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Ado Oseragbaje Takes Charge at Heritage Oil in Nigeria

Heritage Oil Limited has announced the appointment of Adogbeji (Ado) Oseragbaje as its new Chief Executive Office with effect from the 14th of July 2022.

He will also lead HOL’s Nigerian operations as Chief Executive Officer of Heritage Energy Operational Services Limited.

“Ado brings a wealth of experience to the role that will be of huge benefit to the company and its stakeholders, particularly in Nigeria”, says Michele Faissola, Chairman of HOL. “We are delighted to appoint a person of Ado’s calibre as our new Chief Executive Officer.”

Oseragbaje “brings twenty-five years of global leadership experience in the oil and gas business and joins us from Baker Hughes where he was Vice President covering Sub-Saharan Africa”, according to the company statement. “He has previously held senior positions, including at General Electric and Schlumberger, across the world”.

HOL’s new CEO holds a Master’s degree in Petroleum Engineering from Imperial College London and a Diploma in Real-Time Oilfield Project Management from Heriot-Watt University Scotland. “I am excited to join the Heritage team”, he says. “The Company has a diverse portfolio, world class assets, the potential for future expansion and an ambition to join in addressing the dual challenge of energy security and sustainability. I think we are a great fit and I’m looking forward to this opportunity.”

Naeem – Atiq Sadiq, has now stepped down from his current role as Chief Executive Officer of HOL and HEOSL but will remain with the company for an interim period to facilitate a smooth handover to Oseragbaje.

Heritage Oil was founded in Canada in 1992 and was acquired by Energy Investments Global Ltd in 2014.



Egypt Raises Diesel Price to Curb $3Billion Subsidy Bill

The Egyptian government has raised the price of diesel for the first time in three years, hoping to reduce its subsidy bill by 13% as global energy prices head north.

The action effectively adds diesel to the basket of petroleum products whose prices the government has raised, in the context of the ongoing global energy crisis.

Egypt is one of Africa’s largest energy-subsidy economies. The government subsidises piped natural gas to households; prices of gasoline and cost of diesel.

Egypt’s pricing committee has routinely raised the price of gasoline in the last 18 months, but it had not included diesel: the main fuel used in public transportation as well as transportation of commodities.

Egypt uses diesel in transportation than it uses gasoline contrary to many other countries.

The fuel pricing committee increased the price of diesel to 7.25 Egyptian Pound (EGP7.25) per litre from EGP6.75, as well as hiked petrol prices by up to 10%, the Petroleum Ministry said in a statement The new prices went into effect immediately and will remain unchanged until the beginning of the fourth quarter 2022.

North Africa’s largest economy and the Arab World’s most populous state had absorbed the extra cost of diesel after global fuel prices shot up on the back of the Russia-Ukraine war — and was facing an annual diesel subsidy bill of $3.3Billion EGP 63Billion, according to Mostafa Kamal Madbouly, the country’s Prime Minister. A liter of diesel had cost EGP 11 on average since April 2022, of which EGP 4.25 was subsidized by the government, costing it $285Million (EGP 5.4Billion), Mr. Madbouly explains, adding that the little hike should reduce the state’s subsidy bill to $2.9Billion (or EGP55Billion).

Gasoline (petrol) prices also rose as follows

95-octane is EGP 10.75 per litre, up 10.3% from EGP 9.75;

92-octane is EGP 9.25 per litre, up 5.7% from EGP 8.75;

80-octane is EGP 8.00 per litre, up 6.6% from EGP 7.50.

Mazut fuel oil prices rose by 8.7% to EGP 5,000 per ton for all industries except food and electricity producers, who continue to be charged EGP 4,200 per ton.

This is the sixth consecutive quarter petrol prices have risen. The price at the pump is now up 23-28% since last April, depending on which grade you’re putting in the tank.

But the country has a dilemma of declining value of its currency against the American dollar, meaning that prices, even as they have adjusted, remain far below global market levels. What’s more: foreign reserves have plummeted to 5-year lows, as subsidy spending surges.

“These new price increases were substantially less than the 13% fall in the value of the Egyptian pound against the US dollar over the previous quarter (from $1=E£16.1 to $1=E£18.5)”, reports MEES, a industry trade journal which publishes weekly analyses of the Middle East’s oil and gas developments. “As such the latest prices are actually lower in dollar terms than those three months earlier. Indeed, in dollar terms the latest gasoline prices are only fractionally higher than those two years earlier at the height of the COVID 19-induced slump in oil demand when global oil prices were well under half current levels”, MEES says.


Mozambique Inks Agreement for Multi-Client Seismic Data in Under-explored Basin

Mozambique’s National Petroleum Institute has signed an exclusive agreement with London-based Geopartners to perform a new multiclient, three dimensional (3D) seismic survey over the country’s offshore Angoche Basin.

“The project will comprise acquisition of a minimum 12,000 sq. km of 3D Multi-Client data over Blocks that will be awarded following the closure of the current 6th Licensing Round,” Geopartners says in a release.  “We are honoured to have concluded this new Agreement with INP to acquire this very large 3D seismic survey in the relatively underexplored but highly prospective Angoche Basin”.

The geophysical company says it will apply acquisition and imaging techniques to improve illumination of complex structures to help reduce exploration risk and support potential fast-track production and development. “Pre-acquisition permitting is underway, with the six-month survey due to start early next year”, the release explains. “Early processed results should be issued by year-end 2023”.

Sixteen new licence areas, distributed over four offshore basins are on offer for Mozambique’s ongoing 6th Licencing Round.  The INP has made available 2D and 3D seismic datasets for multi-client licensing, covering 22,700 sq. km of 3D seismic, 41,900 km of offshore 2D seismic and 18,700 km of onshore 2D seismic in the Rovuma, Angoche and Zambezi basins. Geopartners says it is the data release agent for these surveys.



A $2Billion Fertiiser Plant Planned for Angola, with Funds from Afreximbank

A consortium of Angolan companies plans to invest $2.2Billion in an industrial fertiliser complex expected to be completed in 2026.

Grupo Opaia SA, a large, indigenous Angolan enterprise, is driving the project, with Sonagás, a subsidiary of the state hydrocarbon company Sonangol, as key partner.

The facility, designed to produce granulated urea, is the first unit of its kind built in Angola and southern and central Africa, according to a statement from the promoters.

The project will be funded by a consortium of banks led by Afreximbank, which will disburse the loans over the nearly four years of construction of the complex, due to be concluded in the third quarter of 2026, Grupo Opaia says in a release

The factory is to be sited in Soyo, a city located at the mouth of the Congo River, which also hosts the Angla LNG plant. It will have the capacity to produce 3,500 tonnes of urea a day, supplying the domestic market and plugging the deficit of 1,200,000 tons of fertiliser in the Southern African region, including South Africa, Botswana, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Democratic Republic of Congo, Seychelles, Swaziland, Tanzania, Zambia and Zimbabwe.

Some of the output will be exported outside the African continent, to countries in Latin America, Grupo Opaia explains.



Panoro Finally Exits Nigeria

Three years after it first announced a deal to sell all its Nigerian assets, Panoro ASA has finally got it done. The Nowegian minnow has completed the sale of its fully owned subsidiaries Pan-Petroleum Services Holdings BV and Pan-Petroleum Nigeria Holding BV to PetroNor E&P ASA for an upfront consideration of $10Million plus a contingent consideration of up to $16.67Million based on future gas production volumes.

The Divested Subsidiaries hold 100% of the shares in Pan-Petroleum Aje Limited (“Pan Aje”), which participates in the exploration for and production of hydrocarbons in Nigeria and holds a 6.502% participating interest, with a 16.255% cost bearing interest, representing an economic interest of 12.1913% in Offshore Mining Lease no. 113 (OML 113). Following completion of the Transaction Panoro has no operational presence remaining in Nigeria.

“The upfront consideration of $10Million is expected to the paid within fifteen business days via the allotment and issue of 96,577,537 new PetroNor shares”, the company explains in a release. “The volume of PetroNor shares issued to Panoro has been determined with reference to the contractually determined 30-day volume weighted average price (VWAP) of PetroNor’s shares which are listed on the Oslo Børs with the Ticker “PNOR””.

Once the Consideration Shares are issued and received, Panoro will implement steps to distribute these new PetroNor shares to Panoro shareholders as a dividend in specie. Panoro will communicate separately in due course the timetable for this process and key dates.

Following receipt of the Consideration Shares, Panoro will temporarily hold a 6.78% shareholding with voting rights in PetroNor, until such Consideration Shares are distributed in specie to Panoro shareholders.


Angola Inaugurates Luanda Refinery Expansion

President Joao Lourenco has made increased hydrocarbon refining capacity a priority

Angola has inaugurated an extension unit on the Luanda refinery, which quadruples the production of petroleum products at the plant.

It Is the first of three ongoing refinery projects in the country.

\Italian major ENI led the revamp for Sonangol, the Angolan state hydrocarbon company.]{_:(*H

The project bumps up gasoline output from 100,000tons to 450,000 tons per year.

“The Combined Cycle has been rehabilitated so as to be fed by hydrogen produced by the new Platforming unit”, ENI says in a statement. “Power is now produced recycling gas with a net reduction of pollutant emissions”.

ENI and Sonangol signed a Memorandum of Understanding to give continuity to the support to expansion and modernization activities the refinery of Luanda.

“The main highlight is increasing the production capacity of refined petroleum products, such as diesel and gasoline. The situation in the country, which has significant crude oil production but until recently had little capacity to transform it, was somewhat incomprehensible,” Angolan President Joao Lourenco, said at the inauguration.

Angola produces only about 20% of the refined products it needs, despite being one of Africa’s top two crude oil producers.

President Joao Lourenco has made increased hydrocarbon refining capacity a priority. Construction of the 60,000BPSD refinery at Cabinda is ongoing, under a joint venture agreement with Sonangol, according to a report in the April 2022 edition of the Africa Oil+Gas Report.  “Phase 1 of that project is expected to include a 30,000BPSD CDU with a desalter, kerosene treatment and ancillary infrastructures including a conventional buoy mooring system, pipelines and storage facility for over 1.2Million barrels. It is due to be commissioned before the end of 2022. Phase 2 and 3 will upgrade the plant to a full conversion refinery with additional 30,000BPSD capacity, a new catalytic reformer, hydrotreater and catalytic cracking unit”, the report notes.

Also ongoing is the construction of the 100,000BPSD grassroots Soyo refinery in Zaire Province. The contract was won by the US company Quanten Consortium, in March 2021, under a Design, Build, Own, and Operate a tank farm and marine terminal for feedstock (including crude oil) delivered to and products exported from the refinery

Meanwhile, ENI said of the upgrade Luanda refinery: “The modernization and expansion project is based on a commitment taken by Eni with the Government of Angola, and leverages ENI’s know-how and expertise and its long cooperation with Sonangol. The project has had a positive impact in job generation and provided training opportunities for over 100 employees of Sonangol who benefitted from training by ENI in Milan, Sannazzaro, Livorno, Taranto and Luanda”.

Morocco Calls for Expressions of Interest for EPC for Seven Solar Parks totalling 260 MW

The Moroccan Agency for Sustainable Energy (MASEN) has launched a call for expressions of interest for the signing of engineering, procurement, construction (EPC) contracts for seven solar photovoltaic plants with a combined capacity of 260 MW.

Procurement engineering and construction (EPC) service providers have until 30 October 2022 to apply.

The European Investment Bank (EIB) is financing the programme to the tune of €129Million.

The seven solar photovoltaic plants are divided into two lots and they are part of its Noor Atlas solar programme.

The first (larger) one is for the construction of five plants in Ain Beni Mathar (42 MW) and Bouanane (30 MW) in the Oriental region, in Outat el Haj (36 MW) and Enjil (42 MW) in the Fez-Meknes region, and in Boudnib (36 MW) in the Drâa-Tafilalet region.

The second is the Tan-Tan solar photovoltaic plants in the Guelmim-Oued Noun region and the Tata plant in the Souss-Massa region. The two solar parks will each have a capacity of 36 MW.

Morocco’s Law 38-16 provides for the transfer of the renewable assets of the National Office of Electricity and Drinking Water (ONEE) to MASEN. It is within this framework, that the call for tenders launched today by MASEN will enable the selection of the constructor(s) (EPC) from among the eight pre-qualified companies/consortiums”, the Moroccan public body states.

Companies interested in MASEN’s call for expressions of interest have until 30 October 2022 to submit their bids. The Noor Atlas programme implemented by Onee aims to develop solar energy in remote areas of Morocco, in line with the kingdom’s objective of increasing the share of renewable energy to 52% by 2030.

The EIB says the Noor Atlas solar programme will help to reduce energy dependence on fossil fuels. The construction of this infrastructure will also create new jobs in a very dynamic sector. Above all, the programme will enable Morocco to diversify its electricity mix. According to MASEN, this North African kingdom has an installed capacity of 10,627 MW. Only 37% of this capacity comes from renewable sources, i.e. 3 934 MW.

To access the tender, click here.



BW Energy Reports High Production Cost in Gabon

The Norwegian junior, BW Energy has reported gross production from the Tortue field offshore Gabon, averaged approximately 10,700 barrels of oil per day in the second quarter of 2022, amounting to a total gross production of approximately 975,000 barrels of oil for the period and in line with expectations.

But a key data in the company’s operational update is that “production cost (excluding royalties) was approximately $35 per barrel”, in the subject quarter.

BW Energy does not go any length to explain the reason for such a high number, but it notes that “the overall production cost includes approximately $1Million related handling of the COVID 19 pandemic in the period.

“Second quarter revenue is expected to reflect approximately 32,500 barrels of quarterly Domestic Market Obligation (DMO) deliveries with an under-lift position of around 247,000 barrels at the end of the period”, the company explains.

There were no BW Energy liftings from the Gabon operations in the quarter.  “BW Energy had a cash balance of $123Million at 30 June 2022, compared to $111Million at 31 March 2022. The increase is due to the previously communicated April payment of $114Million for the Company’s March lifting, offset by continued investments in the Hibiscus / Ruche development project.

At the start of the period, the Company had commodity price hedges for a remaining total volume of 1.04Million barrels for 2022 and 2023, of which 37% is for 2022, BW Energy notes. “These were a combination of swaps and zero-cost collars that will allow for future cash flow stability for ongoing development projects. BW Energy has recognised unrealised crude oil hedge losses in the amount of $4.1Million for the second quarter”.

NNPC Gets a Court Injunction Against ExxonMobil Sale of its Nigerian Assets

A Federal High Court in Abuja has fixed, for July 15, 2022, the hearing of a motion against the sale of shares of ExxonMobil’s Nigerian unit to any third parties.

The court, presided over by Justice S. B. Belgore, had on July 6, 2022, granted an injunction sought by Nigerian National Petroleum Company (NNPC) Limited, restraining Mobil Producing Nigeria Ltd and Mobil Development Nigeria Plc from selling, trading, allocating, transferring, or disposing of their shares in their interests covered by or connected to the Joint Operating Agreement between them and the NNPC.

The order restrains “sale of assets covered in Oil Mining Lease 68, Oil Mining Lease 69, Oil Mining Lease 70 and Oil Prospecting Licence 94, to anybody, person (s), company, consortium or entity howsoever described pending the determination of the claimant/applicant’s motion filed on the 5th of July or when the judicial tribunal is duly constituted and can make interim preservation orders.”

NNPC has stepped up, in public, its determination to take over the subject ExxonMobil assets since Seplat Energy Plc, Nigeria’s largest homegrown, private sector led energy company, announced in February 2022, that it had entered into an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited (“MPNU”) from Exxon Mobil Corporation, Delaware.

PetroNor Expects to Complete Aje Field Purchase in Two Weeks

The transaction has gone far beyond merely buying out Panoro’s interest

Norwegian minnow PetroNor E&P ASA has announced the seventh extension of the long stop date on its Aje field transaction.

This time the extension is shorter than a month: from 30 June 2022 to 15 July 2022. The company expects the Nigerian authorities to have sanctioned its purchase of interests in the Oil Mining Lease (OML) 113, which hosts the Aje gas and condensate accumulation in shallow water, off western Nigeria.

“Most CP’s (conditions precedent) have been satisfied or waived and the companies are initiating the final steps towards completion”, PetroNor says in a release. PetroNor expects conclusion of the outstanding matters and the subsequent closing with Panoro to commence within 14 days

The initial transaction announcement had  simply noted, in late 2019, it was PetroNor’s acquisition of Panoro Energy’s 6.5% interest in the asset, but  PetroNor had sought to have more stake in the overall asset and accompanying development project.

After several announcements of “extension of long stop dates”, PetroNor provided, in a May 2022 statement, a far deeper insight into the deal (which explains why the approval from the authorities had appeared to drag). The company said: “as an interim step towards completion of the transaction, PetroNor and the OML 113 Operator, Yinka Folawiyo Petroleum (YFP) have executed amendments to agreements for the formation of the jointly owned Aje Production, originally signed on 5 December 2019.

“The amendments provide for YFP’s contribution to Aje Production being limited to the shareholding in the YFP DW company. As a consequence, PetroNor’s ownership will be increased to 52% and Aje Production will hold a 15.5% participating interest and an economic interest in the order of 38.755 % in OML 113 during the majority of the project period. YFP has undertaken to align its voting rights with Aje Production’s objectives in the development of the Aje field”.



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