All posts tagged feature


Angola Seeks Tenders for Accessibility Work on Kassange Interior Basin

Angola’s National Agency FOR Petroleum Gas and Biofuels (ANPG) is asking for tenders for “Acquisition of Services for Accessibility of the Interior Basins of Kassange”.

The proposed contract is one of several that are meant to provide a basic understanding of this basin, prior to detailed study for accumulation of such geoscientific knowledge to enable the country offer licences in the basin in bid rounds.

Apart form Kassange, Angola has two other interior basins. They are Okawango nd Etosha.

Unlike Kwanza, Namibe and Congo basins, the interior basins are entirely onshore.

Deadline for the Submission of Applications is February 12th, 2021 at 16:00.

Please find herewith the tender’s full details.

 

 

 


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

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

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

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

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

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

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

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

 

 

 


Savannah Slashes Planned Gas Drilling from Four Wells to One

By Macson Obojemiemoin

…British company annuls $53Million of planned expenditure on three wells and redirects money to gas supply optimisation

Savannah Energy has reported drastic changes in its planned principal work programme in the 2020-23 period. Those changes involve significant reduction in drill bit activity and acceleration of work on the midstream segment of the company’s natural gas production and supply business in Nigeria.

“The changes will see only one gas well drilled on the Uquo field, (as opposed to four assumed previously)”, the company says in a report.

Savannah will however accelerate the Uquo field compression project, previously assumed to commence in 2026/27, to 2021/22.

The change in drilling plans results from the company’s amendment of its planned four-year capital expenditure programme in Nigeria, as originally set out in the Nigeria Competent Person’s Report (the “Nigeria CPR”) published December 2019.

“The Company now expects to reduce its Nigerian capital expenditures by 15% over the 2020-23 period from approximately $118Million to S$100Million”, Savannah explains. “This has resulted in a reduction in the overall indicative Group capital expenditure plans of around 13% from $137Million to $119Million over the same period”.

Savannah explains in a spreadsheet that it will be spending $45Million between 2021 and 2022 on the Uquo field compression project, a project that was not in the previous plan. Conversely, it will be annulling the planned spend of up to $53Million between 2021 and 2023, a programme that was the most prominent in the previous plan.

These changes, Savannah, argues, follow “the completion of the relevant technical and commercial studies”.

Savannah assures that “the Uquo reservoir continues to perform in line with expectations and that the proposed change in the capital expenditure profile is not expected to impact Uquo field production or expected ultimate reserve recovery”. The amendments, it contends, “enhance the project economics of the ongoing Uquo field development”.

 

 


New York City Pension Funds Pull Out of Fossil Fuel Holdings

New York City’s largest pension funds have voted to initiate full fossil fuel divestment, selling off an estimated $4Billion of holdings in fossil fuel corporations, such as ExxonMobil.

The city’s announcement fulfills its commitment to divest from fossil fuels.

NYC’s pension funds, valued at $239Billion, are the largest municipal pension funds to divest globally.

The city’s divestment commitment, made in 2018, inspired further action worldwide. It was followed by commitments from many other large funds, including the City of London, the Norwegian Sovereign Fund, and the New York State Common Retirement Fund. Today’s announcement confirms the City’s commitment to divest from fossil fuels within five years.

Divestment has exploded over the past decade from a symbolic action by small college endowments into a worldwide movement that has led to over $14Trillion worth of investment funds divesting or committing to divest from the oil, gas or coal industries.

In order to fulfill the Paris climate agreement’s goals of staving off catastrophic climate change, all major finance of fossil fuels and deforestation must end by 2030.


GE Secures Contract to Equip Senegal’s 300MW Power Plant

By Macson Obojemuemoin, in Dakar

GE has secured an order to supply power generation equipment for what is potentially the largest power plant in Senegal.

The American power service provider says it will supply two 9E.03 gas turbines, one STF-A200 steam turbine, three A39 generators, two Heat Recovery Steam Generators (HRSG) and additional balance of plant equipment, under a contract signed with West African Energy.

The project is the Cap des Biches combined cycle gas turbine power plant, expected to generate 300 megawatts (MW), on completion, nearly 25% of the power consumed in Senegal and the equivalent electricity needed to power approximately 500,000 Senegalese homes.

What GE is servicing is an expansion. In 2016 ContourGlobal started generating electricity with a 53MW power plant on the same site.

“Cap des Biches Power Plant represents another opportunity to use gas-fired generators as an ideal complement to variable renewable resources because they can change power levels quickly, turn down to low levels when demand is lower, and start rapidly”, says Elisee Sezan, CEO for GE’s Gas Power business in Sub-Saharan Africa. “All of these attributes enable gas turbines to work in concert with renewables to maintain reliability in a power system. The plant will provide flexible power to Senegal and help improve the quality of people’s lives.”

In 2020, GE’s 9E gas turbine fleet celebrated 40 years of operations globally. It has a large installed base of over 650 units in the world located primarily in Asia, China, Europe, Africa, and the Middle East.

 


Tlou Looks for Money to Fund Botswana Power Project

By Bunmi Christiana Aduloju

Tlou Energy is currently seeking funding for development of the Lesedi Power Project in Botswana, with plans to develop gas and solar power generation assets with the sale of electricity into the regional power grid.

The London listed company claims it has completed formalities for a 2MW Power Purchase Agreement (PPA) with Botswana Power Corporation (BPC) and has received the signed PPA and Grid Connection Agreement.

The project covers an area of approximately 3,800 Km2 and consists of four Coal and Coal Bed Methane (CBM) Prospecting Licences (PL) and a Mining Licence (ML).  The Mining Licence area is currently the focal point for Tlou’s operations and includes the Lesedi production wells or ‘pods’.

“Tlou has the only independently certified CBM gas reserves in Botswana, with 252 Billion Cubic Feet (Bcf) of 3P gas reserves certified in the Lesedi project area”, the company claims.  “In addition, the 3C Contingent Gas Resources are approximately 3 Trillion Cubic Feet (Tcf)”.

Phase one involves transmission line construction, transformers, grid connection, electricity generators and potentially the drilling of additional gas wells. The ~100 Km transmission line will run from the Lesedi project to the town of Serowe where it will connect to the existing power grid. Initial generation is proposed to be up to 2MW of electricity. Funding required for phase one is ~ $10Million which can be staged if necessary or prudent to do so. “

Phase two funding is for the expansion of electricity generation up to 10MW. This will involve drilling more gas wells and the purchase of additional electricity generation assets. Funding required for phase two is ~ $20Million. Upon successful completion of phase one and two, the Company plans to expand the project beyond 10MW.

Funding discussions are progressing well, in particular with Botswana based institutions with which the Company is in ongoing discussions. Should technical and risk assessments on Tlou’s operations be successful, the relevant parties would then seek internal approval to proceed, followed by legal and other due diligence. If such approval is granted, which is currently expected towards the later end of Q1 2021, Tlou would then be in a position to announce further details of the proposed deal.

Tlou is also considering what further progress can be made at Lesedi prior to conclusion of any Botswana based finance. Activities could include the purchase of land for gas and solar development, preparatory work on transmission line infrastructure, and drilling operations. Undertaking this work in the near term and in advance of the conclusion of the ongoing discussions in Botswana could facilitate a more rapid development of the project – all subject to funding as well as any pandemic related restrictions that may be in place.

 


Morocco’s Tender for 400MW Solar Project Ends January 31

Submissions for Morocco’s tender for the construction of the first phase of the Noor PV II complex will wrap up on January 31, 2021.

Moroccan Agency for Sustainable Energy (MASEN) called for expressions of interest (EOIs)  for the 400MW project in 2020.

Noor PV II Solar complex involves six locations: Sidi Bennour (48MW), Kelaa sraghna (48MW), Taroudant (36MW), Bejaad (48MW), El Hajeb (36MW) and Ain Beni Mathar (184MW). The given capacity is in direct current (DC).

Winning bidders will be announced in the second quarter. The contracts are due to be signed in the third or fourth quarter of 2021.

Morocco’s Noor solar programme was introduced back in 2009 with the goal of adding at least 2,000MW of solar PV across the country, supporting the Kingdom’s target of growing the proportion of renewables in its installed power mix to 52% by 2030.

Construction of the first phase of the project – Noor I – began in 2013, and reached completion in 2016. On 4th February 2016, King Mohammed VI chaired the commissioning ceremony at the first plant, and officially launched the construction of phase II and III of the solar complex.

While Noor I and Noor II use concentrated solar power (CSP) technology to generate electricity with the help of 12-metre-tall mobile parabolic mirrors, Noor III will introduce a technological variation of CSP technology, by using a solar tower. The fourth phase will use photovoltaic technology.


Sub-Sahara Africa Energy Outlook 2021

 Explore what the year ahead may look like for SSA’s energy sector.

 The Sub-Saharan African energy industry as a subset of the Global Industry is also struggling with the realities of COVID-19, despite the exciting news of commencement of vaccination. Waking up from the nightmare of 2020, this year holds mixed expectations amid hopes of containment of the virus.

On the oil and gas front, against the recent OPEC+ collective agreement, Saudi Arabia announced a unilateral production cut of 1 mmbls, adding to prevailing uncertainties on oil price projections.  Biden’s Presidency is expected to amplify Europe’s and Asia’s acceleration of Renewables, raising existential concerns for Africa’s oil industry, in addition to contending with COVID-19.

Certainly, there is so much to contend with in the coming days, with respect to, not only the oil and gas and energy industry, but the general business climates of the sub-region. The need to critically look at the direction and impact of local policy variables in the face of these uncertainties cannot be sooner.

Against these backgrounds, AOGS Energy Resources and her Partners invite you to the Sub-Saharan African Energy Outlook 2021 Webinar on Wednesday, Jan 27, 2021 at 13.00 GMT+1.

Featuring an eminent panel of leaders, the session aims to make informed analyses of key drivers likely to shape the industry in the year ahead and offer critical scenarios and insights that benefit the region’s common destiny.

Areas to be covered include:

  • Global oil and non-oil events and their implications for Sub-Sahara African Energy sector
  • Key policy variables across the region
  • Oil & Gas projections in key countries – Nigeria, Ghana, Sierra Leone, etc
  • Impact of Renewables

 


Conoil Pays Deposit for Chevron’s Stake in OMLs 86 and 88

By Jo-Jackson Mthembu, in Yenagoa

Conoil Producing, the Nigerian E&P independent owned by the billionaire Mike Adenuga, has paid a deposit for its purchase of the 40% equity held by Chevron Corp. in Oil Mining Leases (OMLs) 86 and 88.

Conoil won the drawn out bid for the two shallow water assets and had been in discussion with the California headquartered major, since Africa Oil+Gas Report broke the story in August 2020.

Conoil bid over $250Million for the blocks, which lie in contiguity with some of its own producing properties.

Chevron had been trying to dispose the shallow water acreages, located off the mouth of the current Niger Delta basin, for over six years. They are part of the five Nigerian tracts acquired in the course of the merger between Chevron and Texaco 22 years ago.

But things only revved up in the last 12 months. Africa Oil+Gas Report initially disclosed, in May 2020, that bidders were expected to have made full disclosure of their financial and operating capacities by the end of April 2020.

OML 86 contains the Apoi fields; the largest being North Apoi.

It also holds Funiwa, Sengana and Okubie fields. One recent discovery: Buko, straddles Shell Nigeria operated Oil Prospecting Lease (OPL) 286 and is either on trend with, or on the same structure as the HB field in OPL 286. OML 88 holds the Pennington and the Middleton fields, as well as the undeveloped condensate discovery, Chioma field.

The conclusion of this sale means that Chevron has disposed of all the legacy shallow water assets it acquired when it purchased Texaco in 1999.

 


Adom-Frimpong is new Chairman of Ghana’s Oil Revenue Watchdog

Ghana’s Public Interest and Accountability Committee (PIAC), the statutory body with oversight responsibility of the management and use of the country’s petroleum revenues, has elected Kwame Adom-Frimpong as its new chairman.

Mr. Adom-Frimpong, a professor of accounting who represents the Institute of Chartered Accountants, Ghana (ICAG) on the PIAC, was elected in a unanimous decision by the Committee, drawn from 13 nominating institutions, according to a statement by the PIAC communications department. He will steer the affairs of PIAC as Chairman for one year, having taken over from Noble Wadzah, whose membership tenure on the Committee expired at the end of last year.

Adom-Frimpong is a graduate of the University of Wales, Bangor, UK (MBA) and the University of London. He obtained his Doctorate degree in Business Administration (DBA-Finance option) in 2001 from University for Professional Studies, Arcadia, USA and again had PhD in Economics Finance from the same University in 2004.

He is currently the Managing Director of Mainstream Reinsurance Company and a Partner of Adom Boafo & Associates, a firm of Chartered Accountants and Management Consultants. He worked with PricewaterhouseCoopers for five years as Audit Supervisor, five years with SSNIT as Head of Audit and ABC Brewery Company as Senior Cost and Management Accountant for four years.

Adom-Frimpong qualified as a Chartered Accountant in 1990, and is the immediate past President of the Institute of Chartered of Accountants Ghana (ICAG). He is a Fellow of both the Chartered Institute of Bankers (FCIB) and the Chartered Insurance Institute of Ghana (FCIIG). He is also a Barrister-at-Law and a member of the Ghana Bar Association.

 

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