Western divestment could reshape African energy space

2017 ◽  
Keyword(s):  
West Africa ◽  
Oil And Gas ◽  
Group Company ◽  
Content Type ◽  
Oil Companies ◽  
National Oil Companies ◽  
Niger Delta Region ◽  
Oil And Gas Operations ◽  
Royal Dutch Shell ◽  
Sub Saharan

Subject International Oil Companies' divestment in West Africa Significance Royal Dutch Shell is selling its onshore oil and gas operations in Gabon to Assala Energy, a Carlyle Group company, for 587 million dollars. The deal is expected to close later this year and is part of Shell's global 30-billion-dollar divestment to concentrate on its most profitable operations. Other International Oil Companies (IOCs) have been divesting from onshore operations in West Africa since 2010, especially in Nigeria's conflict-prone Niger Delta region. Consequently, indigenous independents (such Seplat, Shoreline Natural Resources and Eroton) and National Oil Companies (NOCs) from developing countries (such as CNPC, Sinopec, Petrobras and Sonangol) are playing an increasing role in sub-Saharan Africa's oil and gas markets. Impacts IOCs will face increasing competition from independents and NOCs for resources, especially in the mature markets of West Africa. The growing role of indigenous independent IOCs will likely benefit African producer states seeking to expand their oil and gas operations. Energy markets in West Africa will mirror wider shifts regionally.

Low oil prices put pressure on China's energy policy

2015 ◽  
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
International Market ◽  
Domestic Demand ◽  
Energy Prices ◽  
Content Type ◽  
Oil Companies ◽  
National Oil Companies ◽  
Financial Pressure ◽  
Difficult Time

Subject Effect of low oil prices on China. Significance China is the world's second-largest oil user and imports nearly 60% of its annual requirements. If oil prices remain below 50 dollars per barrel, China's import bill for crude oil will fall by tens of billions of dollars in 2015, while the national oil companies (NOCs) face a difficult time as their profits from oil production are squeezed. However, the consequences are not straightforward due to the government's role in setting energy prices and the mix of commercial and state objectives of the NOCs. Impacts Financial pressure on China's NOCs will not be as great as on their international counterparts. The NOCs are likely to embark on a spree of buying overseas oil and gas assets. With contracted gas supplies exceeding domestic demand, Chinese LNG importers will sell surplus on the international market.

Entrepreneurial implications of Nigeria's oil industry local content policy

2011 ◽  
Vol 5 (3) ◽  
pp. 223-241 ◽  
Author(s):  
Ugwushi Bellema Ihua ◽  
Olatunde Abiodun Olabowale ◽  
Kamdi Nnanna Eloji ◽  
Chris Ajayi
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
General Level ◽  
Gas Industry ◽  
Content Type ◽  
Oil Companies ◽  
Local Content ◽  
National Oil Companies ◽  
Indigenous Entrepreneurs ◽  
Entrepreneurial Activities

PurposeThe purpose of this paper is to investigate the efficacy of Nigeria's oil and gas industry local content (LC) policy, with particular reference to how the policy has enhanced entrepreneurial activities and served as panacea to resolving some of the country's socio‐economic challenges within the oil‐producing Niger Delta region.Design/methodology/approachSurvey data were randomly obtained from a questionnaire sample of 120 indigenes in Bayelsa, Delta and Rivers states; and subjected to factor‐analysis using varimax rotation to identify the most crucial factors likely to influence the success of the policy. Cronbach's α was also applied to ascertain the reliability of the data and overall agreement amongst respondents.FindingsThe study reveals a general level of indifference amongst the respondents, and an insignificant level of entrepreneurial implication, regarding the LC policy. Notwithstanding, the need to create business prospects, jobs opportunities, and establish special quota arrangements to benefit indigenes of the oil producing host‐communities were found to be most crucial in their assessment of the policy's efficacy.Practical implicationsIt is expected that the policy should stimulate and open up more channels for budding entrepreneurial activities, job opportunities and wealth generation. These would mitigate situations of unwarranted militant activities, social disorder and disguised criminalities such as kidnapping and destruction of oil installations, resulting from perceived marginalisation, massive unemployment and poor living standards experienced within the region.Originality/valueThe study provides insights into how the LC policy, if properly harnessed and judiciously implemented, can generate win‐win outcomes for the nation, multi‐national oil companies, host communities and indigenous entrepreneurs.

African oil and gas acreage push will hasten

2018 ◽  
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Oil Price ◽  
Short Term ◽  
Gas Industry ◽  
Content Type ◽  
Oil Companies ◽  
Service Companies ◽  
National Oil Companies ◽  
Public Expectations

Subject Increased African offshore exploration Significance Offshore West and Southern Africa is seeing a revival of exploration interest as the upstream oil and gas industry recovers following the 2014 oil price crash. Oil majors such as ExxonMobil and BP have snapped up acreage, while firms that already have a footprint in the region are expanding and announcing new drilling plans. The upsurge in activity will bring a short-term economic boost to the countries concerned but -- as with past waves of exploration -- public expectations of imminent windfalls will have to be carefully managed. Impacts Ports and service companies supporting exploration will see an upturn in activity. Pressure will grow on national oil companies and government bodies to improve expertise and infrastructure for future discoveries. Existing licence-holders will face pressure from regional governments to quickly pursue exploration or risk being replaced.

Drilling and Service Contracts in Offshore Oil and Gas Operations

1973 ◽  
Vol 11 (3) ◽  
pp. 480
Author(s):  
J. M. Killey
Keyword(s):  
Oil And Gas ◽  
Oil Industry ◽  
Offshore Drilling ◽  
Oil Companies ◽  
Drilling Rig ◽  
Service Contracts ◽  
Oil And Gas Operations ◽  
Offshore Oil And Gas ◽  
Offshore Oil ◽  
Offshore Operations

As onshore oil and gas deposits are becoming more difficult to locate, and as the world demands for energy continue to increase at an alarming rate, oil companies are channeling much of their exploration activities towards offshore operations, and in particular, towards operations centered off Canada's coast lines. Because of the environment, offshore drilling presents problems which are novel to the onshore-geared oil industry. J. M. Killey discusses in detail many of the considerations involved in drafting the offshore drilling contract, concentrating on problems such as the liability of the various parties; costs; scheduling; pollution; conflict of laws; etc. Similarly, he discusses service contracts (such as supply boat charters; towing services; helicopter services; etc.^ which are necessity to the operation of an offshore drilling rig. To complement his paper, the author has included number of appendices which list the various considerations lawyer must keep in mind when drafting contracts for offshore operations.

Structural modelling of internal risk factors for oil and gas construction projects

2020 ◽  
Vol 14 (5) ◽  
pp. 975-1000
Author(s):  
Mukhtar A. Kassem ◽  
Muhamad Azry Khoiry ◽  
Noraini Hamzah
Keyword(s):  
Risk Factors ◽  
Construction Projects ◽  
Oil And Gas ◽  
Project Success ◽  
Partial Least Square ◽  
Oil Field ◽  
Path Coefficient ◽  
Content Type ◽  
Oil Companies ◽  
The Relationship

Purpose Project failure is the result of one or a combination of several causes of risk factors that are very important to identify for effective performance. This study aims to focus on studying the fundamental relationship between internal risk factors and the negative effect on oil and gas project success in Yemen using the partial least square structural equation modelling (PLS-SEM) method. Design/methodology/approach Data collection was carried out using a formal questionnaire survey of the oil field sector in Yemen by companies involved in mega-oil and gas construction projects. A hierarchical model for determining causative internal risk factors and their effects was developed and evaluated using SEM method by SmartPLS3 software technology. Findings The findings of analyzing model indicate that all categories have a significant effect on project success, while the most significant affected categories in the internal risk factors are project management factors, feasibility study-design and resources-material supply with a path coefficient value of 0.213, 0.197 and 0.186, respectively. Moreover, for the hypotheses test, the positive relationship means that all experimental hypotheses are accepted according to path coefficient value analysis. In addition, the internal risk factors research model shows the ranking of effects on project success starting with project stoppage (loading factor 0.841), cost overruns (loading factor 0.818), time overruns (loading factor 0.726) and project target failure with loading factor 0.539. Research limitations/implications The research was limited to the oil and gas construction projects in Yemen. Practical implications Interpreting the relationship between internal risk factors and their impact on the success of construction projects in the oil and gas sector will assist project team and oil companies in developing risk response strategies and developing appropriate plans to mitigate the effects of risks, which is presented in this paper. Originality/value The paper explains the relationship between cause and effect of internal risk factors in oil and gas projects in Yemen, and is expected to be a guideline for the oil companies and future academic research in the risk management area.

Mexico's shale ambitions will have to wait

2016 ◽  
Keyword(s):  
Economic Development ◽  
High Risk ◽  
Oil And Gas ◽  
Oil Industry ◽  
Oil Price ◽  
Tight Oil ◽  
Shale Oil ◽  
Content Type ◽  
Oil Companies ◽  
Growing Crop

Subject Mexico's massive untapped shale oil and gas reserves. Significance Mexico has enough 'tight oil' and gas reserves to make the country energy independent again, according to some estimates. However, finding and developing those reserves will be a long, costly and high-risk endeavour. Unfortunately for Mexico's energy policymakers, the oil price crash has sapped the industry's appetite and ability to take on the challenge. It will be years before Mexico's shale industry regains the momentum that had started to build before the oil industry downturn. Impacts Mexico will grow increasingly reliant on US natural gas imports, providing opportunities for pipeline and other infrastructure builders. Shale development could bring economic development to some of Mexico's poorest regions. A growing crop of domestic oil companies stands to gain from tight oil production.

ENVIRONMENTAL IONIZING RADIATION DISTRIBUTION IN RIVERS STATE, NIGERIA

2010 ◽  
Vol 18 (2) ◽  
pp. 154-161 ◽  
Author(s):  
Yehuwdah E. Chad-Umoren ◽  
Margaret A. Briggs-Kamara
Keyword(s):  
Ionizing Radiation ◽  
Oil And Gas ◽  
Wide Distribution ◽  
The State ◽  
Radiation Environment ◽  
Campus Environment ◽  
Niger Delta Region ◽  
Riverine Environment ◽  
Oil And Gas Operations ◽  
Rivers State

The distribution of ionizing radiation in Rivers State in the Niger Delta region of Nigeria is studied on the premise that the state ‐ wide distribution of oil and gas operations leads to a homogeneous ionizing radiation environment. The state is sub divided into three self‐ consistent sub environments of an upland college campus environment, a rural riverine environment and an industrial sub zone environment. Available data give a mean dose equivalent of 0.745+ 0.085 mSv/yr (upland campus environment), 0.690+0.170 mSv/yr (rural riverine communities) and 1.270+0.087 mSv/yr (industrial zone) indicating an inhomogeneous radiation profile. The differences may be due to variations in levels of industrial activities and local geological peculiarities. Health implications are also examined. Santrauka Jonizuojančiosios spinduliuotes pasiskirstymas Rivers valstijoje Nigerio deltos regione, Nigerijoje, yra nagrinejamas remiantis prielaida, kad valstijos mastu naftos ir duju veiklos pletra gali tureti itakos aplinkos jonizuojančiosios spinduliuotes homogenizacijai. Tirti pasirinktos trys būdingos aplinkos vietos: universiteto teritorija, esanti vasltijos aukštumoje, kaimo paupio teritorijos bei pramonine aplinka. Gauti rezultatai parode, kad vidutines dozes ekvivalentai atitinkamai pasirinktose vietose yra 0,745±0,085 mSv/yr, 0,690±0,170 mSv/yr ir l,270±0087 mSv/yr. Rezultatai paneige prielaida apie galima aplinkos jonizuojančiosios spinduliuotes homogenizacija. Šiems skirtumams itakos gali tureti nevienodi pramonines veiklos mastai bei vietiniai geologiniai ypatumai. Taip pat darbe skiriama demesio jonizacijos reikšmingumui sveikatai. Резюме Распределение ионизирующего излучения в штате Риверс региона дельты Нила в Нигерии анализируется на основании предпосылки о том, что расширение деятельности по добыче нефти и газа в масштабе штата может оказать влияние на гомогенизацию ионизирующего излучения в окружающей среде. Для исследований были подобраны три наиболее характерных места окружающей среды: территория университета, находящаяся на высоком месте штата, сельские территории вблизи реки и промышленная среда. Полученные результаты показали следующие эквиваленты средних доз в выбранных местах: 0,745±0,085 mSv/yr, 0,690±0,170 mSv/yr и 1,270± 0,087 mSv/yr и опровергли предпосылку о возможной гомогенизации ионизирующего излучения в окружающей среде. Разница в результатах может быть объяснена разными масштабами промышленной деятельности и местными геологическими особенностями. Также обращено внимание на значение ионизации для здоровья людей.

U.S. oil company stock returns and currency fluctuations

2015 ◽  
Vol 41 (9) ◽  
pp. 974-994 ◽  
Author(s):  
Andre Mollick ◽  
Khoa H Nguyen
Keyword(s):  
Financial Crisis ◽  
Stock Returns ◽  
Structural Breaks ◽  
Oil And Gas ◽  
Global Financial Crisis ◽  
Oil Price ◽  
Content Type ◽  
Oil Companies ◽  
Daily Data ◽  
Oil And Gas Sector

Purpose – The purpose of this is paper is to pay a closer look at the 2008-2009 financial crisis (and its aftermath) and analyzes stock returns of nine major US oil companies as well as the oil and gas sector under daily data from January 1992 to April 2012. Design/methodology/approach – The authors adopt the arbitrage pricing theory model to examine the relationship between stock returns and their influences including oil price return, yield spreads, and US dollar index return. The authors also provide a test for structural changes in each regression model of return series to capture for multiple breaks. To examine the asymmetric effect of oil price returns on stock returns, the authors separate oil price returns series into two series: positive changes in oil price and negative changes in oil price. Findings – The authors find stock returns of oil companies as well as the oil and gas sector are positively affected by oil prices and have stronger effects in the downward direction. Interestingly, The authors find the effects of oil price movements on stock returns increase over time. The authors examine the possibility that investors wishing to hedge against a weakening USD invest in US oil companies and find that more than half of these companies benefit from a weaker USD against the JPY, while all strongly benefit from a weaker USD against major currencies. Originality/value – The authors employ daily data for two-decade period including the last global financial crisis. Due to the long-term period covered in this study, sequential Bai-Perron tests are used to detect structural breaks of stock return series. In addition, the data-dependent procedures result in good specifications throughout with white-noise processes in almost all cases.

Turning potential collision into cooperation in Ghana’s oil industry

2015 ◽  
Vol 10 (2) ◽  
pp. 118-131 ◽  
Author(s):  
Kwesi Amponsah-Tawiah ◽  
Kwasi Dartey-Baah ◽  
Kobena Osam
Keyword(s):  
Oil And Gas ◽  
Oil Industry ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Content Type ◽  
Oil Companies ◽  
Critical Issues ◽  
Oil Sector ◽  
Stakeholder Interactions ◽  
Corporate Social

Purpose – This paper aims to examine the potential impact of the presence of oil resource on the Ghanaian society. Specifically, the paper investigates the relationship between key stakeholders in the oil sector, how stakeholder interactions create the potential for collision and advances measures aimed at turning possible collision into cooperation. Design/methodology/approach – The paper uses a literature review-based approach, drawing on existing literature in a number of areas including corporate social responsibility (CSR), oil and gas industry in Ghana and Nigeria as well as communication. Findings – The paper advances that expectations of stakeholders as regards oil being a panacea to all their problems must be managed to avoid possible collision. Additionally, Ghana’s oil industry must identify and engage all stakeholders in planning suitable and sustainable CSR programmes for economic development, thus fostering a friendly environment for oil companies. Transparency and accountability are also needed to promote cooperation rather than collision among stakeholders in Ghana’s oil industry. Originality/value – This paper raises and brings to the fore critical issues that can lead to potential collisions in the oil and gas industry in Ghana if not well-managed, and thus an innovative work in that regard.

scholarly journals National oil companies: business models, challenges, and emerging trends

2013 ◽  
Vol 11 (1) ◽  
pp. 713-722 ◽  
Author(s):  
Saud M. Al-Fattah
Keyword(s):  
Business Models ◽  
Joint Venture ◽  
Oil And Gas ◽  
Oil Companies ◽  
National Oil Companies ◽  
Emerging Trends ◽  
Challenges And Opportunities ◽  
Oil Company ◽  
Gas Supply

This paper provides an assessment and a review of the national oil companies’ (NOCs) business models, challenges and opportunities, their strategies and emerging trends. The role of the national oil company (NOC) continues to evolve as the global energy landscape changes to reflect variations in demand, discovery of new ultra-deep water oil deposits, and national and geopolitical developments. NOCs, traditionally viewed as the custodians of their country’s natural resources, have generally owned and managed the complete national oil and gas supply chain from upstream to downstream activities. In recent years, NOCs have emerged not only as joint venture partners globally with the major oil companies, but increasingly as competitors to the International Oil Companies (IOCs). Many NOCs are now more active in mergers and acquisitions (M&A), thereby increasing the number of NOCs seeking international upstream and downstream acquisition and asset targets

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