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The Japanese Get Rovuma LNG

Japan is not only going to consume gas produced in Mozambique but its engineers will be leading the operations to extract the gas from the Indian Ocean.

The Japanese contractor, JGC Corp. unprecedentedly won the contract to develop the Rovuma liquefied natural-gas project in Mozambique, which is set to be the biggest-ever private investment in Africa.

JGC is leading a consortium including Fluor Corp. And Technip FMC Plc to develop the Rovuma LNG project, a 15.2Million Tonnes Per Annum (MMTPA) project which is operated by ExxonMobil. The invoice for the project is around $30Billion and is the priciest hydrocarbon valourisation project on the continent in the last 10 years.

The Rovuma LNG project will develop over 60Trillion cubic feet of reserves in the deepwater Area 4 block, offshore Mozambique.

But the final investment decision, earlier planned for second quarter of 2019, has been deferred to 2020, with first gas expected on stream in 2025.


PAID POST: NOGA Awards Celebrates the Top 25 Oil Companies


The Nigerian Oil and Gas Awards NOG A ceremony will hold at the Civic Centre in Victoria Island, Lagos, Nigeria on Friday 27th March, 2020.

In collaboration with the award-winning Africa Oil+Gas Report, the TOP 25 Oil and Gas companies operating in Nigeria are nominated for the awards in Seven categories following strict performance guidelines.

The Top 25 for year 2019 include oil service companies, both local and international, E&P companies, both indigenous independents, majors and super majors, marine facility operators, shipyards, logistics companies and so on.

The awards are for innovation, Corporate social responsibility, Environmental responsibility and Marine services categories; to mention a few.

In attendance will be the CEOs of these 25 companies along with the Honorable Minister of state for Petroleum Resources Hon. Timipre Silva as the special guest of honor at the event.

The NOGA awards is an annual event which partners with Africa Oil+Gas Report, and the LONDON STOCK EXCHAGE [LSE] (where some of these nominated 25 companies are already listed), to identify, promote and acknowledge the outstanding contributions of organizations and individuals who typify the most admirable business values in Nigeria’s oil and gas industry while contributing to the nation’s economic growth.




Ghanaian Minnow Spuds Deepwater Well

Ghanaian independent, Springfield E&P,has spud its first well on the West Cape Three Points (WCTP) Block 2 acreage, in the country’s prolific Tano Basin.

The drillship Stena Forth spud Afina-1 at 6.50pm, October 7th, 2019, according to Kevin Okyere, Springfield’s founder and CEO.

Afina-1 is the first of two exploratory wellsthat Springfield proposes to start with on the asset. The second is Oak-1.

Springfield doesn’t say what water depth Afina is located and has also not disclosed the proposed Total Depth. The block itself, WCTP2, lies between 100metre and 1,700metre water depths. Deepwater starts from the 200metreisobath.

WCTP2 was carved out of the West Cape Three Points block, operated by Kosmos Energy, following the delineation of the Jubilee unitisation area. The block was subsequently awarded to Springfield E&P for a seven year exploration period from July 2016.

WCTP2 is situated between the Jubilee field (90,000BOPD) and Sankofa (30,000BOPD) field and is immediately north of Aker Energy’s Pecan, Hickory, Almond, Paradise and Beech discoveries.

The latter extends into the WCTP2 block. The licence consists of two components, an exploration component and an appraisal/development component for the existing discoveries, Odum and Banda.

Springfield operates the block with 82%. The two partners, state hydrocarbon companies GNPC and GNPC Explorco hold 8% and 10% equity respectively. They are both carried.

Springfield has, by merely spudding, achieved history as the first home-grown, African owned E&P operator to spud a well in a new deepwater licence.

Other African owned E&P companies with licences in Ghana include Amni, Oranto, Brittania U and Sahara. They were all awarded their different blocks in the country before Springfield E&P but have not announced any concrete drilling plans.

Africa Oil+Gas Report’s earlier story indicated that Springfield’s first well would be Oak-1. Both prospects are to be tested on the basis of interpretation of an 800 sq kilometre, three dimensional (3D) seismic data, acquired by PGS and paid for by Springfield, in 2017.


BW Gets More than It Bargained For

BW Energy’s side-track appraisal of the Hibiscus Updip oil discovery in Gabon has exceeded the company’s expectations to the extent that it is now expanding the initial hook up plan.

The company’s ‘Phase 3 development plans’ to tie the nearby Ruche and Ruche NE fields back to the Adolo FPSO are now being expanded to include a possible fast-track development of the discovery.

The estimate of gross recoverable oil at Hibiscus Updip, computed from the original wellbore and sidetrack is between 40 and 50Million barrels, according to reports widely shared with the public.

“This successful well enables us to further de-risk Gamba prospectivity in the Hibiscus area where we see significant additional potential”, says Panoro Oil, a minority partner in the asset and the project. “We are extremely pleased with the continued drilling success at Dussafu, and now look forward to the commencement of the production drilling phase at Tortue”.

The DHIMB-1 well was initially drilled in 116 metres of water to a vertical depth of 3,538 metres. On August 30, 2019, an oil discovery was announced in the pre-salt Gamba reservoir with plans to drill a sidetrack to appraise the extent of the Hibiscus Updip discovery.

The well was drilled in the northwest of the structure to test the lateral extent and structural elevation of the Gamba reservoir. The sidetrack was drilled to a Total Depth (TD) of 3,500 metres, (3,049 metres True Vertical Depth Subsea (TVDSS)) approximately 1.1 km from the original wellbore and found a 33 metre oil column with 26 metres of oil pay in the Gamba reservoir with better reservoir character and a similar fluid level to that encountered in the vertical well, DHIBM-1.

Further upside potential exists in the wider Hibiscus area which will be the focus of future exploration drilling.


Oil Companies Work towards the Industrial State


Nigeria’s hydrocarbon sector has largely been about extraction of crude oil for export and importation of petroleum products for consumption.

And when the authorities talk about diversification of the country’s economy, the focus isn’t always about diversification within the hydrocarbon industry itself.

“We should include talk about diversification within the oil industry”, says Ebi Omatsola, founding Chief Executive of Conoil.

This kind of thinking is already enshrined in the draft National Oil and Gas Policies, widely circulated in 2016, but not gazetted.

One company that has actively interrogated the industrial economy through its hydrocarbon assets is Niger Delta Petroleum Resources (NDPR) Limited.

Layi Fatona, who just left the mantle of the CEO, explains in this video.

Nigeria Cuts Output To Obey Quota Instructions

Nigeria is currently taking action, under OPEC guidelines to curtail its monthly national production.

It is happening for the first time in a long while.

The country’s regulatory authorities have instructed some companies to dial down production from their largest producing fields.

One clear case is the TOTAL operated Egina, which averaged 203,000BOPD in August 2019. It would be expected to produce 180,000BOPD in October 2019 and 159,000BOPD has generally been exempted from OPEC quota.

There are likely to be implications for Nigerian budget expectations, which is deficit planning.



Uganda’s Ruling Party Wins Election in Oil Rich Town

By Toyin Akinosho, Publisher

Uganda’s ruling party, The National Resistance Movement (NRM), emerged victorious in the by-elections in Hoima district for a seat specifically designated for a female member of parliament.

NRM’s Harriet Businge beat Forum for Democratic Change (FDC)’s Asinansi Nyakato by over 4,000 votes.

In what is considered by the country’s media as a close race, Businge received 33,301 votes against Nyakato’s 28,789 votes.

Douglas Matsiko, the Hoima Electoral District returning officer, declared Businge the newly-elected district Woman representative to Parliament.

Uganda’s Hoima district came to prominence on the global hydrocarbon map between 2006 and 2009, when a considerable amount of crude oil deposits, estimated now at between 2.5Billion to 3.5 Billion barrels (of stock tank oil in place STOIP), were discovered in Lake Albert and on the shores of the lake in Hoima District and the neighbouring Buliisa District.

An oil refinery, the 60,000BSPD capacity Uganda Oil Refinery, is planned in Kabaale Village, Buseruka Sub-county, Hoima District, approximately 35 kilometres west of Hoima town. The East Africa Crude Oil Pipeline (EACOP), is also planned to evacuate crude oil from Hoimato Tanga, the Tanzanian port town on the coast of the Indian Ocean, with the result that Hoimawill become a hub of economic activity.

In January 2018, SBC Uganda Limited, a joint venture company between the UK based Colas Limited and SBI International Holdings of Uganda,started construction of Hoima International Airport, at Kabaale Village, Buseruka sub-county, Hoima District,approximately 35 kilometres , by road, to the west-northwest of the city of Hoima. The first phase of construction, including the runway and cargo-handling facilities, is expected to be ready in 2020.

The Hoima seat fell vacant after MP Tophace Kaahwa Byagira opted to represent the newly-created Kikuube district.

Hoima has two counties, one municipality, 17 sub-counties and 69 parishes. The election was conducted at 266 polling stations.



TOTAL Takes Over Moza LNG

The French supermajor will lead the largest greenfield LNG development project in Africa

TOTAL has closed the acquisition of Anadarko’s 26.5% operated interest in the Mozambique LNG project and will now be leading the development of the proposed 12.8Million Ton Per Annum (12.8MMTPA) facility.

The Mozambique LNG will valourise some 2Billion standard cubic feet of natural gas per day (2Bscf/d), making it the continent’s largest gas project currently in development.

The French major closed the takeover deal, which includes acquisition of Anadarko’s assets in Algeria, Ghana and South Africa, for a purchase price of $3.9Billion.

TOTAL says it has now received all requisite approvals by the relevant authorities and partners, for the transactions.

The purchase, which now makes TOTAL the largest E&P operator in Africa, commenced on  May 3, 2019, when the Paris based firm reached a binding agreement with Occidental, which was about to buy up Anadarko, to take over all of Anadarko’s interests in Africa. On August 3, 2019, TOTAL signed the subsequent Purchase and Sale Agreement.

TOTAL is taking over the Mozambique LNG project after financial sanction.

The Final Investment Decision for the project was taken in June 2019. The announcement, by Anadarko and the co-venturers in Mozambique’s Offshore Area 1, “confirmed the Area 1 Plan of Development was now effective, with notice provided to the Government of Mozambique that all conditions precedent have been fulfilled, and the project can now advance to the construction phase”, Anadarko said at the time. It would monetise over 75Trillion cubic feet of natural gas in the Golf-Atinho fields in the deep-waters of the Indian Ocean.

The project had successfully secured in aggregate 11.1 MMTPA of long-term LNG sales (representing 86% of the plant’s nameplate capacity) with key LNG buyers in Asia and in Europe. Additionally, the project is expected to have a significant domestic gas component for in-country consumption to help fuel future economic development.

As the new operator take over Africa’s largest greenfield LNG project, Patrick Pouyanné, Chairman & CEO of TOTAL, says the company “will bring the best of our human, technical, marketing and financial capacities to further strengthen its execution. He says that TOTAL “will of course work on the strong foundations established by the previous operator and its partners, in order to implement the project in the best interest of all those involved, including the government and the people of Mozambique.”


Gasoline, Diesel Prices, Keep Going Up in South Africa

Petrol prices, which have increased by almost 15% in South Africa since January this year, look set to increase further in October 2019.

The country’s fuel price is deregulated, which means a hike in crude oil price and a weakening of the local currency, the Rand, directly push prices up.

Those two have happened so far in September 2019, leading to warnings by regulators of an imminent hike of diesel and gasoline prices.

After an initial spike of 20% to above $70 a barrel, the oil price has since retreated, with Brent crude oil currently trading at $63 – compared to $60 before the attack. Saudi output was restored in the week of September 23, to pre-attack levels.

The Rand took a hit amid concerns about a global trade war and broke through the R15/$ level for the first time in three weeks. It was last trading at R15.03.

Based on the latest calculations of the Central Energy Fund, the biggest parastatal in the Department of Energy (DoE) the recent Rand and oil price movements will leave unleaded 95 octane petrol on track for an increase of 19c a litre, while 93 octane petrol could be cut by around 4c. Diesel prices will increase by 24c, and paraffin by the same margin.


No Go Ahead Yet For Nigerian Licensing Round

By Fred Akanni, Editor in Chief

There is no plan yet in President Muhammadu Buhari’s second term, to propose any open licencing round of Nigeria’s upstream hydrocarbon property.

“It’s too early in the tenure of the Minister of State (Timipre Sylva), who resumed duties on August 20, 2019”, say ranking officials at the Ministry of Petroleum Resources in Abuja, the country’s political capital.

“Proposals for Bid Rounds are always routed through the office of the Minister of State”, a ministry official told Africa Oil+Gas Report in Abuja “At the moment, he hasn’t received one”.

Mr. Sylva has talked on record about certain issues, including sale of NNPC assets (“We have not decided we would do it”) and Petroleum Industry Bill (“I’d work with experts to deliver it”), but he hasn’t specifically mentioned a licencing sale.

Nigeria has not had a licensing round in the last 12 years. The country’s exploration activity is on a downslope, with 31 of 33 active rigs in the country’s basins working on development drilling, and hardly any appraisal. Over 35 prospecting and mining leases, some of them having been held by companies for as long as 27 years, are lying fallow, without any robust work programme.

Asked if the issue of licensing round was discussed at the two day retreat the Minister of State had with the directors and chief executives of the Ministry two weeks ago in Abuja, several sources within the Ministry and the NNPC, the state hydrocarbon company, said it was not. But for the record, Africa Oil+Gas Report was told: “What was discussed at the retreat, stays at the retreat”.


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