Nigeria Takes The Lead In Exploration, Production And Regulation In 2022
Nigeria represents one of Africa’s heavyweights when it comes to hydrocarbon exploration and production. With over 36 billion barrels of oil (bbl) and 200 trillion cubic feet of natural gas, the country has managed to position itself as both an attractive upstream market and competitive producer.
In its Q1 2022 outlook, The State of African Energy, the African Energy Chamber (AEC) contends that Nigeria will maintain its position as one of Africa’s leading crude oil producers as well as one of the continent’s top three gas suppliers between 2022 and 2025, providing an opportunity for the west African country to leverage its energy resources for economic growth while addressing global energy demand.
According to the outlook, Nigeria will produce 1.46 million barrels per day (bpd) of crude oil out of the 6.35 million bpd that Africa as a whole will produce during the year, reaffirming the country’s position as a continental energy hub as production in the West African state peaks in 2023.
Production declines in mature oilfields coupled with the country’s reliance on offshore basins – approximately 65% of the crude oil Nigeria currently produces sourced from offshore projects – has highlighted the need for Nigeria to increase oil exploration and production to maintain a secure supply as legacy projects diminish and thereby shrink the country’s production capacity from 2023 onwards.
Out of the 36 bbl of oil reserves Nigeria holds, just over 25% is currently produced from deep water projects, underlining a huge opportunity for Nigeria to expand partnerships and investment to ramp up production and increase its role in both the continental and global energy landscape.
“The recent $1.2 billion deal between Nigeria’s Seplat Energy and American energy firm ExxonMobil, in which the multinational will continue with its deep-water projects whilst handing over onshore projects, is an indication of the huge potential the country’s offshore projects have in the near future in addressing energy needs as energy consumption increases.
By increasing focus on these projects, accelerating exploration and production in key basins, Nigeria has the ability to unleash its full energy potential,” stated NJ Ayuk, Executive Chairman of the AEC.
In order to consolidate its position as a global producer, the Nigerian government needs to fast-forward the approval process for deep-water projects and put in place policies that reduce taxes for operators, the majority of which are international majors that have partnered with national oil companies, to ensure more projects come online through 2025 for a continued stable supply of crude oil.
More investments are also required within the country’s downstream sector with inadequate infrastructure slowing down oil production and increasing Nigeria’s reliance on fuel imports. Nigeria imports up to 1.25 million metric tons per month of gasoline due to inadequate domestic refining capacity.
Accordingly, the $12 billion Dangote refinery project in Lagos, slated to kick start operations during Q4 of 2022 with a processing capacity of 540,000 barrels per day and partly owned by state-company the Nigerian National Petroleum Corporation, is an example of the willingness of Nigeria to set itself as an oil heavyweight while expanding its oil and gas capabilities to meet domestic, regional and global energy needs.
Meanwhile on the gas front, the AEC outlook shows that Nigeria has also retained its spot amongst Africa’s main gas producers in 2022. An annual production capacity of 1,450 billion cubic feet is expected as the country recovers from 2020 low production levels. Existing gas producing fields, as well as those currently under development, are expected to sustain the country’s gas production through to 2025.
Despite factors such as vandalism of infrastructure which are restraining optimal gas and oil exportation, as well as the high costs and emission rates associated with deep-water projects driving majors to diversify their portfolios, greenfield investments in Nigeria and its African counterparts will increase capital expenditure across the continent to $30 billion in 2022, providing an opportunity for new projects to come online and for leading hydrocarbon producers such as Nigeria to modernize and build new infrastructure as well as expand exploration and production.
Nigeria is positioned to lead African investment with proven oil and gas reserves as well as a reformed regulatory landscape making the sector increasingly attractive for foreign capital.
The implementation of the Petroleum Industry Bill (PIB) in 2021 by the Nigerian government, for example, provides regulatory clarity on royalties and other issues that have previously made it difficult for oil and gas E&P companies and downstream market players to expand investments within the country’s market. Now, with the implementation of the PIB, Nigeria is better positioned, now more than ever, to attract investments and accelerate development in 2022 and beyond.
The AEC’s annual conference, African Energy Week (AEW), taking place from October 18-21, 2022, in Cape Town, will not only highlight post-PIB opportunities in Nigeria, but will make a strong case for the role the country plays in both the African and global energy landscape. Through a range of investor-specific forums, market-driven panel discussions, and ministerial summits, AEW 2022 will discuss exploration, production and regulation, with dialogue centered around how Africa’s oil and gas sector can make energy poverty history by 2030.
Source: https://energynewsafrica.com
Ghana: Three-Member IMC Ends Role At TOR
The three-member Interim Managing Committee (IMC) instituted by Ghana’s Ministry of Energy to oversee the management of Tema Oil Refinery is ending its role at the premier refinery by the close of today, Wednesday, March 2, 2022.
This is because the Minister for Energy, Dr. Matthew Opoku Prempeh is inaugurating a newly constituted board and a new Managing Director to take over the management of the refinery today.
The IMC was constituted in June 2020 to oversee the management of the refinery following the dismissal of the Managing Director, Francis Boateng, and his deputy, Mr Ato Morrison.
A few weeks into their work, this portal reported that the IMC interdicted 14 top management executives of the refinery for their alleged involvement in various acts which resulted in huge financial loss to the refinery.
The IMC, in a statement issued later, said its investigation uncovered the disappearance of 18 drums of electrical cables valued at Ghc10.4 million, the disappearance of LPG belonging to a client between 2012 and 2015 as a result of which TOR became indebted to the client to the tune of US$4.8 million.
Also, the IMC revealed the disappearance of 105,927 litres of gas oil on September 4, 2021.
In addition, there was a wrongful loading of 252,000 litres of Aviation Turbine Kerosene (ATK) instead of regular kerosene into BRV trucks at the loading gantry between September 21 and September 25, 2021.
Interestingly, for the few months the IMC stayed at the refinery, they were able to put control measures in place and this has helped to stem product losses.
“We have not witnessed product losses for the past few months,” Ing. Norbert Anku, Chairman of the IMC told energynewsafrica.com recently.
He said they had plans to enhance the security of products by installing flow meters at the loading gantry, constructing a new laboratory, refurbishing the gantry and installing a Close Circuit Television (CCTV) at the refinery.
He believed when these things are done, they would go a long way to guarantee product security at the refinery.
Source: https://energynewsafrica.com
Ghana: Sunon Asogli Power Ghana Rids Kpone Beach Of Filth For Clean Environment
Ghana’s largest independent power generation company, Sunon Asogli Power Ghana, has, as part of its corporate mission of protecting the environment, organised a cleaning exercise at the Kpone beach to rid the area of filth.
Kpone is the Municipal capital of Kpone-Katamanso in the Greater Accra Region.
The staff of the company, with their management, undertook the cleaning exercise on 25th February 2022.
By this, revelers are ensured of healthy air and environment at the beach.
Residents close to the power plant voluntarily took part in the tidying up exercise of 1,800 square meters of the beach, an exercise that lasted for two hours. Over 100 bags of garbage mainly plastic waste were collected.
The General Manager of Sunon Asogli Power, Jin Zhengyi stated that the exercise would be frequent in ensuring that the frontage and surroundings of the plant are always clean.
He urged the general public to make an effort to contribute to making the environment clean, adding that “if we want to make Accra one of the cleanest cities in Africa, it starts with us.
“Not only has this exercise strengthened the corporation and raised the awareness of environmental protection among the Ghanaian and Chinese employees, but it has also introduced the concept of ‘responsible energy’ and ‘environmental energy’ of Shenzhen Energy to Ghana.”
The Management of Sunon Asogli Power expressed gratitude to all the staff and volunteers who took part in the exercise and commended them for the love and energy they put into ensuring that their surroundings are always clean.
Source: https://energynewsafrica.com
He urged the general public to make an effort to contribute to making the environment clean, adding that “if we want to make Accra one of the cleanest cities in Africa, it starts with us.
“Not only has this exercise strengthened the corporation and raised the awareness of environmental protection among the Ghanaian and Chinese employees, but it has also introduced the concept of ‘responsible energy’ and ‘environmental energy’ of Shenzhen Energy to Ghana.”
The Management of Sunon Asogli Power expressed gratitude to all the staff and volunteers who took part in the exercise and commended them for the love and energy they put into ensuring that their surroundings are always clean.
Source: https://energynewsafrica.com Ghana: More Pain For Consumers As IES Predicts Another Fuel Price Hike
The Institute for Energy Security, an energy think tank in the Republic of Ghana, is urging Ghanaians to brace themselves up to pay more for fuel as prices of the commodity will be going up again from March.
Prices of petrol and diesel have been going up almost every fortnight in the Republic of Ghana.
Currently, the average price of both gasoil and gasoline is around GH¢7.86 per litre.
In a statement issued by Fritz Moses, IES’s Research Analyst, on Monday, February 28, 2022, as the second pricing window closes, said: “As we enter March 2022, the Institute for Energy Security (IES) projects another rise in the price of Liquefied Petroleum Gas (LPG), diesel and petrol at the pump.”
He said the impending price increases have been largely influenced by the sharp depreciation of the Ghanaian Cedi against the US Dollar, adding that data analyzed by the IES Economic Desk on the foreign exchange (Forex) market within the pricing-window, reveals that the Ghanaian Cedi further depreciated against the major trading currencies. Against the Greenback, the Cedi depreciated further by 4.11 per cent to close at Gh¢6.85 to the Dollar.
According to him, other factors which are expected to push the fuel prices upward include the 3.33 per cent increase in the price of Brent crude, the 2.71 per cent rise in LPG price, the 3.58 per cent increase in the price of gasoline and the 4.50 per cent jump in gasoline price; all on the international oil and fuel markets.
Crude oil prices have been soaring since the beginning of the year.
Gasoline, Gasoil and Liquefied Petroleum Gas (LPG), monitored on Standard and Poor’s (S&P’s) global Platts platform, also points to increases within the just ended pricing window.
The price of gasoline increased by 4.50 per cent, representing an addition of $39.71 to its earlier price of $882.27 to close at $921.98 per metric tonne.
Gasoil price also extended its gains by 3.58 per cent, adding $29.44 to its earlier price of $821.46 per metric tonne ending the period at $850.90 per metric tonne.
Also, the price of LPG on the international fuel market recorded a marginal jump of 2.71 per cent to add $22.29 to its earlier price of $828.79 to close trading at $851.28 per metric tonne.
Gambia’s Director Of Exploration And Production Cany Jobe Honoured By PETAN
The Director for Exploration and Production at the Gambia National Petroleum Corporation, Cany Jobe, has been awarded for her exceptional role and dedication to the Energy Sector in her country and beyond.
She was recognised by the Petroleum Technology Association of Nigeria (PETAN), organisers of the just ended Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC2022) at a dinner in Nigeria.
She was handed over the award by four leading women in the Energy Sector which included Dr Ibilola Amao, Funmi Ogbue and Patricia Simon-Hart in a show of camaraderie and honour.
The event also saw ten oil and gas companies awarded for their contribution to local content development in the industry and on the African continent.
The 10 companies include Nigeria Liquefied Natural Gas Limited (NLNG) (Nigeria); Societe Mauritanienne des Hydrocarbures et de Patrimoine Minier (SMH) (Mauritania); Shell (Nigeria); Uganda National Oil Company (UNOC) (Uganda); TotalEneries (Nigeria); ND Western (Nigeria); Instituto Nacional de Petroleo (INP) Mozambique; Agencia Nacional de Petroleo Gaz Biocombustiveis (ANPG) Angola; and Proscovia Nabbanja (Uganda).
Commenting on the award in an interview with energynewsafrica.com, Cany Jobe, who was full of joy, said: “The best part of this particular award has been getting up on stage and handed over the award by not one but four outstanding and stellar women of the industry with a combined 200 years of experience.
“STEM Pioneers and one per cent do not have the privilege I had growing up to google and see other women do it and be it. It made me blush to stand on the shoulders of such giants and the memory will be a special one that will forever remain with me.”
She added, “Women still have to dismantle many stereotypes to get to where we are and, therefore, getting publicly celebrated when we break barriers is one of the many ways to get rid of inherent biases against women leadership.”
Profile of Cany Jobe
Cany is a dedicated and strategic Petroleum Engineer with a passion for cleaner and renewable energy technologies. Her work experience spans energy projects in Australia where she worked with a multi-disciplinary team that investigated the optimum development strategy for the Browse LNG Field; South America-drilling in the Lake Maracaibo; to West Africa.
Cany is currently the Director of Exploration and Production at the Gambia National Petroleum Corporation where she advises on oil and gas exploration projects; and structures, negotiates and oversees the implementation of high value exploration activities of NOC/IOC joint ventures and partnerships.
She holds a M.Eng. degree in Oil and Gas from the University of West Australia, an MSc. in International Project Management specialising in Energy, Construction, Oil & Gas from Glasgow Caledonian University and a B.Sc. in Materials and Minerals Resources Engineering from National Taipei University of Technology during which she won Foreign Student Excellence Awards.
She has executed consultancy assignments from regional organisations such as ECOWAS around national strategies for LPG popularisation, energy efficiency and clean cooking initiatives. She is also skilled in policy formulation, governance, and administration having previously served as Head of Administration & Procurement; and Board Secretary for the national oil company.
A member of the Society of Petroleum Engineers and the Association of Project Managers; Cany is an alumnus of Commonwealth Awards; Mining for Development Awards; and Australia Development Awards.
She volunteers for a number of Not-for-Profit Organisations and is a national and international conference speaker passionate about women in STEM, quality education and energy access.
More recently she was recognised in the 2021 Power List of 50 Inspiring Pan African Female Leaders in Energy by Lean In Energy and was named as one of 100 Outstanding Female Executives in the African Oil and Gas Industry by African Shapers.
In 2022, she got awarded by SAIPEC a Winning With Women award in recognition of her role as a Pioneer Energy Leader.
Cany is happily married and raising two boys to be the next generational gender champions. She is a bon vivant who loves wave watching, playing dress up, travelling, reading about everything under the sun, taking countless photos, hiking, dancing and cooking the occasional meal.
Source: https://energynewsafrica.com
The 10 companies include Nigeria Liquefied Natural Gas Limited (NLNG) (Nigeria); Societe Mauritanienne des Hydrocarbures et de Patrimoine Minier (SMH) (Mauritania); Shell (Nigeria); Uganda National Oil Company (UNOC) (Uganda); TotalEneries (Nigeria); ND Western (Nigeria); Instituto Nacional de Petroleo (INP) Mozambique; Agencia Nacional de Petroleo Gaz Biocombustiveis (ANPG) Angola; and Proscovia Nabbanja (Uganda).
Commenting on the award in an interview with energynewsafrica.com, Cany Jobe, who was full of joy, said: “The best part of this particular award has been getting up on stage and handed over the award by not one but four outstanding and stellar women of the industry with a combined 200 years of experience.
“STEM Pioneers and one per cent do not have the privilege I had growing up to google and see other women do it and be it. It made me blush to stand on the shoulders of such giants and the memory will be a special one that will forever remain with me.”
She added, “Women still have to dismantle many stereotypes to get to where we are and, therefore, getting publicly celebrated when we break barriers is one of the many ways to get rid of inherent biases against women leadership.”
Profile of Cany Jobe
Cany is a dedicated and strategic Petroleum Engineer with a passion for cleaner and renewable energy technologies. Her work experience spans energy projects in Australia where she worked with a multi-disciplinary team that investigated the optimum development strategy for the Browse LNG Field; South America-drilling in the Lake Maracaibo; to West Africa.
Cany is currently the Director of Exploration and Production at the Gambia National Petroleum Corporation where she advises on oil and gas exploration projects; and structures, negotiates and oversees the implementation of high value exploration activities of NOC/IOC joint ventures and partnerships.
She holds a M.Eng. degree in Oil and Gas from the University of West Australia, an MSc. in International Project Management specialising in Energy, Construction, Oil & Gas from Glasgow Caledonian University and a B.Sc. in Materials and Minerals Resources Engineering from National Taipei University of Technology during which she won Foreign Student Excellence Awards.
She has executed consultancy assignments from regional organisations such as ECOWAS around national strategies for LPG popularisation, energy efficiency and clean cooking initiatives. She is also skilled in policy formulation, governance, and administration having previously served as Head of Administration & Procurement; and Board Secretary for the national oil company.
A member of the Society of Petroleum Engineers and the Association of Project Managers; Cany is an alumnus of Commonwealth Awards; Mining for Development Awards; and Australia Development Awards.
She volunteers for a number of Not-for-Profit Organisations and is a national and international conference speaker passionate about women in STEM, quality education and energy access.
More recently she was recognised in the 2021 Power List of 50 Inspiring Pan African Female Leaders in Energy by Lean In Energy and was named as one of 100 Outstanding Female Executives in the African Oil and Gas Industry by African Shapers.
In 2022, she got awarded by SAIPEC a Winning With Women award in recognition of her role as a Pioneer Energy Leader.
Cany is happily married and raising two boys to be the next generational gender champions. She is a bon vivant who loves wave watching, playing dress up, travelling, reading about everything under the sun, taking countless photos, hiking, dancing and cooking the occasional meal.
Source: https://energynewsafrica.com Nigeria: ExxonMobil Sells Shallow-Water Assets To Seplat For US$1.283 Billion
US oil and gas supermajor, ExxonMobil Corporation, has reached an agreement to sell its equity interest in Mobil Producing Nigeria Unlimited to Seplat Energy, a Nigerian independent oil and gas company, through its wholly-owned subsidiary, Seplat Energy Offshore Limited.
The supermajor, however, said that it would retain its deepwater assets, adding that the sale of MPNU supported the company’s investment strategy and Nigeria’s efforts to enhance industry participation.
In a statement, ExxonMobil said the transaction would close later this year pending regulatory approvals.
Commenting on the deal, ExxonMobil Upstream Oil and Gas President, Liam Mallon, said, “This sale will allow us to prioritise competitively advantaged investments in our strategic assets, and it supports the Nigerian government’s efforts to grow its oil and gas operations.
“We value the relationships we have spent decades building with the government and people of Nigeria, which will continue as we maximise the value from our deepwater operations.”
ExxonMobil said when finalised, the sale would include the Mobil Development Nigeria and Mobil Exploration Nigeria equity ownership of Mobil Producing Nigeria Unlimited, which hold a 40 per cent stake in four oil mining licences.
According to the statement, the licences include more than 90 shallow-water and onshore platforms and 300 producing wells.
It added, “ExxonMobil will maintain a significant deepwater presence in Nigeria, including interests in the Erha, Usan and Bonga developments via Esso Exploration and Production Nigeria Limited and Esso Exploration and Production Nigeria (Deepwater) Limited.
“The sale will not result in any loss of employment and is expected to close later this year subject to regulatory and other approvals.”
Seplat Energy said in a statement that its subsidiary, Seplat Energy Offshore Limited, had entered into a Sale and Purchase Agreement to acquire the entire share capital of MPNU for a purchase price of $1.283 billion-plus up to $300 million contingent consideration, subject to the lockbox, working capital and other adjustments at closing relative to the effective date.
Source: https://energynewsafrica.com
Ukraine: Russian Soldiers Blow Gas Pipeline Into Flames
Russian forces have blown up a gas pipeline in Kharkiv, the second-largest city in Ukraine, as the Russian invasion into the European nation continues into the fourth day.
A video of the fire from where the pipeline is located was shared by eyewitnesses to the incident.
Ukrainian State Service of Special Communication and Information Protection confirmed that the bombing of its pipeline warned that the explosion could cause an “environmental catastrophe” and advised residents to cover their windows with damp cloth or gauze and to drink plenty of fluids.
Ukraine’s top prosecutor, Iryna Venediktova said the Russian forces have been unable to take Kharkiv where a fierce battle is underway.
However, at the same time, the Telegram channel of the State Service of Special Communications and Information Protection warned against misinformation, saying this was not a nuclear strike, although the explosion was visually similar to that.
Heavy shelling was reported in Kharkiv in eastern Ukraine in the early hours of Sunday.
Russian missiles even hit the Ukrainian town of Vasylkiv southwest of Kyiv, setting an oil terminal ablaze.
Photographs and videos posted online showed large flames rising in the night sky.
Soon after, a radioactive waste disposal site near Kyiv was also hit by an airstrike, but the storage facilities were not damaged, Ukraine’s nuclear agency said. However, there was no evidence of a leak.
The incident happened at about 1:20 am (local time) on Sunday when a radioactive waste disposal site of the State Specialized Enterprise “Radon” was hit by missiles.
NRIU said the automated radiation monitoring system at the site had failed, but measurements taken with portable devices in Kyiv found that radiation levels were normal.
Source: https://energynewsafrica.com
Ghana: Fire Outbreak At Kaysens Gas Station In Tema Leaves One Attendant Injured
A fire outbreak at the Kaysens Gas Refilling station at Community 2, opposite the Tema Harbour, has left one attendant injured.
The incident reportedly occurred last Friday, February 25, 2022.
The inferno could have caused the disaster at the station and spread to adjoining houses to the facility but the swiftness of other attendants saved the situation.
Speaking to the Deputy Commander of the Tema Regional Fire Service, DO1 Timothy Osafo Affum, he said the fire service personnel rushed to the scene immediately after they received the information.
However, by the time they would arrive at the scene, the attendant had been able to calm the situation.
According to him, one of the attendants was injured when the fire occurred.
Explaining the circumstances which resulted in the fire outbreak, he told energynewsafrica.com that a customer went to the facility with an oxygen cylinder (oxygen cylinder is used at the hospitals) to fill it with LPG for domestic use.
He said an attendant’s blunder in fixing the wrong adaptor to discharge the gas into the oxygen cylinder to refill it sparked the fire.
He continued that staff of the facility, who saw the fire, quickly switch off the flow meter thereby cutting the flow of the gas.
The immediate action of the staff prevented the fire from spreading.
DO1 Timothy Affum, who blamed the attendant for the fire outbreak, however, commended them for their swift action in saving the situation.
“In the first place, we blame them for fixing the adaptor which is not meant for the oxygen cylinder. In the second instance, we commend them for their swift response,” he said.
He advised LPG users to desist from using oxygen cylinders as LPG cylinders for domestic use and warned attendants at LPG refilling stations to desist from discharging LPG into oxygen cylinders.
Source: https://energynewsafrica.com
Putin’s War In Ukraine Could Break The OPEC+ Alliance
The OPEC+ cooperation is facing a possible breakdown following Russia’s military invasion of Ukraine. Russia’s aggressive military moves towards Ukraine will have a negative impact on the oil market cooperation between OPEC and Russian-led non-OPEC members.
The success formula of Riyadh-Moscow-Abu Dhabi is in serious trouble as Western powers will be putting Saudi Arabia, Abu Dhabi, and others, under severe pressure to break up their strategic cooperation with Moscow.
The growing economic, financial and strategic military cooperation that has been built up the last couple of years between mainstream Arab power players, especially Riyadh, Abu Dhabi, and non-OPEC member Egypt, with Moscow is now in jeopardy. Officially, Arab countries are not being asked to protest against Putin’s Ukraine invasion, but behind closed doors, the topic will be put on the table for sure.
Washington, Brussels, London, and Paris will not be willing to have a major block of energy producers continue to work with Putin. The next couple of days could be crucial for OPEC+’s future, especially if Putin is continuing his war with Ukraine.
At present, statements coming from the Arab world are very diplomatic, calling for a major de-escalation or diplomatic moves. Looking at the still struggling Western response to Putin’s invasion of Ukraine, Arab countries still have some room to maneuver.
However, if Washington, Brussels, and London are getting their act together, politically and militarily, choices will have to be made. Western governments will be willing to take a long-term strategy towards the MENA region, based on their vast links in energy, investments, and geopolitical assets, but there will be less room to allow Moscow to find support in key-Western allies in the MENA.
For the two main OPEC leaders, Riyadh and Abu Dhabi, it will be a very tight rope to walk. Part of their strategic control of oil and gas markets during the last few years was based on cooperation with Russia. Moscow’s influence in other FSU countries to stick to the production pact has been playing a pivotal role. While the Ukraine crisis is partly a major financial boon for Arab oil and gas producers due to rising crude prices, OPEC strategists now need to assess the ups and downs of continuing this partnership.
Already, OPEC+ needs to tackle a number of problems. One major issue is the lack of spare production capacity in general, as some OPEC producers are already unable to keep up with their own quotas. While OPEC+ has stuck to their known monthly production hikes, real output levels are lagging behind, reflecting a 600,000 bpd quota shortfall. In the next few months, this number is expected to increase further. A lack of investment, declining field production, and lagging oil infrastructure are the main causes.
Russia, as one of the main OPEC+ powers, is also facing some production issues. Some analysts already have indicated that Russia’s spare capacity is now below 300,000 bpd. Moscow is currently producing around 10.8 million bpd, but should be producing close to 12 million bpd according to the OPEC+ agreements. If it fails to reach these numbers, Moscow’s influence is under pressure in the alliance.
Taking the production quota into account, while global crude prices are high, a potential breakup is not going to be very hard, especially if Saudi Arabia and Abu Dhabi will be the only ones with extra spare production capacity.
Geopolitically, the integrity of OPEC+ is very important. In contrast to the 20th Century or the first part of the 21st Century, there is more at stake lately. Riyadh, Abu Dhabi and also Egypt, have become weary of the lack of commitment of Washington as a military and economic partner. Moscow and Beijing have been filling up the gaps. Arab sovereign wealth funds are increasingly investing in Russia, China and Asia, while Russian investments in ports and industrial zones, such as along the Suez Canal, have a political impact too. At present, no Arab country is willing to make a clear choice between the West and the East.
Choosing to back the West in the Ukraine crisis, or supporting economic and military sanctions on Russia and its cohorts, is however a bridge too far. Other Arab and non-Arab members of OPEC+ are also not yet willing to sanction Moscow. Putin’s strategic moves during the last decade have severely eroded Western influence in the region, and Moscow is now reaping the benefits.
At the same time, Arab powers are also still keeping an eye on the Iran JCPOA discussions, and the position that China is taking towards Moscow. For most Arab oil producers, the Dragon-Bear developments are more important, at least on the surface.
A breakup of OPEC+ is currently an option without a real risk for the Arabs. A potential energy sanctions regime on Russia isn’t completely out of the question. Riyadh and Abu Dhabi will for sure be coordinating any moves with Washington, London or Brussels, but will have a direct line to Beijing too. China’s stealth moves at present will not influence geopolitical decisions during the coming months, but could also have an impact on the future of OPEC+. Some could argue a weaker OPEC+ is to the advantage of Beijing, as Moscow will be more willing to increase flows to China.
Analysts should be not looking the next couple of days at crude oil prices or official statements made by OPEC+ officials. The main focus should be on the body language shown on March 2, when OPEC will be meeting again. The same scenario as at the Third Summit of OPEC Heads of State and Government in Riyadh 2007 could play out. A breakup of the OPEC+ bromance is an underestimated possibility.
Source: Oilprice.com
Niger Set To Monetize Massive Gas Reserves Through Trans-Saharan Natural Gas Pipeline
Enabling Europe to tap into West Africa’s abundant natural gas supplies, the Trans-Saharan Gas Pipeline is expected to boost exploration in The Republic of the Niger and expand its energy industry. With a length of 4,128km and an annual capacity of 30 billion cubic meters of natural gas, the Trans-Saharan Natural Gas Pipeline will link the Warri Region in southern Nigeria, passing through the Republic of the Niger, to the town of Hassi R’Mel in northern Algeria, from where it will connect to existing Trans-Mediterranean, Maghreb-Europe, Medgaz, and Galsi Pipelines, enabling Europe to tap into West Africa’s abundant natural gas reserves, and thus diversifying its supply and expanding critical revenue for West Africa’s oil and gas industry.
The development of the multi-billion-dollar pipeline began this year, following the signing of the Declaration of Niamey by the Republic of Niger’s Minister of Petroleum, Energy and Renewable Energy, H.E. Mahamane Sani Mahamadou; Algeria’s Minister of Energy and Mines, H.E. Mohamed Arkab; and Nigeria’s Minister of State for Petroleum Resources, H.E. Timipre Sylva during the third edition of the Economic Communities of West African States Mining and Petroleum Forum in the Republic of Niger’s capital city of Niamey on 16 February.
The Trans-Saharan Natural Gas Pipeline is being developed through a partnership between Nigeria’s national oil company (NOC), the Nigerian National Petroleum Corporation (NNPC), and Algeria’s NOC, Sonatrach – holding a combined share value of 90% – and the Government of the Republic of the Niger – which will hold the remaining 10%. With much of the estimated $13 billion investment being spent in The Republic of Niger, and through which 841km will be constructed, the pipeline is expected to boost the energy sector of the landlocked, West African country, enabling it to monetize its vast natural gas resources and drive economic development. With an estimated 24 billion cubic meters of recoverable natural gas reserves in the country, the pipeline will allow the Republic of the Niger to boost its domestic gas supply and expand its petrochemical sector, serving to drive its agriculture industry, a major employer in the country.
As the voice of the African energy industry, the African Energy Chamber supports the development of energy-related projects on the continent. Positioning the Republic of the Niger and the West African Region to benefit from its abundant natural resources, the Trans-Saharan Natural Gas Pipeline will serve as a major opportunity for public and private stakeholders across Africa, further facilitating the continent’s potential to operate its energy industry independently across the entire value chain.
“With developments such as these, Africa is truly positioning itself to benefit from its own resources, without becoming over reliant on other countries to develop its energy sector,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber, adding, “Through investment into its own oil and gas industry, local companies will be able to boost project developments and position the continent as a net exporter of hydrocarbons, creating critical opportunities to further develop the industry and spur African growth.”
With aims to become a regional hub for hydrocarbons, petrochemicals, and associated products, the Government of the Republic of the Niger has indicated its commitment towards taking advantage of the pipeline to boost the country’s natural gas sector, with a stated objective being for the hydrocarbon industry to account for approximately 35% of its GDP, 45% of tax revenue, and 68% of exports by 2025. The Government will also use the pipeline to facilitate the development of a skilled working class, whereby a minimum of 50% of all technical roles in the energy industry will be filled by Nigeriens over the next decade.
Home to approximately 8% of the world’s natural gas reserves and with relatively little internal gas consumption, the African continent is seen as having considerable exporting potential and has been eyed by Europe as a way to diversify the supply of its natural gas imports. Algeria’s strategic position along the Mediterranean coast, and through connections with existing pipelines – or those already under construction – in Spain and Italy, the Trans-Saharan Natural Gas Pipeline is expected to serve as a long-term additional supply option for the European Union (EU).
The EU’s primary gas suppliers are Norway, Great Britain, the Netherlands, and Russia, with the largest share of its gas supply being delivered from Russia, which currently accounts for approximately 38% of total natural gas imports to the continent. It has been estimated that Russia could supply the EU with up to 70% of its natural gas imports by 2050, with the Russian multinational natural gas company, Gazprom, having negotiated with Nigeria regarding its possible participation in the Trans-Saharan Natural Gas Pipeline.
Following the EU’s announcement to label natural gas projects as ‘green’ investments, the Trans-Saharan Natural Gas Pipeline is being viewed as an opportunity for the EU to, not only diversify its energy mix, but serve to address the continent’s ongoing energy crisis, with surging natural gas prices increasing demand and compromising its supply.
As one of the African continent’s most promising frontiers for hydrocarbon exploration and development, and with one of the most stable democracies in the region, the Republic of the Niger is poised to become a regional hydrocarbon, petrochemical, and gas hub, with the Trans-Saharan Natural Gas Pipeline serving to facilitate this development, enhancing the country’s energy industry, and promoting socio economic development.
Source: https://energynewsafrica.com
Ghana: CEO Of Ghana Gas Is Worth Celebrating-Says Annoh-Dompreh
Clean Energy advocate and Member of Parliament for Nsawam-Adoagyir Constituency in the Eastern Region, Frank Annoh Dompreh believes Ghanaians should celebrate the CEO of Ghana Gas Company for his remarkable effort towards transforming the company.
In a tweet, the Ghanaian lawmaker said the company has witnessed several initiatives under Dr Benjamin K.D Asante’s leadership which are “worth celebrating.”
Dr Benjamin Asante, a renowned gas infrastructure expert, was appointed by President Akufo-Addo to replace Dr George Sipa Yankey as CEO in 2017 when the New Patriotic Party won power and formed the government in 2017.
Since 2017, Dr Asante has undertaken several initiatives including expanding the company’s gas infrastructure and increasing gas flow from 90mmscfd to 300mmscfd.
Recently, Dr Asante announced that the company intends to construct a second gas processing plant to ensure that Ghana increases the usage of gas for electricity generation and domestic consumption.
Enumerating some of the initiatives undertaken by Ghana Gas under the leadership of Dr Benjamin Asante, Mr Annoh-Dompreh mentioned the indigenization which has saved the taxpayer a monthly bill of $3million ($36million annually) for engaging the services of expatriates.
He said the decision to indigenize operations of Ghana National Gas Company’s installation is one of the best initiatives taken by its management.
According to him, this has opened up opportunities for young engineering graduates and employment for Ghanaian workers, while deepening local participation in the oil & gas sector.
As part of its CSR, the company has completed about 150 projects across the nation covering areas such as education, health, boreholes, roads, security, social development and sports–the construction of Astro turfs.
Under the leadership of Dr Asante, GNGC “increased its local workforce by about 300 per cent from 2017 to 2021.
Ghana Gas has also introduced the Gas Challenge in which students from tertiary institutions offering Science Technology Engineering and Mathematics (STEM) gather to compete and demonstrate their understanding of the gas industry.
Source: https://energynewsafrica.com
He said the decision to indigenize operations of Ghana National Gas Company’s installation is one of the best initiatives taken by its management.
According to him, this has opened up opportunities for young engineering graduates and employment for Ghanaian workers, while deepening local participation in the oil & gas sector.
As part of its CSR, the company has completed about 150 projects across the nation covering areas such as education, health, boreholes, roads, security, social development and sports–the construction of Astro turfs.
Under the leadership of Dr Asante, GNGC “increased its local workforce by about 300 per cent from 2017 to 2021.
Ghana Gas has also introduced the Gas Challenge in which students from tertiary institutions offering Science Technology Engineering and Mathematics (STEM) gather to compete and demonstrate their understanding of the gas industry.
Source: https://energynewsafrica.com Chernobyl Power Plant Captured By Russian Forces -Ukrainian Official
The Chernobyl nuclear power plant has been captured by Russian forces, an adviser to the Ukrainian presidential office, Mykhailo Podolyak, said on Thursday.
“It is impossible to say the Chernobyl nuclear power plant is safe after a totally pointless attack by the Russians,” he said.
“This is one of the most serious threats in Europe today,” Podolyak said.
Russian troops took over the power plant while Ukrainian forces battled them on three sides on Thursday after Moscow mounted an assault by land, sea and air in the biggest attack on a European state since World War Two.
Some Russian military massed in the Chernobyl “exclusion zone” before crossing into Ukraine early on Thursday, a Russian security source said.
Russia wants to control the Chernobyl nuclear reactor to signal NATO not to interfere militarily, the same source said.
The Chernobyl disaster in then-Soviet Ukraine sent clouds of nuclear material across much of Europe in 1986 after a botched safety test in the fourth reactor of the atomic plant.
Decades later, it became a tourist attraction. About a week before the Russian invasion the Chernobyl zone was shut down for tourists.
“Our defenders are giving their lives so that the tragedy of 1986 will not be repeated,” Ukrainian President Volodymyr Zelenskiy tweeted shortly before the power plant was captured.
“This is a declaration of war against the whole of Europe.”
Source: Reuters
Ghana: Petrol, Diesel Likely To Sell More Than GHS 8.50 Per Litre As Crude Oil Hits $103
Fuel prices in the Republic of Ghana are expected to go up higher by between 60 and 70 pesewas in the first pricing window in March 2022, following a jump in the price of international benchmark crude Brent to US$103.3 per barrel on Thursday, February 24, 2022.
The West Texas Intermediate WTI traded around US$93.50 per barrel on Wednesday while Brent was trading around US$97.51 per barrel.
Surprisingly, the price of both WTI and Brent jumped on Thursday morning following the Russian troop invasion into Ukraine which is limiting fuel supply to the market.
Currently, both petrol and diesel are sold between GHS7.88 and GHS 7.99 on the local market.
During the second pricing window which began on February 16, 2022, some Oil Marketing Companies (OMCs) increased fuel prices by between 50 pesewas and 58 pesewas at the time Brent crude sold around $95 per barrel.
Analysing the effects of Russia’s attack on Ukraine which has already driven crude oil prices above $100 and Ghana’s weak currency, the cedi, a litre of petrol and diesel will likely be sold more than GH¢8.50 during the first pricing window in March.
Speaking to ebergynewsafrica.com about the soaring crude oil prices, Executive Director of Institute for Energy Security IES, Nana Amoasi (VII) said: “The rise in international prices and a decline in the value of the local currency will impact negatively on the prices of domestic fuel, as a result of the price and forex exposures.
“In Ghana, any additional increase in the price of, let’s say, gasoline and diesel will compound the inflationary pressures we are currently seeing.”
Nana Amoasi (VII) urged the government to act quickly to arrest any increases at the pump, come to the next pricing window.
Suggesting what could be done to cushion consumers, he said in the immediate term, the government can resort to either taking off or suspending some of the tax/levy/margin components on the petroleum price build-up. This may be a loss of revenue to the government but it can easily be compensated for by the windfall of revenue from the sale of Ghana’s share of indigenous crude sales.
He added, “And in the mid-to-long term, the BOST and TOR system must work to manage not only the risk associated with price increases on the world market, but also manage any form of supply risk.”
Source: https://energynewsafrica.com
Oil Tops $105 After Russia Attacks Ukraine
Oil prices jumped on Thursday, with Brent rising above $105 a barrel for the first time since 2014, after Russia’s attack on Ukraine exacerbated concerns about disruptions to global energy supply.
Russia launched an all-out invasion of Ukraine by land, air and sea in the biggest attack by one state against another in Europe since World War Two.
The United States and Europe have promised the toughest sanctions on Russia in response.
“If sanctions affect payment transactions, Russian banks and possibly also the insurance that covers Russian oil and gas deliveries, supply outages cannot be excluded,” said Commerzbank analyst Carsten Fritsch.
At least three major buyers of Russian oil were unable to open letters of credit from Western banks to cover purchases on Thursday, sources told Reuters.
Brent crude was up $8.15, or 8.4%, at $104.99 a barrel as of 1221 GMT, having touched a high of $105.79. U.S. West Texas Intermediate (WTI) crude jumped $7.33, or 8%, to $99.43.
Brent and WTI hit their highest since August and July 2014 respectively.
“Russia is the third-largest oil producer and second-largest oil exporter. Given low inventories and dwindling spare capacity, the oil market cannot afford large supply disruptions,” said UBS analyst Giovanni Staunovo.
“Supply concerns may also spur oil stockpiling activity, which supports prices.”
Russia is also the largest provider of natural gas to Europe, providing about 35% of its supply.
UK Prime Minister Boris Johnson vowed Britain and its allies would unleash a massive package of economic sanctions on Russia and said the West must end its reliance on Russian oil and gas.
China warned on the impact of tensions on the stability of the energy market.
“All countries that are truly responsible should take responsible actions to jointly maintain global energy security,” a Chinese foreign ministry spokesperson said.
Global oil supplies remain tight as demand recovers from pandemic lows.
Underscoring the tight market, premiums on crude contracts for loading in one month over contracts for loadings in six months , a metric closely watched by traders, hit a record high at $11.55 a barrel.
“This growing uncertainty during a time when the oil market is already tight does leave it vulnerable, and so prices are likely to remain volatile and elevated,” said Warren Patterson, head of ING’s commodity research.
Analysts believe that Brent is likely to remain above $100 a barrel until significant alternative supplies become available from OPEC, U.S. shale or Iran, for example.
The United States and Iran have been engaged in indirect nuclear talks in Vienna that could lead to the removal of sanctions on Iranian oil sales.
Iran’s top security official Ali Shamkhani said on Twitter on Thursday that it is possible to achieve a good nuclear agreement with Western powers after significant progress in negotiations.
Analysts are warning of inflationary pressure on the global economy from $100 oil, especially for Asia, which imports most of its energy needs.
“Asia’s Achilles heel remains its vast import needs for energy, with surging oil prices bound to take a hefty bite out of income and growth over the coming year,” said HSBC economist Frederic Neumann.
Source: Reuters