Kyari noted that the NNPC Limited will implement a new approach to exploration activities and will lead a comprehensive evaluation of all frontier basins in Nigeria.
The GMD went on to highlight that the NNPC Limited and its partners would deploy the requisite technology required to evaluate the Basin’s geological setting and determine the best approaches to ensuring greater prosperity for Nigerians.
Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority will begin licensing enforcement by June 2023. Announced by the West African country’s Minister of State for Petroleum Resources, H.E. Chief Timipre Sylva, the reinforcement of licensing comes as organizations in Nigeria continue to operate from outside the oversight of the regulatory agency. The engagement will attempt to encourage end-users to obtain the requisite petroleum storage licenses while defining licensing regimes, procedures, and standards for handling petroleum products. It was noted during the announcement that a stronger synergy between operators and businesses will play an important role in achieving a safer and cheaper energy operating environment.
Kenya
Kenya’s Cabinet Secretary for Energy and Petroleum, H.E. Davis Chirchir, has unveiled plans for the East African country to construct three additional ships to increase the shipment of oil products to Uganda via Lake Victoria. The Cabinet Secretary noted that construction of the jetty facility was completed in March 2018, which served to facilitate the transportation of petroleum products from the country’s state-owned Kenya Pipeline Company’s Kisumu Depot to Uganda. Delays in the construction of Uganda’s off-loading jetty, however, have resulted in the postponement of operations, which recently began in January 2023.
The Cabinet Secretary highlighted that the facility is poised to support the export needs of the Democratic Republic of Congo, South Sudan, Burundi, and Rwanda, while indicating that the implementation of three additional ships will reduce congestion and improve the reliability of petroleum supply to Kenya’s neighboring countries.
Global
Oil prices fell in Asian trade on 25 May amidst growing pressure from a strong U.S. dollar, while uncertainty over the U.S. debt ceiling continues to persist as the country’s deadline to reach a deal grows closer. Brent crude futures fell by 0.2% to $78.16 per barrel, while West Texas Intermediate crude futures fell 0.4% to $74.06 per barrel.
Meanwhile, crude prices saw some profit-taking as investors capitalized on the resource’s three-week highs in the previous session. The surge in prices was driven by expectations of tighter U.S. supplies as the country’s travel season approaches as well as by cautionary statements from Saudi Arabia’s Minister of Energy, Prince Abdulaziz bin Salman Al Saud, who warned against shortening oil. Other factors included a resurgence of COVID-19 cases in China, which resulted in apprehensions regarding future disruptions to economic activity in the country, which serves as a significant oil importer. Exacerbating doubts, the outbreak in China coincided with a series of indicators that suggest economic recovery in the world’s second-largest economy was losing momentum, casting uncertainty over projections of record-high oil demand driven by China this year.
