Oil & Gas Industry Newsletter – March 2018
This month saw a downturn of Brent oil to $68,90 dollars a barrel with U.S crude oil down to $64.67.
The end of this month marks the final extension put in place by the Organisation of the Petroleum Exporting Countries (OPEC), after trying to manage the global glut of crude oil when prices and revenues sharply declined. Non-OPEC members are also contributing, with countries such as Russia reducing their output.
The oil price has already seen a 4% increase this year, with it having increased for almost 7 consecutive months, leading to the third consecutive quarter of gains, the most seen since 2010.
Africa countries’ oil production is currently on about 10 million barrels per day (bpd), with the projection to reach 12 million bpd in the next few years.
Approximately $194 billion to be invested on upcoming African oil and gas projects.
Recent research done by GlobalData has estimated that a whopping $194 billion USD will be spent in Africa on upcoming oil and gas projects between 2018 and 2025. Approximately $88.9 billion USD would make up the Capital expenditure into unconventional, conventional and heavy oil projects.
Nigeria makes up a large portion of this market, accounting for $48.04 billion USD of the total capital expenditure into these upcoming projects in Africa. Nigeria has 24 announced and planned fields, with the ultra-deepwater Zabazaba-Etan equating $11 billion USD and deepwater Bonga North utilising $8.9 billion USD, both conventional oil projects.
Technology Focus I Africa
There has been an increase in oil & gas companies joining forces with technology companies in order to implement emerging digital technologies to their operations. Digital transformations are being used to deliver sustainable cost reduction, increase revenue growth and assist with more effective decision making. Digital skills across these processes are critical and companies are looking to promote collaboration and information sharing.
Company Focus| SAL Heavy Lift
A new regular service linking North Europe and the Arabian Gulf to West, South and East Africa has been launched. This service can provide clients with a minimum of two sailings per month, with more destination options than ever before, including trips to America or Australia on inducement.
Country Focus | Ghana
Ghana will see an increase of 3,000 – 5,000 metric tons of monthly crude oil for storage and processing due to a partnership agreement between Petrogress and Platon Gas Oil Ghana Limited. This will be used for storage, refinement, marketing and distribution in Ghana.
Country Focus| Algeria
Algeria’s higher crude oil prices offset lower volumes, increasing export earnings to 18.42 percent to $33.06 billion USD. This contributed to the country’s trade deficit by 28.9 percent. Algeria is a major gas supplier to Europe and places a lot of emphasis on revenue from energy exports. Of its total exports, energy exports account for 95 percent of it.
Country Focus |South Africa
The fuel retail sector has seen major growth in the past few months, contributing to 8.5 percent of South Africa’s GDP. This franchise growth is seen even though the South African economy has been sluggish and seen little positive movement.
Country Focus | Angola
Approximately 140 kilometres off the coast of Angola lies the Kaomno development, operated by Total E&P. TechnipFMC recently completed the umbilical supply scope to this project, engineering and manufacturing of 135 kilometres of steel tubes. This project, which started in April 2017, completed in January 2018, showing a real team effort across the globe and delivering such successful results on such a large scale project.
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
Company Focus| Petronas
A new discovery has been made by National oil firm Petronas offshore South Gabon, adding to the recent success in exploration on the West African coast. The discovery was made in Block 14, called Likuale, where Petronas holds 70 percent interest alongside Woodside Energy, who holds the remaining 30 percent. The ultra-deepwater well has a depth of 2, 800 metres and reached 90 metres of gross high quality hydrocarbon-bearing pre-salt sands,
Country Focus | Mozambique
According to the South Africa Oil & Gas Alliance, SAOGA, speaking at the upcoming Mozambique Mining, Energy and Oil & Gas Conference, taking place in Maputo in April, if South Africa and Mozambique created more solid partnerships, together, they could compete with the world’s biggest oil & gas players. A partnership like this could create millions of jobs for residents from both countries, and increase cross-border collaborations in many other sectors, positively impacting the economies of these bordering countries.
Niall Kramer, SAOGA CEO, calls oil and gas “South Africa’s silver bullet for economic growth, jobs, and inequality and poverty reduction.”
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/
AME Trade Ltd
39 – 41 North Road, London, UK, N7 9DP
Tel: +44 207 700 4949