News

October 13, 2008

Africa Weekly: Circle Oil Updates On Oil Discovery, Angola Aims To Increase Oil Output, Roc Abandons MAW-1 In Angola, And Shell Says To Reenter Nigeria’s Niger Delta, While PetroSA Defends Plan To Set Up 400, 000 bpd Refinery

By Tawanda Karombo

As the week opened, oil prices on global markets fell dramatically to below US$90 a barrel, the commodity’s lowest price for the previous eight months. The African oil scene immediately responded by catching a cold after the global oil markets sneezed with the tumble in the price of oil. Despite real positive developments in the previous three or so weeks – which have seen the African oil scene glimmer – last week was a bit subdued. Crude oil tumbled further to a 12 month low on late Thursday trade with traders quoting the commodity at below and around US$85 a barrel. and the Oil Producing and Exporting Countries (OPEC) cartel respondent by scheduling a meeting for November 18.

Moving onto developments on the African oil scene during the previous week, Circle Oil issued a confirmation update on Monday that it had made an oil discovery in Egypt’s Kareem Formation sandstones. Circle Oil said it had tested the well at 41 degrees API oil and gas while confirmation of sustained rates was issued at 3,388 barrels of oil per day. Circle Oil’s chief executive officer, David Hough said the oil discovery in Egypt complemented the firm’s gas production in nearby Morocco.” This...