Page 11 - AfrOil Week 27 2021

AfrOil PERFORMANCE AfrOil

DPOC is South Sudan’s largest oil producer (Image: Nilepet)

Blocks 1, 2 and 4 have been assigned to Greater Block 5A, meanwhile, is controlled by Sudd
Nile Petroleum Operating Co. (GNPOC), Petroleum Operating Co. (SPOC), in which
also known as Greater Pioneer Operating Co. South Sudan’s national oil company (NOC)
(GPOC), while Blocks 3 and 7 are assigned to Nilepet is the majority shareholder. SPOC was
Dar Petroleum Operating Co. (DPOC). China the last of the three consortia to resume produc-
National Petroleum Corp. (CNPC) is the major- tion following the conclusion of the country’s
ity shareholder in both consortia. civil war. ™

POLICY
OPEC+ cancels meeting as members

clash over extension of production cuts

REGIONAL MEMBERS of the OPEC+ group downed tools
this week, cancelling a planned July 5 meeting at
the last minute amid growing friction between
key participants Saudi Arabia and the UAE.
Riyadh has been pushing for anticipated
monthly production increases of 400,000 bar-
rels per day (bpd) to be tied to a commitment
to extend the existing supply cut eight months
beyond the current April 2022 end date. Mean-
while, the UAE is digging its heels in on an
extension pending the upward revision of its
reference point for cuts.
Without a consensus among members on The OPEC+ meeting had been scheduled for July 5 (Photo: OPEC)
the next steps, oil production from the group
will stay flat, with 5.8mn bpd of output withheld December.
from the market despite a significant increase The current agreement is based on percent-
in demand anticipated during the second half age reductions based on October 2018 produc-
of the year. OPEC anticipates that oil demand tion levels, giving the UAE a baseline of 3.168mn
will grow by around 5mn bpd between July and bpd, but the country’s production capacity has
December, while S&P Global Platts has fore- now risen to 4mn bpd and it wants this taken
cast growth of 8.8mn bpd between June and into account.

Week 27 07•July•2021 www. NEWSBASE .com P11