Oil & Energy
Global Energy Advisory
Saudi Arabia was in the spotlight this week, after a string of arrests on corruption allegations and muscle flexing in the direction of Iran. The so-called anti-corruption sweep toppled former and current ministers and several members of the Saudi royal family, sparking worry about a possible destabilisation in OPEC’s largest oil producer.
It has emerged in the meantime, however, that the operation might be primarily focused on money-gathering: to date, some $800 billion in assets of the people arrested have been frozen by the government and some observers have suggested the money will become state property, to go into propping up the government coffers.
At the same time, Saudi Arabia is baring its teeth at Iran, accusing it of a direct military attack after earlier this week the Iran-backed Houthi rebels in Yemen fired a missile at Riyadh, which the Saudi anti-missile system intercepted. The White House is backing the Saudis in their claims against Iran. Tehran has said the missile attack came in response to Saudi intervention in Yemen. This intervention, initiated two years ago, is a heavy load on Crown Prince Mohammed.
All these events have been bullish for oil prices but the latest from Saudi Arabia may have an opposite effect. Satellite imaging services provider Orbital Insights has released data suggesting Saudi Arabia has been lying about the state of its crude oil inventories. While Riyadh has been reporting a decline in these since early 2016, Orbital Insight data suggested a slight increase.
That data only comes from storage tanks on the ground, while Saudi Arabia also stores crude abroad, at foreign ports, and underground tanks. If stockpiles declined there then the Orbital data is irrelevant. If the Orbital data does indeed show cheating on the numbers, the OPEC production cut deal could well be dead in the water.
Deals, Mergers And Acquisitions
• French Total has bought the LNG exploration and production assets of Engie for $1.45 billion. The assets include a liquefaction plant in Louisiana, a number of long-term sales and purchase agreements, a fleet of LNG carriers, and access to re-gasification terminals in Europe. The deal also involves an additional consideration of $500 million if oil prices improve in the next few years.
• Australian Elk Petroleum has finalised the acquisition of the Greater Aneth oil filed in Utah, for a total $160 million. The seller is Resolute Energy Corp, which had a 63 per cent stake in the field, which is among the biggest CO2 enhanced oil recovery projects in the country. Its remaining recoverable reserves after a 30-year productive life are about 300 million barrels.
• China Energy Investment Corp. has signed preliminary agreements to invest $83.7 billion in U.S. LNG storage, power generation, and chemical production projects. The investment will be focused on West Virginian and was agreed during President Trump’s visit to China as part of his Asian tour.
• Noble Energy has agreed to sell 30,200 acres in the Denver-Julesburg Basin to SRC Energy for $608 million. The assets produce an average 4,100 bpd of oil equivalent from 600 drilling locations.
• Anadarko is selling its Moxa gas field in Wyoming for $350 million. The field’s output has been in decline since last year, with peak production at 96 million cubic feet daily. This has now, a year later, fallen to 72 million cubic feet daily. The company did not mention the name of the buyer.
Tenders, Auctions And Contracts
• Mexico’s tender for an oil and gas marketing firm was declared void this week, as it failed to attract any bids. The government organised the tender to pick a marketer that will sell the oil and gas produced under new contracts. Until 2013, when Pemex had a monopoly of the Mexican oil and gas market, the marketing of Mexican oil and gas was the charge of a Pemex unit, P.M.I. Comercio Internacional.
• The state oil companies of Iraq and Iran are discussing joint oil field development in Iraq, local media reported-two days after news of another ongoing negotiation concerning the possibility of shipping crude oil from Kirkuk fields to an Iranian refinery.
Discovery And Development
• China is preparing to launch the world’s largest offshore drilling rig in the South China Sea, to explore for gas hydrates, a potentially promising source of energy of which there may be vast reserves, according to scientific investigations. The Blue Whale 2 is a floating platform and can operate in 11,000 feet of water. What’s more, it can drill at depths of 50,000 feet, which is unprecedented.
Source: Oilprice Report for 10/11/17.
• Nigerian Oranto Petroleum has started exploration activities in South Sudan in partnership with geophysical survey services provider BGP. The Nigerian company has pledged $500 million for the exploration project, which contains an oil and gas block with reserves estimated at over 3 billion barrels of crude oil.
• Shell has started the construction of a $6-billion petrochemical complex in Pennsylvania, whose main feedstock will be natural gas form shale plays in the area. The complex will include three polyethylene plants with a combined annual capacity of 1.6 million tons, plus a steam cracker with a capacity equal to that of the polyethylene plants.
• UK-based Tower Resources plans to resume its exploration activities in Cameroon after a $2.76-million capital injection. The company is exploring for oil in the Thali license area, which has estimated oil-in-place resources of 39 million barrels. Drilling could begin as soon as next year, so the company can take advantage of the low prices for oilfield services while they last.
Regulatory Updates
• The chairwoman of the Senate’s Energy and Natural Resources Committee, Lisa Murkowski, has released a bill that would open the Alaska Arctic National Wildlife Refuge to oil and gas drilling if passed. The bill envisages at least two large-scale lease sales over the next ten years, spanning a minimum of 400,000 acres each. Surface development, however, should not exceed 2,000 acres, according to the bill. Environmentalists are unhappy about the legislation, arguing that recent leases sales in the North Slope have failed to yield any significant finds.
Politics, Geopolitics & Conflict
• The Niger Delta Avengers have announced an end to the ceasefire they had agreed with the Nigerian government and now once again oil infrastructure is fair game for the militant group despite calls from local community chiefs for its members to lay down their arms.
• Protests from local communities continue in Peru and are likely to continue to affect all natural resources industries present in the Andean country. Late last month, indigenous villagers ended a 43-day protest that had halted production in Peru’s largest oil block after signing a deal with the government. Protesters demander cleaning up oil pollution and from government to commit to including tribes in talks on long-term oil drilling plans, and the government accepted the terms. It is not announced why the protests were renewed. Oilfield in question, Block 192 is operated by Canadian Frontera Energy Corp but has not produced any oil from it since three indigenous tribes seized oil wells in mid September.
• The latest offshore tax haven leak, the Paradise Papers, could cause a headache for Glencore as they reveal the company hid its ownership stake in SwissMarine Corporation when it was negotiating its takeover of XStrata. Also, according to leaked documents, Aberdeen, Scotland-based Ithaca Energy is said to have set up a shell company in Bermuda in 2012 to purchase its share in a $50-million North Sea oil production platform.
Oil & Energy
Nigeria Loses More Crude Oil Than Some OPEC Members – Nwoko

Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended
Oil & Energy
Tap Into Offshore Oil, Gas Opportunities, SNEPCO Urges Companies

Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.
Oil & Energy
Administrator Assures Community Of Improved Power Supply

The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.
By: King Onunwor
-
Sports4 days ago
RSG Advises Rivers Angels, Players, Mgt To Work As A Team …Tasks Them To Win The Final
-
Nation4 days ago
FG Restates Commitment To Seafarers’ Welfare, Safety
-
Rivers4 days ago
Students Praise Old Boys/Girls 83 Set Over African Child Day Celebration
-
Featured4 days ago
Senate Issues 10-Day Ultimatum As NNPCL Dodges ?210trn Audit Hearing
-
News4 days ago
Tinubu Rejects NDLEA Bill Over Crime Proceeds Clause
-
News4 days ago
Shettima In Ethiopia For State Visit
-
Sports4 days ago
Lagos Holds African Fencing Champs
-
Rivers4 days ago
Rivers NYCN Wants Sokubo For Second Term