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Tony Hayward Bows Out of The Company He Created

By Sully Manope

Tony Hayward will retire as a Director and Chairman of Genel Energy, a company he helped create, at the conclusion of the 2017 AGM, to be held on June 6, 2017.
Stephen Whyte will take up the role of Chairman.

Genel Energy was formed in 2011 through the reverse acquisition of Turkish Genel Enerji by the  investment company Vallares, led by Tony Hayward, who had just been forced out as CEO of BP (in the event of the Deep water Horizon spill in the Gulf of Mexico), Nat Rothschild, a financier and Julian Metherell, a banker.

At the time, Genel Enerji was controlled by the wealthy Turkish businessman Mehmet Emin Karamehmet, who ran the company through his Cukurova Group (56%), a conglomerate and Mehmet Sepil’s family (44%). At the time Hayward and his partners showed up, Genel Enerji’s planned merger with Heritage oil, (the defunct British independent), had just collapsed.

But Hayward’s six year old creation has struggled, largely due to the challenges of receiving payment from production of its flagship asset, the Taq Taq field, located in the Kurdistan part of Iraq.

Whyte’s appointment as an independent non-executive director and Chairman designate was announced on April 24, 2017.

 Genel has some positions in Africa: in Somaliland and in Morocco, but it is not excited about either. Citing security issues, it has not conducted an aggressive work programme on the two acreages it operates in Somaliand. It plans to acquire portions of speculative two dimensional (2D) seismic data that the government has purchased and interprete the data after which, it says, it is not keen on extending the licences on the acreages.

In Morocco, Genel has drilled a well, which was promising, but it is not talking of appraisal.


Uganda’s Licencing Round Unravels

Two of the four companies that won the three acreages awarded at the close of Uganda’s 2015/2016 licencing round have discontinued with the process.

Waltersmith Petroman Oil Limited, awarded the 425 km2 Turaco Block in Ntoroko District, has opted out because of what it calls “unfavourable terms”.

Niger Delta Petroleum Resources(NDPR), which was paired with Oranto Petroleum International on the 410 km2 Ngassa block in Hoima district, said from the onset that it did not want to do get into the block unless it was granted operatorship. The company hasn’t had a conversation with any Ugandan official in the last four months.

Follow this link for fuller details of the report.


S/Sudan Opens Up Blocks B1 and B2 To Negotiations

Talks With TOTAL &Co Collapse

South Sudan’s Ministry of Petroleum says it welcomes the interest of investors for direct negotiations on oil and gas in blocks B1 and B2. The announcement comes after negotiations broke down with the French oil and gas company Total E & P due to irreconcilable differences. 

Officials of the Ministry of Petroleum met with representatives of the French major TOTAL in Kampala, Uganda between April 10 and 21, 2017. Also involved in the negotiations to develop an exploration and production sharing agreement (EPSA) for the blocks (B1 & B2) were UK independent Tullow Oil Private Limited Company and the Kuwait Foreign Petroleum Exploration Company (KUFPEC). The negotiations reached an impasse over the proposed exploration period and cost recovery limit. 

“Following lengthy discussions with representatives of the company Total we have decided it is in the best interest of South Sudan to open opportunities to other potential investors,” said Ezekiel Lol Gatkuoth, Minister of Petroleum of South Sudan. “We had hoped for a favorable outcome but we believe these large and highly prospective blocks need a fast and ambitious development program to achieve their full potential. B1 and B2 are now open for direct negotiation.”

Blocks B1 and B2 were once part of the 120,000 square kilometer area known as Block B, which was divided into three licenses in 2012. The area is highly rich in hydrocarbon deposits but has experienced very little exploration. In March 2017, Pan African independent Oranto Petroleum Limited signed an exploration and production sharing agreement (EPSA) with the Government of South Sudan for Block B3. The area covers 25,150 square kilometers and has estimated reserves in place of more than 3 billion barrels.

“The resource base in these blocks are enormous and we need committed operators who are ready to invest and work with our government to comply with the laws of our country,” said the Minister. “South Sudan is creating an enabling environment for companies to operate. We want companies to invest, explore, produce and we are ready to offer incentives to investors.”
The Government of South Sudan has adopted a very pro-business stance with the expectation that aggressive investments in the petroleum sector will stimulate the economy. In 2017, the Ministry of Petroleum announced it was planning to double its total oil production by next year. South Sudan currently produces 130,000 barrels per day but can produce as much as 500,000 barrels per day. 

The Ministry of Petroleum invites companies to negotiate directly on Blocks B1 and B2. Government officials will be present at the Africa Oil & Power conference in Cape Town onJune 5, 2017 to advance discussions with interested parties.


In Senegal, The Aptian Carbonates Are Not Commercial

By Sully Manope, in Dakar

Cairn Energy has failed to find a commercial pool of hydrocarbon in the deeper, older reservoirs below the play it encountered in its 2014 discovery of the SNE field in Senegal.

The VR-1 well was loudly applauded in the media as a bigger success than most of the five appraisals of the SNE-1 discovery.” It is a significant step out, some 5 km west from the line of wells drilled to date, including the SNE-1 discovery”, Cairn says. “The results will be useful for the planning of the first phase of development – the lower 500 series reservoirs are the better connected, more tabular, highly productive sands, where water-flooding should yield recovery factors of 30% or more”. 
But while VR-1 was primarily meant to evaluate the 500 series reservoirs already confirmed elsewhere, its secondary objective was to test the carbonates below those sands.

“The deeper carbonate exploration targets were encountered as expected with indications of hydrocarbons at the base of the well in tight formation that is not currently viewed as commercial”, the company says in a release. 
A significant amount of new stratigraphic and log data has been recorded which will be incorporated into the regional geological model” Still, the company is encouraged that the appraisal results from VR-1 are very encouraging, as the well result confirms the predictability of the mapped reservoir over a wide area giving confidence to the reservoir engineering models”


WAIPEC Returns In February 2018

The West African International Petroleum Exhibition and Conference (WAIPEC) will return to Lagos, in Nigeria, for its second edition 6-8th February 2018.

The Petroleum Technology Association of Nigeria (PETAN), which backs the new gabfest, says that the second edition is insured by the “hugely positive feedback from the inaugural event” which took place at the Eko Convention Centre in February 2017.
 
“Over 350 delegates and over 200 participating companies took part in WAIPEC 2017”, PETAN says in a release. Through topical debates and speaker sessions over two days, “the conference offered exclusive insight in to how to unlock strategic value within West Africa’s oil and gas sector, how to leverage innovation, best practice and technology to grow the industry and how to remain competitive in a tough global market”, the statement declares.
 
“An international exhibition ran alongside the conference showcasing all of the latest products and services from companies”, PETAN reports. “Speakers and participating organisations included representatives from The Nigerian National Petroleum Company, Shell Nigeria Exploration and Production Companies Ltd, Seplat Petroleum Development Company Plc, First E&P Development Nigerian National Petroleum Corporation and Nigerian Content Development and Monitoring Board.
 
“WAIPEC’s programme for 2018 will build on the progress of 2017 and will once again be driven by an esteemed steering committee, representing a cross section of key stakeholders from the Nigerian oil and gas industry”. 
 
Bank Anthony Okoroafor, Chairman of PETAN commented; “WAIPEC 2017 provided a great platform for the very best representatives from across the West African energy industry to come together and discuss, deliberate and share their insight and knowledge towards creating beneficial strategies for the betterment of all areas of the industry. After some fantastic feedback and much demand, we are delighted to announce that WAIPEC will return for 2018, where we will continue the conversation and hopefully reflect on the progress that has been made from 2017.”
 
The Conference calls on all to visit www.waipec.com for full details and registration.
 


Power Consultant Is Neconde’s New CEO

Frank Edozie has taken over from Malije Okoye as the Chief Executive Officer of Neconde, the Nigerian E&P independent. It’s a big job: Neconde is 45% partner and co-operator of the Oil Mining Lease (OML 42), which produced 25,000BOPD average gross in March 2017. The asset also has a 40MMscf/d gas processing plant recently inaugurated.

Until March 2017, Edozie was the Senior Power Consultant at Nigeria Infrastructure Advisory Facility (a UK Department of International Development (DFID) programme) a job he took in July 2015. Prior to that he was the Senior Special Adviser (Gas) to Nigeria’s Minister of Power between November 2013 to June 2015. He was also a member of the team that in 2013 developed the Nigerian 30-years National Integrated Infrastructure Master plan which set out the national blueprint for infrastructure development over the period.

Edozie worked with Shell in various capacities over the years and has had variety of assignment in many of Shell’s upstream locations around the world, including the position of General Manager, Commercial at the defunct Olokola Liquefied Natural Gas (OKLNG) Project from September 2010 to June 2013.

Neconde’s new MD says he has keenly followed developments across the entire Power value chain, over the past 24 months, with particular interest in gas-to-power and the completion and commissioning of the power plants (being) built under the Nigeria Integrated Power value plant (NIPP) scheme.


Nigerian Indies Get Their Barging Right

By Fred Akanni, Editor in Chief, in Warri

With the shut in of the Trans Forcados pipeline, their crude evacuation route, six Nigerian owned E&P companies faced the prospect of zero production for an inordinate amount of time.

Three of them opted to barge some of their crude through rivers and export through FPSOs.
But there were initial challenges.
Now those hurdles are clearing and the barging route has become a surer alternative for crude from Seplat’s Oil Mining Leases 4, 38 and 41; Elcrest’s OML 40 and Neconde’s OML 42.
Other companies are scrambling on this barging route as alternative to the pipeline route.
Read the full details in the OTC 2017 Edition of the Africa Oil+Gas Report, here


Tembo Appraisal Waits On Farm in Partner

By Sa’ad Bashir, East Africa Correspondent

Wentworth Resources says that the drilling of an appraisal well on the Tembo structure depends on its finding a farm in partner to bear the cost.

The AIM and Oslo listed explorer made a gas discovery, Tembo 1, in cretaceous sands in the 2,500 km2 Tembo Block, onshore Mozambique, in December 2014 and an oil and gas bearing show in a deeper reservoir. Wentworth is hoping to encounter oil in a down dip, thicker section of that deeper reservoir.

With 85% operatorship, it has been hoping to farm down.

“The Company is now working on advancing a farm-out process with a view to securing an industry partner to jointly drill an appraisal well in 2018”, Wentworth says in a release.

Wentworth is working on 1,000 km of existing seismic data is complete, interpretation is being finalized and results from the Tembo-1 discovery well have been fully analyzed. We will update the market as material developments on this asset occur.


TOTAL and Sonatrach Settle Outstanding Differences

By Mohammed Jetutu, North African Correspondent, in Cairo

The 64Bcf/year Timimoun Gas Project is at the heart of the agreement

Sonantrach-the Algerian state hydrocarbon company-has signed, with French major TOTAL, a comprehensive agreement enabling both to expand their partnership by progressing new upstream projects, notably with a new contractual framework for the Timimoun project, continued joint operations for the TFT field under a new agreement and joint development of a new project, as well as the amicable settlement of outstanding differences between the two companies.
 
The accord also enhances cooperation in other areas including exploration, petrochemicals, solar and international developments.
 The agreement is more than welcome lift for Sonantrach, who has struggled to attract new significant investment from large European and American companies for over a decade.
TOTAL says that the deal underscores “the willingness of Sonatrach and TOTAL to continue to work together to further develop and strengthen their historic partnership”.


M&P’s Tanzania Gas Production Far Less Than Optimum

By Sa’ad Bashir, in Dar es Salam

But the state hydrocarbon company is a ‘good customer

Maurel et Prom’s first quarter 2017 production from the Mnazi Bay Field averaged forty three million
standard cubic feet a day (43 MMscf/d).
This is just around half of the initial maximum volume the company and its partner agreed to supply the
Tanzanian gas network.

Pursuant to the Mnazi Bay Gas Sales Agreement, the Mnazi Bay Partners were contracted to supply to
the Pipeline Project up to a maximum 80MMscf/day of natural gas during the first eight months with the
option to increase over time to a maximum 130MMscf/day of natural gas for up to 17-year supply
period. The gas is sold and purchased at the inlet to a 16 inch pipeline connecting the Mnazi Bay gas
production facility to the state operated Madimba central processing facility.
Apparently the country’s natural gas demand has not surged as the government expected, at the time it
signed the contract in 2015.

Tanzania Petroleum Development Corporation ("TPDC"), who is the wholesale offtaker, commenced gas
delivery to a new industrial customer, Goodwill Tile Factory in first quarter 2017, demonstrating demand
growth from the industrial sector which is expected to increase throughout 2017 as Dangote Cement
begins using gas for power generation.

Wentworth, the junior partner in the Mnazi Bay project, says that the state hydrocarbon company has
so far been a good customer. So far in 2017, TPDC has settled in full the November 2016 and December
2016 invoices that were outstanding at the year end, and has also settled a 2015 invoice for line fill gas
volumes.

“As part of our Gas Sales Agreement with TPDC, payment guarantees are in place which can be utilized,
if determined necessary, should payments from TPDC be excessively delayed”.

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