Bahrain, Angola, Ecuador and Venezuela rank as the emerging markets (EM) most vulnerable to a downgrade in their sovereign credit ratings if oil prices do not recover in 2015, Fitch Ratings said in a report published on Tuesday.
With benchmark Brent crude prices close to $80 a barrel, down from $115 a barrel in mid-June, the revenues of all oil producers are under pressure. But due to differing levels of fiscal reliance on oil income, the speed of deterioration in domestic budgetary conditions varies sharply among EM producers. Read more
Uganda’s government has been locked in a long-standing battle with companies over the development of its 3.5bn barrels of oil, mostly located around the Albertine Graben.
So it is with some relief that last week a memorandum of understanding was finally signed with UK-based Tullow Oil, Total of France and China National Offshore Oil Corporation, providing a framework for commercial production which builds on an April agreement. Read more
Tullow Oil, the London-listed oil exploration company, has made another Kenyan discovery to go with the finds in the country earlier in 2012 – but investors were hardly impressed, sending the shares down nearly 2 per cent, mainly on the depth of the oil.
The company announced on Monday that it had found oil at the Twiga South-1 well, which it owns 50-50 with Africa Oil. But it encountered only 30m of net pay (the thickness of the oil reservoir), a far cry from the earlier Kenyan find of 100m. Read more