Page 10 - AfrOil Week 09 2022

AfrOil POLICY AfrOil

The price of kerosene, known locally as illumi- non-oil producing countries, this can only
nating paraffin, is also slated to rise by at least mean that domestic oil prices will keep shooting
ZAR1.21 ($0.078) per litre, with the single max- upwards until there is some form of stability in
imum retail selling price (SMRP) going up by the market, which appears to be highly unlikely
ZAR1.61 ($0.10) per litre, as of March 1. At the in the foreseeable future,” Simeon Negumbo,
same time, the maximum retail price for LPG the ministry’s executive director, was quoted as
will climb by at least ZAR0.70 ($0.045) per kg. saying by the Namibia Economist. “[We] have
Mantashe attributed the increase to a com- found ourselves in a very difficult global oil mar-
bination of factors, including bullish sentiment ket environment.” ™
on the global crude oil market. “The main rea-
sons for the fuel price adjustments are due to the
average Brent crude oil price, which increased
from $93.00 [per barrel to] $96.47 during the
period under review, and the escalating crisis
between Russia and Ukraine, which led to a
surge in crude oil prices amid supply fears [and]
subsequent sanctions on Russia by the USA and
UK, which have contributed to the increase in
crude oil prices,” he was quoted as saying in a
government press release.
Meanwhile, Namibia’s Ministry of Mines and
Energy announced its own plans for a price hike
on February 28. It stated that retail prices for gas-
oline and diesel would rise by NAD1.20 ($0.081)
and NAD1.30 ($0.087) per litre respectively,
bringing retail pump prices up to NAD17.15
($1.15) and NAD17.28 ($1.16). The new rates
will take effect on March 2, it noted.
The ministry explained its decision by point-
ing to conditions on the global oil market, noting
that supply/demand imbalances and tensions in
Eastern Europe had driven crude prices up to
their highest levels since 2014.
“For oil price takers like Namibia and other Fuel prices are adjusted monthly (Image: South Africa Department of Energy)

Somalia’s offshore oil deals spark concern

in Kenya despite cancellation of PSAs

KENYA/SOMALIA KENYAN officials have reportedly expressed as saying by the East African. “We are watching
concern about Somali Minister of Petroleum those companies very carefully.”
and Mineral Resources Abdirashid Mohamed The source indicated that Nairobi was mon-
Ahmed’s recent signing of deals for seven off- itoring Coastal Exploration, the US-based firm
shore blocks, despite President Mohamed that had signed production-sharing agreements
Abdullahi Mohamed’s swift cancellation of (PSAs) with Somalia’s Ministry of Petroleum
those agreements. and Mineral Resources for the seven offshore
Sources in Nairobi said that the matter had blocks. Kenyan authorities have reasons for
attracted the government’s attention because concern about companies that seek access to
some of the blocks covered by the deals were resources in disputed areas, he said.
located in a disputed section of the offshore zone According to the newspaper, three of the
claimed by both Somalia and Kenya. seven blocks briefly awarded to Coastal Explo-
One high-ranking diplomat who spoke to ration lie within the offshore area claimed by
the newspaper on condition of anonymity said both countries.
that Kenyan authorities were observing devel- Somalia and Kenya have been at odds on this
opments closely, even if there was no immediate front since 2014, and in October 2021 the Inter-
cause for worry. national Court of Justice (ICJ) issued a bind-
“It does not alarm us. It concerns us, how- ing ruling in Mogadishu’s favour. Nairobi has
ever,” the diplomatic source, who has knowl- rejected that verdict and still claims the territory
edge of conversations on the issue, was quoted that the ICJ has assigned to Somali authorities.

P10 www. NEWSBASE .com Week 09 02•March•2022