Jeffrey Cavanaugh, 7:54 am AFKI Original
Struggling Nigerian oil company Afren is defaulting on an interest installment on its 2016 notes after a 30-day grace period for a missed payment ended in early March. The amount owed to creditors is $15 million and Afren is still looking for a solution to its looming insolvency after rebuffing a takeover offer by rival Seplat.
Jeffrey Cavanaugh, 3:06 am AFKI Original
the UK’s Overseas Development Institute recently reported that the exchange-rate risk of sub-Saharan African sovereign bonds points to potential losses of nearly $11 billion. Meanwhile, the yield on Nigeria’s $500-million Eurobond due in July of 2023 has jumped 199 basis points since last May.
Jeffrey Cavanaugh, 10:30 am AFKI Original
The last time oil saw an extended period of low prices in the late 1990s, the global industry saw a massive wave of mergers and acquisitions. Now, with oil prices once again in the doldrums there is talk the industry might see more consolidations. The next few months will be critical in determining which oil companies will stay afloat.
Jeffrey Cavanaugh, 2:19 am AFKI Original
The head of Total’s African-focused exploration and production work, Guy Maurice, spoke to reporters recently about how the price downturn might impact the company’s investments. He noted that three big projects that were greenlighted recently will still go through
Jeffrey Cavanaugh, 2:45 am AFKI Original
As those living in Africa might have noticed, 2014 was not a particularly auspicious year when it came to the strength of local currencies. Vis-à-vis the US dollar Africa’s domestic currencies lost on average around 10.4 percent, reflecting the overall strength of the greenback
Jeffrey Cavanaugh, 4:24 pm AFKI Original
The drop in oil prices actually makes it a good time to begin the hard development work that will be required to bring Kenya’s onshore oil to market. Onshore plays like Kenya’s are much more attractive than offshore, given the current market conditions. The global drop in oil prices is leading to exploration cutbacks everywhere but Kenya. Here’s why investing in East Africa oil makes sense now.
Jeffrey Cavanaugh, 3:42 am AFKI Original
So, looking ahead to 2015, barring any disasters—and Ethiopia was quick to remind investors that it was still subject to terrible things happening to it—the coming year should be a good one. The will have $1.0 billion in additional capital from a successful sovereign bond to spend on roads, bridges and all the other vitally important infrastructure it needs.
Jeffrey Cavanaugh, 3:22 am AFKI Original
Today South Africa is facing rolling blackout and electricity shortages that are crippling output and leading to increased political pressure to do something, anything, to ensure the lights stay on. The latest round of blackouts have been ongoing since March and there is little prospect of the situation improving any time soon. To solve this growing crisis South Africa is looking at constructing a 2,600 km gas pipeline from neighbouring Mozambique through a joint development deal between Johannesburg-based junior SacOil, South Africa’s state-owned Public Investment Corporation and Mozambique’s state holding company Igepe.
Jeffrey Cavanaugh, 5:10 am AFKI Original
For investors long worried about the impact falling oil and gas prices will have on emerging Africa, we are now swiftly approaching the moment of truth: Brent crude is below $65/bbl. In Africa, the obvious beneficiaries are those countries that are not oil producers, meaning that out of the continent’s big three regions it is Southern Africa and East Africa that are most poised to benefit.
Jeffrey Cavanaugh, 1:59 am AFKI Original
New oil discoveries off the Gabon and Congo coast could double the volume previously thought to exist. In recent years production in both countries plummeted as maturing onshore fields and political unrest took a toll on the investment needed to keep crude flowing.