All posts by AOGR

Dana Gas Commences Production from New Egypt NGL Plant

Ras Shukheir joint-venture project loads first cargo

Dana Gas PJSC announces that the Egyptian Bahrain Gas Derivatives Company(EBGDCo),  its joint-venture with the Egyptian General Petroleum Corporation (EGPC), has achieved its first cargo shipment of propane.

The shipment, which occured on 1st October 2012, signaled a scheduled plant production start-up on a commercial basis. The Natural Gas Liquids (NGL) plant receives feed gas from the nearby Unit 104 plant of Egyptian General Petroleum Corporation (EGPC) at a rate of 55 million standard cubic feet per day (MMscf/d) to 80 MMscfd. When fully operational, the plant will extract 120,000 tonnes per annum of propane and butane from a gas stream of 150 MMscf/d.

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The Sudans Return To Market In 2013

In 2013, non-OPEC oil supply is expected to grow by 0.9 MMBOPD, supported by anticipated growth in the US, Canada, Brazil, and Kazakhstan. Production from South Sudan, which was shut down in January 2012, is expected to be part of the boost.

Under an agreement signed by Presidents Salva Kirr of South Sudan and Omar Bashir of Sudan,  South Sudan will resume exporting its oil through Sudan. A demilitarized buffer zone will be created along the 2,000 kilometre border.

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Africa’s Onshore Production On The Decline

Per Magnus Nysveen, Head of Analysis, Rystad Energy

Conventional onshore crude oil production in Africa is on the decline. Although rising deep water production will help replace some of the decline onshore, overall production may be flattened by the trend, according to Rystad Energy, a Norweigian oil and gas consulting and business intelligence firm.

Per Magnus NYSVEEN, the company’s Head Of Analysis told a gathering in Lagos, that output of Hydrocarbon Liquids from South America and Asia may surpass that from Africa in the coming decade.

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Ogbele Gas For NLNG System

Ogbele Gas For NLNG System

Niger Delta Petroleum Resources (NDPR) expects to deliver first gas from its Ogbele field into the Nigeria Liquefied Natural Gas (NLNG) system by the end of October, 2012.

With this, the company will become the first minnow and the first non-European operator to supply gas to the NLNG’s 22Million Tons per Year (MMTPA) capacity system.

The NLNG is a consortium of three European oil majors: Shell, TOTAL and Eni (Chevron and ExxonMobil, the two American majors working in Nigeria, are absent) and the state owned NNPC. It is the largest Africa based, gas-focused company.

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Africa On A Three Year Rig Activity Surge

Africa On A Three Year Rig Activity Surge

Africa’s rig activity is at a three year high, even while the total number of rigs active on the continent was slightly down to 108, in September 2012, from 111 in August, according to the latest figures from Baker Hughes Incorporated. The small decline follows global trend, but Africa is on a roll.

The highest rig count for the continent in 2011 was 94, in February of that year. By December 2011 it was down to 79. The average rig count for 2011 was, indeed 78, which means that February 2011 figures were a spike. Baker Hughes figures also show that Africa’s average rig count for 2010 was 83, which was higher than 2011.

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Libya Won’t Auction Oil Blocks Until 2014

The new government in Libya is not in a rush to have a bid round of hydrocarbon acreages in the next year and half. This much can be gleaned from statements made at the Libya Oil and Gas Summit which ran in Tripoli from September 24 and 26, 2012.

An impending review of the blocks in terms of potential risks, the type of contracts, as well as the pre-qualification of bidders will keep the government’s hands full.

Libya had total proven oil reserves of 47.1 billion barrels as of December 2011, according to BP Statistical review of world energy. The country is the largest tank in Africa, and one of the ten largest globally. Some 80 percent of Libya’s proven oil reserves are located in the eastern Sirte basin, which accounts for most of the country’s oil output. Libyan oil is generally light (high API gravity) and sweet (low sulfur content).

The transitional government which took power after the Civil war had declared intention to review all the extant contracts. The new, elected government is saying the same thing. The review, they have both sought to make clear, is not with the aim of taking away acreages from any company. It’s expected to make the new rulers themselves get a grip on the environment in which they are playing.

Under Ghadaffi, there was so much opacity in contracts.

The pre-war, 1.65MMBOPD Libyan production was achieved by nine producing companies, joint ventures and consortia including the state owned Arabian Gulf Oil Company (AGOCO),  which is the country’s largest producer, with 350,000BOPD, Sirte Oil Company (another state hydrocarbon company),  Waha Oil Company (comprising the major state company NOC and ConocoPhillips, Marathon and Hess), Akakus Oil operations(NOC, Repsol and others), Melitah Oil&Gas(ENI and NOC), Mabruk(TOTAL and NOC), Wintershall, Haroungue (Suncor and NOC), Zueitina consortium(NOC, Occidental and OMV).

The new government comes across as friendlier to Western companies, and may adopt a new contractual model that is less onerous than the current provisions. But a lot is still uncertain in the new Libya.

Deregulation, Trade Unionism and Opportunism

By Adedayo Ojo

Is Julius Malema an enigma? Just maybe. Today, the 31 year old is a thorn in the flesh of the African National Congress (ANC)-led government of Jacob Zuma in South Africa. A former Zuma ally and former President of the ANC Youth League, Malema was expelled from the ruling party in February 2012 for anti-party activities. Since then, the man who was once described by Zuma as “future leader” of South Africa has become one of the harshest critics of the President and his government.

Malema featured prominently during and after the recent industrial action by workers of the Lonmin-owned platinum mine in Marikana. The protest erupted into a police action in which 34 of the demonstrating workers were shot. Malema heaped scorn on the poor handling of the crisis by Zuma and has since called for a national miners’ strike in South Africa.

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Rig Activity Paces Up In Uganda

Rig Activity Paces Up In Uganda

Uganda is experiencing its most intense drilling campaign since commercial oil was discovered six years ago, according to the country’s Chamber of Mines and Petroleum.

The major activity are in both blocks 1 and 2, the areas operated by France’s TOTAL and the Irish firm Tullow, the Chamber’s journal reported. Five rigs have been deployed on several locations in the country in 2012, the highest number in a year ever.

Appraisal drilling and well testing activities in the Kigogole, Nsoga, Ngege, Ngara area commenced in 2012. This is the precursor to field development.

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Tullow On Fourth Kenyan Well, Plans For Ethiopia

Tullow Oil Plc is drilling its third operated well and the fourth in which it is a participant, in Kenya. The company opened up the country as a possibly commercial hydrocarbon province, with Ngamia 1 oil discovery (in Block 10BB), logging 143 metres of oil pay over several zones and suspending the well at a total depth of 2,430metres at the end of June 2012. The company proceeded to spud Twiga South 1(Block 13T) on August 31, two months after suspending Ngamia. Results are expected in October 2012.

Meanwhile, Tullow was a 15% participant in the drilling of the offshore well Mbawa-1(Block L8), in the Lamu Basin, operated by Apache. The well encountered 52 metres of net gas pay, the first commercial encounter in offshore Kenya. It was plugged and abandoned in mid -September 2012.

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Lukoil Converts Independence Acreage To PSC


Russian operator LUKOIL has signed a production sharing agreement with the government of Cote d’Ivoire, covering the 450 km2 offshore block CI-524 in the Gulf of Guinea.

The agreement converts an exploration effort into a production programme: Block CI-524 represents an eastern part of block CI-401 which LUKOIL Overseas has been involved in exploring since 2006. Lukoil (which has since taken over operatorship from Vanco), holds a 60% interest, PanAtlantic (former Vanco) has 30% and state hydrocarbon company PETROCI has 10%.

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