Industry

Regional trade desks reported on Wednesday that sellers of sweet and heavy West African grades are finding it difficult to clear their export programmes.

Physical oil markets across the Atlantic basin are contending with mounting headwinds as cargoes of both Angolan and Nigerian crude struggle to find buyers, undermined by stubbornly high shipping costs and softening differentials.

Regional trade desks reported on Wednesday that sellers of sweet and heavy West African grades are finding it difficult to clear their export programmes. The paralysis highlights growing competition in international refining centres, where delivered costs dictate refiners' feedstock purchasing strategies.

Twin pressures on West African differentials

Market participants point to an accumulation of geopolitical and operational factors that have simultaneously reduced arbitrage profitability and weakened outright bids for Atlantic basin crude.

A market trader noted that the physical market was confronting a “combination of high freight costs, recovering Middle Eastern supply, and widening discounts,” which has left several Nigerian and Angolan cargoes struggling to clear within their typical trading cycles.

When maritime tanker rates surge, distant refiners in Europe and Asia demand steeper discounts on free-on-board (FOB) prices to offset the expense of transporting the barrels. Concurrently, the gradual return of regional competition from Middle Eastern producers has offered refiners closer, more economic options, compressing the natural premium historically held by Atlantic grades.

Angolan grades suffer steep discounts

The downward trajectory is particularly pronounced in heavy, sweet grades from Angola, which have experienced severe pricing declines over the course of a single trading week.

Offers for Angolan Dalia crude were heard at a discount of $20 to dated Brent on the Argus Open Market this week, according to another trader. This assessment represents a substantial deterioration compared to the discount of $9.95 to dated Brent recorded for the grade last week on the Platts platform.

Key observations shaping current West African trading include:

• Elevated vessel charter rates pricing long-haul barrels out of key export destinations.

• Recovering crude flows from Middle Eastern producers reducing reliance on Atlantic basin imports.

• Persistent overhang of unsold volumes across the prompt loading programmes.

• Angolan differentials going lower, which is directly weighing on the pricing of competing Nigerian grades.

Because Angolan and Nigerian streams often compete for similar processing units across Mediterranean and Northwest European refineries, the widening price discount on Angolan heavy barrels has exerted immediate downward pressure on lighter Nigerian export grades. Sellers of Nigerian crudes are being forced to adjust their physical differentials downward to remain viable against their regional neighbours.

Chevron’s Aseng gas milestone

Beyond the prompt crude market, the wider Gulf of Guinea upstream sector is monitoring significant long-term infrastructure progress in neighbouring waters.

US oil major Chevron has confirmed it remains on track to deliver first gas from its offshore Aseng gas project in Equatorial Guinea in 2028, a senior company executive said. The development represents a notable step forward in monetising offshore gas reserves across regional production hubs, even as short-term crude physical traders manage the volatility of global shipping bottlenecks and shifting refinery margins.

The recent European Norm 17975 addresses ‘grey zone’ energy-related risks during machine and pipeline interventions and proposes a task based framework for safe and efficient work. The norm can further increase the safety and efficiency of Lockout/Tagout programmes in a wide range of industries

A task based safety framework

10%-15% of fatal workplace accidents in Europe’s industries are related to maintenance operations according to data from the European Agency for Safety and Health at Work. Many of these result from underestimating risks involved in specific tasks such as machine greasing, sensor adjustment or a quick cleaning that are not always seen as ‘maintenance activities’. They are kept outside the scope of Lockout/Tagout programmes even though workers are exposed to similar risks. European Norm (EN) 17975 addresses these grey zone risks by using task based risk analyses as a starting point.

“EN 17975 does not require an energy zero state for every machine or pipeline during every intervention”, said Mustafa Ekseri, EMEA Safety Engineer at Brady Corporation, a supplier of quality Lockout/Tagout solutions. “Not having to halt an entire production line for every intervention can save valuable time - if it is possible in a safe way. To achieve this, EN 17975 proposes a layered approach based on risks related to specific tasks on specific machines and pipes. These risks are to be highlighted in a risk analysis. In absence of a risk analysis, machine zero energy states remain the safety standard. In that sense, EN 17975 builds on ISO 14118 by providing more options for compliance with European workplace safety legislation. Impacted activities can be defined using EN 17007 and EN 13306 and are also listed in EN 17975.”

Risk analysis guidance

With machine and pipe intervention safety hinging on identified risks, industries will need thorough task-based risk analyses. Guidance can be found in other standards. “ISO 12100, primarily intended for machinebuilders to take into account their customers’ workplace safety, can be used as a basis for machine intervention risk analyses. ISO 31000 provides guidelines for managing risk in general, including 8 core principles, a framework and a process.”

“EN 17975 proposes 6 steps to analyse the risk in any machine intervention task, starting with the identification of the task, all the way to a feedback loop for continuous improvement. That includes a thorough energy source inventory and identification. The standard also requires a risk analysis update before applying Standard Operating Procedures, and during maintenance activities. In addition, EN 17975 advocates clearly identified degraded situations that may deviate from the standard risk assessment.”

Task-based isolation

EN 17975 uses a task based risk approach that was captured earlier in the French norm X60-400. Based on a task risk analysis, the European Norm proposes four types of risk control processes:

• Neutralisation: a process that, through design of the control systems, shuts down an item of equipment so that a list of predetermined tasks can be conducted in safety.

• Standard isolation: a process that results in the removal – by locking in position a single or double isolating device – of all energies & fluids where the presence, accidental retention, unexpected appearance does not have hazardous consequences for workers, the environment, and items.

• Reinforced isolation: a process that results in the removal – by separation or by a combination of isolating and opening devices (e.g. valve, tap, etc.) – of all energies & fluids where the presence, accidental retention, unintended appearance does not have hazardous consequences for workers, the environment, and items.

• Specific provisions: a process that results in the implementation of organisational or technical measures enabling observation, diagnostics, testing activities and work on settings for the item in service to be carried out safely, with energies & fluids present.

“All four risk control processes require an inventory of energies and fluids per machine with their effects on people, property and the environment, a mapping of the isolating devices and an identification sheet of energies, fluids, components and lockout devices. It also requires a shared risk assessment grid and process. EN 17975 describes the aim, application conditions, type of activities and other relevant factors for each of the 4 risk control processes.”

Lockout/Tagout guidance

Complying with EN 17975 requires a human, organisational and technical approach, all of which are outlined in the norm.

EN 17975 identifies 9 steps to carry out reinforced and standard isolations by Lockout/Tagout of energies and fluids. Steps involve separation of energies and fluids, isolation, lock out, tagout, identification, dispersion of energies, check, contain and inspect. “The ‘check’ step in EN17975 is already widely known in the industry as the ‘Tryout’ in Lockout/Tagout/Tryout or LoToTo. It is a vital step to help make sure that measures are implemented correctly and that they are still effective.”

“Brady safety engineers can help industries implement isolations by writing machine- and task specific lockout procedures. These can include all 9 steps from EN 17975, and they must be based on company task risk assessments. In addition, we can offer the right Lockout/Tagout tools for procedure compliance, set up a hands-on demo by locking out a specific machine, and provide training to relevant employees. Alternatively, a gap analysis can be made that identifies steps to be taken from the current state to arrive at compliant, best practice Lockout/Tagout.”

Impact on existing safety programmes

EN 17975 is not a legal requirement. “The standard however considerably facilitates compliance with EU workplace safety legislation. It sets a clear expectation for any machine intervention: if no risk analysis for the task is available, a machine zero energy state is required.”

“Because many safety programmes already involve complete machine isolation from every energy source, for every task, it is likely that the new norm will impact existing Lockout/Tagout-programmes. Based on the risk analysis, machine zero energy states may not be needed for every type of intervention.”

“Adversely, some tasks that were considered ‘small and safe’ may unveil more risk after a thorough risk analysis. This means a single machine could have several Lockout/Tagout procedures. The right procedure can be included with, or communicated via a QR-code on a work permit for example.”

“Some forms of automated safety may not be sufficient for every task without an underlying risk analysis. Take a safety cage for example, equipped with sensors that deactivate moving machine parts the moment someone enters the cage. Do these nullify any residual energy that may pose a risk? Is gravitational, and other potential energy taken into account? The goal of EN 17975 is to prevent accidents, and to avoid a false sense of safety that does not provide any real protection.”

With the European Norm 17975, industries in Europe can now rely on a common standard for compliance with EU and national safety legislation that involve risk control processes of energies and fluids in maintenance activities.

Get the Brady EN 17975 Lockout/Tagout webinar recording

Go from zero machine energy to zero intervention risk with task based Lockout/Tagout, driven by the European Norm 17975. Get your copy of the EN 17975 webinar from an experienced, worldwide Lockout/Tagout solution provider.

Discover more about:

•         the unique European framework EN 17975 provides to achieve safety and efficiency

•         how EN 17975 focuses on task-based safety, rather than machine zero energy states

•         how EN 17975 can be used to address ‘Grey zone’ risks

•         4 risk-based energy isolation levels presented by EN 17975

•         6 steps to control risks

•         Lockout/Tagout procedure writing

•         Lockout/Tagout device and padlock types

Get the webinar recording now >

Draw inspiration from our free guidebook on how to best implement Lockout/Tagout. Download the free guide >

BRADY EMEA

Mustafa Ekseri works as a Safety Engineer for Brady Europe, Middle East and Africa. He is involved in planning, writing procedures and rolling out Lockout/Tagout programmes at manufacturing and logistics workplaces throughout Europe. He is a Prevention Advisor Level 2, a Belgian legally regulated curriculum that equips professionals to handle safety and health risks in businesses.

EBITDA expanded 22% to N18.0 trillion.

NNPC Limited reported strong operational efficiency and enhanced earnings resilience reflecting on its substantial bottom-line growth in audited financial results for the year ended 31 December 2025 

There was, however, a drop in top-line revenue driven by a decline in international crude oil prices and reduced white product sales volumes following the full deregulation of the domestic fuel market in 2024. 

The numbers were highlighted during NNPC's latest Annual General Meeting and second Earnings Call with market analysts. Profit After Tax surged by 33% to reach 7.2 trillion even when top-line revenue dropped 24% to N34.5 trillion.

EBITDA expanded 22% to N18.0 trillion while Earnings Per Share (EPS) rose 32% to N35.9. Operating cash flow increased 16% to N12.8 trillion while Return on Equity (ROE) expanded by 200 basis points, reaching 16%.

Upstream operations for the year hit multi-year highs across both liquid and gas streams. Daily crude oil production averaged 1.77 million barrels per day (mbpd), marking a five-year peak. Total annual production reached 565.8 million barrels (up 5%), with NNPC's direct equity share rising 11% to 223.7 million barrels.

Natural gas output averaged 7.2 billion standard cubic feet per day (bscfd), reaching a three-year high. Annual output rose 9% to 2,606.2 bscfd, with equity production advancing 11% to 1,154.9 bscfd. 

Bashir Bayo Ojulari, group chief executive officer of NNPC Limited, said, "Our 2025 performance shows what disciplined execution and a capable workforce can deliver. We are strengthening earnings, growing production and investing in the people and assets that will sustain value for our shareholders, communities and the Nigerian people.”

The company aims to increase crude production to 2.0 mbpd by 2027 and 3.0 mbpd by 2030, while expanding natural gas production to 12.0 bscfd by 2030.

Sintana has acquired 44% interest in Maravilla Oil and Gas.

One of Africa’s most active emerging energy frontiers, Namibia’s Walvis Basin is a prospective exploration site for operators both major and small

The image of West Africa conjures, for operators, major high-impact exploration opportunities. Keen on securing interests in the region, Sintana Energy has strategically expanded its offshore footprint by acquiring a significant stake in Maravilla Oil and Gas. International reach besides, the acquisition will also strengthen Sintana's on-ground presence as it pledges local community development in Namibia’s Erongo Region. It will give the company a technical edge through regional synergies with existing acreage. The company will leverage the acquisition to capitalise on upcoming multi-operator offshore drilling campaigns and region-wide exploration milestones.

Sintana Energy has announced the acquisition of a 44% interest in a privately held Namibian company called Maravilla Oil and Gas that is focused on high-impact opportunities in West Africa 

This opens up for Sintana Energy several doors across Namibia's frontier acreages as Maravilla continues to expand regionally. Maravilla already owns 80% controlling shareholding in Namibian private company, Paragon, which in turn owns a 100% operated interest in Petroleum Exploration License 37 (PEL 37) located in the Walvis Basin offshore Namibia. Sintana's investment in Maravilla provides an indirect 35% interest in PEL 37.

Exploration on PEL 37

With this acquisition, Maravilla will get increased support from Sintana in resources development, as they collaborate to mature and refine opportunities including an inventory of prospects on PEL 37. Spread across an area of 17,295 sq km in relatively shallow waters (100 - 1,500m), with identified prospects at water depths between 300 and 600m, and with multiple large fans directly overlying a proven, mature oil-prone Aptian source rock. 

The license comes with an extensive technical database already in place, including 2,813 sq km (2014) of 3D seismic data, ~1,000 line kms of 2D seismic data (2014), and historical drilling activity (Cormorant-1 (2018), Sasoil (1995)).

Sintana also holds a 10% indirect interest in PEL 82, which lies north of PEL 37, and is operated by an affiliate of Chevron Corporation. PEL 82 is approximately 70% covered in 3D seismic and is home to the Murumbe-1 and Wingat-1 wells that had previously revealed light oil prospects. This geographic and technical setting of the two licenses will be mutually benefitial in future drilling outcomes and read through implications.

They will also focus on identifying and evaluating capital-efficient, high-impact opportunities in West Africa more broadly.

Chevron is gearing up for a busy year exploration-wise, with an inaugural exploration well expected in 2027. PEL 82 besides, in April 2026, Eco (Atlantic) Oil & Gas Ltd announced the farm down of interests in three of its licences in the Walvis Basin (adjacent to PEL 82 and PEL 37) to bp PLC, and is expecting to conduct significant activities on these licences over the coming 12-24 months. This includes seismic acquisition, reprocessing and potential exploration well decisions.

In conjunction with Sintana's investment, Maravilla will make a Namibian $1mm donation to the communities in the Erongo Region to be distributed in co-ordination with the Office of the Governor, Natalia IGoagoses and the Knowledge Foundation, led by Knowledge Katti.

Cost-effective exposure to high-impact exploration

Robert Bose, CEO of Sintana, said, "Expanding our platform though an investment in Maravilla is the continuing demonstration of our ability to secure cost-effective exposure to high-impact exploration licenses in emerging basins. The expansion of our Walvis Basin footprint positions us to participate in the next chapter of Namibia's offshore success. We look forward to providing updates on progress in the coming quarters."