Monday, May 17African Business News
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Tag: Gas

Nigeria flared 7.83bcm of gas in 2019, amid poor electricity generation

Nigeria flared 7.83bcm of gas in 2019, amid poor electricity generation

Energy
The World Bank has said that estimates from satellite data show global gas flaring rose to levels not seen in more than a decade, to 150 billion cubic meters (bcm), equivalent to the total yearly gas consumption of sub-Saharan Africa. The three per cent rise, from 145bcm in 2018 to 150bcm in 2019, was mainly due to increases in three countries: the U.S., up by 23 per cent; Venezuela, up by 16 per cent; and Russia up by nine per cent. With 7.83bcm last year, up from 7.44bcm in 2018, the World Bank ranked Nigeria as having the seventh-largest volume under the Global Gas Flaring Tracker Report (GCFR), despite having a low level of energy access. Nigeria’s power sector has continued to suffer setbacks in the last seven months with the loss of about N377.6 billion due t...
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 ...
Producers hopeful of $50 oil price, business sustainability from cuts

Producers hopeful of $50 oil price, business sustainability from cuts

Oil & Gas
Although OPEC+ agreed at the weekend to extend 9.7million barrels cuts in daily crude oil production through the end of July, lending oil prices some support, operators in the exploration industry are hopeful that the cuts would be sustained to aid production and business sustainability. In the course of global lockdown, the ensuing energy imbalance affected oil producers and prices such that business sustainability was threatened and capacity to service over N3.4 trillion loans weakened. With the lockdown lifted and oil prices rebounding, African Energy Chamber believes that liquidity challenges will be addressed. According to the chamber, the rebalancing of the market is key for African oil-producing nations to preserve jobs in the sector and give the continent an opportunity to st...
DPR yet to issue guidelines on marginal field bid rounds

DPR yet to issue guidelines on marginal field bid rounds

Oil & Gas
The Federal Government, through the Department of the Petroleum Resources (DPR), yesterday, said it is yet to issue guidelines on the proposed bid rounds in Nigeria’s marginal oil fields, adding that such exercise cannot be done in secrecy. Accordingly, the DPR expressed concern that a lot of fake documents are circulating on social media concerning the marginal field round, noting that the last bids were done 17 years ago, and therefore cannot be done in privacy. DPR Director, Sarki Auwalu in his presentation on, “The Nigerian oil and gas landscape: A world of opportunities for investments and partnerships,” at the Oil and Gas Trainers Association of Nigeria (OGTAN) webinar series, said the Department is not a regulator but a facilitator of opportunities. With no ...
OGFZA restates commitment to NEPZA, directives on zone management

OGFZA restates commitment to NEPZA, directives on zone management

Business
Oil and Gas Free Zones Authority (OGFZA), has restated its commitment to continue to abide by directives from the Nigerian Export Processing Zone Authority (NEPZA), as well the Ministry of Industry, Trade and Investment. “We will continue to act in accordance with the directives given by the Ministry of Industry, Trade and Investments as well as NEPZA because they are our regulators.” The declaration comes on the heels of recent action taken by oil and gas firms operating in the Free Zones, seeking judicial intervention in the regulation of operations within the Snake Island Integrated Zones. In a statement made available to journalists yesterday, in Abuja, the counsel to the firms, Qudus Mumumey, said the case had already become a court issue since 2008. Mumurney called on the...
‘Global disruptions offer Nigeria leeway for gas-to-power maximisation’

‘Global disruptions offer Nigeria leeway for gas-to-power maximisation’

Business
With the disruptions in the global oil industry, causing energy imbalance and low demand for oil, one of the operators in the power value-chain, has urged the government to implement regulations that would aid gas utilisation for power and home use in order to aid economic growth. In a chat with The Guardian on, “The future of oil and Nigeria’s energy dynamics,” the Chief Executive Officer, Century Power Generation Ltd., Dr. Chukwueloka Umeh, said there is no better time than now for the Federal Government to take definitive and courageous steps towards diversifying the economy. Umeh said: “In the face of the cyclic oil prices, we must now see a Nigeria without oil and immediately start diversifying to agriculture and manufacturing. In order to do this successfully, the gas and power...
Oil majors deepen 2020 spending cuts, lower oil, gas output forecast

Oil majors deepen 2020 spending cuts, lower oil, gas output forecast

Energy
With many oil majors suffering huge losses in the first quarter as a result of the effect of the coronavirus pandemic, operators are beginning to look in the direction of lower operating expenses and output forecast. Indeed, the output cuts are driven by an unprecedented drop in oil consumption due to coronavirus-related movement restrictions that have led to a surge in supplies and a collapse in crude prices to levels not seen in more than two decades. The cumulative output for Exxon Mobil, Chevron, Royal Dutch Shell, BP and Total will drop to the lowest since at least 2003, based on Refinitiv data. Total, on Tuesday, announced a deepening of capital spending cuts and a likely 5% reduction in its upstream oil and gas output in 2020 from its previous forecast, while also highligh...
‘Oil rises to $30, could crash to $10 as world runs out of storage’

‘Oil rises to $30, could crash to $10 as world runs out of storage’

Oil & Gas
The growing supply glut in oil markets could end up filling all storage tanks worldwide, potentially causing prices to drop even further, even as Brent crude rose to $30.43 per barrel as 8:20pm GMT. Global oil storage could overflow in the coming weeks as the coronavirus pandemic has dealt a severe blow to demand while Saudi Arabia has promised to supply 12.3 million bpd—not just in April but also over the next few months. Reuters reports, citing analysts, that such a development would overwhelm the already troubled oil industry, forcing production shutdowns. Storage facilities—both on land and offshore—are already filling up, the news agency noted, and Saudi Arabia has not yet started to increase its deliveries of crude. If such a scenario unfolds, some analysts b...