The Buzz: This Week in Africa
Brent crude is trading at $61.04, WTI at $52.31 and natural gas at $4.35 per million BTU (at 13:47 in South Africa). Here are AOPs top news stories from the last seven days.
Angola Oil & Gas 2019 Conference & Exhibition promotes new petroleum investment, signals resurgence of Angolan economy
With the country set to promote investment into its petroleum sector, the Angola Oil & Gas conference to be hosted by Africa Oil & Power will support the government’s goal to bring greater investments to Angolan oil fields and highlight the recent reforms made by President João Lourenço, that will significantly boost the country’s competitiveness.
The Angola Oil & Gas Conference and Exhibition, which will be held in Luanda from June 3 – 7 2019, is endorsed by the Ministry of Mineral Resources and Petroleum of Angola.
Registration for Angola Oil & Gas is now open.
Angola’s Sonangol undergoes restructuring
In working towards developing the petroleum sector and driving investment, Angola’s national oil company, Sonangol officially launched its Regeneration Program this week.
Aiming to promote and intensify activities to replace reserve and increase hydrocarbon production, the Regeneration Program will contribute to the improvement of the performance of the oil sector.
The sale of hydrocarbons liberalized in Angola
With the sector undergoing a transformative period, the Angolan Ministry of Mineral Resources and Petroleum announced this week that the marketing and distribution of hydrocarbon products in Angola has been completely liberalized.
Supported by the Oil Derivatives Regulatory Institute, the Oil Sector Organization Model will be implemented by 2020 and is being coordinated by an Interministerial Follow-up Commission on the Readjustment of the Organization of the Oil Sector.
Angola to receive boost to upgrade power stations
In a bid to deliver sustainable and reliable power to its citizens, the country has received a $51 million boost from the British government for the upgrade of two power stations.
The deal will allow Angola to enter the global market while allowing the country to deliver power to millions of Angolans.
Resumption of South Sudan oil production contributing to FX reserves
Owing to the resumption of oil production and the gradual increase in global oil prices, South Sudan’s foreign exchange reserves are improving.
Addressing reports in Juba last week, The Governor of South Sudan’s Central Bank, Deng Tor Ngor said: “With the increase in global oil prices, at least our situation would be much better than two years ago.”
South Sudan Oil & Power returns to Juba
On Tuesday, Africa Oil & Power returned to Juba to host the second South Sudan Oil & Power conference.
Centred on the theme Embaracing the Private Sector in South Sudan, the three-day conference included the participation of South Sudan President, H.E Salva Kiir Mayardit, First Vice President H.E Taban Deng Gai, Vice President H.E James Wani Igga and South Sudan Minister of Petroleum Hon. Ezekiel Lol Gatkuoth among other dignitaries.
South Sudan strengthens cooperation with African countries
During the South Sudan Oil & Power conference, the government of South Sudan strengthened its relationship with African countries through cooperation agreements and new engagement in the oil industry.
On the second day of the South Sudan Oil & Power conference, the President of South Sudan, H.E Salva Kiir Mayardit received government officials from Equatorial Guinea, Uganda, Sudan and the African Petroleum Producers Organization.
Resurgent South Sudan Underpins Success of Second Annual South Sudan Oil & Power Conference
Keen to increase exploration activity in the country and attract new participants to the market, H.E Ezekiel Lol Gatkuoth, South Sudan’s Minister of Petroleum said the country’s oil reserves stand at 3.5 billion barrels but could be as large as 13 billion barrels.
Speaking at the second annual South Sudan Oil & Power conference, the minister said: “Drill, drill, drill. That is our message to the investment community because you cannot produce more oil unless you look for more oil. South Sudan has plenty of oil and we now have the enabling environment for companies to find it.”
Equatorial Guinea commends Schlumberger and TechnipFMC on local content compliance efforts
With a mandate that all oil and gas operators in the country cancel all contracts with services companies which refuse to comply with local content policies. The Ministry of Mines and Hydrocarbons (MHH), H.E Gabriel Mbaga Obiang Lima has commended Schlumberger and TechnipFMC on their commitment to complying with the country’s local content regulations.
This followed the MMH’s request for oil and gas operators to cancel all contracts with Subsea 7 for the refusal to comply with local content regulations.
Nigeria launches mini-grid developers association
In efforts to increase electrification across the country, Nigeria launched the Africa Mini-Grid Developers Association this week.
Comprising of mini-grid developer, individuals and organizations dedicated to developing Nigeria’s off-grid power sector, the association aims to expedite the development of mini-grids and related regulation in the country.
BP to invest $1bn in South Africa
On Thursday, BPSA CEO Prescillah Mabelane announced that the oil and gas company would invest $1 billion in South Africa over the next five years.
Over a quarter of the $1 billion will be set aside for the upgrade of the SAPREF refinery – a joint venture between Royal Dutch Shell and BPSA.
Further, the CEO said BPSA was looking to expand its footprint and is looking at opportunities in Mozambique.
TransGlobe provides Egypt drill result update
TransGlobe Energy said on Tuesday that three intervals were tested in the Bahariya region, showing positive results for a light oil discovery in the South Ghazalat well in Egypt.
The well was drilled to a total depth of 5,195 feet. President of TransGlobe, Randy Neely said: “Once we have completed our planning we will be able to incorporate the development of this discovery into our 2019 plan, and provide updated capital and production guidance.”
Tanzania: Preparations for hydropower plant underway
Preparations for the proposed 2,100 MW Rufiji hydropower plant at Stiegle’s Gorge in Tanzania are underway, ahead of the commencement of construction works.
Expected to double the country’s power generation capacity, the $307 million hydropower project will have a gross output of 5,920GWh.
Zanzibar: New deal signed for gas exploration
Zanzibar signed a Production Sharing Agreement with the United Emirates company – RAK Gas LLC for the exploration of natural gas.
The former holders of the exploration rights in the Zanzibar block, Antrim Energy of Canada said: “The Pemba-Zanzibae block has a prove hydrocarbon system, as evidenced by the Tundaua oil seep on Pemba Island and oil shows in previous exploration wells.”