Page 7 - FSUOGM Week 30

FSUOGM NEWSBASE ROUND -UP GLOBAL FSUOGM

NRG: Beyond oil

Oil prices have continued their steady ascent, but governments and businesses

are more focused than ever before on life after oil

GLOBAL Welcome the latest edition of NewsBase’s Besides renewable energy, countries are looking
Roundup Global (NRG), in which our team of more seriously than ever before at hydrogen
international editors provide you with a snap- energy. Gas producers hope to play a key role in
shot of some of key issues affecting their regional the fuel's development.
beats. Get the NRG Oil & Gas Editor’s Picks to
your inbox every week for free. Just sign up here . Africa: Nigeria’s oil law
Oil prices are continuing on their slow and Nigeria’s government is reportedly making
steady ascent, with Brent closing on July 27 at a push to bring its new oil law to the National
$43.4 per barrel, while West Texas Intermedi- Assembly for a vote. Timipre Sylva, Minister of
ate ended at $41.60. However, as coronavirus State for Petroleum, said last week that the latest
(COVID-19) infections continue to increase version of the long-delayed Petroleum Indus-
across the world, many forecasters are incorpo- try Bill (PIB) would be submitted to legislators
rating a second wave of the pandemic into their within two weeks. He asserted that the draft leg-
base-case scenarios for oil demand. OPEC+ is islation would protect Nigeria’s interests while
preparing to ease its supply cuts at the start of also facilitating outside investment.
August – a move the cartel says is justified given Elsewhere in Africa, Angola’s government
the market’s recovery. Indeed, if OPEC+ keeps has offered tax breaks for nine blocks that are due
too much supply back, it risks losing market to be auctioned off in the near future. Officials
share to US shale, which will become increas- in Luanda said last week that the winners of the
ingly profitable again as oil prices rise. tenders for these onshore licence areas will pay
There were expectations that the global eco- a petroleum income tax of 30% instead of the
nomic collapse brought about by COVID-19 usual rate of 50%.
would result in governments and businesses Meanwhile, Mozambique’s national oil com-
scaling back their decarbonisation plans to focus pany (NOC) ENH and its partner, Malaysia’s
on more immediate concerns. But it seems the Energi Mega Persada, have cited the coronavirus
opposite has happened, with many nations dou- (COVID-19) pandemic as the reason for their
bling down on efforts to reduce their emissions. decision to suspend oil and gas exploration in the

Week 30 29•July•2020 www. NEWSBASE .com P7