The Buzz: This Week in Africa
At the beginning of this week Brent Crude is trading at $48.72 per barrel, WTI at $46.29 per barrel and natural gas at $2.93 per million BTU (beginning of day 24 July 2017). Here are AOP’s top five stories from the last seven days.
Kuwait Grants $27m to Djibouti Geothermal Project
The Kuwait Development Fund has given a $27 million grant to fund the Gale-Le-Koma Geothermal Project being developed by the Djiboutian Geothermal Energy Development Office (ODDEG), according to ESI Africa. The 15 MW power plant is expected to be completed by 2021.
The grant will fund drilling of 10 wells and the power plant.
Russia Wants Nigeria, Libya to Join OPEC Deal
Russia has called on Nigeria and Libya to join the production cuts that the Organization for Petroleum Exporting Countries and several non-member states, including Russia, agreed on last year in an effort to stabilize global oil prices, according to the Financial times.
Nigeria and Libya were exempt from the initial deal brokered by OPEC, which cuts production by 1.8 million barrels per day, because of political and militant instability in the countries. The instability had already resulted in steep declines in the countries’ oil production. But recent months have seen both countries begin to recover former production figures, and critics worry the deal is losing effectiveness as crude oil prices remain below $50 per barrel.
Aminex Furthers Gas Development in Tanzania
UK-based Aminex plans to submit a development plan for it’s Ntorya onshore gas field in Tanzania within two months, according to Upstream Online. The company announced earlier this year that it had encountered a 51-meter gas-bearing reservoir which flowed at 2,833 boepd during the Ntorya-2 appraisal well tests.
The plans were submitted to the Tanzania Petroleum Development Corporation, with a decision on the development plan expected after a gas development study is completed.
African Petroleum Row with The Gambia Continues
UK-based African Petroleum expects feedback in early August from The Gambia over a dispute of the company’s A1 and A4 licenses. Gambian officials have argued the company’s rights to the blocks have expired.
African Petroleum, which admits to not meeting a drilling requirement, does not agree that the company has forfeited rights to the blocks. However, the company did let an agreement lapse in negotiations to sell oil licenses, according to Reuters.
AfDB Invests $21.7m in Tanzania Geothermal Fields
The Ngozi Geothermal project was given a boost this week after the African Development Bank Climte Investment Fund announced approval of $21.7 million in loans and grants to develop the steam field in Tanzania, according to ESI Africa.
Under the agreement, AfDB will loan $5 million and also provide $16.73 million in grants in order to further the eventual installation of 100MW geothermal power plant in the area.