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Royal Dutch Shell, Vitol Group and Africa-focused private investment firm Helios Investment Partners have entered into exclusive negotiations for the potential joint acquisition by Vitol and Helios of equity in Shell’s downstream businesses in 19 countries in Africa.

Reports that both the government of South Sudan and nominal opposition leader Riek Machar have been in talks with Khartoum over securing control of South Sudan’s oilfields have roused fears that the already bloody fight could escalate further. Speaking at Juba airport on 6 January at the conclusion of a visit by Sudan’s President Omar Al-Bashir, Sudan’s foreign minister Ali Ahmed Karti told reporters that the two countries were “in consultations” over a proposal from the South Sudanese government for the deployment of a “mixed force to protect oilfields in South Sudan”.

As the standoff with Khartoum continues, South Sudan is looking at alternatives for its oil. Three refinery projects are in discussion and an export pipeline to Kenya seems increasingly likely, writes Richard Nield

The government is working on the final – and most sensitive – phase of its price liberalisation and subsidy reduction programme, covering butane and sugar, general affairs and governance minister Mohammed Louafa told the lower house of parliament on 8 June. But implementation of the reform “will be the responsibility of the government named following the general election on 7 October”, Louafa said. This saves the current administration courting unpopularity in the four months before polling.

Two Egyptian refining projects expect to complete loan finance arrangements early this year, writes John Hamilton

Despite restarting production on 21 October after securing bank letters of credit to purchase a 600,000 barrel crude consignment from Nigeria, the Tema Oil Refinery (TOR) continues to operate at well below its 45,000b/d capacity. The refinery has been closed three times since reopening in April 2013, following an eight-month shutdown from mid-2012. TOR public affairs manager Aba Lokko told African Energy the refinery would continue to operate at 28,000 b/d until it received $37.7m from the government, the second tranche of a promised $67.7m finance package to rehabilitate the facility and boost capacity.

A new fuel storage terminal at Tangier port is set to open in September as a significant element of the $1.6bn scheme to make the previously down-at-heel northern Moroccan port a major regional transport hub

Engineering services company Penspen has won a contract from Petrozim Line to provide engineering, procurement services, construction and commissioning supervision for the latest phase of capacity expansion of the Feruka-Harare multiproduct pipeline. Penspen, which installed the original pipeline and has carried out a study for the expansion project over the last six years, will provide its services at three separate sites, Feruka, Wilton and Harare.

Oil minister Foumakoye Gado has defended the cost of fuel as one of the lowest in the region, following renewed pressure from transport unions and civil society groups for a price cut.Campaigners argue that fuel should be cheaper as Niger produces its own oil. However, in a series of mid-February interviews on local radio and television, Gado said refining costs also had to be taken into account.

Uncertainty over the regulatory framework has slowed oil and gas exploration for several years, but with new legislation in place the pace is finally picking up, writes Thalia Griffiths, recently in Johannesburg

With no deal yet in place on oil revenue-sharing between north and south Sudan, Khartoum has imposed a pipeline usage fee of $22.80/bbl on South Sudan’s exports

Oil trader Vitol is in the final stages of negotiating a deal with the government of South Sudan to build a new 10,000 b/d refinery on the Thar Jath field in Unity State, local sources told African Energy

Some 70,000 fuel industry workers went on strike on 11 July, demanding a

There is now hope for economic and military stability in both countries, but ongoing disputes over border issues and the status of Sudapet could still thwart co-operation, writes Hugh Boylan.

The government published oil sales figures on 23 July showing that its share of marketed oil was 1m barrels in June, 2.2m barrels in July and a projected 3.2m barrels in August. Assuming an average government share in sales of 60%, that puts total sales at an average of about 55,000 b/d in June, 118,000 b/d in July and 172,000 b/d in August. The pipeline shutdown will not affect August oil sales because the linefill will be sufficient to meet commitments.