The hydrocarbon industry’s new normal, imposed by lower for longer crude oil prices, has not diminished the stature of Oilserv limited, as Nigeria’s barometer of status of construction of grid-length pipelines and gas to power projects.
The most important of these facilities show up in its order books.
Which is why our annual interview with Emeka Okwuosa, chief executive of this enterprising Oil & Gas EPCIC (Pipelines & Facilities) Company, provides the state of play of construction of key E&P and Midstream projects in the country. But Oilserv has been looking at the wider African region and has shown interest.
Africa Oil+Gas Report’s Ejike Okeke Agulu started the interview with Okwuosa by asking him about the completion status of the 67km OB3 gas pipeline, with capacity to pump 2Billion standard cubic feet per day of natural gas from the gas prone eastern Niger Delta to the ready markets in the west of Nigeria. Excerpts; Click here for the full Interview….
The first set of South Sudanese well production, oil and gas processing “Technical Assistance Training Programe” at Ogbele Production Facilities has ended.
The training lasted six months.
The four Engineers have returned home and the Niger Delta Exploration and Development (NDEP), the Nigerian company leading the assistance, expects the second batch of four Engineers to be in the country by mid-August 2017.
The programme is part implementation of the agreement between NDEP and Nile Petroleum Corporation (Nilepet), the South Sudanese state Hydrocarbon Company, to support the latter to monetize and commercialize all the gas resources in South Sudan as well as support it in production optimization and improved production in existing brown fields.
“We have exposed our business in Nigeria to human content development of South Sudanese”, declares Layiwola Fatona, NDEP’s Managing Director. “The next batch of engineers will participate in a more robust programe, as our 2017 Drilling campaign would have started with the mobilization of a rig in 2 weeks”.
By Sully Manope
Eskom has denied Sunday Times report that it was in severe financial difficulties and down to its “last R20Billion ($1.54Billion)”.
But Africa’s largest electricity company went ahead to confirm it was deep in the red.
“We are currently in a net borrowing position and our ability to continue as a going concern is premised on access to the debt capital markets”, Chief Financial Officer Anoj Singh told reporters. “If something had to happen catastrophic tomorrow that limits our access – and we are not aware of currently – then obviously we would need to approach the National Treasury. [But], at this point in time there is nothing that gives us cause for concern that we would need to approach the National Treasury under current circumstances.”
Reporters wondered which was worse, the fact that you had a net credit of $1.5Billion as indicated by the Johannesburg based newspaper, or that you are in the negative, which Mr. Singh admitted.
The South African minister Finance, Malusi Gigaba had acknowledged, in late June 2017, two weeks before Mr Singh’s annual report commentary that the power utility was experiencing hardship and government was looking to support it further.
Mr. Singh said that the sharp drop in net profit from over R5Billion ($390Million) in the previous financial year to R888Million ($68Million) in 2017 was a consequence of a rise in its asset base, as it introduced generating units at Ingula, Medupi and Kusile. “Those assets have a much higher asset value and, therefore, there is an increase in depreciation.”
Interest costs could also no longer be capitalised as the plants were brought into operation, which had resulted in a rise in interest costs. For all its challenges, Eskom reported a 14.4% rise in earnings before interest, taxes, depreciation and amortisation (Ebitda) of R38Billion ($2.93Billion) and a 7.9% rise in revenue to R177Billion($13.64Billion).
By Sully Manope
Tetra4, the natural gas subsidiary of JSE-listed energy company Renergen, is developing a natural gas resource in South Africa’s Free State Province through the creation of a 107-km pipeline network and associated gas processing facilities.
Tetra4 is the holder and operator of the country’s sole onshore petroleum production right, which, in 2015, was acquired from Molopo South Africa Exploration and Production in a deal valued at $50Million. The asset has since started producing limited volumes of gas, which is being processed at a recently completed natural gas compression station in Virginia, (a gold mining town in the Province) and sold to Megabus-a passenger transport and logistics company-which uses compressed natural gas to fuel its bus fleet.
The current development is designed to increase gas production to well above 1.23MMscf/d and enable Tetra4 to pursue new markets for the gas, including gas-to-power opportunities.
Tetra4 is close to receiving debt funding of $17MM for the project from the Industrial Development Corporation and says the key outstanding condition precedent for the funding to happen relates to receipt, from the Petroleum Agency South Africa (Pasa), of a record of decision for the project’s recently completed environmental impact assessment (EIA). The company expects PASA to approve the EIA decision by early August 2017 and for pipeline construction, all going to plan, to begin before the end of 2017.
All things being equal, Tetra4 expects the project to enter commercial operation before the end of the first half of 2018.
Sola Falodun, General Manager, Drilling and Completion Systems for Nigeria-based OES Energy Services, has been presented with an Exemplary Service Award of the International Association of Drilling Contractors (IADC).
The former chairman of the Nigerian chapter (and the only African chapter) of the association received the honour at the IADC World Drilling Conference and Exhibition 2017, held at The Beurs van Berlage, a picturesque building on the Damrak, in the centre of Amsterdam, The Netherlands.
Mr Falodun was recognized for his service as Chairman of the IADC Nigeria Chapter, as well other contributions to the organization, including serving on the Programme Committee for IADC Drilling Africa. “The spirit of camaraderie and friendship that characterizes our association has been immeasurably enhanced by your presence and generosity of giving up your time and talents to our organization,” Jason McFarland, President, IADC worldwide, reportedly said in presenting the award.
According to a story in The Drilling Contractor, the IADC organ, Mr Falodun noted his gratitude in receiving the award, stating that he was “profoundly humbled.” He further thanked the IADC executive team, including Mr McFarland; Bob Warren, IADC VP Onshore Division; and Mike DuBose, IADC VP of International Development.
“Without hydrocarbons, the world would be a dark place,” Mr Falodun told the conference attendees. “Keep on drilling”.
The Department of Petroleum Resources, Nigeria’s regulatory agency, is unaware of any plan by Shell to hand over the Oil Mining Lease (OML) 11, the acreage which contains the Ogoni community, to a new divestee on Tuesday July 25, 2017.
There are whispers everywhere that the AngloDutch major has picked one of several companies vying to acquire the 45% stake belonging to Shell, TOTAL and ENI on this onshore eastern Niger Delta asset, which contains the troubled Ogoni area.
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Joao Lourenço, the man handpicked by President Jose Eduardo dos Santos to succeed him as Presidential candidate in the August 2017 election, “enjoys wide support across the ruling MPLA party and the military”, according to Lucy Corkin, a keen student of Angolan affairs. “Crucially, he has remained out of the lime light and evaded allegations of corruption, a sensitive issue given the rising international concerns regarding anti-corruption and corporate compliance”, Corkin writes in After the Boom: Angola’s Recurring Oil Challenges in a New Context, published by the Oxford Institute for Energy Studies. “Even more significantly, his wife Ana Afonso Dias Lourenço is a political force to be reckoned with. She served as Vice Minister (1997-1999) and Minister of Planning (1999-2012) and is currently an executive director on the Board of the World Bank Group. This renders the couple a power base with the right credentials to appease a wide variety of stakeholders and interest groups”.
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Ghana’s leading E&P operators hope be busier with the drill bit between late 2017 and mid 2018 than they currently are. Rig activity will be at their peak by 1Q 2018.
Activities at three oilfield developments will be responsible for the increase in rig count.
Ghana’s crude oil production averaged 132,000BOPD in Q12017 and has moved higher in 2Q 2017.
Full story here
By Akpelu Paul Kelechi, in Lagos
Layi Fatona, Managing Director of Niger Delta Exploration and Production (NDEP), will progressively relinquish the functions of his position as Managing Director and Chief Executive of Niger Delta Exploration and Production, Nigeria’s most integrated indigenous E&P Company. The process is the first of several phases of the company’s “Executive leadership succession and implementation programme”.
Fatona has held the reins of NDEP for 25 years. The company is the country’s first formal operator of a marginal field. It has been producing the Ogbele oil field (current output: 6,000BOPD) since 2005. It operates the only private owned crude oil refinery in the country and has built and run a gas processing plant for the past four years.
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Russian giant Rosneft has been credited in the media as proposing to export gas from Egypt’s Zohr field, the vast deposits in the Mediterranean sea.
Quoting a source in the company, the widely respected Russian news agency, TASS, said that Rosneft, which holds 30% stake in the gas field, “will export gas from Zohr to the countries of Europe and the Middle East”.
But that’s exactly contrary to the expectations of the Egyptian government at this time.
Egypt’s economy was experiencing a severe gas deficit when ENI discovered Zohr in late 2015. The government’s assistance to the operator to fasttrack the field’s development is situated in the proposition that Zohr would help return Egypt back to self-sufficiency in natural gas.
“We will sell gas from the Zohr project when economic conditions are best for it. In this case we will act as a gas exporter from one country to another,” TASS quoted the source as declaring.
The Egyptian government is willing to purchase gas from Zohr for higher than $5 per thousand cubic feet (Mscf). That’s one of the highest gas prices in the world at the moment.
Neither the Egyptian Petroleum Ministry, nor Rosneft Public Affairs, responded to our query.