The Buzz: This Week in Africa
At the beginning of this week, Brent Crude is trading at $67.18 per barrel, WTI at $63.47 and natural gas at $2.66 per million BTU (at 11:51, 26 February 2018, South Africa) Here are AOP’s top five stories from the last seven days.
Libya NOC Declares Force Majeure on El-Feel Oilfield
After protests by guards causing the closure of the El-Feel oilfield, the Libyan National Oil Corporation has declared force majeure on the facility.
The El-Feel oilfield, which produces 70,000 barrels per day, was shut down after petroleum facilities guard personnel (PFG) continued to protest pay delays and other benefits. The protest began earlier last week and saw PFG guards vandalizing offices and opening fire with their weapons into the air.
The NOC declared force majeure on Friday and its Chairman, Mustafa Sanalla, said in a statement that the NOC was in contact with all the social leaders of the Tebu tribe to find a solution for the return of calm to the field.
Nigeria: 200 Million Barrel Increase in Crude Reserves
The Department of Petroleum Resources has released its latest study on Nigeria’s oil and gas economy. The latest data showed that the increase of over 200 million barrels in reserves had expanded Nigeria’s reserves to 37.2 billion barrels after they had been stuck at the 37 billion reserve ceiling for over two years. The figures are based on the DPR’s latest data from June 2017.
Oil Prices Continue to Rise
Last week Thursday oil prices reached a two-week high despite an unexpected drop in US crude inventories.
Brent crude rose to $66.56 per barrel for the first time in two weeks, after it started the week at $65.12. West Texas Intermediate (WTI) began the week at $62.11 and saw it’s highest price since 7 February at $63.39.
US crude inventories fell 1.6 million barrels after net imports dropped to a record low and exports surged.
Petronas and FAR to drill offshore Gambia
Australian independent FAR Limited and Malaysian national oil company Petronas have partnered to drill an exploration well offshore the Gambia. Local entity FAR Gambia Ltd entered a farm-out agreement with Petronas subsidiary PC Gambia Ltd, giving Petronas a 40 percent stake in blocks A2 and A5. FAR retains 40 percent of the blocks and will operate through the exploration phase. Erin Energy holds its 20 percent. Petronas will fund 80 percent of the total costs of the Samo-1 exploration well up to $45 million.
Anadarko Finalizes LNG Sale
After a 15 year long LNG sales and purchase agreement with Electricite de France, Anadarko’s Petroleum plan to export LNG from Mozambique nears completion.
Electricite de France will take 1.2 million tons of LNG from the Mozambique Area 1 block annually. Anadarko has also agreed on volume and price for 5.1 million tons per year of LNG off-take deals from Mozambique, which will be significant in reaching a final investment decision.
Anadarko plans to start exporting LNG from the offshore block by 2022/2023.