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Two Companies to Supply Gasoline, Diesel Into Angola, Until 2020

Sonangol has selected Totsa Total Oil Trading and Trafigura to supply gasoline and diesel to the country over the next 12 months.

The two companies were awarded following an international public tender launched on 27 February 2019.

The Angolan state hydrocarbon company explains that Totsa Total Oil Trading will supply gasoline and Trafigura will supply diesel and marine diesel for the navy throughout the tenor of the award.

The two companies were selected from a group of nine that submitted bids – BB Energy, BP, ENI Trading & Shipping (ETS), Glencore, Gunvor, Litasco and Vitol and Totsa Total Oil Trading and Trafigura.

Angola has a limited refining capacity of 57,000Barrels of oil a day from the 61 year old Luanda Refinery, even though the country produces around 1.5Million Barrels of oil a day and is Africa’s second largest crude oil producer.

In early May 2019, the city of Luanda faced a fuel crisis, which led to gasoline price speculation at some filling stations as well as on the informal market, where the price of fuel tripled to 500 kwanzas per litre.

The Board of Directors of Sonangol was dismissed as a result of the scarcity.


Sasol Swoops on Southern Africa

Sasol is on course of adding 12 new retail outlets for petroleum products in 2019, mainly in the neighbouring countries north of South Africa

In 2018, it added 15 outlets, but all of that was in South Africa, the company’s headquarters and heartland.

The retail outlet expansion is achieved by buying over the competition.

We are “progressing value-accretive acquisitions of super-dealers”, the company says, adding that it continues to evaluate major acquisition opportunities, guided by capital allocation framework”.

Sasol was originally focused on building and operating facilities to produce a range of products, including liquid fuels, chemicals and low-carbon electricity.

It entered the South African fuel retail market in 2004 to sell through its own retail network, based on its proprietary technology.

Africa’s largest homegrown petrochemicals company boasts that the current retail outlet expansion is driven by its strong technical and operational heritage”

“We intend to maintain a competitive edge in marketing our energy products”, it says.  “Our energy business is highly cash generative and thrives on an integrated competitive cost advantage”.

 

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Oil Prices Push up East African Retailer’s Growth

East Africa’s third leading petroleum products retailer had its profit shooting up on account of increased crude oil prices as well as growth in sales volume

 

KenolKobil’s net profit in the six months ended June 2018  rose 16.07% compared to a year earlier after sales revenue grew by a quarter and costs nearly halved, the company reports.

The Nairobi headquartered company, which operates in Uganda, Rwanda, Ethiopia, Burundi, Mozambique and Zambia, declares in a second half 2018 statement that the 24.17% increase in earnings to $890Million (Sh90.19Billion), was a result of by increased international oil prices and an 8% growth in sales volume.

Profit after taxation increased to $16.41Million (Sh1.65Billion) from $14.15Million (Sh1.422 Billion), the Nairobi Securities Exchange-listed firm said in a financial statement.

KenolKobil trails the Shell-led Vivo Energy and the French retailer TOTAL in distribution capacity and market share in the region.

Not yet out of the hole

KENOLKOBIL, HOWEVER, SPENT NEARLY $1.32Million (SH132.83Million) on servicing loans, a 61.96% per cent surge compared with $815,051 (Sh82.01Million) a year ago, “due to volume growth and increased international oil prices”.

“Along with a significant increase in LIBOR rates, this increased our local borrowing levels and cost of our dollar denominated loans during the period,” Mr Ohana said.

But we’ve done well…

Still, David Ohana, the managing director, said the company cut operating costs by 46.44% to $8.89Million (Sh893.94Million), compared with the same period in 2017, as a result of streamlined procurement processes, efficient cost management and absence of a $2.98Million (Sh300Million) debt provision a year earlier owed to the defunct Kenya Petroleum Refineries Ltd (KPRL).

The firm’s net earnings were also helped by a $270,580(Sh27.22Million) foreign exchange gain, a turnaround from $254, 570 (Sh25.61Million) loss last year, the company claims, “on stringent management of forex transactions”.


$10 Oil Soon? How did we get here?

By Olountele Dokun

On Thursday, January 14, 2016, “Oil-Price.Net”, a commodity trader, posted $30.31/barrel for the (North Sea) Brent Crude, against which our Bonny Light is indexed.

On the same day, anchor persons on BBC World Business Today, a daily Television dialogue, quoted Standard Chartered Bank analysts predicting, pessimistically, $10/ barrel for the black gold“someday soon”. The previous day, on January 13, 2016, Ibe Kachikwu, the Nigerian minister of state for Petroleum, in a CNN interview, hoped that production cuts, to boost price, could be achieved with OPEC and non-OPEC countries, Russia inclusive.

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Ramboll selected for onshore pipeline study in Uganda

Uganda’s Ministry of Energy and Mineral Development has awarded Ramboll a contract to conduct an early-phase study for the “Hoima–Kampala Refined Petroleum Products Pipeline” in Uganda, East Africa.

The project concerns a proposed pipeline to be constructed to transport products of crude oil refinement from Uganda Oil Refinery in Hoima to a distribution terminal to be constructed in Buloba, app. 17 km west of Kampala. The total length of the pipeline/corridor is app. 210 km.

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Ghana Maintains, South Africa Increases, Pump Prices for Petroleum Products

Ghana has opted to maintain pump prices of petroleum products for April 2015, while South Africa has chosen to increase same for the period.

The latest petroleum products price build-up schedule released by the Ghana Petroleum Authority sets the ex- pump price of a litre of Premium Motor Spirit (or gasoline,  or petrol) at 3Cedis 5pesewas (or $0.91) while kerosene is going for GHC2.92Pesewas ($0.76)

The South African Department of Energy declares that the cheapest type of gasoline, the unleaded 93 Octane will be R12.28 in the local currency (rand) or $1.038 per litre, in the coastal region. In the inland region, where petroleum products cost more, South Africans will pay R12.61 (or $1.066) for a litre of unleaded 93 Octane gasoline. The increases are about R1.62 ($0.136) all round. Diesel will cost R11.227 (or $0.946) in South Africa’s coastal region for the month.

Ghanaians will buy a kilogramme of Liquefied Petroleum Gas at 2 Cedis 64 Pesewas (or $0.68).

Ghana and South Africa always say that they “regulate” pump prices within the dictates of market forces, notably crude oil prices and exchange rates. Still, Ghana Petroleum Authority is always under pressure to reduce the pump prices. Conversely, South Africans do not protest petroleum product prices.


Uganda: The Waiting Has Ended

East Africa Will Get a Brand New Crude Oil Refinery before the End of the Decade

28 months after it sent out invitations to tender, the Ugandan government now has a private investor willing to lead the funding and construction of a two phase 60,000BOPD crude oil refinery, crude oil and product storage facilities on site, as well as a 205-kilometre product pipeline to a terminal near the capital city, Kampala.

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JEMMTEK Resources to Commission Chemicals Factory in October

Jemmtek Resources has concluded arrangement to commission a chemical production plant in Port-Harcourt, Rivers State, Nigeria.

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Petrol Prices Stay Up In South Africa, Ghana

Fuel-Station-In-Takoradi,-Ghana

Prices of gasoline (petrol), diesel, LPG and other fuels will remain high for some time in South Africa and Ghana, two key African countries where deregulation has kicked in, because of the weakening currencies of the two economies and marginal reduction in crude oil prices in the month of March 2013. Gasoline will cost as much as $1.42 (or R13.20) per litre in the inland parts of South Africa and $1.38(or R12.83) in the country’s inland region throughout April 2013. The costs are adjusted monthly by the Department of Energy, and they are reflective of international prices of Brent crude and the exchange rate.

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Subsidies Deepen Egypt’s Budget Deficit

By Jennifer Lewis

In Egypt, subsidies on natural gas and petroleum products have become one of the most controversial topics. With the declining economy of the country, the extensive subsidies on oil and gas products are expanding the deficit in the budget. It was revealed by Egypt’s Minister of Petroleum that the total cost of subsidies on petroleum products is around $7.4 billion a year; however the total revenue generated from the exports of petroleum products amounts to around $10 billion a year. Therefore, the excessively high costs of subsidies render the exports less profitable for the country. Bloomberg reported that Egypt’s exports of natural gas to Jordan or Spain have shrunk due to the increase in country’s local consumption, as well.

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