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The Nigerian National Petroleum Corporation (NNPC) has issued award letters for contracts to exchange crude oil for imported fuel. A total of 15 groupings, with at least 34 companies in total received award letters. On May 2, 2019, NNPC announced that 132 firms had submitted bids for the 2019 Direct Sale of crude oil and Direct Purchase of petroleum products scheme (DSDP).
The corporation said it had saved $2.2 billion through the scheme since its inception. The winning groups include: BP/Aym Shafa, Vitol/Varo, Trafigura/AA Rano, MRS, Oando/Cepsa, Bono/Akleen/Amazon/Eterna, Eyrie/Masters/Cassiva/Asean Group, Mercuria/Barbedos/Petrogas/Rainoil, UTM/Levene/Matrix/Petra Atlantic, TOTSA, Duke Oil, Sahara, Gunvor/Maikifi, Litasco /Brittania-U, Mocoh/Mocoh Nigeria.
The NNPC stated it will supply 10 percent of its crude oil export to India to help resolve a growing energy crisis in the country. The Group Managing Director of the NNPC, Alhaji Mele Kyari, said Nigeria will continue to support India’s energy security challenge in whatever way it can.
Also, the recent Memorandum of Understanding in energy security between Nigeria and India would further strengthen the bilateral relations between the two countries. Hence, NNPC will ensure the current volume of crude oil supply from Nigeria to India is secured for the collective interest of both countries. The NNPC GMD said there were lots of untapped investment opportunities in the country’s Liquefied Petroleum Gas (LPG) sector.
He expressed NNPC’s willingness to aggressively develop and improve LPG infrastructure and consumption in the country. The Indian High Commissioner Mr. Abhay Thakur thanked the NNPC’s management for the recent renewal of the crude oil lifting term contracts for three Indian companies that participated in the bid exercise.
Mr. Abhay demanded increased allocation in the crude oil supply from Nigeria given the increasing energy needs of India.
He disclosed that India was ready to provide credit lines and expertise to help the NNPC revamp its massive oil infrastructure across the country. Mr. Abhay said: “India is prepared to offer Nigeria, particularly the NNPC, a credit line mechanism to help her in the areas of refinery maintenance, construction, security, surveillance and anything possible.
Our expertise in Information Technology (IT) is available as well. We are ready to cooperate with NNPC to boost our bilateral relations.”
Aker Energy A.S. (Aker Energy) has secured $100 million to invest in crude oil and natural gas production from Ghana’s Deepwater Tano Cape Three Points (DWTCTP) block. The block, offshore Cape Three Points in the Western Region, contains multiple oil fields and the lender, the Africa Finance Corporation (AFC), a leading infrastructure solutions provider in Africa, has pledged its readiness to “participate in follow-on fundraising activities”.
The Asset is owned by joint venture partners, including Aker Energy (50 percent), Lukoil (38 percent), Fueltrade (2 percent) and a 10 percent carry for the Ghana National Petroleum Corporation (GNPC), wholly owned by the Government of Ghana. The Pecan field, which is the most appraised in the DWTCTP block and the field to be developed in the first phase, is an oil field estimated to contain reserves of about 334 MMboe.
The AFC already has a wide range of portfolios in Ghana in the financial and the energy sectors. This investment also marks the beginning of AFC and Aker’s mutually beneficial relationship in the exploration and production sector across the African continent; AFC will offer support to Aker, open new opportunities, and mitigate potential geopolitical risks.
Aker, with its proven track record of delivering complex deep-water projects on time and budget, and a network of affiliates, such as Aker Solutions, a leading subsea equipment and services provider, is an ideal partner for AFC, as it seeks to broaden its partnerships with developers within the natural resources sector.
On Thursday 18th July, oil prices extended gains after Iran said it had seized a foreign tanker in the Persian Gulf, pushing geopolitical premiums higher after a brief lull. The U.S. West Texas Intermediate crude futures rose 30 cents to $57.08 a barrel at 8:13 AM ET (12:13 GMT), while Brent crude futures gained 48 cents at $64.14.
The U.S. Energy Information Administration (EIA) weekly report for the week ending July 12th showed that crude inventories were down by 3.1 million barrels against a forecast of 4.2 million barrels.
Oil prices have been under pressure this week after Hurricane Barry caused less damage than expected to the Gulf of Mexico, suggesting that its impact on production will be short-lived. Oil rigs began preparations to restart production.
Meaning they’ll be able to contribute again relatively soon to a U.S. market that is already amply supplied. Also, oil prices were under pressure earlier this week following reports that the U.S. and Iran might begin talks soon, easing tension in the Middle East. However, Iran later denied the reports.