All posts tagged feature


AOGS Energy Webinar Series

Theme: Energy Transition and Implications for Nigeria’s Economy – A Critical Assessment

Oil Majors, especially of the European extraction, are taking ambitious steps to commit to green energy targets and investments. According to the United States Energy Information Agency, EIA, the oil industry faces increasing demands to respond to the low carbon agenda. And leading the response are European companies like TOTAL SE, which in 2020 announced a $7b write-off in its Canadian “proved reserves” – that gold standard of value for oil companies. The action probably signaled early steps at transiting from an Oil Major to an Energy Major. With similar actions from Shell, BP, ENI, etc., it seems the energy transition train has literally left the station.

Is Nigeria’s 40 billion barrels proved oil reserves (or parts of), at risk of being written off someday to be replaced by green energy assets in the oil (sorry, energy) majors’ portfolio mix? Long shot?

Join the conversation at the AOGS Energy Webinar Series and see if and how the future of the Nigerian oil industry is likely to be re-calibrated and what it may mean for the economy and business. Sub-themes include:

  • Global Trends in Energy Transition
  • Regulatory framework on Net Zero Positions in the Oil and Gas Industry
  • Energy Transition and Nigeria’s Crude Oil Reserves Development Strategy
  • Local Content and Energy Transition Implications
  • Energy Transition and Nigeria’s Business & Economic Environment
  • Nigeria power sector in the face of Energy Transition
  • The impact of Energy Transition on the financial sector

Confirmed Speakers

  1. Dr Felix Amieyeofori, Chairman, AOGS Energy Resources and Lead Promoter, EnergyHub
  2. Prof Prof Joseph Ajienka,Emmanuel Egbogah Chair of Petroleum Engineering, University of Port Harcourt
  3. Gerard Kreeft, Energy Transition Advisor, The Netherlands
  4. Omowumi O. Iledare, Institute for Oil and Gas Studies, University of Cape Coast, Ghana
  5. Professor Asiwaju Busari Akande, Islamic Institute of Accounting and Finance, Ilorin
  6. Faruk Y Yusuf, Ag Director, Renewable and Rural Power Access, Federal Ministry of Power, Abuja
  7. Toyin Yusuff, CEO Makitas Energy Ltd, Chairperson Future Energy and Renewable Committee, WEOG
  8. Dr Patrick Obah, Director, Policy Research and Statistics, NCDMB

 

Date:                    March 23, 2021

Time:                    10 am – 1pm

Platform:            bit.ly/3uPREyL (Zoom)

 


Andrew Mackenzie Is the Next Chairman of Shell

The Board of Directors of Royal Dutch Shell plc has announced the appointment of Sir Andrew Mackenzie as the new Company Chair with effect from the conclusion of Shell’s 2021 Annual General Meeting, scheduled for May 18, 2021.

He will succeed Chad Holliday who will step down on May 18 having served as Chair for six years and as a Board Director since September 2010.

Mackenzie, a British national, joined Shell’s Board in October 2020, after a distinguished career in the energy, petrochemicals and resources sector, latterly as Group CEO of BHP from 2013 to 2019. From 2004 to 2007, at Rio Tinto, he was Head of Industrial Minerals and Diamonds. Prior to this, over a 22-year career at BP, he held senior leadership roles in exploration, research and development, and chemicals.

“His contributions to geochemistry and earth science led to his appointment as a Fellow of the Royal Society in 2014”, Shell says in a statement, “and he received a knighthood in 2020 for his services to business, science and technology”.

The statement adds that Mackenzie is bringing to Shell “his experience of leadership, his global outlook, and a deep understanding of the energy business and climate action”.

The search for the new Chair was led by Euleen Goh, Deputy Chair and Senior Independent Director. The thorough and robust process included engagement with some of Shell’s larger investors, seeking input on the skills, attributes and sector knowledge that they considered important for the role. In addition to proven experience of leading a large, complex international organisation, the requirement was for someone with significant experience in capital discipline and with the ability to balance, and judge the timing, of the transformational changes that Shell needs to make.

 


TOTAL Publishes Third Party Reviews of its ESIA on the Ugandan Basinwide Field Development

French major TOTAL has published the studies, independent third-party reviews and social and environmental action plans related to the Tilenga project in Uganda and the EACOP (East African Crude Oil Pipeline) project in Uganda and Tanzania.

These documents are available here.

“These projects are undertaken in a sensitive environmental context and require the implementation of land acquisition programmemes with a specific attention to respecting the rights of the communities concerned”, TOTAL says in a statement.

“Environmental and social impact assessment (ESIA) studies have been conducted and approved by the Ugandan and Tanzanian authorities for both projects, which are carried out in compliance with the stringent performance standards of the International Finance Corporation (IFC). Moreover, several independent reviews have been conducted by third-party organizations to ensure that the projects are implemented in compliance with social and environmental best practices. These reviews also allow to assess the effectiveness of the actions undertaken, to identify areas of improvement and have resulted in related action plans.

TOTAL says that in line with the “Avoid – Reduce – Compensate” principles that underpin its Biodiversity Policy published in 2020, it has decided to voluntarily limit the Tilenga project’s footprint within Uganda’s Murchison Falls park. “While the current permits cover nearly 10% of the park, the development will be restricted to an area representing less than 1% of its surface, and the undeveloped areas will be voluntarily relinquished without delay”, the statement explains. “In addition, the project has been designed to minimize the footprint of the temporary and permanent facilities, which will occupy less than 0.05% of the park’s area”.

The Group also confirms its commitment to implement action plans designed to produce a net positive impact on biodiversity in the development of these projects. These plans will be defined in close cooperation with the authorities and stakeholders in charge of nature conservation in Uganda and Tanzania. “Accordingly, TOTAL will provide its support to increase by 50% the number of rangers ensuring the preservation of Murchison Falls park and will support a programmeme to reintroduce the black rhinoceros in Uganda, in partnership with the Uganda Wildlife Authority (UWA)”, the major says. “TOTAL is also working closely with IUCN experts to integrate the best practices for the protection of chimpanzees, particularly by promoting the conservation of forest habitats”.

The Tilenga and EACOP projects require the acquisition of 6,400 hectares of land, on which the primary residences of 723 households are located. Each of these households will be given the choice between a new house or monetary compensation. “The first 29 relocated households, residing on the Tilenga Central Processing Facility site, have all elected to receive a new house. The other land acquisition activities will be carried out in accordance with the compensation framework approved by the authorities.

We acknowledge that Tilenga and EACOP projects represent significant social and environmental stakes, which we are taking into consideration responsibly. We are mobilizing substantial resources to ensure that these projects are carried out in an exemplary manner and create value for the people in both countries. In view of the questions raised by stakeholders, the commitment of Total is to answer to all questions and to ensure complete transparency on the studies conducted by Total and independent third parties and the actions taken as a result”, said Patrick Pouyanné, Chairman and Chief Executive Officer of TOTAL.

 

 


Egypt’s Damietta LNG Partners Finalise Agreement

Italian player ENI says it has closed the agreement signed last December with the Arab Republic of Egypt (ARE), the Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS) and the Spanish company Naturgy that will restart the Damietta liquefaction plant in Egypt, settle Union Fenosa Gas and SEGAS’s outstanding disputes with EGAS and ARE, and effect a corporate restructuring of Union Fenosa Gas, whose assets have been divided between ENI and Naturgy, as well as of SEGAS which will now be owned 50 percent by ENI, 40 percent by EGAS and 10 percent by EGPC.

The liquefaction plant, owned by SEGAS, with a capacity of 266Billion cubic feet per year, which has been idle since November 2012, has resumed production.

The first LNG cargo was carried out on February 22, followed by a second cargo on March 4, while a third, which is being loaded at the facility, will be sold directly by ENI to its customers in Europe.

The purchase of Egyptian LNG consolidates ENI’s integrated development strategy by increasing the volumes and flexibility of its portfolio, in synergy with its upstream assets.

Through this agreement, the company strengthens its presence in the East Mediterranean, a key region for the supply of natural gas, which is a fundamental resource for the energy transition, of which Egypt is the main producer in the area.

As for Union Fenosa Gas’ activities outside Egypt, ENI will take over the natural gas marketing activities in Spain, strengthening its presence in the European gas market.

The agreement comes at an important time when, thanks in part to the rapid entry into production of ENI’s recent natural gas discoveries, especially from the Zohr and Nooros fields, Egypt has regained full capacity to meet domestic gas demand and can allocate excess production for export through LNG facilities.

 


Uganda’s National Oil Company Invites Bids For Disaster Recovery Solution

The Uganda National Oil Company Limited (UNOC) has allocated funds to be used for the Provision, Installation, Training and Commissioning of a Disaster Recovery Solution for UNOC.

The company invites sealed bids from eligible bidders.

Bidding will be conducted in accordance with the Open Domestic bidding method contained in the Public Procurement and Disposal of Public Assets Act, 2003, and is open to all bidders.

Interested eligible bidders may obtain further information using the email: pl.unoc@unoc.co.ug and inspect the bidding document at the address given below at 8(a) from 8:00am to 4:00pm.

Bids must be delivered to the address below at 8(a) at or before 10:00am on 6th April, 2021.

Fuller details in this link.


Nine Journalists Selected for Premium Times’ Oil and Gas Media Fellowship

PARTNER CONTENT/PETROLEUM PEOPLE

 The Premium Times Centre for Investigative Journalism (PTCIJ), through its Natural Resources and Extractives Programme (NAREP), has selected nine journalists across Nigeria for its flagship NAREP Oil and Gas Media Fellowship.

This fellowship aims to advance natural resource journalism in Nigeria. It is designed to train and build journalists that can effectively report and analyse the oil and gas sector by equipping them with the tools and resources they need.

Following the organisation’s call, PTCIJ received 1,429 applications from journalists and non-journalists across the country. Out of these, seventeen journalists were shortlisted and nine of them have been finally selected from across eight media organisations following interviews by an internal selection committee.

The selected journalists underwent a three-day intensive training which introduced them to the oil and gas sector. The training started on the 2nd of March and ended on the 4th of March, 2021.

The participants were trained by experts on a range of issues including but not limited to revenue management and distribution in the oil and gas sector, the impact of the management of oil and gas on the quality of life of Nigerians, laws and regulations in the oil and gas sector, review of the underrecovery regime, use of the freedom of information act, data presentation and analysis, making sense of the figures in reporting the oil and gas sector among others.

The fellows will be engaged for a total of three months during which they will work with mentors and will be required to provide at least two stories per month.

“Oil and gas sector operations in Nigeria have traditionally been opaque with little or no transparency on the part of the government”, says Akintunde Babatunde , Manager of NAREP. “This lack of openness has led to zero accountability, mismanagement of funds, revenue leakages and above all, the inability of the government to meet its financial obligation and to raise the quality of life of Nigerians,” he explains.

“Through the NAREP fellowship, PTCIJ plans to combine the tools of data aggregation, civic technology and investigative journalism to advance transparency and accountability in the extractive sector.”

About NAREP

NAREP aims to strengthen the capacity of media and civil society to demand transparency and accountability in the extractive sector by enhancing media and civil society collaboration in the reporting of activities in the industry. It seeks to highlight issues, and help set the agenda for the government in designing strategies for revenue diversification by looking beyond oil.

The training was supported by Natural Resource Charter.

 


Stéphane Michel is TOTAL’s New President Gas, Renewables & Power (GRP)

TOTAL has appointed Stéphane Michel as its President Gas, Renewables & Power (GRP) and a Total Executive Committee member, a position previously held by Philippe Sauquet, who has exercised his retirement rights.

Mr. Michel, a former Energy Advisor to a former French Finance Minister, resumed work on March 1, 2021.

Prior to the promotion, he was Senior Vice President Middle East & North Africa, Exploration & Production. Laurent Vivier succeeded him in that position in January 2021.

“The Gas, Renewables & Power segment has a key role to play in the growth, value creation and transformation of TOTAL into a broad energy company. We are very pleased to welcome Stéphane Michel to the Executive Committee,” commented Patrick Pouyanné, the company’s Chairman & CEO. “

TOTAL’s Executive Committee now consists of:

  • Patrick Pouyanné, Chief Executive Officer
  • Arnaud Breuillac, President, Exploration & Production
  • Helle Kristoffersen, President Strategy-Innovation
  • Stéphane Michel, President, Gas, Renewables & Power
  • Bernard Pinatel, President, Refining & Chemicals
  • Jean-Pierre Sbraire, Chief Financial Officer
  • Namita Shah, President, People & Social Responsibility
  • Alexis Vovk, President, Marketing & Services

 

Before Stéphane Michel became TOTAL’s SVP Middle East & North Africa, Exploration & Production in January 2014, he was the Managing Director of TOTAL E&P Qatar (2012-2014) and TOTAL E&P Libya (2011). He joined the Group in 2005, working for Downstream Asia, based in Singapore.

Stéphane Michel was born in 1973 and is a graduate of École Polytechnique (1994) and École des Mines de Paris (1997). He served as Energy Advisor to the French Finance Minister (2002-2004).

 


Shell Sells off Egyptian Assets to Cheiron, Cairn

Shell has signed an agreement to sell its entire stakes in 13 onshore concessions, in Egypt’s Western Desert, as well as a 50% stake in Badr El-Din Petroleum Co. (Bapetco), all in Egypt. The deal is expected to complete in the second half of the year. It will have an effective date of January 1, 2020.

The assets are being sold to Cheiron Petroleum Corporation and Cairn for a consideration of $646Million, with additional contingent payments of up to $280Million depending on oil price and exploration success.

The deal covers 40% interest in Alam El Shawish and 52% interest in North East Abu Gharadig. The 100% owned onshore exploration assets are South East Horus, West El Fayum, and South Abu Sennan a 100% stake in the Obaiyed, North Umbaraka, Badr el Din (BED) fields, Sitra, North Alam El Shawish, and North Matruh.

Cheiron purchases half of these Shell’s stakes in the 13 concessions. The remaining half will be purchased by Cheiron’s strategic partner, Cairn Energy plc, a new entrant into the Egyptian upstream sector.

Cheiron will operate the production and development concessions in the asset portfolio, whereas Cairnwill operate three of the exploration licenses. The field activities will continue to be managed by the Bapetco Joint Operating Company.

The consideration will be subject to customary working capital adjustments for the period between the effective date of the transaction (1 January 2020) and the completion date.

The acquisition will add Proven plus Probable reserves of 226MMBOE and production of approximately 80KBOEPD (as at 31 December 2020).

Funding for the acquisition will be provided by a strong syndicate of nine International European, Middle Eastern and African Banks and Lenders, and advisory support has been provided to the partnership by Rothschild & Co and Gaffney Cline & Associates. It’s a reserve-based lending (RBL) facility of up to $350mn and a joint junior debt facility of $100mn. Existing cash on balance sheet will also be contributed.

The asset sale is subject to Government and Partner approvals and is expected to complete in the second half of 2021.

 

 


In Angola, Sun Africa Constructs Seven Solar Projects Totaling 370MW

Sun Africa and M Couto Alves, part of the EPC conglomerate, on behalf of Angola’s Ministry of Energy and Water, are developing seven solar power projects in Angola.

Hitachi ABB Power Grids will supply the main electrical infrastructure to connect the project to the country’s transmission network.

The initiative is being financed under the Swedish Export Credit System (the Swedish Export Credit Corporation and Swedish Export Credit Agency), which aims to raise investment in Swedish sustainable technology globally

The initial stage of the project will include the construction of a

  • 188 MW solar power plant in Biopio in Benguela Province.

“This is one of the largest and most significant photovoltaic projects delivered,” says Niklas Persson, the managing director of Hitachi ABB Power Grids’ Grid Integration business unit. “We are contributing pioneering technology to enable MCA to integrate more renewables and electrify rural areas, while maintaining a stable network. Our role is to develop the project from idea to energisation – ultimately shaping a reliable and sustainable energy future for Angola.”

Six other solar power plants will follow, including

  • 7MW plant in Benguela in Benguela province,
  • 01MW plant in Saurimo, Luanda Sul, another
  • 91MW solar facility in Luena, Moxico,
  • 65MW solar plant, in Cuito, Bié,
  • 99MW plant in Bailundo, Huambo province, to electrify homes in the southern African country.
  • 20MW plant in Lucapa, Lunda Norte

Hitachi ABB Power Grids’ scope of work will include the design, main power equipment supplies, testing and commissioning of the project. It is based on an in-depth grid impact study into the customer’s unique requirements to determine in advance the best way to achieve the integration of the Angolan government’s renewable energy programme.

Financing and development partners include ING Bank, SEK, EKN, DBSA and KSURE, and the Swedish and US governments.

Angola is Africa’s seventh largest nation, with approximately 30-million inhabitants and a rapidly growing economy.

The project supports the UN’s Sustainable Development Goal 7 – ensuring that all people have access to affordable, reliable, sustainable and modern energy for all. The initiative will also help to increase the share of renewable energy in the global energy mix.

 


Kenyans Entitled to “Reverse Subsidy” on Petroleum Products

Diesel and gasoline prices have risen sharply in Kenya’s filling stations for the month of March 2021, despite the country having saved money to mitigate the spike in the cost of crude oil.

The Kenyan government increased the levy on petroleum products as pump prices dropped last year. The Petroleum Development Levy jumped from $.04 (Sh5.40) a litre in July from $.003 (Sh0.40), representing a 1,250% hike.

But the country’s plan to “pay back” in form of lower product prices, once crude oil prices reach $50 per barrel, has been scuttled by a lack of legislation.

The government collected over $91Million in the course of the levying over the last seven months.

But now that crude oil prices have soared way above $50, even breaching $70, a legal hitch is holding up the implementation of the fuel subsidy for which the levy was imposed.

Instead of product prices to remain flat, or even drop, despite the robust rise in crude oil prices, diesel prices in Nairobi rose by $.05 (Sh5.51) a litre to $0.92 (Sh101.91)—the highest since February 2020. Gasoline prices rose $.07 (Sh8.09) to $1.05 (Sh115.18) per litre, the highest mark since July 2019, putting pressure on transport costs and inflation.

The subsidy was excluded in the determination of gasoline and diesel prices for the month of March 2021, announced by Energy and Petroleum Regulatory Authority (EPRA) in late February after a monthly review based on the average price of crude oil in February.

Kenyans were not expected to bear costs of diesel prices above $50 a barrel because they had saved for the high cost in form of the levy.

The country’s motorists were to start enjoying a form of “reversed subsidy”, but EPRA says that “ the regulations to manage the subsidy were not yet in place”, so the agency simply raised pump prices based on the February 2021 crude oil average cost of $55.27.

Respite is expected to come in April. “The regulations to operationalise the levy are being developed in order to set up structures on how the fund will be managed,” EPRA says in a statement.

Kenyans use diesel extensively as transport fuel and for power generation.

The Attorney General’s office is expected to approve new regulations to use the fund accrued from the levy to rein in prices of petroleum products.

 

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