All posts tagged featured

Hess Finalises Ghana Divestment, Exits Africa…

By Johnny Matanmmy, in Malabo

Hess Corporation’s $100 Million Sale of its stake in Ghana comes barely three months after its exit from Equatorial Guinea.

It is leaving valuable assets in both countries; the Ceiba field and the Okume complex in Equatorial Guinea’s Rio Muni Basin were snapped up by Kosmos Energy, who reported that Hess’ lacklustre investment in those assets was the lead cause of decreasing output in the last few years.

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Angola Trounces Nigeria in 2017 Crude Oil Output

By Sully Manope, in Luanda

Angola averaged daily crude oil production of 1.632Million in 2017, compared with Nigeria’s 1.510Million, according to the current (February 2018) issue of OPEC’s Monthly Oil Market Report (MOMR).

These figures were obtained by OPEC secretariat through direct communications with the approving authorities in both countries, the report explains.
Production data obtained by the Secretariat from secondary sources are significantly different in terms of pattern; they cite Nigeria as having produced 1.66MMBOPD contrasted with Angola’s 1.639MMBOPD.

But for us in Africa Oil+Gas Report, the officially supplied data (ie one provided by the countries’ authorities) in the MOMR, corroborates the data on Angola’s dedicated reporting website, which we access every month.

Nigeria does not have a comparable website with the Angolan site, which presents every month, almost in real time, crude oil production data by all the companies operating in the country.

The Central Bank of Nigeria reports all liquid hydrocarbons, including natural gas liquids and condensates in its quarterly statements. The CBN fourth quarter 2017 report indicated 1.8MMBPD of liquid hydrocarbons produced by Nigeria. This is not as definitive as the Angolan reporting. The OPEC report and the Angolan dedicated website, report just the crude oil data. Condensates are not counted in OPEC production quota even though they are sold in the market as crude oil.

Find the full details of Angola’s 2017 production, including the main producers and their gross and net output, in this link.

Egypt is Close To Eliminating All Debts Owed To Gas Producers

By Mohammed Jetutu, in Cairo

Egypt is rapidly on course of eliminating debts owed by the state to E&P companies who produce natural gas in the country.

Between January and end of March 2018, Finance Minister Amr El-Garhy reckons, the country would have paid $750Million. The government pledges there would be no debt by the end of second half 2019.

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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.

Shell Signs On GE to Optimise Power Delivery At Afam VI

Shell Petroleum Development Company (SPDC) of Nigeria has signed a Multi-year Service Agreement (MYA) with GE for its 650MW Afam VI combined cycle power plant located in eastern Nigeria.

The agreement covers planned maintenance for the three existing GE GT13E2 gas turbines as well as one GE steam turbine.

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Sam Dossou Is The New ABR Chairman

By Sully Manope, In Lagos

Sam Dossou-Aworet, the widely influential Beninois businessman, who is Chairman of the Board of NDWestern Ltd, has been elected President and Chairman of the Board of the African Business Roundtable (ABR).

Dossou-Aworet is first and foremost founder and Chairman of Petrolin Group, which has extensive interests in oil and gas operations around the globe. Petrolin holds about 40% of the equity in NDWestern, a special purpose E&P firm which holds 45% in Oil Mining Lease (OML) 34 onshore Western Niger Delta.

Going by his pedigree, it is unlikely that the Presidency of the ABR will excite Dossou-Aworet, unless he plans to turn around the moribund entity, described in a recent press release as an affiliated group of the African Development Bank (ADB).

The toothlessness of ABR is evidenced by the fact that one man, Bamanga Tukur, a politician from Northern Nigeria, had held the Presidency for over a decade. And for all the conversations around Africa as an emerging business hub, ABR’s voice has hardly been heard.

Dossou-Aworet has far more influence in the business world than his predecessor on the job. His tenure may provide the tonic that ABR needs to step up and make impact on the African business landscape. Until he makes the required changes, his takeover of ABR is meaningless.

SDX Hopes For 150Billion Scuf In New Prospects

By Mohammed Jetutu, in Cairo

Egypt focused junior SDX Energy, is targeting 150Billion standard cubic feet of gas in two new wells proposed to be drilled from mid March 2018.
IbnYunus-1X and Kelvin-1X wells, in the South Disouq concession, will be drilled by the ST-6 rig, owned by the Sino-Tharwa Drilling Company, with which SDX has signed a rig contract for four firm wells and one contingent well.

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BP Delivers the First of Two Gas Projects

From discovery to market in three years

British major BP has put, on stream, the Atoll field in Egypt’s North Damietta Concession.
It’s the first of two Egyptian gas projects the company expects to put on stream in 2018. The second is Barakish Baltini SW field.

For Atoll, the target for this first phase development is 300 MMscf/d to the domestic gas market and it has come in two months earlier than scheduled.

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Weak Governance Shuts Out Investment in Nigeria’s Mega Gas Projects, says Lawmaker

There has been an increase in supply of Natural gas into Nigeria’s domestic market, but there has been little progress by way of investment in “mega projects”, in the opinion of Bassey Albert Akpan, a ranking law maker in Nigeria’s Upper House of Legislature.

The Chairman, Committee on Gas Resources in the country’s Senate, argues that “the failure to enact the downstream Gas bill creates the perception that Nigeria’s doors are not sufficiently open for business”. Akpan contends that this particular lack, “advances the view that regulatory frame work remains unclear and inconsistent”.

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Kosmos Hits Three Dry Holes Out Of Four in NW Africa

By Toyin Akinosho
One failed due to charge access, another for lack of trap, the third being evaluated….

Kosmos has encountered another dry hole in its campaign to find oil (and some gas) in the sequences outboard of its gas discoveries in the NW Africa margin.

The prospect, Requin Tigre-1 (Tiger Shark), in Senegal’s Saint Louis Offshore Profond block “was fully tested but did not encounter hydrocarbons”, the company declared on Monday, February 5, 2018.

Requin Tigre-1 was the fourth of a four well drilling programme which featured Yaakar-1, Hipoccampe-1, and Lamantin-1. This particular well was targeted at finding gas, and extending the 15-25Tcf Tortue play.

The well drilled to a total depth of 5,200 meters and was designed to evaluate Cenomanian and Albian reservoirs in a structural-stratigraphic trap, charged from an underlying Neocomian-Valanginian source kitchen. “Post-well analysis is currently ongoing to determine the reasons it was unsuccessful”, Kosmos lamented.

The four prospects are all located in combination strat/structural plays, with Cenomanian-Turonian and Albian oil source kitchen “with increased probability for liquids”.

But Yaakar-1 was the only one that was successful and even then, what it encountered was gas, which wasn’t the primary objective.
Kosmos had encountered tanker loads of natural gas in the Northwest African margin and was hoping to find oil in prospects located outboard of these gas tanks.

Hippocampe-1, drilled in approximately 2,600 meters of water in Block C-8, offshore Mauritania, “encountered well-developed reservoirs in both exploration targets but these proved to be water bearing”. Kosmos’ earth scientists believe that this prospect failed due to a lack of charge access in this part of the play fairway.

Lamantin-1 also came up water wet. Located in Block C-12 offshore Mauritania in approximately 2,200 meters of water, it was drilled to a total depth of 5,150 meters and was designed to evaluate a previously untested Lower Campanian base of slope fan supplied from the Nouakchott River system, trapped in a combination structural-stratigraphic feature, and charged from underlying, oil-prone Cenomanian/Turonian and Albian source rocks. But the Campanian reservoir objective was water bearing with some residual hydrocarbons due to, Kosmos believes, “a lack of trap, related to a combination of up-dip sand pinch-out and top / base seal effectiveness”.

Kosmos, a passionate exploration company, looks on the bright side: “With each exploration well drilled, we deepen our understanding of this newly emerging basin, further refining our geologic model and geophysical tools. Requin Tigre was the last well in our second phase of exploration of the deepwater Cretaceous petroleum systems offshore Mauritania and Senegal targeting large basin floor fan structures.

We have delivered one success (Yakaar) in four wells in this second phase programme, following three successes in three wells (Tortue, Marsouin, Teranga) in the first phase programme targeting inboard structures on the slope. Overall we have discovered gross resource of 40 trillion cubic feet, at a net cost of $0.20 per barrel of oil equivalent benefiting from the partner carry, and have created the potential for two world scale LNG hubs. We will rigorously evaluate our large inventory of prospects across Mauritania and Senegal ahead of the next phase of exploration offshore the two countries.”

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