All posts tagged feature


Aker Will Use Two FPSOs For the Pecan Project in Ghana

By Toyin Akinosho, in Lagos

The Norwegian independent, Aker Energy, says it has changed its development concept for the Pecan field in ultra-Deepwater offshore Ghana.

The company will be using two FPSOs to drain the 450Million barrel (probable) reserves.

While the original field development concept was based on a centralised Floating Producing Storage Offshore (FPSO) vessel, supporting the development of the entire Pecan field, as well as tie-ins of all other area resources, the focus has shifted toward a phased development approach.

“This approach will enable Aker Energy to commence with one FPSO for Pecan in the south and expand to a second FPSO in the north after a few years, with tie-ins of additional discovered resources. The first FPSO will be deployed at around 115 kilometres offshore Ghana over a subsea production system installed in ultra-deep waters in depths ranging from 2,400 to 2,700 metres”.. ”, Aker says in a widely distributed release.

There has always been the suggestion of phased development, but Aker never said anything publicly about two FPSOs.

The Pecan field was discovered by Hess Corp. in December 2012. The American independent sold its equity on the asset, along with operatorship, to Aker Energy in 2017. The Norwegian explorer immediately ran with the project, hoping to take the discovery to market by 2022.

Aker concluded an appraisal campaign, involving three wells, in mid-2019 and announced that “reserves, to be developed in the first phase, are estimated at 334Million barrels of oil. Discovered contingent resources, to be developed in subsequent phases, are estimated at 110-210MMBOE, resulting in a combined volume base of approximately 450–550MMBOE. These estimates exclude any additional volumes from Pecan South and Pecan South East, currently being assessed”. Aker further declared it had “identified further upsides in the area that we intend to mature as part of the area development”, adding that “the total resource potential in the area is within the range of 600-1000MMBOE.”

In March, however, the company announced that a final investment decision (FID) had been placed on hold, postponing the project.

Today, it said: “While no new date has been set for the FID, the company is working actively to confirm the feasibility of a phased Pecan field development by executing conceptual studies.

Aker says that the phased development of the Pecan field and the utilisation of a redeployed FPSO vessel will substantially reduce the CAPEX and, hence, reduce the breakeven cost. In addition, it will increase the possibility of reaching a commercially feasible project that will allow for an investment decision. Aker Energy and partners are currently assessing several FPSO candidates for redeployment, and the final selection will be based on technical capabilities and cost.

Aker Energy is the operator of the Deepwater Tano Cape Three Points (DWT/CTP) Petroleum Agreement, with a 50% participating interest in the DWT/CTP Petroleum Agreement. Its partners include the Russian explorer Lukoil (38%), the Ghana National Petroleum Corporation (GNPC) (10%) and the indigenous company Fueltrade Limited (2%).


AfDB Sanctions Danish Contractor for Fraudulent Practices in a Power Project

By Foluso Ogunsan

The African Development Bank Group has debarred Burmeister & Wain Scandinavian Contractor, for a period of 21 months, “for engaging in sanctionable practices in a power generation project financed by the Bank in Mauritius.”, the Bank said earlier today.

In 2014 and 2015, Burmeister & Wain participated in tenders for the redevelopment of the Saint Louis power plant in Mauritius, a project financed by the Bank.

”An investigation conducted by the Bank’s Office of Integrity and Anti-Corruption has concluded that it is more likely than not that the company engaged in fraudulent and corrupt practices in the context of this project”, the AfDB explained in a release.

”Evidence supports a finding that Burmeister & Wain, on a balance of probabilities, financially rewarded members of the Mauritian administration and others, through the intermediary of third parties, for providing access to confidential tender-related information which allowed them to tailor the technical specifications of the tenders to its offering, thus gaining an undue competitive advantage over other tenderers. Burmeister & Wain further concealed the arrangements it had entered into with the third parties, in breach of the rules governing the tenders”.

The debarment imposed by the Bank renders Burmeister & Wain ineligible to participate in Bank-financed projects and thus to benefit from its financing during the debarment period. The 21 months debarment qualifies for cross-debarment by other multilateral development banks pursuant to the Agreement for Mutual Enforcement of Debarment Decisions. According to this agreement, debarments longer than 12 months pronounced by any of its signatories, including the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank Group, are recognized and imposed in the same way by its other signatories.

By imposing a debarment of 21 months, AfDB says, “the Office of Integrity and Anti-Corruption recognizes Burmeister and Wain’s extensive cooperation with the investigation, the company’s transparency in dealing with the sanctionable conduct and the efforts that it has made to enhance its integrity compliance program since uncovering the sanctionable practices.

“The Bank will release Burmeister & Wain from debarment at the expiry of the debarment period, subject to a successful review and clearance of the company’s enhanced integrity compliance program by the Bank”.

 


Tullow, TOTAL, Finalise the Crude Oil Trucking Project in Kenya

Tullow Oil and its partners have formally ended the Early Oil Pilot Scheme EOPS, in Kenya, describing it as a successful project which provided critical technical data, logistical and operational experience and training.

The scheme featured extraction of up to 2,000Barrels of Oil Per Day and trucking on over more than 1,000 kilometres of road from the Ngamia and Amosi oilfields in the Turkana County, in the country’s north, to a storage depot in Mombasa in the far south.  Export of the commodity from Mombasa began in August 2019, with the value of inaugural shipment of 200,000 barrels, bought by ChemChina UK Ltd, for an estimated $12Million.

Over 100 tankers were used to move 2,000 barrels per day over the 1,000 kilometres, while the scheme lasted

The partners-Tullow, TOTAL and Africa Oil, say that the experience will materially assist the National and County Governments and the Joint Venture Partners on the journey towards Full Field Development (FFD).

“It has allowed Kenya’s oil to be marketed and established on world markets. EOPS has given local entrepreneurs an opportunity to participate in crude oil transportation with key focus on industry-safe practices”, says a statement by Mark MacFarlane, Tullow Oil’s Chief Operating Officer (COO). “Critical local infrastructure, including local roads and the Kainuk bridge, have been significantly improved as part of the scheme”.

In January 2020, Tullow Oil reported it had suspended the transport of crude oil from Turkana to Mombasa due to incessant rains that caused severe damage to roads.

 


OPEC+Cut: Nigeria Orders Egina Field Output Reduced by 40%

French Major TOTAL produced 131,000Barels of Oil Per Day (BOPD) from Egina for the entire month of May, a figure that is 33% less than the April 2020 production, which averaged 201,000BOPD.

The May 2020 volume was decreed by the Crude Oil Marketing Division (COMD) of the NNPC, the Nigerian state hydrocarbon company, “as part of Nigeria’s commitment to comply with agreement reached by OPEC+ members to cut production”.

The decreed output for June is even smaller: TOTAL is expected to produce 122,000BOPD in Egina.

This 40% reduction means that Egina, a brand new field, is bearing much of the burden of Nigeria’s share of OPEC+’s pledged cuts in output.

The production of TOTAL’s other operated deepwater field, the Akpo structure, has been kept intact, at around 100,000BCPD, because it is a condensate tank.

Production in some of the country’s other deepwater fields are considered so low they don’t even meet curtailment threshold.

Nigeria pledged to produce 1.579MMBOPD in June in the OPEC agreement. “This is in addition to condensate production of between 360-460 KBOPD of which are exempted from OPEC curtailment”, Timipre Sylva, the country’s Minister of State for Petroleum, said in early April 2020.

That’s about 200,000BOPD cut, of which Egina is “contributing” 40%..

 

 


Cameroon’s Power Utility Pushes its Gas Supplier into the Red

ENEO was once a key reason for Gaz du Cameroun (GDC) to dream big.

Seven years ago, the Cameroonian power utility promised an offtake of double the size of gas that the factories and other firms in Douala could readily demand from GDC, as the latter constructed pipelines and other infrastructure to incentivize consumption of gas in the country’s main commercial city.

But now ENEO (short for Energy of Cameroon), has fallen far behind in payment. The gross amount outstanding from the utility as at 31 December 2019 was $10.5Million, a significant debit in the balance sheet of a small player with production hardly exceeding six million standard cubic feet of gas per day 6MMscf/d.

The Logbagba gas field near Douala is GDC’s source of gas.

 As far back as 14 September 2019, Altaaqa, the generator supplier to ENEO, suspended operations at ENEO’s Logbaba site due to non-payment of invoices by ENEO.

GDC had continued to invoice ENEO based on take-or-pay provisions agreed to in the binding term sheet.

In April 2020, GDC announced that ENEO had arranged “payment of Four Invoices amounting to a net total of $2.9Million to GDC via “promissory notes” in the quarter”. That comes to no more than $4.2Million gross, but there is still a significant value of unpaid invoice to go.

ENEO’s default in paying a hydrocarbon producer is contrary to the new normal in Africa, where monopoly utilities and state hydrocarbon companies have general turned the corner in their attitude to paying debts owed to hydrocarbon producers in their countries.

Tanzania’s state hydrocarbon company TPDC and state power monopoly TANESCO pay gas producers more promptly. Egypt’s EGAS has improved terms of gas tariffs and annulled its debts significantly. Nigeria’s NNPC, though not exactly comparable as its case is joint venture agreements, has almost extinguished cash call arrears.

What makes the ENEO example particularly odd is that it is not an entirely state-owned company. It is majorly owned (51%) by Actis, the British investor and 44% owned by the Government of Cameroon. ENEO employees own a 5% stake. It is indeed an outlier of an example.


Eland’s Bosses Didn’t Make it to Seplat

Bayo Ayorinde, Chief Executive of Eland Oil and Gas at the time of the merger with Seplat, chose not to move into the new arrangement.

So did Pieter Van Der Groen, who was Eland’s Director of Business Development and former Chief Operating Officer.

Seplat purchased Aberdeen based company Eland Oil & Gas for $480Million, in a move which led to the delisting of the latter from the AIM segment of the London Stock Exchange.

In the new arrangement, Eland’s 30,000Barrels of Oil Per Day operations will remain outside Seplat; the company will be run as a subsidiary of Seplat.

Ayorinde joined Eland as Managing Director of Nigerian operations in 2015, after serving in Operations and Maintenance (O&M) services for Oriental Energy.

He has a degree in Chemical Engineering from the University of Ife and completed a General Management Programme at Harvard University. He started his career with Ashland and rose to the level of onshore Production Manager before leaving for Texaco Overseas where he served as Head of HR in Warri, the hub city in the Western Niger Delta. Afterwards, he worked for Moni Pulo and Allied Energy as Executive Director and COO before joining Afren in 2009. He was the Managing Director at Afren from 2011 before going to Oriental Energy.

Ayorinde currently freelances as a consultant for Seplat, as he prepares his next move.

Van Der Groen did not return calls.

Van Der Groen trained at the Universities of Auckland and Aberdeen, started his career with Schlumberger as a geologist in London, moving on to become a wireline engineer in South East Asia and West Africa. After his field work, he trained as a log analyst with Schlumberger in London for multiple clients. worked at Schlumberger Oilfield UK PLC. He moved to Amerada Hess initially as a Petrophysicist in the international team, then to technical and management roles. He then worked briefly with Gulfsands Petroleum in Syria as Deputy General Manager. In Nigeria he spent four years as General Manager of an independent oil company where he oversaw onshore development and production in the Niger Delta.

 

 

 


Payment Fees, Guidelines, for Nigeria’s 2020 Marginal Field Bid Round

Nigeria’s Minister of State for Petroleum has finally signed off on the launch of the country’s first bd round in 13 years, prompting the official release of the guidelines.

A total of fifty-seven fields, located on Land, Swamp and Shallow offshore terrains are on offer.

The bid is open only to Nigerian owned companies and a key criterion for prequalification is Federal Character Representation (evidence that a participatig company’s owners and key personnel are drawn from diverse parts of the country).

The Department of Petroleum Resources (DPR) will run the process.

Application form (for bidding) will be provided by the DPR and shall attract non-refundable chargeable fees as follows:

  • Application fee: 2 Million Naira per field.
  • Bid Processing Fee: 3Million Naira per field.
  • Data prying fee: $15,000.00 per field. Data prying shall be on appointment.
  • Data Leasing fee: $25,000.00 per field.
  • Competent Persons Report: $50,000.00 (Fifty Thousand US Dollars).
  • Fields Specific Report: $25,000.00.

Application fees and processing fees be paid into the Treasury Single Account (TSA). Signature Bonus will be paid into the Federation Account.

The fees for data leasing, data prying, Competent Persons Report (CPR) and Field Specific Report should be paid into the account of the National Data Repository (NDR) for repayment.

The applicant must show evidence of technical and managerial capability. The applicant shall demonstrate ability to fully meet the objective of undertaking expeditious and efficient development of a Marginal Field. Where there is little or no track record of petroleum operations, interested companies would be expected to demonstrate ability to manage or develop in that direction in the short to medium term.

Company shall confirm willingness to pay the offered Signature Bonus if successful.

The signature bonus will be determined by the economic viability of each field; which means that different

Such monies will be paid into the into the Federation Account. The bid round shall soon be announced,

The DPR will manage the process, ensuring compliance to the tenets of the guidelines.

Fuller details are in the DPR dedicated portal marginal.dpr.gov.ng

 

 

 


EOI For Geothermal Risk Mitigation Facility, Deadline JULY 15, 2020

The Geothermal Risk Mitigation Facility for East Africa (GRMF) launched its sixth Application Round on May 6, 2020. The deadline for the submission of the Expressions of Interest (EoI) is scheduled for 16:00 H Ethiopian Time on 15 July 2020.

The African Union Commission (AUC) via the Regional Geothermal Coordination Unit (RGCU) invites public or private organisation as well as public private partnerships to submit an Expression of Interest (EoI) to pre-qualify for financing support. More information on the Expression of Interest can be found on the GRMF-Homepage.  You will also find all necessary documents there. If you did not have the opportunity to participate in the Kick-Off Webinar for the sixth Application Round, a recording of the event is available here.

Please click here for the detailed announcement.

 


Low Price, Lockdown, Ideal for Oil data G&G Evaluation

The low oil price and restricted movement is the ideal time to expand the home office environment to allow for creative evaluation of all data in a company’s possession to resolve identified challenges in exploration Geoscience

This is the opinion of Ebi Omatsola. Africa’s top exploration thinker.

“That’s when its best to share knowledge with appropriate colleagues and prepare for the good days ahead when and if they come”, says the former Chief Geologist at Shell Nigeria and former MD of Conoil Producing.

“Petroleum is still the anchor for global energy”, Omatsola argues, and even if it’s very low priced at the moment, “Prices will still rise sufficiently to encourage low hanging Near Facility Exploration (NFEP)”, he explains.

Contending that natural gas is becoming the most important transition energy resource, Omatsola advises G&G (Geology and Geophysics) staff to pull out Prospect inventory and work them up, “as long as those prospects are in the NFEP category”.


Mojapelo Takes Hold of BP’s Largest African Downstream Operations

BP has appointed Taelo Mojapelo as Chief Executive Officer of its Southern African business unit (BPSA).
The supply chain expert succeeds Priscillah Mabelane, the accountant who, reputably, is the first woman in the history of South Africa’s oil industry to head up a multinational company.

Mojapelo’s last job was Director as Customer Service & Logistics at Mondelez, a position she took up in June 2017.

She had worked at DHL, South African Breweries, SAPICS and Kellogg’s.

The choice of a supply chain specialist as CEO is indicative of BP Southern Africa’s customer-centric focus.

BP SA has over 500 service stations in South Africa alone, comprising of over 200 branded convenience stores.

BPSA owns, with Shell, the largest crude oil refinery in South Africa (the 180,000BOPD SAPREF), which is located in Durban, the seaside holiday town on the edge of the Indian Ocean. It also manufactures lubricants at an oil blending plant located in the city of Durban. The company operates nine depots and three coastal installations, as well as the largest rail gantry in Africa located in Pretoria with planned upgrades to key depots.

 

© 2021 Festac News Press Ltd..