Libya Oil Industry Recovery: What It Means For The Rest Of Africa

By NJ Ayuk If I called 2020 a terrible year for the oil industry, no one would take exception. Demand collapsed in the spring, during the first wave of the COVID-19 pandemic, and it has yet to recover fully. Prices then collapsed in April as OPEC and Russia walked away from production curbs and flooded the market with crude that no one wanted or needed, and once again, they have yet to regain all of the ground they have lost.There have been a few bright spots, though. One of those is Libya, which has managed to overcome some very daunting challenges. I'd like to tell you the story of how that happened.Starting Near Rock BottomWhen the African Energy Chamber (AEC) started drawing up our 2021 Africa Energy Outlook, which was released on Nov. 10, Libya's oil industry was still struggling in the face of persistent civil conflict.At that time, the…

Turning Blind Eye To Human Rights Violations, Corruption Hurting Africa's Oil and Gas Industry

By NJ Ayuk Nigeria has been attracting the world's attention in recent months for all the wrong reasons.Nigerians have taken to the streets to protest police brutality after social media users spread accounts of an unarmed youth being shot and killed by a police officer with the Special Anti-Robbery Squad (SARS). The protests quickly grew, from their epicenter in Lagos, into a nationwide plea to end government corruption and widespread human rights abuses.Violent police responses have only worsened the situation: At least 69 people have died across the country since protests began in October.Calls to #EndSARS on Twitter and other social media streams are emboldening more and more citizens to demand government action. As Ayo Sogunro, a prominent Nigerian author and human rights lawyer put it, "People want some kind of systemic reform that would not just address police brutality in the present, but would also ensure that it is…

Ghana Gives Explorer Springfield E&P A Boost & Ensures Production Growth

The recent decision by the Ministry of Energy of Ghana to unitize the Sankofa and Afina fields located within Eni's Offshore Cape Three Points (OCTP) Block and Springfield E&P's West Cape Three Points Block 2 (WCTP2) is a step in the right directon.The decision paves the way not only for an Africa's independent to participate in the development of one of Ghana's biggest producing assets, but also to ensure continued and increased production of oil and gas.First oil was achieved from the Sankofa Gye Nyame fields within the OCTP license in 2017 and was followed by first gas in 2018. Three years later, OCTP has become Ghana's biggest gas producing asset and its second-biggest oil production hub. Because it has been officially confirmed that the same Cenomanian Channel straddles both the OCTP Block and WCTP2 Block, a unitization of Sankofa with the Afina discovery made last year by Springfield E&P…

LNG Expected To Prevent Massive Jobs Destruction In The Short-Term

Despite the profound crises of 2020 which have jeopardized hundreds of thousands of jobs across Africa, the African Energy Chamber expects employment to remain strong thanks to ongoing capital projects sanctioned since 2018, especially LNG ventures.Inflexible capital programs will indeed assist in sustaining the overall employment throughout 2020 and 2021. As a result, the Chamber does not see big immediate impact from COVID-19 in 2020 and 2021 on job numbers as the initiated capital programs in 2018 and 2019 are ongoing and ramping up activity. This is particularly the case for Total's mega greenfield Mozambique LNG project in Mozambique requiring north of 10 000 employees to set up two liquefaction trains with a combined export capacity of 12.88 mtpa. But additional projects, such as Eni's 3.4 mtpa Coral Sul FLNG project, also in Mozambique, or BP's 2.45 Greater Tortue Ahmeyim (GTA) LNG project in Mauritania and Senegal will also contribute…

COVID-19: Biggest Shock In History Of Oil & Gas Sector

2020 has likely challenged the industry unlike any year in its history. A relatively stable growth in liquids demand has indeed been observed over the last 20 years. Even during the financial meltdown in 2008 and 2009, the demand overall was very resilient. In 2020 however, demand is currently expected to be about 10 million barrels of liquids less per day than pre-COVID-19 expectations.Intra year, this difference is even more extreme as the brunt of this reduction occurred during the widespread lockdown in the second quarter to halt the coronavirus outbreak.Such a dramatic change to demand created shockwaves into the markets by putting enormous negative pressure on prices. Most notably, the West Texas Intermediary reference price even ended up trading at negative levels as there simply was no ability to store more oil. The market forces therefore led to widespread production shut ins in North America as well as an…

At Least Shs25m Has Been Given Out To Students From Hoima, Kikuube

At least Shs25m has been given out to students from Hoima and Kikuube districts who excelled in last year’s national examinations. The money was given out by China National Offshore Oil Corporation (CNOOC) Uganda, one of the companies involved in the exploration of oil in the Albertine Graben. The funding will go to 120 pupils and students from the two districts selected by the offices of the District Education Officers based on the Uganda National Examinations Board-UNEB results released early this year. This is part of a prize codenamed the CNOOC Best Performers Award, introduced in 2012 to primarily encourage better performance in Hoima and Kikuube districts. The beneficiaries of the funding received the awards at a function held at Sir Tito Winyi Primary school in Kizirafumbi Sub County, Kikuube district today. CNOOC corporate affairs personnel Ronnet Barugahara says 100 best performers have been awarded of which 60 are from…

Women In Bunyoro Bitter Over Oil And Gas Opportunities Exclusion

By George Busiinge Women in Bunyoro sub-region are lamenting that they have been excluded from accessing the country’s oil and gas opportunities. They claim that although the government and other stakeholders have been engaging different people on how to benefit from oil, little efforts are in place to help women. Dez Liz Abahangirwe, a certified welder from Bunyoro region, decried that oil and gas companies don’t favour women in the region. She revealed that oil companies haven’t offered women employment opportunities. Dez also revealed that while different people have been trained by oil companies and given skills, women haven’t been involved. Also, many women were not and aren’t being compensated during the RAP implementation in the oil refinery area. The aggrieved women expressed their concerns during an oil and gas engagement organized by ActionAid and Bapeneco in Hoima town. Fred Kakoraki, the Hoima District LC 5 vice-chairperson, however, commended the…

AfDB, Uganda Sign $500,000 Grant For MSMEs Petroleum Sector Capacity Development

The African Development Bank and the Government of Uganda have signed a $500,000 grant agreement for financing of Micro, Small and Medium Enterprises (MSMEs) to boost business linkages on the East African Crude Oil Pipeline Technical Assistance project.The project's overall objective is to help develop capacity of local Uganda MSMEs along the East African crude oil pipeline, by enabling them to access new market opportunities, and building linkages with larger, national, regional and international companies. The project aims to support inclusive private sector growth and the creation of an estimated 500 jobs along the pipeline.Through the Fund for African Private Sector Assistance (FAPA), the Bank will contribute $500,000 to the project. The Government of Uganda through the Petroleum Authority will provide counterpart funding. A similar project is being finalised on the Tanzanian side of the border.The grant was provided in response to a request from Uganda and Tanzania for assistance…

Oil Refinery Paps Seek Land Tittles, Vocational Training

People who were relocated by the government to pave way for the construction of an oil refinery in the 13 villages of Kabaale Parish in Hoima district are demanding the government to give them land titles for their land and provide them with vocational training to enable them to work in the oil and gas industry. More than 7,000 people were relocated from the villages in Kabaale, Buseruka sub-county, Hoima district where the government acquired a 29-square kilometre piece of land to pave way for the construction of an oil refinery, and resettled in Kyakaboga. The group now wants the government to give them land titles and at the same time establish a vocational school in their new settlement. During their relocation, the government promised to avail them with vocational skills to enable them to earn a living, a commitment that has not been implemented to date. The group includes…

Total's 2nd Discovery In South Africa Promises Regional Gas-led Recovery

While anticipated, Total's second significant gas condensate discovery announced today in South Africa is nonetheless reason to rejoice after a year of deep uncertainty and struggles for the African energy sector. With partners Qatar Petroleum, CNR International and Africa Energy Corp, Total was able to start its multi-well exploration programme on Block 11B/12B only two months behind schedule, delivering what remains until now the year's only discovery across sub-Saharan Africa.The Luiperd-1X well was drilled to a total depth of 3,400 meters and encountered 73 meters of net gas condensate pay within the Paddavissie Fairway, which already includes the 2019 Brulpadda discovery. This second find confirms the tremendous gas potential in South Africa and is expected to be followed by the drilling of a third, a potential fourth, exploration wells on the same block.More importantly, the discovery further positions Africa as a global and competitive gas frontier that continues to offer…
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