The Nigerian National Petroleum Corporation (NNPC), Total Upstream Nigeria Limited (TUPNI) and her partners have concluded plans to move the Egina Floating, Production, Storage and Offloading unit (FPSO) to site in December 2018 upon completion of the currently ongoing integration. TUPNI discovered the Egina field in 2003 within the Oil Mining Licence 130 (OML130) 200 km south of Port Harcourt, Nigeria. The field is being developed by TUPNI in partnership with NNPC, CNOOC, SAPETRO and PETROBRAS. It will add 200,000 barrels per day (bpd) to Nigeria’s oil production (approximately 10 percent of the country’s total oil production). Egina is the largest investment project currently ongoing in the Nigerian oil and gas sector. The project is expected to be completed in Q4 2018 within the initial budget of $16 Billion.
The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, has tasked the Board and Management of the Nigerian Liquefied Natural Gas (NLNG) Limited to expand the production volumes of the Train 7 beyond its limits to catch up with other countries, secure a significant share in the global LNG market and help with domestic supply of LNG. Kachikwu stated this during his visit to the NLNG Plant on Bonny Island, Rivers to assess the company’s state of preparedness for the construction of a new train that will lift the country’s LNG output by 35 percent from 22 Million Tonnes Per Annum (MTPA) to 30 MTPA. NLNG will be seeking funding in the financial market for the Engineering, Procurement and Construction (EPC) of Train 7 and investment in the upstream gas sector in Nigeria that will ensure the sustainability of feed gas supply to its existing trains (Trains 1 to 6) and the new train. NLNG is owned by four Shareholders namely, the Federal Government of Nigeria, represented by NNPC (49 percent), Shell Gas B.V. (25.6 percent), Total Gaz Electricite Holdings France (15 percent) and Eni International N.A. N. V. S.àr. l (10.4 percent).
On Wednesday August, 8 British independent oil and gas company, Savannah Petroleum announced the signing of a legally binding Memorandum of Understanding (MOU) between Savannah’s Niger subsidiary (Savannah Niger) and the Republic of Niger.
The MOU affirms both Parties’ commitment to the realisation of a proposed Early Production Scheme (EPS) utilising crude oil resources associated with Savannah’s recent discoveries in the R3 portion of the R3/R4 Production Sharing Contract area in the Agadem Rift Basin (ARB) of South East Niger. It further binds both parties to work together towards the realisation of the EPS and contains specific provisions relating to the actions each Party undertakes to conduct as well as setting out the key timelines associated with the project. The EPS is intended to be domestic-focused, with oil produced from Savannah Niger’s R3 area discoveries is expected to be sold at the Société de Raffinage de Zinder (SORAZ) refinery, which is connected to the ARB via the third party owned 463km Agadem-Zinder crude oil transportation pipeline.
On Thursday August, 9 oil prices settled lower on worries the escalating U.S.-China trade war may upset global crude demand. The New York Mercantile Exchange crude futures for September delivery fell 13 cents at $66.81 a barrel, while Brent fell 0.19 percent to trade at $72.16 barrel. The U.S. Energy Information Administration (EIA) weekly report showed a fall in crude inventories by 1.351 million barrels for the week ending August 3, compared to an expected decline of 2.8 million barrels. The smaller-than-expected draw in crude supplies came as imports rose by about 2.64 million bpd and exports rose by 5.40 million bpd.
In the past few months, oil prices have increased as demand for oil surpasses supply but trade tensions have weighed on the markets. The U.S. re-imposed sanctions on Iran and the first round of the sanctions was effective as of Tuesday August, 7. A second round is expected in early November which is expected to hit the country’s energy infrastructure and oil exports, increasing the potential of a global energy supply shortage. Also, investors continued to fret about the impact of a trade war between the U.S. and China ahead of Chinese tariffs on U.S. goods, which comes into effect August 23, therefore, threatening the demand for oil-derived fuels. The Chinese Ministry of Commerce slapped a 25 percent tariff on an additional $16 billion worth of U.S. products, however, the ministry removed U.S. crude from the list of goods subject to the levy but included oil products.