Latest news with #petroleum
Russia Today
21 hours ago
- Business
- Russia Today
Crudely choked: Why must this nation struggle to refine its own oil?
The Dangote Petroleum Refinery in Nigeria, one of the largest oil refineries in the world, with a capacity of over 600,000 barrels per day (accounting for 0.5% of global refining capacity), is well-known beyond Africa thanks to global media reports. Initially, the media discussed this ambitious vision of Africa's richest man, Aliko Dangote, who aimed to tackle the fuel shortage in his home country by building a $20 billion oil refinery. Later, there were reports about construction delays and bureaucratic hurdles; after the refinery was finally launched in May 2023, stories emerged about conflicts between Dangote and the Nigerian government regarding oil and gasoline prices. The refinery's significance has been noted by the Economic Community of West African States (ECOWAS), which has referred to it as a 'beacon of hope' for the struggling regional market. Nigerian President Bola Tinubu, who visited the facility on June 6, called it 'a great phenomenon of our time.' However, the Dangote Refinery also serves as an example of the challenges that many African nations (many of which are not as wealthy as Nigeria) face on their path to economic prosperity, industrialization, and self-sufficiency. Fuel and petroleum products are essential commodities for any economy. They are critical for the operation of transportation infrastructure and energy systems, and play a vital role in industries and construction. Despite the fact that Africa exports at least 4.7 million barrels of oil per day, it still finds itself importing approximately 2.8 million barrels per day, incurring costs of around $100 billion each year. Paradoxically, Nigeria – one of the largest exporters and producers of oil, a member of OPEC and OPEC+ – until recently had been forced to import refined petroleum products (about 500,000 barrels per day). Nigeria's oil refining sector emerged in the 1970s-1980s and had a peak capacity of around 500,000 barrels per day; however, it suffered considerable decline in the 1990s and 2000s due to liberalization and market reforms. Equipment became outdated, and the government spent over a decade unsuccessfully searching for foreign investors to modernize the old refineries. International traders, exporters, trading cartels, and local business associates benefit from keeping countries reliant on imported petroleum products, and reap stable profits from trading margins. The bulk of profits in oil trading comes not just from differences in raw material costs, but also from ancillary operations like hedging, insurance, chartering, transportation, and transshipment. These logistical and financial services form the backbone of global trading business models. This means that the emergence of a domestic refining industry and the launch of oil refineries are detrimental to their interests. Both formal pressure (such as WTO regulations) and informal methods (involving corruption) have been employed to stifle projects aimed at enhancing Africa's domestic oil refining capabilities. Nigeria stands as one of Africa's most developed nations, boasting a population of over 200 million, a growing economy with a robust domestic capital market, and its own billionaires; this allows the country to take the first (even if still unstable) steps toward energy sovereignty. Local businesses, possessing a deeper understanding of African market dynamics, have the potential to drive growth in regional trade and industry. This context sheds light on the construction and launch of Africa's largest oil refinery, owned by Aliko Dangote, the wealthiest person in Africa, whose net worth is estimated at $23 billion. The project is indeed impressive: the Dangote Refinery accounts for about 0.5% of the world's oil refining capacity and over a quarter of all refining capacity in Africa. The project is valued at more than $20 billion and features a high-tech facility equipped with state-of-the-art equipment from around the globe. It produces a wide range of petroleum products, including gasoline, diesel, jet fuel, kerosene, liquefied petroleum gas (LPG), propane, butane, bitumen, naphtha, and fuel oil. This refinery should reduce Nigeria's dependence on imported petroleum products, which cost the nation over $22 billion annually. However, despite being operational for two years, the refinery has faced numerous challenges, particularly pushback from various industry players. In a rather absurd twist, the refinery has been forced to import crude oil from the US instead of sourcing it from local producers. This situation has arisen because multinational corporations like Shell, Chevron, ExxonMobil, and Total, from which the Nigerian National Petroleum Company (NNPC) offtakes crude, prefer exporting crude, since prices are higher in international markets, allowing for greater profit margins. These companies invest in expensive deepwater fields offshore, and export directly to Europe and China. Meanwhile, smaller Nigerian companies operating on less lucrative onshore fields often struggle with technological and financial limitations; this worsens access to crude in the domestic market. Furthermore, for the past two decades, the market has remained rudimentary, with minimal demand for crude due to the lack of local refining capacity. Aliko Dangote's influence has so far enabled him to secure the necessary preferences that benefit the entire domestic market. In 2024, a 'naira-for-crude' deal was introduced, requiring oil producers to sell a portion of their crude oil on the domestic market in naira [the local Nigerian currency]. This measure aims to stabilize the national currency, reduce dollar demand, and foster the growth of the local oil refining sector. Such a model promotes value-added growth within the country, supports import substitution, and could lay the groundwork for an independent fuel sector free from external supply chains. However, this strategy doesn't benefit everyone. The mandatory sale of crude in naira decreases profitability for oil producers, especially multinational companies that rely on foreign currency payments. These tensions led to a temporary suspension of the program, but in April, it was reinstated. A recent visit by a delegation led by President Bola Tinubu to the refinery indicates that some of these conflicts have been resolved. The launch of a major project like the Dangote Refinery creates a cumulative effect that extends well beyond a single industry. It helps build a domestic market not just for petroleum products, but also for crude oil, fundamentally altering the structure of supply and demand within the country. In order to ensure the sustainable utilization of such capacities, the government is reevaluating its economic policies: it is granting meaningful incentives to local businesses, establishing supportive mechanisms like 'naira for crude,' and increasing pressure on foreign investors to redirect a portion of their production to the domestic market. All these efforts contribute to strengthening the naira by lowering demand for foreign currencies, stabilizing the balance of payments, and fostering the development of local production and financial systems, thus strengthening the country's economic sovereignty.
Zawya
a day ago
- Business
- Zawya
Egypt PM warns of higher oil prices from regional war after first Crisis Committee meeting
Egypt's Prime Minister Mostafa Madbouly on Wednesday warned that a continuation of the current regional conflict could lead to higher petroleum prices and potential shortages, after chairing the first meeting of a newly formed 'Crisis Committee' to manage the fallout. The committee was established to monitor the repercussions of the military escalation between Israel and Iran. Madbouly stated he had directed ministers to prepare for various scenarios to handle the consequences. 'The continuation of the current war could lead to a rise in petroleum prices, and there could even be a crisis in their availability,' Madbouly said in a press conference following the meeting. 'If the current crisis continues, it could drag the region into a regional war.' He added: 'We have no choice but to work on all scenarios, and I pray to God there are no worse scenarios.' While addressing the external threats, Madbouly also sought to reassure the public about the domestic economic situation, stating that strategic commodity reserves were secure and that the government was working to ensure market stability. 'Things are stable, and we will stand against any attempt to create a crisis out of nothing,' he said, adding that strategic goods were at their 'highest levels of security.' On the energy front, he announced that two new petroleum fields in the Western Desert are set to come into service next month, which will help boost local production. He acknowledged that temporary measures had been taken to reduce pressure on the national gas system, including briefly halting operations at some gas-powered factories. He said the government was in communication with these factories to mitigate the effects and offer compensatory incentives. Madbouly assured the public that the gas issue would be fully resolved before the end of the current month with the arrival of new regasification vessels. 'The solutions we are working on will secure the state from any future stoppage in supplies,' he said. Regarding electricity, Madbouly stated that there was no load shedding 'at this stage,' but he noted that power cuts due to transformer failures could occur as summer temperatures rise. The first meeting of the 'Crisis Committee' was attended by a host of senior officials, including the ministers of industry, finance, planning, electricity, petroleum, and foreign affairs, as well as the central bank governor and representatives from the ministries of defence and interior, general intelligence, and the administrative control authority. The prime minister's office said the committee was formed to monitor developments 'on a moment-by-moment basis' and to deal with any emerging situations. © 2024 Daily News Egypt. Provided by SyndiGate Media Inc. (
Zawya
2 days ago
- Business
- Zawya
Shell Trading & Shipping's Filippo Bof Joins Angola Oil & Gas (AOG) 2025
Filippo Bof, Head of Business Development: Africa and Med at Shell Trading&Shipping – the trading and supply branch of energy major Shell – will speak at this year's Angola Oil&Gas (AOG) conference. Taking place on September 3-4 in Luanda, the event is the official meeting platform for the country's hydrocarbon sector, uniting investors and operators from across the entire petroleum value chain. With a prominent presence in Africa, Shell Trading&Shipping is well-positioned to lead discussions on enhancing regional trade and petroleum distribution. During AOG 2025, Bof will participate in a panel discussion titled: From Extraction to Expansion: Financing Angola's Oil&Gas' Development, where he is expected to share insight into the role of multilateral lenders, development banks and private equity in unlocking projects across the value chain. Shell Trading&Shipping is seeking new opportunities to finance oil and gas projects, and with its expertise in hydrocarbon trade, stands to play an instrumental role in supporting the next wave of downstream developments in Angola. AOG is the largest oil and gas event in Angola. Taking place with the full support of the Ministry of Mineral Resources, Oil and Gas; the National Oil, Gas and Biofuels Agency; the Petroleum Derivatives Regulatory Institute; national oil company Sonangol; and the African Energy Chamber; the event is a platform to sign deals and advance Angola's oil and gas industry. To sponsor or participate as a delegate, please contact sales@ As sub-Saharan Africa's second-largest oil producer, Angola has ambitions to position itself as a regional petroleum hub. The country is accelerating the development of downstream infrastructure to achieve this goal, with projects underway in refining, petrochemical production and cross-border pipelines. Upcoming refining projects include the first phase of the Cabinda Refinery (30,000 bpd); the Lobito Refinery (200,000 bpd) and the Soyo Refinery (150,000 bpd). The Cabinda Refinery is expected to begin operations in 2025 while Angola is currently seeking $4.8 billion to bridge the financing gap for the Lobito Refinery. Additionally, the country has signed an agreement with Zambia for the development of a 1,400 km pipeline linking the Lobito Refinery to Zambia's capital city Lusaka. Technical work for the pipeline was completed in 2024. In addition to crude facilities, Angola strives to diversify its economy through natural gas projects. The country currently exports natural gas as LNG, primarily through its sole LNG facility in Soyo. Looking ahead, Angola seeks to develop steel and petrochemical manufacturing, while accelerating regional LPG distribution. These developments highlight a unique investment opportunity for global financiers, project developers and traders. Shell Trading&Shipping – with its global network of trading teams, shipping and maritime capabilities – offers an integrated network of supply and distribution abilities, and as such, has emerged as a strong partner for Angola as it strives to bolster exports and regional distribution. Distributed by APO Group on behalf of Energy Capital&Power.
Yahoo
2 days ago
- Business
- Yahoo
Global Refinery Alkylation Units Industry Outlook Report 2025-2030 - Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Alkylation Units
The global refinery alkylation units' capacity faced slow growth from 2020 to 2024 due to the COVID-19 pandemic's impact on demand. However, future prospects look promising with increased demand and infrastructure modernization. Access updated global data on active and upcoming units and discover industry growth opportunities. Dublin, June 18, 2025 (GLOBE NEWSWIRE) -- The "Global Refinery Alkylation Units Outlook to 2030 - Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Alkylation Units" report has been added to global refinery alkylation units' capacity experienced subdued growth during the 2020 to 2024 period, largely due to the economic slowdown induced by the COVID-19 pandemic. The pandemic led to a decrease in transportation and industrial activities, which in turn reduced the demand for refined petroleum products. However, strong demand for petroleum products and modernization of refining infrastructure are primarily anticipated to drive the alkylation units' capacity going Updated information on all active and upcoming (planned and announced) refinery alkylation units globally. Provides key details such as refinery name, operator name, and status for all active, suspended, planned, and announced refinery alkylation units in a country. Provides an annual breakdown of new-build and expansion capital expenditure outlook by region and by key countries for the period 2025-2030. Reasons to Buy Obtain the most up-to-date information available on all active, suspended, planned, and announced refinery alkylation units globally Identify growth segments and opportunities in the refinery alkylation industry Facilitate decision making on the basis of strong refinery alkylation units' capacity and capex data Assess your competitor's refinery alkylation units' portfolio Key Topics Covered: 01. Global Refinery Alkylation Units Outlook Key Highlights Global Refinery Alkylation Units' Capacity by Key Regions Global Alkylation Units' Capacity Additions Through New and Existing Refinery Expansions by Key Regions and Countries Global Annual New Build and Expansion Capital Expenditure Outlook for Refinery Alkylation Units by Region and Key Countries Global Refinery Alkylation, Major Planned and Announced Alkylation Units 02. Asia Refinery Alkylation Units Outlook Asia Refinery Alkylation Units' Capacity by Key Countries Asia - Alkylation Units' Capacity Additions Through New and Existing Refinery Expansions by Key Countries Asia - Annual New Build and Expansion Capital Expenditure Outlook for Refinery Alkylation Units by Key Countries 03. Africa Refinery Alkylation Units Outlook Africa Refinery Alkylation Units' Capacity by Key Countries Africa - Alkylation Units' Capacity Additions Through New and Existing Refinery Expansions by Key Countries Africa - Annual New Build and Expansion Capital Expenditure Outlook for Refinery Alkylation Units by Key Countries 04. Middle East Refinery Alkylation Units Outlook Middle East Refinery Alkylation Units' Capacity by Key Countries Middle East - Alkylation Units' Capacity Additions Through New and Existing Refinery Expansions by Key Countries Middle East - Annual New Build and Expansion Capital Expenditure Outlook for Refinery Alkylation Units by Key Countries 05. North America Refinery Alkylation Units Outlook North America Refinery Alkylation Units' Capacity by Key Countries North America - Refinery Alkylation Units' Capacity Additions and Capital Expenditure Outlook 06. South America Refinery Alkylation Units Outlook South America Refinery Alkylation Units' Capacity by Key Countries South America - Refinery Alkylation Units' Capacity Additions and Capital Expenditure Outlook 07. FSU Refinery Alkylation Units Outlook FSU Refinery Alkylation Units' Capacity by Key Countries FSU - Alkylation Units' Capacity Additions Through New and Existing Refinery Expansions by Key Countries FSU - Annual New Build and Expansion Capital Expenditure Outlook for Refinery Alkylation Units by Key Countries 08. Central America Refinery Alkylation Units Outlook Central America Refinery Alkylation Units' Capacity by Key Countries Central America - Refinery Alkylation Units' Capacity Additions and Capital Expenditure Outlook 09. Europe Refinery Alkylation Units Outlook Europe Refinery Alkylation Units' Capacity by Key Countries Europe - Refinery Alkylation Units' Capacity Additions and Capital Expenditure Outlook 10. Refinery Alkylation Units Outlook of Other Regions Caribbean Refinery Alkylation Units' Capacity by Key Countries Oceania Refinery Alkylation Units' Capacity by Key Countries 11. Appendix For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
Bloomberg
3 days ago
- Business
- Bloomberg
Diesel Prices Surge as Israel-Iran War Further Pressures Market
Diesel prices kept rising on Tuesday as concerns about Middle Eastern supplies — a consequence of the Israel-Iran conflict — piled pressure on an already tight market. The premium of benchmark futures to crude in Europe breached $20 a barrel, the third straight day of sharp gains, fair value data compiled by Bloomberg show. It's a clear sign of traders' concerns about the potential disruption to Middle Eastern exports — a key supply source for the world's biggest petroleum product market.
