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Aquaterra Wins the Contract for Madu, Anyala Platforms

British engineering firm Aquaterra Energy has won the contract to install the platforms for the production of crude oil and gas from Madu and Anyala fields, in shallow water Nigeria.

The contract was awarded by First E&P, operator of the Oil Mining Lease (OML) 83, in which Anyala lies and OML 85, which hosts Madu field. The Anyala and Madu field project scope will develop approximately 185Million barrels of oil and 637Billion cubic feet of gas reserves.

The contractor is expected to deploy the Seaswift offshore platform on the two sites.

Aquaterra, which is headquartered in Norwhich, UK, will work on the project in conjunction with a local partner, Maerlin Nigeria Limited, a Nigerian owned oil and gas service firm.

The companies will manage the end-to-end project scope with engineering and onsite fabrication support being performed in Nigeria. The work includes structural design, topsides engineering, equipment selection, procurement, fabrication management and logistics. Once complete, the platforms will be installed in water depths of 35m to 55m with first oil expected in late 2019.

Aquaterra Energy’s Sea Swift offshore platform is a modular system that combines an offshore platform with the rig-run benefits of a subsea development. This offers operators a flexible option to reduce their build and installation costs, and importantly reduce time to first oil in shallow water applications.

“With six Sea Swift platforms operational globally, including four offshore Africa, our team has the breadth of experience and technical know-how to solve client challenges like these in a safe, cost-effective and timely manner,” says Stewart Maxwell, the company’s Technical Director.

 


2018 Rounds Up With a Whimper

The big, flagship African projects that we all thought were going to take Final Investment Decision in 2018, are still largely on the drawing board.

It is the last week of November 2018 and the much anticipated Ugandan basin wide oil development has not reached sanction and will not reach sanction in the next 30 days.  That’s official.

Neither are the Nigerian deepwater Bonga West Aparo and Zabazaba likely to get closure in the year.

These are the big oil projects.

In gas valorization, the Nigerian LNG is pushing to get its >$13Billion Train 7 project out of the long process of decision analysis and into sanction. The Fortuna LNG in Equatorial Guinea doesn’t look closer to construction. Investment decision on Mozambique’s first onshore LNG plant has been moved to next year.

And the ANOH gas project in Nigeria is, for now, largely discussed in whispers.

But the November 2018 edition of the Africa Oil+Gas Report, already in the hands of paying subscribers worldwide, is not entirely about flagship projects that have struggled to gain traction.

This magazine’s drawing card is the several 200-300 word pieces of storytelling, which makes it the sunny continent’s most compelling monthly compilation of oil and gas market intelligence.

The Africa Oil+Gas Report is the primer of the hydrocarbon industry.

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.

Published by the Festac News Press Limited since November 2001, AOGR is a monthly publication, delivered to subscribers around the world. Its website remains www.africaoilgasreport.com and the contact email address is info@africaoilgasreport.com. Contact telephone numbers in our West African regional headquarters in Lagos are +2348028354297, +2349091009800, +2348036525979 and +2347062420127.

Please click on this link to grab your copy.

 


‘Cancel All Contracts To Subsea 7’, Minister Instructs

Equatorial Guinea has mandated all E&P operators in the country to cancel all contracts with Subsea 7, the London headquartered marine services firm, due to noncompliance of Equatorial Guinea’s local content regulations.

Operators in the country include Noble Energy, ExxonMobil, Kosmos Energy, Trident, Marathon Oil Corporation and several others.

“As Minister, I have an obligation to ensure the laws of the country governing the hydrocarbon sector are complied with,” said Gabriel Mbaga Obiang Lima, the Minister of Mines and Hydrocarbons. “Companies operating in the oil sector have an obligation to work within the confines of our very flexible and pragmatic local content regulations that are market driven and ensure that both investors and our citizen benefit. I commend the leadership of Schlumberger and Technip FMC in taking proactive steps to engage with the oil companies and government to ensure local content concerns are resolved.”

Obiang Lima added that the Ministry will continue to work with Oil companies operating in Equatorial Guinea to unwind contracts and find new suppliers for companies that have refused to comply with local content regulations.  “The notice will be expanded to all service companies who are non-compliant as the review continues. Similar measures will be taken”, he declared.

“A compliance review of the entire sector is ongoing led by the Director of National Content and outside legal advisors of the Ministry.  Under the National Content Regulation of 2014, all agreements must have local content clauses and provisions for capacity building, with preference given to local or regional companies in the award of service contracts. Local shareholders must be part of every contract as prescribed by law. The operators have an obligation to ensure compliance of their subcontractors”.


TOTAL Shoots Towards >400,000BOPD in Angola’s Block 17

French major TOTAL has taken two investment decisions on Angola’s deepwater Block 17, to develop satellite fields that will be tied back to existing infrastructures and will quickly bring additional production.

  • The CLOV phase 2 project, which requires the drilling of 7 additional wells, with first oil expected in 2020 and a production plateau of 40,000 barrels of oil per day (BOPD).
  • The Dalia phase 3 project, which requires the drilling of 6 additional wells, with first oil expected in 2021 and a production plateau of 30,000 BOPD.

Zinia 2, CLOV 2 and Dalia 3 will develop 150Million Barrels of additional resources to maintain the Block 17 production plateau above 400,000 BOPD until 2023, and further extend the profitability of this prolific block, with over 2.6Billion barrels already produced.

 


Tony Attah, Taofik Adegbite, This Evening, on the Joy of Reading

 

Adegbite

Tony Attah, Managing Director of the Nigerian LNG Limited will be on a Panel with Taofik Adegbite, CEO, of Marine Platforms, This Evening, November 7, 2018, to converse around the Joy Of Reading at the Lagos Book and Art Festival.

 

They will both be engaged by Reuben Abati, former spokesperson of the Nigerian Presidency.

They will be joined by Nike Adeyemi, Executive Director of the FATE Foundation.

Fatona at the Joy of Reading 2017..We need a reading consciousness

These business leaders will be sharing their love for books, talk about books they have enjoyed reading,  read a paragraph or two, and banter about books, with Dr. Abati, in a room full of executives like them, regular folks, writers and members of the literati as well as  some very young Nigerians- including students from select secondary schools.

“It will be a mixed audience”, says Jahman Anikulapo, programme chair of the Committee for Relevant Art (CORA) and Director of the Festival.

The panel is themed Leaders as Readers: Why I Read What I Read and it is scheduled for 5pm, November 7, 2018, at the Festival venue: Freedom Park, on Broad Street, in Lagos. This conversation is one of the highlights of the 20th Lagos Book and Art Festival.

Adenike-Adeyomi

Messrs Attah and Adegbite run companies that have been out front in supporting Literacy. NLNG funds the largest prize money for a literary award in Africa: the Nigerian Prize for Literature. Marine Platform sponsors mobile libraries in Northern Nigeria, and is one of the enthusiastic supporters of LABAF.

Reuben Abati

Leaders as Readers was introduced as part of the several sessions of the Lagos Book Festival last year. The inaugural edition featured Layi Fatona, Managing Director of ND Western, an oil exploration and production company and Simi Nwogugu, Chief Executive of Junior Achievement Nigeria. Their panel was moderated by Keith Richards, former MD Guinness Nigeria, former MD Promasidor.

  “We are enriching the content of the Book and Art Festival with an experiential event like Leaders As Readers”, says Anikulapo.  “By having successful business leaders share their joy of reading with an audience consisting of people like them (other corporate leaders) as well as members of the public, including some very young people, we hope to offer several different ways to think about books and the idea of book reading”.

 


Indies: What Would Africa Do Without Them?

By Toyin Akinosho

The concept of local content grew out of the concern that the oil industry operates as an enclave sector in most hydrocarbon resourced African economies.

But in those countries where the oil companies serve as part of the industrial pivot, there’s a good chance that the main actors are independents, not majors.

In most of Africa’s petrostates, it is the independents who commit more to local beneficiation of the molecules.

The story is that the majors once built and operated local refineries in some of these countries, but that the era has since gone.

Independents now demonstrate more commitment to serve as industrial partners.

Take Cameroon. The French operator Perenco developed the offshore Sanaga field and installed a gas processing plant, to feed the 216 MW Kribi Power Plant.  The company inaugurated a Floating Liquefied Natural Gas (FLNG) facility to export gas from the same field. True. But from this small project (1.2Million Tonnes Per Annum), it produces an annual volume of 30,000Tonnes of cooking gas (technically known as LPG), on the side, for the country.

In Gabon, it has been Perenco, not TOTAL, not Shell, that has beensupplying natural gas to power plants in Libreville and in Port-Gentil.

Victoria Oil &Gas, the tiny British gas producer, can be credited to have built the natural gas market for Douala, Cameroon’s main commercial city, from scratch. The company arrived the country in 2008, acquired the Logbagba marginal gas field, and started work, drilling gas wells and, “convincing factories and small industries to replace expensive diesel with natural gas for their power needs, constructing a gas supply network round the city, and drilling even more gas wells”, according to a report in the April 2018 edition of Africa Oil+Gas Report. The company, the magazine reported, “ambitiously set a target for a near tenfold increase from thirteen million standard cubic feet per day 13MMscf/d, in 2017, to 100MMscf/d by 2021”.

To ensure that gas resources were available for the anticipated expansion, VOG has been on an acquisitive mode for acreages. In 2016, it secured 75% interest in the Matanda block, a 1,235-sq km acreage adjacent to Logbaga. The Matanda field,  ”indicates the potential for more than 1Trillion cubic fet (Tcf) of recoverable gas across onshore sections of the block”, the company says.

THE METHANOL PLANT IN EQUATORIAL GUINEA is owned by two American independents, Marathon Oil and Noble Energy, as well as  the government parastatal  SONAGAS, the National Gas Company of Equatorial Guinea. The plant started production in 2001 and produces in excess of 1,000,000 metric tons of methanol per year, or just greater than 1% of the global market. It is fed with natural gas from the Marathon operated Alba field. Again, it is true that a significant volume of gas from Alba field is exported as LNG through the Equatorial Guinea LNG, but those same reservoirs feed the 155MW Malabo Gasfired Power Plant.

Now that Alba field is in decline, it is gas from Alen field, operated by another independent, Noble Energy, that Equatorial Guinea has turned to for replenishment.

In Ghana, about 120MMscf/d of natural gas from the Jubilee field, operated by the UK based Tullow Oil, has been a more reliable fuel for the country’s electricity plants than the gas exported from Nigeria by a company majorly owned by Shell and Chevron(and operated by the latter), which have been stuck at around 60MMscf/d for the past three years. The Italian giant, ENI, has just completed a gas supply system from the Sankofa field that will deliver 180MMscf/d, but it is important to note that the foundation for local supply of natural gas to electricity plants in West Africa’s second largest economy was laid by independents (Kosmos and Anadarko are Tullow’s partners).

In Gabon, it has been Perenco, not TOTAL, not Shell, that has been supplying natural gas to power plants in Libreville and in Port-Gentil. The gas is produced onshore, treated to specification and delivered at pressure through a 450 km, 36MMscf/d capacity gas pipeline across the country. It is a major contribution to national power needs and industrial development.

In Nigeria, Shell likes to claim the credit for helping to inaugurate the Gas to Power market, but the contribution of the majors to the country’s bourgeoning domestic gas industry is on the wane. Shell has divested its largest domestic-purpose gas processing plants. Seven Energy (now Savannah) and Oando have each been more daring in constructing midstream gas supply pipelines in the country than any major. Seplat, the London listed independent founded by Nigerians, now supplies close to 400MMscf/d of gas to the domestic market and the molecules are mainly used for electricity generation.

What’s more, while the only crude oil refinery outside of the NNPC operated sub performing refineries is owned by Niger Delta Petroleum. Now, two other small refineries are under construction by Nigerian independents. One is the 5,000BOPD Ibigwe Refinery, promoted by Waltersmith Petroman; the other is the 7,000BOPD OPAC Refinery, which is being developed by Pillar Oil and partners. Of course the largest refinery under construction in the country is the 650,000BOPD Dangote Refinery, but how do you classify Dangote Industries?

LONG BEFORE BG, THE DEFUNCT BRITISH GAS COMPANY, discovered large deposits of gas offshore Tanzania, the country had been growing a domestic gas market on the back of the onshore and shallow water reserves, estimated at around eight trillion cubic feet (8Tcf). This market was created and developed by small companies. Today, Orca Exploration, originally from Canada but now very Tanzanian; Paris based, Indonesian owned Maurel et Prom and the AIM and Oslo listed Wentworth Resources are, in partnership with the government, collectively responsible for Tanzania’s 160MMscf/d domestic gas industry, which is vibrant and growing.

 


King Kosmos Waves the Sceptre

By Moses Akin Aremu 

Kosmos Energy has taken the spotlight as the Western independent mostly associated with African frontier exploration.

The Dallas based independent didn’t get properly recognised for opening the Tano Basin offshore Ghana, even though it made the 2007 discovery on which Tullow Oil rode to world acclaim.

No one could ignore, however, its effort in the North West African margin.

Even when it comes up with dry holes back to back it is able to snatch victory from the jaws of defeat. The statement that its second phase of exploration offshore Mauritania and Senegal, “yielded the industry’s largest hydrocarbon discovery of the year at Yakaar-1”, masks the reality of three dry holes in that campaign, and the fact that the Yakaar-1 was the lone discovery.

The claim also conveniently hides the company’s frustration at not finding the sorely wanted oil reservoirs, outboard the gas that it had earlier encountered in the Tortue complex off those two countries in mid-2015.

Kosmos couches its disappointment in earth science speak. The campaign, it said, had provided “sub-surface data that will help us refine our understanding of how the petroleum systems offshore the two countries work”.

There are many influential entities who bet on Kosmos’ extraordinary ability to deliver on E&P projects, from exploration to production.

Gabriel Obiang Lima, Equatorial Guinea’s Minister for Hydrocarbons, is one, and we’d soon get to that.

BP is another.  The British major is so much a worshipful admirer of the geoscientific competencies of this sleek American independent, that its agreement with Kosmos has extended beyond the partnership in NW Africa. Now they work together in Cote D’Ivoire and are jointly seeking prospective tracts elsewhere on the continent.

BP’s philosophy is: Kosmos understands the geology of Africa. It gets to do the foundational basin analysis and maps the fairways. It determines where the leads are and comes up with the play concepts. It generates the prospect inventory. It then works up the well locations and drills.

If there is a discovery and two appraisals follow successfully, BP takes up the development phase.

 


In 24 Months, Nembe Creek Trunk Line Will Be Running Empty

Work is far advanced on alternatives to the “renowned” Bonny Terminal

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 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 as 24 illegal bunkering points that require constant plugging.

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.

Up to 600,000 BOPD of liquids can be evacuated from the end point at Cawthorne Channel.

Shell doesn’t pump its own crude into NCTL, but sends the liquid into the short line between Cawthorne Channel and the Bonny Terminal.

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 famous Bonny Terminal looks like is about to lose its relevance after several decades”, sources tell Africa Oil+Gas Report. NCTL was reopened on July 8, 2018, a full month after the latest shut in for repairs.

This story was earlier published in the July 2018 edition of the Africa Oil+Gas Report monthly.

 


Egina Rams into MT Jazi and Zion on Its Way Out

By Sully Manope

The Nigerian owners of two petroleum product vessels are compiling estimates of damages after the Egina Floating Production Storage and Offloading (FPSO} Vessel rammed into them at the Lagos Harbour.

The FPSO was beginning its journey from Lagos to the Egina oilfield offshore Akwa Ibom, in the country’s south east, on August 26, 2018, when its tow lines parted.

MT Jazi and MT Zion, were docked at the harbour, waiting for cargoes of product supplies, when the collision happened. The impact threw off a crew member from MT Zion into the water, but he swam into safety. Divers in the Egina FPSO quickly moved to restore the tow lines and guide the ship back to course.

The Egina FPSO has since arrived on the field on August 29, but the case of the collision is in arbitration in Lagos where, officials of Samsung Heavy Industries, operators of the FPSO, reported the incident at the Nigerian Maritime Administration and Safety Agency.

 


Seplat Output Drops Quarter on Quarter

Seplat Petroleum’s oil and gas production experienced a slight reduction from first quarter to second quarter 2018, largely on account of shut ins caused by leakages in the Trans Forcados Pipeline.

Gross liquid output dropped from 61,150BOPD in 1Q 2018 to 52,262BOPD in the 2Q.

Gross daily Gas Production was 351MMscf/d in 1Q, declining to 337MMscf/d in 2Q 2018.

In equity terms, Seplat produced 27,306BOPD of hydrocarbon liquids and 158MMscf/d of natural gas in 1Q , but these had declined to 23,266BOPD and 152MMscf/d in the 2nd Quarter.

The reason was the disparity in the length of time that actual production took place.

Production in Q1 stood at 82% with average reconciliation losses of 7.3%; but by the end of the first half, the company reported production uptime in the period was 76% while reconciliation losses were around 8%.

There was, in an instance, two weeks of production shut in during the second quarter, whereas the highest number of days of shut in during the first quarter was four days.

Seplat has concluded plans to move into alternative evacuation facility whenever the TransForcados line is shut in, but could not execute those plans in the period under review.

Although 1H 2018 equity production averages at 25,286BOPD (Liquids) and 155MMscf/d, the company needs to keep an eye on its “working interest production guidance (before reconciliation losses) for FY 2018”, which is 24,000 to 29,000BOPD and 148 to 158MMscf/d.

This “equates to 48,000 to 55,000 BOEPD and is predicated on there being no further prolonged force majeure event”, Seplat itself says.
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