Market Report: Nigeria Introduces New Oil & Gas Regulations

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They facilitate industry expansion, economic development, and prosperity. The regulations cover various aspects, including midstream and downstream operations, natural gas pipeline tariffs, gas pricing and domestic demand, license and permit transfer, petroleum transportation and shipment, and petroleum measurement.

Meanwhile, the Group Managing Director of the Nigerian National Petroleum Corporation Limited (NNPC), Mele Kyari, called for collaboration among oil and gas industry players and policymakers in Africa to prioritize investment in renewable energy infrastructure, research and development, and capacity building.

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Speaking at a forum in Texas, the NNPC director stated that only through collaboration can the continent achieve energy security, transition to cleaner energy, unlock the potential of Africa’s abundant renewable energy resources, and ensure a sustainable and prosperous future for all. Kyari further noted the need for oil and gas industry stakeholders in the continent to seize the landmark opportunities presented by the African Continental Free Trade Area agreement and work collaboratively to address challenges that may arise from energy transition.

Ghana

Ghana’s Minister of Energy, Matthew Opoku Prempeh, stated that the country aims to promote fuel trade and investment between Ghana and Mali, as well as other countries in the sub-region. Speaking during a state visit to Mali, Prempeh stated that deepened economic cooperation would not only promote fuel trade and investment but also strengthen efforts to curb illicit fuel activities, thereby protecting tax revenues and safeguarding the Ghana-Mali corridor.

Minister Prempeh added that the countries have initiated discussions to increase fuel supply while promoting liquefied petroleum gas exports from Ghana into the Malian market.

Global

On Wednesday May 17, oil prices moved in a flat-to-low range in Asian trade as industry data pointed to an unexpected build in U.S. inventories, while weak economic readings from the U.S. and China also dented the outlook for demand. U.S. West Texas Intermediate futures fell 0.6% to $70.47 a barrel by 20:57 ET (00:57 GMT), while Brent futures fell 0.1% to $74.52 a barrel. Both contracts fell about 0.7% on Tuesday.

U.S. crude inventories grew by about 3.7 million barrels in the week to May 12, according to the American Petroleum Institute data, defying predictions of a 1.3-million-barrel drawdown. Additionally, there was a significant decrease in gasoline and distillate inventories. U.S. government plans to begin refilling the Strategic Petroleum Reserve also provided a limited boost to oil prices this week, given that the initial 3-million-barrel buy flagged by the government accounts for a fraction of daily global consumption.

What’s more, weaker-than-expected retail sales and industrial production data from China cut short a recovery in crude prices on Tuesday 16, as investors fretted over a demand recovery in the world’s largest oil importer. A rebound in the dollar also stymied crude prices after a string of Federal Reserve officials offered a hawkish outlook on monetary policy, given that inflation is still running well above the Fed’s 2% annual target.

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Onur Yilmaz

Onur Yilmaz

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