All posts tagged farm in-farm out


Angola´s Indigenous Companies Dominate Bid Round, Propose $1Billion Investment

Final official results are expected to be announced on August 25th, 2021.

A total of 16 companies, of which 13 are Angolan and three foreign, submitted 45 investment proposals for the exploration of oil blocks in the Lower Congo and the Kwanza basins, as part of Angola’s 2020 bidding process.

The tenders expressed a total proposed investment sum of over $1Billion, the National Oil, Gas, and Biofuel’s Agency (ANPG)says.

Nine onshore oil and gas blocks are on offer in the round. 

Companies that formalized their interests include Monka Oil, Brightoil, Mineral One, PRODIAMAN, Alpha Petroleum, Sonangol P&P, MTI Energy, Tusker Energy, Somoil, AIS, PRODOIL, UPITE Oil Company, Simples Oil Group, Service Cab, Omega Risk Solution, and Intank Group. 

“The ANPG, backed by promising data about its onshore acreage, is seeking to replicate past success borne by Angola’s prolific offshore fields. The onshore sedimentary basins on offer, – namely, the Lower Congo and Kwanza – have long been home to world-class hydrocarbon discoveries”, the regulator claims in a release.

The competition’s Jury was made up of HermenegildoBuila (Director of Negotiations at ANPG), who presided over it, Carmen Canjungo (for the Ministry of Mineral Resources, Oil and Gas), and Airton Lucas (for the Ministry of Finance).

“From the initial data at our disposal, we believe strongly in the potential of the nine blocks on offer. We look forward to finding the right partners for exploring them at the end of this process. It is our fervent hope that these blocks will play an important role in increasing Angola’s oil output in the future,” says Natacha Massano, ANPG’s Executive Director and board member in charge of negotiations.

Early onshore exploration activities in Angola have led to the discovery of approximately 13 commercial-sized oil fields and one natural gas field, with reserves ranging in size between 5 and 40Million barrels of oil.

This tender is only yet another licensing round in line with Presidential Decree 52/19, which foresees yearly bid rounds until 2025. Now, all proposals will be scrutinized by ANPG’s technical teams. Final official results are expected to be announced on August 25th, 2021.


It’s Complicated: San Leon Not Contemplating Acquiring Midwestern Oil & Gas

AIM listed San Leon has confirmed ongoing discussions with (the Nigerian independent) Midwestern Oil & Gas about acquiring Midwestern’s indirect interest in the Oil Mining Lease (OML) 18, an onshore acreage operated by Eroton.

“At this stage, heads of terms for such a transaction have not been agreed.  Any transaction would involve San Leon acquiring the outstanding shares not already owned by San Leon in relation to Midwestern Leon Petroleum Limited (MLPL)”, San Leon says in a release, and then it adds:

“San Leon is not contemplating acquiring Midwestern”.

It says that it is considering making further debt and equity investments in Energy Link Infrastructure (Malta) Limited (ELI), in addition and connected to any acquisition of Midwestern Leon Petroleum Limited MLPL.

ELI is the vehicle through which San Leon, Midwestern, and Eroton are constructing an alternative pipeline and other evacuation facility to export crude produced in OML 18, whose production suffers significant losses in evacuation through the Nembe Creek Trunk Line. “The acquisition by San Leon of the outstanding shares in Midwestern Leon Petroleum Limited not already owned by San Leon would constitute a reverse takeover under rule 14 of the AIM Rules for Companies (the “AIM Rules”), San Leon says.

And this is where the confusion in the Nigerian press lies: Midwestern Oil & Gas (MOG) is not Midwestern Leon Petroleum Limited (MLPL). The stories in the Nigerian press have confused the two. MLPL is part of the structure through which San Leon holds its current 10.58% indirect economic interest in OML 18.  San Leon currently has a 40% equity interest in MLPL.  MLPL has a 100% equity investment in Martwestern Energy Limited (Martwestern), which in turn has a 98% economic interest in Eroton Exploration and Production Company Limited (Eroton), which holds a 27% working interest in OML 18 and is its operator.

San Leon and Midwestern are in discussions for the Company to acquire the remaining 60% equity interest in MLPL from Midwestern.

“The consideration for this, and other matters, would be satisfied by the issuance of a substantial number of new ordinary shares in San Leon to Midwestern, such that Midwestern would become the majority shareholder of San Leon”, San Leon says.

MLPL’s most recent unaudited accounts for the year to 31 December 2020 state that the company made a loss before tax of approximately $93.8Million and showed total assets of $408.5Million.

“The proposed transactions described above are at an early stage and will therefore be subject to a number of factors, including, inter alia, the completion of due diligence, negotiation of transaction documentation, regulatory approvals, a “whitewash” under the Irish Takeover Code and shareholder approval. As such, there is no certainty that these transactions will proceed nor any certainty regarding the terms on which they would proceed”. Midwestern currently holds more than 10% of the Company’s ordinary shares. Accordingly, Midwestern is classified as a related party under the AIM Rules and the transactions above in which Midwestern has an interest will therefore be treated as transactions with a related party pursuant to rule 13 of the AIM Rules”, San Leon explains.

 


South Sudan Launches First Oil and Gas Bid Round

By Foluso Ogunsan, Upstream Correspondent

South Sudan has announced the launch of its first Oil Licensing Round, aiming “to welcome back experienced partners and operators following significant progress in returning to peace and stability”, the country’s Ministry of Petroleum says in a release.

With new data, analysis, and government mechanisms, the Ministry seeks to attract high-quality investors and partners.

“Potential investors are now able to request all relevant information from the Ministry of Petroleum until August 23rd 2021, by expressing their interest and providing contact details online at www.southsudanlicensinground.com”, the statement explains.

“Once the expression of interest process is concluded, the Ministry of Petroleum will host a virtual series of data presentations, followed by an international roadshow”.

There are thirteen open acreages, in the country, out of a total of 21, but this particular round is offering five (5) tracts, namely A2, A5, B1, B4 and D2, with areal sizes ranging between 4,000 and 25,000km2, and most comprising between 15,000 and 20,000 km2. This means there eight (8) “free” acreages, but the Ministry doesn’t say whether these could be negotiated for, even if they are not in the round.

“This bidding round is for a number of selected blocks, which will be facilitated and evaluated based on set criteria by the MoP”, the Ministry says.

South Sudan’s upstream hydrocarbon activity has been dominated by Asian companies, notably China National Petroleum Corporation and Petronas, respectively from China and Malaysia. They produced, in partnership with South Sudan’s government owned Nile Petroleum, about 139,000Barrels of Oil Per Day in 2019, according to the BP Review of Statistics, the industry bible for country-level oil and gas production figures. As these firms themselves are state hydrocarbon companies, South Sudan can certainly do with private and publicly listed companies from the West and the Middle East.

Below are further details from the South Sudan’s Ministry of Petroleum regarding the bid round:

Currently there are three consortiums operating producing blocks in South Sudan, with another four oil exploration companies having acquired production sharing contracts.

1. Producing Blocks:

• Block 3 and 7 – DAR Petroleum Operating Company: China National Petroleum Corporation, Petronas, Nile Petroleum Corporation (8% equity)

• Block 1, 2 & 4 – Greater Pioneer Operating Company: China National Petroleum Corporation, Petronas, Nile Petroleum Corporation (5% equity)

• Block 5A – Sudd Petroleum Operating Company: Petronas, Nile Petroleum Corporation (8% equity)

2. Awarded Exploration Blocks:

• Block B3 – Oranto Petroleum, Nile Petroleum Corporation (10% equity) 

• Block 5B – Ascom, Nile Petroleum Corporation (10% equity) 

• Block B2- Strategic Fuel Fund, Nile Petroleum Corporation (10% equity)

3. Free Blocks:

• Blocks: A1, A2, A3, A4, A5, A6

• Blocks: B1, B4• Blocks: C1, C2

• Blocks: D1, D2• Blocks: E1, E24. 

First Licensing Round:• Blocks A2, A5, B1, B4, D2

Potential investors are now able to request all relevant information from the Ministry of Petroleum until August 23rd 2021, by expressing their interest and providing contact details online at www.southsudanlicensinground.com

They can also contact directly:
For information about data access and purchase:
Pawel Ulatowski
Director, ZDS
southsudan@zebradata.com

For information about geoscience:
Dr. Omar B. Abu-elbashar
MD, Petro-Tec
petrotec@hotmail.com
petrotec@petrotec-int.com

“After years of instability and conflict, lasting peace is finally gaining a foothold in the country following the establishment of the Transitional Government of National Unity (TGNU) in February 2020, and the follow-up agreement over governance of the country’s states. South Sudan is now firmly back on a positive developmental path and is expected to continue as one of Africa’s fastest-growing countries in the foreseeable future”.


Sonangol Starts to Sell Some of its Equity in Angolan Blocks

By Toyin Akinosho, in Lagos

State hydrocarbon company Sonangol, has commenced partial divestment from eight acreages offshore Angola.

The sale process, which started June 14 and is scheduled to end on August 6, 2021, involves over 40,000Barrels of Oil Per Day production.

Sonangol is selling part of the equity assigned to Sonangol P&P, its operating arm, Blocks  03/05, 4/05, 5/06, 15/06, 18, 23, 27 and 31, all in the country’s deepwater.

The most prolific block in the sale is 15/06, in which Sonangol P&P has held around 37% equity since TOTALEnergies exited the acreage in 2014. Over 92,000BOPD was exported from Block 15/06 by the three partners on the asset in March 2021, according to the May 2021 edition of the Africa Oil+Gas Report.

Dimantino Azevedo, Angola’s Minister of Mining Resources, Oil and Gas, says that the sale is part of Sonangol’s production and exploration strategy for its repositioning as the national oil operator, in some of Angola’s offshore and onshore oil concessions.

“The opening of this process of partial alienation of the participative interests in some of Sonangol’s oil concessions emerges from actions aimed at repositioning and sustainability of Sonangol’s investment portfolio, to take on its financial commitments,” the minister declared at the launch of the sale process.

Sonangol needed to reduce its financial exposure as representative of the state in oil and gas concessions, Azevedo explained. The state company needs a step back from direct intervention in the oil acreages as an investor, and unburden itself from some financial obligations, in order to free up capital and “support the expenses associated with the acquisition of refined products”.

Azevedo concluded that partial sale of Sonangol’s stakes “would promote better allocation of capital, greater business efficiency, creation of cost synergies and greater focus on the “oil and gas” value chain”.

 


Angola Reduces Entry Fee, Extends the Deadline for Bid Round

Agência Nacional de Petróleo, Gás e Biocombustíveis (ANPG), the Angolan hydrocarbon regulatory agency, has announced that the delivery of bids for tenders for the Lower Congo and Kwanza onshore basins, which initially should be done by June 9th, has just been extended until July 9th, 2021.

Simultaneously, “ANPG decided to revise the entrance fee for these bids”, the agency says in a statement

“The decision of the national concessionaire is linked to the fact that many of the companies interested in the process have asked for a longer period to better understand the file, the data it contains and also to clarify doubts with ANPG technicians”.

ANPG did not give the percentage reduction of the entry(participation) fee, which was set at $1Million,  but declared that the data package for both basins still has to be acquired by interested companies. This decision is justified by the fact that it deals with onshore exploration, to which, historically, smaller companies and national companies converge, which are interested in participating in the prospecting, exploration, development and production of hydrocarbons in Angola.

“COVID-19, which continues to affect the world economy, has also destabilized the hydrocarbons market, and ANPG, which since its creation has been the driving force behind the oil activity in Angola, chose to listen to suggestions from the national business community and the foreign investors on the revision of the value of the entrance fee to facilitate entry into the sector for new entrants.

“It should be remembered that the launch of the Public Tender for the 2020 Tender for Blocks CON1, CON5 and CON6 ( Low Congo Onshore Basin ) and for Blocks KON5, KON6, KON8, KON9, KON17 and KON20 ( Kwanza Onshore Basin ) was carried out in the April 30th. This launch included the publication of the terms of reference, public tender rules, application and proposal submission models”.

ANPG concludes that interested parties can find this and other information in ANPG´s website (www.anpg.co.ao), and/or by contacting ANPG’s Negotiations Department through e-mail: hermenegildo.buila@anpg.co.ao, for any further clarification.to clarify any and all questions related to this bidding process”.

 

 


OML 118: NNPC, SNEPCo, Others Sign Multibillion Dollar Deep-Water Agreement

Deal to Yield Over $780Million in Immediate Revenues to Government.

The Nigerian National Petroleum Corporation (NNPC) and its Production Sharing Contract (PSC) partners -Shell Nigeria Exploration and Production Company (SNEPCo), Total Exploration and Production Nigeria Limited (TEPNG), Esso Exploration and Production Nigeria Limited (EEPNL) and Nigerian Agip Exploration (NAE) – have executed agreements to renew Oil Mining Lease (OML) 118 for another 20 years.

The five agreements signed include: Dispute Settlement Agreement, Settlement Agreement, Historical Gas Agreement, Escrow Agreement and Renewed PSC Agreement.

The NNPC, in a statement, says that over $10Billion of investment would be unlocked as a result of the agreements, which, it argues “signaled the end of the long-standing disputes over the interpretation of the fiscal terms of the Production Sharing Contracts (PSC) and the emplacement of a clear and fair framework for the development of the huge deep-water assets in Nigeria”.  

Mele Kyari, the corporation’s Group Managing Director, estimates that “the deal would yield over $780Million in immediate revenues to the Federal Government while it would also free the parties from over $9Billion in contingent liabilities”.

Bayo Ojulari, the Managing Director of SNEPCo, contends that the agreements marked the end of a twelve-year dispute that had marred business relationship and affected trust and investment. “Today, we have signed agreements that define the future of deep-water for Nigeria. This is the first deep-water block that was developed in Nigeria and it is also the first one that we are resolving all the disputes that will lay the foundation for the resolution of other PSCs,” the SNEPCo helmsman stated.


Dana Gas Needs Financing Partner to Drill “Thuraya”, Offshore Egypt

PARTNER CONTENT

Dana Gas the UAE based minnow, is hoping to drill a “key” prospect in its operated Block 6, offshore Egypt, in 2023.

But the operator, strapped for cash, needs a well-heeled partner to co-finance the probe.

The subject is the Thuraya prospect in the block, which is also known as North El Arish Concession.

Dana Gas is offering a material interest in Block 6 to a company willing to fund the planned Thuraya well, recently estimated likely to cost $95Million (dry hole). “A $90Million cost recovery pool, which is fully recoverable under Egypt’s profit-sharing fiscal regime, can also be shared with an incoming party. Operatorship is available to suitably qualified companies”, says a statement by marketing agents for the prospect..

Dana Gas is in the process of securing an extension to the current 2nd Exploration Period after unavoidable delays incurred during the seismic data acquisition and the COVID pandemic. Together with the optional 3rd Exploration Period of two years, this will secure the license area for three years enabling the well obligation to be drilled by mid-2023.

Envoi, the British acquisition and divestment advisor which the company hired to recruit suitable farminees, frames the situation as an “opportunity to participate in drilling of dual (stacked Oligocene & Cretaceous) play in ‘Thuraya prospect’, testable with one well”.

Envoi says that Thuraya is close to proven play analogues (including cretaceous reef in Zohr Field to the north andOligocene clastics in Ameeq and Nour discoveries to the west).

Envoi says the Thuraya prospect holds estimated combined ‘Mean’ Potential of 17+ Trillion cubic feet (Tcf) of Gas Initially In Place (GIIP) and  37 Tcf Upside (‘Mean’ 11+ Tcf and 24Tcf Upside recoverable resources) “where a discovery of only 2+ Tcf would be commercial”.

“Although large carbonate reef prospects are recognised where local basement highs occur in the region (now also including Block 6), the Oligocene sand potential, proven in the Nile Cone by the Salamat and Atoll fields since 2013, has only recently been recognised as a primary play target in the eastern part of Egypt’s offshore nearer to Block 6”, Envoi notes in its briefing.

“Its potential here has been unlocked by the Nour and Ameeq discoveries made in 2019 and 2020 just 20km to the west of Block 6. This Tertiary play fairway is, however, defined by regional seismic amplitude mapping, which clearly show that extensive basin floor fans originated from the Nile Delta. These have prograded through time to the north and east. These delta floor and prodelta complexes progressed into the Levant Basin and through the Block 6 area during Oligo-Miocene times. 

“Today the Miocene is also a proven reservoir in the very large (22Tcf) Leviathan and Tamar Fields to the north east which are interpreted as the younger more distal extension of the same sediment system that passed through Block 6 with similar resource potential, and where it remains undrilled”. Envoi’s briefing contends.

“The majority of the mapped Cretaceous and two distinct Oligocene closures that overlie it in the Thuraya prospect are now confirmed to lie mostly within Block 6 by the new Broadband 3D survey completed in 2020. 3D seismic as well as shipborne gravity and magnetic data was acquired right up to the maritime boundary to define the edge of the Thuraya prospect after the earlier block-wide 2015 3D survey was not permitted to cover the border area.

“Combined, these two plays in the Thuraya prospect are now estimated to be capable of an un-risked ‘mean’ in-place potential of 17Tcf GIIP (and P10 upside of over 37Tcf GIIP) with a ‘mean’ recoverable resource potential of over 11Tcf (and P10 upside of 24 Tcf recoverable), based on conservative volumetric inputs. The commercial threshold for a development in the area is calculated to be around only 2Tcf recoverable, hence a discovery in either the clastic or reef plays would be highly attractive commercially. The full combined mean resource potential in the Thuraya field of over 11Tcf is calculated to have an NPV10 value of $2,2Billion with an EMV of $1Billion. Block 6 also has material follow-on prospectivity, including the same stacked Oligo-Miocene play in three undrilled prospects which combined could add around 7 Tcf to the Block 6 recoverable resources. The potential value of this opportunity and the Thuraya prospect on its own should not be underestimated. Egypt’s self-sufficiency, with declining domestic gas production, is only expected to be able to fully support demand until around 2025”.


Aker Energy Looks to Farm Down in DWT/CTP

Aker Energy is looking to sell part of its 50% participating interest in the Deepwater Tano Cape Three Points (DWT/CTP) block in Ghana, which includes the Pecan development project. 

After the COVID-19 wreckage, the Norwegian operator has struggled to come up with the funding for the Pecan development,which it sounded so passionate about just 18 months ago. 

Aker Energy’s demonstrated passion to fast track the development project led to the Ghanaian government’s amendment of Petroleum Agreements concerning the DWT/CTP and the South Deep Water Tano (SDWT), an amendment which significantly reduced the state’s share of the partnership and snuffed out the involvement of GNPC Explorco, a company that was set up to build operating capacity of the state hydrocarbon company GNPC. 

But Aker Energy appeared to walk the talk. As far back as February 2020, the operator had entered into a Letter of Intent (LOI) with Yinson Holdings Berhad to award a bare-boat charter and an operations and maintenance contract for a floating, production, storage and offloading (FPSO) vessel at the Pecan field, following a competitive tender. The plan was that the contracts would have a firm duration of ten years followed by five yearly extension options exercisable by Aker Energy as operator on behalf of the license partners. Once developed and installed, the FPSO will be located over and connect to the state-of-the-art subsea production system located at approximately 2,400 metres below sea level.

Now, all of that enthusiasm has been considerably challenged by the economic downturn of the last one year.

Aker Energy’s other partners in the DWT/CTP block are Lukoil (38%), Fueltrade (2%) and Ghana National Petroleum Corporation (10%).


Cameroon Formally Grants an Extension for the Thali Licence

AIM listed minnow, Tower Resources, has now received formal confirmation from Cameroonian authorities, extending the First Exploration Period on the Thali PS Licence.

The formal “arrête” from the Minister of Mines, Industry and Technological Development (MINMIDT) MINMIDT extends the First Exploration Period to 11 May 2022.

“This formal extension allows the Company to proceed with finalising a schedule for drilling and testing the NJOM-3 well”, Tower claims. “We are looking forward to seeing the NJOM-3 well drilled as soon as possible, and we will have more news for investors about the schedule in due course.”

Tower Resources had declared Force Majeure in March 2020 in respect of the First Exploration Period of the PSC, in light of the restrictions required to combat the COVID-19 pandemic, and on 31 March 2021 the Company announced that the President of the Republic had also approved a formal extension of the First Exploration Period.

But this announcement is about the formal grant of the extension.

“We are once again grateful to the Republic of Cameroon and to the Minister of Mines, Industry and Technological Development and his staff for their continued support of the Thali project, and also to the President of the Republic, the Secretary General of the Office of the Presidency, and the Prime Minister for taking a direct interest in our activity, as well as all the staff at the Societé Nationale de Hydrocarbures who have supported us during this First Exploration Period”, Tower Resources says. 


Equinor’s Algerian Output Drops, Company Inks Agreement with Sonatrach

Norwegian explorer Equinor, which saw its output drop by 25% in Algeria in 2020, has inked a forward looking, cooperation agreement with that country’s state hydrocarbon firm.

The memorandum of understanding (MoU) between Sonatrach (the Algerian state company) and Equinor, is looking beyond hydrocarbon exploration and production in the country.

“The signing of the MoU strengthens the existing partnership between Equinor and Sonatrach”, Equinor says in a release.

Equinor has been in Algeria for 17 years, with positions in two developments and one rank exploratory tract, including stakes in the In Salah onshore gas development, the In Amenas onshore gas development and a partnership on exploration in the Timissit licence.

The company’s equity production in the two producing projects crashed from 55,000BOEPD in 2019 to 41,000BOPD in 2020.

Equinor’s release says that the MoU “includes cooperation within greenhouse gas emissions and carbon management, industrial safety management, implementation of technology to increase hydrocarbon recovery and development of a model for driving high-performance oil operations”. 

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