Page 15 - AsianOil Week 41

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Rahul Dhir, the CEO of Tullow, called this Operations will start in two to three years,
development “a significant moment” for his and the refinery will handle 40,000 bpd of
company, which has experienced difficulties in locally produced crude from fields in the oil-rich
other parts of Africa over the last 12 months. Upper Nile region. Trinity may eventually raise
Also in Ghana, Cenpower Generation Co. the plant’s capacity to 200,000 bpd, a move that
(CGC), the operator of the Kpone Independent would put it in a position to supply customers
Power Plant (KIPP) near Accra, has agreed to across East Africa.
switch from light crude oil to natural gas as its main
fuel. The company will receive the gas from Ghana If you’d like to read more about the key events shaping
National Petroleum Corp. (GNPC). the downstream sector of Africa and the Middle East,
then please click here for NewsBase’s DMEA Monitor.
If you’d like to read more about the key events shaping
Africa’s oil and gas sector then please click here for Europe: EU eyes tougher emissions targets
NewsBase’s AfrOil Monitor. Members of the European Parliament on Octo-
ber 6 voted strongly in favour of adopting a
DMEA: Nigeria extends oil-for-fuels scheme legally binding target for the EU to curb green-
Nigerian National Petroleum Corp. (NNPC) will house gas (GHG) emissions by 60% by 2030
continue its crude oil-for-products swap pro- against 1990 levels, above the previous 40% goal.
gramme until 2023, the state-owned company’s Lawmakers thus went further than the European
managing director Mele Kyari told a conference Commission’s proposal, which was to revise the
on October 6. target to 55%.
Speaking at a conference, Kyari said that an Parliament must now agree the final law with
agreement with 15 trading companies and refin- the EU’s 27 member states. Wealthier states such
ers on gasoline supplies in exchange for crude as France and Germany, which have significant
oil had been extended for six more months until clean energy capacities, are likely to support the
the end of March.The swap deal will continue deeper cuts. However, coal-reliant countries
until Nigeria’s refining industry is ready to meet like Poland and the Czech Republic are likely to
domestic demand in three years, he said. resist, amid concerns about the economic fallout.
The country, Africa’s biggest oil producer, Rather than undermining the drive towards
relies heavily on fuel imports, as its main domes- decarbonisation, the coronavirus (COVID-
tic refineries are in disrepair and have been 19) crisis has led the EU to step up its efforts
closed down. to become cleaner. Last month, the European
Meanwhile, Nigeria’s Dangote conglomerate Parliament also backed the inclusion of pollu-
plans to bring on stream a new 650,000 barrel tion from shipping in the EU emissions trading
per day (bpd) refinery in Lekki in 2021-2022, but system. This is another proposal that could face
there is a risk of delays. Once the plant is online, opposition from some less affluent member
though, Nigeria expects to have spare fuel for states, though.
export. Meanwhile, NNPC wants to modernise Meanwhile, Denmark’s latest offshore licens-
its four existing plants by attracting international ing round remains in limbo over climate con-
investment. Under current circumstances, this cerns. The government has called on political
search could take some time. parties to discuss the future of oil and gas explo-
Over in South Sudan, independent fuel sup- ration and decide whether the contest should
plier Trinity Energy has entered into talks with go ahead. The round was launched last year and
financiers and contractors to build a $500mn attracted offers from France’s Total, Sweden’s
oil refinery at Paloich, according to the compa- Lundin Petroleum, Hungary’s MOL and Ardent
ny’s CEO Robert Mdeza. Trinity has engaged Oil of the UK. But all of these companies have
Chemex (US) to serve as the project’s manager, withdrawn their bids, save Ardent.
and preparatory work will be funded by the Afri- Lastly, Norway’s Equinor has announced
can Export-Import Bank, he said on October 6. delays and cost overruns at several key fields,

Week 41 15•October•2020 www. NEWSBASE .com P15