The weekly Market Report is provided by Gladius Commodities of Lagos, Nigeria. Download the full report here. Learn more about Gladius Commodities at www.gladiuscommodities.com.
NIGERIA
The Nigerian National Petroleum Corporation (NNPC) is set to resume its oil search in the Lake Chad basin once it gets the needed green light from security agencies. The Group Managing Director (GMD) of the Corporation, Dr. Maikanti Baru said: “There seem to be some prospects there because the Niger Republic drilled over 600 wells and now, they are producing while we have only drilled 23.”
Oil exploration in the Chad Basin was suspended after a team of NNPC Frontier Exploration Services and their consultants from the University of Maiduguri were attacked and some of them abducted on July 25, 2017.
Dr. Baru commended the people of Bauchi and Gombe States, especially communities in the exploration area for their support and hospitality while assuring them of NNPC’s support in the provision of infrastructure and amenities. President Muhammadu Buhari has relieved the present GMD of the NNPC, Dr. Maikanti Baru of the responsibility.
The President appointed Mr. Mele Kolo Kyari to replace Dr. Baru, who is due for statutory retirement as from July 7, 2019, on the grounds of attainment of the 60-year-old retirement age. The new GMD, Mr. Mele Kolo Kyari, will become the 19th GMD of the NNPC and will take over effectively on 8th July 2019.
Since 13 May, 2018, Mr. Kyari doubled as Nigeria’s National Representative to the Organization of the Petroleum Exporting Countries (OPEC), as well as being in charge of the Crude Oil Marketing Division (COMD) of the NNPC, before his latest appointment.
Under his watch, the COMD has recorded noticeable transformation in the management and sales of various Nigerian crude oil grades via an infusion of transparency and automation of the processes. Mr. Kyari with a rich profile of professional and service credentials would be bringing to his new appointment more than 27 years of experience in the various value chains of the petroleum industry.
EQUATORIAL GUINEA
The African Energy Chamber will host an investment forum in China at the beginning of July which is set to open up Equatorial Guinea’s EG Ronda 2019 Licensing Rounds for oil and gas and mining to Chinese and Asian investors.
Earlier this year, the Ministry of Mines and Hydrocarbons of Equatorial Guinea launched its first-ever mining licensing round, as well as the 2019 oil and gas licensing round in the country.
These rounds will attempt to further boost exploration in Equatorial Guinea and support the country’s economic diversification by developing its high-potential mining and minerals industry.
The forum in China, to be held in Beijing on July 2-3, will showcase 27 blocks on offer under the 2019 Oil & Gas Licensing Round, including blocks EG-23 and EG-27 – former Block R, containing the giant Fortuna gas find – for appraisal development and 25 other blocks for exploration.
It will also present Chinese companies with the opportunities to explore Equatorial Guinea’s mineral resources, especially in the Rio Muni area in the country’s Littoral Province.
Although unexplored, the area holds vast potential in mineral deposits such as gold, diamonds, base metals, iron ore, and bauxite. Gabriel Mbaga Obiang Lima, Equatorial Guinea’s Minister of Mines and Hydrocarbons, said: “This forum in China is central to Equatorial Guinea’s strategy of attracting a variety of investors and companies to explore the country’s oil and gas and mineral resources.
We are offering acreages with very high potential for world-class discoveries and also a reformed business environment that makes us very competitive internationally.”
Equatorial Guinea remains largely untapped and underexplored. Chinese investors are keen to engage and do good deals in the energy industry.
GLOBAL
On Thursday 20 June, oil prices jumped after a report that a U.S. military drone was shot down by an Iranian missile, exacerbating Middle East tensions. A U.S. official told Reuters that the drone was downed in international airspace over the Strait of Hormuz by an Iranian surface-to-air missile.
The U. S. West Texas Intermediate crude futures rose $2.33 to $56.09 a barrel, while Brent crude futures were up $2.06 at $63.88 a barrel at 13:35 GMT. The U.S. Energy Information Agency in its weekly report for Wednesday 19th June showed a fall in crude oil inventories by 3.11 million barrels in the week ending June 14, compared to forecasts for a stockpile draw of 1.08 million barrels after a build of 2.21 million barrels in the previous week.
Gulf OPEC producers have agreed to keep their July oil production within their OPEC target despite the current global supply cut pact expiring at the end of June. The United Arab Emirates’ (UAE) energy minister said the UAE supports OPEC and its allies’ inclination to extend a cut in oil production. However, minister Suhail al-Mazrouei added that OPEC+ will hold a meeting on of July 1-2 to discuss whether to extend oil cuts or not.
