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Transcript of Oil+Gas_126th Edition_June 2018+NEW.cdr - CrudemixAfrica
www.africaoilgasreport.com
FR
OM
TH
E E
DIT
OR
Vol 19, No 6, July 2018
report
Reporter: SEUN ALABIOWO
Business Development: PAUL KELECHI
REGIONAL REPRESENTATIVES
West Africa: DELALI OTCHI/Accra, Ghana
South Africa: ROBERT BAKRE/Cape Town, SA
North Africa: OYELADE ABASS/Cairo, Egypt
HQ(North): Abuja, KISH ONWUNALI
HQ(South): NOAH AJIBISE/Warri
AMY AVIA /Port Harcourt
Publisher: TOYIN AKINOSHO
Editor-In-Chief: FRED AKANNI
Editor: MOSES AKIN AREMU
Consultant: FIDELIS AKPOM
Editorial Assistant: AHMED GAFAR
Published by: FESTAC NEWS PRESS LTD.
OFFICE ADDRESS
12A, Animashaun Street,
FOLUSO OGUNSAN (Lagos)
Off Bode Thomas Street, Surulere, Lagos.
EDITORIAL EMAIL: [email protected]
WEBSITE: www.africaoilgasreport.com
TEL: 234-8036-525-979
DISPATCHER: Kayode Akinyele
LEGAL CONSULTANTS
OMISORE AND OMISORE
6th Floor, Western House, Broad Street, Lagos
REGIONAL CONTACTS
CAPE TOWN: ROBERT BAKRE
Western Cape Postnet Suite 226
Post Bag X16 Hermanus, 7200 South Africa
Phone: +277-96971531.
Email: [email protected]
ACCRA: DELALI OTCHI
Email: [email protected]
Phone: 233-2405-69650.
DANIEL BUDU
Phone: +233-243349209.
RIDGE CHURCH,
Tudu Branch, Accra. Phone: +234-243349209
CAIRO: AL-AHRAM NEWSPAPERS LTD.
Al Galaa Street, -11511, Cairo.
Phone: 5796997, Mobile: 012/2180706
OYELADE ABASS
SUBSCRIPTION/ADVERT PLACEMENT
SERVICES
Phone: +234-806-0095809, +234-8127483663,
+234-809-9903294, 234-8036-525-979
Email: [email protected]
REGIONAL CORRESPONDENTS
SA'AD BASHIR (Dar es Salaam)
JOHN ANKROMAH (Accra)
SULLY MANOPE (Windhoek)
MOHAMMED JETUTU (Cairo)
DEV George Houston
TAKO KONING Calgary
DESIGN & EDITORIAL CONSULTANTS
KAZMA CONCEPTS LAGOS
[email protected], 234-805-621-2178
Cover Design: OBAYANJU WALESEUN
INTERNATIONAL ADVISORY BOARD
MAKOJI ADUKU Abuja
AKIN ADESOKAN Indiana
AUSTIN AVURU Lagos
JAHMAN ANIKULAPO Lagos
ISSN: 1597-5274
Copyright 2018
FESTAC NEWS PRESS LTD.
AFRICA OIL + GAS REPORT J U LY 2 0 1 8 3
In Angola, this species has lost its lustre, for now. In Nigeria, foreign companies don't want to deal with the complications of Nigeria's regulatory agencies and so called state partners and the Nigerian independent, working in between, helps to perfume the process. In Algeria and Gabon and Egypt, the states are stronger than the cronies.
frican governments all over the continent are hoping that local businessmen could get Amore involved in operations of acreages. But African businessmen, as a rule, just want to collect the licence and rent to well-heeled tenants to do the hard work.
Is it true to say that whoever is coming into Africa to access E&P opportunities has to increasingly deal with the African independent.
This fourth annual edition of The African Independent allows us to view access to Africa's exploratory and producing acreage through the prism of the local player. Perhaps it helps fit some of the jigsaws?
Okay, the issue isn't as neat as that. There are African born operators who want to put in sweat equity develop the asset and, in the process, build capacity. There are those whose major competencies are their access to government officials. In between, it has emerged, there are those who have cravings for developed E&P assets and can leverage access to raise capital, but have no notion of capacity building. Asset stripping is more like what they do.
The Africa Oil+GasReport is the primer of the hydrocarbon industry on the continent. It is the market leader in local contextualizing of global developments and policy issues and is the go-to medium for decision makers, whether they be international corporations or local entrepreneurs, technical enterprises or financing institutions. It has been published by the Festac News Press Limited since November 2001, AOGR is a paid subscription based monthly, hardcopy and pdf publication delivered around the world. Its website remains www.africaoilgasreport.com m and the contact email address is . [email protected] telephone numbers in our West African regional headquarters in Lagos are +2348130733523,+2347062420127, +2348036525979 and +2348023902519.
You are not to think that anyone cares about you.
You are not to think you are as good as we are.
Sandemose's ten commandments referred to the mentality of a fictional town called Jante, but the values were immediately understood to capture the larger disposition of Scandinavians in general. The commandments are:
You are not to think you can teach us anything.
The actual commandments are less known in Finland, but Finns certainly recognise the sentiment. It's not that Nordics are proud of their Law of Jante, mind you. More than anything, the commandments are meant as a critique of a rather sad aspect of the Nordic character that is often taken too far. Efforts to stand apart from the crowd, or even to display self- confidence, can strike people steeped in the Nordic tradition as egotism or narcissism.
You are not to laugh at us.
The phrase is “the Law of Jante,” and it is shorthand for a list of ten commandments created by the Danish-Norwegian writer Aksel Sandermose in his 1933 novel A Fugutive Crosses His Tracks.
You are not to think you are smarter than we are.
You are not to think you know more than we do.
You are not to convince yourself that you are better than we are.
The Nordic tendency to downplay the unique talents of each person, as well as his or her unique pursuit of happiness and success can be petty and disheartening. Downplaying specialness
is so deeply ingrained and pervasive that the Scandinavians-that is, the Swedes, Danes and Norwegians-even have a literary phrase to describe this tendency.
You are not to think you are anything special.
You are not to think you are more important than we are.You are not to think you are good at anything.
-Editor
Excerpted from The Nordic Theory of Everything: In Search of a Better Life, by Anu Partanen, published by HarperCollins, 2016.
Licences, the Local Businessman and African Oil
BOOK EXCERPTThe Struggle Against Specialness
By Anu Partanen
FR
OM
TH
E E
DIT
OR
Vol 19, No 6, July 2018
report
Reporter: SEUN ALABIOWO
Business Development: PAUL KELECHI
REGIONAL REPRESENTATIVES
West Africa: DELALI OTCHI/Accra, Ghana
South Africa: ROBERT BAKRE/Cape Town, SA
North Africa: OYELADE ABASS/Cairo, Egypt
HQ(North): Abuja, KISH ONWUNALI
HQ(South): NOAH AJIBISE/Warri
AMY AVIA /Port Harcourt
Publisher: TOYIN AKINOSHO
Editor-In-Chief: FRED AKANNI
Editor: MOSES AKIN AREMU
Consultant: FIDELIS AKPOM
Editorial Assistant: AHMED GAFAR
Published by: FESTAC NEWS PRESS LTD.
OFFICE ADDRESS
12A, Animashaun Street,
FOLUSO OGUNSAN (Lagos)
Off Bode Thomas Street, Surulere, Lagos.
EDITORIAL EMAIL: [email protected]
WEBSITE: www.africaoilgasreport.com
TEL: 234-8036-525-979
DISPATCHER: Kayode Akinyele
LEGAL CONSULTANTS
OMISORE AND OMISORE
6th Floor, Western House, Broad Street, Lagos
REGIONAL CONTACTS
CAPE TOWN: ROBERT BAKRE
Western Cape Postnet Suite 226
Post Bag X16 Hermanus, 7200 South Africa
Phone: +277-96971531.
Email: [email protected]
ACCRA: DELALI OTCHI
Email: [email protected]
Phone: 233-2405-69650.
DANIEL BUDU
Phone: +233-243349209.
RIDGE CHURCH,
Tudu Branch, Accra. Phone: +234-243349209
CAIRO: AL-AHRAM NEWSPAPERS LTD.
Al Galaa Street, -11511, Cairo.
Phone: 5796997, Mobile: 012/2180706
OYELADE ABASS
SUBSCRIPTION/ADVERT PLACEMENT
SERVICES
Phone: +234-806-0095809, +234-8127483663,
+234-809-9903294, 234-8036-525-979
Email: [email protected]
REGIONAL CORRESPONDENTS
SA'AD BASHIR (Dar es Salaam)
JOHN ANKROMAH (Accra)
SULLY MANOPE (Windhoek)
MOHAMMED JETUTU (Cairo)
DEV George Houston
TAKO KONING Calgary
DESIGN & EDITORIAL CONSULTANTS
KAZMA CONCEPTS LAGOS
[email protected], 234-805-621-2178
Cover Design: OBAYANJU WALESEUN
INTERNATIONAL ADVISORY BOARD
MAKOJI ADUKU Abuja
AKIN ADESOKAN Indiana
AUSTIN AVURU Lagos
JAHMAN ANIKULAPO Lagos
ISSN: 1597-5274
Copyright 2018
FESTAC NEWS PRESS LTD.
AFRICA OIL + GAS REPORT J U LY 2 0 1 8 3
In Angola, this species has lost its lustre, for now. In Nigeria, foreign companies don't want to deal with the complications of Nigeria's regulatory agencies and so called state partners and the Nigerian independent, working in between, helps to perfume the process. In Algeria and Gabon and Egypt, the states are stronger than the cronies.
frican governments all over the continent are hoping that local businessmen could get Amore involved in operations of acreages. But African businessmen, as a rule, just want to collect the licence and rent to well-heeled tenants to do the hard work.
Is it true to say that whoever is coming into Africa to access E&P opportunities has to increasingly deal with the African independent.
This fourth annual edition of The African Independent allows us to view access to Africa's exploratory and producing acreage through the prism of the local player. Perhaps it helps fit some of the jigsaws?
Okay, the issue isn't as neat as that. There are African born operators who want to put in sweat equity develop the asset and, in the process, build capacity. There are those whose major competencies are their access to government officials. In between, it has emerged, there are those who have cravings for developed E&P assets and can leverage access to raise capital, but have no notion of capacity building. Asset stripping is more like what they do.
The Africa Oil+GasReport is the primer of the hydrocarbon industry on the continent. It is the market leader in local contextualizing of global developments and policy issues and is the go-to medium for decision makers, whether they be international corporations or local entrepreneurs, technical enterprises or financing institutions. It has been published by the Festac News Press Limited since November 2001, AOGR is a paid subscription based monthly, hardcopy and pdf publication delivered around the world. Its website remains www.africaoilgasreport.com m and the contact email address is . [email protected] telephone numbers in our West African regional headquarters in Lagos are +2348130733523,+2347062420127, +2348036525979 and +2348023902519.
You are not to think that anyone cares about you.
You are not to think you are as good as we are.
Sandemose's ten commandments referred to the mentality of a fictional town called Jante, but the values were immediately understood to capture the larger disposition of Scandinavians in general. The commandments are:
You are not to think you can teach us anything.
The actual commandments are less known in Finland, but Finns certainly recognise the sentiment. It's not that Nordics are proud of their Law of Jante, mind you. More than anything, the commandments are meant as a critique of a rather sad aspect of the Nordic character that is often taken too far. Efforts to stand apart from the crowd, or even to display self- confidence, can strike people steeped in the Nordic tradition as egotism or narcissism.
You are not to laugh at us.
The phrase is “the Law of Jante,” and it is shorthand for a list of ten commandments created by the Danish-Norwegian writer Aksel Sandermose in his 1933 novel A Fugutive Crosses His Tracks.
You are not to think you are smarter than we are.
You are not to think you know more than we do.
You are not to convince yourself that you are better than we are.
The Nordic tendency to downplay the unique talents of each person, as well as his or her unique pursuit of happiness and success can be petty and disheartening. Downplaying specialness
is so deeply ingrained and pervasive that the Scandinavians-that is, the Swedes, Danes and Norwegians-even have a literary phrase to describe this tendency.
You are not to think you are anything special.
You are not to think you are more important than we are.You are not to think you are good at anything.
-Editor
Excerpted from The Nordic Theory of Everything: In Search of a Better Life, by Anu Partanen, published by HarperCollins, 2016.
Licences, the Local Businessman and African Oil
BOOK EXCERPTThe Struggle Against Specialness
By Anu Partanen
KI
CK
ST
AR
TE
R
AFRICA OIL + GAS REPORT J U LY 2 0 1 8 5
“What do you know about them?”, the inquiries always state.
The geography is very specific and so is the nationality of the preferred licensee: Nigeria and Nigerian.
So a semi-official secondary market has grown to fill the gap.
Between 2013 and 2015, ConocoPhillips, the world's largest independent, received close to $1.5Billion for its sale of, mainly, 20% equity in four leases in the country, a transaction that marked its exit from Nigeria.
FAR LESS EXPENSIVE HAVE BEEN the deals involving farm ins into and operatorships of marginal fields and exploratory tracts.
The follow up statement to that query hardly varies; “I have people who have money to invest”. Indeed, the largest producing Nigerian independents: AITEO
~80,000BOPD, Seplat ~65,000BOPD, Shoreline ~50,000BOPD, Neconde ~50,000BOPD, Eroton ~40,000BOPD, came in to being through the secondary market.
The state itself has not exactly benefited from these sales. When the Department of Petroleum Resources staked a claim, for the first time, to 10% of the transaction money, in the last Shell-led bid round, which grossed $4.6Billion, it discovered a clause that said that any payment to government from the transactions had to be made by the buyers of the assets. And you know what? And since the buyers are “poor” Nigerian companies, the DOR found itself on the back foot.
Outside of the marginal fields league are a number of Oil Prospecting Licenced acreages that would appear on the surface, available. There are over 15 of them, mostly onshore Niger Delta, some in shallow water. But holders of these assets are not in a hurry to do deals. The fact that they escape even paying signature bonus after being awarded these assets, in cases for over 20 years, says something about state/regulatory capture in the Nigerian petroleum industry.
But these are the big ticket items, in which the cost of buying stakes in each acreage has ranged from $50 Million to $2.5Billion, because most of the assets involved are producing properties.
So Afren had taken advantage of Nigeria's informal secondary lease market. In spite of the access of some of the company's principals to the upper reaches of Nigerian political power structure, Afren never won an acreage from the Nigerian government, either in an open lease sale or a discretionary award.
Shell started the contemporary round of divestments of Nigerian
assets in 2008 when it sold 15% of the total equity in Oil Mining Leases (OMLs) 125 and 134 to Oando. It upped the game in 2010, when it began what has now become its frequent “bid round” of sale of onshore assets, leading its co-venturers TOTAL and ENI to collectively divest their 45% in eight acreages for a sum of around $7Billion.
One company that excelled in this area was Afren. Between its founding
in 2004 and its demise in 2015, the London headquartered independent signed MoUs with seven Nigerian marginal field acreage holders. In the end it consummated a deal with one; Oriental Resources, on the Ebok field, which it brought into production. It also farmed into Amni Petroleum's Okoro field, which it took to first oil. At the height of its powers, Afren was producing over 52,000BOPD gross from these two fields. It was convenient for the company not to quote the gross figures, since its equity volume from these two assets, at over 30,000BOPD, was also high.
THE ONLY LICENCING ROUND focused on marginal fields was conducted in 2001-2002. Out of the 24 such fields awarded to 31 Nigerian independents in 2003, 10 fields have not reached sustained production. Several of them are candidates for anyone who is interested in having a pie of the Nigerian marginal field basket. They are Bicta Energy's Ogedeh field, which has never really had an operationalized work programme; Sogenal's Akepo field, which has faced serious operational challenges in the journey to development; Goland's Oriri field has experienced failed re-entries; Movido's Ekeh field has had
intermittent production, with expensive, short term production facilities and the field has been shut in for over three years now; Dansaki/Associated's Tom Shot Bank field has not had the benefit of a robust development partner. Finally, Del Sigma's Ke Field needs a working up.
The big challenge of Nigeria's petroleum licencing operation is not in the frequency of bid rounds. It is in the management of licences. Companies hold on to asset, especially if it is awarded by the state, without payment of the most rudimentary charges and unwilling to embark on a work programme. And when would be partners come, the first thing on the table is to pay the signature bonus; the second thing is the sign on fee and the third is the regular, quarterly fee paid to “owners” of the licence.
Nigeria has not conducted a bid r o u n d s i n c e 2 0 0 7 . A n d discretionary awards by the government have been few and far between.
Chevron has, quietly earned over $800Million from the sale of its stakes in six acreages (three onshore and three shallow offshore) since 2014.
Meanwhile, in Guarantee/Owena owned Ororo marginal field, the partners have tied up with Sirius Petroleum, which acts as both technical operator and financier. There is ongoing work on Eurafric's Dawes Island field, by partners Petralon and Tako E&P. Sahara's Tsekelewu Field is clearly a no go area, less because there is anything going on than the fact that Sahara Energy is a well-heeled company which doesn't need a partner; it's just not keen on doing anything with this particular field. It should be at risk of losing the licence, but then, Sahara has a way with the Nigerian government.
“Do you know a Nigerian holder of petroleum acreage who is interested in funding partnership for field development?”It's a question I have been asked, quite routinely, in the last 10 years.
These enquiries are always about the marginal fields, awarded 15 years ago, that haven't been developed, as well as over 20 oil prospecting leases; exploratory tracts which have been granted to Nigerian companies, as far back as 25 years ago, but never experienced an active work programme.
By Toyin AkinoshoPublisher
The big challenge of Nigeria's petroleum licencing operation is not in the frequency of bid rounds. It is in
the management of licences.
Some Insight Into Nigeria's “Secondary Licencing” Market
KI
CK
ST
AR
TE
R
AFRICA OIL + GAS REPORT J U LY 2 0 1 8 5
“What do you know about them?”, the inquiries always state.
The geography is very specific and so is the nationality of the preferred licensee: Nigeria and Nigerian.
So a semi-official secondary market has grown to fill the gap.
Between 2013 and 2015, ConocoPhillips, the world's largest independent, received close to $1.5Billion for its sale of, mainly, 20% equity in four leases in the country, a transaction that marked its exit from Nigeria.
FAR LESS EXPENSIVE HAVE BEEN the deals involving farm ins into and operatorships of marginal fields and exploratory tracts.
The follow up statement to that query hardly varies; “I have people who have money to invest”. Indeed, the largest producing Nigerian independents: AITEO
~80,000BOPD, Seplat ~65,000BOPD, Shoreline ~50,000BOPD, Neconde ~50,000BOPD, Eroton ~40,000BOPD, came in to being through the secondary market.
The state itself has not exactly benefited from these sales. When the Department of Petroleum Resources staked a claim, for the first time, to 10% of the transaction money, in the last Shell-led bid round, which grossed $4.6Billion, it discovered a clause that said that any payment to government from the transactions had to be made by the buyers of the assets. And you know what? And since the buyers are “poor” Nigerian companies, the DOR found itself on the back foot.
Outside of the marginal fields league are a number of Oil Prospecting Licenced acreages that would appear on the surface, available. There are over 15 of them, mostly onshore Niger Delta, some in shallow water. But holders of these assets are not in a hurry to do deals. The fact that they escape even paying signature bonus after being awarded these assets, in cases for over 20 years, says something about state/regulatory capture in the Nigerian petroleum industry.
But these are the big ticket items, in which the cost of buying stakes in each acreage has ranged from $50 Million to $2.5Billion, because most of the assets involved are producing properties.
So Afren had taken advantage of Nigeria's informal secondary lease market. In spite of the access of some of the company's principals to the upper reaches of Nigerian political power structure, Afren never won an acreage from the Nigerian government, either in an open lease sale or a discretionary award.
Shell started the contemporary round of divestments of Nigerian
assets in 2008 when it sold 15% of the total equity in Oil Mining Leases (OMLs) 125 and 134 to Oando. It upped the game in 2010, when it began what has now become its frequent “bid round” of sale of onshore assets, leading its co-venturers TOTAL and ENI to collectively divest their 45% in eight acreages for a sum of around $7Billion.
One company that excelled in this area was Afren. Between its founding
in 2004 and its demise in 2015, the London headquartered independent signed MoUs with seven Nigerian marginal field acreage holders. In the end it consummated a deal with one; Oriental Resources, on the Ebok field, which it brought into production. It also farmed into Amni Petroleum's Okoro field, which it took to first oil. At the height of its powers, Afren was producing over 52,000BOPD gross from these two fields. It was convenient for the company not to quote the gross figures, since its equity volume from these two assets, at over 30,000BOPD, was also high.
THE ONLY LICENCING ROUND focused on marginal fields was conducted in 2001-2002. Out of the 24 such fields awarded to 31 Nigerian independents in 2003, 10 fields have not reached sustained production. Several of them are candidates for anyone who is interested in having a pie of the Nigerian marginal field basket. They are Bicta Energy's Ogedeh field, which has never really had an operationalized work programme; Sogenal's Akepo field, which has faced serious operational challenges in the journey to development; Goland's Oriri field has experienced failed re-entries; Movido's Ekeh field has had
intermittent production, with expensive, short term production facilities and the field has been shut in for over three years now; Dansaki/Associated's Tom Shot Bank field has not had the benefit of a robust development partner. Finally, Del Sigma's Ke Field needs a working up.
The big challenge of Nigeria's petroleum licencing operation is not in the frequency of bid rounds. It is in the management of licences. Companies hold on to asset, especially if it is awarded by the state, without payment of the most rudimentary charges and unwilling to embark on a work programme. And when would be partners come, the first thing on the table is to pay the signature bonus; the second thing is the sign on fee and the third is the regular, quarterly fee paid to “owners” of the licence.
Nigeria has not conducted a bid r o u n d s i n c e 2 0 0 7 . A n d discretionary awards by the government have been few and far between.
Chevron has, quietly earned over $800Million from the sale of its stakes in six acreages (three onshore and three shallow offshore) since 2014.
Meanwhile, in Guarantee/Owena owned Ororo marginal field, the partners have tied up with Sirius Petroleum, which acts as both technical operator and financier. There is ongoing work on Eurafric's Dawes Island field, by partners Petralon and Tako E&P. Sahara's Tsekelewu Field is clearly a no go area, less because there is anything going on than the fact that Sahara Energy is a well-heeled company which doesn't need a partner; it's just not keen on doing anything with this particular field. It should be at risk of losing the licence, but then, Sahara has a way with the Nigerian government.
“Do you know a Nigerian holder of petroleum acreage who is interested in funding partnership for field development?”It's a question I have been asked, quite routinely, in the last 10 years.
These enquiries are always about the marginal fields, awarded 15 years ago, that haven't been developed, as well as over 20 oil prospecting leases; exploratory tracts which have been granted to Nigerian companies, as far back as 25 years ago, but never experienced an active work programme.
By Toyin AkinoshoPublisher
The big challenge of Nigeria's petroleum licencing operation is not in the frequency of bid rounds. It is in
the management of licences.
Some Insight Into Nigeria's “Secondary Licencing” Market
IN
T
HE
NE
WS
AFRICA OIL + GAS REPORT J U LY 2 0 1 8 7
“Operational activity are continuing as planned”, the partners say.
OTAL, CNOOC and Tullow Oil continue Tto work towards reaching Final Investment Decision (FID) for the Albert
Basin development project in Uganda, around the end of 2018, according to the three companies.
The upstream Environmental and Social Impact Assessment (ESIA) was completed around May 2018 and has been submitted to the National Environmental Management Authority for review.
The milestones for the several conditions precedent before FID have shifted much farther towards year end 2018 than originally scheduled, such that none of the partners could refer to first or second quarter 2018 anymore-as they did as recently as late 2017,-for FID.
This is farther down the road than earlier announced and it makes first oil far less likely before 2022.
The upstream FEED was completed around
May 2018 and initial technical and commercial reviews of this work have begun, which will ultimately result in the award of the Engineering, Procurement and Construction contracts.
Discussions on the pipeline project continue between the Joint Venture Partners and both the Ugandan and Tanzanian Governments regarding the key commercia l and transportation agreements, Tullow Oil reports.
Tullow forecasts full year gross production from the Jubilee field to average around 78,100BOPD, up from 75,800BOPD gross previously guided.
The shut down of FPSO Kwame Nkrumah for two periods of maintenance was primarily responsible for the output decline, but the production was lower than the operator's expectations of at least 75,800BOPD.What has happened was that, apart from repairs on the FPSO, there has also been maintenance work on the gas compression system.
In the first half of the year, two new Jubilee production wells were drilled as part of the current drilling campaign. These wells will be completed and brought on stream during the third and fourth quarter of 2018 and a previously drilled Jubilee water injection well will also be tied-in.
ross production from the Jubilee field Go f f s h o r e G h a n a a v e r a g e d 67,500BOPD in the just concluded
first half of 2018. This is far lower than 89,700BOPD it averaged throughout 2017.
While this maintenance work briefly affected
production, it has resulted in increased gas compression capacity and as new wells are brought on stream this will positively impact oil production capacity. “The Jubilee FPSO has been regularly producing at around 100,000BOPD gross from existing wells since these works were carried out”, Tullow says in an operational update.
The repair work on Kwame Nkrumah was a turret remediation work to stabilise the turret bearing. “The maintenance work has successfully prepared the FPSO for long-term operations as a permanently spread moored vessel”, Tullow explains. A final planned shutdown is expected around the end of 2018 to rotate the FPSO to its permanent heading and install the final spread mooring anchoring system with minimal impact to production.
NCTL was heavily under repairs as of the time of going to press
Jubilee's Production Dips For Now, But…
FID Shifts Farther Down For Uganda's Albert Basin Oil Development Award of the Engineering, Procurement and Construction contracts moves towards 2019.
Nigerian companies pumping crude oil into the Nembe Creek Trunk Line (NCTL) have advanced so much in progressing alternative routes that several sources are “so sure” that there
will be hardly a drop of crude pumped into that line by June 2020.
The facility starts from the Nembe Creek field in Oil Mining Lease (OML) 29, and ends at a manifold at the Cawthorne Channel field on OML 18. From here, crude is evacuated the short distance to the Bonny oil terminal.
Shell doesn't pump its own crude into NCTL, but sends the liquid into the short line between Cawthorne Channel and the Bonny Terminal.
Up to 600,000 BOPD of liquids can be evacuated from the end point at Cawthorne Channel.
“The famous Bonny Terminal looks like is about to lose its relevance after several decades”, sources tell Africa Oil+Gas Report. NCTL was heavily under repairs as of the time of going to press in early July 2018, having been shut in since June 7, 2018.
AITEO, Eroton and Newcross, three Nigerian independents which evacuate their crude through the NCTL, lose as much as 40% of the crude routinely to oil theft, sources tell Africa Oil+Gas Report. They have each been working assiduously on alternatives, with Eroton reportedly being ahead of others, to install alternative pipelines that
evacuate their crude to FPSOs on the Atlantic.
The 97kilometre pipeline, with capacity to pump 150,000Barrels Per Day, is a favourite of oil thieves, who routinely hack into the line,
creating as many a s 2 4 i l l e g a l bunkering points t h a t r e q u i r e constant plugging.
In 24 Months, Nembe Creek Trunk Line Will Be Running Empty
www.africaoilgasreport.com
Vol 19, No 6, July 2018
report
State Capture NigeriaThere are over 15 Oil Prospecting Licenced acreages, mostly onshore Niger Delta, some in shallow water. But holders of these assets are not in a hurry to do deals. The fact that they escape even paying signature bonus after being awarded these assets, says a lot about the state capture in the Nigerian Petroleum system. Go to page 5
IN THIS ISSUEIN THIS ISSUEIN THIS ISSUECOVER STORIES
CONFERENCES, MEETINGS, EVENTS
Tel: 09092143198, 01-3429082
October 22-October 24, 2018
https://www.clocate.com/conference/4th-Oil-and-Gas-Tanzania-2018/48067/
November 18 - 22 , 2018
Oil &Gas TanzaniaDar es Salaam, Tanzania
MSGBC Basin Summit & ExhibitionDakar, Senegal
November 05-09, 2018Africa Oil Week 2018
Marrakech, Moroccowww.gasoptions-nwafrica.com
36th Annual International Conference and Exhibitions 2018
October 10-October 13, 2018
Venue: Eko Hotel and Suites, Victoria Island, Lagos.
oilandgascouncil.com/event-events/msgbc-basin-summit/
Gas Options North & West Africa
Cape Town, South [email protected]+44 (0) 207 384 8384
November 13-15, 2018
Cape Town International Convention Centre
Regional Energy Cooperation Summit: West
South Africa
www.futureenergyafrica.com
September 12-14, 2018
aricaoilandpower.com
at Eko Hotels & Suites, Victoria Island, Lagos, Nigeria.
September 26-28, 2018
Future Energy Africa Exhibition and Conference
Accra, Ghanawww.recs-west.com
Africa Oil & Power 2018
Oct 01-03, 2018
August 6-8, 2018
+971 4 248 3221
Cape town international convention centre, south africa
(SPE) Nigeria Annual International Conference and Exhibition (NAICE)
December 10-12, 2018 International Gas Cooperation SummitCape Town, South Africawww.igcs-sa.com
January 23-24, 2019
Eko Convention Centre, Lagos
07069117347
The West African International Petroleum
Exhibition and Conference (WAIPEC)
Feb 11-13, 2019
Egypt Petroleum Show 2019 (EGYPS)
North Africa Petroleum Exhibition and
Conference
March 10-13, 2019
www.egyps.com/cfp
Le Meridien Oran Hotel & Convention Center,
Oran, Algeria
+971 2 6970 508
http://www.napec-dz.com/
Cairo, Egypt
+213 (0) 770 70 94 85
+213 (0) 550 46 88 98
COVER PHOTO: ABC Orjiako, Chairman and co-founder of SEPLAT
Pages: 34-36Pages: 34-36Pages: 34-36
FROM THE EDITOR
KICKSTARTER
IN THE NEWS
PETROLEUM PEOPLE
OIL PATCH SAHARA
OIL PATCH SUBSAHARA
FARM IN FARM OUT
GAS MONETISATION
THE AFRICAN INDEPENDENT
MARITIME ISSUES
COMPANY UPDATE
23
25
30
34
38
41
03
05
07
17
20
CO
NT
EN
TS
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 86
IN
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WS
AFRICA OIL + GAS REPORT J U LY 2 0 1 8 7
“Operational activity are continuing as planned”, the partners say.
OTAL, CNOOC and Tullow Oil continue Tto work towards reaching Final Investment Decision (FID) for the Albert
Basin development project in Uganda, around the end of 2018, according to the three companies.
The upstream Environmental and Social Impact Assessment (ESIA) was completed around May 2018 and has been submitted to the National Environmental Management Authority for review.
The milestones for the several conditions precedent before FID have shifted much farther towards year end 2018 than originally scheduled, such that none of the partners could refer to first or second quarter 2018 anymore-as they did as recently as late 2017,-for FID.
This is farther down the road than earlier announced and it makes first oil far less likely before 2022.
The upstream FEED was completed around
May 2018 and initial technical and commercial reviews of this work have begun, which will ultimately result in the award of the Engineering, Procurement and Construction contracts.
Discussions on the pipeline project continue between the Joint Venture Partners and both the Ugandan and Tanzanian Governments regarding the key commercia l and transportation agreements, Tullow Oil reports.
Tullow forecasts full year gross production from the Jubilee field to average around 78,100BOPD, up from 75,800BOPD gross previously guided.
The shut down of FPSO Kwame Nkrumah for two periods of maintenance was primarily responsible for the output decline, but the production was lower than the operator's expectations of at least 75,800BOPD.What has happened was that, apart from repairs on the FPSO, there has also been maintenance work on the gas compression system.
In the first half of the year, two new Jubilee production wells were drilled as part of the current drilling campaign. These wells will be completed and brought on stream during the third and fourth quarter of 2018 and a previously drilled Jubilee water injection well will also be tied-in.
ross production from the Jubilee field Go f f s h o r e G h a n a a v e r a g e d 67,500BOPD in the just concluded
first half of 2018. This is far lower than 89,700BOPD it averaged throughout 2017.
While this maintenance work briefly affected
production, it has resulted in increased gas compression capacity and as new wells are brought on stream this will positively impact oil production capacity. “The Jubilee FPSO has been regularly producing at around 100,000BOPD gross from existing wells since these works were carried out”, Tullow says in an operational update.
The repair work on Kwame Nkrumah was a turret remediation work to stabilise the turret bearing. “The maintenance work has successfully prepared the FPSO for long-term operations as a permanently spread moored vessel”, Tullow explains. A final planned shutdown is expected around the end of 2018 to rotate the FPSO to its permanent heading and install the final spread mooring anchoring system with minimal impact to production.
NCTL was heavily under repairs as of the time of going to press
Jubilee's Production Dips For Now, But…
FID Shifts Farther Down For Uganda's Albert Basin Oil Development Award of the Engineering, Procurement and Construction contracts moves towards 2019.
Nigerian companies pumping crude oil into the Nembe Creek Trunk Line (NCTL) have advanced so much in progressing alternative routes that several sources are “so sure” that there
will be hardly a drop of crude pumped into that line by June 2020.
The facility starts from the Nembe Creek field in Oil Mining Lease (OML) 29, and ends at a manifold at the Cawthorne Channel field on OML 18. From here, crude is evacuated the short distance to the Bonny oil terminal.
Shell doesn't pump its own crude into NCTL, but sends the liquid into the short line between Cawthorne Channel and the Bonny Terminal.
Up to 600,000 BOPD of liquids can be evacuated from the end point at Cawthorne Channel.
“The famous Bonny Terminal looks like is about to lose its relevance after several decades”, sources tell Africa Oil+Gas Report. NCTL was heavily under repairs as of the time of going to press in early July 2018, having been shut in since June 7, 2018.
AITEO, Eroton and Newcross, three Nigerian independents which evacuate their crude through the NCTL, lose as much as 40% of the crude routinely to oil theft, sources tell Africa Oil+Gas Report. They have each been working assiduously on alternatives, with Eroton reportedly being ahead of others, to install alternative pipelines that
evacuate their crude to FPSOs on the Atlantic.
The 97kilometre pipeline, with capacity to pump 150,000Barrels Per Day, is a favourite of oil thieves, who routinely hack into the line,
creating as many a s 2 4 i l l e g a l bunkering points t h a t r e q u i r e constant plugging.
In 24 Months, Nembe Creek Trunk Line Will Be Running Empty
www.africaoilgasreport.com
Vol 19, No 6, July 2018
report
State Capture NigeriaThere are over 15 Oil Prospecting Licenced acreages, mostly onshore Niger Delta, some in shallow water. But holders of these assets are not in a hurry to do deals. The fact that they escape even paying signature bonus after being awarded these assets, says a lot about the state capture in the Nigerian Petroleum system. Go to page 5
IN THIS ISSUEIN THIS ISSUEIN THIS ISSUECOVER STORIES
CONFERENCES, MEETINGS, EVENTS
Tel: 09092143198, 01-3429082
October 22-October 24, 2018
https://www.clocate.com/conference/4th-Oil-and-Gas-Tanzania-2018/48067/
November 18 - 22 , 2018
Oil &Gas TanzaniaDar es Salaam, Tanzania
MSGBC Basin Summit & ExhibitionDakar, Senegal
November 05-09, 2018Africa Oil Week 2018
Marrakech, Moroccowww.gasoptions-nwafrica.com
36th Annual International Conference and Exhibitions 2018
October 10-October 13, 2018
Venue: Eko Hotel and Suites, Victoria Island, Lagos.
oilandgascouncil.com/event-events/msgbc-basin-summit/
Gas Options North & West Africa
Cape Town, South [email protected]+44 (0) 207 384 8384
November 13-15, 2018
Cape Town International Convention Centre
Regional Energy Cooperation Summit: West
South Africa
www.futureenergyafrica.com
September 12-14, 2018
aricaoilandpower.com
at Eko Hotels & Suites, Victoria Island, Lagos, Nigeria.
September 26-28, 2018
Future Energy Africa Exhibition and Conference
Accra, Ghanawww.recs-west.com
Africa Oil & Power 2018
Oct 01-03, 2018
August 6-8, 2018
+971 4 248 3221
Cape town international convention centre, south africa
(SPE) Nigeria Annual International Conference and Exhibition (NAICE)
December 10-12, 2018 International Gas Cooperation SummitCape Town, South Africawww.igcs-sa.com
January 23-24, 2019
Eko Convention Centre, Lagos
07069117347
The West African International Petroleum
Exhibition and Conference (WAIPEC)
Feb 11-13, 2019
Egypt Petroleum Show 2019 (EGYPS)
North Africa Petroleum Exhibition and
Conference
March 10-13, 2019
www.egyps.com/cfp
Le Meridien Oran Hotel & Convention Center,
Oran, Algeria
+971 2 6970 508
http://www.napec-dz.com/
Cairo, Egypt
+213 (0) 770 70 94 85
+213 (0) 550 46 88 98
COVER PHOTO: ABC Orjiako, Chairman and co-founder of SEPLAT
Pages: 34-36Pages: 34-36Pages: 34-36
FROM THE EDITOR
KICKSTARTER
IN THE NEWS
PETROLEUM PEOPLE
OIL PATCH SAHARA
OIL PATCH SUBSAHARA
FARM IN FARM OUT
GAS MONETISATION
THE AFRICAN INDEPENDENT
MARITIME ISSUES
COMPANY UPDATE
23
25
30
34
38
41
03
05
07
17
20
CO
NT
EN
TS
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 86
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 88
IN
T
HE
NE
WS
Anadarko's release of a shift in the timelines for the project calendar came at about the same time that Tullow Oil announced in an update that the Ugandan Albert Basin oilfield development project was less likely to get Final Investment Decision before the end of 2018.
nadarko has formally admitted it cannot Atake the final investment decision on the Mozambican Liquefied Natural Gas LNG
project anytime in 2018.
Indeed, the Nigerian government only last June gave the nod to International Tenders for the
Shell operated Bonga South West in the country's deepwater, signalling Final Investment Decision was now more likely in early 2019. This is, in anyway, a more optimistic turn of events for the project than was anticipated just a few months earlier.
The 12Million Tonnes Per Annum LNG project was to have its first phase of 6MMTPA sanctioned in the year, but after several months of upbeat messages about converting MoUs to binding agreements for offtake, the American independent has admitted that it was unlikely to get enough buyers of the molecules to encourage it to bring the project to a financial close.
These announcements simply mean that contract awards, which usually happen as FIDs are announced, will slip.
The $20Billion Ugandan Albert Basin project, (200,0000BOPD at peak), was expected to be the most certain of the big ticket projects take FID in 2018. It was billed to take FID in late 2017 and then that shifted to early 2018, but as of July of the same year, there were still has a number of conditions precedent to reach the financing close. The upstream Environmental and Social Impact Assessment (ESIA), submitted to the National Environmental Management Authority, still has to be approved. And discussions on the pipeline project were still continuing, as of late July 2018, between the Joint Venture Partners and both the Ugandan and Tanzanian Governments, r e g a r d i n g t h e ke y c o m m e r c i a l a n d transportation agreements. The sanction for this project may happen in 2018, but we now know
that commissioning date will slip beyond 2021. This project has been on the drawing board for nine years.
Two smaller but no less significant projects that are unlikely to meet the earlier promise of FID in 2018 are Seplat Petroleum's Assa North-Ohaji South (ANOH) gas project onshore Nigeria and Ophir Energy operated Fortuna FLNG offshore Equatorial Guinea. ANOH's sanction depends on certain conditions, including the incorporation and operationalisaton of a midstream gas company and the completion of the 67km OB3, a crucial gas transmission line. In Fortuna's case, Ophir Energy just hasn't been able to raise the money to construct the facility, a situation complicated by the fact that its licence on the Block R, which hosts the gas, expires at the end of 2018.
It is now also certain that an FID in 2018 cannot work for the SNE field, offshore Senegal, located in 1,100metre Water Depth in the Rufisque, Sangomar and Sangomar Deep Blocks.
AITEO had, in the June 6 2018 statement declared; “any attempt by the embattled Admiral Suleiman to suggest AITEO's involvement in the activities of those who undertook the protest or indeed any other related activity is a distraction designed to fail. It does not, in any way, detract from the weight of allegations with which Admiral Suleiman has been publicly confronted”.
· “Third party interference with the line has often resulted in oil leaks which ultimately culminate in shutting down the NCTL to undertake emergency repairs. This in itself has resulted in the NCTL being shut down for about 145 days and an approximate deferment of 50.386 million barrels of Crude Oil (Net) for the 6 injectors into the NCTL since Aiteo took over the operatorship of the Trunk line in September 2015”.
ITEO's response to allegations that it Ahad masterminded protests by oil community groups against the Joint
Task Force in the Niger Delta, is one of the rare instances in which a high profile E&P company has called out the Nigerian security forces for likely complicity in the scourge.
Insinuations about complicity of security forces in the theft of crude oil in the region has always been made, in media reports, in the work of
researchers, and in declamations of civil society organisations. But as the work of journalism around this issue has hardly resulted in smoking gun evidence, and the other agencies are very much external actors, the default mode had been to dismiss their recurring finger pointing. On the contrary, AITEO is a significant participant in Nigeria's crude oil production, with nameplate output capacity (90,000BOPD), which is over 4% of the country's total export, so its statement about the security forces is hard to ignore. · Due to the continued vandalism of the
NCTL and resulting oil theft, AITEO has written to the Federal Government, through the Chief of Army Staff, General TY Buratai on two occasions (April 17 and 23, 2018), requesting the involvement of the Armed Forces in reinforcing existing security arrangements to the pipeline as the incessant security breaches were resulting in losses amounting to billions of Naira for the country.
And then it follows up: “How it is that vessel movement of the oil thieves occurs unnoticed in the region despite heightened activity in large scale illegal bunkering?”
In a 1,000 word statement, defending itself against charges by the JTF commander, Rear Admiral Apochi Suleiman, the Nigerian indigenous operator pointedly asks whether it was “correct that the security forces are now offering protection/escort services to those allegedly responsible for oil thefts?”
When Africa Oil+Gas Report reached the JTF for comments on AITEO's statement, we were referred to the Defence Headquarters, which did not even respond to our inquiry.The JTF is comprised of personnel from the Nigerian Navy, Army, Police, Nigeria Security and Civil Defence Corps and Custom Service. The JTF commander had accused AITEO of masterminding the protests against the task force in an interview with ThisDay, an influential local daily. A group named Niger Delta Oil Monitoring Group also, in a statement, accused AITEO of sponsoring the June 1 Abuja protest “to frustrate Rear Admiral Suleiman from consolidating on his successful curbing of oil theft in the Niger Delta”.
“We are one of the biggest victims of oil theft in the country”, the company laments.
AITEO operates the Nembe Creek Trunk Line NCTL, a crude export pipeline with capacity to pump 200,000Barrels of Oil Per Day throughout its 97km length; clearly one of the four largest crude oil to export pipelines in Nigeria. The company's statement revisits the key challenges faced by operators in the Niger Delta and reiterates the facts of huge losses of revenue that otherwise would have accrued to the Nigerian Government, which is struggling with a large debt burden and borrowing more billions of dollars to finance its budget.
· In December 2016 alone, the company explains, 45.46% of AITEO's total net crude injected into the NCTL was lost on the basis of crude oil theft “resulting in significant pressure reductions on the trunk line, theft points identification as well as illegal refineries, and corroborated by several Joint Investigative visits constituted by various regulatory bodies and the applicable host community”.
But the sting in the tail is the drawing out of the head of the security forces tasked with ensuring the safety of lives and property in the Niger-Delta.
Contract Awards Slip For Africa's Major O&G ProjectsBy McJohn Otutu
Nigerian Operator Highlights Possible Involvement of Security Forces in Crude Oil TheftIndigenous producer emphasises the “weight of allegations with which Admiral Suleiman has been publicly confronted”.
AFRICA OIL + GAS REPORT J U N E 2 0 1 8 9
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co
mm
en
ce
d:
20
13
. Ave
rage for
Ma
y
Rese
rvoir c
halle
nges
led t
o
field
shut
in.
20
18
was
NIL
.
Impact
ed o
utp
ut
for
the m
onth
.Seve
ral days
of
TransF
orc
ados
shut
in
Eg
be
om
a F
ield
PLA
TFO
RM
PE
TR
OLE
UM
/N
EW
CR
OS
S
Pro
duct
ion c
om
mence
d:
2007
Ju
ne
20
18
Ave
rage P
roduct
ion:
2,8
00BO
PD
.
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 88
IN
T
HE
NE
WS
Anadarko's release of a shift in the timelines for the project calendar came at about the same time that Tullow Oil announced in an update that the Ugandan Albert Basin oilfield development project was less likely to get Final Investment Decision before the end of 2018.
nadarko has formally admitted it cannot Atake the final investment decision on the Mozambican Liquefied Natural Gas LNG
project anytime in 2018.
Indeed, the Nigerian government only last June gave the nod to International Tenders for the
Shell operated Bonga South West in the country's deepwater, signalling Final Investment Decision was now more likely in early 2019. This is, in anyway, a more optimistic turn of events for the project than was anticipated just a few months earlier.
The 12Million Tonnes Per Annum LNG project was to have its first phase of 6MMTPA sanctioned in the year, but after several months of upbeat messages about converting MoUs to binding agreements for offtake, the American independent has admitted that it was unlikely to get enough buyers of the molecules to encourage it to bring the project to a financial close.
These announcements simply mean that contract awards, which usually happen as FIDs are announced, will slip.
The $20Billion Ugandan Albert Basin project, (200,0000BOPD at peak), was expected to be the most certain of the big ticket projects take FID in 2018. It was billed to take FID in late 2017 and then that shifted to early 2018, but as of July of the same year, there were still has a number of conditions precedent to reach the financing close. The upstream Environmental and Social Impact Assessment (ESIA), submitted to the National Environmental Management Authority, still has to be approved. And discussions on the pipeline project were still continuing, as of late July 2018, between the Joint Venture Partners and both the Ugandan and Tanzanian Governments, r e g a r d i n g t h e ke y c o m m e r c i a l a n d transportation agreements. The sanction for this project may happen in 2018, but we now know
that commissioning date will slip beyond 2021. This project has been on the drawing board for nine years.
Two smaller but no less significant projects that are unlikely to meet the earlier promise of FID in 2018 are Seplat Petroleum's Assa North-Ohaji South (ANOH) gas project onshore Nigeria and Ophir Energy operated Fortuna FLNG offshore Equatorial Guinea. ANOH's sanction depends on certain conditions, including the incorporation and operationalisaton of a midstream gas company and the completion of the 67km OB3, a crucial gas transmission line. In Fortuna's case, Ophir Energy just hasn't been able to raise the money to construct the facility, a situation complicated by the fact that its licence on the Block R, which hosts the gas, expires at the end of 2018.
It is now also certain that an FID in 2018 cannot work for the SNE field, offshore Senegal, located in 1,100metre Water Depth in the Rufisque, Sangomar and Sangomar Deep Blocks.
AITEO had, in the June 6 2018 statement declared; “any attempt by the embattled Admiral Suleiman to suggest AITEO's involvement in the activities of those who undertook the protest or indeed any other related activity is a distraction designed to fail. It does not, in any way, detract from the weight of allegations with which Admiral Suleiman has been publicly confronted”.
· “Third party interference with the line has often resulted in oil leaks which ultimately culminate in shutting down the NCTL to undertake emergency repairs. This in itself has resulted in the NCTL being shut down for about 145 days and an approximate deferment of 50.386 million barrels of Crude Oil (Net) for the 6 injectors into the NCTL since Aiteo took over the operatorship of the Trunk line in September 2015”.
ITEO's response to allegations that it Ahad masterminded protests by oil community groups against the Joint
Task Force in the Niger Delta, is one of the rare instances in which a high profile E&P company has called out the Nigerian security forces for likely complicity in the scourge.
Insinuations about complicity of security forces in the theft of crude oil in the region has always been made, in media reports, in the work of
researchers, and in declamations of civil society organisations. But as the work of journalism around this issue has hardly resulted in smoking gun evidence, and the other agencies are very much external actors, the default mode had been to dismiss their recurring finger pointing. On the contrary, AITEO is a significant participant in Nigeria's crude oil production, with nameplate output capacity (90,000BOPD), which is over 4% of the country's total export, so its statement about the security forces is hard to ignore. · Due to the continued vandalism of the
NCTL and resulting oil theft, AITEO has written to the Federal Government, through the Chief of Army Staff, General TY Buratai on two occasions (April 17 and 23, 2018), requesting the involvement of the Armed Forces in reinforcing existing security arrangements to the pipeline as the incessant security breaches were resulting in losses amounting to billions of Naira for the country.
And then it follows up: “How it is that vessel movement of the oil thieves occurs unnoticed in the region despite heightened activity in large scale illegal bunkering?”
In a 1,000 word statement, defending itself against charges by the JTF commander, Rear Admiral Apochi Suleiman, the Nigerian indigenous operator pointedly asks whether it was “correct that the security forces are now offering protection/escort services to those allegedly responsible for oil thefts?”
When Africa Oil+Gas Report reached the JTF for comments on AITEO's statement, we were referred to the Defence Headquarters, which did not even respond to our inquiry.The JTF is comprised of personnel from the Nigerian Navy, Army, Police, Nigeria Security and Civil Defence Corps and Custom Service. The JTF commander had accused AITEO of masterminding the protests against the task force in an interview with ThisDay, an influential local daily. A group named Niger Delta Oil Monitoring Group also, in a statement, accused AITEO of sponsoring the June 1 Abuja protest “to frustrate Rear Admiral Suleiman from consolidating on his successful curbing of oil theft in the Niger Delta”.
“We are one of the biggest victims of oil theft in the country”, the company laments.
AITEO operates the Nembe Creek Trunk Line NCTL, a crude export pipeline with capacity to pump 200,000Barrels of Oil Per Day throughout its 97km length; clearly one of the four largest crude oil to export pipelines in Nigeria. The company's statement revisits the key challenges faced by operators in the Niger Delta and reiterates the facts of huge losses of revenue that otherwise would have accrued to the Nigerian Government, which is struggling with a large debt burden and borrowing more billions of dollars to finance its budget.
· In December 2016 alone, the company explains, 45.46% of AITEO's total net crude injected into the NCTL was lost on the basis of crude oil theft “resulting in significant pressure reductions on the trunk line, theft points identification as well as illegal refineries, and corroborated by several Joint Investigative visits constituted by various regulatory bodies and the applicable host community”.
But the sting in the tail is the drawing out of the head of the security forces tasked with ensuring the safety of lives and property in the Niger-Delta.
Contract Awards Slip For Africa's Major O&G ProjectsBy McJohn Otutu
Nigerian Operator Highlights Possible Involvement of Security Forces in Crude Oil TheftIndigenous producer emphasises the “weight of allegations with which Admiral Suleiman has been publicly confronted”.
AFRICA OIL + GAS REPORT J U N E 2 0 1 8 9
NIG
ER
IA’S
MA
RG
INA
L F
IELD
S:
AC
TIV
ITY
JUN
E 2
01
8 U
PD
ATE
Vol 1
9, N
o 6,
July
201
8
repo
rtw
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.afric
aoilg
asre
port.
com
�Co
pyrig
ht 2
01�
AFRI
CA O
IL+G
AS R
EPO
RT
Tr
ans
Nig
er
Pip
elin
e w
as
dow
n for
7 d
ays
in t
he m
onth
.
WA
LT
ER
SM
ITH
PE
TR
OM
AN
Ibig
we
Fie
ld
Ju
ne
20
18
Pro
du
cti
on
: 5,1
78BO
PD
.Pro
duct
ion:
com
mence
d:
2008
Six
days
of
TransF
orc
ados
shut-
in
Pa
rtn
er:
Oa
nd
oE
be
nd
o F
ield
affect
ed o
ptim
um
outp
ut.
Ju
ne
20
18
outp
ut:
3,8
00BO
PD
.P
rod
ucti
on
co
mm
en
ce
d:
20
09
EN
ER
GIA
PE
TR
OLE
UM O
tak
ikp
o F
ield
Ju
ne
20
18
ou
tpu
t: 6
,00
0B
OP
D.
GR
EE
N E
NE
RG
Y
Pro
du
cti
on
co
mm
en
ce
d:
Fe
bru
ary
20
17
.
Sin
opec
Changjiang E
ngin
eering h
as
start
ed a
cquis
itio
n o
f 197sq
km
thre
e d
imensi
onal (3
D)
seis
mic
data
to u
pdate
the e
xist
ing 2
D
cove
rage. D
rilli
ng for
pro
duct
ion incr
ease
will
be b
ase
d o
n t
he d
ata
in
terp
reta
tion.
Te
ch
nic
al/
Fin
an
cin
g P
art
ne
r: L
EK
OIL
To
m S
ho
t B
an
k (
TS
B)F
ield
Te
ch
nic
al/
Fin
an
cin
g P
art
ne
r: N
on
e
Marc
h, 2015. It
has
now
been furt
her
ext
ended for
a p
eriod
of
24 m
onth
s w
ith e
ffect
fro
m 1
st, M
ay
2016, w
hic
h h
as
exp
ired.
AS
SO
CIA
TE
D O
IL &
GA
S/D
AN
SA
KI
Both
part
ners
, Ass
oci
ate
d O
il &
Gas
and D
ansa
ki L
imited,
have
reje
cted M
idw
ay
Reso
urc
es
as
their t
ech
nic
al and
financi
ng p
art
ner, a
s it h
as
not,
in t
heir v
iew
, im
ple
mente
d
any
of
the p
rom
ises.
The T
SB F
ield
was
issu
ed u
nder
the 1
st
Marg
inal Fie
ld R
ound in 2
003 a
nd late
r ext
ended u
ntil 14th
SA
HA
RA
EN
ER
GY
FIE
LD
S
The M
inis
try
of
Petr
ole
um
Reso
urc
es
is c
onsi
dering r
evo
cation o
f th
e lic
ence
, w
hic
h w
as
aw
ard
ed 1
5 y
ears
ago, fo
r la
ck o
f any
work
pro
gra
mm
e. “T
hey
(Sahara
) sa
y th
ey
want
to t
ie
deve
lopm
ent
to O
PL
274”, M
inis
try
sourc
es
say.
“But
tim
e h
as
run o
ut”
.
Tse
ke
lew
u F
ield
MIL
LE
NIU
M O
IL &
GA
SO
za
Fie
ld
Pro
du
cti
on
co
mm
en
ce
d:
Octo
be
rP
art
ne
rs:
Ha
rdy O
il &
Em
era
ld
20
17
. Ju
ne
20
18
Pro
du
cti
on
: N
IL
IND
EP
EN
DE
NT
EN
ER
GY
Ofa
Fie
ldPro
duct
ion u
nlik
ely
to
happen o
n t
his
fie
ld.
Why?
In 2
009, Afr
en r
e-
ente
red O
fa-1
and c
onduct
ed
a D
rill
Ste
m T
est
whic
h faile
d
to e
stablis
h c
om
merc
ial flow
. In
2012, Xenerg
i, a
loca
l early
pro
duct
ion faci
lity
pro
vider, h
ad t
he s
am
e
exp
erience
.
ALL G
RA
CE
EN
ER
GY
Ub
ima
Fie
ldT
ech
nic
al
an
d F
ina
ncin
g P
art
ne
r: E
lan
d O
il &
Ga
s
The D
euta
g T
57 r
ig h
as
reach
ed t
he U
bim
a f
ield
loca
tion. It
is
maki
ng r
e-e
ntr
ies.
Pro
du
cti
on
: N
ot
Ye
t
Um
use
ti/Ig
bu
ku
Fie
ld
Ju
ne
20
18
Pro
du
cti
on
: 2,2
00BO
PD
Pro
duct
ion:
com
mence
d:
2008
PIL
LA
R O
IL
June 2
018 a
vera
ge o
utp
ut:
NIL
. Tr
ans
Ram
os
Pip
elin
e s
hut
in s
ince
April 2018. W
ell
inte
rvention t
o r
educe
hig
h w
ate
r pro
duct
ion n
ot
goin
g s
mooth
ly. H
ad iss
ues
with s
lick
line a
nd w
as
mobili
sing a
Coile
d t
ubin
g e
quip
ment.
Good n
ew
s: E
xcel host
ed D
PR
off
icia
ls t
o a
Fact
ory
Acc
epta
nce
Test
of
its
LACT U
nit in H
oust
on. The c
om
pany
needs
EX
CE
L E
&P
money
and is
up for
Farm
-in c
onve
rsation w
ith a
well-
heele
d o
pera
tor.
Ero
mo
r Fie
ldP
rod
ucti
on
Co
mm
en
ce
d:
No
ve
mb
er
20
16
Te
ch
nic
al
an
d F
ina
ncin
g P
art
ne
r: S
iriu
s P
etr
ole
um
-
GU
AR
AN
TE
E P
ET
RO
LE
UM
/O
WE
NA
Oro
ro F
ield
No n
ew
update
about
on t
he s
pud o
f O
roro
-2, tw
o m
onth
s aft
er
Siriu
s Petr
ole
um
's
June 7
, 2018 r
eport
about
dela
ys c
ause
d b
y su
dden r
ealis
ation t
hat
the R
ig
contr
act
or
needed t
o r
ece
rtify
its
equip
ment.
That
the C
OSL
Fo
rce
jack
-up r
ig
com
mence
d s
o c
alle
d“
critic
al equip
ment
re-c
ert
ific
ation”
just
when it
was
suppose
d
to b
e m
obili
sing t
o N
igeria, is
curious.
That
Siriu
s ca
n't r
eadily
publis
h u
pdate
s about
its
opera
tional act
ivity
is e
ven m
ore
intr
iguin
g.
Pro
du
cti
on
Co
mm
en
ce
d:
Ma
rch
20
18
Te
ch
nic
al
an
d F
un
din
g P
art
ne
r: C
en
tury
En
erg
yA
tala
Fie
ld
Du
e t
o d
eb
t b
y o
pe
rato
r, t
o t
he
ve
nd
ors
of
Pro
du
cti
on
Fa
cil
ity.
BA
YE
LS
A O
IL C
OM
PA
NY
LIM
ITE
D
Bu
t th
e f
ield
ha
s b
ee
n s
hu
t in
sin
ce
ea
rly J
un
e 2
01
8.
MO
BIL
CH
EV
RO
N
S
HE
LL
AG
IP
T
OTA
L
AD
DA
X
NP
DC
SE
PLA
T
PA
N O
CE
AN
NIG
ER
DE
LT
A P
ET
RO
LE
UM
O
gb
ele
Fie
ldP
rod
ucti
on
Co
mm
en
ce
d:
Au
gu
st
20
05
TN
P w
as s
hu
t in
fo
r 7
da
ys.
Ju
ne
20
18
Ave
rag
e O
utp
ut:
5,5
00
BO
PD
.
PR
IME
E
NE
RG
Y/S
UFFO
LK
A
sa
ram
ato
ru F
ield
. P
rod
ucti
on
co
mm
en
ce
d:
20
13
. Ave
rage for
Ma
y
Rese
rvoir c
halle
nges
led t
o
field
shut
in.
20
18
was
NIL
.
Impact
ed o
utp
ut
for
the m
onth
.Seve
ral days
of
TransF
orc
ados
shut
in
Eg
be
om
a F
ield
PLA
TFO
RM
PE
TR
OLE
UM
/N
EW
CR
OS
S
Pro
duct
ion c
om
mence
d:
2007
Ju
ne
20
18
Ave
rage P
roduct
ion:
2,8
00BO
PD
.
AFRICA OIL + GAS REPORT J U LY 2 0 1 8 11
Vo
l 19,
No
6, J
uly
201
8
repo
rtw
ww
.afric
aoilg
asre
port.
com
©Co
pyrig
ht 2
018,
AFRI
CA O
IL+G
AS R
EPO
RT
JULY
20
18
UP
DA
TE
Tullo
w h
as c
on
trac
ted
a s
eco
nd
rig
, th
e St
ena
Fo
rth
, a s
ixth
-gen
erat
ion
dri
llsh
ip, t
o w
ork
on
its
dri
llin
g p
rogr
amm
e o
n t
he
Jub
ilee
fiel
d a
nd
th
e TE
N C
lust
er. T
he
rig
is c
on
trac
ted
fo
r an
init
ial t
hre
e-w
ell
cam
pai
gn w
ith
fle
xib
le e
xten
sio
n o
pti
on
s an
d is
du
e to
sta
rt d
rilli
ng
in O
cto
ber
20
18
.
Seco
nd
Rig
Co
ntr
acte
d f
or
Dri
llin
g C
amp
aign
Gro
ss g
as s
ales
of
25
.2M
illio
n s
tan
dar
d c
ub
ic
feet
of
gas,
eq
uiv
alen
t to
4,2
00
BO
EPD
(n
et:
2,0
00
BO
EPD
) h
ave
bee
n f
ore
cast
fo
r th
e ye
ar.
Tullo
w s
ign
ed t
he
TEN
Ass
oci
ated
Gas
(TA
G)
Gas
Sal
es A
gree
men
t w
ith
th
e G
han
a N
atio
nal
Pe
tro
leu
m C
orp
ora
tio
n in
th
e la
st q
uar
ter
of
20
17
.
Tullo
w a
nti
cip
ates
th
e st
art
of
gas
sale
s fr
om
TE
N b
efo
re t
he
end
of
firs
t h
alf
of
20
18
.
Tullo
w E
xpe
cts
25
MM
scf/
d o
f N
atu
ral G
as
Fro
m T
EN F
ield
s In
20
18
Ap
pro
xim
atel
y 7
0%
of
the
asso
ciat
ed g
as
pro
du
ced
fro
m J
ub
ilee
was
exp
ort
ed t
o
the
Atu
abo
Gas
Pro
cess
ing
Pla
nt
(AG
PP
) in
20
17
, acc
ord
ing
to f
igu
res
pro
vid
ed b
y th
e P
ub
lic In
tere
st A
cco
un
tab
ility
C
om
mit
tee.
Th
is r
epre
sen
ted
an
im
pro
vem
ent
of
the
uti
lisat
ion
of
Jub
ilee
gas
for
pro
cess
ing
ove
r th
e 5
6%
exp
ort
ed
to t
he
AG
PP
in 2
01
6. T
he
pro
po
rtio
n o
f as
soci
ated
gas
fro
m J
ub
ilee
that
was
re-
inje
cted
to
mai
nta
in r
eser
voir
pre
ssu
re
and
fla
red
was
ab
ou
t 1
3%
an
d 1
1%
re
spec
tive
ly.
Jub
ilee
Fie
ld F
lare
s 1
1%
of
Pro
du
ced
Gas
Gas
Sta
rts
Flo
win
g at
OC
TPP
rod
uct
ion
of n
atu
ral g
as s
tart
ed, i
n e
arly
Ju
ly 2
01
8,
fro
m t
wo
of t
he
fou
r d
eep
-wat
er s
ub
sea
wel
ls in
th
e Sa
nko
fa fi
eld
, co
nn
ecte
d t
o t
he
Flo
atin
g P
rod
uct
ion
, St
ora
ge a
nd
Off
load
ing
(FP
SO) v
esse
l Jo
hn
Ag
yeku
m
Ku
fuo
r”.
Aft
er t
he
fin
al s
tep
s o
f co
mm
issi
on
ing
of
the
off
sho
re fa
cilit
ies,
pro
du
ctio
n w
ill g
rad
ual
ly fl
ow
vi
a a
ded
icat
ed
60
km
pip
elin
e to
th
e O
nsh
ore
R
ecei
vin
g Fa
cilit
y (O
RF)
in
San
zule
, w
her
e ga
s w
ill
then
be
com
pre
ssed
an
d d
istr
ibu
ted
to
Gh
ana'
s n
atio
nal
gri
d. A
fu
ller
sto
ry in
th
e G
as
Mo
net
isa
tio
n
sect
ion
.
Gro
up
Fi
ve,
the
Sou
th
Afr
ican
co
nst
ruct
ion
co
mp
any,
rep
ort
s co
nti
nu
ed d
iffi
cult
ies
at t
he
23
0M
W K
po
ne
Pow
er P
lan
t p
roje
ct i
n T
ema,
ea
st o
f G
han
a's
cap
ital
cit
y o
f A
ccra
. In
crea
sed
lo
ss
asso
ciat
ed
wit
h
com
ple
tin
g th
e p
roje
ct
incl
ud
es a
dd
itio
nal
res
ou
rces
allo
cate
d t
o t
he
con
trac
t to
en
sure
exe
cuti
on
, as
wel
l as
the
cost
o
f sp
ecia
lists
, tec
hn
ical
ad
vise
rs a
nd
em
plo
yees
w
ho
will
be
on
sit
e fo
r lo
nge
r du
e to
the
con
trac
t fi
nal
isat
ion
del
ay.
The
incr
ease
als
o i
ncl
ud
es
add
itio
nal
co
sts
to e
nsu
re a
ccel
erat
ion
to
th
e ea
rlie
st p
oss
ible
co
mp
leti
on
dat
e, a
s w
ell
as
un
exp
ecte
d
cost
s,
incu
rred
o
uts
ide
of
the
gro
up
's c
on
tro
l. Th
e fi
nal
co
mp
leti
on
dat
e fo
r th
e K
po
ne
con
trac
t h
as b
een
set
as
Jun
e, 2
01
8.
The
stat
ion
has
bee
n u
nd
er c
on
stru
ctio
n s
ince
2
01
2.
Kp
on
e G
asfi
red
Pla
nt
Pro
ject
Blo
ws
Ho
les
in
Co
ntr
acto
r's
Po
cket
Fir
st B
id R
ou
nd
Exp
ect
ed
bef
ore
Ye
ar e
nd
The
Lice
nsi
ng
Ro
un
ds
Bid
s Ev
alu
atio
n a
nd
Neg
oti
atio
n C
om
mit
tee
is p
rep
arin
g fo
r th
e co
un
try'
s fi
rst
bid
din
g ro
un
d a
t th
e en
d o
f 2
01
8. T
he
focu
s o
f th
is d
ebu
t o
uti
ng
will
be
on
th
e W
este
rn B
asin
, bec
ause
th
ere
exis
ts in
fras
tru
ctu
re t
hat
co
uld
fac
ilita
te t
he
dev
elo
pm
ent
of
any
dis
cove
ry m
ade
in t
he
area
. At
the
mo
men
t th
ere
two
gas
pip
elin
es
to s
ho
re, t
hre
e p
rod
uct
ion
fac
iliti
es (
FPSO
s), a
nd
all
thin
gs b
ein
g eq
ual
, a f
ou
rth
FP
SO w
ill
be
in p
lace
by
20
21
.
Two
Th
ird
s o
f G
han
a’s
Off
sho
re A
rea
Still
Op
en
fo
r In
vest
ors
Gh
ana’
s o
ffsh
ore
bas
ins
(mea
sure
d t
o 3
50
0 m
iso
bat
h)
enco
mp
ass
an a
rea
of
app
roxi
mat
ely
60
,00
0 s
q. k
m. A
bo
ut
23
,09
2 s
q. k
m h
ave
bee
n a
war
ded
to
IOC
s an
d t
he
rest
is o
pen
to
inve
sto
rs.
Now the hub idea is beginning to take shape again.
But by the second quarter of 2012, a year after Hosni Mubarak's ouster, Arabia's most populated country had scrapped the deal to transport gas to Israel. The transaction had always been widely unpopular among the people, but solidly backed by Mr. Mubarak, who was forced to step down in February 2011 after mass protests.
“We have received the Prime Minister's decree for an intergovernmental committee to facilitate all the debottlenecking and to ensure alignment and we are running with our modernization projects, of which a key programme is the gas hub”, says Tarek El Molla, Egypt's petroleum minister.
“So we are talking about a reverse flow bringing gas from Israel to Egypt and this is the famous deal that you have heard about between the private sector and upstreamers in Israel”, Mr. Molla told a lunch hour gathering of the American Chamber of Commerce in Cairo recently. “This is the first option and this is the first route that is available. We are not talking politics now; we are talking economic viability. The Eastern Mediterranean gas pipeline project will connect the Israeli fields with the Cyprus fields through Crete to Greece to Italy. They are currently evaluating the project technically and after they get their technical study completed, they might go economic; so this is under consideration and is still supported by the EU so all options are there for Europe .
“We've signed MoU for strategic partnership for energy with Israel. We have a preliminary cooperation agreement with Cyprus and there is an intergovernmental agreement that is currently under review and it's expected to be signed …..in order to connect the gas fields Aphrodite from Cyprus directly with the pipeline to Egypt. We currently not only have
signed the MoU and the agreements with Jordan but also we are currently supporting each other regarding the LNG supplies between Jordan and Egypt and there is a good system there for strategic reliable supply in case of any emergencies between the two countries. We've signed an MoU between Egypt, Jordan and Iraq in order to get the Iraqi crude through Jordan to Egypt to Greece as well. A tripartite summit was held several times between the three countries over the last few years, there is a good coordination between t h e t wo c o u nt r i e s te c h n i c a l l y a n d commercially”.
Ten years ago, Egypt was supplying 200Million standard cubic feet per day of gas to Israel, an enemy of most Arab states. It also delivered gas to Jordan and was committed to supply to Syria and Lebanon. At that time Egypt thought seriously about constructing a 150MW gasfired electricity plant in Gaza, the Palestinian city hobbled by Israel.
Two LNG projects, with capacity to output Nine Million tonnes Per Annum, were mothballed as a result of steep decline in gas production.
By 2014, Egypt had also ceased exporting gas to Jordan: the Arab Gas pipeline, which was feeding Jordan and Israel from the land of the Pharaohs, had stopped doing so – initially due to sabotage (mostly to its feeder pipeline in Sinai), followed by natural gas shortages in Egypt, which forced it to discontinue gas exports.
But something happened in 2015; t h e I t a l i a n c o m p a ny E N I , discovered a mammoth tank of natural gas two thousand metres below the seabed in the Egyptian p a r t o f t h e E a s t e r n Mediterranean. The company claimed 30Trillion cubic feet of gas were located in the giant Zohr field. Coupled with a string of other discoveries by BP and others, as well as ramp up of production of undeveloped gas reservoirs under a better gas pricing regime (in the perspective of International Oil Companies), Egypt got its bounce back and its officials started talking of ending importation and renewing export plans.
In effect, Egypt stopped being the energy centre of the region, becoming, by itself, a net gas importer.
Officials are now talking about a reverse flow of gas from Israel to Egypt through the same gas pipeline with which it used to pump gas to Israel.
It's a position the country was ensconced in, prior to the Arab spring.
Egypt is angling to return to the heart of things in the Mediterranean-Europe nexus.
We are double headed”, says Tarek El Molla, Egypt's Petroleum Minister. “We are at the same
time regulators, producers and players. We cannot talk about transparency and governance while we double headed or even triple headed.“So we are reorganising and the main objective of the reorganization is to focus on our core business which is oil and gas development and production, distribution. There will be segregation of duties and there is no need for duplication of businesses in different organizations. We will take care of all
those while reorganizing ourselves with a new organization structure that is already on-going, we will take care of all those about the governing law which is EGPC's Law 20 and definitely our liability regarding the existing concession agreements with our partners and the financial ownership structure between the government and EGPC in other to consolidate one financial statement into the state budget. We have already completed the legal due diligence and we are currently undergoing financial due diligence and we expect to announce the new organisation within the coming months”.
Egypt Reclaims The Hub StatusBy Toyin Akinosho, Publisher
Cutting the Many Heads of The Monster
“A key strategy is to have Egypt as a hub for energy transfer; take advantage of the unique position of Egypt between Africa, Asia, and Europe. Now we can connect our network
to Sudan to feed between 200-300MW. I mean who is going to pay for that? It doesn't matter. With our neighbours we have to have very good and excellent relations. “We currently have an interconnection between Egypt and Jordan which is capable of transferring almost 450MW. We have another interconnection with Libya which can handle 200MW and currently with Saudi Arabia we have a project to do interconnection using high voltage DC transmission line to interchange between the two countries up to 3,000MW and even currently MoU is being signed between the chairman of the electricity holding company and some investors from Cyprus for the study of a submarine cable capable to transferr between 2,000-3,000MW. If you have more power in the country to generate more than you really need, one thing is to export and we hope that Egypt will be a good exporter of electricity to other continents.“Egypt will be having a lot of capacity from renewables; much more than what we need and we will supply to neighbouring countries”. H.E. Mohamed Shaker is the Egyptian Minister of Electricity & Renewable Energy
As It Is For Gas, So Is It For PowerBy Mohammed Shaker
IN
T
HE
NE
WS
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 810
AFRICA OIL + GAS REPORT J U LY 2 0 1 8 11
Vo
l 19,
No
6, J
uly
201
8
repo
rtw
ww
.afric
aoilg
asre
port.
com
©Co
pyrig
ht 2
018,
AFRI
CA O
IL+G
AS R
EPO
RT
JULY
20
18
UP
DA
TE
Tullo
w h
as c
on
trac
ted
a s
eco
nd
rig
, th
e St
ena
Fo
rth
, a s
ixth
-gen
erat
ion
dri
llsh
ip, t
o w
ork
on
its
dri
llin
g p
rogr
amm
e o
n t
he
Jub
ilee
fiel
d a
nd
th
e TE
N C
lust
er. T
he
rig
is c
on
trac
ted
fo
r an
init
ial t
hre
e-w
ell
cam
pai
gn w
ith
fle
xib
le e
xten
sio
n o
pti
on
s an
d is
du
e to
sta
rt d
rilli
ng
in O
cto
ber
20
18
.
Seco
nd
Rig
Co
ntr
acte
d f
or
Dri
llin
g C
amp
aign
Gro
ss g
as s
ales
of
25
.2M
illio
n s
tan
dar
d c
ub
ic
feet
of
gas,
eq
uiv
alen
t to
4,2
00
BO
EPD
(n
et:
2,0
00
BO
EPD
) h
ave
bee
n f
ore
cast
fo
r th
e ye
ar.
Tullo
w s
ign
ed t
he
TEN
Ass
oci
ated
Gas
(TA
G)
Gas
Sal
es A
gree
men
t w
ith
th
e G
han
a N
atio
nal
Pe
tro
leu
m C
orp
ora
tio
n in
th
e la
st q
uar
ter
of
20
17
.
Tullo
w a
nti
cip
ates
th
e st
art
of
gas
sale
s fr
om
TE
N b
efo
re t
he
end
of
firs
t h
alf
of
20
18
.
Tullo
w E
xpe
cts
25
MM
scf/
d o
f N
atu
ral G
as
Fro
m T
EN F
ield
s In
20
18
Ap
pro
xim
atel
y 7
0%
of
the
asso
ciat
ed g
as
pro
du
ced
fro
m J
ub
ilee
was
exp
ort
ed t
o
the
Atu
abo
Gas
Pro
cess
ing
Pla
nt
(AG
PP
) in
20
17
, acc
ord
ing
to f
igu
res
pro
vid
ed b
y th
e P
ub
lic In
tere
st A
cco
un
tab
ility
C
om
mit
tee.
Th
is r
epre
sen
ted
an
im
pro
vem
ent
of
the
uti
lisat
ion
of
Jub
ilee
gas
for
pro
cess
ing
ove
r th
e 5
6%
exp
ort
ed
to t
he
AG
PP
in 2
01
6. T
he
pro
po
rtio
n o
f as
soci
ated
gas
fro
m J
ub
ilee
that
was
re-
inje
cted
to
mai
nta
in r
eser
voir
pre
ssu
re
and
fla
red
was
ab
ou
t 1
3%
an
d 1
1%
re
spec
tive
ly.
Jub
ilee
Fie
ld F
lare
s 1
1%
of
Pro
du
ced
Gas
Gas
Sta
rts
Flo
win
g at
OC
TPP
rod
uct
ion
of n
atu
ral g
as s
tart
ed, i
n e
arly
Ju
ly 2
01
8,
fro
m t
wo
of t
he
fou
r d
eep
-wat
er s
ub
sea
wel
ls in
th
e Sa
nko
fa fi
eld
, co
nn
ecte
d t
o t
he
Flo
atin
g P
rod
uct
ion
, St
ora
ge a
nd
Off
load
ing
(FP
SO) v
esse
l Jo
hn
Ag
yeku
m
Ku
fuo
r”.
Aft
er t
he
fin
al s
tep
s o
f co
mm
issi
on
ing
of
the
off
sho
re fa
cilit
ies,
pro
du
ctio
n w
ill g
rad
ual
ly fl
ow
vi
a a
ded
icat
ed
60
km
pip
elin
e to
th
e O
nsh
ore
R
ecei
vin
g Fa
cilit
y (O
RF)
in
San
zule
, w
her
e ga
s w
ill
then
be
com
pre
ssed
an
d d
istr
ibu
ted
to
Gh
ana'
s n
atio
nal
gri
d. A
fu
ller
sto
ry in
th
e G
as
Mo
net
isa
tio
n
sect
ion
.
Gro
up
Fi
ve,
the
Sou
th
Afr
ican
co
nst
ruct
ion
co
mp
any,
rep
ort
s co
nti
nu
ed d
iffi
cult
ies
at t
he
23
0M
W K
po
ne
Pow
er P
lan
t p
roje
ct i
n T
ema,
ea
st o
f G
han
a's
cap
ital
cit
y o
f A
ccra
. In
crea
sed
lo
ss
asso
ciat
ed
wit
h
com
ple
tin
g th
e p
roje
ct
incl
ud
es a
dd
itio
nal
res
ou
rces
allo
cate
d t
o t
he
con
trac
t to
en
sure
exe
cuti
on
, as
wel
l as
the
cost
o
f sp
ecia
lists
, tec
hn
ical
ad
vise
rs a
nd
em
plo
yees
w
ho
will
be
on
sit
e fo
r lo
nge
r du
e to
the
con
trac
t fi
nal
isat
ion
del
ay.
The
incr
ease
als
o i
ncl
ud
es
add
itio
nal
co
sts
to e
nsu
re a
ccel
erat
ion
to
th
e ea
rlie
st p
oss
ible
co
mp
leti
on
dat
e, a
s w
ell
as
un
exp
ecte
d
cost
s,
incu
rred
o
uts
ide
of
the
gro
up
's c
on
tro
l. Th
e fi
nal
co
mp
leti
on
dat
e fo
r th
e K
po
ne
con
trac
t h
as b
een
set
as
Jun
e, 2
01
8.
The
stat
ion
has
bee
n u
nd
er c
on
stru
ctio
n s
ince
2
01
2.
Kp
on
e G
asfi
red
Pla
nt
Pro
ject
Blo
ws
Ho
les
in
Co
ntr
acto
r's
Po
cket
Fir
st B
id R
ou
nd
Exp
ect
ed
bef
ore
Ye
ar e
nd
The
Lice
nsi
ng
Ro
un
ds
Bid
s Ev
alu
atio
n a
nd
Neg
oti
atio
n C
om
mit
tee
is p
rep
arin
g fo
r th
e co
un
try'
s fi
rst
bid
din
g ro
un
d a
t th
e en
d o
f 2
01
8. T
he
focu
s o
f th
is d
ebu
t o
uti
ng
will
be
on
th
e W
este
rn B
asin
, bec
ause
th
ere
exis
ts in
fras
tru
ctu
re t
hat
co
uld
fac
ilita
te t
he
dev
elo
pm
ent
of
any
dis
cove
ry m
ade
in t
he
area
. At
the
mo
men
t th
ere
two
gas
pip
elin
es
to s
ho
re, t
hre
e p
rod
uct
ion
fac
iliti
es (
FPSO
s), a
nd
all
thin
gs b
ein
g eq
ual
, a f
ou
rth
FP
SO w
ill
be
in p
lace
by
20
21
.
Two
Th
ird
s o
f G
han
a’s
Off
sho
re A
rea
Still
Op
en
fo
r In
vest
ors
Gh
ana’
s o
ffsh
ore
bas
ins
(mea
sure
d t
o 3
50
0 m
iso
bat
h)
enco
mp
ass
an a
rea
of
app
roxi
mat
ely
60
,00
0 s
q. k
m. A
bo
ut
23
,09
2 s
q. k
m h
ave
bee
n a
war
ded
to
IOC
s an
d t
he
rest
is o
pen
to
inve
sto
rs.
Now the hub idea is beginning to take shape again.
But by the second quarter of 2012, a year after Hosni Mubarak's ouster, Arabia's most populated country had scrapped the deal to transport gas to Israel. The transaction had always been widely unpopular among the people, but solidly backed by Mr. Mubarak, who was forced to step down in February 2011 after mass protests.
“We have received the Prime Minister's decree for an intergovernmental committee to facilitate all the debottlenecking and to ensure alignment and we are running with our modernization projects, of which a key programme is the gas hub”, says Tarek El Molla, Egypt's petroleum minister.
“So we are talking about a reverse flow bringing gas from Israel to Egypt and this is the famous deal that you have heard about between the private sector and upstreamers in Israel”, Mr. Molla told a lunch hour gathering of the American Chamber of Commerce in Cairo recently. “This is the first option and this is the first route that is available. We are not talking politics now; we are talking economic viability. The Eastern Mediterranean gas pipeline project will connect the Israeli fields with the Cyprus fields through Crete to Greece to Italy. They are currently evaluating the project technically and after they get their technical study completed, they might go economic; so this is under consideration and is still supported by the EU so all options are there for Europe .
“We've signed MoU for strategic partnership for energy with Israel. We have a preliminary cooperation agreement with Cyprus and there is an intergovernmental agreement that is currently under review and it's expected to be signed …..in order to connect the gas fields Aphrodite from Cyprus directly with the pipeline to Egypt. We currently not only have
signed the MoU and the agreements with Jordan but also we are currently supporting each other regarding the LNG supplies between Jordan and Egypt and there is a good system there for strategic reliable supply in case of any emergencies between the two countries. We've signed an MoU between Egypt, Jordan and Iraq in order to get the Iraqi crude through Jordan to Egypt to Greece as well. A tripartite summit was held several times between the three countries over the last few years, there is a good coordination between t h e t wo c o u nt r i e s te c h n i c a l l y a n d commercially”.
Ten years ago, Egypt was supplying 200Million standard cubic feet per day of gas to Israel, an enemy of most Arab states. It also delivered gas to Jordan and was committed to supply to Syria and Lebanon. At that time Egypt thought seriously about constructing a 150MW gasfired electricity plant in Gaza, the Palestinian city hobbled by Israel.
Two LNG projects, with capacity to output Nine Million tonnes Per Annum, were mothballed as a result of steep decline in gas production.
By 2014, Egypt had also ceased exporting gas to Jordan: the Arab Gas pipeline, which was feeding Jordan and Israel from the land of the Pharaohs, had stopped doing so – initially due to sabotage (mostly to its feeder pipeline in Sinai), followed by natural gas shortages in Egypt, which forced it to discontinue gas exports.
But something happened in 2015; t h e I t a l i a n c o m p a ny E N I , discovered a mammoth tank of natural gas two thousand metres below the seabed in the Egyptian p a r t o f t h e E a s t e r n Mediterranean. The company claimed 30Trillion cubic feet of gas were located in the giant Zohr field. Coupled with a string of other discoveries by BP and others, as well as ramp up of production of undeveloped gas reservoirs under a better gas pricing regime (in the perspective of International Oil Companies), Egypt got its bounce back and its officials started talking of ending importation and renewing export plans.
In effect, Egypt stopped being the energy centre of the region, becoming, by itself, a net gas importer.
Officials are now talking about a reverse flow of gas from Israel to Egypt through the same gas pipeline with which it used to pump gas to Israel.
It's a position the country was ensconced in, prior to the Arab spring.
Egypt is angling to return to the heart of things in the Mediterranean-Europe nexus.
We are double headed”, says Tarek El Molla, Egypt's Petroleum Minister. “We are at the same
time regulators, producers and players. We cannot talk about transparency and governance while we double headed or even triple headed.“So we are reorganising and the main objective of the reorganization is to focus on our core business which is oil and gas development and production, distribution. There will be segregation of duties and there is no need for duplication of businesses in different organizations. We will take care of all
those while reorganizing ourselves with a new organization structure that is already on-going, we will take care of all those about the governing law which is EGPC's Law 20 and definitely our liability regarding the existing concession agreements with our partners and the financial ownership structure between the government and EGPC in other to consolidate one financial statement into the state budget. We have already completed the legal due diligence and we are currently undergoing financial due diligence and we expect to announce the new organisation within the coming months”.
Egypt Reclaims The Hub StatusBy Toyin Akinosho, Publisher
Cutting the Many Heads of The Monster
“A key strategy is to have Egypt as a hub for energy transfer; take advantage of the unique position of Egypt between Africa, Asia, and Europe. Now we can connect our network
to Sudan to feed between 200-300MW. I mean who is going to pay for that? It doesn't matter. With our neighbours we have to have very good and excellent relations. “We currently have an interconnection between Egypt and Jordan which is capable of transferring almost 450MW. We have another interconnection with Libya which can handle 200MW and currently with Saudi Arabia we have a project to do interconnection using high voltage DC transmission line to interchange between the two countries up to 3,000MW and even currently MoU is being signed between the chairman of the electricity holding company and some investors from Cyprus for the study of a submarine cable capable to transferr between 2,000-3,000MW. If you have more power in the country to generate more than you really need, one thing is to export and we hope that Egypt will be a good exporter of electricity to other continents.“Egypt will be having a lot of capacity from renewables; much more than what we need and we will supply to neighbouring countries”. H.E. Mohamed Shaker is the Egyptian Minister of Electricity & Renewable Energy
As It Is For Gas, So Is It For PowerBy Mohammed Shaker
IN
T
HE
NE
WS
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 810
AFRICA OIL + GAS REPORT J U LY 2 0 1 8 13
IN
T
HE
NE
WS
The first additional Ntomme well was successfully drilled in the first half of the year and is expected to start production in August 2018, Tullow reports.
he cluster of fields named TEN T(Twenoboa, Enyara and Ntommie), offshore Ghana, improved their output
performance in the first half of 2018, with gross production expected to average around 65,100BOPD.
A second well is expected to start production around the end of the year at which time Tullow expects to be able to increase gross production to around 80,000BOPD.
For this reason, the operator, Tullow Oil, has increased its gross full year production forecast for TEN to around 65,500BOPD. The TEN FPSO has previously been tested at
rates in excess of the 80,000BOPD design capacity and the vessel's ability to produce above this design capacity for long-term operations will be tested in 2019 as further wells come on stream. Gas from the TEN fields was supplied to the Ghana National Gas Company to replace Jubilee gas during the Jubilee shutdowns. Gas sales from TEN were expected to commence in July 2018.
igeria's economy will remain the Nlargest in the Subsaharan Africa SSA
space, (at about $376Billion in 2017)
in the opinion of the ratings agency Moody's.
The country will be followed by South Africa
(Baa3 stable, $348Billion) and Angola
($112Billion). That said, Angola and Nigeria
“face challenges in attracting more
investment in a low oil price environment”,
Moody's said in a 12 page report. “Nigeria has struggled to reform its oil sector, improve the regulatory environment and increase transparency. Discussions on legislation known as Petroleum Industry Bill (PIB) started more than a decade ago, but it has still not been passed into law. Nigeria has also accumulated arrears to international oil
companies in recent years. The government has missed some cash calls in the past, and difficulties in funding JV operations have been one of the main drivers of the decline in oil production in the past 11 years”.But Moody's also gives the thumbs up for the Buhari Administration, which it says has delivered some reforms.
TEN ON A Roll
Crude Oil Dollars Will Keep Nigeria's Economy Larger than South Africa
Vol 1
9, N
o 6,
July
201
8
NIG
ERIA
N IN
DEP
END
ENTS
: UPS
TREA
M A
CTIV
ITY
MA
P ©
Copy
right
201
8,
AFRI
CA O
IL+G
AS R
EPO
RT
JUN
E 2
01
8 U
PD
ATE
repo
rtw
ww
.afric
aoilg
asre
port.
com
FOLA
WIY
O A
ND
PA
RTN
ERS
OM
L 1
13
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ld J
un
e 2
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8 P
rod
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: 3
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om
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he
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ate
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vern
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t.
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ub
mit
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Nig
eria
n r
egu
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uth
ori
ties
. Par
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or
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(7,6
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ss p
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rage
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00
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. Th
e N
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reek
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in J
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il P
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PL)
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as
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OM
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ELEM
AO
IL
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 812
AFRICA OIL + GAS REPORT J U LY 2 0 1 8 13
IN
T
HE
NE
WS
The first additional Ntomme well was successfully drilled in the first half of the year and is expected to start production in August 2018, Tullow reports.
he cluster of fields named TEN T(Twenoboa, Enyara and Ntommie), offshore Ghana, improved their output
performance in the first half of 2018, with gross production expected to average around 65,100BOPD.
A second well is expected to start production around the end of the year at which time Tullow expects to be able to increase gross production to around 80,000BOPD.
For this reason, the operator, Tullow Oil, has increased its gross full year production forecast for TEN to around 65,500BOPD. The TEN FPSO has previously been tested at
rates in excess of the 80,000BOPD design capacity and the vessel's ability to produce above this design capacity for long-term operations will be tested in 2019 as further wells come on stream. Gas from the TEN fields was supplied to the Ghana National Gas Company to replace Jubilee gas during the Jubilee shutdowns. Gas sales from TEN were expected to commence in July 2018.
igeria's economy will remain the Nlargest in the Subsaharan Africa SSA
space, (at about $376Billion in 2017)
in the opinion of the ratings agency Moody's.
The country will be followed by South Africa
(Baa3 stable, $348Billion) and Angola
($112Billion). That said, Angola and Nigeria
“face challenges in attracting more
investment in a low oil price environment”,
Moody's said in a 12 page report. “Nigeria has struggled to reform its oil sector, improve the regulatory environment and increase transparency. Discussions on legislation known as Petroleum Industry Bill (PIB) started more than a decade ago, but it has still not been passed into law. Nigeria has also accumulated arrears to international oil
companies in recent years. The government has missed some cash calls in the past, and difficulties in funding JV operations have been one of the main drivers of the decline in oil production in the past 11 years”.But Moody's also gives the thumbs up for the Buhari Administration, which it says has delivered some reforms.
TEN ON A Roll
Crude Oil Dollars Will Keep Nigeria's Economy Larger than South Africa
Vol 1
9, N
o 6,
July
201
8
NIG
ERIA
N IN
DEP
END
ENTS
: UPS
TREA
M A
CTIV
ITY
MA
P ©
Copy
right
201
8,
AFRI
CA O
IL+G
AS R
EPO
RT
JUN
E 2
01
8 U
PD
ATE
repo
rtw
ww
.afric
aoilg
asre
port.
com
FOLA
WIY
O A
ND
PA
RTN
ERS
OM
L 1
13
-Aje
Fie
ld J
un
e 2
01
8 P
rod
uct
ion
: 3
,20
0B
OP
D
Pip
elin
e C
om
pan
y an
d t
he
Lago
s St
ate
Go
vern
men
t.
has
bee
n s
ub
mit
ted
to
Nig
eria
n r
egu
lato
ry a
uth
ori
ties
. Par
tner
s A
Fie
ld D
evel
op
men
t P
lan
fo
r th
e Tu
ron
ian
Gas
dev
elo
pm
ent
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pin
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Sal
e A
gree
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ith
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t A
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as
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e 2
01
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ran
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rcad
os
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tage
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or
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et t
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e N
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or
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OM
Ls 4
, 38
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e ac
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net
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tage
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ERIA
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ss o
il p
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iger
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n
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ran
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il P
rosp
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e (O
PL)
31
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ollo
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s ac
qu
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ho
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ss o
il p
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in J
un
e 2
01
8 w
as
NP
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/Sh
ore
line
Nat
ura
l Re
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s
Jun
e 2
01
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ross
ou
tpu
t w
as 3
,25
2B
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epla
t w
as
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tled
to
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or
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.5%
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is a
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lt o
f a
fin
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t. N
NP
C e
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ity
is 6
0%
. Op
erat
or
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emao
il w
as e
nti
tled
to
56
9B
OP
D.
OM
L 5
5N
NP
C/B
ELEM
AO
IL
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 812
Vol 19, No 6, July 2018
reportwww.africaoilgasreport.com
©Copyright 2018
AFRICA OIL+GAS REPORT
BLOCK NAME
GROSS
VOLUME OPERATOR PARTNER1 (Percentage) PARTNER 2(Percentage)
PARTNER 3
(Percentage)
PARTNER 4
(Percentage)
PARTNER 5
(Percentage)
PARTNER 6
(Percentage)
BLOCK 17 85 959 167 TOTAL 40% ESSO 20% BP 16.67% STATOIL 23.33%
BLOCKS OA&B 36 546 407 CHEVRON 39.2% Sonangol 41% TOTAL 10% ENI 09.8%
BLOCK 15 36 490 845 ESSO 40% BP 26.67% ENI 20% STATOIL 13.33%
BLOCK 15/06 19,523,541 ENI 35% SSI 20% Sonangol P&P 15% TOTAL 15% FALCON 5% STATOIL 5% PETROBRAS 5%
BLOCK 31 18 309 539 BP 26.67% ESSO 25% Sonangol P&P 20% STATOIL 13.33% MARATHON 10% China Sonangol 5%
BLOCK 18 13 543 176 BP 50% SSI 50% NONE NONE NONE NONE NONE
BLOCK 14&14 K/A-IMI 11,68,7367 CHEVRON 31% Sonangol P&P 20% ENI 20% TOTAL 20% GALP 9%
BLOCK 3/05 3 483 991 Sonangol P&P China Sonangol 25% AJOCO 20% ENI 12% SOMOIL 10% NAFTGAS 4% INA NAFTA 4%
BLOCK 4/05 Sonangol P&P 50% STATOIL 20% SOMOIL 15% ACREP 15% NONE NONE NONE
BLOCK FS/FST 552,500 SOMOIL 15% Sonangol 63.67% CHEVRON 14.3% Sonangol P7P 5% NONE NONE
BLOCK 2/05 175,001 PETROBRAS Sonangol P&P 25% CHEVRON 20% SOMOIL 9.3% POLIEDRO 9.1% KOTOIL 9.1%
BLOCK 3/05A 18,000 Sonangol P&P China Sonangol 25% AJOCO 20% ENI 12% SOMOIL 10% NAFTGAS 4% INA NAFTA 4%
ZONE SUL TERRESTE CABINDA 192,000 Plus Petro 50% Sonangol P&P 20% Force Petroleum 20% CUPET 5%
TOTALS 226,481,534
COMPANY NAME
OPERATED
Prdn EQUITY Prdn GROSS Prdn ACREAGES
SOMOIL 552,500 449,349
4,229,492
Blocks FS/FST, 2/05, 3/05,
3/05A, 4/05
FALCON NIL 976,177
19,523,541
Block 15/06
ACREP NIL Block 4/05
POLIEDRO NIL 15,925
175,001
Block 2/05
KOTOIL NIL 15,925 175,001 Block 2/05
FORCE PETROLEUM NIL 38,400 192,000Zone Sul Terreste
Cabinda
TOTALS 552,500 1,495,776 24,295,035
Data sourced from the Angolan Ministry of Finance. Daily production averaged 1.500MMBOPD during the period
ANGOLA's INDIGENOUS PRODUCING COMPANIES-2018 EXPORT ENTITLEMENTS JANUARY-MAY, 2018
ANGOLA's CRUDE OIL EXPORT AND PRODUCING COMPANIES (FOREIGN & LOCAL) JANUARY-MAY, 2018
AFRICA OIL + GAS REPORT J U LY 2 0 1 8 15
IN
T
HE
NE
WS
Vol 19, No 6, July 2018
reportwww.africaoilgasreport.com
©Copyright 2018AFRICA OIL+GAS REPORT
NIGERIA's TOP INDIGENOUS CRUDE OIL PRODUCING COMPANIES -JUNE 2018
supplies 1MMscf/d to a local gas o�aker
COMPANY NAME
OPERATED
Prdn (BOPD)
EQUITY Prdn
(BOPD)
GROSS Field
Prdn (BOPD) ACREAGES LICENCE TYPES
KEY PRODUCING
FIELD
NPDC 119,918 98,396 138,063OMLs 4, 26, 30, 34, 38,
41, 65, 66, 111, 119JV, PSC Okono
SEPLAT - Note 1 38,188 17,767 41,440 OMLs 4, 38, 41, 53, 55 JV Oben, Sapele
ORIENTAL 22,000 22,000 22,000 EBOK Marginal Field Ebok
CONOIL 20,000 20,000 20,000 OMLs 59, 103 Sole Risk Otuo South
AITEO 18,000 8,100 18,000 OML 29 JV Nembe Creek
MIDWESTERN 14,000 9,800 14,000 UMUSADEGE Marginal Field Umusadege
AMNI PETROLEUM 13,975
13,975
13,975
OMLs 112, 117 Sole Risk Okoro
EROTON 10,000
4,500
10,000
OML 18 JVCawthorne
Channel
GREEN ENERGY/LEKOIL 6,000
6,000
6,000
OTAKIKPO Marginal Field Otakikpo
NIGER DELTA PETROLEUM 5,500
5,500
5,500
OGBELE FIELD Marginal Field Ogbele
WALTER SMITH 5,178
5,178
5,178
IBIGWE FIELD Marginal Field Ibigwe
NEWCROSS E&P 5,000
2,250
5,000
OML 24 JV Ekulama
ENERGIA 3,800
2,004
3,800
EBENDO Marginal Field Ebendo
BELEMAOIL 3,252
569
3,252
OML 55 JV
YINKA FOLAWIYO 3,200
3,200
3,200
OML 113 Sole Risk Aje Field
PAN OCEAN 3,000
1,200
3,000
OML 98 JV Ogharefe
MONI PULO 2,800
2,800
2,800
OML 114 Sole Risk Abana
PLATFORM 2,800
1,680
2,800
EGBEOMA FIELD Marginal Field, JV Egbeoma Field
PILLAR OIL 2,200
880
2,200
UMUSETI Marginal Field Umuse�
SHORELINE NAT' RESOURCES AMT 10,401
23,113
OML 30 JV Afiesere
ELCREST AMT 8,050
17,890
OML 40 JV Opuama
NECONDE AMT 7,679
17,065
OML 42 JV Jones Creek
ND WESTERN AMT 4,840
10,755
OML 34 JVUghelli, Warri
River
FIRST HYDROCARBON AMT 1,531
3,401
OML 26 JV Ogini
FAMFA - Note 3 NIL 20,000
238,000
OML 127 Sole RiskAgbami Field
(Deepwater)
OANDO ER - Note 2 NIL 15,000
100,000
OMLs 60, 61, 62, 63, 125,
EBENDO, QUA IBOE
JV, PSC, Marginal
Field
SAPETRO - Note 4 NIL 15,000 120,000 OML 130 Sole RiskAKPO Field
(Deepwater)
SUNTRUST NIL 4,200
14,000
UMUSADEGE Marginal Field Umusadege
TOTALS 178,893
214,104
726,369
COMPANY NAME
OPERATED
Prdn
(MMscf/d)
EQUITY Prdn
(MMsf/d)
GROSS Field
Prdn
(MMscf/d) ACREAGES/O�aker
NPDC 335 380 642
Includes Oben,
Utorogu, Ughelli and
Oredo
OANDO ER NIL 186 900
Mainly ENI operated
into NLNG system and
Okpai Power Plant
ND WESTERN NIL 124 275
Utorogu Gas, fed into
the Escravos Lagos
Pipeline System (ELPS)
SEPLAT 307 138 307
Fed into NGC lines
(Oben to Geregu line
and the ELPS)
FRONTIER 95 NA 95
Sold to Ibom Power,
Unicem and Calabar
Plant
EROTON 50 22.5 50Supplied to Notore
Fer�liser company
NIGERIA's TOP INDIGENOUS NATURAL GAS PRODUCING COMPANIES-JUNE 2018 OUTPUT
NIGER DELTA - Note 5 36 36 36
(1)Pumped into NLNG
system(2) Supplied to
PNG
ENERGIA 10 10 10 Sold in the community Plans for expansion and sale to NGC
TOTALS 833 896.5 2,315
Notes Below:
(1) SEPLAT Produc�on now includes Pillar Oil operated Umuse� field, as well as OMLs 53&55.
(2) Most of Oando's gas produc�on via NNPC/Agip JV is supplied to the NLNG; but 4.275MMsf/d is its share of the Energia operated Ebendo field
(3) Famfa holds 60% equity in OML 127 (Agbami), which outputs 238,000BOPD, but is li�ing 20,000BOPD, as a result of its "carried" status
(4) SAPETRO's take is 13.5% of Akpo field's (OML 130)'s daily produc�on of 120,000BOPD but it li�s 18,000BOPD due to its "carried" status
(5) Niger Delta Petroleum Resources delivered 35MMscf/d of gas from the Ogbele field to the Nigerian Liquefied Natural Gas(NLNG) system and
Vol 19, No 6, July 2018
reportwww.africaoilgasreport.com
©Copyright 2018
AFRICA OIL+GAS REPORT
BLOCK NAME
GROSS
VOLUME OPERATOR PARTNER1 (Percentage) PARTNER 2(Percentage)
PARTNER 3
(Percentage)
PARTNER 4
(Percentage)
PARTNER 5
(Percentage)
PARTNER 6
(Percentage)
BLOCK 17 85 959 167 TOTAL 40% ESSO 20% BP 16.67% STATOIL 23.33%
BLOCKS OA&B 36 546 407 CHEVRON 39.2% Sonangol 41% TOTAL 10% ENI 09.8%
BLOCK 15 36 490 845 ESSO 40% BP 26.67% ENI 20% STATOIL 13.33%
BLOCK 15/06 19,523,541 ENI 35% SSI 20% Sonangol P&P 15% TOTAL 15% FALCON 5% STATOIL 5% PETROBRAS 5%
BLOCK 31 18 309 539 BP 26.67% ESSO 25% Sonangol P&P 20% STATOIL 13.33% MARATHON 10% China Sonangol 5%
BLOCK 18 13 543 176 BP 50% SSI 50% NONE NONE NONE NONE NONE
BLOCK 14&14 K/A-IMI 11,68,7367 CHEVRON 31% Sonangol P&P 20% ENI 20% TOTAL 20% GALP 9%
BLOCK 3/05 3 483 991 Sonangol P&P China Sonangol 25% AJOCO 20% ENI 12% SOMOIL 10% NAFTGAS 4% INA NAFTA 4%
BLOCK 4/05 Sonangol P&P 50% STATOIL 20% SOMOIL 15% ACREP 15% NONE NONE NONE
BLOCK FS/FST 552,500 SOMOIL 15% Sonangol 63.67% CHEVRON 14.3% Sonangol P7P 5% NONE NONE
BLOCK 2/05 175,001 PETROBRAS Sonangol P&P 25% CHEVRON 20% SOMOIL 9.3% POLIEDRO 9.1% KOTOIL 9.1%
BLOCK 3/05A 18,000 Sonangol P&P China Sonangol 25% AJOCO 20% ENI 12% SOMOIL 10% NAFTGAS 4% INA NAFTA 4%
ZONE SUL TERRESTE CABINDA 192,000 Plus Petro 50% Sonangol P&P 20% Force Petroleum 20% CUPET 5%
TOTALS 226,481,534
COMPANY NAME
OPERATED
Prdn EQUITY Prdn GROSS Prdn ACREAGES
SOMOIL 552,500 449,349
4,229,492
Blocks FS/FST, 2/05, 3/05,
3/05A, 4/05
FALCON NIL 976,177
19,523,541
Block 15/06
ACREP NIL Block 4/05
POLIEDRO NIL 15,925
175,001
Block 2/05
KOTOIL NIL 15,925 175,001 Block 2/05
FORCE PETROLEUM NIL 38,400 192,000Zone Sul Terreste
Cabinda
TOTALS 552,500 1,495,776 24,295,035
Data sourced from the Angolan Ministry of Finance. Daily production averaged 1.500MMBOPD during the period
ANGOLA's INDIGENOUS PRODUCING COMPANIES-2018 EXPORT ENTITLEMENTS JANUARY-MAY, 2018
ANGOLA's CRUDE OIL EXPORT AND PRODUCING COMPANIES (FOREIGN & LOCAL) JANUARY-MAY, 2018
AFRICA OIL + GAS REPORT J U LY 2 0 1 8 15
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©Copyright 2018AFRICA OIL+GAS REPORT
NIGERIA's TOP INDIGENOUS CRUDE OIL PRODUCING COMPANIES -JUNE 2018
supplies 1MMscf/d to a local gas o�aker
COMPANY NAME
OPERATED
Prdn (BOPD)
EQUITY Prdn
(BOPD)
GROSS Field
Prdn (BOPD) ACREAGES LICENCE TYPES
KEY PRODUCING
FIELD
NPDC 119,918 98,396 138,063OMLs 4, 26, 30, 34, 38,
41, 65, 66, 111, 119JV, PSC Okono
SEPLAT - Note 1 38,188 17,767 41,440 OMLs 4, 38, 41, 53, 55 JV Oben, Sapele
ORIENTAL 22,000 22,000 22,000 EBOK Marginal Field Ebok
CONOIL 20,000 20,000 20,000 OMLs 59, 103 Sole Risk Otuo South
AITEO 18,000 8,100 18,000 OML 29 JV Nembe Creek
MIDWESTERN 14,000 9,800 14,000 UMUSADEGE Marginal Field Umusadege
AMNI PETROLEUM 13,975
13,975
13,975
OMLs 112, 117 Sole Risk Okoro
EROTON 10,000
4,500
10,000
OML 18 JVCawthorne
Channel
GREEN ENERGY/LEKOIL 6,000
6,000
6,000
OTAKIKPO Marginal Field Otakikpo
NIGER DELTA PETROLEUM 5,500
5,500
5,500
OGBELE FIELD Marginal Field Ogbele
WALTER SMITH 5,178
5,178
5,178
IBIGWE FIELD Marginal Field Ibigwe
NEWCROSS E&P 5,000
2,250
5,000
OML 24 JV Ekulama
ENERGIA 3,800
2,004
3,800
EBENDO Marginal Field Ebendo
BELEMAOIL 3,252
569
3,252
OML 55 JV
YINKA FOLAWIYO 3,200
3,200
3,200
OML 113 Sole Risk Aje Field
PAN OCEAN 3,000
1,200
3,000
OML 98 JV Ogharefe
MONI PULO 2,800
2,800
2,800
OML 114 Sole Risk Abana
PLATFORM 2,800
1,680
2,800
EGBEOMA FIELD Marginal Field, JV Egbeoma Field
PILLAR OIL 2,200
880
2,200
UMUSETI Marginal Field Umuse�
SHORELINE NAT' RESOURCES AMT 10,401
23,113
OML 30 JV Afiesere
ELCREST AMT 8,050
17,890
OML 40 JV Opuama
NECONDE AMT 7,679
17,065
OML 42 JV Jones Creek
ND WESTERN AMT 4,840
10,755
OML 34 JVUghelli, Warri
River
FIRST HYDROCARBON AMT 1,531
3,401
OML 26 JV Ogini
FAMFA - Note 3 NIL 20,000
238,000
OML 127 Sole RiskAgbami Field
(Deepwater)
OANDO ER - Note 2 NIL 15,000
100,000
OMLs 60, 61, 62, 63, 125,
EBENDO, QUA IBOE
JV, PSC, Marginal
Field
SAPETRO - Note 4 NIL 15,000 120,000 OML 130 Sole RiskAKPO Field
(Deepwater)
SUNTRUST NIL 4,200
14,000
UMUSADEGE Marginal Field Umusadege
TOTALS 178,893
214,104
726,369
COMPANY NAME
OPERATED
Prdn
(MMscf/d)
EQUITY Prdn
(MMsf/d)
GROSS Field
Prdn
(MMscf/d) ACREAGES/O�aker
NPDC 335 380 642
Includes Oben,
Utorogu, Ughelli and
Oredo
OANDO ER NIL 186 900
Mainly ENI operated
into NLNG system and
Okpai Power Plant
ND WESTERN NIL 124 275
Utorogu Gas, fed into
the Escravos Lagos
Pipeline System (ELPS)
SEPLAT 307 138 307
Fed into NGC lines
(Oben to Geregu line
and the ELPS)
FRONTIER 95 NA 95
Sold to Ibom Power,
Unicem and Calabar
Plant
EROTON 50 22.5 50Supplied to Notore
Fer�liser company
NIGERIA's TOP INDIGENOUS NATURAL GAS PRODUCING COMPANIES-JUNE 2018 OUTPUT
NIGER DELTA - Note 5 36 36 36
(1)Pumped into NLNG
system(2) Supplied to
PNG
ENERGIA 10 10 10 Sold in the community Plans for expansion and sale to NGC
TOTALS 833 896.5 2,315
Notes Below:
(1) SEPLAT Produc�on now includes Pillar Oil operated Umuse� field, as well as OMLs 53&55.
(2) Most of Oando's gas produc�on via NNPC/Agip JV is supplied to the NLNG; but 4.275MMsf/d is its share of the Energia operated Ebendo field
(3) Famfa holds 60% equity in OML 127 (Agbami), which outputs 238,000BOPD, but is li�ing 20,000BOPD, as a result of its "carried" status
(4) SAPETRO's take is 13.5% of Akpo field's (OML 130)'s daily produc�on of 120,000BOPD but it li�s 18,000BOPD due to its "carried" status
(5) Niger Delta Petroleum Resources delivered 35MMscf/d of gas from the Ogbele field to the Nigerian Liquefied Natural Gas(NLNG) system and
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 816 AFRICA OIL + GAS REPORT J U LY 2 0 1 8 17
New Direction(s) for Sonangol?
Manuel Vincente, the former Vice-President and former long serving President of Sonangol, has received a lot of publicity in recent months…this requires a further explanation.
This bitter pill for Sonangol brings with it a mixed message. Can it adjust to becoming a slimmed down oil company with a specific task of
shepherding the country's oil and gas assets? Will it adjust to the new reality? Or will it be caught between the 'Old Sonangol' and the 'New Sonangol”'?
The answer was not long in waiting. Manuel Vincente, no stranger to the intrigues of Presidential Power could provide access to money and influence. Vincente wanted to be able to visit Europe (Portugal), but had fugitive status in Europe. A presidential pardon could of course, clear this up. And so it transpired. A presidential pardon in exchange for access to money and influence.
When the New Angolan President came to power the first thing he noticed was that his Treasury was empty. How can you use the Powers of the Presidency if you have no power and money to ensure you have influence?
In the past Sonangol had two roles: that of Concessionair, a highly judicious key role which gave it the power and legitimacy it had achieved; and being a state oil company with its responsibilities for exploration and development of the resources. The new mission soon became evident.
At Sonangol Carlos Saturnino, a Vincente loyalist, could be expected to ensure stability and inspire confidence. Two conditions Sonangol badly required. Formerly a state within a state and always seen as a vehicle that had brought much oil wealth to the country. Now highly in debt and lacking direction Sonangol was badly in need of a new compass.
The majors, in particular BP, Chevron and ExxonMobil, insisted that a new agency under the direction of Minpet, be given the responsibility of concessionair. This demand was also coupled with the insistence that the embargo of dollars be lifted to ensure that foreign currency availability no longer would be an issue. According to one source, the presidential decision to strip Sonangol of its concessionair role has already been taken. Now it only has to be implemented.
But the trucking is no longer necessary. It didn't happen in the Chad Cameroon project, it's not happening in the Uganda Oilfield basin project. It is cumbersome and a waste of money.
And who does this, anyway, anywhere else in the world?
With the protests, the EOPS/Trucking project has laid bare the fault lines of the County-Country politics. Now, a settlement among the central government, the county and the community resulting from the protest has outlined a 75% to 20% to 5% share of the oil proceeds. This is progress.
The vehicles started with approximately 600BOPD, which was expected to steadily increase to 2,000BOPD, once the Early Oil Production System was fully operational and production testing commence from the Amosing production facility. But residents blocked their movement, “in protest against rising insecurity in the area and lack of jobs for locals,” local media reported.
With the project held up for weeks as a result of the raucous, the very idea of trucking up to 2,000 barrels of oil per day on a 800km journey by road has come up for scrutiny.
t wasn't up to a month after President Uhuru Kenyanta's June 3, I2018 inauguration of the Early Oil Pilot Scheme EOPS in the oil rich county of Turkana. Massive protests held up the movement of
trucks carrying the produced crude oil to Mombassa, in the south, for storage.
Just for whose benefit is this trucking of crude oil produced from extended well tests?
So why the cumbersome trucking for storage in some far flung facility?Whereas sections of the Kenyan media have repeated the fiction that the trucking was an idea agreed between the Kenyan government and the acreage holders, the truth is that President Kenyatta had hoped that the project took off before the elections so he could use it as a campaign tool: “I took Kenya to first oil”.
The ostensible reason for EOPS was to understand the technical details of the flow assurance of the fields. So called “early oil activity” was also meant to be an operational necessity to relieve a containment problem for oil produced during exploration and appraisal, which include 11
successful exploration wells and 21 appraisal wells drilled. This second reason is silly. In full field development praxis, an operator undertakes in-depth study of the subsurface and engineers the production and export facilities on the basis of this knowledge, before delivery of the crude. In this particular case, the rough outlines of a full field development are: flowlines between wells; crude oil treatment infrastructure and production and storage facilities, all insitu; a 900km pipeline, pumping 100,000BOPD of treated crude (at peak) from Turkana to the Indian Ocean. The Kenyan oil project, including upstream development and midstream pipeline construction, is expected to take Final Investment Decision by late 2019, and deliver first oil by late 2022.
Since it didn't happen, and he has won, why continue?
“Angry residents, backed up by Turkana East MP Mohammed Ali Lokiru and Turkana South counterpart James Lomenen, blocked five oil trucks destined for Mombasa at Kalemngorok on the Lokichar-Kapenguria highway”, the Kenyan Business Daily reported. “They demanded that the State beef up security along the Turkana-Baringo border, recover stolen livestock and assure them of their share of jobs and tenders in oil operations”.
Moritimer Meijering
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In her speech during the hand over from Radwitz to Sabry, Maria Moraeus Hanssen, President DEA Worldwide, highlighted Sabry's qualification: “He knows DEA Egypt by heart, is well connected, and respected and starts his new job with great competence and a strong DEA spirit.”
Th e G e r m a n explorer DEA D e u t s c h e
E r d o e l A G , h a s named Sameh Sabry as the head of its Egypt operations. He
will take over the job of General Manager, DEA Egypt, from Thomas Radwitz, on August 1, 2018. Mr. Radwitz
had been General Manager for nearly three years.Sameh Sabry joined DEA Deutsche Erdoel AG ten years ago and had been assuming different managerial roles mainly in North Africa and Europe. He gained experience in leading positions such as the General Manager of DEA's branch in Algeria or as deputy of the General Manager of DEA Egypt branch
for extended periods of time. Mr Sabry is an engineer with an MBA degree.
Eskil Jersing has joined Wentworth as Chief Executive Officer. He was appointed to the Board with effect
from 27 June 2018 at the Company's Annual and Special Meeting.
Jersing was formerly Chief Executive of Sterling Energy. He has a career of about t30 years working exploration, new ventures, s t r a t e g y, p l a n n i n g a n d b u s i n e s s d e ve l o p m e nt ro l e s o f i n c re a s i n g responsibility in the world's key petroleum basins (Africa, Brazil, SE Asia, Australasia, North Sea, and Deep Water Gulf of Mexico)”,
He was picked for the job because W e n t w o r t h ' s former CEO….was unable to move w i t h t h e company from C a l g a r y t o London and instead chose to resign.
Wentworth is a key participant in Tanzania's 160MMscf/d domestic gas market. It is a 32% equity holder in the country's Mnazi Bay gas project, which outputs some 80MMscf/d, half of the entire natural gas volume supplied to power plants and
industry in Tanzania. The company was domiciled in Calgary and has just decided to re-domicile to London.
Savannah Petroleum PLC has announced the appointment of David Clarkson as Chief Operating
Officer.He was, until the appointment, a Non Executive Director of the Company and, was asked to executive duties as COO with immediate effect, while continuing
as a member of the Board of Directors of the Company. Mr. Clarkson will be accountable for all aspects of the Company's technical and operational activities, including HSSE, executing capital investment plans, work programme budget and delivery of development projects. “Intrinsic in his COO role, David will also continue to build
Savannah's organisational capability in line with the Company's growth agenda”, Savannah said in a release.Clarkson holds a BSc degree in Mechanical Engineering, has over 40 years' experience in the oil gas industry and is a Chartered Engineer, and Fellow of the Institution of Mechanical Engineers. He was formerly a member of BP's Group Leadership Team and Senior Vice President for Projects and Engineering in the Upstream business. Throughout his career he held a number of senior leadership posts in major frontier greenfield developments in challenging locations. Savannah says it looks forward to Clarkson's contribution as it works towards both the creation of a potential R3 East early production scheme in Niger Republic and the full integration of the assets of Seven Energy in Nigeria into its business.
Sabry Succeeds Radwitz as GM, DEA Egypt
Jersing Heads Tanzania's Key Natural Gas Player
Savannah Picks Clarkson As New Chief Operating Officer
Who Needs The Trucking To Turkana?
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 816 AFRICA OIL + GAS REPORT J U LY 2 0 1 8 17
New Direction(s) for Sonangol?
Manuel Vincente, the former Vice-President and former long serving President of Sonangol, has received a lot of publicity in recent months…this requires a further explanation.
This bitter pill for Sonangol brings with it a mixed message. Can it adjust to becoming a slimmed down oil company with a specific task of
shepherding the country's oil and gas assets? Will it adjust to the new reality? Or will it be caught between the 'Old Sonangol' and the 'New Sonangol”'?
The answer was not long in waiting. Manuel Vincente, no stranger to the intrigues of Presidential Power could provide access to money and influence. Vincente wanted to be able to visit Europe (Portugal), but had fugitive status in Europe. A presidential pardon could of course, clear this up. And so it transpired. A presidential pardon in exchange for access to money and influence.
When the New Angolan President came to power the first thing he noticed was that his Treasury was empty. How can you use the Powers of the Presidency if you have no power and money to ensure you have influence?
In the past Sonangol had two roles: that of Concessionair, a highly judicious key role which gave it the power and legitimacy it had achieved; and being a state oil company with its responsibilities for exploration and development of the resources. The new mission soon became evident.
At Sonangol Carlos Saturnino, a Vincente loyalist, could be expected to ensure stability and inspire confidence. Two conditions Sonangol badly required. Formerly a state within a state and always seen as a vehicle that had brought much oil wealth to the country. Now highly in debt and lacking direction Sonangol was badly in need of a new compass.
The majors, in particular BP, Chevron and ExxonMobil, insisted that a new agency under the direction of Minpet, be given the responsibility of concessionair. This demand was also coupled with the insistence that the embargo of dollars be lifted to ensure that foreign currency availability no longer would be an issue. According to one source, the presidential decision to strip Sonangol of its concessionair role has already been taken. Now it only has to be implemented.
But the trucking is no longer necessary. It didn't happen in the Chad Cameroon project, it's not happening in the Uganda Oilfield basin project. It is cumbersome and a waste of money.
And who does this, anyway, anywhere else in the world?
With the protests, the EOPS/Trucking project has laid bare the fault lines of the County-Country politics. Now, a settlement among the central government, the county and the community resulting from the protest has outlined a 75% to 20% to 5% share of the oil proceeds. This is progress.
The vehicles started with approximately 600BOPD, which was expected to steadily increase to 2,000BOPD, once the Early Oil Production System was fully operational and production testing commence from the Amosing production facility. But residents blocked their movement, “in protest against rising insecurity in the area and lack of jobs for locals,” local media reported.
With the project held up for weeks as a result of the raucous, the very idea of trucking up to 2,000 barrels of oil per day on a 800km journey by road has come up for scrutiny.
t wasn't up to a month after President Uhuru Kenyanta's June 3, I2018 inauguration of the Early Oil Pilot Scheme EOPS in the oil rich county of Turkana. Massive protests held up the movement of
trucks carrying the produced crude oil to Mombassa, in the south, for storage.
Just for whose benefit is this trucking of crude oil produced from extended well tests?
So why the cumbersome trucking for storage in some far flung facility?Whereas sections of the Kenyan media have repeated the fiction that the trucking was an idea agreed between the Kenyan government and the acreage holders, the truth is that President Kenyatta had hoped that the project took off before the elections so he could use it as a campaign tool: “I took Kenya to first oil”.
The ostensible reason for EOPS was to understand the technical details of the flow assurance of the fields. So called “early oil activity” was also meant to be an operational necessity to relieve a containment problem for oil produced during exploration and appraisal, which include 11
successful exploration wells and 21 appraisal wells drilled. This second reason is silly. In full field development praxis, an operator undertakes in-depth study of the subsurface and engineers the production and export facilities on the basis of this knowledge, before delivery of the crude. In this particular case, the rough outlines of a full field development are: flowlines between wells; crude oil treatment infrastructure and production and storage facilities, all insitu; a 900km pipeline, pumping 100,000BOPD of treated crude (at peak) from Turkana to the Indian Ocean. The Kenyan oil project, including upstream development and midstream pipeline construction, is expected to take Final Investment Decision by late 2019, and deliver first oil by late 2022.
Since it didn't happen, and he has won, why continue?
“Angry residents, backed up by Turkana East MP Mohammed Ali Lokiru and Turkana South counterpart James Lomenen, blocked five oil trucks destined for Mombasa at Kalemngorok on the Lokichar-Kapenguria highway”, the Kenyan Business Daily reported. “They demanded that the State beef up security along the Turkana-Baringo border, recover stolen livestock and assure them of their share of jobs and tenders in oil operations”.
Moritimer Meijering
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In her speech during the hand over from Radwitz to Sabry, Maria Moraeus Hanssen, President DEA Worldwide, highlighted Sabry's qualification: “He knows DEA Egypt by heart, is well connected, and respected and starts his new job with great competence and a strong DEA spirit.”
Th e G e r m a n explorer DEA D e u t s c h e
E r d o e l A G , h a s named Sameh Sabry as the head of its Egypt operations. He
will take over the job of General Manager, DEA Egypt, from Thomas Radwitz, on August 1, 2018. Mr. Radwitz
had been General Manager for nearly three years.Sameh Sabry joined DEA Deutsche Erdoel AG ten years ago and had been assuming different managerial roles mainly in North Africa and Europe. He gained experience in leading positions such as the General Manager of DEA's branch in Algeria or as deputy of the General Manager of DEA Egypt branch
for extended periods of time. Mr Sabry is an engineer with an MBA degree.
Eskil Jersing has joined Wentworth as Chief Executive Officer. He was appointed to the Board with effect
from 27 June 2018 at the Company's Annual and Special Meeting.
Jersing was formerly Chief Executive of Sterling Energy. He has a career of about t30 years working exploration, new ventures, s t r a t e g y, p l a n n i n g a n d b u s i n e s s d e ve l o p m e nt ro l e s o f i n c re a s i n g responsibility in the world's key petroleum basins (Africa, Brazil, SE Asia, Australasia, North Sea, and Deep Water Gulf of Mexico)”,
He was picked for the job because W e n t w o r t h ' s former CEO….was unable to move w i t h t h e company from C a l g a r y t o London and instead chose to resign.
Wentworth is a key participant in Tanzania's 160MMscf/d domestic gas market. It is a 32% equity holder in the country's Mnazi Bay gas project, which outputs some 80MMscf/d, half of the entire natural gas volume supplied to power plants and
industry in Tanzania. The company was domiciled in Calgary and has just decided to re-domicile to London.
Savannah Petroleum PLC has announced the appointment of David Clarkson as Chief Operating
Officer.He was, until the appointment, a Non Executive Director of the Company and, was asked to executive duties as COO with immediate effect, while continuing
as a member of the Board of Directors of the Company. Mr. Clarkson will be accountable for all aspects of the Company's technical and operational activities, including HSSE, executing capital investment plans, work programme budget and delivery of development projects. “Intrinsic in his COO role, David will also continue to build
Savannah's organisational capability in line with the Company's growth agenda”, Savannah said in a release.Clarkson holds a BSc degree in Mechanical Engineering, has over 40 years' experience in the oil gas industry and is a Chartered Engineer, and Fellow of the Institution of Mechanical Engineers. He was formerly a member of BP's Group Leadership Team and Senior Vice President for Projects and Engineering in the Upstream business. Throughout his career he held a number of senior leadership posts in major frontier greenfield developments in challenging locations. Savannah says it looks forward to Clarkson's contribution as it works towards both the creation of a potential R3 East early production scheme in Niger Republic and the full integration of the assets of Seven Energy in Nigeria into its business.
Sabry Succeeds Radwitz as GM, DEA Egypt
Jersing Heads Tanzania's Key Natural Gas Player
Savannah Picks Clarkson As New Chief Operating Officer
Who Needs The Trucking To Turkana?
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 818
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Zubairu is AFC's New CEO
Samaila is an Eisenhower Fellow and sits on the Eisenhower Fellowship's Global Network Council as well as the Advisory Council of the President of Nigeria. He is also an Advisory Board member for KSE Africa a leading Operations and Management provider of captive power plants in the mining sector of Botswana and Nigeria and is the Chairman of MDSA Nigeria Limited, a fintech company providing micro loans across sub-Saharan Africa. Samaila is the Independent Director and Chairman Statutory Audit Committee as well as a member of Finance and General-Purpose and Establishment and Governance Committees of Aiico Insurance Plc. He also serves as an Independent Director and
Chairman of the Finance Committee for New Nigeria Commodity Marketing Company.
“Zubairu is a distinguished Fellow of the Institute of Chartered Accountants of Nigeria (ICAN) and an accomplished Infrastructure development finance specialist with over 29 years of professional experience”, the AFC says of his Cee Vee. “He is the CEO of Africapital Management Limited, in which position he established a joint venture with Old Mutual 's Afr ican Infrastructure Investment Managers (AIIM) to develop the N iger ian Inf rast ructure Investment Fund1(NIIF1) for infrastructure private equity across West Africa. He also recently coordinated the $300Million acquisition of
Eko Electricity Distribution Plc.
“I look forward to joining AFC's highly reputable team, and together, enhancing AFC's position as an extremely capable project partner, able to deliver sustainable development projects across the Continent”, Zubairu says. ” I am confident of AFC's market position as being best placed to surmount Africa's multi-sectoral infrastructure challenges”.
The 10 year old AFC is largely an Infrastructure funder and has been significantly involved in enabling E&P and power projects across the continent.
“He was the pioneer CFO for Dangote Cement Plc, during which he launched Africa's largest syndicated project finance facility for a local corporate to actualize the Obajana Cement project and managed the watershed unbundling of Dangote Industries Limited to listed subsidiaries on the Nigerian Stock Exchange. He has led finance transactions for over US$3 billion covering: green-field project finance facilities, acquisitions, corporate transformation initiatives, privatization and equity capital market transactions.
The appointment follows a six-month search process that saw over 100 candidates apply for the role. “Mr. Zubairu will formally take the post imminently”, the company says.
Africa Finance Corporation has announced the appointment of S a m a i l a D . Z u b a i r u a s t h e
rdCorporation's 3 President & Chief Executive Officer, succeeding Andrew Alli who comes to the end of his tenure, having successfully served in the position since 2008.
EQ/GUINEA: JUNE 2018 ACTIVITY UPDATE
Kosmos is working on well optimization in the Ceiba field and the Okume complex. The experiment is working; production has increased marginally. The plan is to follow up with waterflood optimisation, from the later part of the third quarter 2018, through to late 2019. The company will install Electrical Submersible Pump from later 2018, but only for a limited time.
Ceiba and Okume Will Soon Be Flooded
Plans for A Natural Gas Megahub at Punto EuropaGovernment plans to construct a natural gas megahub project, consisting of interlinked production, aggregation and processing facilities offshore and onshore, tieing to existing facilities. Noble Energy will supply gas from Aseng and Alen fields in Block I/O to the Punta Europa gas complex, which includes the Malabo power station, AMPCO methanol plant and Equatorial Guinea LNG plant. The molecules will replace some of the gas production lost as the Alba field declines.
Royalgate, operator of Block Z, will have its licence to the block revoked for non performance. The company was granted extension to October 2016, four years after it signed the Production Sharing Contract. Proposed drilling in April 2016, but did nothing.
Royalgate Will Lose…
Government has approved plans for
XOM Has Zafiro Until Later Than 2023
the Zafiro field expansion. ExxonMobil's operating licence is likely to be approved beyond its renewal date in 2023.
Noble Energy's fourth quarter 2017 report indicates 148,000BOEPD (gross) for both Aseng and Alen Fields. Crude Oil accounts for 44,000BOPD of this figure, which means that production has reduced, slightly, from 2016 to 2017.
Alen and Aseng Produced 148,000 BOEPD in 2017
Block R Licence Close to Expiry
The Block R licence (which contains the Fortuna gas discovery) is due to expire at the end of 2018. Ophir Energy is in active discussions to secure a partner but the status of the financing and timing of FID were not clear as of mid July 2018. “Depending on how these discussions progress, the carrying value of the Block R licence ( $604Million as at 31 Dec 2017) may need to be reassessed as part of our interim reporting process”.
Kosmos Energy had completed 28% of a block wide three dimensional (3D) seismic survey in Block 24. The survey commenced in May 2018. Kosmos only farmed into the Block in February 2018.
Kosmos Shoots Ahead in Block 24
Ukpong was previously BHGE's Chief Integration Officer. He took over from Belgacem Chariag, who “resigned from his position as Chief Global Operations Officer of the Company and all other officer positions with the Company and its subsidiaries”.
The Baker Hughes executive leadership team comprises
Ukpong is a graduate of the Federal University of Technology in Owerri, in the east of Nigeria, and Heriot-Watt in Edinburgh, Scotland.
Maria Claudia Borras, President & CEO, Oilfield Services
Harry Elsinga, Chief Human Resources Officer
Uwem Ukpong, Chief Global Operations Officer
Jennifer Hartsock, Chief Information OfficerMatthias Heilmann, President & CEO, Digital Solutions Jack Hinton, Chief Health, Safety and Environment (HSE) Officer
Uwem Ukpong was the only member of the Baker Hughes (BHGE) Executive Leadership who has had his job changed within the last
year.
Lorenzo Simonelli, President & CEO
Rod Christie, President & CEO, Turbomachinery & Process Solutions
BHGE is a $22Billion (annual revenue) enterprise, with headquarters in London and Houston, offering oilfield gear including blowout preventers, pumps, drilling, chemicals, other products and services for oil producers in 120 countries..
Neil Saunders, President & CEO, Oilfield Equipment Chief Integration Officer
Nicola Jannis, Chief Business Development Officer
Derek Mathieson, Chief Marketing and Technology Officer
Brian Worrell, Chief Financial Officer
Jody Markopoulos, Chief Engineering and Supply Chain OfficerWill Marsh, Chief Legal Officer
Ukpong Is The Only One Moved
Ukpong is on the third from left on the front row, sitting….Full picture, LEFT TO RIGHT: (back row) Nicola Jannis, Derek Mathieson, Matthias Heilmann, Neil Saunders, Harry Elsinga, (middle row) Brian Worrell, Maria Claudia Borras, Lorenzo Simonelli, Jack Hinton, Rod Christie, (front row) Jennifer Hartsock, Will Marsh, Uwem Ukpong and Jody Markopoulos.
3D Seismic Activity Commences Over Blocks W, S and E-21.Kosmos is acquiring three dimensional (3D) seismic data over Blocks W, S and E-21.The acquired data are expected to have been completely processed by end of 1H 2019, after which a drilling campaign will commence, around 2020.
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Zubairu is AFC's New CEO
Samaila is an Eisenhower Fellow and sits on the Eisenhower Fellowship's Global Network Council as well as the Advisory Council of the President of Nigeria. He is also an Advisory Board member for KSE Africa a leading Operations and Management provider of captive power plants in the mining sector of Botswana and Nigeria and is the Chairman of MDSA Nigeria Limited, a fintech company providing micro loans across sub-Saharan Africa. Samaila is the Independent Director and Chairman Statutory Audit Committee as well as a member of Finance and General-Purpose and Establishment and Governance Committees of Aiico Insurance Plc. He also serves as an Independent Director and
Chairman of the Finance Committee for New Nigeria Commodity Marketing Company.
“Zubairu is a distinguished Fellow of the Institute of Chartered Accountants of Nigeria (ICAN) and an accomplished Infrastructure development finance specialist with over 29 years of professional experience”, the AFC says of his Cee Vee. “He is the CEO of Africapital Management Limited, in which position he established a joint venture with Old Mutual 's Afr ican Infrastructure Investment Managers (AIIM) to develop the N iger ian Inf rast ructure Investment Fund1(NIIF1) for infrastructure private equity across West Africa. He also recently coordinated the $300Million acquisition of
Eko Electricity Distribution Plc.
“I look forward to joining AFC's highly reputable team, and together, enhancing AFC's position as an extremely capable project partner, able to deliver sustainable development projects across the Continent”, Zubairu says. ” I am confident of AFC's market position as being best placed to surmount Africa's multi-sectoral infrastructure challenges”.
The 10 year old AFC is largely an Infrastructure funder and has been significantly involved in enabling E&P and power projects across the continent.
“He was the pioneer CFO for Dangote Cement Plc, during which he launched Africa's largest syndicated project finance facility for a local corporate to actualize the Obajana Cement project and managed the watershed unbundling of Dangote Industries Limited to listed subsidiaries on the Nigerian Stock Exchange. He has led finance transactions for over US$3 billion covering: green-field project finance facilities, acquisitions, corporate transformation initiatives, privatization and equity capital market transactions.
The appointment follows a six-month search process that saw over 100 candidates apply for the role. “Mr. Zubairu will formally take the post imminently”, the company says.
Africa Finance Corporation has announced the appointment of S a m a i l a D . Z u b a i r u a s t h e
rdCorporation's 3 President & Chief Executive Officer, succeeding Andrew Alli who comes to the end of his tenure, having successfully served in the position since 2008.
EQ/GUINEA: JUNE 2018 ACTIVITY UPDATE
Kosmos is working on well optimization in the Ceiba field and the Okume complex. The experiment is working; production has increased marginally. The plan is to follow up with waterflood optimisation, from the later part of the third quarter 2018, through to late 2019. The company will install Electrical Submersible Pump from later 2018, but only for a limited time.
Ceiba and Okume Will Soon Be Flooded
Plans for A Natural Gas Megahub at Punto EuropaGovernment plans to construct a natural gas megahub project, consisting of interlinked production, aggregation and processing facilities offshore and onshore, tieing to existing facilities. Noble Energy will supply gas from Aseng and Alen fields in Block I/O to the Punta Europa gas complex, which includes the Malabo power station, AMPCO methanol plant and Equatorial Guinea LNG plant. The molecules will replace some of the gas production lost as the Alba field declines.
Royalgate, operator of Block Z, will have its licence to the block revoked for non performance. The company was granted extension to October 2016, four years after it signed the Production Sharing Contract. Proposed drilling in April 2016, but did nothing.
Royalgate Will Lose…
Government has approved plans for
XOM Has Zafiro Until Later Than 2023
the Zafiro field expansion. ExxonMobil's operating licence is likely to be approved beyond its renewal date in 2023.
Noble Energy's fourth quarter 2017 report indicates 148,000BOEPD (gross) for both Aseng and Alen Fields. Crude Oil accounts for 44,000BOPD of this figure, which means that production has reduced, slightly, from 2016 to 2017.
Alen and Aseng Produced 148,000 BOEPD in 2017
Block R Licence Close to Expiry
The Block R licence (which contains the Fortuna gas discovery) is due to expire at the end of 2018. Ophir Energy is in active discussions to secure a partner but the status of the financing and timing of FID were not clear as of mid July 2018. “Depending on how these discussions progress, the carrying value of the Block R licence ( $604Million as at 31 Dec 2017) may need to be reassessed as part of our interim reporting process”.
Kosmos Energy had completed 28% of a block wide three dimensional (3D) seismic survey in Block 24. The survey commenced in May 2018. Kosmos only farmed into the Block in February 2018.
Kosmos Shoots Ahead in Block 24
Ukpong was previously BHGE's Chief Integration Officer. He took over from Belgacem Chariag, who “resigned from his position as Chief Global Operations Officer of the Company and all other officer positions with the Company and its subsidiaries”.
The Baker Hughes executive leadership team comprises
Ukpong is a graduate of the Federal University of Technology in Owerri, in the east of Nigeria, and Heriot-Watt in Edinburgh, Scotland.
Maria Claudia Borras, President & CEO, Oilfield Services
Harry Elsinga, Chief Human Resources Officer
Uwem Ukpong, Chief Global Operations Officer
Jennifer Hartsock, Chief Information OfficerMatthias Heilmann, President & CEO, Digital Solutions Jack Hinton, Chief Health, Safety and Environment (HSE) Officer
Uwem Ukpong was the only member of the Baker Hughes (BHGE) Executive Leadership who has had his job changed within the last
year.
Lorenzo Simonelli, President & CEO
Rod Christie, President & CEO, Turbomachinery & Process Solutions
BHGE is a $22Billion (annual revenue) enterprise, with headquarters in London and Houston, offering oilfield gear including blowout preventers, pumps, drilling, chemicals, other products and services for oil producers in 120 countries..
Neil Saunders, President & CEO, Oilfield Equipment Chief Integration Officer
Nicola Jannis, Chief Business Development Officer
Derek Mathieson, Chief Marketing and Technology Officer
Brian Worrell, Chief Financial Officer
Jody Markopoulos, Chief Engineering and Supply Chain OfficerWill Marsh, Chief Legal Officer
Ukpong Is The Only One Moved
Ukpong is on the third from left on the front row, sitting….Full picture, LEFT TO RIGHT: (back row) Nicola Jannis, Derek Mathieson, Matthias Heilmann, Neil Saunders, Harry Elsinga, (middle row) Brian Worrell, Maria Claudia Borras, Lorenzo Simonelli, Jack Hinton, Rod Christie, (front row) Jennifer Hartsock, Will Marsh, Uwem Ukpong and Jody Markopoulos.
3D Seismic Activity Commences Over Blocks W, S and E-21.Kosmos is acquiring three dimensional (3D) seismic data over Blocks W, S and E-21.The acquired data are expected to have been completely processed by end of 1H 2019, after which a drilling campaign will commence, around 2020.
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The production is expected to be routed to already existing infrastructures and then shipped to El H a m r a Te r m i n a l t h r o u g h e x i s t i n g p i p e l i n e s , a f t e r Development Plan approval by Ministry of Petroleum and Mineral Resources.
Italian giant ENI has announced a second light oil discovery on the B1-X exploration prospect located in South West Meleiha
license, in the Egyptian Western Desert, some 130 Km North of the oasis of Siwa.
The well has been opened to production in the Dessouky sandstones and delivered 5,130 barrels of oil per day (BOPD) of light oil (37° API) with low associated gas.
The well is the second one drilled by company to explore the deep geological sequences of the Faghur Basin. SWM B1-X has been drilled 7 km away from the first discovery (SWM A2-X), to a total depth of 4,523 meters and encountered 35 meters net of light oil in the Paleozoic sandstones of Dessouky Formation of Carboniferous age and in the Alam El Bueib sandstones of Cretaceous Age.
E N I , t h r o u g h i t s s u b s i d i a r y International Egyptian Oil Company (IEOC), holds a 100% stake in South West Meleiha license. IEOC through its Operating Company Agiba, which is equally held by IEOC and the
Egyptian General Petroleum Corporation (EGPC), currently produces 55,000 barrels of oil equivalent per day from the Egyptian Western Desert.
The discovery on B-1X confirms the high exploration and production potential of deep geological sequences of the Faghur Basin. ENI plans, in the near term, the drilling of other exploratory prospects located nearby the A2-
X and B-1X discoveries to consolidate what can result as a new productive area for ENI in Egypt.
Following testing, a downhole completion assembly to Amdigh-1 is expected to be installed so as to enable the well to function as a production well in the future.
Preliminary results based on the interpretation of the available data set (which includes wireline logs, fluid sampling and pressure data) indicate that the well has encountered a total estimated nine (9) metres of net oil bearing reservoir sandstones in the E1 and E5 reservoir units within the primary Eocene Sokor Alternances objective. Wireline logs indicate the reservoir properties to be good quality and the available data indicates light oil equivalent to the Amdigh-1, and consistent with offset wells along trend and the depth/API trend observed across the basin. Oil
samples from the E1 and E5 reservoir units have been taken and returned to surface using wireline testing equipment.
Consistent with standard industry practice in the ARB, a production test is expected to be performed on the well as part of a batch campaign using
The GW 215 rig will now mobilise to the Eridal-1 well site, located on the R3 portion of the R3/R4 PSC Area, 6km from Amdigh-1, where it will prepare to spud the Eridal-1 exploration well. Following the exercise of this option, Savannah will continue to have options for a further five wells, each of which can be exercised individually at Savannah's discretion.
The well, which took a total of 14 days to reach target depth, was drilled by the GW 215 Rig to a total measured depth of 2,460m, and encountered the main objective targets at, or near, their prognosed depths.
report until its expected well test programme has been completed.Following the successful results of the three exploration wells drilled to date on the R3 East area, Savannah has elected to exercise the first of the six individual options under its contract with Great Wall Drilling Company Niger SARL.
Savannah does not expect to provide a discovered resource and volumes Savannah Petroleum has made the third
consecutive oil discovery in Niger Republic. Kunama-1 exploration well is the third oil
find on the company's maiden exploration campaign in the R3 portion of the R3/R4 PSC Area in the Agadem Rift Basin (“ARB”), South East Niger, after Bushiya-1 and Amdigh-1.
a dedicated test rig. This extended well testing programme is currently being planned for later in the year and the Company intends to provide further details in due course.
SDX Energy has successfully run a production test of its SD-4X appraisal well at South Disouq, Egypt (SDX 55%
working interest and operator). The well flowed at a maximum rate of 30.4MMscfd during an eight hour clean up period and was then shut in for eight hours, during which time no pressure decline was observed, the company reported on July 16, 2018. Following this, by varying choke sizes
the well was flowed for two successive 12-hour periods at average rates of 5.4MMscfd, 8.6MMscfd respectively and one extended flow period of 24-hours at an average rate of 10.5MMscfd. The SD-4X well was subsequently shut in for a pressure build-up of 120 hours. At completion of the build-up the downhole pressure gauges will be retrieved and the well suspended prior to being connected to the local production
facilities. During testing a total of 23.38MMscf of conventional natural gas was produced. The company says it intends to connect this well to infrastructure located adjacent to our SD-1X discovery over the coming months. “We are targeting a late Q4 2018 start-up of production in South Disouq and this well test result provides us with additional confidence to deliver on our planned plateau rate of 50MMscfd of conventional natural gas.
EGYPT
NIGER REPUBLIC
ENI Flows > 5000BOPD in New Find In Faghur Vol 19, No 6, July 2018
reportwww.africaoilgasreport.com
©Copyright 2018 AFRICA OIL+GAS REPORT
In Association with
NIGERIA RIG ACTIVITY AS OF EARLY JULY 2018Operator /RIG RIG Owner Current Loca�on Opera�ons Terrain
AMNI
ADRIATIC I SHELF DRILLING Okoro Ac�ve Offshore
CONOIL
Majes�c Depthwize Ango to be demobbed Swamp
Monarch Depthwize Toju Eja Nla On loca�on Offshore
CHEVRON NIG (SHELF)
OES Respect OES Energy Services Dibi Ac�ve Onshore/Swamp
Resourceful Shelf Drilling Sonam Ac�ve Offshore
CHEVRON NIG (DEEPWATER)
ENSCO-DS4 ODENL Agbami Ac�ve Deepwater
ELCREST
OES Teamwork OES Energy Services Opuama Ac�ve Swamp
Deutag T 57 Deutag Ubima On Loca�on Land
EXXONMOBIL
Trident 14 Shelf Drilling Adua A Ac�ve Offshore
MONI PULO
Imperial Depthwize Inaha Ac�ve Offshore
NAOC
HPEB 120 ZPEB Oleh Ac�ve Land
OES Integrity OES Onne Pre-Move Offshore
HI LONG 19 SAP HI LONG
NDPR
ACME - 5 ACME Ogbele Ac�ve (NPT Issue) Land
ND-WESTERN
HPEB 187 ZPEB Ughelli Ac�ve Land
SEEPCO
Bogel Durga 1 Bri�sh Oil&Gas Expl Okwuibome Ac�ve Land
Bogel Durga 2 Bri�sh Oil&Gas Expl Okwuibome Ac�ve Land
Bogel Durga 3 Bri�sh Oil&Gas Expl Agu Ac�ve Land
Bogel Durga 4 Bri�sh Oil&Gas Expl Agu Ac�ve Land
Bogel Durga 5 Bri�sh Oil&Gas Expl Akubo Ac�ve Land
Bogel Durga 6 Bri�sh Oil&Gas Expl Akara Ac�ve Land
Bogel Durga 7 Bri�sh Oil&Gas Expl Okwuibome Ac�ve Land
SNEPCO
ENSCO-DS-10 ODENL Bonga Ac�ve (well
Interven�on)
Deepwater
SPDC
BR-301 SDF Dodo North Ac�ve Swamp
HI LONG 27 SAP HI LONG Epu Ac�ve Land
TOTAL (DEEPWATER)
West Jupiter Seadrill Akpo Ac�ve Deepwater
TOTAL (SHELF)
Bal�c 1 Shelf Drilling Ofon Ac�ve Offshore
Frigg Borr Drilling Ayama Ac�ve Offshore
SDX to Hook Up SD-4X After Successful TestthProduction starts in South Disouq in 4 Qtr 2018
Savannah Competes A Hat Trick In Agadem RiftA fourth well, Eridal-1, almost on spud
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The production is expected to be routed to already existing infrastructures and then shipped to El H a m r a Te r m i n a l t h r o u g h e x i s t i n g p i p e l i n e s , a f t e r Development Plan approval by Ministry of Petroleum and Mineral Resources.
Italian giant ENI has announced a second light oil discovery on the B1-X exploration prospect located in South West Meleiha
license, in the Egyptian Western Desert, some 130 Km North of the oasis of Siwa.
The well has been opened to production in the Dessouky sandstones and delivered 5,130 barrels of oil per day (BOPD) of light oil (37° API) with low associated gas.
The well is the second one drilled by company to explore the deep geological sequences of the Faghur Basin. SWM B1-X has been drilled 7 km away from the first discovery (SWM A2-X), to a total depth of 4,523 meters and encountered 35 meters net of light oil in the Paleozoic sandstones of Dessouky Formation of Carboniferous age and in the Alam El Bueib sandstones of Cretaceous Age.
E N I , t h r o u g h i t s s u b s i d i a r y International Egyptian Oil Company (IEOC), holds a 100% stake in South West Meleiha license. IEOC through its Operating Company Agiba, which is equally held by IEOC and the
Egyptian General Petroleum Corporation (EGPC), currently produces 55,000 barrels of oil equivalent per day from the Egyptian Western Desert.
The discovery on B-1X confirms the high exploration and production potential of deep geological sequences of the Faghur Basin. ENI plans, in the near term, the drilling of other exploratory prospects located nearby the A2-
X and B-1X discoveries to consolidate what can result as a new productive area for ENI in Egypt.
Following testing, a downhole completion assembly to Amdigh-1 is expected to be installed so as to enable the well to function as a production well in the future.
Preliminary results based on the interpretation of the available data set (which includes wireline logs, fluid sampling and pressure data) indicate that the well has encountered a total estimated nine (9) metres of net oil bearing reservoir sandstones in the E1 and E5 reservoir units within the primary Eocene Sokor Alternances objective. Wireline logs indicate the reservoir properties to be good quality and the available data indicates light oil equivalent to the Amdigh-1, and consistent with offset wells along trend and the depth/API trend observed across the basin. Oil
samples from the E1 and E5 reservoir units have been taken and returned to surface using wireline testing equipment.
Consistent with standard industry practice in the ARB, a production test is expected to be performed on the well as part of a batch campaign using
The GW 215 rig will now mobilise to the Eridal-1 well site, located on the R3 portion of the R3/R4 PSC Area, 6km from Amdigh-1, where it will prepare to spud the Eridal-1 exploration well. Following the exercise of this option, Savannah will continue to have options for a further five wells, each of which can be exercised individually at Savannah's discretion.
The well, which took a total of 14 days to reach target depth, was drilled by the GW 215 Rig to a total measured depth of 2,460m, and encountered the main objective targets at, or near, their prognosed depths.
report until its expected well test programme has been completed.Following the successful results of the three exploration wells drilled to date on the R3 East area, Savannah has elected to exercise the first of the six individual options under its contract with Great Wall Drilling Company Niger SARL.
Savannah does not expect to provide a discovered resource and volumes Savannah Petroleum has made the third
consecutive oil discovery in Niger Republic. Kunama-1 exploration well is the third oil
find on the company's maiden exploration campaign in the R3 portion of the R3/R4 PSC Area in the Agadem Rift Basin (“ARB”), South East Niger, after Bushiya-1 and Amdigh-1.
a dedicated test rig. This extended well testing programme is currently being planned for later in the year and the Company intends to provide further details in due course.
SDX Energy has successfully run a production test of its SD-4X appraisal well at South Disouq, Egypt (SDX 55%
working interest and operator). The well flowed at a maximum rate of 30.4MMscfd during an eight hour clean up period and was then shut in for eight hours, during which time no pressure decline was observed, the company reported on July 16, 2018. Following this, by varying choke sizes
the well was flowed for two successive 12-hour periods at average rates of 5.4MMscfd, 8.6MMscfd respectively and one extended flow period of 24-hours at an average rate of 10.5MMscfd. The SD-4X well was subsequently shut in for a pressure build-up of 120 hours. At completion of the build-up the downhole pressure gauges will be retrieved and the well suspended prior to being connected to the local production
facilities. During testing a total of 23.38MMscf of conventional natural gas was produced. The company says it intends to connect this well to infrastructure located adjacent to our SD-1X discovery over the coming months. “We are targeting a late Q4 2018 start-up of production in South Disouq and this well test result provides us with additional confidence to deliver on our planned plateau rate of 50MMscfd of conventional natural gas.
EGYPT
NIGER REPUBLIC
ENI Flows > 5000BOPD in New Find In Faghur Vol 19, No 6, July 2018
reportwww.africaoilgasreport.com
©Copyright 2018 AFRICA OIL+GAS REPORT
In Association with
NIGERIA RIG ACTIVITY AS OF EARLY JULY 2018Operator /RIG RIG Owner Current Loca�on Opera�ons Terrain
AMNI
ADRIATIC I SHELF DRILLING Okoro Ac�ve Offshore
CONOIL
Majes�c Depthwize Ango to be demobbed Swamp
Monarch Depthwize Toju Eja Nla On loca�on Offshore
CHEVRON NIG (SHELF)
OES Respect OES Energy Services Dibi Ac�ve Onshore/Swamp
Resourceful Shelf Drilling Sonam Ac�ve Offshore
CHEVRON NIG (DEEPWATER)
ENSCO-DS4 ODENL Agbami Ac�ve Deepwater
ELCREST
OES Teamwork OES Energy Services Opuama Ac�ve Swamp
Deutag T 57 Deutag Ubima On Loca�on Land
EXXONMOBIL
Trident 14 Shelf Drilling Adua A Ac�ve Offshore
MONI PULO
Imperial Depthwize Inaha Ac�ve Offshore
NAOC
HPEB 120 ZPEB Oleh Ac�ve Land
OES Integrity OES Onne Pre-Move Offshore
HI LONG 19 SAP HI LONG
NDPR
ACME - 5 ACME Ogbele Ac�ve (NPT Issue) Land
ND-WESTERN
HPEB 187 ZPEB Ughelli Ac�ve Land
SEEPCO
Bogel Durga 1 Bri�sh Oil&Gas Expl Okwuibome Ac�ve Land
Bogel Durga 2 Bri�sh Oil&Gas Expl Okwuibome Ac�ve Land
Bogel Durga 3 Bri�sh Oil&Gas Expl Agu Ac�ve Land
Bogel Durga 4 Bri�sh Oil&Gas Expl Agu Ac�ve Land
Bogel Durga 5 Bri�sh Oil&Gas Expl Akubo Ac�ve Land
Bogel Durga 6 Bri�sh Oil&Gas Expl Akara Ac�ve Land
Bogel Durga 7 Bri�sh Oil&Gas Expl Okwuibome Ac�ve Land
SNEPCO
ENSCO-DS-10 ODENL Bonga Ac�ve (well
Interven�on)
Deepwater
SPDC
BR-301 SDF Dodo North Ac�ve Swamp
HI LONG 27 SAP HI LONG Epu Ac�ve Land
TOTAL (DEEPWATER)
West Jupiter Seadrill Akpo Ac�ve Deepwater
TOTAL (SHELF)
Bal�c 1 Shelf Drilling Ofon Ac�ve Offshore
Frigg Borr Drilling Ayama Ac�ve Offshore
SDX to Hook Up SD-4X After Successful TestthProduction starts in South Disouq in 4 Qtr 2018
Savannah Competes A Hat Trick In Agadem RiftA fourth well, Eridal-1, almost on spud
Eland thinks that the problem is a no brainer.Eland says it has experienced an increased water-cut from Opuama-7 “and hence we are taking remedial action to rectify this. A re-entry of Opuama-7 is expected to take place during the coming month”.
he Opuama field is currently producing Tat approximately 25,000 BOPD (11,250BOPD net to Elcrest).
“Production is still expected to be in excess of 30,000BOPD (13,500BOPD net to Elcrest) from Opuama upon completion of the Opuama-10 well”.That problem is the major production
challenge onshore Niger Delta, especially in
fields that require natural water drive from down dip of the producing reservoirs, to deliver.
“This (output) includes both strings of production from Opuama-9 which has just
been brought onstream at higher levels than anticipated”, says George Maxwell, CEO Eland.
It is “an all-time record for OML 40”, says Eland Oil and Gas, the technical arm of the IJV Elcrest, which has a joint venture with the Nigerian state owned NPDC on the asset.
NIGERIA
IVORY COAST
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reportwww.africaoilgasreport.com
©Copyright 2018AFRICA OIL+GAS REPORT
ANGOLA RIG ACTIVITY JULY 2018ANGOLA RIG ACTIVITY, JULY 2018
“Kalimba-1 NFW proved a 23 meters net oil pay of high quality oil (33° API) contained i n U p p e r M i o c e n e sandstones with excellent petrophysical properties. The data acquired in Kalimba-1 NFW indicate a production
capacity in excess of 5,000 barrels of oil per day”, ENI remarks. Italian explorer ENI has announced a new oil
discovery in Block 15/06, in the Kalimba exploration prospect, in Angola's deep
offshore. “The new discovery is estimated to contain between 230 and 300 Million barrels of light oil in place”, the company declares.
The company says that the discovery opens new opportunities for oil exploration in the Southern part of Block 15/06, so far considered mainly gas prone, thus creating new chances for additional potential value in the block.
The next start-ups in block 15/06 this year will be the Upper Miocene, in the East Hub, and the Subsea Boosting System for the Mpungi field, while the Vandumbu field, that will be connected to the West Hub, will start production at the end of 2018, ahead of plan. These start-ups will add further 30,000 barrels of oil to the overall production from Block 15/06, which in 2019 will exceed 170,000 BOPD gross”.
ENI currently outputs an equity production of about 155,000 barrels of oil equivalent per day in Angola.
“The Joint Venture, composed by ENI
(operator, 36.8421%), Sonangol P&P (36.8421%) and SSI Fifteen Limited (26.3158%), will work to appraise the updip of the discovery and will start the studies to fast track its development”.
The Kalimba-1 NFW well, which has led to the discovery, is located at approximately 150 kilometers off the coast and 50 kilometers
South East from the Armada Olombendo FPSO (East Hub). The well was drilled by the West Gemini drillship in a water depth of 458 meters and reached a total depth of 1901 meters.
“In Block 15/06 the two oil development projects, West hub and East Hub, are currently producing about 150.000 barrels of oil per day (100%). ENI is also operator of Cabinda Norte Block, located onshore Angola.
Tullow Plans 2D Survey On Its New CI Blocks in 2019
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ANGOLAENI Claims 300Million Barrels in New Angolan Discovery
Opens up the southern part of 15/06, operator saysBy Sully Manope, in Luanda
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RAGHANA Ghana's Rig Count Increases
ullow has contracted a second rig, the TStena Forth, a sixth-generation drillship, to work on its drilling
programme in Ghana. The rig is contracted for an initial three-well campaign with flexible extension options and is due to start drilling in October 2018. This additional rig capacity will enable Tullow to carry out simultaneous drilling and completion activity, allowing the
tie-in of new wells to be brought forward. The deployment of the second rig is expected to be managed within the existing 2018 Ghana capex budget as the first rig, the Maersk Venturer, began drilling later than initially planned. The Maersk Venturer began operations in Ghana in March 2018 and three wells have been drilled in the first half of the year; a
production well in the Ntomme area of TEN and two production wells at Jubilee. The rig is now being prepared for well completions, and the Ntomme well will be brought on stream in August 2018. The Maersk Venturer will then complete the two Jubilee production wells and a previously drilled Jubilee water injection well and it is anticipated that the Stena Forth rig will initially focus on drilling new wells
Operator/RIG RIG Owner Current Location Operation Terrain
ExxonMobil
Deutag KCA Deutag KizombaB Production/Development Deepwater
Deutag KCA Deutag KizombaA Production Deepwater
TOTAL
Skyros Ocean Rig Block 32 Development Deepwater
Ensco DS-8 Ensco Block 17 Development Deepwater
Total No of Ac�ve Rigs 4
This survey was completed in May 2018 and the data will be used to optimise the location
of a 2D seismic survey planned for 2019. ullow's work programme across its new Tonshore blocks in Cote d'Ivoire began in early April 2018 with a full tensor gravity
gradiometry survey covering 8,600 sq km.
Tullow has recently signed a farm-down agreement for a 30% interest in all seven onshore licences (CI-301, CI-302, CI-518, CI-519, CI-520 CI-521 and CI-522) to Cairn Energy PLC, subject to obtaining the necessary
Government approvals. This farm-down will leave Tullow with a 60% operated interest in each licence with the majority of the pre-drilling exploration costs carried.
With Well 9, Opuama Shoots To 25,000Increased water cut at Op 7 Warns of a Looming Challenge
Officials say that the suspicion around an imminent deepwater bid round is borne out of the fact that the consultants have been concentrating more on deepwater leases. “In order to assess the potential of open, non operated acreages, you have to tie your data to offsets in known, operated acreages,” say MoP officials. “There is nothing to worry about.”
epartment of Petroleum Resources, DNigeria's regulatory agency, is c o n s u l t i n g w i t h s u b s u r f a c e
companies for evaluation of the country's open acreages, using the principle of multi-client survey and processing.
“There is no likely bid round until after the March 2019 elections”, Ministry officials explain. “But we have to be prepared. There has to be a way of ranking the value of assets and determining signature bonus and you need to keep updating your data”.
Ministry of Petroleum (MoP) officials say the data will be used to update the economics of about forty open acreages, but ranking geoscientists in international oil companies operating in the country, who spoke off record to Africa Oil+Gas Report, say they suspect that the agency is forcing them into deepwater multiclient survey because it
wants to organise a deepwater bid round in the next few months.
One official argued that the signature bonus for all marginal fields, for example, is flat and “that's not fair”. He contends: “How can you ask a company which has won a 40Million barrel field to pay the same amount as a company which is awarded a 5Million barrel
field?”, he asks. “That's going to change”.
Asked who will pay for these services, officials respond; “that's a problem we are dealing with, but we know that the investment is worthwhile”.
DPR 's Multiclient Acreage Evaluation “Is Not What You Think”
Eland thinks that the problem is a no brainer.Eland says it has experienced an increased water-cut from Opuama-7 “and hence we are taking remedial action to rectify this. A re-entry of Opuama-7 is expected to take place during the coming month”.
he Opuama field is currently producing Tat approximately 25,000 BOPD (11,250BOPD net to Elcrest).
“Production is still expected to be in excess of 30,000BOPD (13,500BOPD net to Elcrest) from Opuama upon completion of the Opuama-10 well”.That problem is the major production
challenge onshore Niger Delta, especially in
fields that require natural water drive from down dip of the producing reservoirs, to deliver.
“This (output) includes both strings of production from Opuama-9 which has just
been brought onstream at higher levels than anticipated”, says George Maxwell, CEO Eland.
It is “an all-time record for OML 40”, says Eland Oil and Gas, the technical arm of the IJV Elcrest, which has a joint venture with the Nigerian state owned NPDC on the asset.
NIGERIA
IVORY COAST
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 822 AFRICA OIL + GAS REPORT J U LY 2 0 1 8 23
Vol 19, No 6, July 2018
reportwww.africaoilgasreport.com
©Copyright 2018AFRICA OIL+GAS REPORT
ANGOLA RIG ACTIVITY JULY 2018ANGOLA RIG ACTIVITY, JULY 2018
“Kalimba-1 NFW proved a 23 meters net oil pay of high quality oil (33° API) contained i n U p p e r M i o c e n e sandstones with excellent petrophysical properties. The data acquired in Kalimba-1 NFW indicate a production
capacity in excess of 5,000 barrels of oil per day”, ENI remarks. Italian explorer ENI has announced a new oil
discovery in Block 15/06, in the Kalimba exploration prospect, in Angola's deep
offshore. “The new discovery is estimated to contain between 230 and 300 Million barrels of light oil in place”, the company declares.
The company says that the discovery opens new opportunities for oil exploration in the Southern part of Block 15/06, so far considered mainly gas prone, thus creating new chances for additional potential value in the block.
The next start-ups in block 15/06 this year will be the Upper Miocene, in the East Hub, and the Subsea Boosting System for the Mpungi field, while the Vandumbu field, that will be connected to the West Hub, will start production at the end of 2018, ahead of plan. These start-ups will add further 30,000 barrels of oil to the overall production from Block 15/06, which in 2019 will exceed 170,000 BOPD gross”.
ENI currently outputs an equity production of about 155,000 barrels of oil equivalent per day in Angola.
“The Joint Venture, composed by ENI
(operator, 36.8421%), Sonangol P&P (36.8421%) and SSI Fifteen Limited (26.3158%), will work to appraise the updip of the discovery and will start the studies to fast track its development”.
The Kalimba-1 NFW well, which has led to the discovery, is located at approximately 150 kilometers off the coast and 50 kilometers
South East from the Armada Olombendo FPSO (East Hub). The well was drilled by the West Gemini drillship in a water depth of 458 meters and reached a total depth of 1901 meters.
“In Block 15/06 the two oil development projects, West hub and East Hub, are currently producing about 150.000 barrels of oil per day (100%). ENI is also operator of Cabinda Norte Block, located onshore Angola.
Tullow Plans 2D Survey On Its New CI Blocks in 2019
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ANGOLAENI Claims 300Million Barrels in New Angolan Discovery
Opens up the southern part of 15/06, operator saysBy Sully Manope, in Luanda
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RAGHANA Ghana's Rig Count Increases
ullow has contracted a second rig, the TStena Forth, a sixth-generation drillship, to work on its drilling
programme in Ghana. The rig is contracted for an initial three-well campaign with flexible extension options and is due to start drilling in October 2018. This additional rig capacity will enable Tullow to carry out simultaneous drilling and completion activity, allowing the
tie-in of new wells to be brought forward. The deployment of the second rig is expected to be managed within the existing 2018 Ghana capex budget as the first rig, the Maersk Venturer, began drilling later than initially planned. The Maersk Venturer began operations in Ghana in March 2018 and three wells have been drilled in the first half of the year; a
production well in the Ntomme area of TEN and two production wells at Jubilee. The rig is now being prepared for well completions, and the Ntomme well will be brought on stream in August 2018. The Maersk Venturer will then complete the two Jubilee production wells and a previously drilled Jubilee water injection well and it is anticipated that the Stena Forth rig will initially focus on drilling new wells
Operator/RIG RIG Owner Current Location Operation Terrain
ExxonMobil
Deutag KCA Deutag KizombaB Production/Development Deepwater
Deutag KCA Deutag KizombaA Production Deepwater
TOTAL
Skyros Ocean Rig Block 32 Development Deepwater
Ensco DS-8 Ensco Block 17 Development Deepwater
Total No of Ac�ve Rigs 4
This survey was completed in May 2018 and the data will be used to optimise the location
of a 2D seismic survey planned for 2019. ullow's work programme across its new Tonshore blocks in Cote d'Ivoire began in early April 2018 with a full tensor gravity
gradiometry survey covering 8,600 sq km.
Tullow has recently signed a farm-down agreement for a 30% interest in all seven onshore licences (CI-301, CI-302, CI-518, CI-519, CI-520 CI-521 and CI-522) to Cairn Energy PLC, subject to obtaining the necessary
Government approvals. This farm-down will leave Tullow with a 60% operated interest in each licence with the majority of the pre-drilling exploration costs carried.
With Well 9, Opuama Shoots To 25,000Increased water cut at Op 7 Warns of a Looming Challenge
Officials say that the suspicion around an imminent deepwater bid round is borne out of the fact that the consultants have been concentrating more on deepwater leases. “In order to assess the potential of open, non operated acreages, you have to tie your data to offsets in known, operated acreages,” say MoP officials. “There is nothing to worry about.”
epartment of Petroleum Resources, DNigeria's regulatory agency, is c o n s u l t i n g w i t h s u b s u r f a c e
companies for evaluation of the country's open acreages, using the principle of multi-client survey and processing.
“There is no likely bid round until after the March 2019 elections”, Ministry officials explain. “But we have to be prepared. There has to be a way of ranking the value of assets and determining signature bonus and you need to keep updating your data”.
Ministry of Petroleum (MoP) officials say the data will be used to update the economics of about forty open acreages, but ranking geoscientists in international oil companies operating in the country, who spoke off record to Africa Oil+Gas Report, say they suspect that the agency is forcing them into deepwater multiclient survey because it
wants to organise a deepwater bid round in the next few months.
One official argued that the signature bonus for all marginal fields, for example, is flat and “that's not fair”. He contends: “How can you ask a company which has won a 40Million barrel field to pay the same amount as a company which is awarded a 5Million barrel
field?”, he asks. “That's going to change”.
Asked who will pay for these services, officials respond; “that's a problem we are dealing with, but we know that the investment is worthwhile”.
DPR 's Multiclient Acreage Evaluation “Is Not What You Think”
THOSE WHO ARE SELLINGA round up of some of the rich pickings in the petroleum rights sector
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AFRICA OIL + GAS REPORT J U LY 2 0 1 8 25
“By the regulations we are working with, all these assets we have renewed deserve to be renewed”, Ministry sources categorically tell Africa Oil+Gas Report. Shell requested for renewal of OMLs 11, 17, 20,
21, 22, 23, 25, 27, 28, 31, 32, 33, 35, 36, 43, 45 and 46. It succeeded in getting everything renewed, but for four acreages.
It would seem that such asset should not have been renewed, since Shell had demonstrated that it was going to sell them.
MoPR officials respond that Shell has paid all it needed to pay on every asset in the 30 years since they were last renewed and had extensive work programme on each of the acreages, so it would have been illegal to say no to renewal. Out of the 17 onshore acreages Shell submitted for renewal in late 2017, only three were revoked, at the provisional conclusion of the process in February 2018, “for lack of enough
work done over the last 10 years”.
“Shell can take us to court if we don't renew”, say ranking government officials in the Ministry, who also argue that, with state sponsored bid rounds not having happened in the country in the last 11 years, the frequent Shell lease divestments since 2008 “have benefited Nigerian companies”, who have purchased the stakes belonging to Shell and other international companies in these assets.
But how do you re-award an acreage to a company that had clearly shown it no longer wanted it? Why don't you put it in a bid basket so that the state gets the benefit of the licencing?
Officials in the Nigerian Ministry of Petroleum Resources are aware that the Anglo Dutch major Shell is inclined
to divest from several of the 17 onshore acreages it asked the government to renew.
Regarding OML 11, Shell has, for a while, been negotiating with buyers and has put a $1.2Billion invoice on the table.
OMLs 31, 33 and 36 were denied approval, while the government decided to cut OML 11 into three because it was too large. One of the three proposed “new” OMLs 11 will be approved for Shell, while the remaining two will be declared open acreages and included in the next state sponsored bid round, whenever that happens. Shell is contesting the decision on OML 11, arguing that “the proposal would unduly punish” the company, which had conducted operations in the asset “legally and in full compliance with the law”.
As it is, even during the process of renewal between late 2017 and mid-2018, Shell was actively negotiating on the side, with several parties, its divestment from two of the acreages in the renewal basket: Oil Mining Leases (OMLs) 11 and 25.
Shell was asked to pay $820Million for renewal of 14 of the 17 acreages it sought to renew, including OML 25, an acreage that Shell had put in a divestment round in 2014, but failed to sell because of a last minute NNPC invocation of its right of first refusal. Shell, NNPC and several parties have been involved in closing that transaction since that time.
But they have gone ahead to renew most of the licences anyway, because they think it is unlawful not to do so. The extant licences on the acreages were due to expire in 2019.
Shell had demanded $1.2Billion for the 45% of the stake belonging to Shell, TOTAL and ENI.
Shell has been unable to fully operate in the Ogoni-inhabited south central part of OML 11, which contains Yorla, Bodo and Bomu fields because the Movement for the Survival of the Ogoni People (MOSOP) had declared, since 1993, that the company was no longer welcome to operate in Ogoniland.
he Nigerian junior Transcorp has not Tdropped its plans to purchase the 45% stake belonging to Shell, TOTAL and ENI
in Oil Mining Leases (OMLs) 11 and 17.This is despite the fact that Nigerian regulatory authorities have withheld the renewal of OML 11 as it is and proposed to government to carve it into three.
Transcorp has reportedly put $300Million, some 30% of the transaction amount, on the table and is hoping to raise $700Million debit, but it needs an investment partner to fund the remaining $200Million.Last February, the government, with the
recommendation of the Department of Petroleum Resources, approved 13 of the 17 acreages that Shell had submitted for renewal. OML 17 was among those approved for renewal. Government however refused to renew OML 11 as is, citing its size and stating it would be carved into three.
Transcorp was in negotiation with Shell to purchase the stakes of the three European companies in the two OMLs, but the company's would-be funders backed out because they couldn't be assured that government would renew the licences, which are due to expire in 2019. The Department of Petroleum Resources
frequently moves to take over licences that
operators have not been able to operate for some time. It would be quite intriguing if the government renews a licence for Shell and Shell then turns around to sell it.Shell is however said to have encouraged Transcorp to keep looking for funders for acquisition of its stakes in these two acreages, as the challenges it has with government are “being managed”.
More certainty has returned to the industry since 2015 and things have been more upbeat in joint venture assets with NNPC, the Nigerian state hydrocarbon company, of which OMLs 86 and 88 are a part.
The San Ramon, California based major had stalled on progress on the sale since 2015, when it invited a number of Nigerian independents to offer bids for its stake in the tracts.
OML 86 contains the Apoi fields; the largest being North Apoi (3,500BOPD). It also holds Funiwa (1,300BPD), Sengana and Okubie fields. One recent discovery: Buko, straddles Shell Nigeria operated OPL 286 and is either on trend with, or even on the same structure as the HB field in OPL 286. OML 88 holds the Pennington and the Middleton fields, as well as the undeveloped condensate discovery, Chioma field.
hevron has re-activated its planned Cdivestment of its 40% in Oil Mining Leases (OMLs) 86 and 88, located in
shallow waters at the mouth of the current Niger Delta Basin.
Chevron's last asset sale, which involved Oil Mining Leases (OMLs) 52, 53 and 55, was mired in court proceedings, going all the way to the Nigerian supreme court. Nigerian independent Britannia U, sued Chevron and other
companies for not selling the stakes to her, as she was the highest bidder. If Chevron manages to sell off its holdings in OMLs 86 and 88, it would have managed to dispose off all the legacy shallow water assets it inherited when it purchased Texaco in 1999. Between 2013 and 2015, Chevron sold its stakes in OMLs 83 and 85, both of them former Texaco Nigeria assets. It's an irony though; Chevron's largest producing asset in Nigeria, Agbami, is from that turn- of –the- century merger with Texaco; this deepwater field alone produces 250,000BOPD, about half of Chevron's total operated crude oil production in Nigeria.
The State is Aware that Shell Will Sell Nigerian Acreages Upon Renewal
Chevron Returns To Sell OMLs 86 and 88
Transcorp Is Unfazed By Shell's Challenges in OMLs 11, 17 Shell is “managing” the government's move to carve OML 11 into three
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 824
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Boldrini Flanging Machine: Used for the production and manufacturing of standard and customised Flanges, Blind flanges and weldonets.
Davi steel Rolling Machine: Can be used for the rolling of Steel Plates - thickness ranges from 25 – 100mm. Rolled diameter ranges from 500mm to 3000mm.
Plasma Multimax Cutting Machine: This machine is basically used for the cutting of plates and also for creating designed patterns on plate. Shapes of complex configurations can automatically be formed. Maximum thickness of plate can be up to 100mm to 150mm.
Pipeline Leak Repair: This is a leak crude oil-pipeline repair project for Aiteo Exploration and Production company in one of their swamp area offshore base in River State creeks. Project was completed in 2013.
MGVOWGAS Fabrication Yard: Aerial view of our Administrative building, Fabrication Workshops, Warehouses, Security Building and Jetty.
Pressure Vessel: The Fabrication of Pressure vessel – 1200mm diameter by 2880mm in length for a process plant.
Large Stacking Area: Designated Pipe Stacking area is about 3000sqm in size within a land area of about 1.97Ha. It can conveniently stack about 1000tons of High grade steel pipes.
Class U - Manufacture of pressure vessels and filed sites control at location and
MG VOWGAS also has ISO: 9001:2015 Certification for quality management and OHSAS certification for Safety.
Class U2 - Manufacture of Class 1 and Class 2 pressure vessels and field sites control.
“MG VOWGAS LIMITED aims to be a force and significant player across the entire value chain of the oil & gas, Chemical, Petrochemical, Industrial and Construction industry in Africa and beyond”, Izomor wraps up.
Wth
e are the 6 fully indigenous oil service company in Nigeria to be ASME certified”, says Godwin Izomor, Group Managing Director of MG VOWGAS.
Other companies who have attained the prestigious American Society of Mechanical Engineers certification in Nigeria are: “Dorman Long, Nest Oil, Nigerdock, Aveon Offshore and Eldorado.” MG VOWGAS is ASME certified in the following: Class PP - Fabrication and assembly of pressure piping Class R - Metallic repairs and alterationsClass S - Manufacture and assembly of power boilers
MG VOWGAS: A Force In The Value Chain
THOSE WHO ARE SELLINGA round up of some of the rich pickings in the petroleum rights sector
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AFRICA OIL + GAS REPORT J U LY 2 0 1 8 25
“By the regulations we are working with, all these assets we have renewed deserve to be renewed”, Ministry sources categorically tell Africa Oil+Gas Report. Shell requested for renewal of OMLs 11, 17, 20,
21, 22, 23, 25, 27, 28, 31, 32, 33, 35, 36, 43, 45 and 46. It succeeded in getting everything renewed, but for four acreages.
It would seem that such asset should not have been renewed, since Shell had demonstrated that it was going to sell them.
MoPR officials respond that Shell has paid all it needed to pay on every asset in the 30 years since they were last renewed and had extensive work programme on each of the acreages, so it would have been illegal to say no to renewal. Out of the 17 onshore acreages Shell submitted for renewal in late 2017, only three were revoked, at the provisional conclusion of the process in February 2018, “for lack of enough
work done over the last 10 years”.
“Shell can take us to court if we don't renew”, say ranking government officials in the Ministry, who also argue that, with state sponsored bid rounds not having happened in the country in the last 11 years, the frequent Shell lease divestments since 2008 “have benefited Nigerian companies”, who have purchased the stakes belonging to Shell and other international companies in these assets.
But how do you re-award an acreage to a company that had clearly shown it no longer wanted it? Why don't you put it in a bid basket so that the state gets the benefit of the licencing?
Officials in the Nigerian Ministry of Petroleum Resources are aware that the Anglo Dutch major Shell is inclined
to divest from several of the 17 onshore acreages it asked the government to renew.
Regarding OML 11, Shell has, for a while, been negotiating with buyers and has put a $1.2Billion invoice on the table.
OMLs 31, 33 and 36 were denied approval, while the government decided to cut OML 11 into three because it was too large. One of the three proposed “new” OMLs 11 will be approved for Shell, while the remaining two will be declared open acreages and included in the next state sponsored bid round, whenever that happens. Shell is contesting the decision on OML 11, arguing that “the proposal would unduly punish” the company, which had conducted operations in the asset “legally and in full compliance with the law”.
As it is, even during the process of renewal between late 2017 and mid-2018, Shell was actively negotiating on the side, with several parties, its divestment from two of the acreages in the renewal basket: Oil Mining Leases (OMLs) 11 and 25.
Shell was asked to pay $820Million for renewal of 14 of the 17 acreages it sought to renew, including OML 25, an acreage that Shell had put in a divestment round in 2014, but failed to sell because of a last minute NNPC invocation of its right of first refusal. Shell, NNPC and several parties have been involved in closing that transaction since that time.
But they have gone ahead to renew most of the licences anyway, because they think it is unlawful not to do so. The extant licences on the acreages were due to expire in 2019.
Shell had demanded $1.2Billion for the 45% of the stake belonging to Shell, TOTAL and ENI.
Shell has been unable to fully operate in the Ogoni-inhabited south central part of OML 11, which contains Yorla, Bodo and Bomu fields because the Movement for the Survival of the Ogoni People (MOSOP) had declared, since 1993, that the company was no longer welcome to operate in Ogoniland.
he Nigerian junior Transcorp has not Tdropped its plans to purchase the 45% stake belonging to Shell, TOTAL and ENI
in Oil Mining Leases (OMLs) 11 and 17.This is despite the fact that Nigerian regulatory authorities have withheld the renewal of OML 11 as it is and proposed to government to carve it into three.
Transcorp has reportedly put $300Million, some 30% of the transaction amount, on the table and is hoping to raise $700Million debit, but it needs an investment partner to fund the remaining $200Million.Last February, the government, with the
recommendation of the Department of Petroleum Resources, approved 13 of the 17 acreages that Shell had submitted for renewal. OML 17 was among those approved for renewal. Government however refused to renew OML 11 as is, citing its size and stating it would be carved into three.
Transcorp was in negotiation with Shell to purchase the stakes of the three European companies in the two OMLs, but the company's would-be funders backed out because they couldn't be assured that government would renew the licences, which are due to expire in 2019. The Department of Petroleum Resources
frequently moves to take over licences that
operators have not been able to operate for some time. It would be quite intriguing if the government renews a licence for Shell and Shell then turns around to sell it.Shell is however said to have encouraged Transcorp to keep looking for funders for acquisition of its stakes in these two acreages, as the challenges it has with government are “being managed”.
More certainty has returned to the industry since 2015 and things have been more upbeat in joint venture assets with NNPC, the Nigerian state hydrocarbon company, of which OMLs 86 and 88 are a part.
The San Ramon, California based major had stalled on progress on the sale since 2015, when it invited a number of Nigerian independents to offer bids for its stake in the tracts.
OML 86 contains the Apoi fields; the largest being North Apoi (3,500BOPD). It also holds Funiwa (1,300BPD), Sengana and Okubie fields. One recent discovery: Buko, straddles Shell Nigeria operated OPL 286 and is either on trend with, or even on the same structure as the HB field in OPL 286. OML 88 holds the Pennington and the Middleton fields, as well as the undeveloped condensate discovery, Chioma field.
hevron has re-activated its planned Cdivestment of its 40% in Oil Mining Leases (OMLs) 86 and 88, located in
shallow waters at the mouth of the current Niger Delta Basin.
Chevron's last asset sale, which involved Oil Mining Leases (OMLs) 52, 53 and 55, was mired in court proceedings, going all the way to the Nigerian supreme court. Nigerian independent Britannia U, sued Chevron and other
companies for not selling the stakes to her, as she was the highest bidder. If Chevron manages to sell off its holdings in OMLs 86 and 88, it would have managed to dispose off all the legacy shallow water assets it inherited when it purchased Texaco in 1999. Between 2013 and 2015, Chevron sold its stakes in OMLs 83 and 85, both of them former Texaco Nigeria assets. It's an irony though; Chevron's largest producing asset in Nigeria, Agbami, is from that turn- of –the- century merger with Texaco; this deepwater field alone produces 250,000BOPD, about half of Chevron's total operated crude oil production in Nigeria.
The State is Aware that Shell Will Sell Nigerian Acreages Upon Renewal
Chevron Returns To Sell OMLs 86 and 88
Transcorp Is Unfazed By Shell's Challenges in OMLs 11, 17 Shell is “managing” the government's move to carve OML 11 into three
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 824
AD
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IA
L
Boldrini Flanging Machine: Used for the production and manufacturing of standard and customised Flanges, Blind flanges and weldonets.
Davi steel Rolling Machine: Can be used for the rolling of Steel Plates - thickness ranges from 25 – 100mm. Rolled diameter ranges from 500mm to 3000mm.
Plasma Multimax Cutting Machine: This machine is basically used for the cutting of plates and also for creating designed patterns on plate. Shapes of complex configurations can automatically be formed. Maximum thickness of plate can be up to 100mm to 150mm.
Pipeline Leak Repair: This is a leak crude oil-pipeline repair project for Aiteo Exploration and Production company in one of their swamp area offshore base in River State creeks. Project was completed in 2013.
MGVOWGAS Fabrication Yard: Aerial view of our Administrative building, Fabrication Workshops, Warehouses, Security Building and Jetty.
Pressure Vessel: The Fabrication of Pressure vessel – 1200mm diameter by 2880mm in length for a process plant.
Large Stacking Area: Designated Pipe Stacking area is about 3000sqm in size within a land area of about 1.97Ha. It can conveniently stack about 1000tons of High grade steel pipes.
Class U - Manufacture of pressure vessels and filed sites control at location and
MG VOWGAS also has ISO: 9001:2015 Certification for quality management and OHSAS certification for Safety.
Class U2 - Manufacture of Class 1 and Class 2 pressure vessels and field sites control.
“MG VOWGAS LIMITED aims to be a force and significant player across the entire value chain of the oil & gas, Chemical, Petrochemical, Industrial and Construction industry in Africa and beyond”, Izomor wraps up.
Wth
e are the 6 fully indigenous oil service company in Nigeria to be ASME certified”, says Godwin Izomor, Group Managing Director of MG VOWGAS.
Other companies who have attained the prestigious American Society of Mechanical Engineers certification in Nigeria are: “Dorman Long, Nest Oil, Nigerdock, Aveon Offshore and Eldorado.” MG VOWGAS is ASME certified in the following: Class PP - Fabrication and assembly of pressure piping Class R - Metallic repairs and alterationsClass S - Manufacture and assembly of power boilers
MG VOWGAS: A Force In The Value Chain
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A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 826
Six to seven years down the line, First Hydrocarbon Nigeria, Shoreline Natural Resources and NDWestern hold 45% in OMLs
26, 30 and 34 respectively, but while the companies may be financially up to date with respect to payments on the acreages, the NPDC, which holds Joint Venture and the majority 55% on the leases, is not. “We want to resolve things with NPDC before we can begin the process of granting the renewal”, the MoPR sources say.
Nigeria's Ministry of Petroleum Resources has kept the renewal of Oil Mining Leases (OMLs) 26, 30 and
34 on hold because of the uncertainty of the payment of long overdue debts on the acreages by the Nigeria Petroleum Development Company (NPDC), which is the operator of the assets. The current licences on the acreages will
expire in 2019. They are three of the five leases from which Shell divested between 2011 and 2012, selling its 30% stake as well as the 15% stakes belonging to TOTAL and ENI, to Nigerian companies.
F rench independent Perenco 's purchase of Petrofac's entire 45% interest in the Chergui asset in Tunisia
is the latest of the company's string of acquisitions of mature fields all over the Francophone part of Africa.
But Perenco is a perennial grabber of assets. The deal with Petrofac came barely 16 months after the private, unlisted operator took over significant number of TOTAL's interests in Gabon. In February 2017, Perenco acquired TOTAL's 100%-owned affiliate TOTAL Participations Petrolières Gabon, which held interests in 10 fields, as well as .TOTAL's interests in five other fields and the Rabi-Coucal-Cap Lopez pipeline
network. The total value of the transactions is around $350 million before adjustments and the production divested by TOTAL represents around 13,000 SEC barrels per day.Under the terms of the agreement, TOTAL Gabon divested all of its interests in the onshore Coucal, Avocette and Atora fields as well as the Rabi-Coucal-Cap Lopez pipeline network, and a partial interest in the offshore Hylia field. Operatorship of these assets were transferred to Perenco. TOTAL Gabon also sold all of its interest in the onshore non-operated Igongo field. The production from the fields being divested represents about 5,000 barrels per day, or 10% of Total Gabon's 2016 SEC production. Perenco also won the operatorship of the offshore Grondin, Gonelle, Barbier, Mandaros, Girelle and Pageau fields while TOTAL retained its
existing 65.3% equity interest in the assets. This change in operatorship will generate the opportunity for synergies with Perenco's nearby operations.
In 2011, the company completed the acquisition of TOTAL's upstream interests in Cameroon. The company is now the leading operator in the country, with an area of operations extending over 6 000 km² in the Rio del Rey and Douala basins, and operated production in Oil and Gas of 82,000BOEPD (77,000BOPD and 30 MMscf/d.)
Petrofac has had a tough time producing the field, especially with Unions threatening to shut it down.
Perenco had acquired, 16 years ago, all of Shell's assets in the troubled Democratic Republic of Congo, where it is the sole crude oil producer
Perenco Takes All
Why Lease Renewal For OMLs 26, 30 and 34 Remain On Hold
he Block R licence (which contains the TFortuna gas discovery) is due to expire at the end of 2018.
And yet operator Ophir Energy has not been able to get a financier for the 2.2MMTPA Floating LNG Train it has proposed to monetise the resources in the block.The company says it is in active discussions to
secure a partner but the status of the financing and timing of FID were not clear as of mid-July 2018. The Government f Equatorial Guinea is on record as having threatened to revoke the licence if, by the end of 2018, there was no clarity on FID for the project, which has been on the drawing board for the past four years.
“Depending on how these discussions progress, the carrying value of the Block R licence ( $604Million as at 31 Dec 2017) may need to be reassessed as part of our interim reporting process”, the company noted in an operational update.
Fortuna Licence Expires In 2018
DNO has also agreed to subscribe for a significant portion of the Private Placement. The price per share is set at NOK12.82 per share, a 3.6% discount to the closing price on 27 June 2018, and equivalent to the Volumetric Weighted Average Price of Panoro shares over the past 30 trading days.
The terms of the transaction call for (a)Panoro to acquire DNO Tunisia AS (a Norwegian company holding DNO's business in Tunisia) for no cash consideration (b)Panoro to assume all existing permit interests, rights and unfulfilled work
obligations Panoro to secure a full operational and experienced organisation with strong local knowledge and operating capabilities, as well as local offices, warehouses and drilling inventory, (c) Panoro to retain a cash balance of approx. USD 8.6 million in DNO Tunisia AS at completion, reflecting DNO's partial contribution towards the remaining work obligations (d) DNO to maintain exposure to the Tunisian assets and support Panoro's ability to develop and unlock value through subscription for Panoro shares in the Private Placement in a NOK amount equivalent to USD 4.15 million at a pre-agreed subscription price of NOK 12.82 per share (e)DNO to receive a deferred consideration up to a maximum of USD 13.2 million, paid through future production from the operated Sfax Offshore Exploration Permit.
Panoro is concurrently launching an equity private placement of up to 4.25Million new shares and a potential additional sale of up to 1Million existing treasury shares, pursuant to the authorisation given by the Annual General Meeting held on 24 May 2018.
DNO Tunisia AS holds three offshore assets: Sfax Offshore Exploration Permit, Ras El Besh Concession, and Hammamet Offshore Permit. Each of those assets has existing oil discoveries and material exploration upside. Panoro plans to secure an extension or renewal of the Sfax Offshore Exploration Permit, where Panoro intends to fast-track the development of the very shallow water Salloum oil discovery (ca Five Million barrels recoverable and tested at 1,848BOPD).
anoro Energy has announced the Psigning of a Sale and Purchase Agreement for the acquisition of DNO
Tunisia AS from DNO ASA.
DNO Tunisia has struggled to develop its discoveries in Tunisia, largely because, it alleges, of the lack of urgency of approvals by
the state hydrocarbon company. It would be interesting how Panoro will work round this same problem.
DNO Folds Into Panoro
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Six to seven years down the line, First Hydrocarbon Nigeria, Shoreline Natural Resources and NDWestern hold 45% in OMLs
26, 30 and 34 respectively, but while the companies may be financially up to date with respect to payments on the acreages, the NPDC, which holds Joint Venture and the majority 55% on the leases, is not. “We want to resolve things with NPDC before we can begin the process of granting the renewal”, the MoPR sources say.
Nigeria's Ministry of Petroleum Resources has kept the renewal of Oil Mining Leases (OMLs) 26, 30 and
34 on hold because of the uncertainty of the payment of long overdue debts on the acreages by the Nigeria Petroleum Development Company (NPDC), which is the operator of the assets. The current licences on the acreages will
expire in 2019. They are three of the five leases from which Shell divested between 2011 and 2012, selling its 30% stake as well as the 15% stakes belonging to TOTAL and ENI, to Nigerian companies.
F rench independent Perenco 's purchase of Petrofac's entire 45% interest in the Chergui asset in Tunisia
is the latest of the company's string of acquisitions of mature fields all over the Francophone part of Africa.
But Perenco is a perennial grabber of assets. The deal with Petrofac came barely 16 months after the private, unlisted operator took over significant number of TOTAL's interests in Gabon. In February 2017, Perenco acquired TOTAL's 100%-owned affiliate TOTAL Participations Petrolières Gabon, which held interests in 10 fields, as well as .TOTAL's interests in five other fields and the Rabi-Coucal-Cap Lopez pipeline
network. The total value of the transactions is around $350 million before adjustments and the production divested by TOTAL represents around 13,000 SEC barrels per day.Under the terms of the agreement, TOTAL Gabon divested all of its interests in the onshore Coucal, Avocette and Atora fields as well as the Rabi-Coucal-Cap Lopez pipeline network, and a partial interest in the offshore Hylia field. Operatorship of these assets were transferred to Perenco. TOTAL Gabon also sold all of its interest in the onshore non-operated Igongo field. The production from the fields being divested represents about 5,000 barrels per day, or 10% of Total Gabon's 2016 SEC production. Perenco also won the operatorship of the offshore Grondin, Gonelle, Barbier, Mandaros, Girelle and Pageau fields while TOTAL retained its
existing 65.3% equity interest in the assets. This change in operatorship will generate the opportunity for synergies with Perenco's nearby operations.
In 2011, the company completed the acquisition of TOTAL's upstream interests in Cameroon. The company is now the leading operator in the country, with an area of operations extending over 6 000 km² in the Rio del Rey and Douala basins, and operated production in Oil and Gas of 82,000BOEPD (77,000BOPD and 30 MMscf/d.)
Petrofac has had a tough time producing the field, especially with Unions threatening to shut it down.
Perenco had acquired, 16 years ago, all of Shell's assets in the troubled Democratic Republic of Congo, where it is the sole crude oil producer
Perenco Takes All
Why Lease Renewal For OMLs 26, 30 and 34 Remain On Hold
he Block R licence (which contains the TFortuna gas discovery) is due to expire at the end of 2018.
And yet operator Ophir Energy has not been able to get a financier for the 2.2MMTPA Floating LNG Train it has proposed to monetise the resources in the block.The company says it is in active discussions to
secure a partner but the status of the financing and timing of FID were not clear as of mid-July 2018. The Government f Equatorial Guinea is on record as having threatened to revoke the licence if, by the end of 2018, there was no clarity on FID for the project, which has been on the drawing board for the past four years.
“Depending on how these discussions progress, the carrying value of the Block R licence ( $604Million as at 31 Dec 2017) may need to be reassessed as part of our interim reporting process”, the company noted in an operational update.
Fortuna Licence Expires In 2018
DNO has also agreed to subscribe for a significant portion of the Private Placement. The price per share is set at NOK12.82 per share, a 3.6% discount to the closing price on 27 June 2018, and equivalent to the Volumetric Weighted Average Price of Panoro shares over the past 30 trading days.
The terms of the transaction call for (a)Panoro to acquire DNO Tunisia AS (a Norwegian company holding DNO's business in Tunisia) for no cash consideration (b)Panoro to assume all existing permit interests, rights and unfulfilled work
obligations Panoro to secure a full operational and experienced organisation with strong local knowledge and operating capabilities, as well as local offices, warehouses and drilling inventory, (c) Panoro to retain a cash balance of approx. USD 8.6 million in DNO Tunisia AS at completion, reflecting DNO's partial contribution towards the remaining work obligations (d) DNO to maintain exposure to the Tunisian assets and support Panoro's ability to develop and unlock value through subscription for Panoro shares in the Private Placement in a NOK amount equivalent to USD 4.15 million at a pre-agreed subscription price of NOK 12.82 per share (e)DNO to receive a deferred consideration up to a maximum of USD 13.2 million, paid through future production from the operated Sfax Offshore Exploration Permit.
Panoro is concurrently launching an equity private placement of up to 4.25Million new shares and a potential additional sale of up to 1Million existing treasury shares, pursuant to the authorisation given by the Annual General Meeting held on 24 May 2018.
DNO Tunisia AS holds three offshore assets: Sfax Offshore Exploration Permit, Ras El Besh Concession, and Hammamet Offshore Permit. Each of those assets has existing oil discoveries and material exploration upside. Panoro plans to secure an extension or renewal of the Sfax Offshore Exploration Permit, where Panoro intends to fast-track the development of the very shallow water Salloum oil discovery (ca Five Million barrels recoverable and tested at 1,848BOPD).
anoro Energy has announced the Psigning of a Sale and Purchase Agreement for the acquisition of DNO
Tunisia AS from DNO ASA.
DNO Tunisia has struggled to develop its discoveries in Tunisia, largely because, it alleges, of the lack of urgency of approvals by
the state hydrocarbon company. It would be interesting how Panoro will work round this same problem.
DNO Folds Into Panoro
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Despite popular support for legalizing law suits against OPEC, these bills are not good for America, or for the global economy.
The Legislation
In fact, between an intensifying trade war and rising tensions among the U.S. and its NATO allies, the stakes are even higher.
It was the American Dream playing out before my eyes. There is no doubt in my mind that those stories inspired my career trajectory in Africa where I have had a chance to advise many African governments on oil matters and improving relations with one another.
When U.S. Rep. Steve Chabot R-Ohio introduced a recycled version of NOPEC in
May, he and his fellow Congress members knew the legislation has a very real possibility of being signed by President Donald Trump. Not only has the president Tweeted unfavorably about OPEC this summer, he has blasted the organization in his 2011 book, Time to Get Tough: Making America #1 Again!
NOPEC is not new legislation. Congress has tried to pass it more than a dozen times since it was first introduced in 2000, but it has never been able to overcome veto threats by Presidents George W. Bush and Barack Obama. Of course, now there is a new sheriff in town – one who has already expressed anti-OPEC sentiments.
The bill already has cleared an early hurdle. The House Judiciary Committee approved it in June, and it could go for a vote before the full House of Representatives within the next couple of months.Meanwhile, a bipartisan group has introduced a companion bill in the Senate with similar objectives.
Those weren't unreasonable claims, and the same risks hold today.
Then there's the matter of U.S. O&G companies that operate overseas. Foreign countries may begin restricting their access or
American frustrat ion with OPEC is understandable. Because it has historically controlled as much of 80 percent of the world's oil production, OPEC has been able to influence supply—and prices—by limiting or increasing output. And for decades, the U.S. has been forced to l i ve wi th the consequences.
NOPEC seizes on American anti-OPEC (Organization of Petroleum Exporting Countries) sentiment and creates the appearance that Congress is taking steps to lower US gasoline prices before midterm elections this November.
These companies were creating opportunities both for Americans and the people in their host countries.
Group -- Throughout the years I spent as an undergraduate and law school student in the U.S., one of the things I
truly admired was American ingenuity. I loved following news stories about U.S. startups that scraped together enough money to go overseas, explored for oil – and despite overwhelming odds, achieved success.
The bill would make it illegal for foreign states to limit production of oil and gas, fix prices or restrain trade in those products. US courts consider sovereign foreign governments immune from US law. NOPEC would erase that immunity for OPEC and its member countries and allow the US Attorney General to bring antitrust lawsuits against them, potentially for billions of dollars in reparations.
NOPEC would put foreign investments in the U.S. oil and gas sector, from exploration projects to infrastructure at risk, too.For example, earlier this month UAE-based Gulftainer received the U.S. government's go-ahead to operate the Port of Wilmington in Delaware, a fully serviced deepwater port and marine terminal, for the next 50 years. Gulftainer already has announced plans to develop the port's cargo terminal capabilities and enhance its overall productivity. How likely are more deals like this after NOPEC?America's lost partnership and investment opportunities could extend beyond OPEC members. Non-OPEC members may wonder if the precedent set by NOPEC puts them in legal jeopardy, especially in a litigious country like the U.S. Other countries may think twice before partnering or investing in U.S. O&G projects to protect their own relationships with OPEC nations.
But attempting to take OPEC down with punishing lawsuits is not in America's best interests. In 2007, when a nearly identical version of NOPEC was under consideration, the U.S. Office of Management and Budget
warned that legal action against OPEC and its members could result in oil supply disruptions, and instead of lowering gasoline prices, the lawsuits likely would cause prices to surge upward. Treasury Secretary Henry Paulson said that the mere passage of NOPEC would threaten foreign investment in the US: OPEC nations might withdraw assets to prevent them from being seized.
And that is just one of the unintended consequences the proposed No Oil Producing and Exporting Cartels Act (NOPEC) could have. In the end, the US House of Representatives bill could likely produce the opposite result of the business ventures that inspired me as a student: it will lead to fewer opportunities for Americans and for the countries they partner with.
Earlier this year, Saudi Aramco announced commercial partnerships worth more than $10 billion with 14 American companies. Saudi Arabia is the largest producer in OPEC. With the threat of lawsuits looming, partnerships like that could be a thing of the past.
At this year's Africa Oil & Power conference in Cape Town, South Africa from September 5 to 7, 2018, the NOPEC bill and the wider ranging impact on US investment in the African continent will be hot topics of discussion.
The Downsides
Needless to say, it is disheartening to see a country like the United States that is simultaneously responsible for innovation while proposing legislation that undermines innovation in places overseas.
No Good Will Come From NOPEC
For too many years, the presence of oil in African nations has been more of a curse than a blessing, contributing to the wealth of fore ign investors whi le ind igenous populations endure socioeconomic hardship and political unrest.
If OPEC producers are playing a role in decreased production, it is not by choice. Venezuela, in the midst of economic and political turmoil, has seen its crude oil production plummet to its lowest monthly production levels (below 1.3 million barrels a day in June) in decades. Conflict has been interfering with production in Libya, and Iran's production has been hampered by concerns over renewed US sanctions.
ordering them to leave altogether. Not only would these lost opportunities affect E&P multinationals like ExxonMobil, Vaalco Energy, Chevron, Murphy, Anadarko Petroleum Corporation, Apache Corporation, Marathon Oil, Occidental Petroleum, Noble Energy, Kosmos Energy, oilfield services providers like Halliburton, Schlumberger, S t e w a r t & S t e v e n s o n , M c D e r m o tt International, MODEC, Nalco Champion, National Oilwell Varco, Oceaneering International Inc, Precision Dril l ing, Weatherford International and Baker Hughes could be hurt.Any of these scenarios could damage the U.S. economy in the form of fewer jobs, reduced oil supplies and higher gasoline prices.
Of course, I cannot help but consider NOPEC's potential to harm my home continent. America's renewed interest in anti-OPEC legislation comes at a time when African involvement and influence in OPEC is at an all-time high.
And that is only part of the problem. The
plunge in oil prices that began in 2014 forced numerous U.S. multinationals to put exploration projects on hold. Activity is picking up gradually, but less exploration logically leads to reduced production.There are other factors, too, and they stem from challenges in North America. They include severe drops in inventories (4.7 million barrels as of late June) in Cushing, Okla. and an outage in western Canada affecting 300,000 barrels a day.
Equatorial Guinea and Gabon became members of OPEC in 2016 and 2017, respectively. When the Republic of Congo joined OPEC in June, it increased the number of African nations in OPEC to seven –compared to six from the Middle East – and gave the African continent unprecedented dominance in the organization, at least in terms of membership.
But if NOPEC were to pass, a moment of opportunity would be replaced with further instability in Africa as much needed American investment dries up. While Africa is on the verge of a bright new future, African nations and cities easily could swing in the direction of greater crime and bloody conflicts: scenarios that could even result in American troops and dollars being called in to fix them.Much of Africa is changing for the better. Policy that pushes Africa toward civil unrest flies in the face of American ideals.More Harm Than Good America needs OPEC countries in Africa and the Middle-East to assist on Arab Israeli peace process, fighting Boko haram, Al Shabab rebels, and promoting American values. Litigating against these countries will make trial lawyers like me very rich but put American national security and economic interest on collision course.
N.J. Ayuk is CEO of Centurion Law Group and creator of the African Energy Chamber of Commerce
As always NOPEC is being fueled by politicians' fears that voters will express frustration over increasing gas prices at the polls during this November's midterm elections. But OPEC production quotas are not to blame for the rising gasoline prices American consumers have been seeing this summer. (The average cost of gasoline in the U.S. was $2.865 per gallon as of July 16, according to the U.S Energy Information Administration, an increase of $.0587 from last year.)
Today, a new generation of Africans is stepping forward in countries throughout the continent. They are looking to themselves to make positive change in their communities through entrepreneurship and technological
innovations with their American partners. Those efforts to create a stronger, more stable continent must include the strategic capitalization of natural resources like oil. And the opportunity tap into the resources and influence of a major organization like OPEC and the African Energy Chamber —as a large, united voice—could be just the boost African producers need.
It's Complicated
Don't Overlook Africa
This shift could be seismic in terms of African growth and stability.
America has a legacy of creating opportunity. Criminalizing OPEC won't get at the root causes of increased American gasoline prices, and instead, will only inflict economic harm domestically and internationally.
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Despite popular support for legalizing law suits against OPEC, these bills are not good for America, or for the global economy.
The Legislation
In fact, between an intensifying trade war and rising tensions among the U.S. and its NATO allies, the stakes are even higher.
It was the American Dream playing out before my eyes. There is no doubt in my mind that those stories inspired my career trajectory in Africa where I have had a chance to advise many African governments on oil matters and improving relations with one another.
When U.S. Rep. Steve Chabot R-Ohio introduced a recycled version of NOPEC in
May, he and his fellow Congress members knew the legislation has a very real possibility of being signed by President Donald Trump. Not only has the president Tweeted unfavorably about OPEC this summer, he has blasted the organization in his 2011 book, Time to Get Tough: Making America #1 Again!
NOPEC is not new legislation. Congress has tried to pass it more than a dozen times since it was first introduced in 2000, but it has never been able to overcome veto threats by Presidents George W. Bush and Barack Obama. Of course, now there is a new sheriff in town – one who has already expressed anti-OPEC sentiments.
The bill already has cleared an early hurdle. The House Judiciary Committee approved it in June, and it could go for a vote before the full House of Representatives within the next couple of months.Meanwhile, a bipartisan group has introduced a companion bill in the Senate with similar objectives.
Those weren't unreasonable claims, and the same risks hold today.
Then there's the matter of U.S. O&G companies that operate overseas. Foreign countries may begin restricting their access or
American frustrat ion with OPEC is understandable. Because it has historically controlled as much of 80 percent of the world's oil production, OPEC has been able to influence supply—and prices—by limiting or increasing output. And for decades, the U.S. has been forced to l i ve wi th the consequences.
NOPEC seizes on American anti-OPEC (Organization of Petroleum Exporting Countries) sentiment and creates the appearance that Congress is taking steps to lower US gasoline prices before midterm elections this November.
These companies were creating opportunities both for Americans and the people in their host countries.
Group -- Throughout the years I spent as an undergraduate and law school student in the U.S., one of the things I
truly admired was American ingenuity. I loved following news stories about U.S. startups that scraped together enough money to go overseas, explored for oil – and despite overwhelming odds, achieved success.
The bill would make it illegal for foreign states to limit production of oil and gas, fix prices or restrain trade in those products. US courts consider sovereign foreign governments immune from US law. NOPEC would erase that immunity for OPEC and its member countries and allow the US Attorney General to bring antitrust lawsuits against them, potentially for billions of dollars in reparations.
NOPEC would put foreign investments in the U.S. oil and gas sector, from exploration projects to infrastructure at risk, too.For example, earlier this month UAE-based Gulftainer received the U.S. government's go-ahead to operate the Port of Wilmington in Delaware, a fully serviced deepwater port and marine terminal, for the next 50 years. Gulftainer already has announced plans to develop the port's cargo terminal capabilities and enhance its overall productivity. How likely are more deals like this after NOPEC?America's lost partnership and investment opportunities could extend beyond OPEC members. Non-OPEC members may wonder if the precedent set by NOPEC puts them in legal jeopardy, especially in a litigious country like the U.S. Other countries may think twice before partnering or investing in U.S. O&G projects to protect their own relationships with OPEC nations.
But attempting to take OPEC down with punishing lawsuits is not in America's best interests. In 2007, when a nearly identical version of NOPEC was under consideration, the U.S. Office of Management and Budget
warned that legal action against OPEC and its members could result in oil supply disruptions, and instead of lowering gasoline prices, the lawsuits likely would cause prices to surge upward. Treasury Secretary Henry Paulson said that the mere passage of NOPEC would threaten foreign investment in the US: OPEC nations might withdraw assets to prevent them from being seized.
And that is just one of the unintended consequences the proposed No Oil Producing and Exporting Cartels Act (NOPEC) could have. In the end, the US House of Representatives bill could likely produce the opposite result of the business ventures that inspired me as a student: it will lead to fewer opportunities for Americans and for the countries they partner with.
Earlier this year, Saudi Aramco announced commercial partnerships worth more than $10 billion with 14 American companies. Saudi Arabia is the largest producer in OPEC. With the threat of lawsuits looming, partnerships like that could be a thing of the past.
At this year's Africa Oil & Power conference in Cape Town, South Africa from September 5 to 7, 2018, the NOPEC bill and the wider ranging impact on US investment in the African continent will be hot topics of discussion.
The Downsides
Needless to say, it is disheartening to see a country like the United States that is simultaneously responsible for innovation while proposing legislation that undermines innovation in places overseas.
No Good Will Come From NOPEC
For too many years, the presence of oil in African nations has been more of a curse than a blessing, contributing to the wealth of fore ign investors whi le ind igenous populations endure socioeconomic hardship and political unrest.
If OPEC producers are playing a role in decreased production, it is not by choice. Venezuela, in the midst of economic and political turmoil, has seen its crude oil production plummet to its lowest monthly production levels (below 1.3 million barrels a day in June) in decades. Conflict has been interfering with production in Libya, and Iran's production has been hampered by concerns over renewed US sanctions.
ordering them to leave altogether. Not only would these lost opportunities affect E&P multinationals like ExxonMobil, Vaalco Energy, Chevron, Murphy, Anadarko Petroleum Corporation, Apache Corporation, Marathon Oil, Occidental Petroleum, Noble Energy, Kosmos Energy, oilfield services providers like Halliburton, Schlumberger, S t e w a r t & S t e v e n s o n , M c D e r m o tt International, MODEC, Nalco Champion, National Oilwell Varco, Oceaneering International Inc, Precision Dril l ing, Weatherford International and Baker Hughes could be hurt.Any of these scenarios could damage the U.S. economy in the form of fewer jobs, reduced oil supplies and higher gasoline prices.
Of course, I cannot help but consider NOPEC's potential to harm my home continent. America's renewed interest in anti-OPEC legislation comes at a time when African involvement and influence in OPEC is at an all-time high.
And that is only part of the problem. The
plunge in oil prices that began in 2014 forced numerous U.S. multinationals to put exploration projects on hold. Activity is picking up gradually, but less exploration logically leads to reduced production.There are other factors, too, and they stem from challenges in North America. They include severe drops in inventories (4.7 million barrels as of late June) in Cushing, Okla. and an outage in western Canada affecting 300,000 barrels a day.
Equatorial Guinea and Gabon became members of OPEC in 2016 and 2017, respectively. When the Republic of Congo joined OPEC in June, it increased the number of African nations in OPEC to seven –compared to six from the Middle East – and gave the African continent unprecedented dominance in the organization, at least in terms of membership.
But if NOPEC were to pass, a moment of opportunity would be replaced with further instability in Africa as much needed American investment dries up. While Africa is on the verge of a bright new future, African nations and cities easily could swing in the direction of greater crime and bloody conflicts: scenarios that could even result in American troops and dollars being called in to fix them.Much of Africa is changing for the better. Policy that pushes Africa toward civil unrest flies in the face of American ideals.More Harm Than Good America needs OPEC countries in Africa and the Middle-East to assist on Arab Israeli peace process, fighting Boko haram, Al Shabab rebels, and promoting American values. Litigating against these countries will make trial lawyers like me very rich but put American national security and economic interest on collision course.
N.J. Ayuk is CEO of Centurion Law Group and creator of the African Energy Chamber of Commerce
As always NOPEC is being fueled by politicians' fears that voters will express frustration over increasing gas prices at the polls during this November's midterm elections. But OPEC production quotas are not to blame for the rising gasoline prices American consumers have been seeing this summer. (The average cost of gasoline in the U.S. was $2.865 per gallon as of July 16, according to the U.S Energy Information Administration, an increase of $.0587 from last year.)
Today, a new generation of Africans is stepping forward in countries throughout the continent. They are looking to themselves to make positive change in their communities through entrepreneurship and technological
innovations with their American partners. Those efforts to create a stronger, more stable continent must include the strategic capitalization of natural resources like oil. And the opportunity tap into the resources and influence of a major organization like OPEC and the African Energy Chamber —as a large, united voice—could be just the boost African producers need.
It's Complicated
Don't Overlook Africa
This shift could be seismic in terms of African growth and stability.
America has a legacy of creating opportunity. Criminalizing OPEC won't get at the root causes of increased American gasoline prices, and instead, will only inflict economic harm domestically and internationally.
OP
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IO
N/
AN
AL
YS
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By N. J. Ayuk
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As well as being an important standalone project, the importance of Coral is that its documentation is likely to be a major influence on the pending onshore LNG financings of Area 1 and 4, which together may require the raising of USD 30bn debt in 2019 as part of c USD 50bn of final investments, which will transform Mozambique into a leading LNG player.Eardley-Taylor is on the Oil & Gas Southern Africa Team at Standard Bank, headquartered in Johannesburg, South Africa
Coral FLNG will produce 3.4 MTPA output to be exclusively sold to BP. The upstream part of the project is 100 per cent equ i ty funded and the liquefaction part project financed through $4.7bn on a 60:40 debt equity ratio.
The project is led and operated by ENI with a 25% holding. ExxonMobil farmed into Area 4 block in 2017 with 25%, all taken from ENI. The remaining stakes are held by CNPC (20%), Kogas (10%), Galp Energia (10%) and ENH (10%).
Coral South is a field located within Area 4, which also includes the Coral North and Mamba fields. Coral South is separate from the other fields and furthest from the shore. This distance is a key reason why the relatively new FLNG technology was chosen for development. Coral FLNG is only the fourth FLNG project globally after Petronas's Satu, Shell's Prelude and Cameroon's Hilli Episeyo (none project financed). A consortium consisting of TechnipFMC, JGC and S a m s u n g H e a v y Industries was selected as EPCIC contractors. The FLNG ship is under construction in South Korea and scheduled to reach the Mozambican shores around 2021 to ensure commissioning in mid-2022.
The project used multi-sourced project financing from five export credit agencies and 16 banks. Due to the scale of LNG projects (and their multi -sourced participation), project
financing is typically used to fund LNG liquefaction projects. Due to the ring-fenced nature of project financing, a very secure offtake is required to ensure the project can service its debt. For Coral FLNG, BP will take
Coral FLNG, located offshore Mozambique, with a debt size of $4.7Billion, marks Africa's largest-ever project financing and
the world's first FLNG project financing.
From its perspective, the Government of Mozambique showed commitment to the project by establishing the necessary regulatory regimes and timely project approvals. Underlying all the Rovuma Basin's current and future LNG export projects is the 2014 Decree Law, which was passed following the completion and public dissemination of a Macroeconomic Study for Area 1 prepared by Standard Bank. It is a great achievement for Mozambique that it was able to
execute the Coral FLNG project even during an ongoing sovereign default.
This is as significant as it is symbolic of Africa's place in the investment ecosystem.
Within the transaction financing, Standard Bank was the largest single commercial lender; Onshore Account Bank and Security Trustee; and was the only African lender to the project. The bulk of the financing was contributed by export credit agencies (ECA's) including: BPI, KEXIM, Ksure, Sace and Sinosure (ECAs being a mainstay of global LNG financing).
100 per cent of output but noting the project (and therefore the lenders) will naturally take the performance risk of the Coral South field. The Area 4 shareholders are generally seen as strong entities, able to provide the customary completion support seen in LNG debt financings.
Africa started early in LNG, with Algeria exporting its first cargo to the UK as far back as 1964. Subsequently, until 2017, despite its established position in upstream oil and gas, Africa had operational plants in only four counties: Algeria, Angola, Equatorial Guinea and Nigeria, with two plants in Egypt idle due to insufficient gas supplies.This position is rapidly changing, with multiple onshore and Floating LNG (FLNG) projects under d e v e l o p m e n t , w i t h F l o a t i n g S t o ra g e Regasification Units (FSRUs) in operation and under development, one of the most exciting is Coral FLNG.
Production of natural gas has started offshore Ghana, from two of the four deep-water subsea wells in the Sankofa
field, connected to the Floating Production, Storage and Offloading (FPSO) vessel “John Agyekum Kufuor”. The gas producing part of the Offshore Cape Three Points (OCTP) Integrated Oil and Gas
Project, is scheduled to provide 180Million standard cubic feet per day (MMscf/d) for at least 15 years, “enough to convert to gas 40% of Ghana's current power generation capacity”, according to a statement by the World Bank.
The headline price for sale to generation companies is of $9.8 per Million British Thermal Units ($9.8/MMBtu), or roughly $9.2 per thousand cubic feet ($9.2/Mscf).
“OCTP is the only deep offshore non-associated gas development in Sub-Saharan Africa entirely destined to domestic consumption”, ENI reports. “The project has a strategic relevance: gas from OCTP can help Ghana shift from oil-fueled power generation to a cleaner power source, with financial as well as environmental benefits, and contribute to the Country's sustainable economic development”.
“After the final steps of commissioning of the offshore facilities, production will gradually flow via a dedicated 60km pipeline to the Onshore Receiving Facility (ORF) in Sanzule, where gas will then be compressed and distributed to Ghana's national grid”, says ENI, the Italian giant who is the project operator.
ENI operates OCTP with 44.44%. Partners include Vitol 35.56% and GNPC 20%.
The World Bank is heavily involved in the $7.7Billion OCTP project, largely because of this gas component. The bank helped devise a payment mechanism “that ensured all the
receipts from the on-sale of the Sankofa gas to the power sector in Ghana flowed to a single designated account from which the private sponsors would be paid in priority for their share of the gas. Should there be any payment shortfall under the Gas Sales Agreement, the sponsors would be able to access an escrow account funded by GNPC with the equivalent of 4.5 months of gas sales ($205Million)”.
Gas Starts Flowing At Ghana's $9/Mscf Sankofa Project
Vol 1
9, N
o 6,
July
201
8
rep
ort
www.africao
ilgasreport.com
NIG
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Coral LNG: The Dealmaking In Africa's Largest Project Financing
By Paul Eardley-Taylor
Coral South is separate from the other fields and furthest from the shore. This distance is a key reason why the relatively new FLNG technology was chosen for development.
GA
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A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 830
As well as being an important standalone project, the importance of Coral is that its documentation is likely to be a major influence on the pending onshore LNG financings of Area 1 and 4, which together may require the raising of USD 30bn debt in 2019 as part of c USD 50bn of final investments, which will transform Mozambique into a leading LNG player.Eardley-Taylor is on the Oil & Gas Southern Africa Team at Standard Bank, headquartered in Johannesburg, South Africa
Coral FLNG will produce 3.4 MTPA output to be exclusively sold to BP. The upstream part of the project is 100 per cent equ i ty funded and the liquefaction part project financed through $4.7bn on a 60:40 debt equity ratio.
The project is led and operated by ENI with a 25% holding. ExxonMobil farmed into Area 4 block in 2017 with 25%, all taken from ENI. The remaining stakes are held by CNPC (20%), Kogas (10%), Galp Energia (10%) and ENH (10%).
Coral South is a field located within Area 4, which also includes the Coral North and Mamba fields. Coral South is separate from the other fields and furthest from the shore. This distance is a key reason why the relatively new FLNG technology was chosen for development. Coral FLNG is only the fourth FLNG project globally after Petronas's Satu, Shell's Prelude and Cameroon's Hilli Episeyo (none project financed). A consortium consisting of TechnipFMC, JGC and S a m s u n g H e a v y Industries was selected as EPCIC contractors. The FLNG ship is under construction in South Korea and scheduled to reach the Mozambican shores around 2021 to ensure commissioning in mid-2022.
The project used multi-sourced project financing from five export credit agencies and 16 banks. Due to the scale of LNG projects (and their multi -sourced participation), project
financing is typically used to fund LNG liquefaction projects. Due to the ring-fenced nature of project financing, a very secure offtake is required to ensure the project can service its debt. For Coral FLNG, BP will take
Coral FLNG, located offshore Mozambique, with a debt size of $4.7Billion, marks Africa's largest-ever project financing and
the world's first FLNG project financing.
From its perspective, the Government of Mozambique showed commitment to the project by establishing the necessary regulatory regimes and timely project approvals. Underlying all the Rovuma Basin's current and future LNG export projects is the 2014 Decree Law, which was passed following the completion and public dissemination of a Macroeconomic Study for Area 1 prepared by Standard Bank. It is a great achievement for Mozambique that it was able to
execute the Coral FLNG project even during an ongoing sovereign default.
This is as significant as it is symbolic of Africa's place in the investment ecosystem.
Within the transaction financing, Standard Bank was the largest single commercial lender; Onshore Account Bank and Security Trustee; and was the only African lender to the project. The bulk of the financing was contributed by export credit agencies (ECA's) including: BPI, KEXIM, Ksure, Sace and Sinosure (ECAs being a mainstay of global LNG financing).
100 per cent of output but noting the project (and therefore the lenders) will naturally take the performance risk of the Coral South field. The Area 4 shareholders are generally seen as strong entities, able to provide the customary completion support seen in LNG debt financings.
Africa started early in LNG, with Algeria exporting its first cargo to the UK as far back as 1964. Subsequently, until 2017, despite its established position in upstream oil and gas, Africa had operational plants in only four counties: Algeria, Angola, Equatorial Guinea and Nigeria, with two plants in Egypt idle due to insufficient gas supplies.This position is rapidly changing, with multiple onshore and Floating LNG (FLNG) projects under d e v e l o p m e n t , w i t h F l o a t i n g S t o ra g e Regasification Units (FSRUs) in operation and under development, one of the most exciting is Coral FLNG.
Production of natural gas has started offshore Ghana, from two of the four deep-water subsea wells in the Sankofa
field, connected to the Floating Production, Storage and Offloading (FPSO) vessel “John Agyekum Kufuor”. The gas producing part of the Offshore Cape Three Points (OCTP) Integrated Oil and Gas
Project, is scheduled to provide 180Million standard cubic feet per day (MMscf/d) for at least 15 years, “enough to convert to gas 40% of Ghana's current power generation capacity”, according to a statement by the World Bank.
The headline price for sale to generation companies is of $9.8 per Million British Thermal Units ($9.8/MMBtu), or roughly $9.2 per thousand cubic feet ($9.2/Mscf).
“OCTP is the only deep offshore non-associated gas development in Sub-Saharan Africa entirely destined to domestic consumption”, ENI reports. “The project has a strategic relevance: gas from OCTP can help Ghana shift from oil-fueled power generation to a cleaner power source, with financial as well as environmental benefits, and contribute to the Country's sustainable economic development”.
“After the final steps of commissioning of the offshore facilities, production will gradually flow via a dedicated 60km pipeline to the Onshore Receiving Facility (ORF) in Sanzule, where gas will then be compressed and distributed to Ghana's national grid”, says ENI, the Italian giant who is the project operator.
ENI operates OCTP with 44.44%. Partners include Vitol 35.56% and GNPC 20%.
The World Bank is heavily involved in the $7.7Billion OCTP project, largely because of this gas component. The bank helped devise a payment mechanism “that ensured all the
receipts from the on-sale of the Sankofa gas to the power sector in Ghana flowed to a single designated account from which the private sponsors would be paid in priority for their share of the gas. Should there be any payment shortfall under the Gas Sales Agreement, the sponsors would be able to access an escrow account funded by GNPC with the equivalent of 4.5 months of gas sales ($205Million)”.
Gas Starts Flowing At Ghana's $9/Mscf Sankofa Project
Vol 1
9, N
o 6,
July
201
8
rep
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www.africao
ilgasreport.com
NIG
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Coral LNG: The Dealmaking In Africa's Largest Project Financing
By Paul Eardley-Taylor
Coral South is separate from the other fields and furthest from the shore. This distance is a key reason why the relatively new FLNG technology was chosen for development.
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 832
“If they were to lease that infrastructure to us as a transport company, and allow us to negotiate directly with off takers all the way to Ghana, there is no way our customers will not receive their gas promptly and as when due”, Austin Avuru, the company's Chief Executive, said at a Roundtable on Gas for Development, a forum organised by the Business Year and the Nigerian Petroleum Club.
Avuru's comments came as part of contribution to a panel including Gbite Adeniji, Senior Technical Adviser, Upstream &Gas to the Minister of State For Petroleum Resources, and Tony Attah, Managing Director of the NLNG. “When you speak to Nigerians they say Ghana doesn't pay promptly and when you ask Ghanaians they say they don't receive the gas regularly”. The WAGP is operated by Chevron, and is owned by West African Gas Pipeline Company Limited (WAGPCo), a consortium of Chevron
(36.7%), Nigerian National Petroleum Corporation (25%), Royal Dutch Shell (18%), Volta River Authority of Ghana (16.3%),
Société Togolaise de Gaz (SoToGaz - 2%) and Société Beninoise de Gaz S.A
(SoBeGaz - 2%). There are critics, in Nigeria who believe that Chevron and Shell, the dominant private enterprises in the ownership, do not treat the WAGP as serious business. Mr. Avuru would not respond to such misgivings.
The 678 km West Africa Gas Pipeline pumps Nigerian gas to Benin Republic, Togo and Ghana, but has for most part of the last four years, supplied less than half of the contracted gas volume to Ghana, which in turn complains about both the infrequency of supplies as well as the low output.Ghana's in-country gas production of 110MMscf/d, from the Jubilee field in 2017, almost doubles the volume imported through the WAGP in the same year. And that's about to increase sharply. In June, Ghana commisioned the OCTP gas project, operated
by ENI, which is slated to contribute 180MMscf/d at peak. With plans for importing gas through regasified LNG to augment indigenous production, the Ghanaian Ministry of Energy and WAGP management are considering a transition to a birectional pipeline that can take gas from other sources than the Escravos Lagos Gas Pipeline System, which currently feeds the WAGP.
After considerable delays in construction, delivery of gas through the WAGP has suffered challenges since it was commissioned in 2009. Some of the early drawbacks were caused by an irregular amount of moisture found inside the 569km onshore part of the pipeline. More recently, vandalism of crude oil and gas pipelines in Nigeria have led to field shut ins, which have aided the irregular flow of gas in the WAGP.
Seplat Petroleum has said it could turn around the fortunes of the WAGP, if the regional facility was leased to it,
even for a short term.
Seplat: We'd Turn Around The Fortunes Of The WAGP
Africa Oil+Gas Report, in Windhoek in early July 2018, felt a certain optimism, not previously associated with discussions of this energy infrastructure project, which is huge for the small southwest African country.
BW Offshore formally took over as the upstream operator on the license, about 15 months ago (February 2017) with a 56% working interest with NAMCOR retaining 44% interest in the Kudu License. BW Offshore will provide a Floating Production System for the project as part of its 56% equity and will also operate the upstream part, by manage tenders for offshore survey, drilling and supply of trees/controls.
a v i n g r e m o v e d t w o m a j o r Hcomponents that had bolstered the cost of development, final investment
decision is now almost certain for the Kudu Gas field development project, offshore Namibia.
But following a review process which began in July 2017, informed by the current regional power market dynamics, “Kudu Project stakeholders have made a decision to re-size the Kudu Power Station to 442 MW, requiring 60 million standard cubic feet per day over a 25 year Gas Sales Agreement”, Namibia 's deputy Deputy Minister of Mines and Energy Kornelia Shilunga, told the country's parliament last April. “The lower gas offtake over a longer concession will make the Kudu Power Station a better fit within NamPower's generation needs and financial capabilities”.Nampower will no longer be supplying
electricity from the project to either Zamibia's Copperbelt Corporation or South Africa's Eskom, but only to Namibians.
Until June 2017, the Kudu development was being planned as an 800MW, 110MMscf/d gas to power project generating electricity for the country and exporting the rest to Zambia and
South Africa.
Kudu “Almost Certainly” Set For FID
Seplat's Avuru: "If it's broken, We'd fix it"
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At the inaugural meeting, the Chairman did something unusual. To everyone's surprise, he proposed, without explaining why it was desirable, the modification of the government's terms of reference. Onosode recalled that event years later: "I was not happy with the logical sequence of the issues set out. We reorganised the terms of reference so that we would not incorporate the Company until we were satisfied that the project was viable. So, incorporation of the Company was one of the very last things to be done by the LNG working committee. So having challenged the unorthodoxy of the approach, we all agreed and re-drafted the terms of reference and sent it back to the minister. This ensured that the terms of reference fully reflected what the government had in mind. Thereafter, the LNG working committee began the task of engineering and re-engineering the environment to make it conducive towards the LNG project.
Excerpted from The Story Of NLNG, by Ifeanyi Mbanefo, Published by Bookcraft, Ibadan. Sponsored by NLNG Ltd.
'I believe that is what we needed', David West replied."One more thing", the minister continued, "the terms of reference that you will get will ask you to look into the feasibility of the project. That gives you the liberty to advise the government that under present circumstances or whatever, the project is not feasible. However, I want to say very bluntly that the government is not asking you to advise it on whether LNG project is feasible. We want you to tell us how to make it feasible."
Opportunities to sell Nigeria's gas in Europe were lost in 1966, 1976 and 1980. Nigeria's market shares were taken by Algeria, the Soviet Union and Norway. New openings in Europe and USA in mid 1990s might be Nigeria's last opportunities to get into the international gas business. To realise the LNG project in Nigeria, Onosode and his team needed to find solution to almost unsolvable puzzles of how to keep the government engaged, but not meddling. Wavering government attention had been the Achilles heels of previous efforts. The committee needed to convince partners, lenders and buyers that Nigeria was committed to realising the project; that the project would be completed, not abandoned. This was not easy in a country politicians do not speak and act with one voice. In a country where passionate rhetoric and strutting led to ruin, Onosode's analytical detachment, sure-footed leadership and years of boardroom experience were major strengths. His integrity and unwavering morals served him extremely well in his new role. He shouldered an enormous responsibility on behalf of the state.
Dateline: Lagos Nigeria, February 1985….Gamaliel Onosode, first-class technocrat, administrator and baptist
minister, was persuaded to lead Nigeria's LNG revival campaign by President Ibrahim Babangida. Former Chairman, Cadbury Nigeria Plc; former Chairman, Dunlop Nigeria Plc; and former Chairman, Nigeria Stock Brokers Limited, Onosode was approached by Tam David-West, then Minister of Petroleum Resources.In the course of an evening of banter at Onosode's residence, David- West had informed him that the government was about to establish an LNG Working Committee and wanted him to serve on the committee. "I was a bit surprised because I was not an oil and gas man. I was a banker and a manager; so I was really surprised," Onosode recalled.But the minister persisted: "Look, those are the skills we want represented in the working committee." Eventually, Onosode gave in: "if the government says it wants me to serve in the committee and you came all the way to my house to tell me, I will not say no.
Onosode faced the same dilemma that every administrator who grappled with building LNG project in Nigeria had to contend with. How do you convince the international financial market to lend you billions of dollars when your country has no credit history? How do you convince partners and buyers alike to take you seriously when your country turned past efforts into a circus?In the three decades before Onosode's appointment, Nigeria made several unsuccessful attempts at building a LNG plant. Too many false starts; too many missed chances. The struggle to realise the LNG project was an epic story of wasted opportunities and tragic miscalculations, featuring an extraordinary cast of larger-than-life characters, many of them eminence grise of
Nigerian politics and public service.
Participants were potential investors so the committee negotiated the terms of the partnership and investment. This was captured in the shareholders agreement. It took a lot of time and delicate negotiations to arrive at terms and conditions acceptable to all. 'After that stage, we had to satisfy ourselves that we had a market for the product - liquefied natural gas'.
On the day of the inauguration of the LNG Working Committee in March 1985, the minister sprang another surprise. "When we gathered for the inauguration, then the minister sent for me. I went to his office and sat down. And he said 'well I am sorry I didn't tell you before, but I deliberately didn't want you to know before now because I fear that you might turn down the request. We want you to be the chairman of NLNG working committee.' I was stunned. When I recovered from my shock, I said 'well, since the government said that this is the right person for the job, I will do my best, but I feel I am not a technical man, not being an oil and gas man; I am a banker and a manager.'
Having reshuffled the cards, Onosode reminded the committee that its main duty was setting up the vehicle for the realisation of the LNG project. He said the early registration of the Joint venture would boost the confidence of buyers who would prefer to deal with a corporate entity as opposed to individual companies. He then requested Shell, Elf (now TOTAL) and Agip (ENI's subsidiary in Nigeria) to state conditions under which they would go ahead with the registration of a joint venture company. This needed to be agreed upfront to avoid ambiguities and surprises. Brian Anthony Lavers, Shell's highly influential Managing Director in Nigeria, gave three conditions for his company's participation - market ava i lab i l i ty, execut ion of the shareholders' contract and an agreeable fiscal regime. Agip and Elf supported Shell's position.Onosode responded that he did not see the connection between the items enumerated by Shell and the proposed incorporation, adding that he had always thought that the incorporation of the Company would depend only on market availability. "It had never been
anyone's understanding that a fiscal package and service agreements needed to be in place before JVC incorporation. These should not be made pre-conditions for JVC incorporation”, he said.The lOCs stuck to their guns, insisting that they were not prepared to accept the uncertainty of not having an agreed fiscal package prior to the incorporation of the JVC. It was the responsibility of the committee to formulate and make recommendations to the government and shareholders on the fiscal regime that would govern the project, they insisted.Onosode argued that it was not the intention of government, nor did indications from first contacts with the market show that ii was desirable that the viability of the project should be dependent on government concessions. The buyers only wanted a stable source of supply. The project would have seeds of instability if the benefits and rewards accruing from it were not seen to have been fairly shared, said Onosode. He urged the oil companies to appreciate the several roles the government would play in the project- a sovereign, majority shareholder (through NNPC) saying that in both capacities the government had both ultimate responsibilities to all Nigerians.
CREATION STORIES
NLNG: Keeping the Government Engaged, But Not Meddling
By Ifeanyi Mbanefo
Transition to Bi-directional Pipeline SystemWAGP well positioned to capture new supplies including re-gasified LNG
Onosode: What's the connection between Fiscal package and Company Incorporation?
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“If they were to lease that infrastructure to us as a transport company, and allow us to negotiate directly with off takers all the way to Ghana, there is no way our customers will not receive their gas promptly and as when due”, Austin Avuru, the company's Chief Executive, said at a Roundtable on Gas for Development, a forum organised by the Business Year and the Nigerian Petroleum Club.
Avuru's comments came as part of contribution to a panel including Gbite Adeniji, Senior Technical Adviser, Upstream &Gas to the Minister of State For Petroleum Resources, and Tony Attah, Managing Director of the NLNG. “When you speak to Nigerians they say Ghana doesn't pay promptly and when you ask Ghanaians they say they don't receive the gas regularly”. The WAGP is operated by Chevron, and is owned by West African Gas Pipeline Company Limited (WAGPCo), a consortium of Chevron
(36.7%), Nigerian National Petroleum Corporation (25%), Royal Dutch Shell (18%), Volta River Authority of Ghana (16.3%),
Société Togolaise de Gaz (SoToGaz - 2%) and Société Beninoise de Gaz S.A
(SoBeGaz - 2%). There are critics, in Nigeria who believe that Chevron and Shell, the dominant private enterprises in the ownership, do not treat the WAGP as serious business. Mr. Avuru would not respond to such misgivings.
The 678 km West Africa Gas Pipeline pumps Nigerian gas to Benin Republic, Togo and Ghana, but has for most part of the last four years, supplied less than half of the contracted gas volume to Ghana, which in turn complains about both the infrequency of supplies as well as the low output.Ghana's in-country gas production of 110MMscf/d, from the Jubilee field in 2017, almost doubles the volume imported through the WAGP in the same year. And that's about to increase sharply. In June, Ghana commisioned the OCTP gas project, operated
by ENI, which is slated to contribute 180MMscf/d at peak. With plans for importing gas through regasified LNG to augment indigenous production, the Ghanaian Ministry of Energy and WAGP management are considering a transition to a birectional pipeline that can take gas from other sources than the Escravos Lagos Gas Pipeline System, which currently feeds the WAGP.
After considerable delays in construction, delivery of gas through the WAGP has suffered challenges since it was commissioned in 2009. Some of the early drawbacks were caused by an irregular amount of moisture found inside the 569km onshore part of the pipeline. More recently, vandalism of crude oil and gas pipelines in Nigeria have led to field shut ins, which have aided the irregular flow of gas in the WAGP.
Seplat Petroleum has said it could turn around the fortunes of the WAGP, if the regional facility was leased to it,
even for a short term.
Seplat: We'd Turn Around The Fortunes Of The WAGP
Africa Oil+Gas Report, in Windhoek in early July 2018, felt a certain optimism, not previously associated with discussions of this energy infrastructure project, which is huge for the small southwest African country.
BW Offshore formally took over as the upstream operator on the license, about 15 months ago (February 2017) with a 56% working interest with NAMCOR retaining 44% interest in the Kudu License. BW Offshore will provide a Floating Production System for the project as part of its 56% equity and will also operate the upstream part, by manage tenders for offshore survey, drilling and supply of trees/controls.
a v i n g r e m o v e d t w o m a j o r Hcomponents that had bolstered the cost of development, final investment
decision is now almost certain for the Kudu Gas field development project, offshore Namibia.
But following a review process which began in July 2017, informed by the current regional power market dynamics, “Kudu Project stakeholders have made a decision to re-size the Kudu Power Station to 442 MW, requiring 60 million standard cubic feet per day over a 25 year Gas Sales Agreement”, Namibia 's deputy Deputy Minister of Mines and Energy Kornelia Shilunga, told the country's parliament last April. “The lower gas offtake over a longer concession will make the Kudu Power Station a better fit within NamPower's generation needs and financial capabilities”.Nampower will no longer be supplying
electricity from the project to either Zamibia's Copperbelt Corporation or South Africa's Eskom, but only to Namibians.
Until June 2017, the Kudu development was being planned as an 800MW, 110MMscf/d gas to power project generating electricity for the country and exporting the rest to Zambia and
South Africa.
Kudu “Almost Certainly” Set For FID
Seplat's Avuru: "If it's broken, We'd fix it"
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At the inaugural meeting, the Chairman did something unusual. To everyone's surprise, he proposed, without explaining why it was desirable, the modification of the government's terms of reference. Onosode recalled that event years later: "I was not happy with the logical sequence of the issues set out. We reorganised the terms of reference so that we would not incorporate the Company until we were satisfied that the project was viable. So, incorporation of the Company was one of the very last things to be done by the LNG working committee. So having challenged the unorthodoxy of the approach, we all agreed and re-drafted the terms of reference and sent it back to the minister. This ensured that the terms of reference fully reflected what the government had in mind. Thereafter, the LNG working committee began the task of engineering and re-engineering the environment to make it conducive towards the LNG project.
Excerpted from The Story Of NLNG, by Ifeanyi Mbanefo, Published by Bookcraft, Ibadan. Sponsored by NLNG Ltd.
'I believe that is what we needed', David West replied."One more thing", the minister continued, "the terms of reference that you will get will ask you to look into the feasibility of the project. That gives you the liberty to advise the government that under present circumstances or whatever, the project is not feasible. However, I want to say very bluntly that the government is not asking you to advise it on whether LNG project is feasible. We want you to tell us how to make it feasible."
Opportunities to sell Nigeria's gas in Europe were lost in 1966, 1976 and 1980. Nigeria's market shares were taken by Algeria, the Soviet Union and Norway. New openings in Europe and USA in mid 1990s might be Nigeria's last opportunities to get into the international gas business. To realise the LNG project in Nigeria, Onosode and his team needed to find solution to almost unsolvable puzzles of how to keep the government engaged, but not meddling. Wavering government attention had been the Achilles heels of previous efforts. The committee needed to convince partners, lenders and buyers that Nigeria was committed to realising the project; that the project would be completed, not abandoned. This was not easy in a country politicians do not speak and act with one voice. In a country where passionate rhetoric and strutting led to ruin, Onosode's analytical detachment, sure-footed leadership and years of boardroom experience were major strengths. His integrity and unwavering morals served him extremely well in his new role. He shouldered an enormous responsibility on behalf of the state.
Dateline: Lagos Nigeria, February 1985….Gamaliel Onosode, first-class technocrat, administrator and baptist
minister, was persuaded to lead Nigeria's LNG revival campaign by President Ibrahim Babangida. Former Chairman, Cadbury Nigeria Plc; former Chairman, Dunlop Nigeria Plc; and former Chairman, Nigeria Stock Brokers Limited, Onosode was approached by Tam David-West, then Minister of Petroleum Resources.In the course of an evening of banter at Onosode's residence, David- West had informed him that the government was about to establish an LNG Working Committee and wanted him to serve on the committee. "I was a bit surprised because I was not an oil and gas man. I was a banker and a manager; so I was really surprised," Onosode recalled.But the minister persisted: "Look, those are the skills we want represented in the working committee." Eventually, Onosode gave in: "if the government says it wants me to serve in the committee and you came all the way to my house to tell me, I will not say no.
Onosode faced the same dilemma that every administrator who grappled with building LNG project in Nigeria had to contend with. How do you convince the international financial market to lend you billions of dollars when your country has no credit history? How do you convince partners and buyers alike to take you seriously when your country turned past efforts into a circus?In the three decades before Onosode's appointment, Nigeria made several unsuccessful attempts at building a LNG plant. Too many false starts; too many missed chances. The struggle to realise the LNG project was an epic story of wasted opportunities and tragic miscalculations, featuring an extraordinary cast of larger-than-life characters, many of them eminence grise of
Nigerian politics and public service.
Participants were potential investors so the committee negotiated the terms of the partnership and investment. This was captured in the shareholders agreement. It took a lot of time and delicate negotiations to arrive at terms and conditions acceptable to all. 'After that stage, we had to satisfy ourselves that we had a market for the product - liquefied natural gas'.
On the day of the inauguration of the LNG Working Committee in March 1985, the minister sprang another surprise. "When we gathered for the inauguration, then the minister sent for me. I went to his office and sat down. And he said 'well I am sorry I didn't tell you before, but I deliberately didn't want you to know before now because I fear that you might turn down the request. We want you to be the chairman of NLNG working committee.' I was stunned. When I recovered from my shock, I said 'well, since the government said that this is the right person for the job, I will do my best, but I feel I am not a technical man, not being an oil and gas man; I am a banker and a manager.'
Having reshuffled the cards, Onosode reminded the committee that its main duty was setting up the vehicle for the realisation of the LNG project. He said the early registration of the Joint venture would boost the confidence of buyers who would prefer to deal with a corporate entity as opposed to individual companies. He then requested Shell, Elf (now TOTAL) and Agip (ENI's subsidiary in Nigeria) to state conditions under which they would go ahead with the registration of a joint venture company. This needed to be agreed upfront to avoid ambiguities and surprises. Brian Anthony Lavers, Shell's highly influential Managing Director in Nigeria, gave three conditions for his company's participation - market ava i lab i l i ty, execut ion of the shareholders' contract and an agreeable fiscal regime. Agip and Elf supported Shell's position.Onosode responded that he did not see the connection between the items enumerated by Shell and the proposed incorporation, adding that he had always thought that the incorporation of the Company would depend only on market availability. "It had never been
anyone's understanding that a fiscal package and service agreements needed to be in place before JVC incorporation. These should not be made pre-conditions for JVC incorporation”, he said.The lOCs stuck to their guns, insisting that they were not prepared to accept the uncertainty of not having an agreed fiscal package prior to the incorporation of the JVC. It was the responsibility of the committee to formulate and make recommendations to the government and shareholders on the fiscal regime that would govern the project, they insisted.Onosode argued that it was not the intention of government, nor did indications from first contacts with the market show that ii was desirable that the viability of the project should be dependent on government concessions. The buyers only wanted a stable source of supply. The project would have seeds of instability if the benefits and rewards accruing from it were not seen to have been fairly shared, said Onosode. He urged the oil companies to appreciate the several roles the government would play in the project- a sovereign, majority shareholder (through NNPC) saying that in both capacities the government had both ultimate responsibilities to all Nigerians.
CREATION STORIES
NLNG: Keeping the Government Engaged, But Not Meddling
By Ifeanyi Mbanefo
Transition to Bi-directional Pipeline SystemWAGP well positioned to capture new supplies including re-gasified LNG
Onosode: What's the connection between Fiscal package and Company Incorporation?
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We however acknowledge that a company's emphasis on everything but profit will not guarantee its survival. This list, which we will continue to update and publish yearly, is unlikely to ever include companies who become operators by default.
This is where we publish, in few hundred words, efforts of those Nigerian indigenous companies, operating hydrocarbon assets, who show the most willingness and ability to grow; who are keen on operatorship and not content to be mere partners. Those firms whose choice of projects can help catalyse the industrial economy and who exhibit old fashioned aggressiveness that is not contaminated by the rentier instinct.
While corporate governance is high on our ranking, we take more than a cursory look at the debt profile. We have a soft spot for companies who are angling to diversify into midstream, even downstream segments, to help tackle the country's industrial challenges. We are, of course, a sucker for healthy focus on community development.
Regardless of the deep decline in its oil and gas production between February 2016 and June 2017, Seplat Petroleum was ranked higher than any Nigerian independent in our debut The Talented Tenth in May 2017. It has since experienced a much better year. While there continues to be shut ins of crude oil production due to vandalism that lead to leakages, Seplat operations are robust enough to weather the adversity and grow the company. “ Production uptime stood at 76% in the first half and reconciliation losses around 8%, the company reported on July 30, 2018. Seplat's crude oil output performance in the six months to end of June, 2018, was 56,706BOPD gross and 25,286BOPD net for liquid hydrocarbons, with working interest oil equivalent output of 51,099 BOEPD. That's close to tripling the output recorded in the corresponding period in 2017. Seplat is firmly back in the black, after four successive quarters in the red, which began turning in the last quarter of 2017. 1H 2018 Profit after tax (but before deferred tax) was $105Million; net profit for the period was $49Million..
Evaluating the context of growth and challenges of the Nigerian independent provides a clear view of opportunities for investment in Afr ica's hydrocarbon properties.
No1-Seplat
When an E&P company, holding one or several oil and gas permits, and exploring and or producing them, is not big enough to be considered a Major, then it is an independent. The world has only six majors: ExxonMobil, Shell, Chevron, BP, TOTAL and, to a lesser extent, ENI. All other E&P companies, the largest of them being ConocoPhillips, are ranked as Independents.
THE TALENTED TENTH ANNUAL, of which this article is the second edition, is our rough but intelligible ranking of the top 10 progressive Nigerian E&P Independents.
Over 20 Nigerian owned, indigenous independents produce oil and gas from the bowels of their hydrocarbon rich country. The lowest producer, Dubri Oil, delivers as low as 200BOPD; while the largest producer, AITEO, outputs 90,000BOPD at optimum.
No. 2 NDPRNiger Delta Petroleum Resources (NDPR) is the most integrated energy player, among Nigeria's independents. From a thousand barrels of crude oil in its Ogbele marginal field, it produces 120,000 Litres of diesel in a topping plant, and the diesel is purchased daily by buyers from far and wide. The
As you'd see in the ensuing article, the production volume doesn't automatically translate to a company's durability.
This dual listed firm (London and Nigeria Stock Exchanges) has done two major things since our last report; moved to raise funds with the considerably lower interest rate that its
London listing could allow it and replace the expensive Nigerian debt with a new four year $300Million Revolving Credit Facility (RCF) at LIBOR + 6% and debut $350Million bond issue priced at 9.25%, thus diversifying long term capital base. Seplat has also leaped ahead of its peers in the domestic gas market and beaten Chevron as the dominant supplier of gas to Nigeria's growing gas to power sector. Gross production now averages 360MMscf/d. This contribution to Nigeria's potential industrialisation marks the company out for us as the leader of the pack among The Talented Tenth. One challenge remains the evacuation emergency: the ease to resort to barging its crude once the TransForcados pipeline is shut in due to leakage linked to vandalism. There is still a bit of struggle in completing the alternative pipeline route to Chevron operated Escravos terminal. A major drawback is that final Investment decision for the 300MMscf/d ANOH (Assa North Ohaji South) gas project in OML 53 will not happen before second quarter 2019, largely because of the delay in third party construction of the crucial gas transmission line OB3 and the involvement of the state owned Nigerian Gas Processing and Transportation. But Seplat looks sure to prevail and grow in the next five years, with its corporate governance structure, its constant watching its pocket with ratio of spending and debt to production revenue and its ability to manage its relationship with the state hydrocarbon company NPDC, drastically reducing repayables to $16Million.
igeria is the main playground of NAfrican born independents. Nowhere else on the continent provides the
ready breeding ground for this unique species of Exploration and production companies.But what do we mean by the term Independent?
There have been delays in payment of the majority of (state hydrocarbon company) NNPC's historic operational expenditure and capital expenditure cash calls from 2015 and 2016 and these delays have compromised timely and optimal execution of projects, but managing NNPC is a crucial part of delivering
This nimble enterprise was founded in the late 1990s with the idea of having more than a handful of shareholders pooling resources, a contrarian thinking to the concept that created most Nigerian independents, so it holds a regular, annual, well attended General Meetings, although it has remained shy of listing on the local stock exchange. The partnership deal with the host communities around the Ogbele field includes a clause that allocates 5% of the annual profit to the communities. It is the most generous partnership among Nigerian independents.
NO 5-AITEO
Our challenges with the company has been its being run with a strong man mentality. And nothing in the plan. Conoil doesn't have a technical or managerial succession planning scenario, which is a disadvantage. It will likely be around in the next five years, most likely in its current form, most likely with higher production. The Company's main risk to being an exceptional performer in the Nigerian environment is its own self.
NDPR is the partner to Nilepet, the South Sudanese state Hydrocarbon Company, on South Sudan's gas monetization strategy. Both have a joint venture firm named Nile Delta Petroleum. NDPR participated and won hydrocarbon acreage licence In Uganda In 2016. In that case, it is very active outside its home country, unlike most Nigerian home grown E&P firms, and this activity is not about collecting assets and sitting on them. No 3-WALTERSMITHWaltersmith Petroman has, in our ranking, shot up to the third position on the Talented Tenth, from No 7 last year. The clincher is the $50Million Financial Sanction it announced, early July 2018, of a crude oil refinery project, the first phase of which is to beneficiate 5,000BOPD of crude into diesel. The project, being constructed by VLEM and VFuels, is debt financed by Africa Finance Corporation, with the Nigerian Content Development and Monitoring Board as co-equity funder. This company has given indications it is imbued
w i t h a s e n s e t o contribute to its home country's drive into an industrial economy. Its principals say they are already working on the refinery's next phase, aimed to beneficiate 30,000BOPD to diesel, gasoline, Kerosine and other products. They also want to build a power plant. While we can't vouch that they will pull these off, we take note of their aggressive attitude to growth. Waltersmith has 8% of NDWestern, which itself has 45% of OML 34. For the small field, Ibigwe, which it started producing in 2008, as the third marginal field operator to reach first oil, it has had three field development phases, involving six successful wells. In 2016, it won the Turaco acreage in Uganda, after a competitive bid round, but dropped the asset because of "unfavourable terms". Our main concern with Waltersmith is that, unlike Seplat, NDPR and Lekoil, we don't see young personnel in the technical and managerial succession layers who are being primed to lead the company in a decade to come. But this ranking is about the next five years.
But it's doing handsomely well in crude exploitation programme. Currently it has two platforms (Aunty Julie and Mr. P) and it is
building two platforms, including a M, It neither has a ro obile Offshore Production Unit (MOPU, in the United States, which will be deployed on OML150 and OML 153.
Conoil Producing moves up a step higher in this edition from the No 5 we placed it last year for one key reason; its vigorous work programme of the last three years has borne very valuable fruit. This is, after all, the first real Nigerian independent operator of E&P assets. And it has prevailed for 25 years since it made its first oil discovery and 27 years since it was first awarded an exploratory tract. Conoil has taken production from 12,000BOPD to 20,000BOPD since our last ranking, and we are convinced, with the projects in hand, that it is course to triple it within the next two years. With field optimisation and new drilling, Conoil has increased its output in Oil Mining Lease (OML) 103 from less than 1,000BOPD to 1,500 BOPD and from 11,000OPD to 18,500 BOPD in OML 59. In February 2018, the company made a discovery, with Toju Ejanla-1, in cretaceous sediments on the western flank of OML 103. The finding has far reaching geologic significance: it is located on the cusp of the Niger Delta and Benin Basins. The field was undergoing testing as we went to press with this issue. Conoil is expanding its facilities to take care of anticipated surge in production. Conoil does not highlight any tendency to aiding Nigeria's industrial growth through its resources.
No 4-CONOIL
Aiteo Exploration&Production makes the Number 5 on the Talented Tenth, for largely the same reason it showed up on the list last year: the sheer size of its main hydrocarbon property, the OML 29 (Estimated 2P reserves: 2.2Billion BOE), of which it holds 45%, purchased from Shell, TOTAL and ENI in 2015. The rapid increase in output, from the 35,000BOPD level when the purchase was completed, to 90,000BOPD reached by early 2017, has halted. Production now hovers between 75,000 to 85,000BOPD at optimum, which is when the Nembe Creek Trunk Line, the crude evaluation facility, is not vandalised Aiteo has held up gracefully, some will say, as it struggles with debt in the excess of $1.6Billion, procured at a time when crude on prices were close to the highest in history. Aiteo has also fared well in engaging the regulatory agencies in renewal of OML 29 licence, which expires in 2019. But the company has been unable to deliver a robust work programme, optimise production and arrest export losses, and that has kept the output from what it could achieve, which is at least 140,000BOPD by 2017, going by the prognosis at the time it bought the asset.
company delivers 35Million standard cubic feet of gas every day from a processing facility to the NLNG system. A Nigerian offtaker purchases another Million standard cubic feet of gas for onward sale to industrial outlets. The first company to be formally awarded a marginal field, NDPR has consistently produced from Ogbele since 2005. Optimum output in 2018 has been 6,500BOPD, possible when the Trans Niger Pipeline, the crude evacuation facility, is not shut in due to vandalism. Construction of the second phase of the Crude oil to Diesel refinery, so far the only private crude of refinery operating in the country, is underway. It will boost input capacity to 5,000BOPD. NDPR has its sights on a third phase, which will beneficiate 11,000BOPD, with gasoline being one of the targeted products. NDPR has increased its stake on Oil Prospecting Lease (OPL) 227 and is now the operator. The company is about to launch the development of another marginal field. It will move a rig, in the third quarter of 2018, to the 25MMBO (estimated 2P) Omerelu field (a heavy crude with API gravity
0of 20 ,). NDPR has 42% (majority) in NDWestern, the entity that holds 45% in OML 34.
COMPANIES TO WATCH: 2018-2023Africa's growth as an industrial marketplace is going to be determined by its exceptional companies
By the Editorial Board of the Africa Oil+Gas Report…
Nigerian Indies: The Talented Tenth Annual 2018
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We however acknowledge that a company's emphasis on everything but profit will not guarantee its survival. This list, which we will continue to update and publish yearly, is unlikely to ever include companies who become operators by default.
This is where we publish, in few hundred words, efforts of those Nigerian indigenous companies, operating hydrocarbon assets, who show the most willingness and ability to grow; who are keen on operatorship and not content to be mere partners. Those firms whose choice of projects can help catalyse the industrial economy and who exhibit old fashioned aggressiveness that is not contaminated by the rentier instinct.
While corporate governance is high on our ranking, we take more than a cursory look at the debt profile. We have a soft spot for companies who are angling to diversify into midstream, even downstream segments, to help tackle the country's industrial challenges. We are, of course, a sucker for healthy focus on community development.
Regardless of the deep decline in its oil and gas production between February 2016 and June 2017, Seplat Petroleum was ranked higher than any Nigerian independent in our debut The Talented Tenth in May 2017. It has since experienced a much better year. While there continues to be shut ins of crude oil production due to vandalism that lead to leakages, Seplat operations are robust enough to weather the adversity and grow the company. “ Production uptime stood at 76% in the first half and reconciliation losses around 8%, the company reported on July 30, 2018. Seplat's crude oil output performance in the six months to end of June, 2018, was 56,706BOPD gross and 25,286BOPD net for liquid hydrocarbons, with working interest oil equivalent output of 51,099 BOEPD. That's close to tripling the output recorded in the corresponding period in 2017. Seplat is firmly back in the black, after four successive quarters in the red, which began turning in the last quarter of 2017. 1H 2018 Profit after tax (but before deferred tax) was $105Million; net profit for the period was $49Million..
Evaluating the context of growth and challenges of the Nigerian independent provides a clear view of opportunities for investment in Afr ica's hydrocarbon properties.
No1-Seplat
When an E&P company, holding one or several oil and gas permits, and exploring and or producing them, is not big enough to be considered a Major, then it is an independent. The world has only six majors: ExxonMobil, Shell, Chevron, BP, TOTAL and, to a lesser extent, ENI. All other E&P companies, the largest of them being ConocoPhillips, are ranked as Independents.
THE TALENTED TENTH ANNUAL, of which this article is the second edition, is our rough but intelligible ranking of the top 10 progressive Nigerian E&P Independents.
Over 20 Nigerian owned, indigenous independents produce oil and gas from the bowels of their hydrocarbon rich country. The lowest producer, Dubri Oil, delivers as low as 200BOPD; while the largest producer, AITEO, outputs 90,000BOPD at optimum.
No. 2 NDPRNiger Delta Petroleum Resources (NDPR) is the most integrated energy player, among Nigeria's independents. From a thousand barrels of crude oil in its Ogbele marginal field, it produces 120,000 Litres of diesel in a topping plant, and the diesel is purchased daily by buyers from far and wide. The
As you'd see in the ensuing article, the production volume doesn't automatically translate to a company's durability.
This dual listed firm (London and Nigeria Stock Exchanges) has done two major things since our last report; moved to raise funds with the considerably lower interest rate that its
London listing could allow it and replace the expensive Nigerian debt with a new four year $300Million Revolving Credit Facility (RCF) at LIBOR + 6% and debut $350Million bond issue priced at 9.25%, thus diversifying long term capital base. Seplat has also leaped ahead of its peers in the domestic gas market and beaten Chevron as the dominant supplier of gas to Nigeria's growing gas to power sector. Gross production now averages 360MMscf/d. This contribution to Nigeria's potential industrialisation marks the company out for us as the leader of the pack among The Talented Tenth. One challenge remains the evacuation emergency: the ease to resort to barging its crude once the TransForcados pipeline is shut in due to leakage linked to vandalism. There is still a bit of struggle in completing the alternative pipeline route to Chevron operated Escravos terminal. A major drawback is that final Investment decision for the 300MMscf/d ANOH (Assa North Ohaji South) gas project in OML 53 will not happen before second quarter 2019, largely because of the delay in third party construction of the crucial gas transmission line OB3 and the involvement of the state owned Nigerian Gas Processing and Transportation. But Seplat looks sure to prevail and grow in the next five years, with its corporate governance structure, its constant watching its pocket with ratio of spending and debt to production revenue and its ability to manage its relationship with the state hydrocarbon company NPDC, drastically reducing repayables to $16Million.
igeria is the main playground of NAfrican born independents. Nowhere else on the continent provides the
ready breeding ground for this unique species of Exploration and production companies.But what do we mean by the term Independent?
There have been delays in payment of the majority of (state hydrocarbon company) NNPC's historic operational expenditure and capital expenditure cash calls from 2015 and 2016 and these delays have compromised timely and optimal execution of projects, but managing NNPC is a crucial part of delivering
This nimble enterprise was founded in the late 1990s with the idea of having more than a handful of shareholders pooling resources, a contrarian thinking to the concept that created most Nigerian independents, so it holds a regular, annual, well attended General Meetings, although it has remained shy of listing on the local stock exchange. The partnership deal with the host communities around the Ogbele field includes a clause that allocates 5% of the annual profit to the communities. It is the most generous partnership among Nigerian independents.
NO 5-AITEO
Our challenges with the company has been its being run with a strong man mentality. And nothing in the plan. Conoil doesn't have a technical or managerial succession planning scenario, which is a disadvantage. It will likely be around in the next five years, most likely in its current form, most likely with higher production. The Company's main risk to being an exceptional performer in the Nigerian environment is its own self.
NDPR is the partner to Nilepet, the South Sudanese state Hydrocarbon Company, on South Sudan's gas monetization strategy. Both have a joint venture firm named Nile Delta Petroleum. NDPR participated and won hydrocarbon acreage licence In Uganda In 2016. In that case, it is very active outside its home country, unlike most Nigerian home grown E&P firms, and this activity is not about collecting assets and sitting on them. No 3-WALTERSMITHWaltersmith Petroman has, in our ranking, shot up to the third position on the Talented Tenth, from No 7 last year. The clincher is the $50Million Financial Sanction it announced, early July 2018, of a crude oil refinery project, the first phase of which is to beneficiate 5,000BOPD of crude into diesel. The project, being constructed by VLEM and VFuels, is debt financed by Africa Finance Corporation, with the Nigerian Content Development and Monitoring Board as co-equity funder. This company has given indications it is imbued
w i t h a s e n s e t o contribute to its home country's drive into an industrial economy. Its principals say they are already working on the refinery's next phase, aimed to beneficiate 30,000BOPD to diesel, gasoline, Kerosine and other products. They also want to build a power plant. While we can't vouch that they will pull these off, we take note of their aggressive attitude to growth. Waltersmith has 8% of NDWestern, which itself has 45% of OML 34. For the small field, Ibigwe, which it started producing in 2008, as the third marginal field operator to reach first oil, it has had three field development phases, involving six successful wells. In 2016, it won the Turaco acreage in Uganda, after a competitive bid round, but dropped the asset because of "unfavourable terms". Our main concern with Waltersmith is that, unlike Seplat, NDPR and Lekoil, we don't see young personnel in the technical and managerial succession layers who are being primed to lead the company in a decade to come. But this ranking is about the next five years.
But it's doing handsomely well in crude exploitation programme. Currently it has two platforms (Aunty Julie and Mr. P) and it is
building two platforms, including a M, It neither has a ro obile Offshore Production Unit (MOPU, in the United States, which will be deployed on OML150 and OML 153.
Conoil Producing moves up a step higher in this edition from the No 5 we placed it last year for one key reason; its vigorous work programme of the last three years has borne very valuable fruit. This is, after all, the first real Nigerian independent operator of E&P assets. And it has prevailed for 25 years since it made its first oil discovery and 27 years since it was first awarded an exploratory tract. Conoil has taken production from 12,000BOPD to 20,000BOPD since our last ranking, and we are convinced, with the projects in hand, that it is course to triple it within the next two years. With field optimisation and new drilling, Conoil has increased its output in Oil Mining Lease (OML) 103 from less than 1,000BOPD to 1,500 BOPD and from 11,000OPD to 18,500 BOPD in OML 59. In February 2018, the company made a discovery, with Toju Ejanla-1, in cretaceous sediments on the western flank of OML 103. The finding has far reaching geologic significance: it is located on the cusp of the Niger Delta and Benin Basins. The field was undergoing testing as we went to press with this issue. Conoil is expanding its facilities to take care of anticipated surge in production. Conoil does not highlight any tendency to aiding Nigeria's industrial growth through its resources.
No 4-CONOIL
Aiteo Exploration&Production makes the Number 5 on the Talented Tenth, for largely the same reason it showed up on the list last year: the sheer size of its main hydrocarbon property, the OML 29 (Estimated 2P reserves: 2.2Billion BOE), of which it holds 45%, purchased from Shell, TOTAL and ENI in 2015. The rapid increase in output, from the 35,000BOPD level when the purchase was completed, to 90,000BOPD reached by early 2017, has halted. Production now hovers between 75,000 to 85,000BOPD at optimum, which is when the Nembe Creek Trunk Line, the crude evaluation facility, is not vandalised Aiteo has held up gracefully, some will say, as it struggles with debt in the excess of $1.6Billion, procured at a time when crude on prices were close to the highest in history. Aiteo has also fared well in engaging the regulatory agencies in renewal of OML 29 licence, which expires in 2019. But the company has been unable to deliver a robust work programme, optimise production and arrest export losses, and that has kept the output from what it could achieve, which is at least 140,000BOPD by 2017, going by the prognosis at the time it bought the asset.
company delivers 35Million standard cubic feet of gas every day from a processing facility to the NLNG system. A Nigerian offtaker purchases another Million standard cubic feet of gas for onward sale to industrial outlets. The first company to be formally awarded a marginal field, NDPR has consistently produced from Ogbele since 2005. Optimum output in 2018 has been 6,500BOPD, possible when the Trans Niger Pipeline, the crude evacuation facility, is not shut in due to vandalism. Construction of the second phase of the Crude oil to Diesel refinery, so far the only private crude of refinery operating in the country, is underway. It will boost input capacity to 5,000BOPD. NDPR has its sights on a third phase, which will beneficiate 11,000BOPD, with gasoline being one of the targeted products. NDPR has increased its stake on Oil Prospecting Lease (OPL) 227 and is now the operator. The company is about to launch the development of another marginal field. It will move a rig, in the third quarter of 2018, to the 25MMBO (estimated 2P) Omerelu field (a heavy crude with API gravity
0of 20 ,). NDPR has 42% (majority) in NDWestern, the entity that holds 45% in OML 34.
COMPANIES TO WATCH: 2018-2023Africa's growth as an industrial marketplace is going to be determined by its exceptional companies
By the Editorial Board of the Africa Oil+Gas Report…
Nigerian Indies: The Talented Tenth Annual 2018
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projects in Nigeria. Overall, there is an aura around Aiteo, which derives from its being founded and largely owned by a crude oil and petroleum products dealer who had close ties to the much vilified former minister of Petroleum, Diezani Alison-Madueke. Aiteo's directors; in executive management or otherwise, are not published on its website. The founder's name and career history are the only items on the site. This is a sort of hint at Maximum rulership. It does not speak well of corporate governance. Add to that the weight of the debt and its servicing and the wonder is whether Aiteo will navigate the next five years In Its current form.
Neconde will likely not be in the form it currently is in the next one year, That's not a statement about its being a going concern. It's about the principal equity holder, Nestoil, opting to sell down its equity, mostly as a result of te debt overhang. Neconde has 45% equity in OML 42, which produced around 45,000BOPD gross on average in November 2017, a remarkable turnaround from when the company's barging operations developed a hitch in September 2016, after which production dropped to naught. In terms of keeping an eye on output, NECONDE, a consortium made up of Nestoil, a leading local oilfield construction company and Yinka Folawiyo, holder of the OML 113 (containing the Aje field), has been the one of the most aggressive of the four Nigerian Independents who acquired Shell/TOTAL/ENI's equity in four acreages in 2012. It was the most vocal in disputing the operatorship of the NPDC, which has served largely in holding back production in these assets at a time of rising oil prices, a situation that has now in retrospect, proved to destroy value, as the loans raised for those acquisitions could no longer be rapidly paid back in the low price era. NECONDE was the first to resort to barging its crude, once the Pipeline to terminal facility, the TransForcados System, was taken out of action by militants in February 2016. NECONDE doesn't come across as having downstream plans. It is not looking determined to play in the domestic gas sector, even though it has a pillaged Gas Processing Plant on its property. It does not look spectacularly challenged to help industrialise Nigeria. Like most of the country's independents who operate producing assets it is struggling to service its debt and will be severely challenged to remain in its current form by 2023. No 10-MIDWESTERN
No 6 -EROTON
Out of all the five Nigerian independents affected by the 16 month long (February 2016 to June 2017) shut -in of the Trans Forcados Pipeline System, the crude oil evacuation facility, NDWestern is the one that seems to have recovered most slowly. Neither crude oil nor gas output have been had a boost.
No. 7 NDWestern
No 8- LEKOIL
Nor does the Asset Management Team concept, the resort to joint operatorship with the NPDC, which has lifted production at Elcrest, FHN, Neconde and Shoreline, seem to have had any effect on NDWestern's output. The company's production has never gone above the 13,000 to 17,000BOPD range. Natural gas production has stayed largely below 300MMscf/d in spite of the completion of an additional 150MMscf/d capacity train to the 350MMscf/d capacity plant the company purchased from Shell and Co. Which is curious; because all the stars are lined up in NDWestern's firmament. The company is a consortium of three respected Nigerian E&P companies; NDPR, Waltersmith Petroman and
First E&P, as well as the Petrolin Group, controlled by Sam Dossou Aworet, the B e n i n o i s b u s i n e s s m a n . W i t h t h e improvement in output by its peers, it is hard to blame NPDC for this lack lustre performance in delivering hydrocarbon volumes. Perhaps it is the management of the debt liability. Perhaps there is something. NDWestern certainly knows what it is doing.
Midwestern Oil and Gas, holder and operator of the Umusadege field, was a star of the Nigerian marginal field firm ament. Will it continue to be the aggressive field developer it was up until 2015? In 2014, the company boosted its production capacity from 11,000 to 25,000BOPD. The part-government, part- privately owned upstream operator achieved this boost in produced volume through the addition of five wells, completion of water Injection upgrades and construction of the 52 km Umugini pipeline to the TFS, as an alternative to the ENI operated Kwale to Brass pipeline, which had restricted its production. Midwestern was the core investor in Eroton. By June 2018, the company was producing roughly 15,000BOPD.
An outgrowth of Martwestern Energy, formed by Midwestern, operator of the 15,000BOPD Umusadege field and Mart Resources, the Canadian junior which has now been bought out by the former through the London listed San Leon, Eroton's liquids production has stayed closer to 40,000BOPD in the past year compared with a figure closer to 50,000BOPD, which it delivered between late 2016 and mid-2017. Rampant oil theft has kept output to a minimum the company thinks it can manage. There are plans for an alternative evacuation route that minimises extensive pipeline to the coast.It is to its credit, in our ranking, that Eroton supplies natural gas to the fertiliser company Notore, although there's an upside to do more.
Eroton, like Aiteo makes the Talented Tenth through the quality of its asset. OML 18 holds 2P reserves estimate: 576MMBO of crude and condensates and 4.2Tcf of gas). But it has the added advantage of a combined experience of its constituent founders.
No 9-NECONDE
Lekoil, the AIM listed, Nigerian founded company, took the Nigerian Minister of Petroleum Resources to court in March 2018, over failure of the Government to grant consent for its investment in Oil Prospecting Lease (OPL) 310 block offshore Nigeria, following its acquisition of previous stake holding by Afren Plc. That's quite brave. But some say it is poor relationship management. With gross production of over 6,000BOPD in one field in which it doesn't even hold the licence, there is always something exciting happening for this minnow. Production from the field, Otaklkpo, has not ramped up to 10,000BOPD, as planned. The crude is pumped through a 6km, Lekoil constructed pipeline to an FPSO from where the Shell Western Supply and Trading Limited lifts it. By its acquisition of 17% in Oil Prospecting Lease (OPL) 310, investing $120Million in the field operations, Lekoil was instrumental to the discovery of the gas- condensate and oil field named Ogo, located in shallow to deeper waters in the Benin Basin. Its timing from equity acquisition to first oil in the Otakikpo marginal field (30 months) is a record by Nigerian standards. Although its interest In OPL 310, increased to 40% via the acquisition of the 22.8% from a subsidiary of Afren, is being held up by both partner issues and ministerial consent, Lekoil has shown the courage to prevail in spite of the Nigerian risk. By buying out the owners of OPL 325, in ultra deep water Benin Basin, and progressing seismic interpretation effort on the asset, it has done what Nigerian independents, as a rule, won't do: invested in wildcat exploration. Its activities in the Benin Basin is a key reason for renewed geoscience interest in the Basin, itself a bespoke member of the West African transform margin. One key reason we are bullish on Lekoil is its demonstrated effort to train young personnel. We are no longer excited about its Memorandum of Understanding with GE for appraisal and full field oil development of the Ogo structure, (a $600MM to $1Billion investment) in which GE Oil & Gas (now BHGE), is expected to receive a percentage of Lekoil's future cash flows from the Ogo Field, as well as the ability to supply its products and provide technical expertise throughout the life of the project. Lekoil has the fire In Its belly, it has fund raising skills and acquisitive - expansionary mind-set and is
interested in doing the work. Whatever its challenges, It's a company to watch.
Renergen CEO Stefano Marani left and Afrox MD Schaik Venter
Sunbird, for now, remains no more than a potential. A full year since the Department of Environmental Affairs (DEA) issued an Environmental Authorisation (EA) for the project, the company is not anywhere close to concluding the gas sales negotiations with Eskom, the South African state power utility which owns the Ankerlig power plant. Nor is Sunbird seen to be progressing any deal to sell gas for industrial uses like Renergen is doing. It will be a huge advantage to get the Ibhubesi gas flowing before the shot rings out to propel South Africa's domestic gas market. At around $1,2Billion, the estimated cost of the infrastructure to develop the resource, located in 200 metres of water, is enormous for a small company like Sunbird without the valid assurance of an anchor offtaker. But time is running out.
JSE listed Renergen describes itself as an integrated alternative and renewable energy business that invests in early stage alternative energy projects.But it started its project life three years ago by acquiring an onshore natural gas acreage from Molopo South Africa Exploration and Production. Renergen holds the first, and currently only, onshore petroleum production right in South Africa.
In the last two years more E&P companies, primarily owned by South Africans, have left the upstream market, such that it is
tempting to declare the end of the growth of South African E&P independents.
Several homegrown independent South African companies, including Tshipise Energy (Pty) and Sungu Sungu Petroleum, are exploring for natural gas, in coal beds, in the Karoo and offshore Orange Basin, but their distance to development is, on average, far off. Renergen is the only one pumping natural gas from subsurface reservoirs into the local market.PetroSA, the only other natural gas producer in the country, is a state owned enterprise.
AIM listed SacOil turned into a downstream company and changed its name to Efora. Thombo Petroleum, owned by Trevor Ridley, former Petroleum Advisor at BHP Billiton, disappeared into the folds of Canadian owned Africa Energy Corp.But apart from Sasol Exploration and Production International, which is the most visible and best resourced South African born E&P company, there are a couple of companies to consider:
Renergen is working on ramping up production by late 2019 from its acreage, which holds an estimated 142Billion standard
cubic feet of proven a n d p r o b a b l e r e s e r v e s , n e a r V i r g i n i a , a b o u t 300km southwest of Johannesburg. It is moving into liquefied natural gas (LNG) p r o d u c t i o n , “primarily serving t h e g r o w i n g domestic heavy duty truck market across Africa and emerging markets”, it says. Renergen has signed a n o f f t a k e agreement with South African Breweries (SAB) for the supply of liquefied natural gas to power its delivery trucks. For this project, it will initially roll out compressed natural gas to a small fleet of SAB trucks in Gauteng, the country's major commercial province.A POTENTIAL STAR IN THE SOUTH AFRICAN E&P FIRMAMENT is Sunbird, a gas explorer and developer which owns a 76% interest in the Ibhubesi Gas Project, Block 2A, offshore of the west coast of South Africa and is the operator of the block. The company was originally owned by Australians, and was sold to South Africans in 2016. The Ibhubesi Gas Project is the country's largest, undeveloped gas discovery, in the opinion of Sunbird and the local media. The independently certified gas reserves are 540 Bcf (2P) with “best estimate” prospectivity of close to 8 Tcf of gas, according to the company. The immediate focus of the project is provision of gas to the Ankerlig Power Station, an 11 year old, 1,338MW capacity thermal plant, designed to
be fired by natural gas, but instead, utilizing expensive diesel fuel. Sunbird's JV partner PetroSA, holds the remaining 24% in Ibhubesi.
ELSEWHERE, AFRICAN INDIES TO WATCH
South Africa Sprouts New Shoots
Tunisian indigenous E&P independent, TOPIC, is on course of delivering first oil from the Halk El Menzel field, in the block of the same name, offshore Tunisia, in the next two months.
TOPIC was established in 2000 by a combination of the Tunisian energy conglomerate, the Toumi Group group and two individuals (a drilling engineer named Mongi Ellouze and a lawyer by name Abdelmajid Kacem). The company also has exploration positions in the onshore Mateur prospecting block (50% equity) in the north of Tunisia, Jelma exploration block (15% equity) in the country's central west.
There has been several delays in the project, but the field is on course
TOPIC, the most visible indigenous Tunisian E&P enterprise is structured well enough to have a shareholder that includes the International Finance Corporation, Sarost Group, Banque de L'Habitat
Group and Société Tunisienne de Banque, apart from the core asset holders: the Toumi Group.
The Halk el Menzel concession block is located in the Gulf of Hammamet, in the Tunisian segment of the Mediterranean Sea. The Miocene limestone reservoirs in the field, which are the ones to be developed, are of the Ain Grab and Ketatna formations at depths ranging from 700 to 784metres Sub Sea.
Halk el Menzel is a marginal field: its recoverable reserves are all of e i g h t m i l l i o n barrels of crude oil and production is expected to peak at 12,000BOPD, a few months after p r o d u c t i o n commences, for the next two years after, before gradual reduction in daily output. So, to continue as a going concern, the company has to run an aggressive work programme to bring its other assets into development. The Serdj (Aptian) prospect-in the same Halk el Menzel concession- which has shown up in early appraisal of the main reservoir, is located in 3,000metre water depth.
Homegrown Tunisian Firm Close To First OilTough work developing assets at 700metre water depth in the Mediterranean
To continue as a going concern, the company has to run an aggressive work programme to bring its other assets into development.
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projects in Nigeria. Overall, there is an aura around Aiteo, which derives from its being founded and largely owned by a crude oil and petroleum products dealer who had close ties to the much vilified former minister of Petroleum, Diezani Alison-Madueke. Aiteo's directors; in executive management or otherwise, are not published on its website. The founder's name and career history are the only items on the site. This is a sort of hint at Maximum rulership. It does not speak well of corporate governance. Add to that the weight of the debt and its servicing and the wonder is whether Aiteo will navigate the next five years In Its current form.
Neconde will likely not be in the form it currently is in the next one year, That's not a statement about its being a going concern. It's about the principal equity holder, Nestoil, opting to sell down its equity, mostly as a result of te debt overhang. Neconde has 45% equity in OML 42, which produced around 45,000BOPD gross on average in November 2017, a remarkable turnaround from when the company's barging operations developed a hitch in September 2016, after which production dropped to naught. In terms of keeping an eye on output, NECONDE, a consortium made up of Nestoil, a leading local oilfield construction company and Yinka Folawiyo, holder of the OML 113 (containing the Aje field), has been the one of the most aggressive of the four Nigerian Independents who acquired Shell/TOTAL/ENI's equity in four acreages in 2012. It was the most vocal in disputing the operatorship of the NPDC, which has served largely in holding back production in these assets at a time of rising oil prices, a situation that has now in retrospect, proved to destroy value, as the loans raised for those acquisitions could no longer be rapidly paid back in the low price era. NECONDE was the first to resort to barging its crude, once the Pipeline to terminal facility, the TransForcados System, was taken out of action by militants in February 2016. NECONDE doesn't come across as having downstream plans. It is not looking determined to play in the domestic gas sector, even though it has a pillaged Gas Processing Plant on its property. It does not look spectacularly challenged to help industrialise Nigeria. Like most of the country's independents who operate producing assets it is struggling to service its debt and will be severely challenged to remain in its current form by 2023. No 10-MIDWESTERN
No 6 -EROTON
Out of all the five Nigerian independents affected by the 16 month long (February 2016 to June 2017) shut -in of the Trans Forcados Pipeline System, the crude oil evacuation facility, NDWestern is the one that seems to have recovered most slowly. Neither crude oil nor gas output have been had a boost.
No. 7 NDWestern
No 8- LEKOIL
Nor does the Asset Management Team concept, the resort to joint operatorship with the NPDC, which has lifted production at Elcrest, FHN, Neconde and Shoreline, seem to have had any effect on NDWestern's output. The company's production has never gone above the 13,000 to 17,000BOPD range. Natural gas production has stayed largely below 300MMscf/d in spite of the completion of an additional 150MMscf/d capacity train to the 350MMscf/d capacity plant the company purchased from Shell and Co. Which is curious; because all the stars are lined up in NDWestern's firmament. The company is a consortium of three respected Nigerian E&P companies; NDPR, Waltersmith Petroman and
First E&P, as well as the Petrolin Group, controlled by Sam Dossou Aworet, the B e n i n o i s b u s i n e s s m a n . W i t h t h e improvement in output by its peers, it is hard to blame NPDC for this lack lustre performance in delivering hydrocarbon volumes. Perhaps it is the management of the debt liability. Perhaps there is something. NDWestern certainly knows what it is doing.
Midwestern Oil and Gas, holder and operator of the Umusadege field, was a star of the Nigerian marginal field firm ament. Will it continue to be the aggressive field developer it was up until 2015? In 2014, the company boosted its production capacity from 11,000 to 25,000BOPD. The part-government, part- privately owned upstream operator achieved this boost in produced volume through the addition of five wells, completion of water Injection upgrades and construction of the 52 km Umugini pipeline to the TFS, as an alternative to the ENI operated Kwale to Brass pipeline, which had restricted its production. Midwestern was the core investor in Eroton. By June 2018, the company was producing roughly 15,000BOPD.
An outgrowth of Martwestern Energy, formed by Midwestern, operator of the 15,000BOPD Umusadege field and Mart Resources, the Canadian junior which has now been bought out by the former through the London listed San Leon, Eroton's liquids production has stayed closer to 40,000BOPD in the past year compared with a figure closer to 50,000BOPD, which it delivered between late 2016 and mid-2017. Rampant oil theft has kept output to a minimum the company thinks it can manage. There are plans for an alternative evacuation route that minimises extensive pipeline to the coast.It is to its credit, in our ranking, that Eroton supplies natural gas to the fertiliser company Notore, although there's an upside to do more.
Eroton, like Aiteo makes the Talented Tenth through the quality of its asset. OML 18 holds 2P reserves estimate: 576MMBO of crude and condensates and 4.2Tcf of gas). But it has the added advantage of a combined experience of its constituent founders.
No 9-NECONDE
Lekoil, the AIM listed, Nigerian founded company, took the Nigerian Minister of Petroleum Resources to court in March 2018, over failure of the Government to grant consent for its investment in Oil Prospecting Lease (OPL) 310 block offshore Nigeria, following its acquisition of previous stake holding by Afren Plc. That's quite brave. But some say it is poor relationship management. With gross production of over 6,000BOPD in one field in which it doesn't even hold the licence, there is always something exciting happening for this minnow. Production from the field, Otaklkpo, has not ramped up to 10,000BOPD, as planned. The crude is pumped through a 6km, Lekoil constructed pipeline to an FPSO from where the Shell Western Supply and Trading Limited lifts it. By its acquisition of 17% in Oil Prospecting Lease (OPL) 310, investing $120Million in the field operations, Lekoil was instrumental to the discovery of the gas- condensate and oil field named Ogo, located in shallow to deeper waters in the Benin Basin. Its timing from equity acquisition to first oil in the Otakikpo marginal field (30 months) is a record by Nigerian standards. Although its interest In OPL 310, increased to 40% via the acquisition of the 22.8% from a subsidiary of Afren, is being held up by both partner issues and ministerial consent, Lekoil has shown the courage to prevail in spite of the Nigerian risk. By buying out the owners of OPL 325, in ultra deep water Benin Basin, and progressing seismic interpretation effort on the asset, it has done what Nigerian independents, as a rule, won't do: invested in wildcat exploration. Its activities in the Benin Basin is a key reason for renewed geoscience interest in the Basin, itself a bespoke member of the West African transform margin. One key reason we are bullish on Lekoil is its demonstrated effort to train young personnel. We are no longer excited about its Memorandum of Understanding with GE for appraisal and full field oil development of the Ogo structure, (a $600MM to $1Billion investment) in which GE Oil & Gas (now BHGE), is expected to receive a percentage of Lekoil's future cash flows from the Ogo Field, as well as the ability to supply its products and provide technical expertise throughout the life of the project. Lekoil has the fire In Its belly, it has fund raising skills and acquisitive - expansionary mind-set and is
interested in doing the work. Whatever its challenges, It's a company to watch.
Renergen CEO Stefano Marani left and Afrox MD Schaik Venter
Sunbird, for now, remains no more than a potential. A full year since the Department of Environmental Affairs (DEA) issued an Environmental Authorisation (EA) for the project, the company is not anywhere close to concluding the gas sales negotiations with Eskom, the South African state power utility which owns the Ankerlig power plant. Nor is Sunbird seen to be progressing any deal to sell gas for industrial uses like Renergen is doing. It will be a huge advantage to get the Ibhubesi gas flowing before the shot rings out to propel South Africa's domestic gas market. At around $1,2Billion, the estimated cost of the infrastructure to develop the resource, located in 200 metres of water, is enormous for a small company like Sunbird without the valid assurance of an anchor offtaker. But time is running out.
JSE listed Renergen describes itself as an integrated alternative and renewable energy business that invests in early stage alternative energy projects.But it started its project life three years ago by acquiring an onshore natural gas acreage from Molopo South Africa Exploration and Production. Renergen holds the first, and currently only, onshore petroleum production right in South Africa.
In the last two years more E&P companies, primarily owned by South Africans, have left the upstream market, such that it is
tempting to declare the end of the growth of South African E&P independents.
Several homegrown independent South African companies, including Tshipise Energy (Pty) and Sungu Sungu Petroleum, are exploring for natural gas, in coal beds, in the Karoo and offshore Orange Basin, but their distance to development is, on average, far off. Renergen is the only one pumping natural gas from subsurface reservoirs into the local market.PetroSA, the only other natural gas producer in the country, is a state owned enterprise.
AIM listed SacOil turned into a downstream company and changed its name to Efora. Thombo Petroleum, owned by Trevor Ridley, former Petroleum Advisor at BHP Billiton, disappeared into the folds of Canadian owned Africa Energy Corp.But apart from Sasol Exploration and Production International, which is the most visible and best resourced South African born E&P company, there are a couple of companies to consider:
Renergen is working on ramping up production by late 2019 from its acreage, which holds an estimated 142Billion standard
cubic feet of proven a n d p r o b a b l e r e s e r v e s , n e a r V i r g i n i a , a b o u t 300km southwest of Johannesburg. It is moving into liquefied natural gas (LNG) p r o d u c t i o n , “primarily serving t h e g r o w i n g domestic heavy duty truck market across Africa and emerging markets”, it says. Renergen has signed a n o f f t a k e agreement with South African Breweries (SAB) for the supply of liquefied natural gas to power its delivery trucks. For this project, it will initially roll out compressed natural gas to a small fleet of SAB trucks in Gauteng, the country's major commercial province.A POTENTIAL STAR IN THE SOUTH AFRICAN E&P FIRMAMENT is Sunbird, a gas explorer and developer which owns a 76% interest in the Ibhubesi Gas Project, Block 2A, offshore of the west coast of South Africa and is the operator of the block. The company was originally owned by Australians, and was sold to South Africans in 2016. The Ibhubesi Gas Project is the country's largest, undeveloped gas discovery, in the opinion of Sunbird and the local media. The independently certified gas reserves are 540 Bcf (2P) with “best estimate” prospectivity of close to 8 Tcf of gas, according to the company. The immediate focus of the project is provision of gas to the Ankerlig Power Station, an 11 year old, 1,338MW capacity thermal plant, designed to
be fired by natural gas, but instead, utilizing expensive diesel fuel. Sunbird's JV partner PetroSA, holds the remaining 24% in Ibhubesi.
ELSEWHERE, AFRICAN INDIES TO WATCH
South Africa Sprouts New Shoots
Tunisian indigenous E&P independent, TOPIC, is on course of delivering first oil from the Halk El Menzel field, in the block of the same name, offshore Tunisia, in the next two months.
TOPIC was established in 2000 by a combination of the Tunisian energy conglomerate, the Toumi Group group and two individuals (a drilling engineer named Mongi Ellouze and a lawyer by name Abdelmajid Kacem). The company also has exploration positions in the onshore Mateur prospecting block (50% equity) in the north of Tunisia, Jelma exploration block (15% equity) in the country's central west.
There has been several delays in the project, but the field is on course
TOPIC, the most visible indigenous Tunisian E&P enterprise is structured well enough to have a shareholder that includes the International Finance Corporation, Sarost Group, Banque de L'Habitat
Group and Société Tunisienne de Banque, apart from the core asset holders: the Toumi Group.
The Halk el Menzel concession block is located in the Gulf of Hammamet, in the Tunisian segment of the Mediterranean Sea. The Miocene limestone reservoirs in the field, which are the ones to be developed, are of the Ain Grab and Ketatna formations at depths ranging from 700 to 784metres Sub Sea.
Halk el Menzel is a marginal field: its recoverable reserves are all of e i g h t m i l l i o n barrels of crude oil and production is expected to peak at 12,000BOPD, a few months after p r o d u c t i o n commences, for the next two years after, before gradual reduction in daily output. So, to continue as a going concern, the company has to run an aggressive work programme to bring its other assets into development. The Serdj (Aptian) prospect-in the same Halk el Menzel concession- which has shown up in early appraisal of the main reservoir, is located in 3,000metre water depth.
Homegrown Tunisian Firm Close To First OilTough work developing assets at 700metre water depth in the Mediterranean
To continue as a going concern, the company has to run an aggressive work programme to bring its other assets into development.
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 838
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Vol 19, No 6, July 2018
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©Copyright 2018AFRICA OIL+GAS REPORT
Vol 19, No 6, July 2018
reportwww.africaoilgasreport.com
©Copyright 2018AFRICA OIL+GAS REPORT
TOTAL Normand Maximus Mul�-Func�onal Support 2016 EGINA FIELD Pointe Noire (People's Republic Of Congo) SolstadFarstad ASA DP3
TOTAL Saipem FDS-2 Pipe Layer 2011 EGINA FIELD NIGERIA Limassol (Cyprus) Saipem SpA DP3
TOTAL Jascon 21 Anchor Handling Tug/Supply 2008 EGINA_ Bonny (Nigeria) Sea Trucks Group DP2
TOTAL Bourbon Rhode Anchor Handling Tug 2006 ODUDU Odudu (Nigeria) Bourbon Offshore DP1
TOTAL Queen Victoria II Crew Boat 2012 ODUDU TERMINAL Escravos (Nigeria) Awaritse Nigeria Ltd
TOTAL Jones Tide Pla�orm Supply 2014 OFFON Bonny (Nigeria) Troms Offshore AS DP2
TOTAL Hellespont DefiancePla�orm Supply 2009 OFFSHORE Odudu (Nigeria) Seacor Marine Holdings Inc DP2
TOTAL Energy Scout Pla�orm Supply 2005 OFON Kwa Ibo (Nigeria) Golden Energy Offshore AS DP2
TOTAL Bourbon Ruby Pla�orm Supply 2008 OFON Kwa Ibo (Nigeria) Bourbon Offshore DP2
TOTAL Boudreaux Tide Anchor Handling Tug/Supply 2010 OFON Odudu (Nigeria) Tidewater Marine Inc DP2
TOTAL N/B Samsung HI Geoje 2089FPSO 2018 KRKJE>NGLAG Lagos (Nigeria) Total SA
EXXON Topaz Captain Mul�-Func�onal Support 2001 OFFSHORE Kwa Ibo (Nigeria) Topaz Energy and Marine Ltd DP2
EXXON Stanford Buzzard Pla�orm Supply 2011 OFFSHORE Kwa Ibo (Nigeria) Stanford Marine LLC DP2
EXXON Topaz Isra Pla�orm Supply 2014 OFFSHORE Kwa Ibo (Nigeria) Topaz Energy and Marine Ltd DP2
EXXON Usan FPSO FPSO 2011 OFFSHORE NIGERIA Usan Terminal (Nigeria) Total/Chevron/ExxonMobil/Nexen
EXXON Bourbon Evolu�on 808Mul�-Func�onal Support 2014 ONNE Onne (Nigeria) Bourbon Offshore DP3
EXXON MV Temile Pla�orm Supply 2013 ONNE PORT Kwa Ibo (Nigeria) CS Offshore DMCCO DP2
EXXON Jascon 55 Mul�-Func�onal Support 2013 OSO FIELD Onne (Nigeria) Sea Trucks Group DP2
EXXON Armada Tuah 81 Anchor Handling Tug/Supply 2010 OYO OIL FIELD Port Harcourt (Nigeria) Bumi Armada Naviga�on Sdn Bhd DP1
EXXON Siem Daya 1 Mul�-Func�onal Support 2013 UBIT Kwa Ibo (Nigeria) Daya Materials Bhd DP2
EXXON Jascon 69 Anchor Handling Tug/Supply 2015 UBIT FIELD Onne (Nigeria) Consolidated Projects BV DP2
EXXON Boa Deep C Mul�-Func�onal Support 2003 USAN Usan Terminal (Nigeria) Boa Offshore AS DP3
EXXON Osarugue Anchor Handling Tug 2011 USAN FIELD Onne (Nigeria) Starzs Marine & Engineering DP1
EXXON DSV Vinnice Diving Support 2014 USARI ANCH Kwa Ibo (Nigeria) Petrolog Ltd DP2
EXXON Bourbon Hes�a Pla�orm Supply 2006 YOHO Afia Terminal (Nigeria) Bourbon Offshore DP2
EXXON Bourbon Liberty 235Anchor Handling Tug/Supply 2010 YOHO Afia Terminal (Nigeria) Bourbon Offshore DP2
EXXON Jascon 39 Anchor Handling Tug/Supply 2007 YOHO Usan Terminal (Nigeria) Sea Trucks Group DP1
EXXON Wise Tide II Pla�orm Supply 2009 YOHO Yoho Terminal (Nigeria) Tidewater Marine Inc DP2
EXXON Topaz Xara Pla�orm Supply 2014 YOHO Onne (Nigeria) Topaz Energy and Marine Ltd DP2
EXXON Bemigho Pla�orm Supply 2015 YOHO Yoho Terminal (Nigeria) E.A. Temile & Sons Development Co Nigeria Ltd DP2
EXXON Surfer 256 Crew Boat 2006 YOHO- Yoho Terminal (Nigeria) Bourbon Offshore
EXXON Rajuno Tug 2009 YOHO FIELD Kwa Ibo (Nigeria) Bourbon Offshore
EXXON Topaz Amani Pla�orm Supply 2013 YOHO FIELD Yoho Terminal (Nigeria) Topaz Energy and Marine Ltd DP2
EXXON Afrik Macaw Anchor Handling Tug/Supply 2007 YOHO FSO Lagos (Nigeria) Smit Lamnalco Nigeria DP1
EXXON SVS Hawkins Crew Boat 2012 YOHO FSO Onne (Nigeria) Specialised Vessel Services Ltd
EXXON Anaiah Pla�orm Supply 2014 YOHO TERMINAL Usan Terminal (Nigeria) CS Offshore DMCCO DP2
ORIENTAL ENERGY Jascon 46 Anchor Handling Tug 2010 EBOK Onne (Nigeria) Sea Trucks Group
ORIENTAL ENERGY Akassa Supporter Tug 2009 EBOK FIED Tin Can Island (Nigeria) Century Energy Services Ltd
ORIENTAL ENERGY Int'l Master Crew Boat 2004 EBOK FIELD Okrika (Nigeria) Interna�onal Offshore Services LLC
ORIENTAL ENERGY Bourbon Liberty 237Anchor Handling Tug/Supply 2011 EBOK FIELD Bonny (Nigeria) Bourbon Offshore DP2
SHELL Sea Eagle FPSO 2002 Sea Eagle Terminal (Nigeria) Shell Petroleum Development Company of Nigeria Ltd
SHELL Bonga FPSO 2005 Bonga Terminal (Nigeria) Shell Nigeria Explora�on & Produc�on Co (SNEPCO)
SHELL Charis Tug 2011 Bonny (Nigeria) C & I Leasing plc
SHELL Jascon 65 Crew Boat 2014 BONGA Onne (Nigeria) Consolidated Projects BV
SHELL Bourbon Diamond Pla�orm Supply 2008 BONGA FIELD Onne (Nigeria) Bourbon Offshore DP2
SHELL A60 Pla�orm Supply 2018 BONGA FIELD Bonga Terminal (Nigeria) CS Offshore DMCCO DP2
SHELL Miden Crystal Tug 2012 BONGA FIELD Bonga Terminal (Nigeria) Miden Systems Ltd
SHELL ENSCO DS-10 Drillship 2017 BONGA FIELD Bonga Terminal (Nigeria) Ensco Offshore Interna�onal DP3
SHELL Toscana Tug 2016 BONGA FIELD NIG Bonga Terminal (Nigeria) Damen Shipyards Gorinchem
SHELL Jascon 22 Anchor Handling Tug/Supply 1975 BONNY Onne (Nigeria) Sea Trucks Group
SHELL Walvis 7 Anchor Handling Tug/Supply 1982 BONNY Onne (Nigeria) West African Ventures Ltd - Onne
SHELL SVS Raleigh Crew Boat 1990 BONNY Tin Can Island (Nigeria) Specialised Vessel Services Ltd
SHELL SL Rhone Tug 2000 BONNY Usan Terminal (Nigeria) Smit Harbour Towage Co BV
SHELL HD Pioneer Diving Support 1996 BONNY TERMINAL Lagos (Nigeria) HydroDive Offshore Interna�onal Ltd DP2
SHELL Ephraim Tug 2011 BONNYOFFSH Bonny (Nigeria) C & I Leasing plc
SHELL Bourbon Liberty 217Anchor Handling Tug/Supply 2010 EA FIELD Sea Eagle Terminal (Nigeria) Bourbon Offshore DP2
SHELL Bello 2015 Anchor Handling Tug/Supply 2017 EA OILFIELD Lagos (Nigeria) Interna�onal Mari�me Services Pty Ltd DP2
SHELL Crest Star 2 Tug 2009 NLNG BONNY Lagos (Nigeria) Pacific Crest Pte Ltd
SHELL Vigeo Adebola Pla�orm Supply 2006 ONNE Onne (Nigeria) Thome Offshore Management Pte Ltd DP2
SHELL Eunice III Pla�orm Supply 2009 ONNE Bonny (Nigeria) SLOK Nigeria Ltd DP1
SHELL Hudson Capt ElenduCrew Boat 1979 SECURITY DUTIES Bonny (Nigeria) Hudson Pacific Energy Ltd
SHELL SVS Monck Crew Boat 2010 SECURITY DUTIES Bonny (Nigeria) Specialised Vessel Services Ltd
SHELL Tulja Bhavani FSO 1998 FORCADOS-NIGERIA Tulja Terminal (Nigeria) Sterling Oil Explora�on & Energy Produc�on Company Limited (SEEPCO)
TOTAL Princess Aweni FPSO 1975 Okoro Terminal (Nigeria) Amni Interna�onal Petroleum Development Co. Ltd
TOTAL African Vision Mul�-Func�onal Support 2010 AKPO Okwori Terminal (Nigeria) Marine Pla�orms Ltd DP2
TOTAL Afrik Merganser Anchor Handling Tug/Supply 2010 AKPO Bonny (Nigeria) Afrikdelta Marine Ltd DP1
TOTAL FPSO Akpo FPSO 2008 AKPO FIELD Total Upstream Nigeria Ltd (TUPNI)
TOTAL Queen Victoria IV Crew Boat 2015 AKPO FIELD Yoho Terminal (Nigeria) Awaritse Nigeria Ltd
TOTAL MDPL Randeep Pla�orm Supply 2014 AKPO TERM1 Bonny (Nigeria) CS Offshore DMCCO DP2
TOTAL Saipem 3000 Heavy Li�/Crane Ship 1984 EGINA Setubal (Portugal) Saipem SpA DP3
TOTAL West Jupiter Drillship 2014 EGINA Singapore (Singapore) Seadrill Ltd DP3
TOTAL Ajemisan Anchor Handling Tug 2014 EGINA FIELD Bonny (Nigeria) E.A. Temile & Sons Development Co Nigeria Ltd DP2
ADDAX Adoon FPSO 1985 FPSO_ANTAN Antan (Nigeria) Yinson Produc�on AS
ADDAX Swordfish 5 Anchor Handling Tug 2010 OKWORI TERMINAL Onne (Nigeria) GO Offshore Asia Pte Ltd
ADDAX Sendje Berge FPSO 1974 OKWORI TERMINAL Okwori Terminal (Nigeria) BW Offshore AS
AGIP FPSO Mystras FPSO 1976 OKONO Okono Terminal (Nigeria) Nigerian Petroleum Development Company (NPDC)
AGIP Ihuaku I Tug 2005 OKONO FIELD Onne (Nigeria) Beks Kimse Ltd
AGIP Bourbon Liberty 232Anchor Handling Tug/Supply 2010 OKONO FIELD Okono Terminal (Nigeria) Bourbon Offshore DP2
AGIP Oritselaju Tug 2017 OKONO FIELD Onne (Nigeria) E.A. Temile & Sons Development Co Nigeria Ltd
AGIP Ugbana Anchor Handling Tug/Supply 2000 OKORO Okoro Terminal (Nigeria) World Carrier Corpora�on SA DP1
AGIP Asterie Pla�orm Supply 2004 OKORO FIELD Okoro Terminal (Nigeria) Bourbon Offshore DP2
AGIP Fanning Tide Pla�orm Supply 2013 OKORO FIELD Okoro Terminal (Nigeria) Tidewater Marine Inc DP2
CHEVRON Agbami FPSO FPSO 2007
Agbami Terminal (Nigeria) Star Deepwater Petroleum Ltd
CHEVRON T1 Abike Pla�orm Supply 2001 AGBAMI Onne (Nigeria) Tidewater Marine Inc DP2
CHEVRON Bourbon Yack Tug 2009 AGBAMI Agbami Terminal (Nigeria) Bourbon Offshore
CHEVRON Maniviki Rover Pla�orm Supply 2014 AGBAMI Agbami Terminal (Nigeria) Petrostuff Nigeria Ltd. DP2
CHEVRON Prince Johannsson IIAnchor Handling Tug/Supply 2005 AGBAMI Bonny (Nigeria) Awaritse Nigeria Ltd DP2
CHEVRON A�ma Crew Boat 2014 AGBAMI FIELD Bonny (Nigeria) Mul�plan Nigeria Ltd
CHEVRON Bourbon Auroch Tug 2009 AGBAMI FPSO Agbami Terminal (Nigeria) Bourbon Offshore
CHEVRON Prince Job 1 Pla�orm Supply 2015 AGBAMI TERMINAL Bonny (Nigeria) Awaritse Nigeria Ltd DP2
CHEVRON Queen Ofonime Pla�orm Supply 2013 AGBAMIFIELD Agbami Terminal (Nigeria) VM Marine Interna�onal DP2
CHEVRON HD Steadfast Anchor Handling Tug 2008 DIVING OPERATIONS Escravos (Nigeria) HydroDive Offshore Interna�onal Ltd
CHEVRON Tessy T U�lity/Workboat 1980 DOUALA Escravos (Nigeria) Riverman Nigeria Ltd
CHEVRON Janice 1 Research Vessel 1981 ESCRAVOS Escravos (Nigeria) Awaritse Nigeria Ltd DP1
CHEVRON Escravos LPG FSO LPG/FSO 1997 ESCRAVOS Escravos (Nigeria) Chevron Nigeria Ltd
CHEVRON Liberty Self Eleva�ng Install. Barge 2009 ESCRAVOS Escravos (Nigeria) JAD Construc�on Ltd
CHEVRON Afrik Ekulu Tug 2005 ESCRAVOS Pennington (Nigeria) Smit Interna�onal NV
CHEVRON Mossalem Tide Anchor Handling Tug/Supply 2011 ESCRAVOS Escravos (Nigeria) Tidewater Marine Inc DP2
CHEVRON MLS Saratu Anchor Handling Tug 2013 ESCRAVOS Lagos (Nigeria) Sal Mari�me Pte Ltd
CHEVRON Jascon 23 Anchor Handling Tug/Supply 2006 ESCRAVOS Onne (Nigeria) Sea Trucks Group DP1
CHEVRON HD Scorpion Anchor Handling Tug/Supply 2009 ESCRAVOS Escravos (Nigeria) HydroDive Offshore Interna�onal Ltd
CHEVRON Jascon 67 Anchor Handling Tug/Supply 2013 ESCRAVOS FPSO Escravos (Nigeria) West African Ventures Ltd - Onne DP2
CHEVRON Midfielder Tug 1973 ESCRAVOS OFFSHOREForcados (Nigeria) Prometheus Mari�me Ltd.
CHEVRON SL Twite Tug 2006 ESCRAVOS.DOCK .. . Escravos (Nigeria) Smit Lamnalco Netherlands BV
CHEVRON Beverly Eymard Self Eleva�ng Install. Barge 2010 FUNIWA PP Escravos (Nigeria) Offshore Marine Contractors Inc
CHEVRON Seacor Future Self Eleva�ng Install. Barge 2009 MALU 11 Warri (Nigeria) Seacor Li�oats LLC
CHEVRON TSL Intrepid Anchor Handling Tug/Supply 2006 MEJI Escravos (Nigeria) TSL Marine Ltd DP1
CHEVRON ENSCO DS- 4 Drillship 2010 NIGERIA-AGBAMI Agbami Terminal (Nigeria) Ensco Offshore Interna�onal DP3
CHEVRON Kathryn Eymard Self Eleva�ng Install. Barge 2007 OKAN Escravos (Nigeria) Offshore Marine Contractors Inc
CHEVRON Louis J. Eymard Self Eleva�ng Install. Barge 2010 OKAN 27 Escravos (Nigeria) JAD Construc�on Ltd
CHEVRON African Inspira�on Mul�-Func�onal Support 2014 ONNE Onne (Nigeria) Marine Pla�orms Ltd DP2
CHEVRON Afrik Enyi Tug 2005 PENINGTON TERMINALEscravos (Nigeria) Smit Transport Europe BV
ENI Ark Charly Anchor Handling Tug/Supply 2009 ABO FIELD Abo Terminal (Nigeria) Omak Mari�me Ltd DP2
ENI Ark Tori Anchor Handling Tug/Supply 2008 ABO OILFIELD Bonny (Nigeria) RK8 Offshore DP2
EXXON Trident XIV Jack-up Drilling Rig 1982 Afia Terminal (Nigeria) Shelf Drilling Ltd.
EXXON Afrik Malkoha Anchor Handling Tug/Supply 2008 FPSO UNITY Kwa Ibo (Nigeria) Afrikdelta Marine Ltd DP1
EXXON Lamnalco Colibri Anchor Handling Tug 2005 ADUA_A Erha Terminal (Nigeria) Smit Lamnalco Nigeria
EXXON Bourbon Libeccio Crew Boat 2008 AMENAL Bonny (Nigeria) Bourbon Offshore DP1
EXXON Fol Vision 2 Crew Boat 2014 AMENAM FIELD Kwa Ibo (Nigeria) Fairway Offshore Ltd
EXXON Teras Conquest 1 Self Eleva�ng Install. Barge 2010 EAP Kwa Ibo (Nigeria) Teras Offshore Pte Ltd
EXXON Erha FPSO FPSO 2005 ERHA FIELD Erha Terminal (Nigeria) ExxonMobil Corpora�on
EXXON Topaz Sophie Pla�orm Supply 2013 ERHA FPSO Erha Terminal (Nigeria) Topaz Energy and Marine Ltd DP2
EXXON FSO Unity FSO 2002 FSO Odudu (Nigeria) Total SA
EXXON Kylie Self Eleva�ng Install. Barge 2009 INIM PP Kwa Ibo (Nigeria) Michharry and Company Ltd
EXXON NSC Glory Accommoda�on Barge 2015 INIM>WEST Kwa Ibo (Nigeria) Nine Sun Group Marine Co
EXXON Sophia Maria Pla�orm Supply 2013 JV MOBIL Onne (Nigeria) SLOK Nigeria Ltd DP2
EXXON Surf Supporter Mul�-Func�onal Support 2014 JVO FIELD Kwa Ibo (Nigeria) Ry Offshore Pte Ltd DP2
EXXON Topaz Seema Pla�orm Supply 2014 MOBIL FIELD Yoho Terminal (Nigeria) Topaz Energy and Marine Ltd DP2
EXXON Prince Joseph 1 Pla�orm Supply 2012 MOBIL FIELD/ONNE Onne (Nigeria) Awaritse Nigeria Ltd DP2
EXXON Princess Ebikene Crew Boat 2015 MOBIL OIL FIELD Onne (Nigeria) Zomay Marine & Logis�cs Ltd
EXXON Whisky Pride Crew Boat 2014 MOBILOFFSHOREFIELDOnne (Nigeria) Dewayles Interna�onal Ltd
EXXON Bull Ray Self Eleva�ng Install. Barge 2008 MPN FIELD Kwa Ibo (Nigeria) Hercules Li�boats Company LLC
EXXON HD Contender ROV/Submersible Support 1996 OFFSHORE Kwa Ibo (Nigeria) HydroDive Offshore Interna�onal Ltd DP2
AFRICA OIL + GAS REPORT J U N E 2 0 1 8 39
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 838
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Nigerian E&P Vessel Count June 2018
In Association with In Association with
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Vol 19, No 6, July 2018
reportwww.africaoilgasreport.com
©Copyright 2018AFRICA OIL+GAS REPORT
Vol 19, No 6, July 2018
reportwww.africaoilgasreport.com
©Copyright 2018AFRICA OIL+GAS REPORT
TOTAL Normand Maximus Mul�-Func�onal Support 2016 EGINA FIELD Pointe Noire (People's Republic Of Congo) SolstadFarstad ASA DP3
TOTAL Saipem FDS-2 Pipe Layer 2011 EGINA FIELD NIGERIA Limassol (Cyprus) Saipem SpA DP3
TOTAL Jascon 21 Anchor Handling Tug/Supply 2008 EGINA_ Bonny (Nigeria) Sea Trucks Group DP2
TOTAL Bourbon Rhode Anchor Handling Tug 2006 ODUDU Odudu (Nigeria) Bourbon Offshore DP1
TOTAL Queen Victoria II Crew Boat 2012 ODUDU TERMINAL Escravos (Nigeria) Awaritse Nigeria Ltd
TOTAL Jones Tide Pla�orm Supply 2014 OFFON Bonny (Nigeria) Troms Offshore AS DP2
TOTAL Hellespont DefiancePla�orm Supply 2009 OFFSHORE Odudu (Nigeria) Seacor Marine Holdings Inc DP2
TOTAL Energy Scout Pla�orm Supply 2005 OFON Kwa Ibo (Nigeria) Golden Energy Offshore AS DP2
TOTAL Bourbon Ruby Pla�orm Supply 2008 OFON Kwa Ibo (Nigeria) Bourbon Offshore DP2
TOTAL Boudreaux Tide Anchor Handling Tug/Supply 2010 OFON Odudu (Nigeria) Tidewater Marine Inc DP2
TOTAL N/B Samsung HI Geoje 2089FPSO 2018 KRKJE>NGLAG Lagos (Nigeria) Total SA
EXXON Topaz Captain Mul�-Func�onal Support 2001 OFFSHORE Kwa Ibo (Nigeria) Topaz Energy and Marine Ltd DP2
EXXON Stanford Buzzard Pla�orm Supply 2011 OFFSHORE Kwa Ibo (Nigeria) Stanford Marine LLC DP2
EXXON Topaz Isra Pla�orm Supply 2014 OFFSHORE Kwa Ibo (Nigeria) Topaz Energy and Marine Ltd DP2
EXXON Usan FPSO FPSO 2011 OFFSHORE NIGERIA Usan Terminal (Nigeria) Total/Chevron/ExxonMobil/Nexen
EXXON Bourbon Evolu�on 808Mul�-Func�onal Support 2014 ONNE Onne (Nigeria) Bourbon Offshore DP3
EXXON MV Temile Pla�orm Supply 2013 ONNE PORT Kwa Ibo (Nigeria) CS Offshore DMCCO DP2
EXXON Jascon 55 Mul�-Func�onal Support 2013 OSO FIELD Onne (Nigeria) Sea Trucks Group DP2
EXXON Armada Tuah 81 Anchor Handling Tug/Supply 2010 OYO OIL FIELD Port Harcourt (Nigeria) Bumi Armada Naviga�on Sdn Bhd DP1
EXXON Siem Daya 1 Mul�-Func�onal Support 2013 UBIT Kwa Ibo (Nigeria) Daya Materials Bhd DP2
EXXON Jascon 69 Anchor Handling Tug/Supply 2015 UBIT FIELD Onne (Nigeria) Consolidated Projects BV DP2
EXXON Boa Deep C Mul�-Func�onal Support 2003 USAN Usan Terminal (Nigeria) Boa Offshore AS DP3
EXXON Osarugue Anchor Handling Tug 2011 USAN FIELD Onne (Nigeria) Starzs Marine & Engineering DP1
EXXON DSV Vinnice Diving Support 2014 USARI ANCH Kwa Ibo (Nigeria) Petrolog Ltd DP2
EXXON Bourbon Hes�a Pla�orm Supply 2006 YOHO Afia Terminal (Nigeria) Bourbon Offshore DP2
EXXON Bourbon Liberty 235Anchor Handling Tug/Supply 2010 YOHO Afia Terminal (Nigeria) Bourbon Offshore DP2
EXXON Jascon 39 Anchor Handling Tug/Supply 2007 YOHO Usan Terminal (Nigeria) Sea Trucks Group DP1
EXXON Wise Tide II Pla�orm Supply 2009 YOHO Yoho Terminal (Nigeria) Tidewater Marine Inc DP2
EXXON Topaz Xara Pla�orm Supply 2014 YOHO Onne (Nigeria) Topaz Energy and Marine Ltd DP2
EXXON Bemigho Pla�orm Supply 2015 YOHO Yoho Terminal (Nigeria) E.A. Temile & Sons Development Co Nigeria Ltd DP2
EXXON Surfer 256 Crew Boat 2006 YOHO- Yoho Terminal (Nigeria) Bourbon Offshore
EXXON Rajuno Tug 2009 YOHO FIELD Kwa Ibo (Nigeria) Bourbon Offshore
EXXON Topaz Amani Pla�orm Supply 2013 YOHO FIELD Yoho Terminal (Nigeria) Topaz Energy and Marine Ltd DP2
EXXON Afrik Macaw Anchor Handling Tug/Supply 2007 YOHO FSO Lagos (Nigeria) Smit Lamnalco Nigeria DP1
EXXON SVS Hawkins Crew Boat 2012 YOHO FSO Onne (Nigeria) Specialised Vessel Services Ltd
EXXON Anaiah Pla�orm Supply 2014 YOHO TERMINAL Usan Terminal (Nigeria) CS Offshore DMCCO DP2
ORIENTAL ENERGY Jascon 46 Anchor Handling Tug 2010 EBOK Onne (Nigeria) Sea Trucks Group
ORIENTAL ENERGY Akassa Supporter Tug 2009 EBOK FIED Tin Can Island (Nigeria) Century Energy Services Ltd
ORIENTAL ENERGY Int'l Master Crew Boat 2004 EBOK FIELD Okrika (Nigeria) Interna�onal Offshore Services LLC
ORIENTAL ENERGY Bourbon Liberty 237Anchor Handling Tug/Supply 2011 EBOK FIELD Bonny (Nigeria) Bourbon Offshore DP2
SHELL Sea Eagle FPSO 2002 Sea Eagle Terminal (Nigeria) Shell Petroleum Development Company of Nigeria Ltd
SHELL Bonga FPSO 2005 Bonga Terminal (Nigeria) Shell Nigeria Explora�on & Produc�on Co (SNEPCO)
SHELL Charis Tug 2011 Bonny (Nigeria) C & I Leasing plc
SHELL Jascon 65 Crew Boat 2014 BONGA Onne (Nigeria) Consolidated Projects BV
SHELL Bourbon Diamond Pla�orm Supply 2008 BONGA FIELD Onne (Nigeria) Bourbon Offshore DP2
SHELL A60 Pla�orm Supply 2018 BONGA FIELD Bonga Terminal (Nigeria) CS Offshore DMCCO DP2
SHELL Miden Crystal Tug 2012 BONGA FIELD Bonga Terminal (Nigeria) Miden Systems Ltd
SHELL ENSCO DS-10 Drillship 2017 BONGA FIELD Bonga Terminal (Nigeria) Ensco Offshore Interna�onal DP3
SHELL Toscana Tug 2016 BONGA FIELD NIG Bonga Terminal (Nigeria) Damen Shipyards Gorinchem
SHELL Jascon 22 Anchor Handling Tug/Supply 1975 BONNY Onne (Nigeria) Sea Trucks Group
SHELL Walvis 7 Anchor Handling Tug/Supply 1982 BONNY Onne (Nigeria) West African Ventures Ltd - Onne
SHELL SVS Raleigh Crew Boat 1990 BONNY Tin Can Island (Nigeria) Specialised Vessel Services Ltd
SHELL SL Rhone Tug 2000 BONNY Usan Terminal (Nigeria) Smit Harbour Towage Co BV
SHELL HD Pioneer Diving Support 1996 BONNY TERMINAL Lagos (Nigeria) HydroDive Offshore Interna�onal Ltd DP2
SHELL Ephraim Tug 2011 BONNYOFFSH Bonny (Nigeria) C & I Leasing plc
SHELL Bourbon Liberty 217Anchor Handling Tug/Supply 2010 EA FIELD Sea Eagle Terminal (Nigeria) Bourbon Offshore DP2
SHELL Bello 2015 Anchor Handling Tug/Supply 2017 EA OILFIELD Lagos (Nigeria) Interna�onal Mari�me Services Pty Ltd DP2
SHELL Crest Star 2 Tug 2009 NLNG BONNY Lagos (Nigeria) Pacific Crest Pte Ltd
SHELL Vigeo Adebola Pla�orm Supply 2006 ONNE Onne (Nigeria) Thome Offshore Management Pte Ltd DP2
SHELL Eunice III Pla�orm Supply 2009 ONNE Bonny (Nigeria) SLOK Nigeria Ltd DP1
SHELL Hudson Capt ElenduCrew Boat 1979 SECURITY DUTIES Bonny (Nigeria) Hudson Pacific Energy Ltd
SHELL SVS Monck Crew Boat 2010 SECURITY DUTIES Bonny (Nigeria) Specialised Vessel Services Ltd
SHELL Tulja Bhavani FSO 1998 FORCADOS-NIGERIA Tulja Terminal (Nigeria) Sterling Oil Explora�on & Energy Produc�on Company Limited (SEEPCO)
TOTAL Princess Aweni FPSO 1975 Okoro Terminal (Nigeria) Amni Interna�onal Petroleum Development Co. Ltd
TOTAL African Vision Mul�-Func�onal Support 2010 AKPO Okwori Terminal (Nigeria) Marine Pla�orms Ltd DP2
TOTAL Afrik Merganser Anchor Handling Tug/Supply 2010 AKPO Bonny (Nigeria) Afrikdelta Marine Ltd DP1
TOTAL FPSO Akpo FPSO 2008 AKPO FIELD Total Upstream Nigeria Ltd (TUPNI)
TOTAL Queen Victoria IV Crew Boat 2015 AKPO FIELD Yoho Terminal (Nigeria) Awaritse Nigeria Ltd
TOTAL MDPL Randeep Pla�orm Supply 2014 AKPO TERM1 Bonny (Nigeria) CS Offshore DMCCO DP2
TOTAL Saipem 3000 Heavy Li�/Crane Ship 1984 EGINA Setubal (Portugal) Saipem SpA DP3
TOTAL West Jupiter Drillship 2014 EGINA Singapore (Singapore) Seadrill Ltd DP3
TOTAL Ajemisan Anchor Handling Tug 2014 EGINA FIELD Bonny (Nigeria) E.A. Temile & Sons Development Co Nigeria Ltd DP2
ADDAX Adoon FPSO 1985 FPSO_ANTAN Antan (Nigeria) Yinson Produc�on AS
ADDAX Swordfish 5 Anchor Handling Tug 2010 OKWORI TERMINAL Onne (Nigeria) GO Offshore Asia Pte Ltd
ADDAX Sendje Berge FPSO 1974 OKWORI TERMINAL Okwori Terminal (Nigeria) BW Offshore AS
AGIP FPSO Mystras FPSO 1976 OKONO Okono Terminal (Nigeria) Nigerian Petroleum Development Company (NPDC)
AGIP Ihuaku I Tug 2005 OKONO FIELD Onne (Nigeria) Beks Kimse Ltd
AGIP Bourbon Liberty 232Anchor Handling Tug/Supply 2010 OKONO FIELD Okono Terminal (Nigeria) Bourbon Offshore DP2
AGIP Oritselaju Tug 2017 OKONO FIELD Onne (Nigeria) E.A. Temile & Sons Development Co Nigeria Ltd
AGIP Ugbana Anchor Handling Tug/Supply 2000 OKORO Okoro Terminal (Nigeria) World Carrier Corpora�on SA DP1
AGIP Asterie Pla�orm Supply 2004 OKORO FIELD Okoro Terminal (Nigeria) Bourbon Offshore DP2
AGIP Fanning Tide Pla�orm Supply 2013 OKORO FIELD Okoro Terminal (Nigeria) Tidewater Marine Inc DP2
CHEVRON Agbami FPSO FPSO 2007
Agbami Terminal (Nigeria) Star Deepwater Petroleum Ltd
CHEVRON T1 Abike Pla�orm Supply 2001 AGBAMI Onne (Nigeria) Tidewater Marine Inc DP2
CHEVRON Bourbon Yack Tug 2009 AGBAMI Agbami Terminal (Nigeria) Bourbon Offshore
CHEVRON Maniviki Rover Pla�orm Supply 2014 AGBAMI Agbami Terminal (Nigeria) Petrostuff Nigeria Ltd. DP2
CHEVRON Prince Johannsson IIAnchor Handling Tug/Supply 2005 AGBAMI Bonny (Nigeria) Awaritse Nigeria Ltd DP2
CHEVRON A�ma Crew Boat 2014 AGBAMI FIELD Bonny (Nigeria) Mul�plan Nigeria Ltd
CHEVRON Bourbon Auroch Tug 2009 AGBAMI FPSO Agbami Terminal (Nigeria) Bourbon Offshore
CHEVRON Prince Job 1 Pla�orm Supply 2015 AGBAMI TERMINAL Bonny (Nigeria) Awaritse Nigeria Ltd DP2
CHEVRON Queen Ofonime Pla�orm Supply 2013 AGBAMIFIELD Agbami Terminal (Nigeria) VM Marine Interna�onal DP2
CHEVRON HD Steadfast Anchor Handling Tug 2008 DIVING OPERATIONS Escravos (Nigeria) HydroDive Offshore Interna�onal Ltd
CHEVRON Tessy T U�lity/Workboat 1980 DOUALA Escravos (Nigeria) Riverman Nigeria Ltd
CHEVRON Janice 1 Research Vessel 1981 ESCRAVOS Escravos (Nigeria) Awaritse Nigeria Ltd DP1
CHEVRON Escravos LPG FSO LPG/FSO 1997 ESCRAVOS Escravos (Nigeria) Chevron Nigeria Ltd
CHEVRON Liberty Self Eleva�ng Install. Barge 2009 ESCRAVOS Escravos (Nigeria) JAD Construc�on Ltd
CHEVRON Afrik Ekulu Tug 2005 ESCRAVOS Pennington (Nigeria) Smit Interna�onal NV
CHEVRON Mossalem Tide Anchor Handling Tug/Supply 2011 ESCRAVOS Escravos (Nigeria) Tidewater Marine Inc DP2
CHEVRON MLS Saratu Anchor Handling Tug 2013 ESCRAVOS Lagos (Nigeria) Sal Mari�me Pte Ltd
CHEVRON Jascon 23 Anchor Handling Tug/Supply 2006 ESCRAVOS Onne (Nigeria) Sea Trucks Group DP1
CHEVRON HD Scorpion Anchor Handling Tug/Supply 2009 ESCRAVOS Escravos (Nigeria) HydroDive Offshore Interna�onal Ltd
CHEVRON Jascon 67 Anchor Handling Tug/Supply 2013 ESCRAVOS FPSO Escravos (Nigeria) West African Ventures Ltd - Onne DP2
CHEVRON Midfielder Tug 1973 ESCRAVOS OFFSHOREForcados (Nigeria) Prometheus Mari�me Ltd.
CHEVRON SL Twite Tug 2006 ESCRAVOS.DOCK .. . Escravos (Nigeria) Smit Lamnalco Netherlands BV
CHEVRON Beverly Eymard Self Eleva�ng Install. Barge 2010 FUNIWA PP Escravos (Nigeria) Offshore Marine Contractors Inc
CHEVRON Seacor Future Self Eleva�ng Install. Barge 2009 MALU 11 Warri (Nigeria) Seacor Li�oats LLC
CHEVRON TSL Intrepid Anchor Handling Tug/Supply 2006 MEJI Escravos (Nigeria) TSL Marine Ltd DP1
CHEVRON ENSCO DS- 4 Drillship 2010 NIGERIA-AGBAMI Agbami Terminal (Nigeria) Ensco Offshore Interna�onal DP3
CHEVRON Kathryn Eymard Self Eleva�ng Install. Barge 2007 OKAN Escravos (Nigeria) Offshore Marine Contractors Inc
CHEVRON Louis J. Eymard Self Eleva�ng Install. Barge 2010 OKAN 27 Escravos (Nigeria) JAD Construc�on Ltd
CHEVRON African Inspira�on Mul�-Func�onal Support 2014 ONNE Onne (Nigeria) Marine Pla�orms Ltd DP2
CHEVRON Afrik Enyi Tug 2005 PENINGTON TERMINALEscravos (Nigeria) Smit Transport Europe BV
ENI Ark Charly Anchor Handling Tug/Supply 2009 ABO FIELD Abo Terminal (Nigeria) Omak Mari�me Ltd DP2
ENI Ark Tori Anchor Handling Tug/Supply 2008 ABO OILFIELD Bonny (Nigeria) RK8 Offshore DP2
EXXON Trident XIV Jack-up Drilling Rig 1982 Afia Terminal (Nigeria) Shelf Drilling Ltd.
EXXON Afrik Malkoha Anchor Handling Tug/Supply 2008 FPSO UNITY Kwa Ibo (Nigeria) Afrikdelta Marine Ltd DP1
EXXON Lamnalco Colibri Anchor Handling Tug 2005 ADUA_A Erha Terminal (Nigeria) Smit Lamnalco Nigeria
EXXON Bourbon Libeccio Crew Boat 2008 AMENAL Bonny (Nigeria) Bourbon Offshore DP1
EXXON Fol Vision 2 Crew Boat 2014 AMENAM FIELD Kwa Ibo (Nigeria) Fairway Offshore Ltd
EXXON Teras Conquest 1 Self Eleva�ng Install. Barge 2010 EAP Kwa Ibo (Nigeria) Teras Offshore Pte Ltd
EXXON Erha FPSO FPSO 2005 ERHA FIELD Erha Terminal (Nigeria) ExxonMobil Corpora�on
EXXON Topaz Sophie Pla�orm Supply 2013 ERHA FPSO Erha Terminal (Nigeria) Topaz Energy and Marine Ltd DP2
EXXON FSO Unity FSO 2002 FSO Odudu (Nigeria) Total SA
EXXON Kylie Self Eleva�ng Install. Barge 2009 INIM PP Kwa Ibo (Nigeria) Michharry and Company Ltd
EXXON NSC Glory Accommoda�on Barge 2015 INIM>WEST Kwa Ibo (Nigeria) Nine Sun Group Marine Co
EXXON Sophia Maria Pla�orm Supply 2013 JV MOBIL Onne (Nigeria) SLOK Nigeria Ltd DP2
EXXON Surf Supporter Mul�-Func�onal Support 2014 JVO FIELD Kwa Ibo (Nigeria) Ry Offshore Pte Ltd DP2
EXXON Topaz Seema Pla�orm Supply 2014 MOBIL FIELD Yoho Terminal (Nigeria) Topaz Energy and Marine Ltd DP2
EXXON Prince Joseph 1 Pla�orm Supply 2012 MOBIL FIELD/ONNE Onne (Nigeria) Awaritse Nigeria Ltd DP2
EXXON Princess Ebikene Crew Boat 2015 MOBIL OIL FIELD Onne (Nigeria) Zomay Marine & Logis�cs Ltd
EXXON Whisky Pride Crew Boat 2014 MOBILOFFSHOREFIELDOnne (Nigeria) Dewayles Interna�onal Ltd
EXXON Bull Ray Self Eleva�ng Install. Barge 2008 MPN FIELD Kwa Ibo (Nigeria) Hercules Li�boats Company LLC
EXXON HD Contender ROV/Submersible Support 1996 OFFSHORE Kwa Ibo (Nigeria) HydroDive Offshore Interna�onal Ltd DP2
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Temile claims a fleet of 16 offshore vessels, acquired within the last 5 years. The new carriers would be the first of their kind in the West African oil and gas market and would enable the company service an on-going time charter LPG contract with NLNG.
Tony Attah, CEO NLNG said the transaction was indeed ground breaking, explaining that it supports the quest to develop the domestic LPG market and aid the growth of indigenous
companies in the process. “NLNG's domestic LPG intervention scheme aligns with our business focus of bringing energy to the world and helping to build a better Nigeria” Attah stated.
“We have extensive experience in various sectors of the oil and gas industry in Nigeria, with particular interest in the offshore
shipping and logistics”, said Alfred Temile, CEO, Temile Development, on the sidelines of signing the shipbuilding contract in London. “Our entrance into LPG market is exciting and we are in very safe hands to have ordered a LPG carrier from Hyundai Mipo Dockyard “This will no doubt increase the participation of Nigerian investors in the LPG space.”
The vessels are valued at over $120Million with the first carrier expected to be delivered by the first quarter of 2020.
The Nigerian shipping firm, Temile Development has signed a ship building contract with Hyundai Heavy Industries
Limited, the South Korean shipbuilder; to build one firm and one optional Liquefied Petroleum Gas (LPG) carriers.
“Over the past few months, we have been significantly ramping up our operations, and I am pleased to announce further growth in our geographic footprint and operational portfolio with this long-term deployment, which marks our entry into Africa”, says Abdulrahman Essa Al-Mannai, the company's President and CEO. “Milaha Explorer is a new
and modern vessel, and we wish its captain and crew safe and successful operations.”
Qatar-based Milaha, a maritime and l o g i s t i c s c o n g l o m e ra t e , h a s announced the deployment of its liftboat, Milaha Explorer, off the
coast of West Africa as part of a long-term charter with a major international oil company. Milaha Explorer is the largest of its kind to be owned by a Qatari company, and has a large deck area, a variable load capacity, and the ability to accommodate 300 persons on board.
Milaha took delivery of Milaha Explorer in 2016, and it is part of the group's marine offshore f l e e t , w h i c h i s comprised of over 47 anchor handling towing v e s s e l s , p l a t f o r m support vessels, dive a n d c o n s t r u c t i o n support vessels, and other vessel types supporting the offshore oil and gas industry. Milaha's overall fleet consists of more than 90 vessels, which also
include oil tankers, LNG carriers, and container vessels among others.
Temile, HHI sign $120Million Ship Building Contract for Nigerian LPG Market
Milaha Deploys Flagship Vessel Off West African Coast
Two French consortiums and a Canadian group have been shortlisted for engineering consultancy in the
imminent second phase of the construction of Cameroon's Kribi Port.
This phase of the construction will feature a second container terminal, (with a 700-meter
long dock while the first one was 350 meters long), an iron ore and an oil terminal. For these works, an expert panel will be constituted for ex-post, ex-ante and interim evaluation of the quality of the works and suggest the improvements to be made.
The deadline for their proposal was July 31, 2018.Egis Port/Egis Cameroon/TME/Catram
(French), Louis Berger/BEC La Routière (French) and Norda Stelo (Canadian) are
vying to win a $4.5Million (CFA2.5Billion) contract to monitor the construction and assist in the commissioning of the infrastructure.
Three Companies Move Closer To Kribi Port Contract
he availability of Crew Boats for use in Tupstream activity among the top International Oil Companies in Nigeria
operating shallow water and deepwater assets fell sharply by almost 50% between April and June 2018, according to the Africa Oil+Gas Report monthly vessel count, compiled by Marine Platforms.
ENI had one crew boat in its service in April,
but had none by the end of June 2018.
Chevron dropped Omambala River and Seabulk Niger while it retained Atima.
But ExxonMobil still managed a fleet of six crew boats in June 2018, a slight decline from seven crew boats on its locations in April.
Chevron was down to one crew boat in June, out of the three it engaged in April.
TOTAL, the French major, dropped three of the five crew boats and fast supply vessels it engaged in April 2018, such that by the end of June 2018, it had only two.Shell had seven crew boats engaged in April, but had four by the end of June.
The three crew boats TOTAL dropped were Surfer 26, Philippa and Lady Tasha II, while it retained Queen Victoria II and Queen Victoria IV.
ENI dropped I.H. Pepple.Shell dropped three crew boats in number but had more than three dropped in terms of the
names of the crew boats used by the end of June 2018. Shell dropped C radiat, Toria, Wanny Steph and Acquashield II while it retained Jacson 65, SVS Raleigh, SVS Monck, Hudson Capt ElenduExxon Mobil had one crew both dropped in number but had more than one dropped going by the names of the crew boats used by the end of June 2018. Exxon Mobil dropped Sir Emeka Offor, Aquashield IV, Queen Alaere, Shore Pass while it retained Bourbon Libeccio, Fol Vision 2, Princess Ebikene, Whisky Pride, Surfer 256, SVS Hawkins.
The company upgraded fromISO 9001:2008 to ISO 9001:2015.
“As a company, we pride ourselves on the quality management system that we have in place”, Stanley Fagbule, Chief Executive of SellyFak remarks.
Bureau Veritas has certified that the Quality Management System of SellyFak Energy Services Limited has been audited and found to be in accordance with the requirements of the ISO 9001:2015 standards, the company reports.
Services covered are: Mechanical Fabrication, Corrosion Control, Pipeline Construction, Ancillary Civil Works, and the Procurement of Oil Tools.
“We have a quality management system in place that speaks to consistency in the work that we do”, Fagbule explains. “The fact that our processes are reproducible and consistent, it assures same result anytime. Apart from that, the certification of the capacity building of our people makes sure that the service that you get from us at any point in time is the same. Our people are certified by NACE, National Association of Corrosion Engineers, our people are certified by IRATA for the rope access services that we render. Also, all the top management team members of the company are involved in one capacity building program or the other either with the Lagos Business School, Philip Consulting and the rest. We spend quite a lot in terms of human capacity building”.
Viper Innovations, a UK company specialising in maximising the operational life of subsea controls and electrical distribution equipment, has appointed a new distributor to improve its
service offering and share of the Nigerian offshore oil and gas market.
“The unique ability of V-LIFE to recover the integrity of subsea circuits is already saving the oil industry millions of dollars by preventing the necessity to replace subsea umbilical cables”, says Anthony Okolo, Royal Nigeria Managing Director.“Viper Innovations has developed a range of leading edge technologies in the field of subsea electrical insulation monitoring and recovery”, says Neil Douglas, Managing Director Viper Innovations. “Our leading product V-LIFE now has over 70 successful installations worldwide, being used by many national and international oil companies. Our
products are particularly applicable in Nigeria where we already have a number of our products installed”.
Royal Niger Emerging Technologies Ltd, which is based in Port Harcourt, has more than 5 years' experience in the upstream industry and has already been working closely with Viper Innovations for some time. Going forward they will be selling and supporting the company's range of electrical integrity monitoring equipment, including the revolutionary V-LIFE insulation resistance recovery product winner of The Queen's Award for Enterprise in Innovation in the UK.
Serving as the basis for their company, Green Imaging Technologies has exported their software across the globe, including the United States, Asia, Europe, South America and the Middle East. They credit their far-reaching success not only on the basis of their innovative technology, but also their desire to learn from their customers and provide the best possible solutions for them.
“The software sets a new standard for simplicity and usability,” said Mark MacKenzie, the Director of Sales and Marketing at GIT. “It was designed with a mind to improve clarity and solve common laboratory limitations.” The company was established by Jill and
Derrick Green after incubating an innovative new technology at the MRI Research Centre at the University of New Brunswick.
Green Imaging Technologies (GIT) is an oil and gas software solutions company, based in Canada that
continues to expand its reach in the global economy.
“In a sector that has tremendous opportunity
for growth as oil and gas does in Africa, deploying the latest, innovative technologies can have a major impact in pushing the industry forward,” said MacKenzie. “GIT is eager to take part in that change.”
After leaving the university, they were able to develop this valuable MRI-based application for usage in the oil and gas sector. The software allows the user to create special core analysis that measures rock and fluid properties in order to facilitate critical decisions related to exploration and production.
SellyFak Upgrades To ISO 9001:2015By Akpelu Paul Kelechi
GIT Applies Imaging Software For Core Analysis In Hydrocarbon Wells
Royal Niger To Represent Viper
Operators Reduce Crew Boat Hire for Offshore Nigerian E&P Service By Oluwaseun Alabiowo
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Temile claims a fleet of 16 offshore vessels, acquired within the last 5 years. The new carriers would be the first of their kind in the West African oil and gas market and would enable the company service an on-going time charter LPG contract with NLNG.
Tony Attah, CEO NLNG said the transaction was indeed ground breaking, explaining that it supports the quest to develop the domestic LPG market and aid the growth of indigenous
companies in the process. “NLNG's domestic LPG intervention scheme aligns with our business focus of bringing energy to the world and helping to build a better Nigeria” Attah stated.
“We have extensive experience in various sectors of the oil and gas industry in Nigeria, with particular interest in the offshore
shipping and logistics”, said Alfred Temile, CEO, Temile Development, on the sidelines of signing the shipbuilding contract in London. “Our entrance into LPG market is exciting and we are in very safe hands to have ordered a LPG carrier from Hyundai Mipo Dockyard “This will no doubt increase the participation of Nigerian investors in the LPG space.”
The vessels are valued at over $120Million with the first carrier expected to be delivered by the first quarter of 2020.
The Nigerian shipping firm, Temile Development has signed a ship building contract with Hyundai Heavy Industries
Limited, the South Korean shipbuilder; to build one firm and one optional Liquefied Petroleum Gas (LPG) carriers.
“Over the past few months, we have been significantly ramping up our operations, and I am pleased to announce further growth in our geographic footprint and operational portfolio with this long-term deployment, which marks our entry into Africa”, says Abdulrahman Essa Al-Mannai, the company's President and CEO. “Milaha Explorer is a new
and modern vessel, and we wish its captain and crew safe and successful operations.”
Qatar-based Milaha, a maritime and l o g i s t i c s c o n g l o m e ra t e , h a s announced the deployment of its liftboat, Milaha Explorer, off the
coast of West Africa as part of a long-term charter with a major international oil company. Milaha Explorer is the largest of its kind to be owned by a Qatari company, and has a large deck area, a variable load capacity, and the ability to accommodate 300 persons on board.
Milaha took delivery of Milaha Explorer in 2016, and it is part of the group's marine offshore f l e e t , w h i c h i s comprised of over 47 anchor handling towing v e s s e l s , p l a t f o r m support vessels, dive a n d c o n s t r u c t i o n support vessels, and other vessel types supporting the offshore oil and gas industry. Milaha's overall fleet consists of more than 90 vessels, which also
include oil tankers, LNG carriers, and container vessels among others.
Temile, HHI sign $120Million Ship Building Contract for Nigerian LPG Market
Milaha Deploys Flagship Vessel Off West African Coast
Two French consortiums and a Canadian group have been shortlisted for engineering consultancy in the
imminent second phase of the construction of Cameroon's Kribi Port.
This phase of the construction will feature a second container terminal, (with a 700-meter
long dock while the first one was 350 meters long), an iron ore and an oil terminal. For these works, an expert panel will be constituted for ex-post, ex-ante and interim evaluation of the quality of the works and suggest the improvements to be made.
The deadline for their proposal was July 31, 2018.Egis Port/Egis Cameroon/TME/Catram
(French), Louis Berger/BEC La Routière (French) and Norda Stelo (Canadian) are
vying to win a $4.5Million (CFA2.5Billion) contract to monitor the construction and assist in the commissioning of the infrastructure.
Three Companies Move Closer To Kribi Port Contract
he availability of Crew Boats for use in Tupstream activity among the top International Oil Companies in Nigeria
operating shallow water and deepwater assets fell sharply by almost 50% between April and June 2018, according to the Africa Oil+Gas Report monthly vessel count, compiled by Marine Platforms.
ENI had one crew boat in its service in April,
but had none by the end of June 2018.
Chevron dropped Omambala River and Seabulk Niger while it retained Atima.
But ExxonMobil still managed a fleet of six crew boats in June 2018, a slight decline from seven crew boats on its locations in April.
Chevron was down to one crew boat in June, out of the three it engaged in April.
TOTAL, the French major, dropped three of the five crew boats and fast supply vessels it engaged in April 2018, such that by the end of June 2018, it had only two.Shell had seven crew boats engaged in April, but had four by the end of June.
The three crew boats TOTAL dropped were Surfer 26, Philippa and Lady Tasha II, while it retained Queen Victoria II and Queen Victoria IV.
ENI dropped I.H. Pepple.Shell dropped three crew boats in number but had more than three dropped in terms of the
names of the crew boats used by the end of June 2018. Shell dropped C radiat, Toria, Wanny Steph and Acquashield II while it retained Jacson 65, SVS Raleigh, SVS Monck, Hudson Capt ElenduExxon Mobil had one crew both dropped in number but had more than one dropped going by the names of the crew boats used by the end of June 2018. Exxon Mobil dropped Sir Emeka Offor, Aquashield IV, Queen Alaere, Shore Pass while it retained Bourbon Libeccio, Fol Vision 2, Princess Ebikene, Whisky Pride, Surfer 256, SVS Hawkins.
The company upgraded fromISO 9001:2008 to ISO 9001:2015.
“As a company, we pride ourselves on the quality management system that we have in place”, Stanley Fagbule, Chief Executive of SellyFak remarks.
Bureau Veritas has certified that the Quality Management System of SellyFak Energy Services Limited has been audited and found to be in accordance with the requirements of the ISO 9001:2015 standards, the company reports.
Services covered are: Mechanical Fabrication, Corrosion Control, Pipeline Construction, Ancillary Civil Works, and the Procurement of Oil Tools.
“We have a quality management system in place that speaks to consistency in the work that we do”, Fagbule explains. “The fact that our processes are reproducible and consistent, it assures same result anytime. Apart from that, the certification of the capacity building of our people makes sure that the service that you get from us at any point in time is the same. Our people are certified by NACE, National Association of Corrosion Engineers, our people are certified by IRATA for the rope access services that we render. Also, all the top management team members of the company are involved in one capacity building program or the other either with the Lagos Business School, Philip Consulting and the rest. We spend quite a lot in terms of human capacity building”.
Viper Innovations, a UK company specialising in maximising the operational life of subsea controls and electrical distribution equipment, has appointed a new distributor to improve its
service offering and share of the Nigerian offshore oil and gas market.
“The unique ability of V-LIFE to recover the integrity of subsea circuits is already saving the oil industry millions of dollars by preventing the necessity to replace subsea umbilical cables”, says Anthony Okolo, Royal Nigeria Managing Director.“Viper Innovations has developed a range of leading edge technologies in the field of subsea electrical insulation monitoring and recovery”, says Neil Douglas, Managing Director Viper Innovations. “Our leading product V-LIFE now has over 70 successful installations worldwide, being used by many national and international oil companies. Our
products are particularly applicable in Nigeria where we already have a number of our products installed”.
Royal Niger Emerging Technologies Ltd, which is based in Port Harcourt, has more than 5 years' experience in the upstream industry and has already been working closely with Viper Innovations for some time. Going forward they will be selling and supporting the company's range of electrical integrity monitoring equipment, including the revolutionary V-LIFE insulation resistance recovery product winner of The Queen's Award for Enterprise in Innovation in the UK.
Serving as the basis for their company, Green Imaging Technologies has exported their software across the globe, including the United States, Asia, Europe, South America and the Middle East. They credit their far-reaching success not only on the basis of their innovative technology, but also their desire to learn from their customers and provide the best possible solutions for them.
“The software sets a new standard for simplicity and usability,” said Mark MacKenzie, the Director of Sales and Marketing at GIT. “It was designed with a mind to improve clarity and solve common laboratory limitations.” The company was established by Jill and
Derrick Green after incubating an innovative new technology at the MRI Research Centre at the University of New Brunswick.
Green Imaging Technologies (GIT) is an oil and gas software solutions company, based in Canada that
continues to expand its reach in the global economy.
“In a sector that has tremendous opportunity
for growth as oil and gas does in Africa, deploying the latest, innovative technologies can have a major impact in pushing the industry forward,” said MacKenzie. “GIT is eager to take part in that change.”
After leaving the university, they were able to develop this valuable MRI-based application for usage in the oil and gas sector. The software allows the user to create special core analysis that measures rock and fluid properties in order to facilitate critical decisions related to exploration and production.
SellyFak Upgrades To ISO 9001:2015By Akpelu Paul Kelechi
GIT Applies Imaging Software For Core Analysis In Hydrocarbon Wells
Royal Niger To Represent Viper
Operators Reduce Crew Boat Hire for Offshore Nigerian E&P Service By Oluwaseun Alabiowo
AOGR’S MOST CURRENT ADVERTISEMENT RATES
Contact: [email protected]. Phone Number: +2348130733523
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12A, Animashaun Street, Off Bode Thomas Street, Surulere, Lagos, Nigeria.January 2018
Vol 19, No 6, July 2018
reportwww.africaoilgasreport.com
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A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 842
AOGR’S MOST CURRENT ADVERTISEMENT RATES
Contact: [email protected]. Phone Number: +2348130733523
reportwww.africaoilgasreport.com AFRICA OIL+GAS REPORT
12A, Animashaun Street, Off Bode Thomas Street, Surulere, Lagos, Nigeria.January 2018
Vol 19, No 6, July 2018
reportwww.africaoilgasreport.com
©Copyright 2018,
A F R I C A O I L + G A S R E P O R T J U LY 2 0 1 842
