Oil industry sources claim that Central Africa's new FX Initiative falls short of its target.
Two oil industry sources said that six Central African nations who were expecting to receive billions in foreign exchange from funds set aside for environmental restoration by oil companies may actually see less than 500 million dollars by the April 30 deadline. Bank of Central African States, the central bank of Cameroon and Gabon, Equatorial Guinea Central African Republic, Republic of Congo, Chad, Gabon and Chad, introduced rules in 2018 governing these funds that are mostly held by foreign banks.
US lawmakers block IMF Central Africa Support over Oil Fund Dispute
U.S. legislators have introduced legislation to block International Monetary Fund assistance for certain Central African countries in order to protect billions of dollars oil companies are required by law set aside for environmental restoration. The bill highlights the standoff between foreign investment on one hand and Central African monetary authority on the other, who are trying to tighten capital controls in extractive industries so as to replenish depleted reserves. The bill, introduced by U.S. Republican Reps.
US lawmakers block IMF Central Africa Support over Oil Fund Dispute
U.S. legislators have introduced legislation to block the International Monetary Fund's (IMF) assistance for certain Central African countries. This is in order to protect billions of dollars which oil companies are required by law set aside for environmental restoration. The bill highlights the standoff between foreign investment on one hand, and Central African monetary authority trying to tighten capital controls on extractive industry to shore up depleted reserve on the other. The bill, introduced by U.S. Republican Reps.
Eni sells stakes to Vitol in upstream projects in Ivory Coast and Congo
The Italian energy group Eni announced on Wednesday that it had agreed to sell its stakes in the upstream assets of the Ivory Coast, and the Republic of the Congo, to the global energy trader Vitol. Eni stated that the deal is worth $1.65bn based on an appraisal from January 1, 2024. However, there will be a cash payment at closing. Eni announced that Vitol would acquire an interest on oil and gas producing assets, and blocks, which are undergoing exploration appraisal and development.
EIB examines financing for $760 million hydro project in DRC
A spokesperson for the European Investment Bank said that the bank is delaying decisions on financing the Ruzizi III hydroelectric plant, worth $760 million, in Central Africa due to the fighting between Rwandan-backed and Democratic Republic of Congo rebels. After the January blitzkrieg of Congolese rebels, which saw them take over the strategic cities Goma and Bukavu and was condemned by African leaders as well as Western countries, Europe is increasing pressure on its adversaries.
Andy Home: Export ban on cobalt from Congo is not enough to eliminate the glut
The Democratic Republic of Congo has suspended cobalt exports for four months, a sign of how even the largest producer in the world is feeling the effects of historically low prices. This news has given cobalt a boost and its impact is already spreading through the supply chain. One Congolese operator Eurasian Resources Group, (ERG), declared force majeure for deliveries of the metal used in electric vehicle batteries. Will it be sufficient to solve the structural problems that a market oversupplied? History does not support this.
Sources: ERG declares force majeure for cobalt supplies from Congo
Two sources with knowledge of the situation said that Eurasian Resources Group has declared force majeure for deliveries of cobalt battery material from its Metalkol operations due to the temporary export ban by the Democratic Republic of Congo. ERG is the largest cobalt producer in Congo. This is also the top mineral producing country worldwide for the production of lithium-ion battery powering electric vehicles. One source said that the Luxembourg-based firm had to declare force majore…
Congo considers export quotas for cobalt to boost prices amid glut
Three sources with knowledge of the situation said that the Democratic Republic of Congo was considering cobalt export quotas in order to reduce oversupply of the metal and increase prices. The cobalt price is at a historically low level due to a slackening in demand by automakers. Mines are also ramping up their production of copper from which the cobalt can be extracted as a side-product. Sources who declined to name themselves and discuss sensitive issues said that the Congolese Government has discussed the plan of introducing limits…
Glencore rejects an approach to its DRC operations in the last year
Glencore, a commodity and mining trader, said that it rejected a non-invited approach by an unknown buyer at the end of the last year for its operations in Democratic Republic of Congo. In an email, a spokesperson stated that Glencore had not hired any advisors or banks and was not conducting a sale for its operations in DRC. The Financial Times had reported earlier in the day that the miner considered selling all or part of its Congolese assets, and held preliminary discussions regarding its copper and coal mines in this region.
Africa's biggest copper countries are focusing on trade profits
Africa's largest copper producers, Democratic Republic of Congo (DRC) and Zambia (Zambia), are working to get exposure to metal trading, as the surge in demand linked to artificial intelligent and the move to greener energy promises big profits. Metals trading is a long-standing domain of international trading companies, like Glencore. Congo and Zambia which represent together more than 13% global copper supply have increased their focus over the past year on securing an share of the mined material that they can also trade for profit.
Glencore's and Rio Tinto’s mining operations
A person familiar with this matter stated that Glencore had approached Rio Tinto in late 2013 about merging the two major copper producers. However, the talks are no longer ongoing. Both companies declined to make any comment. The merger could be the biggest ever in the mining sector. GLENCORE is a London-listed company that produces lead, nickel, zinc, copper, and cobalt. Its biggest revenue-generating metals are copper and zinc, which the miner expects to produce 1 million metric tons of in 2023.
Congo seeks Saudi mining investors to curb China's dominance
Marcellin Paluku is a senior government official who told the media that the Democratic Republic of Congo (DRC), which is currently the world's largest cobalt producer, has been courting Saudi Arabian mining investors to diversify its economy and reduce its over-reliance on Chinese companies. Paluku, a deputy cabinet-director in the Ministry of Mines, stated that the Congo, which also has a wealth of copper and other important minerals, is looking…
Eni, the Italian LNG company, is preparing a second floating LNG plant for Congo
Eni, the Italian energy company, announced on Saturday that it had launched in the shipyard of Wison Heavy Industry in Nantong in China the hull of Nguya Floating Liquefied Natural Gas facility, which will be deployed off the coast of the Republic of Congo. ENI announced that the FLNG would have a liquefaction capability of 2.4 millions tons per year (MTPA). This will complement Tango FLNG which is currently operational and has a 0.6 MTPA capacity.
Congo cancels the licensing round for 27 oil block
According to a Monday statement on the hydrocarbons minister's X Twitter account, the Democratic Republic of Congo has canceled a licensing round originally launched in 2020 to tap the nation's potential for oil and gas. The statement of October 11 listed multiple reasons for cancellation. These included late submissions, inappropriate and irregular offers, as well as a lack competition. Aime Sakombi Molindo, hydrocarbons minister, said: "Given what I have just stated…
Russia is considering limiting metals exports to the West
In response to Western sanctions, Russian President Vladimir Putin suggested this week that Moscow limit exports of metals or other commodities in which Russia has a large share on global markets. Putin mentioned uranium and nickel as well as titanium, but suggested that other commodities could be restricted, pointing out that Russia is a major producer for natural gas, diamonds, and gold. Putin said that any restrictions do not have to be immediately implemented and they should not harm Russia.
"Green Energy" will drive the need for more Mining and Metals Production
Clean energy may mean less mining for coal, but it also means opening or expanding mines to unearth minerals such as cobalt for use in alloys and batteries, tellurium for solar cells and semiconductors, and germanium for transistors in electronic devices. That’s according to Dr. Michael Moats, professor and interim chair of materials science and engineering at Missouri University of Science and Technology, who says reducing carbon emissions…
Total Starts Production at Egina Oilfield
Total SA said on Wednesday it had started production from the Egina oilfield off Nigeria's coast, part of a shift by the French energy firm towards deepwater oil and gas projects to its drive cashflow.Output from Egina, which is located in waters about 1,600 metres (5,250 ft) deep, is expected to plateau at 200,000 barrels per day of oil, Total said. That rate is equivalent to about 10 percent of Nigeria's current production."Egina will significantly boost the group's production and cashflow from 2019 onwards…
Uganda Expects First Oil Production in 2021
Uganda expects to start producing oil in 2021, a year later than initially planned, and its refinery should be up and running by 2023, its oil minister said on Thursday.France's Total is an investor in Uganda's oilfields, with China's CNOOC and Britain's Tullow Oil."Our initial target was 2020. That seems to have slipped and we are looking now at 2021," Irene Muloni said at the Africa Oil Week conference in Cape Town. That date is in line with industry targets.In April Uganda signed a deal with a consortium…
Republic of the Congo Launches Oil Exploration Licensing Round
The Republic of Congo has launched its latest oil exploration bidding round in Cape Town, offering 18 blocks in deep-water offshore and onshore sites in its efforts to boost production, the ministry of hydrocarbons said on Tuesday.Operators already in the country, which produces about 350,000 barrels per day (bpd), include oil majors Chevron and Total.Phase II of the 2018/19 licensing round has five blocks available in the onshore Cuvette Basin…
Saipem Wins $700 Mln Worth of Offshore Contracts
Saipem has been awarded contracts for the second phase of the ExxonMobil led Liza development offshore Guyana.These contracts, assigned by Esso Exploration and Production Guyana Limited (EEPGL), an affiliate of ExxonMobil, as the project operator, are in addition to those awarded to Saipem in 2017 for Liza Phase 1.Following engineering and subject to requisite government approvals, project sanction from the joint venture and an authorization to proceed with the next phase…
