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INVESTMENT
Scirocco Energy provides

update on Ruvuma
divestment

Scirocco Energy has provided an update on the
divestment of the Ruvuma asset, where Scirocco
has entered into an agreement to sell its 25%
interest to ARA Petroleum Tanzania (APT).
The Tanzanian Fair Competition Commis-
sion (FCC) has now granted its unconditional
approval for the transaction and issued the Com-
pany with the Merger Clearance Certificate. The
issuance of the certificate is an important step
towards completion of the asset divestment.
The Company continues to engage with
stakeholders across the Tanzanian government
agencies whose approval is required as part of the
completion process. The Board now considers it
more likely that completion will be achieved in
Q1 2023 rather than December 2022 as previ-
ously guided, due to likely disruption around the
upcoming festive period.
The Company remains in discussions with all
stakeholder groups and will continue to provide
updates to the market accordingly.
Tom Reynolds, Scirocco’s CEO commented: Many analysts and OPEC ministers have said Following Sunday’s decision, the policy has
“We are pleased to report this positive develop- the price cap is confusing and probably ineffi- remained unchanged; OPEC’s ministers will
ment today as we progress towards the comple- cient, as Moscow has been selling most of its oil next meet on February 1 for a monitoring com-
tion of the divestment of Scirocco’s interest in to countries like China and India, which have mittee while a full meeting is scheduled for June
Ruvuma to APT. We continue to work closely refused to condemn the war in Ukraine. 3-4.
with Tanzanian authorities and counterparties Then, at their latest meeting – on December bna/IntelliNews, December 7 2022
and look forward to completing the transaction 4 – OPEC+ agreed to stick to its oil output targets
in Q1 2023.” as the oil markets struggle to assess the impact of
Scirocco Energy, December 6 2022 a slowing Chinese economy on demand and the POLICY
G7 price cap on Russian oil on supply.
OPEC+ had angered the United States and Nigerian content level
PERFORMANCE other Western nations in October when it agreed
to cut output by 2mn barrels per day (bpd), about hits 54% in 2022
Russian oil cap 2% of world demand, from November until the Mid-way into a 10-year Strategic Road Map for
end of 2023. There were accusations from Wash-
imposed, but OPEC+ ington that the group and, specifically, one of its enhanced indigenous participation and utili-
leaders, Saudi Arabia, was siding with Russia in sation of local assets in oil and gas operations,
sticks to its policy spite of Moscow’s war in Ukraine. industry regulator Nigerian Content Develop-
OPEC+ argued it had cut output because ment and Monitoring Board (NCDMB) has
Last week, the focus was on falls in OPEC oil of a weaker economic outlook. Oil prices have recorded a 54% Nigerian content level in 2022.
output following the steps taken by the cartel declined since October due to slower Chinese Presenting a status report at the 11th Practical
to meet pledged cuts throughout the market. A and global growth and higher interest rates, Nigerian Content Workshop organised by the
week later, the situation is not materially differ- prompting speculation the group could cut out- Board and DMG Nigeria Events at Uyo, Akwa
ent but there have been subtle variations. put again. Ibom State, the Executive Secretary NCDMB,
This week’s developments include the Group OPEC+’s decisions are based on oil market Simbi Kesiye Wabote explained that the average
of Seven (G7) nations setting a price cap on data and ensure the market’s stability, Kuwait’s of Nigerian Content performance in the last five
Russian oil. The G7 nations and Australia oil ministry said in a statement on state news years is 44%, which represents the period the
agreed a $60 per barrel price cap on Russian sea- agency KUNA, following a meeting where the 10-year Nigerian Content Strategic Roadmap
borne crude oil in a move to deprive President group decided to continue its existing policy. The has been implemented so far.
Vladimir Putin of revenue while still keeping impact of slow global economic growth, soaring He indicated that the performance in 2022
Russian oil flowing to global markets. Moscow inflation and high interest rates on oil demand above is well above the 42% target set by the Pro-
said it would not sell its oil under the cap and was are a cause for “continuous caution,” Oil Minister ject Management Office (PMO), just like in 2021
analysing how to respond. Bader al Mulla said. when 42% was achieved, above the target of 38%.

P16 www. NEWSBASE .com Week 49 08•December•2022