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TNP Reopens After 46 Days Shut In

The Trans Niger Pipeline, the Shell operated crude oil export line in the east of Nigeria, came back up on Sunday February 18, 2018.

It was 46 days after a shut in of a critical segment of the line for major repair works since January 3, 2018.
The pipeline, with capacity for 180,000BOPD, pumps crude to the Bonny Export Terminal and is also part of the gas evacuation infrastructure.

The TNP consists of three parts:, a 12.5km 30” pipeline from Ogale to Eleme/Ogu Bolo over land terrain;a 25.5km 30” pipeline from Eleme/Ogu Bolo to the Cawthorne Channel Junction Manifold, and a 2.4km 8” pipeline from Alakiri to Ojikirispurline, both over swamp terrain; anda 20km 30’’ pipeline and a 20km 24” loop pipeline leg from Cawthorne Channel Junction Manifold to Bonny Oil and Gas Terminal, both over swamp terrain.

Senegal: Cairn to Drain~400Million Barrels With 25 Wells

By Toyin Akinosho, Lagos

Cairn Energy and partners are considering an initial well count of approximately 25 wells for the first phase of development of the SNE field in deepwater Senegal.

The project is the first major oil development in the Northwest African margin.

The wells will be principally drilled in the field’s “S500 lower reservoirs”.

It is anticipated that other discoveries, e.g Fan South and SNE North, may be developed and tied to the SNE field development afterwards.
But all these considerations are at concept selection stage now and a clear decision is still a little far ahead.

“The development concept being considered by the joint venture is a standalone FPSO facility with subsea wells and infrastructure”, FAR Limited declares in a just released report. “The project will be designed to allow flexibility for anticipated subsequent development”.

Although FAR Ltd is a 15% non operating partner in the venture, it has been the more vocal with updates than operator Cairn Energy.

The joint venture aims to have all Government approvals in place by the end of 2018, with a target of first oil in 2021-2023.

The extensive SNE field with an area covering approximately 350km2 has been assessed by FAR to contain 640MMbbls on a full field basis (100% basis, best estimate, Contingent Resources, unrisked). This means less than 450MMbbls in terms of proven oil.
“In line with the terms of the Production Sharing Contract with the Government of Senegal, the joint venture has made a submission to evaluate the SNE North discovery and an application to evaluate the FAN South discovery is currently being compiled”, FAR explains in the note. “Both discoveries are in tie-back range of a hub development at SNE and, if the appraisal is successful, will be tied into the SNE development in later phases of development.

Nigerian Indies: The Talented Tenth

By the Editorial Board of the Africa Oil+Gas Report

Africa’s growth as an industrial marketplace is going to be determined by its exceptional companies

To go by sheer volume of crude oil output, Aiteo and Eroton should undoubtedly be the leading indigenous Nigerian Independent companies to watch in the immediate term. Their gross daily production of around 90,000 and 60,000 barrels In Oil Mining leases (OMls) 29 and 18 respectively, for most of 2017, are underpinned by the reserves sizes of those assets. On a net basis, these volumes compare favourably with other Western independents focused on African resources, including such aggressive operators as Tullow Oil and growing stars like Kosmos Energy.

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Nigerian Independents Don’t Pay Petroleum Profit Tax-NEITI

Waziri Adio

By Sully Manope, in Abuja

Sixteen Nigerian owned companies, all of them hydrocarbon producers, defaulted on payment of the Petroleum Profit Tax (PPT) to the country’s coffers in the year 2015, according to the latest audit report of the Nigerian Extractive Industry Transparency Initiative (NEITI).

Those that were reported to have defaulted on PPT payment included AITEO, Allied Petroleum, Atlas Petroleum, Dubri Oil, Energia, Eroton, Express Petroleum, Frontier Oil, Network E&P, Oando OML 125&134, Oando Qua Ibo Ltd, Prime Energy, Seplat, Shebah, South Atlantic Petroleum (SAPETRO) and Universal Petroleum.

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Four Large African Oil Projects for Sanction in 2018

Tullow Oil

By Toyin Akinosho

Nigeria is the site of two of Africa’s four largest greenfield oil developments on queue for Final Investment Decision in 2018.
The remaining two are each located in landlocked Uganda and offshore Senegal.

The most certain to take FID of the four is the Ugandan Albert Basin oilfield development, which had been on the drawing board for nine years. Now TOTAL, which has 44% equity in that development, is also the lead operator. The Albert basin development will deliver 230,000 barrels of oil per day BOPD at peak. The sanction announcement is expected be made any time before the end of the First Quarter 2018.

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GNPC Wins Awards For Delivery, Leadership

The Ghana National Petroleum Corporation (GNPC) has won two awards, confirming its leadership role in Ghana’s Petroleum Sector and beyond. The Majestic Falcon Award for Quality and Excellence and The Ghana Industry Leadership Award – Petroleum awards, were conferred on GNPC at two separate events in Dubai in the UAE and Accra, in Ghana.

The Majestic Falcon Award for Quality and Excellence was handed to the company in recognition of its leadership in ensuring the timely completion of three key projects (Jubilee, TEN and Sankofa fields) on schedule and on budget. The event was organized and conferred by Other Ways Management and Consulting International Limited.

The Industry Leadership Award – Petroleum, at the first Ghana Energy Awards, held in Accra, under the theme: Energy for National Development: 60years and beyond. The Ghana Energy Awards aims to recognize the efforts, innovation and excellence of stalwarts within the energy sector and to celebrate the successes of the players competing under various categories of the awards.

The Ghana Energy Awards is organized by the Energy Media Group (EMG), a full-service media company based in Accra and GP Business Associates (member of the CH Global Network), a business consultancy company.

GNPC was established in 1983 under the Ghana National Petroleum Corporation (GNPC) Law 1983, PNDC Law 64 and started operations in 1985. GNPC is the anchor partner in upstream petroleum operations in Ghana, and is currently in 17 joint venture partnerships with international players over 17 oil blocks. GNPC is the national gas aggregator.

GNPC’s strategy is to become an operator in the medium term and is currently pioneering exploration works in the onshore Voltaian Basin, the largest sedimentary basin of Ghana, covering 103,600 kilometres (approximately 40% of the country’s landmass).

GNPC’s strategy is to become an operator in the medium term and is currently pioneering exploration works in the onshore Voltaian Basin, the largest sedimentary basin of Ghana, covering 103,600 kilometres (approximately 40% of the country’s landmass).

The current phase of GNPC’s corporate social investments (CSI) is focused in three areas;
.Education and Training
.Economic Empowerment
.Environment and Social Amenities

The GNPC Foundation is driving GNPC’s corporate social investment strategy.
Under the Education and Training pillar, the GNPC Foundation has started awarding scholarships to over 700 students entering the country’s universities to study courses in science, technology, engineering, and mathematics (STEM). The foundation is also in discussions with some universities to drive positive reforms in our educational system (STEM) to meet the growing needs of industry, provide our citizens with livelihoods and upgrade our educational standards to that of developed countries.

The Foundation is working on setting up industry specific chairs in some selected public universities worth 1Million Ghana Cedis annually per university.

A school of petroleum studies is being constructed at the University of Mines and Technology (UMaT). The Foundation is also working assiduously to complete a Science Application Laboratory at the University of Energy and Natural Resources (UENR) in Sunyani.

Ghana Threatens To Overtake Gabon As Oil Producer

By Toyin Akinosho

With its three producing oil ‘fields’ at full throttle, Ghana is threatening to overtake Gabon as Africa’s seventh largest oil producer.

Production from Jubilee, TEN (a cluster of three fields) and Sankofa, have all appreciably increased in the last six months, according to official figures from the Ghanaian authorities.

Gabon’s 2016 average production was 230,000BOPD, after Congo Brazaville’s257,000BOPD and Equatorial Guinea’s 289,000BOPD. But the latter two are even larger hydrocarbon systems, as, unlike Gabon, they both have sizeable gas production. (Gabon sold a mere 53MMcf/d of gas in 2016).

Ghana itself is credited with having grown a domestic gas market larger than Mozambique and close in size to Tanzania’s, two gas-rich eastern exploration hotspots.

The country’s indigenous gas output is triple the gas import from Nigeria through the West Africa Gas Pipeline.
Full details of production profiles of the three producing Ghanaian hydrocarbon fields/projects are published in the January 2018 edition of Africa Oil+Gas Report.

Ghana’s TEN ‘Field’ Surpasses 2017 Output Projection by 40%

By Toyin Akinosho

Production is very close to FPSO capacity, with less than half of the wells drilled.

The TEN cluster of fields in deepwater off the coast of Ghana has far surpassed the gross production guidance for 2017.

The project, which involves a joint development of three accumulations: Tweneboa, Enyara and Ntomme (TEN), was expected to just slightly exceed 50,000BOPD by December 2017.

Operator Tullow Oil has managed production from 11 wells out of a planned 24 wells and did not anticipate production even to reach 60,000BOPD this year.

Drilling of the remaining 13 wells was stopped in 2015 as Ghana dragged Cote D’Ivoire to International Tribunal of the Law of the Sea, ITLOS, to adjudicate a boundary claim issue.

Tullow planned to drill the remaining wells if the ITLOS judgement favoured Ghana and thereby ramp up production to as close to the FPSO capacity of 80,000BOPD as possible.

On 23 September 2017, ITLOS made their judgment and the new maritime boundary does not affect the TEN fields, but two months later, the TEN development had ramped up to 70,000BOPD, with just the 11 wells!
The output surpassed the 50,000BOPD guidance by 40%.

TEN is the second of three deepwater fields that have been developed since Ghana commenced sizeable commercial crude oil production in December 2010.

The others are the Jubillee (the first) and the ENI operated Sankofa field (the third).

Elcrest Ramps Up Close To 20,000BOPD

Its production increase in 2017 is the most noteworthy of the 11 Shell Divestees

Elcrest, the Joint Venture between Nigerian owned Starcrest and the UK listed Eland Oil and Gas, reached gross peak production of 18,400BOPD, less than 2,000BOPD shy of 20,000BOPD, in the Oil Mining Lease(OML) 40, as November 2017 drew to a close.

It’s a clear result of aggressive work programme by a company which acquired what was almost entirely an exploration asset in 2012.

OML 40 was the least developed of all the 11 onshore OMLs from which Shell and partners divested (selling their equities to Nigerian firms and quasi Nigerian firms) between 2010 and 2015. For the first three years of purchase of the asset(2012 to 2015), production was limited to 4,000BOPD.

Output began to surge after the Asset Management Team (AMT) philosophy was approved in late 2015, allowing joint operatorship of the acreage by Elcrest and NPDC. The partners’ shipping arrangement of the crude (barging), during the 16 month long shut down of the Trans Forcados System, was one of the most successful of the shipping operations during that period.

November 2017 witnessed sharp increases in production by other Nigerian independents, including Shoreline’s OML 30, which breached 70,000BOPD and NDWestern, which also went close to 20,000BOPD, but these assets were not starting from a low base as Elcrest’s OML 40.

Elcrest is on a three well drilling campaign to increase output to 30,000BOPD on the acreage.

South Africa Retreats From E&P Adventure

By Fred Akanni

21 years after JSE listed Energy Africa launched its Pan African foray, fanning out across the continent for exploration and producing portfolio, the spirit of adventure by South African E&P companies has considerably waned.

At its height in the early noughties, the S.A.E&P adventure was vigorously blessed by the state. President Mandela took the state oil company to Libya. His successor, Thabo Mbeki, seriously examined the possibility of PetroSA taking position in Sudan, even when that country stood accused of genocide in Darfur.

With not much of oil to its name, the Rainbow Country hosted the World Petroleum Congress in 2005; it was the only time the Olympics of Petroleum Conferences would take place on the continent.

Today, the only South African owned company with any substantial African E&P holding outside South Africa is Sasol.

It is symbolic of the times that SacOil, the JSE listed company which represents the latest vigorous Pan African effort by any South African enterprise, has dived from upstream to downstream, renaming itself Efora (Energy For Africa), even when its major assets are a bunch of fuel stations and a crude oil trading partnership. Read the full story of South Africa’s 21 Year Pan African Odyssey in the Vol 18, No 7 of the Africa Oil+Gas Report, here.

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