Nigerian Oil Approaches $70 Per Barrel Following OPEC+ Production Cuts Extension
Brent crude oil, against which Nigerian oil is priced, rose to $69 on Friday at 3:55 pm Nigerian time.
Oil price jumped after OPEC and allies, known as OPEC plus, agreed to role-over crude oil production cuts to further reduce global oil supplies and artificially sustain oil price in a move experts said could stoke inflationary pressure.
Brent crude oil rose from $63.86 per barrel on Wednesday to $69 per barrel on Friday as energy investors became more optimistic about the oil outlook.
While certain experts are worried that U.S crude oil production will eventually hurt OPEC strategy once the economy fully opens, few experts are saying production in the world’s largest economy won’t hit pre-pandemic highs.
According to Vicki Hollub, the CEO of Occidental, U.S oil production may not return to pre-pandemic levels given a shift in corporates’ value.
“I do believe that most companies have committed to value growth, rather than production growth,” she said during a CNBC Evolve conversation with Brian Sullivan. “And so I do believe that that’s going to be part of the reason that oil production in the United States does not get back to 13 million barrels a day.”
Hollub believes corporate organisations will focus on optimizing present operations and facilities, rather than seeking growth at all costs. She, however, noted that oil prices rebounded faster than expected, largely due to China, India and United States’ growing consumption.
“The recovery looks more V-shaped than we had originally thought it would be,” she said. Occidental previous projection had oil production recovering to pre-pandemic levels by the middle of 2022. The CEO Now believes demand will return by the end of this year or the first few months of 2022.
“I do believe we’re headed for a much healthier supply and demand environment” she said.
U.S. Africa Energy Forum 2021 Launches: Promotes U.S. Role as Primary Investor in African Energy
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.
Angola’s Petroleum Agency Outlines Timeline for Ongoing Bid-round
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
The Mozambican Oil and Gas Chamber Condemns the Terrorist Attacks in Palma
The Mozambican Oil and Gas Chamber condemns the terrorist attacks in Palma on the 25th of March in the strongest possible terms and expresses its heartfelt condolences to all the victims of the attacks. Our thoughts and prayers are with the families of the bereaved, injured and displaced.
Terrorism is a scourge and it must never be let to prevail. The Chamber will therefore like to express its full support to the Mozambique Armed Defense Forces under the leadership of H.E. President Filipe Nyusi who responded swiftly to contain the attacks to save lives and property. We are confident, that the government will eventually secure a lasting solution to the problems in Cabo Delgado and provide a conducive environment for the realization of multi-billion-dollar investments in Mozambique.
“We are committed to working with the government, energy companies and civil society to ensure that such acts were not allowed to disrupt stability of Mozambique and the execution of important energy projects that are so important to our country’s economic growth and the advancement of global prosperity”. Said Florival Mucave, CEO of the Mozambican Oil & Gas Chamber.
The three-year insurgency in Cabo Delgado province has to date killed more than 2,600 people and displaced an estimated 670,000, according to the UN. These attacks are especially directed at disrupting investment in oil and gas projects in Mozambique and terrorizing the local population. The attack on Palma was specifically aimed at undermining the $23bn game changing Mozambique LNG project led by Total.
As the largest Foreign Direct Investment on the African continent, the Mozambique LNG project positions Mozambique to become the third largest gas exporter globally by 2045. It is expected to double Mozambique’s GDP by 2035, underscoring the transformational impact of this project on the country, it’s citizens and neighboring states. It will fundamentally recast the fortunes of Mozambique from one of the poorest countries in the world to possibly a middle-income country.
We call on the international community to support the government of Mozambique in its efforts to deal with terrorism in Cabo Delgado. Terrorism is a global problem and Mozambique must therefore not be left to deal with it alone.
The chamber continues to strongly advocate for the gas developments and associated projects in Mozambique as a key driver of economic opportunity. Economic development is the only way to promote sustainable development, eradicate poverty, reduce unemployment amongst Mozambique’s youthful population and build competent local capacity in Mozambique.
The Mozambican oil and gas chamber pledges to work closely with the Mozambican Government, foreign investors and local stakeholders to build capacity amongst local entrepreneurs and position them to take the numerous opportunities that Mozambique offers. We will work tirelessly to fulfil the expectations of millions of Mozambicans by ensuring the delivery of Mozambique LNG’s first gas by 2024.
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