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More Data For Gabon’s Licencing Round

CGG has completed its acquisition of 9,800 line kilometre long-offset broadband two dimensional (2D) multi-client seismic survey “in the highly prospective Gabon South Basin”, the company reports. “Fast-track data sets will be delivered in batches from the end of April 2019, giving interested oil companies sufficient time to understand offshore petroleum systems and appraise blocks offered in Gabon’s 12th offshore licensing round”

Deadline for licence applications is September 30, 2019.

CGG has claimed credit for two “successful” wells drilled on acreages granted during Gabon’s 11 th round because they were drilled on data it acquired on those acreages.
One of the wells, Boudji-1, drilled by the Malaysian state hydrocarbon company Petronas, is located in the south Gabon basin.

The just completed data set, CGG says, will help define the full extent of existing and new plays in the region. “It will also aid in understanding the thickness variations in the sediment overburden for source rock and maturity analysis”, CGG touts. “Broad bandwidth data will not only increase resolution and improve characterization of the turbidite systems that represent potential exploration targets, it also provides deep imaging penetration with low frequencies to help describe the nature of the crust. New insights from this data will expand and update CGG’s Gabon South Basin JumpStart™ integrated geoscience package”.


Nigerian Government Revokes Licences of Seven Oil Blocks

By Prospect Mojiddo, in Warri

The Nigerian government has approved the request to revoke the licences of six Oil Mining Leases (OMLs) and one oil prospecting lease (OPL), in the onshore, shallow water and deepwater Niger Delta basin.

The request was made by the country’s Ministry of Petroleum Resources.

The assets are all held by Nigerian companies.

Revocation is the ultimate penalty for defaulting on royalty payments and the Nigerian government has not always be keen to wield the stick. Indeed, the country is perhaps the most lenient in Africa, in applying the full force of the law on oil acreage rent, especially when it concerns local E&P
companies.

The acreages affected include OML 98, an onshore asset located on the western flank of the Niger Delta, held by Pan Ocean, a company controlled by the Nigerian businessman Festus Fadeyi; OMLs 120 and 121, held by Allied Energy, which has changed its name to Erin Energy and has now gone bankrupt; OML 108, held by Express Petroleum, but whose technical activities are managed by Shebah Exploration & Petroleum, a company owned by Seplat Chairman A.B.C Orjiakor and OML 141, held by Emerald Resources whose principal, Emmanuel Egbogah, passed on recently..

The only OPL among the seven is OPL 206, held by Summit Oil International, a company founded by the late Moshood Abiola, politician and businessman, whose victory at the country’s Presidential elections in 1993 was annulled by the Military.

 


From Oando to Axx….Gas & Power Now 100% Helios Owned

What used to be Oando Gas&Power is now 100% owned by Helios.

The company was named Axxela Limited after Helios Investment Partners purchased a majority stake in Oando’s gas and power business enterprise in December 2016. Now, Helios, a private equity firm with a focus on investments in Africa, has acquired Oando’s remaining 25% interest in Axxela. Bolaji Osunsanya, who has been the Chief Executive all through the several stages of acquisition pays homage “to our storied history and legacy”, but quickly adds that “our recognition as being fully owned by Helios gives us global positioning, greater financial flexibility, and access to capital going forward”.

The history and legacy that Osunsanya speaks of includes Gaslink, the brave builder of natural gas pipeline from the Lagos city gate in Ikeja, in the north of the country’s main financial hub, to Apapa, Nigeria’s largest seaport located in the west of the city. That pipeline was constructed on the back of a franchise from the Nigerian Gas Company, to take some 50Million standard cubic feet of gas per day from the Lagos end of the Escravos Lagos Pipeline and distribute to industries and factories in the city. It was the first time an entirely midstream private (and Nigerian owned) company had emerged to supply natural gas to end users. Prior to that, AngloDutch Shell was distributing natural gas in the industrial estate of Agbara on the Lagos outskirts and in the market towns of eastern Nigeria.

Oando also boldly constructed a 128km pipeline in the country’s southeast, but later sold that infrastructure to Seven Energy after it started having financial challenges, mostly due to its acquisition of stakes in ENI (Nigerian Agip) operated upstream oil acreages. “As a partner of choice, we have immense pride in the growth, robustness, and stability of our existing business enterprise, enabling us spur the aggressive expansion of our footprint via our audacious growth initiatives in Nigeria and the West African region,” Osunsanya boasts. Axxela says it is the first private company to attain a shipper’s licence on the West African Gas Pipeline and the first company in the Nigerian oil & gas space to simultaneously integrate and ISO Standards – ISO 9001:2015 (Quality Management Standard), ISO 14001:2015 (Environmental Standard) and ISO 45001:2018 (Occupational Health and Safety Standard).


First E&P Spuds First Well on Anyala & Madu

First E&P has spud its first well in development of the Anyala and Madu field,s in Oil Mining Leases(OMLs) 83&85, offshore central Niger Delta.

The driller is UAE based Borr Drilling, who will be utilising the Natt, one of its premium jack ups, for the two year contract running from April 2019 to April 2021.

The fields will be drained by 20 wells in total. The agreement to develop Madu and Anyala (discovered by Texaco, which was bought over by Chevron) was signed between Schlumberger, NNPC and First E&P, as far back as June 2017, with Schlumberger committing to provide technical services, as well as funding the $724Million for the project.

First E&P acquired approximately 900km² of 3D seismic data over both licenses between October 2017 and January 2018. Aquaterra Energy was contracted to design, develop and install two offshore platforms for the project, Africa Oil+Gas Report reported in December 2018.

The scope of work includes design, topsides engineering, procurement, fabrication and logistics. The Norwhich, UK headquartered contractor is expected to deploy the Seaswift offshore platform on the two sites. It will work on the project in conjunction with a local partner, Maerlin Nigeria Limited, a relatively unknown, Nigerian owned oil and gas service firm. (On its website, Maerlin does not disclose what projects it had been involved in, in the manner of most Nigerian service companies).

The partners will manage the end-to-end project scope with engineering and onsite fabrication support being performed in Nigeria, Africa Oil+Gas Report reported last December. The platforms were supposed to be installed in water depths of 35metres to 55metres with first oil expected in late 2019, but with the first well just being drilled, the likelihood of first oil in 2019 is far fetched. Yinson Production, a subsidiary of Yinson Holdings, signed a heads of terms agreement with First E&P to supply and charter an FPSO for the project. The Anyala and Madu fields are estimated to contain combined reserves of 193 million barrels of oil (MMBBls) and 0.637 trillion cubic feet (Tcf) of gas.


Excel, Express, Dubri, Produce the Lowest Volumes in Nigerian Output

The Nigerian independent Express Petroleum produced 60Barrels of Oil Per Day on average, making it the E&P company with the lowest operated output in Nigeria in 2017, according to the latest annual report of the Department of Petroleum Resources DPR, the industry regulatory agency.

Slightly ahead of Express is Excel E&P, credited with operated output of 227BOPD in the year.

Dubri’s output was slightly higher at 348BOPD.

Atlas Petroleum, owned by the businessman Arthur Eze, was credited with an operated average daily output of 399BOPD.

Apart from these four, every other company on the list of operating companies in the country,-with the exception of Frontier Oil, produced over 1,000BOPD on average.

Frontier, which produced 332BOPD, was excluded from the companies producing lower than 1,000BOPD because, unlike Express, Excel, Dubri and Atlas, it is not an oil producer. The company is a gas producer which happens to output small amounts of condensate, metred and marketed as light crude.

For full details of who produced what in the year under review, as well as current output of Nigerian independents, please click here.


Belemaoil Is ‘Carpeting’ OML 55 in 3D Seismic Survey

The Nigerian independent Belemaoil has started work acquiring three dimensional (3D) seismic data on its Oil Mining Lease (OML) 55 in the eastern Niger Delta Basin, Eastern Nigeria.

The BGP/IDSL consortium is acquiring the data, which spans 1,300 square kilometres on the surface, covering the Robertkiri, Idama, Inda and Jokka fields in the acreage as well as some adjoining areas.

The surface area of OML 55 is 808 square kilometres, but if the desire is to cover the entire acreage, it is in the nature of seismic acquisition to survey more than the areal size of the asset, to ensure that every inch of the territory is accounted for in the resulting data set.

The survey’s fold of coverage is 180 and the company expects to acquire deeper than six to seven seismic seconds, so it can image possible reservoirs as deep as 14,000feet True Vertical Depth subsea.

“It will take some 20-24 months from now before the entire programme would be completed”, say sources at the Nigerian National Petroleum Corporation NNPC, the state hydrocarbon company and the non-operating Joint Venture partner to Belemaoil. “The entire place is in swamp and security challenges pose a constraint on the timing of the data acquisition process”.

Belemaoil produces about 9,500Barrels of Oil Per Day from OML 55 and is hoping to utilise the seismic data to improve the field development.

 


Aker Submits PoD To Ghanaian Authorities

Looks towards 110,000BOPD at peak by 2023

Norwegian operator Aker Energy has submitted a Plan of Development for the Pecan field in the Deepwater Tano Cape Three Points block (DWT/CT), to Ghana’s Minister for Energy, John-Peter Amewu.

The plan, submitted Friday, March 29, 2019, provides an outline of a development project to drain over 400Million barrels of oil equivalent (400MMBOE) in a field located in 2,400 metres of water in the transform margin of the Gulf of Guinea. The assumed cost of the project is $4.4Billion.

Aker Energy has reported that the recoverable reserves estimate could be more than double the 400MMBBOE, as the company envisages new discoveries outside of the main structure.

Aker’s use of the term ‘barrels of oil equivalent (BOE)’, instead of simply ‘barrels of oil (BO)’, for reserves estimate, is an indication that there’s significant volume of gas and/or condensate in the reservoirs. In short, this is not a pure oil play.

Aker Energy has also repeatedly indicated that the field could produce as much as 110,000Barrels of oil per day. What it hasn’t said, in public, is how long the peak production could last.  First oil is expected in 2022.

Aker Energy operates the acreage with 50%. Its partners include Lukoil (38%), Fueltrade (2%) and Ghana National Petroleum Corporation (10%).

 


Sasol Swoops on Southern Africa

Sasol is on course of adding 12 new retail outlets for petroleum products in 2019, mainly in the neighbouring countries north of South Africa

In 2018, it added 15 outlets, but all of that was in South Africa, the company’s headquarters and heartland.

The retail outlet expansion is achieved by buying over the competition.

We are “progressing value-accretive acquisitions of super-dealers”, the company says, adding that it continues to evaluate major acquisition opportunities, guided by capital allocation framework”.

Sasol was originally focused on building and operating facilities to produce a range of products, including liquid fuels, chemicals and low-carbon electricity.

It entered the South African fuel retail market in 2004 to sell through its own retail network, based on its proprietary technology.

Africa’s largest homegrown petrochemicals company boasts that the current retail outlet expansion is driven by its strong technical and operational heritage”

“We intend to maintain a competitive edge in marketing our energy products”, it says.  “Our energy business is highly cash generative and thrives on an integrated competitive cost advantage”.

 

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Logistics Companies Scramble For Dangote’s Import Contracts

Over 10 logistics companies are scrambling to get the nod from Dangote Industries to ferry tons of equipment for use in the construction of a massive Refinery and allied projects in Lagos, Nigeria.

Dangote Industries has ordered some 500,000 Tonnes of Equipment from China and other countries and wants them on site between now and February 2020. The company is running late in the construction of a 650,000Barrel per Stream Day(BSPD) crude oil refinery on the Lekki Port in the east of Lagos.

Around 20 large Vessels are required to transport the equipment, which are needed in the final stages of the construction of a refinery, a fertiliser plant, a petrochemicals plant and other projects, spread over 5,000 acres of reclaimed land, or 2,135 hectares.

The company recently signed a Gas Supply Agreement to receive 70Million standard cubic feet per day of gas from Chevron’s Escravos Gas Project; the molecules will be the foundational feedstock for the fertliser plant, the first of the several projects to go on stream.

Fuller story in the February 2019 edition of the Africa Oil+Gas Report

 


LNG Barge Under Construction in Durban, South Africa

The first steel plate was cut for the construction of an LNG barge vessel at the Southern African Shipyards (SAS) in Durban’s Bayhead several weeks ago.

The 143m long and 34m wide vessel will be the only one of its kind in the world, according to Aldworth  Mbalati, CEO of DNG Energy, the owner of the vessel. It will be christened “DNG Genesis”.

The barge is expected to be completed by the end of 2019. It will have a crew of 40, when it is in operation.

DNG Energy is planning to invest more than $5Billion in creating a Pan African LNG supply network over the next five years, Mr. Mbalati, claims. It is an ambitious plan which will mean work for thousands of people. It would be an 8 000 ton energy barge, the largest vessel by weight ever to be built in Africa, the CEO explains.

The company has a floating storage terminal and the idea is that LNG from exporting countries will be stored at the terminal and then offloaded onto the Durban-made barge which “as the work horse” will operate in Southern Africa waters, transporting energy to customers in South African and the member states of Southern Africa Development Community SADC.

The exact location of the floating storage terminal-which is currently in operations internationally-will only be unveiled at the launch in March 2019, Mbalati said.

One ranking VIP at the steel cutting ceremony was British veteran anti-apartheid campaigner Lord Peter Hain, who is one of DNG Energy’s company’s non-executive directors. Lord Hain is a former British Minister of State for Energy and Competitiveness in Europe.

Mbalati argues that LNG will dramatically improve the economy, reasoning that if SA Inc. stops the large spend on importing refined fuel, the (local currency rand will grow stronger and the country’s GDP will improve.

 

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