Page 16 - AfrOil Week 21 2021

AfrOil NEWS IN BRIEF AfrOil

ReconAfrica has no knowledge of such Sh0.50 per litre per month for each of the all the 57 fields on offer. We want to grow the
a complaint and a request made to National three price regulated petroleum products, reserves because the growth of the reserves
Geographic for a copy was met with no according to EPRA. gives us global competitiveness. OPEC
response. “There will be no any demurrage or will only give you volumes based on your
RECONAFRICA standby charges that we normally have when recoverable reserves. We have to grow our
ships have to wait before being handled. The reserves, and growing the reserves means
cost is passed on to consumers affecting fuel more competitiveness for our nation.”
OIL prices. We expect this to end. The country “This is where we are: the issuance of the
will also enjoy economies of scale from use of awards to the marginal field bidders - the
Construction of Kenyan bigger vessels,” said Salim. awardees. And already, we see investment
coming. Once we form the SPVs (special
EPRA is also banking on increased fuel
terminal nears completion storage capacity by both the government purpose vehicles) for field development,
and the private sector to accommodate more
you can see capital inflow into Nigeria, and
The new and modern oil facility is being products, for longer periods, a move that will definitely, we see a very bright future. Then,
developed at the Mombasa port and is aimed help manage prices based on international we expect to add more volumes because it is a
at cutting fuel prices. It is designed to have five crude prices. game of number.”
onshore pipelines, each dedicated to a separate PUMPS AFRICA According to Auwalu, the DPR knows the
oil product to existing Kenya Petroleum volume every oil and gas well in the country
Refineries Limited (KPRL) and Kenya FG expects first oil from produces.
Pipeline Company tanks in Mombasa. He said: “We give the technical production
Upon completion, it will handle vessels of new marginal fields by allowable for each well. We test every well and
up to 170,000-deadweight tonnage compared record it. So, we know where we are getting
to one ship of 110,000 deadweight tonnage 2022 our volumes between now and 2024.”
on the existing oil terminal, improving on “We expect first oil from most of the
capacity and efficiency on handling fuel The Federal Government has said it is marginal fields, for which we just concluded
products include LPG, crude oil or heavy fuel, expecting most of the marginal fields, which bid round, around January 2022 because all
aviation fuel, diesel and petrol. The project is investors bid for in the recently concluded bid the things that will retard them will go, and we
fully financed by KPA. round, will achieve first oil starting from next need that money for the country.”
Construction of the project which year. The Federal Government, through the
commenced in 2019 faced delays due to the The Director/Chief Executive Officer, DPR, had announced on June 1, 2020 the start
Covid-19 pandemic. It was supposed to have Department of Petroleum Resources, Mr Sarki of the 2020 Marginal Field Bid Round, with
been completed by October. According to Auwalu, said this on Wednesday during a 57 fields available for indigenous companies
KPA acting managing director Rashid Salim, strategic engagement session in Lagos with the and investors interested in participating in
Delivery of material used in the construction Nigeria Extractive Industries Transparency the exploration and production business in
was affected and the site was closed for several Initiative, led by its Executive Secretary, Mr Nigeria.
weeks when the pandemic struck. Orji Ogbonnaya-Orji. The agency said last month that 161
The country has for decades depended on The Minister of State for Petroleum companies had been shortlisted to advance to
the old Kipevu Oil Terminal and the Shimanzi Resources, Chief Timipre Sylva, had said in the final stage of the bid round.
terminal near the Likoni Ferry channel to March that it had received signature bonuses The DRP boss said a refining revolution
offload oil products. The two can only handle from 50 per cent of the winners of marginal was underway in the country,
one oil tanker at a time. According to the oilfields following the conclusion of the bid “We have Dangote refinery coming up;
Energy and Petroleum Regulatory Authority process. we have BUA refinery. In fact, by 2024/2025,
(EPRA), the new facility will do away with The DPR had said in February that the we may have domestic refining capacity of
demurrage charges currently imposed as a government was expecting to generate at about two million barrels per day capacity,
result of delays on oil tankers. least $500m in revenue (N189.5bn) from the with NNPC refinery volumes of 445,000bpd,
Demurrage is a charge payable to the marginal field bid round. Dangote’s 650,000bpd and BUA’s 200,000bpd
owner of a chartered ship on failure to load Auwalu said the government was already and others combined,” he added.
or discharge the ship within the agreed time. taking advantage of the success of the MARKET SCREENER
With speedy cargo evacuation, the country programme.
will save on demurrage costs to the tune of He said: “Investors are rushing to invest in

P16 www. NEWSBASE .com Week 21 27•May•2021