Page 7 - FSUOGM Week 22

FSUOGM NEWSBASE’S ROUNDUP GLOBAL (NRG) FSUOGM
NRG: Some forward momentum, but overall restraint
Despite the relative stability of crude prices in recent days, more news of activity cutbacks, earnings losses and demand weakness continues to come in, and all eyes turn to the forthcoming OPEC+ meeting
NRG
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Crude prices have remained relatively stable over the past week, with both Brent and West Texas Intermediate (WTI) staying above $30 per barrel, and Brent even edging closer to $40 per barrel. However, this relative stability comes as a result of extensive cuts to supply, and all eyes will be on this week’s OPEC+ meeting, where the group will con- sider extending its cuts into July or August.
In the meantime, there is still plenty of news of weak demand, earnings losses and various play- ers scaling back activity in response to market conditions. Some signs of forward momentum are emerging, but such steps are being taken with caution.
African countries moving ahead
Two African countries have taken a step this week towards launching long-delayed investment initiatives.
In Nigeria, the Department of Petroleum Resources (DPR) has launched a new licensing
round for marginal fields after a delay of more than 10 years. The auctions will cover 57 fields in the onshore, swamp and shallow-water offshore zones, and they will be open to both domestic and foreign investors. The DPR hopes to wrap up the bidding process before the end of the year.
In Uganda, Tullow Oil (UK/Ireland) has taken another step towards finalising the sale of its stakes in several blocks near Lake Albert to Total (France). The company reported last week that China National Offshore Oil Corp. (CNOOC), the other shareholder in the blocks, has decided against exer- cising its right to buy half of the stakes in question on the same terms as Total. This decision clears the way for Tullow to concentrate on finalising a bind- ing tax agreement with Ugandan authorities.
In other news, Algeria’s national oil company (NOC) Sonatrach has become the majority share- holder in the Medgaz pipeline via a transaction that allowed it to acquire 8.0% of equity from Spain’s CEPSA. Ownership of the pipeline is now divided between Sonatrach, with 51%, and Naturgy (Spain), with 49%. The parties hope to expand the system’s capacity by nearly a quarter to 10.2 bcm per year in 2021.
Meanwhile, Nigerian National Petroleum Corp. (NNPC) is talking about bringing its pro- duction costs down to $10 per barrel on average
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