Kenya’s Cost of Power Go Up in New Tariff Review

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1st February 2023

The executive secretary of the Nigerian Content Development Management Board [NCDMB], Mr. Simbi Wabote last weekend, received a delegation of the ministry of commerce and mines, Republic of Guinea, led by the executive director of BSTP, Saifouly Balde at the board’s liaison office in Abuja.

In a speech, Mr. Balde said he and his team were in Nigeria to study first-hand the rudiments of the local content development and management. He said his country, and indeed many other countries in Africa are fascinated by the progress made by the NCDMB.

“We are here to learn first-hand from the NCDMB how the local content implementation is working in Nigeria, and what measures we can put in place back home to achieve our mandate”, he said
The ES in his address to the delegation, outlined the challenges Nigeria faced before the enactment of the Act in 2010.

According to him, the NCDMB has been bullish and focused in its core mandate. “That is why we have achieved a 54% Nigerian Content Participation in the oil and gas industry,” Simbi said
The NCDMB boss thanked the Republic of Guinea for the visit and assured them of the board’s willingness to help them achieve the aim of their visit.

Also Read: NCDMB Commissions Quality Control Laboratories

Wabote recalled that other African nations like Senegal, Tanzania, and Uganda and others have benefitted from Nigeria’s guidance on local content and the Board would continue to provide similar support to any interested Africannation that requests for its assistance.

He added that the Board’s objective is to extend local content practice across the content, in line with the Sectorial and Regional Market Linkage Pillar of the Nigerian Content 10-year strategic roadmap.
Speaking further, the Executive Secretary advised the Guinean delegation to remain committed to the implementation of local content policy, describing it as a long journey, which would require strong political will from their leaders and the development of tools, processes, communications strategies, and stakeholder engagements.

According to him, Nigeria introduced the policy when the local content level was less than five percent in 2010 and the local supply chain lacked the capacity to execute critical projects in the country, which resulted in most of the opportunities going to expatriate personnel and companies.

He recalled that Nigerian introduced the policy when the local content level was less than five percent in 2010 and the local supply chain lacked the capacity to execute critical projects in the country, which resulted in most of the opportunities going to expatriate personnel and companies.

Also Read: NCDMB Concludes ‘Entrepreneurship Skills Development, Access To Finance’…

He informed that the enactment of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the focussed implementation in the past 12 years have resulted in the growth of in-country capacity to 54 percent at the end of 2022.He informed that the enactment of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the focussed implementation in the past 12 years have resulted in the growth of in-country capacity to 54 percent at the end of 2022.

He also invited them to visit and tour the board’s Local Content headquarters in Yenegoa, Bayelsa state

Senior Planning Engineer, SWO at Shell Petroleum Development Company (SPDC)

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31st January 2023

Shell Petroleum Development Company (SPDC) is the pioneer and leader of the petroleum industry in Nigeria. We invest heavily in our employees, which is reflected in our industry-leading development programme and our commitment to see our employees’ ideas travel and come to fruition.

We are recruiting to fill the position below:

Job Title: Senior Planning Engineer, SWO

Reference ID: R107165
Location: Port Harcourt, Rivers
Employment: Full-time
Experience level: Experienced Professionals

The Role
What’s the role?

To contribute to delivery and maintenance of standard, consistent and realistic project plans reflecting the assessed risk parameters for each project.
Develop plans required for the management and engineering of assigned projects compliant with agreed business and technical objectives, within schedule and budget, whilst ensuring quality, safe installation, and operation as well as performance to agreed requirements.
Evaluate and control project plans and perform schedule development, maintenance and monitoring of the planning/scheduling activities.
Ensure competitive schedule deliveries via latest benchmarking internally within Shell and externally through IPA, Performance Forum, Woodmac and other benchmarking tools and forums.

Principal Accountabilities

Deliver and maintain consistent and realistic plans and control structures for the project.
Understand the list of plans required to execute the assigned project sub-elements and their interface to other sub-elements.
Develop the activities, logic, resources and progress for the assigned project sub-elements, leading to the creation of the baseline schedule and its subsequent maintenance.
Develop, implement and comply with the planning and progress monitoring procedures.
Liaise with and challenge Project Engineering personnel to ensure proper understanding of the key schedule sensitivities and drivers.
Develop contract key dates, milestones and Shell plan dates that align with the overall project schedule.
Participate in evaluating bid schedules and reviewing contractor plans to support contract award recommendations.
Develop contract sections for planning and progress reporting. Review and verify contractors reported progress and ensure that this is reflected in the project schedule
Contribute to the translation of the project’s risk profile into the probabilistic risk model and understand the output, including the key risk drivers for the possible range of schedule completion dates.
Maintain and promote realism in the planning deliverables in the face of commercial pressure and optimism from project team leaders.
Develop credible schedules and plans integrating assessed issues and uncertainties that will facilitate quality decision making.
Support CSR’s and other site leadership personnel on planning / progress monitoring on execute phase.
Conduct weekly and monthly progress update, forecast, critical path and trend analyses for assigned elements, including any impact from interface areas.
Implement and maintain the status reports.
Provide regular and comprehensive schedule status reports to projects sub-element managers.
Assess and incorporate the impact of approved changes and any deviations from the key project targets and milestones, including productivity monitoring and identification of alternate approaches to optimize the plan(s).
Contribute to close-out data to enable knowledge retention (lessons learned, project data compilation) at completion of work.
Track the criticality of the main paths to completion and float consumption.
Implement and utilize the Shell standard tools and processes.
Provide input data for and participate in benchmarking activities.
Develop credible and competitive project schedule to the required confidence levels working in a multi-function and multi discipline team.

What we need from you?

Must have a Project Services Planning Level 1 or equivalent
Must have at least 8 years of industry experience
At least 3 years’ experience in a project planning role is a must
Assessment for Leadership Development is expected to be at the level of Individual Performers
Experience in an Oil and Gas industry is a must.
Must have been responsible for the preparation and maintenance of schedules for elements of project scope or a portfolio of early-phase prospects

How to Apply
Interested and qualified candidates should:
Click here to apply

Solar Technicians at Ashipa Electric Limited

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31st January 2023

Ashipa Electric Limited is an energy company that is dedicated to expediting the transition to a distributed, digitized, decarbonized, and equitable energy future. We deploy microgrid solutions to help homeowners and businesses reduce there energy cost, while maintaining reliability and resiliency. This solution further stimulates economic activity and positively impact millions of lives.

Requirements

A minimum of OND qualification
An average of 4 years professional experience
2 years industry experience
Having mini-grid experience is an added advantage.

Application Closing Date
Not Specified.

Method of Application
Interested and qualified candidates should send their Applications to: [email protected] using the Job Title as the subject of the email.

Putin, Saudi Prince Discuss Strategy Ahead Of Wednesday OPEC+ Meeting

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31st January 2023

Saudi Crown Prince, Mohammed Bin Salman and Russian President Vladimir Putin reportedly discussed OPEC+ cooperation in a Monday phone call, with the focus on maintaining the stability of oil prices ahead of a virtual OPEC+ meeting planned for Wednesday.

Crude oil production in Russia has held up in spite of new Western sanctions and price caps, and three OPEC+ delegates have told Reuters that the Wednesday meeting is likely to conclude without any output policy changes.

The Wednesday meeting, which will take place at 1100 GMT, is a meeting of OPEC+ ministers only, otherwise referred to as the Joint Ministerial Monitoring Committee (JMMC).
Another meeting of the OPEC+ join technical committee (JTC) originally scheduled for January 31st, has been canceled, Reuters reported.

Also Read: OPEC+ Set To Keep Oil Production Unchanged

Chinese demand may likely be a key feature of Wednesday’s virtual meeting. One delegate source told Reuters last week that changes to the current output policy are unlikely due to the rebound in oil prices so far this year.

Oil prices were trading lower on Monday ahead of the OPEC+ meeting and a Federal Reserve decision on interest rates that is also scheduled for Wednesday.

At 10:19 a.m. EST on Monday, Brent crude was trading down 0.83%, at $85.94 per barrel, while WTI was trading down 0.92% on the day, at $78.95 per barrel.

Last week, Oilprie.com reported that due to uncertainties about Chinese demand and Russian supply in February and March, OPEC+ is widely expected to keep the current production levels, which reduced target output by 2 million barrels per day (bpd) from November onwards. Yet, the actual cut is estimated to have been around 1 million bpd.

Also Read: OPEC’s Output Jumped Last December, But Still Below Target

In December, OPEC-13’s average December production rose by 91,000 bpd, according to the MOMR, to 28.971 million bpd, with nearly all of the gains coming from Nigeria. But December’s OPEC-10 production – the members bound by the OPEC+ pact – was still substantially below the production quota, with the group underproducing by more than 800,000 barrels per day.

By Bosco Agba with agency reports

NUPRC to End Inaccurate Accounting for Nigeria’s Oil, Gas Production

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31st January 2023

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has ended a two-day workshop in Abuja on production determination, accounting and reconciliation for crude oil, natural gas as well as condensates.

At the event, the upstream industry regulator noted that some of the objectives were to sensitise stakeholders on the statutory requirements for production verification and certification.

Speaking at the workshop, the Chief Executive, NUPRC, Mr. Gbenga Komolafe, who was represented by the Executive Commissioner, Development and Production NUPRC, Dr. Habib Nuhu, stated that part of the reasons for the meeting was to obtain industry feedback and input on the NUPRC requirements.
The Deputy Director, Development and Production, Mr. Enorense Amadasu, stood in for the commissioner, who represented the chief executive.

Also Read: Nigeria Blames Cross-Border Smuggling For Fuel Scarcity

Komolafe added that as the regulator of both the technical and commercial aspects of the upstream sector of the petroleum industry, it was important for the NUPRC to highlight the above to ensure optimal revenue generation for the country.

He stressed that accurate accounting of production in the sector was critical in view of its economic significance as the country’s major foreign exchange earner.

The NUPRC boss explained that the focus of the agency included business continuity and low cost of production, accurate measurement and timely payment of royalty, uninterrupted supply of crude oil and gas as well as safety of the environment.

“We understand the importance of oil and gas production to this nation, over 200 million Nigerians depend on what accrue from this production.

Also Read: Aso Rock Champions Renewable Energy Campaign

“So, it’s very important for every one of us to understand how to reconcile Production and give proper accounting in every area from end to end across the hydrocarbons value chain,” he stated.
In his remarks, the Deputy Manager, Crude Oil Accounting, Crude Oil Terminal Operation, Abdulrahman Idris, explained that the upstream sector as defined by Section 318 of the PIA 2021 covers exploration, production and operations of crude oil and natural gas.

“Our major focus is on business continuity and low cost of production, accurate measurement and timely payment of royalty revenue security to government.

“We also focus on uninterrupted supply of crude oil and natural gas to domestic market for energy security of the nation, including safety, health and environment,” he said.

He added that the PIA 2021 also mandates the NUPRC to ensure end-to-end production accounting and certification from well head to terminal and allocates petroleum production quotas locally in conjunction with other relevant agencies of government.

Also Read: Nigeria: Equinor Ready To Divest $1bn Stake In Agbami Offshore Field

According to him, section 241 of the PIA provides that there shall be a levy upon the profits of any company engaged in upstream petroleum operations in relation to crude oil and a tax to be known as hydrocarbon tax which shall be charged and assessed.

“Section 262(1) provides that subject to this Act in relation to any accounting period, all revenue of a company for that period shall be the value of any chargeable oil adjusted to the measurement points.
“This shall be based on the proceeds of chargeable oil sold by the company, and value of all chargeable oil disposed by the company,” he stated.

Russian Oil Exports To India Heading New High In 2023

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31st January 2023

Observers believe that crude oil exports from Russia to India could reach a new record this year if prices and other terms remain favorable.

Russia used to be a minor exporter of oil to India until last year when EU sanctions in response to Russia’s invasion of Ukraine led to a re-routing of Russian oil flows. China became one of the biggest buyers of Russian crude, and India, which relies on imported crude for more than 80% of its consumption, was also an obvious alternative destination for Russian crude

Times of India reported yesterday, citing experts, that the upcoming EU embargo on seaborne diesel imports from Russia could also contribute to higher exports of crude to India, where it will be refined into fuels and exported to the European Union.

Also Read: EU Leaders Fail To Agree Over Price Cap On Russian Oil Products

The discounts caused by the EU/West’s sanction action increased the attractiveness of Russian oil for Indian buyers, and Russia came to account for about 15% of India’s total oil imports last year.

That was up from about 1% of total oil imports just a year earlier, the report said. Saudi Arabia and Iraq remained the two largest suppliers of crude to India last year, but Russia came in third.

The overall share of OPEC oil in India’s crude oil import mix fell as a result of these changes to the lowest in a decade, Reuters Reported earlier this month.

According to refining industry executives who spoke to the Times of India, Saudi and Iraqi oil flows will continue under long-term contracts. Additional purchases of Russian barrels will be made on an ad hoc and opportunistic basis.

Also Read: Russia Hopes On Its $45bn Reserve In Yuan To Weather Plunge In Energy Revenues

“It’s bit of a circular trade going on as India takes Russian crude that Western buyers don’t want and refining it into products for resale to the West,” Rystad Energy’s head of downstream oil trading, Mukesh Sahdev, told Bloomberg this week.

Aso Rock Champions Renewable Energy Campaign

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31st January 2023

President Muhammadu Buhari’s chief of staff, Professor Ibrahim Gambari has assured that the State House will lead the way in keying into the global shift towards renewable energy choices by government institutions in line with Nigeria’s Energy Transition Plan.

The Plan seeks to tackle the dual crises of energy poverty and climate change with renewable energy contributing at least 30% to the energy mix by the year 2030.

While receiving in audience a three-man team from EM-ONE Energy Solutions, who were reportedly on a follow up visit to him in the State House, Professor Gambari said, said Aso Rock as an entity is committed to addressing its energy challenges.

“The world is now focused on reducing the effect of climate change. What we are looking for is the energy solution that comes with environmental sustainability. For us in the State House, there is the need to live by example. Just like I was impressed by your first presentation, your growing capacity and technological innovation continued to enhance your ability to deliver on your projections.

Also Read: Nigeria Blames Cross-Border Smuggling For Fuel Scarcity

“I am happy to note that you could actually upscale the renewable energy solution with more space for the solar panels. I am also glad that you have come to update us as this will enhance our process of deciding which way to go. The State House cannot afford not to be at the forefront with the First Family here, and we cannot afford blackouts and need to reduce how much we spend on diesel and cut down on carbon footprint; so, this is the direction we want to go,” he stressed.

The Chief Executive Officer of EM-ONE, Mir Islam, thanked the Chief of Staff for the opportunity given to the team, noting that, having grown up in this country, “we don’t want Nigeria to be left behind in the global energy transition programme.”

“More than 50 percent of the energy needs of the State House can be provided in the Phase One and can go up to 80 percent, but for space constraints with the possibility to export the excess power generated into the national grid in line with the Energy Transition Plan of Nigeria on public utilities,” he said.

Also Read: Nigeria: Equinor Ready To Divest $1bn Stake In Agbami Offshore Field

He added that the company’s Pilot Renewable Energy at the Federal Ministry of Works and Housing in Mabushi, Abuja, is a good case study for other public buildings in Nigeria, noting that a similar project would provide the resilience and the cost saving measure that the State House requires.

According to him, “State House, being a very important edifice, would be a role model for all other public buildings especially as climate change is now a point of global focus.”

Also speaking at the meeting in the State House, the permanent secretary State House, Tijjani Umar, said the team came in upon the charge of the chief of staff for the office to seek best ways of overcoming the growing power challenges of the State House

He recalled that the chief of staff had also expressed concern over prohibitive cost of power generation as well as the unsustainable carbon footprint on the environment, which is not environmentally friendly and also costly to sustain.

Also Read: Nigeria, Egypt Sign Pact On Electricity Sector Development

“Based on this, we invited EM-ONE for a presentation which recommended the option of a renewable energy solution. So, they provided options in their initial presentation which will enable us to scale down what we spend on power and are here with a follow up presentation with additional value-adds to enable us to arrive at a decision for a sustainable power solution for the State House,” Umar said.

By Ken Okoye

Nigeria: The Bane of Diesel Economy

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31st January 2023

The authorities must do more to generate enough energy to power the economy
That Nigeria still relies heavily on diesel generators to run her economy raises several questions.

Speaking during the U.S.-Africa Leaders Summit in Washington DC, last month, President Muhammadu Buhari pledged the commitment of Nigeria to eliminating the use of petrol and diesel generators in the country by 2060.

That, he added, has necessitated the deployment of renewable energy, particularly solar in the country. But given what he described as the “considerable financial and technical support” to achieve the goals, there are questions about the feasibility of the idea.

No fewer than 70 per cent of Nigerian firms, according to the World Bank, rely on generators for their electricity. This revelation corresponds with a similar data from Nigeria’s Rural Electrification Agency (REA) that Nigerians spend an estimated $14 billion annually on small-scale diesel generators in the absence of reliable supply from the national grid.

To begin with, how is it that we have found it extremely difficult to fix our public power system and grow its capacity to levels that would ensure the permanent removal of diesel generators in our economy?
How have we even failed to implement the content of a regulatory guideline on importation of generators into Nigeria which the Nigerian Electricity Regulatory Commission (NERC) passed in August 2011 to amongst other objectives check the influx of generators into the country and consequently push for improvement in public power supply?

Also Read: Nigeria Blames Cross-Border Smuggling For Fuel Scarcity

When will Nigeria get its power sector to work and what is it doing about the prevalent abuse of its environment with diesel generators?

The Rural Electrification Agency (REA) in its report of opportunities in Nigeria’s off grid electricity market, explained that the generating sets Nigerians use to power their homes and offices are inefficient and expensive – costing on the average, $0.40 per kilowatt hour (kWh) or more. The REA equally pointed out the health and environmental impact, just as the World Bank has explained that diesel generators contribute emissions of fine particulate matter (PM) which include black carbon to the environment.
The bank even stated that the PM is a predisposing factor for respiratory and cardiopulmonary disease leading to increased hospital visits and risk of premature death.

A country the size of Nigeria should never run on diesel generators which are costly to it and the environment. ‘All On’, a seeded company of an oil major Shell, has advised that Nigeria should initiate and implement a graduated and weighty tax system on the production, assemblage and importation of power generating sets that use diesel and petrol.

But while we subscribe to the view that the country should focus on fixing its public power supply system and controlling the influx of diesel generators into the economy, it is not going to be done by delivering speeches.

Also Read: Nigeria: Equinor Ready To Divest $1bn Stake In Agbami Offshore Field

In its recommendations on the way forward for the country, ‘All On’ had proposed that the importation of generators be discouraged with the introduction of additional levies in the form of Import Adjustment Tax (IAT), raising it from the current rate of between 15 per cent and 35 per cent on varying categories of generating sets to 50 per cent.

The Shell subsidiary had asked the country to set a timeline of three years to kick out generators in the country and transit from using such fossil fuel generating sets to clean energy sources such as solar.

Raising duties on petrol and diesel generators, ‘All On’ argued would enable the growth of clean energy sources mostly in off grid communities, but suggested that industries located in such communities could be exempted from the proposed regulation provided they are able to satisfy certain conditions.
Sadly, people in government are interested more in delivering speeches.

ThisDay

Nigeria Blames Cross-Border Smuggling For Fuel Scarcity

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OrientEnergyReview

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30th January 2023

Nigeria has said that its petroleum distribution programme is being hitched by the activities of cross-border smugglers who divert petroleum products to sell at higher prices in neighboring countries.

In an update issued last weekend, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) smugglers were diverting PMS meant for the Nigerian market to neighboring countries where the prices are significantly higher than the regulated price.
The authority said it was engaging and collaborating with the Nigeria Customs Service to address the issue.

It noted that the price arbitrage between Nigeria and neighbouring countries had continued to grow due to inflation and regional impact of the Russia-Ukraine conflict on global energy value chain.
The authority added that international freight rates and coastal vessels charter rates contributed to the development, adding that the ongoing government effort to rehabilitate strategic Nigerian roads ahead of the rainy season had necessitated rerouting of tanker trucks conveying petroleum products to alternative roads.

This, it said, had increased transit time and associated cost of product transportation.
“The NMDPRA and key stakeholders including NNPC Ltd. have put various measures in place to address the issues.

“The measures include modest adjustment in the cost of product transportation to cater for the impact of high price of automotive gas oil (Ago), known as diesel on transporters, while making special provision of diesel to marketers at a reduced price,” it said.

It listed others as automation of products sales interface and emplacement of a monitoring system in collaboration with government security agencies for distribution of products to retail outlets.

The measures also included extended operating hours both at the loading depots and some selected filing stations, rehabilitation of critical fuel distribution road network through Federal Government’s tax credit scheme by the NNPC and regular stakeholders’ engagements; among others.

It said it had reinforced its monitoring teams and appropriate sanctions to checkmate the activities of erring marketers who were distorting the planned product flow to designated outlets in order to profiteer from price arbitrage have been emplaced.

“As a medium to long term measure, cost-efficient means of transportation, including Autogas conversions and pipeline rehabilitation, are being implemented.

“This will be complemented by end-to-end process automation across the value chain.
“The authority wishes to reassure all Nigerians that there is PMS sufficiency of over 1.6 billion litres as of Jan. 26, 2023 both on land and marine,” it said.

The authority said the NNPC Ltd had additionally made firm commitment to supply more volume of PMS for the months ahead to guarantee national energy security and nationwide availability at the government regulated price.

“NMDPRA appreciates the collaborative efforts of some patriotic oil marketing companies who, despite the glaring incentives to engage in illegal price arbitrage, have stood steadfast and operated responsibly within the approved pricing limits.

“We reassure all Nigerians that NMDPRA would continue to work passionately to ensure energy security and continuous collaboration with relevant stakeholders to restore normalcy in the PMS supply and distribution network within the shortest possible time,” it said.

By Ken Okoye

Italy Signs $8bn Gas Deal With Libya

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OrientEnergyReview

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30th January 2023

FILE PHOTO: Italian Prime Minister Giorgia Meloni speaks during a news conference in Rome — FILE PHOTO: Italian Prime Minister Giorgia Meloni speaks during a news conference to present her government's first budget in Rome, Italy, November 22, 2022. REUTERS/Remo Casilli/File Photo

Italian prime minister, Giogia Meloni has signed an $8billion gas deal with Libya’s state-run National Oil Corporation. The deal was sealed last Saturday when Meloni visited Tripoli.

European governments have been scrambling to find alternatives to Russian gas since last year’s invasion of Ukraine saw deliveries slashed to less than half their pre-war levels, sending prices soaring to record highs and triggering costly state subsidies to protect consumers.

Eni said it was the first major project in Libya since early 2000 and involved the development of two offshore gas fields. “The combined gas production from the two structures will start in 2026 and reach a plateau of 750 million of standard gas cubic feet per day,” Eni said.

“Production will be ensured through two main platforms tied in to the existing treatment facilities at the Mellitah Complex,” 80 kilometres (50 miles) west of the capital, it added.

“The project also includes the construction of a carbon capture and storage (CCS) facility at Mellitah, allowing a significant reduction of the overall carbon footprint,” the company added.
“The overall estimated investment will amount to $8 billion, with significant impact on the industry and the associated supply chain, allowing a significant contribution to the Libyan economy.”

Eni has an 80% share of Libya’s gas production. The agreement was signed in the presence of Meloni and her host Abdulhamid Dbeibah, who heads the UN-brokered Government of National Unity which is contested by a rival administration in the east.

Meloni also visited Algeria this week seeking supply deals from Africa’s top gas exporter. Meloni’s far-right government took office in October, vowing to stop migrant landings in Italy, which reached more than 105,000 in 2022.

Descalzi and NOC’s Bengdara met last August in Rome, where Descalzi “expressed the willingness to launch a new phase of investments aimed at increasing the gas output of the Country,” Eni said at the time.

Descalzi and Italy’s PM Meloni just returned from a trip to another North African country, Algeria, as part of a wider Italian push to secure more energy supplies for Italy and for Europe from North Africa.
Eni and Algerian state oil and gas firm Sonatrach signed an agreement earlier this week to identify possible measures to improve Algeria’s energy export capacity to Europe, identify renewable energy development projects, and reduce emissions.

“The partnership between Italy and Algeria gets stronger today, and Algeria’s key role as one of Europe’s main energy suppliers is confirmed,” Eni’s Descalzi said after the signing of the agreements witnessed by Italy’s Meloni and Algeria’s President Abdelmadjid Tebboune.

Earlier this month, Descalzi told the Financial Times that Europe should look to Africa for a “south-north” energy axis that would deliver gas from Africa to the EU, which is scrambling to replace Russian pipeline supply.

Eni is a major player in many African countries and has signed several agreements to boost gas supply from Africa to Europe since the Russian invasion of Ukraine and the slump in Russia’s gas deliveries via pipeline.

By Bosco Agba

EU Leaders Fail To Agree Over Price Cap On Russian Oil Products

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OrientEnergyReview

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30th January 2023

Last weekend, European Union [EU] officials failed to agree about the price cap of Russian crude oil products that go into effect on February 5, being the next review time.

The group is also set to discuss the current crude oil price caps, Reuters said in a report yesterday. The group was originally set to review the crude oil price cap level every two months, which meant it was supposed to be reviewed in January, but some nations, part of the group—including the United States—wanted to wait until March to review the cap, which is currently set at $60 per barrel.

While the cap was originally set at $60 per barrel, the EU agreed last month that the cap should be set at a price that was at least 5% below average market rates—and that it should be reviewed periodically.
Reuters said not everyone in the group is on board with the current cap or the delay in reviewing it. Estonia, Lithuania, and Poland want a lower cap, arguing that Russian crude oil prices are below the cap, so it effectively is doing nothing.

The countries said they would like to see a much lower cap between $40 and $50 per barrel to further restrict Russia’s crude oil income and pressure it into abandoning the Ukraine invasion.
Next week, the EU will continue its talks about the upcoming price cap on diesel, with the EU’s Russian fuel import ban going into effect just over a week from now.

The European Commission has proposed a $100 per barrel cap on diesel, but the cap is unlikely to be agreed upon without much debate. The EU ban on Russian diesel imports is set to go into effect on February 5 whether or not a price cap is settled on beforehand.

The price cap would allow, similar to crude oil, a third party to purchase Russian diesel and insure it if it is purchased below the set cap.

By Ken Okoye

U.S., EU Mobilize $8.5bn Support For South Africa’s Energy Transition

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30th January 2023

The United States has pledged to support South Africa’s transition to cleaner energy program, and to help mobilize finance from the private sector to assist the country which is heavily dependent on coal.
U.S. treasury secretary, Janet Yellen, made the pledge last weekend during a visit to South Africa.

Coal is by far the major energy source for South Africa, accounting for around 80% of the country’s energy mix. The country is also the world’s fifth-largest coal exporter.

A report said however that South Africa is going through a major energy crisis with daily rolling power cuts, which cripple the economy, as state firm Eskom has failed to boost generation capacity to keep pace with growing demand in recent years.

The South African government has recently started to push for more renewable power generation. The U.S., the UK, France, Germany, and the EU are mobilizing an initial $8.5 billion to catalyze the first phase of South Africa’s Just Energy Transition (JET) Investment Plan, as part of a long-term Just Energy Transition Partnership (JETP) signed in 2021.

“The financial package of $8.5 billion is a substantial down payment. Importantly, it is designed to mobilize additional money from the private sector and philanthropies, and I will meet with representatives from both groups later today,” Secretary Yellen said in her speech.

“We fully recognize that transitioning the local economy and the economy of South Africa to clean energy will not be without challenges,” she added.
“But the investments that our governments and the private sector will make over the coming years in wind, solar, battery storage, and non-energy infrastructure will pay dividends in terms of well-paying jobs and a growing and cleaner economy.”

Under the just transition plan, South Africa will invest in job retraining and reskilling, cash payments to support displaced workers while they find new employment, and redevelopment of former coal mines and coal power plants as clean energy production sites and other productive uses.

Nigeria: Equinor Ready To Divest $1bn Stake In Agbami Offshore Field

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27th January 2023

Norway’s Equinor is planning to divest its stake in the Agbami oil field, offshore Nigeria, for up to $1billion. Reports say the firm intends to sell its entire 20% stake in the Agbami deepwater field to focus on more profitable assets.

Citing three unnamed industry sources, the Reuters’ report said the move puts the Norwegian company on the list of Western energy firms looking to retreat from the West African country to shift their focus to newer and more profitable assets.

According to the sources, investment bank, Standard Chartered has been appointed by the Norwegian firm to run the sale process.

Equinor currently owns a 20% stake in the Agbami deepwater field, which spans across oil mining lease (OML) 127 and OML 128 in the central Niger Delta.

Also Read: NAEC Calls For Immediate End Of Fuel Scarcity In Nigeria

Chevron operates the field with a 67.30% interest while Prime 127 holds the remaining 12.49% stake.
The move by Equinor is not really surprising current developments on the investment. Reports say recently, production from the oilfield has been declining rapidly to 29,000 barrels of oil equivalent per day (boepd) in 2020, from 36,000boepd in 2019.

In 2022, Equinor signed a deal with Nigeria’s state oil company, the Nigerian National Petroleum Company [NNPC] to extend the licence for offshore block OML 128 by 20 years.

Before he current crack down on oil thieves and celebrated unscrupulous elements in the crude oil value chain, several Western oil giants including Shell, Exxon Mobil, and TotalEnergies, were at one time or the other engaged in talks about quitting the Nigerian oil space primarily in onshore operations.

Also Read: Chevron Boss Denies Biden’s Claims Of Oil Firms ‘Profiteering’ From Ukraine Invasion

But since October 2022, the Nigerian government seem to be upping its game in taking back the oil sector from thieves and unpatriotic, corrupt elements in the system.

NNPC’s proposed $25billion gas pipeline from Nigeria to Morocco by 2023, seem to have brought a lot of confidence to the system. NNPC is promoting the gas pipeline project to meet the surging demand for new gas sources in Europe, following Russia’s invasion of Ukraine.

Eni Signs Energy Security Agreements With Algeria’s Sonatrach

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27th January 2023

In line with its expansion programmes in Africa, Italian oil giants, Eni, has signed two agreements with Algeria’s Sonatrach to boost energy security and fast-track emissions reduction.

The two strategic agreements outline joint future projects that will focus on energy transition, energy supply, and decarbonization. In line the agreements, the two firms will identify opportunities and implement technologies for reducing greenhouse gas and methane gas emissions.

They will also outline energy efficiency initiatives, renewable energy developments, green hydrogen projects, and CO₂ capture and storage projects.

Also Read: Eni Boss Points Way To Africa For Europe’s Natural Gas Supply

The two companies will equally undertake studies to identify measures to improve its energy export capacity to Europe from Algeria.

Sonatrach in a statement said: “It will be based on the evaluation of the following four axes: the extension of the existing gas transport capacity, the laying of a new gas pipeline to transport natural gas and alternatively hydrogen and blue and green ammonia, the laying of an undersea electric cable, and the extension of the current natural gas liquefaction capacity.”

Eni CEO, Claudio Descalzi said: “These agreements bear witness to our commitment to ensuring Italy’s security of supply while at the same time pursuing our decarbonization objectives.”

Also Read: Chevron Boss Denies Biden’s Claims Of Oil Firms ‘Profiteering’ From Ukraine Invasion

In October 2022, Eni commenced production from two gas fields in Algeria to meet the surging gas demand in the European market.

At that time, Eni said the two fields’ production capacity was anticipated to reach two million cubic meters by the end of the same year.

By Ken Okoye

Nigeria, Egypt Sign Pact On Electricity Sector Development

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26th January 2023

Nigerian minister of electricity, Mr. Abubakar D. Aliyu and his Egyptian counterpart, Mohamed Shaker have signed a memorandum of understating (MoU) aimed at enhancing bilateral cooperation for the two countries in the fields of electricity and renewable energy.

According to a mutual statement issued on Wednesday after the signing, the two countries are expected to provide technical support for the electricity generation sector and the development of electricity transmission and distribution networks, and the transition to smart grid systems.

This is in addition to promoting new and renewable energy systems in the electricity sector, the statement said

In addition to being the most populous country in Africa, Nigeria is among the fastest-growing populations globally, which has led to a rapidly increasing demand for energy.

Also Read: Nigeria Is Africa’s Highest Importer Of Generator, Petrol – IRENA

Recently, the International Renewable Energy Agency (IRENA) developed a Roadmap for Nigeria in collaboration with the Energy Commission of Nigeria (ECN) and analyzed the additional renewable energy deployment potential up to the year 2050, with an additional 2030 focus to aid shorter-term policy development.

The study encompasses all key sectors of the Nigerian energy system to provide additional context for energy policy discussions on how increased ambition in terms of renewable energy – beyond current government policy and targets – can be realised.

Renewable energy can help Nigeria not only meet its energy needs, but also power sustainable economic growth and create jobs while achieving global climate and sustainable development objectives.

”By using its abundant, untapped renewables, Nigeria can provide sustainable energy for all its citizens in a cost-effective manner. Nigeria has a unique opportunity to develop a sustainable energy system based on renewables that support socioeconomic recovery and development, while addressing climate challenges and accomplishing energy security,” IRENA’s director-general, Francesco La Camera said.

Also Read: POWER GENERATION DIPS TO 916MW AND 2,200MW

Nigeria’s minister of science, technology and innovation, Dr. Adeleke Olorunimbe Mamora, stated that: “the highly distributed institutional structure of the energy sector in Nigeria means that coordination of policies will be essential to unlocking integrated energy transition planning and ensuring its success.

“A cross cutting agency or body tasked with doing so would be helpful in building consensus and developing a coherent plan which in turn would allow for the scaling up of renewable energy to meet the needs across the Nigerian energy sector.”

The share of primary energy requirements met with renewable energy can reach 47% by 2030 and 57% by 2050, according to IRENA’s report.

Also Read: NAEC Calls For Immediate End Of Fuel Scarcity In Nigeria

Electrification will play a significant role in achieving higher renewable energy shares with electricity in final energy use nearly doubling by 2050 even as investment in renewables will be more cost-effective than the conventional pathway, the report said.

OPEC+ Set To Keep Oil Production Unchanged

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26th January 2023

The Joint Ministerial Monitoring Committee of the OPEC+ group is expected to recommend keeping the current levels of oil production when it meets next week, in a wait-and-see approach amid significant uncertainties about supply and demand in the coming weeks, OPEC+ delegates told Bloomberg on Tuesday.

The JMMC is meeting online on February 1 to review the situation on the oil market and potentially recommend actions for the OPEC+ alliance to take.

However, in view of the uncertainties about Chinese demand and Russian supply in February and March, OPEC+ is widely expected to keep the current production levels, which reduced target output by 2 million barrels per day (bpd) from November onwards. Yet, the actual cut is estimated to have been around 1 million bpd.

In December, OPEC-13’s average December production rose by 91,000 bpd, according to the MOMR, to 28.971 million bpd, with nearly all of the gains coming from Nigeria. But December’s OPEC-10 production – the members bound by the OPEC+ pact – was still substantially below the production quota, with the group underproducing by more than 800,000 barrels per day.

Also Read: OPEC Has More ‘Market Power’ As Oil Supply Concerns Return

Going forward, OPEC, OPEC+, and market participants will look to China and Russia for the most immediate clues on global demand and supply.

Analysts and the market expect Chinese oil demand to rebound after the reopening of the world’s largest crude oil importer after nearly three years of Covid-related lockdowns.

Saudi oil giant Aramco expects the Chinese reopening and a pick-up in jet fuel demand to lead to a rebound in global oil demand this year, Amin Nasser, the CEO of the world’s biggest oil firm, told Bloomberg in an interview last week.

On the supply side, the upcoming EU embargo on seaborne imports of refined petroleum products from Russia – beginning on February 5 – could lead to curtailments in Russian crude oil production.

Also Read: OPEC’s Output Jumped Last December, But Still Below Target

Moreover, Brent oil prices have recently stabilized in the upper $80s, which could mean that OPEC+ will not rush to change production policy just ahead of the EU embargo on Russian diesel and other products, analysts say.

Oilprice.com

French Bank Vows To Reduce Oil, Gas Lending By 80%

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26th January 2023

…Joins league of big time lenders committed to energy transition by vowing to end oil, gas financing

French bank, BNP Paribas, has announced the decision to reduce lending to the oil and gas industry by 80% by 2030 as part of entering a new phase in its decarbonization efforts.

The bank’s announcement is the latest in a string of similar announcements from large lenders as they rush to declare their commitment to the energy transition by vowing an end to financing oil, gas, and coal production.

In a press release, the bank reported it had already stopped lending to new oil projects in 2016 and planned to reduce current funding for oil production by 25% by next year. It would also exit coal, with the process to be finalized by 2030.

Also Read: TotalEnergies Commences Gas Production At Oman Onshore Block 10

The bank also claimed that its outstanding loans for low-carbon energy projects were about 20% higher than its exposure to fossil fuels, having topped 28 billion Euros last September.

Reuters said there is virtually no large international bank left in the world that has not made such a commitment, yet up until now, at least, there has been little substance behind the declarations.

The amount of money banks are putting into renewable energy has changed little over the past six years, Reuters reported Tuesday, citing a report commissioned by several environmentalist nonprofits, including the Sierra Club and Fair Finance International.

Bank loans and bond underwriting for renewable energy businesses since 2016 has averaged 7% of a total $2.5 trillion in loans and bond underwritings for the energy industry as a whole, the report found
The reason for this was that although the amount of money poured into renewables increased over the period, so did the amount of money going into fossil fuels.

Also Read: UK To Bail Indigenous Firms With $40m To Cut Dependence On Fossil Fuels

“Banks’ financing to fossil fuels should be phasing out as financing to renewables increases drastically to have any chance of reaching the world’s – and their own – climate goals,” according to a researcher with Profundo – the entity that authored the report, Ward Warmerdam,.

Uganda Starts Drilling On First Commercial Site

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26th January 2023

…Hopes to reach first production before 2025

Uganda has confirmed that it has started drilling operations on its first commercially viable oil site.
The country’s ministry of energy and mineral development said on Tuesday the East African country had commissioned the first of four planned rigs in the discovery, and started drilling the country’s very first commercial well in hopes of reaching first production by 2025.

The Kingfisher oilfield in the Kikuube district is a CNOOC-operated field, but co-owned with TotalEnergies and Uganda’s state run oil company, UNOC.

The project has suffered numerous delays after Uganda discovered the reserves almost 20 years ago. But a lack of pipeline infrastructure in the country has, until now, proved to be an insurmountable hurdle.
The head of the state-run petroleum sector regulator Petroleum Authority of Uganda, Ernest Rubondo, described the progress on the fields as a “milestone in the journey toward the production of first oil in Uganda.”

Also Read: Delegations From Nambia, Guyana, Senegal, Tanzania Ready For SAIPEC 2023

Breakeven costs are expected to be $22 per barrel, with peak production expected at about 230,000 barrels per day. Construction will also start this year on the nearly 900-mile East Africa Crude Oil Pipeline, also planned by CNOOC and TotalEnergies, which has been described as the world’s longest heated oil pipeline.

It, too, should be complete by 2025. Total holds a 62% stake in the pipeline project, with UNOC and CNOOC carrying 15% each, the report said

The project reportedly received pushback from EU’s parliament last year, which called for a maximum pressure campaign against the project on Ugandan authorities “to protect the environment and to put an end to the extractive activities in protected and sensitive ecosystems, including the shores of Lake Albert.”
The East African country is also looking to develop its refinery business, with a 60,000 bpd refinery expected to be built in Uganda’s mid-west, although has suffered numerous delays as well.

By Bosco Agba

Maintenance Plan For Angola’s 200,000bpa Oilfield Will Affect Its Presence In The Global Market

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26th January 2023