AFRICA’s biggest economy and its biggest oil producer is reeling from the downward spiral of the oil price. Just as politicians had started feeding from the national trough to support their ambitions for Nigeria’s elections, due to be held in February, the finance minister has warned that official perks will have to be cut and taxes raised on luxury goods such as cars and champagne. Wealthy Nigerians consume a lot of both.
The austerity measures come just as the nation heads for what is likely to be the toughest electoral battle yet for the ruling Peoples’ Democratic Party (PDP). It is now facing a tough opposition in the form of the All Progressives Congress, a coalition of three opposition parties and large numbers of defectors from the PDP. read more on BDLive
A COLLEAGUE in the oil and gas business often says the only thing that is certain about the oil price is that it will go up — or down.
The potential effect of falling oil prices — about 25% in just a few months — on Africa’s otherwise rosy oil and gas future was a key topic of conversation at last week’s Africa Oil Week event in Cape Town, a gathering of every big name in global oil, gas and related services.
The annual event highlighted the superb opportunities offered by the continent, not only in entrenched markets such as Nigeria, Equatorial Guinea and Angola, but also in Gabon’s deep-water terrain and the newer frontiers of East Africa, SA, Namibia and Egypt. Read more on BDLive
THE world’s largest non government-owned oil company, ExxonMobil, has warned Parliament that the proposed changes to the Mineral and Petroleum Resources Development Act would make South Africa less attractive for investment in its fledgling oil and gas sector.
Wednesday was the first of four days of public hearings scheduled by Parliament’s mineral resources committee, which is considering the proposed amendments to the act.
The main objectives of the amendments are to clarify ambiguities in the original act that was passed by Parliament in 2002. Read on BDLive >
Oiltanking Grindrod Calulo Holdings (OTGC), a subsidiary of Germany’s Oiltanking group, and Mining, Oil and Gas Services (MOGS) on Wednesday announced a joint venture (JV) agreement to construct a R2-billion commercial crude oil storage and blending terminal at the Saldanha Bay port.
The terminal would have a capacity of 13.2-million barrels, comprising twelve 1.1-million barrel concrete tanks. Read on Engineering News >
IT SHOULDN’T be much of a surprise that the first domestic concern emanating from the latest horrific attacks in Syria and the subsequent threat of action by the US is: what will the effect be on the petrol price?
The price of crude has come off slightly since Wednesday when it experienced its biggest rally in six months, reaching a six-month high of $114.35 following a statement by US President Barack Obama that the Syrian government would face “international consequences” for last week’s deadly chemical strike.
But tensions remain high.
Alarmist predictions put the price at anything between $120 and $150 a barrel if the uncertainty continues, and even higher if global supplies are disrupted. Read on BDLive >