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Tanzania positioned as LNG hub, BG Group says

BG Group said a test from an appraisal well at the Mzia discovery off the coast of Tanzania yielded a sustained gas flow rate of 101 million cubic feet per day. A similar well last year flowed at 57 million cubic feet per day. BG Group Chief Operating Officer Sami Iskandre said the results are a "critical factor as we progress design of the upstream production facilities and infrastructure" tied to liquefied natural gas development. Last year, energy consultant group Wood Mackenzie published a report saying Tanzania was a part of a growing number of emerging producers in East Africa. The report said output from Tanzania could help regional production increase from the current rate of 500,000 barrels of oil equivalent per day to 1.5 million barrels of oil equivalent. BG Group said test results from offshore developments "provided further support for a hub development to supply a potential […]

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Shell Agrees to Sell Some Nigeria Oil Blocks

LONDON–Royal Dutch Shell PLC said Wednesday it had agreed to sell some of the oil blocks in Nigeria previously earmarked for disposal as the Anglo-Dutch oil group moves forward with its divestment program. Shell said last year it wanted to divest four oil licenses and a pipeline in Nigeria’s Niger Delta, where sabotage and oil theft has dogged oil companies working in the region. "We have signed sales and purchase agreements for some of the oil mining leases but not all that we are seeking to divest," a Shell spokesman said, without providing any details. The sale process "hasn’t yet concluded," the spokesman said. Shell remained committed to Nigeria where it plans to retains offshore production, he said. The divestment, if completed, would be part of $15 billion worth of assets Shell wants to sell by the end of 2015 as it seeks to focus on its more profitable […]

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European refiner squeeze seen in W. African crude changes

HOUSTON, Aug. 27 08/27/2014 European refining is pivotal in “a second wave of structural changes” pummeling West African (WAF) crude oil prices in response to growing production of light oil in North America, notes a report from the Oxford Institute for Energy Studies, London. “In a way, WAF has become the swing barrel heading into North America,” write Bassam Fattouh, the institute’s director, and Amrita Sen, chief oil analyst at Energy Aspects. Attractiveness in North America of light WAF crudes depends strongly on price differentials between West Texas Intermediate and Brent crude, they point out. In the first wave of structural change for WAF, rising production of light crude from tight-oil plays backed out imports of WAF crude on the US Gulf Coast, which fell from a high above 1.3 million b/d in 2007 to zero at the end of last year, the analysts note. Meanwhile, growth of railroad […]

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Shell-led group close to selling Nigeria oilfields for $5bn

(FILES) This file photo taken on May 18, 2005 shows Shell’s major oil and gas terminal on Bonny Island in southern Nigeria’s Niger Delta. Nigeria has overtaken South Africa as the continent’s largest economy with a GDP of $453 billion in 2012, officials said on April 6, 2014. The figure is based on a long-overdue rebasing of Nigeria’s gross domestic product to reflect changes in the structure of production and consumption, and compares with South Africa’s 2012 result of $384 billion. AFP PHOTO / PIUS UTOMI EKPEI A Royal Dutch Shell -led consortium is close to selling several Nigerian oilfields for about $5bn to domestic buyers, as foreign companies retreat from sub-Saharan Africa’s oldest oil industry. The price tag for the four oilfields and a key pipeline co-owned by Shell, France’s Total and Eni of Italy has doubled since initial estimates towards the end of last year, highlighting the […]

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Libya crisis: US ‘caught off-guard’ by air strikes

Smoke rises from fighting at Tripoli airport. 23 Aug 2014 Life has come to a standstill in Tripoli after weeks of fighting Continue reading the main story US officials say Egypt and the UAE were behind air strikes in Libya last week that targeted Islamist militia. A senior US official told the BBC that Washington was not consulted about the attacks and was "caught off-guard". The air strikes on militia positions around Tripoli’s international airport were reportedly carried out by Emirati fighter jets using bases in Egypt. The Egyptian authorities have denied involvement, and there has been no direct comment from the UAE. The strikes failed to stop militias from Misrata and other cities, which operate under the banner Libya Dawn and include some Islamist groups, seizing the airport from a militia from Zintan that had controlled it since 2011. Damaged plane at Tripoli airport. 25 Aug 2014 Planes […]

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Arab Nations Strike in Libya, Surprising U.S.

CAIRO — Twice in the last seven days, Egypt and the United Arab Emirates have secretly launched airstrikes against Islamist-allied militias battling for control of Tripoli, Libya, four senior American officials said, in a major escalation of a regional power struggle set off by Arab Spring revolts. The United States, the officials said, was caught by surprise: Egypt and the Emirates, both close allies and military partners, acted without informing Washington, leaving the Obama administration on the sidelines. Egyptian officials explicitly denied to American diplomats that their military played any role in the operation, the officials said, in what appeared a new blow to already strained relations between Washington and Cairo. The strikes in Tripoli are another salvo in a power struggle defined by Arab autocrats battling Islamist movements seeking to overturn the old order. Since the military ouster of the Islamist president in Egypt last year, the new […]

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Hero of Libya’s revolution wages war on government

Salah Badi has a reputation for resorting to other means when politics do not go his way. A hero of the 2011 uprising against Muammer Gaddafi and head of a militia affiliated with the coastal city of Misurata, the former member of parliament is now waging war in the capital, Tripoli, as he tries to maintain the dominance of Islamists – and his home town – in the face of overwhelming voter opposition to his agenda in June 25 general elections. More On this topic IN Middle Eastern Politics & Society “He reflects a certain component of Libyan politicians who see themselves as still fighting out the revolution,” said Claudia Gazzini, Libya researcher for the International Crisis Group. “They don’t care that they’re not popular. They see themselves as righteous defenders of Libya and saviours of a Libya that is gradually returning into the hands of the former regime.” […]

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Libya Officials Seek Help as Rifts Deepen Amid Militia Violence

Libya ’s outgoing parliament defied its successor by naming an alternative premier, while government officials called for international help amid growing violence between rival militias. The General National Congress, the legislature that has refused to disband even after a new one was elected in June, invited Omar El-Hassi to form a salvation government during a meeting yesterday in the capital, Tripoli. The congress, where Islamists are among the strongest factions, also announced a “public mobilization” in all institutions and the highest level of security alert, the official news agency Lana said. The newly elected parliament has been meeting in the east of the country instead of Tripoli, the seat of the outgoing legislature. El-Hassi was nominated as a rival to Prime Minister Abdullah Theni, whose house was set ablaze by militia fighters yesterday, according to Al-Arabiya television. The political schisms and spread of violence highlight the lack of central […]

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Rockets Target Lifeline Airport in Eastern Libya

Plumes of black smoke can be seen after clashes between the Benghazi Revolutionaries Shura Council and fighters of renegade general Khalifa Haftar, as they each attempt to seize control of the airport from the council in Benghazi, Libya, Aug. 23, 2014. Reuters August 25, 2014 9:32 AM BENGHAZI, LIBYA— Attackers fired rockets at eastern Libya’s Labraq airport on Monday, its director said, targeting one of the oil producer’s few functioning air hubs as violence between armed groups escalates. The airport east of the city of Benghazi has become a major gateway into Libya since Egypt and Tunisia canceled almost all flights to the capital Tripoli and the west of the country last week, citing security reasons. The North African nation has descended into anarchy with a weak government unable to control fighters, who helped topple strongman Moammar Gadhafi in 2011 but now vie for control of territory and resources. […]

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Libya Says Waha Oil Field Resumes Operations

LONDON—Libya said Monday normal operations had resumed at the giant Waha oil field as the country’s output jumps in contrast with mounting violence in urban centers. The latest step in Libya’s oil recovery contrasts with claims by an Islamist militia to have taken over of Tripoli’s airport over the weekend. Speaking to The Wall Street Journal, Mohamed el-Harari, spokesman for the state-owned National Oil Co., said operations had resumed earlier Monday at Eastern Libya’s Waha oil field, paving the way for a return to exported production later this week. Waha, which normally produces 160,000 barrels a day, supplies crude to the Es Sider terminal, which restarted exports using stored oil last week after a year-long interruption. The Waha field, which is partly owned by U.S. companies ConocoPhillips , Hess Corp. and Marathon Oil Corp. , has kept producing small quantities of oil for its own maintenance, according to an […]

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Libya has two governments, assemblies as chaos spreads

BENGHAZI Libya/CAIRO (Reuters) – The Libyan parliament that was replaced in an election in June reconvened on Monday and chose an Islamist-backed deputy as prime minister, leaving the chaotic country with two rival leaders and assemblies each backed by armed factions. The election was meant draw a line under another incidence of competing prime ministers in May and allow nation building to being to try to quell three years of spreading violence since veteran ruler Muammar Gaddafi was ousted. But the old General National Congress (GNC), where Islamists had a strong voice, has refused to acknowledge the legitimacy of its successor assembly, the House of Representatives, which is dominated by liberals and federalists. The GNC reconvened after armed factions from the western city of Misrata forced a rival faction from Zintan out of Tripoli’s main airport on Saturday after a month of fighting that has come to symbolize the […]

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Libya Islamists Seize Tripoli Airport as Parliament Duel Set

An alliance of Islamist militias said it wrested control of Tripoli’s international airport from a rival force after weeks of fighting that triggered an exodus of foreigners and threatened to plunge Libya deeper into chaos. Libya’s defunct, Islamist-dominated parliament said it would temporarily resume its sessions, the state-run Libya News Agency reported, a move that may set the stage for dueling legislatures amid a leadership vacuum. The fighting has battered Libya, undercut efforts to revive oil output in the OPEC member and dimmed hopes for a transition to democracy. It has sparked concern the nation, led by a largely toothless central government, will descend into anarchy and emerge as little more than a failed state controlled by militias. The announcement of the airport’s capture by Fajr Libya, or Libya Dawn, came hours after warplanes struck Islamists near and around the airport, killing at least 13 people and wounding 30 […]

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Libya’s neighbors fear spillover of violence

CAIRO (AP) — Egypt’s foreign minister has called for an international push to disband militias in neighboring Libya, where weeks of inter-militia fighting has wreaked havoc in the country. Sameh Shukri says the escalation of violence in oil-rich Libya poses a threat to the entire region. He is calling for a joint effort to disband all militias, "without exception." The Egyptian top diplomat spoke Monday at a Cairo gathering of Libya’s neighbors. It was attended by Tunisia, Algeria, Sudan and Chad. The meeting comes as Islamist-led militias in the Libyan capital say they consolidated their hold on Tripoli and its international airport, driving out rivals to the city’s outskirts after battles that largely destroyed the strategic hub. It’s the worst violence in Libya since the 2011 downfall and killing of dictator Moammar Gadhafi.

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Libya's neighbors fear spillover of violence

CAIRO (AP) — Egypt’s foreign minister has called for an international push to disband militias in neighboring Libya, where weeks of inter-militia fighting has wreaked havoc in the country. Sameh Shukri says the escalation of violence in oil-rich Libya poses a threat to the entire region. He is calling for a joint effort to disband all militias, "without exception." The Egyptian top diplomat spoke Monday at a Cairo gathering of Libya’s neighbors. It was attended by Tunisia, Algeria, Sudan and Chad. The meeting comes as Islamist-led militias in the Libyan capital say they consolidated their hold on Tripoli and its international airport, driving out rivals to the city’s outskirts after battles that largely destroyed the strategic hub. It’s the worst violence in Libya since the 2011 downfall and killing of dictator Moammar Gadhafi.

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Libya’s Islamist Militias Claim Control of Tripoli

Smoke fills the sky over Tripoli after fighting between Dawn of Libya and rival militias Aug. 23, 2014. European Pressphoto Agency Libya’s Islamist militias said Sunday they have consolidated their hold on Tripoli and its international airport, driving out rival militias to the outskirts of the capital after a weeks-long battle for control of the strategic hub. The umbrella group for Islamist militias, calling itself Dawn of Libya, said it has also taken hold of other locations in the capital that were controlled by rival militias. The move draws to a close one chapter in a prolonged confrontation between the Islamist-allied militia, largely from the city of Misrata, and the powerful militia from the western mountains of Zintan. The fight has largely destroyed the airport and scarred the capital, prompting diplomats, foreign nationals and thousands of Libyans to flee. The violence in Libya is rooted in the empowerment of […]

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Strife in Libya Could Presage Long Civil War

TRIPOLI, Libya — “The fire is inside the airport!” a militiaman cried, as he fired an antiaircraft cannon on the back of a pickup truck toward the runway of Libya’s main international airport. “God is great, the flames are rising!” “Intensify the shooting,” responded his commander, Salah Badi, an ultraconservative Islamist and former lawmaker from the coastal city of Misurata. Captured on video by the proud attackers just one month ago, Mr. Badi’s assault on Libya’s main international airport has now drawn the country’s fractious militias, tribes and towns into a single national conflagration that threatens to become a prolonged civil war. Both sides see the fight as part of a larger regional struggle, fraught with the risks of a return to repressive authoritarianism or a slide toward Islamist extremism. Three years after the NATO-backed ouster of Col. Muammar el-Qaddafi, the violence threatens to turn Libya into a pocket […]

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Algeria Postpones Oil Bids to Sept. 30

LONDON—Algeria has delayed the deadline for its next oil-licence bids by about four weeks, people familiar with the matter said, as companies complain about investment conditions despite recent oil-sector reform. The date set for the submissions to the tender for oil and gas blocks has been reset to Sept. 30 from Sept. 4 previously, people familiar with the matter said. The development comes despite a new Algerian law—passed last year—that improves revenue sharing for companies that invest in difficult blocks, such as the country’s sizable natural-gas shale resources. One main concern for bidders is a clause that allows national oil company Sonatrach to make investment decisions without consulting its foreign partners, according to people at international companies involved in the licensing round. But an Algerian official said the delay was due to the need to handle "numerous applications" for the licensing round. At previous bidding rounds, Algeria has struggled […]

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Surge in Investment Recharges India’s Sputtering Power Sector

ByKenan Machado A pedestrian walked past a pole hosting mangled electricity wires at a slum in New Delhi in 2009. Agence France-Presse/Getty Images MUMBAI—Investors are ploughing money into India’s energy sector again, betting that there are brighter days ahead as the country’s new government clears the path for power producers and distributors. India’s utilities and energy companies—which have struggled for years with high government restrictions and low returns—have attracted a total of $2.61 billion in investment so far this year, according to data from Dealogic. The last time the sector attracted so much money was before the global financial crisis, when $2.67 billion was invested over the same period in 2006. “People expect the economy to grow,” said Tan Cheng Guan, an executive vice president at Singapore utilities company Sembcorp Industries Ltd. which invested $204 million this year, buying stakes in two Indian power plants . India needs its power […]

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Israel Nears Gas Sales to Egypt as Mideast Unrest Flares

In the midst of some of the worst Middle East tensions in a decade, one-time enemies Egypt and Israel are negotiating deals that may mean the sale of $60 billion in Israeli natural gas to liquefaction plants in Egypt. The talks come as Israel resumes air strikes on Gaza after Hamas, which the U.S. and the European Union classify as a terrorist group, fired rockets following a breakdown in Egypt’s efforts to broker a cease-fire. The move is all the more improbable because Egypt — little more than a year ago — was under the sway of the Muslim Brotherhood, which had begun to steer the country away from viewing Israel as a trading partner. Noble Energy Inc. (NBL) and units of Israel’s Delek Group Ltd. (DLEKG) plan to deliver as much as 6.25 trillion cubic feet of gas from the Tamar and Leviathan offshore fields to LNG facilities […]

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In the dark: Egypt’s electricity deficit worsens as shortages hit five hours a day

The deficit for fuel supplied to stations this month increased to approximately 8m cubic metres of gas and equivalent daily compared to 7m last month. The deficit for fuel supplied to stations this month increased to approximately 8m cubic metres of gas and equivalent daily compared to 7m last month. More > , The electricity deficit reached approximately 6,180MW on Monday, resulting in power outages for periods exceeding five hours daily, said an official at the Ministry of Electricity. A 1900MW portion of the deficit resulted from a shortage of 8m cubic metres of gas and equivalent while another 2500MW was attributed to poor technical conditions at power stations, partially a result of failure to carry out the necessary maintenance and repair operations. The deficit increased by approximately 1700MW as a result of a rise in the sulphur content of fuel oil supplied to the plants. This led to clogs in fuel oil […]

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In the dark: Egypt's electricity deficit worsens as shortages hit five hours a day

The deficit for fuel supplied to stations this month increased to approximately 8m cubic metres of gas and equivalent daily compared to 7m last month. The deficit for fuel supplied to stations this month increased to approximately 8m cubic metres of gas and equivalent daily compared to 7m last month. More > , The electricity deficit reached approximately 6,180MW on Monday, resulting in power outages for periods exceeding five hours daily, said an official at the Ministry of Electricity. A 1900MW portion of the deficit resulted from a shortage of 8m cubic metres of gas and equivalent while another 2500MW was attributed to poor technical conditions at power stations, partially a result of failure to carry out the necessary maintenance and repair operations. The deficit increased by approximately 1700MW as a result of a rise in the sulphur content of fuel oil supplied to the plants. This led to clogs in fuel oil […]

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Libya's Largest Terminal Resumes Oil Exports

A view of the anchorage at the Es Sider export terminal in Ras Lanuf, west of Benghazi in March, 2014. Reuters LONDON—Libya said Wednesday it was resuming oil exports from its largest terminal after a year-long stoppage, as its oil industry manages to recover despite intense fighting in large cities. But new uncertainty emerged later in the day as Libya’s de facto oil minister said he was being replaced. Italian tanker Maria Bottiglieri, which arrived overnight, is set to leave later Wednesday from the Es Sider terminal with about 600,000 barrels on board, Mohamed el-Harari, a spokesman for the state-owned National Oil Co. told The Wall Street Journal. Mr. el-Harari said the vessel was chartered by Austria’s OMG AG and is bound for the Italian port of Trieste, confirming information from shipping and oil managers. The terminal, which has an export capacity of 350,000 barrels a day, hasn’t shipped […]

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Libya’s Largest Terminal Resumes Oil Exports

A view of the anchorage at the Es Sider export terminal in Ras Lanuf, west of Benghazi in March, 2014. Reuters LONDON—Libya said Wednesday it was resuming oil exports from its largest terminal after a year-long stoppage, as its oil industry manages to recover despite intense fighting in large cities. But new uncertainty emerged later in the day as Libya’s de facto oil minister said he was being replaced. Italian tanker Maria Bottiglieri, which arrived overnight, is set to leave later Wednesday from the Es Sider terminal with about 600,000 barrels on board, Mohamed el-Harari, a spokesman for the state-owned National Oil Co. told The Wall Street Journal. Mr. el-Harari said the vessel was chartered by Austria’s OMG AG and is bound for the Italian port of Trieste, confirming information from shipping and oil managers. The terminal, which has an export capacity of 350,000 barrels a day, hasn’t shipped […]

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Angolan oil flow seen above 2 million b/d

HOUSTON, Aug. 20 08/20/2014 Angola will produce 2.1-2.2 million b/d of crude oil by 2016, predicts Moody’s Investors Service. In a credit analysis of the Angolan government, Moody’s cited deepwater projects due on stream soon in the Lower Congo basin and the government’s plans to offer deep and ultradeepwater blocks to international operators next year in the southern Kwanza basin and unexplored Namibe basin. The Kwanza basin, Moody’s points out, has presalt geology similar to that of Brazil’s Campos and Santos basins ( OGJ Online, Dec. 11, 2011 ). Important to the imminent production gain is Total SA’s Kaombo project in 1,400-1,900 m of water in the Lower Congo basin. Total and its partners decided to proceed with the $16-billion development in April ( OGJ Online, Apr. 14, 2014 ). That decision, Moody’s said, boosts Angola’s production prospects. “First, it signals investors’ positive assessment of Angola’s long-term offshore prospects, […]

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Libya Oil Output Rises as Fields Ramp Up Production

LONDON—Libya’s production has jumped to 550,000 barrels a day, state-owned National Oil Co. said Monday, as production ramps up at fields across the country . The recovery of Libya’s oil sector is in contrast with continuous fighting between militias in the capital of Tripoli—which is far from Libyan oil fields. NOC spokesman Mohamed el-Harari said Libya is now producing 550,000 barrels a day, compared with 400,000 barrels a day last week. The number remains less than half the country’s production capacity of about 1.6 million barrels a day. Mr. el-Harari said the increase was due to a ramp up in production, including in Sharara—the largest field in the country located in Western Libya—and Misla and Sarir; two large fields in the east. The news follows last Wednesday’s resumption of exports by the key eastern terminal of Ras Lanuf after a year-long interruption. Libya’s largest oil port, Es Sider, is […]

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Exxon Ends Oil Search With Total in South Sudan as War Rages

Exxon Mobil Corp. (XOM) , the U.S.’s largest oil company, ended exploration plans with Total SA (FP) in South Sudan, Total and the government said, a sign of faltering investor confidence in the African nation as a civil war enters its eighth month. Exxon in April didn’t renew an agreement with Total to negotiate for joint-exploration over parts of a 120,000 square-kilometer (46,300 square-mile) concession in Jonglei state, Total spokeswoman Anastasia Zhivulina said in an Aug. 12 e-mailed response to questions. Total is still bidding to explore in partnership with Kuwait’s state-owned Kuwait Foreign Exploration Petroleum Co. she said. Exxon spokesman Patrick McGinn said by e-mail that the company doesn’t comment on specific ventures. “Losing the American oil company’s interest is definitely a blow for the future prospects of South Sudan ’s oil industry,” Luke Patey, a researcher on the country’s industry at the Danish Institute for International Studies, […]

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Libya Plans to Resume Exports From its Largest Oil Port Next Week

CAIRO—Libya plans to restart exports from its largest oil port Es Sider next week after a one-year interruption, people familiar with the matter said Wednesday. The news, which comes after shipments restarted this week from another key terminal, Ras Lanuf, shows Libyan oil exports are set to gain momentum after a slower-than-expected restart. On July 1, rebels who had occupied Ras Lanuf and Es Sider in Eastern Libya for nearly a year agreed to let oil exports resume after a deal with the central government. Despite oil prices falling by $5 a barrel amid expectations of increased exports, they had not restarted from the two ports until now as Libya struggled to find buyers. But Libya’s state-owned National Oil Co. is planning to restart exports at the Es Sider port, which can load 340,000 barrels a day, next week, according to people familiar with the matter. The first 600,000 […]

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Libya Restarts Third-Biggest Port as IEA Warns of Surplus

Libya loaded the first oil cargo from the port of Ras Lanuf since it was closed by rebels a year ago, just as the International Energy Agency said the North African nation is struggling to find buyers in an oversupplied market. A tanker will soon leave port with 680,000 barrels of crude and head to Italy , Ibrahim Al-Awami, the Oil Ministry’s Director of Measurement, said by phone today from Tripoli. While state-run National Oil Corp. plans to double exports this month, crude traders are more concerned that the additional supply will depress prices than the risk of production being disrupted by further unrest, the IEA said. “Even though you have fighting in Tripoli, Libya seems to be able to provide volumes higher than the previous month’s,” Alexander Poegl, an analyst at JBC Energy GmbH in Vienna, said by phone. “Libya is one piece among a lot of pieces […]

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Egypt’s Suez Canal Expansion Plan Raises Some Questions

The Suez Canal–one of the world’s vital trading routes–is set for the first major expansion in its 145-year history. Egypt’s ambitious multi-billion-dollar plan, which could nearly double the waterway’s capacity to 97 passing ships a day by 2023, has been largely welcomed by shipping industry executives and economists, albeit with some skepticism. Sure, the expansion will help relieve bottlenecks. The Suez Canal, which connects the Mediterranean with the Red Sea, can mostly only facilitate one-way traffic–either ships heading north or south–as it is too narrow at some points for vessels to cross both ways. The new canal is expected to solve this problem, cutting the waiting time for ships to three hours from 11 hours. The waterway, however, won’t be deepened to allow fully-laden supertankers, which usually lighten their […]

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Nigeria: Shell Records Massive Oil Spill On Its Nembe Creek

A major oil spill has occurred at a Shell Petroleum Development Company of Nigeria, (SPDC), oil pipeline between the Santa-Barbara and Tego Rivers in Owuanga-Toru of Kula Kingdom in Akuku-Toru Local Government Area of Rivers State. The cause of the incident is yet to be ascertained as at press time but the company is pushing for investigation and mitigation exercise. Shell has confirmed the spill, which members of the affected communities described as "massive." "On August 6, 2014, the SPDC JV observed a leak on a section of the Nembe Creek Trunkline (NCTL) at Owangia community, Akuku-Toru LGA in Rivers State. "The impacted section has been shut down, preparatory to investigation into the cause of the leak and repairs. Some tools suspected to have been used for crude theft activities were recovered in the area," Shell Nigeria spokesman, Mr. Precious Okolobor said. Community secretary of Owuanga-Toru Community, Alabo Fiola, […]

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Libyan oil output highest since January

Libyan oil production is at its highest level since the beginning of the year, the Organization of Petroleum Exporting Countries said Friday. OPEC said in its latest monthly market report crude oil production from member states averaged 29.9 million barrels per day. Production fell primarily in member states Iraq and Angola, while production increased from Libya and Saudi Arabia. Libyan Prime Minister Abdullah al-Thinni told U.S. Secretary of State John Kerry in Washington his government "has managed to solve" the oil crisis plaguing what was once one of North Africa’s top oil producers. OPEC said in its market report Libyan crude oil production has doubled since June. "Libyan production rose past 500,000 barrels per day for the first time since January," the report said. OPEC data show Libyan crude oil production reached a post-war peak of around 1.4 million bpd in 2013, before starting a precipitous decline toward the […]

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Suez Canal Set for First Major Expansion

Egypt’s President Abdel Fattah Al Sisi signs a document at an event marking the announcement of plans for a major upgrade of the Suez Canal, in Cairo August 5, 2014. Reuters CAIRO—One of the world’s great trading routes, the Suez Canal, is set for the first major expansion in its 145-year history, if a planned multibillion-dollar investment by the Egyptian government goes ahead. Egypt’s President Abdel Fattah Al Sisi this week announced plans for a ‘new’ Suez Canal that will run in parallel to the current waterway, which provides a vital shipping link between Europe and Asia. The Egyptian plan, part of an $8.4 billion project to upgrade the Suez Canal, could raise its capacity to 97 passing ships a day by 2023, up from 49 currently. But while shipping industry executives have welcomed the idea of expanding the Suez Canal to help relieve bottlenecks, there are doubts over […]

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Israeli Billionaire Finds 3B Barrel Oil Reserve In Congo

An oil company owned by Israeli billionaire Dan Gertler said on Thursday it had discovered around 3 billion barrels of oil in the Democratic Republic of Congo, an amount similar to the proven reserves of oil producers Britain and South Sudan. The crude was discovered around Lake Albert on Congo’s eastern border with Uganda, Oil of DRCongo said in a statement. An analysis of seismic survey data "indicates around 3 billion barrels of oil in place", it said, although it was not yet clear what portion was recoverable. "These are very positive results from our extensive seismic campaign," said Giuseppe Ciccarelli, Oil of DRCongo’s CEO. "We continue to believe the project has the potential to provide significant revenues and multiple other benefits to the people of (Congo)." The nearby Ugandan blocks are estimated […]

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Contract let to return Nigerian refinery to nameplate capacity

Nigerian National Petroleum Corp. (NNPC), through a service provider, has let a contract to General Electric Co. to provide gas turbines to be used to generate a reliable, uninterrupted supply of power to NNPC’s refining complex in Port Harcourt, Nigeria, that would enable the complex to return to its full production capacity. GE will deliver three, 25-Mw, trailer-mounted TM2500+ aeroderivative gas turbines to GEL Utility Ltd., a subsidiary of independent power producer Genesis Electricity Ltd., with whom NNPC signed a 20-year power purchase agreement in November 2013 for the Port Harcourt refinery, GE said in an Aug. 4 news release. In addition to delivery of the gas turbines, whichwill provide both the baseload and backup power to support refining operations at Port Harcourt, the recent agreement also includes the future modernization of Nigeria’s other two existing refineries, GE said. The installation of the mobile gas […]

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Libya Says Tripoli Fuel-Tank Fire Under Control

A huge pall of smoke rises on the horizon after rockets fired by one of Libya’s militias struck and ignited a tank in the capital’s main fuel depot, in Tripoli, Libya, on Saturday, Aug. 2. European Pressphoto Agency A huge fire at Libya’s main fuel depot in the capital Tripoli is now under control, but the facility still faces real risks as militias continue to clash in the battle-torn nation, a spokesperson for the National Oil Corp., or NOC, said Wednesday The blaze was ignited near Tripoli airport Saturday when a missile strike from one of the militias fighting in Libya hit the depot, which contains 90 million liters (almost 24 million gallons) of fuel and cooking gas. "Eight fuel tanks were ablaze, but the situation is now under control and firefighters are watching closely to make sure that the fire doesn’t spread to other tanks," NOC spokesman Mohamed […]

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Shell gets new oil online in Nigeria

Royal Dutch Shell said Wednesday it started oil production from the first well at its deepwater Bonga North West development off the coast of Nigeria. "This is an excellent addition to our deep-water portfolio — a key growth theme for Shell’s world-wide upstream business," Andrew Brown , Shell’s director of international exploration and production, said in a statement . The entire Bonga prospect started oil and gas production in 2005 and was Nigeria’s first development in deep waters. Shell said the new start-up represents a significant step forward for the project. Oil from Bonga North West will be sent through a pipeline to a floating production, storage and offloading export facility near the Nigerian shore. At its peak, the facility is expected to process as much as 40,000 barrels of oil equivalent per day. Nigeria, a member of the Organization of Petroleum Exporting Countries, is the largest oil producer […]

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Oil crisis solved, Libya says

The Libyan government has managed to resolve its oil crisis and all ports are in operation, the Libyan prime minister said from Washington. Libyan Prime Minister Abdullah al-Thinni met with U.S. Secretary of State John Kerry in Washington for the U.S.-Africa Leaders Summit as his administration took steps to end a period of political change. The new parliament met for the first time Monday about 900 miles east of Tripoli, where pro-government forces are battling heavily armed militias. Thinni said he valued Washington’s role in helping bring stability to the region, including a decision to raid a vessel loaded with oil taken from rebel-held territory earlier this year. "As a result, the Libyan government has managed to solve the crisis of the oil," he said in a statement Monday. "We have four oil ports that are able to export oil." Data provided by the Platts energy news service show […]

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Egypt Has Ambitious Plan for Suez Canal Expansion

When the Suez Canal opened in 1869, it had taken hundreds of thousands of Egyptian workers 10 years to complete it. On Tuesday, President Abdel Fattah el-Sisi said he was ready to build another one. At a lavish groundbreaking ceremony that included a military air show and the symbolic detonation of demolition explosives, Mr. Sisi’s government announced an ambitious plan to build a new waterway that would expand the capacity of the existing canal while creating jobs and revenue for the government. Mr. Sisi set an equally ambitious timeline for the project, which would involve the digging or dredging of approximately 45 miles of earth and wetlands, saying the new waterway would open next year. “We are racing time, because we are very late,” he said. There has been talk for years of expanding the development along the canal, a crucial passage for international shipping that links […]

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Shell Starts Up Oil Production at Bonga North West

Royal Dutch Shell reported Wednesday that its Nigerian subsidiary, Shell Nigeria Exploration and Production Company, has started up oil production from the first well at the Bonga North West deep-water development off the country’s coast. Shell Upstream International Director Andrew Brown commented in a company statement: "This is an excellent addition to our deep-water portfolio – a key growth theme for Shell’s world-wide upstream business. It’s also good news for Nigeria, as it is a new source of oil revenues and strengthens Nigeria’s deep-water expertise, a key driver of economic development." The original Bonga project began producing oil and gas in 2005. It was Nigeria’s first deep-water development in water depths of more than 3,250 feet. Bonga North West is the next step in the project’s development.  The Bonga project, which began producing oil and gas in 2005, was Nigeria’s first deep-water development in water depths over 1,000 metres. […]

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Libyan responders flee fuel depot fire

A fuel fire near the international airport in Tripoli may be on the verge of creating a humanitarian and environmental disaster, the Libyan government said. The Libyan government said a fuel depot near the airport suffered a direct hit after militias armed with heavily artillery surrounded the area. "This led to the withdrawal of firefighters," Sameer Kamal, spokesperson for the Ministry of Oil, said Sunday . The spokesman said the smoke and fire could present a major threat to the surrounding area in Tripoli. At least 200 people have died as a result of fighting between Islamist militias and pro-government forces since July. Foreign governments, including the United States and European powers, have suspended diplomatic operations in Libya because of the recent outbreak of violence. The interim government in Tripoli said last week it needed outside help in controlling the violence. International forces intervened in Libya’s […]

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Libyan lawmakers elect judge as new speaker

Libyan lawmakers, gathered far from the country’s chaos and warring militias, have elected a judge as the new parliament speaker. Ageila Saleh Eissa narrowly defeated his rival for the post, Abu-Bakr Baeira, in a 77-74 vote late Monday night from among 158 lawmakers who convened the parliament’s inaugural session in the eastern city of Tobruk. Weeks of fighting in the capital, Tripoli, and the nation’s second-largest city, Benghazi, have killed more than 230 people and forced most foreigners and diplomats to leave Libya. Because of the violence in Tripoli and Benghazi, the parliament session was held in Tobruk, an anti-Islamist stronghold and a militia-free zone. Eissa is the country’s third parliament speaker since the downfall and killing of longtime dictator Moammar Gadhafi in the 2011 uprising and civil war. He held several judicial posts in the east under Gadhafi but his political affiliation is unknown. […]

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In Libya, Parliament Convenes Amid Battles

Libyan leaders, struggling to keep their country from spinning further out of control, convened a newly elected Parliament for its first session on Monday. But raging militia battles in Tripoli, the capital, and in Benghazi, the second-largest city, forced them to hold the meeting in Tobruk, a relatively stable port in the east. And a senior Egyptian political figure suggested on Monday that his country might intervene in Libya militarily if calm cannot be restored. The newly elected lawmakers vowed to prevent the collapse of their state. “We will prove to the world that Libya is not a failed country,” Abu Bakr  Bueira, the lawmaker presiding over the session, declared, according to news reports. Although the street fighting in Tripoli and Benghazi is driven mainly by local militia rivalries, it is converging into the same national conflict. Islamists and their tribal or regional allies are on one […]

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Tripoli Clashes Toll Rises by 22 as Libya Crisis Deepens

Britain dispatched its navy to evacuate its nationals from Libya as 22 other people were killed as a result of militia feuds near Tripoli’s international airport that have plunged the oil producer deeper into chaos. The U.K.’s move came as the government announced the latest death toll today, a day after most members of the North African country’s new legislature met in the city of Tobruk near the Egyptian border. It was their first meeting as a unit since elections were held to replace the General National Congress. The choice of venue for the House of Representatives’ first session, which was delayed until Monday, reflects concerns about the collapse of security in Tripoli and in Benghazi, the nation’s second-largest city. More than two weeks of fighting between rival militias, and pro- and anti-Islamists have left about 200 dead and hundreds more wounded, according to state media. The violence marks […]

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Libya Says Tripoli Fuel-Tank Fire Spreads, Warns of Disaster

Libya warned Sunday of the risk of a humanitarian and environmental disaster after eight fuel tanks caught fire amid heavy fighting near Tripoli’s international airport between rival militias, pushing the oil producer deeper into chaos. Rockets fired by one of Libya’s militias hit Tripoli’s main fuel depot near the airport Saturday, setting a gasoline tank ablaze, but firefighters deployed to tackle the fire were forced back by the militia fighting. The fire rapidly spread to seven other tanks, increasing the risk of an explosion at the site, which contains 90 million liters (almost 24 million gallons) of fuel and cooking gas. "Since the morning firefighters from Brega Petroleum Marketing Co. have been trying to enter the depot to control the fire […]

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British Citizens Flee Tripoli on Ship as 25 Libyans Are Reportedly Killed in Fighting

A British Navy ship on Sunday evacuated about 100 British citizens from the Libyan capital, Tripoli, as 25 Libyans were reported killed in the fighting between rival militias that has torn apart the city and destroyed its airport. The scenes of anxious foreigners fleeing by boat recalled the mayhem at the start of the Libyan uprising under Col. Muammar el-Qaddafi in 2011, though Tripoli residents say the violence has now become more severe than at any time during the revolt or since. What began three weeks ago as a relatively isolated battle for the airport has spread to round-the-clock skirmishes in pockets throughout the city. More than 200 are believed to have died in the fighting. The battle in the capital is part of a sharp escalation in a national struggle between the allies and opponents of the political Islamist movement. The contest is already dividing the […]

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Africa Oil State Hooked on U.S. Fuel: Chart of the Day

First the U.S. shale-oil boom took away Nigeria ’s biggest crude-export market. Now Africa ’s biggest economy is depending on American fuel to power its vehicles and planes. The CHART OF THE DAY shows how U.S. imports of Nigerian crude have almost converged with American sales of refined-petroleum cargoes like gasoline and kerosene shipped in the opposite direction. The U.S. gets less than 2 percent of its oil from Nigeria, compared with 7 percent in 2011, Energy Department data show. Nigeria imported more than half of its fuels from America at times in 2013, from less than a fifth three years ago, according to IHS Inc., a consulting firm. Surging oil output in the U.S., most of it banned from export under decades-old laws, hands refiners on the Gulf Coast inexpensive feedstock to process into cargoes such as gasoline for sale overseas. Nigeria’s growing dependence highlights its […]

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Risks Remain to Libya’s Oil Supply Despite Reopening of Ports, Fields

The reopening of Libyan oil fields and ports this month has been a key factor behind a steady fall in international oil prices recently, with U.S. prices falling to a four-month low on Thursday. But markets may be overlooking resurgent risks to the North African country’s oil supply. Over the past week fighting for control of the airport in Tripoli, Libya’s capital, has set ablaze part of a storage facility holding 90 million liters (almost 24 million gallons) of oil during the worst violence in the country since the 2011 civil war that led to the downfall of former leader Moammar Gadhafi. The oil tank blazes and fighting in Tripoli and the eastern city of Benghazi have led to "serious doubts" about […]

Posted On : Published By : Tom Whipple
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Risks Remain to Libya's Oil Supply Despite Reopening of Ports, Fields

The reopening of Libyan oil fields and ports this month has been a key factor behind a steady fall in international oil prices recently, with U.S. prices falling to a four-month low on Thursday. But markets may be overlooking resurgent risks to the North African country’s oil supply. Over the past week fighting for control of the airport in Tripoli, Libya’s capital, has set ablaze part of a storage facility holding 90 million liters (almost 24 million gallons) of oil during the worst violence in the country since the 2011 civil war that led to the downfall of former leader Moammar Gadhafi. The oil tank blazes and fighting in Tripoli and the eastern city of Benghazi have led to "serious doubts" about […]

Posted On : Published By : Tom Whipple