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Sat, Sep

oil and gas

  • Local content policies and localization strategies cannot be forgotten in the pursuit of investment and efficiency

    Written By Verner Ayukegba - Africa is at an energy cross-road. On one hand, the most talented, better educated, most entrepreneurial and competitive generation the continent has ever had is rising and taking on leadership positions that will propel African companies to become more competitive.

  • Nigeria, Africa’s most populous nation and the continent’s largest oil producer, is facing twin crises – a health epidemic caused by COVID-19, and an economic crunch largely occasioned by a global oil price plunge.

    The Board of Directors of the African Development Bank on Friday approved a $288.5 million loan to help Nigeria tackle the COVID-19 pandemic and mitigate its impact on people and businesses.

    The loan will bolster the government’s plans to improve surveillance and response to COVID-19 emergencies, ease the impact on workers and businesses and strengthen the social protection system

    Nigeria, Africa’s most populous nation and the continent’s largest oil producer, is facing twin crises – a health epidemic caused by COVID-19, and an economic crunch largely occasioned by a global oil price plunge. As of June 5, the country reported 11,516 coronavirus cases, 3,535 recoveries and 323 deaths.

    The loan is the Bank’s initial response to help mitigate the slump in oil prices and its impact on the national economy.

    About 40.1% of Nigerians live below the poverty line of $1.90 per day and it is feared that the fall in household income during the pandemic will result in wealth deterioration for both the formal and informal sector workers.

    “The proposed program will ensure that the fiscal position and the economy are sufficiently supported to weather the COVID-19 shocks, thereby limiting its potential adverse impact on livelihoods and the economy more generally,” Ebrima Faal, Senior Director of the African Development Bank for Nigeria said.

    Prior to the COVID-19 outbreak, Nigeria’s economy was projected to grow by 2.9% of GDP in 2020 and further expand by 3.3% in 2021. But with the advent of the pandemic and the slump in crude prices, the economy is expected to shrink by between 4.4% under a conservative baseline scenario, and 7.2% should the pandemic persist to end-2020.

    Faal said beyond the country’s immediate economic recovery needs, the Bank and other development partners, will dialogue with the government on proposals for medium-term structural reforms to diversify and boost domestic revenues away from the oil sector.

    The Bank has instituted strong fiduciary measures to monitor the use of COVID-19 funds, and will maintain dialogue, particularly with the Office of the Auditor General in Nigeria, to ensure adherence to the transparency and accountability of the funds, Faal said.

    The Bank’s intervention aligns with its COVID-19 Response Facility (CRF); Ten-Year Strategy (2013-2022); and High 5 priorities, especially “Improve the quality of life for the people of Africa”. It is also consistent with the second strategic pillar of the recently approved Bank’s Country Strategy Paper 2020-2024 for Nigeria.

    Distributed by APO Group on behalf of African Development Bank Group (AfDB).

  • Africa’s rich resources still represent opportunity, including a wealth of natural gas waiting to be discovered

    Written By NJ Ayuk - It isn’t breaking news that the world is currently on “lock-down mode.” Around the globe, the COVID-19 pandemic has made conditions dire and triggered global economic shutdowns.

  • Restrictions of visa issuance are de facto preventing a lot of projects to move forward and to successfully contribute to the recovery of the continent

    The continuation of travel restrictions and suspension of visas and travel between Africa and Europe is heavily restraining the oil & gas industry’s recovery efforts. Because of its international nature, the oil & gas sector relies on global value-chains and successful cooperation and movement of people, goods and services between foreign and local contractors. The ongoing travel bans and restrictions of visa issuance are de facto preventing a lot of projects to move forward and to successfully contribute to the recovery of the continent.

  • Mexico is the lone holdout in a global deal to save the oil and gas industry. US set to see production decline

    In an historic effort to power the oil and gas industry out of its worst tailspin in its 100-year history, the United States, Canada and other G20 nations are backing the OPEC+ group of countries in a broad effort to reduce global oil supply and restore stability to the oil and gas markets.

  • For Africa including Ghana, Wood Mackenzie predicts that about 33 per cent of upstream investments will not take place due to the current pandemic, ...

    Written By Henry Teinor - The fangs of the new Coronavirus, since its appearance in late 2019, have cut through all sectors of national economies leaving nothing unscathed.

  • An estimated 1 ton of oil from the Japanese ship’s cargo of 4 tons has already escaped into the sea, officials said. Workers were seeking to stop more oil from leaking, but with high winds and rough seas on Sunday there were reports of new cracks to the ship’s hull.

    Thousands of students, environmental activists and residents of Mauritius were working around the clock Sunday, trying to reduce the damage to the Indian Ocean island from an oil spill after a ship ran aground on a coral reef.

  • There has been a ray of hope: a landmark production-cut agreement among OPEC, OPEC+ and G20 stakeholders on April 12 put an end to the oil price war

    Written By NJ Ayuk - Stunning drops in crude oil prices—the result of COVID-19-related declines in demand and an oil price war between Saudi Arabia and Russia—have been taking their toll around the globe this spring. For Africa’s oil-producing countries, where crude oil exports make up a large portion of their revenue, the situation is especially dire.

  • While the unusual circumstance of negative oil prices may not be repeated, many in the industry say it is a harbinger for more bleak days ahead, and that years of overinvestment will not correct in a period of weeks or even months.

    The magnitude of how damaged the energy industry is came into full view on April 20 when the benchmark price of U.S. oil futures, which had never dropped below $10 a barrel in its nearly 40-year history, plunged to a previously unthinkable minus $38 a barrel.

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