South Africa’s industrial gas users are planning to form a company to secure their supply after Sasol Ltd., the sole provider, announced it will halt gas flow in 2026. Sasol has been supplying gas to customers through the 865-kilometer Rompco pipeline from its fields in Mozambique. However, the company has stated it will stop the supply in two years, prompting concerns among industrial users. The Industrial Gas Users Association of Southern Africa, which includes members
The US International Development Finance Corporation (DFC) has approved a loan of up to $99 million to finance Mozambique’s first utility-scale wind-power project. Alongside this loan, DFC will provide $80 million in political risk insurance to Globeleq Africa, the developer of the 120-megawatt project near Namaacha in southern Mozambique, according to a statement from the lender on Tuesday. The project will require approximately $268 million in total funding, as noted on the DFC’s website. Mozambique,
Nigeria’s daily oil production for June saw a modest increase, rising by 25,000 barrels per day compared to the previous month. This uptick is a positive development amid a year marked by consistently declining oil production. According to the Nigeria National Petroleum Company Limited (NNPC), the country’s oil production has been in a state of emergency. The Organization of the Petroleum Exporting Countries (OPEC) reported in its Monthly Oil Market Report for June that Nigeria’s
Oil suppliers are increasingly suspending business with the Nigerian government due to escalating debts, which have reached as high as $6 billion. Sources indicate that the Nigerian National Petroleum Corporation (NNPC) owes oil suppliers payments dating back to January, with debts originally reported at $4 billion now doubling. A report by Reuters highlighted the significant debt the Nigerian government owes to oil suppliers, exacerbated by the NNPC’s struggle to manage the disparity between fixed domestic
Kenya has increased the bond fee for fuel consignments destined for Uganda from $15 million to $45 million at the VTTI facility in Mombasa. This higher bond fee is expected to impact Uganda’s direct fuel import scheme, potentially making fuel more expensive for Ugandan consumers. Both Kenya and Uganda already have the highest fuel prices in East Africa, with Uganda relying on direct importation to mitigate costs. Currently, a litre of diesel costs $1.37 in
As Uganda edges closer to becoming an oil-producing nation, activities related to the oil sector have intensified, including the taxation of oil and associated goods. According to a recent report by Accountant General Lawrence Semakula, these levies have significantly contributed to the country’s overall revenue. The Ugandan newspaper, The Monitor, reported that Uganda generated an additional Shs44 billion from oil tax revenues during the financial year ending June 30, 2023. The Petroleum Fund Report for
Oando Energy Resources has urged Nigeria to actively extract its abundant crude oil reserves to drive socio-economic development and industrialization, despite global pressures for an energy transition. In addition, the company emphasized the importance of utilizing Nigeria’s vast proven and unproven natural gas reserves, which amount to hundreds of trillion cubic feet (tcf), to support sustainable development. Dr. Ainojie Irune, the Executive Director of Oando Plc and Chief Operating Officer of Oando Energy Resources, made
TotalEnergies has notified South Africa’s petroleum regulator of its intention to withdraw from the 11B/12B offshore gas field. In 2019, TotalEnergies discovered two significant gas deposits in Block 11B and 12B off the southern coast of South Africa. The decision to withdraw is a significant setback for the country, which had hoped to utilize the gas to supply the dormant national gas-to-liquid refinery in Mossel Bay. Negotiations over gas pricing have stalled for years, while
Shell is pursuing government authorization for a new drilling project off the western shores of South Africa. According to a draft scoping report from environmental consultancy SLR, Shell plans to drill up to five wells in the region. The company aims to carry out exploration and appraisal activities as oil companies shift their focus south of Namibia, where recent discoveries in the Orange Basin promise further potential finds. The Orange Basin, extending into South African
Nigeria’s new Dangote oil refinery is significantly increasing gasoil exports to West Africa, capturing market share from European refiners, according to traders and shipping data. Constructed at a cost of $20 billion by Africa’s richest man, Aliko Dangote, on the outskirts of Lagos, the refinery is currently producing a lower grade of gasoil than anticipated. This is due to awaiting the restart of units necessary for producing cleaner fuels, prompting the refinery to seek buyers
