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NPDC/Shoreline Make It To 50,000BOPD

Ladi Bada

Production from Uzere West tops up the volume

British independent Heritage Oil reports that gross production from the Oil Mining Lease (OML) 30, in which it has a stake in Nigeria, has reached over 50,000 BOPD.
This is in part “from the benefit from continued maintenance and rehabilitation programmes and as a result of production from the Uzere West Field recommencing in December 2013 after having been shut-in for over two years”, the company says in an operational update released January 9, 2013.
“There were four liftings during Q4 2013 generating revenues net to Heritage of $170 million”,
Production from Uzere West field would be about 5,000BOPD, considering that OML 30 was doing around 44,800BOPD in the early weeks of December 2013.

OML 30 is 55% operated by the Nigeria Petroleum Development Company (NPDC). Heritage Oil and the Nigerian minnow, Shoreline Power, both hold the remaining 45%, as Shoreline Natural Resources, a special purpose vehicle combining the two companies.
Heritage’s update recalls that its own average daily net production from OML 30 increased from 8,150 BOPD for the first nine months of 2013 to average 13,300 BOPD in the fourth quarter of 2013. This would mean the company has over 30% equity in the acreage, with the Nigerian company, Shoreline Power, holding less than 15%.
“All maintenance work over the OML 30 licence progressing as planned”, the update says. “Total revenues, net to Heritage, for 2013 are $465 million”, the company tells investors. It also says that cash in hand as at end of 2013, was $190 million.

OML 30 is one of the four Nigerian acreages from which Shell, TOTAL and ENI divested in 2012. Heritage Oil and Shoreline Power paid $850Million for the 45% stake. The acreage is the only one that has increased crude oil production since the sale.
Heritage says that “the Shoreline Option is in the final process of being approved, with cash consideration of $31.5 million” expected to be received shortly . Operational activities and maintenance work continue on the licence as planned with continued installation of gas compressors, statutory inspection and testing of all pressure vessels and inspection of all wellheads and pipelines completed to support well optimization activities. This should result in further increases in production through the first half of the year prior to the commencement of development drilling in the second half of the year. Heritage has previously announced that Shoreline Power Company Limited (“Shoreline Power”) had exercised its call option to acquire a 30% economic interest in Shoreline Natural Resources Limited. Completion of the transaction is expected imminently, following which Heritage will have an effective working interest in OML 30 of 30.71%. On completion, Heritage will receive cash of $31.5 million and the balance will be provided by way of an interest bearing, secured loan from Heritage to Shoreline Power.

Ogbele Inches Close To 10Bcf Mark

By Sully Manope

The Ogbele field in the Nigeria’s Eastern Niger Delta will have delivered 10Billion standard cubic feet of gas to its main customer, by the end of January 2014. That customer is the Nigerian Liquefied Natural Gas (NLNG) Limited.
The field had input 5Bcf to the NLNG system by June 2013, seven months after the first gas delivery into NLNG Bonny Plant.

Ogbele is a marginal oil and gas field, which was farmed out by Chevron in the late 90s, to Niger Delta Petroleum Resources (NDPR), a Nigerian E&P independent. The agreement got the consent of the government in 2000.

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Shell Works To Boost The East Nigeria Gas Cluster

Shell is battling to keep the position of largest supplier of gas to Nigeria’s domestic gas market.
A major effort is being made in the eastern Niger Delta, where the largest reserves are and the company has a number of projects, including studies, new construction and upgrade.
A well has just been completed on Okoloma field, which will increase the throughput on the field’s 240 million standard cubic feet per day (MMscf/d) capacity gas plant. There’s progress on the new 80 MMscf/d gas plant (and ancilliary facilities) that the company is building on the Agbada field. “Maturation is going on at Buguma Creek, but they haven’t yet taken final investment decision on that”, according to sources at the National Petroleum Investment Management Services (NAPIMS), the quasi-regulatory arm of the state hydrocarbon company NNPC, which oversees the government interest in the Joint Venture with the AngloDutch major.

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Tanzania To Create A New State Hydrocarbon Company

Sospeter Muhongo, Tanzania’s Minister of Energy and Minerals

A gas regulator is also on the table

By Toyin Akinosho

The Tanzanian government will either replace the Tanzanian Petroleum Development Company (TPDC), with a new state hydrocarbon company, or strengthen it to take on board more midstream and downstream activities, in addition to its current oversight of upstream activities in the country.
Either way, when the government moves to fully implement the gas policy, the 41 year old TPDC will no longer look the way it does now.

Tanzania has witnessed discoveries of significant gas deposits in the last 42 months. Its notional natural gas reserves have grown from eight trillion cubic feet (Tcf) in early 2010 to around 43Tcf in late 2013. The country is keen that those reserves are managed properly for the benefit of the economy. A new gas policy, approved by cabinet in October 2013, is one of the tools for designing a beneficial gas industry.

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Minnows Top Up Nigerian Output


Pillar Oil, Excel E&P and Energia were completing wells as 2014 arrived

Three Nigerian marginal field producers were completing a well each, to put on stream as the celebrations to usher in the new year were on. The completions could boost the country’s output by as much as 7,000BOPD.
Two of the companies, Pillar Oil and Energia, are already producers, delivering 2,700BOPD and 3,500BOPD respectively. Energia also produces lean natural gas and other products from a 25Million standard cubic feet of gas per day processing plant. Meanwhile, Excel E&P, is hoping it would be the next marginal field producer on stream.

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Angola’s Rig Count Is 26, With Chevron as the most active driller

Chevron has been active on seven (7) rigs in Angola since October 2013, maintaining the rig count through November to the last week of December 2013.
The U. S. major is closely followed by TOTAL, which deployed six rigs in October and November, and increased the fleet to seven in December.

ENI and BP come a distant third, with rig count of three each, throughout the period under review. ExxonMobil was drilling with two rigs, throughout October and November and most of December 2013. Cobalt Energy, the American minnow, has the same rig count as ExxonMobil. Maersk deployed one rig throughout the three months. Sonangol did not drill at all in October and November. It has been active in December, with one rig.

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Nigeria: Deepwater PSC Incentive Turns On Its Head

By Toyin Akinosho

Nigeria’s total production of crude oil fell by 100Million barrels between 2006 and 2008 and increased by the same volume between 2008 and 2011, but while the proportion of production coming from Production Sharing Contracts (PSCs) surged, relative output from acreages licenced as joint venture (JV) operations was on the decline.

Nigeria's Crude Oil Agreements

This trend indicates an increasing relevance of the PSC as a form of operating arrangement, according to a six year audit by Nigeria Extractive Industries Transparency Initiative (NEITI). The caveat, however, is that, as PSC production increases, mainly from deepwater field developments, the state’s revenue profile comes under stress. Royaties and taxes to the state coffers may, in fact, decline.

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Anadarko In Algerian Gas Production For The First Time

With two oil trains of the El Merk project already on stream, Anadarko expects the Liquefied Petroleum Gas (LPG) and export natural gas unit to be on stream by end of 2013.
It will be the first time that the American independent will be producing gas from Algeria.

El Merk is expected to produce 30,000 barrels of LPG per day by the end of 2013, though it’s not clear if the target would be accomplished.

Anadarko is one of the biggest operators in the country, with 1.7Billion barrels of gross oil produced in its 25 years in Algeria, but despite the fact of Algeria being the continent’s largest gas producer, Anadarko’s production has been limited to oil.

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Uquo Gas Starts Flowing Into Ibom Plant

Uquo Reaches First Gas

Ibom Power wheels 100MW into the Nigerian National Grid

Gas has started flowing from the Uquo Field in Nigeria’s Oil Mining Lease (OML) 13 into the Ibom Power Plant. Both are located in the south eastern Niger Delta basin. “We are wheeling 100MW into the Nigerian Power Grid”, say impeccable sources at the Ibom Power Company in Uyo, capital city of  Akwa Ibom State, which is one of Nigeria’s oil and gas producing states. The delivery is made possible by the completion of repairs on the 120MW Frame 9, the largest turbine in the station.

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Ghana’s Hydra Offshore Gets In Bed With UK’s Wood Group

Ghanaian service company, Hydra Offshore, is taking advantage of the localization opportunities in its home country, to collaborate with UK engineering company Wood Group in delivering subsea engineering services.

The two companies signed a Memorandum of Understanding (MOU) to explore opportunities to provide subsea engineering services to local operators. “This move highlights Wood Group’s commitment to nationalisation and engaging the local supply chain in countries it operates in,” Wood Group says in a widely distributed press release.  “The collaboration will combine the strengths of Hydra Offshore’s subsea engineering capabilities with technical experience, capability, technology and technical assurance of Wood Group’s global oil and gas business.

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