Marathon Oil signs agreement to process third party volumes through existing Equatorial Guinea infrastructure

News, Petroleum Products
Marathon Oil signs agreement to process third party volumes through existing Equatorial Guinea infrastructure

| by: Bob Koigi |

Marathon Oil Corporation has executed a Heads of Agreement with the Government of the Republic of Equatorial Guinea and necessary third parties establishing the framework for processing third-party natural gas volumes through the Alba Plant LLC’s liquefied petroleum gas (LPG) processing plant and EG LNG’s liquefied natural gas (LNG) production facility, both located in Punta Europa, EG. Marathon Oil, through its wholly owned subsidiaries, is the majority shareholder in both Alba Plant LLC and EG LNG.

With the Punta Europa facilities becoming a hub for the potential development of local and regional natural gas, the project will sustain the operating rates of the Alba Gas Plant and prolong the life of the EG LNG plant, both of which are proven integrated gas assets with high reliability and low capital demands.

The existing processing facilities require only minor modifications to accommodate the third-party gas. New volumes from the third party are anticipated early in the next decade.

The Punta Europa parties include Alba Plant LLC, Alba Unit and Equatorial Guinea LNG Train 1, S.A. (EGLNG). The interest holders in Alba Plant LLC include Marathon Oil, Samedan of North Africa, LLC (a subsidiary of Noble Energy Inc.) and Sociedad Nacional de Gas de Guinea Ecuatorial (Sonagas G.E. S.A.).

The interest holders in Alba Unit are Marathon Oil, Samedan and Compania Nacional de Petroleos de Guinea Ecuatorial (GEPetrol). The shareholders of EG LNG’s holding company include Marathon Oil, Sonagas, Mitsui & Co. Ltd. and Marubeni Gas Development UK Limited.

www.marathonoil.com

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Latin America’s Renewable Energy Revolution

News, Petroleum Products, Power

Latin America’s Renewable Energy Revolution

For centuries Latin America’s natural resources have helped move the world economy. From the silver galleons that financed the Spanish Empire to the iron and copper exports that are rebuilding China, Latin America’s natural resources have long been sold around the globe. But now the growth of renewable energy across the region is creating a new economic phenomenon – exploiting those natural resources for domestic growth.

In recent years Latin America has made huge strides in exploiting its incredible wind, solar, geothermal and biofuel energy resources. It is now on the cusp of an energy revolution that will reshape the region and create a host of business opportunities. To investigate the changes taking place Canning House helped to organise the recent Green Finance Summit in London and commissioned a Canning Paper from Latin News.

Read also: The renegade Fulani and the Nigerian Homeland Security

Oil addiction

At the moment Latin America is still very dependent on another one of its natural resources – oil. According to the BP’s Statistical Review, Latin America accounts for more than 20% of the world’s oil reserves, making it the second-most important oil region in the world, which, is probably why it relies so heavily on the stuff. Oil accounted for 46% of the region’s total primary energy supply (TPES) in 2013, well above the global average of 31%.

When it comes to transport, oil-based fuel is likely to keep its pole position for some time to come. Electric cars and hybrids have been slow to make an impact globally, and in Latin America they are barely present. Brazil has made impressive strides with ethanol alternatives, but oil and its derivatives remain the number one choice. Moreover, Latin America’s outdated transport fleet, which is heavily made up of cast offs from the US or older models produced locally, is going to remain behind the curve on any transition to electric vehicles for at least the medium term.

Powering up

But Latin America’s electricity sector has already begun to wean itself off its oil dependence. According to the Inter-American Bank, Latin America is expected to almost double its electricity output between 2015 and 2040 and will need an extra 1,500 terawatt hours (TWh) of power. That’s a huge amount – enough to power the entire UK’s electricity grid for five years. Practically none of Latin America’s new large-scale power plants will be oil-fuelled, which opens up the field for different technologies.

Countries in Central American and the Caribbean, whom traditionally imported oil, were the first to move away from oil-based power plants, after suffering a decade of high and volatile prices at the start of the century. In some cases, such as the Dominican Republic, that meant a switch to coal, which represents 5% of Latin America and the Caribbean’s TPES. However, growing environmental objections mean that new coal plants are unlikely to be adopted by many Latin American countries in the future

Disclaimer

No responsibility for loss occasioned to any person or corporate body acting or refraining to act as a result of reading material in this publication can be accepted by the publisher, sponsor or author. The author may have a position in any or all of the specific investments or investment categories mentioned in this publication. © LatAm INVESTOR Ltd. All rights reserved.

Oil dips as U.S. drilling tempers otherwise bullish sentiment

International Finance, international News, News, Oil, Petroleum Products
Reuters.
© Reuters. FILE PHOTO: Illustration photo of crude oil being dispensed into a bottle© Reuters. FILE PHOTO: Illustration photo of crude oil being dispensed into a bottle

By Henning Gloystein

SINGAPORE (Reuters) – Oil prices dipped on Monday as a rising U.S. rig count implied further increases in output, marking one of the few factors tamping back crude in an otherwise bullish environment.

Brent crude futures were at $73.91 per barrel at 0630 GMT, down 15 cents, or 0.2 percent from their last close.

U.S. West Texas Intermediate (WTI) crude futures were down 18 cents, or 0.3 percent, at $68.22 a barrel.

“We expect for oil prices to recede slightly today as market anticipates on the prospect of rising production in the U.S.,” Singapore-based Phillip Futures said on Monday.

U.S. drillers added five rigs drilling for new production in the week ended April 20, bringing the total to 820, the highest since March 2015, according Baker Hughes energy services firm.

The rising rig numbers point to further increases in U.S. crude production, which is already up by a quarter since mid-2016 to a record 10.54 million barrels per day (bpd).

Only Russia produces more, at almost 11 million bpd.

Despite slipping on Monday, overall the oil market remains well supported, especially by strong demand in Asia.

Brent is up by 20 percent from its 2018 low in February.

Prices are also being supported by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) that were introduced in 2017 to prop up the market.

“Added price pressure comes from U.S. sanctions against the key oil exporting nations of Venezuela, Russia and Iran,” said J.P. Morgan Asset Management Global Market Strategist Kerry Craig. He was referring to action the U.S. government has taken on Russian companies and individuals, as well as on potential new measures against struggling Venezuela and especially OPEC-member Iran.

“Stay long oil,” J.P. Morgan said in a separate note.

The United States has until May 12 to decide whether it will leave the Iran nuclear deal and instead impose new sanctions against Tehran, including potentially on its oil exports, which would further tighten global supplies.

The U.S. trade action against Russia and, potentially, against Iran has resulted in a slump in Russia’s ruble and Iran’s rial.

This means costs for any imported goods become more expensive for its citizens or companies, but it has also pushed up the value of Russia’s and Iran’s oil sales as all of their production costs are in the local currencies, while foreign sales are largely made in the U.S. dollar.

The generally elevated oil prices have also sparked a spat between U.S. President Donald Trump and producer cartel OPEC.

Trump on Friday accused OPEC of “artificially” boosting oil prices, threatening on Twitter that this “will not be accepted”, drawing rebukes from several of the world’s top oil exporters within OPEC.

 

Nigeria’s oil production Dips again; Lowest Production recorded in six months

2019 Elections, Africa, economy, Oil, Petroleum Products, PMB, War, World Bank

Nigeria’s oil production dropped by more than 82,000 barrels per day (bpd) to 2.022 million b/d in March 2018 — compared to the output in the preceding month, according to estimates released by the ministry of petroleum resources.

The ministry figures showed that oil production, including condensates, averaged 2,022,716 bpd in March, down from a high of 2,105,656 bpd in February. It was the lowest oil production by the country in the last six months.

The ministry provided no reason for the decline.

Sabotage attacks on oil production and exports facilities had seen Nigeria not able to produce up to its maximum capacity of around 3.2 million bpd. In 2016, oil production dropped significantly to 1.4 million bpd, and the Nigerian economy slipped into recession.

On Monday, Shell said operations at Forcados terminal, one of Nigeria’s main oil export routes, were ramping up after a momentary shutdown at the Trans Forcados Pipeline (TFP).

Forcados terminal exports an average of 262,000 bpd, according to loading schedule.

The terminal experienced low injection of crude around March 27, following a shutdown of the TFP, a Shell Petroleum Development Company (SPDC) spokesman told TheCable Petrobarometer.

According to the Nigerian National Petroleum Corporation (NNPC), about 300,000 bpd of oil were shut in at Forcados terminal alone in 2016, following the declaration of the force majeure that year.

Nigerians paid less for petrol, kerosene, diesel in March – NBS

local news, Oil, Petroleum Products

NIPCOThe average price paid by consumers for petrol, diesel, and kerosene decreased in March compared to February, the National Bureau of Statistics has said

The bureau released separate reports on Wednesday on each of the fuel products.

The average price for petrol, per litre, decreased by 5.3 per cent from N172.5 in February to N163.4 in March.

The average price recorded for March 2018, however, increased by 9.6 per cent when compared to the N149.4 in March 2017

Although the official price for the sale of petrol in Nigeria is N145, the report shows that petrol is sold at higher prices in almost all Nigeria’s 36 states and Abuja.

In fact, only Abuja had petrol selling at the average price of N145 per litre.

Apart from Abuja, the states with the lowest average prices per litre were Bauchi (N145.6) and Kaduna (N147.3).

The states with the highest average prices of petrol per litre for March include Taraba (N184.4), Jigawa (N180.9) and Ekiti (N173.9).

For diesel, the average price decreased by 1.65 per cent from N209.9 in February to N206.4 in March.

The average price also decreased by 12 per cent when compared to the N234.5 recorded as the average price of diesel for March 2017.

Taraba, Sokoto and Kebbi States had the highest average prices of diesel per litre, at N254.2, N249.2, and N230.8 respectively for March 2018.

The states with the lowest average prices per litre for March 2018 were Delta (N189.6), Bayelsa (N187.5) and Abia (N185.8).

For kerosene, the average price per litre across states was N268.9.

The average price was a 6.8 per cent decrease from the N288.6 recorded for February 2018 and a 13.6 per cent decrease from the N311.6 recorded for March 2017.

States with the highest average prices of kerosene per litre were Nasarawa at N305, Yobe at N300.7 and Cross Rivers at N300.6

Abia, Delta and Borno States had the lowest average prices per litre of kerosene at N229.3, N227.7 and N225.1 respectively for March 2018.NIPCO.jpg

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