Oil Daily | OPEC Increases Output Amid Russian Shadow Fleet Concerns and African Production Expansion

【Oil-Producing Countries Dynamics】

Denmark is intensifying inspections on oil tankers traversing its waters to counter Russia's shadow fleet movements. The focus is on older tankers transporting Russian oil through the Baltic Sea, raising environmental risks. The Danish government aims to curb potential hazards from these aging vessels, often linked to Russia's oil exports.

Sahara Group plans to increase its crude production in Africa to 350,000 barrels daily by 2030. This expansion involves acquiring new rigs and enhancing services, primarily focusing on Nigeria. The company is part of a larger movement, with major firms like Exxon, TotalEnergies, and Shell also boosting production in the region.

Italy's Eni has resumed drilling off Libya after a break due to COVID-19. Eni's return aligns with other major oil companies like Shell and BP, which have signed exploration deals with Libya. The move is part of Libya's strategy to increase oil production to 2 million barrels daily, reflecting an improved political environment.

QatarEnergy has acquired a 27% interest in Egypt's North Cleopatra offshore oil and gas block from Shell, awaiting government approval. This aligns with QatarEnergy's broader expansion in Egypt, partnering with majors like Chevron and Tharwa Petroleum. Egypt aims to boost oil and gas production amid past challenges with output and energy shortages.

OPEC decided to increase oil output by 137,000 bpd starting November, echoing October's cautious increase. The decision is a compromise between Russian and Saudi Arabian interests, aiming for market stability. OPEC remains focused on regaining market share and managing its spare capacity amid global economic steadiness and low oil inventories.