Page 7 - FSUOGM Week 29

FSUOGM NEWSBASE’S ROUNDUP GLOBAL (NRG) FSUOGM

NRG: A global mixed bag

The global pandemic is beginning to sort the weak from the strong,

with some oil and gas projects receiving continued support despite

the downturn, while others are being labelled “wait and see”

GLOBAL WELCOME the latest edition of NewsBase’s In Mozambique, Total has revealed details of
Roundup Global (NRG), in which our team of a financing agreement that will allow it to cover
international editors provide you with a snap- around three quarters of the cost of an ambitious
shot of some of key issues affecting their regional LNG scheme. On July 17, the French major said
beats. Get the NRG Oil & Gas Editor’s Picks to it had signed an agreement with 19 commer-
your inbox every week for free. Just sign up here. cial banks and eight export credit agencies for
Countries continue to struggle to adapt to the $14.9bn in loans for the Mozambique LNG con-
coronavirus (COVID-19) pandemic, leading to sortium. The Total-led group has put the cost of
sporadic lockdowns around the world. Govern- developing Offshore Area 1 and building a gas
ments are trying to revive economic output even liquefaction plant capable of turning out more
as they enforce social distancing measures that than 12mn tonnes per year (tpy) of LNG.
hamstring recovery efforts. In Uganda, the Electricity Regulatory
That situational diversity is to an extent being Authority (ERA) has quantified the effect of
reflected in the global upstream, with some fluctuations in crude oil markets on the power
producing countries reporting falling produc- generating sector. The state agency said last week
tion while some OPEC+ members look to take that the decline in oil prices since the beginning
advantage of an easing in quota restrictions. of 2020 would allow it to keep electricity tariffs
The downturn has provided some investment unchanged in the third quarter of the year.
opportunities, with Noble Energy agreeing to a In Kenya, the Energy and Petroleum Reg-
multi-billion-dollar acquisition offer from Chev- ulatory Authority (EPRA) has hiked the price
ron and Royal Dutch Shell arranging a financing of gasoline and diesel, in line with a rise in the
deal to allow the Mozambique LNG to go ahead. average landed cost of gasoline. The increase has
Others, however, are focusing on improved led some observers to raise concerns about the
operational efficiencies and reduced spending possibility that unscrupulous traders may mix
as they seek to wait out the oil market volatility. kerosene into diesel in order to bring their costs
down.
Africa: A look at East Africa Elsewhere in Africa, the Nigeria LNG
This week’s AfrOil takes a close look at develop- (NLNG) consortium has denied allegations
ments in several East African countries. of corruption. According to an investigation

Week 29 22•July•2020 www. NEWSBASE .com P7