Nigeria: Shell considers production cut

Time of article published Jun 24, 2013

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Shell considers production cut

Shell was considering a further reduction in its oil production in the eastern Niger Delta, it said on Friday. Nigeria wants more of its oil and gas owned either by the state oil company or local firms, raising concerns among foreign oil majors they may lose smaller assets for nothing if they do not sell now, industry experts say. Shell’s Nigerian subsidiary, the Shell Petroleum Development of Nigeria, said on Friday that it would consult with its international and Nigerian partners over the future of the 28 leases that produce some 750 000 barrels a day of oil. – Reuters


President’s son to chair fund

Angola on Friday appointed one of President Jose Eduardo dos Santos’ sons, Jose Filomeno, to chair its $5 billion (R50bn) sovereign wealth fund. Angola launched the fund in October to invest in domestic and overseas assets by funnelling oil wealth into infrastructure, hotels and other projects to diversify its economy outside the energy industry. Analysts welcomed the move at the time, saying it could help Angola protect itself from oil price shocks by cutting the government’s dependence on crude revenues. – Reuters


Airline takes to the skies again

Zimbabwe’s state airline had been licensed by the International Air Travel Association to resume flying to intercontinental destinations, it said on Friday. Air Zimbabwe said the world aviation body had finalised a safety audit on replacement aircraft and new services. The airline was grounded early last year after a series of pilots’ strikes and spiralling debt that led to its ageing planes being seized in London and Johannesburg. The airline plans to increase regional services immediately and resume direct flights to Europe in November. – Sapa-AP


Wide deficits to deter investors

Economic growth in Kenya will accelerate this year but wide current account and budget deficits and inflationary pressures may deter investors, a Reuters poll found on Friday. Gross domestic product should grow by 5.5 percent this year, a survey of 15 economists and analysts, published a day after a sharp sell-off on emerging markets, shows. The growth estimate, unchanged from recent Reuters polls, was up from an expansion of 4.6 percent last year but below the 7 percent Kenya reached before the violent aftermath to elections in 2007. – Reuters

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