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Oil & Gas News

Opportune time for LPG growth

By: Cameron Mackay 24th April 2020 The local liquified petroleum gas (LPG) market is an underdeveloped industry and has significant growth potential, largely owing to its use as an energy source, says the Liquefied Petroleum Gas (LPG) Safety Association of South Africa acting MD Nirvan Brijlal. Moreover, he highlights the... →

Total acquires Tullow’s Uganda Lake Albert project interest for $575m

By: Simone Liedtke 23rd April 2020 Petroleum refiner Total and multinational oil and gas company Tullow have entered into an agreement through which Total will buy Tullow’s entire interests in the Uganda Lake Albert development project, including the East African crude oil pipeline. Under the terms of the deal, Total will acquire... →

Sasol cuts output as Covid-19 eats into fuels and chemicals demand

By: Terence Creamer 23rd April 2020 Embattled chemicals and energy group Sasol reports that South Africa’s lockdown is having a significant impact on fuel demand, as well as demand for chemicals used in the mining and construction sectors. The JSE-listed group has, therefore, been forced to curtail production at certain plants. In... →

Crude production cuts in US too slow to support price – GlobalData

By: Tasneem Bulbulia 22nd April 2020 Crude oil production cuts in the US are too slow to support the price as storage runs out by mid-May, says data and analytics company GlobalData. This follows the historic fall of the West Texas Intermediate (WTI) futures price for May delivery into negative territory, going as low as negative... →

Oil plunges below zero for first time with May contract ending

By: Bloomberg 20th April 2020 Oil futures collapsed to below zero for the first time ever as the deepening economic turmoil caused by the coronavirus crisis left traders desperate to avoid taking delivery of physical crude. In an unprecedented day of trading, the price for the May contracts wiped out all value, breaking... →

Nordgold to build new power plant at Guinea mine

By: Tasneem Bulbulia 20th April 2020 Diversified gold producer Nordgold Group has signed an engineering, procurement and construction agreement with Chinese manufacturing service group SUMEC, a key member of China National Machinery Industry Corporation, to design and build a 33 MW power plant at its Lefa mine – one of the largest... →

AfDB refutes media reports relating to East African crude oil pipeline project

By: Donna Slater 20th April 2020 Development finance institution, the African Development Bank (AfDB) has refuted allegations reported on by a news outlet stating that the bank plans to provide financial support to the East African crude oil pipeline project. The article references a letter by a group of civil society... →

M&R warns of impact of Covid-19 on full-year earnings

By: Marleny Arnoldi 17th April 2020 JSE-listed engineering and construction services group Murray & Roberts (M&R) continues to experience the impact on its projects from measures to contain the spread of Covid-19. In South Africa, the group is impacted by the extended lockdown period to end-April, and in Australasia and the... →

Restrictions eased on various industries as South Africa enters extended lockdown phase

By: Terence Creamer 16th April 2020 The South African government announced the easing of lockdown restrictions for parts of the logistics, retail, services, mining and energy sectors on April 16, as the country entered the second phase of what was initially meant to be a 21-day nationwide lockdown in response to the Covid-19... →

Cooperative Governance and Traditional Affairs Minister Nkosazana Dlamini-Zuma

Business is booming for supplier

By: Darren Parker 10th April 2020 Stainless steel vessels and tanks supplier Metal Tank Industries has noted a definite market upswing in the past eight months, particularly in the food and beverage sector, as well as in the industrial sector, in terms of mineral oils, petroleum oils, chemicals and agrochemicals production.... →

MAKING IT WORK Metal Tank Industries’ streamlined production processes has helped it become more competitive in terms of costing

Mozambique expansion key for gas supplier

By: Darren Parker 10th April 2020 JSE-listed gas supplier Afrox has committed a R75-million capital investment to establish and develop a new regional branch in Pemba and an on-site store in Palma, both in Mozambique, over the next few years. Afrox Mozambique currently has no presence in the northern region of the country, which... →

EXPANDING GAS Afrox’s R75-million investment into Mozambique is aimed at taking full advantage of the country’s offshore liquid natural gas development

Interior tank cleaning made easier through rope access

By: Darren Parker 10th April 2020 Work at height company Skyriders is cleaning the interiors of large storage tanks for a major petrochemicals producer, in Mpumalanga, using rope access. Having completed its first cleaning scope of the year in February, it started its second cleaning in late March. →

ROPING IN THE PROS In many cases, a client’s maintenance and inspection budgets can be stretched further by using rope access

Wentworth delays release of financial results until later in April

By: Donna Slater 8th April 2020 As a result of the impact of the Covid-19 pandemic, Aim-listed independent, East Africa-focused natural gas company Wentworth is delaying the release of its full year financial results, which were due to be released on April 8, to later in the month. The company was also compelled by the level of... →

Sasol says Natref refinery to be temporarily shut, synfuels output reduced

By: Tasneem Bulbulia 8th April 2020 The national Covid-19 lockdown has resulted in an unprecedented decline in fuel demand in South Africa. Chemicals company Sasol and Total South Africa have, therefore, decided to suspend production of fuel at the Natref refinery from April 9, until further notice. →

Photo by Creamer Media
Sasol Natref

Chemicals industry likely to face longer-than-expected downturn, says ICIS

By: Donna Slater 7th April 2020 The Independent Commodity Intelligence Service (ICIS) has warned the international chemical sector to prepare for an extended downturn along with lower-for-longer oil prices, both of which will have big implications for profitability and investments. ICIS demand forecasting lead analyst Rhian... →

ENS Africa unpacks amendments to the MPRDA

By: Marleny Arnoldi 2nd April 2020 Law firm ENS Africa has unpacked some of the amendments made to the Mineral and Petroleum Resources Development Act (MPRDA), which came into effect from March 27. The publication of the amended regulations follows the publication of the Draft Amendments to the MPRDA, which was published for... →

Sasol advises of capacity reductions, further credit downgrades

By: Marleny Arnoldi 31st March 2020 Although JSE-listed chemicals company Sasol is permitted to operate during South Africa’s lockdown period, ending April 16, it has advised that some plants will be operated at lower capacity, or even shut down, owing to lower product offtake during this time. The company explains that some... →

Chemicals, oil projects under threat following coronavirus outbreak

By: Simone Liedtke 23rd March 2020 In the wake of the coronavirus (Covid-19) outbreak and collapse in crude oil prices, midstream chemicals, oil and gas companies must cut capital expenditure (capex) for growth projects to preserve cash, Independent Commodity Intelligence Services (Icis) said in a statement on Monday. The US and... →

Sasol appoints Harper to board, audit committee

By: Marleny Arnoldi 23rd March 2020 JSE-listed petrochemicals company Sasol has appointed Katharine Harper independent nonexecutive director and audit committee member, effective April 1. Harper, who is based in the US, is currently the CFO of global logistics company BDP International. She also serves as a nonexecutive director... →

Privatisation slowly becoming reality

By: Tracy Hancock 20th March 2020 The type of participants attending this year’s Power & Electricity World Africa & The Solar Show are proof that Africa seeks to become less reliant on governments for its electricity supply, says event organiser Terrapinn Power & Electricity World Africa conference producer Caroline Mubima.... →

DRIVEN DISCUSSION The growing adoption of electric vehicles is one trend expected to dominate discussion at Power & Electricity World Africa 2020

Size of possible Sasol rights issue hangs on asset-disposal and savings progress

By: Terence Creamer 17th March 2020 The eventual size of Sasol’s possible rights issue – tentatively capped at $2-billion – will depend on progress the group makes in the coming months with its cash-conservation and asset-disposal programmes, initiated in an effort to reduce its $10-billion debt burden by $6-billion by the end of... →

Sasol CEO Fleetwood Grobler (left) and CFO Paul Victor

Sasol includes $2bn rights-issue option in plan to reset capital structure

By: Terence Creamer 17th March 2020 Debt-laden chemicals and energy group Sasol announced on Tuesday that it could pursue a $2-billion rights issue as a “supplemental initiative” in the event that cash-conservation initiatives and asset disposals proved insufficient to reset its capital structure. The JSE-listed group had set a... →

Oil falls deeper into turmoil triggered by epic demand collapse

By: Bloomberg 16th March 2020 Oil’s spectacular collapse deepened as widening global efforts to fight the spread of coronavirus were set to trigger the most severe contraction in annual oil demand in history. Futures tumbled by more than 6% after plunging by a quarter last week -- the largest drop since 2008. Even a massive... →

Shares in South Africa's Sasol jump nearly 30% as oil price recovery sparks buying

By: Reuters 13th March 2020 Shares in South African petrochemicals group Sasol surged nearly 30% on Friday as a recovery in oil prices sparked buying of the stock, which was pummelled in the previous session. Brent crude prices rose over 3% on Friday after falling more than 7% the day before, a drop which helped send Sasol... →

Sasol confirms possible equity issue as it breaks silence amid massive sell-off

By: Terence Creamer 12th March 2020 Chemicals and energy group Sasol, which has seen its market capitalisation decimated in recent days as a result of a series of adverse developments, including a ratings downgrade, a big slump in the oil price and Covid-19-induced market volatility, broke its silence on Thursday afternoon when it... →

Johannesburg stocks plunge most since 1997 in ‘panic’ sell-off

By: Bloomberg 12th March 2020 South Africa’s benchmark stock index plunged the most since the market crash of October 1997 as reaction to US measures aimed at curbing the spread of the coronavirus accelerated the sell-off sweeping through global equities. The FTSE/JSE Africa All Share Index sank as much as 9.3% as of 3:34... →

Shell reports 41% rise in onshore Nigeria oil spills due to sabotage

By: Reuters 12th March 2020 Royal Dutch Shell's onshore Nigeria subsidiary saw a 41% rise in the number of crude oil spills due to theft or pipeline sabotage in 2019, the group said in its annual report. Shell Petroleum Development Company of Nigeria (SPDC) also recorded a rise in the volume of oil spilt in the Niger Delta... →

Opec sees no oil demand growth in 2020 as virus batters forecast

By: Bloomberg 11th March 2020 Opec expects there will effectively be no growth in global oil demand this year, slashing its forecasts as the coronavirus hits the world economy. Having expected a month ago that fuel consumption would increase by just under 1-million barrels a day, or 1%, in 2020, the group said in a report on... →

Amid Saudi-Russian oil price war, other Opec States sound alarm

By: Reuters 11th March 2020 While Opec's de facto leader Saudi Arabia trades blows in a war for market share with Russia after their three-year pact to cut oil supplies collapsed last week, other Opec States are already sounding the alarm over plunging oil prices. Crude lost as much as a third of its value this week after... →

Five LPG companies to answer to allegations of price fixing

By: Marleny Arnoldi 9th March 2020 Five liquefied petroleum gas (LPG) companies will have to answer to allegations of price fixing in a hearing to be heard by the Competition Tribunal from Tuesday. The companies – Totalgas Southern Africa, Oryx Oil South Africa, KayaGas, Easigas and African Oxygen (Afrox) – have been under... →

IEA expects 90 000 bbl/d fall in oil demand as a result of Covid-19

By: Marleny Arnoldi 9th March 2020 The International Energy Agency (IEA) expects global oil demand to decline this year as the impact of the Covid-19 virus continues to spread around the world. The extent of the global impact of the virus is still uncertain, but demand for oil has nonetheless dropped for the first time since... →

Oil drops 31% in worst loss since Gulf War as price fight erupts

By: Bloomberg 9th March 2020 Oil markets crashed more than 30% after the disintegration of the OPEC+ alliance triggered an all-out price war between Saudi Arabia and Russia that is likely to have sweeping political and economic consequences. Brent futures suffered the second-largest decline on record in the opening seconds... →

Opec+ on brink of failure as Russia resists deeper oil cuts

By: Bloomberg 6th March 2020 Russia resisted pressure from its Opec allies to make deeper production cuts, pushing the cartel’s high-stakes diplomatic gamble to the brink of failure and sending prices plunging. Energy Minister Alexander Novak arrived from Moscow on Friday morning and told fellow ministers that he favored... →

Lesedi keen to retain nuclear skills built up over years in South Africa

By: Kim Cloete 5th March 2020 South African engineering, procurement, construction and maintenance company Lesedi is keen to use its nuclear expertise and skills in South Africa and other African countries and is also looking to expand its focus to Saudi Arabia and Abu Dhabi. Lesedi has diversified its business and is active... →

Photo by Creamer Media
Koeberg power station

M&R’s order book rises to R50.8bn on back of oil and gas platform recovery

By: Terence Creamer 4th March 2020 Specialised engineering and construction group Murray & Roberts (M&R) reported on Wednesday that its order book had increased to R50.8-billion during the interim period to the end of December, up 60% on the R31.7-billion level reported for the corresponding period in the previous year. The... →

Healthcare business gives Afrox’s earnings, profits a boost

By: Marleny Arnoldi 4th March 2020 Growth in strategic markets, solid price cost inflation recovery, continued productivity gains from efficiency projects and the positive impact of restructuring activities contributed to a 23.3% year-on-year increase in earnings before interest and taxes for JSE-listed African Oxygen (Afrox) in... →

Afrox CEO Schalk Venter discusses the company's performance in 2019

Africa urged to ramp up its energy investment

By: Kim Cloete 4th March 2020 Getting more energy to more people in Africa is imperative, particularly as the continent's population is set to soar over the next few decades, the Africa Energy Indaba has heard. “This is an opportunity for all of us to move forward faster and further together,” World Energy Council secretary... →

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