All posts tagged gas


NNPC Records 54% Increase in Trading Surplus for November 2020

By Kish Onwunali, in Abuja

The Nigerian National Petroleum Corporation (NNPC) has announced a trading surplus of ₦13.43Billion (or $35.4Million) for the month of November 2020, up by 54% when compared to the ₦8.71Billion ($22.9Million) surplus recorded in October 2020.

The November 2020 edition of the NNPC Monthly Financial and Operations Report (MFOR) indicates that export sales of crude oil and gas for the month stood at $108.84Million, a 70.33% increase over the value of sales for the previous month. Crude oil export sales contributed $73.09Million (67.15%) of the dollar transactions compared with $12.38Million contribution in the previous month; while the export gas sales amounted to $35.75Million in the month.

The total crude oil and gas export for the period of November 2019 to November 2020 stood at $2.89Billion.

The trading surplus or trading deficit is derived by the deduction of the expenditure profile from the revenue in the period under review.

The MFOR November 2020 report notes that NNPC Group’s operating revenue, compared with October 2020 earnings, decreased slightly by 0.02% or ₦0.09Billion ($236, 842) to stand at ₦423.08Billion ($1.113Billion).

Expenditure for the month decreased by 1.16% or N4.81Billion (12.6Million) to stand at N409.65Billion ($1.07Billion), leading to the ₦13.43Billion ($35.4Million) trading surplus.

Overall, expenditure as a proportion of revenue was 0.97 in November 2020 as against 0.98 in October 2020.

The 54% increase in trading surplus in the November 2020 MFOR is primarily ascribed to the substantial decrease in expenditure from the Nigeria Gas Company (NGC) due to cost reduction in overheads, coupled with 38% reduction in NNPC Corporate Headquarters deficit. In addition, the NNPC Group’s surplus was bolstered by the noticeable improved profits for additional engineering services rendered by the Nigerian Engineering and Technical Company (NETCO) and increased revenue from import activities posted by Duke Oil Incorporated. “These healthy performances dominated the positions of all other NNPC subsidiaries to record the Group surplus”, says the press release.

 


Egypt Will Launch Another Bid Round Before March 2021

By Toyin Akinosho

State-owned Egyptian General Petroleum Corporation (EGPC) and Egyptian Natural Gas Holding Company (EGAS) will launch a new oil and gas exploration tender before the end of February 2021.

The tender will include offshore blocks in the Mediterranean and Nile Delta, as well as onshore areas in the Western Desert and Eastern Desert, according to Tarek El Molla, the country’s flambouyant Minister of Petroleum.

The lease sale announcement is coming barely six weeks after Mr. El Molla signed nine new agreements worth more than $1Billion with six international and Egyptian companies to explore and produce oil and natural gas in parts of the Mediterranean and Red Sea. The agreements are for the drilling of 17 new exploration wells.

El Molla said in January that three additional agreements were pending approval in the near future. The total of 12 deals targets the drilling of 23 wells in nine regions in the Mediterranean and three regions in the Red Sea, with a minimum total investment of $1.4Billion.

Egypt is a perennial organizer of lease sales. It is the largest producer and the biggest domestic consumer of natural gas in Africa. But its record in crude oil production is shabby, despite its persistent bid rounds. Last year, it produced an average of 600,000Barrels of Oil Per Day, the lowest in 40 years.


Siemens appoints Dalia Shoukry as CFO in Egypt, its Biggest African Market

Siemens has appointed Dalia Shoukry as CFO in Egypt, effective immediately.

Shoukry has more than two decades of experience in financial roles covering the Middle East, Europe, and Africa.

Egypt is Siemens’ largest market in Africa and one of its biggest in the world. Between 2016 and 2019, under contract by the government, the German engineering firm built three combined cycle gas to power plants with total capacity of 14,400MW in Egypt. In December 2020, Siemens was awarded, by the Egyptian Electricity Transmission Company (EETC), the contract to build the new national energy control centre, in the country’s New Administrative Capital (NAC), still under construction, in the middle of the desert, some 45 kilometres east of Cairo.

Siemens is currently in discussions, with the Egyptian Ministry of Power nd Renewable Energy,  for a 500MW capacity Wind Farm in the country, under a Build, Operate and Transfer system.

All of which means that Ms. Shoukry has her job cut out.

Prior to Siemens, she was the international finance director AstraZeneca, the pharmaceutical giant.

She earned a degree in accounting from Ain Shams University. “We are very happy to welcome Dalia to our team in Egypt. Financing is a crucial component of our business, as it not only defines, manages, and oversees all budgets, but it also monitors the performance and ensures the financial health and stability of Siemens Egypt,” said Mostafa El-Bagoury, CEOof  Siemens Egypt.

Siemens has been active in Egypt ever since its founder, Werner von Siemens, laid a communications cable through the Red Sea in 1859 to link Suez and Aden..


Glencore Takes Carroll on Board

Glencore plc has appointed Cynthia Carroll, the British geologist and businesswoman, as an Independent Non-Executive Director of the Company with immediate effect.

Cynthia Carroll was the Chief Executive Officer of Anglo American, the world’s largest platinum producer, from 2007 to 2013. She was the first non-South African to hold the position. She was a non-executive director of the board of BP between 2007 and 2017.

Mrs. Carroll has over 30 years’ experience in the resources sector. She began her career as an exploration geologist at Amoco before joining Alcan. She held various executive roles there culminating in being CEO of the Primary Metal Group, Alcan’s core business

Cynthia Carroll is currently a non-executive director of Hitachi, Ltd (TYO: 6501), Baker Hughes Company (NYSE: BKR) and Pembina Pipeline Corporation (TSE: PPL). Previous non-executive appointments have included BP and the Sara Lee Corporation.

Glencore’s Chairman, Tony Hayward says the board is very pleased to welcome Cynthia Carroll, who has extensive knowledge of the resources industry as well as strong non-executive director experience.

 


VFuels Wins the Contract to Build the Processing Units of the Cabinda Refinery

By Foluso Ogunsan

VFuels, the American refinery constructor, will be fabricating, constructing and installing the Inside Battery Limits (Processing Units) of the Cabinda Refinery in Angola.

The contract is in the making.

Construction is expected to take 18 months. The processing units include the Crude Distilation Unit (CDU) and Merox (acronym for Mercaptan Oxidation).

VFuels constructed the ISBL of the Waltersmith Refinery in Ibigwe, in the east of Nigeria.

United Shine EPC Consortium is the EPC contractor mandated by the Angolan government to Build, Own and Operate the Refinery, after it won a keenly contested bid to build the facility. It will hold 90% in the facility, in partnership with the state hydrocarbon company Sonangol, whose subsidiary -Sonangol Refinación – Sonaref SA holds 10% equity.

The Cabinda Refinery is planned to process 60,000Barrels of Oil Per Day in two phases, with 30,000BOPD in each phase. The first phase will output Diesel, Kerosene, Heavy Fuel Oil-HFO and Naphtha, without Gasoline. In the second phase, Gasoline production will be introduced, in addition to the entire product line of the first phase.


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.

 

 

 


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.

 

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