Page 5 - FSU OGM Week 26

FSUOGM NEWSBASE’S ROUNDUP GLOBAL (NRG) FSUOGM

NRG: Trying to adapt

World oil markets have found some support over the last week,

but companies are still adjusting to the new price environment

COMMENTARY WELCOME to the latest edition of NewsBase’s the Middle East and Russia.
Roundup Global (NRG), in which our team of
international editors provide you with a snap- African pipelines in the spotlight
shot of some of the key issues affecting their Pipeline construction plans are moving to centre
regional beats. Get the NRG Oil & Gas Editor’s stage in both East Africa and Nigeria.
Picks to your inbox every week for free. Just sign On the eastern side of the continent, Tanzania
up here. is gearing up for talks with France’s Total on a host
Crude oil prices slipped last week but have government agreement (HGA) for the East Africa
regained ground in the early part of this week, with Crude Oil Pipeline (EACOP), which will pump
front-month contracts for WTI and Brent clos- crude from the Lake Albert region in Uganda to the
ing at $38.60 and $41.02 respectively on June 29. coast of the Indian Ocean. Total has already sent a
This upswing appears to indicate that the OPEC+ team to Kampala to negotiate an HGA with Ugan-
group’s production agreement is lending some sup- dan officials and will send the team to Tanzania’s
port to world oil markets, which are under some capital soon, according to Salum Mnuna, EACOP’s
bearish pressure as inventory levels remain high national co-ordinator for the latter country.
and the number of coronavirus (COVID-19) cases Further west, Nigerian National Petroleum
rises in the US and elsewhere. Corp. (NNPC) has had to push back the comple-
Meanwhile, oil and gas firms around the world tion date for the Obiafu-Obrikom-Oben (OB3)
continue trying to adapt to a lower price environ- natural gas pipeline once again. It has attributed the
ment. Some are looking to divest and privatise delay, which will affect plans to deliver gas to power
assets in order to streamline their operations, while plants, to technical problems.
others – including a big name in the US uncon- Nevertheless, NNPC is also preparing to work
ventional sector – are declaring bankruptcy. Mid- on the Ajaokuta-Kaduna-Kano (AKK) gas pipe-
stream projects are also under scrutiny in Africa, line, which will also supply gas to power stations.

Week 26 01•July•2020 www. NEWSBASE .com P5