Page 9 - AfrOil Week 45 2022
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AfrOil INVESTMENT AfrOil
“The initial conversion price is expected to USD-ZAR [South African rand] exchange rate
be set within a premium range of 30% to 35% at the time of pricing prior to, and/or absent of
above the volume weighted average price of such approvals, holders of the convertible bonds
the ordinary shares listed on the main board will, in accordance with the conditions, receive
of the JSE Ltd [Johannesburg Stock Exchange] on conversion a cash amount equal to the value
between opening of trading [on November 1] of the ordinary shares,” said the Sasol release.
and pricing which is expected later [the same Sasol is active in the US, Qatar and Mozam-
day], translated into [US dollars] using the bique, as well as South Africa.
PERFORMANCE
OPEC sees Africa adding 1.2mn bpd of
refining capacity in medium term
REGIONAL OPEC has said, in the latest edition of its World constructing a 100,000-bpd plant in Soyo and
Oil Outlook report, that Africa is on track to add Guinea will be building a 10,000-bpd plant in
1.2mn barrels per day (bpd) of primary refin- Brahms.
ing capacity in the medium term, with Nigeria’s Meanwhile, it states, Nigeria, Ghana and Sen-
Dangote Refinery accounting for more than half egal intend to build and commission a number
of the total. of small modular facilities, some of which may
According to the report, the Dangote Refin- be able to handle as much as 20,000 bpd each.
ery project is the largest downstream project These refinery construction and expansion
slated for completion in Africa by the end of this projects have the potential to benefit Africa,
decade. It envisions the construction of a refin- World Oil Outlook commented, as they could
ery in the Lekki Free Trade Zone (FTZ) near help meet the growing demand for fuel in many
Lagos, and it will eventually have a capacity of African countries, while also reducing net
650,000 bpd. It is slated to come on stream in importers’ reliance on foreign suppliers. This
2023 with an initial capacity of 560,000 bpd. dependence has proven to be very financially
Although the Dangote Refinery is a newbuild burdensome this year, as the price rises that have
plant, World Oil Outlook notes that both new- followed Russia’s invasion of Ukraine have made
build and expansion projects will contribute to imported fuel very expensive.
the expansion of Africa’s refining capacity in the Some African states have responded to the
medium term. Egypt’s 160,000-bpd expansion price rises by subsidising petroleum product
programme at MIDOR and Algeria’s 110,000- costs, but others have not.
bpd expansion programme at Hassi Messaoud As a result, they have had to weather the dis-
will add distillation capacity, it states. content of consumers hit by inflation for many
On the newbuild side, it adds, the Republic types of basic goods – not just fuel, but also food,
of Congo will be constructing a 110,000-bpd which has become more costly as a result of the
plant in Pointe Noire while Angola will be Russia-Ukraine war.
The Dangote Refinery will add 650,000 bpd of new processing capacity (Photo: Twitter/@NMDPRAtweets)
Week 45 10•November•2022 www. NEWSBASE .com P9
