" Bloomberg reported Iran has threatened to retaliate by closing the Strait of Hormuz, a crucial passageway for Persian Gulf oil."
With that idiot Trump in the Whitehouse this could be brewing into something extremely dangerous.
very true eadwig…
looks like eroton can now finally seek their own capital for production instead of waiting for nnpc cash call hold ups of the past!!
Baru stated that evolving new funding mechanisms for the Joint Venture operations was part of the focus of the reforms undertaken by the government to eliminate the often difficult cash call regime, enhance the efficiency of the management of oil and gas resources and guarantee growth.
He observed that to encourage the existing players in the industry, particularly the traditional JV partners, “we undertook to settle all outstanding cash call arrears amounting to a negotiated sum of a little over $5bn.
“This has restored confidence in the Nigeria oil and gas industry. We have signed third-party financing deals with several international and local banks on new oil and gas developments worth over $3bn despite the depression in 2016/201 7. This demonstrates the faith in our industry and the potential we can unlock.”
He further stated that the oil firm was on the move to attract funding from the capital market.
“For our IOC partners, we would continue to leverage the strong credit rating of partners, identify key quick-win projects that are easy to mature with strong cash flow projections and attract the necessary funding from the capital market,” Baru said.
He added, “These alternative financing approaches to fund NNPC’s JV obligations have helped to renew investors’ confidence and stimulate further foreign direct investments. In particular, this has deepened local banks’ participation in financing the upstream sector as the financing are syndicated from local banks and international lenders.”
ABUJA, April 21 (Reuters) - Nigeria’s Nembe Creek Trunk Line, one of the two major lines transporting Bonny Light crude oil, was shut on Sunday after a fire prompted a force majeure, operator Aiteo said. Aiteo said its emergency response team was activated once it was notified of the fire and it was forced to shut the line.
other line to bonny is TNP…
Trans Niger Pipeline Loopline
The Trans Niger Pipeline (TNP) transports around 180,000 barrels of crude oil per day to the Bonny Export Terminal and is part of the gas liquids evacuation infrastructure, critical for continued domestic power generation (Afam VI power plant) and liquefied gas exports. The loopline project creates an alternative route to avoid sabotage, bypassing an area where theft and illegal refining have been common. In addition, the project will install monitoring systems to detect any intrusion or leak. The pipeline will not be completely covered to allow security patrol boats to quickly access all pipeline sections.
Ogale, Alakiri, Cawthorne Channel and Bonny
Shell Petroleum Development Company Ltd (SPDC) is the joint venture (JV) operator of an unincorporated JV with a 30% interest
Nigerian National Petroleum Corporation (NNPC: 55%), Total E&P Nigeria Ltd (10%), and Nigerian Agip Oil Company (NAOC: 5%)
The project aims to secure the evacuation of crude from assets in the eastern part of the Niger Delta, and of natural gas from the Gbaran, Agbada, Okoloma and Alakiri gas plants to the Bonny terminal. After completion it also allows for more easy access to maintain the infrastructure.
The project consists of three parts:
1.a 12.5km 30inch pipeline from Ogale to Eleme/Ogu Bolo over land terrain;
2.a 25.5km 30inch pipeline from Eleme/Ogu Bolo to the Cawthorne Channel Junction Manifold, and a 2.4km 8inch pipeline from Alakiri to Ojikiri spurline, both over swamp terrain; and
3.a 20km 30inch pipeline and a 20km 24inch loop pipeline leg from Cawthorne Channel Junction Manifold to Bonny Oil and Gas Terminal, both over swamp terrain
" This pipeline has a capacity of 150,000 b/d at Nembe Creek, however, up to 600,000 b/d of liquids can be evacuated from the end point at Cawthorne Channel."… on oml18…
“Consequently, even small levels of uncertainty can spark a more marked price response. However, because the supply situation remains tight a renewed price rise is probable.”
An interesting piece. Very few US states or EU countries will give planning permission for a new refinery, even next door to an existing one.
During their enforced sale of assets B.P. massively under priced their sale of a refinery in California, it was generally believed by the oil patch, because ‘no one will ever get permission to build a new refinery in California again’.
Not sure how this would benefit SLE directly, or at all, but its an interesting trend that looks set to continue/accelerate with the backdrop of anti-fossil fuel protests throughout advanced economies (and quite a few others too).
One reason the oil price has remained as high as it is is that U.S. shale plays can’t get pipelines completed to get the oil and gas out to export markets through challenged planning permissions. In some states it is taking years and may not happen at all.
The Permian storage (in Cushing, I think its called) is now charging companies a premium per barrel for oil storage as oil ‘queues’ to get piped to the Gulf Coast as new, additional pipelines are awaited - and that is pipelines though Oklahoma and Texas, two of the most fossil fuel friendly states in the 50.
West African producers Nigeria and Angola are set to deliver 420,000 bpd combined this month, the highest in 13 months.