All posts tagged farm in-farm out


Angola Says Data Checks for Bid Round Is Free

Angola’s National Agency of Petroleum, Gas and Biofuels says it has made available for free consultation the data packages related to the concessions that will be put out to tender starting in April.

“However, the geophysical data (seismic and magnetometric) do not integrate any of these packages, being obligatory to pay a fee for their acquisition”.

According to ANPG, the available packages contain the compilation of existing data, duly selected, related to the concessions to tender. The aim is to assist potential interested parties in the evaluation they are going to carry out and support them in decision making.

The agency, however stresses that companies will still have to buy the data if they want to interprete.

“The geophysical data (seismic and magnetometric) do not include any of these packages, being obligatory to pay a fee for their acquisition”.

For this tender, which started in late 2020, two data packages were prepared, taking into account the two terrestrial basins to be tendered – the Lower Congo and the Kwanza.

The Lower Congo Terrestrial Basin Data Package , relating to three blocks (CON 1, 5 and 6) consists of geological information on the 24 wells of the three blocks to bid and the remaining 33 wells of the adjacent blocks, as well as 14 reports studies that detail the stratigraphy, structural component and prospective; accessibility study (Atlas); georeferenced information (maps); and legal / legal information.

The Kwanza Land Basin Data Package , relating to six blocks (KON5, 6, 8, 9, 17 and 20) is also composed of geological information (reports and diagrams) from 47 wells, 36 of which belong to the blocks to be bid and 11 wells belonging to the neighboring blocks; 13 reports of abandonment of the main producing fields in the basin; seismic data (vintage seismic); accessibility study (atlas); georeferenced information (maps); and legal / legal information.

For both packages, ANPG stresses that geophysical data (seismic and magnetometric) are not part of these packages, so interested parties should purchase them from their partners Delta Development Management (Lower Congo) and GEOTEC and ION / GXT (Kwanza ).

“The disclosure of these packages, in a free session – which can be done in person or online – contributes to making the bidding process more transparent, allowing interested parties to know the data available before they acquire them for more accurate and accurate study and analysis “

– ANPG

Interested companies should contact the National Oil, Gas and Biofuels Agency through its website ( www.anpg.co.ao ), e-mail or even by letter, requesting an appointment for a data consultation session. These sessions will be free and can be virtual or in person, depending on the possibilities of the interested parties, but always carried out according to the rules in force in the context of the pandemic still in force.

 


Sapura’s Not Going Down with Seadrill

Malaysian driller Sapura Energy Berhad has declared that its joint venture with Seadrill, namely Sapura Navegacao Maritima SA (SNM), is not impacted by the recent Chapter 11 cases filed by several Seadrill subsidiaries operating in Asia.

In a clarification to Bursa Malaysia, the country’s Stock Exchange, Sapura  states the Chapter 11 filing by Seadrill, which is an internationally renown Scandinavian drilling company, does not involve Sapura or entities related to the corporate structure of the joint venture, stressing  that the filing has no financial impact on Sapura Energy’s business plans and financial strength.

Sapura Navegacao Maritima SA (SNM) is the only joint venture between Sapura Energy and Seadrill.

Headquartered in Rio de Janeiro, SNM is one of the leading subsea services operators in the Brazilian market, with a fleet of submarine service vessels providing support, installation and flexible pipe laying expertise to clients in the region.

The company has a workforce of more than a thousand professionals, from 21 different nationalities. SEB’s clarification was in response to a media report linking Seadrill’s Chapter 11 filing of its Asian units, to the Brazil-based SNM. In the clarification, SEB also explained that the filing has no effect on its contracts with Petrobras, which forms the main revenue for SNM; and does not trigger any cross default for the joint venture’s business financing.


Egypt Will Launch Another Bid Round Before March 2021

By Toyin Akinosho

State-owned Egyptian General Petroleum Corporation (EGPC) and Egyptian Natural Gas Holding Company (EGAS) will launch a new oil and gas exploration tender before the end of February 2021.

The tender will include offshore blocks in the Mediterranean and Nile Delta, as well as onshore areas in the Western Desert and Eastern Desert, according to Tarek El Molla, the country’s flambouyant Minister of Petroleum.

The lease sale announcement is coming barely six weeks after Mr. El Molla signed nine new agreements worth more than $1Billion with six international and Egyptian companies to explore and produce oil and natural gas in parts of the Mediterranean and Red Sea. The agreements are for the drilling of 17 new exploration wells.

El Molla said in January that three additional agreements were pending approval in the near future. The total of 12 deals targets the drilling of 23 wells in nine regions in the Mediterranean and three regions in the Red Sea, with a minimum total investment of $1.4Billion.

Egypt is a perennial organizer of lease sales. It is the largest producer and the biggest domestic consumer of natural gas in Africa. But its record in crude oil production is shabby, despite its persistent bid rounds. Last year, it produced an average of 600,000Barrels of Oil Per Day, the lowest in 40 years.


New Debt Arrangement Completes the $680Million Financing of the ANOH Project

The ANOH Gas Processing Company (AGPC), has successfully raised $260Million in debt to fund completion of its ANOH Gas Processing Plant.

The 300 Million standard cubic feet per day (300MMscfd) capacity ANOH plant, located on OML 53 in Imo State, is being built by AGPC, which is an IJV owned equally between Seplat-the dual listed company on the London and Nigerian stock exchanges, and the Nigerian Gas Company (NGC), a wholly owned subsidiary of Nigerian National Petroleum Corporation (“NNPC”).

Seplat and NGC have previously provided a combined $420Million in equity funding and the project is now fully funded.

The $260Million funding was provided by a consortium of seven banks: Stanbic IBTC Bank Plc (advisor), United Bank for Africa Plc, Zenith Bank Plc, FirstRand Bank Limited (London Branch) / RMB Nigeria Limited, The Mauritius Commercial Bank Limited, Union Bank of Nigeria Plc and FCMB Capital Markets Limited. It allows for an additional $60Million accordion at the time of completion to fund an equity rebalancing payment at that time, if considered appropriate. Funding commitments of more than $450Million were received by the company, which is a significant oversubscription and a strong sign of confidence in the project.

Following a cost optimisation programme, the AGPC construction cost is now expected to be no more than $650Million, inclusive of financing costs and taxes, significantly lower than the original projected cost of $700Million.

ANOH is one of Nigeria’s most strategic gas projects. It will help Nigeria to accelerate its transition away from small-scale diesel generators to cleaner, less expensive fuels such as natural gas for power generation.

Seplat is a leading provider of natural gas to Nigeria’s power sector, supplying around 30% of gas used for electricity generation.

 

 

 


In Senegal, Woodside Wants it All

Barely three months after pre-empting the sale of Cairn Energy’s interest in the Senegalese oilfield development and adjoining discoveries to a third party, Woodside Energy has made the same move on a similar transaction by FAR.

In mid-August 2020, the Australian explorer executed its right of first refusal to Cairn Energy’s sale of its 40% interest to LUKOIL, the Russian giant.

Last weekend, it pre-empted the sale of FAR’s i15% interest to the Indian company ONGC.

If Woodside successfully acquires both Cairn’s and FAR’s interests, its working stake in the Sangomar exploitation area will be 82%, with the state owned Petrosen holding 18%. The working interest in the remaining Rufisque, Sangomar and Sangomar Deep (RSSD) evaluation area (including the FAN and SNE North oil discoveries) will be Petrosen 10%, and Woodside 90%.

That is if the Senegalese authorities approve the transactions, as they are.

But Woodside is not there yet.

Although Cairn Energy PLC shareholders voted in favour of the sale and purchase agreement for Cairn Energy’s stakes on 23 September 2020, the transaction with FAR still depends on the outcome of a shareholder meeting, scheduled for December 21, 2020. “The shareholder meeting documentation expressly contemplated that such authorisation would cover the exercise of a pre-emptive right”, FAR says in a release.

Woodside has offered FAR the exact terms of the FAR/ONGC Transaction, including: • Payment to FAR of $45Million • Reimbursement of FAR’s share of working capital, including any cash calls, from 1 January 2020 to completion • Entitlement to certain contingent payments capped at $55Million.

Woodside says that the acquisition will be funded from current cash reserves.

Woodside CEO Peter Coleman said the acquisition of FAR’s participating interest makes the value proposition for Sangomar even more compelling. “Sangomar is an attractive, de-risked asset in execute phase, offering near-term production. The acquisition is value accretive for Woodside shareholders and results in a streamlined joint venture which will assist in our targeted sell-down in 2021”.


Indians to Take over FAR’s High Profile Assets in Senegal

By Toyin Akinosho

FAR has finally found a buyer for its high profile oil and gas asset offshore Senegal.

ONGC, the Indian state hydrocarbon company, has agreed to buy the property, which includes FAR’s entire interest in the Production Sharing Contract for the Rufisque, Sangomar, and Sangomar Deep Offshore Blocks offshore Senegal and the relevant Joint Operating Agreement (the RSSD Project).

The Sangomar exploitation project, located in these blocks, is the largest offshore crude oil development currently under construction in Africa. Phase 1 development of the project, which will develop some 250Million barrels of oil, remains on track for targeted delivery of first oil in 2023. Production from this phase is expected to be around 100,000 barrels of oil per day (BOPD).

The Australia listed minnow, which has struggled as a going concern-and has defaulted on paying cash calls on the project- in the last two quarters, says it has entered into a Sale and Purchase Agreement with ONGC (full name ONGC Videsh Vankorneft Pte Ltd), the largest E&P company of India, which has agreed to pay FAR $45Million at completion. In addition, ONGC has agreed to reimburse FAR’s share of working capital for the RSSD Project from 1 January 2020 totalling $66.58Million, payable on completion. The reimbursement is comprised of cash calls paid by FAR, including $29.60Million paid to cure FAR’s default to the Joint Venture. The Transaction also includes an entitlement to certain contingent payments capped at $55Million.

The Transaction is subject to conditions precedent, including the following:

  • The written approval of the Minister of Petroleum and Energies for the Republic of Senegal to the transfer of the Transferring Interest to the Purchaser being obtained. FAR hopes that such approval would be obtained in January 2021.
  • RSSD Project Pre-Emptive Rights – The Transaction is conditional on the waiver or non-exercise of preemption rights available to FAR’s co-venturers in the RSSD Project. FAR is issuing the pre-emption notices between November 11 and November 12, 2020, and the co-venturers have 30 days to advise if they wish to exercise their right to preempt the Transaction on the same terms and conditions as ONGC. In the event of pre-emption, FAR will receive the same consideration as from ONGC.
  • FAR Shareholder Approval – ASX Listing Rule 11 requires that FAR obtains shareholder approval in relation to the Transaction. FAR intends to convene a general meeting of FAR shareholders as soon as practicable to be held in December 2020 to consider approving the Transaction (including if the sale is the subject of pre-emption).
  • Third Party Agreement Termination – The Transaction is subject to the termination or satisfactory resolution of an agreement between FAR and a third party, details of which are currently commercial in confidence. ONGC has the discretion to waive this condition.

Cath Norman, FAR’s Managing Director, describes the offer from ONGC as representing “the best option available at this time and we trust that our shareholders will vote for this transaction”. She reinstates the well-known fact that “the market for financing and selling assets has been weak since the impact of COVID was felt in March of this year”.

If the Transaction completes, the company anticipates, “FAR will be in a strong financial position and will be relieved of its future development obligations in relation to the RSSD Project, which in the absence of a sale, FAR cannot currently meet beyond December 2020”.

FAR expects to have approximately $130Million in cash at the close of this Transaction that, Ms. Norman says,” will be used to rebuild the Company and further our other West African prospects offshore the Gambia and Guinea-Bissau”.

Having been in the RSSD project for 14 years, “it’s a bittersweet moment to be selling our stake. FAR is committed to our projects in The Gambia and Guinea-Bissau and using our deep knowledge of the MSGBC Basin to potentially explore offshore Senegal again,” Norman declares.


Angolan 2020 Onshore Bid Round Now to Open in January 2021

Angola 2020 Onshore Bid Round will officially open in January 2021 and bids must be submitted by March 10th 2021.

Nine blocks are on offer, in the Lower Congo and Kwanza Basins.

The country’s International Competitive Bid Round for oil gas licenses, announced last year, is a scheduled offering for onshore and offshore, in the period 2019-2025.

Last year, Angola’s National Agency of Petroleum, Gas and Biofuels (ANPG), awarded three blocks: 27, 28, and 29, offshore in the deepwater Namibe Basin.

This year, the bidding plans have been disrupted by COVID-19 complications.

The blocks on offer are CON1, CON 5, CON 6, KON 5, KON 6, KON 8, KON 9, KON 17 & KON 20 (See map here), located in the Lower Congo Basin and the Terrestrial Kwanza Basin.

Data available includes 2D seismic coverage of the LowerCongo Basin, a recently updated Geological Map and Database of the Onshore Kwanza Basin and a compilation of recent aeromagnetic data covering the Transition Zone and Shallow Waters of the Lower Congo and Kwanza Basins.

 

 


Africa Oil Makes $137.5Million in Seven Months, on Asset It Purchased for $519Million

Africa Oil Corp. concluded its acquisition – worth $519.5Million – for a 50% ownership interest in Petrobras Oil and Gas BV (POGBV) in January 2020.

Today, seven and half months later, it reports it has received  total dividends amount of $137.5Million since the closing of the Prime acquisition on 14 January 2020.

POGBV’s primary assets are an indirect 8% interest in oil mining lease (OML) 127, operated by Chevron, containing the Agbami Field, and 16% interest in OML 130, operated by TOTAL and contains the Akpo and Egina Fields, offshore Nigeria.

The Toronto listed minnow says it has received four dividends from Prime Oil and Gas B.V. (Prime) since the January 2020 purchase. Prime is a company that holds interests in deepwater Nigeria production and development assets.

On August 31, Africa Oil Corp. reported that Prime has distributed the fourth dividend, “a  $50Million dividend with a net payment to Africa Oil of $25Million related to its 50% interest”.

The Company has applied  $17.7Million of this dividend to pay down the BTG term loan, reducing the outstanding balance to  $176.9Million.

Africa Oil Corp. is a Canadian oil and gas company with producing and development assets in deepwater Nigeria; development assets in Kenya; and an exploration/appraisal portfolio in Africa and Guyana. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol “AOI”.

 


Africa Energy Doubles Its Stake in South African Discovery

By Jo-Jackson Mthembu

Toronto listed minnow Africa Energy Corp., says it has signed definitive agreements to increase its effective interest in Block 11B/12B offshore South Africa from 4.9% to 10%.

Block 11B/12B is the site of the Paddavissie Fairway, on which TOTAL’s huge gas and condensate discovery was made in February 2019.

TOTAL is returning for a multi-well campaign in the block, located in the rough waters offshore Cape Agulhas, from September 2020.

“Block 11B/12B offshore South Africa contains one of the most exciting oil and gas exploration plays in the world today” Garrett Soden, the Company’s President and CEO, commented.

“In anticipation of the Luiperd-1X well results expected later this year, we have agreed with Impact Oil& Gas and Arostyle to simplify and consolidate Main Street’s 10% interest in Block 11B/12B under Africa Energy,” Soden said.

Luiperd-1, suspected to be the largest prospect in Paddavissie Fairway, will be the first on TOTAL’s drilling schedule. It will be drilled by the semisubmersible rig Deepsea Stavanger, operated by Odfjell Drilling.  Two other wells are expected to follow in short order.

Africa Energy currently holds 49% of the shares in Main Street 1549 (Proprietary) Limited, which has a 10% participating interest in Block 11B/12B. TOTAL operates the block with a 45% participating interest, while Qatar Petroleum and CNR International (have 25% and 20% participating interests, respectively.

Africa Energy says it is pursuing two transactions by which will first secure the indirect financial interest held by Impact Oil & Gas Limited and then obtain an option from Arostyle Investments (RF) (Proprietary) Limited, which holds 51% of the shares in Main Street, to acquire the entire Participating Interest after drilling the Luiperd-1X well. “Following the Impact Transaction and exercise of the Arostyle Option, subject to various consents and approvals, Africa Energy will directly hold the Participating Interest, and both Impact and Arostyle will be significant shareholders of Africa Energy”.

 


Senegal Expands its Stake in Sangomar Oilfield Project

Petrosen has decided to increase its stake in the Sangomar Exploitation Area from 10% to 18%.

Senegal’s state hydrocarbon company is now required to reimburse the other venturers in the Rufisque, Sangomar and Sangomar Deep (RSSD) acreage their pro-rata share of the 8% of expenses relating to the Sangomar Exploitation Area incurred since 8 January 2020.

“As a result, FAR’s stake in the Sangomar Exploitation Area decreases from 15% to 13.67%”, FAR says in a release.

Woodside Energy, the operator, holds 31.89%; and Cairn Energy has 36.44%. Russian giant Lukoil agreed to buy out Cairn Energy’s interest, but Woodside has invoked the right of first refusal. Woodside will now purchase Cairn’s 36.44% by paying $300Million upfront, plus working capital adjustments, including reimbursement of Cairn’s development capital expenditure incurred since 1 January 2020.

Work on the Sangomar Field Development commenced in early 2020 and first oil production is targeted in 2023.

FAR, an Australian junior, has struggled to pay its part of the cost of the project on an ongoing basis and has stated, time and again, that it is willing to sell some or its entire equity.

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