Today's global oil and gas market is in a state of flux, with price volatility, demand fluctuations and tight liquidity causing unprecedented impacts across the energy value chain.
At the same time, a number of producing markets are emerging in Africa thanks to resilient exploration campaigns and the growing involvement of the private sector.
Therefore, the need to improve stability and ensure that markets not only function well but become stronger has never been more important.
In this regard, the African Energy Chamber (AEC) congratulates HRH Prince Abdulaziz bin Salman, Minister of Energy of Saudi Arabia, for his recent statement on the need to prioritize market stability.
For energy poverty to become history by 2030 in Africa, the continent's burgeoning oil and gas market needs to be strengthened, and the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have the means to do so.
According to His Royal Highness Prince Abdulaziz bin Salman, the global oil and gas market situation presents a significant disconnect between the paper market and the physical market, “with the oil paper market falling into a self-perpetuating vicious circle.” itself of extreme liquidity and volatility, undermining the market's essential function of efficient pricing and making the cost of hedging and risk management prohibitive for physical users.
This has a negative impact on the smooth and efficient functioning of the markets for oil, energy commodities and other commodities, creating new types of risks and uncertainties.” However, His Royal Highness Prince Abdulaziz bin Salman offers a solution whereby OPEC+ member countries leverage their “commitment, flexibility and means within the existing mechanisms of the Declaration of Cooperation to address such challenges and provide guidance”.
, including cutting production at any time and in different ways, as appropriate.
it has been clearly and repeatedly demonstrated in 2020 and 2021.” In doing so, OPEC+ will ensure stability in the market and that new risks faced by suppliers, consumers and the private sector are mitigated.
“We will soon begin work on a new agreement beyond 2022 that will build on our previous experiences, achievements and successes.
We are determined to make the new agreement more effective than before.
Witnessing this recent damaging volatility disrupts basic market functions and undermines the stability of oil markets will only strengthen our resolve,” notes His Royal Highness Prince Abdulaziz bin Salman.
“A stable oil and gas market translates into strong participation and success throughout the private sector.
In Africa, where the private sector is beginning to play an increasingly important role in energy-related developments, stability in the global market will be key to ensuring efficient operations and continued growth.
In this regard, the ACS strongly supports His Royal Highness Prince Abdulaziz bin Salman in his pursuit of market stability, employing member countries to leverage their positions and usher in a new era of stability around the world."
, says NJ Ayuk, Executive Chairman of the ACS, adding that, “Market stability will benefit the private sector and consumers, allowing the African continent to drive long-term socio-economic growth and industrialization and make poverty energy will go down in history by 2030”.
The stabilization of oil and gas markets will represent a key issue that will be discussed by energy experts, African and global producers, as well as private and public sector executives at the continent's largest energy event, African Energy Week (AEW).
With the 2022 edition taking place on 18-21 October 2022 in Cape Town, discussions will largely focus on improving stability, reducing volatility and making energy poverty history due to oil and the gas.
Key points from the discussions include increasing private sector participation; industrialize Africa using oil and gas; promote an Africa-curated strategy for the energy transition; and the creation of strong, competitive and global markets in Africa.
With a host of OPEC member countries joining the conference as official delegations, partners and sponsors, the discussion on the role OPEC+ plays in stabilizing global markets will be amplified.
For Africa, the conference represents the ideal platform to explore the challenges and opportunities in the energy market, as AEW 2022 advances Africa's position on global energy issues.
Meanwhile, for OPEC+, the networking and forum opportunities offered at AEW 2022 only serve to enhance the dialogue on oil and gas market trends.
Therefore, in the context of 2022, AEW 2022 seeks to address the disconnect between paper and physical markets, strengthening the global sector for years to come.
In a recent statement, His Royal Highness Prince Abdulaziz bin Salman, Minister of Energy of Saudi Arabia, emphasized that the Organization of the Petroleum Exporting Countries (OPEC) and its allies have the commitment, flexibility and means to directly address the challenges current market.
As liquidity shortages and extreme volatility undermine the core function of the market while introducing new risks to the value chain, employing tactics to ensure market stability and reduce volatility is key, now more than ever.
As OPEC President for 2023, Equatorial Guinea fully supports HRH Prince Abdulaziz in his quest for stability, like other producing countries in Africa.
Currently, the state of the global oil and gas market can best be described as a disconnect between paper and physical, with a lack of sufficient liquidity resulting in paper markets being unable to effectively reflect market realities.
HRH Prince Abdulaziz bin Salman offers a clear explanation, emphasizing that “in a way, the market is in a state of schizophrenia, and this is creating a kind of yo-yo market, sending the wrong signals at a time when increased visibility and clarity and well-functioning markets are more necessary than ever to enable market participants to efficiently hedge and manage the enormous risks and uncertainties they face.” Essentially, this disconnect has significantly impacted market operations, a trend that has only been amplified by "unsubstantiated stories about demand destruction, recurring news stories about the return of large volumes of supply, and ambiguity and uncertainty about potential impacts."
of price caps, embargoes".
and sanctions.” As such, the need to address this disconnect and usher in a new era of market stability and growth is paramount, and OPEC+ represents the solution.
"For the past two years, OPEC+ has made clear its role in stabilizing and strengthening global oil and gas markets, and in 2022, this will only continue.
As His Royal Highness Prince Abdulaziz bin Salman stated, OPEC+ OPEC+ has the means to create stability, whether it is through production cuts or any other method As a member of OPEC and President of the 2023 organization, Equatorial Guinea fully supports OPEC+ and the methods it employs to ensure stability ", affirmed HE Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea, adding that "producer markets in Africa have supported and will continue to support calls for market stability and reduced volatility.
For Africa, the The onset of stability will not only be key for mature and emerging oil and gas markets, but will also reduce risks for market participants, allowing them to hedging and managing uncertainties efficiently As many countries in Africa begin their journey to becoming producers, ensuring well-functioning wi markets will be key."
As His Royal Highness Prince Abdulaziz bin Salman states, "Witnessing this recent damaging volatility that disrupts basic market functions and undermines the stability of oil markets will only strengthen our resolve."
The African Energy Chamber fully supports and endorses this position.
Seeking to make energy poverty history in Africa by 2030, the African Energy Chamber (AEC) met with Pavel Sorokin, First Deputy Minister of Energy of the Russian Federation, to discuss the role that the Russia- Africa in large-scale energy acceleration.
energy developments in Africa: driving an energy transition adapted to Africa and alleviating energy poverty through better access and sustainable economic growth.
In the spirit of HE Mohammed Sansui Barkindo, the late Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), discussions during the meeting focused on the need to encourage and enhance continued energy collaboration between Russia and Africa on the need of a just energy transition.
as well as making energy poverty go down in history.
At the meeting, the parties emphasized the need for Russia to continue its collaboration with OPEC+, as well as other key organizations, including the Forum of Gas Exporting Countries and the African Association of Oil Producers, in addition to participating in the discussions held in Sham El Sheihk in Egypt at COP27.
With more than 125 billion barrels of proven crude oil reserves and 620 trillion cubic feet of natural gas, Africa's hydrocarbon potential is unparalleled.
These resources have the potential not only to meet domestic demand, ushering in a new era of socio-economic growth thanks to oil and gas, but also to meet global demand, stabilizing prices and avoiding volatility in the world oil and gas market.
oil and gas.
As such, the need to develop and monetize these resources is key and better collaboration between Russia and Africa could ensure that development is accelerated.
“The ACS is committed to making energy poverty history in Africa by 2030, and to do so we believe it is necessary to maximize all available resources on the continent.
Russia can help boost investment and knowledge about these resources and ensure that the continent benefits from its wealth of natural resources”, says NJ Ayuk, CEO of AEC, adding that “the meeting with Pavel Sorokin focused on this same narrative: that in order to alleviate energy poverty and drive long-term sustainable economic growth, we need to enhance Russia-Africa collaboration, push for a just energy transition tailored to Africa, and fight climate change.” The need for an Africa-focused energy transition has been a topic of debate in recent years, with the ACS as the voice of the African energy sector, driving the narrative that Africa's energy future will continue to depend on all the resources present in the world.
As such, the ACS's annual energy conference, African Energy Week (AEW), taking place from 18-21 October 2022 in Cape Town, will focus heavily on this narrative, with panel discussions, investors and ministerial summits exploring the need for a multi-resource approach to the energy transition.
These discussions will begin at AEW in Cape Town and continue at COP27 in Cairo.
As such, the ACS will carry the narrative of a just energy transition from the Cape to Cairo.
• War Has Created Scarcity In Various Domains — Akinterinwa• ‘Nigeria Cannot Be An Exception In Terms Of Impact’• Only Effective Leadership Can Save Situation, Says Akinyemi As countries, including Nigeria, continue to record rising inflationary rates occasioned by the Russian-Ukrainian war, foreign affairs experts in Nigeria have predicted that citizens would experience more hardships in the months ahead unless the warring countries reach a lasting truce.
A former Minister of Foreign Affairs and Professor of Political Science, Bolaji Akinyemi and a former Director-General of Nigeria Institute of International Affairs (NIIA), Prof. Bola Akinterinwa, who spoke in separate interviews with The Guardian, therefore urged Nigerians to brace up for the challenges ahead.
They, however, blamed the Federal Government for its failure to prepare for uncertainties like the Russia-Ukraine war, which has strained its economy and pushed more households into poverty following the rising cost of living.
Figures released by the National Bureau of Statistics (NBS) last Tuesday showed that Nigeria’s inflation rate has defied monetary tightening, hitting 19.
64 per cent in July, a level not seen in over a one-and-a-half decade.
However, the trend is not peculiar to Nigeria as the annual inflation rate of its West African neighbour, Ghana, accelerated for the 14th straight month to 31.
7 per cent in July from 29.
8 per cent in June.Overseas, a country like the United Kingdom recorded a 10.
1 per cent inflation rate in July, the first time it has registered a double-digit increase in 40 years.
In June, the annual inflation rate in the United States hit a 40-year high of 9.
1 per cent but slowed more than expected to 8.
5 per cent in July. Speaking on the trend, Akinyemi stated that the economy of the world has become global, hence the situation in Nigeria and elsewhere.
His words: “No country is an island of itself; we are not the only country who imports wheat from Ukraine; about 40 countries do.
Then, the high price of oil, both crude and refined, affects practically all the countries in the world.
Don’t forget that we are just getting out of the negative consequences of COVID-19 and Omicron when this war came slamming into the world economy.
The price of cooking and industrial gas in Europe had gone up, which affects goods produced.
That alone shoots up the prices of goods all over the world, especially countries that depend on importation of crude and refined oil.
” He added that Nigerians should expect their sufferings to continue, but noted that saying so does not mean there would not be palliatives.
He noted: “No matter the relationships between what is happening in the rest of the world with what is happening in our own country, it must be emphasised that there is no substitute for effective leadership that can manage the crisis of the world economy.
Effective leadership can cushion the negative effect of the world economy and an effective leadership style can actually take advantage of the negative aspect of the world economy.
“As an illustration, the news that came out of Saudi Arabia last week was that the profits of the Saudi Arabia crude export had gone up considerably; that Saudi oil export had taken advantage of the negative aspect of the world trade in crude oil.
This is an example of effective crude management.
While some are bemoaning Russia’s oil not coming into the market, others have actually used that advantage to increase their profit margin.
In a case like Nigeria’s where there is stealing half a million barrels of crude oil, there is no way it can take advantage of the scarcity or high oil price when it cannot meet the quota that OPEC ascribed to it.
So, it is against that backdrop that I would say the Nigerian economy is not immune from the negative aspect of the Russian-Ukrainian war.
“It is not even the war directly because the ban on Russian export of oil should not affect a country like Nigeria; if anything, the prices that shut up in the oil market should have been of advantage to us.
But as I said earlier, since half a million of our barrel of crude is being stolen, we cannot take advantage of that.
On the contrary, since we import all our refined products from abroad, the prices of that refined products will be a function of the increase in crude oil.
In fact, instead of benefiting, we are now suffering from the shortage of crude and consequently the high increase in importation.
“The second area is in food supplies; the very obvious one is the high cost of flour and consequently the high cost of bread.
Until the United Nations’ successful agreement between Russia and Ukraine to restart the export of Ukrainian wheat to bring the flour into the world, again we have become victims of a shortage of wheat and flour.
Consequently, the price of bread has shut up and there has been a shortage of bread leading to high prices and inflation in the food sector in the country.
Even though the UN has arranged a new agreement to ease this shortage, it would take time for a sufficient quantity of wheat and flour to get into the world market and bring down the price of flour.
” He noted that as more of the wheat from Ukraine gets into the world market, the inflation index in the food sector would probably come down a bit.
“But again, we are an importing country.
We import almost everything; therefore we are not going to be immune from what is happening in the world market, whereas those who make their wealth from importing will have an economic backward integration; if you are importing flours, invest in wheat production.
“If you are importing tomatoes, invest in tomato farmlands and factories that will can these tomatoes.
In other words, take measures that will make our economy less dependent on importation, that will be the long-term way of preparing Nigeria for the next war that will break out somewhere else, hopefully not on our own territory, but wars are going to be breaking out.
” “We could see it between China and Taiwan, which was almost a global war.
So, we really should be thinking far ahead how to insulate our economy from aggressions or wars around the world.
” Akinyemi urged the Federal Government to stop oil theft as part of efforts that must be geared towards strengthening the economy in the face of the current challenge.
He stressed: “A tanker that could carry three million barrels that left Nigeria has just been seized in Equatorial Guinea and that was a tanker involved in smuggling.
If you cannot depend on Nigeria’s security forces, seek help from those that have the capability.
For example, it is in the interest of Americans for Nigeria to meet its export of crude quota, because if we can get that half a million that is being smuggled out of Nigeria legally into the market, it increases the availability of crude, which the Americans are interested in.
That is why President Biden went to Saudi Arabia to secure the supply of more crude into the world market.
This will be in America’s interest and in our own interest too because we will earn more money so we don’t continue to borrow money, even though we can’t even borrow because of our inability to pay our debts.
“We have been on the issue of sanitising the activities in the oil sector and I will say this – I don’t believe in destroying illegal refineries; it is not the solution.
These people are providing a service; if the standard of the refined oil they are producing is bad, they will not get customers patronising them.
What the government should do is to bring them; they have local refineries that are working, while our four refineries are not working.
“So, we should bring these people into the economy, help them through technical assistance to better refine the crude and get them to pay for the crude you supply to them, then they won’t be breaking the oil pipes polluting the environment.
“I grew up at a time when goods coming in from China and Taiwan were so inferior; we used to laugh at them, but their government did not go and close down those factories but helped to modernise those factories.
Today, nobody is laughing at Japanese or Chinese goods.
So, why do we send in troops to break down those refineries and the next day they go back to them instead of our troops to fighting terrorists.
” On his part, Akinterinwa explained that rising inflation in Nigeria and elsewhere have much to do with the Russia-Ukrainian war in several ways.
His words: “First, when an event takes place in any given place, there is always the domino effect, no matter how minute.
When a statement is made by an important public figure in a country, it is internationally reported.
People in other countries can listen to the statement in the comfort of their homes.
Based on that statement, new opinions are formed: there can be agreement or disagreement with and even condemnation.
This is a permissible interference.
If the statement is about a government’s intention to raise taxes or about nationalise some businesses, international stakeholders cannot but be so concerned.
“The issue of the rising inflation is not different because it is not limited by territorial boundaries.
Goods are manufactured in one country; the buyers are in another country.
The instruments of payment are administered elsewhere.
This is a message that the Russo-Ukrainian war has communicated to the world: messages of disruption in the domestic and global order with all their attendant implications in Ukraine; disruption of demand and supply in EU countries; disruption of import and export, disruption in international communications, disruption in social services, in other countries of the world, etc.
The domino effects can largely explain the inflationary trend you raised.
” He pointed to the economic sanctions taken against Russia by the European Union (EU) and the United States as part of the causes of the current disruptions in the global economy.
He added: “The sanctions cannot but generate inflation.
Russia supplies a lot of gas to the EU.
Russia was compelled to introduce the use of its own national currency as international money as a result of the sanctions.
The BRICS (Brazil, Russia, India, China and South Africa) is also preparing to introduce a new convertible currency as an alternative to the pound sterling and the US dollar.
All these measures go beyond micro and macro-economic considerations.
In fact, aviation costs, as well as wheat and other cereals that Ukraine normally exports to the world, including to Africa, have been adversely affected.
“True enough, the war has created scarcity in various domains.
The scarcity generates inflation and inflation is spreading worldwide because the international community lives interdependently and based on demand and supply.
When there is scarcity, inflation follows.
Nigeria cannot be an exception in terms of impact, especially because, as I have said, the war creates different problems ranging from politico-diplomatic to economic-cultural and military for other members of the international community.
” On why Nigeria seems to be heavily impacted by the war, Akinterinwa noted: “First, Nigeria maintains diplomatic ties with both Ukraine and Russia and the relationships are both warm.
Nigeria’s diplomacy should, under normal circumstances, be to avoid being the friend of one and enemy of the other.
But because of the misapplication of Nigeria’s policy of non-alignment, and particularly by carelessly aligning with Ukraine, by asking Russia to withdraw its troops from Ukraine, it is now on record that Nigeria has taken a side, which is apparently not in Nigeria’s national interest.
Nigeria has become the enemy of Russia and the friend of Ukraine.
The friendship with Ukraine is not really a big deal when compared to the implications for Nigeria’s industrial development for which Russia stands on a higher pedestal than Ukraine.
“While it is true that thousands of Nigerians are studying in Ukraine and other thousands are doing the same in Russia, Nigeria’s ties with Russia are more notable because of the Ajaokuta Steel project.
The former Soviet Union took the side of Nigeria during her civil war.
Based on the Russo-Nigerian agreement of 2019, by which Russia agreed to help complete the Ajaokuta project, and in light of the pledges made at the Russia-African Summit held in Sochi, Russia in 2019 to bring development assistance to African countries, there is no way Nigeria will not be heavily impacted upon by the war, especially in terms of future punitive measures from the side of Russia.
”He also concurred that with the end of the conflict nowhere in sight, Nigerians should expect the worst scenarios going forward.
His words: “When a conflict persists without any quick end in sight, the worst scenarios must be expected.
First, further hardship in lifestyle must be expected.
Increasing loss of lives, rising inflation, and deepening animosity, not only vis-à-vis the invader but also towards the Ukrainian leader who paved the way for the war.
War weariness cannot but become a fresh factor.
Costs of prosecuting the war will not only increase but will not be available for any development purposes.
In other words, it can be argued that security takes priority and that no development can take place in an environment of inclemency.
Coups d’état cannot be ruled out as well as animosity towards those aiding and abetting the prolongation of the war.
Parliament has approved a US$70 million loan for the construction of a state-of-the-art facility to house the Uganda Heart Institute.
A loan request submitted by the government to collectively borrow US$70 million from the Arab Bank for Economic Development in Africa, the Saudi Fund for Development and the OPEC Fund for International Development has been approved after unanimous approval by members.
The National Economy Committee of Parliament analyzed the loan request and approved it with recommendations.
“…therefore, the committee recommends that the government's request to borrow [up to $70 million] for the construction and equipping of the Uganda Heart Institute Project be approved subject to the recommendations hereof,” said Committee Vice-Chairman H.E. Robert Migada.
However, Migadde has asked the government to renegotiate the terms of the loan to guarantee flexible payment terms.
“The committee recommends that it is necessary for the Ministry of Finance to engage financiers with a view to improving the financial terms to more concessional or semi-concessional terms…in particular, increasing the repayment period of the loans proposed by BADEA and OPEC to 20 years".
Challenges facing the Uganda Heart Institute in executing its mandate, Migadde said, reported the approval of the loan.
“The committee recommends that, going forward, the government addresses immediate constraints, i.e. inadequate workspace and medical infrastructure, in order to build a strong foundation for the Uganda Heart Institute to become a center of excellence.
in cardiovascular medical services,” he said.
Vice President Thomas Tayebwa called on the Uganda Heart Institute to use the loan well and ensure the center served the multitude of heart patients.
“We lose 500 children every year because they have the experience but they don't have the facilities to do it; you can save that Ugandan who can't go to Kenya; the decision is yours”, he said and added that “this loan started in the 10th Parliament; one of the demands was their independent house where they will be able to assume and perform sophisticated surgeries'.
The Honorable Lucy Akello (FDC, Amuru District) endorsed the loan as a trip to relieve families concerned about health care challenges.
“All the money we borrow must be well used; there are families that cannot even pay 50,000 shs.
I hope that when we have our own center and our people will not suffer,” she said.
Kabale Township MP Dr Nicholas Kamara said the approval will be useful given the rising statistics of people suffering from non-communicable diseases.
“I have been to the Uganda Heart Institute many times and have seen the limitations; we are in a demographic transition where noncommunicable diseases are causing more deaths,” he said.
Oil giant Saudi Aramco on Sunday unveiled record profits of $48.
4 billion in the second quarter of 2022, after Russia’s war in Ukraine and a post-pandemic surge in demand sent crude prices soaring.
Net income leapt 90 percent year-on-year for the world’s biggest oil producer, which clocked its second straight quarterly record after announcing $39.
5 billion for Q1.
Aramco is just the latest oil major to rake in eye-watering sums after ExxonMobil, Chevron, Shell, TotalEnergies and Eni also revealed multi-billion-dollar profits in the second quarter.
“While global market volatility and economic uncertainty remain, events during the first half of this year support our view that ongoing investment in our industry is essential,” said Aramco president and CEO Amin H.
“In fact, we expect oil demand to continue to grow for the rest of the decade,” he added.
Net income rose 22.
7 percent from Q1 in “strong market conditions”, Aramco said.
Half-year profits were $87.
9 billion, up from $47.
2 billion for the same period of 2021.
Aramco will pay an $18.
8 billion dividend in Q3, the same as it paid in Q2.
It “continues to work on increasing crude oil maximum sustainable capacity from 12 million barrels per day to 13 million by 2027”, its earnings announcement said.
The quarterly profits, the highest since Aramco’s record-breaking IPO, beat a company-compiled analyst forecast of $46.
Aramco shares were down about 1.
0 percent at 40.
4 riyals ($10.
8) in early trading on the Saudi stock exchange.
They are up 25 percent this year.
‘Crown jewel’ State-owned Aramco floated 1.
7 percent of its shares on the Saudi bourse in December 2019, generating $29.
4 billion in the world’s biggest initial public offering.
The “crown jewel” and leading source of income for the conservative kingdom temporarily supplanted Apple as the world’s most valuable company in March.
It now lies second in the list with a market valuation of $2.
Saudi Arabia has sought to open up and diversify its oil-reliant economy, especially since Mohammed bin Salman’s appointment as crown prince and de facto ruler in 2017.
Despite raising production, Aramco has pledged to reach “operational net zero (carbon) emissions” by 2050.
Carbon pollution is tallied in the country that uses the fuel, not where it is produced.
Nasser said Aramco recovered quickly from a series of attacks by Yemen’s Huthi rebels on its facilities earlier this year, including a dramatic strike in Jeddah that sent smoke billowing during a Formula One practice session in March.
“We were able to restore our production in all these facilities immediately.
In a few weeks, all facilities were working and producing at full capacity,” he told a media conference call.
Earlier this month, the International Energy Agency said global oil demand will rise more than previously forecast this year as heatwaves and soaring gas prices prompt countries to switch fuels for power generation.
Oil prices have dropped by $30 per barrel from a peak in June due to growing supplies, but remain close to $100.
The OPEC group of oil-producing countries has been gradually raising production, despite pressure from Western leaders including US President Joe Biden — who visited Saudi Arabia last month — to pump more.
Biden’s trip was seen as a climb-down after he previously promised to make Saudi Arabia a “pariah” over the killing of Washington Post columnist Jamal Khashoggi by Saudi agents in Turkey in 2018.
British Prime Minister Boris Johnson has also visited Saudi Arabia since the Russian invasion in February.
The Organisation of the Petroleum Exporting Countries (OPEC) says Nigeria’s crude oil production increased to an average of 1.183 million barrels per day (bpd) in July 2022. OPEC made this known in its Oil Market Report for August 2022 which was obtained by the News Agency of Nigeria on Thursday in Lagos.
The report said the figure showed an increase of 7,000 barrels per day when compared with 1.176 produced averagely in the month of June 2022. “According to secondary sources, averaged 28.92 in July 2022, higher by 216,000 barrels per day month-on-month.
“Crude oil output increased mainly in Saudi Arabia, the United Arab Emirates, and Kuwait, while production in Venezuela and Angola declined,” it said.
The report said Nigeria’s July Stanbic IBTC Bank Purchasing Manger’s Index rose to 53.2 from 50.9 in June, amid stronger inflows of new orders.
It said this helped to underpin a further improvement in operating conditions in the Nigerian non-oil private sector.
“Yet, purchase and output price inflation accelerated for the fifth straight month to 18.6 per cent in June 2022, against 17.7 per cent in May, amid unfavourable exchange rate movements and higher fuel costs.
“Nevertheless, business sentiment improved as firms reported hopes of securing greater business investments,” the report added.
Energy Capital & Power (ECP) (https://EnergyCapitalPower.com) is proud to announce that HE Bruno Itoua, Minister of Hydrocarbons of the Republic of Congo and President of the Organization of Petroleum Exporting Countries (OPEC), has been confirmed as a speaker at MSGBC Oil, Gas & Power Conference & Exhibition 2022 (https://bit.ly/3a4fuRb), now less than three weeks away.
HE Minister Itoua will join the respective ministers of Senegal (HE Sophia Gladima), Mauritania (HE Abdessalam Ould Mohamed Salah), Gambia (Hon. Abdoulie Jobe), Guinea-Bissau (HE Dionisio Cabi) and Equatorial Guinea (HE Gabriel Mbaga Obiang Lima) together with the Director General of the Sierra Leone Petroleum Directorate in the Office of the President, Foday Mansaray, addressing the delegates gathered at the ministerial forum that followed President HE Macky Sall's speech on September 1 in Dakar.
Since assuming the OPEC presidency in January from neighboring Angola, HE Minister Itoua has led the Congo through a robust oil-led economic recovery, achieving solid 5% GDP growth while mitigating production declines.
to stabilize the country's production at 275,000 barrels per day.
Thanks to HE Minister Itoua's vision, the 13 oil-rich nations that make up OPEC, which control 40% of the world's oil supply, have been able to return demand to pre-COVID-19 levels, removing restrictions of 10 million barrels per day imposed.
during the 2020 recession and seeing global commodity prices hit a high of over $100 a barrel in April, which represents a seven-year high.
HE Minister Itoua's leadership role as Minister of Hydrocarbons of the Democratic Republic of the Congo gives him a wealth of experience to share with the emerging energy mega-players of the MSGBC basin.
With a mature extractive sector dating back decades, Congo-Brazzaville has 2.9 billion barrels of crude oil and 10 trillion cubic feet (tcf) of natural gas reserves, lauded for its private-sector involvement by companies like Perenco.
, Eni and TotalEnergies, with upstream oil representing 50% of national GDP, 70% of government revenues and 80% of net exports.
By contrast, the MSGBC nations boast 50 tcf of natural gas, 9 billion barrels of oil equivalent between them, but remain at the start of world-class production levels, $9 billion in oil projects, and gas that will come into operation next year.
MSGBC Oil, Gas & Power 2022 host nation Senegal has 500,000 barrels of oil in Sangomar and Gambia has potentially triple that with discoveries by Australian mega-company FAR.
All MSGBC nations are ramping up exploration similarly to the Congo with license rounds ranging from five to 27 blocks hitting the market this year.
In short, HE Minister Itoua's presence at the MSGBC ministerial forum could be a game changer, contributing unprecedented strategic insights to forge strong public-private partnerships and ties with a new slate of multinationals to join a set of companies.
international oil companies (IOCs) and investors who diversify rapidly.
to the region from Africa, Europe, Asia, America, Australia and the Middle East. Currently active in the basin are companies such as bp, Woodside, Kosmos, FAR, Petronas, PetroNor and Tullow Oil, however the Congo triad of Perenco, Eni and TotalEnergies represent some of the largest IOC investors operating in Africa, responsible for many of the largest hydrocarbon developments in West Africa in recent years.
The Director of the ECP International Conference, Sandra Sheikh, states that, “HE Bruno Itoua brings to the table unique global and national policy experiences in shaping sustainable hydrocarbon sectors for social and economic benefit, driving development.
His insights at the MSGBC Oil, Gas & Power 2022 Ministerial Panel this September are particularly welcome and appreciated, recognizing the basin's nascent but thriving industry with billions of dollars of investment already underway, expected to be double in the decade.” For more information on MSGBC Oil, Gas & Power 2022, which takes place in less than a month in the Senegalese capital Dakar, please visit https://MSGBCPOilGasAndPower.com.
Gov. Ifeanyi Okowa of Delta has advocated a review of surveillance contracts on oil facilities to involve host communities in order to check the high rate of oil theft in the country.
Okowa made the call when he received a Federal Government delegation on anti-il theft led by the Minister of State for Petroleum Resources, Chief Timipre Sylva, on Monday in Asaba.
He said that reviewing oil surveillance contracts based on performance of the contractors and engagement of host communities would ensure effectiveness in securing the nation’s oil and gas assets.
Okowa said that the challenge of oil-theft was huge, given the level it had assumed, but expressed happiness with steps taken by the authorities to curb the menace.
“I am glad that we are discussing this hydra-headed issue which impacts directly on our economy and the environment.
“It impacts on the health of the people and sustainability of the environment and I am glad that we are taking some steps because there are so many issues that led us to this.
“We went through situations where gaps where created between host communities and oil companies, and unfortunately criminality set in.
“It has gone so bad but we are doing our best as a state.
I am also glad with this collaboration,’’ he said.
The governor said it was pertinence of a review of surveillance contracts of the oil facilities to ensure community involvement.
Okowa said that it was often difficult to secure the facilities, especially when the persons given the contracts did not have adequate information on the environment or not have the buy-in of host communities.
“We know that the impact of the nefarious activities on the health of the people cannot be immediately ascertained and this collaboration is, therefore, very imperative.
“Any measure that will deliberately reduce the level of oil thefts is definitely worth supporting, and as a state government, we pledge our continued support.
“Why investment of the communities is needed is because there are some parts of the creeks that cannot be accessed by the surveillance contractor.
“The surveillance contracts should be tied to performance such that when there are oil thefts, you terminate the contract and it is always good that communities are involved because they know the environment better,” he said.
He, however, flayed the oil companies for not keeping faith with their Memorandum of Understanding (MOUs), thereby making the stakeholders to lose confidence in the system.
Okowa said that when oil companies failed to sign or implement MOUs, “it becomes very difficult for the state government to mediate when there are issues.
“The security agencies must heighten their operations and they need to be resourced to enable them to also increase their level of surveillance and for this to succeed, there must be sincerity on the part of all stakeholders.
”Earlier, Sylva said that the team was in Asaba to seek the support and buy-in of the state government on measures to be adopted to check oil-theft.
He said that oil theft had become a national emergency, especially as the nation had not been able to meet its OPEC production quota.
“As a country we cannot sustain this kind of theft perpetually.
“Our production has dropped drastically to very unsustainable levels; so, we have decided to take the bull by the horn by putting some structures in place.
”Those structures cannot function effectively without the collaboration of the state government,” he said.
Also, the Chief of Defence Staff, Gen. Lucky Irabor, who is coordinating the security intervention against oil theft, disclosed that in the last five months security agencies had been dealing with issues of illegal refineries and oil bunkering across the Niger Delta.
He also advocated for the engagement of indigenes and host communities in the fight against the criminal activity.
On his part, Group Chief Executive Officer of NNPC Limited, Malam Mele Kyari, said that Nigeria was currently losing about two billion dollars monthly to the activities of oil vandals, with its attendant effect on environmental degradation.
“As a country, we hardly meet our OPEC production quantum of 1.99 million barrels per day with our current production level of 1.4 million barrels per day which is currently being threatened by the activities of these economic saboteurs.
“This has done extensive damage to the environment and losing 1.9 billion dollars every month is colossal, considering the nature of the global economy at the moment,’’ he said.
Kyari reinstated that the team needed the support and buy-in of Delta Government “because stopping this oil theft requires the concerted efforts of the Federal, State Governments, oil companies and security agencies”.
The Minister of State for Petroleum Resources, Dr Timipre Sylva, has said that the country loses 400,000 barrels of crude daily via oil theft.
Sylva said this on Monday, when he paid a courtesy visit to Gov. Hope Uzodimma of Imo at the Government House, Owerri.
He described the development as a “national emergency”.
He regretted that the nation had fallen short of OPEC daily quota, from 1.8 million barrels to 1.4 million barrels, due to crude theft.
He warned that such huge economic loss was capable of crippling the nation’s economy, if not given the seriousness it deserved.
He expressed concern that the menace had persisted, in spite of the efforts by the Federal and State Governments to arrest it.
Sylva said the problem of crude theft could not be handled in Abuja alone.
“It is a national emergency because the theft has grown wings and reached a very bad crescendo.
“This is because the thefts are taking place in the communities that host the oil pipelines.
“As a result, it has become necessary to involve the stakeholders, especially the host communities.
“And because of the height and orchestrated nature of the menace, Nigeria could not take the advantage and opportunities that abound in the gas production.
“This is because no investor would want to invest where there is incessant insecurity and vandalism of the infrastructure,” he said.
The minister, therefore, appealed to the stakeholders to collaborate to solve the problem.
He commended the governor for his efforts to ensure that Imo remains safe and the economy not shut down.
In a remark, the Chief of Defence Staff, Gen. Lucky Irabor, who was in the entourage, thanked Uzodimma for supporting the Armed Forces in the fight against the escalating criminality in the oil-producing areas in the South-East. Irabor called on the State Government, stakeholders and communities to “be involved in the fight against oil theft to a reasonable percentage and leave the rest for the army”.
He assured the governor that the Army was ready to receive more assistance in the fight against banditry and other forms of criminality in the state and country at large.
Responding, the governor gave assurance that his administraton would sustain its efforts to arresting the economic sabotage being perpetrated by pipeline vandals.
He described the consequences of crude theft as ‘’very alarming and too much to be tolerated”.
He said that the problem did not only result in the drop in oil revenue for the government but also created environmental pollution and other health hazards for the host communities.
He therefore called for cooperation among the stakeholders, including the Federal and State Governments, NNPC and host communities to effectively fight the scourge.
Uzodinman commended NNPC for the 200-bed capacity hospital the company was building at the Imo State University Teaching Hospital, Orlu. He appealed to the company to speed up the project to ensure its completion in record time.
The News Agency of Nigeria reports that the meeting was part of the nationwide intervention efforts to curb crude oil theft.
Others in the entourage were the Minister of State for Education, Mr Gooduck Opiah, and Group of NNPC Limited, Mele Kyari.
The meeting was attended by a cross-section of traditional rulers and other representatives of oil producing communities in the state.