All posts tagged featured

Nigerian Independents produce 158KBPD Net in December 2013

Twenty five privately owned Nigerian companies produced about 158,000 Barrels of Oil Per Day (BOPD) in December 2013.

That is the metred production, which does not take into cognizance any deferment as a result of oil theft and vandalism. This means that the volumes represent the closest to what each company delivered on every “productive” day in the course of the month under consideration.

The largest six producers were Seplat (26,550BOPD), SAPETRO (21,000BOPD), Shoreline Natural Resources (20,250BOPD), Famfa Oil (15,000BOPD), Amni (11,700BOPD) and Conoil (11,300BOPD).

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Falodun Targets Zero Non Productive Time On Nigerian Rig

IADC’s New Chairman Sets Ambitious Goals

By Foluso Ogunsan, with Paul Kelechi

“The drilling rig is so crucial to the success of exploration, appraisal or drilling development well”, says Sola Falodun, chairman of the Nigerian chapter of International Association Of Drilling Contractors (IADC). It’s a 16 month old chapter, set up to look after the interest of the country’s drilling industry. “If you have Non-Productive Time due to equipment obsolescence or employee incompetence, the rig shuts down. If the rig shuts down, it leads to delayed production on the part of the E&P company. Delayed oil production means that government will not achieve the set revenue budgeted during that particular time.

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Shell &Co Look Forward To Earning $2.5Billion+ From Nigerian Lease Sale


Shell has put a value of between $1.5Billion and $2.9Billion on the equity of the three European partners in the Oil Mining Lease (OML) 29, the most prized asset in the ongoing sale of four onshore acreages in Eastern Nigeria. The three others on the auction block: OMLs 18, 25 and 29, are each valued between $500MM and $1Billion. Shell, ENI and TOTAL, all European majors, are selling their 45% ownership of the acreages.

About 20 companies and consortia remain in the running to buy out the majors in these four producing acreages.

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Egypt Impairs BG’s Bottom-line … 2014 Looks Hazy

…But the North African country remains the largest E&P contributor to the company’s portfolio by volume..
By Toyin Akinosho

BG’s earnings results for Fourth Quarter 2013 quarter included a $1, 286 million ($1.286Billion) post-tax impairment of certain assets in Egypt.

For its 2014 Outlook,  the company expects unit operating expenditure to be in the range of $15.50 -16.25 per BOE at reference conditions, up from $12.17 per BOE for 2013, reflecting, in part, “the declining production across the base assets, especially Egypt”, BG says in its fourth quarter 2013 statement.

The company’s LNG Shipping & Marketing total operating profit for 2014 is expected to be in the range of $2.1 – 2.4 billion at reference conditions, “reflecting lower supply volumes from Egypt” and reference conditions lower than realised prices in 2013. “There is considerable uncertainty over the number of LNG cargoes that Egyptian LNG will produce in 2014”.

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Gaz du Cameroun Connects Glass Manufacturer To Gas

Gaz du Cameroun (GDC) has successfully completed a new thermal gas connection with glass manufacturer SOCAVER.
The SOCAVER plant is now substantially online and is expected to consume an average of 400,000 scf/d running 24 hours per day, with peak demand estimated at 764,000 scf/d.

GDC is the Cameroon operating subsidiary of Victoria Oil and Gas, the UK based minnow, which now runs a gas processing plant on a small field in Cameroon from which it supplies natural gas to industrial customers.

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Nigeria’s Bid Round Delay Opens To Speculative Lists

Marginal Fields
  • Several lists of “likely assets” make the rounds, including the one published herewith
  • Most of these lists include several fields that have been recently divested

By Moses Akin Aremu

The delay around the Nigerian marginal bid round, announced with media fanfare in late November 2013, has led to speculation about the actual list of fields on offer. The country’s department of petroleum resources DPR, which is superintending the round, has not released any information regarding the process since the last of the three road shows publicising the sale took place in Abuja on December 12, 2013.

Newspaper reports quote George Osahon, director of the DPR, as saying that the list would soon be out.

As the list of fields meant for auction has not been published as promised two months after the initial announcement, several lists have been making the rounds, none of which is official.

The list published herewith, complete with a location map, is one of such lists. Like a dozen other odd lists in circulation, it includes fields that are no longer held by oil majors (even though such fields are listed under the major company that used to operate them). It contains 48 fields in total, of which nine (highlighted in yellow on the spreadsheet), have been part of the divestment proceedings by Multinational companies between 2011 and 2013. In other words, these fields have been sold by their owners to other companies in transactions that have largely been ratified by the Nigerian government.

Ugbo and Abiala are fields located in the Oil Mining Lease (OML) 40, a Shell operated asset until mid- 2012, which is now operated by the Nigerian Petroleum Development Company (NPDC) on behalf of the NPDC-Elcrest Joint Venture. Okpolo is located in OML 30, from which Shell, TOTAL and ENI divested their 45% equity in late 2012. Irigbo, Atamba and Ogbanabou are located in OML 42, which has ceased to be a Shell operated acreage and now licenced to the NPDC-Neconde Joint Venture.

Iheoma and Alaoma fields are located in OML 53, from which Chevron is in the final stages of divesting.  Okiori and Kugbo West are in OML 29, one of the four eastern onshore assets from which Shell, ENI and TOTAL are divesting.

The question is: Will the new “owners” allow them to be “resold?”

The Nigerian Marginal Field round is predicated on three main premises:

The fields are awarded only to Nigerian companies, so it’s a tool for boosting the Nigerian content, the government’s much vaunted policy of domiciliation.

It’s the only bid round in the world predicated on the strength of technical argument and not on the price indicated by some highest bidder.

It derives legitimacy from the idea that the discoveries may never get to production because the majors, on whose operated acreages the fields lie, consider their reserves uneconomic.

Two of these three premises have already been fulfilled by the new owners of those nine assets; they are small homegrown companies for whom those assets are more crucial than they were to the majors who operated them in the past.

It should have been easy to say that this point, plus the fact that most of the lists are much longer than the 31 that the government claimed while announcing the bid round last November, render these documents bogus, but some of those we interviewed would have none of that. Some argue that if a licence was meant to expire in two years’ time, and a field on the licence had been discovered as far back as 40 years ago and is still not developed, it is still a marginal field, regardless of who is holding it.

While the speculation goes on, companies are going ahead, putting up templates for the Prequalification Exercise. Whenever the list is announced the following programme will be activated:

  • Submission of application by interested companies
  • Prequalification of interested companies
  • Announcement of Pre-qualified companies
  • Submission of detailed Technical and Commercial Bids by Prequalified companies
  • Evaluation of Technical and Commercial Bids
  • Announcement of Winning Bids

Apache Reached Close To 20,000 Feet Deep In Egypt’s Western Desert

American Independent, Apache, reports that its Khalda Petroleum Joint Venture drilled the NRQ-8X well to 19,322 feet in in Egypt’s Western Desert. The well is expected to be tested during the first quarter of 2014.

The company claimed that the probe was the deepest ever made in the area, which includes a clutch of concessions in the west of the country, on the border with Libya. The NRQ-8X is located in the North Ras Qattara Concession of the Alamein Basin.

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Angola LNG sells its first LPG cargo


The facility has a second jetty for loading cooking gas for the domestic market
By Sully Manope, Southern African correspondent

Angola LNG has announced the sale of its first LPG cargo from its plant in the port town of Soyo, at the mouth of the Congo River in the country’s north west. The 5.2 Metric Tonnes Per Annum(MMTPA) facility, built to create value from Angola’s offshore gas resources, was commissioned in mid-2013.
The LPG and condensate jetty was commissioned immediately prior to commencement of loading operations. Commissioning included the testing of safety devices, mooring arrangements and loading arms.

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South Africa Remains Wary Of Investment In Gas To Power

Dikobe Ben Martin, MP

Mozambican gas is viewed as costly LNG option, which can’t even compete with nuclear
By Toyin Akinosho

Natural gas remains at the bottom of the pile among fuels in consideration for firing electricity plants in South Africa in the next twenty years.

The latest draft of the Department of Energy’s Integrated Resource Plan (December 2013) takes cognizance of the vast recent increase in natural gas reserves in fields offshore Tanzania and Mozambique-next door – but considers that their distance “would lead to higher costs, closer to the LNG price”. The 114 page document remarks: “There may even be an argument that suggests South Africa would be better served to allow this gas to be liquefied and then import it as LNG rather than increase energy dependency on one source of gas”. The assumed price of LNG in the document is $10/MMBTU.

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Ghana Eases Into Zero Subsidy Regime


There have been four price adjustments since the January 2012 ‘announcement’
By John Ankromah, in Accra

There’s no hint of any planned protest, or civil disturbance in Accra, capital of Ghana, three weeks after the authorities implemented a fifth gasoline price increase in 24 months.

A litre of gasoline (petrol), the all-important fuel of transportation, now costs 2.953 Ghanaian cedis (GHC), or $1.256 per litre (maximum) while the maximum indicative prices for a litre of diesel is $0.961 (or 2.26GHC), a fall from $1.068 in February 2013.

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