Nigeria approves Shell’s $2.4 billion asset sales to Renaissance
Shell received approval from Nigeria’s oil minister to sell $2.4 billion worth of onshore and shallow water assets to Renaissance Group. Renaissance Group said this in a Wednesday statement. Shell has been operating in Nigerian oil and gas for nearly a hundred years. The Shell approval is part of an overall retreat of western energy companies, such as Exxon Mobil and Eni of Italy, and Equinor of Norway. The Nigerian Upstream Petroleum Regulatory Commission…
AVG US Gasoline Price Lowest in 3 Years
On Monday, the average U.S. gas prices dropped below $3 per gallon for the very first time in more than three years. This is a welcome relief for Americans who have been struggling with high inflation rates in recent years.Since the summer driving peak, fuel prices have steadily declined, boosting consumer spending, even though progress on inflation slowed in October and prices of other goods rose.GasBuddy.com, a market-tracker, reports that the national average price of regular gasoline dropped to $2.97 per gallons on Monday.
Equinor sells assets worth up to $2 billion in Nigeria and Azerbaijan
Equinor announced on Monday that it had completed the sale of its assets located in Nigeria and Azerbaijan, for up to a $2 billion total. This marked the end of the Norwegian oil company's presence in the two countries, which lasted more than 30 years. The group stated that the divestments announced in 2023, and completed recently, would boost cash flow for the fourth quarter. They were also in line with Equinor’s strategy of optimising its international portfolio.
LNG traders divert cargoes to Asia from Europe as demand in the east increases
Analysts and shipping data indicate that three LNG cargoes bound for Europe were diverted to Asia in order to meet the stronger Asian demand, and because gas prices have decreased in Europe. The rapid change of course shows the agility of the trading firms to send LNG supplies either to Europe or Asia. As Asian prices rise, the arbitrage window for sending U.S. and African Liquefied Natural Gas to Asia opens. The price of a million British thermal unit (mmBtu)…
Russia lifts the ban on exporting gasoline to producers
The Russian government announced on Saturday that it had lifted the temporary ban on gasoline exports from producers. However, the restrictions on other exporters such as independent traders or re-sellers will remain in place until January 31, 2025. The original ban on gasoline exports would expire by the end of the year. The ban excludes supplies of former Soviet states to the Moscow led Eurasian Economic Union, as well as other countries such as Mongolia with whom Russia has intergovernmental agreements for fuel supply.
Nigeria seeks long-term buyers of new Utapate oil and aims to double production
Nigeria seeks long-term customers for the new crude oil grade Utapate, and aims to double its output from 40,000 barrels a day by 2025. The launch is part Nigeria's effort to boost its oil output, which has been hindered for years by unrest and theft of crude, despite being a member of the ongoing OPEC+ Production Cut Pact. NNPC announced last week that Nigeria produces around 1.8 millions bpd, and aims to reach 2 million bpd before the end of the year…
UN: Companies and countries are lagging behind in tackling methane emissions
Since the U.N. began monitoring oil and gas infrastructure for leaks of methane last year, 1,200 alerts have been sent to government and company officials. Only 12 out of the 2,000 alerts for large plumes, or 1%, were followed up with "substantive" action to stop the leaks. This was according to the report released by the U.N. International Methane Emissions Observatory. Roland Kupers, the lead architect of the programme, said…
Ifx: Russian Energy Minister says lifting the gasoline export ban is possible
Interfax reported that Russian Energy Minister Sergei Tsivilev stated on Wednesday the ministry believes it is possible to lift restrictions regarding gasoline exports due to fuel prices being stable. According to RIA, the Ministry sent its proposals regarding gasoline export restrictions to the Government. The minister said, "We will lift export restrictions now because the prices are stable and the situation on market is stable. In August, Russia extended the gasoline export restriction until the end the year.
Nigeria signs $1.2 Billion deal to upgrade gas plant for aluminum smelter
The Nigerian Petroleum Ministry announced that the country has signed a contract worth $1.2 billion with CNCEC, a state-owned Chinese engineering firm. This project is crucial to the production of aluminium in Nigeria. The agreement between CNCEC, the main investor in Aluminum Smelter Company of Nigeria (ASCN), and BFI Group is the first step in reviving this dormant facility that has lain idle for years due to financial and legal issues.
Lagos, Nigeria seeks investors to build a 4,000-MW gas-fired electricity plant
Lagos, Nigeria's commercial hub, invited bids on Thursday for the construction of gas-fired power stations of up to 4,050 megawatts (MW) to fill a shortfall in the national grid. The city is hoping to put an end to years of blackouts which have affected businesses and homes. According to the World Bank, four out of ten Nigerians, Africa's largest nation, lack access to electricity. This is often cited by investors as a major obstacle to investing in Nigeria.
Nigeria approves Exxon Seplat after two years
Nigeria has approved the sale to Seplat Energy of Exxon Mobil Corp.'s onshore assets, said the chief executive of the country's Upstream regulator on Monday. This comes more than two years since the original $1.28 billion agreement.Since it was announced in February 20, 2022, the sale has been scrutinized as it awaits regulatory approval.Bola Tinubu, the President of Nigeria, said that the ministerial approval would be granted within a few days following the clearance by the regulator.Gbenga Komolafe…
Nigeria's Belemaoil resumes oil lease 55 operations after a three-year hiatus
The Nigerian independent producer Belemaoil Producing announced on Monday that it has resumed its operations at Oil Mining Lease 55, after a three year shutdown due to theft-related damage. Belemaoil purchased OML 55 from Chevron Corporation in February 2015, which is located in an area of swampy to shallow waters, about 40km west of Bonny's oil export terminal. Belemaoil's spokesperson stated that the OML 55 operations were stopped in 2021 because of rampant thefts from the delivery line leading to Bonny.
The UK will try Glencore's former head of oil in 2027 on charges of bribery
In 2027, Glencore's former oil head Alex Beard will be tried in London on charges of bribery along with five other former employees of the Swiss commodity trading company. Beard was not asked to enter his plea during a short hearing on Wednesday at London's Southwark Crown Court. He had indicated in his first court appearance that he would plead not-guilty. The 57-year old is accused of two counts of conspiracy for corrupt payments…
Arbitration awards Kosmos Energy Senegal LNG project to BP, as the sole purchaser
Kosmos Energy announced on Tuesday that a Paris arbitrator ruled in favor of BP, preventing Kosmos to sell liquefied gas from the Greater Tortue project off Senegal and Mauritania. LNG is a key part of BP's energy transition strategy. Energy major BP has established a significant LNG pipeline across the globe, including Sub-Saharan Africa. Nigeria, Angola Cameroon, and Equatorial Guinea are already shipping significant volumes. The International Chamber of Commerce was asked to arbitrate a dispute between Kosmos Energy (a U.S.
Exxon-Seplat $1.28 billion deal approval imminent, Nigeria president says
Bola Tinubu, the President of Nigeria, said that Exxon Mobil Corp.'s sale of its Nigerian assets to Seplat Energy would be approved within days once it received approval from the regulator. Analysts say that the $1.28 billion transaction has been closely monitored since it was announced in 2022. It will also signal to investors similar deals such as Shell's sale of assets to Renaissance in January. In a television broadcast marking the 64th anniversary of Nigeria's independence…
New refineries bring down profits for global refiners
Oil refiners across Asia, Europe, and the United States have seen their profitability drop to multi-year-lows. This is a significant downturn in an industry which had previously enjoyed booming returns following the pandemic. It also highlights the global slowdown. This weakness is another sign of a softening consumer and industrial demand in China due to the slowing of economic growth and increasing penetration of electric cars.
Glencore's former head of oil is charged with bribery in a UK court
Alex Beard, former Glencore head of oil, appeared before a London court Tuesday to answer bribery allegations relating to Glencore's operations in Africa. Beard's lawyer told the London Westminster Magistrates' Court that he will plead guilty. The 57-year old is accused of two counts of conspiracy for corrupt payments made to officials of government-owned oil companies and government officials in Nigeria from 2010 to 2014 and in Cameroon, between 2007 and 2008.
Nigeria licenses the first floating LNG plant to export and use domestically
Nigeria's oil regulator granted UTM Offshore Limited on Friday the first license for operating a floating LNG plant to tap flared natural gas from an ExxonMobil field in the Niger Delta. As Africa looks to tap into its gas reserves, such plants are popping up all over the continent. Government estimates indicate that Nigeria has over 209 trillion cubic foot of gas reserves but loses more than $1 billion annually due to gas flaring.
UN chief warns that Africa's inability to access debt relief could lead to social unrest
The lack of resources and insufficient debt relief for African countries is a recipe to create social unrest. This was the conclusion reached by UN Secretary-General Antonio Guterres on Thursday. He proposed new reforms to international financial institutions. In recent months, a growing debt crisis has sparked civil unrest across Africa's 1 billion people. Protests in Kenya where police clashed against demonstrators protesting proposed tax increases…
Nigeria Seeking Operators for State-owned Oil Refineries
Nigeria's state-owned NNPC Ltd oil company said it has started the tender process for the operation of the Warri and Kaduna refineries, which are scheduled to begin processing crude this year.The oil refineries, which are being upgraded after being shut for several years, have the capacity to process 125,000 barrels per day (bpd) and 110,000 bpd, respectively.Nigeria, which is Africa's biggest oil producer, is seeking operators…
