Business News
Total forecasts $100 per barrel for crude, but expresses worry
Patrick Pouyanne said the future looks bright for global crude oil prices.
The Global Chief Executive Officer of Total SA, Mr Patrick Pouyanne, today said the future looks bright for global crude oil prices. But he is worried there might also be negative implications.
Mr Pouyanne, who told this to Bloomberg, stated that his forecast is based on the economic sanctions imposed on Iran, as well as political instability in Venezuela which have both led to the reduction in oil output.
Therefore, these factors combined would facilitate the continued oil price rallying, pushing it up to about $100 per barrel; a range that was last seen in 2014.
On the potential negative implications…
Meanwhile, Mr Pouyanne also expressed worry over this development. According to him, the potential negative implications are such that could affect both the global economy and the oil industry itself.
He said the projected double digits spike in crude prices could become a drag on growth, hampering development in emerging economies of the world whilst posing threats to the oil industry itself; even as alternative fossil energy providers take competitive advantage.
“I’m not sure it’s a good news, even for the oil industry; because you know when the price goes too high, then you open the door to your competitors.” – Pouyanne
A shortage in supply is encouraging price hike and America’s Trump is causing it
Recall that US President, Donald J. Trump, had recently demanded that members of the Organisation of Petroleum Exporting Countries (OPEC) immediately reduce crude prices or risk America’s disfavour. This was turned down by OPEC who stated that they cannot manipulate the price at which the commodity is traded.
It is important to note that Trump himself played a major role in facilitating the price hike. He imposed sanctions on Iranian oil, thereby cutting off supplies from the Gulf nation and by so doing, reduced overall crude output which ultimately resulted in a price hike.
He recently lashed out at Iran once again while chairing the UN Security Council Meeting on Wednesday, making comments that suggested the possibility of more impending sanctions for Iran.
The US Government has said it will not tap into its crude reserves in efforts to increase global crude output and crash the price. This is because as the country’s Energy Secretary (Rick Perry) said, doing this would “fairly minor and short-term impact.”
In the meantime, the continuous rally in crude prices is good for Nigeria. This is because the country’s economy is largely dependent on foreign exchange earned through crude exportation.
Macro-Economic News
BREAKING: Nigeria’s inflation rate surges to 18.17% in March 2021
Nigeria’s inflation rate for the month of March 2020, rose to 18.17% from 17.33% recorded in February 2021.
Business News
BUA Group, French company announce progress in 200,000 bpd refinery project
This is coming about 6 months after both firms signed an agreement for the supply of process technologies and the design of the facility.
The BUA Group and Axens, a French-based petroleum technology company, have both signed a progress acknowledgement statement for the proposed BUA multi-billion-dollar integrated 200,000 barrels per day refinery in Akwa Ibom State.
This is coming about 6 months after both firms signed an agreement for the supply of process technologies and the design of the facility.
BUA, while making the disclosure in a statement on Wednesday, April 14, 2021, said that the French President, Emmanuel Macron, commended its Chairman, Abdul Samad Rabiu, for his commitment to developing lasting relationships between French and Nigerian businesses.
READ: What the $1.5 billion Port Harcourt refinery deal means to us – Maire Tecnimont
The statement said that this came as the French Minister for Foreign Trade and Economic Attractiveness, Franck Riester, paid a visit to the BUA Group Headquarters in Lagos where he handed over a personal invitation from Macron to Rabiu to attend the Choose France Summit in June in Paris representing business leaders from Nigeria and Africa.
The French minister also witnessed the signing of a progress acknowledgement statement between BUA Group and Axens of France for the proposed refinery project, according to the statement.
The statement also said that during the visit, it was announced that the BUA chairman had been appointed Chairman of the France Nigeria Investment Club.
READ: FG reacts to reports of revoking 32 refinery licenses
While thanking the minister and Macron for their unwavering support in bringing BUA and French businesses together, Rabiu said BUA had so far initiated partnerships and had developed personal relationships with a few French businesses, including Axens.
He expressed confidence in the quality of expertise and technical know-how of the French companies BUA had partnered with.
Rabiu pointed out that the BUA refinery would reduce the huge cost of transporting Nigerian crude offshore, refining it and bringing it back into the country when fully operational.
READ: Abdulsamad Rabiu’s stake in BUA Cement has increased by N1.2 trillion in value since listing in 2020
He said that the choice of Akwa Ibom for the refinery was due to the huge availability of raw materials and its proximity to export petroleum products to regional countries.
The President of Axens, Jean Sentenac, in his statement, said he was pleased that the project was advancing on schedule and expressed delight for the very good cooperation between all the involved parties, reiterating the commitment of Axens in delivering the BUA Refinery Project on time and with the highest standards.
READ: FG to open LPG distribution channels in all local governments
Bottom line
The completion and take-off of the refinery owned by the BUA Group would come as a huge boost for the Federal Government’s effort to stop the importation of refined petroleum products, ensuring that the country becomes a net exporter of these products.
This will also help to conserve the scarce foreign exchange as the completion and take-off of the Dangote refinery and other similar refinery projects will help ensure self-sufficiency in the country.
The BUA Group, just a few days ago, was listed as one of the companies with an active refinery license from the Department of Petroleum Resources (DPR).
President Macron lauds Abdul Samad Rabiu as BUA, Axens make progress on BUA’s 200,000bpd Refinery in Akwa Ibom
…Appoints Abdul Samad Rabiu as Chairman of the French Nigeria Investment Club.
Lagos – 14apr2021
./1 pic.twitter.com/tOoOsDW3lZ
— BUA Group (@BUAgroup) April 14, 2021
