Page 11 - AsianOil Week 50 2020

AsianOil NEWSBASE’S ROUNDUP GLOBAL (NRG) AsianOil

Brent soars to nine-month high

The benchmark has been supported by further vaccine progress,

US political developments and tensions flaring in the Middle East

GLOBAL WELCOME to the latest edition of NewsBase’s AfrOil: Mozambique’s security worries
Roundup Global (NRG), in which our team of This week’s AfrOil takes a closer look at Mozam-
international editors provide you with a snap- bique, where security concerns are on the rise
shot of some of the key issues affecting their following another round of clashes between the
regional beats. Get the NRG Oil & Gas Editor’s armed forces and militants attempting to seize ter-
Picks to your inbox every week for free. Just sign ritory in the northern Cabo Delgado Province.
up here. According to press reports, members of Ahlu
Brent topped $50 per barrel on December 10 Sunnah Wa-Jamo (ASWJ), an Islamist group that
for the first time since March, supported by grow- has links to the Islamic State (Daesh), sought to
ing positive sentiment about vaccine develop- take control of the village of Mute last week. The
ments. The benchmark regained this level again on initial attack led the Mozambican armed forces to
December 14, before dipping slightly below the $50 send reinforcements to the area, and these soldiers
watermark in the early hours of December 15. succeeded with air support from Dyck Advisory
There are several other factors besides vaccines Group, a private South African security firm.
that have been pushing oil prices higher. The US Since Mute is only around 20 km away from
Supreme Court dismissed yet another suit to the site where Total (France) is constructing a liq-
overturn the election results in key swing states on uefaction plant for the Mozambique LNG project,
December 11 and then members of the Electoral the incident has raised questions about how to
College on December 14 affirmed President-elect safeguard ports and other infrastructure that are
Joe Biden’s victory in a vote. providing support for the development of offshore
Negotiations on a bipartisan US stimulus pack- natural gas fields. ASWJ has reportedly stepped up
age are also making progress, albeit slowly. The its offensive campaign in Cabo Delgado in recent
package has also been cut to $748bn, from $908bn weeks, and some observers believe more attacks are
previously. likely in the short term.
Instability in the Middle East has also had In related news, one of Mozambique’s domestic
an impact. Attacks on infrastructure and gas-to-power schemes appears to be making head-
political unrest have reintroduced an ele- way, as UK-based Globeleq and its partners in the
ment of geopolitical risk into pricing in recent Central Termica de Temane (CTT) project have
weeks. This week an explosion on an oil tanker secured up to $250mn worth of debt funding. The
in Saudi Arabia has raised concerns about sta- US International Development Finance Corpora-
bility in the Jeddah oil hub. tion (DFC) has pledged to provide up to $200mn

Week 50 17•December•2020 www. NEWSBASE .com P11