Page 14 - AsianOil Week 02 2021

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operators of both blocks have had to revise their and wants to give gas a greater role in its econ-
schedule because of the coronavirus (COVID-19) omy. The government eventually wants to see
pandemic. as many as 1.3mn gas-fuelled cars on the road,
primarily by converting existing vehicles that are
If you’d like to read more about the key events shaping over 20 years old. This would reduce pollution
Africa’s oil and gas sector then please click here for levels in Egypt’s largest cities, reduce transport
NewsBase’s AfrOil Monitor. costs and bring down the country’s fuel import
bill.
DMEA: Nigeria works on new refining re- The central bank’s initiative will see loans
vamp plan with a 3% interest rate provided through banks
Nigeria’s state-owned NNPC is negotiating a to individuals seeking to convert their gaso-
$1bn prepayment deal with trading firms to line-fuelled cars to use natural gas as well. The
raise funds to modernise its largest refinery in financing is available for between seven and 10
Port Harcourt. years.
According to Reuters, the prepayment funds
would be repaid over seven years through deliv- If you’d like to read more about the key events shaping
eries of crude oil, as well as refined products once the downstream sector of Africa and the Middle East,
the refinery has been modernised. Cairo-based then please click here for NewsBase’s DMEA Monitor.
Afreximbank is helping to arrange the financing,
the news agency said. Europe: BP relaunches North Sea sale
The 210,000 barrel per day (bpd) Port Har- BP has reportedly relaunched the sale of some of
court facility and NNPC’s other refineries in its North Sea interests, following the collapse of
Kaduna and Warri were built in the 1970s and a previous deal with Premier Oil.
are in need of extensive repairs and modernisa- The UK major agreed to divest its Andrew
tion. Their poor state means they can only oper- Area and Shearwater assets to Premier Oil in
ate at a fraction of their combined 445,000 bpd January, initially for $625mn, but the price tag
nameplate capacity. was later renegotiated to $210mn in light of
NNPC has made a number of unsuccessful the oil price collapse. The deal was then scup-
attempts to rehabilitate the facilities over the pered altogether when Premier announced in
years. Last year it similarly tried to partner with October its merger with fellow North Sea player
oil traders, producers and engineering firms to Chrysaor.
fund refurbishment. But it gave up after a year BP has now put the sales process back on
of fruitless talks. track, according to Reuters, inviting companies
The company’s latest effort comes amid a to bid for the assets without a deadline. But the
squeeze in global capital as a result of the coro- producer is unlikely to collect more than $80mn
navirus (COVID-19) pandemic. Investors also from the sale, the news agency said.
have less appetite for the commodities market After the deal was clinched with Chrysaor,
because of weak prices. Premier CEO Tony Durrant said he expected
Over in Egypt, the central bank has launched talks between BP and the combined entity,
an EGP15bn ($950mn) initiative to support which will be known as Harbour Energy, to be
motorists that want to convert their vehicles to revived at a later point. Aberdeen-based West-
run on natural gas. wood Global said in October that Harbour was
Egypt enjoys a surplus of natural gas supply likely to continue with its buying spree in order

P14 www. NEWSBASE .com Week 02 14•January•2021