Page 16 - AfrOil Week 06 2022

AfrOil NEWS IN BRIEF AfrOil

The Consideration Shares will be subject to a PERFORMANCE levels of threat to our country because it’s so
hold period of four months and one day under much money in the hands of people who don’t
Canadian securities laws as well as certain Libya cuts crude oil pay tax, people we don’t regulate. The country is
restrictions on resale as agreed to with the Com- not safe. They do that to us. They do that to other
pany. ReconAfrica and NAMCOR shall enter production by 100,000 bpd operators also.”
into a mutually acceptable agreement and other Oil theft is a factor that affects whether inter-
related documents containing the terms and on maintenance disruption national oil companies (IOCs) invest in Nigeria,
conditions of the Transaction, including those Elumelu added.
that are customary in international oil and gas Libya’s National Oil Corp. (NOC) has cut crude bna/IntelliNews, February 2 2022
transactions by February 17, 2022. production by 100,000 barrels per day (bpd)
Closing of the Transaction is expected to and has suspended export operations at Sidra,
occur on or about March 30, 2022, and is subject the port that hosts the country’s largest oil termi- POLICY
to the Company receiving all necessary regula- nal, over the disruption of tank maintenance and
tory approvals, including, but not limited to, the construction work. IMF reiterates call for
acceptance of the TSX Venture Exchange to the In a statement, the state-owned firm reported
issuance of the Consideration Shares. that 11 out the the 19 oil storage tanks built at elimination of Nigerian
Immanuel Mulunga, Managing Director, Sidra had been heavily damaged as a result of
NAMCOR stated: “We are delighted to enter chaos and armed struggles. So far, it said, the Lib- gasoline subsidy
into this strategic and mutually beneficial trans- yan authorities have failed to repair the facilities
action with ReconAfrica. The transaction, is not or provide new tanks. The International Monetary Fund (IMF) has
only less onerous but adds significant strength The lack of storage capacity and loss of access once again urged Nigeria’s federal government to
to NAMCOR’s balance sheet, as well as provides to export infrastructure has negatively affected eliminate its long-standing subsidy for domestic
NAMCOR with exposure to the entire Kavango Waha Oil Co. (WOC), a subsidiary of NOC, the gasoline prices.
sedimentary basin in Namibia and Botswana. statement said. Following their 2021 Article IV Consultation
We have the utmost confidence in ReconAfrica It noted that WOC had cut production fol- with Nigerian authorities, released on February
as the Company has proven to be a responsible lowing the suspension of maritime shipments 7, the IMF’s executive directors included the lift-
operator in our country with an excellent track from Sidra in light of leaks in the pipeline net- ing of the fuel subsidy on their list of suggested
record in the performance of its work obligation.” work and the surface facilities that link produc- fiscal measures for promoting economic growth.
ReconAfrica, February 6 2022 tion and shipping networks. “Directors also urged the removal of untar-
Ongoing struggles and armed clashes geted fuel subsidies, with compensatory meas-
SDX Energy agrees to between Libyan factions have left the country’s ures for the poor and transparent use of saved
oil infrastructure fragile and unable to cope with resources,” they said. “They stressed the impor-
dispose of 33% equity strain. This fragility was in evidence last week, tance of further strengthening social safety nets.”
when the NOC temporarily halted crude exports
The IMF’s executive directors also recom-
stake in South Disouq from the Brega, Zueitina, Ras Lanuf, Al Zawiya, mended that Nigeria introduce a value-added
Melita, and Sidra ports because of unfavourable tax (VAT), improve tax compliance and rational-
MENA-focused oil and gas producer SDX weather conditions along Libya’s Mediterranean ise tax incentives in order to maximise domestic
Energy has agreed to dispose of 33% of the share coast. revenue mobilization.
equity it holds in Sea Dragon Energy (Nile) BV bna/IntelliNews, February 8 2022 Additionally, they called on Abuja to replace
to Energy Flow Global Ltd for a total considera- the official exchange rate for the naira with a uni-
tion of $5.5mn effective February 1, 2022. SDX Elumelu says Heirs Holding fied, market-clearing exchange rate and to enact
will continue to retain the remaining equity stake macroeconomic policies to help keep inflation in
it holds in Nile BV, where it is the operator of gas sometimes loses over 50% check, as well as structural reforms that fostered
producing, development and exploration assets transparency and improved governance.
in the South Disouq concession, located in the of oil output to theft The Nigerian government is currently spend-
Nile Delta. ing more than NGN240bn ($577mn) per month
SDX aims to use the cash contribution that it Tony Elumelu, the chairman of Nigerian inde- on the gasoline subsidy, equivalent to nearly
will receive in the second and third quarters of pendent Heirs Holding, said on Tuesday (Feb- NGN3 trillion ($7.22bn) per year. Efforts to
2022 in part to fund SDX’s remaining capital and ruary 2) that his company at times has lost more eliminate the price supports have sparked polit-
operational expenditures in South Disouq and than half of its Niger River Delta oil production ical controversy.
in part to pay for a share buyback programme. to theft. bna/IntelliNews, February 8 2022
AIM-listed SDX’s energy’s portfolio con- “We produce sometimes about 87,000 bar-
tains interests in six concessions in Egypt and rels per day [bpd],” he said during a lecture at Ugandan MPs blame
Morocco. In Egypt, SDX has a working inter- the National Defence College in Abuja. “Thieves
est in two producing assets in the South Dis- take 50,000 [barrels] per day.” fuel companies for high
ouq concession in the Nile Delta and in the Elumelu acknowledged that the oil theft
West Gharib concession located onshore in the problem was widespread in the Niger River gasoline prices
Eastern Desert adjacent to the Gulf of Suez. In Delta and noted the potential for harm to the
Morocco, SDX has a 75% operated working Nigerian economy. Members of Uganda’s Parliament have said in a
interest in four exploration permits, all situated “[To] me, this requires a national seminar or new report that fuel companies are to blame for
in the Gharb Basin. dialogue,” he was quoted as saying by the Punch the continued rise in domestic petroleum prod-
bna/IntelliNews, February 4 2022 newspaper. “In my view, it is one of the highest uct prices.

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