All posts tagged featured

Mozambique Wants Bids for Energy Project

The Government of Mozambique has received financing from the World Bank toward the cost of the Mozambique Energy For All Project (Proenergia), and intends to apply part of the proceeds toward payments under a contract.

The Electricidade de Moçambique, E.P. (EDM) now invites sealed Bids from eligible Bidders for Supply of a specific product for that project.

Bidding will be conducted through international competitive procurement using a Request for Bids (RFB) as specified in the World Bank’s “Procurement Regulations for IPF Borrowers” July 2016, revised in August 2018 (“Procurement Regulations”), and is open to all eligible Bidders as defined in the Procurement Regulations.

Click on the link for the details of the Tender.

PAID POST: FREE WEBINAR; Beyond Cement- Seeking P&A Alternatives

With P&A costs accounting for ca. 45% of total decommissioning spend, developments in plugging technology hold the potential to deliver unparalleled savings at end of life. DecomWorld’s upcoming webinar – Beyond Cement – Seeking P&A Alternatives (30 October, 10am CST) – discusses the potential of alternative plugging materials and shares case study insights into the latest technologies. This webinar features insight from Henry StAubyn, VP Advisory US (PACE) , Paul Carragher, CEO (BiSN), Phil Head, Founder & Director (Panda-Seal) and Prof Richard D. Neilson, Centre Director (National Decommissioning Centre). Register today and come away with your definitive guide to alternate plugging materials:

  • Evaluate alternatives to traditional cement and bridge plug abandonment
  • Get in the know on the latest tech developments and understand the potential for new materials to ensure both cost efficacy and environmental safety
  • Hear how a state-of-the-art barrier verification chamber has the potential to transform the development of cost-effective P&A technologies

If you aren’t able to make the times, that’s no problem- simply sign up and I’ll personally send you the recordings free of charge. The webinar is produced in collaboration with the 12th Annual Decommissioning and Abandonment Summit, Houston Texas. Any questions, contact Owen, the event director, at

Please click here for details:


Nigerian Operator Needs a Senior Production Engineer

An indigenous Nigerian Oil and Gas company in the upstream sector, operating in the Niger Delta region seeks to occupy the position of SENIOR STAFF PRODUCTION ENGINEER.

He or She will report directly to Assistant General Manager, Field Operations.

The candidate must possess:

  • Strong technical knowledge in the areas of downhole and surface production technology, including knowledge of hydrocarbon processing equipment and their operations
  • Effective oral and written communication skills with previous experience delivering technical presentations. Strong Project Management skills
  • In addition, good knowledge of Drilling Engineering and Drilling Operations will be decisive advantage
  • Good leadership & interpersonal skills with the opportunity to move to managerial level position for right candidate.

Full Details in this link.



Africa’s Largest Gas Field Threatens Even More Output

The giant Zohr cannot be reined in

The giant massif contained Zohr field in the Mediterranean offshore Egypt is threatening to surpass its 2.7Billion standard cubic feet per day mark, its handlers are saying.

Luca De Caro, head of the IEOC Joint Venture, ENI’s partnership with Egypt’s state hydrocarbon company, says the 13 wells currently producing at the field will be surpass 3Bscf/d by the end of October, up from 2.7Bscf/d in August.

ENI discovered Zohr in the Sharouk concession in 2015, on the same acreage which Shell had held for 10 years before relinquishment.

The discovery affected the fortunes of Egypt, changing the country from a net importer of natural gas to a self sufficient consumer of natural gas with aspirations to be an exporter of natural gas again.

The company originally estimated that production would peak at 2.7Bscf/d, but, in consultation with the Egyptian government, it was agreed that output would rise above 3Bscf/d in 2019.



PAID POST: Nigeria in focus at Africa Oil Week

Relations between South Africa and Nigeria have been strained in recent months after several days of riots in South Africa in September that mainly targeted foreign-owned, including Nigerian, businesses.

But following a visit to South Africa by Nigeria’s President Muhammadu Buhari tensions havev eased. A further sign of the improving relationship is the visit of Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva, to Africa Oil Week, the minister proclaiming himself being excited to be travelling to South Africa.

As the largest upstream event on the continent, Africa Oil Week has enjoyed attendance from the industry’s highest-level decision makers for over 25 years. This year is no different, with Nigeria’s brand new NPCC GMD making his international debut at the 2019 conference in Cape Town this November (4-8).

Mallam Melee Kyari will be setting out the future vision of the NNPC under his leadership and participating in a session titled ‘Atlantic Transform Margin (Liberia to Nigeria)’, where he will provide a deep insight into the current operating landscape in some of the most highly sought-after regions.

Conference organisers say  Bold vision promises new dawn for Nigeria’s ailing petrochemical industry”

Below are excerpts from the Press release…

Estimated to hold 37 billion barrels of proven oil reserves, Nigeria is the second biggest oil-rich country in Africa, after Libya. The exploitation of these resources has been in the hands of the Nigerian National Petroleum Corporation (NNPC) that was established in 1977 as a merger of the Nigerian National Oil Corporation and the Federal Ministry of Mines and Steel. NNPC by law manages the joint venture between the Nigerian Government and international oil companies such as Shell, Agip, ExxonMobil, Total and Chevron.

Despite its rich resources, at present Nigeria’s state-dominated oil industry is declining, afflicted by systemic corruption, starved for international investment, and hit hard by weak oil prices. Despite that malaise, oil remains the country’s chief source of income.

A choice of paths

What many considered a watershed moment for the industry occurred earlier this year in the country’s election with two conflicting strategies for the development of the industry put forward by the two candidates.

The incumbent, Muhammadu Buhari’s planned to retain a nationalized oil industry under the NNPC banner while the vision of his opponent, Atiku Abubakar, was to sell off aging refineries to private buyers to liberalise the economy. In the end Buhari won a tight contest.

The importance of the oil and gas sector for the state cannot be underestimated with more than half of its revenue along with 85 per cent of its export revenue coming from the sector. Despite the 40 billion barrels of oil under its control, Nigeria’s ageing infrastructure can only produce around 2.5 million barrels of crude oil per day.

Adding to this malady is the state of its mid-stream and downstream infrastructure that many believe is in even worse condition than its upstream assets.  The refineries dotted around the Niger Delta region are at present producing less than half of the 500,000 barrel per day capacity, with this figure dropping to almost ten per cent late last year.

New beginnings for NNPC

The man charged with implementing the president’s policy is Mallam Mele Kolo Kyari, who took on the role of group managing director of the Nigerian National Petroleum Corporation (NNPC) early this year. He quickly vowed to reverse the trend of petroleum imports into Nigeria by improving the existing refineries and encouraging private sector investment in the refineries.

“We must end the trend of fuel importation as an oil producing country,” he said at a press conference shortly after taking on the role. “We will deliver on the rehabilitation of the four refineries within the life of this administration and support the private sector to build refineries. We will support the Dangote refinery to come on stream on schedule and we will transform Nigeria into a net exporter of petroleum products by 2023”.

He added that the government’s target of raising crude oil production and reserves to three million barrels per day and 40 billion barrels respectively was possible and that he would galvanise the corporation to achieve it by 2023.

When it comes to rooting out the corruption that has plagued the industry in Nigeria he pointed out how much NNPC had changed over the past three years from the old image of a corruption-laden organisation, stressing that he would continue to entrench the culture of accountability in the affairs of the corporation.

“We are going to work to remove every element of discretion from our processes, because discretion is one of the greatest enablers of corruption”, he said. “NNPC will not be opaque, we’ll be transparent to all so that at the end of the day everyone will be in a position to assess us and say what we have done right or wrong”.

Support from OPEC

The Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), Mohammed Sanusi Barkindo, has commended the NNPC for its ongoing reforms aimed at changing the fortunes of the corporation for the better.

“I am glad that you continue to march on with your projects despite the downturn in the Industry, he said. “We have seen the Industry globally suffer in terms of contraction in investment which affected capacity. You have not only been able to stay on course, but you also continue with these projects which are critical for the development of the corporation and the industry in Nigeria.”

“To lead such a sensitive and capital-intensive industry like oil and gas, you must have transparency and accountability as one of your core principles in order to drive change. I am glad I have known Mele Kyari for a very long time. He is a very capable and straightforward individual with a high level of integrity even as a very junior officer. So, he has a track record. I remain confident that together with his team, and with the support of government, he will accomplish the task”.

Building a Nigerian giant

Key to this strategy of reducing imports is the Dangote refinery that is under construction near Lagos. The 650,000 barrels per day (bpd) integrated refinery and petrochemical project will be Africa’s biggest oil refinery and the world’s biggest single-train facility upon completion in 2020. The facility will be able to process a variety of light and medium grades of crude to produce Euro-V quality clean fuels including gasoline and diesel as well as jet fuel and polypropylene.

For more information, please contact:

On behalf of Africa Oil Week

Joanna Kotyrba Email:

About Africa Oil Week 

Africa Oil Week is the leading oil and gas event for the continent, with over 1500 key executives attending from around the world to broker new deals. The global E&P community – government, NOCs, international oil companies, independents, investors and service providers – is brought together here like no other event. This unique event is a hub for deal making and building networks with senior decision-makers.




TOTAL’s Zimbabwe Man Now Heads One of Africa’s Largest Projects

Ronan Bescond was moved in September 2019 from a lack lustre job in Harare in Zimbabwe to oversee one of TOTAL’s biggest projects in the world.

He is Vice President and Country Manager for the Mozambique LNG project, a 12.88Million Tonne Per Annum facility under construction for around $20Billion.

Mr. Bescond will be based in Maputo.

He is, in addition to overseeing Mozambique LNG, also Managing Director TOTAL Moçambique.

TOTAL took over all of Anadarko’s assets in Africa after the American independent sold its entire shares to Occidental. The biggest ticket part of the transaction is the Moza LNG.

Anadarko had, indeed, taken the Final Investment Decision on the project after nailing agreements with buyers taking up to 11MMTPA of the 12.88MMTPA project.

Mr Bescond, a French national, has worked for the French major for 20 years and in the process acquired experience across the country;s business – both upstream and downstream – including a long history with the company’s LNG projects in Australia, Angola, Nigeria and Oman.


With Gas Reserves Confirmed in Bauchi, Who Needs an AKK Pipeline?

By the Editorial Board of the Africa Oil+Gas Report

If there is truly far more substantial natural gas reserves encountered in Kolmani-2 than was found in Kolmani-1, then there is a clear basis for a valourisation project targeted at gas supply to the commercial city of Kano, the ultimate terminus of the Ajaokuta-Abuja-Kaduna-Kano pipeline, AKK.

The Anglo Dutch major Shell reported 33Billion cubic feet of gas in one zone for the Kolmani-1 discovery in 1999.

NNPC has not provided any volumetric figures for the Kolmani River-2, the appraisal well it just drilled, but its statement about the probe is quite upbeat and the company did indicate that hydrocarbon was found in several levels.

It also says that Kolmani 2 is the first of a multi-well drilling campaign.

Should Kolmani be found to hold even just 500Bcf of gas, NNPC should be ready to commence a natural gas supply study project to ferry those molecules from Bauchi to Kaduna and Kano and therefore discard the $2.8Billion, 614 km project.

Some have suggested that discarding the expensive AKK pipeline would be too wrongheaded, considering that the project is already on course.

But the least the company can do for Nigeria’s sake is start evaluating the modification of the AKK project, now that there is clearer line of sight to hydrocabons in Nigeria’s geographic and political north.

NNPC has reported it had completed negotiations with Chinese Financiers to loan it the money for the AKK project, which will pump gas from the Niger Delta to the North of the country. But paying for that project has been a point of debate.

“What NNPC has done is to look at the entire receivables from gas flows from the existing pipelines today and used that to pledge in terms of the tariff”, says Emeka Okwuosa, Chief Executive of Oilserv, one of the contractors for the project.

So, even though the AKK is being called contractor financed, the state hydrocarbon company is essentially funding it and that has implications for the treasury.

We do know that pumping hydrocarbon from any point to another in pipelines managed by the NNPC or its subsidiaries is always riddled with inefficiency. And no one has said that the AKK was going to be managed by any entity other than this highly unaccountable state hydrocarbon company.

The Escravos Lagos Pipeline System is frequently sabotaged. A looping of the line (running a parallel line in order to double the throughput), has been under construction for seven years. The cost overruns ensuing from this kind of poor project management and what it does to the national treasury receipts never show up even in the most detailed reports of the Nigeria Extractive Industry Transparency Initiative (NEITI).

If we find natural gas in the north, should we not simply structure a north- north gas project to feed power plants and industries in the north and do away with expensive, long distance pipelines, the payment for which we are not entirely certain?


NNPC’s Announcement of Kolmani 2 Discovery Is Vague on Details

The Nigeria National Petroleum Corporation announced the discovery of hydrocarbons in Kolmani River 2, an appraisal well drilled in Bauchi, in the Upper Benue Trough, Gongola Basin, but was extremely vague on details.

The statement, released by its corporate affairs department, did not state the net or gross hydrocarbon footage in any reservoir(s).

The press release said the well was drilled with “IKENGA RIG 101” to a total depth of 13,701feet, encountering oil and gas in several levels, meaning that hydrocarbon was encountered in several reservoirs more than the only reservoir that encountered gas in the Kolmani 1.

“A Drill Stem Test (DST) is currently on-going to confirm the commercial viability and flow of the Kolmani River reservoirs”, the company said.

The part of the statement that could have passed for a useful status update of the probe was couched in poor professional language:  “On Thursday 10th October, 2019, at 18:02hours, one of the reservoirs was perforated and hydrocarbon started flowing to the well head at 21:20hours in which the gas component was flared to prevent air charge around the Rig”.

What does that mean?

For a well that had been spud as far back as February 2019, a more standard report was expected.

NNPC added that “Preliminary reports indicate that the discovery consists of gas, condensate and light sweet oil of API gravity ranging from 38 to 41 found in stacked siliciclastic cretaceous reservoirs of Yolde, Bima Sandstone and Pre-Bima formations”.

The company said it acquired 435.54km2 of three dimensional (3D) Seismic Data over Kolmani Prospect in the Upper Benue Trough, Gongola Basin. This was to evaluate Shell Nigeria Exploration and Production Company (SNEPCo) Kolmani River 1 Well Discovery of 33 BCF and explore deeper levels.

The Corporation has also acquired additional 1183km2 of 3D seismic data over highly prospective areas of Gongola Basin with a view to evaluating the full hydrocarbon potential of the Basin. NNPC has deployed world class cutting-edge technologies including Surface Geochemistry, Ground Gravity/Magnetic, Stress Field Detection, Full Tensor Gradiometry aerial surveys to de-risk exploration in the frontier basins.

The NNPC plans to drill additional wells for full evaluation of the hydrocarbon volume in the Gongola Basin.


S. A. Inches Closer to the Energy Plan

By Sully Manope

South African authorities are close to finalising one of the several energy plans on the table.

The country’s minister of energy says that the Integrated Resource Plan IRP, essentially a roadmap to what type of technology investors should bring into the country’s energy mix over the next 30 years, will be finalised in a week.

This iteration of the IRP has been in the making for over five years.

“By Wednesday (October 16, 2019), I am very hopeful that the IRP would be concluded, and we will gazette it”, Gwede Mantashe, an influential figure in President Cyril Ramaphosa’s government, told the Africa Oil and Power Conference meeting in Cape Town, a scenic resort town on the southernmost tip of the continent.

“The plan will lay the foundation for investment in power generation. Such an investment should have the impact of lowering the cost of doing business in our country.”

Minister Mantashe invited the delegates at the conference to enter the South African market.
“Come to the fore, we are ready for you. Talk to us,” he said.

Although South Africa doesn’t use natural gas for power generation ((te country’s gas thermal plants actually run on diesel) Mantashe declared at the confernce  that natural gas would be a key part of South Africa’s energy mix, citing projects like the Coega development in the Eastern Cape province as being at the core of this strategy.
“This ambitious project for us will be a game changer, those who are waking up to take the opportunity will actually benefit from that development. It is quite a test for us because we need to get into gas in a big way.”

Read a fuller story on natural gas incentives in South Africa: ‘S.A. Fiddles While Gas Burns’, in the October 2019 edition of the Africa Oil+Gas Report.

How Global Energy Dynamics Are Shaping the Outlook for African Exploration

By Boris Ivanov

Africa is a continent rich in energy resources, but poor in supply. For most Africans energy is either unaffordable, unreliable or inaccessible. Despite having 15% of the world’s population, the continent still only consumes 3% of the world’s energy, and population growth is likely to outpace even large investment into that economic area. Given that the primary purpose of energy is to promote a better quality of life and improve economic opportunities, the energy sector has so far failed to meet the needs and aspirations of African citizens.

Global energy markets are however undergoing a period of extraordinary change. While the changed supply picture is surely defined by the recent rise of American shale production, the gradual recovery of the oil price and the rise of exploration for the first time since the 2008 recession could both shape a positive outlook for Africa’s oil ambitions and its future energy landscape.

The recent dynamics of the global energy market is one of several years of oversupply and increasing demand amidst a weakening global economy. Against the backdrop of these long-term factors, there is also the reduction in investment in major new projects during the economic downturn to consider and the recent events developing in Saudi Arabia, which are still yet to be felt. It’s what many experts and consultants now think may lead the market into a long-awaited supply crunch. This will require oil companies to either increase production or rely on dwindling reserves. As the FT notes,  some companies would need to raise investment into new production by as much as 20% to avoid a supply crunch. A challenge that is further exasperated by the necessary transition many companies are keen to make towards a cleaner energy portfolio.

The historical volatility of the market should therefore be considered as growth continues to move away from developed countries. There is often an overconfidence in the supply side of global energy, because the general public and even writers who cover the industry underestimate how much time is needed to address an under-supplied market. People outside the industry itself frequently overlook the reality that upstream development can take years even in areas with vast potential.

In the meantime, a host of new finds on the continent continues to stimulate debate about Africa’s emergence as a big oil and gas player. The scale of the discoveries in Kenya and Uganda had left Total, Tullow, and CNOOC considering investment in a multibillion-dollar pipeline on the east coast, although talks have recently been suspended over a tax dispute. Kenya did sell its first ever shipment of oil last month for $12 million, but full oil production isn’t expected to start until 2022, with a new oil pipeline planned to be built next year. After work stalled in Uganda, Wood Mackenzie’s Jon Lawrence told the FT that he believed there is “an over-optimism in the market both about the ease and time needed to develop east Africa’s big discoveries.”

Investing in local infrastructure and creating an appealing fiscal and regulatory regime that align with the long-term interests of private companies are not overnight ventures. This ability to execute across the entire value chain requires good governance and will remain the biggest challenge to the development of Africa’s energy market. Yet hosts of new finds across Ghana, Senegal, and South Africa to name a few, as well as the major energy producers Angola and Nigeria continue to eagerly present the case. Huge Chinese investment has now found its way into Niger and Chad.

The case is further strengthened by the abundant renewable energy that African countries have the potential to harness. An International Energy report has even suggested that by 2040 renewables could provide more than 40% of Africa’s power. Foreign investment into the continent and subsequent economic growth could provide a model that allows the region to remain a committed exporter to global markets without neglecting the energy requirements of the region itself.

As well as this, the new emission standards to be announced by International Maritime Organization in 2020 are likely to spark a demand for IMO-compliant products, curb the use of ships and disproportionately affect Middle Eastern crude oil which is high in sulphur. Comparatively, the high quality of Africa’s resources and its strategic location between all the major energy import markets of Europe, America, and Asia make it prime for exploration and production.

This has already attracted the supermajors to the African shores. BP has begun exploration off the coast of Cote d’Ivoire where Tullow has also been granted a licence, while ExxonMobil has entered Ghana, Namibia and set up an offshore site in Mauritania. After 9 years of presence in Africa, we have already visited 48 of the 54 countries. In our personal experience from operating across the continent we’ve found reliable and strong partners who have the knowledge, strategic vision, and appetite for foreign investment that can develop growth. If a supply crunch does emerge and keeps prices high, the rationale to invest in exploration and production will continue to shape the outlook for Africa’s energy market.

Ivanov is Founder and Managing Director of GPB Global Resources B.V.

© 2019 Festac News Press Ltd..