> I just hope Ramaphosa and his government don't screw the pooch and just enrich themselves.
Will you trust Ramaphosa to do the right thing when he cosy's up to the Soros family and the like?
“Africa: A possible solution for Europe’s energy troubles” – Part 1
https://www.orfonline.org/expert-speak/africa-a-possible-solution-for-europes-energy-troubles/
An opportunity for Africa
The rapid rise in oil and gas prices is changing the landscape for Africa’s leading energy powerhouses. However, it is on a political level—as in Europe’s desire to end its dependence on Russian hydrocarbon—where Africa’s economic opportunity truly lies.
Countries in Africa, particularly in the western part of the continent, such as Nigeria, Angola, and Senegal, offer largely untapped potential for LNG [liquified natural gas].
At face value, Africa’s hydrocarbon resources are a promising solution to Europe’s Russian problem. The continent’s vast fossil fuel reserves, its proximity to Europe, and its growing LNG market may tempt European leaders to look southwards. African countries that have traditionally been gas suppliers to Europe are well placed to scale up their exports. This is because certain African countries already have existing pipelines connected with the wider European gas grid across the Mediterranean. Current pipeline exports from the continent to Europe run through Algeria into Spain and from Libya into Italy. It is going to take some time before the new pipelines operationalise.
Just as recently as April 2022, Italy, the world’s eighth largest economy, was the front mover by striking new deals with Angola and the Republic of Congo for natural gas supplies that would help it compensate for its cuts on Russian imports.
This represents a great opportunity for African oil and gas producers with strong ties with European nations, particularly those where Italian supermajors, Eni, has a solid foothold, like Angola, where Eni is a dominant driver in the market. The MoU, signed in Luanda by Italian Foreign Minister Luigi Di Maio and Ecological Transition Minister Roberto Cingolani, establishes the protocols for natural gas trade between the two nations for years to come.
“Africa: A possible solution for Europe’s energy troubles” – Part 2
https://www.orfonline.org/expert-speak/africa-a-possible-solution-for-europes-energy-troubles/
Oil and gas pipelines in Africa
As the conflict in Ukraine rages on, European gas prices have soared. Russia has already halted and cut off gas supplies to countries like Poland, Bulgaria, and Finland over the energy payments dispute. This has led Europe to search for contingency energy supplies, and Africa, by way of proximity, has emerged as the natural choice to replace Russian oil and gas. It is no secret that Africa has some of the world’s deepest gas reserves.
Indispensable to economic and social development, Africa’s rich endowment of oil and gas reserves are projected to catalyse growth across the continent in the long term. In the medium term, African countries could become a proper stopgap solution for natural gas as Europe looks to reduce its dependence and reliance on Moscow “well before 2030”. However, their ability to step in to fill a gap – a demand of anywhere between 50-190 bcm annually that Russia has supplied, is contingent on many factors like adequate energy infrastructure and the capital necessary to build the requisite infrastructure.
As of 2021, Africa’s crude oil reserves amounted to 125.3 billion barrels, while natural gas reserves stood at 625 trillion cubic feet.
There are several ongoing and upcoming oil and gas projects in Africa. Some of the major projects are listed below;
• Trans-Saharan gas pipeline (NIGAL): This is a planned natural gas pipeline expected to run along 4,401 kilometres from Nigeria to Algeria. The project was initially proposed in the 1970s but no progress was made until 2002 when an MoU was signed between Nigerian National Petroleum Corporation (NNPC) and Algerian national oil and gas company, Sonatrach. The cost of the project is estimated to be around US $13 billion and the annual capacity of the pipeline is up to 30 billion cubic meters of natural gas.
• Nigeria-Morocco gas pipeline (NMGP): In 2016, Nigeria and Morocco signed an agreement to develop a 5,560 kilometres pipeline that is expected to connect many West African countries to Europe. The pipeline is intended to deliver Nigeria’s natural gas resources to 13 countries in the West and North Africa as a continuation of the existing West Africa Gas Pipeline (WAGP) between Nigeria, Benin, Ghana, and Togo. The OPEC Fund for International Development is set to contribute US $14.3 million to fund the second phase of the NMGP project’s front-end engineering study.
• Medgaz pipeline project: The Medgaz pipeline is a 210-kilometre subsea pipeline between Beni Saf in Algeria and Almeria in Spain. The pipeline can carry 8 billion cubic metres per year of natural gas. Since the pipeline does not pass through any third countries, it increases the security of supply to southern Europe.
• Trans-Mediterranean pipeline (TRANSMED): This is a 2,475-kilometre pipeline built to transport natural gas from Algeria to Italy via Tunisia and Sicily. The total cost of the project is around US $6.25 billion and has a capacity of 33.5 billion cubic metres annually.
• Tanzania Liquified Natural Gas Project (TLNGP): This project, also known as the Likong’o-Mchinga Liquified Natural Gas Project, has been in the pipeline since Tanzania’s first natural gas discovery in 2010. Tanzania has a proven natural gas reserve of 57tcf with a further 29.5 trillion cubic feet located far offshore. The project is expected to cost around US$30 billion and will have a capacity to produce 10 million tonnes per annum of LNG. Regulatory delays halted the construction of this project which is now expected to start in 2022 and conclude in 2028.
• Rovuma LNG Liquification Plant: The US $30-billion Rovuma LNG Terminal located off the Cabo Delgado coast in northern Mozambique is based on three gas reservoirs in Area 4 block of the Rovuma Basin which contains an estimated 85tcf of natural gas. ExxonMobil is leading the construction and operation of the facility and the facility has a planned capacity of 15.2 million tons of LNG per year.
• Namibe Refinery Complex (NAMREF): The Namibe refinery is proposed to be built at Namibe in Angola and is expected to start operations in 2025. The cost of the project is estimated to be around US $12 billion in which a new 400,000 barrels per day refinery would be built in Namibe, Angola.
“Africa: A possible solution for Europe’s energy troubles” – Part 3
https://www.orfonline.org/expert-speak/africa-a-possible-solution-for-europes-energy-troubles/
Challenges
The plethora of ongoing and upcoming oil and gas projects in Africa underscores the critical opportunity for African countries to play a more central role in the global energy market as European countries look for alternative suppliers. However, if African countries are to take advantage of this opportunity, they need to overcome and address certain bottlenecks.
The foremost issue is the considerable lack of investment in gas infrastructure which has hampered the energy industry, especially in sub-Saharan Africa. This lack of transnational infrastructure makes Africa’s natural gas reserves difficult to export. For African countries to adequately meet Europe’s gas needs by having enough pipelines and adequate storage and processing facilities, they need a significant uptake in investments in African gas and infrastructure by financial institutions, energy companies, and European countries.
Ensuring the security of energy supplies is another challenge. Most of the energy exported from sub-Saharan Africa would need to pass through the Sahelian region. The region faces multiple political, social, economic, and security challenges, which are exacerbated by terrorism, violent extremism, and communal violence. The situation on Africa’s eastern coast is also no different, where Islamist insurgency in Mozambique’s Cabo Delgado forced TotalEnergies to halt work and withdraw its personnel due to growing insecurity.
For the EU, reducing reliance on Russian gas is not going to be an easy task. However, if the capital necessary to build Africa’s gas infrastructure is accrued and the security of energy supplies from the continent is ensured, Africa has the potential to reduce Europe’s energy dependence on Russia.
Zuma may have played along initially but there seems to be a big push against him now.
Ramaphosa became a billionaire since the ANC started ruling the country, so he is living very comfortably.
“'Zuma's self-survival rooted in being ex-ANC intelligence operative'”
https://www.iol.co.za/capetimes/news/zumas-self-survival-rooted-in-being-ex-anc-intelligence-operative-11636924
President Jacob Zuma’s inclination to appoint his close friends into leadership positions, including in the SABC and other state entities, has a lot do with his being a former ANC intelligence operative.
Intelligence officers, according to Professor Somadoda Fikeni, have a tendency to be suspicious of other people and operate on the basis of self-survival and preservation.
Fikeni said Zuma, a former member of Umkhonto we Sizwe and intelligence head of the ANC during the fight against apartheid, had carried with him all those characteristics of an intelligence operative into his reign as president of South Africa.
“Revealed: Glencore bankrolled covert campaign to prop up coal” – Part 1
https://www.theguardian.com/business/2019/mar/07/revealed-glencore-bankrolled-covert-campaign-to-prop-up-coal
6 March 2019
The mining company engaged Sir Lynton Crosby’s firm to push anti-renewables message and counter anti-coal activists
The multinational mining giant Glencore spent millions bankrolling a secret, globally coordinated campaign to prop up coal demand by undermining environmental activists, influencing politicians and spreading sophisticated pro-coal messaging on social media.
An investigation by Guardian Australia can reveal the covert campaign, dubbed “Project Caesar”, was orchestrated by world-renowned political operatives at the C|T Group, the firm founded by Sir Lynton Crosby and Mark Textor.
The C|T Group used teams in Sydney and London to further Glencore’s interests across the globe, including in Australia, according to multiple sources with knowledge of the project and documents seen by Guardian Australia.
Project Caesar began in early 2017 with an annual warchest of between £4m and £7m. Glencore has confirmed the project’s existence but said it moved to shut it down last month to “ensure alignment” with its recent decision to limit coal production for environmental reasons.
The campaign aimed to engage key politicians, both to gauge their views on coal and attempt to convince them of its continuing value.
Intelligence was collected about key coal detractors, including Greenpeace and 350.org, detailing their budgets, social media reach, and issues that could be used to embarrass or undermine them.
A sophisticated digital campaign was mounted to help shift public sentiment towards coal, using messaging informed by research, focus groups and polling conducted in multiple countries.
Campaign teams helped set up online grassroots groups to push positive messaging about clean coal technology, attack renewables and criticise the Australian Labor party. The practice is commonly known as astroturfing.
One source with knowledge of Project Caesar said it was linked to Energy in Australia, a Facebook group and website that attacks renewables, while supporting high efficiency, low emissions (Hele) coal plants through data, memes, graphics and video.
Posts blame renewables for blackouts in South Australia and Victoria, link renewable subsidies to “Saudi billionaires”, and stress a link between solar, wind and rising power prices. The group celebrated the formation of the Monash Forum, a group of federal MPs who speak in support of coal, including Coalition MPs Craig Kelly, George Christensen, and Tony Abbott.
Other posts warn of widespread blackouts due to the planned closure of the Liddell power plant in NSW, and tell followers that wind turbines are “desecrating our Diggers’ graves” in France, using photoshopped imagery of wind farms towering over an Anzac memorial. The wind farm, which was only in planning stages at the time, never went ahead.
Energy in Australia’s content is slickly-produced and its reach is significant. The Facebook page alone is followed by more than 20,000 people. Paid Facebook ads are also used to push posts into the feeds of other users.
Both the Energy in Australia website and Facebook group were taken offline following questions to Glencore and the C|T Group about the links to Project Caesar.
The sites are publicly authorised by a former Queensland Liberal National Party state MP, Matt McEachan.
When contacted by the Guardian, he could not say who else might be producing content for the group, aside from himself and other volunteers.
McEachan would not say who was providing funding, and said he did not know whether the C|T Group was involved in producing content for the site.
“I can’t really give you a comment or statement with any kind of authority in that respect,” he said.
“Revealed: Glencore bankrolled covert campaign to prop up coal” – Part 2
https://www.theguardian.com/business/2019/mar/07/revealed-glencore-bankrolled-covert-campaign-to-prop-up-coal
6 March 2019
Energy in Australia is similar in design and tone to a second pro-coal website, Australian Power Project, which was revealed in 2017 to have links to an employee of the C|T Group. Guardian Australia has found no evidence to suggest the Australian Power Project is part of Project Caesar.
Project Caesar also had a significant traditional media component, seeking to amplify and spread pro-coal voices and messaging in mainstream media sources.
The project had an overarching strategy of shifting the emotion and tone of the energy debate to favour coal by using arguments that were personally relevant to its target audience. Its messaging was centred on themes of cost, reliability and family security.
The campaign contrasts with Glencore’s more recent statement that it would cap global coal output, in part due to investor pressure to act on climate change.
It also potentially contrasted with the aims of another C|T Group client, the Liberal party, whose then leader Malcolm Turnbull was attempting to forge ahead with new reliability and emissions reduction guarantees, which would have reduced Australia’s reliance on coal.
In a statement, Glencore confirmed it had engaged the C|T Group on the project, which it said used research, focus groups, and polling to “better understand public views on coal”.
Glencore also confirmed it deployed a “proactive communications campaign” designed to counter the efforts of environmental activists.
It said the campaign complied with all relevant laws – Guardian Australia is not suggesting otherwise.
“The project also mandated CT Group to conduct a proactive communication campaign on coal in compliance with all relevant legal and regulatory requirements,” the company said in a statement.
“The project’s objective was to convey simple facts about coal and in particular to counter misinformation from environmental activists.”
“Our business continues to engage with a range of stakeholders on the role that coal plays in socio-economic development and enabling access to reliable energy. We also acknowledge the need to transition to a low carbon economy. Glencore’s portfolio of commodities will allow the company to play a key role in this transition.”
Glencore said it told C|T Group to wrap up the project in mid-February to align with its announcement on climate change and the decision to cap coal output.
The C|T Group declined to comment, other than to say:
“All information about our clients is treated with the strictest confidence.”
“Revealed: Glencore bankrolled covert campaign to prop up coal” – Part 3
https://www.theguardian.com/business/2019/mar/07/revealed-glencore-bankrolled-covert-campaign-to-prop-up-coal
6 March 2019
The revelations shed new light on the C|T Group’s inner workings. Crosby, one of its founders, was knighted by the former UK prime minister, David Cameron, and has run the UK Conservative party’s last four general election campaigns.
The strategies employed for Glencore in Project Caesar appear strikingly similar to those offered in a pitch for a £5.5m campaign designed to cancel the 2022 Qatar football World Cup.
The World Cup project, dubbed Project Ball, proposed setting up full-time war rooms across the world, lobbying friendly politicians, academics and journalists, and pushing messaging on social media and astroturfing sites. Project Ball was pitched to a Qatari opposition figure living in London in an attempt to delegitimise the Qatari government and pressure Fifa to “restart the bidding process” for the World Cup hosting rights.
Project Caesar took place as Glencore made other aggressive plays to protect its Australian interests.
In 2017, Glencore mounted a surveillance operation targeting CFMEU members who were picketing its Oaky North mine in central Queensland. Its “clandestine and quasi-military activity” was described as “appalling” by Australia’s industrial relations umpire, the Fair Work Commission.
Glencore employed private investigators to secretly surveil union members using long-lens cameras and video. A map of the homes of key CFMEU members in the nearby town of Tieri was drawn up. Operatives took notes about their movements, reporting back to Glencore on a 24-hour basis.
“Nil Glencore staff members at the piquet [sic] lines in the past 24hrs,” one briefing note obtained by Guardian Australia read.
“Approximately 30 vehicles located at CFMEU guide hall 0800 hours this morning.”
Glencore also launched an operation codenamed Project Zuckerberg to find evidence of potential social media policy breaches in discussions in private Facebook groups used by CFMEU officials at Oaky North.
Documents and images seen by Guardian Australia show Glencore also asked a contractor to enter the lodgings of Oaky North workers when they called in sick. Photos of their empty beds were taken to help build evidence against the workers.
Guardian Australia has not found evidence to suggest the actions taken against the CFMEU Oaky North members were linked to Project Caesar.
Glencore’s actions in Africa have also come under close scrutiny in recent years.
The Paradise Papers, a leaked cache of millions of documents, showed how the commodities giant acted to further its mining interests in the Democratic Republic of Congo.
The company engaged the mining magnate and Israeli billionaire Dan Gertler to negotiate with the DRC government in 2009, giving him a $45m loan in pledged shares repayable if agreement was not reached within three months. The loan was repaid in 2010.
Gertler had previously been cited by a 2001 UN investigation that said he had given DRC’s president $20m to buy weapons to help fight rebel groups in exchange for a monopoly on the country’s diamonds. Gertler strongly denies the allegations.
“Glencore: the monster has landed!”
http://www.minesandcommunities.org/article.php?a=10916
Published by MAC on 2011-05-24
Source: Money Morning, Business Spectator, The Guardian
On May 19th and 20th the London Times lashed into Glencore with two unprecedented exposes of the company's current operations while The Guardian followed suit with additional indictments.
The allegations included that:
a Glencore subsidiary had procured lucrative market-sensitive information from a European Union "mole" which threatens to undermine the EU's Common agricultural policy
Glencore's Colombian subsidiary is operating on government-owned land that was forcibly taken from its previous residents by paramilitaries; at least 18 people were murdered in a six month "campaign of terror" at El Prado, northern Colombia
The company has been guilty of causing river pollution at its operations in Bolivia
Members of the Wutha Native Title Climants Group in Australia had been cheated of an agreement made with Glencore in 1996, under which the company guaranteed to employ some of them in return for mining nickel on their land. (The case was settled only recently out of court)
Century Aluminum of the USA, 44% owned by Glencore, is being pursued for damages caused by its operations, in a string of cases brought by environmental agencies, local residents and other companies.
In order to make Glencore's debut as a publically traded giant a total home run, the company solicited the interest of "cornerstone" investors to commit to purchasing some of its shares. The rich crowd drawn into the Glencore IPO is reported to include:
Aabar Investments, an Abu Dhabi sovereign wealth fund that says it will invest $850 million as a "cornerstone" investor, and $150 million besides - bringing its total Glencore outlay to a cool $1 billion.
The Government of Singapore Investment Corp. Pte. Ltd. - Singapore's sovereign wealth fund (SWF) that's more commonly referred to as GIC.
Hedge fund Highbridge Capital Management LLC (owned by JPMorgan Chase & Co. (NYSE: JPM)).
And BlackRock Inc. (NYSE: BLK), the world's largest money-management firm.
The Key Takeaway From the Glencore IPO
That controversial chapter also closed the book on his tenure at Marc Rich & Co. In 1994, Rich was bought out of his interests in what would become Glencore International by its then managers for a reported $600 million. The rumor is that his partners forced him out after a $200 million loss on a bad Zinc trade.
There's little doubt that Glencore continued its secretive ways, while also maintaining the Central Intelligence Agency (CIA) and Mossad connections that Rich had always been famous for.
“Glencore prepares to join FTSE amid scrutiny of Namibia court battle”
https://www.theguardian.com/business/2011/may/19/glencore-ftse-namibia-namcor-battle
19 May 2011
Government of Namibia alleges commodity trader's high prices helped plunge state oil group Namcor into financial crisis
As Glencore prepares to join the FTSE 100 index of blue-chip businesses next week, it is also battling the government of Namibia over claims it deceived the country, and covered up secret "ambitions to control the local oil industry".
The legal case is one of many beginning to attract attention as Glencore emerges on to the public markets with its £37bn valuation – making it bigger than Tesco – after enjoying years of relative obscurity operating as a private partnership from its Swiss base.
Namibia's high court is hearing proceedings which centre on a deal the commodity trading company struck to supply the state oil group, Namcor. That agreement is being blamed by the government for helping plunge the African company into financial crisis as it was locked into paying high prices for fuel.
A Namibia cabinet briefing paper on the case, alleged: "Glencore has been negotiating with Namcor in bad faith and seems to have undisclosed ambitions to control the local oil industry in future."
Glencore has defended the contract, saying the government knew prices would be likely to rise yet it failed to put in place procedures to deal with the increases.
The report is understood to have been sent to President Hifikepunye Pohamba's office and forms part of the documents filed in a high court application where Glencore opposed the government's decision to suspend its Namcor contract. That suspension was subsequently overturned by the courts as it had ignored the parties' constitutional right to fair procedure. The Namibia government has appealed.
The legal case follows a 2009 PricewaterhouseCoopers audit of Namcor, which observed that dealing with Glencore "forces Namcor to continue to purchase from its current suppliers even though other suppliers may potentially offer lower prices".
Both Glencore and the Ministry for Mines and Energy declined to comment.
The listing prospectus does reveal a Belgian criminal investigation in which Glencore's Dutch-based grain trading operation, a former employee and one current employee have all been charged with bribing European officials, but the company does not detail any further legal battles as it believes it has "meritorious" defences and that any rulings will not adversely affect its finances.
The wide collection of cases continues the company's controversial legal tradition.
Glencore was among dozens of companies accused of paying kickbacks to Iraq in 2005 by a commission that investigated the UN's Oil for Food programme. A preliminary judicial investigation found "a lack of culpable information". Meanwhile, in 2009, Glencore agreed to pay a cash settlement to Aluminium Bahrain to resolve a dispute over "controversial payments associated with a Glencore agent".
“Former finance minister Tito Mboweni returns to Goldman Sachs as regional advisor”
https://cfo.co.za/articles/former-finance-minister-tito-mboweni-returns-to-goldman-sachs-as-regional-advisor/
13 February 2022
For his second stint at the bank, Mboweni will advise on business development opportunities in South Africa.
Former finance minister Tito Mboweni has returned to US investment bank Goldman Sachs as a regional advisor. This will be his second stint at Goldman Sachs after serving as an advisor of the bank from 2010 until 2018, when he was appointed as the minister of finance.
According to the company, Mboweni will provide strategic advice to the firm on business development opportunities, with a particular focus on South Africa and sub-Saharan Africa. This comes after the bank announced its plans to expand its business in South Africa, adding fixed income and foreign exchange products to its existing investment-banking service. The bank also received a licence from the Johannesburg Stock Exchange to trade futures.
Mboweni resigned from his seat in parliament last week, six months after he left president Cyril Ramaphosa’s cabinet. In the same week he also returned as chairperson of the Accelerate Property Fund, the same role he had held before becoming finance minister.
Mboweni was the finance minister of South Africa for three years after previously serving as labour minister from 1994 to 1998. He was also the governor of the SA Reserve Bank from 1999 to 2009.
He then embarked on a lengthy stint in the private sector, where he was chairperson of Nampak, SacOil, and AngloGold Ashanti, as well as Accelerate. He was also a director of Discovery and PPC, and a consultant of the oil company Total.
“Tito Mboweni’s recent adventures in business – from failing to get loans to eating 'grass' at Discovery”
https://www.businessinsider.co.za/tito-mboweni-in-business-loans-2018-10
10 October 2018
As minister of finance, Tito Mboweni will be put in charge of South Africa’s R1.5 trillion national budget.
Somewhat ironic, given that local banks refused to lend him money.
Directorships aplenty
Since being apparently pushed out of his job as central bank governor in 2009, Mboweni had a number of associations with large companies, including:
Chairperson of Nampak
This was the first position he accepted after his decade as head of the central bank, and he still chairs the largest packaging company in Africa.
Chairperson of AngloGold Ashanti
He was appointed in 2010 as chairperson of AngloGold Ashanti, the third-largest gold mining company in the world. At the time, AngloGold hoped the former labour minister would assist with its labour relations.
“Mboweni was [an] architect of SA’s post-apartheid labour legislation, which today continues to provide the basis for the mutually respectful labour relationships central to AngloGold’s operational approach in SA,” the company said in a statement at the time.
While there was labour unrest during his tenure, with the majority of the mine's workers at one stage taking part in an illegal strike, Mboweni was credited with assisting the company with its restructuring and cost cutting, and helping to secure the respected mining executive Srinivasan Venkatakrishnanas as its CEO after Mark Cutifani left to lead Anglo American.
Mboweni resigned unexpectedly in 2014 citing an "increasing portfolio of professional commitments".
Chairperson of SacOil
SacOil is an oil and gas company with assets in Democratic Republic of Congo and Nigeria. The South African Public Investment Corporation, government’s investment arm, owns more than two-thirds of the company.
Mboweni was appointed in 2016, and resigned two years later at the end of his term.
Director of PPC
After being a director for two years, Mboweni unexpectedly quit in 2017 amid reports that he didn’t agree with PPC’s plans to merge with Afrisam.
In the end, the deal fell apart.
Director of Discovery
He has served on boards of various Discovery companies for the past five years and continues to be enthusiastic about the company.
During his Money Show interjection, Mboweni said Gore recruited him to the board of directors of Discovery by explaining how disruptive its business is and how it uses behavioural economic models to create value.
His only objection so far, as he told The Money Show, is that the health-conscious Gore insists on giving him “grass” for lunch.
Chairperson of Accelerate Property Fund
Mboweni has been chairperson for the past five years. The fund owns Fourways Mall, Cedar Square, two KPMG-branded office buildings and a number of other retail properties.
In 2016, the PIC objected to his "excessive" remuneration from Accelerate, which the PIC said tripled to R1.58m from R506,667 within a year.
Other roles
Mboweni is also an adviser to Goldman Sachs International and a consultant of the oil company Total. He has held various academic positions, including as Chancellor of North-West University (2002 to 2005), and is a trustee of the Nelson Mandela Children’s Hospital Trust.
For the past six years, he has been a member of the national executive committee of ANC.
>SacOil is an oil and gas company with assets in Democratic Republic of Congo and Nigeria. The South African Public Investment Corporation, government’s investment arm, owns more than two-thirds of the company.
SacOil – History and changed its name to Efora Energy Ltd
https://www.eforaenergy.com/about-us/company-history/
Efora was incorporated on 1 February 1993 under the name Manga-Chem Products Proprietary Limited. The Company was listed on the venture capital sector of the securities exchange operated by the JSE on 19 October 1994. It was incorporated for the purpose of establishing a manganese sulphate manufacturing and marketing business.
On 6 December 1996, the Company’s name was changed to SA Mineral Resources Corporation Limited.
On 31 December 2007, the Company was restructured and recapitalised, whereby Encha Capital – which was 51% owned by Encha Group at the time – acquired a controlling interest in the Company. Encha Group is an investment holding company with exploration, industrial and property interests. Encha is wholly owned and controlled by black persons.
On 1 December 2008, the Company’s name was changed to SacOil Holdings Limited to better reflect the Company’s new direction. On 12 December 2008, the Company transferred its listing from the venture capital sector of the securities exchange operated by the JSE to the 'Mining - Integrated Oil and Gas' sector of the main board of the securities exchange operated by the JSE.
Since 2014, the Group's focus has been on assembling a diverse portfolio of cash-generative assets and projects throughout the African continent, spanning upstream to downstream. This included the 2014 acquisition of the Lagia Oil Field in Egypt, a crude trading allocation in Nigeria established in 2016, and the acquisition in May 2017 of a controlling interest in Afric Oil, a leading fuel product distribution business in Southern Africa.
On 8 November 2017, the Company formally began trading under the new name of Efora Energy Ltd (“Efora”). The Board undertook a corporate rebranding exercise to reflect the significant evolution of the company and strengthening of its diverse portfolio of assets in the previous years. The name Efora – alluding to an abbreviated form of “Energy for Africa”, aptly reflects Efora’s vision to play a meaningful role in the positive socioeconomic development of the African continent through the provision and distribution of essential fuel products.
“Cooperation Agreement concluded with new partners and the China Petroleum Pipeline Bureau for the construction of the African Renaissance Gas Pipeline in Mozambique”
https://www.eforaenergy.com/cooperation-agreement-concluded-with-new-partners-and-the-china-petroleum-pipeline-bureau-for-the-construction-of-the-african-renaissance-gas-pipeline-in-mozambique/
Mar 1, 2016
SACOIL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
JSE Share Code: SCL AIM Share Code: SAC
ISIN: ZAE000127460
(“SacOil” or “the Company”)
COOPERATION AGREEMENT CONCLUDED WITH NEW PARTNERS AND THE CHINA PETROLEUM PIPELINE BUREAU FOR THE CONSTRUCTION OF THE AFRICAN RENAISSANCE GAS PIPELINE IN MOZAMBIQUE
-
Key Highlights
• A Cooperation Agreement (“CA”) that will result in the construction of the estimated US$6 billion 2 600km, large-diametre pipeline to transport natural gas from Mozambique’s Rovuma Basin to Gauteng in South Africa, has been signed between Empresa Nacional de Hidrocarbonetos E.P (“ENH”), the national oil and gas company of Mozambique, Profin Consulting Sociedade Anónima (“Profin”), a Mozambican private sector consortium, SacOil Holdings Limited (“SacOil”) and the China Petroleum Pipeline Bureau (“CPP”), a leading Chinese and international pipeline construction company that will bring a wealth of technical expertise to the pipeline project.
• The CA assures the financing commitments required for the pre-investment and engineering studies and the speedy and effective construction and implementation of the project.
• The signing of the CA is a major milestone and is in line with SacOil’s strategy to become a leading Pan African oil and gas company engaged in Upstream, Midstream and Downstream activities.
-
Introduction
On 8 December 2014, SacOil announced that it had entered into a Joint Development Agreement (“JDA”) with the Public Investment Corporation SOC Limited (“PIC”) and The Instituto de Gestão das Participações do Estado (“IGEPE”). The JDA set out the terms for an evaluation of the technical and commercial feasibility of the construction of a gas pipeline and distribution facility intended to carry natural gas from Mozambique’s Rovuma fields to South Africa, with off-takes to other neighbouring Southern African Development Community (“SADC”) countries (“the Project”).
==About SacOil, ENH, Profin, China Petroleum Pipeline Bureau, PIC, IGEPE
https://www.eforaenergy.com/cooperation-agreement-concluded-with-new-partners-and-the-china-petroleum-pipeline-bureau-for-the-construction-of-the-african-renaissance-gas-pipeline-in-mozambique/
About SacOil
SacOil is a South African based independent African oil and gas company, dual-listed on the JSE and AIM. The Company has a diverse portfolio of assets spanning production in Egypt, exploration and appraisal in the Democratic Republic of Congo, Malawi and Botswana, and midstream and downstream operations including a gas pipeline project in Mozambique and an oil terminal project in Equatorial Guinea. The Company continues to evaluate industry opportunities throughout Africa as it seeks to establish itself as a leading, full-cycle pan-African oil and gas company.
About ENH
ENH is a public entity established by Decree in 1981, as the commercial arm of the Government of Mozambique and with the mandate to participate in the commercialization, sustainable exploration, development, production, processing, transportation, distribution of the nation’s hydrocarbon resources. ENH has a 15% share in Area 1 gas field while 85% is held by Anadarko. In Area 4 gas field, ENH holds 10% stake, while Eni is the operator.
About Profin
Profin Consulting Sociedade Anonima is a special purpose legal entity for investments into natural gas transportation, related distribution and power production projects in Northern Mozambique, and incorporated and operating under the laws of the Republic of Mozambique. Profin signed a Memorandum of Understanding with Empresa Nacional de Hidrocarbonetos (ENH) in October 2015 “with regards to participating as a joint venture partner in the integrated natural gas projects, subject to technical feasibility and commercial viability”.
About China Petroleum Pipeline Bureau
China Petroleum Pipeline Bureau, founded in 1973, is a professional company of China National Petroleum Company (“CNPC”) specializing in research, engineering, construction and technology services and construction. Over the past 40 years, 80, 000 km of onshore pipeline projects, more than 10,00km of offshore pipelines, 30 million m3 of gas storage projects and installation of more than 100 oil and gas processing facilities has been constructed by CPP. Footprints spread in more than 30 countries, like Middle East, Africa, Central Asia, Southeast Asia and America. In Africa, CPP is active in Mozambique, Tanzania, Kenya, Chad, Niger, Sudan and Libya.
About PIC
The Public Investment Corporation (PIC) is a public asset management firm wholly-owned by the South African government, with the Minister of Finance as the sole shareholder representative of the government. PIC’s clients are mostly public sector entities including the Government Employees Pension Fund, which contributes 90% of the funds that PIC manages. Other clients include Unemployment Insurance Fund, Associated Institutions Pension Fund, Compensation Commissioner Pension Fund and Compensation Commissioner Fund.
About IGEPE
IGEPE is an agency of the Government of Mozambique established by law to manage investment portfolios and shares of the Republic of Mozambique in commercial ventures, in particular, the promotion and management of the state’s equity participation in strategic projects.
Nigeria – Crude Trading Allocation
https://www.eforaenergy.com/operations/nigeria-crude-trading-allocation/
Overview
Rights: In May 2018, SEER was awarded a twenty-four-month contract to lift and trade Nigerian crude oil.
Partners: Energy Equity Resources (Nigeria Services) Limited ("EER")
Interest: 50%
Efora and EER signed a Memorandum of Understanding (“MOU”) to explore oil and gas opportunities in the Republic of Nigeria. As part of this MOU the parties are evaluating various opportunities in Nigeria to participate in the sector, across the energy value chain.
Efora's role and interest in the business
Efora is working closely with EER to manage the activities relating to the trading activities. The trading activities will provide an additional source of income for Efora. The crude trading is to form a basis to expand the Group’s trading activities and build an effective trading segment for the Group. Efora and EER incorporated a Seychelles entity namely Sacoil Energy Equity Resources Limited (“SEER”) with a minimal capital investment.
SEER applied for and was awarded a 12-month term contract for the purchase of Nigerian crude oil grades by NNPC in April 2016, which was renewed in December 2016 for one year. In May 2018, SEER was awarded a 24-month contract. The terms of crude trading allocation are standard for all third parties awarded a crude allocation by NNPC.
Although the current contract is for a 24-month period, SEER has to apply monthly to NNPC for the lifting of crude. The crude grades will vary and the availability of crude oil from NNPC for onward sale is dependent on aggregate crude production in Nigeria available for lifting by third parties. SEER is focused on securing monthly crude allocation, subject to availability.
>Partners: Energy Equity Resources (Nigeria Services) Limited ("EER")
Osamede Okhomina – Non-Executive Director of Energy Equity Resources
https://www.eeras.com/board-of-directors/osamede-okhomina/
Non-Executive Director
Osamede Okhomina studied Philosophy at Corpus Christi College, Cambridge. Osamede has over 15 years of experience in the oil and gas industry starting with Terra Energy Service where he was involved in the introduction of a new deep water technology, developed in Norway,into the Nigerian market. Osamede was instrumental in originating, structuring and eventually settling the 15-year legal battle between Shell and the Wiwa Plaintiffs in the New York District Court. In addition, Osamede has written on the challenges facing the Niger Delta. Osamede was a founding partner of EER and CEO from 2008 until early 2014. Osamede is responsible for business development in line with the EER’s strategy of growing a portfolio of low risk, high return assets.
>Osamede was instrumental in originating, structuring and eventually settling the 15-year legal battle between Shell and the Wiwa Plaintiffs in the New York District Court.
“Shell in Nigeria: The struggle for accountability” - Part 1
https://www.pambazuka.org/governance/shell-nigeria-struggle-accountability
Feb 18, 2010
Ben Amunwa looks at how the settlement of the Wiwa v Shell case affects the ongoing Niger Delta crisis, and the settlement's implications for human rights, environmental justice and the control of resources in the region.
The settlement of the landmark Wiwa v Shell lawsuit in June 2009 marked a small but significant step forward for the dozen plaintiffs involved. They charged Shell with complicity in human rights abuses, including crimes against humanity, summary execution, torture and arbitrary detention. The abuses occurred during military crackdowns in the 1990s, when 300,000 of the minority Ogoni people mobilised under the leadership of writer and activist Ken Saro-Wiwa, to protest at the environmental and social devastation caused by Shell, Chevron and other companies in the oil rich Niger Delta. These were some of the largest protests against an oil company ever seen. In response, Shell collaborated with the Nigerian military in a campaign of indiscriminate violence in Ogoniland, culminating in the execution of Saro-Wiwa and eight other activists on 10 November 1995.
For the next twelve years, a legal battle was waged in the New York District Court. The plaintiff’s lawyers assembled a substantial dossier of exhibits, including confidential company memos, emails and witness testimony, illuminating the Shell’s complicit role in human rights abuses committed in Ogoniland. Detailed evidence of Shell’s close relationship with the military was finally made public in the wake of the settlement, in which Shell agreed to pay US$15.5 million to the plaintiffs.
Behind the scenes was Osamede Okhomina, an oil executive who does not fit the stereotype. He is from the Niger Delta and holds a Masters in Philosophy from Cambridge University. His company, Energy Equity Resources based in London’s leafy Marble Arch and Victoria Island, Lagos, participated in brokering the settlement of the Wiwa case. EER helped both parties to fashion the Kiisi Trust, a US$5 million fund created by the settlement funds, which ‘will allow for initiatives in Ogoni for educational endowments, skills development, agricultural development, women’s programs, small enterprise support, and adult literacy’.
For over a decade, companies have used ‘strategic philanthropy’ to effectively buy the consent of communities where they extract oil and gas. Following the execution of Saro-Wiwa, and the sinking of Brent Spar, Shell realised the need to repair its global image, which led to the invention of ‘corporate social responsibility’ (CSR). Today, the failure of CSR in the Niger Delta is an open secret. In 2001, a study of Shell’s community projects showed that out of 81, 20 didn’t exist, 36 were partly successful and only 25 were working effectively.
Despite this, Alice Ajeh, Shell’s international relations manager for Nigeria, based in The Hague, believes that CSR has the answer. When faced with a flood of emails protesting at Shell Nigeria’s practices, she emphasises that Shell spent US$242 million last year on community development – ‘the largest single investment in communities that Shell companies make anywhere in the world.’ During her time at Shell in Port Harcourt, a leaked confidential report for Shell by WAC Global Services found that these payments were ‘divisive’, increasing conflict and violence, rather than benefiting communities.
Assuming that a portion of Shell’s community development projects actually exist and work, they cannot compensate for the illegal environmental and social devastation caused by the company’s routine oil spills, gas flaring and their over-reliance on the Nigerian security forces.
“Shell in Nigeria: The struggle for accountability” - Part 2
https://www.pambazuka.org/governance/shell-nigeria-struggle-accountability
Feb 18, 2010
Whilst not all of the regions problems can be attributed to the company, Shell’s activities clearly exacerbate insecurity, corruption and poverty.
Government security forces are routinely on the payroll of international oil companies, and the same forces are responsible for an unknown number of summary executions, killings, torture and detainment. According to local rights monitor the Centre for Environment, Human Rights and Development (CEHRD), as recently as December 2009, armed soldiers securing a Shell manifold in K-Dere in Ogoni tortured a man and his wife, beating them severely with gun butts and horsewhips till they vomited blood. These incidents are routinely carried out by security forces paid, fed and housed by Shell.
The Niger Delta is by no means a ‘poor’ economy. Staggering profits are pumped out of the creeks by Shell, Chevron and other companies on a daily basis. The IMF estimates that Nigeria earned US$75 billion in oil revenue between 2004-7. Yet the Delta region is impoverished by decades of record-breaking graft at all levels of the Nigerian political elite, an ongoing theft that is assisted by multinational oil companies and Western banks.
What trusts cannot address is the central injustice of the Wiwa case – the human rights impacts of oil companies. Oil production is still intimately linked to gross violations of human rights. As Saro-Wiwa stated to the panel that sentenced him to death: ‘The military do not act alone. They are supported by a gaggle of politicians, lawyers, judges, academics, and businessmen, all of them hiding…’
The Wiwa case demonstrated the ‘power of memory against forgetting’. As long as companies continue do business at the expense of human rights, they will eventually be exposed, held accountable and forced to make amends.
“SacOil acquires Phembani Oil”
https://transformsa.co.za/2017/03/sacoil-acquires-phembani-oil/
6 March 2017
SacOil, the South African based independent African oil and gas company that is focussed on the full oil and gas value chain, is pleased to announce that it has signed agreements to acquire 100% of Phembani Oil from Gentacure and its holding company, Moopong Investments Holdings Proprietary Limited. Phembani Oil’s only asset is a 71% direct interest in Afric Oil Group, one of the largest independent fuel distributors in South Africa, distributing over 30 million litres of fuel product (diesel, petrol and paraffin) monthly to a diversified client base that include local and national government, mining, construction, transport, manufacturing, parastatals, resellers and agricultural clients. Following completion of the Acquisition, SacOil [mostly owned by PIC] will hold a 71% indirect interest in Afric Oil, with the remaining 29% interest held by The Compensation Fund, a fund managed by the Public Investment Corporation SOC Limited (“PIC”), the largest fund manager on the African continent.
The Acquisition is fully in line with the Company’s stated strategy of focussing on cash generating opportunities that expand SacOil’s operations across the oil and gas value chain on the African continent. Following completion of the Acquisition, SacOil’s portfolio will comprise of operated production activities in Egypt, exploration in Democratic Republic of Congo, alongside partner TOTAL E&P RDC, Malawi and Botswana, a crude trading allocation with Nigerian National Petroleum Company and fuel distribution operations in Southern Africa. The Acquisition also provides SacOil with its first operational footprint in South Africa thereby enabling the Company to play a meaningful role in the socioeconomic development of the country.
BACKGROUND TO AFRIC OIL
Afric Oil was established in 1995 as South Africa’s first 100% black-owned oil company. Since launching in 1995, Afric Oil has grown into a business distributing around 30 million litres of fuel products (diesel, petrol and paraffin) monthly with a reported audited turnover for the year ended 31 December 2015 in excess of R3 billion ($230.6m). Afric Oil achieved these results utilising its two owned depots in Boland, Western Cape province, and Beitbridge, Zimbabwe/RSA border. Afric Oil’s operations are predominantly in South Africa, however it also has an operating presence in the greater Southern African regions that include Zimbabwe, Zambia and Namibia. The key customers of Afric Oil include government departments, state-owned entities, blue chip mining and industrial customers and other non-refinery wholesalers of fuel products.
During February 2017, Afric Oil acquired certain operating assets of Big Red Investments Proprietary Limited, Redlex Investments Proprietary Limited, Turquoise Moon Trading 477 Proprietary Limited (collectively “Big Red”) and the fuel distribution business undertaken under the name Forever Fuels, an acquisition that will expand Afric Oil’s regional footprint and provide access to a stable higher margin business. The Big Red acquisition will further enhance Afric Oil’s distribution capabilities with ownership of a fleet of 32 product distribution vehicles and a fuels depot facility, including the land, located in Randfontein, Gauteng. The Big Red acquisition is expected to contribute an additional 16 million litres per month of fuel products (diesel, petrol and paraffin) and approximately R1.8 billion ($138.4m) of revenue per annum to Afric Oil. This would increase Afric Oil’s total distribution of fuel products to over 45 million litres per month.
Afric Oil benefits from an experienced, stable and highly credible executive team comprised of Tseke Nkadimeng (CEO) and Isaiah Mutandiwa (CFO), both of whom have extensive resource industry knowledge, and will continue to manage the Afric Oil business following completion of the Acquisition.
>Furthermore, those who believe that Rich’s legacy lies in the past misunderstand the nature of that legacy. One of the most remarkable things about Marc Rich was his ability to make money talk louder than politics – hence why, after 1994 he was able to continue doing business with South Africa, despite his links to the apartheid regime.
>The Spectator argues: “his former protégés and apprentices now control, through his empire’s successor companies Glencore Xstrata and Trafigura, the price of just about everything.” They control a truly startling share of the world’s natural resources.
>Glasenberg and Rich’s other protégés would go on to build and lead global commodities giants such as Glencore and Trafigura. Rich was never held to account.
>“Stability is to be prized,” said Oxfam’s David Green. And that is the last thing Glencore wants, as it’s instability which is most profitable – for those who have the inside knowledge to exploit it.
Trafigura posts record half-year profit as commodities volatility intensifies
https://www.trafigura.com/in-the-news/trafigura-posts-record-half-year-profit-as-commodities-volatility-intensifies/
Trafigura reported record half-year profits as volatility and disruption in commodity markets, exacerbated by the war in Ukraine, supercharged earnings for the world’s biggest traders.
This article was originally published by Financial Times on the 10 June 2022.
Read the full article: https://www.ft.com/content/6a219385-3c0c-49be-a9b6-4eca4a7ab286
https://www.trafigura.com/press-releases/trafigura-publishes-2021-annual-results-showing-a-record-performance-with-the-company-well-positioned-for-future-growth/
Trafigura publishes 2021 annual results showing a record performance with the company well positioned for future growth
Singapore, 8 December 2021 - Trafigura Group Pte. Ltd. (“Trafigura” or ”the Group”), one of the world’s leading independent commodity trading companies, today released its results for financial year ending 30 September 2021.
Profit, turnover and volumes handled were the highest in the Group’s history, consolidating the strong performance in FY2020 and demonstrating a structural rebasing of the quality and consistency of the company’s financial performance and service to suppliers and customers.
Revenues increased by 57 percent to USD231,308 million, reflecting higher commodity prices and increased trading volumes as the Group continued to grow its customer base and expand into new markets.
>It has become a cliché to describe Glencore, Vitol, Cargill and the handful of other major companies that trade oil, metals and food as shadowy, secretive and deceptively powerful.
>When rebels in Libya ran out of fuel in 2011, and when Cuba needed oil in the early 1990s, long-term Vitol boss Ian Taylor personally negotiated a fresh supply.
“Commodities trading houses help keep Russian oil flowing”
https://www.reuters.com/business/energy/commodities-trading-houses-help-keep-russian-oil-flowing-2022-03-25/
March 28, 2022
LAUSANNE, Switzerland, March 25 (Reuters) - Commodities traders such as Trafigura and Vitol have helped keep Russia's oil flowing through its Baltic and Black Sea ports in March, when some Western firms started to snub the market, according to ship tracking, traders and shipping sources.
Both Swiss-based trading houses have long-term deals with state-run Russian oil giant Rosneft (ROSN.MM) to load crude under agreements struck before Moscow's invasion of Ukraine triggered a wave of Western sanctions this month.
So far in March, the two companies combined have loaded 22 cargoes of Urals crude, equivalent to 2.32 million tonnes of oil or 16.7 million barrels, according to Refinitiv Eikon ship tracking data and sources. They shipped 1.84 million tonnes in February and 1.80 million in January.
The bulk of the oil the two companies buy comes from Rosneft, though a large chunk of the crude Vitol handles via Russian ports comes from Kazakh producers.
Other Swiss-based traders Glencore (GLEN.L), Gunvor and Petraco loaded Russian crude in March, though the volumes they took were slightly lower than in previous months, according to shipping data and information from traders.
Vitol's 10 cargoes is on a par with February and January and broadly in line with an average of 9.6 since its deal with Rosneft started in October. Its monthly average for the first nine months of 2021 was 5.1 cargoes.
Trafigura and Vitol told Reuters they were fulfilling existing contracts and had not struck any new deals for Russian oil since the Ukraine conflict, which Moscow calls a special operation, started on Feb. 24. They did not comment on the volumes of Russian oil they have been buying.
While the long-term contracts are not public, three sources told Reuters that Trafigura has a deal running at least until next year while Vitol's runs until at least October this year. The sources said the contracts gave the companies plenty of flexibility on how much oil they can buy each month.
Deals for April are still being struck but so far Trafigura has lined up eight cargoes for the first 10 days of the month and Vitol has six. The companies are also offering Russian oil known as ESPO Blend, which is exported via Asian ports, in May.
The European Union banned transactions with several Russian energy companies including Rosneft on March 15. However, Brussels gave a two-month wind-down period for contracts already agreed and excluded purchases that were "strictly necessary".
Big Western oil companies TotalEnergies (TTEF.PA), Shell and Exxon Mobil (XOM.N) - as well as Finland's Neste (NESTE.HE) - all loaded cargoes of Russian oil in March.
Most were early in the month and ordered before prior to the invasion, though Britain's Shell snapped up a heavily discounted cargo of Russian oil from Trafigura on March 4. Shell had pledged a few days earlier to end its operations in Russia and later apologised for the trade after a hail of criticism.
>Global mining and trading Glencore (GLEN.L) said on Wednesday it had "no realistic way to exit" its stakes in Russian company En+ Group and state oil firm Rosneft (ROSN.MM) after reviewing its business ties.
“EXCLUSIVE Trafigura to stop buying crude from Russia's Rosneft ahead of EU deadline”
https://www.reuters.com/world/europe/exclusive-trafigura-stop-buying-crude-russias-rosneft-before-may-15-2022-04-26/
April 26, 2022
LONDON, April 26 (Reuters) - Global commodities trader Trafigura Group will stop all purchases of crude oil from Russia's state company Rosneft (ROSN.MM) by May 15 when tighter EU rules on Russian oil sales come into effect, a company spokesperson said on Tuesday.
The Geneva-based firm will also "substantially reduce" the volume of refined products it buys from Rosneft.
Trafigura (TRAFGF.UL) , along with rival Vitol, is a major lifter of Russian oil, mainly from Rosneft.
Yet
“Trafigura Invests €1.5 Billion in Rosneft’s Arctic Oil Project to Cement Ties”
https://bondevalue.com/news/trafigura-invests-e1-5-billion-in-rosnefts-arctic-oil-project-to-cement-ties/
January 21, 2021
Trafigura has invested €1.5bn ($1.82bn) cash into Rosneft’s Arctic Oil Project, Vostok Oil, in a €7.3bn ($8.85bn) deal for a 10% stake. In addition to the cash, Credit Bank of Moscow has arranged a €5.775bn ($7bn) syndicated loan facility with a maturity of 13Y and a 5Y grace period on repayments. The debt will be paid back through the dividends generated by Vostok Oil. The investment has been made through a Singapore-registered SPV called CB Enterprises. The deal, which is the largest for Trafigura in its 27-year history, will not only cement its ties with Rosneft but also give it access to crude oil for its trading business. Trafigura already has good relations with the Russian state-run oil major and has partnered with it in the past. Trafigura had not only helped the Rosneft raise funds through permitted short-term prepayment oil deals but was also a part of the 2017 Rosneft-led consortium that took over Nayara, formerly Essar Oil. According to the FT, the deal values Vostok Oil at ~€73bn ($88.5bn) and the group’s equity was $7.8bn (€6.4bn) at the end of September while Rosneft’s market capitalization is $70bn (€55bn). Rosneft could also seek investments from China and India as its access to western financing has been restricted due to US sanctions
“This is a long-term investment for the group in an exciting oil and gas company with a resource base for liquid hydrocarbons of 6bn tonnes, including confident recoverable reserves of about 3bn tonnes,” a Trafigura spokesperson said. “The oil production potential of the project’s open and promising deposits is comparable to the largest projects in the Middle East.”
Trafigura’s 7.5% and 6.875% perps were up 0.38 and 0.2 at 105.38 and 99.33