All posts tagged feature


TOTAL Tackles Decline in Egina Field with New Wells

TOTALEnergies is concerned with the accelerated decline in Egina field, which output around 145,000 Barrels of Oil Per Day BOPD, as of March 2022, a clear 25% plunge from the 200,000BOPD it achieved before the OPEC Quota cut in 2020.

The field is located in 1,500metre water depth in deepwater off Nigeria.

Some of the wells are currently underperforming but about four to five (4-5) well interventions, and two (2) in-infill wells are planned for 2022. The company also wants to examine a satellite play to Egina. The  Egina West (an exploration well) is planned for 2023. If successful, the field will be developed as a tie-back to Egina main.

TOTALEnergies will also re-start the development of the Preowei field, by commencing discussions with the Contractors/Alliances on the modalities for the restart of the FEED CCFT by the second quarter of 2022.

Preowei is a deepwater hydrocarbon pool located north of the Egina field in OML 130. The development is designed as a tie in to the Egina field development, which is delivered as a subsea production system connected to a FPSO (floating production, storage and offloading vessel) designed to hold 2.3Million barrels of oil.

This story was published in the April 2022 edition of the Africa Oil+Gas Report,


Angola’s Oil Revenues Rise, Crimp China Debt by 2%

Angola’s revenues rose from $1.4Billion in April 2022 to $2.1Billion in May 2022, the government data says, owing to the doubling of crude prices compared with 2021.

Payments to Chinese creditors began in the first quarter of the year, 18 months ahead of schedule, as the suspension of debt service meant that payments would only resume at the end of the first half of 2023.

Angola’s debt to China fell by $351Million in the first quarter, to $21.4Billion, according to data from REDD Intelligence.

Angola’s debt to China, estimated at 40% of registered external debt, is mostly derived from loans contracted with Chinese banks, especially Exim Bank and BDC, in the view of Africa Monitor Intelligence,

Angola ´s debt to Chinese creditors had threatened to reach $22Billion between 4th Quarter 2019 and 4th Quarter 2021, but the Angolan Government had vowed to start bringing it down and now it is doing so.

Chinese loans, which represent about a third of Beijing’s claims on all African countries, were essentially intended to finance infrastructure projects (construction or reconstruction) and others, of an industrial nature.

Under a mechanism called “Angola Mode”, Angolan oil supplies, carried out under special price conditions, are intended to pay off Chinese investments in these projects.


NNPC, Sahara JV May Construct Jetties across West Africa for LPG Supply

WAGL Energy Limited, a joint venture business operated by the Nigerian National Petroleum Company (NNPC) Limited and Sahara Group, is set to develop and construct jetties across West African countries to boost the supply and penetration of Liquefied Petroleum Gas (LPG) in the sub-region.

Emmanuel Ubani, Managing Director, WAGL Energy Limited said discussions were already at advanced stages for the first in the lot, adding that WAGL had embarked on developing infrastructure to take beneficial advantage in the emerging energy transition era.

While acknowledging growing LPG demand in Africa, Ubani advised elements that make up the enabling environment for LPG utilization include infrastructure -both liquefaction and regasification plants, gas distribution, pipelines and/or gas distribution trucks, cylinder distribution and/or segmented local distribution to individual houses and industries

“All parts of the value chain must be in place and functional, that is, a distribution system to enable feasible access for the users must exist, a ready and vibrant market network and most importantly, acceptable and accommodating uses of the alternative energy source. Ensuring this requires both public and private investments at a level that allows for economies of scale, supporting in making the sector commercially viable. Sufficient attention on policy and strategic level, with clear responsibility allocation and appropriate regulation of the sector, is required.”

Ubani said nations seeking to lead energy transition across the continent would need to massively de-risk and promote more private sector investment, a step he described as very critical.

“Governments need to do a great job at providing an enabling environment for the sector to thrive. They need to take advantage of the abundancy and competitiveness of renewables and also support systemic innovation, especially as it affects the changing energy mix,” Ubani advised.

 


ACWA Power led Consortium to Build 1,100MW of Wind Power Plants in Egypt

Saudi owned ACWA Power has led a consortium of companies to sign a project agreement to develop a 1.1GW wind project in Egypt, at an investment value of $1.5Billion.

The consortium, comprising Hassan Allam Holding, will work together during the development phase to complete the site studies and secure the financing of this facility.

Located in the Gulf of Suez and Gabal el Zeit area, this wind project is the largest single contracted wind farm in the Middle East region and one of the largest onshore wind farms in the world.

“The project will be designed to use state-of-art wind turbines with blade heights of up to 220 metres, which helps in achieving the best use of the designated land plots in the most efficient way”, ACWA claims in a statement.

“When complete, the project will mitigate the impact of 2.4Million tonnes of carbon dioxide emissions per year and provide electricity to 1,080,000 households.

The signing ceremony of the agreement took place at the headquarters of the Egyptian General Authority for Investment and Free Zones, Cairo, in the presence of Mohamed Shaker El-Markabi, Egypt’s Ministry of Electricity and Renewable Energy; Majid Bin Abdullah Alkassabi, Saudi’s Minister of Commerce; Issam bin Saad bin Saeed, Minister of State and Cabinet member for Shoura Council affairs; Hala Al Said, Egypt’s Minister of Planning and Economic Development; Mohamed Abdel Wahab, CEO of the General Authority for Investment and Free Zones “GAFI”; Osama Asran, Egypt’s Deputy Minister of Electricity and Renewable Energy; Gaber Desouky, CEO of the Egyptian Electricity Holding Company (EEHC);. Amjad Saeed, Advisor to the Minister; Eng. Sabah Mashali, Chairman of the Egyptian Electricity Transmission Company; Mohammed El Khayat, Chairman of New and Renewable Energy Authority; and Mohammad Abunayyan, Chairman of ACWA Power.

“This milestone wind project falls within the framework of the Egyptian government’s strategy to diversify its energy sources and leverage the country’s rich natural resources, especially in renewable energy”, The statement by ACWA adds. “The 1.1GW wind project confirms Egypt’s commitment in spearheading the use of renewable energy sources to reduce the impact of carbon emissions produced by conventional energy sources, as Egypt gears up to host the United Nations Climate Conference (COP 27) in November 2022, the foremost international forum to discuss countries’ efforts in addressing climate change”.

 


37 Entities Get Licences to Start Operating Marginal Fields in Nigeria

Nigeria has awarded Petroleum Prospecting Licences (PPLs) for 37 undeveloped discoveries (aka marginal fields) in the country’s prolific Niger Delta Basin.

At a glittering ceremony witnessed by over 300 guests in Abuja, the country’s political capital, 37 of the 57 oil and gas fields offered in a bid round launched two years ago were issued with the PPLs, having satisfied all conditions for award.

As of the date of the ceremony on June 28, 2022, 41 fields had been fully paid for, but four of those fields are having one challenge or the other in terms of partner relationships for the fields’ development.

Each of the 57 fields on offer was provisionally awarded to more than one company and each group of  “potential awardees” were meant to set up a Special Purpose Vehicle (SPV), some incorporated joint venture (IJV) that will then operate the fields.

The Nigerian Upstream Petroleum Regulatory Commission NUPRC, which is superintending the award exercise, has said that those who had not paid signature bonus as of February 2022 were deemed to have been disqualified.

As 41 fields have been duly paid for, there are 16 fields that are still open, in varying degrees, for awards.

Timipre Sylva, Nigeria’s Minister of State for Petroleum, gushed with pride as he spoke at the ceremony. “The implementation of the Petroleum Industry Act (PIA 2021) is in top gear”, he declared, referening the new petroleum regulation that governs the industry. “Consequently, the new awardees should note that their assets will be fully governed by the provisions of the PIA 2021”.

Mr. Sylva told the awardees to “ensure that good oilfield practice is employed, environmental considerations and community stakeholders’ management are not neglected”, as they develop their assets. “It is my strong belief that the awardees would take advantage of the current attractive oil prices to bring these fields into full production within a short period to increase production, grow reserves and reduce cost of production.

 

 


Egypt Plans to Put out the Flares with Baker Hughes’ flare.IQ Technology

PARTNER CONTENT

Egyptian General Petroleum Corporation and Baker Hughes Partner to Reduce Emissions from Flaring Operations

  • Baker Hughes’ flare.IQ technology to support Egypt’s decarbonization targets by managing and reducing methane emissions at an Alexandria-area refinery
  • Flare emissions management project is Phase 1 of wider flare recovery initiative in Egypt
  • Partnership marks first downstream deployment for flare.IQ in Egypt and comes ahead of COP27 in November 2022, to be hosted in Sharm El-Sheikh

Baker Hughes and Petrosafe, a subsidiary of the Egyptian General Petroleum Corporation (EGPC), have announced a contract that will mark the first deployment of Baker Hughes’ flare.IQ technology in refinery operations in Egypt to help reduce emissions from oil and gas flaring operations.

This initial phase of a broader flare recovery partnership will be implemented at the APC Refinery in Alexandria. The Egyptian Ministry of Petroleum and Mineral Resources (MoPMR) aims to reduce emissions and improve the efficiency of oil and gas operations as part of its ambitious aim to reduce greenhouse gas emissions from this sector.

Methane is one of the most harmful forms of emissions — 86 times more potent than carbon dioxide over a 20-year period*. Incomplete combustion of flared gas is one of the major source of methane emissions across the oil and gas industry. By using flare.IQ technology from Panametrics, a Baker Hughes business, EGPC will further digitalize its emissions management infrastructure and pull critical information about its flare systems, substantially reducing emissions by ensuring a higher-efficiency flare combustion rate.

The contract comes at a significant moment as Egypt prepares to host the 27th UN Climate Change Conference (COP 27) in November and contributes to the Global Methane Pledge.

“Our flare recovery partnership with Baker Hughes is an important step in Egypt’s Petroleum Sector Modernization program as we start implementing MoPMR projects included within Egypt’s Climate Change Strategy 2050, as announced in May 2022,” said H.E. Tarek El-Molla, Minister of Petroleum and Mineral Resources. “Phase one of the partnership, the deployment of flare.IQ, will support our flare recovery ambitions, which is one of our Nationally Determined Contributions (NDCs), in support of the Paris Agreement objectives. We look forward to seeing the impact of flare.IQ help improve the quality of life for residents near the Alexandria plant and anticipate extending the scope to include other refineries across Egypt.”

“Better understanding and managing emissions is central to the oil and gas industry’s efforts to reduce greenhouse gas emissions. Our partnership with MoPMR demonstrates how Baker Hughes continues to collaborate with our customers in taking positive action in emissions management,” said Rami Qasem, executive vice president of Digital Solutions at Baker Hughes. “This partnership with MoPMR supports its ambitious low-carbon strategy, and further underlines Egypt’s commitment to be at the forefront of tackling emissions in the oil and gas sector, as we approach COP 27.”

The contract follows the memorandum of understanding that was signed by the two companies in February 2022. The partnership between Baker Hughes and EGPC aims to establish and drive a flare recovery initiative to support emissions recovery and reduction across Egypt’s upstream and downstream oil and gas operations.

A Baker Hughes Statement says: “Part of the Baker Hughes Climate Technology Solutions portfolio, flare.IQ is fast, accurate, reliable, easy to deploy and cost effective. It has a proven track record in optimizing flare operations, achieving steam savings and significantly reducing methane emissions”.

 


Tanzania to Ease Fiscal Conditions, Then Launch a Bid Round

Tanzania is looking to amend its nine-year-old Model Production Sharing Agreements (MPSAs) for its upstream hydrocarbon assets and then launch an acreage licencing sale.

The country’s Petroleum Upstream Regulatory Authority (PURA) is conducting reviews of the hydrocarbon code as well as the salability of the MPSAs, after which it hopes to launch a bid round of 23 acreages in the onshore and offshore terrains in the second quarter of 2023.

Tanzania introduced MPSA in 1989, as its own way of clarifying the terms and conditions it offers for investors interested in hydrocarbon acreages and how the government/ investor revenue share is caliberated in Production Sharing Agreements (PSAs). The 1989 MPSA was amended in 1995 and the 1995 MPSA was amended for 2004 and then 2008 and then 2013.

The 2013 MPSA has lasted the longest.

Tanzania holds close to 60Trillion cubic feet (Tcf) of gas, most of it in deepwater Rovuma Basin, located in the far reaches of the Indian Ocean. It has a modest gas-based industry which feeds off its 8Tcf of gas onshore and shallow water.

About 50Tcf or 83% of the gas reserves are a result of the discoveries in deepwater Rovuma basin between 2011 and 2014. Tanzania has launched two bid rounds since the MPSAs were promulgated in 2013 which have not attracted investor interest

The ongoing review of the MPSAs will update the fiscal regime in accordance with the global trends in trade, fuel prices over the past decade and estimates for the next decade, the institutional changes in Tanzania and current legal system, including the Petroleum Act of 2015, which is said to be unfavourable to investors.

The amendments will also address cost recovery; dispute resolution; local content; responsibility between the two parties in the contract and the exploration period.

 


Angola Receives a $2Billion American Support for Solar Projects in Four Provinces

U.S. firm AfricaGlobal Schaffer (Washington, DC), in collaboration with U.S. project developer Sun Africa (Miami, Florida), signed a contract with the Government of Angola to develop a $2Billion solar project in four southern Angola provinces.

The project will include solar mini-grids, solar cabins with telecommunications capabilities, and home power kits. In addition to supporting up to $1.3Billion in U.S. exports, the project will help Angola meet its climate commitments, including generating 70% carbon-free power by 2025, a statement in a factsheet from the US White House says.

The Angola facility is heavily supported by the U.S. Department of Commerce and the Export-Import Bank of the United States (EXIM).

It is one of several projects targeted by $200Billion being mobilized by the US government from the private sector in the context of the Partnership for Global Infrastructure (PGII)  launched by the G7 leaders “to deliver quality, sustainable infrastructure that makes a difference in people’s lives around the world, strengthens and diversifies our supply chains, creates new opportunities for American workers and businesses, and advances our national security”, says the White House fact sheet.

The Angolan solar project fits into the first of the four priority pillars through which the US will execute the PGII. That pillar involves: tackling the climate crisis and bolstering global energy security through investments in climate resilient infrastructure, transformational energy technologies, and developing clean energy supply chains across the full integrated lifecycle, from the responsible mining of metals and critical minerals; to low-emissions transportation and hard infrastructure; to investing in new global refining, processing, and battery manufacturing sites; to deploying proven, as well as innovative, scalable technologies in places that do not yet have access to clean energy.

 


Our Latest Edition/ INDEPENDENTS’ DAY ANNUAL 2022

It’s no longer news that the Independent E&P companies have largely left frontier exploration in Africa for the majors.

But we must rejig our confidence in the ability of this species to own the future of the continent’s hydrocarbon industry.

However low the margin is, however high the cost of acquisition and however dire the above ground risks are, the Independents are making the case that assets divested by the majors are theirs to inherit.

A significant seismic shift took place in Angola recently, where Sonangol, the once mighty, former monopoly state hydrocarbon firm (who once played the role of its country’s regulator and commercial entity combined), declared that a bunch of small and, in cases, newly minted minnows, including Afentra, Sirius, Somoil, Sequa and Petrolog, had won the bids to acquire several of its stakes in Blocks 3/05, 15/06, 18, and 31, all producing licences.

The big story of 2022 has however remained Seplat Energy’s announcement about penning an agreement to acquire ExxonMobil’s subsidiary holding the company’s shallow water assets off Nigeria. The invoice is $.1.28Billion.

And while that story was sucking all the oxygen in the room, there was a tiny part of it most of us didn’t notice: the reserved bidder in the chase for those assets, running close behind Seplat Energy, is a consortium consisting of a brand-new Nigerian junior named Chappal and the well-known UK listed Capricorn, (Cairn Energy), the finder of Senegal’s first commercial sized oil field, which was also in the news recently as co-acquirer of most of Shell’s producing assets in Egypt.

Welcome to the INDEPENDENTS’ DAY ANNUAL 2022.

Read your copy here,

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 international corporations, local entrepreneurs, technical enterprises or financing institutions, for useful analyses of Africa’s oil and gas industry. It has been published by the Festac News Press Limited since November 2001, and since the COVID 19 season, as a monthly digital (pdf) publication, delivered to subscribers 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  +2347062420127, +2348036525979, +2348023902519


ION Completes Close to 20,000sq km of 3D Seismic Reprocessing in Mauritania

ION Geophysical Corporation (has completed the reprocessing and reimaging of approximately 19,100 km² of 3D seismic data offshore West Africa for its Mauritania 3D reprocessing programme.

The multi-client project was undertaken through an exclusive agreement with the Ministry of Petroleum, Energy and Mines in Mauritania. It is comprised of 11 vintage seismic surveys and provides a seamless, modern, high resolution data set spanning the Mauritanian offshore coastal basin. This basin is a key part of the frontier MSGBC basin in which several large-scale, offshore, gas fields have been discovered, with an estimated 63trillion cubic feet (Tcf)* in place in Mauritania thus far, ION declares.

“With foreign investment flowing in, field developments expected to come online in 2023, gas favoured as a source of energy for the energy transition, and capacity expected to exceed domestic needs, contracts for LNG export to European and other markets is anticipated”, the company reiterates.

“The MSGBC basin has become one that matters in the global oil and gas landscape, even if it is still today a frontier area. We have an enormous potential and we must find the right solutions to use these resources for the development of the country,” stated Chemsdine Sow Deina, Exploration Director at Societe Mauritanienne des Hydrocarbures (SMH).

“With ION’s delivery of its Mauritania 3D reprocessing program, operators now have a lower cost, lower risk, sustainable solution for evaluating the offshore hydrocarbon potential of Mauritania,” said Chris Usher, President and CEO. “As a result, we anticipate additional discoveries will be made that ensure Mauritania’s long term energy security, as well as exports that fund sustainable economic growth and development.”

The Mauritania 3D reprocessing program was supported by the industry and almost triples the amount of 3D data that ION has delivered this year from approximately 10,000 km2 to 29,000 km2. Final pre-stack depth imaged deliverables are now available. Learn more at iongeo.com/Mauritania.

*Estimate from Mauritania-Senegal: an emerging New African Gas Province – is it still possible? October, 1, 2020. The Oxford Institute for Energy Studies

 

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