The Buzz: This Week in Africa
At the beginning of the week, Brent Crude is trading at $65.06 per barrel, WTI at $61.71 natural gas at $2.72 per million BTU (at 11:53, 12 March 2018, South Africa). Here are AOP’s top five stories from the last seven days.
Sinopec and Chevron South Africa Deal Approved
The South African Competition Tribunal approved Sinopec’s $900 million deal to buy Chevron’s South Africa and Botswana assets subject to a number of employment, investment and other conditions.
As part of the deal, Sinopec has to invest $504 million over five years to develop a refinery in the Western Cape, buy a 75 percent share in Chevron’s South Africa subsidiary which runs lubrication plants, over 800 petrol stations and other oil storage facilities.
South Africa: 27 Renewable Energy Projects to be Signed
After a two-year delay in signing PPA’s, South Africa’s new Minister of Energy, Jeff Radebe has announced that project agreements for 27 renewable energy projects would be signed on March 13.
The renewable energy projects valued at R56 billion were initially procured in 2015, however the Power Purchase Agreements were left unsigned by Eskom by 2016.
As a means to reignite economic growth, Radebe insisted that the PPAs would be signed by Eskom as part of the action oriented mandate initiated by President Ramaphosa.
Eni sells Zohr field stake
Italian oil company, Eni has sold a 10 percent stake in Egypts Zohr gasfield to Mubadala for $934 million.
Since making the Zohr field discovery in 2015, Eni has sold stakes to BP and Rosneft. After the sale, Eni still owns majority with its 50 percent stake while BP holds 10 percent and Rosnet 30 percent.
The deal comes as part of Eni’s ‘dual exploration’ strategy which will allow the company to raise money to fund future projects.
Africa Oil Investment Deal Concluded
Last month, Africa Oil announced its investment in Impact Oil and Gas, under the agreement Africa Oil would acquire an equity interest in Impact Oil and Gas, which has exploration assets in South and West Africa.
The investment deal has since been concluded and Africa Oil now owns 25.2 percent equity interest in Impact Oil and Gas.
Oil Prices Rebound
In recent weeks oil markets have remained unpredictable and caused uncertainty about the future.
On Friday, oil prices rose to nearly $2 after a two-day decline. Brent Crude rose to $65. 49 a barrel, after starting the week at $64. 25. West Texas Intermediate rose to $62.04 a barrel, having started the week at $62.21.