Page 10 - EurOil Week 46

EurOil NEWSBASE’S ROUNDUP GLOBAL (NRG) EurOil

NRG: Fading optimism

After a brief rally on positive news about a COVID-19 vaccine, oil prices are losing

steam in the face of predictions that demand is not headed for a recovery yet

COMMENTARY WELCOME to the latest edition of NewsBase’s fire at the Baghjan field, and ConocoPhillips has
Roundup Global (NRG), in which our team of reported a new discovery offshore Norway. Several
international editors provide you with a snap- LNG projects have continued to move forward,
shot of some of the key issues affecting their and Brazil is gearing up to unload a major upstream
regional beats. Get the NRG Oil & Gas Editor’s asset.
Picks to your inbox every week for free. Just sign
up here. Africa: West Africa in focus
World oil markets performed well last week, on The Nigerian government has been pushing
the back of reports that a vaccine for the novel coro- the National Assembly to pass the long-delayed
navirus, the cause of the COVID-19 pandemic, Petroleum Industry Bill (PIB) before year-end,
might be approved before the end of the year. but it has pushed its deadline back to next March.
However, the rally appears to have lost steam According to Timipre Sylva, the country’s min-
already, owing to widespread expectations that ister of state for petroleum resources, Abuja has
global energy demand will remain sluggish in the a good chance of securing the passage of the law
near term. The International Energy Agency (IEA) before the end of the first quarter of 2021.
took that stance in a report published November In related news, the Nigeria LNG (NLNG) con-
12, saying that rising infection rates in Europe sortium has said it expects to raise the volume of
and the US were acting as a damper on oil and LPG reserved for the domestic market to 450,000
gas demand. The agency also stated that it did not tonnes in 2021, up from current levels of 350,000
believe COVID-19 vaccines would give a signifi- tonnes per year (tpy). The increase is in line with
cant boost to demand “until well into next year.” the federal government’s efforts to promote the use
Other signs of slowdown were seen in Africa, of LPG as cooking gas, said Tony Attah, NLNG’s
where Nigeria has altered its target date for passage managing director.
of a new oil law and BP has scaled back its expan- Meanwhile, the government of Ghana has
sion plans in the offshore Mauritania/Senegal reportedly ordered Eni of Italy to unitise the off-
basin. In Europe, the UK is set to see oil and gas shore Sankofa field with Afina, a licence area
drilling fall to the lowest levels seen in more than 40 assigned to a private Ghanaian company, Spring-
years. In the Middle East, Saudi oil facilities located field Exploration and Production. In a letter viewed
near the border with Yemen came under attack. In last week by Bloomberg, Energy Minister John-Pe-
North America, the shale sector is weathering news ter Amewu said that his ministry was issuing this
of a bankruptcy and an asset sale. demand because the two companies had failed to
There has been some good news, though. Oil work out a joint plan for development, in line with
India Ltd (OIL) has extinguished a long-burning previous instructions from Accra.

P10 www. NEWSBASE .com Week 46 19•November•2020