John Campbell

Africa in Transition

Campbell tracks political and security developments across sub-Saharan Africa.

Posts by Category

Showing posts for "Energy"

Nigeria Claims $4.7 billion Lost Due to Oil Attacks

by John Campbell
Smoke and flames rise from a pipe-line fire in Ebute-Oko near Lagos November 30, 2000. The fire at the leaking oil pipeline, believed to have been started by a nearby cooking fire, has killed more than 60 people, many of them fishermen in wooden canoes that were engulfed by the flaming liquid. More than a dozen burned bodies littered a beachhead at the village of Ebute-Oko which faces the central business district of Lagos across a lagoon.

Maikanti Baru, the group managing director of the Nigerian National Petroleum Company stated on December 14 that the company’s subsidiary Nigerian Petroleum Development Company (NPDC) lost 1.5 trillion naira (about $4.9 billion) from militant and criminal attacks on its oil production facilities to date in 2016. Baru went on to say that NPDC recorded fifty-nine separate security incidents that resulted in crude production being shut down or deferred. Read more »

Nigeria’s Oil Production Down by 40 Percent

by John Campbell
Ships and tankers seen on the horizon off the coast of the Apapa port Lagos, Nigeria, Febuary 25, 2016. (Reuters/Afolabi Sotunde)

Oil is the property of the Nigerian state. Most of it is produced through partnerships between the Nigerian National Petroleum Corporation, which is owned by the state, and private oil companies. Oil provides the Nigerian state with about 70 percent of its revenue and roughly 90 percent of its foreign exchange. President Muhammadu Buhari’s current national budget is expansionary, not least because of the struggle against Boko Haram. The budget is based on the production of 2.2 million barrels per day at $38 per barrel. He has also declined to officially devalue the national currency, the naira, which trades at an official rate of about 200 to the U.S. dollar and about 345 to the U.S. dollar on the black market. Read more »

Attacks Accelerate on Nigeria’s Oil Infrastructure

by John Campbell
Villagers stand near jerrycans containing crude oil collected at the shore of the Atlantic ocean near Orobiri village, days after Royal Dutch Shell's Bonga off-shore oil spill, in Nigeria's delta state December 31, 2011. Amnesty International called into question Royal Dutch Shell's accounting in Nigeria for oil spill amounts and causes, saying the oil major was seeking to avoid compensation payments and damage to its reputation. Picture taken December 31, 2011. (Reuters/Akintunde Akinleye)

According to Bloomberg, militant attacks on the oil infrastructure in the Niger delta have resulted in the lowest level of production in Nigeria in twenty years, falling below 1.7 million barrels a day. As such, Nigeria is no longer Africa’s largest oil producer; Angola is. Bloomberg, citing the International Energy Agency, estimates that the Nigerian government could lose $1 billion in revenue by the end of May. It appears that some of the oil companies are withdrawing “non-essential” workers out of concern for their safety. Read more »

South Africa and Iran Aim to Resume Strong Trade Relationship

by Guest Blogger for John Campbell
Iran's President Hassan Rouhani speaks during a news conference in Islamabad, Pakistan, March 26, 2016. (Reuters/Faisal Mahmood)

Tyler Falish is an intern for the Council on Foreign Relations Africa Studies program, and a student in Fordham University’s Graduate Program in International Political Economy & Development.

South African President Jacob Zuma was in Iran for a two-day state visit on April 24 and 25. While in Tehran, Zuma and Iranian President Hassan Rouhani signed eight bilateral trade agreements as part of a commitment to increase non-oil trade between the two countries. Trade between the two nations plummeted after the imposition of expanded sanctions on Iran by the U.S., EU, and UN. According to UN Comtrade, in 2012—the most recent year of significant trade between the two countries—trade was valued at approximately $1.3 billion. By comparison, bilateral trade in 2015 totaled only $30 million. Read more »

African Drought and Hydropower

by Guest Blogger for John Campbell
A 13.8 megawatt hydroelectric dam undergoes construction in Matebe, Democratic Republic of Congo, July 21, 2015. Reuters/Alyssa Ross

This is a guest post by Jameson McBride, an intern for Energy and the Environment at the Council on Foreign Relations Africa Program. He is currently studying Political Science and Sustainable Development at Columbia University.

Over the past few months, an energy crisis has been deepening in Zambia: the nation has been generating only 58 percent of its usual electrical capacity. The cause of this energy crisis, however, is not economic or political—it is drought. Like many sub-Saharan states, Zambia is heavily dependent on hydroelectricity, and recent drought has crippled the nation’s power supply. Zambia’s hydropower problems may only be a sign of things to come. Long-range models predict that climate change is likely to cause more droughts throughout much of sub-Saharan Africa. While hydropower is widely billed as sustainable due to its low emissions and high efficiency, the drought-induced Zambian energy crisis suggests that it may not be a reliable solution for African energy in a future marred by climate change. Read more »