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  • Pages
01 Agenda 2030
02 Contents
03 Introduction
04 Drilling down - the factors driving change in oil & gas
05 Five actions to future-proof revenues
06 Hydrocarbons are here to stay - for now
07 Insights from Amphora: Future-Proofing Oil Through Digitalisation
08 Insights from Amphora: Unblock the pipeline to oil trade finance
09 Insights from Amphora: Part 1 - Climate Change, Covid-19 & Oil Prices
10 Insights from Amphora: Part 2 - Climate Change, Covid-19 & Oil Prices
11 Insights from Amphora: Local deals will save Africa’s hydrocarbon sector
12 Insights from Amphora: Riding out the pricing peaks and troughs: maintaining oil and gas revenues
13 Insights from Amphora: Will the current health crisis hasten the early peak of oil demand?
14 Insights from Amphora: LNG continues to gain momentum as risk-weary buyers embrace short-term and flexible supply
15 Insights from Amphora: VAKT onboards NW-European barge post-trade processes
16 Insights from Amphora: LNG at an inflection point – the importance of optimisation in the mid-term
17 Insights from Amphora: Coming in from the cold – Arctic LNG takes its place on the world stage
18 Insights from Amphora: Automation and digitisation: cutting costs and speeding timelines in commodity and energy trading
19 Insights from Amphora: Peak oil demand predictions still fall wide of the mark
20 Insights from Amphora: Is natural gas a transition energy or not ?
21 Insights from Amphora: Coal faces an interesting future
22 Insights from Amphora: Carbon and ESG set for dramatic impact to energy industry
23 Insights from Amphora: 90-Day Track to A Successful Implementation
24 Insights from Amphora: ETRM Support and Maintenance
25 Insights from Amphora: Reference Data
26 Insights from Amphora: ETRM Training
27 Business Analyst
28 Project Manager
29 Support Team
30 Why Purchase a CTRM?
31 DEV Team
32 20 CTRM NOOB Mistakes to Avoid
33 About Amphora
34 Biographies
35 Acknowledgements
36 TechPros.io

INSIGHTS FROM AMPHORA

Local deals will save Africa’s hydrocarbon sector

As the global hydrocarbon sector experiences an unprecedented squeeze, now more than ever accessing trade finance need not involve the usual major players. Local deals are key. Infrastructure and trusted partners on a local level will become more important than global geopolitical trends. This is especially true in the emerging hydrocarbon economy in Africa where partnerships are incredibly important.

In the current pandemic, the Opec + deal to slash global oil output heralds an era of transformational deals to be done. The oil sector was already seeing pressure on trade finance. Some producers had been forced to bypass banks and traditional routes of finance, instead sourcing liquidity from large supply chain players doubling up as finance houses.

Africa is awash with oil and gas. But the Economic Commission for Africa (ECA) has warned that African oil exporting nations, namely Nigeria, Angola and Gabon, may be set to lose up to $65 billion in revenues as oil prices fall. In its own Opec + moment, the African Petroleum Producers Organization (APPO) committed to significant crude production cuts from the beginning of May.

Reserve-based lending (RBL) deals were still the main source of finance for Africa-focused independents looking to raise debt . . . with new liquidity coming from traders and commodity houses in return for tied offtake agreements stretching into the future.

Until recently, trade finance from foreign banks was becoming easier to come by in the African oil sector, but the impact of COVID-19 is expected to reverse that trend. Last year, Global Trade Review reported that “Reserve-based lending (RBL) deals were still the main source of finance for Africa-focused independents looking to raise debt . . . with new liquidity coming from traders and commodity houses in return for tied offtake agreements stretching into the future.”

Local banks in countries such as Nigeria, burnt by previous oil price falls and pipeline theft, have been cautious about getting involved in the hydrocarbons sector. Except – and we are likely to see a lot more of this – when local banks go into partnership with oil providers and commodity traders. Combining the liquidity benefits of partnerships with global commodity traders, who in turn tap into the local knowledge of national banks and providers, will be key to driving ongoing revenues in Africa’s hydrocarbon sector in the rest of this decade.

Amphora’s eBook ‘Agenda 2030: driving continued revenues in global hydrocarbons’ has more on the vital importance of building strategic partnerships for trade finance.

Read the eBook

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