Market Report: President Buhari appoints new acting chairman for NNPC

The weekly Market Report is provided by Gladius Commodities of Lagos, Nigeria. Download the full report here. Learn more about Gladius Commodities at www.gladiuscommodities.com.

NIGERIA

The President Muhammadu Buhari has appointed Dr. Thomas John as the acting alternate chairman of the Governing Board of the Nigerian National Petroleum Corporation (NNPC), bringing to an end the tenure of the former Minister of State for Petroleum Resources, Dr. Ibe Kachikwu.

NNPC’s Group Managing Director, Dr. Maikanti Baru stated that the new board chairman would hold the position until the appointment of a new Minister or Minister of State for Petroleum Resources by the President.

Dr. Thomas John, a former Group Managing Director of the NNPC before the appointment was a member of the NNPC Governing Board. Last week, NNPC saw a series of changes in various management positions including the appointment of Alhaji Mele Kyari as the new Group Managing Director of the Nigerian State oil company (NNPC).

The oil and gas exploration and development company, LEKOIL, with a focus on Nigeria and West Africa has announced that the Company has finalized an updated Competent Person’s Report (CPR) detailing recoverable volumes expected within the Otakikpo Marginal Field (Otakikpo) in OML 11.

LEKOIL announced a significant upgrade to 2P oil reserves estimates and prospective resources (unrisked) for its Nigeria’s 40 percent participating interest in the field. The CPR focuses on the Company’s discovered conventional oil accumulations only. The Company expects to see the field’s significant gas resources reflected in a future update to the CPR.

GHANA

On Thursday 27th June, Tullow Oil Ghana announced the pushing back on the completion of drilling of the Enyenra-14 production well in Deepwater Tweneboa, Enyenra and Ntomme (TEN) field development following revision of 2019 projection figures for this offshore project. the company explained that: “The completion of the Enyenra-14 production well is taking longer than anticipated and consequently will be onstream later than planned. This delay has been reflected in a small revision to full-year guidance for TEN which has been adjusted to around 71,000 barrels of oil per day (bpd) gross, from 73,000 bpd.”

Although Tullow and its partners in the search and production of oil and gas in Ghana have experienced delays previously in their offshore drilling program, the unforeseen disruptive factors have not deterred the company from achieving satisfactory success in its subsequent TEN fields’ development phases.

Tullow further added that Maersk Venturer drillship, which has been working with the Stena Forth resulting especially in the drilling of four wells and completion of three others, will remain in Ghana to complete the delayed Enyenra-14 production well, a Jubilee producer and an Enyenra water-injector, before switching to drilling operations for the remainder of the year. Projections of Tullow’s performance in Ghana look quite good according to the company’s production figures.

GLOBAL

On Thursday 27th June, oil prices slid erasing some of Wednesday’s surge, ahead of a series of key meetings on the side-lines of this week’s G20 summit and a wider gathering of major oil producers beginning next Monday.

The U.S. West Texas Intermediate crude futures slumped 69 cents, or 1.2 percent, to $58.69 a barrel at 7:51 AM ET (11:51 GMT), while Brent traded down 75 cents, or 1.1 percent, at $64.94. The U.S. Energy Information Administration in its weekly report for the week ending 21st June showed that U.S. crude oil inventories fell by 12.8 million barrels exceeding the expected 2.5 million barrels drop.

The G20 gathering – and more specifically, the bilateral meeting between the U.S. and China is likely to provide more clarity about the path of global oil demand in the second half of the year, depending on how much or little progress the two sides make resolving their trade dispute.

Another key meeting on the side-lines of the G20 will take place between Russia and Saudi Arabia, where they will likely discuss whether and how to extend the current production cut agreement between OPEC and other producers, of which Russia is by far the largest. OPEC and its partners are due to review that deal on July 1-2.

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