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Ugandan Locals Get 36% of Oil and Gas Contracts

The percentage of upstream oil and gas contracts awarded to Ugandan companies has leaped from 17% in 2009 to 36% in 2016, according to the country’s ministry of energy and minerals. “Some progress is being made”, Ibrahim Kasita, the spokesperson for the Ministry, told an oil and gas Local Content Conference in Kampala.
Mr. Kasita said that more than 1,000 local enterprises have been able to provide services such as logistics, transport and medical services.

Oil was found in commercial quantities in Uganda in 2006.
But activities that should lead to delivery of crude oil into a local refinery as well as export tankers have dragged. It is expected, however, that final investment decision will be made on the development plan for the entire Albert basin by the 4th quarter of 2017. First oil, then, would be expected by early 2021, as a 1,444km pipeline will have to be constructed, 500 wells are estimated to be drilled in the next 3-5 years, two central processing facilities will be installed and maintained, in-field (feeder) pipelines will be constructed, there will be oilfield crude storage tanks/facilities, waste management and treatment and logistical services.

“The country is in transition from the exploration to commercial phase of oil and gas development”, said Edwin Mucai, head of corporate and business banking at Stanbic Bank Uganda, which led the sponsorship of the conference. “To be relevant and competitive in the next phase of Uganda’s upstream development, local companies must take a long term view towards investments and plan a lot more strategically,”

Things have happened faster in the area of government policy, legislation and fostering of an enabling environment in the last three years than they have been in the seven years before them. The Petroleum (Exploration, Development and Production) Act and Petroleum (Refining, Conversion, Transmission and
Midstream Storage) Act were passed in 2013. The Public Finance Management (Amendment) Act, which handles petroleum revenue management, was passed in 2015. Regulations on operations, Health, Safety and Environment (HSE), National Content, Metering and Midstream storage were all promulgated between 2015 and 2016.

After more than five years of hand wringing over issues such as recoverable reserves and production
allowable, the government finally issued production licenses for nine oil fields in the Albertine Graben, Uganda’s only prospective basin. The government has also set up and operationalised the Ugandan National Oil Company, the Petroleum Authority of Uganda and Directorate of Petroleum.

Kasita told the conference that National Local Content regulations are firmly in place in Uganda and embedded within the Oil and Gas Policy, in the Production Sharing Agreements. “They are also in the up-stream and mid-stream laws that require oil firms to employ Ugandans and have ring-fenced certain activities for local service companies,” he explained.
121 exploration and appraisal wells have been drilled in the Albertine Graben to date, including 39 exploration wells and 82 appraisal wells.106 wells encountered Hydrocarbons.


Ghanaian Companies Grab $1Billion Worth of Contracts

Available data from Ghana’s Petroleum Commission, the regulatory agency, shows that the oil and gas sector had provided direct high quality jobs for more than 5,000 Ghanaians as at third quarter 2015.

“The data further shows that between 2010 and third quarter 2015, the value of contracts for services, awarded to Ghanaians amounted to over $1 billion (out of a total of $6.3 billion)”, according to Alex Mould, acting Chief Executive of the state owned firm,  Ghana National Petroleum Corporation GNPC.

“GNPC’s ultimate aim is to get Ghanaians to own a part of the expanding oil and gas industry and domesticate a significant amount of the revenue generated by the sector”, Mr. Mould explained at a lecture: Creating Shared Value, which he gave at the 85th anniversary dinner of the Accra Academy.

“When the oil and gas industry is successful in promoting local content and local participation, the industry also benefits from reduced costs, reduced taxes and import logistics, and from being closer to our suppliers”, Mould explained.  “This is a true win-win scenario and a clear example of creating shared value”.

Mould said that the GNPC, through its partnership with international oil companies operating oilfields in Ghana, has used commercial rationale to exact more value from its partners in the area of local content.“So you have Ghanaian companies like Seaweld, Belmet, Harlequin, and Orsam among others, that are able to do fabrication of critical parts of offshore infrastructure. These Ghanaian companies supply our industry Module Stools, Jumpers, Suction Piles, Sleepers, Risers, Manifolds, and Mud Mats.  And you have Zeal Environmental, Zoil, and OMNI Energy handling the industry’s waste management.  By giving these Ghanaian companies the opportunity and supporting them, the industry gains long term as the companies develop. And by this, we will be creating shared value”.


Ceona and Seaweld Form Ghana Partnership

UK based SURF contractor Ceona, has entered into a significant Joint Venture (JV) with Seaweld Engineering which will act as a strategic partner for offshore deepwater construction projects in Ghana. The British company credits itself with ‘heavy subsea construction capabilities’.

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Anchor Piles Being Fabricated in Ghana’s Brand New Facility

Work at the site has started on the fabrication of nine anchor piles for Ghana’s second floating production and storage (FPSO) vessel, which will start producing oil from the Tweneboa, Enyenra and Ntomme (TEN) fields in mid-2016.

The fabrication is underway in a new facility constructed by Tullow Oil in Sekondi in the country’s Western Region. The facility is built on a land leased by the Ghanaian Navy.

Following the completion of the anchor piles in April 2015, the facility will be used to fabricate jumper spools for the TEN Project, which will connect subsea production equipment on the seabed.

Development of the TEN Project is being led by Tullow Oil, with partners Ghana National Petroleum Corporation, Kosmos Energy LLC, Anadarko Petroleum Corporation and PetroSA.

The TEN Development Plan was approved by the Government of Ghana in May 2013 and requires the drilling and completion of up to 24 development wells. These will be connected through subsea infrastructure to a Floating, Production, Storage and Offloading (FPSO) vessel currently under construction in Singapore.

A second new fabrication yard, also commissioned to fabricate components for the TEN Project, will soon open in Takoradi port. Being built by Subsea7, this facility will be used to fabricate anchor piles for subsea manifolds.

Working in collaboration with the Petroleum Commission, the TEN Project is committed to maximising the amount of work undertaken in Ghana. Earlier this year, module support stools for the FPSO were fabricated by Seaweld Engineering Ltd and Orsam Ltd in Tema and Takoradi, subsea mud mats are currently being fabricated by Harlequin International Ghana Ltd and Accra-based Hydra Offshore Group is supplying engineering services to the project.

First oil from the TEN fields is scheduled for mid-2016, and the nominal production capacity of the FPSO is 80,000 barrels of oil per day.


Ghana’s Insurers to dip into the Gravy

Ghana’s Petroleum Commission has empowered the country’s home grown insurance companies to gain a significant share of the upstream petroleum business.

After several rounds of conversation involving oil companies,

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Made-In-Ghana Deck Stools arrive in Singapore For FPSO

By John Ankromah

Over 250 tons of Deck Stools and Pipe Racks fabricated by Seaweld Engineering Limited for MODEC for the construction of the T.E.N MV25 FPSO  has finally arrived in Singapore. The Made-in-Ghana steel work left the shores of the Takoradi Port in mid -June 2014 for installation onto the Centennial Jewel Super Tanker at Jurong Shipyard in Singapore. T.E.N refers to a cluster of oilfields, namely Tweneboa, Enyenra and Ntomme, located in Deepwater Tano licence.

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Ghana’s Local Contractor, Hydra Offshore, Is Involved In Subsea Engineering On The TEN Project

Ghanaian company Hydra Offshore is to be involved in every aspect of Wood Group Kenny’s subsea engineering services contract for the Tullow-operated Tweneboa, Enyenra and Ntomme (TEN) project, offshore Ghana. The local contractor works along on the project with the UK based  Wood Group Kenny until first oil is achieved in mid-2016.

The TEN project is Ghana’s next big thing after the Jubilee field. At peak, this cluster of fields, located in the  Deepwater Tano area, is expected to deliver 80,000BOPD. The Government of Ghana approved the Plan of Development in mid -2013 and the conversion of The Centennial Jewel trading tanker to an  FPSO is currently going on at Jurong Shipyard in Singapore.

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TOTAL Nudges Korean Contractor To Comply With Localisation Rules

TOTAL E&P Nigeria Limited, A Nigerian subsidiary of the French major, has directed Hyundai Heavy Industries (HHI)  to ensure full compliance with all applicable provisions of the Nigerian Content Act on the Ofon -2 project in the country’s south east shallow offshore.
HHI is a contractor on the NNPC/TOTAL Joint Venture’s Ofon-2 Project.
TOTAL’s directive follows an intervention by the Nigeria Content Development and Monitoring Board (NCDMB).

“While the relevant Ofon contracts was signed in 2007 before the Nigerian Content Act came into effect in 2010, TOTAL supports the Nigerian Government aspirations in respect of Nigerian capacity development and increase of local content in the oil and gas sector”, the company says in a release. “TOTAL has therefore directed HHI to significantly review the manning ratios to ensure the provisions of the Act are complied with”

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Regional Content is an option for West Africa

Osuntokun

By John Ankromah, in Accra and Lagos

A regional management approach to localization of oilfield activity on the West African coast is far more beneficial than the current country-specific local content programmes being pursued by each of the several countries in the region.

“Duplication of assets will be avoided and waste will be reduced as exploration companies share assets”, says Akin Osuntoki, founder of an oil service firm focused on safety and security issues in the region. There will be enhanced security through collaboration of all stakeholders”, he argues. “Cost of production will be reduced and there will be increased economies of scale”.

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Ghana’s Hydra Offshore Gets In Bed With UK’s Wood Group

Ghanaian service company, Hydra Offshore, is taking advantage of the localization opportunities in its home country, to collaborate with UK engineering company Wood Group in delivering subsea engineering services.

The two companies signed a Memorandum of Understanding (MOU) to explore opportunities to provide subsea engineering services to local operators. “This move highlights Wood Group’s commitment to nationalisation and engaging the local supply chain in countries it operates in,” Wood Group says in a widely distributed press release.  “The collaboration will combine the strengths of Hydra Offshore’s subsea engineering capabilities with technical experience, capability, technology and technical assurance of Wood Group’s global oil and gas business.

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