Page 15 - AfrOil Week 30 2022

AfrOil NEWS IN BRIEF AfrOil

PERFORMANCE
Strong hydrocarbon output

in MENA region supports
rapid economic growth,

says Capital Economics

Strong hydrocarbon production in the Middle
East and North Africa region is supporting rapid
economic growth at the start of this year, the
economic consultancy firm Capital Economics
said in a note, adding that higher energy produc-
tion and prices will result in all Gulf economies
running twin budget and current account sur-
pluses this year, providing scope for more fiscal
support.
Rising oil production, coupled with a grad-
ual shift toward a looser fiscal stance in Saudi
Arabia, is expected to drive double-digit GDP from disputes over oil revenues, which have in potential future targets in the Lixus permit.
growth this year; the UAE economy has ben- turn fueled fierce power struggles between east- Chariot’s discoveries in Morocco hold over
efited in the first quarter of 2022 from Dubai’s ern and western clans over NOC, which pro- 1.4 trillion cubic feet (28.3bn cubic metres) of gas
hosting of the World Expo, giving impetus to a vides most of Libya’s revenues. reserves with a methane concentration of 97%
tourism recovery contributing to robust growth One of those struggles came to the forefront located in high-quality reservoirs. Chariot has a
in the second quarter of the year. recently, when Libya’s PM Abdulhamid Dbeibah 75% interest in the Lixus licence containing the
Meanwhile, GDP growth estimates for Egypt replaced NOC’s long-serving leader, Mustafa find, while Morocco’s National Office of Hydro-
point to a deceleration in economic activity in Sanalla, with Farhat Bengdara, a former central carbons and Mines (ONHYM) holds 25%. The
the first quarter of 2022, with more timely activ- bank governor. project should come online in 2024.
ity data painting an even more downbeat picture bna/IntelliNews, July 25 2022 The first Anchois-1 gas discovery under the
for the second quarter, Capital Economics said. Lixus licence was put into production back in
The consultancy firm anticipates inflation pick- Chariot upgrades reserve 2009. The successfully drilled Anchois-2 was
ing up further over the coming months, prompt- launched in Q1 2022.
ing the central bank to resume its tightening estimate for Morocco’s bna/IntelliNews, July 23 2022
cycle towards the end of the year.
bna/IntelliNews, July 28 2022 Anchois gas site Nigeria’s Excess Crude
Libya to raise crude Africa-focused energy exploration group Account “rainy day fund”
Chariot has upgraded its estimates for Moroc-
production to 1.2mn co’s Anchois gas reservoir offshore the Moroc- evaporates
can harbour town of Larache, saying further
bpd by early August amounts of gas will be added to the earlier esti- Nigeria’s Excess Crude Account (ECA), a rainy-
mated capacity, the group said on July 20.
day fund made up of oil revenues, has plunged
Libya’s National Oil Corp. (NOC) said on July 23 Chariot explained that the drilling of to just $376,655 in June from $35.37mn in May,
that it intended to push crude production back Anchois-2 will enable it to speed up the gas as the world economy goes through huge chal-
up to 1.2mn barrels per day within two weeks, up development project, generate more income lenges. Limited oil export and rising debts have
from nearly 860,000 bpd currently. and meet the rising demand for energy in the caused the ECA to plunge in just one month.
NOC announced its intentions in a state- North African country and Europe. Production Nigeria, Africa’s biggest economy by gross
ment after oil production resumed on July 19 is anticipated to start before 2024. domestic product (GDP), relies on oil exports
at several sites – including Sharara, the coun- Last month, Chariot signed a front-end engi- to earn foreign currency. However, the country
try’s largest oilfield – after nearly three months neering and design (FEED) agreement with has traditionally failed to benefit from surging
of closure. The state-owned company lifted its Schlumberger and Subsea 7, as part of a consor- crude prices due to pipeline theft and years of
declaration of force majeure on all fields and oil tium, for the Anchois gas development project. underinvestment.
terminals in the North African country earlier in The agreement aims to accelerate the exploita- The ECA has also been dried due to fuel sub-
this month, and since then, crude oil shipments tion of the offshore gas reserves. Also in June, sidies, which allow ordinary Nigerians to buy
have resumed. the group raised $4mn to finance the offshore fuel at a lower cost.
Libya produced nearly 1.2mn bpd of oil on gas project in Larache after collecting another “The Excess Crude Account, which stood at
average in 2021. But in recent months, output $25.5mn in May for engineering and design $2.1bn when President Buhari took over in 2015,
levels plunged to around 560,000 bpd due to studies. has dropped to $376k [now],” said Tunde Ajileye,
continued closures, as well as frequent power The updated gas estimates are expected to partner at Lagos-based risk advisory firm SBM
supply cuts. Many of these closures stemmed encourage Chariot to expand operations in high Intelligence, according to Al Jazeera.

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