All articles in the Farm in, Farm Out Section:


Angolan Independent, Somoil, Purchases TOTAL’s Interest in Block 14

By Sully Manope

TOTALEnergies has sold its non-operated interest in Angolan deepwater Block 14 to Somoil, the Angolan independent. The French major says it “signed an agreement to sell, jointly with Inpex, the Angola Block 14 B.V. to the Angolan Company Somoil”.

The transaction is subject to the approval of the Angolan authorities.

TOTALEnergies Holdings International B.V. (50.01%) and Inpex Angola Block 14 Ltd (49.99%) collectively hold a 20% interest in Block 14 in Angola and a 10% interest in Block 14K.

Block 14 and Block 14K are operated by Chevron.

“The offshore blocks have been producing since 1999. Net production from Angola Block 14 B.V (to TOTALEnergies and Inpex), was 9,000 barrels of oil equivalent per day in 2021”, TOTALEnergies says in a release.

“By divesting this interest in mature fields, TOTALEnergies is implementing its strategy to highgrade its oil portfolio, focusing on assets with low costs and low emissions” said Henri-Max Ndong-Nzue, Senior Vice President Africa of TOTALEnergies Exploration & Production.

Somoil is the biggest and most active Angolan homegrown upstream operator.

“TOTALEnergies remains the number one energy player in Angola, through its leading operating position in deep-offshore, its interest in Angola LNG and in a first solar power plant project, Quilemba Solar, located in the southwest of the country.”


The Market is Thrown Open to the African Born Operator

Or is it?

Angola’s just concluded bid round exercise favoured, mainly, the country’s homegrown independents.

Nigerian owned companies are expected to be the primary beneficiaries of the ongoing divestment of 22 oil mining leases (OMLs) by AngloDutch Shell and ExxonMobil.

The Egyptian founded Pico-Cheiron recently finalized the $926Million purchase, along with the London listed Cairn Energy, of Shell’s equity in 13 onshore concessions and the Badr El-Din Petroleum Company (BAPETCO). in Egypt.

On the surface, it would seem the market has been flung open for homegrown African owned independents to grab E&P assets being sold by the state and being divested by the majors.

Believe us when we reiterate: There is a growing number of African born operators who want to put in sweat equity develop the asset and, in the process, build capacity.

But there’s a tendency we also see. The African independent can be more easily taken by the rentier instinct, and skew its work towards extracting enough to keep company owners financially comfortable and the rest of the system: tax to the state, reserves addition, increased output, community improvement, poorer.

For the most part since our founding in November 2001, this trade journal has eulogized the African homegrown independent.

Now we wonder if the concept is not overrated.

We ask you to connect with us as we interrogate this idea in our copies.

The Africa Oil+Gas Report is the primer of the hydrocarbon industry on the continent. It is the market leader in local contextualizing of global developments and policy issues and is the go-to medium for decision makers, whether they be international corporations or local

entrepreneurs, technical enterprises or financing institutions.

It has been published by the Festac News Press Limited since November 2001, AOGR is a paid subscription based monthly, hardcopy and pdf publication delivered around the world. Its website remains www.africaoilgasreport.com and the contact email address is info@africaoilgasreport.com Contact telephone numbers in our West African regional headquarters in Lagos are +2348130733523,+2347062420127, +2348036525979 and +2348023902519.


The Shell Nigeria Divestment Update: NNPC, Government and Sundry Complications

By Toyin Akinosho

UK Major Deals with the Nigerian Risk

Shell, the European major, was in discussion in London, UK, in the first week of December 2021 with the five companies remaining on the queue to purchase its equity in 18 Oil Mining Leases (OMLs) in Nigeria’s onshore and shallow water terrains.

The price tag to purchase this bulk is…

Please read more.

 


Sonangol Completes Sale to Tranfigura

Angola’s state hydrocarbon company Sonangol has announced the completion of the sale of its shares in Puma Energy to Transfigura.

Sonangol’s release says:

Sonangol and Pumangol are honoured to announce the completion of the sale process of its shares in Puma Energy to Trafigura and the acquisition of Pumangol, as announced on 16th April, this year. The conclusion of this process followed the procedures and regulatory approvals required and represents Sonangol’s official departure from the shareholding structure of Puma Energy, with which Pumangol and all its assets become wholly and solely owned by Sonangol.

Sonangol’s exit from Puma Energy’s shareholding structure and the acquisition of Pumangol represent the achievement of a strategic objective of Sonangol and a firm step in the company’s Privatization Program, as well as the acquisition of a reinforcement to its core business of a profitable company with valuable assets.

For Pumangol, the conclusion of the acquisition process represents an Angolanization shareholder, leadership and staff. It’s the beginning of a new journey where the legacy of the Puma Energy era, grounded in its experience, will continue to keep Pumangol vigorous and efficient, adding quality and value for its shareholder, and continuing to provide an excellent service and a range of high quality products to its customers.


Taiwan’s CPC Farms Into SL10B13Block in Somaliland

Genel Energy plc has announced it has signed a farm-out agreement relating to the SL10B13 block, Somaliland, with OPIC Somaliland Corporation (‘OSC’), with all its share of future capital investment coming from CPC Corporation, Taiwan, the state-owned enterprise of Taiwan. Under the agreement, OSC receives a 49% working interest in the block for a cash consideration of 49% of all Genel’s historic back costs, plus a cash premium. Genel previously held a 100% working interest, and will continue as operator.

“Somaliland has significant underexplored potential, with geology analogous to Yemen”, Genel says in a release. “The SL10B13 block is highly prospective, with multiple stacked prospects with over 5Billion barrels of prospective resources identified from the interpretation of the 2D seismic data acquisition completed in January 2018”.

Our editors note that the claim: “5Billion barrels of prospective resources”, does not mean that there is 5Billion barrels of crude or condensate or their equivalent in natural gas sitting in the reservoirs.  “Prospective resources” are just that: “prospects”. They are not even yet stock tank oil in place or stock tank gas in place, let alone reserves.

Genel’s statement says that the field partners will now work together to plan exploration drilling in this block, with an aim of drilling a well in 2023. It is currently estimated that a well can be drilled for a gross cost of c.$40Million.

“The prospective SL10B13 area is c.150 kilometres from the port at Berbera, offering a route to international markets”, the company explains, adding: “The agreement has been approved by the Government of Somaliland”.

 

 


ExxonMobil Signs Off to Savannah, Leaves Chad and Cameroon

Savannah Energy’s announcement that it had signed a Share Purchase Agreement (SPA) with ExxonMobil and its affiliates (Mobil Corporation, ExxonMobil International Holdings, Inc., and Esso Exploration Holdings), over their entire upstream and midstream asset portfolios in Chad and Cameroon, confirms the speculations that the American major was divesting from the Chad Republic, as well the associated Chad Cameroon pipeline project.

Savannah will take over these assets.

The UK-listed Savannah had also separately signed an SPA with the Malaysian state firm PETRONAS (E&P) Overseas Ventures SDN. BHD. 

The SPAs both have an economic effective date of 1 January 2021.  

Completion of both agreements with (1) ExxonMobil companies and (2) PETRONAS, would result in Savannah acquiring a 75% controlling interest in the Doba Oil Project and an effective c. 70% indirect controlling interest in the Chad-Cameroon export transportation system. The remaining 25% interest in the Doba Oil Project is held by the national oil company of Chad, SHT Petroleum Chad Company Limited (“SHT”). The remaining 30% interest in the Chad-Cameroon export transportation system is held indirectly by affiliates of SHT together with the Republic of Chad and the national oil company of Cameroon, Société Nationale Des Hydrocarbures. 

In 2020 the Doba Oil Project produced an average gross of 33,700 Barrels of Oil Per Day (BOPD) and the Chad-Cameroon pipeline transported a gross of 129,200BOPD. 

Due to their size and nature, both agreements individually constitute reverse takeover transactions pursuant to AIM Rule 14 and, accordingly will be subject to, inter alia, shareholder approval. Savannah intends to publish the associated AIM Admission Document, which will contain a notice of general meeting, on or around 17 December 2021, following which point the Company would seek restoration to trading on AIM of its ordinary shares. Please refer to the Company’s earlier announcements today at 4:30 p.m. for the respective Schedule Four disclosure for both acquisitions. 

Andrew Knott, Savannah’s Chief Executive Officer, says he is delighted about the signature of SPAs to acquire control of the upstream and midstream assets of Exxon and PETRONAS in Chad and Cameroon. “These assets have generated billions of dollars of critical tax revenues for their host countries and free cash flow to their owners since the onset of first oil production in 2003”, he contends in the release. “Further, under our stewardship, we expect these assets in aggregate to generate positive free cash flow and fiscal revenues for Chad and Cameroon for a further twenty-five plus years. For Savannah, these deals are expected to see our production levels and reserve base more than double. Further, we see strong potential to significantly increase upstream production and midstream throughput volumes from current levels through incremental investments”.


PetroSA Exercises Its Pre-emptive Rights in Ghana’s Jubilee Field

South Africa’s state hydrocarbon company PetroSA, the Holding Company of PetroSA Ghana Limited (“PGL”), a 100% owned subsidiary, exercised its pre-emptive rights on the Occidental Petroleum divestment of its interests in the Jubilee and TEN fields, offshore Ghana. 

PGL holds exploration and production assets in offshore Ghana. The transaction is still subject to approval by the regulatory authorities.

“This divestment represents an opportunity for PetroSA to progress its equity participation in line with its investment strategy on producing fields in Africa”, PetroSA says in a release published on its website.

“This transaction is envisaged to strengthen and leverage PGL to grow its reserves and production by pursuing opportunities to increase its interests in its current assets and expand its asset portfolio in Ghana and elsewhere in West Africa”.​


Gabonese Authorities Approve TOTAL’s Divestments of Non-Operated Assets

TOTALEnergies has erased some more Gabon Assets from Its portfolio.

The French major says it has received the approval of Gabonese authorities and has thus “closed its agreement to divest to Perenco Oil and Gas Gabon the Cap Lopez Terminal and non-operated assets of its 58%-owned affiliate TotalEnergies EP Gabon”.

With this transaction, in an amount of $350 million before final adjustment, TOTALEnergies EP Gabon is divesting its interests in seven mature offshore fields operated by Perenco Oil and Gas Gabon, along with its interests and operatorship in the Cap Lopez oil terminal, to Perenco Oil and Gas Gabon. The divested assets’ production stood at 8,400 barrels of oil equivalent per day for the first three quarters of 2021.

“This transaction is aligned with TOTALEnergies’ strategy to enhance its portfolio by divesting mature, high break-even fields.

The company will now focus on offshore.

“TOTALEnergies EP Gabon is refocusing on its operated offshore assets in the Anguille and Torpille sectors and remains a committed oil industry player in Gabon,” said Henri-Max Ndong-Nzue, President of TOTALEnergies EP Gabon.

 


‘Egypt About to Be the Most Attractive Investment’ in Apache’s Global Portfolio

The Egyptian Parliament has approved the modernization and consolidation of the country’s Production Sharing Contracts (PSCs) with Apache, the American independent.

Those PSC contracts are agreements with the Ministry of Petroleum and Mineral Resources (MOP) and the Egyptian General Petroleum Corporation (EGPC), but the Parliament and the President have to approve.

The story is important. Apache, a subsidiary of APA Corporation, is the largest crude oil producer in Egypt.

“The PSC now goes to the desk of Egyptian President Abdel Fattah El-Sisi for his ratification, which is the next and final step for the revised PSC terms to take full legal effect”, APA says in a release. “Once this has occurred, APA will provide additional details of the PSC changes and updated guidance regarding the financial impacts of various terms, APA’s revised investment plans and the resulting changes to the near-term production growth profile”, the company explains.

“This is the culmination of nearly two years of work with Egypt’s Ministry of Petroleum and Mineral Resources and EGPC to modernize the economic and operational terms of our PSC. The changes will return Egypt to being the most attractive investment opportunity in APA’s entire global portfolio,” said John J. Christmann IV, APA’s CEO, and president. “In anticipation of the approval, we had already increased our drilling rig count to 11 in 2021. Upon final approval, our investment activity will continue to grow into 2022, returning Egypt to a growing production profile and helping to advance the country’s position as a regional energy hub.”

The new PSC will consolidate the majority of the concessions operated by APA’s subsidiaries operating in Egypt (Apache) into a single new concession, which will account for more than 90% of the company’s gross production volumes in Egypt. The changes simplify the contractual relationship with EGPC and include provisions to create a single cost recovery pool, facilitate increased recovery of prior investment, adjust cost recovery, and production sharing percentages, and refresh the term length of both exploration and development leases. The Apache subsidiary that will become the sole contractor under the PSC is owned by an Apache-operated joint venture owned two-thirds by Apache and one-third by Sinopec.


Mozambique Launches New Bid Round for Rovuma, Angoche and Other Basins

Mozambique’s National Institute of Petroleum NIP has launched the country’s ‘Sixth Licensing Round for the Concession of Hydrocarbon Exploration and Production Areas’, the regulatory authority says in a statement.

For this purpose, 16 new areas were defined, distributed by 4 distinct regions, five of which are located in the Rovuma Basin, seven in Angoche, two in the Zambezi Delta, and two in Save, totaling more than 92,000 km².

This tender, which has a term of approximately 10 months, from the launch date until the results are announced in October 2022, comes about three months after the approval of the new Strategy of Concession of Areas for Exploration and Production of Hydrocarbons, which provides the basis for ensuring continuous and systematic exploration of hydrocarbons in the Mozambique and Rovuma basins, promoting national and foreign investment, as well as reducing the time between the holding of public tenders for the concession of areas to 2 years, as opposed to 3 years under previous legislation.

“With this tender, we intend to assess the national petroleum potential and the resources discovered will be made available to society to drive Mozambique’s socio-economic development,” said Carlos Zacarias, Chairman of the INP. 

Those interested in taking part in the online bid launch ceremony, which opens at 10.00 am on 25 November 2021, can do so via the following links: 

bit.ly/3r4g9sg or https://events.zoom.us/ev/APxkFsBDYTwnPPnPbIScbieIBFWyrMjp2BszP0KqkIlH6TNUoam6K50gP8cdkczra15n2UA

For any further information, please contact the National Petroleum Institute, Rua dos Desportistas Nº.259, Maputo City, on 21248300 or 839511000. You can also write to comunicacao@inp.gov.mz for general questions and inquiries relating to the Sixth Round, please direct your questions to 6th.concurso@inp.gov.mz

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