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Oil Workers At Libya’s Largest Field Want Salary Hikes
The government decided to raise the salaries by 67 percent back in 2013, but the raise never materialized, while Sharara continues to suffer from frequent closures due to armed groups occupying it.
According to Reuters, workers at two other oil fields in Libya are also demanding a salary increase by two thirds.
Libya’s internationally recognized National Oil Corporation (NOC) supports the salary hike demands, saying that oil workers continue to work under extremely difficult circumstances, adding that it was disappointing that a salary increase has not been included in Libyan government’s budget for this year.
In early March, the Sharara oil field returned to operations after being closed for production in December, when clashes between militant groups forced NOC to institute a force majeure.
Sharara has been one of the main reasons the North African country is widely seen as a wild card in global oil price forecasts.
Since it accounts for around a third of the country’s total oil output, Sharara, like the export terminals in the Oil Crescent, has become a natural target for various groups vying for power and control over Libya’s oil wealth.As of last week, Libya’s oil production was 1.2 billion pbd according to Tripoli-based finance minister Faraj Bomtar, and a further increase is expected in the coming days.
Sharara was said to be pumping 270,000 bpd as of March 19.While rising production at Sharara could boost Libyan oil production and revenues, security issues and frequent outages at the field and at other Libyan facilities and ports make market observers and OPEC cautious about predicting supply from the country.
Source: Oilprice.com
Next Maritime Dispute-Egypt/Sudan
Just recently Egypt’s South Valley Egyptian Petroleum Holding Co. or Ganope, offered up 10 oil and gas exploration blocks in the Red Sea for sale through a tender, with bids due to close on August 1. Sudan claims that at least some of those blocks are in its waters and urges oil and gas companies against submitting bids on them.
The Halayeb triangle, which is controlled by Egypt, has been claimed by Sudan since the 1950s. Cairo says it is Egyptian territory and it has long been a source of contention between the two neighbors.
Foreign Ministry Undersecretary Badreddin Abdullah expressed Sudan’s protest at the offer and called on Egypt “not to proceed in this direction that contradicts the legal status of the Halayeb triangle,” the Ministry said in a statement.
On March 20, Saad al-Deen Hussein al-Bishri, Minister of State at Khartoum’s Ministry of Oil, said that offering four of the 10 blocks and other unnamed ones “within Sudanese lands in the Halayeb area … are considered a direct intrusion into the authorities of the Sudanese Oil and Gas Ministry in granting licenses for oil and gas exploration in that area.”
A report by SUNA, Sudan’s state-news agency, cited al Bishiri as saying “It is considered an illegal operation that carries legal consequences which will be borne by the entities carrying out this operation.”
Sudan’s Foreign Ministry “warns companies operating in the field of oil and gas exploration against submitting any bids in the mentioned area”, it said in the statement. Sudan “renews the invitation extended to brotherly Egypt to use peaceful means to end this border dispute.” Source: petroleumafrica.com
Tanzania LNG Talks to Begin in April
Construction of an LNG export terminal near huge offshore natural gas discoveries in Tanzania’s deepwater arena have been delayed by regulatory issues for a few years.
“The government has officially decided to begin talks in early April for construction of the LNG project,” Tanzania’s energy ministry said in a statement. “We are keen to implement this key project for the economy and we plan to … conclude the talks in September this year.”
The talks are aimed at negotiating a host government agreement, which is seen as a crucial step towards reaching a FID for the project.
The decision to push talks forward was reached following a meeting on March 22 between the African country’s energy minister, Medard Kalemani, and Mette Ottøy, a senior VP at Equinor.
Equinor, alongside Royal Dutch Shell, Exxon Mobil and Ophir Energy, plan to build a $30 billion onshore LNG plant.
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Electrification of vehicles is crucial to fuel economy
Electrification of vehiclesElectrified vehicles are already contributing positively to improve the country-weighted average fuel consumption by up to 3.5%. Japan experienced the largest gains due having to the largest market share globally for hybrids, followed by the United States with a mix of electrified vehicle types (HEV, BEV, and PHEV). Electrification in China was also very relevant to improve the average fuel economy, thanks to a fast-growing market share for BEVs and PHEVs. Countries that currently have high average fuel consumption values (which typically go hand-in-hand with high shares of large and heavy vehicles) can benefit the most from electrification since electrified vehicle efficiency is less dependent on size and weight.
Policy recommendationsMeeting the 2030 GFEI target at the global level requires a widespread adoption of regulatory policies setting requirements for the improvement of fuel economies over time, combined with fiscal instruments to stimulate consumer demand for the vehicle technologies that offer the best performance. Long-term commitments are important to ensure that the investments necessary to deploy electrification technologies, which are crucial to meeting the GFEI targets in a phase where consumers are losing confidence in diesel, can take place. Tightening the rules governing the measurement of fuel consumption during tests, combined with measures capable of safeguarding on-road compliance, are essential to ensure that all stakeholders take effective action to meet the policy goals.
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Baru Reveals Algeria Pipeline Plans
Maikanti Baru, head of NNPC, told members of PETAN that in furtherance of NNPC’s African integration drive, it was considering extending the ongoing Ajaokuta-Kaduna-Kano (AKK) gas pipeline system across the Sahara to Algeria. NNPC indicated more than six months ago that it was working with a Chinese consortium to finalize the term sheet for financing of the 614-km, AKK pipeline project estimated to cost $2.8 billion.
Baru also revealed that the government plans to extend the WAGP to Morocco, reaffirming the government’s plan to the WAGP to Morocco, and commended PETAN for its contribution to the development of the Nigerian petroleum industry.
The NNPC chief confirmed the company was making progress in its search for oil in the northern part of the country, adding that the Kolmani River-II well, which spud last month, has recorded a drilling progress of 6,700 ft. According to a statement, Baru made the disclosures when he received an award from executives of the Petroleum Technology Association of Nigeria (PETAN). The statement signed by NNPC’s Group General Manager, Group Public Affairs, Ndu Ughamadu, quoted Baru as saying that the target of the corporation for the Kolmani River drill was 14,200 ft, even as he added that the depth could be longer, depending on findings