Bavijas Review

Egypt's ambitious "Vision 2030" strategy, launched in February 2016, has taken a significant step forward with the enactment of Law No. 2 of 2024, also known as the Green Hydrogen Incentives Law.  This legislation, approved by the Egyptian House of Representatives in January 2024, offers substantial tax incentives to promote the development of green hydrogen projects within the country.  Following this landmark decision, Egypt has swiftly moved to capitalize on its green hydrogen potential by signing seven agreements with international developers. These agreements, expected to attract over $40 billion in investments over the next decade, signify Egypt's commitment to becoming a key player in green hydrogen production and renewable energy. Egypt's proactive approach to incentivizing green hydrogen projects underscores its determination to lead the transition towards renewable energy in North Africa. By offering tax credits and exemptions, Egypt aims to attract both

On Tuesday this week, a 400-level student of Petroleum Engineering at the University of Uyo asked me why the Dangote refinery is sourcing crude oil from far away the US when it has NNPC Ltd. as its equity shareholder. And I gave him an honest response that went thus:  “Dangote doesn’t seem to trust NNPC Ltd much when it comes to crude delivery. NNPC Ltd has failed before, so it (Dangote) is taking an extra layer of supply assurance.” Manufacturers with large production output worry when their supply base can't deliver on their promise. It makes them vulnerable to demand disruptions and volatility, which, of course, are undesirable for businesses.   To avert this, they often depend on a list of external suppliers to cut lead times and achieve assurance of supply. This is exactly what Dangote is beginning to do to sustain its refinery operations since NNPC Limited, its equity shareholder, couldn't deliver as when due. I don't think Dangote broke any agreement with NNPC Ltd. b

The United States plans to reimpose sanctions on Venezuela, its southern neighbour and the world’s  largest known oil reserves  holder, if the Maduro government defaults on its promise to hold free and fair elections. Washington ordered American companies dealing with the state-owned energy firm PSDA to wind down within two weeks. This is as the recent ruling by the Venezuelan Supreme Court on Friday upheld a ban on the candidacy of Maria Corina Machado, the opposition’s nominee for this year’s presidential election. Venezuelan President Nicolas Maduro during a ceremony marking the start of the judicial year at the Supreme Court in Caracas, Venezuela, Jan. 22, 2021 (AP photo by Matias Delacroix). Remember, the US eased its ban on Venezuela’s oil industry in October 2023 for six months (to elapse in March 2024), which helped the Latin American country fetch extra billions of dollars in oil earnings per trade figures revealed by Reuters. The oil industry is Venezuela’s biggest source of

Israeli-linked chemical tanker seized in the Gulf of Aden. Source: www.iranintl.com During his historic 42-minute speech at Westminster Hall on May 25, 2011, then-US President Barack Obama reiterated America was not and will never be in a religious war with Islam but rather in an unrelenting war with terrorist groups and their extremist allies. But its terrorism wars over the years have continued to be with armed groups inextricably linked with the religion of Islam. The Houthis, a religio-political Muslim rebel group of 200,000 troops formed in the 1990s as an opposition movement to Yemen President  Ali Abdullah Saleh , whose aim is to govern Yemen and support all external movements against the United States, Israel, the Jews, and sometimes Saudi Arabia, has been America’s headache for two decades now. In their unrelenting effort to institute Yemen's Shia Muslim minority—the Zaidis—over the years, thousands of Yemenis have died either by fighting or by the hardship that took hold

Globally, oil and gas development and production often require high capital expenditures (CAPEX), high technological expertise and the ability to manage investment risks. Oil companies that don't have the financial wherewithal to undertake such capital-intensive investments or projects will either bow out of the bidding process or adopt strategic approaches that could help them develop enough capabilities to overcome challenges waiting up front. Usually, two contractual arrangements are adopted to achieve this. One is a Joint Venture (JV), while the other is a Production Sharing Contract (PSC). What is a Joint Venture (JV)? A joint venture (JV) is a strategic equity-sharing agreement where two or more parties combine resources to execute an oil & gas transaction and mitigate the risk associated with the business. You may also call it a Joint Operating Agreement (JOA). Typically, the operators of a JV asset each have to contribute funds, in a proportionate degree, to develop the

  Wherever in the world you're reading this energy news review from, our team at Bavijas, an energy advisory firm, wishes to say a big welcome to you. That's one sunny side of technology; it brings us humans together regardless of where we might be. In this edition, we bring you selected energy news that dominated news headlines this week.  Read on. You'll like it. World : The International Energy Agency (IEA) says the world added a historic 510 GW of renewable energy (esp. solar) in 2023, equivalent to the combined power capacity of Germany, France, and Spain.📊📊 • Nigeria : NNPC Ltd announced an unaudited profit of N2.54 trillion in 2022, the highest since its inception in 1977. Recall it made a profit of N674.1 billion in 2021. Though profit for 2023 is not yet known.📉📉 • Uganda : The electricity regulator in Uganda plans to subsidise tariffs for commercial to medium-sized industries from January to March 2024, in a bid to ease their operational cost and boost economi

Mining of cryptocurrency is the process by which new coins are created, and transactions are verified, requiring substantial computational power. It is often an energy-intensive activity that takes a huge amount of power out of the grid, and it remains a contentious issue amongst environmentalists and crypto critics. However, market analysts point out that the energy consumption of Bitcoin is minuscule compared to that of traditional financial institutions. According to data made available by the International Energy Agency (IEA), and quoted by Forbes Advisor, the banking system consumes over 200 terawatt-hours (TWh) of electricity annually, whereas bitcoin mining uses only 127 TWh. While there is a big difference between the two figures, the energy consumed by crypto mining is nonetheless huge and raises concerns. That usage exceeds the entire annual electricity consumption of countries like Norway and Sweden. More so, Bitcoin uses 707 kilowatt-hours (kWh) of electricity per transact

Tar sandstone, from California, USA. Source: WikiCommons

  As I had indicated in the opening of my last newsletter edition, pouring different colours of paint into a bowl only produces a grey colour; not a bright one.  President Tinubu must not attempt to fix Nigeria in one day. Recall, Rome wasn't built in a day. Neither would Nigeria. He must be alert to the sensitivity of the particular socioeconomic condition of the average Nigerian. Mind you, an average Nigerian is ‘poor’. HE Tinubu shouldn't “suffocate the poor”. It is important for him not to do so. TAKE A LOOK AT THIS: ➡️ President Tinubu appoints Ms Olu Verheijen as Special Energy Adviser. She holds a B.Sc in Economics and Political Science as well as an M.Sc in Public Policy and was formerly the Deal Lead at Shell where she helped broker strategic oil and gas deals.  ➡️ CNG: Nigerians continue to press for CNG as an alternative to petrol. Independent petroleum marketers say that remains the only viable option on the table. ➡️ Electricity tariff to increase in Nigeria beginn

Nigeria’s Rural Electrification Agency, REA, has penned a Memorandum of Understanding with Oando Clean Energy Limited (OCEL) to deploy sustainable renewable energy systems across Nigeria. The Managing Director of the agency, Mr. Ahmad Salihijo-Ahmad revealed this in Abuja, the nation’s capital, and said the signing of the MOU would boost collaboration between the private sector and the government. Mr Salihijo-Ahmad explained that one of the best ways to mitigate the effects of subsidy removal in Nigeria is through the exploitation of opportunities to optimise the critical role of renewable energy. He expressed his delight over the REA – Oando partnership, saying that  “it will bring about mutually beneficial collaboration, knowledge exchange and experiences all targeted at achieving the common goal of optimising renewable energy in the country.” On his part, the Executive Director, Technical Services at the REA, Mr Barka Sajou while explaining the Agency’s shift in paradigm on the deli

The Manufacturers Association of Nigeria (MAN) is pressing for improved electricity supply to the manufacturing sector to reduce its burden in sourcing alternative power to remain in business. The association reported that expenditure on alternative energy source increased to N76.7 billion in the second half of 2022 from N45.04 billion recorded in the corresponding half of 2021; thus, indicating N31.66 billion or 70 per cent increase over the period. The inadequate electricity supply remains a huge challenge to manufacturers, accounting for their huge investment in self-energy generation, which stood at N76.7 billion in the second half of last year. Manufacturers’ cost of self-energy generation increased from N45.04 billion in the corresponding half of 2021, indicating N31.66 billion or 70 per cent increase over the period. According to MAN ‘Bi-annual Economic Review’ for the second half of 2022, it also increased by N8.9 billion or 13 per cent when compared with N67.8 billion recorded