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With Well 9, Opuama Shoots To 25,000

Increased water cut at Op 7 Warns of a Looming Challenge

The Opuama field is currently producing at approximately 25,000 BOPD (Barrels of Oil Per Day) (11,250 net to Elcrest).

It is “an all-time record for OML 40”, says Eland Oil and Gas, the technical arm of the IJV Elcrest, which has a joint venture with the Nigerian state owned NODC on the asset.

“This (output) includes both strings of production from Opuama-9 which has just been brought onstream at higher levels than anticipated”, says George Maxwell, CEO Eland.

Eland says it has experienced an increased water-cut from Opuama-7 “and hence we are taking remedial action to rectify this. A re-entry of Opuama-7 is expected to take place during the coming month”.

That problem is the major production challenge onshore Niger Delta, especially in fields that require natural water drive from down dip of the producing reservoirs, to deliver.

Eland thinks that the problem is a no brainer.

“Production is still expected to be in excess of 30,000BOPD (13,500BOPD net to Elcrest) from Opuama upon completion of the Opuama-10 well”.


Tullow Oil Ordered To Pay $254Million To Seadrill

Tullow Oil has responded in the media to a judgment in the English Commercial Court case brought against its wholly owned subsidiary Tullow Ghana Limited by Seadrill Ghana Operations Limited.

“The Hon. Mr Justice Teare has ruled that Tullow was not entitled to terminate its West Leo rig contract with Seadrill on 4 December 2016 by invoking the contract’s force majeure provisions and as such requires Tullow to pay Seadrill a contractual termination fee and other standby fees that accrued in the 60 days prior to termination of the contract.

“These fees amount to approximately $254Million. Tullow expects to be required to pay these fees within the next 14 days (from July 3, 2018) with Tullow being liable for a net amount of approximately $140 million, which compares with the provision of $128Million made in the 2017 Annual Report and Accounts”, Tullow says in a statement.

The company declares it is “disappointed with the decision and maintains the view that it was right to terminate the West Leo contract for force majeure. Tullow will now examine its options, including seeking leave to appeal the judgment”.

“As disclosed in the Group’s recent trading statement, Kosmos is disputing separately, through an arbitration against Tullow with the International Chamber of Commerce, its share of the liability (c. 20%) of any costs related to the use of the West Leo rig beyond 1 October 2016. The arbitration tribunal’s decision is expected shortly”.

 

 


Nembe Creek Trunk Line in the Fourth Week of Shut In

By Joacim Otutu

 

The seven year old Nembe Creek Trunk Line is in its fourth week of outage since early June 2018.

The 48”, 97kilometre, 150,000Barrels Per Day capacity crude oil evacuation pipeline was shut in on June 7, 2018, after significant rupture was detected.

The Nigerian independent AITEO, who is co- owner and operator of the facility, has been working on repairs of the line since then. “But it doesn’t look that the mend would be completely effected before the middle of July 2018”, sources at the company disclose to Africa Oil+Gas Report.

The NTCL, built for around $0.5Billion and commissioned in 2011, was meant as a replacement for the old Nembe Creek Pipeline, which had been severally weakened by “crude theft points” installed by oil thieves.

But the “new” Nembe Creek Trunk Line (NCTL) itself has been a target of oil thieves and vandals since its being commissioned into use. AITEO purchased a 45% stake in NCTL from Shell in 2015.

 

The company says that vandalism of the line by oil thieves has “resulted in the NCTL being shut down for about 145 days and an approximate deferment of 50.386Million barrels of Crude Oil (Net) for the six injectors into the NCTL since AITEO took over the operatorship of the Trunk line in September 2015”. Just a month before the June 7 shut in, “there were a total of 24 illegal bunkering points identified along the NCTL”, of which the company had “successfully repaired 9 of these illegal bunkering points during May 2018 at a huge cost”.

The current outage is apparently caused by tampering that is in a much more industrial scale than the earlier bunkering points.


CWC Group Announces Nigeria’s Leading Oil & Gas Gathering to return to Abuja in July

News Release: Nigeria Oil & Gas Conference & Exhibition, 2 – 5 July 2018, ICC, Abuja, Nigeria

High level government participation in this year’s event is highly anticipated as the industry seeks intervention in the face of global challenges. The price of crude has dropped to record levels forcing many in the industry to cancel or suspend key projects and investments.

Commenting on this edition of NOG, Wemimo Oyelana, Vice President – Production, Africa, CWC Group stated: “Now in its 17th year, NOG has become an extraordinary event in the Nigerian and international energy calendars. It brings together policy makers, operating oil companies, technology innovators and local manufacturers in an open and free discussion and debate that has the potential for developing new strategies to drive the industry forward.”

Other expected key participants include Ministers of the Federal Republic, senators, senior government representatives from the Ministry of Petroleum Resources as well as NNPC and its subsidiaries. Also participating will be key players from international oil companies, independent producers, international and indigenous service providers and industry associations.

Industry leaders already confirmed include:
⦁ Dr Maikanti Baru, Group Managing Director, NNPC
⦁ H.E. Mohammad Sanusi Barkindo, Secretary General, OPEC
⦁ Mordecai Ladan, Director, Department of Petroleum Resources
⦁ Simbi Wabote, Executive Secretary, NCDMB
⦁ Bello Rabiu, Chief Operating Officer – Upstream, NNPC
⦁ Henry Ikem Obih, Chief Operating Officer – Downstream, NNPC
⦁ Anibor Kragha, Chief Operating Officer – Refineries, NNPC
⦁ Dafe S. Sejebor, Group General Manager, National Petroleum Investment Management Services

Dr Maikanti Baru, who recently announced the assurance of the NNPC to provide more support to indigenous companies in Nigeria’s Oil & Gas Industry, has fully pledged his support for the event.

NOG will provide delegates with the ability to learn how to develop innovative and profitable solutions to aid the development of Nigeria, something which Baru has urged private companies to do. The 4 day conference and exhibition will enable private sector companies to find opportunities to partner with the public sector which will aid the realisation of the Country’s economic goals.

Sessions throughout the conference will focus on issues such as the policies needed to enhance the Nigerian oil and gas industry’s competitive edge, the changes in legislation and policy that industry players want to see, as well as how the government is working with the industry to further develop policies.

About the CWC Group:
The CWC Group is a recognised world expert in the LNG, oil and gas, power and investment sectors, with particular expertise in emerging markets. We have a wealth of knowledge offering top-level strategic events around the world. We work closely with many governments, NOCs and international corporations to highlight the key issues and challenges facing the global energy industry and facilitate debate to find solutions. View the full CWC Portfolio of events.

Contact: Tori Wilson, Marketing Manager, vwilson@thecwcgroup.com


After so much Struggle, Petrofac Leaves Tunisia

Petrofac has agreed the sale of its entire 45% interest in the Chergui asset in Tunisia to Perenco.

Although the British company, which combines the roles of oilfield service contractor with E&P operatorship, claims the sale was part of the “strategy to transition back to a capital light business model by divesting non-core assets”, anyone who has followed events in the North African country knows that Petrofac has struggled and fought off above ground challenges on Chergui.

Petrofac had threatened in September 2016 to shut down operations entirely and leave Tunisia, but the government reached a deal with protesters demanding jobs and development.

Tunisian Energy Minister Hela Cheikh Rouhou, at the time, said the production stoppage had been expected because protesters “had not respected the deal signed weeks before”.

Ms. Rouhou told Mosaique FM radio, a private broadcast platform in Tunis: “Unfortunately, trucks have been blocked several times to force Petrofac to close the field.”

Petrofac had looked to sell the asset for the past one year. But in its release, it deliberately understated the problem.
Petrofac said Thursday, June 28m 2018, that the “sale marks another milestone in the Group’s and follows the recent disposal of the JSD6000 offshore pipelaying vessel project”.

All Chergui employees will transfer to Perenco, an aggressive French company, as part of the transaction, which is expected to conclude before the end of 2018. Petrofac is expected to book a small gain on the transaction.

Chief Financial Officer Alastair Cochran said: “This transaction demonstrates we are delivering on our clear strategy of focusing on our core and reducing capital intensity.”

The operations supply around 13% of Tunisia’s domestic gas needs. 55% of the share at Chergui is held by ETAP, the state hydrocarbon company.


ENI & Co Step Up Marketing for Moz LNG Offtake

Italian explorer ENI and the US supermajor ExxonMobil say they have ramped up marketing for the Rovuma LNG project, which will produce, liquefy and sell natural gas from the gas fields of the Area 4 block offshore Mozambique.

Senior management representatives of the co-venture parties (ExxonMobil, ENI, CNODC, ENH, Kogas and Galp) met at the just concluded World Gas Conference in Washington, D.C. to affirm marketing progress.

“The key strength of Area 4 is the quality of the co-venture partnership,” said Massimo Mantovani, ENI’s chief gas and LNG marketing and power officer. “Following the FID on Coral South FLNG in 2017 we are working together to develop the remaining gas fields which will feed the Rovuma LNG trains taking full advantage of the expertise of all our co-venture parties.”

“We have made significant progress on marketing and are now in active negotiations on binding sales and purchase agreements for Rovuma LNG with some affiliated buyer entities of the Area 4 co-venturers,” Peter Clarke, president of ExxonMobil Gas and Power Marketing Company, said at the World Gas Conference. “These commitments will help us progress toward a final investment decision, which we expect to reach in 2019.”
The initial phase of the Rovuma LNG project will develop the Mamba reservoirs in Area 4 and help deliver reliable, affordable energy to customers and create long-term economic value for the people of Mozambique and the project’s co-venturers.

ExxonMobil Moçambique Limitada will lead construction and operation of liquefaction trains and related onshore facilities for the Rovuma LNG project, while Eni Rovuma Basin will lead upstream developments and operations. In parallel to the marketing, the co-venturers are also advancing financing activities and working with the government of Mozambique to progress approval of the project.

About Area 4
The Area 4 concession is located offshore of the Cabo Delgado province of northern Mozambique and is operated by Mozambique Rovuma Venture S.p.A., owned by ExxonMobil Development Africa B.V., ENI S.p.A. and CNODC Dutch Cooperatief U.A., which holds a seventy percent interest alongside Galp Energia Rovuma B.V., KG Mozambique Ltd. and Empresa Nacional de Hidrocarbonetos E.P., each of which holds a ten percent interest.


Oranto Petroleum Farms into Zambian Oil Blocks

Oranto Petroleum will hold a 90% stake and ZCCM Investment Holdings will control a 10% share, on behalf of the Zambian Government
Oranto Petroleum, the Nigerian founded minnow with Pan African ambitions, is farming into two exploration blocks located onshore Zambia. Blocks 17 and 27 represent Oranto’s first investment in the country.

“Oranto Petroleum is committed to an aggressive work programme to increase the level of prospectivity in one of the world’s last true frontier markets,” said Prince Arthur Eze, Chairman of Oranto Petroleum. “Our specialty at Oranto Petroleum is discovering the vast potential of Africa’s frontier oil and gas markets, and we are very pleased to add Zambia to our extensive portfolio. We are committed to developing Zambia into an oil and gas producing nation, as we have many times with other countries on the continent.”

The company’s widely distributed press release claims that Oranto Petroleum and its sister company Atlas Petroleum International, comprise the largest African independent by acreage, with active exploration and production programs across the continent, including Benin, Equatorial Guinea, Ghana, Liberia, Namibia, Nigeria, São Tomé and Príncipe, Senegal, South Sudan and Uganda.

Under the agreement, signed Thursday, June 28, 2018, Oranto Petroleum will hold a 90 percent stake and ZCCM Investment Holdings will control a 10 percent share, on behalf of the Zambian Government. The company will be required to conduct geological and geophysical studies for first two 2-year sub-periods.

Current operators in Zambia include Tullow Oil and Bowleven. Though only marginal finds have been discovered, the under-explored market shares basins with Tanzania to the northeast and Angola to the west — both of which have hosted mega oil and gas discoveries.


ENI Claims 300Million Barrels in New Angolan Discovery

Opens up the southern part of 15/06, operator says

By Sully Manope, in Luanda

Italian explorer ENI has announced a new oil discovery in Block 15/06, in the Kalimba exploration prospect, in Angola’s deep offshore. “The new discovery is estimated to contain between 230 and 300 Million barrels of light oil in place”, the company declares.

The Kalimba-1 NFW well, which has led to the discovery, is located at approximately 150 kilometers off the coast and 50 kilometers South East from the Armada Olombendo FPSO (East Hub). The well was drilled by the West Gemini drillship in a water depth of 458 meters and reached a total depth of 1901 meters.

“Kalimba-1 NFW proved a 23 meters net oil pay of high quality oil (33° API) contained in Upper Miocene sandstones with excellent petrophysical properties. The data acquired in Kalimba-1 NFW indicate a production capacity in excess of 5,000 barrels of oil per day”, ENI remarks.

The company says that the discovery opens new opportunities for oil exploration in the Southern part of Block 15/06, so far considered mainly gas prone, thus creating new chances for additional potential value in the block.

“The Joint Venture, composed by ENI (operator, 36.8421%), Sonangol P&P (36.8421%) and SSI Fifteen Limited (26.3158%), will work to appraise the updip of the discovery and will start the studies to fast track its development”.

ENI currently outputs an equity production of about 155,000 barrels of oil equivalent per day in Angola.

“In Block 15/06 the two oil development projects, West hub and East Hub, are currently producing about 150.000 barrels of oil per day (100%).  ENI is also operator of Cabinda Norte Block, located onshore Angola.

The next start-ups in block 15/06 this year will be the Upper Miocene, in the East Hub, and the Subsea Boosting System for the Mpungi field, while the Vandumbu field, that will be connected to the West Hub, will start production at the end of 2018, ahead of plan. These start-ups will add further 30,000 barrels of oil to the overall production from Block 15/06, which in 2019 will exceed 170,000 BOPD gross”.


SellyFak Upgrades To ISO 9001:2015

By Akpelu Paul Kelechi

Bureau Veritas has certified that the Quality Management System of SellyFak Energy Services Limited has been audited and found to be in accordance with the requirements of the ISO 9001:2015 standards, the company reports.

Services covered are: Mechanical Fabrication, Corrosion Control, Pipeline Construction, Ancillary Civil Works, and the Procurement of Oil Tools.

As a company, we pride ourselves on the quality management system that we have in place”, Stanley Fagbule, Chief Executive of SellyFak remarks.

The company upgraded fromISO 9001:2008 to ISO 9001:2015.

“We have a quality management system in place that speaks to consistency in the work that we do”, Fagbule explains.

“The fact that our processes are reproducible and consistent, it assures same result anytime. Apart from that, the certification of the capacity building of our people makes sure that the service that you get from us at any point in time is the same. Our people are certified by NACE, National Association of Corrosion Engineers, our people are certified by IRATA for the rope access services that we render. Also, all the top management team members of the company are involved in one capacity building program or the other either with the Lagos Business School, Philip Consulting and the rest. We spend quite a lot in terms of human capacity building”.

 


Mixed Grill in The Indies’ Camp

By Fred Akanni, Editor in Chief

Africa focused Western independents, listed in London, Toronto, Oslo and New York, have a mixture of experiences about projects they are pursuing on the continent.

While it’s true that the depressed crude oil price period of 2014 to 2017 hit them hard, and several of them were on the retreat from Africa, the overall investment narrative about this species is a lot more comprehensive.

For every Ophir Energy (who is harassed by government, spurned by partners and cold shouldered by financiers), there is a Kosmos Energy, (who is applauded by the market and hailed by government partners).

For every Tullow Oil that is counting both cost and listing its blessings to look on the bright side, there is an Africa Oil Corp. which is collecting a Landlord’s rent and is on an acquisition binge.

One challenge that is common to most independents is that the new oil and gas reserves that were discovered in the heyday of the last boom have now reached development phase.

Our question remains: Are these independents still, as a group, the markers to where the opportunities lie in Africa?

Africa Oil+Gas Report’s 2018 edition of Independents’ Day, the magazine’s once-a -year review of activities of foreign independent companies operating in Africa, pays close attention to the results of these companies’ exploration ventures in little known basins on the continent, as well as details of plans for the near term. Our job is much more than presenting the general picture. It is to ensure that wherever you are on the planet, you get such a grasp of deal flow, operational plans, and short to mid-term strategies that provide you enough understanding of what’s going on around Africa’s hydrocarbon resources to make a profitable investment.

The Africa Oil+Gas Report -a monthly trade journal-is the primer of the hydrocarbon industry on the continent.

Find out in these pages.

 

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