Author: Marketforces Africa

Asset Swap: TotalEnergies Deepwater Focus Earnings Positive TotalEnergies EP Nigeria Limited has entered into definitive agreements with Conoil Producing Limited to execute a strategic asset realignment involving two offshore Nigerian assets. The deal sees TotalEnergies acquiring a 50% operated interest in OPL 257, while Conoil takes over TotalEnergies’ 40% participating interest in OML 136, a gas-rich block. Post-transaction, TotalEnergies will hold 90% of OPL 257, with Conoil retaining 10%. OPL 257 is an offshore exploration block with a 2005 discovery, the PP261 structure, which holds significant upside. TotalEnergies plans to drill an appraisal well in 2026, leveraging its proximity to…

OML 136 Acquisition Deal Boosts Conoil Earnings Outlook Conoil acquisition deal has bolstered the company’s earnings outlook, and reposition its operational strength in the upstream segment. In a fresh deal, the company made a significant move in its upstream expansion strategy by executing an agreement to acquire TotalEnergies EP Nigeria’s 40% participating interest in Oil Mining Lease (OML) 136, a promising offshore asset with substantial long-term gas development potential. This transaction is part of a broader asset realignment between the two long-standing partners, allowing Conoil to strengthen its portfolio as TotalEnergies consolidates its interests elsewhere. OML 136 is an offshore…

Exchange Rates Weaken over Softening Naira Demand The naira depreciated across the official and unofficial currency markets due to a US dollar shortfall after recent rounds of FX interventions by the Central Bank. The exchange rates shift came as demand for naira softened in the absence of foreign investors’ activities in the financial markets. On the other hand, the market is witnessing rising demand to settle year-end imports amidst a slowdown in FX inflows.  It takes CBN FX sales for the naira to gain traction in the market recently. The spot rate at the official FX market has been fluctuating,…

Oil Prices Decline as U.S Crude Inventories Surge Oil prices fell on Thursday after an unexpected increase in US crude inventories and signs of progress in Russia-Ukraine diplomacy eased supply concerns. International benchmark Brent crude was trading at $62.35 per barrel, down 0.1% from the previous close of $62.42. The US benchmark West Texas Intermediate (WTI) also decreased by about 0.08% to $58.44, compared to $58.49 in the prior session. The US Energy Information Administration (EIA) reported that commercial crude inventories rose by 2.8 million barrels last week to 426.9 million barrels, defying market expectations for a 1.3 million-barrel draw.…

African Eurobonds Rally as Odds of U.S. Fed Rate Cut Increase African Eurobonds gained foreign investors’ attention in the international market as odds of U.S Federal Reserve rate cut in December continue to increase. Most of African issuers still offer premiums on external borrowings due to general economic uncertainties and social, political and economic risks. Trading activities in Nigeria and other African issuers remained positive, supported by steady investor demand across long durations. Nigeria’s US dollar bonds topped offshore preference, with similar positive sentiment observed across peer sovereigns such as Egypt and Angola. According to Cowry Asset Management Limited, the…

Euro Climbs as Odds of December U.S Fed Rate Cut Shifts The European single currency, the euro (EURUSD), climbed toward $1.1557 on Tuesday, its strongest level since November 18, as investors sold the dollar following weaker-than-expected US economic data. The US dollar is mostly narrowly mixed against the G10 currencies amidst postponement of key economic data. The dollar index weakened amidst economic uncertainties in the US. Markets concerns over political influence on US economic institutions, including the Federal Reserve and the Bureau of Labor Statistics, are also seen as undermining confidence in the Dollar. In a note, UBS still expects…

BoI Unveils Business Clinic Model for MSMEs Growth The Bank of Industry (BoI) has introduced a business clinic model designed to diagnose, treat and rehabilitate the Micro, Small and Medium Enterprises (MSMEs) to ensure long-term growth and sustainability. The Divisional Head, Business Development, BoI, Dr Obaro Osah, made this known at the bank’s Thrive Summit with the theme: “Driving Growth through Innovation and Financial Empowerment” on Tuesday in Lagos. Osah noted that traditional banking often treated businesses as mere account opening and management relationships. He said the BoI business clinic model was created to reimagine the essence of a bank…

Equity Investors Gain N94bn as NGX Halts Losses The Nigerian Exchange (NGX) grew by more than N94 billion in the latest rally as the monetary authority kept interest rate unchanged, overturning negative sentiment. Trading activity switched positive, halting the selloffs that have lasted for six trading sessions since last week, with the year-to-date return trailing 40%. Stockbrokers said the market resurgence was primarily driven by renewed buying interest in selective stocks across key sectors as cautious trading continues. Consequently, the market index, or All-Share Index, increased by 148.52 basis points to close at 143,763.13 points. NGX market capitalisation also increased…

BNB Climbs as Investors React to DeFi Upgrade Binance coin BNBUSD, is shifting position, positively moving up a new trend line in a fresh rally in the crypto market on Tuesday amidst US Fed rate cut expectations – a new catalyst to drive sharp bargain hunting. According to trading records, the hybrid token has climbed by 2% amidst an investigation of Binance’s possible connections to Hamas funding, raising concerns about BNB’s regulatory and compliance protocols. According to data obtained from CoinMarketCap.com, BNB rose by approximately to $853.80 in the past 24h, outperforming the broader crypto market. Trading data showed that…

Crude Oil Prices Decline over Excess Supply Concerns Crude oil prices fell in the global commodity market due to increasing expectations of a supply glut and a wary market attitude in anticipation of important decisions from the US Federal Reserve (Fed). Brent crude was trading at $62.35 per barrel, down 0.8% from the previous close of $62.85. US benchmark West Texas Intermediate (WTI) also decreased by about 0.8% to $58.42, compared to $58.88 in the prior session. Expectations that global oil supply will exceed demand next year remain the primary driver behind the recent downward momentum. Market analysts note that…