OPEC joins U.S. in predicting stronger 2014 oil demand

World oil demand will rise slightly more than expected in 2014, OPEC said on Wednesday, becoming the second major forecaster this week to predict higher fuel use as economic growth picks up in Europe and the United States.

The Organization of the Petroleum Exporting Countries, in a monthly report, said global demand will rise by 1.09 million barrels per day (bpd) this year, up about 40,000 bpd from its previous forecast. The group, which pumps a third of the world’s oil, also sees potential for further rises.

“Given the improvement in OECD oil demand, the likelihood for upward adjustments for world oil demand growth in 2014 is currently higher than existing projections,” said the report by economists at OPEC’s Vienna headquarters.

OPEC’s report comes a day after the U.S. government’s Energy Information Administration raised its 2014 world oil demand growth forecast by a similar increment. Oil prices edged higher after it was released, with Brent crude trading near $109 a barrel.

Egypt to explore idea of buying gas from Cyprus

Egypt and Cyprus will look to cooperate in the field of hydrocarbons and the European nation could even export gas to the North African country, reports Cyprus News Agency.

According to the news agency, these issues were discussed between the Cypriot Minister of Energy Yiorgos Lakkotrypis and the Egyptian Minister of Petroleum Sherif Ismail in Nicosia on Friday.

“We agreed on the immediate establishment of a joint technical committee, which will look at possible ways of cooperation between the two countries,” said Lakkotrypis after the meeting.

Cyprus is turning to Egypt in an attempt to examine all possible options for the exploitation of hydrocarbon deposits found in its Exclusive Economic Zone, adds Cyprus News Agency.

Lakkotrypis said the since Egypt is facing shortage of natural gas as a result of growing domestic demand, it is finding it hard to meet its export contracts.

Egypt, he said, could probably be a potential buyer of Cyprus’ natural gas, reports Cyprus News Agency.

He added that the Technical Committee between Cyprus and Egypt will examine the technical and economic aspects of this possibility and of closer cooperation in general.

The committee will be set up immediately and the Minister expressed hope that in February it will have its first meeting in Cairo, says the news agency.

Block 12 Cyprus’ Exclusive Economic Zone (EEZ) could hold gas reserves between 3.6tcf and 6tcf with a gross mean resource of 5tcf, according to finding of Noble Energy, which operates the block with 70 percent stake.

Total E&P Cyprus Ltd has been granted a license for seismic exploration for oil and gas in block 10 and in parts of blocks 6, 7 and 11 of Cyprus’ EEZ, reports Cyprus News Agency.

Oil majors sell Nigerian stakes worth $6.5bn in 2013

International oil companies (IOCs) are divesting their stake in Nigerian oil fields. Shell, Total and Chevron are among the companies which have sold their stake in shallow water assets in Nigeria.

The three major companies have sold stakes worth $6.5 billion in 2013. Oando Energy Resources will soon take over ConocoPhillips energy business in the country in 2014. The deal has been estimated at $1.7 billion.

International oil companies are keen on selling their stake in 13 oil blocks in Nigeria. Oil majors have spent nearly $100 billion globally to improve oil and gas output. However, the production has not improved as per expectations.

In January 2014, Shell issued profit warning for upcoming quarters. Shell registered massive decline in profit at $2.9 billion in the fourth quarter of 2013 compared to $5.6 billion in the fourth quarter of 2012.

In June 2013, Shell had announced its plan to sell four shallow water or onshore oil blocks in Nigeria.

Nigeria had awarded 24 oil fields to 31 companies in 2003. Till date, only eight companies have managed to start production from the allocated oil fields.

The companies have blamed corporate governance issues for lower investor interest in their projects. Nigerian oil ministry is urging the companies to start production as the economy depends on oil exports to a large extent.

Namibia to sign Kudu gas deal with Zambian Firm

Namibia’s power utility NamPower and and the Copperbelt Energy Corporation (CEC), a private power utility in Zambia are scheduled to sign the Joint Development Agreement (JDA) and the Power Export Agreement Term on the Kudu Power Project in Windhoek today, NamPower announced this week.

NamPower currently holds 100% equity in KuduPower (Pty) Ltd, and it intends farming out 49% to strategic equity investors, of which CEC Africa will take up to 30%.

KuduPower (Pty) Ltd, is a special purpose vehicle that was established in 2005 by NamPower to design, build, own and operate the Kudu Power Station at Uubvlei, 25 KM north of Oranjemund.

NamPower announced this week that CEC will also off take between 200MW to 300MW of power from the Kudu Power Station through a Power Export Agreement with NamPower.

“The JDA and Power Export Agreement negotiations started in 2012 and were successfully concluded in October 2013, with the approval of both agreements by the respective board of directors of NamPower and CEC Africa,” NamPower said in a statement.

Kerosene subsidy: NNPC denies flouting presidential order

The Nigerian National Petroleum Corporation (NNPC) has absolved itself of blame for flouting any presidential directive to discontinue the subsidy on kerosene as alleged by the Governor of Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi.

THISDAY had exclusively obtained and reported the presidential directive given by the late President Umaru Musa Yar’Adua in 2009, ordering that the subsidy on kerosene should be removed.

But in the same letter signed by his then Principal Secretary, Mr. David Edevbie, he had also ordered that the announcement on the removal of the subsidy should not be made public.

Group Executive Director of Production and Exploration of NNPC, Mr. Abiye Membere, told journalists at the weekend in Abuja that the presidential directive stopping the subsidy on kerosene, which the CBN governor had accused it of disregarding, was actually stayed for execution as a result of its possible repercussions on the masses.

Non-remittance of oil revenue: CNPP urges probe into NNPC accounts

The Conference of Nigerian Political Parties (CNPP) has again asked  President Goodluck Jonathan to, as a matter of urgent national importance, order an independent inquiry into accounts of the Nigerian National Petroleum Corporation (NNPC) from 1999  to 2013.

The group had previously called for an investigation into the discrepancy between the oil revenue accounts of NNPC and that of the Central Bank of Nigeria (CBN).

In a statement issued by its National Publicity Secretary, Mr. Osita Okechukwu, the group said  it was  making the appeal not only to stop the revenue leakages in the corporation, but to save Nigeria.

“It is our considered view that the 2015 general election will be free, fair and more transparent, if President Jonathan can muster the political will to clean the Augean stable in the NNPC, since the inception of our democracy or even his regime,”  it added.

Enforcing Ghana’s local content policy

When in November 2013 Ghana’s lawmakers passed regulations for local content in its nascent oil industry, Afua Amissah must have seen that feat as a cause for celebration as well as a challenge for her.

The regulations are aimed at providing a transparent monitoring system to meet the objectives of the govern¬ment’s local content policy.

As the country’s head of Local Content, Ministry of Energy, the task before

Amissah is clearly cut out and enormous at that.

She is tasked with the responsibility of overseeing the development of policies and practices to ensure that local companies in Ghana have fair access to business opportunities in the oil and gas sectors.

Just two weeks ago, tension was said to have mounted at the FPSO Kwame Nkrumah, operating in the Jubilee oil fields off the coast of Ghana as three Ghanaian workers were reportedly dismissed from the fields and foreigners took over their jobs.

Sao Tome shortlists four companies in oil block licensing round

The government of Sao Tome and Principe has short-listed four companies, including Portugal’s Galp Energia, to bid on two oil blocks in its exclusive economic zone, according to a statement released by the state oil company ANP. The tiny Central African island nation announced its plans to open a new licensing round for its Blocks 1 and 6 last month.

The statement said Petrogal, the former name of Galp, and London AIM-listed New World Oil and Gas will compete for both blocks. Blue Skies World Group is bidding on Block 1, while London Global Energy is seeking to acquire Block 6. ‘The result of the analysis of expressions of interest will be announced shortly,’ the statement said.

Sao Tome began awarding offshore blocks after signing an agreement with Nigeria in 2001 to jointly develop acreage in waters between the two countries. However, it has been slower to attribute blocks in the territorial waters surrounding its two main islands.

Sinoangol, a joint venture between China’s Sinopec and Angolan state oil company Sonangol, acquired Block 2 in the exclusive economic zone last year, promising to invest $154 million to develop the

Senate to probe CBN, NNPC, others for breach of Fiscal Responsibility Act

The Senate is set to order its Joint Committee on Finance, Judiciary, Human Rights and Legal Matters to commence a probe into perceived loss of revenue into the Consolidated Revenue Fund of the Federation through the breach of the Fiscal Responsibility Act (FRA) as well as alleged breach of public procurement laws and regulations by Central Bank of Nigeria (CBN), Nigerian National Petroleum Corporation (NNPC) and other government agencies.

The directive is fallout of a motion to be moved by Senator Ita Enang (Akwa-Ibom North-east), alleging breach of Section 80 (1) of the 1999 Constitution, which stipulates that all revenues raised or received by the federation shall be paid into the Consolidated Revenue Fund of the Federation.

The motion is also aimed at determining why the balance of their operating surplus is not paid into the Consolidated Revenue Fund and why affected agencies have failed to establish a general reserve fund for the purpose of allocating one-fifth of their operating surplus at the end of the year to the Consolidated Revenue Fund as stipulated in Section 22 (1) and (2) and Section 23 (1) of FRA.

NNPC contains fire outbreak at its Kaduna Refinery

The Nigerian National Petroleum Corporation (NNPC) Thursday said that a fire incident that earlier broke out at the truck park of its  Kaduna Refinery has been brought under control.

It said in a statement in Abuja that the fire which consumed two tankers and also led to injuries for two persons was swiftly controlled, adding that production and distribution of petroleum products from the refinery will not be affected by the development.

The statement was signed by its acting Group General Manager, Public Affairs, Dr. Omar Farouk Ibrahim who also hinted that investigation to determine the cause of the inferno was underway.