All posts tagged downstream


BP Divests a Strategic, Fuel Storage Terminal, to a Black Owned South African Company

British Petroleum Southern Africa (bpSA) has sold one of its 100% owned liquid bulk fuels import terminals to black women-owned and managed independent petrochemicals company Wasaa in what is regarded as a landmark transformation deal.

The terminal is located at the Port of East London, in South Africa’s Eastern Cape Province.

Prior to the sale, bpSA had six fuel storage terminals, two 100% owned by bpSA, (one of which is now sold); two (Alrode and Pretoria) jointly owned with Sasol (50/50); one (Island View) jointly owned with Shell (50/50) and one (Rustenburg) owned by Astron (⅓), bpSA (⅓) and Engen (⅓). We invest in our terminal infrastructure to provide world class road and rail gantries, fire-fighting capability, tanks and pipelines.

Johannesburg-based Wasaa is a subsidiary of the Wasaa Group, which was founded and is led by Nokwanele Qonde, aranking South African female entrepreneur.

In line with the agreement, Wasaa Terminals has also acquired 100 percent of the terminal’s movable assets and a 20 percent stake in the berth to terminal pipeline. Sout Africa’s top finance website Moneyweb reports that Wasaa Terminals began taking over terminal responsibilities on December 6, 2021.

bpSA will retain the operations of its transport business operating outside of East London. Wasaawill provide terminal storage and handling services to bpSA in the Eastern Cape port city.

 

 


Unusual Spike in Methanol Found in Gasoline in Nigerian Market

PRESS RELEASE

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (The Authority) wishes to inform the Nigerian public that – limited quantity of Premium Motor Spirit (PMS), commonly known as Petrol, with methanol quantities above Nigeria’s specification was discovered in the supply chain.

Methanol is a regular additive in Petrol and usually blended in an acceptable quantity.

To ensure vehicular and equipment safety, the limited quantity of the impacted product has been isolated and withdrawn from the market, including the loaded trucks in transit Our technical team in conjunction with NNPC Ltd and other industry stakeholders, will continue to monitor and ensure quality petroleum products are adequately supplied and distributed nationwide.

The source supplier has been identified and further commercial and appropriate actions shall be taken by the Authority and NNPC Ltd.

NNPC Ltd and all Oil Marketing Companies have been directed to sustain sufficient distribution of Petrol in all retail outlets nationwide.

Meanwhile, NNPC has intensified efforts at increasing the supply of Petrol into the market in order to bridge any unforeseen supply gap.

Issued by:

Nigerian Midstream and Downstream Petroleum Regulatory Authority (The Authority)  8th February, 2022.

 


Bolloré May Sell African Logistics Assets to MSC

French logistics group Bolloré has received an offer from the Mediterranean Shipping Company (MSC), a Switzerland based operator in container transport and logistics, to acquire 100% of Bolloré Africa Logistics, comprising of all the Bolloré Group’s transport and logistics activities in Africa, based on an enterprise value, net of minority interests, of €5.7Billion.

Bolloré says it has granted the MSC Group an exclusivity until 31 March 2022 “to submit a put option”. Closing this sale will then require obtaining regulatory authorisations and the approval of the competent competition authorities.

“The Bolloré Group has decided to study this offer, which protects jobs and preserves its projects and commitments on the continent. It remains fully convinced of the potential of Africa, where it will continue to be actively involved in television (Canal+, MultiChoice), communications, entertainment, publishing and as a broadband internet access provider”, the group says in a statement. “The Bolloré Group reaffirms its commitment to invest and expand in the region.

“The two groups share many similarities. MSC is a European family group with a long-term vision that places its employees at the heart of its business strategy.

“The MSC Group has made significant investments in Africa in recent years and has great ambitions for the African continent. Its investment capacity, resources and market expertise would provide a new impetus to the projects that the Bolloré Group has designed, built and developed.

This transaction, if it comes to fruition, will not be completed until several months later*. The satisfaction of the Bolloré Group’s customers and partners remains a priority and, therefore, Bolloré Transport & Logistics will continue to honour its commitments by pursuing its projects, its investments and its goal to develop logistics ecosystems in Africa.

The Bolloré Group will ensure that its transport and logistics activities concerned with the MSC group’s offer continue to act independently of MSC so long as the competent authorities have not approved this project.

*MSC has an exclusivity period until 31 March 2022

 

 


Egypt Increases Pump Prices of Gasoline

Subsidy-minded Egyptian government has increased pump prices of petroleum products for the second consecutive quarter.

 The government raised fuel prices by up to 3.8%, in response to rising international oil prices. This means that motorists will now pay an extra 0.25 Egyptian Pound (EGP) per litre for 95, 92 and 80 octane gasoline during 3Q 2021.

Fuel prices have now risen 5.9-8% so far this year after the fuel pricing committee effected the first increase at the beginning of the second quarter of 2021.

Diesel and mazut prices remain unchanged.

Gasoline prices, from July 23, 2021:

• 95-octane has moved up 2.9% from EGP 8.75 to EGP 9 per litre.

• 92-octane has moved up 3.2%, from EGP 7.75 to EGP 8.

• 80-octane has moved up 3.8%, from EGP 6.50, to EGP 6.75.

Prices of mazut fuel oil for use in factories will remain at EGP 3.9k per tonne, while diesel prices are still EGP 6.75 per litre.

These prices will remain fixed until through 3Q 2021 and will be reviewed again by the fuel pricing committee at the beginning of 4Q in October.

Crude oil prices have been on a run, increasing by close to 45% in 2021, as the global economy recovers.


ExxonMobil to Sell CNG in its Fuel Stations in Egypt

Gastec and Cargas, two Egyptian government owned gas suppliers, have signed a cooperation protocol for adding facilities to supply natural gas inside ExxonMobil fuel stations in the country.

The three parties will start the first phase of establishing facilities for supplying cars with compressed natural gas (CNG) in an average of 50 stations, followed by another phase targeting ExxonMobil stations across Egypt, according to the agreement.

By getting ExxonMobil to include CNG supply, Egypt is involving a key fuel retailer in its plan to increase the usage of natural gas in the country.

ExxonMobil is one of the biggest fuel retailers in Egypt, with more than 350 service stations and more than 25 convenience stores, christened On the Run.

The company claims to be the market leader in petroleum product technology in North Africa’s largest eonomy, offering its clients “highly recognized lubricants, industrial greases and expert lubrication programmes and services”, and now, at the behest of the government, it has to include CNG.

In what it calls the natural gas transition, the government is setting up a financing programme through the country’s banks to extend $77Million (or EGP 1.2Billion) in low-interest loans for car owners to convert their vehicles to run on dual-fuel engines; see 150,000 cabs and minibuses outfitted with dual-fuel engines over the course of three years and set up infrastructure in seven governorates to accommodate engines running on natural gas in the first phase, with the remainder of the programme to be expanded to the rest of the country.

 

 


Kenyans Entitled to “Reverse Subsidy” on Petroleum Products

Diesel and gasoline prices have risen sharply in Kenya’s filling stations for the month of March 2021, despite the country having saved money to mitigate the spike in the cost of crude oil.

The Kenyan government increased the levy on petroleum products as pump prices dropped last year. The Petroleum Development Levy jumped from $.04 (Sh5.40) a litre in July from $.003 (Sh0.40), representing a 1,250% hike.

But the country’s plan to “pay back” in form of lower product prices, once crude oil prices reach $50 per barrel, has been scuttled by a lack of legislation.

The government collected over $91Million in the course of the levying over the last seven months.

But now that crude oil prices have soared way above $50, even breaching $70, a legal hitch is holding up the implementation of the fuel subsidy for which the levy was imposed.

Instead of product prices to remain flat, or even drop, despite the robust rise in crude oil prices, diesel prices in Nairobi rose by $.05 (Sh5.51) a litre to $0.92 (Sh101.91)—the highest since February 2020. Gasoline prices rose $.07 (Sh8.09) to $1.05 (Sh115.18) per litre, the highest mark since July 2019, putting pressure on transport costs and inflation.

The subsidy was excluded in the determination of gasoline and diesel prices for the month of March 2021, announced by Energy and Petroleum Regulatory Authority (EPRA) in late February after a monthly review based on the average price of crude oil in February.

Kenyans were not expected to bear costs of diesel prices above $50 a barrel because they had saved for the high cost in form of the levy.

The country’s motorists were to start enjoying a form of “reversed subsidy”, but EPRA says that “ the regulations to manage the subsidy were not yet in place”, so the agency simply raised pump prices based on the February 2021 crude oil average cost of $55.27.

Respite is expected to come in April. “The regulations to operationalise the levy are being developed in order to set up structures on how the fund will be managed,” EPRA says in a statement.

Kenyans use diesel extensively as transport fuel and for power generation.

The Attorney General’s office is expected to approve new regulations to use the fund accrued from the levy to rein in prices of petroleum products.

 


Siemens appoints Dalia Shoukry as CFO in Egypt, its Biggest African Market

Siemens has appointed Dalia Shoukry as CFO in Egypt, effective immediately.

Shoukry has more than two decades of experience in financial roles covering the Middle East, Europe, and Africa.

Egypt is Siemens’ largest market in Africa and one of its biggest in the world. Between 2016 and 2019, under contract by the government, the German engineering firm built three combined cycle gas to power plants with total capacity of 14,400MW in Egypt. In December 2020, Siemens was awarded, by the Egyptian Electricity Transmission Company (EETC), the contract to build the new national energy control centre, in the country’s New Administrative Capital (NAC), still under construction, in the middle of the desert, some 45 kilometres east of Cairo.

Siemens is currently in discussions, with the Egyptian Ministry of Power nd Renewable Energy,  for a 500MW capacity Wind Farm in the country, under a Build, Operate and Transfer system.

All of which means that Ms. Shoukry has her job cut out.

Prior to Siemens, she was the international finance director AstraZeneca, the pharmaceutical giant.

She earned a degree in accounting from Ain Shams University. “We are very happy to welcome Dalia to our team in Egypt. Financing is a crucial component of our business, as it not only defines, manages, and oversees all budgets, but it also monitors the performance and ensures the financial health and stability of Siemens Egypt,” said Mostafa El-Bagoury, CEOof  Siemens Egypt.

Siemens has been active in Egypt ever since its founder, Werner von Siemens, laid a communications cable through the Red Sea in 1859 to link Suez and Aden..


VFuels Wins the Contract to Build the Processing Units of the Cabinda Refinery

By Foluso Ogunsan

VFuels, the American refinery constructor, will be fabricating, constructing and installing the Inside Battery Limits (Processing Units) of the Cabinda Refinery in Angola.

The contract is in the making.

Construction is expected to take 18 months. The processing units include the Crude Distilation Unit (CDU) and Merox (acronym for Mercaptan Oxidation).

VFuels constructed the ISBL of the Waltersmith Refinery in Ibigwe, in the east of Nigeria.

United Shine EPC Consortium is the EPC contractor mandated by the Angolan government to Build, Own and Operate the Refinery, after it won a keenly contested bid to build the facility. It will hold 90% in the facility, in partnership with the state hydrocarbon company Sonangol, whose subsidiary -Sonangol Refinación – Sonaref SA holds 10% equity.

The Cabinda Refinery is planned to process 60,000Barrels of Oil Per Day in two phases, with 30,000BOPD in each phase. The first phase will output Diesel, Kerosene, Heavy Fuel Oil-HFO and Naphtha, without Gasoline. In the second phase, Gasoline production will be introduced, in addition to the entire product line of the first phase.


Nigeria Caves in, Returns to Subsidy of Gasoline Consumption

By the Editorial Board of Africa Oil+Gas Report

The Nigerian government has reneged on its decision to remove subsidy on gasoline consumption. Following from stringent complaints by the country’s organized labour, the government ruled that the pump price of the product, as of December 8, 2020, which was calculated based on market forces, be reviewed downwards.

The announcement effectively reversed a policy that was informally announced with fanfare by the NNPC in early April 2020, and confirmed the worst expectations of avid callers of petrol price deregulation. The declaration of Chris Ngige, Minister of Labour and Employment, that the Nigerian government had “reduced the pump price of premium motor spirit otherwise known as petrol from ₦168 per litre to 162.44 per litre effective from December 14, 2020”, is a major reversal of a victory that the proponents of reforms in the pricing of energy, thought they had won. The government’s statement, ordering a reduction in price, by fiat, undermines any goal of plugging the Two Trillion Naira annual revenue hole that gasoline subsidy had become.

It also increases the risk profile of, any investment in the gasoline part of the hydrocarbon value chain which had been based on the promise, last April, that “subsidy of gasoline prices was gone forever”.

The April 2020 announcement of subsidy removal had come at a time of abysmally low crude oil prices, so that market fundamentals simply led to a reduction in pump prices at the time. As crude oil price is directly correlatable to pump price of gasoline, it had always been a point of argument, that the government might not be able to sustain the subsidy removal whenever crude oil prices moved to higher grounds. This is what has been proven with Mr. Ngige’s declaration.

In the unfortunate case of Nigeria, at the moment, gasoline is imported, so the landing cost is partly determined by the Naira -Dollar exchange, which has, in the past one month, worsened for the Naira. That has meant that even if crude oil prices had not increased, the pump price of gasoline would have kept increasing-if subsidy removal was maintained-as a result of downward pressure on the local currency. But on top of the foreign exchange crisis, an upward movement of crude oil prices has now crept in, ensuring that market-determine gasoline price is moving skywards. With an artificial cap of pump price of gasoline at ₦162.44, and the government lacking courage to move away from price control, Nigeria is unlikely, any time soon, to adjust to whatever prices are dictated by the market, especially now that crude oil prices are likely to keep trending up, even if modestly.

This means that the chronically indebted petro state will open another file in its growing debt profile; it will have to find a way of paying the subsidy it has now introduced by this cap in price.

It is not the most optimal way for the country to manage its revenue at this point in time.


Cameroon Makes Steady Returns from Crude Export Pipeline

Cameroon received $57Million (or XAF30.71Billion) as transit fees from January 1 to October31, 2020 on the Chad –Cameroon oil pipeline.

The 1,070 kilometre evacuation facility, which pumps crude oil from three fields in the southwest of landlocked Chad to a floating facility 11 km off the Cameroon coast town of Kribi, has been delivering returns to Cameroon since first oil was achieved in 2003.

Cameroon’s Pipeline Steering and Monitoring Committee (PSMC), reports that the revenue is up by 2.5% year-on-year. Over the same period in 2019, the country collected $55Million (XAF29.97Billion) as transit fees.

PSMC reports that 39.91Million barrels of crude oil were transported from the Komé-Kribi terminal in southern Cameroon in the first 10 months of the 2020 fiscal year, compared with 38.79Million barrels during the same period in 2019. This represents an increase of 3%.  

“This improvement is the result of increased production from new shippers in Chad, namely PétroChad Mangara, China International Petroleum Company Inc. Chad and Overseas Private Investment Corporation.

The construction of the pipeline was led by ExxonMobil in the early 200s. But the American major has since exited Chad. 

 

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