Page 17 - AfrOil Week 27 2022

AfrOil NEWS IN BRIEF AfrOil

INVESTMENT
San Leon Energy provides

update on investment in
Nigeria’s Oza oilfield

Further to the Company’s announcement on
May 3, 2022, San Leon, the independent oil and
gas production, development and exploration
company focused on Nigeria, has provided
an update in respect of its potential follow-on
investment in the Oza oilfield in Nigeria.
San Leon’s announcement of 3 May 2022
noted that the Company had an option until
June 30, 2022 to provide a further loan of $2.5mn
to Decklar Resources, in order to increase its
shareholding in Decklar from 11% to 15% (or
otherwise accept the pro rata reduction in its
shareholding in Decklar to 11%).
San Leon is in discussions with Decklar in Algeria increased its gas output from 175.9mn fields of renewable energy and pharmaceuticals,
respect of potentially extending the Option tonnes of oil equivalent in 2020 to 185.2mn toe which are also priority areas for Nigeria.”
Period. The Company will release further last year. Hydrocarbon export revenues thus The meeting also saw the signing of agree-
announcements as and when appropriate. rose from $20bn to $34.5bn. The revenues could ments and memoranda of understanding
San Leon Energy, July 1 2022 reach up to $50bn in 2022 if the same rate of out- (MoUs), including in the fields of political con-
put and sales continued for the rest of the year. sultations, diplomatic training, research and the
bna/IntelliNews, July 4 2022 exchange of information and documentation.
PERFORMANCE bna/IntelliNews, July 6 2022
Algeria’s gas revenues Nigeria has exported POLICY
$1bn of gas to Portugal
surge 70% y/y in Jan-May this year alone Algeria reportedly mulling

2022 to $21.5bn Nigerian National Petroleum Co. Ltd (NNPC

Algeria’s oil and gas revenues rose by nearly Ltd) has sold over $1bn of natural gas to Portugal raising gas prices for
70% year on year in the first five months of 2022 so far in 2022, it has revealed. European customers
to reach $21.5bn by end-May, according to Speaking during the Nigeria-Portugal Busi-
Tewfik Hakkar, CEO of the state energy utility ness and Trade Forum on June 30th, NNPC Ltd’s Algeria’s state oil producer Sonatrach could shift
Sonatrach. Group Managing Director Mele Kyari high- to increasing gas prices on European customers
Algeria said last week it is currently negotiat- lighted the years of co-operation between the under the long-term contracts reliant on the sin-
ing with all its clients to review gas prices, in a bid two states, noting that Nigeria supplies 70% of gle pricing index, as the utility evaluates options
to benefit from the soaring global energy prices. energy imports to Portugal. to maximise its returns from the global surging
Sonatrach explained that it could shift to increas- “This year alone, we have sold over $1bn prices of energy, Reuters reported on June 30.
ing gas prices on European customers under the worth of natural gas to Portugal,” he said, accord- Among other options, Sonatrach might shift
long-term contracts reliant on the single pricing ing to the NNPC Twitter account. Kyari also to raising prices with companies that receive gas
index. spoke about the “ample opportunities” to grow through the undersea Medgaz pipeline, includ-
The price reviews will add more pressure the supply of energy due to the investment in ing Naturgy, Cepsa and Endesa in Spain, Engie
on European countries ahead of winter, which infrastructure to ensure domestic gas availability (France) and Galp (Portugal), sources told the
usually witness more energy consumption for and increase gas supply. news agency.
warming. The forum was held during the state visit of The price reviews will add more pressure
Europe, which is largely dependent on Rus- Nigerian President Muhammadu Buhari. Dur- on European countries ahead of winter which
sian gas, has suffered limited energy supplies ing the meeting, he also claimed that Nigeria is usually witness more energy consumption for
(less than 40% of normal levels) since the coun- ready to fill the natural gas gaps in Portugal, and warming.
try invaded Ukraine and the West imposed sanc- the rest of Europe, caused by the Russian inva- Europe, which is largely dependent on Rus-
tions on Moscow. sion of Ukraine. sian gas, has suffered limited energy supplies
The hikes in gas prices helped Algeria to “At a time the world is going through turbu- (less than 40% of normal levels) since the coun-
shore up its foreign reserves. Energy revenues are lent times, we feel that a strong friendship and try invaded Ukraine and the West imposed
expected to climb to $50bn by end-2022, from partnership between Nigeria and Portugal can sanctions against Moscow. At the same time,
only $35.4bn last year. act as a force for good,” he said. “Nigeria recog- Algeria’s role as a gas supplier to some European
Thanks to higher global demand and prices, nises Portugal’s comparative advantages in the countries, including Italy and Spain increased.

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