Happy Friday and welcome to the top energy pick of the week. Your weekly look into the industry trends projects key development in East African oil and gas industry
My strongest recommendation to you is that, remain safe, wash your hands and be positive, the industry and our families will emerge stronger from this downtime .
Let’s dive into this week’s content
Oil Market Begin to Improve Following a Months of Historic Lows- IEA
According to the International Energy Agency(IEA), one of the leading energy agencies in the world, the oil market is recovering gradually from the latest low emerge from the impact of novel coronavirus and oil price war between the major oil-producing countries.
Why the oil market shows a sign of recovery? Because demand for oil depends largely on transportation. Think about the need for transportation, airline truck companies, commercial and industrial sector users. As the countries gradually reopen airports means airlines improve flights. and truck companies put more trucks on the road, the demand for oil increases.
Furthermore, with people getting back to work means truck companies put more trucks on the road. And industrial and commercial users of oil increase their spending. Which in turn raises the demand for oil.
Aminex Inches Forward in Farm-Out- Energy Voice
For those of you that might be new to the London based independent exploration and production company, Aminex story here is a quick re-cap.
In March 2020, the company announced that has received the Mtwara Exploration Licence. As part of the ongoing process to obtain Tanzanian Government approval.
So, Tax Clearance Certificate from Tanzania Revenue Authority (TRA) and the Minister’s approval were the only remaining conditions for completion of the Farm-Out.
On 19 May 2020, Aminex reported that it has received Tax clearance Certificate which is a legal requirement to enable the Ministry of Energy to approve the Farm-Out.
Robert Ambrose, Chief Executive of Aminex commented:
“This is a major milestone. With the receipt of the Tax Clearance Certificate from the TRA and with the onward submission to the TPDC, Aminex has now accomplished all of the conditions within our control in order to complete the Ruvuma Farm-Out.”
Total Secures $14.4 Billion Funding For Mozambique LNG project- Reuter
Aminex has identified a profitable asset. The company has now submitted the tax clearance to the state-owned national oil company, Tanzania Petroleum Development Corporation (TPDC) to be forwarded to the Ministry of Energy. And with strong financial and technical input from ARA petroleum. It is clear that you are going to see Aminex is developing and commercializing Ruvuma project into the next trillion cubic feet(TCF) of gas
And Eni-Exxon Mobil-led 15.2 MTPA Rovuma LNG projects are expected to reach FID early 2020.
The article notes that “French energy major Total has secured $14.4 billion funding for its Mozambique liquefied natural gas project in Mozambique”
Total-operated Mozambique’s 12.88 million tonnes per annum (MPTA) LNG project reached FID on June 18, 2019. And production is planned to start 2024.
In September 2019, Total acquire Anadarako’s 26.5 % interest in the Mozambique LNG project for $3.9 billion. Give it a read.