All posts tagged feature


Maússe is EnerMech’s Pointman in Mozambique

EnerMech, the Aberdeen-based energy industry services company, has appointed Celestino Maússe to the newly created role of Mozambique country manager as the company seeks to expand its business in the growing Mozambican energy market.

Mr Maússe will lead the business development effort within Mozambique and will aim to secure and deliver new contracts in country. Mr Maússe brings with him over fifteen years of oil and gas engineering experience, having worked as a process engineer in the areas of engineering, commissioning and start up across projects around the world.

Previously, he led business development in Sub-Saharan Africa for companies such as SNC-Lavalin and Kentz and has held general management positions in Mozambique for both Kentz and Golder Associates. In these roles, Mr Maússe serviced clients in the mining and oil and gas industries across the region, providing specialist engineering solutions to enhance project delivery and operational capacity.

EnerMech has also established an office in the capital city of Maputo, the gateway to Mozambique’s international energy market.

 


Algeria is Now A Net Exporter of Gasoline

By Toyin Akinosho

Algeria has returned to being a net exporter of gasoline, the most in-demand product of distillation of crude oil.

The country began exporting both gasoline and diesel, in 2020, the first time it is doing so in the last decade, the Algerian Press Agency reports.

Algeria used to be self-sufficient in petroleum products. Up until 2009 it was the only country among the top three African hydrocarbon producers to have enough products to spare for the export market. But years of under investment has dragged Algeria into the same product-import league in which Angola and Nigeria have been top card-carrying members for over 20 years.

With the ramp up of the Algiers refinery, Sonatrach, the country’s state hydrocarbon company and sole domestic refiner of Algerian crude oil, says it produced 9.5 Million tons of diesel and 3.4Million tons of gasoline in 2020.

Algeria ended its imports of diesel in March 2020 and ceased its import of gasoline in August of the same year as refining activity increased by 7.4% in the volumes of oil and condensate processed compared to 2019, from 27.2Million tonnes to 29.1million tonnes.

 

 


Oza Field Poised to Flow More Than the Trickle it Currently Does

By Sully Manope, in Port Harcourt

London listed minnow, San Leon Energy, has moved much closer to injecting the funds it says it plans to use to ramp up output from the Oza field, onshore Niger Delta, which has produced a trickle of crude oil: about 400Barrels of Oil Per Day, in the last one year.

San Leon will invest in Oza field, by way of both granting a loan to and taking equity interest in Decklar Resources Limited. San Leon will grant Decklar a loan of $7.5Million, and subscribe for a 15% equity interest in Decklar, with another $7.5Million.

Decklar, a Canadian player listed on the Toronto Stock Exchange, will re-enter Oza 1, perform a work over and drill a new well, to start with.

Oza field is held by and operated by Millenium Oil and Gas Company Limited, a Nigerian owned independent which won the field from the government in the 2003 marginal field bid round. Decklar is the holder of a Risk Service Agreement (RSA) with Millenium on the field. Translation: Millenium had been unable to properly optimize production from the field. Decklar is investing in the field, both technically and financially and the Risk Service Agreement is legal instrument to ensure that it makes back its investment and take some profit.

Decklar is raising money elsewhere for the ramp up, apart from the $15Million it has agreed it will receive from San Leon. It is trying to raise funds from private placement financing and secure a facility from a crude trading company, which is a subsidiary of an E&P major (most likely Shell Trading, but Decklar doesn’t say).

Decklar, indeed has announced it was completing a private placement financing for a total of just over CAD $4Million, (or $31.75Million) which will enable it to immediately advance operational activities to re-enter the Oza-1 well. Closing of this private placement is expected to provide sufficient funds to re-enter the Oza-1 well and to re-establish oil production at the Oza Oil Field.

“The previously announced debt funding plans, including the arrangements of which San Leon is part, are in the final stages of being concluded which will provide additional development funding for further operations and development drilling for the full development of the Oza Oil Field”, San Leon says in a statement  “The current private placement, which will allow Decklar Petroleum to begin the Oza-1 well re-entry and production operations on an expedited basis, is expected to close by the end of February 2021.

Civil works required for the Oza-1 wellsite are complete, according to Decklar, including rebuilding of the access road, construction of a concrete drilling pad, a concrete mud pit, buildings and other facilities required for well re-entry and drilling operations and management. A drilling rig located near the field has been contracted and will be moved to the Oza-1 wellsite in the near term, and operations to perform the planned re-entry of the Oza-1 well will begin shortly thereafter. The recently completed drilling pad will be used for both the Oza-1 well re-entry and the first horizontal development well on the Oza Oil Field.

The funds proposed to be used from San Leon on Oza are now expected to be used on the drilling of the new well on the Oza structure.


O&G Training Is A Big Opportunity in Angola

By Sully Manope

With the Angolan government increasingly focused on localisation, the training of low to mid-level, technical manpower has become a huge opportunity in the country.

The men who handle rope access, the technicians who work on scaffolds and those that weld and blast on corroded bodies of sea-based platforms, make the bulk of the workforce on producing facilities.

At any given phase of an E&P oil and gas project, the petroleum geoscientists, the reservoir engineers and the drilling engineers are few. Yet universities and polytechnics in Angola, as elsewhere in Africa, have placed more emphasis on training this elite technical workforce.

The bulk of the labour, however are those lower skilled technicians. Most of those who are doing the everyday work on TOTAL operated Kaombo, bp operated Greater Plutonio, ExxonMobil operated Kizomba fields and their likes, are not Angolans.

In the lead up to the commissioning of Kaombo, a horde of South African technicians were imported to work on rope access and welding and blasting. The men were being paid between $400 and $500 a day.  But many more Angolans could be trained in these jobs and gain international certifications.

International regulations require every employer to ensure that no person engages in any activity involving work at height (scaffolds, rope access) unless he or she is competent to do so.

Setting up training workshops and bringing trainers for days and weeks and facilitating international certification after the training is a worthwhile business to pursue in Angola now.

Originally published in the October 2020 edition of Africa Oil+Gas Report.


Egypt Launches a Digital “Upstream Gateway”

Egypt’s Ministry of Petroleum says that over 10 international oil companies operating in the country, have signed membership agreement to use the new digital data repository christened Upstream Gateway

In concert with Schlumberger, the oil service giant, the Ministry launched, earlier in the week of February 18, 2021, the “Egypt Upstream Gateway, an innovative national project for the digitalization of subsurface information”.

This digital platform will also enable global access to the country’s subsurface data, “which is kept evergreen by enhancing legacy datasets through reprocessing and new studies”, the Ministry declares. “This unique digital initiative will be used to unlock the potential of Egypt’s petroleum sector and promote the country’s exploration and production potential worldwide”, says Tarek El-Molla, the country’s minister of petroleum and mineral resources.

“The Egypt Upstream Gateway will digitally promote Egypt’s oil and gas bid rounds through seamless online access to the sector’s data, as well as endorsing our exploration potential worldwide.”, Mr. El Molla stresses.

Rajeev Sonthalia, president, Digital & Integration, Schlumberger, explains that “with the launch of this industry-first platform, the Egyptian Ministry of Petroleum and its affiliates—EGPC, EGAS, GANOPE—can digitally showcase national assets to investors worldwide, in addition to leveraging the latest digital technology and solutions to accelerate discovery throughout the country.”

The Egypt Upstream Gateway provides digital access to over 100 years’ worth of accumulated national onshore and offshore seismic, non-seismic, well-log, production, and additional subsurface data under a single platform. This data, which empowers de-risked decisions through the ability to explore multiple basins and evergreen data, can be accessed virtually from anywhere using the platform’s online portal. In addition, the Egypt Upstream Gateway will host Egypt’s upcoming bid round highlighting lease availability information to national and international investors worldwide.

 

 


Technip Gets the Contract for Subsea for Energean’s 90MMscf/d Development

AbuQir Petroleum, a Joint Venture between Energean and Egypt’s state oil company EGPC, has signed an integrated EPCI iEPCI™ contract to TechnipFMC for a subsea tie-back located offshore Egypt.

The contract covers the Engineering, Procurement, Construction, and Installation of four subsea wells as well as the subsea tie-back to the existing AbuQir Petroleum infrastructure and processing plant. The development wells will be drilled in a water depth between 60 and 90 meters. Three of them will be located in North El Amriya (NEA) concession, operated by Petroamriya JV between Energean and (state gas company) EGAS, and one in North Idku (NI), the concession operated by Nipetco JV between Energean and EGPC.

The NEA concession contains two discovered and appraised gas fields (Yazzi and Python) while the NI concession contains four discovered gas fields, one of which is ready for development. The integrated project NEA/NI is due to deliver first gas in 2H 2022 with 49 million boe of 2P reserves, 87% of which is gas, and peak production is expected to be approximately 90 MMscf/d plus 1 kbbl/d of condensates.


NCDMB Will Extend Its ‘Transitional’ Equity to Ibigwe Expanded Refinery

Nigeria’s National Content Development Monitoring Board (NCDMB) will invest in the next phase of the Waltersmith Refinery in Ibigwe, Imo State, on the eastern flank of the Niger Delta basin.

The board is a 30% participant in the first phase, a 5,000BOPD facility with output capacity of 271Million litres of Petroleum Products, per year.

But whereas the NCDMB’s $10Million investment in the first phase is transitional equity, which means it is expected to pull its funding when the project is developed, the board is impressed enough with the first phase that it is committing itself to the 25,000BPD Phase 2 Condensate Refinery, for which Final Investment Decision is under active consideration.

“Yes, we will continue”, Simbi Wabote, the NCDMB Executive Secretary told Africa Oil+Gas Report. “They have done what they said they would do and we are happy with them”.

Abdulrazaq Isa, Chairman of the board of Waltersmith confirmed the development to Africa Oil+Gas Report. “Ÿes they are working with us on the second phase”, he said.

The 25,000BPD Condensate Refinery will utilize feedstock from the nearby ANOH Gas Processing Company (AGPC) “and some additional commercial discussions were progressed on some nearby oil and gas assets”, Waltersmith says in a briefing.

Front End Engineering Design (FEED) for the 25,000BPD Phase 2 Condensate Refinery was completed in Q1 2020, Feasibility study in Q22020 and the EPCIC Contracting process has been initiated while delivery is expected by Q4 2022.

The groundbreaking ceremony was done in conjunction with the commissioning of the Phase 1 Refinery in November 2020 by President Muhammadu Buhari.

When completed, the Phase 2 will deliver about 1.4Billion litres per year of refined petroleum products (Premium Motor Spirit – PMS, Diesel, Kerosene, Aviation Jet Fuel and HFO) in addition to the 271 million liters from the Phase 1 Refinery.


Has the World Moved Beyond Peak Gasoline Demand for Light Vehicles?

PARTNER CONTENT/IHS MARKIT

GM’s aspirations to End Sales of Gasoline-Powered Light Vehicles by 2035 Latest Sign that Peak Gasoline Demand from Light Vehicles Has Already Come and Gone

Oil demand (gasoline and diesel) from Light Vehicles peaked in 2019

The recent announcement by GM that it aspires to phase out sales of oil-powered light vehicles (LVs) by 2035—part of a broader proposal to make the automaker a net-zero-carbon company—is a prominent signpost that oil demand from LVs has already peaked, according to a new analysis by Jim Burkhard and the IHS Markit Crude Oil Market Service.

IHS Markit places the global peak for oil demand (gasoline and diesel) from LVs in 2019 when said demand averaged 29.1Million barrels per day (MMBOPD). The peak in demand is due to the impact of rising vehicle fuel economy and emission standards, and as time goes by, from more sales of electric vehicles.

“The GM announcement is a notable signpost on the road to decarbonization of road transportation. It demonstrates growing acceptance of tighter vehicle emission standards and of the energy transition beginning to move at a faster pace. When it comes to oil demand from light vehicles, it’s the latest sign that the 2019 peak is permanent.” – Jim Burkhard, vice president, oil markets and mobility and energy future, IHS Markit

For the oil market, what matters is the amount of demand that will be displaced by electricity.

Previous IHS Markit research has projected that electric vehicles (including battery, plug-in hybrid and fuel cell electric) will comprise 60-80% of all new car sales in 2050 (compared to just 2.2% of new car sales in 2020, according to IHS Markit data).

Nevertheless, oil will still be the dominant energy source for transportation for years to come due to the sheer size of the global car fleet and the amount of time it takes for it to turn over.

In 2020, there were about 9.2Million light plug-in electric vehicles (PEVs) in the global light vehicle fleet. When you include 20,000 fuel cell electric vehicles, these vehicles displaced about 150,000 barrels per day (b/d) of oil consumption—less than 0.2% of world consumption. When you include electric city buses and two-wheelers, the amount of oil displaced by electric vehicles totals 370,000BOPD, or just 0.4% of world oil demand in 2020.

“By 2020 electricity use in road transportation had only displaced about 370,000BOPD of oil demand—0.4% of world oil consumption. But it is clear that this will rise. By 2025, as much as 1.5 MMBOPD of oil will be displaced.” – Jim Burkhard, vice president, oil markets and mobility and energy future, IHS Markit

The amount of oil displaced by electricity will continue to rise, led by growth in PEV sales. IHS Markit estimates that by 2025 light PEVs will displace about 0.9-1.1 MMBOPD of world oil demand. Adding in electric buses and two wheelers, oil displacement by electricity in road transport could hit 1.5 MMBOPD—the equivalent of 1.4% of what IHS Markit projects for total world oil demand in 2025.

That much displacement—while still relatively small—is significant in the sense that oil-powered LVs were the biggest source of aggregate oil demand growth from 2000 to 2019. Increased electrification, along with rising fuel economy and emissions standards, will play an important role in the plateau and then decline of world oil demand that IHS Markit expects to emerge at some point over the next 10-15 years in its base case outlook.

“The GM announcement is the latest piece in a much larger story. It’s further proof that, while the road ahead is still a long one when it comes to dislodging oil as the predominant transportation fuel, it is very much a one-way street and there is no turning back.” – Fellipe Balieiro, director, mobility and energy future, IHS Markit

 


Mercuria Wants a Share of the Suez Canal

By Mohammed Jetutu, in Cairo

Crude oil trader, Mercuria, has expressed interest in investing in the Suez Canal, the international maritime shipping lane that is a favourite of crude oil and natural gas exporters.

The 17-year-old company, with gross turnover of $116Billion and 368Million TOE (Total trading volume) in 2019, “wants to be involved in the area because it is geographically important and is one of the most promising economic regions in the world”, according to Mustafa Madbouli, Egypt’s Prime Minister.

The Suez Canal runs through Egypt, spanning north to south from the Mediterranean Sea to the Red Sea.

For most of the six weeks of 2021, it has been the preferred shipping route for LNG carriers heading from the United States to East Asia and looking to avoid a highly congested Panama Canal, according to Argue Media. Shippers are finding that the shorter journey offered by Suez offsets the toll they’ll have to pay by choosing the canal over rounding the Cape of Good Hope.

Mr. Madbouli held a meeting with the Egyptian officials of the company, including Majid Shenouda, CEO of Mercuria Egypt, over the terms of Mercuria’s proposed investment. The government side at the meeting included Tariq El-Molla, Minister of Oil and Mineral Wealth, Osama Rabei, Chairman of the Suez Canal Authority, and Yahya Zaki, Chairman of the Suez Canal Economic Authority.

Mercuria is proposing to invest $450Million in ship supply, marine waste collection and water purification, as well as shipping services in the Suez Canal area. The company executives told the government officials that Mercuria has a timeline for implementation of no more than 36 months.

Mr. El Molla, the petroleum minster, disclosed that Mercuria had been in contact with the Ministry for some time, and there are many aspects of cooperation, especially since the oil sector in Egypt has the infrastructure, human skills and experiences that can be hired to serve all proposed projects.

At the end of the meeting, the Prime Minister directed the completion of the negotiation process with Mercuria operates in more than 50 countries around the world, with fixed asset size of up to $2.8Billion, according to its website.

 


Financing Opportunity Opens for Miningrid Projects in Benin Republic

Companies seeking results-based finance for minigrid projects in Benin Republic can now apply for pre-qualification to the facility.

Pre-qualification for the Universal Energy Facility will close on 4 March 2021.

the Universal Energy Facility will disburse grant payments to deliver over 7,000 electricity connections based on a results-based incentive of $433 per connection.

The review of applications is expected to be completed by 19 April 2021

The Universal Energy Facility is a results-based financing facility managed by Sustainable Energy for All (SEforALL).

The Benin window of the facility is funded by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).

The opening of the facility in Benin is the next step in SEforALL’s push for catalysing faster progress on Sustainable Development Goal 7 (SDG7) through results-based financing.

The Benin window falls under the facility’s first set of countries, where it focuses on accelerating electricity connections through mini-grids. By tackling one of the most challenging energy technologies in its first phase, the Universal Energy Facility will demonstrate the effectiveness of results-based financing for making energy projects viable. In October 2020, the facility opened to support minigrid projects in Sierra Leone and Madagascar.

Pre-qualification for the Universal Energy Facility in Benin will close on 4 March 2021. The review of applications is expected to be completed by 19 April 2021,

To apply for the facility, please click here.

 

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