Monday, March 17, 2025
Thursday, March 13, 2025
Wednesday, March 12, 2025
Tuesday, March 11, 2025
African national oil companies (NOCs) partnering with independents to drive E&P
Africa’s national oil companies (NOC) are moving beyond operating as state-representatives by transforming themselves into competitive upstream players. By strengthening their balance-sheets through partial privatization, transferring their regulatory roles to independent entities and acquiring more assets, NOCs are emerging as strong partners for foreign firms.
Boosting production
Major oil producers in Africa are striving to boost production and NOC-IOC collaboration is at the forefront. Libya’s NOC is working with IOCs Repsol, bp, TotalEnergies, ConocoPhillips and more to increase output to two million barrels per day (bpd). In collaboration with the NOC, TotalEnergies has achieved a 20% increase in production at the Waha field; Repsol plans to drill nine new prospects in 2025; while Eni is planning four exploration wells in 2025. Algeria’s Sonatrach will increase hydrocarbon production by 2.5% this year, actively pursuing international partnerships following a revision of its Hydrocarbons Law in 2029. Negotiations are underway with ExxonMobil and Chevron to boost exploration. These efforts reflect a broader trend across the continent, where NOCs are leaning on foreign partnerships to advance oil and gas production.
Advancing gas monetization
Amid a surge in gas monetization, Africa has emerged as a major LNG producer. Collaboration between NOCs and IOCs have been at the forefront of this gas drive, leading to the emergence of new LNG exporters. Senegal’s Petrosen and Mauritania’s SMH worked alongside bp and Kosmos Energy to develop the Greater Tortue Ahmeyim LNG project – situated on the maritime border of the two countries and producing first LNG in January 2025. Mozambique’s ENH is working closely with foreign operators to develop several LNG projects, including TotalEnergies (Mozambique LNG); ExxonMobil (Rovuma LNG) and Eni (Coral South and Coral North). The 3.4 mtpa Coral South FLNG project has been operating since 2022 while ExxonMobil plans to make FID on Rovuma LNG in 2026.
The Tanzania Petroleum Development Corporation is developing the Tanzania LNG project, working with Shell and Equinor to monetize resources in Blocks 1, 2 and 4. While development has been delayed, the operators remain committed to collaboratively bringing the project online. In Angola, which has been an LNG producer since 2013, the NOC Sonangol is working with its New Gas Consortium partners Azule Energy, Cabinda Gulf Oil Company and TotalEnergies to increase LNG production capacity. The partners completed the offshore platform for Angola’s first non-associated gas project in February 2025, with production on track for early-2026.
Unlocking new E&P markets
A slate of discoveries in recent years have opened up new oil and gas plays across the continent. Following an increase in its oil and gas budget from $120 million to $246 million for the 2024/2025 period, the Uganda National Oil Company (UNOC) is driving exploration across underexplored areas in the country. In partnership with TotalEnergies and CNOOC, the company will start production at the Kingfisher and Tilenga oilfields in 2025. UNOC is also advancing exploration in the Moroto-Kyoga basins, with preliminary studies aimed at uncovering new oil fields.
In Namibia, NAMCOR is working with IOCs toward first oil production from the Orange Basin by 2029. Major projects include the Mopane field, which made its third discovery last month, and the Venus field, which targets FID in 2026. The company aims to secure higher stakes in future oil and gas projects – increasing its share from the minimum 10% to between 20-30% - underscoring a commitment to greater participation in field development.
Meanwhile, the South Africa National Petroleum Company (SANPC) – launched in September 2024 – strives to facilitate greater investment in exploration, natural gas monetization and infrastructure development. While major gas deposits were found in the Outeniqua Basin in 2019 and 2020, operational challenges have impacted development. The SANPC seeks to address these challenges through IOC collaboration and foreign investment. The company also strives to unlock the potential of the Orange Basin.
“African NOCs are driving the continent’s next wave of innovative oil and gas developments. By partnering with global operators and strengthening their operational capacity, NOCs are not only driving projects forward but showcasing the competitiveness of African operators,” states Tomás Gerbasio, VP Commercial and Strategic Engagement, African Energy Chamber.
Monday, March 10, 2025
ADNOC looks to purchase U.S. natural gas fields as part of expansion strategy
(Bloomberg) – The United Arab Emirates’ biggest oil company is seeking to buy its first natural gas producing fields in the U.S. to deepen its presence in the country, according to people familiar with the matter.
Abu Dhabi National Oil Co. wants the deals to complement its recent acquisitions of chemical plants and liquefied natural gas export facilities in the U.S., said the people, who asked not to be identified discussing confidential information.
ADNOC CEO Sultan Al Jaber is set to outline the government-owned producer’s investment strategy, including a U.S. focus, during a speech at the CERAWeek by S&P Global energy conference in Houston on Tuesday, according to some of the people. He’ll then visit Washington, DC for meetings related to both his roles at ADNOC as well as his position as minister of industry and advanced technology.
The UAE’s approach is likely to appeal to U.S. President Donald Trump’s drive to attract investment to America and boost energy production. Emirati companies have discussed building data centers in the U.S. and the two countries are cooperating in technology and AI initiatives. Firms from Japan to India have said they’re looking for more energy deals.
It’s not yet certain if ADNOC has a specific acquisition target, or if the company will end up making an offer for an asset. ADNOC declined to comment.
The company’s interest in gas producing assets comes at a time market-watchers are expecting a slowdown in dealmaking in U.S. upstream assets, particularly in the prolific shale industry as some of the best targets have already been snapped up. Still, in the first month of the Trump administration, the appetite for deals was showing some signs of revival.
Buying into gas-producing fields would give Adnoc access to both fuel and feedstock for its chemicals plants and LNG export facilities. It would also benefit from any increases in local gas prices, hedging its exposure as a buyer of the fuel.
Friday, March 7, 2025
Thursday, March 6, 2025
Middle East oil prices drop as OPEC+ decision rattles market
(Bloomberg) – Oil prices in the Middle East tumbled as the prospect of higher supplies from OPEC+ sparked a selloff in the region’s crudes.
The cost of Oman crude on the Gulf Mercantile Exchange slipped below Brent on Tuesday for the first time since late 2024, according to data compiled by Bloomberg. That marks the end of the Middle Eastern grade’s longest run of premiums over the global benchmark since 2023.
OPEC+ jolted the global oil market this week, saying it would proceed with a plan to revive halted production in tranches from April. The decision — which over time may expand its supplies by more than 2 million barrels — ran counter to most analysts’ expectations. The shift helped to drag futures broadly lower, adding to investors’ concerns just as they dealt with escalating trade tensions.
Traders flagged oversupply concerns stemming from the OPEC+ supply plan, as well as from the possibility of a change in Washington’s stance toward tough sanctions on Russia. Meanwhile, sensitive supplies of Iranian and Russian crudes continue to flow to customers in China, albeit with some hurdles.
Key timespreads that gauge the health of the region’s Dubai benchmark also slumped. The difference between the second- and third-month contracts narrowed to just 38 cents on Tuesday, compared with $2.55 in late January, according to data from broker PVM Oil Associates Ltd.
The move indicates cooling concerns about tight supply, and is a sign that the bumper premiums seen in Middle Eastern markets after US sanctions on Russian and Iranian oil earlier this year aren’t being sustained.
At that time, there was a scramble for alternative crudes from the Middle East that ultimately spurred some of the biggest price increases for regional producers in years. That rally didn’t endure, and now those contracts are the most actively traded, compounding recent declines.
Weaker timespreads have weighed on Dubai more than Brent, causing the differential between the London and Middle East marker — known as the EFS — to widen to 84 cents a barrel versus 31 cents last week.
Those moves have forced the window for arbitrage cargoes from Europe
and the US to Asia to “slam shut”, according to Neil Crosby, an analyst
at Sparta Commodities.
Wednesday, March 5, 2025
Tuesday, March 4, 2025
Monday, March 3, 2025
Subscribe to:
Posts (Atom)