Page 8 - FSUOGM Week 21

FSUOGM NEWSBASE’S ROUNDUP GLOBAL (NRG) FSUOGM
NRG: Signs of cautious optimism
Producers and investors remain cautious, as the coronavirus pandemic continues to affect energy demand, but are starting to plan for the post-crisis period
COMMENTARY
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World crude oil prices have continued to show signs of recovery over the last week. Brent crude prices have moved above $35 per barrel, while WTI is not far behind. Nevertheless, producers and investors remain cautious, owing to concerns about the impact of the coronavirus (COVID-19) pandemic.
Even so, they are also starting to plan for the post-crisis period.
In several regions, they are exploring their options for expanding processing and transport infrastructure and are looking forward to a recov- ery in demand.
Africa mulls next steps
The coronavirus pandemic has continued to affect the fortunes of Africa’s two largest oil-pro- ducing countries.
Offshore Angola, at least five international oil companies (IOCs) have halted all drilling activity and are focusing on their existing assets, according
to a Reuters report. As of press time, Total, Eni and Chevron had confirmed the suspension of their exploration and development drilling pro- grammes, while ExxonMobil and BP had declined to comment.
Meanwhile, Nigeria’s government is showing some optimism about meeting its budget targets this year, now that Brent crude prices have moved above the threshold of $35 per barrel. Officials in Abuja had initially based this year’s budget on the assumption that oil would average $57 per barrel, but they revised the figure downwards after the pandemic (and surges in Russian and Saudi pro- duction) wreaked havoc on world crude prices. Earlier this month, they were reported to be con- sidering proposals to adopt an even lower figure of $25 per barrel, but they are now hoping this will not be necessary.
Elsewhere in Africa, Tanzania’s government has reiterated its commitment to increasing domestic service companies’ participation in oil and gas projects. Tanzania is also joining Zambia in back- ing plans to expand the diameter of the Tazama pipeline.
Representatives of the Government of National Accord (GNA) in Tripoli have criticised Khalifa Haftar’s Libyan National Army (LNA) for the ongo- ing blockade of the country’s oil infrastructure.
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