Page 12 - AsianOil Week 26

AsianOil NEWSBASE’S ROUNDUP GLOBAL (NRG) AsianOil

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

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

P12 www. NEWSBASE .com Week 26 02•July•2020