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Ahmed El-Hoshy, CEO of Fertiglobe. (Image source: Fertiglobe)

Fertiglobe, the seaborne exporter of urea and ammonia, and nitrogen fertiliser producer from the Middle East and North Africa region, reported Q1 2024 revenue of US$552mn, adjusted EBITDA of US$223mn, and adjusted net profit of US$119mn

In Q1 2024, ammonia prices retreated from their levels in Q4 2024 on easing supply disruptions and lower gas prices compared to the previous quarter, while urea prices were impacted by mixed trends due to favourable weather incentivising demand in North America coinciding with delayed planting in Europe, as well as lower-than-expected tender uptake in India, partially offset by healthy demand in other key regions including Brazil and Australia.

Ahmed El-Hoshy, CEO of Fertiglobe, commented, “We are pleased to report a strong quarter, marked by a 5% year-on-year increase in our own-produced sales volumes, driven by higher production and lower ending inventories, which led to a 22% and 1% increase in ammonia and urea own-produced sales volumes, respectively. This demonstrates continued efforts by our manufacturing and commercial teams to prioritise our key strategic objectives, paving the way for further operational milestones over the course of the year, by capitalising on our robust in-house capabilities and logistics footprint. It is worth noting that these results were delivered in an environment of market volatility and softer prices in Q1, on lower crop and energy prices as well as reduced imports from India and Europe, coupled with an improved supply situation with recent curtailments being reversed.

"Fertiglobe has continued to make good progress on its cost optimisation programme, having achieved 60% of its US$50mn run rate target implemented by the end of March 2024, and remains on track to realise the full target by the end of 2024. In addition, there is potential to generate at least US$100mn in incremental annual EBITDA by the end of 2025 compared to 2023, driven by improved production and energy efficiency within its ongoing manufacturing improvement plan (MIP). Together, these two initiatives have potential to generate US$150mn of incremental EBITDA by the end of 2025, representing an approximately 15% increase compared to 2023.

"These initiatives bolster Fertiglobe's cash flow generation across cycles, supporting the company’s already healthy free cash flow conversion and robust balance sheet, and enabling Fertiglobe to balance growth spending on value accretive projects and dividend payments.

"In addition, Fertiglobe remains firmly focused on technology, innovation and digitalisation, and is investing in the integration of Artificial Intelligence (AI) throughout its operations to unlock value, enhance efficiencies, and reduce emissions. The company is harnessing data integration and predictive analytics applications to support business objectives by improving the performance of equipment, processes, and facilities, while also implementing AI-powered analytics at its sites to enhance safety and reliability.

“I would like to extend my sincere appreciation to our exceptional team, whose dedication has been instrumental in our achievements. Their unwavering commitment to safety and excellence has been pivotal in our transformation into a leading global enterprise, which is about to embark on an exciting new chapter of growth and value creation following ADNOC’s acquisition of OCI's 50% equity stake, which will take ADNOC's ownership to a majority 86.2%. Together, we have immense confidence in Fertiglobe's ability to continue passing milestones and setting new standards for our industry.”

The Borr Norve jack-up rig was utilised to drill a target area located approximately 3.2 kms west-northwest of the MaBoMo. (Image source: Adobe Stock)

BW Energy has confirmed increase in reserve estimates following the presence of good quality reservoir in DHBSM-2P pilot well in the northern end of the Hibiscus South deposit

Drilled from the MaBoMo production platform to a total depth of 5,130 m, BW aims to acheive well completion of DHBSM-2P by the end of 2024.

The Borr Norve jack-up rig was utilised to drill a target area located approximately 3.2 kms west-northwest of the MaBoMo.

Evaluation of logging data, sample examination and formation pressure measurements confirm approximately 25 metres of pay in an overall hydrocarbon column of 35 metres in the Gamba formation.

The well data provides additional confirmation that the Hibiscus South structure is a separate accumulation with a deeper oil-water contact than the nearby Hibiscus Field. This will enable the company to book additional reserves not currently included in its annual statement of reserves and provide the opportunity to drill one or more additional production wells from the MaBoMo facility.

“We continue to increase the production and reserve base through low-cost and low-risk development activity in line with BW Energy’s strategy,” said Carl K. Arnet CEO of BW Energy. “The Hibiscus South pilot well is another confirmation of the significant potential of the Dussafu licence which holds multiple additional prospects.”

Preliminary evaluation indicates gross recoverable reserves of 5 to 6 million barrels of oil and approximately 14 million barrels of oil in place.

Coral South FLNG is Mozambique’s first operating LNG project, and the first deep-water FLNG project for Africa. (Image source: Adobe Stock)

Air Products, a provider of liquefied natural gas (LNG) technology and equipment has announced its dual mixed refrigerant LNG Process technology (AP-DMR) and equipment, which has been deployed at the Coral South floating liquefied natural gas (FLNG) plant in Mozambique, Africa, has successfully passed its performance test achieving LNG production above 3.4 mn tons per year.

Air Products’ proprietary AP-DMR LNG Process was selected because of its high efficiency, reliable operation, and compact footprint. AP-DMR’s superior process efficiency combined with the use of aeroderivative machinery translates to a lower carbon intensity than all other LNG processes in floating service.
Coral South FLNG is Mozambique’s first operating LNG project, and the first deep-water FLNG project for Africa. It is the second largest FLNG facility in the world. Air Products’ involvement with this project started in 2013 with conceptual work, resulting in the selection of the AP-DMR LNG process technology and equipment, including the supply of two proprietary coil-wound main cryogenic heat exchangers (CWHEs), one for precooling and one for liquefaction within the facility.

The CWHEs for the Coral South project were fabricated at Air Products’ LNG equipment manufacturing facility in Port Manatee, Florida. Additionally, Air Products provided expert, technical advisory services for the installation, commissioning, start-up, and performance testing.

“Having been selected to participate in this landmark project is a significant achievement and the first project to leverage our very efficient AP-DMR LNG process. Our supplied equipment having successfully completed performance testing is the direct result of the expertise and experience of our team, from all areas of the LNG business, working in close collaboration and in support of TP JGC Coral France (the EPC joint venture of Technip Energies France SAS and JGC Corporation) executing the project and Coral FLNG S.A. (the owner/operator),” said Dr. John Palamara, general manager – LNG at Air Products.

Air Products’ AP-DMR LNG Process has also been selected for the Energía Costa Azul LNG land-based project in Mexico which is currently under construction.

 

The Nigerian government is pushing policies to attract investment in the oil and gas sector. (Image source: Adobe Stock)

The President of Nigeria, Bola Ahmed Tinubu signed an Executive Order for US$10bn investments in oil and gas. 

Tinubu was speaking at the opening of a two-day retreat on economic transformation and development organised by the House of Representatives. 

Represented by his Chief of Staff, Femi Gbajabiamila, Tinubu also disclosed that the Federal Government signed the consolidated guidelines for implementing fiscal incentives for the oil and gas sector.

He said, “The Executive Order streamlines contracting processes, procedures, and timelines from 36 months to six months. The order also seeks to ensure that local content requirements are implemented without impeding investments or the cost competitiveness of oil and gas projects.

“All of these have the same objective – to reduce government interference with the commercial imperatives of businesses in the country so that businesses based here can be competitive and focus on their core objectives of economic growth through innovation and trade.

“We will need the support of the National Assembly to fully implement some of these reforms, as statutory changes will be required in some areas.
“I am confident that when the time comes, the governing partnership we have established between the Executive and the Legislature will ensure that these changes are effected swiftly to benefit our nation.

"Your actions have substantially fortified the legal framework of the Students Tertiary Education Loan Program, ensuring its efficient implementation. These achievements are a testament to the power of our partnership and the positive impact it can have on our nation.

“The legislature must have the capacity to monitor the executive, and the executive, in turn, should be willing to comply with the legislative enactments.

“It is not just a coincidence but a strategic advantage for our country that the governing relationship between the Executive and the Legislature perfectly reflects this ideal.

“As you know, my administration is implementing significant policy changes to reform how we govern and position our country for progress and shared prosperity for all citizens.”

Tinubu said, “These reforms, while necessary and, in some cases, long overdue, are not without their challenges. I am deeply grateful for your unwavering support and understanding during these times. Your understanding and support have been invaluable, and I am confident that with our continued collaboration, we can overcome any challenges that lie ahead.
“The oil and gas industry has long been the lifeblood of our national economy. My administration is working tirelessly to change this and diversify our economy from overreliance on the production of fossil fuels. However, we are also determined to maximise revenue potential from this critical industry.

“For this reason, we are pushing policies to attract investment in the oil and gas sector.”

He continued, “We can only justify our collective mandate and the trust our people repose in us through constructive collaboration between the National Assembly and the Executive. This joint effort is the minimum the people who voted for us expect from us.

“However, the very essence of checks and balances means there will be times when the executive and legislative prerogatives inevitably collide. Above all else, the national interest must guide our decisions in those moments. We share a common responsibility in shaping the future of our nation, and it is through our collaboration that we can effectively fulfil this duty."

The MOU is valid to 31 May. (Image source: Adobe Stock)

Wildcat Petroleum has signed an MOU with the Ministry of Petroleum (MOP) covering the following:

To establish a collaboration agreement to form a Production Sharing Service Agreement (PSSA) between the MOP and WCAT to work together to advance the development and commercial exploitation of the hydrocarbon assets in selected fields in the Republic of South Sudan.

A working party made up of members of both WCAT and MOP will be established to select suitable fields for development and agree suitable terms and conditions. 

The MOU is valid to 31 May and recognises the current status of existing exploration and production contracts in South Sudan including pre-emption rights. It can be terminated on 30 days' notice by either party.

Chairman Mandhir Singh said, "It was very disappointing that the Company was unable to secure the Bamboo field in Sudan (North), however the Company hopes to make up for this disappointment by concentrating on South Sudan."

 

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