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Dangote’s Gas Project Is the Riskiest of the Industrial Quartet

By Sully Manope

Dangote Industries’ proposed 1,100kmdeepsea pipeline from the Niger Delta to Lagos, Nigeria’s top commercial hub, is the most uncertain, from a business perspective, of the four projects under development at the company’s Lekki Port complex.

Whereas there’s clear demand for petroleum products and fertilisers from the refinery and fertiliser complexes under construction and the Petrochemical Plant will have customers, the domestic gas market, which the pipeline is expected to serve, is severely challenged.

The East-West Offshore Gas Gathering System (EWOGGS), as it is christened,consists of two 38 inch, 550km pipelines, each with a capacity of 1.5 Bcf/day. The two pipelines will be running side by side.

“To talk about a three billion standard cubic feet of gas supply into Nigeria today requires a lot more work than wishful thinking,” says Sam Ojehonmon, an African hydrocarbon market analyst based in Johannesburg.

To start with, some of the projects that are widely expected to be supplied by the EWOGGS are, in reality, going to be supplied by other parties.

Take the560MW Qua Iboe Independent Power Plant for example. It is going to be built by Black Rhino, with which Dangote is a partner. It is located in the vicinity of the EWOGGS’ take off platform and had been widely assumed to be the EWOGGS’ most likely first customer. But that’s a wrong assumption. The gas for QIIPP will be supplied by ExxonMobil, whose Joint Venture with state company NNPC will build a 400MMscf/d processing plant for gas from OML 70, primarily for that project and ultimately for the Nigerian domestic gas market.This fact alone places a direct competition in EWOGGS’ face.

Indeed, the Dangote Industries’ published list of acreages from which the EWOGGS is expected to extract natural gas, begins to look doubtful, with a little bit of scrutiny. The list includes ExxonMobil operated OMLs70 and 138, Amni operated OML 52, Shell operated OML 77, Sunlink held OML 144 and First E&P held OMLs 71 and 72, in which West African E&P, a Dangote subsidiary, has significant stake. Of this list, the gas fields that are ready to come on stream are those in ExxonMobil’s OMLs 70 and 138 and Shell’s OML 77. A Dangote document actually lists OML 138 as scheduled to provide 10% of the 3Bcf/d EWOGGS capacity, but ExxonMobil does not have any agreement yet with Dangote Industries Limited, nor does Shell.

Sunlink has been desperate to monetise its gas in OML 144, As such it is keen to get in board; First E&P will deliver on OMLs 71 and 72, but It’s not clear what arrangement Amni has with Dangote.

Dangote Industries’ expectation is that Africa’s most populous country should be able to utilize 10Billion cubic feet of gas per day, in its power plants and factories, by 2020.

In the last 12 years, the state has built over 10 thermal power plants with nameplate capacity in excess of 5,000MW, expected to be fueled by natural gas. But the volume available has been held down by “in-sufficient Investment focus to grow the required supply capacity”, according to a concept note by the Dangote group, which it shared with Nigeria’s Vice President Yemi Osibajo, in 2016.

Current gas consumption by factories, power plants and Gas based industries in Nigeria is slightly less than 2Billion cubic feet per day (Bcf/d). Growth in these sectors is reportedly constrained by inadequacy of supply of natural gas.

But the big challenge is the absorptive capacity of the market itself.

The bulk of the gas produced for the Nigerian market is for electricity, an industry considered rather unstable at the moment. “The power sector is beset by “illiquidity, price and securitization challenges”, says Dada Thomas, President of the Nigerian Gas Association. “Lurking behind these monsters are the secondary diseases of inadequate and dilapidated power transmission and gas distribution infrastructure, low economic returns for gas projects”. Other Gas and power analysts have lamented the obstructions imposed by offtake assurances vis-à-vis pipeline tariffs, funding mix and failure of payment guarantee structures.

And yet there are projects under construction and in feasibility studies. Shell and Seplat are collaborating on the Assa North Ohaji South (ANOH) project, which will deliver 600MMscf/d at peak, to the Nigerian market.

This story benefited from extensive excerpts in the piece Huge Ambition, Hefty Risk, at $3Billion, published in the February/March 2017 issue of Africa Oil+Gas Report.


Kosmos Grabs what SAPETRO Threw Away

By Toyin Akinosho

“The former Triton executives have returned home”

Kosmos Energy has added, to its basket of acreages in Equatorial Guinea, a block that SAPETRO walked away from.

It is the highly prospective Block W, located north of the Ceiba and Okume fields.

SAPETRO terminated the discussions with Pan Continental, operator of Block W, before June 2017. Sources in Malabo, the Equatorial Guinean capital, said that the Nigerian independent wasn’t comfortable with the Pan Continental’s capacity as a partner. The Equatorial Guinea government apparently shared the same sentiments. By September, it had effectively booted out the company from the acreage.

Kosmos was awarded Block W in the same month, along with its purchase of85% of the stake in Ceiba and Okume fields from Hess Corporation and its entry into Block EG-21 and Block S, making it a large acreage holder in the Rio Muni basin.

Equatorial Guinea authorities are excited. “Do you know why Kosmos is acquiring all these assets in Equatorial Guinea”?, Gabriel Obiang Lima, the country’s Petroleum minister, asked delegates at the Africa Oil Week Conference in Cape Town in late October 2017. “The guys who founded Kosmos are the former Triton Energy people who discovered the Ceiba field in the mid 90s”, he gushed. “They have come back home”.

The Equatorial Guinea Ministry of Mines and Hydrocarbons considers Kosmos’ takeover of ownership and operatorship of Ceiba and Okume, two legacy oil producing areas, as “landmark sale transfers”.

These entries make Kosmos the country’s biggest petroleum explorer by acreage and the sole producer in Equatorial Guinea’s Rio Muni southern maritime area.


Egypt’s Economic ProspectsBest Among Africa’s Top Three

Egypt’s growth rates suggests its economic prospects are better than Nigeria and South Africa, its peers in Africa’s three largest economies.

The country’s growth picked up speed during fiscal year 2016/17, with GDP rising by 4.2% compared to the projected 3.5%.

This contrasts with Nigeria just emerging from a recession and South Africa’s less than 1% growth.

The IMF is encouraged that Egypt’s current account deficit narrowed in dollar terms, “supported by the increase in non-oil exports and tourism receipts while non-oil imports declined”.

Portfolio investments into North Africa’s most populated country reached $16BillionIN 2017 and foreign direct investment rose by 13%, reflecting increased investor confidence.

Headline inflation appears to have peaked in July and has been declining since then, supported by the Central Bank of Egypt’s (CBE) prudent monetary policy stance.

“The budget performance was broadly in line with program projections with a primary deficit of 1.8% of GDP.
There’s a chink in the armour though.

“The overall deficit exceeded projections by 0.4% of GDP and reached 10.9% of GDP, mainly on account of higher than expected interest payments”.

Even then, the IMF notes:Reflecting the overall strong policy framework and credibility of the authorities’ program, foreign exchange reserves increased significantly to record levels.

Egypt’s African rivals, meanwhile, get some tongue lashing from the Fund.
An IMF team, which departed South Africa on November 8, 2017 “sees little improvement in growth outlook in 2018. The country’s authorities project 0.7%GDP growth in 2017;

“Despite South Africa’s institutional strength and favorable global conditions, increasing domestic political uncertainty and stalled reforms point to a challenging economic outlook. Some sectors, including agriculture and mining, are certainly generating growth, but other key activities have stagnated or declined, as investment decisions are being postponed or abandoned.
The team sees growth as recovering only gradually in the medium term, “unless the pace of implementation of structural reforms accelerates quickly enough to prompt a clear recovery in business and consumer confidence”.

The IMF is equally disappointed with Nigeria. “The economic backdrop remains challenging, despite some signs of relief in the first half of 2017”, said a team which concluded a visit to that country in August 2017. “Economic activity contracted in the first quarter of the year by 0.6%, mainly as maintenance stoppages reduced oil production. However, following four quarters of negative growth, the non-oil economy grew by 0.6% (year-on-year), on the back of a rebound in manufacturing and continued strong performance in agriculture. Various indicators suggest an uptick in activity in the second quarter of the year. Helped by favourable base effects, headline inflation decreased to 16.1% in June 2017, but remains high despite tight liquidity conditions.

“Preliminary data for the first half of the year indicate significant revenue shortfalls, with the interest-payments to revenue ratio remaining high (40% at end-June) and projected to increase further under current policies. High domestic bond yields and tight liquidity continue to crowd out private sector credit. Given Nigeria’s low growth environment and the banking system’s exposure to the oil and gas sector, non-performing loans increased from 6% in 2015 to 15% in March 2017 (8% after excluding the four undercapitalized banks)”.


Can Small Savannah Petroleum Stomach The Swallow of Seven Energy?

By Jackson Otiti

Watching the presentation of the entire portfolio of Savannah Petroleum at the Africa Oil Week in Cape Town last October, it was hard to believe that this small, frail company was the one trying to acquire Seven Energy’s assets in Nigeria.
“We saw an opportunity to acquire producing oil and gas assets in Nigeria”, Steve Jenkins, the company’s non-executive chairman, told the audience, “and we are having a conversation”.

Savannah’s entire assets consist of two undeveloped permits in Niger Republic, where there is no evacuation infrastructure for exporting crude. Niger Republic’s entire production (20,000BOPD) is refined in the country’s only Refinery. Savannah’s largest shareholders are Fidelity International Limited, Andrew Knott, Standard Life Investments Limited and Capital Group Companies, Inc, not the most bespoke of investors, combining around 34% equity.

Savannah has talked up its MoU with the New Nigeria Development Company NNDC, a company owned by 19 Northern states of Nigeria, to collaborate on the Nigerian section of the Central African rift system (CARS). Keen observers of the Nigerian oil industry know that the NNDC’s so called partnership with the Nigerian state hydrocarbon company NNPC does not carry significant value.

On the contrary, Seven Energy owns over 200 kilometres of natural gas pipeline; the company constructed and owns the dominant equity in a 200MMscf/d gas processing plant, from which gas is supplied to two power plants and a cement company. It also has equity in two marginal fields: 40% in the Uquo gas field (90MMscf/d, 50BCPD), operated by Frontier Oil and 31.875% in Stubb Creek oil and gas field, both onshore South eastern Niger Delta basin. Seven Energy is a Strategic Alliance partner, entitled to equity crude, in three Seplat operated acreages in mid-western Niger Delta which produce, at peak, in excess of 70,000BOPD.

The company’s debt burden, exacerbated by the difficult Nigerian domestic gas market, has however been so overwhelming that Seven Energy has struggled to breathe.

So that, in spite of the gap between it and this very junior, AIM listed suitor, there is already an agreement.
Seven Energy reports that Savannah will acquire substantially all of its valuable assets, including, at its option, the Strategic Alliance Agreement, which are to be transferred to Savannah, its subsidiaries, or an entity to be nominated by Savannah, subject to completion of a financial restructuring of the Group in accordance with the Term Sheets (see Seven Energy website) which says, among others, that new capital will be provided by Savannah with funding available for, amongst other things: (1)operational working capital and the liquidity needs of the target Group; (2)cash consideration to be paid to selected creditors, including the SSN Noteholders and (3)costs associated with the Agreed Transaction.

The SSN Noteholders will receive their pro rata share of (i)$52.5Million in newly-issued equity in Savannah and (ii) an US$87.5Million cash payment, in consideration for the discharge of all $318.2MillionSSNs and release of claims against the entities being acquired by Savannah (together the “SSN Consideration”) (with further principles set out in the relevant Term Sheet); In addition to the SSN Consideration, the SSN Noteholders shall also be offered the right to subscribe, on a pro rata basis to their holdings of SSNs, for $25Million worth of newly-issued equity in Savannah for a total cash consideration of $20Million (the“Equity Issuance”).

The Equity Issuance shall be fully underwritten by VR Capital and each SSN Noteholder may specify an amount of shares up to its pro rata share it is willing to subscribe for as part of the Equity Issuance. SSN Note holders who participate in the Equity Issuance shall also be entitled to a share, on a pro rata basis to their participation in the Equity Issuance, in a $20Million New Accugas Holdco Facility (as defined in the relevant Term Sheet), for which (other than in certain circumstances) no cash consideration shall be payable by the SSN Noteholders (as described more particularly in the relevant Term Sheet and the Steps Plan).

Savannah may choose, in certain circumstances, to exchange entitlements in respect of the Savannah equity and the Equity Issuance into additional cash consideration (i.e. gross subscription price minus transaction costs resulting in a net cash value of 96c in the dollar) (as described more particularly in the relevant Term Sheet); The 10.50% Notes will be exchanged such that the 10.50% Noteholder will receive $15Million of new notes issued by Accugas Holdco (as defined in the Lock-Up Agreement) and $85Million of newly issued notes issued by Seven Uquo Gas Limited, in each case to be serviced and repaid in Nigerian Naira (converted from USD at the prevailing NAFEX rate) with extended maturities and lower debt service obligations than the 10.50% Notes (as described more particularly in the relevant Term Sheet and the Steps Plan); The Term Loan 1 Facility will be exchanged into a new $20Million facility issued by Accugas HoldCo (as defined in the Lock-Up Agreement); The Term Loan 2 Facility holder will receive (i) $4.4Million in newly-issued equity in Savannah and (ii) an $7.3Million cash payment, in consideration for the discharge of the Term Loan 2 Facility and release of claims against the entities acquired by Savannah (assuming the SAA is not reinstated (fuller details on Seven Energy website, with further principles set out in the relevant Term Sheet).


In Ghana, Rigworld Fills the Training Gap

The Rigworld Training Centre in Takoradi, the main city in Ghana’s oil rich western region, is a significant contribution to the country’s oil and gas industry, in the words of its promoters.

Inaugurated on November 15, 2017, the centre, valued at $8.5Million, “is equipped with advanced simulators, helipad, water survival training pool, medical center, prime onsite accommodation, restaurant and fitness centre”, says Elizabeth Hayes, a spokesperson for the facility.

“Top international training experts with operational excellence have been selected by the centre to lead the training programmes that will be offered”, Ms. Hayes recommends.

She lists some of the programmes as follows:

• Survival Training (Offshore)
• Rope Access Training
• Well Control/Intervention Training
• Drilling Well Control Programme
• Lifting Competence Training
• Banksman and Slinging
• Rigging and Lifting
• Crane Operator Training
• NDT Training
• HSE Training
• IOSH Managing Safely
• IOSH Working Safely
• *Nebosh IGC
• *Nebosh Oil and Gas Technical Certificate
• Manual Handling
• Work At Height
• Rescue At Height
• Confined Space Entry and Rescue
• Safety Consultancy
• BFPA Hose Assembly Training


ExxonMobil Is Now Betting on Nigeria’s Domestic Gas Market

By Toyin Akinosho

ExxonMobil will handle the upstream and midstream parts of the Qua Iboe Independent Power Project.
The company’s joint venture with NNPC will deliver the required 100MMscf/d to fire the plant, from the Oso field, in the country’s prolific south east offshore.

The NNPC/ExxonMobil JV will construct a 400MMscf/ gas processing plant and a pipeline from Oso to Qua Iboe Terminal.
These facts fly in the face of insinuations that, with a partnership between Black Rhino and Dangote Industries signing a 540 MW Power Purchase Agreement with the Nigerian Bulk Electricity Trading Plc (NBET), ExxonMobil had finally let go of the project, conceived close to two decades ago.

As things stand, in fact, the Qua Iboe IPP should, indeed, make ExxonMobil play a bigger role in domestic gas market than it currently does. The company has been the only multinational without a processing plant-meant for producing lean gas- to its name in Nigeria.

Instead it constructs projects around stripping Natural gas Liquids for sale and injecting what would otherwise have been flared, to increase crude output.

“With a 400MMscf/d gas plant and a pipeline from offshore gas field to shore, they will be playing a bigger role in the domestic gas space”, sources at the NNPC, the senior JV partner, say.

“Whoever wants to offtake gas from the remaining 300MMscf/d capacity not dedicated to the QIIPP has to construct its own evacuation infrastructure to the QIT”.


‘Europe Prefers Russian Gas To American Imports’

By Goma Jeyipo, Downstream Gas Correspondent

Europeans will rather buy gas from nearby …state than the increasing LNG imports from the United States.
Part of the reason is a business decision, unrelated to either the political challenges that mainland Europe faces with Russia or the American President Donald Trump’s increasing hostility to European leaders. Neither country, in any case, is pretending to be the best of friends with Europe at the moment.

“At the end it is the prices that count”, says Claudio Descalzi, Chief Executive Officer of ENI, the Italian giant. “The U.S. will encounter great difficulty in Europe for the gap, to their disadvantage, of prices. It would not be difficult for Gazprom, which supplies Europe with about 170-180 billion cubic meters, to cut them out, all they would need to do is lower the price by a few cents”.

Further north, in the German capital, Berlin, a clear majority of German citizens reject the USA’s planned expansion of its economic sanctions against Russia, according to research conducted by The Forsa Institute for Social Research and Statistical Analysis forsa for short, one of the leading market research and opinion polling companies in Germany. Whereas half the Germans surveyed support a further diversification of the natural gas provision, only 6% want more imports of American liquefied natural gas. Forsa interviewed more than 1000 German citizens on behalf of Wintershall, the German independent E&P company.

Wintershall says of the survey, published on its website: “The vast majority of Germans (83%) reject the planned increase in economic sanctions, which would also restrict the activities of German and European companies.

“For more than 80 percent of the German citizens, the top priorities for the natural gas provision are its affordability and security of supply. Diversified suppliers and transport routes (50%) are also considered relevant. However, only 6% want to import less natural gas from Russia and instead import more American liquefied gas. Just under a quarter (24%) would like countries that have previously benefited from gas transport revenues to also benefit in future from transit revenues”.

Mr. Descalzi says: “The U.S. are experiencing a phase of excess, the market has grown a lot thanks to shale gas. U.S. President Donald Trump offered to sell LNG in Poland but imposing a political accord is difficult”.
For more information, see www.eni.com and www.wintershall.com


WAIPEC Aims to Set Industry Conference Standard

By Paul Kelechi

The second edition of the West Africa International Petroleum Exhibition and Conference, WAIPEC, is poised to set strategic standards on content, programs, quality of the delegates and communiques from conferences in the African oil and gas industry. Strategically positioned to be the first conference and exhibition for the year 2018, Bank-Anthony Okorafor, chairman of the Petroleum Technology Engineers Association of Nigeria told the Africa Oil+Gas Report in an exclusive interview that “WAIPEC 2018 will be a pace setter and pathfinder for the oil and gas sector for the rest of the year”. PETAN is the conference host while Global Events Partners are the organizers.

Over 2,000 delegates attended the maiden edition of the conference in 2017 and so far, more than 50% of the conference booths have already been taken. GEP is working assiduously to ensure that at least two ministers from other west African countries are in attendance at the 2018 edition of the conference. The goal is to diversify the industry people-experience-mix to be all encompassing. Bringing together experts from the upstream, midstream and downstream sectors will stimulate discussions when everyone is under one roof and is one of the best ways of sharing knowledge and best practices in the industry. “People share ideas on the best ways to do things technically, commercially and even discourse the risks involved” Bank-Anthony tell us as the interview went on.

The event organizers say WAIPEC is designed to be a solutions conference; that is the mindset behind what makes it different from other conferences before it. With board members of Gazprom, Google EMA and others indicting interest to be part of the 2018 event as speakers, WAIPEC is set to be a game changer. “One of them was the chairman of the Fourth Industrial Revolution at the World Economic Forum and he is asking to be the keynote speaker,” Bank-Anthony informs.

The technical sessions are going to have such topics as E&P Geoscience, Oil & Gas Unconventional Field Development, Drilling and Completion, Gas Processing Technology and Operations, Offshore Technology and Operations, Operational Excellence, Maintenance and HSE, Downstream Refining and Petrochemicals, Fertilizer Technology and Operations, Power Generation Technology and Operations discussed at the conference. Upstream Regulatory and Physical Frameworks, Upcoming Onshore and Offshore Licensing Rounds in West Africa are also some key topics that will be talked about during the strategic sessions.

Two key players in the Nigerian oil and gas industry that delegates will like to see at the event are the Minister for State Petroleum, Dr. Ibe Kachukwu and the Group Managing Director of the NNPC, Mr. Maikanti Baru. The technical elite of the E&P sector of the Nigerian oil industry see Ibe Kachukwu as a visionary in charge of policies; he also has fresh industry ideas while Baru is seen as a “great administrator who has so much love for the industry”.

A combination of Kachukwu and Baru will result in excellence as both will bring deep operational excellence and knowledge of the NNPC to WAIPEC. When asked if they will be at the conference, Bank-Anthony simply said: “I intend to bring both of them because I think both of them have a lot of value that they can bring to the table”.


DHarmatan Fishes In The LPG Waters

By Paul Kelechi

Dharmattan Nigeria has proven itself in the G&G (Geology and Geophysics) services sector of the upstream segment of the oil and gas value chain.

It has worked for Chevron, Yinka Folawiyo Petroleum, Addax Petroleum, Belema Oil and ENI.

Now the company is fishing downstream, reaching out for opportunities in the gas business.

Between January 2016 and September 2017, Dharmattan Nigeria sold 2,500 tonnes of Liquefied Petroleum Gas in the Nigerian market 2,500 tonnes are equivalent to about 4 million liters of the product. Per quarter for 2017, the company has delivered about 600,000 liters.

This is clearly less than 1% of the 250,000Tonnes per annum that Nigeria consumes, but DHarmattan has a huge, downstream ambition.

The 13 year old company carries out home delivery of LPG in cylinders. “There is home delivery through pipes but this is highly localized”, says Bashir Koledoye, D’Harmattan’s founder and Chief Executive who earned his stripes as geologist with Chevron Nigeria. “If you have a high rise, then we can have gas tanks and piping to the flats and homes” he explains.

DHarmattan has the capacity to pipe LPG to homes on a bigger scale than it does now. “If we have a cooperative government, be it local or state that is interested in doing this on a bigger scale”. To pipe the LPG in a housing estate, a company needs a centralized storage tank, ranging in size from as low as 2 tonnes to as high as 10 tonnes.

D’Harmattan has 10tonne storage tanks in estates in four states in Nigeria Lagos, Oyo, Delta, and Imo. The company also manages LPG sites for clients who run petroleum product Its facilities are deployed in about 30 such stations in five states of the country.

We asked Koledoye if he had ever thought of extensive LPG pipelines to thousands of homes in cities.

“Those facilities are very expensive to put together and the configuration of the domestic offtakers is such that it will be difficult to get enough volume through those pipelines to actually pay for the project. But if you have estates that are well structured, then it is easier. From Ibadan to Lagos, or even if you just go to Yaba, how many houses would you supply that way to pay for the project?”

Even so, he avers, “there are two key incentives for LPG; one is that the product is cheaper than kerosene and two, LPG is healthier than both kerosene and firewood. Those are the incentives but of course, there are barriers or problems with that one of which is access and that is why you have to carry the cylinders to the refill stations”.
When it comes to bulk LPG supply, DHarmattan’s major customers are schools, industries and hotels.

The company gets its supplies from NLNG which comes from Bonny Island “but we are working on a number of gas processing projects. I will also like to add that there are a lot of opportunities in the industry and we need the government to allow local companies that have the proven financial competence, technical and managerial capacity to take control of small assets because that will definitely help our economy. Because what happens is that for every local company, you have a large group of indigenous employees, contractors and other groups who work with them.

Unlike foreign companies, who rightly so, would like to repatriate as much of their profits to their countries as possible. There are a lot of projects that are not too tasking that the government can allow local companies to take control of.


Africa unites to attract investment at Africa Oil Week in Cape Town

The key themes discussed were the development of the continents’ oil and gas resources, with a focus on exploration, regulatory frameworks and governance

CAPE TOWN, South Africa, November 1, 2017/–The African oil industry met this week to discuss the potential, but also the challenges, that the industry faces as the continent moves towards the commercialisation of its huge gas and oil reserves. Six of Africa’s oil ministers from Cote d’Ivoire, Namibia, Nigeria, Ghana, Mali, South Africa attended, including US Secretary for Energy Rick Perry. The event drew speakers from the highest echelons of government, operators, service providers, legal, advisory and research firms. The key themes discussed were the development of the continents’ oil and gas resources, with a focus on exploration, regulatory frameworks and governance.

Identifying the way forward for the industry was a strong theme, as Africa competes for investment capital. The African continent accounts for 16% of active offshore fields and 70% of offshore fields, these are either under development or represent potential developments. It was agreed that there are big opportunities to use Africa’s substantial gas resources to meet the constant and ever-growing need for power. This in turn will trigger economic growth within the continent to meet the needs of a projected population of 2 billion in 2035. But in order for this to happen, there needs to be greater cooperation to move energy around the continent. In addition, African countries need to address the regulatory and fiscal conditions in order to attract investment and reignite the development of identified deep-water assets and to exploit the substantial latent exploration potential of the continent.

Reflecting on the Ministerial presentations and those 160 experts that spoke at the conference, Paul Wilson Africa Oil Week’s (www.Africa-OilWeek.com), Portfolio Director, ITE Group said, “The conference has confirmed that the African oil and gas industry is set to grow as it realises its true energy potential”. As US Energy Secretary said, “We see progress, we see signs of political and economic freedom that bring stability and prosperity.” Phil Loader, Executive Vice President, Global Exploration, Woodside Petroleum, Australia, said, “There is a significant amount of resource potential”, and BP’s Jasper Peijs, Vice President of Exploration, Africa confirmed that, “We are growing our footprint in Africa”.

But perhaps Tullow Oil’s CEO Paul McDade, summed the conference up by saying,” Africa will need to compete for capital, competition is going to be tough, where the lowest cost producers will win. In that race Africa has a number of critical advantages, it is perfectly placed between the main global refining centres in the US, Europe, Asia where demand does continue to growth. The quality of the oil in East and West Africa is good generally light, and critically it has low sulphur content… Africa has significant potential to deliver low cost crude both from new developments and existing operating areas…Africa has got a full range of opportunities on-shore, off-shore, deep water, shallow water and can suit all companies large and small … there is immense opportunity”. And finally, he praised Africa Oil Week as, “The eminent conference in Africa, a world class event”.

The dates for Africa Oil Week were confirmed as 5-9 November 2018 where the conference will once again take place in Cape Town, South Africa.

© 2017 Festac News Press Ltd..