All posts tagged gas


Eunisell Explores Feasibility of Vendor Funded Early Production Facility for Barracuda Field

Eunisell Limited, the Nigerian owned provider of oilfield services and facilities, has entered into a non-binding collaboration agreement (CA) with ADM Energy, an upstream E&P company.

Under the terms of the CA, subject to the completion of certain due diligence, ADM and Eunisell will explore collaboration opportunities to carry out development of Barracuda Field in OML 141 and associated work-related activity in Nigeria.  It is the intention of both parties, together with the risk sharing consortium in respect of Barracuda Field, that a formal agreement will be entered into in advance of any work commencing.

The CA may be terminated by mutual consent.

“Eunisell has decades of experience in engineering, production, operations and enhanced production techniques within Nigeria and the Parties intend to work together to use their combined experience to accelerate production of oil and gas assets, initially concentrating initiating production at the Barracuda field in which ADM recently invested”, a press release stated.  “Activities under the intended scope of work may include early production facility supply, procurement, construction and commissioning of production facilities, extended well testing and laboratory services”.

Following discussions, Eunisell may consider providing vendor financing to achieve the scope of work to be agreed, subject to terms and conditions to be determined at the point of an award of contract.

Eunisell has been a key facilitator for the Nigerian oil and gas marketplace for many years, helping operators to reach their production goals faster and at less capital costs. We look forward to building a relationship and are excited by the potential of working alongside them to support the development of our investments such as the Barracuda Field in OML 141.”

 

 


Oghogho Effiom Will Take Over from Iledare as SPE’s Africa Director

By Moremi Mthembu, in Cape Town

The Nigerian geologist, Oghogho Effiom, has been elected Africa Regional Director of the Society of Petroleum Engineers (SPE) for 2022.

She has five months to take over from Wumi Iledare, a Nigerian reservoir engineer and professor of petroleum economics, whose term ends in September 2021.

The baton exchange will be a generational handover.

As far back as 42 years ago (1979), Iledare had graduated and was reservoir/production engineer trainee with Mobil Producing Nigeria. In contrast, Mrs. Effiom is 41.

The regional director-in-waiting “is a senior development planner for Shell Nigeria, where she enables integration between all disciplines to ensure consistencies across projects regarding development concepts, scenarios, and decisions”, the SPE says in a statement. She formerly was a senior production geologist with the AngloDutch major.

Effiom was the 2020 chair of the SPE Lagos Section, winning the 2020 Presidential Award for the section. In 2019, she received the SPE African Regional Service Award. She served as chair of the 2018 Nigerian Annual International Conference and Exhibition, and the 2016 SPE Annual Technical Conference and Exhibition Soft Skills Workshop on Strategic Planning.

Effiom holds a master’s degree in asset integrity management from Robert Gordon University in Aberdeen and a bachelor’s degree in geology from the University of Benin in Nigeria.

 


DPR Maintains Deadline for Signature Bonus for Nigeria’s Marginal Fields Awards

By Macson Obojemoinmien

Nigeria’s oil and gas regulatory agency, the Department of Petroleum Resources (DPR), has not officially confirmed the speculation about the possible extension of the deadline for payment of signature bonus for the assets awarded in the ongoing bid round for marginal fields.

The deadline remains Wednesday April 21, 2021.

161 companies were reportedly pre-awarded stakes in 57 fields with signature bonuses tied to the percentage allocated to each company.  Companies have been scrambling in the last two weeks to raise the money for signature bonuses.

The marginal field bid round is the first open hydrocarbon property sale in the country in 17 years.

It has also been the least transparent and challenging for participants to unpack.

Each of the 57 fields has more than one allottee and the partners on each field are expected to jointly create a Special Purpose Vehicle to operate the asset.

Signature bonus per field ranges from $5Million to $40Million and while the size of the bonus is expected to correlate with the overall economics of the field, there are questions regarding what methodology has been used to arrive at the numbers.

However muddled the process has been, the desire of participants to win slices of Nigerian hydrocarbon property has been quite robust.

The Nigerian government hopes to wrap up the process before the end of 2Q 2021 so it can prepare for the acreage licensing sale.

 


BW Energy Starts a Three Well Drilling Campaign in Gabon

Norwegian independent BW Energy has initiated its 2021 Gabon drilling campaign with the spudding of the Hibiscus Extension well on the Dussafu Marin Permit. This will be followed by drilling at Tortue and Hibiscus North.

The company considers Hibiscus Extension as its largest potential impact well this year.  The Borr Norve jack-up drilling rig will then proceed to drill the final production well at Tortue before drilling another exploration well at Hibiscus North to further test the significant upside at Dussafu.

Hibiscus and Tortue are two out of a total of six discovered fields within the Dussafu Permit offshore Gabon.

The Hibiscus Extension well (DHIBM-2) is located about 56 km offshore Gabon in 119 m water depth. The well is planned as a vertical well to test structure, oil and reservoir presence in what is believed to be a possible northerly extension of the Gamba reservoir in the Hibiscus field. The DHIBM-2 well is positioned approximately 3 km northwest of the Hibiscus discovery well (DHIBM-1) drilled by the joint venture in 2019. The DHIBM-1 well and its appraisal sidetrack established a 2P gross recoverable reserve of 46.1 MMbbls at the Hibiscus field.

The DHIBM-2 well is expected to take around 30 days to drill and log to a total depth of 3,500 metres. In the event of success at DHIBM-2, one or two appraisal sidetracks may be drilled to further delineate the field.

Success at the Hibiscus Extension well and sidetracks could significantly increase the total reserves at Hibiscus. The Hibiscus/Ruche development project, based on the already discovered reserve at Hibiscus, is currently planned to consist of a converted jackup tied back to the FPSO with 12 development wells drilled in two phases, with first oil in early 2023. The additional reserves at Hibiscus, if proven by the DHIBM-2 well, would require additional wells and possibly a converted jackup to fully develop the potential in the area.

 


Libya Hopes to Surpass Angola, Shoots for Africa’s Top Oil Producer

By Mohammed Jetutu, in Cairo

Libya’s National Oil Company (NOC) is hoping to add some 300,000Barrels of oil per day to its average December 2020 output by the end of 2021.

That brings total output to 1.6MMBOPD– a level not seen since 2008. Although security in Libya’s oilfield activities isn’t entirely guaranteed, the country has been ramping up output.

If Libya succeeds-against the odds of insecurity-It will surpass Angolan output which, even before COVID 19 happened, had struggled below 1.45MMBOPD.

In February 2021, Angola  exported 1.206MMBOPD, according to Africa Oil+Gas Report’s March/April 2021 edition, released last week.

Libya has bigger reserves (48Billion barrels) than Angola (8 Billion) and Nigeria (37Billion), but years of conflict and underinvestment have capped the growth of its hydrocarbon industry.

Oil production in Libya has undergone a rapid rebound of almost 1MMBOPD since mid-October 2020, after the UN-backed Government of National Accord and the self-styled Libyan National Army agreed a truce.

Crude and condensate loadings from Libya in December 2020 averaged 1.237MM BOPD compared with 1.07MMBOPD in November 2020, the Africa Oil+Gas Report reported last January.

NOC expects near-term gains from a “combination of workovers on existing wells, infill drilling, improved artificial lift capabilities, new power generation projects, repair of damaged tanks, maintenance and replacement of pipelines and reinstating damaged fields”

The key projects NOC is relying on include the 50,000BOPD Sinawin development, the Nafoora field expansion and the full re-start of the Dahra field.

 


UNIDO Needs a Nigerian Advisor for Investment and Technology Promotion, Focused on Germany

The United Nations Industrial Development Organisation (UNIDO) requires a National advisor for Investment and Technology promotion, located at the offices of the delegation of German industry and commerce in Nigeria.

S/He will be a part of The UNIDO ITP Network which primarily assists developing countries and countries with economies in transition in their industrialization efforts through promotion of foreign investment and transfer of technology. ITPOs promote inward and outward flow of investment and technology and offer value-added services throughout the entire investment promotion cycle from the identification of partners to ensuring the viability of projects. They complement UNIDO’s capacity-building activities by mobilizing financial and technological resources to scale up development impact.

Specifically, the successful candidate will be the focal point of addressing challenges of promoting investment and technology transfer from Germany due to issues such as language barriers, geographical distance and technological gaps.

S/He provides support and advisory services to German enterprises and to the business community in Nigeria and its neighbouring developing countries to facilitate their investment promotional efforts, technology absorption and opportunities for international industrial cooperation

S/He’s part of the UNIDO led project, contributing to the inclusive and sustainable industrial development of developing countries/countries with economies in transition through the mobilization of knowhow, expertise, technology and capital from Germany for the implementation of industrial investment and technology partnerships for the benefit of these countries.

Full project description, scope of work as well as details of application, are included in this link.


George Maxwell, VAALCO Energy’s new CEO, is All Over the News

George Maxwell, the former Chief Executive Officer at Eland Oil &Gas, has kept a place in the media headlines since he led the sale of the company to Seplat Petroleum.

He has just been appointed Chief Executive Officer of VAALCO Energy, a smaller crude oil producer, but one with a prominent public image.

Three months ago, Mr. Maxwell was right in the middle of a boardroom spat at Lekoil, in which the founder Lekan Akinyanmi, squared off against the Zimbabwe based goldminer Metallon Corporation, which holds the company’s largest share (15%). Metallon prevailed, and the shareholders accepted its nominated directors, including Maxwell, Michael Ajukwu, who became chairman and Thomas Richardson to Lekoil’s board.

In his new role at VAALCO, Maxwell is expected to deliver the company’s goal “to continue to be one of the leading independent exploration and production companies in West Africa, with a strategy of achieving significant shareholder returns by maximizing the value of, and free cash flow from, its existing resources, coupled with highly accretive inorganic growth opportunities”. For the “accretive inorganic growth opportunities”, read: the new CEO is charged with increasing the company’s portfolio beyond the Etame asset in Gabon, VAALCO’s only producing property, which produced 4,662 net revenue interest (“NRI”) barrels of crude oil per day (BOPD), or 5,359 working interest (WI)(BOPD in Q4 2020 and reported year end 2020 independent Competent Person’s Report (CPR) of 10.4MMBO.

Maxwell, who has been a Non-Executive Director of VAALCO since June 2020 and resides in the U.K., “will continue to serve as a member of the Board”, VAALCO says in a statement. Considering that Andrew Fawthrop, former Managing Director of Chevron Nigeria, is VAALCO’s chairman of the board, there have been speculations that VAALCO, on their (Fawthorp and Maxwell’s) watch, will look closely at the possibility of acquiring mature Nigerian asset.

 

 

 


Melissa Bond is ExxonMobil’s New CEO in Angola

Melissa Bond has taken over from Andre Kostelnik, as Lead Country Manager / Managing Director for ExxonMobil Angola.

“I’ve supported Angola twice previously in my career and could not be more excited to get to lead this amazing team”, Ms. Bond says, adding that she was “Honored and humbled” to take the appointment.

The Civil Engineering graduate of the University of Waterloo was promoted to the new job from the position of Development Manager of the Delaware Basin at XTO Energy, a subsidiary of ExxonMobil, in March 2021. She is the first female to hold the position.

 

 

Bond holds extensive technical and supervisory experience in strategic planning, drilling and development planning in both mature and emerging markets, including the U.S., Canada and Papua New Guinea.

Her career highlights include roles as Subsurface Engineering Manager at Imperial Oil between August 2014 and March 2016 and Operations Technical Manager in Papua New Guinea.

ExxonMobil has been active in Angola since 1994 and holds interests in three deep-water blocks spanning nearly Two Million acres, including a 18% stake in the prolific Block 17 that accounts for the majority of the country’s output.  

 


It’s Done: Ugandan Oil Project Proceeds to Construction Stage

Fifteen years after a commercial sized discovery was made, the partners of the Lake Albert development project, the Ugandan basin wide crude oil development, have concluded the final agreements required to launch this major project.

The discovery of oil, via the drilling of Mputa 1 onshore Uganda, was made in 2006, a year before the well that led to Ghana’s first oil in 2010 was drilled. But the tyranny of geology (landlocked, waxy crude, over a thousand kilometres from the coast), and one of the industry’s most arduous regulatory processes (the Ugandan bureaucracy), stalled the development.

But it’s done now. At the State House in Entebbe, Uganda this week, Yoweri Museveni, President of the Republic of Uganda, Samia Suluhu Hassan, President of the United Republic of Tanzania, Patrick Pouyanné, Chairman and CEO of TOTAL, as well as representatives of China National Offshore Oil Corporation (CNOOC), Uganda National Oil Company (UNOC) and Tanzania Petroleum Development Corporation (TPDC, were all present at the signing of the Shareholders Agreement of East African Crude Oil Pipeline EACOP and the Tariff and Transportation Agreement between EACOP and the Lake Albert oil shippers.

The Lake Albert development encompasses Tilenga and Kingfisher upstream oil projects in Uganda and the construction of the East African Crude Oil Pipeline (EACOP) in Uganda and Tanzania. The Tilenga project, operated by TOTAL, and the Kingfisher project, operated by CNOOC, are expected to deliver a combined production of 230,000 barrels per day at plateau. The upstream partners are TOTAL (56.67%), CNOOC (28.33%) and UNOC (15%). The production will be transported from the oilfields in Uganda to the port of Tanga in Tanzania via EACOP cross-border pipeline, with TOTAL, UNOC, TPDC and CNOOC as shareholders.

These agreements open the way for the commencement of the Lake Albert development project. The main engineering, procurement and construction contracts will be awarded shortly, and construction will start.

First oil export is planned in early 2025.

All the partners are committed to implement these projects in an exemplary manner and taking into highest consideration the biodiversity and environmental stakes as well as the local communities’ rights and within the stringent environmental and social performance standards of the International Finance Corporation (IFC).

“The Tilenga development and EACOP pipeline project are major projects for TOTAL and are consistent with our strategy to focus on low breakeven oil projects while lowering the average carbon intensity of the Group’s upstream portfolio. These projects will create significant in-country value for both Uganda and Tanzania” said Patrick Pouyanné, Chairman and Chief Executive Officer of TOTAL. “TOTAL is also taking into the highest consideration the sensitive environmental context and social stakes of these onshore projects. Our commitment is to implement these projects in an exemplary and fully transparent manner”.

 


Nicholson, Shinol are Kosmos’ New Top Earth Scientists

Kosmos Energy has promoted Tim Nicholson to Senior Vice President (SVP) and Head of Exploration, and John Shinol has been promoted to SVP and Chief Geoscientist.

Nicholson and Shinol joined Kosmos in 2018 and have been integral to the company’s infrastructure-led exploration (ILX) efforts over that period, primarily in the U.S. Gulf of Mexico and Equatorial Guinea. The two earth scientists were both formerly at Cobalt International Energy where they were responsible for several large discoveries in West Africa (Angola) and the U.S. Gulf of Mexico (North Platte, Anchor, and Heidelberg).

Tracey Henderson, the previous SVP of Exploration, has left Kosmos to pursue other interests.

Andrew G. Inglis, Kosmos Energy’s chairman and chief executive officer said: “As we see momentum return to our ILX activities in 2021, I am delighted to have two highly experienced, oil finders leading our exploration efforts. Tim and John have a long track record of proven-basin exploration success in our focus geographies of West Africa and the U.S. Gulf of Mexico. We have a deep hopper of high-quality ILX opportunities, a strong bench strength of exploration talent and have already seen early success in 2021. I would like to thank Tracey for her time at Kosmos, particularly her contribution to the company’s frontier basin success in the past.”

 

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