Page 16 - DMEA Week 38 2022

DMEA NEWS IN BRIEF DMEA

The 7,800 barrels are ready for export pending government permits can be finalized and in for electricity from air-conditioner use during
the completion of certain repairs to the offshore place for oil to start being transported to the the hot summer season.
loading system. In the meantime, an additional Akwete oil storage tank in the next four to five On an annualized basis, IPI was up by 17.7%
30,000 barrels has been produced from the Oza weeks. All efforts are being made to expedite and y/y in July 2022 compared to the same month the
oilfield and is currently being stored in tanks at complete the necessary arrangements and obtain previous year driven by a 14.1% y/y rise in min-
the Oza-1 wellsite. These 30,000 barrels will be the required approvals. ing and quarries output on higher oil production
the initial barrels transported to the new export Sanmi Famuyide, CEO of Decklar Resources, to satisfy global demand as well as a 32% y/y leap
facilities, as detailed below. said: “The new crude export arrangements, in manufacturing production based on growing
Once part of this crude has been shipped including the sale of the Oza crude oil in stor- export demand for refined petroleum products
from the Oza oilfield tanks, the Oza-1 well will age, sale of future production to a local refinery, and a 5% y/y increase in demand for electricity
be brought back onto production, with the and trucking crude oil from the Oza oilfield to and natural gas.
ultimate goal being the provision of a stable, the Akwete tank farm for barging to an FSO, will bne/IntelliNews, September 22 2022
ongoing supply of crude oil into new alternative allow Decklar to significantly increase deliver-
export facilities. ies of oil to markets through improved logistics EEnergy-saving plan
Decklar and Millenium are also pleased and alternative export facilities. These new and
to announce that an agreement has also been existing export alternatives will allow Decklar to lets Egypt export two
reached to transport and sell Oza oilfield crude generate revenue in the near future as we look
oil to a company that owns and operates a small forward to the commencement of more efficient additional LNG cargos
crude oil refinery in Edo State, Nigeria. The crude oil transport and exports from the Oza
agreement provides for an initial sale of 10,000 field.” in two months
barrels. The parties are also in discussions to Decklar Resources, September 20 2022
increase the sale quantity to 30,000 barrels and Implementation of an energy-saving plan to
to possibly agree a minimum monthly quantity reduce electricity consumption since early
of barrels of Oza Oil Field crude to be sold to the REFINING & FUELS August has enabled Egypt to export two addi-
oil refinery. It is anticipated that all required gov- tional cargoes of LNG, generating much-needed
ernment permits will be finalized and in place in Higher crude oil output foreign exchange, local media report Minister of
the next three to four weeks. Petroleum Tarek El-Molla as saying.
Separately, agreements have been executed to boosts Saudi industrial The plan includes applying daylight-saving
truck crude oil from the Oza Oil Field to a 45,000 time settings in malls, switching off lights on
barrel tank farm located in Akwete. The short- production in July government building facades at night and after
term goal is to transport approx. 1,100 barrels official working hours, except for in the service
per day (bpd) of oil from the Oza oilfield to the Industrial production in Saudi Arabia picked-up sectors. It also includes reducing the lighting of
storage tanks at Akwete. Once the volumes at the in terms of volume in July 2022 with the Indus- streets and squares, clubs, stadiums and sports
Akwete oil tank exceed 15,000 barrels, barges trial Production Index (IPI) growing by 1.6% institutions, and standardising energy-saving
will load and transport the crude to an offshore m/m, reported the General Authority for LED lights in all stadiums and youth sports
floating storage and offloading unit (FSO). Statistics. clubs.
The barging to an FSO will provide Decklar The m/m growth in IPI was primarily driven The government’s plan seeks to save 15% of
and Millenium with the ability to produce and by a 1.6% m/m uptick in the heavy-weight the natural gas used for electricity generation,
transport larger and more stable volumes of mining and quarries sub-index, which has a exporting it instead to bring in more foreign
crude oil from the Oza oilfield and avoid the use three-quarters weighting in the overall index. currency amid a global spike in the price of oil
of pipelines in areas that continue to have prob- Mining activity in the kingdom includes oil and basic goods. It estimates that a 10% saving
lems with availability, delays and losses. While production. of gas used for electricity generation and redi-
the trucking and barging of crude oil involves The IPI was also supported by a 0.3% m/m recting it for export will bring in approximately
more complex logistics, it is expected to be more growth in manufacturing production during $300mn per month, while saving 15% will bring
reliable and cost effective than utilizing trucking July. While electricity and gas output surged by in $450mn per month.
and pipelines. It is anticipated that the required 14.6% m/m in July to satisfy a growing demand bna/IntelliNews, September 19 2022

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