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Major Oil Producers To Consider Cuts After Price Slide

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Major oil producers meet in Abu Dhabi yesterday to consider reverting to output cuts after a sharp slide in crude prices revived fears of a 2014-style crash.
Oil prices shed a fifth of their value in just one month after surging to a four-year high in early October, driven by a combination of factors centred on higher supply and fears of sluggish demand.
Brent crude dropped below $70 a barrel on Friday for the first time since April while the New York’s West Texas Intermediate (WTI) sank below $60 a barrel, a nine-month low.
The United States has upped production of shale oil, while Saudi Arabia, Russia and others have raised supplies of crude amid signs of slowing demand.
The slide also comes during signs of a softer-than-expected impact from US sanctions on Iran oil exports.
“Prices have been falling amid a continued rise in crude supplies from big producers, such as Saudi Arabia, Russia and the US, more than compensating for lost Iranian barrels,” Forex.com analyst Fawad Razaqzada told AFP.
“With the Iranian sanctions not being as severe as initially feared, officials from the OPEC and non-OPEC producers may discuss at the weekend the need to bring compliance back down towards the 100-percent level or risk another 2014-style slide in prices,” he said.
Energy ministers of top producers Russia and Saudi Arabia will join other OPEC and non-OPEC officials for the meeting of the Joint Ministerial Monitoring Committee, which oversees production levels.
The world’s second and third crude producers — after they were overtaken by the United States thanks to shale oil — Russia and Saudi Arabia are the core of an alliance of producer nations that succeeded in solidifying oil prices after the 2014 crash.
Through large production cuts starting at the beginning of 2017, they managed to push up oil prices from below $30 a barrel to over $85 a barrel in October, strongly improving their revenues.
But the producer nations eased the output cuts in June after signs of a tight market and higher prices, allowing hundreds of thousands of extra barrels into the market.
Saudi Arabia raised its production from around 9.9 million barrels per day in May to around 10.7 million bpd in October, according to Energy Minister Khalid al-Falih.
Kuwait, Iraq, Russia and the United Arab Emirates also boosted their output.
Cailin Birch, analyst at the Economist Intelligence Unit, said a slowing oil demand is beginning to appear in China, the world’s largest importer of crude oil.
“The recent drop in oil prices reflects a combination of factors. For one, signs of slowing oil demand are beginning to appear; the rate of GDP growth in China is beginning to ease,” Birch told AFP.
The meeting, which will also be attended by the oil ministers of Kuwait, Venezuela and host nation the UAE, is not due to make decisions but will most likely send signals.
The JMMC, a technical committee, is expected to make important recommendations on production cuts to a key ministerial meeting in Vienna next month for the OPEC and non-OPEC producers.
Commerzbank, Germany’s second-largest lender, said Friday oil producers must act to prevent a free fall of prices.
“If they fail to signal any intention to reverse the latest increase in production, oil prices threaten to slide further,” the bank said in a note.

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NNPCL Assures On OB3 Pipeline Completion

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The Nigerian National Petroleum Company Limited (NNPC Ltd) has said the Obiafu-Obrikom-Oben (OB3) Gas Pipeline would now be completed next quarter.
This is as the national oil company said it would continue to invest in the development of huge oil and gas infrastructure to make it easy for operators and prospective investors to carry out their business in Nigeria.
The Executive Vice President, Upstream, Oritsemeyiwa Eyesan, disclosed this at the Offshore Technology Conference (OTC), in Houston, Texas, United States of America.
Speaking at one of the panel sessions of a luncheon organised by the Petroleum Technology Association of Nigeria (PETAN), with the theme: “Sustainable Energy Solutions for Africa’s Future (Nigerian Perspective)”, Eyesan stated that NNPC Ltd.’s objective was to ensure that there is a healthy balance of energy sources in the country.
She explained that though the oil and gas sector is not where it ought to be, much progress had been made between last year’s edition of the OTC in terms of opening up the sector for investments and infrastructural development.
While identifying funding as the major challenge impeding the development of the sector, Eyesan listed some of the bright spots in the industry to include the Executive Orders signed by the President to open up the sector, the imminent resolution of the assets divestment by the International Oil Companies (IOCs), and the aggressive execution of gas infrastructure projects such as the OB3 Gas Pipeline, which she said would be completed in the next quarter.

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TotalEnergies Targets 100 Startups In 2024

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As part of its support to businesses in Nigeria and Africa,  TotalEnergies Nigeria has launched the 2024 edition of its Startuppers challenge.
By this, the multinational aims at empowering 100 businesses across 32 African countries with N8 million cash prize, personalised coaching, and media representation.
The year’s edition of the challenge, launched virtually at an event attended by the Managing Director of TotalEnergies Nigeria Plc, Dr. Samba Seye, and other executives of the energy company, Last Thursday, would be used to commemorate the 100th anniversary of the multinational.
Presenting the form of this year’s competition, the General Manager, Total Country Service, TotalEnergies, Mrs Adesua Adewole, said registration for the challenge would open on May 13th and close on June 18th, 2024.
Adewole explained that 100 startups would be selected at first before 5 finalists would be selected, adding that the shortlisted businesses would pitch to a jury made of experts who would select winners across three categories.
“In December, we will have 100 businesses to celebrate in Africa. In past edition, we had  only six winners who were invited to Paris but this year, we will have 100 winners who will be going to selected location where they will be celebrated”, she said.
Adewole stated that Africa was special to TotalEnergies, hence the focus.
In her words, “Africa is special to us. When you look at Africa, our youths make up 60%.  They are the ones who will develop he continent, so we streamlined this to them to help them develop their businesses or ideas, scale up and become the business leaders of tomorrow.
“The aim of this 4th edition is to support and encourage young African entrepreneurs to innovate and bring their projects to reality in their country of application”.
Explaining further, the Country Communications Manager, TotalEnergies Nigeria, Dr Charles Ebereonwu, said “we have not attained 100 years before.
“Apart from celebrating 100 years, we have introduced new dimensions like your empowerment of women and equality. All entries will be subjected to whether they take into consideration these dimensions”.
Targeted by the challenge are startups less than three years old or pioneering a business idea with a positive impact on their communities and/or the planet.
“The aim of this 4th edition is to support and encourage young African entrepreneurs to innovate and bring their projects to reality in their country of application”, a statement from the firm said.

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TCN Targets Power Restoration To North-East, May 27

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The Transmission Company of Nigeria (TCN) has said electricity supply will be fully restored to the North-East by May 27.
TCN’s spokesperson, Ndidi Mbah, who disclosed this in a statement made available to newsmen, weekend, said the commission’s contractors were working to erect four new transmission towers along the Jos-Gombe axis, to enable the restoration of power supply to States in the North-East region of the country.
Recall that TCN had on April 23, said four of its towers along the Jos–Gombe 330 kilo volt (kV) transmission line were vandalised, affecting electricity supply to Gombe, Damaturu, Maiduguri, Yola, Bauchi, and Jalingo.
“The tower collapse affected Gombe, Damaturu, Maiduguri, Yola, Bauchi and Jalingo. Immediately after the incident, however, TCN engineers worked first to redistribute available bulk supply on the Jos, Bauchi, Gombe 132kV line between Jos and Yola Discos, while work commenced immediately at reconstructing the four vandalised towers”, the commission said.
It continued that “Presently, we are rebuilding the four towers simultaneously. Progress is evident, with one tower nearing 80% completion, another at 60%, a third at 30%, and dismantling work finished on the fourth tower”.
Additionally, she said, “tower members” are being fabricated and assembled on-site to expedite work, adding that TCN is dedicated to the quick restoration of bulk power on the line route.
“Construction work on the Jos – Gombe transmission line, taking supply up to Damaturu and environs will be completed and energized by the 20th of May, 2024, while the Damaturu – Maiduguri axis will be completed on the 27th of May, 2024.
“Expectedly, bulk power transmission would be fully restored on the affected 330kV transmission line by the 27th of May. Yola and Jos DisCos would also be able to offtake and distribute optimally from TCN substations.
“For now, only 38MW is wheeled to both Jos and Yola Distribution companies, with each receiving 19MW each. Efforts to take some of the available power to Jalingo was hampered by very high voltage on the line, which could cause a system disturbance”.
According to the spokesperson, TCN is aware of the inconveniences caused by the current insufficient power supply through Yola and Jos DisCos to electricity customers in the affected states.
Mbah further said the company pledged to earnestly expedite work on the towers to guarantee that the towers are completed within the specified time frame.

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