Eni's East African FLNG development plan in Mozambique approved

Floating LNG

Italian oil company Eni has won its approval from the Mozambique government to build its planned Coral floating liquefied natural gas (LNG) plant.

The company, is targeting to sell all the LNG from the plant to British oil company BP. It is expected to make a final investment decision (FID) this year but has now overcome one of the biggest hurdles.

Tanzania makes great onshore natural gas discovery

An additional onshore discovery of 2.17 trillion cubic feet (tcf) of possible natural gas deposits has been made in Tanzania. This raises the nations estimated recoverable natural gas reserves to more than 57 tcf.

The onshore reserves were found at a field licensed to the United Arab Emirates' Dodsal Group located at Ruvu basin in Coast region, near the country's commercial capital, Dar es Salaam, the local media reported.

Refinery to be used as storage facility for crude oil

Kenya Petroleum Refinery Plant in Mombasa

The fate of Kenya’s oil refinery has been determined.  Kenya Petroleum Refineries Limited plant, (the only refinery in the region) will be converted into a storage facility as the country gears up for commercial oil production. The decision is part of recommendations contained in a report by an inter-ministerial committee formed last July to review how best to utilise the idle refinery. The report will be released later this week to the Energy and Petroleum Cabinet Secretary Charles Keter.

Oil Slump Side-steps Kenya As It Anticipates To Turn On The Taps

Kenya’s oil is said to be commercially viable even at the dismal $30 per barrel. The country has so far discovered 1 billion barrels of oil, although its extraction might take years.

Tullow oil, one of the main exploration companies in Kenya which discovered 600 million barrels in the South Lokichar basin in 2012 says that oil can be produced in Kenya for around $25 per barrel, which would make it one of the cheapest places in the world for producers.

Iran is Eyeing Africa To Expand Oil, Refined Products Exports

Iranian officials announced on Tuesday 16^th February 2016 that the first exports of gas oil products (fuel oil distilled from petroleum) are headed to African countries.

Iran is ardent to raise its status as a major exporter of gasoline, kerosene, liquid petroleum gas (LPG), jet fuel and mazut in the Middle East.

Top oil producers 'agree on oil output freeze', Iran still an obstacle.

Top oil exporters, Russia and Saudi Arabia agreed on Tuesday to freeze output levels to tackle the growing oversupply of crude oil so as to stabilise the oil price.  The deal however is dependent on other producers joining.

The announcement was made following a meeting of oil ministers from Saudi Arabia, Russia, Venezuela and Qatar in Doha, with meetings with Middle East oil powerhouses Iran and Iraq said to be imminent. The outcome of today’s meeting with Iran and Iraq is being awaited with bated breath as more talks are to take place in Tehran today, however fears of Iran ramping up production are high.

Petroleum Pump prices in Major towns in Kenya from 15th February2016 - 14th March 2016

Fuel pump prices have reduced further to reflect the current crude oil market prices. This is also after the world bank raised concerns over the pump prices in Kenya which they deemed did not reflect the current market climate. Major economies have reduced their gasoline and diesel prices to reflect the plummeting crude oil prices. This raises the question how will Kenya deal with the situation when it becomes and oil producer. Most oil producing countries enjoy heavily subsidised oil prices at the pump.