All posts tagged featured


Keter Returns To His Seat As Kenya’s Oil Minister

Charles Keter, 49, has been reappointed to the Kenyan ministry of energy and petroleum as cabinet secretary. It will be his second term. Mr. Keter was one of the six Cabinet Secretaries (Ministers) that President Uhuru Kenyatta has reappointed back to their former ministry posts.
Keter was first posted to the ministry in 2015.

He belongs to the United Republican Party (URP) on which ticket he was elected to represent the Belgut Constituency in the December 2007 Parliamentary elections. In 2013 he ran for the senatorial seat for Kericho County on a URP ticket under the Jubilee Coalition led by Uhuru Kenyatta.

With this appointment Keter is one of six cabinet secretaries that have retained their former seats after the elections that returned Uhuru Kenyata to the Presidency.

Keter comes back to the Petroleum Ministry at a transition time between the heady days of discovery after spectacular discoveries of crude oil in the country and the sober work of developing the discovered fields. President Kenyata is anxious that Kenya reaches first oil at terribly short notice, but these are financially challenged times for the industry and, as a site of oilfield development, neighbouring Uganda has retaken the lead in terms of consideration of International Oil Companies.


Sahara Raked the Highest Losses in Crude Oil Processing

By Sully Manope, in Abuja

Of all the four, loss making Offshore Processing Arrangements (OPAs) for Nigerian crude, the deal between NNPC and the Sahara Group incurred the most debit in 2015, NEITI has reported.

The country as a whole lost over $723 Million in the year to those arrangements, forged between the Petroleum Product Marketing Company (PPMC), a downstream subsidiary of the state hydrocarbon company NNPC, and each of four companies, namely: SAHARA, AITEO, Duke Oil and NAPOIL, the 2015 audit report of the Nigerian Extractive Industry Transparency Initiative (NEITI), has disclosed.

The report, released in Abuja in the closing weeks of 2017, indicated that the arrangement with SAHARA Petroleum incurred a loss of $323,129,180.50; the AITEO arrangement recorded a loss of $221,095,575.24; the DUKE OIL arrangement recorded a loss of $160,658,295.07 ($, whereas the NAPOIL arrangement recorded a loss of $44,553,458.59 ($44.5Million), making a total loss of $723,285,929.70. The exception to these losses was the arrangement with CALSON, where PPMC made a profit of $26,150,579.70.

OPA is one of several options used by NNPC to import supplies of petroleum products in exchange for Nigerian crude. The Nigerian populace consumed 18.2Million Tonnes Per Annum (MMTPA) of petroleum products in 2014, of which 71% or 12.9MMTPA was gasoline. But the country’s government owned refineries cannot refine the requisite volume of crude to deliver these volumes, so NNPC resorts to these crude oil for petroleum product deals to satisfy the market.

Yet huge losses like this make the country’s vocal, intellectual minority dismiss those deals as nothing but ways of siphoning public funds.
OPA had been used before, then discontinued. Just prior to its reincarnation in 2015, the option used by NNPC was Crude-Product exchange also known as SWAP. It was discontinued in 2015 while OPA was re- initiated, to process white fuels PMS, AGO, and DPK at cost and sent back to Nigeria. The offshore refineries retain and pay for other products such as VGO, LPFO, Fuel Oil, Propane, and Butane at the current market price to NNPC.

NEITI’s 2015 audit report disclosed that Grand total losses from 2010 to 2015 for OPA and SWAP have been $2,549,328,360 ($2.54Billion). “NNPC benefited from NIGERMED arrangement in 2010, however discontinued the contract in 2011”, the report says, adding that the country’s loss because of the combined OPA and SWAP arrangements peaked in 2011 at $928,868,083 ($928.8Million). The highest loss in terms of the OPA arrangement in any year, however, was the $723,285,930 ($723.3Million) loss in 2015.


Speaker Line-up Announced for First Offshore Well Intervention Workshop West Coast of Africa

Eni Nigeria, Marathon Oil, Shell &Sonangol amongst offshore operators joined by leading well work experts at the Offshore Well Intervention Workshop West Coast of Africa on March 7-8: https://tinyurl.com/y9wpz9y9

150+ senior well intervention experts will get together in March at the Mövenpick Ambassador Hotel in Accrato discuss their well intervention and P&A strategies in a bid to increase efficiencies and reduce the cost of both deepwater and shallow water projects.

Well intervention & completions experts Ihechi Ojukwu (Chevron Nigeria), Kelechi Victor (Nigerian Agip) &Ifeanyi Ugbor (Shell Nigeria) will speak alongside well engineering specialists including Andres Esono Ngui Obono (Marathon EG), Elike Mawuli (Tullow Oil) &Edward Kalu (Total Nigeria) to address some of the challenges companies are facing during workover, integrity and abandonment projects.

Key topics up for discussion include:
•Well Intervention Economics: Examine how expanding the scope of work, multi-well campaigns and the availability of equipment can improve well intervention economics
•Acid Stimulation: Hear how a scheduled program of well stimulation using coiled tubing or flexible pipe to bullhead acid can lead to optimized recovery with no downtime
•Downhole Technology: Discover new section milling, fishing and retrieval tools as well as eline& CT services that enhance production while mitigating risk to your subsea formation
•Late Life Management: As West African fields mature, discuss ways of optimizing late life production, ensuring integrity and preparing for P&A with an efficient end of life strategy
•P&A: Study regional abandonment case histories to tackle challenges including annular pressure build up, cement placement, barrier validation and NORM contaminants

Other speaking organisations at the conference include Wild Well Control, Helix, Island Offshore, TechnipFMC, Oceaneering and many more…

To see a full breakdown of the agenda and speakers involved in the Offshore Well Intervention Workshop West Coast of Africa, download the conference brochure at https://tinyurl.com/y9wpz9y9


Speaker Line-up Announced for First Offshore Well Intervention Workshop West Coast of Africa

Eni Nigeria, Marathon Oil, Shell & Sonangol amongst offshore operators joined by leading well work experts at the Offshore Well Intervention Workshop West Coast of Africa on March 7-8: https://tinyurl.com/y9wpz9y9

150+ senior well intervention experts will get together in March at the Mövenpick Ambassador Hotel in Accrato discuss their well intervention and P&A strategies in a bid to increase efficiencies and reduce the cost of both deepwater and shallow water projects.

Well intervention & completions experts Ihechi Ojukwu (Chevron Nigeria), Kelechi Victor (Nigerian Agip) & Ifeanyi Ugbor (Shell Nigeria) will speak alongside well engineering specialists including Andres Esono Ngui Obono (Marathon EG), Elike Mawuli (Tullow Oil) &Edward Kalu (Total Nigeria) to address some of the challenges companies are facing during workover, integrity and abandonment projects.

Key topics up for discussion include:

• Well Intervention Economics: Examine how expanding the scope of work, multi-well campaigns and the availability of equipment can improve well intervention economics
• Acid Stimulation: Hear how a scheduled program of well stimulation using coiled tubing or flexible pipe to bullhead acid can lead to optimized recovery with no downtime
• Downhole Technology: Discover new section milling, fishing and retrieval tools as well as eline & CT services that enhance production while mitigating risk to your subsea formation
• Late Life Management: As West African fields mature, discuss ways of optimizing late life production, ensuring integrity and preparing for P&A with an efficient end of life strategy
• P&A: Study regional abandonment case histories to tackle challenges including annular pressure build up, cement placement, barrier validation and NORM contaminants

Other speaking organisations at the conference include Wild Well Control, Helix, Island Offshore, TechnipFMC, Oceaneering and many more…

To see a full breakdown of the agenda and speakers involved in the Offshore Well Intervention Workshop West Coast of Africa, download the conference brochure at https://tinyurl.com/y9wpz9y9

If you want the opportunity to secure your company’s place in the supply chain of these projects register now and save $800 today at http://interventionwca.offsnetevents.com/register.html


Nigerian Independents Don’t Pay Petroleum Profit Tax-NEITI

Waziri Adio

By Sully Manope, in Abuja

Sixteen Nigerian owned companies, all of them hydrocarbon producers, defaulted on payment of the Petroleum Profit Tax (PPT) to the country’s coffers in the year 2015, according to the latest audit report of the Nigerian Extractive Industry Transparency Initiative (NEITI).

Those that were reported to have defaulted on PPT payment included AITEO, Allied Petroleum, Atlas Petroleum, Dubri Oil, Energia, Eroton, Express Petroleum, Frontier Oil, Network E&P, Oando OML 125&134, Oando Qua Ibo Ltd, Prime Energy, Seplat, Shebah, South Atlantic Petroleum (SAPETRO) and Universal Petroleum.

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Four Large African Oil Projects for Sanction in 2018

Tullow Oil

By Toyin Akinosho

Nigeria is the site of two of Africa’s four largest greenfield oil developments on queue for Final Investment Decision in 2018.
The remaining two are each located in landlocked Uganda and offshore Senegal.

The most certain to take FID of the four is the Ugandan Albert Basin oilfield development, which had been on the drawing board for nine years. Now TOTAL, which has 44% equity in that development, is also the lead operator. The Albert basin development will deliver 230,000 barrels of oil per day BOPD at peak. The sanction announcement is expected be made any time before the end of the First Quarter 2018.

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Seven Large African Gas Projects Queue Up For FID in 2018

By Toyin Akinosho

Seven sizeable gas projects in Africa, four of them meant for export, are on the queue for final investment decision in 2018.

Three of these projects: ENI operated Baltim SW project in Egypt, Seplat operated Assa North/Ohaji South in Nigeria and BWOffshore led Kudu gas to power in Namibia, are meant for the domestic markets in their countries. Each of these domgas projects will deliver in the range of 300-350MMscf/d, at peak.

The biggest projects; Anadarko’s Area 1 project (6MMTPA) in Mozambique and NLNG’s Train 7 (8MMTPA) in Nigeria are meant for shipment to industrial economies outside the continent, mostly in Asia.

The 2.2MMTPA Fortuna LNG in Equatorial Guinea, is the smallest of the gas export projects.
There are no numbers yet for the deliverable volumes for BP/Kosmos’ Tortue LNG project offshore Senegal. What is known is that the size of the reserves is estimated at 15Tcf.

Full details of 2018 Projects around Africa, including this author’s Kickstarter article: ‘Pregnant with Projects’ and the editorial survey: ‘Who Is Doing What and Where in 2018?’ are available in this link.


Sonangol, Chevron & Shell Join Tullow Oil and TOTAL to Discuss Well Intervention in West Africa

Eni Nigeria, Marathon Oil, Shell & Sonangol amongst offshore operators joined by leading well work experts at the Offshore Well Intervention Workshop West Coast of Africa on March 7-8: https://tinyurl.com/y9wpz9y9

150+ senior well intervention experts will get together in March at the Mövenpick Ambassador Hotel in Accrato discuss their well intervention and P&A strategies in a bid to increase efficiencies and reduce the cost of both deepwater and shallow water projects.

Well intervention & completions experts Ihechi Ojukwu (Chevron Nigeria), Kelechi Victor (Nigerian Agip) & Ifeanyi Ugbor(Shell Nigeria) will speak alongside well engineering specialists including Andres Esono Ngui Obono (Marathon EG), Elike Mawuli (Tullow Oil) &Edward Kalu (Total Nigeria) to address some of the challenges companies are facing during workover, integrity and abandonment projects.

Key topics up for discussion include:
Well Intervention Economics: Examine how expanding the scope of work, multi-well campaigns and the availability of equipment can improve well intervention economics
Acid Stimulation: Hear how a scheduled program of well stimulation using coiled tubing or flexible pipe to bullhead acid can lead to optimized recovery with no downtime
Downhole Technology: Discover new section milling, fishing and retrieval tools as well as eline& CT services that enhance production while mitigating risk to your subsea formation
Late Life Management: As West African fields mature, discuss ways of optimizing late life production, ensuring integrity and preparing for P&A with an efficient end of life strategy
P&A: Study regional abandonment case histories to tackle challengesincluding annular pressure build up, cement placement, barrier validation and NORM contaminants

Other speaking organisations at the conference include Wild Well Control, Helix, Island Offshore, TechnipFMC, Oceaneering and many more…

To see a full breakdown of the agenda and speakers involved in the Offshore Well Intervention Workshop West Coast of Africa, download the conference brochure at https://tinyurl.com/y9wpz9y9


Cameroon, Egypt To Launch Licencing Round in 2018

President Paul Biya will take advantage of the Cameroon Oil & Gas Summit 2018 to be held in the capital city of Yaoundé from 6-8 February 2018, to launch the country’s next licencing round.

The summit is being organised with the official support from the country’s Ministry of Industry, Mines & Technological Development.
Meanwhile, Egypt says it will launch a lease sale for blocks in the Red Sea, after an ongoing seismic acquisition programme is concluded in the area. The launching is expected to take place before the end of Second Quarter 2018.

Cameroon and Egypt differ widely in their approaches to acreage licencing.

Whereas the Cameroonian government prefers negotiations, which means that this proposed bid round is out of the norm, Egyptian authorities could be described as perennial bid rounders.

In Cameroon, next February, the blocks on offer will be from the eight blocks that are not currently being operated. They include Etinde Exploration, Kombe Nsepe, Tilapia, Ntem, Elombo, Bolongo, Bomana Exploration and Bakassi.

In Egypt, the blocks that will come on offer depend on the results of the 10,000 km 2D long-offset broadband multi-client TGS-NOPEC and Schlumberger project, which commenced in mid December 2017. The project will comprise acquisition of a seismic survey. Advanced new acquisition and imaging techniques will provide better illumination of complex subsalt structures. The project will integrate all legacy seismic and non-seismic data. Acquisition commenced mid-December 2017 and is expected to complete in late Q1 2018.


SDX Reports A Duster in Morocco

SDX Energy has reported non-commerciality of the ELQ-1 well in Morocco’s Gharb Centre permit.
The well was drilled to a total depth of 1484 meters and has encountered 22.6 net meters of reservoir interval and two meters of marginal net conventional gas pay, in the Hoot formation.

“Management are of the view that the intervals are not sufficiently commercial to complete the well”, the company declares.  “As such, the well will be plugged and abandoned and the drilling rig will move to the ONZ-7 development location”.

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