All posts tagged feature


NLNG Calls for EoI & Pre-qual for Supply Chain Management Services

TENDER/ADVERTORIAL

This is not an invitation to tender. The full tendering procedure will be provided to applicants that are successful in the pre-qualification exercise…

Nigeria LNG Limited (NLNG) requires a vendor to provide Supply Chain Management Services (SCMS) to support maintenance and production activities in its Plants in Bonny, Rivers State, Nigeria.

The company hereby invites SCMS providers with all requisite experience, capacity and regulatory permits & licences to express their interest to participate in the tendering for this service.

SCOPE OF THE SERVICE

The Supply Chain Management Services required will include but are not limited to the provision of:

  • Procurement Management services
  • Contract Administration and Management services
  • Inventory Control and Stock Management services
  • Material Management services including Material Handling, Packaging for Export, Heavy Goods Vehide/Forklift Services, Stock Check, Material Preservation & Quality Control
  • Vendor Management services

COMMENCEMENT AND DURATION

The expected date of commencement of the service is 1st February 2024 and the duration will be three (3) years with an option to extend at NLNG’s sole discretion.

PRE- QUALIFICATION

A pre-qualification exercise of interested SCMS providers will be carried out and only successful applicants will be invited to provide a competitive tender for this service.

To be considered for pre-qualification, interested companies are required to submit the following documents for consideration:

  • Valid Certificate of Incorporation and Corporate Affairs Commission (CAC) Forms 2A & 7A (or its equivalent).
  • Tax Clearance Certificates for the past three (3) years i.e., 2019 – 2021 and Nigerian Tax Registration/ldentification Number.
  • Details of relevant verifiable experience of SCMS provision that has been undertaken as main contractor over the past five (5) years.
  • Valid Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)/DPR permit(s).
  • Valid Federal Ministry of Labour and Employment Recruiter’s licence
  • Acknowledgment of willingness to undergo NLNG and Third-Party audits.
  • Confirmation of willingness to operate in strict accordance with the NLNG Business Principles.
  • Any additional information that will enhance the potential of the company

 

NIGERIAN CONTENT

NLNG is committed to the development of the Nigerian Oil and Gas business in accordance with the Nigerian Oil and Gas Industry Content Development Act 2010 (NOGICD Act).

Interested companies must comply with all the provisions of the NOGICD Act that relate to this service and in particular comply with the minimum Nigerian content percentage for ownership (i.e., 51% and above) and in relation to the scopes of service as provided in the Schedule to the NOGICD Act 2010.

Failure to fully comply with the NOGICD Act 2010 or demonstrate commitment to Nigerian content development policy of the Federal Government of Nigeria and NLNG shall result in outright disqualification from the tender process for this scope of services as described above.

As part of their submissions, companies signifying interest by responding to this advertisement shall submit acknowledgement of willingness to comply with the Nigerian Content Act.

General Nigerian Content Requirements

Companies responding to this advertisement are required to submit the following in compliance with the Nigerian Oil and Gas Industry Content Development Act, 2010:

  1. Documentation to demonstrate that the entity is a Nigerian-registered company. Submission of certified true copies of CAC Forms 2A & 7A (or its equivalent) including company Memorandum and Article of Association. All companies shall be Nigerian Indigenous Service Companies having 51% and above Nigerian equity in the shareholding and ownership structure of tenderer’s legally registered entity in Nigeria by CAMA (Companies and Allied Matters Act).
  2. Evidence of registration on the Nigerian Content Development Monitoring Board (NCDMB) NOGIC Joint Qualification System (JQS).
  3. Evidence of valid Nigerian Content Equipment Certificate (NCEC) in the relevant category.
  4. The process and procedure that explain the methodology of how it intends to comply with the requirements of the NOGICD Act 2010 (Nigerian Content Plan) and how to achieve the set target(s) in the schedule of the NOGICD Act and any targets set by the Board.
  5. Details of the company’s corporate organisations overall Human Resources structure (management, supervisors, senior and junior skilled officers, etc.), identifying positions manned/occupied by Nigerian nationals with evidence of type of employment in-country and identifying the positions manned/occupied by other nationals.
  6. Proposed organogram for this work scope populated with nationality, qualifications of personnel and years of experience of personnel on the job (attach CV of key finance, operational and technical personnel) including a succession plan in this work scope.
  7. A detailed description of the location of facilities and infrastructure (assets, equipment, technical office, and administrative space, storage, etc.) in Nigeria to support this contract, evidence that 50% of all equipment deployed to work by multinational and international companies are owned by the local subsidiaries.

SUBMISSION OF RESPONSES

Submissions in response to the above requirements shall be completed strictly in accordance with the instructions given in this publication, segregated and arranged in the order indicated.

Failure to submit any of the documents may result in the disqualification of the applicant.

 

The Expression of Interest document should be submitted:

In electronic copy in PDF format by e-mail to: eoi.scms@nlng.com with “CONFIDENTIAL Expression of Interest and pre-Qualification for Provision of Supply Chain Management Services (SCMS) for Nigeria LNG Limited” in the

subject line.

The submission must be received by NLNG no later than 16th February 2023. Please Note:

  • This is not an invitation to tender. The full tendering procedure will be provided to applicants that are successful in the pre-qualification exercise which will be carried out in accordance with NLNG’s relevant procedures.
  • Notwithstanding the submission of an Expression of Interest, NLNG is neither committed nor obliged to indude any company and/or its associated companies, agents or subcontractors on any bid list or award any form of contract to any company and/or its associated companies, agents or sub-contradors.
  • This advertisement for Expression of Interest and Pre-qualification shall not be construed as a commitment by NLNG, nor shall it entitle respondents to daim any indemnity from NLNG or its affiliates by virtue of having responded to this advertisement.
  • This Expression of Interest is a simple invitation for interested vendors to express interest in providing the indicated services and does not warrant any further feedback from NLNG hereafter.
  • If you do not hear from NLNG within 3 months of submission of this publication, it should be taken that your application was not successful.

Signed:

MANAGEMENT

Nigeria LNG Limited

 

 


South African Hydrocarbon:  So Much Possible, But So Much Stalling

By Toyin Akinosho

Barbara Creecy, South Africa’s Minister of Environment, Forestry and Fisheries, has had far greater impact on investment in hydrocarbon development in the country, than the Minister of Mines and Energy, in the last two years.

Ms. Creecy passionately does her job, which has meant hounding out several companies intent on monetizing hydrocarbon resources, in the country.

Conversely, Mr.Gwede Mantashe, the Minister of Mineral Resources and Energy and a far more senior member of the ruling party, is laid back, very laid back.

If it wasn’t for the fact that fossil fuels are derided today as harbingers of extreme weather conditions, I would have invoked the last two lines of the first stanza of W.B Yeats’ poem, The Second Coming, to contrast Ms. Creecy’s and Mr. Mantashe’s attitudes to their work.

The best lack all conviction, while the worst   

Are full of passionate intensity.

It is the wrong text to cite, I admit. But a large segment of the oil industry would nod to the sentiments expressed in those lines when they consider their proposed/ongoing work programmes in the continent’s most industrialised economy.

One of the most recent of the unrelenting assaults on hydrocarbon investments in South Africa was the denial of the appeal by Turkish owned Karpowership, to obtain environmental authorization to install a 1,200Megawatt gas to power facility off the South African coast, despite its winning a bid run by the Ministry of Energy. The decision came a full year after environmental authorisation for the project was initially denied in June 2021.

The story? Three subsidiaries of the Karpowership Group:  Karpowership SA Coega, Karpowership SA Richards Bay, Karpowership SA Saldanha, won the bid for an emergency power supply aimed at procuring 2,000MW of power to bridge a looming electricity supply gap. They were to generate 1,220MW of power from imported Liquefied Natural Gas (LNG), in what was to be the first formal introduction of natural gas into the country’s electricity grid, through Eskom, the state utility.

In denying the project approval twice, Ms. Creecy said she had “the constitutional and legal obligation not to allow a preventable situation in an environment that may potentially harm the health or well-being, in a wide sense, of another person or persons. The need and desirability of a proposed project should also be considered in this context”.

These are valid arguments. But what does the Minister of Energy do?

He wrings his hands.

There have been several such disruptions by scores of environmental rights groups, fanned out across  the more than 3, 000 kilometre length of the South African coastline, from the desert border with Namibia on the Atlantic coast, to southwards around the tip of the continent and then back north to the border with Mozambique on the Indian Ocean. They are all screaming: “Not in My Backyard (NIBY)!” Their protests have forced a halt to a seismic data acquisition campaign by Shell on the Wild Coast (in the Eastern Cape); held up drilling by ENI in Kwazulu Natal and compelled Searcher Seismic, the Australian geophysics company, to give up on its proposed 10,000 sq.km multiclient 3D seismic survey, meant to cover the Outeniqua Basin and its sub-basins, including Bredasdorp, Infanta, Pletmos, Gamtoos and Algoa Basins.

The one case that many of us are closely watching is the progress of development of the Brulpadda and Liuperd fields, two giant gas and condensate tanks that TOTALEnergies recently discovered in deepwater Outeniqua basin. The company had submitted, in early September 2022, an application for production licences for a development plan that includes supply of the gas to the state owned, 200Million standard cubic feet per day (200MMsf/d), Gas to Liquids Plant (Refinery) in Mossel Bay on the Cape Town coast, as well as some 700MMscf/d of piped gas to other customers, located as far as Port Elizabeth in the Eastern Cape. This will represent some substantial flow of natural gas into the South African economy. But, as Ayanda Noah, chief executive of the state-owned Central Energy Fund (CEF) had long predicted, the approval process has come to be heavily subjected to virulent legal opposition from climate justice groups and nongovernmental organisations opposed to the development of the gas reserves.

Like Mr. Mantashe, Ms. Noah, a trained engineer whose office also oversees the functions of PetroSA, the state hydrocarbon company, comes across as helpless. “There is litigation just from all angles”, she told FN24, the country’s top online financial newspaper. And she said more: “PASA (the oil and gas upstream regulatory agency) has been trying to work actively to start engaging the public and just to simplify and help the public to understand better what we do”. Translation: “The Barbarians are going to invade! I really don’t know how we can hold our own!!”

What intrigues me is that even before the recent eruptions of NIBY protests against offshore exploration and production, the South African government, over the past 20 years, had sucked its thumb about the place of oil and gas in development. I’d stood and watched as several iterations of the Upstream Petroleum Resources Development Bill (Upstream Bill) had passed through parliament, observing endless debates without any traction; I have listened to several rounds of speeches by officials expressing concern about the looming shut down of the Mossel Bay refinery, as a result of depletion of gas reserves, and doing  nothing until it actually wound down; I’ve read statements after affirming statements about the Gas Utilisation Master Plan (GUMP) which never saw the light of day.

Then in 2016, the government came up with this idea of imported LNG for power generation. And I thought, well, may be. You know the outcome now.

Around the same time, I sensed I’d discovered what the problem had been. South Africans simply abhorred the idea of utilizing large volumes of imported natural gas. If there were discoveries of indigenous molecules, there would be less reticence, more vigour and robust activity around energizing the economy with this transition fuel.

But I am certain to be proven wrong again.


FPSO Moves to Site for Senegal/Mauritania LNG Project

Technip Energies has announced the sail away of the Greater Tortue Ahmeyim (GTA) Floating Production Storage and Offloading (FPSO) from China to Senegal and Mauritania.

The FPSO will serve GTA Phase 1 site on the maritime border of Mauritania and Senegal.

The project is based on the development of two offshore gas fields namely Tortue and Ahmeyim. GTA Phase  will produce 2.5Million tonnes per annum (2.5MMTPA) of LNG in its first phase of development for which the final investment decision (FID) was taken in December 2018.

The floating facility measures 270 metres in length, 54 metres in width and 31.5 metres in depth. It is as large as two football fields and is of the same height as a 10-floor building. The FPSO includes eight processing and production modules and can accommodate 140 people on board. The key function of the FPSO is to remove water, condensate and reduce impurities in the gas stream before exporting processed gas to the FLNG facility in Mauritania and Senegal.

Technip Energies claims that it has involved “local companies to execute scopes of the project”., as part of the project local content. “Technip Energies will also integrate local personnel into the subsequent phases of the project. Local engineers and technicians, trained throughout the project development phases, will be involved in the various activities related to mooring, tie-in, commissioning and start-up, holding various positions: pre-commissioning, commissioning, Quality, HSE and logistics”.


Who is Doing What and Where in 2023?

It is the year of deepwater Namibia, that is for certain, and there will be several gas probes in the Eastern Mediterranean.

Elephant hunting returned to the African hydrocarbon patch in 2020/2021 and continued at a frenzied pace in 2022.

Despite two back-to-back annual Conferences of the Parties (COP 26 & COP 27) in 2021 and 2022, calling for decarbonization, oil companies continued foraging for fossil fuels in the continent’s frontier basins.

In the last edition of Africa Oil+Gas Report for the year 2021, we had declared: “For all we know, 2022 may turn out to be the year of basin openings. Shell and TOTAL continue their probes of the orange basin off the contiguous coasts of Namibia and South Africa; ENI will test the Lamu basin off Kenya; ReconAfrica will drill the first seismically defined location in the Kavango Basin. The testing of Zimbabwe’s Cahora Bassa basin is close to start”.

While Namibia opened up as a large deep-water frontier, it stumbled as an inland basin hunt. ENI lost its bet offshore Kenya and the jury is still out on Zimbabwe.

But we continue to have a wager on South Africa, despite the systemic opposition to fossil fuel development by the country’s political and business elites.

In this issue, we provide a list of new marginal field operators that look likely to get on the rig sites and start their development in the year. We also provide full disclosure on the three most prospective assets in the current Nigerian mini bid round.

Read your copy here.

We invite you to become a paying subscriber of our monthly harvest and walk through a number of operational events that will run through the year -from seismic activity through drilling count to oil field construction and FID issues. Our theme is Who Is Doing What and Where in 2023?

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. Published by the Festac News Press Limited since 2001, AOGR is a paid subscription, monthly hard copy and e-copy publication delivered around the world. Its website remains www.africaoilgasreport.com, and the contact email address is info@africaoilgasreport.com. Contact telephone numbers in the West African regional headquarters in Lagos are +2348124374087, +2348130733523, +2347062420127, +2348036525979, +2348023902519.

Editor


TOTALEnergies in 2050: The Day After the Night Before

By Gerard Kreeft

TOTALEnergies has recently announced that by 2050 the company will be on track to have 50% of its energy mix in renewables + 25% in “new molecules”(green fuels). The remaining 25% would be comprised of oil and gas including LNG. Guillaume de Witt, TOTALEnergies’ Hydrogen Lead Negotiator for Europe & North Africa unveiled this strategy during the Amsterdam Offshore Energy Exhibition & Conference 2022.

Guillaume de Witt, TOTALEnergies’ Hydrogen Lead Negotiator

While this is most newsworthy the question remains: how is this transition to take place? Where is its 2050 roadmap? Shareholders and energy analysts will no doubt be on a constant search for additional information. That TOTALEnergies can indeed surprise and pursue a well-thought-out strategy is certainly within the company’s DNA.  If successful, this will totally transform the oil and gas sector unlike anything in the recent past. It would totally destroy the comfortable vision of the integrated oil and gas sector of the last 50 years and create new alliances.

In TOTALEnergies’ new constellation, key questions remain: can the company compete with the green energy companies–Enel, Engie, Iberdrola, and Ørsted?  What will happen to its innovative deepwater exploration sector in which TOTALEnergies is a market leader? Given the resources required, will its deepwater exploration operations be spun off to possibly joint venture with other companies to ensure economies of scale? How will this affect TOTALEnergies’ African ventures, where the company has many of its assets?

Re-examining the TOTALEnergies Strategy

To understand the company’s strategy we must go back to 2020. Then TOTALEnergies took the unusual step of writing off $7Billion in impairment charges for two oil sands projects in Alberta, Canada. Both projects were listed as proven reserves. By declaring these proven reserves as null and void, with one swoop of a pen, TOTALEnergies cast aside the petroleum classification system, which was the gold standard for measuring oil company reserves.

The company simply decided that these reserves could never be produced at a profit. Instead, TOTALEnergies has substituted renewables as reserves that can be produced profitably.

TOTALEnergies’ strategy is based on the two energy scenarios developed by the International Energy Agency (IEA): the Stated Policies Scenario (SPS), which is geared for the short to medium term, and the Sustainable Development Scenario (SDS), which focuses on the medium long term.

Taking the “Well Below 2 Degrees Centigrade” SDS scenario on board, TOTALEnergies has, in essence, taken on a new classification system. By embracing this strategy, the company is the only major to have seen a direct benefit from using the Paris climate agreement to enhance its renewable energy base.

While it wrote off some weak assets, it also did something else: TOTALEnergies began to sketch a blueprint for how to transition an oil company into an energy company.

Patrick Pouyanné, TOTALEnergies’ chairman and CEO, then stated that by 2030 the company “will grow by one third, roughly from 3Million Barrels of Oil Equivalent per Day (BOED) to 4Million BOED, half from LNG, half from electricity, mainly from renewables.” This was the first time that any major energy company translated its renewable energy portfolio into barrels of oil equivalent. So, at the same time that the company has slashed proven oil and gas from its books, it has added renewable power as a new form of reserves.

Proven reserves long stood as the holy of holies for the oil industry’s finances—the key indicator of whether a company was prepared for the future. For decades, investors equated proven reserves with wealth and a harbinger of long-term profits.

Because reserves were so important, the reserve replacement ratio (RRR), the share of a company’s production that it replaced each year with new reserves, became a bellwether for oil company performance. The RRR metric was adopted by both the Society of Petroleum Engineers and the US Securities and Exchange Commission. An annual RRR of 100% became the norm.

But TOTALEnergies’ write-offs showed that even proven reserves are no sure thing and that adding reserves doesn’t necessarily mean adding value. The implications are devastating, upending the oil industry’s entire reserve classification system as well as decades of financial analysis.

How did TOTALEnergies reach the conclusion that reserves had no economic value? Simply put, reserves are only reserves if they’re profitable. The prices paid by customers must exceed the cost of production. TOTALEnergies’ financial team decided those resources could never be developed at a profit.

The company had not abandoned its oil and gas investments. However, its renewable investments were seen as additional ballast to its balance sheet, keeping it afloat as it carefully chooses investments, including oil and gas projects, with a high economic return.

Now apparently oil and gas are being viewed as liabilities and possible future stranded assets. The French giant is hastening the departure from fossil fuels or simply reducing its oil and gas portfolio.

Beyond the Green Challenge

Of the oil majors—BP, Chevron, ENI, ExxonMobil, and Shell—only Equinor has pledged to have more than 50% of its capital budget devoted to renewables by 2030. By signaling such a radical move, TOTALEnergies will ensure that the rest of the sector must react. This is not only a move to green itself but also a sign that it wants to become part of the Green Alliance, namely to join such companies as— Enel, Engie. Iberdrola, and Ørsted—who have pole position in determining the direction and scope of the global renewables market:

Enel: committed to achieving CO2 neutrality by 2040 instead of 2050, achieving 75% of electricity from renewables and 80% digitalization of its customers on the grid by 2025. and having an installed generating capacity of 75GW by 2050.

Engie: pledged to reduce to CO2 neutrality by 2045, 45% of investments is focused on renewables and by 2030 will have 80GW of installed generating capacity.

Iberdrola: in the period 2023-2025 the company will invest $50Billion and achieve net zero for Scope 1, 2 and 3 before 2040. By 2030 the company will have installed capacity of 100GW, valued at $70Billion.

Note: Essentially, scope 1 and 2 are those emissions that are owned or controlled by a company, whereas scope 3 emissions are a consequence of the activities of the company but occur from sources not owned or controlled by it.

 Ørsted: the Danish wind energy pioneer, continues to set new records. Ørsted share price in December 2022 was $93; five years earlier in 10 June 2016 it was $37. By 2030 the company’s goal is to have an installed capacity of 50GW. Ørsted is also involved with the building of two energy islands– Bornholm and North Sea– which will deliver 10GW of power.

What has set these companies apart is that they have created a huge competitive advantage which will be hard to challenge for newcomers. Moreover, they have moved well beyond simply dabbling in green energy. These companies have become specialists and now moving on to the next level: creating a digital platform on which value does not reside in owning resources but rather in managing data-driven ecosystems. Essentially borrowing a chapter from Uber, which does not own taxis or Booking, which does not own hotels. Creating a digital platform on which value does not reside in owning resources but rather in managing data-driven ecosystems.

How will shareholders react to these companies in 2023?  To date there is good news and bad news for green energy companies.

Table 2: Stock market prices of new energy companies 2018-2022

Year Enel Engie Iberdrola Ørsted
2018 $5 $16 $7 $49
2022 $5 $14 $12 $93

Note: Value based on January 2018 and December 2022

Enel, the Italian power company has seen its share price remain flat. Engie, the large French energy giant has seen its share price decrease by 12.5%. Iberdrola, the Spanish power company has had an increase of 71% and Ørsted, the Danish power company, has seen its stock soar by 90%.

The Challenges Ahead

For the oil majors economic challenges lie ahead. The Dow Jones Industrial Index in the period January 2018-December 2022 rose 31%: increasing from 25,295 to 33,147. The oil majors—BP, Chevron, Eni, ExxonMobil, Equinor, Shell, Repsol,  and TOTALEnergies—have shown mixed results in their stock prices between 2018 and 2022.

Table 1: Stock market prices of  majors 2018-2022(NYSE)

 

Year Repsol       BP       Shell Eni Total

Energies

Chevron ExxonMobil Equinor
2018 $17 $43 $69 $35 $58 $128 $87 $23
2022 $16 $35 $57 $29 $62 $179 $110 $36

Note: Values based on January  2018 and December 2022

 Repsol down 5%

BP down 19%

Shell down 17%

Eni down 17%

TOTALEnergies up 7%

Chevron up 39%

ExxonMobil up 26%

Equinor up 57%.

Whether a company is an oil company or an energy company seems to matter little to investors. Instead, they demand clarity. That is why Chevron, which is on track making 2022 the 35th consecutive year with an increase in annual dividend payout per share, has maintained its value. And why Equinor’s message of spending more than one-half of its capital spending on low carbon energy by 2030 is a leader in offshore wind technology, has caught the fancy of its investor community.

Will TOTALEnergies’ new message resonate with shareholders? Key challenges remain.

On the renewables front TOTALEnergies has confirmed it will have a 100GW capacity by 2030.

A key to TOTALEnergies success is its ability to step into projects at an early stage, some examples:

  • A 50% share of Adani Green Energy Ltd., India installed solar activities.
  • A 51% stake in the Seagreen Offshore Wind project in the United Kingdom.
  • Major positions in floating wind farm projects in South Korea and France.

TOTALEnergies new energy strategy is also heavily dependent on a number of subsidiary companies in which the company has invested. These include:

TotalEren: an IPP(Independent Power Producer) developer involved in all phases of project development and implementation with a generating capacity of 3.7GW and 4GW under construction.  According to Africa Oil and Gas Report, the company could become a candidate for a top-ten list of Africa’s leading  renewable developers.

Sunpower: has 6 GW of photovoltaic power installed globally.

Saft: a leading battery producer, whose lithium-ion batteries can store large amounts of electricity in a small amount of space.

Yet the various asset groups have failed to attract investor confidence. Why? Simply because they have created a diffused and splintered view of what TOTALEnergies is offering shareholders.

With the new strategy the investor community must be convinced that renewables  are not a second-tier after-thought. Currently TotalEnergie’s capital expenditures for the period 2022-2025 is anticipated to be between $14Billion-$18Billion per year: 50% ($7Billion-$9Billion) on hydrocarbons and only 25% ($3.5Billion-$4.5Billion) on renewables. What is the vision for 2050?

This is in sharp contrast to Equinor. Equinor expects gross investments in renewables of approximately $23Billion from 2021 to 2026, and to increase the share of gross capex for renewables and low carbon solutions from around 4% in 2020 to more than 50% by 2030.

African Challenges

Much of the 25% forecast hydrocarbon  budget, proposed for 2050,  will be focused  on African  low-cost, high-value projects, thus squeezing more value out of  various African assets to ensure a prolonged life cycle. Will TOTALEnergies’ deepwater  division seek other parties to ensure that its various projects can be delivered?

A prime example is TOTALEnergies’ Mozambique LNG project, which is expected to cost $20Billion and produce up to 43Million tons per annum.

In Angola the company produces more than 200,000BOED from its Blocks 17 and 32, as well as non-operated assets, including AngolaLNG.

In Namibia TOTALEnergies has made a significant discovery of light oil with associated gas on the Venus prospect, located in Block 2913B in the Orange Basin, offshore southern Namibia.

In South Africa the company is focused on its two assets: Brulpadda(drilled to a final depth of more than 3,600 metres) and Luiperd, the second discovery in the Paddavissie Fairway in the southwest of the block.

Some Final Thoughts

Charles Donovan, then director of the Centre for Climate Finance and Investment at Imperial College and lead author of a recent (May 2020) study released by Imperial College and the IEA (International Energy Agency) found that renewable energy investments are delivering massively better returns than fossil fuels. The study analyzed stock market data to determine the rate of return on energy investments over a five-and ten-year period.

Renewable investments in Germany and France yielded returns of 178.2% over a five-year period, compared with -20.7% for fossil fuel investments. In the UK, also over five years, investments in green energy generated returns of 75.4% compared to just 8.8% for fossil fuels. In the US, renewables yielded 200.3% returns versus 97.2% for fossil fuels.

Green energy stocks were also less volatile across the board than fossil fuels, with such portfolios holding up well during the turmoil caused by the pandemic, while the oil and gas sector collapsed. In the US, which provided the largest data set, the average market cap in the green energy portfolio analyzed came to less than a quarter of the average market cap for the fossil fuel portfolio—$9.89Billion for hydrocarbons versus $2.42Billion for renewables.

Speaking to Forbes.com, Donovan said “The conventional wisdom says that investing in fossil fuels is more profitable than investing in renewable power. The conventional wisdom is wrong.”

Given the dominant market position that TOTALEnergies has in Africa it is in pole position to play a key role in launching renewable energy projects. A sub-market which TOTALEnergies has overlooked.

TOTALEnergies’ 2050 announcement will start a new round of mergers, joint ventures and consolidation. The energy transition has its own speed and takes no prisoners. But this we do know: 2022 started with an energy crisis involving Russia and the Ukraine, and the last apple has not fallen from the TOTALEnergies’ tree.

 Note: Portions of this article have been previously published but have been included to give you the reader a more complete picture of this fast-moving drama.

Gerard Kreeft, BA (Calvin University, Grand Rapids, USA) and MA (Carleton University, Ottawa, Canada), Energy Transition Adviser, was founder and owner of EnergyWise.  He has managed and implemented energy conferences, seminars and university master classes in Alaska, Angola, Brazil, Canada, India, Libya, Kazakhstan, Russia and throughout Europe.  Kreeft has Dutch and Canadian citizenship and resides in the Netherlands.  He writes on a regular basis for Africa Oil + Gas Report, and is a guest contributor to IEEFA(Institute for Energy Economics and Financial Analysis). His book ‘The 10 Commandments of the Energy Transition ‘is on sale at https://books.friesenpress.com/store/title/119734000211674846/Gerard-Kreeft-The-10-Commandments-of-the-Energy-Transition

 

 


Edo (ERPC), Nigeria’s Third Functional, Privately Owned Refinery, Receives Crude Feedstock from Oza

Decklar Resources has announced the receipt of payment for the delivery of 10,000Barrels of crude oil to AIPCC owned refinery, which it initially described as “a small crude oil refinery in Edo State, Nigeria”.

“Trucking of oil has continued from the Oza Field to the Edo Refinery and Petrochemicals Company Limited (ERPC) in Edo State, Nigeria”, Decklar, a Canadian producer of Nigerian marginal oil fields, disclosed.

ERPC is a 6,000 barrels per day modular refinery, executed in two trains of 1,000BPSD; and 5,000BPSD, “and has been commissioned and is fully operational”, its owners say. “The refined products sold are Diesel, Naphtha and Low Pour Fuel Oil (LPFO)”.

ERPC is the third, fully commissioned, legitimate modular refinery with clear line of sight to feedstock in Nigeria,  after the Niger Delta E&P owned 11,000BSPD refinery on the Ogbele field in Rivers State and Waltersmith Petroman  owned 5,000BSPD in Ibigwe, Imo State.

Decklar says it has, in conjunction with partner Millenium, have issued another invoice for delivery of 5,000 barrels of crude oil (bbls) to ERPC “under the recently signed 30,000 Barrels crude sale agreement., “and initial payment for previous deliveries totaling 10,000 bbls has now been received.

Edo Refinery statement notes that work on the Phase 2 (15,000BPSD) has already commenced, with full operations slated to start in March 2023.

 


Algerian Court Finds Saipem Guilty of Fraudulent Practices

The Court of Algiers has imposed a fine of 34,000 Euros on Saipem SPA, the Italian engineering service provider.

The company says it welcomes “the absolutory content of the decision”, but it will “appeal the condemnatory content of the ruling, resulting in the suspension of its criminal and civil effects”.

The penalty is a result of the Court finding Saipem S.p.A. liable for the crime of “inflating the price on contracts awarded by a public company engaged in industrial and commercial activities, taking advantage of the authority or influence of representatives, to obtain advantageous prices compared to those normally charged, or to modify, to their advantage, the quality of the materials or services or the delivery or supply times”..

The ruling pertains to proceedings related to a 2008 bid for studies of competitive feed for the Rhourde Nouss Field.

“With reference to the claims brought by the Algerian state hydrocarbon company Sonatrach and Trésor Public (the national administration of the Treasury in France) as civil plaintiffs, the Court of Algiers, noted the absence of compensatory claims by Sonatrach against Saipem and upheld in minimal part the claims brought by Trésor Public, recognizing in favour of the latter a compensation for an overall amount of about 680.000 Euros, of which the quota directly pertaining to Saipem S.p.A. is equal to approximately 170,000 Euros”, Saipem says in a statement.

 


NIGERIA: Request for Qualification (RFQ) for the concession of the 700MW Zungeru Hydropower dam

PRODUCT OR SERVICE BEING SOUGHT:

Invitation for Submission of Request for Qualification (RFQ) for the Concession of the 700MW Zungeru

Hydroelectric Power Plant (ZHPP)

The Federal Government of Nigeria (FGN) through the National Council on Privatization (NCP) and its

Secretariat, Bureau of Public Enterprises (BPE) in conjunction with the Federal Ministry of Power

(FMOP), invites interested investors to express interest by submitting their Request for Qualification

(RfQ) for the concession of the Zungeru Hydroelectric Power Plant (ZHPP).

The strategic objective of the 700MW Zungeru Hydroelectric Power Plant at Zungeru, Niger State, is the need for increased electricity generation from diverse sources, particularly, from the hydroelectric potentials replete in Niger State.

This is with an overall objective to procure a concessionaire with the Technical and Financial capabilities

to operate, maintain and manage the Zungeru Hydroelectric Power Plant through professional and

efficient management practices for a minimum of thirty (30) years.

The Bureau of Public Enterprise (BPE) is seeking competent investors as concessionaires to

operate, manager and maintain the hydropower plant for 30 years. The Plant comprise a reservoir with

230-meter elevation, powerhouse containing four 175 MW turbine/generating units for a 700MW total

rated output. Project is expected to be commissioned in 2023.

Full details here.


TUNISIA: Calls for Tenders for Solar and Wind Projects Totaling 1,700MW

PARTNER CONTENT

Three calls for tenders for the development of solar and wind projects over 2023-2025 with a total capacity of up to 1.7 GW TUNISIA

  • Organization Name: The Tunisian Ministry of Industry, Energy and Mines
  • Organization Type: National Government
  • Tunisia issued the following three calls for tenders: 1 – Call for Tenders # 01-2022 for Photovoltaic Power Projects as follwos:

The Ministry of Industry, Mines and Energy (the Ministry) intends to select eight (8) power generation projects from photovoltaic solar energy of 100 Mega Watts (MW) each in four (4) rounds over 2023-2025 as the following:

  1. Round #1: 2 Photovoltaic Power Plants of 100 MW each with a submission deadline on Thursday, June 15, 2023 at 12:00 p.m. Tunis time.
  2. Round #2: 2 Photovoltaic Power Plants of 100 MW each with a submission deadline in March 2024.
  3. Round #3: 2 Photovoltaic Power Plants of 100 MW each with a submission deadline in November 2024.
  4. Round #4: 2 Photovoltaic Power Plants of 100 MW each with a submission deadline in September 2025.

The Ministry is inviting interested bidders to submit offers for the implementation of solar photovoltaic concession pro jects on sites suggested by bidders. In order to receive tender documents and additional information by email, interested bidders must register on inscription AO 01-2022.

2- Call for Tenders # 02-2022 for Wind Power Projects

The Ministry of Industry, Mines and Energy (the Ministry) intends to select eight (8) power generation projects from wind energy of 75 Mega Watts (MW) each in four (4) rounds over 2023-2025 as the following: Round #1: 2 Wind Power Plants of 75 MW each with a submission deadline on Thursday, September 14, 2023 at 12:00 p.m. Tunis time.

Full details here.


‘Utorogu LPG Project with Southfield Still on Course’, NCDMB Pronounces

The Nigerian Content Development & Monitoring Board (NCDMB) has dismissed any misgivings about “the quality” of the proposed agreement among would-be partners in the planned production of 123,000 metric tonnes per annum of Liquefied Petroleum Gas (LPG) from the Utorogu gas and condensate field, onshore western Niger Delta. The board also throws its weight behind the “credibility” of the project sponsor

The (NCDMB) had recently reported it had secured the approval of its Governing Council for a partnership to produce 123,000 metric tonnes per annum of LPG, which is about 10 percent of the country’s current consumption, from the Utorogu Gas Plant. That would mean a partnership between that company on one hand and NPDC and ND-Western, joint operators of the Oil Mining Lease (OML) 34, where the Utorogu field is located.

But the feelers from the industry is that Southfield Petroleum, this same company proposing the Utorogu project had fallen out with Seplat, over a similar proposition and the Seplat management was so angered by the course of events it took the company to court for redress after the company had itself taken Seplat to court, allegedly for breach of contract.

What is the issue? “The deal broke down because they (Southfield) didn’t even show up to build any facility, let alone receive the gas”, Seplat insiders say.

Now that Southfield is in discussion with ND-Western over a similar project, Africa Oil+Gas Report asked the NCDMB  if the board was “sure of them” (Southfield)?

Here is the response from Simbi Wabote, NCDMB’s Executive Secretary:

“Southfield Petroleum is a company we are partnering with in order to produce LPG within the Utorogu field. The company is currently in discussion with the a joint venture partners operating Utorogu gas plant, who are ND-Western and NPDC. Before the project will go ahead, they will be sure that there is gas availability and then that commitment has to be on the table. Where we are at now is the Front-End Engineering Design (FEED) for the project itself; but before we will beat our chest that we have secured that project, we’d ensure that all the i’s are dotted and the t’s are crossed.

“It is within the project development funnel and one thing we must understand about investments in general today is that, if you go and speak to Elon Musk and ask him about how many businesses did he invest in and he didn’t succeed, he will probably give you a catalog of what he tried and he didn’t succeed at, but with the ones he succeeded at, he is where he is today. Talk to Bill Gates, talk to Zuckerberg, nobody can tell you that every Investment they’ve been into was a success and that’s the challenge we have in Africa. The averse appetite for risk-taking is even in us as a people. You know about  the sense of adventure of Caucasians, you have to think and ask yourself: How many Africans will want to go and climb Kilimanjaro? How many Africans will want to enter the sea and swim with a shark or with a Whale? These are risks that people take in other to understand nature and these are serious risks. But send an African, particularly in Nigerian man, he will hardly want to take any risks as it were”.

The full interview with Mr. Wabote, over a range of issues, was published in the November 2022 issue of Africa Oil+Gas Report monthly. A summary of that interview will be available on this website next week.

 

© 2021 Festac News Press Ltd..