The Buzz: This Week in Africa
At the beginning of this week Brent Crude is trading at $63.54 per barrel, WTI at $56.83 per barrel and natural gas at $3.16 per million BTU (beginning of day 13 November 2017). Here are AOP’s top five stories from the last seven days.
China to Fund Hydro Power Plant in Nigeria
A 3,050 MW hydroelectric power plant will move forward in the Taraba State of Nigeria after the government finalized a joint venture agreement with partners China Gezhouba Group Corporation, Sinohydro Corporation Ltd and CGOC Group Ltd.
The project is expected to cost $5.79 billion and take six years to complete. Funding is provided by the Nigerian government (15 percent) and the Export-Import Bank of China (85 percent), according to This Day.
Kenya To Increase Oil Revenue Share for Locals
In a bid to ease brewing conflict in the Turkana region, the Kenyan government has agreed to increase the share of oil revenues to be received by the local community to 10 percent in the oil-rich Turkana region and 20 percent to the local county government.
Additionally, Kenya’s oil pipeline to transport crude from Mombasa to Nairobi is expected to be commissioned by the end of 2017, according to Daily Nation.
The new pipeline is expected to ease congestion on state highways. A pipeline to be built from the oil fields in Turkana is still in the early stages, with the partners beginning work on environmental surveys and preliminary engineering. Tullow Oil plans to export its first crude by 2018 in a small-scale crude oil production plan by trucking 2,000 barrels of oil per day to the coast.
Nigeria’s Diamond Bank to Focus on Domestic Market
Diamond Bank, one of the leading banks in Nigeria, is making efforts to shore up its finances and plans to quit other West African markets to focus its activities in Nigeria.
Similar to other Nigerian banks, Diamond Bank faced financial upheaval after the 2014 oil price crash. Just before the crash, Nigerian banks bet big on the development of marginal fields by indigenous oil companies.
It is selling its operations in Benin, Togo, Cote d’Ivoire and Senegal to Manzi Finances S.A. for 61 million euros, according to Vanguard.
Kosmos To Resume Drilling in Ghana
Texas-based Kosmos energy announced it would resume development drilling at Ghana’s TEN deepwater oil and gas project in early 2018, following a ruling in favor of Ghana by the International Tribunal for the Law of the Sea in a boundary dispute with the Ivory Coast.
Mozambique Set to Approve Anadarko Gas Plan
In a key step to move forward the country’s first onshore LNG facility, Mozambique is expected to approved Anadarko’s development plan for its offshore gas field within the month, according to Reuters.
The plant, which is expected to cost $15 billion to develop and have a total capacity of 12 million tonnes per annum, should be operational by 2022 or 2023.