2023-11-07 12:36

LONDON, Nov 7 (Reuters) - Nigeria's state oil firm NNPC Ltd on Tuesday said it had launched a new grade of crude called Nembe, as Africa's largest oil producer aims to ramp up crude production. The country has long dealt with output declines due to crude theft, attacks on pipelines in the Niger Delta and a lack of investment, causing a dwindling of government revenue and large fiscal deficits. But output has picked up in recent months. Nembe production was formerly added to the Bonny Light stream more than three years ago, until instances of sabotage on the Nembe Creek Trunk Line (NCTL) hamstrung output, an NNPC source told Reuters on the sidelines of the Argus European Crude conference in London. Now, the country has managed to resurrect Nembe as a separate grade, he added. The first cargoes of Nembe were sold in October, consisting of two 950,000 barrel shipments sold to France and the Netherlands, a second NNPC source told Reuters. Nembe is similar to Nigeria's other distillate-rich grades such as Forcados, Bonga and Egina, Maryamu Idris, executive director of crude and condensate at NNPC Trading told the conference. The low-sulphur grade commands a premium to the global Brent benchmark, and is a good candidate to compete with Brazilian and Azeri crude grades for European refiners, she added. Production of Nembe is currently around 50,000 barrels per day, but the NNPC is aiming for a rise to 80,000 by the first quarter of next year and 150,000 barrels per day by the start of 2025, the source added. An October Reuters survey showed Nigeria produces roughly about 1.5 million barrels per day (bpd), up from 1.39 million bpd in September, according to OPEC figures. But the country hopes to ramp up production to about 1.8 million bpd by the end of 2023, a third NNPC source told Reuters. Last week, sources told Reuters that NNPC was set to supply the keenly anticipated Dangote oil refinery with up to six cargoes of crude oil in December to be used in test runs. Nigeria imports almost all its refined fuel needs to inadequate capacity and poor maintenance. The country is now pinning its hopes of ending fuel imports on the 650,000 bpd refinery being built to by Aliko Dangote, Africa's richest man. The refinery is expected to run on crudes that carry an API gravity of 29 to 34 degrees, the first NNPC source said. API gravity is an index of the density of a crude oil - typically in the range of 15 and 45 degrees. Higher API indicates a lighter, lower density crude. Nembe carries an API gravity of 29, the source added. https://www.reuters.com/business/energy/nigerias-state-oil-firm-launches-new-nembe-grade-crude-2023-11-07/

2023-11-07 12:32

Prosecutors investigating lithium, hydrogen deals PM Costa subject of related investigation Says his conscience is clear, to cooperate with inquiry President to address nation on Thursday LISBON, Nov 7 (Reuters) - Portuguese Prime Minister Antonio Costa resigned on Tuesday, hours after prosecutors detained his chief of staff in an investigation into alleged corruption in his administration's handling of lithium mining and hydrogen projects. Costa, who prosecutors said was the target of a related investigation, announced the decision in a televised statement after meeting President Marcelo Rebelo de Sousa. He said his conscience was clear, but he would not stand as candidate for a fourth time as premier. "The dignity of the functions of prime minister is not compatible with any suspicion about his integrity, his good conduct and even less with the suspicion of the practice of any criminal act," Costa said. It is up to the president now to decide whether to allow Costa's Socialists, who have a majority in parliament, to form a new government or to dissolve parliament and call an election. The Socialists' president, Carlos Cesar, said his party was prepared for "any scenario" while Luis Montenegro, leader of the main opposition Social Democrats, said he was ready for an early election. "The degradation of the government necessitates that no more time is wasted," Montenegro said. Parliament was due to vote on the 2024 budget bill later this month. There are worries the political crisis could impact the budget approval as well as the kick-off of the privatisation of the Portuguese national airline TAP. "It is inevitable that there will be elections after the sudden death of the government," said political scientist Adelino Maltez. Antonio Costa Pinto of Lisbon University did not rule out another Socialist premier taking over, but also said that a snap election was the most likely option. Portuguese stocks fell about 3% and the closely-watched gap between the European Union country's 10-year government bond yield and that of euro zone benchmark German Bund widened to 69 basis points from 65 bps on Monday. PROJECTS INVESTIGATED The prosecutor's office said earlier on Tuesday that five people had been detained as part of the investigation, including Vitor Escaria, Costa's chief of staff, whose offices had been searched along with several government buildings. It also said in a statement that Infrastructure Minister Joao Galamba, who previously served as energy secretary, and the president of the environment agency APA, Nuno Lacasta, were formal suspects and would appear before a judge. Galamba's office and APA did not reply to requests for comment. Prosecutors are investigating alleged graft and influence peddling in the Barroso and Montalegre lithium exploration concessions in northern Portugal, a project for a hydrogen plant in the port of Sines, and a mega data centre investment there. They said they had become aware that the suspects used Costa's name and authority to "unblock procedures" related to the deals and the Supreme Court would look into Costa's possible role in the deals. Costa said he was "fully available to cooperate" with the justice system. "At stake may be ... facts capable of constituting crimes of malfeasance, active and passive corruption of politicians and influence peddling," the prosecutor's office said. With more than 60,000 metric tons of known lithium reserves, Portugal has been seen as central to Europe's efforts to secure more of the battery value chain and cut reliance on imports. APA earlier this year gave the environmental approvals for local company Lusorecursos to extract battery-grade lithium in Montalegre and for London-based Savannah Resources (SAVS.L) to develop its own mine in Barroso. Contacted by Reuters, Lusorecursos had no immediate comment. Savannah said in a statement it was cooperating with the authorities who visited some of its locations, but that neither the company nor any of its staff were the targets of the investigation. Work at the Barroso Lithium Project continued unencumbered, it added. Lithium projects have faced strong opposition from local residents and environmentalists. In a joint statement, Portuguese anti-mining groups said Tuesday's developments were proof that mining processes had not been conducted in a transparent way, and they called for the "immediate cancellation" of all lithium projects. CONCERNS ABOUT FUTURE Costa will remain in his job until the president's decision. Rebelo de Sousa summoned political parties for consultations on Wednesday and his consultative body, the Council of State, on Thursday. Since coming to power in 2015 in the aftermath of a debt crisis and international bailout, Costa has presided over a period of strong economic growth during which his successive governments quashed the budget deficit and reduced the debt burden, winning praise in Europe for sound fiscal policies. But Costa's last term, which started in early 2022 when his party won a surprise outright majority in a snap election, was marred by scandals, including controversies around state-owned airline TAP in January 2023, which led opposition parties to demand his government's resignation. Carsten Brzeski, global head of macro at ING, expected few repercussions in financial markets thanks to Portugal's hard-earned reputation there. https://www.reuters.com/world/europe/portuguese-prosecutors-search-government-buildings-lithium-investigation-2023-11-07/

2023-11-07 12:23

BARCELONA, Nov 7 (Reuters) - The Barcelona port stevedores' union has refused to load and unload any military material amid the war in Gaza and urged the protection of civilian populations in areas of conflict, following a similar move by Belgian transport unions last week. The decision on Monday is mostly symbolic and seeks to encourage other Spanish ports to follow suit, the secretary of the OEPB union, Josep Maria Deop, told Reuters on Tuesday. The OEPB is the only union representing the 1,200 stevedores at Barcelona's port. Deop said organisations promoting peace could help the union figure out which containers contain military equipment. He said he was convinced there were military shipments from Barcelona because "it's a port that moves all types of goods". It wasn't clear what those organizations were and whether they had agreed to help the union in these efforts. Barcelona's port authority declined to comment and said it did not have data on military shipments. Israel has been targeting Hamas military operations in Gaza in the wake of the Oct. 7 attacks by Hamas Islamists on Israeli towns that left 1,400 people dead and 240 abducted. The retaliatory attacks by Israel have killed over 10,000 people, health officials in Gaza say. Spain exported military equipment worth 1.3 billion euros ($1.39 billion) in the first half of 2022, with shipments to Israel amounting to 9 million euros, according to the latest available official data. Spain does not plan to export any lethal military equipment to be used in the conflict between Israel and Hamas, state news agency EFE cited government sources as saying last week. The OEPB said it opposed all types of violence wherever it happens, including in Israel and the Palestinian territories, and that its boycott seeks to protect civilians anywhere. "No cause justifies sacrificing civilians," it said. Barcelona's dock workers adopted a similar boycott in 2011 due to the conflict in Libya. They also took part in humanitarian aid shipment projects for Western Sahara and Nicaragua in recent decades. ($1 = 0.9351 euros) https://www.reuters.com/world/europe/barcelona-dockers-refuse-handle-military-material-amid-gaza-war-2023-11-07/

2023-11-07 12:21

Nov 7 (Reuters) - Mexico's automotive production and exports rose in October from a year earlier, data from national statistics agency INEGI showed on Tuesday. Production increased by 35.77% to 378,129 vehicles and auto exports by 18.11% to 316,421 vehicles, according to the data. https://www.reuters.com/business/autos-transportation/mexicos-automotive-production-exports-rise-october-2023-11-07/

2023-11-07 12:17

LONDON, Nov 7 (Reuters) - OPEC expects the global economy to grow and drive fuel demand, despite macro challenges, including high inflation and interest rates, the producer group's secretary general said on Tuesday. The United States is doing well, while Europe is struggling, Haitham Al Ghais told the Argus European Crude Conference in London. Even China, which has emerged from lockdown more slowly than expected, forecasts growth at 4.5% to 5%, he said, outstripping Europe. "When we talk about demand and our outlook, maybe for the short term to medium term, we still see a healthy global economy growing despite all the challenges and pressures," he said. Official data on Tuesday showed China's crude oil imports in October grew year on year and month on month, while its total exports contracted more quickly than expected. Expectations of crude run reductions by China-based refiners between November and December could limit oil demand and exacerbate price declines. But Al Ghais said demand growth in India and in other parts of Asia looked positive, and the aviation sector globally was expected to continue to drive fuel demand. "In the airline sector, there is still room for improvement, so we are quite positive on demand," he said. OPEC's forecasts for demand growth for 2024 of over 2 million barrels per day diverge from the International Energy Agency (IEA) prediction of growth of 880,000 bpd. The Organization of the Petroleum Exporting Countries and allies led by Russia, a group known as OPEC+, meet later this month to set policy. He said OPEC+ had been proactive and taken preventative action to achieve a stable crude market. Asked about his views on the shift in global oil trade flows as Europe has shunned Russian fuel since the Ukraine war, Al Ghais said change had been underway before the conflict began in February last year and the market would dictate. "Ultimately, barrels will flow to wherever the best demand centre, the best price, is," he said. https://www.reuters.com/markets/opec-sees-healthy-growing-global-economy-2023-11-07/

2023-11-07 12:10

WINDHOEK, Nov 7 (Reuters) - Namibia began construction on Monday of Africa's first decarbonised iron plant, to be powered exclusively by green hydrogen, the country's investment promotion body said. Steelmaking is one of the most polluting industries in the world and the industry is seeking to shift away from coal-fired plants and towards the use of decarbonised iron. The Oshivela project in western Namibia is backed by the German federal government, which has injected 13 million euros, and will use renewable energy to generate 15,000 tonnes of iron per year with no carbon emissions, the Namibia Investment Promotion and Development Board (NIPDB) said in a statement. Namibia last year became the first African country to sign an agreement with the European Union to supply the bloc with green hydrogen and minerals needed for clean energy technology. Production at the plant is set to begin in the final quarter of 2024, with plans eventually to ramp up production to 1 million metric tons of green iron a year. The iron produced at the plant can also be used as a preliminary product in steel production in Germany to manufacture green steel for the production of wind turbines or vehicles, said Rainer Baake, Special Envoy for German-Namibian Climate and Energy Cooperation. The project's developers, a consortium of German and Namibian companies, said the plant will use HyIron technology, which processes iron ore in a rotary kiln with the help of green hydrogen. https://www.reuters.com/sustainability/namibia-starts-construction-africas-first-decarbonised-iron-plant-2023-11-07/