Four international energy giants, Shell Plc, BP Plc, TotalEnergies SE, and Mitsui & Co., have each agreed to invest in Abu Dhabi National Oil Co.’s (Adnoc) latest liquefied natural gas (LNG) export project, the Ruwais LNG plant.

According to sources familiar with the matter, these companies will each take a 10% stake in the new facility, which is poised to substantially boost the UAE’s LNG export capacity.

The official agreements are expected to be signed as early as next week.

However, the sources, who requested anonymity due to the non-public nature of the information, confirmed the investment details.

The Ruwais LNG plant, set to enhance the UAE’s standing in the global LNG market, will add 9.6 million tons per year to the nation’s export capacity.

Currently, the UAE has the smallest LNG export capacity in the region at 5.8 million tons.

This project will position it as the second-largest LNG exporter in the Middle East, surpassed only by Qatar.

Adnoc’s decision to proceed with the Ruwais project, backed by a $5.5 billion construction contract, came before securing these international investments.

Three of the investors—Mitsui, BP, and TotalEnergies—are already partners in the UAE’s only existing LNG export facility on Das Island.

This new project aligns with Adnoc’s strategy to expand its footprint in the global LNG market, not only within the UAE but also through international ventures, including recent deals in the US and Mozambique.

Musabbeh Al Kaabi, Adnoc’s executive director for international growth, emphasized the company’s strategic focus areas, saying, “We’ve made it very clear that we’re interested in key sectors when it comes to low carbon solutions, renewables, natural gas, and chemicals.”

The investment in Ruwais underscores the continuing appeal of natural gas projects, even as global energy markets face increasing pressures to transition to greener alternatives.

With fuel prices remaining elevated, the appeal of new supply projects remains strong, providing a crucial boost to the global energy market.

The commitment of Shell, BP, TotalEnergies, and Mitsui to the Ruwais LNG project not only marks a significant milestone for Adnoc but also highlights the robust international interest in the UAE’s ambitious energy expansion plans.

As the world navigates the complexities of energy transition, these investments underscore the enduring role of natural gas as a vital component of the global energy mix.

Oando PLC has completed the acquisition of 100% of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed the completion of the deal on Wednesday.

NUPRC Chief Executive, Engineer Gbenga Komolafe, made the announcement at the ongoing Oil and Gas Energy Week in Abuja, a significant event sponsored by the Nigerian National Petroleum Company (NNPC) Limited and other industry stakeholders.

The acquisition marks a significant milestone for Oando, a leading indigenous energy solutions provider, solidifying its position in Nigeria’s oil and gas sector.

“This acquisition is a testament to Oando’s commitment to expanding its footprint in the upstream sector,” said Komolafe. “The divestment agreement with ENI, which includes the full acquisition of NAOC Ltd, has been successfully finalized, and we look forward to the signing ceremony in the coming days.”

The NAOC deal is part of a broader wave of acquisitions and divestments within Nigeria’s oil industry, reflecting a dynamic shift in the sector.

Alongside Oando’s acquisition, other major transactions include Equinor’s completed deal with Project Odinmin and the ongoing due diligence for Shell Petroleum Development Company of Nigeria Limited’s (SPDC) transaction with the Renaissance Consortium.

Seplat Energy Offshore Limited is also advancing its proposed takeover of ExxonMobil Nigeria’s offshore shallow water operations, pending ministerial consent.

Oando’s acquisition of NAOC significantly boosts its operational capacity, increasing its participating interests in key Oil Mining Leases (OMLs) from 20% to 40%.

This strategic move not only enhances Oando’s production capabilities but also positions the company to leverage new opportunities in Nigeria’s oil-rich regions.

The NUPRC has emphasized the importance of adhering to regulatory frameworks to ensure smooth transitions and protect national interests.

Komolafe highlighted that while divestments are the right of investors, they must be conducted within the rule of law and best practices to avoid the pitfalls experienced by other countries.

“Countries like Brazil, Canada, and the UK have faced challenges with divestments that were not well-managed,” Komolafe noted. “We aim to avoid similar issues by ensuring that divestments in Nigeria are carried out with thorough due diligence, safeguarding financial capacity, technical capability, and environmental responsibilities.”

Oando’s acquisition aligns with Nigeria’s broader energy strategy, which includes diversifying its energy portfolio and attracting foreign investment.

The country is also focusing on becoming a hub for green hydrogen production, leveraging its abundant solar radiation to support Europe’s energy needs.

As Oando takes the helm of NAOC, the company is expected to drive initiatives that enhance oil production and contribute to sustainable energy solutions.

Nigeria’s newly operational Dangote oil refinery is making waves in the oil industry, rapidly increasing its gasoil exports to West Africa and capturing significant market share from European refiners.

According to traders and shipping data, this $20 billion refinery is already altering the landscape of oil exports in the region.

Despite currently producing a lower grade of gasoil than anticipated, due to pending restarts of key units needed for cleaner fuel production, the refinery has been actively seeking buyers in neighboring markets.

In May, Dangote’s gasoil exports soared to nearly 100,000 barrels per day (bpd), almost doubling the levels recorded in April, as per data from analytics firm Kpler.

The majority of these exports were directed to West African countries, with one shipment reaching Spain.

However, preliminary data for June shows a significant decline in gasoil volumes. Despite this, overall oil product exports, including fuel oil, naphtha, and jet fuel, remained robust at 225,000 bpd.

The rise of Dangote’s refinery has significantly impacted European markets. A European distillates trading source told Reuters, “The refinery has shifted the balance in West Africa.”

This shift is reflected in Kpler data, which shows that EU and UK gasoil exports to West Africa fell to a four-year low of 29,000 bpd in May.

Russian exports to the region also dropped to an eight-month low of 87,000 bpd in the same month.

In Nigeria, Dangote has been selling some high-sulphur gasoil, leading to disputes with local fuel retailers over responsibility for distributing the dirtier fuel.

The Petroleum Industry Bill passed in 2021 mandates a sulphur content of 50 parts per million (ppm) to align with sub-regional ECOWAS standards.

However, the regulator allowed the sale of gasoil with sulphur content above 200 ppm locally from the beginning of the year until June, giving local refineries and importers more time to comply with the new standard.

As European countries tighten regulations on high-sulphur gasoil exports, cargoes from the Dangote refinery have found a market in regions with more lenient motor fuel standards.

This shift is crucial as European refiners face increasing constraints, while West African countries continue to demand more fuel.

Earlier in May, Aliko Dangote, the Chairman of the Dangote refinery, stated that once fully operational, the refinery would supply products to West and Central African countries due to its capacity being too large for Nigeria alone.

This expansion underscores the refinery’s potential to reduce the $17 billion in oil imports into the continent and could even lead to the closure of some European refineries.

The refinery’s impact is evident with West Africa becoming the largest regional recipient of Europe’s gasoline exports in 2023, receiving roughly one-third of the continent’s average exports, which totaled 1.33 million barrels per day (bpd).

The Dangote refinery’s rapid ascent and substantial increase in gasoil exports mark a significant shift in the oil export dynamics of West Africa, promising to reshape the region’s energy landscape for years to come.