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AfrOil PERFORMANCE AfrOil
The gasoline plant, built with help from Eni, was launched in June of this year (Photo:
Meanwhile, he added, the country has also suc- engineering and construction supervision for
ceeded in boosting LPG production by 30% and the project.
jet fuel output by 100%. He did not reveal any Representatives of Sonangol have pointed
specific figures for yields of these fuels. out that the gasoline unit will help improve
Sonaref began constructing the gasoline the refinery’s efficiency while also reducing its
unit in 2019, in line with certain provision of carbon dioxide emissions intensity. It will do so
the National Development Plan 2018-2022 that partly by increasing LPG output and partly by
called for expanding Angola’s oil-processing using by-products of the refining process to fuel
capacity. a combined-cycle thermal power plant (TPP) to
Italy’s Eni, which is participating in the generate electricity for the refinery.
development of a number of Angola’s offshore The Luanda refinery has a throughput capac-
oilfields, provided technical support related to ity of 65,000 barrels per day (bpd).
Prince Abdulaziz: OPEC ready to make
production cuts to correct oil price drop
GLOBAL SAUDI Arabia’s Energy Minister and OPEC markets can’t reflect the realities of the physi-
kingpin Prince Abdulaziz bin Salman Al Saud cal fundamentals in a meaningful way and can
said this week that the OPEC+ group is prepared give a false sense of security at times when spare
to reduce oil output as a means to correct the capacity is severely limited and the risk of severe
recent fall in prices. Speaking to Bloomberg, he disruptions remains high.”
said the group had shown that it was prepared Noting that the paper and physical markets
to act to counteract market volatility and was are becoming increasingly disconnected, he
committed to do so again if required. added that the market is “in a state of schizo-
Noting that oil futures have dropped owing phrenia,” with “erroneous signals” being sent
to perception rather than physical shortages, “at times when greater visibility and clarity and
Prince Abdulaziz said: “The paper oil market well-functioning markets are needed more than
has fallen into a self-perpetuating vicious cir- ever to allow market participants to efficiently
cle of very thin liquidity and extreme volatility hedge and manage the huge risks and uncertain-
undermining the market’s essential function of ties they face.”
efficient price discovery, [which makes] the cost Having announced a quota increase of just
of hedging and managing risks for physical users 100,000 barrels per day (bpd) following its latest
prohibitive.” meeting, OPEC and its deal with non-member
Concerns about Chinese demand and reces- producing nations have come under increasing
sion in the West have seen crude prices fall by scrutiny. Prince Abdulaziz said that the group
around $25 per barrel in recent weeks, down by would begin working on a new deal “beyond
more than a third since the early-year highs of 2022 which will build on our previous experi-
the mid $140s. The minister said: “This is det- ences, achievements and successes,” seeking to
rimental because without sufficient liquidity, prevent market volatility.
Week 34 25•August•2022 www. NEWSBASE .com P9
