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Dangote, Total, Honeywell, 9 Others Get 30% of $367m Special Forex Sale

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  • Dangote, Total, Honeywell, 9 Others Get 30% of $367m Special Forex Sale

Twelve firms bought 30 per cent of the special foreign exchange sales of $367 million conducted by the Central Bank of Nigeria (CBN) on March 2nd, 2017.

The firms are Dangote Sugar Refinery Plc, De-United Food Plc, AMCON/MRS, Total Nigeria Limited and Honeywell Flour Mills Plc. The others are Dangote Cement Plc, MINL Limited, Forte Oil, Conoil PLC, Rahamanniya Oil & Gas, Seven Up Plc and Bua Sugar. The 12 firms altogether bought $101.33 million during the special dollar sale.

The CBN disclosed this in the result of the Secondary Market Intervention Sale (SMIS) conducted on March 2nd 2017 posted on its website yesterday. Under the new foreign exchange regime, the CBN occasionally conducts SMIS to clear backlog of matured foreign exchange obligations.

The result of the SMIS conducted on March 2nd, shows that the apex bank sold $367 million to 950 firms through their banks.

The result indicated that the amount sold by the apex bank was 282 per cent higher than the $95.9 million sold to 567 firms during the previous SMIS conducted on February 28th.

Leading the top five beneficiaries is Dangote Sugar Refinery Plc, which bought $25.55 million to import raw sugar. It was followed by De-United Food Plc, which bought $9.6 million to import wheat, seasoning materials and packaging materials. Asset Management Corporation of Nigeria (AMCON) also purchased $9.6 million on behalf of MRS Oil Plc to import petroleum products, while Total Nigeria Plc purchased $8.6 million to import petrol and base oil. Honeywell Flour Mills Honeywell Flour Mills Plc on its part purchased $8 million to import wheat.

These were followed by Dangote Cement Plc-$7.5 million, MINL Limited-$6.7 million, Forte Oil- $6 million, Conoil Plc-$5.4 million, Rahamanniya Oil & Gas-$5.4 million, Seven Up Plc-$4.73 million, Bua Sugar-$4.5 million.

CBN sustain intervention with $100m

Meanwhile the CBN yesterday continued its intervention in the foreign exchange market, by selling $100 million in the forwards, to be delivered within next 60 days.

Confirming this development, Acting Director of Corporate Communications at the CBN, mr. Isaac Okorafor said: “The Central Bank of Nigeria (CBN) on Thursday, March 23, 2017 offered the sum of $100 million to meet the requests of wholesale customers, out of which $91 million was taken, indicating greater apprehension among dealers who anticipate a further crash of the dollar in the FOREX market.

The dealers will have value for their respective bids on Friday, March 24, 2017.” While further disclosing that the highest and marginal bid rates were N330/$1 and N320/$1, respectively, Okorafor said no intervention was made by the Bank to meet requests for invisibles on Thursday.

Since Monday February 20th 2017, when it announced new measures to boost dollar supply and forestall the declining fortunes of the naira in the parallel market, the CBN has injected $2.27 billion by intervening in the forex market 12 times as follows: Tuesday February 21st, $417 million; Thursday February 23rd, $231 million; Monday February 27th, $180 million; Friday March 3, $350 million; Monday March 6, N367 million; Tuesday March 7, $100 million; Thursday March 9, $170 million; Tuesday March 14, $190 million; Wednesday March 14, $150 million; Thursday March 16, $100 million, Monday March 20, $143 million and Thursday March 23rd, $100 million.

The CBN Governor, Mr. Godwin Emefiele on Tuesday had vowed that the apex bank would sustain its intervention in the foreign exchange market.

Addressing the press after the Monetary Policy Committee (MPC) meeting on Tuesday, Emefiele warned that those doubting CBN’s ability to sustain the programme would be the losers as, according to him, the rates were already converging.

He said, “We have seen the foreign exchange rates now converging and we are strongly optimistic that the rates will converge further.

“In terms of sustainability, it is important for us to state at this point that reserves are trending upwards, close to $31 billion and the fact that we have done this consistently up to four to five weeks should tell everybody or those who doubt the strength of the CBN to sustain this policy that we are able.

“It remains for me to say that they are taking a risk and are on the wrong side of the bet, given the direction that we are coming from.
“There is a determination to see to the convergence of those rates. And with what we have seen so far, we are very optimistic that those rates will converge.

And all the elements on the foreign exchange market will no doubt be implemented. It is a programme and I am happy to say that that programme is on course. We are happy that it is looking good beyond our expectations and those who remain on the sidelines doubting CBN’s ability to sustain this intervention are on the wrong side of the bet.”

Reacting to the fresh push to cut the powers of the CBN by the National Assembly, Mr. Emefiele said he expected the federal law makers to take decision on the apex of the nation based on international best practices and in the interest of the nation’s economy.

His words, “I have always said that the powers to make or to amend laws rest with the National Assembly. But I am very optimistic that the National Assembly, in an attempt to either make, abrogates or amends the law will in their wisdom, use international best practice, in an attempt to determine the course of action, not just for the CBN but also for the Nigerian economy.”

“It remains for me to say that they are taking a risk and are on the wrong side of the bet, given the direction that we are coming from.

“There is a determination to see to the convergence of those rates. And with what we have seen so far, we are very optimistic that those rates will converge.

And all the elements on the foreign exchange market will no doubt be implemented. It is a programme and I am happy to say that that programme is on course. We are happy that it is looking good beyond our expectations and those who remain on the sidelines doubting CBN’s ability to sustain this intervention are on the wrong side of the bet.”

Reacting to the fresh push to cut the powers of the CBN by the National Assembly, Mr. Emefiele said he expected the federal law makers to take decision on the apex of the nation based on international best practices and in the interest of the nation’s economy.

His words, “I have always said that the powers to make or to amend laws rest with the National Assembly. But I am very optimistic that the National Assembly, in an attempt to either make, abrogates or amends the law will in their wisdom, use international best practice, in an attempt to determine the course of action, not just for the CBN but also for the Nigerian economy.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Energy

Equatorial Guinea to Launch Vision on Post-COVID Energy Transition Plans with Report and Film

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The Africa Energy Series (AES): Equatorial Guinea 2021 campaign – comprising a report and a documentary – will serve as a critical tool to navigate the energy investment landscape in one of Africa’s more mature petroleum producing markets; Equatorial Guinea has largely been able to sustain its pace of engagement with global investors in the face of COVID-19, forecasting $1.1 billion in FDI in oil and gas activities in 2021; The third edition of the AES: Equatorial Guinea 2021 report will be released at Africa Oil & Power’s U.S. Africa Energy Forum 2021 networking event in Washington, D.C. this July.

Africa Oil & Power is proud to announce the upcoming launch of its Africa Energy Series (AES): Equatorial Guinea 2021 investment report and documentary, as part of a multimedia campaign set to champion the domestic energy sector and shape the West and Central African energy narrative.

The dual-language publication will target key developments driving a post-COVID-19 recovery in Equatorial Guinea – namely, the growth of petroleum and power industries; regional gas monetization initiatives; a clean energy transition; the impact of environmental, social and governance criteria; and expansion of the national diversification agenda.

A 30-minute documentary will provide a visual complement to the publication, featuring first-hand interviews with government officials, private sector players, industry regulators and energy experts discussing Equatorial Guinea’s unparalleled ambition and future plans.

“From spearheading regional gas monetization initiatives to drilling new exploration wells as early as Q2 2021, Equatorial Guinea continues to cement its reputation as a progressive, dynamic force on the African energy stage,” said H.E. Gabriel Obiang Lima, Minister of Mines and Hydrocarbons. “The Africa Energy Series publication in conjunction with a detailed documentary format, gives us the voice to showcase the depth of our full-stream investment opportunities to a global audience.”

Since the onset of COVID-19, Equatorial Guinea has been proactive in safeguarding opportunities for foreign investors and continuing to drive capital into its hydrocarbon resources. In February, Chevron achieved first gas flow from the successful execution of its Alen Gas Monetization project, a $475-million investment representing the first phase of Equatorial Guinea’s Gas Mega Hub masterplan.

The Ministry of Mines and Hydrocarbons is currently promoting several capital-intensive projects – including the construction of modular oil refineries, a gold refinery, liquefied petroleum gas strategic tanks, a urea plant and the expansion of a compressed natural gas project – which are open for investment. Last December, the Ministry of Mines and Hydrocarbons announced a forecast of $1.1 billion in foreign direct investment in oil and gas activities in 2021.

Active in Equatorial Guinea since 2015, AOP released its first AES documentary on the country in 2016, followed by investment reports in 2018 and 2019.

The AES: Equatorial Guinea 2021 investment report will be launched at the U.S. Africa Energy Forum 2021 online seminar and in-person networking event in Washington, DC. (July 12). The documentary will be launched at the U.S. Africa Energy Forum conference in Houston (October 4-5) and broadcast globally on news networks.

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U.S. Africa Energy Forum 2021 Launches: Promotes U.S. Role as Primary Investor in African Energy

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The U.S. Africa Energy Forum 2021 – organized by Africa Oil & Power, in partnership with the African Energy Chamber’s U.S.-Africa Committee – will foster alignment between U.S. and African governments’ energy policies and highlight African oil, gas, power and renewable projects across the energy value chain for U.S. investors; the multi-day forum unites U.S. and African policymakers, energy executives and industry leaders to create new linkages and foster discussions that drive long-term policy formation and project execution; the in-person, two-day summit and gala dinner will be hosted in Houston, Texas (October 4-5, 2021) and an online seminar and in-person networking event will be held in Washington D.C. (July 12).

Africa Oil & Power (AOP) and the African Energy Chamber are excited to announce the launch of the first-ever U.S. Africa Energy Forum (USAEF). This event aims to create deeper cooperation between the U.S. and Africa on energy policy, to reach alignment on long term sustainability goals, to stimulate greater American investment in the African oil, gas and power sectors, and to engage and reposition the U.S. as the primary partner of choice for African energy developments.

Under the theme “New Horizons for U.S. Africa Energy Investment” the forum will explore diverse foreign investment and export opportunities across the continent, including natural gas as a vital fuel for the energy transition; energy storage and battery minerals; Africa’s place in global energy supply chains; the benefits of the African Continental Free Trade Area; evolving energy technologies and how they relate to the future role of petroleum resources; and on-and off-grid power developments.

An online seminar and in-person networking event will be held in Washington D.C. on July 12, 2021, building up to the in-person U.S. Africa Energy Forum summit and gala dinner, to be hosted in Houston, Texas, on October 4-5, 2021. Africa Oil & Power and the African Energy Chamber invite all U.S.-based companies with an interest in engaging with African industry leaders and project developers to participate in the USAEF Houston summit.

This initiative comes at an important juncture in U.S.-Africa relations. The Biden Administration’s announcements of its intentions to proactively build a stronger U.S.-Africa partnership coincides with the fact that African projects are seeing rising interest from U.S. companies and lending institutions alike. The USAEF event is thus dedicated to enabling dialogue between its participants that advances these developments.

“Our mission has always been to showcase the resource potential that Africa has to offer while at the same time showing its growing preference for sustainable energy policies and technologies. Toward that end, we hope it becomes evident that Africa does not just want investment capital: it wants smart capital and an accompanying partnership with the investors,” says James Chester, Senior Director of Africa Oil & Power. “The U.S. Africa Energy Forum represents the first-of-its-kind opportunity to catalyze U.S. participation in Africa’s energy transformation – via technology, policy support, capital injection and skills development – and turns a new page in the chapter on global energy investment.”

In partnership with the African Energy Chamber’s U.S.-Africa Committee, AOP will introduce American companies to African opportunities and advance an agenda of sustainable, long-term investment in African energy and other sectors by U.S. organizations.

“The rise in support from the U.S. to the continent is a credit to Africa itself, which is increasingly viewed as a favored destination for global investors, multilaterals and export credit agencies,” says Jude Kearney, President of Kearney Africa and former Deputy Assistant Secretary for Service Industries and Finance at the U.S. Department of Commerce during the Clinton Administration. “Africa continues to command a healthy share of global FDI in oil and gas industries. It has for decades shown that investment in those sectors is favorable compared to other jurisdictions and can be successful by many measures. Even as Africa and the rest of the world wrestles with a global pandemic, Africa’s energy sector shows vitality and resiliency – not only in hydrocarbons but in regard to new opportunities in mining, liquefied natural gas, and agriculture.”

Both African governments and private sector sponsors of African energy projects value highly the combination of investment and partnership that US investors famously convey. The USAEF seeks to enable successful partnerships between its participants such that the energy development goals of U.S. investors and strategic partners and their African counterparts can be achieved.

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Angola’s Petroleum Agency Outlines Timeline for Ongoing Bid-round

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Angola’s National Oil, Gas and Biofuel’s Agency (ANPG) has outlined its timetable for the evaluation of its ongoing 2020 bid round, as interest in the acreage on offer continues to grow.

In line with its statutory duties as national concessionaire in charge of the attribution of petroleum exploration blocks, the ANPG has sought to adjust its processes to remain competitive in the current market environment, which is dominated by concerns around COVID-19, long-term demand considerations and stiff competition from new and promising frontiers like Guyana and Suriname.

The ongoing bid-round is a manifestation of Angola’s strategy for the continuous attribution of petroleum concessions 2019-2025 which was approved and codified by Presidential Decree no. 52/19, of 18 February 2019. The aim of the strategy is to provide access to promising acreage to competent explorers in an effort to increase geological knowledge about Angola’s hydrocarbons potential and ultimately increase proven reserves.

A hybrid online and physical roadshow for the current bid-round is scheduled for April 6 in at the Talatona Convention Centre in Luanda. This event will provide the opportunity for investors to engage with the agency regarding the blocks on offer, the data packages and the accessibility studies, as well as touch upon environmental, logistical and local content issues.

This will kickstart a series of both digital and in-person roadshows and technical presentations to promote the blocks to be awarded in key international markets. The acreages on offer include:

  • Three blocks of the lower Congo onshore Basin CON1, CON5 and CON6
  • Six of the Kwanza onshore Basin (KON5, KON6, KON8, KON9, KON17 and KON20)

In line with the provisions of Presidential Decree No. 86/18, of 2 April 2019, which establishes the rules for the organization of bid rounds, the ongoing 2020 bid round will unfold as follows:

  • Tender Launch
  • Proposal submission
  • The opening of offers from potential suitors in a public setting
  • The evaluation and qualification of proposals
  • The submission of the evaluation report to the Ministry of Mineral Resources and Petroleum and Gas
  • Contract negotiation with the winners of the bid-round
  • Signature

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