Ghana: GNPC Allocates US$10 Million For Petroleum Hub ProjectHe stated, however, that the wind of change is not taking place as much as it should in sub-Saharan Africa. Dr. Babajide, who has over 20 years’ experience in the oil industry and one of the world’s leading offshore production experts, was of the view that sub-Saharan Africa, China, and India are places where oil demand is rising, unlike the UK, North America, among a host of advanced countries, where a lot of new technologies are coming into play. “However, in Africa, it is still the only commodity that can satisfy the demands of an increasing population, an expanding middle class, and in some cases, the main source of governments’ earnings. We still have a lot of oil,” he asserted. Dr. Babajide explained that as a result of the enormous deposits of oil and gas, operators and service companies are doing what they can to optimize production cost and continue producing the commodity. “As stated, a lot of these African countries do depend substantially on oil revenue for survival. Oil still plays a large role in these sub- Saharan countries’ economies, accounting for up to 40 percent of GDP and 80 percent to 90 percent of governments’ earnings,” he stated. The Director of National Oilwell Varco, the largest Oilfield equipment manufacturing company in the world, said 90 percent of the earnings of the Government of Nigeria come from oil and the same as Angola, Gabon and the rest of oil-producing countries in sub- Saharan Africa. With these figures, he was convinced that the shift to renewable energy at the expense of oil and gas in sub-Saharan Africa has not been the focus for now, and this must change. “There is no push for anything different. They are still aggressively trying to source foreign exchange, which for the most part, they can only do that through oil,” he opined. According to him, wind energy, electric cars and a lot of other renewable energy options and integrated gasification in the combined cycle, IGCC from coal have to come into play. Source: www.energynewsafrica.com
Sub-Saharan Africa Has No Choice Than To Stick To Fossil Fuel-Dr Babajide Agunbiade.
As the world is drifting towards the use of renewable energy to power their economies, sub-Saharan Africa has no choice than to focus on exploring the use of oil and gas to support their economies, and this is according to Dr. Babajide Agunbiade, Director for Houston -based National Oilwell Varco.
Speaking in an interview with U.K – based Channel TV Business Desk, on the global rising oil demand, monitored by energynewsafrica.com, Dr. Agunbiade said despite the adverse effect of Covid-19 resulting in lower oil production, demand for oil and gas has peaked as a result of the use of an alternative source of energy that does not require fossil fuel.
Noble Energy Shareholders Approve $4.1 Billion Sale To Chevron
Stakeholders of Noble Energy have approved a deal to sell the oil and gas producer to Chevron Corp.
This makes Chevron the No. 2 U.S. shale oil producer and giving it international natural gas reserves close to growing markets.
The all-stock deal values Noble Energy at around $4.1 billion, excluding $8 billion in debt, and the vote cements the first big energy deal since the coronavirus crushed global fuel demand.
The addition of Noble will boost Chevron’s U.S. shale oil holdings, making it the No. 2 producer behind EOG Resources, according to data from Rystad Energy.
It also adds nearly 1 billion cubic feet of natural gas reserves.
Somalia: Seven Offshore Oil Blocks Offered To Investors In Maiden Licensing Bid RoundNoble’s Leviathan in Israeli waters, one of the world’s biggest offshore gas discoveries of the last decade, began pumping gas from the field late last year. While 89% of Noble shareholders voted in favor of the deal, just 60% voted for merger-related executive payouts, according to regulatory filings. Proxy adviser Glass Lewis had recommended voting for the deal but against “excessive” executive payments, which would be triggered by the sale of the company. The deal has become even cheaper for Chevron since it was announced in July with a value of $5 billion, as shares of both companies have traded down alongside oil. The deal is worth about $4.1 billion based on Friday’s closing price for Chevron of $71.19. Noble investors will receive 0.1191 shares of Chevron for each Noble share. Activist investor Elliott Management Corp, which took an undisclosed stake in Noble but never came out publicly against the deal, declined on Friday to say how it voted its shares or whether it has sold or kept its stake. The deal is expected close early this quarter. It comes during a tumultuous year for the oil and gas industry and “the hurdles remain high for corporate deals,” said Jennifer Rowland, analyst with Edward Jones. “Any deal that requires significant cost savings or a higher oil price to justify the price paid will not be well-received.” Chevron last year walked away from a deal for Anadarko Petroleum and took a $1 billion break fee, a decision that looked even better as oil prices cratered. Source: www.energynewsafrica.com
Nigeria: NERC Calls For Abolition Of Electricity Tariff Subsidy
The Nigerian Electricity Regulatory Commission (NERC) has called for the abolition of electricity tariff subsidy
It advised that money meant for the subsidy be channeled to other sectors of the economy such as health and education.
According to reports sighted by energynewsafrica.com, the Commission in a statement signed by its Vice Chairman, Sanusi Garba, said in 2019 the Federal Government spent N540bn subsidising electricity.
The Commission also advocated for service reflective tariffs so that people will pay for the electricity they consume.
He said the tariff review has been shifted two times and such is not in the best of the country
“The time of the review has actually been shifted twice, in consideration of the exigencies that obstructed everybody, particularly the COVID-19 pandemic and other situations.
Nigeria: Inconsistent Policies Frustrating Investments In Oil Sector — Total MD“But you cannot continue to defer the review indefinitely because you should look at electricity supply as a value chain. Generation companies are spending money to produce electricity and TCN (Transmission Company of Nigeria) is transmitting that electricity to the distribution companies.” NERC said NERC added that electricity is a commodity somebody has to pay for and rates review cannot be postponed indefinitely. “If you continue to defer the rates review, unless government has the resources to fill in the gap, the implication is that you will see service plummeting significantly. “This is because at the end of the day, the generators will not be paid. And if the generation companies are not paid, it means that they will not be able to pay for gas. And so the 3,000 megawatts, 4,000MW and occasionally 5,000MW that we are getting now will significantly come down,” NERC said Source: www.energynewsafrica.com
Equatorial Guinea, Russia Officially Break Ground On Their Geological Mapping Project In Río Muni
Last week marked an important step in the energy cooperation between Equatorial Guinea and Russia, as the first team of Russia’s state-owned joint stock company Rosgeo arrived in Equatorial Guinea to kick off a historic geological mapping project.
The initiative has been in the making for some time, and follows the signing of Memorandum of Understanding (MoU) during the Russia-Africa Summit in Sochi in 2019 between Rosgeo and the Ministry of Mines and Hydrocarbons (MMH).
It was followed by the signing of two firm services contracts in May 2020 with JSC Zarubezhgeologia and JSC Yuzhmorgeologia, internationally operating subsidiaries of Rosgeo, for the initial phase of seismic acquisition in transit zone and state geological mapping in the Rio Muni area in mainland Equatorial Guinea.
As a result, JSC Zarubezhgeologia will be performing scouting works for state geological mapping, and JSC Yuzhmorgeologia will be performing scouting works for complex seismic acquisition in the transit zone of Rio Muni.
The activities are notably aimed at analyzing landscape conditions for geological surveying and prospecting, determining the scope of mapping drilling, researching the possibility of mineralogical sampling of channel deposits, analyzing technical conditions for the arrangement of geological camp in Rio Muni, and other scouting necessary to prepare for next phases of exploration works.
Equatorial Guinea: Russia’s Rosgeo, MMH Sign Hydrocarbon Exploration ContractEqually important, the program marks the re-entry of Rosgeo into Equatorial Guinea following successful operations of its subsidiary JSC Zarubezhgeologia back in the 1970s when its activities formed the basis for Equatorial Guinea’s geological exploration industry. “This is a historic moment for Equatorial Guinea as we welcome once again long-standing partners of our country to explore onshore Río Muni. We expect this region of Equatorial Guinea to become a new natural resources hub both for onshore oil & gas operations but also for mining and minerals. Upcoming exploration activities will provide the foundation for this next phase of growth in our industry, and having Rosgeo on the ground gives us confidence and faith for a successful exploration campaign,” declared H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons. The Rio Muni area is believed to be one of the most promising exploration frontiers in Equatorial Guinea, which could turn the country once again into a hotspot for natural resources exploration. Increased exploration is expected not only to help in sustaining and increasing domestic output of oil and gas, but also in proving additional reserves in key minerals to help Equatorial Guinea further diversify its economy. Source: www.energynewsafrica.com
Libya’s Post-War Oil Exports Near 300,000 Barrels Per Day
Libya’s oil output has risen to 295,000 barrels following a truce in the OPEC nation’s civil war and the lifting of a blockade on energy facilities.
According Worldoil.com sources, fields that feed the newly restarted eastern ports of Hariga, Brega and Zueitina are ramping up production.
Output was 250,000 barrels a day a week ago and will rise further as ships dock and load crude from storage tanks, allowing fields to pump more, the person said.
Libya’s restart is weighing on oil prices just as traders become more bearish about the outlook for energy demand with many nations introducing stricter restrictions to curb the Coronavirus pandemic.
Brega is set to export 1.8 million barrels in October via three cargoes, according to a loading program. Zueitina is set to load five cargoes.
South Africa: Sasol Books US$5.2 Million Loss In First Half Of 2020Hariga has loaded two tankers of one million barrels each in the past two weeks. The loading programs are preliminary and Libya may export more than the schedule suggests. The country, home of Africa’s largest oil reserves, pumped around 1.2 million barrels a day at the start of the year, before the blockade shut down most ports and fields. State energy firm National Oil Corp. is evaluating security at Libya’s four other onshore oil ports — including Zawiya, which handles crude from Sharara, the nation’s biggest field — before restarting them. Mercenaries involved in the civil war still occupy or are located near some of them. Source:www.energynewsafrica.com
Ghana: CBOD Donates Projectors To University Of Cape Coast’s Faculty Of Arts
The Chamber of Bulk Oil Distributors (CBOD) has donated some projectors to the Faculty of Arts Department of the University of Cape Coast in the Central Region of the Republic of Ghana.
This follows a request from the Faculty to the Chamber for assistance to procure projectors in order to help improve teaching and learning.
Presenting the items on behalf of the board and management, CEO of CBOD, Senyo Hosi said in the age of digitalisation, it has become necessary for teaching institutions to use modern technologies.
“We need to have our students and lecturers build on their presentation skills effectively with modern technology,” he said.
Dean of the Faculty Professor Prof. Kwame Osei Kwarteng, who led a delegation from the UCC’s Faculty of Arts to receive the items in Accra, the capital of Ghana, expressed gratitude to the CBOD.
“We are in the fourth industrial revolution, so now is the time that there is the need for us to use this equipment [projectors, computers, laptops, ipads, etc.] so that it can enhance teaching, learning and research. We don’t have them in our departments. Since I became the Dean, I made it one of my visions to ensure we get it. “Financially, we were constrained and fortunately, we invited you to attend our roundtable discussion and I put this before you and you have graciously responded. It was Covid that delayed but better late than never. We are going to put it to proper use.”
German Energy Investors Have A Bright Future In A Post-Covid 19 AfricaSenyo Hosi encouraged corporate Ghana to lend their support to academia to help in developing the skills of Ghana’s youth with the right resources. He also commended the UCC for its strides in education. In 2019, Senyo Hosi participated in a roundtable discussion organised by UCC on the topic: ‘Preparing Graduates for the World of Work: The role of Universities’.
Oil Price Slide Continues On Trump’s Positive Coronavirus Test
Oil extended losses on Friday as it got caught up in a broad downward move in financial markets after President Donald Trump said he had tested positive for the Covid-19 virus.
Futures in New York fell toward $37 a barrel, while global benchmark Brent dropped as much as 3.7%.
The U.S. president announced that he and First Lady Melania Trump had tested positive for Covid-19, shortly after one of his closest aides, Hope Hicks, had fallen ill with the coronavirus. Asian stocks retreated, as did European and U.S. equity futures, while the dollar swung wildly.
Trump’s positive result will likely sharpen already intense attention on his handling of the pandemic as he campaigns for re-election against Democrat Joe Biden, who leads in national polls. Oil was already lower before the news as the chance of any more U.S. fiscal stimulus before the November election appeared to be fading after talks yielded no immediate breakthrough.
“Trump and the coronavirus news, along with the setback to the talks on the U.S. stimulus package, are just triggers and they’re serving as a reminder that the global economy is in trouble at least for the next six months,” said Vandana Hari, founder of Vanda Insights in Singapore. “What’s coming on top of that is the realization that there’s more supply coming into the market just as demand growth is weakening.”
The coronavirus is resurgent in Europe and hasn’t been brought under control in big economies such as India, leading to a chorus of forecasters scaling back their estimates for when oil demand will get back to pre-virus levels. Still, the Organization of Petroleum Exporting Countries’ crude production was almost unchanged last month from August, according to a Bloomberg survey.
Oil prices are heading for their fourth weekly loss in five amid signs demand has stabilized well below pre-virus levels as the pandemic proves stubbornly persistent. Chinese buying has flagged in recent months after a spree earlier in the year and there’s still a big overhang of inventories worldwide, while refiners are struggling with growing gluts of diesel and jet fuel.
The United Arab Emirates cut its oil output to the lowest in two years, offsetting increased Saudi Arabian exports as well as added output from Venezuela, Libya and Iran. Iraq also said it remains committed to the OPEC+ cuts, including extra curbs to compensate for previous overproduction.
OPEC production averaged 24.43 million barrels a day in September, according to the Bloomberg survey, compared with 24.39 million in August. Output was as high as 30.44 million in April as producers opened the taps amid the price war.
The prompt spreads for both WTI and Brent have fallen a bit further into contango –where near-dated prices are cheaper than later-dated ones — this week, suggesting concern about over-supply is increasing slightly.
“Having already had to deal with growing concerns over the demand outlook, the oil market has been unable to escape the broader market sell-off following President Trump’s positive Covid-19 test result,” said Warren Patterson, head of commodities strategy at ING Bank NV in Singapore
Source: Worldoil.com
Ghana: Minister Rallies Support For $50 Billion Petroleum Hub Project In Western Region
Chiefs and people of the Western part of the Republic of Ghana have been asked to support the Government of Ghana’s Petroleum hub project by ensuring that there is peaceful environment for the smooth execution of the US$50 billion project.
The project is one of the government’s strategic anchor initiatives that would serve as a new pillar of growth in the Ghanaian economy.
It would accelerate the growth of Ghana’s petroleum downstream sub-sector and make it a major player in the economy and, consequently, ensure development of sustainable value, wealth creation and the progress of the industry.
Ghana: Four New Oil Refineries In The OffingThe petroleum hub, which will occupy a land space of about 20,000 acres, would have four refineries each with a capacity of 150,000bpd, two oil jetties, storage tanks for crude and two petrochemical plants. The project, which is a private sector led initiative, is expected to be completed by 2030. Addressing stakeholders in the Western Region at a three-day Inception Launch and Data Validation Workshop for the development of ‘Master Spatial Plans’ for the project at the Bonyere Traditional Area, the Western Regional Minister, Kwabena Okyere Darko Mensah noted that investments in the petroleum hub project are expected to transform the economy through export tax of about $1.56 billion by 2030, increase GDP by about 70 percent and create jobs in excess of 780,000. According to the Minister, indigenes from the Western Region need to hone their skills and capacities, reposition themselves to enable them participate meaningfully in this wealth creation, along the value chain of petroleum downstream sector and create synergies as indigenous/local businesses. Okyere Darko Mensah tasked the participants to contribute their quota to help inform the government in shaping policies which will trigger growth and put Ghana in a very strategic economic position in the West African sub-region and on the global stage. “I entreat you to participate effectively in the workshop and make your inputs known. I will also entreat the chiefs and people of this area to ensure that the peaceful environment of the project is maintained. We, at the Regional Coordinating Council, will continue to play our coordinating, monitoring and evaluation role to ensure that this project is delivered in record time for the benefit of Ghana as a whole,” the Minister assured. Source: www.energynewsafrica.com
Cameroon: Ghanaian Businessman, Togbe Afede XIV, Explores Opportunities In The Power Sector
Ghanaian Businessman and President of Ghana’s National House of Chiefs, Togbe Afede XIV, who was recently crowned Entrepreneur of the Decade, has taken his passion for the development of Ghana and Africa to the territories of the Republic of Cameroon.
Togbe Afede XIV, who is the Founder of SAS Finance Group and Africa World Airlines, and Co-founder of Sunon Asogli Power Ghana Ltd, led a team from Sunon Asogli Power Ghana Ltd, one of the Independent Power Producers in Ghana, to explore opportunities in the power sector of Cameroon.
The team also explored the prospects for Accra-Yaounde-Accra flights, via Douala, by African World Airlines.
During the visit, the team met with the Minister for Water Resources and Energy, the Director of Electricity at the Ministry, and top executives of Electricity Sector Regulatory Agency.
Nigeria: Stop Singing Praises And Work To Resolve Power Problems –Nigerians Tell Power MinisterThe team was also privileged to meet with His Excellency the Prime Minister of the Republic of Cameroon, Dr Joseph Dion Ngute. The Prime Minister, on behalf of the President and the people of Cameroon, welcomed his guests and expressed the hope that Sunon Asogli Power and Africa World Airlines would invest in Cameroon. The Prime Minister, who is also a traditional leader, expressed excitement about Togbe Afede’s plans to promote collaboration among African traditional leaders. He stressed the importance of Africa to Africa collaboration in moving the continent forward. Source:www.energynewsafrica.com
Nigeria: It Makes No Sense For Oil To Be Sold Cheaper In Nigeria Than Saudi Arabia —Buhari
Nigeria’s President H. E. Muhammadu Buhari has said it will make no sense for Nigeria to sell petroleum products at prices lower than those sold in neighbouring countries.
The punchng.com quoted Nigerian leader as saying while delivering a speech on the occasion of Nigeria’s 60th Independence Anniversary at Aso Villa, Abuja on Thursday.
Buhari said, “Fellow Nigerians, in addition to public health challenges of working to contain the spread of the Coronavirus, we have suffered a significant drop in our foreign exchange earnings and internal revenues due to 40 per cent drop in oil prices and steep drop in economic activities, leading to a 60 per cent drop in government revenue.
“Our government is grappling with the dual challenge of saving lives and livelihoods in face of drastically reduced resources.
“In this regard, sustaining the level of petroleum prices is no longer possible. The government, since coming into office has recognized the economic argument for adjusting the price of petroleum. But the social argument about the knock-on effect of any adjustment weighed heavily with the government.”
Continuing, the President added, “Petroleum prices in Nigeria are to be adjusted. We sell now at N161 per litre. A comparison with our neighbours will illustrate the point.
“Chad, which is an oil-producing country, charges N362 per litre. Niger, also an oil-producing country, sells oil at N346 per litre. Ghana, another oil-producing country, petroleum pump price is N326 per litre. Egypt charges N211 per litre. Saudi Arabia charges N168 per litre.
“It makes no sense for oil to be cheaper in Nigeria than in Saudi Arabia.”
Source:www.energynewsafrica.com
ExxonMobil To Proceed With Payara Development Offshore Guyana
U.S oil and gas giant, ExxonMobil, has made its final investment decision to proceed with the Payara field offshore development in Guyana after receiving government approvals.
Payara is the third project in the Stabroek Block and is expected to produce up to 220,000 barrels of oil per day after startup in 2024, using the Prosperity floating production, storage and offloading (FPSO) vessel.
The $9 billion development will target an estimated resource base of about 600 million oil-equivalent barrels. Ten drill centers are planned along with up to 41 wells, including 20 production and 21 injection wells.
“ExxonMobil is committed to building on the capabilities from our Liza Phase 1 and 2 offshore oil developments as we sanction the Payara field and responsibly develop Guyana’s natural resources,” Liam Mallon, president of ExxonMobil Upstream Oil & Gas Company said in a press statement.
“We continue to prioritize high-potential prospects in close proximity to discoveries and maximize value for our partners, which include the people of Guyana he added.”
ExxonMobil’s first offshore Guyana project, Liza Phase 1, began producing in late 2019, well ahead of the industry average for development time. Liza Phase 2, remains on track to begin producing oil by early 2022. It will produce up to 220,000 barrels of oil per day at peak rates using the Liza Unity FPSO, which is under construction in Singapore.
ExxonMobil is evaluating additional development opportunities in the Stabroek Block, including Redtail, Yellowtail, Mako and Uaru resources, and plans to have five drillships operating offshore Guyana by the end of this year.
As new projects proceed, investment in the Guyana economy increases. More than 2,000 Guyanese are now supporting project activities on and offshore, a 50 percent increase since 2019. ExxonMobil and its prime contractors have spent over $300 million with more than 700 local companies since 2015. More than 2,500 Guyanese companies are registered with the Centre for Local Business Development, which was founded by ExxonMobil and its co-venturers in 2017 to build local business capacity to support global competitiveness.
The Stabroek Block is 6.6 million acres (26,800 square kilometers) with current discovered recoverable resources estimated at more than 8 billion oil-equivalent barrels. The 18 discoveries on the block to date have established the potential for at least five FPSO vessels producing more than 750,000 barrels of oil per day by 2026.
ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 percent interest.
Source:www.energynewsafrica.com
Nigeria: Stop Singing Praises And Work To Resolve Power Problems –Nigerians Tell Power Minister
A section of Nigerians have called on the country’s Minister for Power, Engr Sale. Mamman, to stop what they described as praise singing and empty promises and instead fix the power problems that are making life unbearable in the country.
This came on the back of a tweet by the Power Minister on Wednesday, which sought to assure Nigerians that Buhari’s administration was working to fix the power problems.
In the tweet sighted by energynewsafrica.com, Engr Mamman, said: “In the near future, we, Nigerians, will be able to look back with pride and say the administration of President Muhammadu Buhari fixed and transformed the power sector. We are on the right track.”
However, his tweet attracted criticisms from Nigerians who felt the Buhari-administration was not doing well to address the power problems.
A twitter, Ahmad Shehu Ph.D replied: “Stop the talking and do the work, Mr Minister. You’re not an ordinary citizen and shouldn’t, therefore, spend the data taxpayers bought for you in ranting and unrealistic praise singing.”
Another twitter handler, Engr. Ubongabasi Akpabio said: “What is he actually doing? Because if we want to do a comparative analysis between his regime and that of Goodluck Jonathan, we could boldly say without prejudice that Goodluck Jonathan took more decisive steps towards augmenting power generation, transmission and distribution.”
Nigeria has 12,500 MW of installed generation capacity, being largely dependent on hydropower and fossil (gas) thermal power sources; 12.5% and 87.5% respectively. However, only 3,500 MW to 5,000 MW is typically available for onward transmission to the final consumer. NIGERIA ENERGY SECTOR OVERVIEW Nigeria is the largest economy in sub-Saharan Africa, but limitations in the power sector constrain growth. Nigeria is endowed with large oil, gas, hydro and solar resource, and it already has the potential to generate 12,522 megawatts (MW) of electric power from existing plants, but most days is only able to generate around 4,000 MW, which is insufficient. Nigeria has privatized its distribution companies, so there is a wide range of tariffs. Generation Capacity • Installed Capacity: 12,522 MW • Thermal: 10,142 MW • Hydro: 2,380 MW • Reached Financial Close: 3,034 MW • Power Africa 2030 Pipeline: 11,750 MW Connections • Current Access Rate: 45% • Rural: 36% Urban: 55% • Households without Power: 20 million • Target: Universal access by 2030 • Power Africa New Off-Grid Connections: 454,432 • Power Africa New Grid Connections: 496,723 Source:www.energynewsafrica.comIn the near future, we Nigerians will be able to look back with pride and say the administration of President @MBuhari fixed & transformed the Power sector.
— Engr. Sale Mamman (@EngrSMamman) September 30, 2020
We are on the right track!
Shell Plans To Cut Up To 9,000 Jobs
Oil major Shell has confirmed plans to cut between 7,000 and 9,000 jobs in a push to save up to $2.5 billion by 2022.
The company on Wednesday said the move is expected to deliver sustainable annual cost savings of between $2 to $2.5 billion by 2022.
This will partially contribute to the announced underlying operating cost reduction of $3 to $4 billion by the first quarter of 2021.
According to Shell, job reductions of 7,000 to 9,000 are expected, including around 1,500 people who have agreed to take voluntary redundancy this year, by the end of 2022.
Upstream
In the upstream sector, Shell said it expects production to be between 2,150 and 2,250 thousand barrels of oil equivalent per day, which includes a production impact of 60 to 70 thousand barrels of oil equivalent per day from hurricanes in the US Gulf of Mexico.
Realised liquids prices in the first two months of this quarter reflected a 15 to 20 per cent discount to Brent, similar to the discount in the second quarter of 2020.
Realised gas prices are trending in line with Henry Hub.
Depreciation is expected to be at a similar level as in the second quarter of 2020.
Integrated gas
In the area of gas, Shell said it expects production is expected to be between 820 and 860 thousand barrels of oil equivalent per day and LNG liquefaction volumes are expected to be between 7.9 and 8.3 million tonnes.
Trading and optimisation results are expected to be below average.
A one-off tax charge is expected to have a negative impact on Adjusted Earnings in the range of $100 to $200 million; no cash impact is expected in the third quarter.
Approximately 80 per cent of Shell’s term sales of LNG in 2020 have been oil price linked with a price-lag of up to 6 months. Consequently, lower realised prices due to this price-lag are expected to have a significant impact on LNG margins in the third quarter.
Shell said that CFFO can be impacted by margining resulting from movements in the forward commodity curves up until the last day of the quarter.
Source: www.energynewsafrica.com
Mozambique President Named Africa Oil & Power’s “Person Of The Year” For 2020
The President of Mozambique, H.E. Filipe Nyusi, has been selected as Africa Oil & Power’s “Person of the Year” for 2020.
This prestigious award is presented to exceptional individuals who display true leadership and innovative thinking in steering their countries or organizations to the forefront of the global energy sector.
President Nyusi has been at the helm of Mozambique’s energy sector during its many recent successes, including several multibillion gas projects which are now in development in this Southern African country.
These natural gas projects, once fully actualized, represent more than three times the country’s current GDP, with the Exxon-led Rovuma LNG project valued at $23.9 billion; the country’s Total-led gas project valued at $23 billion; and the $4.7 billion Coral FLNG project, which is expected to reach first gas in 2022.
“H.E. Filipe Nyusi has led the charge in creating an enabling environment in the energy industry and the broader economy that paved the way for extraordinary energy deals which Mozambique currently enjoys,” said Jude Kearney, former Deputy Assistant Secretary for Service Industries and Finance at the US Department of Commerce during the Clinton Administration and currently President of Kearney Africa Advisors.
“I can think of no better individual in Africa’s energy space on whom to bestow this award. Mozambique has a bright future ahead as international gas projects drive new growth, job creation, economic development and prosperity,” added Kearney.
Not only has President Nyusi been instrumental in the deals coming through, he has also helped drive a focus on national capacity building and has made sure the projects set aside natural gas for domestic use, setting the country on a path towards economic diversification and energy security.
“H.E. President Filipe Nyusi has worked hard to create an environment that ensures that a strong gas industry will create jobs, boost entrepreneurship, protect our environment, diversify our economy for the benefit of all the citizens and generate much-needed revenue for the government. The President has made the energy sector a crucial component of the economic well-being of Mozambique,” said Florival Mucave, CEO of the Mozambican Oil & Gas Chamber.
“H.E. President Filipe Nyusi has taken Mozambique from a place of relative obscurity in the energy markets, to a place of leadership in the global natural gas industry,” said Renée Montez-Avinir, Managing Director of AOP.
“His leadership has been instrumental in bringing these mega natural gas projects to fruition, providing vital investment security to close several multi-billion dollar deals. There is no doubt, the natural gas projects will transform Mozambique, bringing progress and prosperity to the entire country and placing Mozambique at the forefront of a global natural gas revolution,” added Montez-Avinir.
In office since 2015, Nyusi has aggressively pursued an anti-corruption campaign; continued to lead the country in peace; and has successfully navigated the country through incredible challenges, including Tropical Cyclone Idai that struck Mozambique in 2019 and the economic fallout presented by COVID-19 this year.
H.E. Filipe Nyusi has steered Mozambique through incredible challenges, and is leading the country to demonstrable economic success.
Africa Oil & Power will present H.E. Filipe Nyusi, President of Mozambique, with highest honors at the Mozambique Gas & Power 2021 event.
Source: www.energynewsafrica.com