All posts tagged featured

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.

Petrolex Opens Tank Farm, Planned to Be Africa’s Largest

By Paul Kelechi

Petrolex Oil & Gas Limited, is set to launch what it calls a Mega Oil City in Ibefun, Ogun State, in the north of Lagos, Nigeria’s commercial hub.
The company says it is part of a plan to revolutionise the Nigerian oil and gas landscape.

It has invited Yemi Osinbajo, the Vice President, to launch the facility, the heart of which is reportedly a 300 million-litre capacity tank farm with the capacity to turnover 600Million litres of petroleum products every month.

“The facility is expected to improve the average Nigerian throughput capacity for distribution of petroleum products by over 500%”, the company says. Petrolex argues its project will decongest the tanker traffic in Apapa (the Port suburb of Lagos) and Ibafo (in the hinterland) by 60%, thereby eliminating hazards associated with storage and transportation of petroleum products in those areas. “To facilitate the achievement of its strategic goals, Petrolex has 16 barges, 8 tugboats and a 30KT vessel”, the company claims, adding, “the Petrolex Mega Oil City has a residential quarters, army barracks, 30 loading gantries and a 4000-truck capacity park with accommodation for drivers”.

The company reports that the tank farm is highly accessible through land and waterways; with easy access from the Atlantic Ocean. But how is that?
Petrolex’s CEO Segun Adebutu says the company consulted the vast midstream experience in the Netherlands “where They have narrow channels that are shallow but they are still able and capable to move their products up and down. They came in and did a survey and then built special barges that when fully laden, require just 1.8m draft to be able to operate. We spent close to $50Million building that fleet”, he claims. “What it essentially means is that, from our SBM (Single Bouy Mooring) point, we can bring in cargo into the channel and pump it into our tanks; which means we don’t need to dredge. That doesn’t mean to say some dredging hasn’t been done because space has to be created at the turn-around area and at the elbow coming into the River Aye.

“The River Aye empties into the Lekki channel which then empties into the lagoon and then into the Atlantic. So there is a way of bringing in, to a certain point, big vessels that will be anchored. Because they are too big to come in here, our barges will have to meet them half way and transship the cargo and bring it to site. In the long run, because we are going to be handling much more products from the refinery, we have finished doing the Front End Engineering Design to build using the micro-tunneling technology, a 32km pipeline that will go all the way past the fairway buoy and exit at an export platform. What that means is that, unlike an SBM, it can take up to 3 Super Maxis. Super Maxis are vessels that can take up to 200,000 tons of petroleum product, crude or whatever. They can berth there and we can pump as much as 200Million liters a day via the pipeline into the facility.

The reason we require that kind of volume is that that kind of pipeline is not just going to pump in or out only clean products; we are going to have a gas pipeline in it and also a pipeline that will handle crude.

Petrolex says it has a vessel that can take 30,000 tons of product, 16 barges that can carry clean products that can be propelled by push-out tugs.
This is essentially why it can say it has “proximity to the Lagos market, and easy accessibility to the Northern and Eastern parts of Nigeria, gives it a strategic advantage, as customers can load their products in unprecedented time and avoid delays which characterise the industry”.

ENI Pools $4.7Billion From Seven Lenders For Coral South FLNG

Italian giant ENI and its partners have pooled $4.675Billion worth of debt facility from seven lenders for the Coral South FLNG development, offshore Mozambique.

In the company’s announcement regarding the project’s financial close, Africa’s most aggressive hydrocarbon explorer lists five export/import credit agencies as participants in “covered loans”.

ENI and Co are also taking two direct loans, one each from an unnamed Commercial Bank and the Korea Export Import Agency (KEXIM).

ENI reports that the total amount of debt is split in the following facilities:

• France owned BPI Export Credit Agency -Covered Loan
• Korea Eximbank (KEXIM), the official export credit agency of South Korea-Covered Loan
Italian Export Credit Agency(SACE)-Covered Loan
• Korea Trade Insurance Corporation (K-sure)-Covered Loan
• China Export and Credit Insurance Corporation (Sinosure) -Covered Loan
• Commercial Bank Direct Loan (Unnamed Bank/s)
• KEXIM Direct Loan

Coral South FLNG, located in Area 4, in deepwater Rovuma Basin, is the first project sanctioned by the Block’s Partners for development.

It targets the production and monetization of the gas contained in the southern part of the Coral gas reservoir, by means of a floating LNG plant with a capacity of 3.4 MTPA. A Sale and Purchase Agreement was signed in 2016 for the sale of 100% of the LNG production to BP.

ENI is the Operator of Area 4, holding a 50% indirect interest through its participation in ENI East Africa (EEA). In March 2017, ENI and ExxonMobil signed a Sale and Purchase Agreement to enable ExxonMobil to acquire a 25% interest in Area 4, through EEA.

The remaining interests in Area 4 are held by CNODC (20%), Empresa Nacional de Hidrocarbonetos E.P. (ENH, 10%), Kogas (10%) and Galp Energia (10%).

Equatorial Guinea Is Excited About Only Four

By Sully Manope

Equatorial Guinea is not expecting all the seven companies which won acreages in its last bid round to get up to speed with their proposed work programmes.

The country’s oil patch is littered with stories of several companies which picked up assets and did not implement a robust work programme, let alone drill a single well, even though they were obligated to, for, in cases, close to a decade.

Which is apparently why Gabriel Mbaga Obiang Lima, the Minister of Petroleum, chooses to talk up only the companies that he sees, with their track records, are more likely to do the work.

In three conferences in the last three months, he has talked excitedly about Kosmos Energy’s entry into the country, ExxonMobil’s sign-on into a new acreage and Ophir Energy’s winning of Block EG-24.

Of these three companies, only Ophir got its own new block through the process of the last bid round. Kosmos got EG-21, S and W by discretionary awards and bought out Hess from the Ceiba and Okoume fields. ExxonMobil got Block EG -11 also by negotiations with the authorities.

Equatorial Guinea knows that there are questions around the other six (apart from Ophir), who won in the bid.Atlas Petroleum, which is partnered with South Africa’s Strategic Fuel Fund for Block EG-10, is well known for sitting on assets without taking them any closer to drilling, let alone development.

Given its pedigree in EQ Guinea, where it sat on Blocks until bigger independents came in to farm in at least five years after it had been awarded the acreages, it is surprising that it won this time again.Atlas Petroleum has repeated this pattern all over Africa.

Offshore Equator Plc, which won Block EG-23 is unknown; Taleveras, which picked up Block EG-07, is an oil trader trying to feel its way upstream. Its oil trading business is not anywhere on the scale of Vitol or Glencore, who have been acquiring upstream acreages too, but have the deep pockets to purchase upstream technical expertise.

Elenilto won Block EG-09. It’s an Israeli group involved in a range of activity from real estate to renewable energy, is relatively a novice in oil and gas. Its only hydrocarbon asset is the Senegal Offshore Sud Shallow Block (SOSSB), on which it has announced no work programme. One company that looks, from a distance, a little earnest is Clontarf Energy, which won Block EG-18.

TOTAL Progresses New Oilfield Projects After Egina and Kaombo

By Fred Akanni

With two huge deepwater projects now close to first oil, French major TOTAL is progressing two relatively minor, field developments offshore Nigeria and Angola, its African heartlands.

Ikike, in shallow offshore Nigeria and Zinia Phase 2, in deepwater Angola, are prognosed to deliver 40,000BOPD each at peak from sometime after 2019.

Angola’s Kaombo and Nigeria’s Egina, each expected to produce at least 200,000BOPDat optimum, will reach first oil latest January 2019.

TOTALholds 40% operatorship in the acreages that host these two projects; The Ikike field is located in the eastern part of the Oil Mining Lease (OML) 99, which also hosts the iconic Amenam-Kpono field. The Zinia 2 project is domiciled in Block 17, TOTAL’s most prolific hydrocarbon property on the continent. It will be connected to the Pazflor FPSO.

TOTAL has been one of the three most aggressive major operators in Africa, with a mix of rank wildcat exploration acreage, near term assets and producing properties.

The company has signed high level cash call exit with Nigeria’s NNPC-which means that the Ikike project will be funded outside the Nigerian official budget. In Angola, TOTAL’s CEO Patrick Pouyanné, recently concluded a range of cooperation agreements with Sonangol, the state hydrocarbon entity.

FID Dates Slip Again For ANOH and Fortuna

By Fred Akanni, in Malabo

London listed juniors: Seplat Petroleum and Ophir Energy, have again slipped in their proposed dates for final investment decisions (FID) on their respective gas monetisation projects.

They had both declared the end of the first half of 2017 as target date, missed that timeline and now they are both saying that First Quarter 2018 is more likely.

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Don’t Rule Out FID For Kudu Gas To Power in 2017

BW Offshore, the main investor in the upstream part of Namibia’s Kudu Gas To Power project, has not ruled out financial sanction for the project before the end of 2017.

The company indicated in the events guidance in its 3rd Quarter 2017 report, that Final Investment Decision for the 800MW project remains one of the several milestones on the cards for second half of the year.

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NLNG Mulls A 2018 Date for Financial Close on Train 7 Plus

Nigeria LNG Limited has declared it is making steady progress towards achieving Final Investment Decision (FID) on its Train 7 Plus (7+) project during 2018.

“This phase of the company’s strategic growth programme will on completion upscale NLNG’s annual production capacity from the current capacity of 22MMTPA (Million Metric Tonnes Per Annum) to 30MMTPA”, the company’s spokesman, Kudo Eresia-Eke, said in a release.

He was quoting Tony Attah, NNLG’s Managing Director and Chief Executive Officer, who said at the World LNG Summit holding in Portugal, on Wednesday November 29, 2017, that West Africa’s largest gas export company was looking to the project’s financial close in 2018, “with the full support of the NLNG Board.”

This would mean that the prospects for constructing the 8MMTPA capacity train has brightened since it came on the drawing board at least 12 years ago, as Natural gas grows to account for a quarter of global energy demand, becoming the second-largest fuel in the global mix after oil by 2040, according to the International Energy Agency (IEA)’s New Policies Scenario.

The current period in which this Final Investment Decision is being taken certainly has its own challenges. There is ample supply and the prices are low, but the IEA says that so long as “gas remains affordable”, its growth in the near future is assured. To NLNG’s advantage, “LNG accounts for almost 90% of the projected growth in long-distance gas trade to 2040: with few exceptions, most notably the route that opens up between Russia and China, major new pipelines struggle in a world that prizes the optionality of LNG”, the IEA says in its latest report.

“With Nigeria’s proven reserves of about 192 trillion cubic feet of natural gas, and another 600 trillion cubic feet in potential, this milestone development is coming at a crucial time. I am excited about this development which would not be possible without the support of our Board and shareholders”, Attah said at the Summit, attended by the world’s leading LNG stakeholders.

“NLNGhas so far converted over five trillion cubic feet of associated gas, which otherwise would have been flared, to liquefied natural gas (LNG) and natural gas liquids (NGLs) for both export and domestic use. It is Nigeria’s most significant natural gas utilization intervention to date, which is helping to preserve the environment and support Nigeria’s economic growth”, Attah told the audience. “From an initial investment of about $6Billion, NLNG has grown into a $15.6Billion investment with an asset base of about $11billion”, he explained. “The company has generated $90Billion in revenues as well as paid $5.5 billion in taxes to the government. The company has also has helped monetise the country’s gas resources and significantly contributed to reducing gas flaring from 65% to less than 20%,” he remarked.

NLNG runs an integrated plant on Bonny Island where its current six liquefaction trains share common facilities including storage tanks, shipping capacity and loading jetties with a gas intake of 3.5Billion standard cubic feet of natural gas per day.

All these have been achieved with a management staff entirely made up of Nigerians and a workforce which is 95% indigenous.

NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49%), Shell Gas B.V. (25.6%), Total Gaz Electricite Holdings France (15%), and Eni International N.A. N. V. S.àr. l (10.4%).

Africa Development Bank wants A Manager For Electrical Power Operations

• Position title: Manager – Power Operations
• Grade: PL2
• Position N°: TBA
• Reference: ADB/17/489
• Publication date: 24/11/2017
• Closing date: 08/12/2017

For Details, please click on the link below

Mozambique Seeks A Consultant For Local Participation Strategy For Gas Monetisation

The Mozambican government has received financing from the African Development Bank toward the cost of Enabling Large Scale Gas and Power Investments in Mozambique Technical Assistance (ESLGAPI) to improve the enabling environment for investments in the country’s promising sector.

The Ministry of Mineral Resources and Energy (MIREME) is the implementing agency, and now invites eligible consultants to indicate their interests in providing services in the area of development of local content polices and strategy preferably in extractive sector, knowledge of technological aspects of the Upstream of the Oil and Gas value chain, experience in supply chain of goods and services in oil and gas sector including working in developing countries, particularly in Africa’s oil and gas sector.

The deadline for submission of expression of interest is December 14, 2017.

See full details of application procedure here.

© 2017 Festac News Press Ltd..