The Buzz: This Week In Africa
Brent Crude is trading at $61.16, WTI at $52.23 and natural gas at $3.05 per million BTU (at 15:55 in South Africa). Here are AOPs top news stories from the last seven days.
Angola has been dominating oil and gas headlines this week, and is making progress in attracting interest into its oil and gas sector with legislative reforms and the restructuring of its national oil company, Sonangol.
Angola sets sights on training and education to bolster oil and gas sector
In a bid to revive its oil and gas sector, Angola is focusing its attention on education and training to address production decline, lower oil prices and job losses the country has suffered since 2014’s oil crisis, which has had a dire impact on its economy.
Angola plans to incorporate a national skilled workforce into new oil projects between 2019 to 2023 to bolster industry growth, attract investment and save its ailing GDP, which is expected to return to expansion in 2019.
Angola: Sapura Energy secures $182m drilling contract
Sapura Energy Berhad (Sapura) has been awarded a $182 million contract for drilling works in Angola over the next two years.
The contract was awarded to the Malaysian company by Cabinda Gulf Oil Company – a subsidiary of Chevron Corporation – for the provision of a semi-submersible tender assisted drilling rig.
The contract is expected to commence in Q2 of 2020.
Sonangol FY profit sees 107% surge
Angola’s state-owned national oil company Sonangol has reported a net profit of $164 million for the year ended December 28, 2017; a 107 percent increase year-on-year.
The result of a successful OPEC strategy gave rise to a 19 percent increase in exported oil prices, contributing to the company’s profit surge, CEO Carlos Saturnino said in the company’s financial report, which was released at the end of last year.
Ivory Coast’s SIR Oil Refinery receives $660 million dollar loan from AFC
The development finance institution Africa Finance Corporation has closed a $660 million debt financing loan for Société Ivoirienne de Raffinage of Côte d’Ivoire (SIR), the largest in French-speaking oil refinery in West Africa.
The facility comprises a tranche with a 9-year maturity and a West African CFA franc tranche with a 7-year maturity and will provide a long-tenured facility and reduce the interest rate of SIR’s stock of debt.
C’ote d’ivoir’s Rural Electrification Program Steps Up
Cote d’Ivoire officially connected 60 villages to the 275 MW hydroelectric plant in Soubre in December, and expects to connect a further 190 villages this year.
Supported by the African Development Bank (AfDB), the electrification program – which aims to strengthen the production and supply of electricity networks across the country – will provide a stable supply of electricity to 252 villages in the Montagnes district.
Eskom Says Coal Have Improved
South African power utility Eskom says coal stocks have improved at a number of its power stations, as it carried out maintenance over the festive season.
However, the risk of rolling blackouts remains as the country’s power grid is still constrained.
“Eskom continues to have coal shortages, but there is an improvement in terms of where they are,” Eskom spokesperson Khulu Phasiwe, told fin24 on Thursday.
Libya Plans to Increase Oil Output to 2.1 million barrels per day
Libya plans to increase oil production to 2.1 million barrels per day (bpd) by 2021, which will more than double its current production output.
Chairman of the state-owned oil company, the National Oil Corporation (NOC), Mustafa Sanallah has stressed, however, that this can only be achieved if security is improved throughout the country’s oilfields.
Eiffage Energia Begins Construction on 158MW Wind Farm
French energy company, Eiffage Energia on Thursday announced that construction has begun on a 158.7MW wind farm located northwest of Dakar, approximately 70km in the Tivaouane Region of Senegal.
The project will be executed in a single phase consisting of 46 pieces of V126 wind turbines with a capacity of 3.45MW each. Construction is estimated to take 18 months.