• 4 minutes Get First Access To The Oilprice App!
  • 7 minutes Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 11 minutes Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 13 minutes Oil prices forecast
  • 1 hour *Happy Dance* ... U.S. Shale Oil Slowdown
  • 6 hours Oceans "Under Fire" Of Plastic Trash
  • 2 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 11 mins Making Fun of EV Owners: ICE-ing Trend?
  • 2 hours Is Natural Gas Renewable? I say yes it is.
  • 22 hours How Is Greenland Dealing With Climate Change?
  • 9 hours Algorithms Taking Over Oil Fields
  • 11 hours Europe Slipping into Recession?
  • 17 hours Socialists want to exorcise the O&G demon by 2030
  • 23 hours Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 16 hours Nuclear Power Can Be Green – But At A Price
  • 13 hours UK, Stay in EU, Says Tusk
  • 5 hours Orphan Wells

Global Energy Advisory - 12th December 2014

Politics, Geopolitics & Conflict

Somalia has invited Soma Oil and Gas, ExxonMobil, Royal Dutch Shell, BP and Chevron to explore oil and gas resources in the country. Soma Oil and Gas—based in the UK and backed by Russian billionaire Alexander Djaparidze--has completed an onshore and offshore seismic survey in the Somali capital, Mogadishu. The government in Mogadishu said it would reward the company for carrying out the seismic survey with licenses to explore for oil.

This is a daunting endeavor in a country where security remains shaky at best and where al-Shabaab is clearly resurging. Attacks by the Islamist militant group have picked up momentum recently, not only in the capital but also in Baidoa (south-central), near the border with Kenya, and in Kenya itself.

There should also be grave concerns about the development of oil and gas here as Somalia and Kenya dispute offshore territory and there is no chance of talks progressing on this as long as al-Shabaab continues with its militant revival.

Oil & Gas Markets

State-run Kuwait Petroleum Corp. says it will sell crude to Asian refiners at $3.95 per barrel, which is well below regional benchmarks and represents the largest discount since 2008. Likewise, Saudi Arabia has increased its discount more than it has in 11 years as crude prices look set to remain at around $65 per barrel for the next six months. This is one seemingly viable scenario, as long as OPEC sticks to its production…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News