This month, the price of Brent oil reached a new four year high at $71 USD per barrel. These prices were said to be due to the weak dollar and falling crude oil inventories in the United States. Also, the decision of the OPEC and non-OPEC nations to extend productions cuts for another year could have led to supporting this price rise.
Technology Focus I Africa
Over the last few years, the oil & gas industry has seen quick advances in technology. IoT, remote sensing, data combination and dissemination, cloud computing, industrial internet, autonomous vehicles, block-chain, and artificial intelligence are all believed to be important factors in the successful enhancements of industrial productivity. These are all forms of what is contributing to the 4th Industrial Revolution.
In the oil & gas industry, major digitisation has been seen as Statoil unveiled its $1 Billion USD Kroner digitalisation initiative, BP invested $20 million USD in an AI company, while GE forecasts that their digitalisation platform will be part of their multibillion USD revenue before 2020.
Country Focus | Nigeria
One of the world’s largest FSPO’s, Total’s Egina, arrived in Nigeria this month after a lengthy journey from South Korea. The vessel, 330m long, arrived at LADOL Free Zone in Lagos. This FSPO aims to produce 200,000 barrels a day, contributing to Nigeria’s daily production by 10% more.
Country Focus | South Africa
SOIHL Hong Kong Holding Limited looked to acquire a 75% share piece in Chevron SA, which was now positively recommended by the Competition Commission to the Competition Tribunal. SOIHL will be a new entrant into the South African petroleum market, already holding one of the top spots of oil and petrochemical as well as oil & gas producer in China.
Country Focus | Angola
Angola reached 1,640 million barrels per day in 2017, less than last years oil production. Estevao Pedro, an African Petroleum Producers Organisation ( APPO) representative used the meeting of the APPO Experts Committee to state the need for greater investment in Angola for reaching the oil production goals established. Estevao Pedro also said that the APPO aims to reach the market stabilisation concerning the oil production for a fair price adoption, meeting the current challenges.
The Angolan Secretary of State for Petroleum, Paulino Jernonimo, said the industry should strive to be more skilled in finding solutions that will reduce expenses without compromising the production.
With the focus of promoting Local Content in the 18-member oil and gas producing countries, Luanda will be host to the 2nd Africa Oil & Gas Local Content Conference and Exhibition taking place from the 14 – 16 June 2018. See more info here: www.ametrade.org/alc
Country Focus | Mozambique
The Mozambican government announced this month that they are evaluating the development plan for the Anardako Golfinho-Atum natural gas exploration project in the Rovuma basin. The project approval is being analysed to determine whether or not it complies with current legislation and industry good practice, which would put a final investment price tag of 25 billion USD on it. The project aims to extract and process 12 million tons of natural gas per year, which might require an even larger investment.
The Mozambique Tax Authority has said its surpassed its 2017 tax collection target, suggesting that the reasoning could be due to the current political stability, allowing economic activities to flourish. The increased international price of commodities also could play a part in stimulating production in the extractive industry, showing positive outlooks for the country as growth shows in many sectors including transport and trade.
The Government of the Republic of Mozambique & the Ministry of Mineral Resources & Energy, in partnership with AME Trade bring you the 6th Edition of the Mozambique Mining, Oil & Gas and Energy Conference and Exhibition (MMEC 2018). Request a brochure here: www.ametrade.org/mozmec/conference-overview/
Company Focus| Anadarko Petroleum Corp.
Anadarko is currently in talks with a variety of Chinese stakeholders in finding a solution to supply the increase in China’s demand for liquefied natural gas from its developments in Mozambique.
China could stand as a long term strategic market for the Anadarko-led Mozambique LNG project and its demand could spur even more investment decisions on projects to export LNG from East Africa.
Company Focus| Exxon Mobil
Exxon Mobil has been named the 2017 explorer of the Year by the World Oil and Gas council. Exxon Mobil announced a multitude of discoveries, acquisitions and other activities in the last 12 months in many countries around the world, including Guyana, Cyprus, Brazil, Mauritania, Papua New Guinea and Suriname.
Company Focus| Cairn Energy
Cairn Energy completed its third phase of the drilling program offshore Senegal and looking for development approval for the SNE field before the end of this year.