Page 7 - AfrOil Week 12 2020
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AfrOil COMMENTARY AfrOil
But gas prices will remain low in the meantime over the next two years, according to Fitch, due to weak demand for LNG in China, high vol- umes of gas in European storage and commis- sioning of new LNG capacity, albeit at slower pace than in 2016-2019.
“Our ratings will be driven by issuers’ expected credit profiles in 2020-2023 (assuming their liquidity remains sufficient), rather than
when prices trough. This is in line with our “rat- ing-through-the-cycle” approach,” says Fitch. “We do not anticipate that this revision of oil and gas prices will trigger portfolio-wide neg- ative rating actions, but we will assess the credit impact case by case. High-yield issuers are more exposed, particularly those with high liquidity and refinancing risks, given tough capital and asset sale markets.”
INVESTMENT
Liberia invites local companies to pre-qualify for bidding round
LIBERIA
LIBERIA’S government has indicated that it wants international oil companies (IOCs) to team up with local partners in the country’s upcoming offshore licensing round.
Lastweek,theLiberiaPetroleumRegulatory Authority (LPRA) said in a statement that it had begun the process of pre-qualifying local com- panies to participate in the auctions. It explained that it had extended an invitation specifically to Liberian firms so that it could draw up a list of pre-qualified local entities that were ready to co-operate with the IOCs that submit offers during the bidding round.
Only pre-qualified Liberian companies will be allowed to take part in the auctions, the state agency warned. This restriction will apply to local companies that make offers independently, as well as local companies that collaborate with a foreign partner, it added.
It also advised Liberian firms to pursue pre-qualification independently, rather than in groups. “Interested companies are requested to apply individually and not as a conglomerate or under a joint venture,” it said. “Applications submitted for a group of companies or a joint
venture will not be processed. This does not exclude a subsidiary from applying and listing a parent company in support of its application. The notice of qualification, if approved, will be grantedtothesubsidiaryalone.”
As of press time, the LPRA had not said whether it expected any specific local compa- nies to submit expressions of interest (EoIs). It did state, though, that it would accept EoIs for pre-qualification from March 17 until April 30.
Additionally, it said it was taking this action in order to uphold its pledges with respect to local content in exploration and development projects. “This move by the LPRA is a demon- stration of the Liberian government’s com- mitment to ensuring that indigenous Liberian companies are directly involved in the petro- leum sector of the country,” the statement said.
According to previous reports, Liberia’s first licensing round will include nine offshore blocks. The government will accept offers from April 10 until October 1.
All of the blocks slated for auction lie within the Harper Basin, one of the last unexplored and undrilled regions offshore West Africa.
TGS has amassed a range of multi-client data from the blocks to support the bidding round(Image: TGS
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