The Minister of State for Petroleum Resources, H.E. Timipre Sylva announced that an
estimated volume of one billion barrels of crude oil has been discovered in the north-eastern part of Nigeria.
Minister Sylva also commented on the Petroleum Industry Bill stating that it will be sent
to the National Assembly in the coming week, to pass it into law by the end of the first
half of 2020. The bill has been reviewed under many administrations but has yet to be
passed since 2008.
Once passed, it is expected to bring certainty to the sector which as a result encourages
investment inflow. The bill, when signed into law, will deregulate and liberalize the
downstream petroleum sector, create efficient and effective regulatory agencies and
promote transparency and openness in the administration of the petroleum resources in
Nigeria Liquified Natural Gas Limited (NLNG) has signed an agreement with Galp
Trading SA for the supply of a million tons of LNG per year. This comes shortly after the
company inked deals with Eni as well as Total Gas and Power for a 10-year supply.
The deal with Galp Trading SA is also for 10 years delivered ex-ship basis from Trains
1, 2 and 3 of the NLNG production facility on Bonny Island.
Kosmos Energy and its partners have signed an LNG supply deal with BP Gas
Marketing for volumes from Phase 1 of the Greater Tortue Ahmeyim project. Under the
agreement with BP’s unit, the project would deliver up to 2.45 million tons of LNG per
annum over an initial term of up to 20 years.
Kosmos intends to book net proved reserves of approximately 100 million barrels of oil
equivalent associated with Phase 1, and additional reserves when further phases of the
Tortue project are sanctioned and Sale and Purchase Agreements signed for the offtake
The Greater Tortue Ahmeyim project will produce gas from an ultra-deepwater subsea
system and mid-water Floating Production, Storage and Offloading (FPSO) vessel,
which will process the gas, removing heavier hydrocarbon components. The gas will
then be transferred to a Floating Liquefied Natural Gas (FLNG) facility at a nearshore
The FLNG facility is designed to provide circa 2.5 million tons of LNG per annum on
average, with the total gas resources in the field estimated to be around 15 trillion cubic
feet, with first gas expected in 2022.
BP Gas Marketing has been selected as the sole buyer for the investor partners’ LNG
offtake for Tortue Phase 1.
Partners in the cross-border Greater Tortue Ahmeyim project located offshore
Mauritania and Senegal, include SMHPM, Petrosen, BP, and Kosmos.
On Thursday 13th February, oil prices edged higher bouncing after recent hefty losses,
despite the International Energy Agency (IEA) laying bare the extent of the damage to
global crude demand caused by the outbreak of the coronavirus in China.
The U.S. West Texas Intermediate (WTI) crude futures were 0.8% higher at $51.59 a
barrel at 10:10 AM ET (15:10 GMT), while Brent crude futures in were up 1% at $56.53
The U.S. Energy Information Administration in its weekly report showed a climb in crude
oil inventories by 7.5 million barrels for the week ending February 7, confounding
analysts’ expectations for a build of about 3 million barrels.
The oil market has posted five losing weeks in a row and has been predicted this week
will follow suit. However, the IEA said had global oil demand is now set to see its first
quarterly contraction in more than a decade, estimating a drop of 435,000 barrels a day
(bpd) during the first three months of 2020.
It had previously expected world fuel consumption to grow by 800,000 bpd compared
with 2019. The expected decline in demand prompted the agency to cut its 2020 growth
forecast by 365,000 bpd to 825,000 bpd, the lowest since 2011.
Further evidence of weakening consumption came from the U.S. reporting the biggest
weekly jump in crude stockpiles in three months. Analysts are watching the world’s
major producers to see if they can agree to limit production once more.
Technical experts from the Organization of Petroleum Exporting Countries and its allies
(OPEC+) recommended a further cut of 600,000 bpd in early February.
However, Russia, a key producer, has so far resisted the initiative, asking for time to
study the proposal.