Skip to main content

African Oil States Adjust Term To Attract More Selective Investors

Following the global growth of renewable energy, African oil producing states in a bid to attract selective foreign investors are now making it easier and cheaper for overseas companies to keep their oil and gas output flowing.

According to Reuters, Ghana and Gabon are currently adjusting terms to attract investors whose main concern is about long-term demand for fossil fuels as renewable energy gains ground.

The shift follows declining oil production in Angola and Cameroon and disappointing bid rounds in Ghana.

It also marks a recognition that the era of $100 per barrel of oil is over.

“Because of increased competition for investment in Africa, we are changing our strategy,” Mohammed Amin Adam, Ghana’s Deputy Minister of Petroleum, said at Africa Oil Week in Cape Town.

Also in accordance with Ghana on plans to revise oil and gas licensing laws, ministers from Angola, Cameroon and Gabon also stressed changes to legal and fiscal terms to boost their own production.

“We are aware that oil companies have to spend a lot of money. That is why we are careful in the way we design our (terms) to have it as a win-win,” Gabon’s Petroleum Minister, Noel Mboumba, said at the event.

As renewables and efforts to cut fossil fuel consumption gain ground, there are also growing concerns that the world will not need all of Africa’s oil.

“We don’t know how much new supply we’re going to need. So, obviously, everybody is going to have to be competitive for that,” Andrew Latham, Vice President of Global Exploration at Wood Mackenzie, said.

Ghana is planning to allow companies more leeway in where and when they can drill, while Angola is revising local content laws and privatising oil assets.

Cameroon’s Senate in April approved a reform to replace its 1999 petroleum code, sweetening tax terms for oil and condensate development and allowing companies to recoup “exploration expenses” from production sharing contracts.

Gabon revised its fiscal terms to reduce the government take for shallow and deepwater concessions and increased the cost-recovery limits for companies.

Nigeria, the continent’s largest producer, last week increased the amount oil companies pay the government for offshore production, while an overhaul of its oil and gas terms has languished for more than a decade.

Oil News AddThis :  Original Author :  SaharaReporters, New York Disable advertisements : 

from All Content
via

Comments

Post a Comment

Popular posts from this blog

Nigerian Academy Of Science Inducts First Female President

The Nigerian Academy of Science has inducted a professor of Parasitology/Epidemiology, Ekanem Ikpi Braide, as its 19th President on Thursday. In a statement issued by Oladoyin Odubanjo, the Executive Secretary of the Academy, Braide is the Academy’s first female President in 44 years of existence. It read, “Braide was a member of the national committee that achieved the laudable feat of guinea worm eradication in Nigeria. “She has a rich professional experience as a researcher and an administrator. In July 2010, Professor Braide was honoured by the President of Nigeria with the award of Officer of the Order of the Federal Republic (OFR) for her contribution to disease control in Nigeria. “She was nominated by the Honourable Minister of Health to serve in the Ministerial Expert Advisory Committee on COVID-19 Health Sector Response (MEACoC-HSR). “Professor Braide served as Vice-Chancellor, Cross River University of Technology (CRUTECH) Calabar, Nigeria (2004 to 2009) and as P...
Post a Comment
Read more

NLNG Signs Letter Of Intent On Delayed Gas Expansion Project

The Nigerian Natural Liquefied Gas LTD has signed a letter of intent for the engineering, procurement and construction of its long held up Train Seven project. In a statement released by the company on Wednesday, it said that the $10bn project will be executed by a consortium of Italian firm Saipem, Japan’s Chiyoda and South Korea’s Daewoo. The statement reads, “The project will form part of the investment of over $10bn including the upstream scope of the LNG value chain, thereby boosting the much needed Foreign Direct Investment profile of Nigeria.” Managing Director of NLNG, Tony Atta, said in 2018 that the Final Investment Decision would be made in the fourth quarter of that year. This did not however, materialize. According to the release, the project will have a four to five-year execution time after the signing of the FID. The project is expected to add an extra 8 million tons per annum of gas to the 22 mtpa currently exported by the company. Oil News AddThis :...
Post a Comment
Read more

Former Maritime Agency Boss, Buba Galadima, Accuses AMCON Of Witch-hunt After Property Takeover

  A former Director-General of the Nigeria Maritime Agency, Buba Galadima, has accused the Asset Management Corporation of Nigeria of witch-hunt after the agency took possession of his business and assets on Tuesday in Abuja. Galadima, an ardent critic of President Muhammadu Buhari, claimed that he did not borrow money or have unpaid debt with Unity Bank, which lodged a complaint against him and occasioned AMCON’s move on Tuesday. The properties taken over include House No. 15, Addis Ababa Crescent, Wuse Zone 4, Federal Capital Territory, Abuja and House No. 4, Bangui Street, Wuse 2, also in Abuja.  Reacting to the situation, Galadima said, “This is an attempt to disgrace and break me down. This is injustice and an attempt to humiliate me. "But I am unbreakable and they can never silence me. They sacked me and over 50 people that sleep in the apartment. "We don’t know where to go. We will remain on the streets. We will remain on the streets until God provi...
Post a Comment
Read more