Page 14 - DMEA Week 02 2021

DMEA POLICY DMEA

‘Post Trump’ Iran will not be free-for-all

for foreign investors, minister warns

IRAN ‘POST-TRUMP’ Iran will not be a free-for-all companies found themselves alone, struggling to
when it comes to foreign investment, the coun- fill the vacuum.
Iran will not offer the try’s oil minister Bijan Namdar Zanganeh has “If foreign companies come [to Iran], we will
same terms as before warned. cooperate with them, but it doesn’t mean that we
US sanctions were Foreign companies looking to re-enter the will abandon what we have achieved [alone dur-
imposed. country would be required to work under ing the Trump era],” he said, as reported by Iran’s
conditions different to those they secured official energy news agency SHANA.
prior to leaving Iran after the re-introduction Foreign investors that arrived in Iran for a
of heavy US sanctions against Tehran by US second time would find a country that has man-
President Donald Trump from 2018, Tasnim aged to indigenise much of what companies
news agency reported Zanganeh as saying from abroad were bringing to Iran, Zanganeh
on January 11. He spoke with hopes rising said.
that US President-elect Joe Biden, set to take “Sanctions are mortal and will be gone, but
office on January 20, will find an arrangement we will not give up on the capacities we have cre-
with Tehran that allows him to lift the Trump ated and we will organise and strengthen them,”
sanctions. he added.
Prior to the Trump sanctions crackdown, Taking oil as an example, Zanganeh also
Iran made it easier for foreign companies— said: “Today’s capacity to sell oil, transfer oil and
including French energy major Total and Chi- receive oil money is in no way comparable to
na’s China National Petroleum Corporation what was the case back in March 2018 and the
(CNPC)—to take control of foreign investment beginning of the sanctions. We will not allow
projects; however after the Trump sanctions these capacities to be lost. We are organising
caused foreign investors to flee the country, local these capacities.” ™

REFINING

NNPC eyes $1bn prepay deal

to fund refining revamp

NIGERIA NIGERIA’S state-owned NNPC is negotiating a similarly tried to partner with oil traders, producers
$1bn prepayment deal with trading firms to raise and engineering firms to fund refurbishment. But it
NNPC made a similar funds to modernise its largest refinery in Port gave up after a year of fruitless talks.
unsuccessful attempt to Harcourt, sources told Reuters on January 7. The company’s latest effort comes amid a
secure financing for the The 210,000 barrel per day (bpd) Port Har- squeeze in global capital as a result of the coro-
refinery’s rehabilitation court facility and NNPC’s other refineries in navirus (COVID-19) pandemic. Investors also
last year. Kaduna and Warri were built in the 1970s and have less appetite for the commodities market
are in need of extensive repairs and modernisa- because of weak prices.
tion. Their poor state means they can only oper- NNPC’s refineries sustained some
ate at a fraction of their combined 445,000 bpd NGN167bn ($439mn) in losses in 2019 and only
nameplate capacity. the Warri refinery processed any oil. The com-
According to Reuters, the prepayment funds pany opted to close down the plants completely
would be repaid over seven years through deliv- in April 2020 pending their rehabilitation. It
eries of crude oil, as well as refined products once launched a contract for the Port Harcourt com-
the refinery has been modernised. Cairo-based plex’s modernisation in December.
Afreximbank is helping to arrange the financing, NNPC CEO Mele Kyari said last year he
the news agency said. wanted to see private companies run the refiner-
NNPC has not commented on the matter. But ies once their refurbishment is complete.
Reuters said discussions were underway with a Nigeria is also awaiting the launch of the
range of foreign and Nigerian trading houses. 650,000 bpd privately owned Dangote refinery
Nigeria relies heavily on fuel imports despite its next year. But the project, the largest of its kind in
status as Africa’s biggest oil producer. NNPC has Africa, is already running years behind schedule.
made a number of unsuccessful attempts to reha- Coronavirus disruptions last year mean further
bilitate its ailing refineries over the years. Last year it delays are probable. ™

P14 www. NEWSBASE .com Week 02 14•January•2021