huge revenue losses from decline in oil prices since March, and inability to sell its crude during the lockdown, there are fears that production may be disrupted with the spread of the virus in oil fields locations. Offshore production accounts for more than 60 per cent of Nigeria’s 2.10 million-2.20 million barrels per day (b/d) crude and condensate output. Yesterday, Nigeria’s Bonny light rose by 2.36 per cent to close at $42.93 per barrel at 4:17pm local time. Nigeria’s oil receipts have continued to drop with the country’s revenue from the sector falling by N425.52billion in th...
Expert seeks passage of regulatory framework for gas development

Expert seeks passage of regulatory framework for gas development

Oil & Gas
The need to harness Nigeria’s gas by tackling some of the barriers, including passing a regulatory framework for the upstream sector and the launch of the Nigerian gas transportation code to further drive gas-based have been stressed. The Managing Director and Chief Executing Officer, Nigeria LNG Limited, Tony Attah, said increasing Nigeria’s presence in the global LNG market, which serves as an opportunity to harness the gas for domestic consumption, has long been discussed by industry stakeholders. He noted that Nigeria is currently faced with challenges such as gas pricing for the domestic market, limited infrastructure for distribution and a commercially-viable market. He said: “The FID for Train 7 and award of its EPC contract is very reassuring, as it renews our hope that ...