VenturesNow

Kenya extends oil supply contract with three Gulf companies

Published

8 months ago

September 19, 2023

Kenya’s energy regulator says it has extended an oil supply deal with three Gulf-based companies designed to manage demand for dollars.

The agreement, which replaced an open tender system in which local businesses sought to import oil each month, was inked with Saudi Aramco, Abu Dhabi National Oil Company (ADNOC.UL), and Emirates National Oil Company in March.

According to the head of the Energy and Petroleum Regulatory Authority (EPRA), Daniel Kiptoo, “There was an extension up to December 2024 so this is basically arising out of negotiations that have been happening to drive down the freight and the premium (costs).”

He defended the contract by saying that it had reduced the price of shipping oil to Kenya and the premium it paid to suppliers.

A senior foreign exchange trader at a commercial bank said, “It is still not lost on us that it is a stop-gap measure, whichever way you look at it.”

Also, it offers 180-day credit terms, allowing the nation to accumulate funds over time rather than needing to pay for imports with roughly $500 million per month.

There are recent concerns regarding the oil import agreement. It has come under scrutiny from government critics who argue that it has contributed to the surge in retail prices of petrol. Currently, a litre of petrol is selling for 211 shillings ($1.43), a significant increase from 160 shillings a year ago. Additionally, the government doubled the tax on fuel in July, further exacerbating the situation.

Although the rate of decline has eased recently, the Kenyan shilling has continued to face constant pressure from the dollar, confounding President William Ruto’s April forecast that it would strengthen noticeably.

Officials from the government and lawmakers from the ruling party have defended the president from the criticism by claiming that the nation was helpless against the rising oil costs on the world market.

VenturesNow

Nigeria received $1bn tax income from Shell in 2023

Published

15 hours ago

May 8, 2024

Ifeoluwa Dada

Shell Nigeria, a multinational oil company, claims that through the operations of Shell Petroleum Development Company of Nigeria Limited and Shell Nigeria Exploration and Production Company of Nigeria Limited, it exclusively paid $1.09 billion in corporate taxes and royalties to the Nigerian government in 2023.

According to the numbers released in the recently released 2023 Shell Briefing Notes, SNEPCo remitted $649 million, while the SPDC paid $442 million.

Similar payments made by the two firms in 2022 totalled $1.36 billion, according to a statement from Abimbola Essien-Nelson, the company’s manager of media relations.

“These payments are Shell exclusive and do not include those made by our partners,” said SPDC Managing Director and Country Chair, Shell Companies in Nigeria, Osagie Okunbor.

Okunbor explained, “Shell companies in Nigeria will continue to contribute to the country’s economic growth through the revenue we generate and the employment opportunities we create by supporting the development of local businesses.”

He continued by saying that Shell has been an investor in Nigeria for more than 60 years and that the Briefing Notes provide an update on the state of the companies’ operations in Nigeria for 2023, including SPDC, SNEPCo, Shell Nigeria Gas, and Daystar Power.

He claimed that the studies demonstrated how the businesses kept driving advancement, collaborating closely with communities and stakeholders to support socio-economic growth and offer more affordable, environmentally friendly energy options.

“It is important to emphasise that Shell is not leaving Nigeria and will remain a major partner of the country’s energy sector through its deep-water and integrated gas businesses. Our collective focus remains on delivery of safe operations and care for our people,” Okunbor maintained.

VenturesNow

Zimbabwe’s new gold-backed currency now official unit of exchange

Published

1 day ago

May 7, 2024

Ifeoluwa Dada

Zimbabwe’s Treasury says that the newly introduced gold-backed currency is the official unit of exchange for transactions. It also stated on Tuesday that laws requiring businesses to utilize the official rate would be released soon.

The Zimbabwe Gold (ZiG) has been stable on the official market since its inception in early April, but it has had a shaky start on the black market, where dealers are demanding a premium of 65% of the official rate to purchase dollars.

Additionally, some stores are charging customers who pay in the new currency—while the ZiG is being rejected by informal traders—a premium over the market rate, which is fixed at ZiG 13.6 per US dollar.

“To ensure orderly pricing, the Government will soon be introducing the necessary regulations to ensure that no exchange rate other than the official rate will be used for the pricing of all goods and services,” Finance Minister Mthuli Ncube said in a statement.

Since the ZiG’s inception, the government has been working to keep it afloat; this month, officials launched a campaign against unlicensed foreign exchange dealers.

Zimbabwe, located in southern Africa, abandoned the Zim dollar last month after it lost 70% of its value since the beginning of the year. This is the country’s fourth effort to introduce a local currency in ten years.