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Savannah Energy subsidiary Accugas has signed a deal to take up to 20 mcf/d of gas from Amocon and resell it to customers via its pipeline network, opening up a potentially lucrative new area of business.

Amid a waning consensus over strategy, the Opec+ meeting in early June broke up with African members unhappy at an unwelcome squeeze on their future production while Saudi Arabia made a unilateral output cut of 1m b/d, reflecting Riyadh’s determination to shape market forces, writes Jon Marks.

Bola Ahmed Tinubu acted decisively at his 29 May inauguration as head of state, by ordering the removal of subsidies on petroleum products. Sources close to his incoming administration had predicted such a move was likely, but the timing of any announcement had been unclear. Previous governments have promised to remove subsidies before backing away from such a decision, so Tinubu’s nerves are likely to be tested in the face of the protests that are now likely.

First details have emerged of the integrated power plant at Dangote Group’s 650,000 b/d Lagos refinery, commissioned on 22 May.

Among the more positive signals emerging from the Nigerian oil and gas sector is the prospect of more liquefied natural gas (LNG) projects. However, many of Nigeria's West African neighbours already having an FLNG project under construction or reactivation.

The timing of the official commissioning of the 650,000 b/d Dangote Petroleum Refinery and Petrochemical Plant on 22 May said as much about local political sensitivities as it did about the facility’s undoubted importance for the Nigerian energy sector.

Incoming Nigerian President Bola Tinubu inherits a challenging brief in the upstream oil and gas sector, with concerns over fiscal terms, regulation and other long-standing corporate worries likely to prove resistant to easy resolution.

Three distribution companies – Kano, Kaduna and Aba Power Limited Electric – were briefly disconnected from the grid by Transmission Company of Nigeria (TCN) in April after a long history of unpaid invoices. Government intervention led to them being reconnected, but only for a 60-day grace period. TCN has warned that other discos could be disconnected once the grace period expires.

Justice minister Abubakar Malami has reportedly recommended that the Federal Government of Nigeria (FGN) halt its legal action in the long-running saga over alleged fraud related to the sale of oil production licence (OPL) 245, saying the episode had negatively affected the economy.

A recent flurry of activity by outgoing President Muhammadu Buhari will help his successor Bola Tinubu to tackle key macroeconomic problems, including cutting subsidies and overhauling the exchange rate. It could pave the way for a more proactive government at a time of extreme economic and other stresses, writes Jon Marks.

Nigeria-focused, London-listed Seplat Energy said it was waiting for chief executive Roger Brown’s visa status to be resolved before he retakes the reins at the company, after the Nigeria Immigration Service (NIS) withdrew a case it had brought at the Federal High Court in Abuja.

The International Monetary Fund has trimmed its economic growth expectations for sub-Saharan Africa in its latest World Economic Outlook to 3.6% for 2023. Low-income countries are expected to outperform most of their richer neighbours, but some analysts have warned the IMF is being overly optimistic.

The continent’s main crude grades are finding themselves priced out of the largest Asian markets including China and India, although in the longer term there may be a way for African players to benefit from the advent of cheaper Russian supplies.

As Bola Ahmed Tinubu prepares for his scheduled 29 May inauguration, Africa Confidential and African Energy are co-hosting a high-level panel on continuity, change, energy strategy and the policy mix in Nigeria on 18 April, during the AIX Energy in Transition event in London.

Lagos-headquartered Rensource plans to launch a Series B funding round in the near future, aiming to raise $12m by end-year, which it will use to advance its 70MW commercial and industrial project pipeline, chief executive Prince Ojeabulu told African Energy.