Connect with us

Crude Oil

Seplat Energy Excited On The passage of PIB, Foresee Opportunists For More Investment

Published

on

stakeholders

Nigeria’s biggest oil and gas exploration and production company, Seplat Energy Plc, said it hopes the passage of the country’s long-awaited Petroleum Industry Bill by lawmakers will spur investment into the country’s petroleum industry.

“The PIB in place gives everyone the visibility of what the new roles are, so we’re excited,” CEO Roger Brown said in an interview in Lagos. “People know what the rules are and can invest more.”

The bill, which took about two decades of deliberation, is expected to remove legal and regulatory uncertainty that’s held back the growth of the oil and gas sector once it gets signed into law by Nigeria’s President Muhammadu Buhari.

Although, some aspects of the bill are “negative” to the operations of Seplat, on a balance it’s positive to the company’s operations, according to Brown. The governors from the nation’s southern states have demanded a review of some provisions in the legislation including the share of oil revenue that will go to host communities.

As an indigenous oil and gas company, Seplat will continue to invest in Nigeria even without the new law, Rogers said. “What excites me most is that we’ll have stability, and the legislation as passed is key.”

The firm is looking for “onshore and shallow water’’ assets for acquisition, according to the CEO. It is targeting offers from the international oil companies divesting from the country as well as local firms selling their “quality” assets, he said.

Speaking on gas expansion saddled with the increasing uncertainty over future demand for oil and the shift to renewables globally, Seplat plans to focus on gas to drive future income and profitability.

As reported on Bloomberg, the company, listed in London and Lagos, changed its name last month to Seplat Energy from Seplat Petroleum to reflect a transition to a full energy solutions provider. It plans to increase gas investments to shore up its contribution to revenue to as much as 50 percent by the next five years from 30 percent and probably overtake oil at some point, according to the chief executive.

“Gas will be the baseload which will launch the springboard into renewable energy and renewable energy must be part of Nigeria’s future,” Brown said.

Africa’s biggest economy is trying to shift away from its reliance on crude oil by encouraging investments to develop its more than 200 trillion cubic feet of proven gas reserves to power manufacturing and electricity industries, even as it aims for net-zero emissions in the future. It pledged to cut carbon emissions by 20 percent by 2030 under the Paris Climate Agreement.

“In five years, oil will be relevant; in 30 years I think gas is going to be more relevant into the future,” Brown said. “Developing gas is very critical.”

Seplat is looking to deliver ANOH, a key gas-processing plant, with a daily capacity of 300 million standard cubic feet by the first half of next year, then plan an expansion of the project, Brown said.  He also affirmed that the company is in talks with governments in the country’s southeast, as well as Waltersmith, a private oil company, on ways to develop the gas market in the area.

“We firmly believe there’s big gas demand in the country but you have to make sure your market is there,” the CEO said. “We see ourselves as a company, among others, that will develop the domestic gas market.”

Continue Reading
Comments

Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

Published

on

Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

Continue Reading

Crude Oil

Brent Crude Approaches $86 Following Moscow Attacks

Published

on

Brent crude oil - Investors King

Amid escalating geopolitical tensions following the devastating terrorist attacks in Moscow, global oil markets rose with Brent crude oil hitting a $86 price level.

The tragic events in the Russian capital, which claimed the lives of over 130 innocent civilians, sent shockwaves through international communities and rattled energy markets already grappling with supply uncertainties.

Speculation surrounding the attacks, claimed by the Islamic State but with hints of potential Ukrainian involvement from Russian President Vladimir Putin, intensified concerns about potential disruptions to oil supplies.

Also, ongoing drone strikes by Ukraine targeting Russian infrastructure further exacerbated worries about the stability of crude oil production and refining capabilities in the region.

The mounting geopolitical unrest in key oil-producing regions has injected a sense of urgency into the market, with investors closely monitoring developments for potential impacts on global supply and demand dynamics.

Despite recent fluctuations, crude oil is poised for a third consecutive monthly gain, buoyed by efforts from the OPEC+ alliance to maintain production cuts and bolstered by tightening US sanctions on Russian energy exports.

The bullish sentiment is further supported by positive commentary on the broader commodities outlook, with central banks signaling potential interest rate reductions to stimulate economic growth, thus underpinning industrial and consumer demand for raw materials.

Analysts remain cautiously optimistic about the trajectory of oil prices, citing a delicate balance between supply risks and supportive macroeconomic factors amidst the backdrop of geopolitical turmoil.

As Brent crude inches closer to the $86 threshold, market participants brace for continued volatility amid unfolding geopolitical developments.

Continue Reading

Crude Oil

Indian Refiners Shun Russian Crude Carried by Sovcomflot Tankers Amidst US Sanctions

Published

on

Crude Oil - Investors King

Indian refiners have taken a bold stance by refusing to accept Russian crude oil carried on PJSC Sovcomflot tankers, citing stringent US sanctions.

This decision marks a significant shift in India’s energy strategy and underscores the profound impact of global politics on the oil trade.

The move comes in the wake of heightened scrutiny on Sovcomflot tankers following sanctions imposed by the US Treasury’s Office of Foreign Assets Control.

Designating Sovcomflot and identifying specific crude oil tankers, the US has intensified its efforts to clamp down on entities linked to Russia, particularly in the aftermath of the Ukraine invasion.

Indian Oil Corp., Bharat Petroleum Corp., Hindustan Petroleum Corp., Mangalore Refinery & Petrochemicals Ltd., and Nayara Energy Ltd. have all halted the acceptance of cargoes carried on Sovcomflot vessels.

This unified action underscores the severity of the situation, with refiners diligently scrutinizing tanker ownership to ensure compliance with sanctions.

The repercussions of this decision are reverberating throughout the oil market, leading to disruptions in the supply chain and altering trade dynamics.

With fewer tankers available to transport Russian crude, the pricing landscape has undergone a significant shift, with discounts narrowing to compensate for higher freight costs.

Despite the challenges posed by sanctions and supply chain disruptions, India remains a key player in the global oil market.

However, the decision to shun Russian crude on Sovcomflot tankers reflects a strategic recalibration in response to evolving geopolitical realities, underscoring the complex interplay between politics and energy security on the world stage.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending