Page 10 - FSUOGM Week 23

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to the future, different strategies are emerging. helping to boost the country supply security.
Chinese oil importers have seized on cheap While the fuel industry has welcomed the move,
oil prices as economic activity slowly gains there are concerns that the government could
momentum. Crude imports soared to a new backtrack on reforms once international fuel
record of 47.97mn tonnes (11.34mn barrels per prices recover. Nigeria is heavily dependent
day) in May, General Administration of Cus- on imports, and mere rumours of hikes in fuel
toms (GAC) data showed on June 7, easily out- costs have triggered rioting in the past. The road
stripping the previous record of 11.18mn bpd set to market liberalisation is therefore politically
in November 2019. The may figure takes daily fraught.
import averages to 10.54mn bpd in the first five In an encouraging development for Angola,
months, this compares with the full-year aver- London-based investment firm Gemcorp is pre-
age of 10.17mn bpd in 2019. The rebound could paring to take a final investment decision (FID)
continue, with commodity research firm Kpler by the end of this month on a new 60,000 bar-
telling Bloomberg this week that the imports rel per day (bpd) oil refinery in Cabinda. This
could climb to 14mn bpd in June. is one of three plants the Central African coun-
Pakistan, meanwhile, is reportedly consid- try wants to build to make motor fuel imports a
ering the deregulation of gasoline prices amid thing of the past.
growing supply shortages that many within the Meanwhile, Iran is looking to expand its gas-
local industry had warned about some weeks oline storage, in response to a slump in demand
ago. The Pakistani Energy Ministry’s Petroleum caused by the coronavirus and in preparation for
Division has agreed in principle to “completely an expansion of the Persian Gulf Star refinery.
deregulate” pricing and marketing of gasoline, Iran was one of the countries hardest hit by the
local news outlet Dawn reported on June 8. The pandemic, with travel restrictions causing gaso-
paper, citing an official record of the division’s line stockpiles to reach unprecedented levels last
talks with oil marketing companies (OMCs), month.
said the ministry had decided to link gasoline If you’d like to read more about the key events shaping
prices to the S&P Global Platts Oilgram Price the downstream sector of Africa and the Middle East,
Report of the previous month. This would then please click here for NewsBase’s DMEA Monitor.
replace the government’s current method of set-
ting prices based on state-owned Pakistan State US wades into German affairs; North Sea
Oil’s (PSO) import bill. developments
Australia’s Queensland State has unveiled a The US is considering additional sanctions in a
new natural gas royalty model that will adopt last-ditch attempt to prevent Russia from com-
a volume-based approaching to calculating pleting its Nord Stream 2 pipeline. But with a
payments rather the current index-based sys- mere 6% of the pipeline left to lay, further puni-
tem. The government has also indicted that it tive action is unlikely to thwart the project and
will include a sliding rate scale that will lower could backfire by further straining Washington’s
rates for domestic focused production. The new relations with Berlin.
mechanism will be locked in place for five years, Russia is expected to use two of its own pipe-
though industry has already called for the Labor laying vessels to finish Nord Stream 2, which
government to match the opposition Liberal would likely continue work even if the sanctions
Party’s election pledge of a 10-year freeze on are applied. Gazprom also appears to have trans-
royalties. ferred one of the vessels to another company,
If you’d like to read more about the key events shaping shielding itself from potential punitive measures.
Asia’s oil and gas sector, then please click here for In the North Sea, Premier Oil has managed to
NewsBase’s AsianOil Monitor. renegotiate a lower price for a group of BP assets,
while also making peace with its main creditor
Nigerian fuel deregulation; initiatives in which opposed the deal. If completed, the trans-
Angola, Iran action will be a boon for North Sea M&A activ-
Nigeria has removed a cap on gasoline pump ity, which has slumped since the March oil price
prices as it pushes ahead with deregulation of its collapse.
fuel industry. The move is aimed at encouraging North Sea juniors Egdon Resources and
private companies to import and sell gasoline, Cluff Natural Resources are pushing ahead with

P10 www. NEWSBASE .com Week 23 10•June•2020