Page 19 - AfrOil Week 23

AfrOil NEWS IN BRIEF AfrOil

POLIC Y
African Energy Chamber

describes OPEC+ deal as
a positive step for African

energy players

Over the weekend, the 11th OPEC and non-
OPEC Ministerial Meeting concluded on a
series of decisions which will help maintain a
still fragile market stability, and which should be
supported.
Held via videoconference on Saturday, June 6,
the Ministerial Meeting reconfirmed the existing
arrangements under the April agreement and
extended the production cuts of 9.7mn barrels
per day by another month, until July 30, 2020.
The deal was initially due to expire on June 30.
In addition, all participating countries sub-
scribed to the concept of compensation by those to the agreement. The rebalancing of the market of the Uganda Chamber of Mines & Petroleum &
countries who were unable to reach full con- is key for African oil producing nations to pre- Chairman, Private Sector Foundation Uganda:
formity to the agreement in May and June. As serve jobs in the sector and give the continent an “Force majeures are reactive for companies. It
a result, and in addition to their already agreed opportunity to stabilise and recover. is something that is beyond their means or the
production adjustment for May and June, coun- The chamber acknowledges the role of Afri- problem there are facing. So, it is unfortunate
tries who were not able to comply for these two can OPEC players like Nigeria, Algeria, Equato- that this has happened in Kenya, but it is also
months expressed their willingness to compen- rial Guinea, Gabon, Congo, Angola, and Libya in unfortunate that Tullow had to exercise this in
sate for it in July, August and September. making this work. their business. When you think about the rea-
The reaffirmation of the OPEC+ commit- African Energy Chamber, June 08 2020 sons they faced, they had no alternative.”
ment to the historic deal made last April comes For companies like Baker Hughes, transition
on the back of a steady rise in oil prices. Grad- Energy leaders give insight into deep-water explorations is expected to be
ual reopening of world economies along with less difficult, because it is already involved in
increased conformity to the production cuts on the future of Kenya’s oil offshore projects across Africa and has actively
have allowed oil prices to bounce back and reach interacted with Eni in Kenya.
the $40 per barrel threshold. The rise has been and gas transition “For us, it is more about how do we get our
especially beneficial for Nigerian and Angolan local partners in Kenya who have been involved
blends. Under the theme “Moving Kenya Forward: in the onshore activities, to then up their game a
“OPEC is taking the right steps to respond Oil Production and New Exploration Under little bit to meet the offshore requirements and
to the market and should be commended. COVID-19,” Africa Oil & Power and the African that’s going to take a lot of back and forth, inte-
Uncertainty is bad for the oil industry and the Energy Chamber provided energy industry lead- gration, cooperation to get them to a point where
extension of OPEC’s cuts ensures market stabil- ers a platform to share strategies and thoughts on the skillset of that personnel and the equipment
ity,” declared NJ Ayuk, Executive Chairman at how Kenya’s oil and gas sector can deal with the that they have and intend to acquire will be able
the African Energy Chamber. “African energy implications caused by COVID-19. to meet the requirements of deep-water play,”
companies and even state companies are facing Kenya’s oil and gas industry is in a state of according to Toks Azeez, the Sales and Com-
a battle with liquidity because of the price war transition, as its major oil and gas development mercial Director for Sub Saharan Africa, Baker
and the coronavirus. They do not have state — Blocks 10BB and 13T in Turkana — has been Hughes.
bailouts as their Western counterparts. We hope put on hold, with Tullow Oil submitting a notice Speakers encouraged synergies and regional
the production cuts will give the market a boost, of force majeure to the Kenyan Ministry of Petro- collaboration to overcome the challenges faced
however compliance and collaboration from the leum and Mining, citing complications from by the oil and gas industry. Local companies as
G20 is key. COVID-19. Meanwhile, Uganda’s Lake Albert well as countries need to come together to find a
Ayuk added: “OPEC has proven its ability to Project is moving ahead, with Total announcing solution to them. According to Mwendia Nyaga,
show leadership in times of crisis. We are all in plans to acquire Tullow Oil’s stake in the project. Chief Finance Officer of Oilfield Movers: “Com-
this together.” The massive development in Uganda, which is panies can scale up from the location at which
Earlier this month, the African Energy set to include a pipeline and refinery, could easily they are based and start working in other places.
Chamber had called for an extension of the have an impact on regional oil and gas develop- For me it is co-operation, synergising and not
9.7mn b/d production adjustment and urged all ments and opportunities. over-complication.”
producing countries to ensure their conformity According to Dr. Elly Karuhanga, Chairman Africa Oil & Power, June 04 2020

Week 23 10•June•2020 www. NEWSBASE .com P19