The Buzz: This Week in Africa
At the beginning of the week, Brent Crude is trading at $76.31 per barrel, WTI at $65.68 and natural gas at $2.97 per million BTU (at 12:00, 4 June 2018, South Africa). Here are AOP’s top five stories from the last seven days.
Kenya makes first crude oil export
On Sunday, President Uhuru Kenyatta presided over Kenya’s first ever crude oil export shipment. Through the Early Oil Pilot Scheme (EOP) at the Turkana fields, the country hopes to export 2,000 barrels of oil per day.
President Kenyatta told the media, “this flag-off event and the anticipated implementation of the Early Oil Pilot Scheme marks the beginning of a long and fruitful journey”.
Zimbabwe: Parliamentary committee calls for cancellation of solar project
After three years of no progress on the Gwanda solar project, a parliamentary committee has called for the cancellation of the tender.
Since the signing, Intratrak has made no developments on the $200 million tender it was awarded for the engineering, procurement and construction of the 100MW solar power project.
“The money paid to Instratek should be recovered after investigations are completed and the award to Intratek needs to be rescinded in light of violations of the Company’s Act and the repealed Procurement Act,” said committee Chairperson Temba Mliswa to the National Assembly.
No nuclear deal between Russia and South Africa
In an interview with eNCA, South African Energy Minister Jeff Radebe confirmed that there is no nuclear deal between the country an Russia.
“The submission of that intergovernmental agreement of RussIa, US and South Korea was put to test in the High Court in South Africa where the court decided that the submission of those was unconstitutional and unlawful and we are back to square one…which has now been set aside by the court,” he told the local news channel.
The implementation of nuclear power in South Africa’s energy mix has been a topic of conversation following the signing of the 27 IPP’s.
Total reaches FID on offshore Angola project
French oil major Total announced that it reached final investment decision (FID) on its Zinia 2 deepwater project offshore Angola.
The $1.2 billion Zinia 2 deep offshore development in Block 17, will have a production capacity of 40,000 barrels per day and has nine wells with water depths that range from 1,968 to 3,937 feet.
The project is the first of a series of short-cycle developments in Block 17 and is Angola’s first project to reach FID in four years.
Schlumberger withdraws from Fortuna project JV
Amid financing delays, Schlumberger has withdrawn OneLNG, its joint venture with Golar LNG from the Ophir-operated Fortuna FLNG project.
The Fortuna project in Equatorial Guinea is intended to be Africa’s first deep-water floating LNG facility, however financing has not yet been obtained.
Ophir Energy said earlier this year that it was expecting to reach FID on the project by the end of 2018.