Woodside advances oil and gas projects in Senegal

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SENEGAL

Woodside Petroleum plans to increase capital spending by a third to $4 billion in 2022 as it advances oil and gas growth projects in Western Australia and Senegal, as well as ramping up efforts to start producing hydrogen. After posting record quarterly revenue on the back of soaring liquefied natural gas prices, CEO Meg O’Neill noted the company was positioned for a big year aimed at sealing a merger with the oil arm of BHP Group. by June and to advance the development of the Scarborough gas field and Pluto LNG plant expansion.

Woodside is also focused on its Sangomar oil project in Senegal, which is set to begin production in 2023. Total capital expenditures in 2022 are expected to be between $3.8 billion and $4.2 billion, down from $3 billion. in 2021. Woodside estimated that 2022 production would increase by about 4% to be between 92 million barrels of oil equivalent (MMboe) and 98 MMboe.

NIGERIA

The Group Chief Executive of the Nigerian National Petroleum Company (NNPC), Alhaji Mele Kyari, said the Petroleum Industry Act (PIA) has enabled the organization to get rid of some of its high responsibilities. Alhaji Kyari highlighted the importance of the PIA to the NNPC and the Nigerian economy while addressing NNPC staff at a town hall meeting held at the NNPC towers in Abuja. He said the new legislation will provide the company with huge opportunities to generate more revenue for the country.

Kyari noted that the new legislation has raised shareholder expectations of the company and given NNPC room to move forward. He encouraged NNPC staff to ensure that the company becomes a commercially viable entity and a multi-billion dollar entity that will continuously deliver value to its shareholders.

Minister of State for Petroleum Resources, HE Chief Timipre Sylva, after the official release of crude production results by the Organization of the Petroleum Exporting Countries (OPEC), revealed that Nigeria has a level of underperformance of 78,000 barrels per day (bpd) in December 2021 and lost approximately 2.418 million barrels of crude. However, crude oil prices rose steadily and Nigeria recorded a trade surplus of $3.6 billion. HE Sylva noted that although the country has struggled to increase its capacity to pump more oil, the full implementation of the PIA would create a positive atmosphere to increase hydrocarbon production with much needed investment.

GLOBAL

On January 20, oil prices posted slight losses after several days of strength that pushed benchmarks to seven-year highs on concerns about limited supply. US West Texas Intermediate crude futures for February delivery fell 6 cents to $86.90 a barrel on the last day of the contract term, while Brent crude futures stabilized 6 cents at $88.38 a barrel.

The US Energy Information Administration’s weekly report for January 19 showed crude oil inventories in the United States rose 0.5 million barrels from the week ending January 14, as analysts expected a drawdown of 1.367 million barrels, and a drawdown of 1.077 million barrels was recorded. during the previous week. Short-term supply disruptions are also helping to tighten markets. Brent futures rallied strongly after reports that a key pipeline linking Iraq to Turkey was destroyed by an explosion.

Tuesday’s explosion near the Kirkuk-Ceyhan oil pipeline in southeastern Turkey halted the flow of crude. However, pipeline supply resumed a day later. Supply worries elsewhere remain high, after Yemen’s Houthi group attacked the United Arab Emirates, OPEC’s third-largest producer, earlier in the week. Tensions between Russia and the United States over Ukraine also remain high, with a large Russian presence built near the border with Ukraine. Concerns about potential armed conflict and resulting supply disruptions are also growing. A broad recovery in global fuel demand, combined with a tighter market, is also adding to oil’s woes. OPEC and its allies are struggling to meet their target of increasing monthly production by 400,000 bpd. Some investors are also predicting that an oil rally could continue over the next few months, where prices could break above the $100 mark.

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