Page 10 - AfrOil Week 19 2021

AfrOil POLICY AfrOil

Bobboi explained that the government was con- from burning wood and other types of biomass
sidering a subsidy similar to the one it already contributes to the death of more than 600,000
offers to sellers of gasoline. Currently, he noted, Africans each year, he noted.
PEF reimburses fuel retailers for any losses they Bobboi did not say when Abuja expected
may incur as a result of selling gasoline at the wrap up discussions on the proposed LPG
prices set by the state. This process, known as subsidy. The government is working with rep-
equalisation, has already served to boost domes- resentatives of the relevant ministries and state
tic demand for gasoline, and it could do the agencies to finalise the details of a policy pro-
same for LPG, he said. posal, and it will also have to bring that proposal
“[LPG] is an essential commodity. If we are into line with the Petroleum Industry Bill (PIB),
able to make it cheaper and accessible, we will which is still being debated in Nigeria’s National
be able to improve the economy,” he was quoted Assembly. ™
as saying by The Guardian. “We have been able
to successfully equalise petrol for over 45 years.
We believe that the expansion [of this policy]
to [cooking] gas, especially now that we are in
a decade of gas, will add value to the economy.”
He continued: “If it’s working well for [gaso-
line], and the government wants to promote the
use of [cooking] gas. If we can take the practice
to gas, we believe that it will add value to the
economy in so many ways in the value chain.”
Expanding the use of LPG will also mitigate
some of the problems that can arise from the
use of solid fuels, including deforestation and ill
health, he added.
The African Refiners and Distributors Asso-
ciation (ARDA) estimates that indoor pollution Nigeria’s government is promoting the use of LPG as cooking gas (Photo: Wikipedia)

PROJECTS & COMPANIES
Apache Egypt consolidates multiple

concessions into PSA with EGPC

EGYPT APACHE Egypt, a subsidiary of APA Corp. The company said it expected the new PSA
(US), has signed a new production-sharing to support the Egyptian Ministry of Petrole-
agreement (PSA) with Egypt’s Ministry of um’s efforts to modernise the domestic oil and
Petroleum and the Egyptian General Petroleum gas industry. It also noted that finalisation of
Corp. (EGPC). the deal would be subject to the approval of the
The document, which was signed earlier this Egyptian government, as well as parliamentary
month, serves to consolidate most of the sites ratification.
that the company operates in Egypt’s Western John J. Christmann, APA’s president and
Desert into a single concession. In turn, this sin- CEO, commented: “Egypt’s Minister of Petro-
gle concession will account for more than 90% leum and Mineral Resources, H.E. Tarek El
of the company’s gross production volumes. Molla, has set important goals to modernise the
According to a company statement, the country’s oil and gas sector and increase foreign
changes serve to simplify Apache’s contractual investment. Today’s announcement follows
relationship with EGPC. They also include nearly a year of discussions focused on those
“provisions to create a single cost recovery ends and is great news for Egypt and Apache
pool, adjust cost oil and gas and profit oil and Egypt. The new agreement in principle confirms
gas participation, facilitate recovery of prior Egypt’s commitment to economic development
investment, update day-to-day operational and public-private partnerships and will facili-
governance and refresh the term length of both tate higher investment levels by Apache Egypt,
exploration and development leases,” it said. resulting in more drilling, more production and
Apache Egypt, which will become the sole more sustainability projects, while also enhanc-
contractor, is owned two-thirds by APA and ing talent development opportunities and deliv-
one-third by Sinopec, a state-controlled Chinese ering cost efficiencies through the introduction
company. of new technology.” ™

P10 www. NEWSBASE .com Week 19 12•May•2021