Investment Development

What OPEC Really Thinks About Current Oil Prices

April 05, 2017 | Investment Development

Matthew DiLallo | – Given the recent market whispers that OPEC will extend its output cuts, it suggests that the oil cartel thinks that oil prices are still a bit too low for its liking. Last fall, OPEC sent shock waves through the oil market by agreeing to its first output cut in eight years. That decision marked a notable policy shift by the oil cartel, because it meant the abandonment of its pump-and-dump strategy, which it instituted in an ill-fated attempt to push high-cost shale …

Is Total SA About to Become a Major Player in Ugandan Oil?

September 09, 2016 | Investment Development

By David Lettis | – The Ugandan government in late August awarded oil production licenses to Total SA, which should allow the company to begin activities required for future production. Total has made East Africa a primary focus for production growth, largely because of the immense Ugandan reserves. Here’s why Total seems so intent on beginning production activities and how this factors into its overall growth strategy. Oil in Uganda The reason for going into Uganda revolves around one simple fact: There is a lot of …

Gas May Transform Mozambique Even as Debt Darkens Confidence

June 03, 2016 | Investment Development

By Paul Burkhardt | – About 30 minutes down a pot-holed road from Vilanculos, where dhows ferry tourists to luxury resorts on Bazaruto island, Sasol Ltd. is ramping up output of a fuel that could transform the world’s 13th poorest nation. Vast gas discoveries hold the potential to boost Mozambique’s economy, more than three decades after the apartheid regime of neighbouring South Africa backed rebels in a civil war that laid waste to the former Portuguese colony. “We’re going to incrementally increase capacity until we’ve reached …

East Africa: Regional Integration for a Brighter Future

February 26, 2016 | Investment Development

By Fanuel Lakew | – It is obvious that pipelines are a safe and efficient means of transporting large quantities of crude oil and natural gas over and through the land as energy is fundamental to economic security. These days, having large-scale transportation of natural gas using tanker truck or rail is not feasible as it is costly and takes large amount of resources. So pipelines are more cost-effective than the alternative transportation options. Experts in the area ascribed that pipelines require significantly less energy …

Fixation on oil kills economic potential in Nigeria

November 23, 2015 | Investment Development

By Tolulope Ola-David | – Africa’s largest economy, Nigeria relies on sale of crude for about 90% of its foreign exchange earnings. The economy has been hit hard by the fall in global oil prices over the last year. Nigeria continues to bear the brunt of the fall in global oil prices. Oil accounts for nearly 70% of its revenues and, as an oil dependent nation, revenue continues to dwindle. The economy has recorded the lowest GDP growth rate since the quarterly data has been released following drop …

Shell-BG Deal Could Trigger A Wave Of Takeovers That Will Rock The Energy Industry

April 08, 2015 | Investment Development

By Javier Blas | – In the words of Royal Dutch Shell Plc’s boss Ben van Beurden, the fundamental logic behind his decision to buy BG Group Plc “always existed.” What pushed the US$70 billion deal over the finish line was that it had become “very compelling from a value perspective” after oil prices fell by half to US$50 a barrel. Ben van Beurden is unlikely to be alone among the chief executive officers of the world’s largest oil companies in thinking that valuations are …

From The U.S.-Africa Summit: Why America Is Back In African Business

August 07, 2014 | Investment Development

By Abdelmalek Alaoui | – The U.S Africa Leaders’ Summit ended yesterday in Washington DC after three days of intense meetings and passionate debates. For many, this event will be remembered as the largest ever gathering of American and African leaders in history. During the event, some 50 heads of state and government as well as several hundred officials and CEOs had the opportunity to witness America’s attempt to come back strong in Africa. A decade after the U.S. progressively lost most of its leadership in Africa to China …

US stepping up support for energy sector reform and investment in Nigeria

July 30, 2014 | Investment Development

By Pinsent Masons | – The US is to step up support for Nigeria in reforming the country’s energy sector and paving the way to speed up development of the electricity market as part of moves to attract investors. Nigeria and the US have signed a memorandum of understanding (MOU) to increase electricity supplies in Nigeria and to coordinate the ongoing privatisation and regulation of the power sector. US ambassador to Nigeria James Entwhistle said the increased cooperation “will improve the lives of countless Nigerians and …