Contents · 2020-07-11 · security at all times. ... However, one opposition party, Oromo Federalist Congress, said COVID-19 is just an excuse to postpone as the Electoral Board

Petroleum Africa – Issue 2, 2020 3

Local ImpactThe Pandemic is No Time for Fiscal Distancing 20

DEPARTMENTSAfrican PoliticsMessage from the EditorMoving OnDownstream NewsPower & AlternativesAround the WorldMarket MoversAdvertisers’ Index

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ContentsVol. 17 Issue 2 2020

Sinopec built the world’slargest Atmospheric Towerfor the Dangote refinery

African FocusA New Era of Opportunity

in Gabon’s Petroleum Sector 26

Downstream FocusNigeria’s Super Project 24

Africa’s Big FiveHighlight: Ocean Infinity Completes Angola’s Block 32 Project

Ocean Infinity successfully completed its project with Total E&P in Angola. The project was the firsttime that geophysical, geotechnical, and seismic data has been gathered at the same time.

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Africa at LargeHighlight: VAALCO Completes Drilling Program in Gabon

VAALCO’s 2019/2020 drilling program in Gabon successfully came to an end with the drilling of theSouth East Etame 4H well.So

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Monthly FocusGas Flaring Report Card 22

New Products & ServicesWeatherford’s New Centro™, Digital Well Delivery

Big Blue Ocean Cleanup Project

Silver Eagle Global to Build a Seriesof Self-Elevating Drilling Units

Emerson Introduces New Data VisualizationSoftware for Flow Measurement

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Petroleum Africa – Issue 2, 20204

Mubarak Goes Gently into HistoryHosni Mubarak, former long-time president ofEgypt, was laid to rest following a full militaryfuneral with his family, including sons Gamaland Alaa, in attendance, along with the currentruler Abdel Fatah el-Sisi and top military officials.

Mubarak was 91 when he passed, having beenreleased from prison just three years earlierand allowed to live out his final years withhis family.

Despite the mixed legacy of his three-decadereign in Egypt, Mubarak was honored in a publicfuneral and praised as a war hero. A statementfrom the Egyptian presidency called Mubarak“one of the leaders and heroes,” of the war againstIsrael. Egypt’s military also released a statementlauding Mubarak’s record during his time in theEgyptian air force.

Perhaps feeling nostalgic, many Egyptians arelooking back at Mubarak’s 30 years kindly ascompared to the current rule of el-Sisi. AidaSeif El-Dawla, of the Nadeem Centre forRehabilitation of Victims of Torture and Violence,described life under el-Sisi’s rule as “revenge forhaving revolted against Mubarak.”

Sudan’s PM SurvivesAssassination AttemptSudan’s Prime Minister Abdalla Hamdok hassurvived an assassination attempt after a blastnear his convoy in Khartoum, the capital city.

Prime Minister Hamdok wrote on Twitter he was“safe and in good shape” following the cowardlyattack and resultant explosions. “I would like toassure the people of Sudan that I am safe and ingood shape. Rest assured that whathappened today will not stand in the way ofour transition, instead it is an additional pushto the wheel of change in Sudan,” thePrime Minister tweeted.

He added, “What happened will not stop the pathof change, it will be nothing but an additionalpush in the strong waves of the revolution.”Hamdok is leading a transitional governmentfollowing the overthrow of long-time PresidentOmar al-Bashir last year.

Cameroon ParliamentaryElections See Ruling Party LandslideCameroon’s ruling party emerged with a landslidevictory in the country’s parliamentary elections,according to results announced by theconstitutional council. President Paul Biya’sPeople’s Democratic Movement party (RDPC)took 139 out of 167 declared seats in theFebruary 9 polls. The Social Democratic Frontparty, the country’s largest opposition party duringthe 2013 polls, lost a number of seats, fallingfrom 18 to five

According to Clement Atangana, the constitutionalcouncil’s president, the estimated turnout waspegged at 46 percent, RDPC’s share of seats fellfrom 148 in the outgoing parliament. Electionswere not held in 13 seats covering theAnglophone regions but are expected to be heldat a later date.

Two KidnappedNOC Employees ReleasedOn March 30, the board of National OilCorporation (NOC) welcomed the release ofAshraf Msallam and Valentin-Laurentiu Puscasuwho had been held captive for 1 year and 7months.

NOC Chairman Eng. Mustafa Sanalla said, “Iam very glad to see these men are safe and thattheir time in captivity has finally ended. Thesafety of employees and workers is a priority.Some workers in NOC facilities can be exposedto significant risks and we must guarantee theirsecurity at all times. I wish Msallam and Puscasua quick reunion with their families and lovedones, as soon as it is safe to do so.”

“We call on the relevant law enforcement agenciesto urgently investigate this situation further andname and prosecute those responsible for thiscrime, to ensure future kidnappings neverhappen again.”

Ethiopia Postpones Electionsover COVID-19 Fears, SupposedlyThe global Coronavirus outbreak has forcedEthiopia to postpone its much-anticipated nationalelection. The election was scheduled to be heldon August 29, according to the ruling party. “Withthe existing condition in the country, the Boardsaid it had no choice but to suspend its currentschedule and forward its resolution to theparliament,” the statement from the NationalElectoral Board of Ethiopia read.

However, one opposition party, Oromo FederalistCongress, said COVID-19 is just an excuse to

postpone as the Electoral Board was well behindschedule in organizing the polls. “The Board wasalready behind the schedule by weeks before theCoronavirus outbreak became an issue. Therewas no way they could have held the election asscheduled. The pandemic just gave themjustifiable excuses,” says Jawar Mohammed, thepolitical activist turned candidate with the OromoFederalist Congress.

Meanwhile, other oppositions parties supportthe decision. “It was expected and it is adecision that was justified considering thespread of COVID-19 and this was also ourview to postpone”, says Natnael Feleke, thespokesperson of Ethiopia Citizens forSocial Justice, one of Ethiopia’s leadingopposition party.

This development is seen as a major setback forthe country’s democratic reforms after it allocatedover $100 million and received support frominternational donors. The upcoming election wasto be Ethiopia’s first historic free and fair election.The last election in 2015 produced anoverwhelming result that produced every singleparliamentary seat in favor of the previousgovernment. One of Ethiopia’s autonomousregions, Tigray, had warned that postponing itwill pose a danger to the federation, which nowconsists of nine autonomous states and two cityadministrations.

In order to combat the virus, the Ethiopiangovernment has been taking measures to controlthe spread including banning mass gatherings,closing schools, while autonomous regional stateshave suspended intra and inter regionaltransportation services and put a ban onmovements of people.

Sudan Appoints Ambassador to USSudan has appointed its first ambassador to theUnited States for almost a quarter of a century.The appointment is seen as a step towardnormalizing relations after decades that includedsanctions against the country while it was ruledby long-time dictator Omar al-Bashir who wasdeposed last year.

The Sudanese ForeignMinistry said it hadchosen Noureldin Sati,a veteran diplomat, tob e c o m e t h e n e wa m b a s s a d o r i nWa s h i n g t o n . H i sappointment was metwith the approval of U.S.authorities.

AFRICAN POLITICS

Hosni Mubarak

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Libyan Rebel PM Dies of COVID-19Mahmoud Jibril, the prime minister of Libya’sde facto National Transitional Council for a periodduring the civil uprising that ousted Libyan leaderMuammar Qaddafi during the 2011 revolution,died after contracting the Novel Coronavirus, anaide and his party said.

The 68-year old Jibril wasreferred to a hospital in theEgyptian capital Cairo onMarch 27 after testingpositive for COVID-19. Hedied in a private hospital inCairo where he had beenreceiving treatment since

being diagnosed with the virus late in February,said Fawzi Ammar, an aide.

Jibril was interim leader until the country heldits first free elections in four decades in 2012.

Somalia, AMISOM, AFRICOMConduct Operations against al-ShabaabAs part of an African Union Mission in Somalia(AMISOM) and Somali National Armyoperation, and in coordination with the FederalGovernment of Somalia, U.S. Africa Commandconducted five airstrikes against al-Shabaabterrorists near Janaale, Somalia, March 16-17.These precision airstrikes targeted membersof the al-Qaida-aligned terrorist networkas they massed and maneuvered in thevicinity of an ongoing Somali-led groundoperation.

“We protect and remain committed to ourpartners – plain and simple,” said Maj. Gen.William Gayler, director of operations, U.S. AfricaCommand. “We eliminated terrorists posing adirect and immediate threat, allowing ourAfrican partners to maintain the momentum onthe ground.”

Somali security forces continue to lead operationsalongside AMISOM forces to increase securityand seize ground from al-Shabaab. No civilianswere injured or killed as a result of these airstrikes.U.S. forces were in the area when these airstrikesoccurred in order to advise and assist Somali andpartner forces.

U.S. Africa Command continues to support theGovernment of Somalia by strengthening itssecurity forces and promoting regional security,stability and prosperity. Al-Shabaab continues toconduct attacks in East Africa and willcontinue to threaten American and westerninterests in the region.

Concurrently, the command is buildingenduring relationships and strategic alliancesin East Africa necessary to address futurechallenges and malign activity by near-peercompetitors.

Mahmoud Jibril

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Over March and into April, the continent has been in a panic over the Coronaviruspandemic (COVID-19). If you look at the potential havoc the virus can wreak uponAfrican countries, you can easily understand why. There are many on-the-groundrealities that make the spread of the disease disastrous. Number one, many major citiesare densely populated and offer a breeding ground for the virus to spread rapidly.Secondly, most African countries do not have the financial resources to implement astrategy geared toward prevention and treatment.

Putting in place a lockdown, or stay-at-home strategy may sound like the best courseof action. However, a good percentage of the population exists on less than $1 perday and many would face starvation if their livelihoods were cut off. On the otherhand, even if governments put measures in place to feed its citizens, distribute protectivegear and erect Coronavirus treatment and isolation centers, most countries do not havethe budgets to do so. What’s more, poor countries do not have access to low interestloans like the strong economies of the West and would become even more heavilyindebted trying to keep the pandemic from ballooning out of control. A true catch-22for African nations.

Confirmation of the early financial impacts the Coronavirus is having comes from“Africa’s Pulse”, the World Bank’s twice-yearly economic update for the region.“Growth in Sub-Saharan Africa has been significantly impacted by the ongoingCoronavirus outbreak and is forecast to fall sharply from 2.4% in 2019 to -2.1 to -5.1% in 2020, the first recession in the region over the past 25 years,” Africa’s Pulsereported in its latest publication.

“The analysis shows that COVID-19 will cost the region between $37 billion and$79 billion in output losses for 2020 due to a combination of effects. They includetrade and value chain disruption, which impacts commodity exporters and countrieswith strong value chain participation; reduced foreign financing flows from remittances,tourism, foreign direct investment, foreign aid, combined with capital flight; throughdirect impacts on healthcare systems, and disruptions caused by containment measuresand the public response.”

So while Africa is having to battle COVID-19, it is also faced with low oil prices anda depressed investment environment leaving it very difficult to progress much-anticipated projects with many operators reducing CAPEX and OPEX and delayingwork programs in light of these major issues. Operational activity updates from theoilfield and downstream facilities is surfacing farther and fewer between. Over thecourse of the year we will continued to delve into the impacts of the pandemic andlow oil prices, and at the same time eagerly await operational updates as they cometo light.

In this issue, be sure to catch more on the impacts of COVID-19 on the continent inour Local Impact section. Our Monthly Focus provides a report card on Flaring foroil and gas producing nations, while the Africa Focus feature highlights the opportunitiesin Gabon’s petroleum sector. As always, your comments and suggestions are welcomeand can be sent to [email protected].

Dianne SutherlandChief Editor


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MOVING ON

To include a corporate personnel announcement in Moving On, write to [email protected]. Preference will be given to Africa-specific appointments and to thosecompanies who have interests within the continent; all others will be included on a space available basis.

The African Energy Chamber has appointedEng. Elizabeth Rogo, Founder & CEO ofTSAVO Oilfield Services, as its President forEast Africa. Elizabeth is based in Nairobi andwill represent the Chamber across the region,including Kenya, South Sudan, Ethiopia, Uganda,Tanzania, Rwanda and Burundi.

Suleiman Achimugu, the former managingdirector of Nigeria’s Pipelines and ProductMarketing Company (PPMC), died in the capitalAbuja after returning to Nigeria following amedical procedure in the UK. Achimugu, it isreported, had underlying medical conditionsincluding multiple myeloma and diabetes and hewas also undergoing chemotherapy, the NigeriaCenter for Disease Control said.

The Ministry of Petroleum and MineralResources of Egypt led by Minister Tarek ElMolla, made a number of changes to its personnelin leading companies. Some of the higher levelchanges include Manal Mohammed Masoudbecoming director of administrative affairs atSinai Gas; Rania Abdelmena’m Abd El Aziz

becomes director of human resources developmentat Agiba Petroleum; Yasser ShawkyMohammed is now director of AdministrativeAffairs at the Egyptian Drilling Company;and Ashraf Samir Abd El Fattah becomesdirector of Administrative Affairs at Gastec.Numerous other positions were made to CEOassistant positions. EPSCO, Sianco, Gas Cool,Cairo Gas, Agiba Petroleum, and EgyptGas are among those companies seeingthese changes.

The African Energy Chamber appointedLeoncio Amada Nze, Founder & CEO of APEXIndustries, as its Executive-President for theCentral African Economic and MonetaryCommunity (CEMAC) which is made up of sixstates: Gabon, Cameroon, the Central AfricanRepublic, Chad, the Republic of the Congo andEquatorial Guinea. Leoncio is based in Malabowhere he will act on behalf of the Chamber acrossall public and private sector energy initiatives inthe region. In his role, Leoncio will be contributing

to key development priorities for the Chamber,especially developing local content andbuilding domestic capacity, gas monetization,empowering energy investors, and advocatingfor policy reforms.

The Chairman and Chief Executive Officer ofthe Sonatrach Group, Toufik Hakkar, madeofficial the installation of eight new vice-presidents. The new vice-presidents of Sonatrachare Mohamed Slimani, vice-president exploration& production activity; Amine Melaika, vice-president transport by pipeline activity;Nasreddine Fatouhi, vice-president liquefactionand separation activity; Batouche Boutouba,vice-president refining & petrochemicalsactivity; Fatiha Neffah, vice-president marketingactivity; Rachid Zerdani, vice-presidentresponsible for strategy, planning andeconomy; Hadj Djilali Abouda, vice-presidentresponsible for finance; and Fethi Arabi,vice-president responsible for businessdevelopment & marketing.

President João Lourençoof Angola has reappointedP e d r o A z e v e d oDiamantino as Ministerof Mineral Resources,Petroleum and Gas.Diamantino was initiallyappointed in September2017 and went on to enact

a number of reforms in the country’s oil andgas sector. Under his leadership, newframeworks for marginal fields development,gas developments, licensing rounds anddomestic capacity building were realized, aswell as new partnerships with oil majors,spurring a resurgence of investment in thecountry’s petroleum sector.

Azevedo Diamantino

Mahmoud Jibril, theprime minister of Libya’sd e f a c t o N a t i o n a lTransitional Council fora period during the civiluprising that oustedLibyan leader MuammarQaddafi during the 2011revolution, died after

contracting the novel coronavirus, an aideand his party said. The 68-year old Jibril wasreferred to a hospital in the Egyptian capitalCairo on March 27 after testing positive forCOVID-19. He died in a private hospital inCairo where he had been receiving treatmentsince being diagnosed with the virus in March,said Fawzi Ammar, an aide. Jibril was interimleader until the country held its first freeelections in four decades in 2012.

Mahmoud Jibril

Tullow Oil plc announcedthe appointment of RahulDhir as chief executiveofficer and an executivedirector of the Group.Rahul will take up hisappointment from July 1and Dorothy Thompson,currently executive chair,

will return to her position as non-executivechair after a limited period of handover.Rahul brings extensive leadershipexperience in oil and gas to Tullow. He iscurrently CEO of Delonex Energy, an Africa-focused oil and gas company that he foundedin 2013. Prior to establishing Delonex,Rahul served as managing director and CEOof Cairn India from its IPO in 2006until 2012.

Rahul Dhir


AFRICA BIG F IVE

SD-12X Spuds in South DisouqSDX Energy recently commenced drillingoperations on the SD-12X (Sobhi) well at SouthDisouq in Egypt (SDX 55% working interest,100% working interest in this well). Sobhi isexpected to reach its targeted depth ofapproximately 2,300 meters in late April and istargeting gross P50 unrisked prospective resourcesof c.33 bcfe, as estimated by management.

Sobhi’s primary target is in the same Kafr elSheikh formation that the company’s existing IbnYunus well is already producing from. Ifsuccessful, the Sobhi well would be tied induring 2021 via a 5.8-km tie-in to the IbnYunus-1X location where an existing flowlineconnects to the South Disouq CentralProcessing Facility.

On a gross basis, this tie in cost is estimated at$3.5 million. The 33 bcfe gross P50 unriskedresource targeted by Sobhi would potentiallyonly require one further development well. SDXwill drill the Sobhi well at a 100% workinginterest for an estimated gross dry hole cost of$2.3 million which will be paid over the comingthree months.

Mark Reid, CEO of SDX, commented: “Sobhiis an exciting well for the company, targeting thesame productive formation we are alreadyproducing from in Egypt and if successful, it hasthe potential to extend the current plateauproduction of 50 MMscfe/d to 2024.”

Sonatrach signs MoUswith TPAO and ZarubezhneftAlgerian state oil and gas concern Sonatrachsigned a pair of memoranda of understanding(MoUs) with two companies, the Russiancompany Zarubezhneft and the Turkish companyTurklye Petrolleri Anonim Ortakliôi (TPAO).These two agreements will make it possible toinitiate joint discussions on the opportunitiesconcerning the exploration, development and

exploitation of hydrocarbons in Algeria, inparticular following the promulgation of the newAlgerian Hydrocarbons Law.

The signing of these two memorandums ofunderstanding confirms the renewed dynamismof the Algerian exploration potential within theframework of the attractive provisions introducedby the new Law on hydrocarbon activities. Theseagreements will allow, in particular, the revivalof the exploration activity in partnership and afair sharing of risks in this capital activity, aSonatrach announcement stated.

TechnipFMC Takes EPCI Contractfor the BP Platina Field in AngolaTechnipFMC has been awarded a significantintegrated Engineering, Procurement,Construction and Installation (iEPCI) contractfrom BP Angola for the Platina field development,located offshore Angola in Block 18 at waterdepths ranging from 1,200 to 1,500 meters.

The contract covers the manufacture, deliveryand installation of the subsea equipment includingsubsea trees, a production manifold withassociated subsea control and connectionsystems, as well as rigid pipelines, umbilicalsand flexible jumpers.

Arnaud Pieton, President Subsea at TechnipFMC,commented: “We are very pleased to have beenselected by BP for this important deepwaterdevelopment offshore Angola. We are committedto BP and to supporting the Angolan oil and gasindustry. This iEPCI™ follows iFEED™ workand will utilize our local assets such as ourservice base in Luanda and our umbilical factoryin Lobito.”

Nigerian FPSO Contractwith ExxonMobil and ENI AwardedUnderwater inspection services providerWelaptega has delivered on contracts to supporttwo energy supermajors in West Africa, afterestablishing a strategic partnership withengineering and training organization STAT-Marine Nigeria Ltd. The awards saw the AshteadTechnology-owned business inspect the mooringsystems on two floating production storage andoffloading (FPSO) vessels for ExxonMobil andENI in Nigerian waters.

Welaptega undertook inspection services on ENI’sAbo FPSO, on the western edge of the NigerDelta, at water depths of 550-1100 meters. It alsoinspected moorings on ExxonMobil’s UsanFPSO in the Gulf of Guinea at depths of up to850 meters.

Using its advanced chain measurement system(CMS) technology, Welaptega chain inspectionscan be completed up to 40% faster when comparedto traditional methods. By using optical systemsto take three separate measurements, chaindiameter measurements can be assessed fromvideo footage instead of requiring equipment tophysically grip the chain.

Welaptega was acquired by internationalunderwater equipment and solutions specialistsAshtead Technology in November 2018.

PGS Completes MC3D Acquisitionon Angola’s Kwanza ShelfPGS has announced the completion of theacquisition phase on its MC3D Kwanza Shelfsurvey offshore Angola. Total GeoStreamercoverage in Blocks 6, 7 and 8 and the surroundingareas of the Kwanza Shelf is now 8,300 sq kms.This MC3D Kwanza Shelf survey complementsan earlier PGS acquisition, carried out in 2019.

The latest Kwanza Shelf survey will provide keydata for the Angolan 2021 License Round. Afast-track dataset is now available for viewing.The present-day shelf of the Kwanza Basin hasbeen overlooked in previous exploration cycles.The combination of 3D GeoStreamer technologywith modern imaging techniques is expected tounlock plays in shallow Kwanza Shelfopen blocks.

Shallow-water environments such as the KwanzaShelf can present imaging challenges. These areresolved in this survey by enhanced processingflows such as FWI and SWIM enabled byhigh-quality GeoStreamer 3D broadband data.Fast-track data from the Kwanza ShelfMultiClient 3D GeoStreamer survey is nowavailable for viewing.

Libya’s Monthly RevenueDrops 69% in FebruaryLibya’s National Oil Corporation (NOC) reportedFebruary 2020 revenues of approximately $555million, a decrease of around $1.21 billion (68.6%)on January 2020 revenues. The February figureis also a decrease of around $708 million (56%)compared with February last year.

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AFRICA BIG F IVE

NOC’s revenues come from sales of natural gas,crude oil and assorted derivative products, inaddition to taxes and royalties received fromconcession contracts.

NOC Chairman Eng. Mustafa Sanallacommented: “February shows a major decreasein revenues as a result of the illegal blockade ofnumerous oil and gas facilities. This is adevastating, irreversible loss to the Libyaneconomy and people. With less funds cominginto the country Libya’s people are more atrisk of suffering due to the further degradationof public services and facilities. The last time ourmonthly revenue hit this low was inSeptember 2016.

“We can still see some revenue for previous salesthat came through in February, but we expect thisnumber to keep dropping sharply as long as thisblockade continues.”

Sonatrach and Eni SignGas Agreement for Block 403Sonatrach and Eni Algeria Production BV havesigned a Gas Agreement relating to the marketingby Sonatrach on behalf of the above-mentionedparties, of dry gas quantities from the Zemoul ElKbar perimeter (surplus gas block 403), locatedin the Wilaya of Ouargla and this within theframework of the Association Contract betweenSonatrach and Eni.

This excess gas will be transported through thegas pipeline connecting the installations of blocks403 and 405b, allowing its treatment at the MenzelLedjmet (MLE) gas installations. The annualproduction of gas marketed is around 500 Millioncubic meters until the year 2042.

United Oil & Gas ProgressesAbu Sennan Work ProgramUnited Oil & Gas has provided an operationaland corporate update to shareholders includingthe commencement of gas production at the AlJahraa field in the company’s 22%-owned AbuSennan concession, onshore Egypt, and measurestaken in response to the COVID-19 pandemicand ongoing oil-price volatility.

The construction of a 10-km gas pipeline, linkingthe Al Jahraa Field, which lies within the AbuSennan concession, to the neighboring KPCfacility has been completed. The project madeuse of existing facilities, and total gross costswere kept to below $350k. Gas was broughtonstream through the pipeline on March 22, andsince then the rate has increased to over650 boepd (143 boepd net to United’s 22%working interest).

Not only has the completion of the pipelinereduced the amount of flaring on the asset, it hasalso increased the overall gross production levelsfrom the Abu Sennan concession to c. 8,400boepd on a gross basis (1,850 boepd net toUnited’s working interest). The current productionlevels are more than double where they were 12months ago, and this has in part been driven bythe recent success at the ASH-2 well, whichcontinues to produce at over 3,000 bopd. Plansto further develop this field are still beingprogressed.

The El Salmiyah 5 drilling operations continue.This is an infill well targeting multiple undrainedreservoirs within the El Salmiyah field. Thewell is making good progress and the companystates it will update the markets on this well indue course.

Kuwait Energy Egypt (KEE), the operator of theAbu Sennan concession, has indicated that dueto the current low oil price, they plan to reducethe 2020 Capex costs on the license significantly.This will include deferring at least two of thefour planned 2020 infill wells.

TDI-Brooks BeginsNigeria Geochem AnalysisTDI-Brooks announced that its R/V Gyre iscurrently performing a further geochemistryanalysis program offshore Nigeria. This isNiger ia’s f i r s t regional mul t i -c l ien tM u l t i b e a m a n d S e a f l o o r S a m p l i n g(MB&SS) Study.

After just 3 days of field operation, two prominentwater column anomalies and bubble plumes wereobserved in over 2,000 meters water depth withassociated surface slicks. The study will coveran area of approx. 80,000 sq kms of the offshoreNiger Delta and will incorporate around 150 coresfrom the seabed, which target multibeambackscatter anomalies. To this date, the RV Gyrehas collected 65,000 sq kms of multibeam dataand identified 431 water column anomalies inthe Nigeria study area.

Shelf Drilling Gets Extra Time in EgyptShelf Drilling out of the UAE announced that ithas secured a one-year contract extension for theTrident 16 jack-up rig in direct continuation ofits current term with Petrobel (Belayim PetroleumCompany) for operations in the Gulf of Suezoffshore Egypt.

The Trident 16 has been working with Petrobelin Belayim fields since 2015, and following thisextension, the expected availability of the rig ismoved back to February 2021.

Ocean Infinity CompletesAngola’s Block 32 ProjectNext generation marine robotics company OceanInfinity announced that it has successfullycompleted its project with Total E&P in Angola.The project was the first time that geophysical,geotechnical, and seismic data has been gatheredat the same time. This was achieved throughsimultaneous operations of Ocean Infinity’s stateof the art Autonomous Underwater Vehicles(AUVs) with geotechnical and seismic equipmentbased from one surface vessel.

The successful completion of this project, whichwas all done from one vessel and on a singlecruise out to the project site, is a majorbreakthrough in maximizing efficiency onsubsea survey operations. The 28-dayproject, carried out from the host vessel‘Normand Frontier’ using Ocean Infinity’sinnovative technology, conducted 2D Ultra High-Resolution Seismic surveys and Seabed soilSampling in Block 32 and Block 17. The successof the project is testament to OceanInfinity’s market leading technology in deep waterdata acquisition.

Ocean Infinity’s recent expansion to their fleetof autonomous underwater vehicles and furtheradvancements in pioneering battery technology,ensures that high-quality data is gathered for theclient in the safest, most efficient way driven byits market leading technology.

Pharos Updates Egypt OpsIn its preliminary results for the yearended December 31, 2019, Pharos Energyupdated its operations in Egypt as well asgave insight to its 2020 program in the NorthAfrican country. From April 2 throughDecember 31, the company saw production of5,055 bopd.

The company also expanded its El Fayumoperations and ESG enhancements; increased

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drilling activity and commencement of waterfloodimplementation in the Greater Silah Area. Pharoswas also able to reduce GHG emissions throughthe elimination of 730,000 liters of diesel use peryear and associated emissions and achieved a30% reduction in flared gas at the North SilahDeep site.

Going forward in 2020, the company will lookto appropriate pacing of a low-cost multi-wellproducer and water-injector program, to proceedwith waterflood implementation to increaseproduction and recovery.

The Phase Two program of associated gas-powered electrical generators is planned to reduceCO2 emissions further and the use of solar powersources for electrical generation at satellitewellsite(s) is under investigation. Further, thecompany will conduct a low-cost evaluation ofthe oil development potential of the recentlyawarded North Beni Suef Concession whichstraddles the Nile across both the Western andEastern Deserts

Sonatrach and Chevron Ink MoUSonatrach, Algeria’s national oil company andUS supermajor Chevron have signed amemorandum of understanding (MoU) to initiatejoint discussions on partnership opportunities inthe hydrocarbon industry, a statement from thestate company said.

The MoU, concluded on March 12, concerns “theopportunities for exploration, development andexploitation of hydrocarbons in Algeria, in

particular following the promulgation of thenew Algerian law on hydrocarbons,” accordingto the release.

“This memorandum of understanding confirmsthe intention of the two parties to develop theirpartnership in the hydrocarbon industry inAlgeria, which should allow mastery and transferof technologies and know-how in varioussegments of the oil and gas industry,” added thepress release.


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AFRICA AT LARGE

Serinus Restarts EC-1Production in TunisiaSerinus Energy, in an operational update, saidthat its Tunisian staff were able to restart theEC-1 well in the Ech Chouech license area,bringing the number of producing wells to five

in the Chouech area. Oilproduction from thewells continues toincrease as the watercuts from the wellsdiminish. The companypreviously announcedthat the Chouech EsSaida field was restartedw i t h p r o d u c t i o nresuming from all fourwells in August 2019.

Its operations at the Sabria field continue asnormal. In January, the company performed acoil-tubing operation on the Win-12bis well inorder to remove a potential blockage that was thesuspected cause of lower production levels afterthe field was brought back on productionfollowing the shut-in from May to September2017. Production from this well has beengradually increasing since the operation wassuccessfully completed.

SDX Encounters Gas in MoroccoSDX Energy provided an update on its recentanalysis of the LMS-2 well (SDX 75% workinginterest) which was drilled to a measured depthof 1,190 meters. The company advised that electriclogging has shown that a 10.6-meter net gasreservoir with 30.9% porosity has beenencountered on prognosis at the base of theH9/Srafen formation.

Unlike previous gas discoveries in the south ofthe acreage, analyses while drilling indicated thatthe different thermogenic composition of the gassuggests that it is from a new and likely deepersource rock. The well has been cased andcompleted and, when changes to COVID-19restrictions make it possible to bring a well testingcrew into the country, it will be perforated andtested to determine its potential.

Mark Reid, CEO of SDX, commented: “We areencouraged with the initial results at LMS-2 inMorocco, however, we require this well to beperforated and tested before we can understandits potential.”

Greater Tortue AhmeyimProject Delayed One YearBP has issued a force majeure declaration to GimiMS Corp., a subsidiary of Golar LNG Ltd relating

to the Greater Tortue Ahmeyim project. Golarsays the Notice received from BP claims that dueto the recent outbreak of the novel coronavirus(COVID-19) around the globe, BP is not able tobe ready to receive the floating liquefied naturalgas facility – FLNG GIMI – on the targetconnection date in 2022.

In an operational update, Kosmos Energyconfirmed that the operator’s priority ismaintaining the safety of its staff, contractors andthe general public, and continued compliancewith international and national restrictions to stopthe spread of the coronavirus. “With borderclosures, travel bans, social distancing restrictionsand office closures arising from the coronavirus,the project’s activities across global locationshave been impacted. These ongoing restrictionshave had an impact on time-critical workstreams,including the construction of the breakwaterduring the 2020 weather window. As a result, thePhase 1 project timeline is expected to be delayedby approx. 12 months, with first gas now expectedin the first half of 2023. Phase 1 of the project iscurrently over 30% complete,” the update read.

Golar reports in the notice, BP estimated at thisstage that the consequential delay caused by theclaimed force majeure event is in the order ofone year and that it is not currently possible tomitigate or shorten this delay. Golar has askedBP to clarify how a force majeure event discoveredas recently as the end of March 2020 couldimmediately impact the schedule by an estimatedone year.

Based on the information received, Golar isengaging in clarification and an active dialoguewith BP to establish the duration of the delay andthe extent to which this has been caused by theclaimed force majeure event. However, inanticipation of a potential delay, the company hascommenced discussions with its mainbuilding contractor, Keppel Shipyard Limited, tore-schedule activities in order to reduce andreprofile its capital spending commitments for2020 and 2021.

South Sudan Postpones Licensing RoundAs a result of the global COVID-19 pandemic,South Sudan’s Ministry of Petroleum said that itwould suspend its first ever oil and gas licensinground which was set to kick off in March. Theannouncement came from Awow Daniel Chuang,Undersecretary in the Ministry of Petroleum.

“Right now, we were in the middle of preparingfor the first oil and gas licensing round. It wasactually planned to be here by March but becauseof the coronavirus we could not even move,”Chuang told journalists in Juba.

Chuang along with Ministry of Petroleumofficials, announced its bid to actively engage oiland gas companies focused on exploration, attwo Africa focused events – Africa Oil & Powerand the South Sudan Oil & Power 2019 (SSOP)– in Q4 2019.

VAALCO CompletesDrilling Program in GabonVAALCO Energy, Inc. announced the completionof its 2019/2020 drilling program as well as anoperational update. With the drilling of the SouthEast Etame 4H well, the company’s drillingcampaign came to an end. As previouslyannounced, with the drilling of the South EastEtame 4P appraisal wellbore, VAALCO has alsosatisfied the drilling commitment as part of thePSC extension that it signed in late 2018.

After installing production equipment, the SouthEast Etame 4H well was brought online at aninitial rate of approximately 2,200 gross bopd,(600 BOPD NRI to VAALCO), with no H2Swhich is at the high end of the February 2020pre-drill initial production rate of 1,200 to 2,500gross bopd (325 to 675 bopd NRI to VAALCO).The well was drilled and completed as planned,with no safety or environmental incidents.

As previously announced, on March 7, the SouthEast Etame 2H well stopped producing due to anESP failure. The drilling rig on the South EastEtame North Tchibala (SEENT) platform wasalready scheduled to replace the ESP on that wellin a preemptive workover upon completion ofthe South East Etame 4H well. The workover onthe South East Etame 2H well is currentlyunderway and the well is expected to be returnedto production around the end of March. The wellwas producing 2,400 gross bopd, or 650 bopdNRI to VAALCO, when the ESP failed. VAALCOwill not perform any additional workovers withthe contracted drilling rig and the rig will bereleased after completion of operations on theSouth East Etame 2H well.

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Tullow Terminates Maersk VenturerDrilling Contract for Ghana ProgramMaersk Drilling announced that it received noticefrom Tullow Oil that it would be terminating itscontract for services related to its drilling programoffshore Ghana which was to utilize the MaerskVenturer drillship.

Since February 2018, Maersk Venturer has workedfor Tullow offshore Ghana with an expected endof contract in February 2022. The rig is nowexpected to end the contract in June 2020. As aconsequence of the termination, Maersk Drilling’srevenue contract backlog is reduced by $175million covering the period from the end of thecontract to February 2022.

Subject to commercial prospects, Maersk Drillingwill take measures to reduce Maersk Venturer’soperating costs following the end of the contract.

Petronas and ExxonSeek Exit from Chad AssetsOsaka Matsui Management analysts have reportedthat both oil giants Petronas and Exxon areworking with advisers on a proposed sale withtheir stakes in the Chad project expected to beworth more than $1 billion. The holdings includeoil fields in southern Chad and a major pipelinetransporting crude oil to a marine terminal forexportation in Cameroon.

“Malaysia’s state-owned oil giant Petronas isworking with an adviser on the potential disposalof its 35% stake in the Chad project, with Exxonworking with another adviser to sell their 40%stake as well,” reported Michael Carter, Head ofGlobal Equities at Osaka Matsui Management.“The combined holdings of both oilcompanies could be worth over $1 billion,” addedMichael Carter.

“A deal could come due to Petronas shifting itsfocus on Americas to beef up reserves andmaintain production rates which Chief ExecutiveOfficer Wan Zulkiflee Wan Ariffin advised in aninterview last year,” commented Osaka Matsui

Management’s Alistair Richmond, Director ofCorporate Trading.

“At present, sale deliberations are still preliminary,and the recent drop in oil prices could addvolatility to any agreement made, so in themeantime, Petronas will continue to operate inChad,” further commented Alistair Richmond ofOsaka Matsui Management.

Equatorial Guinea Grants Reliefto Oil & Gas Services CompaniesThe Ministry of Mines and Hydrocarbons (MMH)of the Republic of Equatorial Guinea decided onthe waiving of its fees for services companies inthe country. This is the first action to be taken tosupport oil and gas services companies inEquatorial Guinea in the wake of the oil pricedrop caused by the coronavirus pandemic. Oilprices currently remain at around $20 a barrel,their lowest level since 1991.

“The Ministry of Mines and Hydrocarbons tookthe unanimous decision to waive its fees forservices companies for a duration of threemonths,” declared H.E. Gabriel Mbaga ObiangLima, Minister of Mines and Hydrocarbons. “Werecognize that the oil sector continues to be thelargest private sector employer in the country andwant to give our local services companies themeans to weather the storm and avoid any jobsbeing lost. While it is important to let marketforces determine the future, the government doeshave a role to play in stimulating the market andcreating an environment for these companies tostay strong, continue investing and createopportunities for our citizens,” he added.

Jobs security and the safety of Equatorial Guinea’scitizens have been put at the top of priorities forthe MMH, which has further pledged to keepengaging with local and international companiesto create the right kind of enabling environmentfor the sector to operate and grow despite currentcircumstances.

International operators will need to keepcomplying with local content requirements inEquatorial Guinea throughout the downturn, andmake sure to work with the local services industryto adapt to new market dynamics. This is the firstsuch measure to be taken in Equatorial Guinea,which will consider additional action to bringrelief to its oil and gas sector.

Tower Declares ForceMajeure on Thali PSCTower Resources reported that its petroleumoperations in Cameroon have already beenaffected by consequences of the COVID-19

pandemic, including international travelrestrictions, and the Republic of Cameroonintroduced its own travel restrictions onMarch 17. Service providers are thereforetemporarily limited in what they can do locally,as is Tower itself. As a result, Tower notified theMinistry of Mines, Industry and TechnologicalDevelopment (MINMIDT) of an event of forcemajeure under the terms of the PSC. During aperiod of force majeure the parties’ obligationsunder the agreement are temporarily suspended,so that the same period of about seven monthsremaining under the current exploration periodas of March 17 should still remain once the forcemajeure period ends, without any further extensionbeing requested.

The company has informed MINMIDT that atthis stage it is still possible that NJOM-3 couldbe spudded prior to September 15, 2020 despitethe force majeure, if the situation returns to normalquickly enough, but this is now inherentlyuncertain. In any event the company remainscommitted to drilling NJOM-3 as quicklyas possible.

BW Energy Cuts BackGabon Ops in Response to PandemicBW Energy Limited announced adjustments tothe development program on the operated DussafuMarin license in Gabon in response to the spreadof the COVID-19 outbreak and restrictions oninternational travel. The deferral of investmentsalso reflects increased market volatility and oilprice uncertainty. Production activities in Gabonremain uninterrupted as BW Energy complieswith public health advisory at all its locations toensure safe operations and contribute to stoppingthe spread of COVID-19.

The company said the impact of internationaltravel restrictions is limiting its ability to moveessential personnel, subcontractors and equipmentto and from Gabon. This may affect the timingof the drilling of the planned DTM-7H well andthe subsequent exploration well. The majorcontracts provide for certain termination rightsunder the current circumstances. BW has, for thesame reason, decided to not exercise the optionsfor the two additional exploration wells underthe existing rig contract.

Further, in response to recent commodity pricevolatility, BW Energy has decided to defer theRuche Phase 1 development. The revised capitalspending program for 2020 amounts toapproximately $125 million, of which about$30 million was incurred as of the end of February.The revised program represents a 50% reductionto the company’s previously announced capital

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expenditure program of approximately $250million for 2020.

Dussafu daily operations continue to perform inline with expectations with four wells (DTM-2H,DTM-3H, DTM-4H and DTM-5H) producing tothe FPSO BW Adolo at a current rate ofapproximately 20,000 daily barrels of oilproduction (gross). The DTM-6H well is nearingconclusion of its drilling and completionoperations. This well is scheduled to be broughtonline by June. Total Dussafu production for2020 is projected to be 16,000 – 18,500 bpd(gross) based on five producing wells, comparedto 11,800 bpd on average in 2019, while OPEXper barrel is expected to decrease to approximately$15 – $17 per barrel, compared to $21 per barrelon average for 2019.

Global Petroleum and NAMCORAgree to License 3D Seismic DataGlobal Petroleum has announced that it has cometo an agreement to license pre-existing 3D seismic

data in its offshore Namibia Block,2011A (PEL0094). This key data,acquired by previous licensees in 2010,covers the company’s WelwitschiaDeep prospect and Marula lead, andwill enable precise mapping of thesefeatures. Once this is complete, Globalwill update prospective resources andchances of success for WelwitschiaDeep and Marula.

In consideration for the right to license this dataGlobal has agreed to transfer to NationalPetroleum Corporation of Namibia (NAMCOR)a 7 percent participating interest in PEL0094.NAMCOR holds an existing 10 percent carriedinterest as required by the Namibian Government,and its total interest in PEL0094 will thereforebe 17 percent, carried to first production.Aloe Investments, a private Namibian companyholds a 5 percent interest, carried throughexploration. Global will therefore hold a workinginterest of 78 percent and will remain operatorof the license.

The 3D seismic survey covers an area of 1,583sq kms and being only 10 years old is consideredto be of relatively modern vintage. The vastmajority of the survey is in PEL0094 (Block2011A), with the remainder in Block 1911 to thenorth. Details of the Prospective Resources forWelwitschia Deep and Marula were set out in anannouncement by the company in November2019. The 2014 Welwitschia-1A well, which wasdrilled by previous licensees, was abandonedbefore reaching the underlying Welwitschia Deepprospect and was drilled to the west of the Marulalead, located in the Upper Cretaceous – theprimary target of Welwitschia-1A.

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DOWNSTREAM NEWS

Cooper Begins SecondCommissioning Phase on OrbostCooper Energy provided an update on the statusof the Sole Gas Project, announcing that secondphase commissioning of the Orbost GasProcessing Plant is underway. The plant operatedby APA Group (APA) has demonstrated itscapability to produce sales gas to specificationfrom the Sole gas field and has commenced gassupply into the Eastern Gas Pipeline (EGP).

As foreshadowed in the previous update, initialvolumes delivered to the EGP were small, variableand influenced by commissioning requirements.Sales to market on March 29 were 21 TJ, withproduction rates of up to 50 TJ/d.

It is likely production rates will continue to bevariable as commissioning proceeds to the plantproduction test which requires a sustained rateof 68 TJ/day. Commencement of firm gas supplyfrom the Sole gas field to term gas salesagreements will commence after the completionof the plant production test.

Algeria Completes 185-km PipelineSonatrach announced that the companysuccessfully completed, in partnership with Eni,the construction of the gas pipeline which linksthe sites of Bir Rebaa Nord (BRN) and MenzelLedjmet Est (MLE) in the Berkine Basin, in thesouthern part of Algeria, 320 km from HassiMessaoud, Wilaya of Ouargla. The 185-km long,16-inch diameter gas pipeline has the capacity totransport 7 million standard cubic meters ofgas per day.

The project will allow the export of theassociated gas and the development of the gasfields of the “North Berkine” blocks, where thedrilling and connections of the first four (4) wellshave been completed, only one year from theentry into force.

In addition, the production from the oil fields ofthese same blocks started in May 2019 whilecontinuing development during the current year.The Berkine Nord gas project will provide dailyproduction of 6.5 million cubic meters of gasand 10 thousand barrels of associated liquids.With the development of the oil, total productionwill reach 65 thousand boe per day during theyear 2020.

LyondellBasell to Slow Constructionon PO/TBA Project in USALyondellBasell has informed the engineeringand construction contractors it will slowconstruction of its world-scale propylene oxide(PO) and tertiary butyl alcohol (TBA) plant. Thecompany is limiting non-essential activitiesat this time due to ongoing concerns relatedto the COVID-19 pandemic, includinggovernment orders designed to l imithuman contact.

“The COVID-19 pandemic is unprecedented andevolving. Because the PO/TBA site is currentlyunder construction and not producing neededproducts yet, in the interest of health andsafety we believe it is prudent to limit constructionactivities at this time,” said Torkel Rhenman,executive vice president, Intermediates &Derivatives (I&D).

LyondellBasell’s PO/TBA project broke groundin August 2018. Currently, the project is morethan 30 percent complete with ongoinginstallation of key equipment and towers. ThePO/TBA project has a split-facility design tooptimize synergies between two existingLyondellBasell sites. A 140-acre PO/TBA plantis being built at the company’s Channelview,Texas facility, and an associated 34-acreethers unit is being built at the company’s BayportComplex in Pasadena, Texas. When complete,the PO/TBA plant will produce approximately 1billion pounds (470,000 metric tons) of PO and2.2 billion pounds (1 million metric tons) ofTBA annually, which will serve the growingneed for better insulation material, homecomfort, cleaner fuels and other consumerapplications.

Equatorial Guinea ShortlistsCompanies for Key Energy ProjectsThe Board of Directors of the Ministry of Minesand Hydrocarbons (MMH) of Equatorial Guineahas selected and revealed the key companiesshortlisted for the execution of its landmarkprojects under its ongoing Year of Investment.The decision was adopted during a meeting onMarch 19, 2020.

At Punta Europa, where most of EquatorialGuinea’s gas and energy activities are currentlylocated, the country is building a modular refinery,storage tanks and a methanol-to-derivativesplant. Interested companies for the modularrefinery include American oil companyMarathon Oil, a Spanish-Russian consortium ofSelquimica International with Engineering andEnergy, and British company RosslynEnergy. The latter is also interested in thedevelopment of the Storage Tanks, alongwith British company Orange ResourcesWorldwide and the China CommunicationsConstruction Company.

Finally, the Methanol-to-Derivatives project hasattracted the interest of South African companyPan African Energy, Nigerian company BugabiGroup, and Danish catalysis companyHaldorTopsoe.

At Kogo, south of the nation’s economic capitalBata, the second Modular Refinery project hasattracted the interest of Egyptian companyPetrojet, British company Rosslyn Energy, theSpanish-Russian consortium of SelquimicaInternational with Engineering and Energy, andUAE-based SDLE International DMCC.Meanwhile, South African company GrindstoneResources and Omani company MSS LLC areboth shortlisted for the gold refinery project andthe Minerals Industrial Zone.

While the MMH is still registering interest fromadditional players, including Chinese companies,these are the shortlisted potential investors forthese projects so far.

Zawiya Refinery FireCaused by Technical ErrorLibya’s National Oil Corporation (NOC) confirmsthat workers in Zawiya Refinery were successfulin controlling a fire that was caused by a technicalerror in the asphalt tank. Health and safetymeasures were followed and no one was harmedas a result of the accident. The fire was quicklyextinguished.

Early investigations confirmed that the fire wascaused by a technical error and the NOCboard has ordered a full investigation ofthe incident.

Egypt Cuts Fuel PricesFaced with lower demand and falling oil prices,Egypt’s Ministry of Petroleum made the decisionto cut the price of fuel in April to assist consumersduring this time of lower productivity as a resultof the COVID outbreak.

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In a statement released by the Ministry, the newprices were set at the equivalent of USD 0.48 perliter for 92 octane gasoline, down from USD 0.49per liter, while the 80 octane gas price was reducedfrom USD 0.41 to USD 0.40 per liter, and 95octane gas price was reduced from USD 0.55 toUSD 0.54 per liter.

Shell Exits ProposedLake Charles LNG ProjectGiven current market conditions, Shell hasannounced it will not proceed with an equityinterest in the proposed Lake Charles LNGproject. Accordingly, Energy Transfer will takeover as the project developer. Shell willcontinue to support Energy Transfer with theongoing bidding process for the engineering,procurement, and construction contract andthen plan a phased handover of the project’sremaining activities.

“This decision is consistent with the initiativeswe announced ... to preserve cash and reinforcethe resilience of our business,” said MaartenWetselaar, Director, Integrated Gas and NewEnergies, Shell. “Whilst we continue to believein the long-term viability and advantages of theproject, the time is not right for Shell to invest.Through the transition, we will work closely withEnergy Transfer.”

Lake Charles LNG is a proposed 50/50 projectbetween Shell and Energy Transfer that seeks toconvert Energy Transfer’s existing import terminalto an LNG export facility in Lake Charles,Louisiana. The project has a proposedliquefaction capacity of 16.45 mtpa for US naturalgas export to global customers. In addition to itsbrownfield advantages and permits, the projecthas an existing pipeline infrastructure. Shellentered the project in its 2016 combination withBG Group.

This permit-ready project would add 240 acresto Lake Charles LNG’s overall footprint (seeproposed expansion above) which will allowfor the development of a liquefaction andexport facility.

Total to Divest Sierra Leone and LiberiaMarketing & Services InterestsIn line with its strategy of actively managing itsasset portfolio and its objective to divest $5 billionduring the years 2019-2020, Total is pursuing thedivestments of several non-core assets in bothMarketing & Services (Sierra Leone and Liberia)and Exploration-Production (Brunei). Thesedivestments represent a global value of more than$400 million.

Total has signed an agreement to sell its marketingand services businesses in Liberia and SierraLeone to Conex Oil & Gas Holdings, a regionalplayer in petroleum products import, distributionand supply chain management in West Africa. Itconsists of a network of 63 service stations,general trade fuel sales and petroleum productsimport and storage operations. The sale of thesetwo affiliates is expected to be completed in thesecond quarter of 2020.

“These sales will contribute to Total’s ongoingdivestment program and demonstrate ourability to relentlessly high-grade our portfolio”commented Jean-Pierre Sbraire, ChiefFinancial Officer of Total. “In the currentcontext of low oil prices, these transactionssupport the action plan announced to weatherthe crisis.”

INEOS to Postpone ShuttingDown of Forties Pipeline SystemINEOS FPS has responded to further requestsfrom customers and delayed its planned shutdownof the Forties Pipeline System (which wasoriginally planned for June 2020)

The decision has been taken in the face of theongoing Government restrictions due to theCoronavirus pandemic and in the interests ofproviding clarity to its customers and the UK Oiland Gas Industry. INEOS will continue to workwith customers and all relevant parties to preparefor the shutdown in 2021.

Libya Discovers Illegal Fuel ImportsAccording to Libya’s National Oil Corp. (NOC),on March 16 the Gulf Petroleum 4 tankercompleted unloading of a cargo of aviation fuelat Benghazi port, where it had arrived on adirect journey from Sharjah in the UAE. UnderLibyan law, all importation of fuel must be carriedout by NOC. This shipment was not authorizedby NOC and was therefore illegal. “Theauthorities in the East of Libya have tried tojustify the shipment by claiming untruthfully thatNOC discriminates against people in the East bylimiting the supply of fuel,” NOC stated.

NOC has not limited supplies to the East, as datapublished by NOC each week in its PublicInformation Bulletins show. Every drop ofgasoline or diesel that citizens in Benghazi, Sebha,Tobruk, Ubari, Misrata or Khoms use is ultimatelysupplied by NOC, either from its refineries, whenthey are permitted to operate, or purchased byNOC on the international market. Fuel is suppliedas equitably as possible because NOC does notdiscriminate between Libyans.

NOC Chairman Sanalla said, “The narrativeclaiming that certain parts of Libya are notreceiving enough fuel is false and threatens theunity and integrity of the state of Libya. TheEastern authorities used exactly this false narrativeto justify the split of Brega PetroleumMarketing Co’s administrations for the Easternand Central regions from the legitimate BPMCin September last year. My fear is that in thecontest between foreign powers we now see,Libya will be extinguished or divided as a nation,”he concluded.

Exxon May Delay Mozambique LNG FIDThe much anticipated $30 billion MozambiqueLNG development may be put on hold if one ofthe project partners has its way. According toReuters reporting, six of its sources say thatExxonMobil is likely to delay the final investmentdecision on the Mozambican LNG project.

The news comes during an oil production standoffbetween Russia and Saudi Arabia, and the globalCorona Virus pandemic that are having adetrimental impact on oil prices that at times havedipped below the $30 per barrel mark.

BPMC Discusses Possibilityof Supplying Fuels to Southern LibyaImad Ben Koura, chairman of the Brega PetroleumMarketing Company (BPMC), a National OilCorporation (NOC) subsidiary, met a number ofmayors from Southern Libyan municipalities.

They discussed how to deliver fuels to thesouthern cities and help people access fuels atthe official prices.

Since the beginning of the fuel crisis in SouthernLibya, from mid-2017, the Brega Oil MarketingCompany, with NOC, made arrangements forsecurity in coordination with various militarygroups. This was in the areas around the storagetanks in Misurata and up to the storage facilitiesin Sebha and the various stations in the southerncities. In 2018 convoys of trucks, loaded withmillions of liters of fuel, travelled on a regularbasis to help serve citizens in the southern region.

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But after the conflict around Tripoli began lastApril, the roads were cut off for trucks and therewas no longer any security coordination betweenthese military groups, which is the main reasonfor the interruption of supplies.

“We understand the discontent of citizens livingin the southern regions. We also condemn theexploitation of these conditions by some

individuals to sell fuels at high prices. These areillegal and immoral acts. We are constantly strivingto reach innovative solutions to these problems,”Ben Koura said.

Mr Koura confirmed the availability of fuels inBPMC storage tanks and the company’s fullreadiness to deliver fuels to the Sebha storagetanks and then to fuel stations, provided there is

a minimum level of security, to ensure the safetyof drivers. He added that BPMC’s managementrelies on cooperation with mayors of the southernmunicipalities and others to provide appropriatesecurity conditions. BPMC counts on theunderstanding of local citizens in the southregarding the real causes behind the lack offuels and people’s constructive cooperation toaddress them.

Global pipeline solutions provider T.D.Williamson (TDW) introduced the ProStopp™DS isolation tool, the first double block and bleedtechnology for the gas distribution market. It iscurrently available for 6-inch to 12-inchpressurized carbon steel pipelines.

The ProStopp DS isolation tool achieves a doubleblock and bleed isolation utilizing two pluggingheads with a bleed port in between. This allowsproduct to bleed through the housing so there isless hardware on the line.

The new technology will help operators keeptheir promise to safely deliver energy acrossthe globe. “Gas distribution is critical to everydaylife and shutdown is never an option,” Ryan

Ragsdale, senior product manager, hot tappingand plugging technology said. “The ProStoppDS solution is a reliable way to ensure a safework zone during pipeline repair andmodification, without interrupting service todownstream customers.”

ProStopp DS isolation technology features ahydraulically activated energized seal thatconforms flawlessly to multiple internal pipediameters. The variable design increases thelikelihood of first-time sealing success andeliminates leaks in even tough crevices andweld seams.

According to Ragsdale, the ProStopp DS isolationtool draws on the company’s decades of isolation

expertise and offers operators a number of cost- and time-saving advantages.

“Because the energized seal accommodatesmultiple inner diameters, it takes the guessworkout of tool configuration while drastically reducinginventory needs,” Ragsdale said. “The built-inchip sweep helps ensure a leak-proof seal whilealso reducing operation requirements. And becausethe tool is ground-operated, the technician makesfewer trips up and down the ladder, completingjobs faster and with less risk.”

The ProStopp isolation tool is designed fromschedule 10-60 pipe and is rated to 19 bar(285 psi). It is compatible with TDW valvesand fittings.

TDW Introduces Gas Distribution Market’s First Double Block and Bleed Solution



POWER & ALTERNATIVES

Angola and Namibia Agreeto Cross-Border Hydroelectric DamAccording to Angolan Minister of Energy andWater H.E. João Baptista Borges, the governmentsof Angola and Namibia have signed bilateralagreements for the construction of the cross-border Baynes hydroelectric dam.

The Minister said the agreement will enable thelaunch of a public tender for the selection of aconstruction firm for the project, in line with theproposed timeline.

Located on the Cunene River on the borderbetween Angola and Namibia, the 600-MW damis planned for construction in 2021, with anestimated cost of $1.2 billion and a completiondate scheduled for 2025.

“If we stick to the schedule of the agreement, wecan comply with the deadlines, because there isa great interest in this bi-national project,” saidthe Minister.

Of the 600 MW to be produced by the plant, 300MW will be directed to Angola and Namibia,respectively. The terms of this agreement wereapproved by the governments of both countriesin November 2014, within the framework of afeasibility study completed in 2013.

The construction of the Baynes hydroelectric damfalls within Angola’s Energy 2025 Vision, whichcenters on creating increased capacity anddistribution capabilities, supported by newrenewables and private sector investment in newpower generation projects.

IFC to Lead Financing forCôte d’Ivoire’s Atinkou Power PlantIFC announced the signing of a EUR 303 millionfinancing package for a new gas fired powerproject in Côte d’Ivoire. The new plant – calledAtinkou – will boost power generation and supplyin the country at a total cost of approximatelyEUR 404 million.

The Project consists of a 20-year concession todevelop and operate a 390-MW natural gas-fired

power plant located about 40 kilometers west ofAbidjan. By using highly efficient combined-cycle turbine technology, the plant willsubstantially contribute to reducing Côte d’Ivoire’sgeneration costs and GHG emissions, in part,through the displacement of older generationunits. The sponsor of the project is the EranoveGroup, a leading industrial group that managesa number of water and electricity assets in Westand Central Africa. Eranove also owns andoperates the 544 MW CIPREL project, the largestpower plant in Côte d’Ivoire.

UNDP Kicks Off HealthCenter Solar Projects in LiberiaSinje Health Center in Grand Cape Mount Countyhas received the largest solar power facility underthe UNDP Liberia Solar for Health Project. At atechnical handover of the 3-kW power gridsystem, the health facility received 154 panels-(275 watts each) and 54 batteries with a capacityof 3,000 watts each.

The aim is to help the government find innovativeways of cutting down on fuel consumption andreducing carbon emissions, as Liberia struggleswith climate change issues.

The UNDP-funded solar project will coverlaboratories, operation theaters and maternal andchild health centers within 12 health facilities inseven counties across the country. The countiesof Bong, Grand Cape Mount, Gbarpolu, Lofa,Bomi. Grand Bassa and Montserrado are included.Each health center will receive different levelsof solar power capacity. Training of relevant staffalso forms part of the package.

The solar power project is being managed byLiberian owned company Eco-Power. The systemscan be monitored from anywhere in Liberia. Aspart of the arrangement, ECO-Power will maintainthe system for one-year.

Three New SolarFacilities for Guinea BissauChinese conglomerate Sinohydro has beenawarded the engineering, procurement andconstruction (EPC) contract to build the Gardete

solar power plant in Guinea Bissau. The solarfacility will have a capacity of 20 MWp.

Two additional small hybrid solar power plantsare also to be built using solar and diesel. Thefirst will be built in Canchungo in the west of thecountry and will have a capacity of 1 MW. Thisfacility will also be equipped with batteries forthe storage of electricity. The electricity will beevacuated through a medium and low voltagetransmission line that Sinohydro will also install.

The second small hybrid solar power plant willbe built in the Gabu region of eastern GuineaBissau. This facility will also be equippedwith a battery storage system and backup dieselgenerators and will be capable of producing1 MW. The hybrid solar power plant willsupply local populations via a medium and lowvoltage line.

These three projects are being developed at a costof $42.9 million by the government of Guinea-Bissau with a loan from the West AfricanDevelopment Bank (BOAD). This funding wasgranted in 2017 and the call for expressions ofinterest was launched in March 2019 by AfricanBiofuel and Renewable Energy Co.

Floating PV for SeychellesWork on a 5.8 MW floating photovoltaic solarplant in Seychelles will get underway in July ofthis year, according to a statement by Frenchcompany Qair (formerly Lucia Holdings). Theplant, on completion, will be the world’s largest.

Located on the lagoon of Providence (Mahé), theproject will be the first project led by anIndependent Power Producer (IPP) in Seychellesand the first power plant floating in the Africancontinent. The plant will cover 40,000 squaremeters of water, will be made up of around 13,500photovoltaic modules and will represent 2% ofSeychelles’ national production. For 25 years,the installation will contribute to a reduction inCO2 emissions of around 157,000 tonnes.

The work will be mainly carried out bySeychellois companies and should take six monthsto complete.

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Total Expands RenewableEnergy Position with AcquisitionTotal, through Total Quadran - its 100% renewabledeveloper and producer in France, acquires 100%of Global Wind Power (GWP) France, a companywith a 1,000-MW portfolio of onshore windprojects, including 250 MW scheduled to comeon stream by 2025.

“Following Vents d’Oc’ acquisition in 2019, thisnew investment demonstrates Total’s commitmentto expand in all types of renewable energy whilecontributing to France’s energy transition goals.It strengthens Total Quadran’s footprint addingto its existing portfolio of nearly 1,000 MW ofinstalled and operated capacity, including over500 MW of onshore wind and confirms itsambition to be one of the main players on France’srenewables market,” said Philippe Sauquet,President Gas, Renewables and Power at Total.

GWP’s teams will join Total Quadran, adding tothe Group’s existing expertise in order to speedup the wind power development in France.

Ncondezi puts MozambiqueSolar and Storage Project On-HoldNcondezi Energy Ltd., in an Apr 9 statementannounced that it has put on hold its solar-plus-storage project for a commercial and industrialclient in Mozambique due to the coronaviruspandemic. The company also reported on its300 MW power project.

Ncondezi said that the project off-taker has issueda force majeure notice because of the inability toprovide site access for construction at this time.On an optimistic note, the statement did say thatthe Q2 2020 target commissioning timeframe isstill achievable should restrictions ease in May2020 as per current Government guidance.

CEO Hanno Pengilly stated that as long as theforce majeure notice is in place, Ncondezi Energywill not undertake further construction costs."The company is working closely with all partiesinvolved in the project. All major equipment isin secure storage facilities ready for futuredeployment when the restrictions are lifted,”he said.

“Separately, the work program for the company’s300-MW Ncondezi Project remains on track anda more detailed update on key milestones for2020 is expected to be released this month,” theCEO added.

Drilling Begins on Ethiopia’sTulu Moye Geothermal ProjectOn March 4, the commencement of explorationdrilling was seen on the Tulu Moye GeothermalProject where three exploration wells will bedrilled in the project area located in the OromiaRegion, Ethiopia.

This long-awaited milestone was spearheaded bythe independent energy company Tulu Moye

Geothermal Operations (TMGO), a shareholdingcompany of the investment firm Meridiam SASbased in Paris, and Reykjavík Geothermal.

The drilling marks the start of the developmentof a 150 MW geothermal power plant with ananticipated total investment of $800 million. Thefirst phase is projected to be complete by 2023with a 50 MW plant, then reaching 150 MWthrough the second project phase with an expectedcompletion by 2025. Ultimately, the project willgenerate 150 MW towards the baseload electricityneeds of the Ethiopian Electricity Grid.

The electricity that will be sold to EthiopianElectric Power (EEP) will integrate the electricitynetwork via a 230 kV substation and a 230 kVtransmission line that will leave from Koka toWakena. The Tulu Moye geothermal project isfunded by TMGO. The company has receivedsupport from the United States Agency for Tradeand Development (USTDA).

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THE PANDEMIC IS NO TIME FOR FISCAL DISTANCING

hese are very difficult days, as the world faces one of its worstchallenges ever: the novel coronavirus pandemic. And it seemsalmost no nation is spared. As infection rates rise, so does

panic across financial markets, as economies drastically slow downand supply chains are severely disrupted.

Extraordinary times call for extraordinary measures. As such, it canno longer be business as usual.

Each day, the situation evolves and requires constant reviews ofprecautionary measures and strategies. In the midst of all this, we mustall worry about the ability of every nation to respond to this crisis. Andwe must ensure that developing nations are prepared to navigate theseuncharted waters fully.

That’s why I support the UN Secretary-General Antonio Guterres’urgent call for special resources for the world’s developing countries.In the face of this pandemic, we must put lives above resources andhealth above debt. Why? Because developing economies are the mostvulnerable at this time. Our remedies must go beyond simply lendingmore. We must go the extra mile and provide countries with much-needed and urgent financial relief – and that includes developingcountries under sanctions.

According to the independent, global think tank ODI in its report onthe impact of economic sanctions, for decades, sanctions have decimatedinvestments in public health care systems in quite a number of countries.

Today, the already stretched systems as noted in the 2019 Global HealthSecurity Index will find it difficult to face up to a clear and presentdanger that now threatens our collective existence.

Only those that are alive can pay back debts.

Sanctions work against economies but not against the virus. If countriesthat are under sanctions are unable to respond and provide critical carefor their citizens or protect them, then the virus will soon “sanction”the world.

In my Yoruba language, there is a saying. “Be careful when you throwstones in the open market. It may hit a member of your family.”

That’s why I also strongly support the call by the UN Secretary-Generalthat debts of low-income countries be suspended in these fast-movingand uncertain times.

But I call for even bolder actions, and there are several reasons fordoing so.

First, the economies of developing countries, despite years of greatprogress, remain extremely fragile and ill-equipped to deal with thispandemic. They are more likely to be buried with the heavy fiscalpressure they now face with the coronavirus.

Second, many of the countries in Africa depend on commodities forexport earnings. The collapse of oil prices has thrown African economiesinto distress. According to the AFDB’s 2020 Africa Economic Outlook,they simply are not able to meet budgets as planned under pre-coronavirusoil price benchmarks.

The impact has been immediate in the oil and gas sector, as noted ina recent CNN news analysis.

In the current environment, we can anticipate an acute shortage ofbuyers who, for understandable reasons, will reallocate resources toaddressing the COVID-19 pandemic. African countries that depend ontourism receipts as a key source of revenue are also in a straitjacket.

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LOCAL IMPACTBy Akinwumi A. Adesina, President

African Development Bank Group

The African Development Bank estimates that COVID-19 could cost Africa a GDP loss between$22.1 billion and $88.3 billion in the worst-case scenario

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By Akinwumi A. Adesina, PresidentAfrican Development Bank Group

Akinwumi A. Adesina


Third, while rich countries have resources to spare, evidenced bytrillions of dollars in fiscal stimulus, developing countries are hamperedwith bare-bones resources.

The fact is, if we do not collectively defeat the coronavirus in Africa,we will not defeat it anywhere else in the world. This is an existentialchallenge that requires all hands to be on deck. Today, more than ever,we must be our brothers’ andsisters’ keepers.

Around the world, countries atmore advanced stages in theoutbreak are announcingl i q u i d i t y r e l i e f , d e b trestructuring, forbearance onloan repayments, relaxation ofstandard regulations andinitiatives.

In the United States, packages of more than $2 trillion have alreadybeen announced, in addition to a reduction in Federal Reserve lendingrates and liquidity support to keep markets operating. In Europe, thelarger economies have announced stimulus measures in excess of 1trillion Euros. Additionally, even larger packages are expected.

As developed countries put in place programs to compensate workersfor lost wages for staying at home for social distancing reasons, anotherproblem has emerged – fiscal distancing.

Think for a moment what this means for Africa.

The African Development Bank estimates that COVID-19 could costAfrica a GDP loss between $22.1 billion, in the base case scenario,and $88.3 billion in the worst-case scenario. This is equivalent to aprojected GDP growth contraction of between 0.7 and 2.8 percentagepoints in 2020. It is even likely that Africa might fall into recessionthis year if the current situation persists.

The COVID-19 shock will further squeeze fiscal space in the continentas deficits are estimated to widen by 3.5 to 4.9 percentage points,increasing Africa’s financing gap by an additional $110 to $154 billionin 2020.

Our estimates indicate that Africa’s total public debt could increase,under the base case scenario, from $1.86 trillion at the end of 2019 toover $2 trillion in 2020, compared to $1.9 trillion projected in a

‘no pandemic’ scenario. According to a March 2020 Bank report, thesefigures could reach $2.1 trillion in 2020 under the worst-case scenario.

This, therefore, is a time for bold actions. We should temporarily deferthe debt owed to multilateral development banks and internationalfinancial institutions. This can be done by re-profiling loans to createfiscal space for countries to deal with this crisis.

That means that loan principalsdue to international financialinstitutions in 2020 could bedeferred. I am calling fortemporary forbearance, notforgiveness. What’s good forbilateral and commercial debtmust be good for multilateraldebt.

That way, we will avoid moral hazards, and rating agencies will beless inclined to penalize any institution on the potential risk to theirPreferred Creditor Status. The focus of the world should now be onhelping everyone, as a risk to one is a risk to all.

There is no coronavirus for developed countries and a coronavirus fordeveloping and debt-stressed countries. We are all in this together.

Multilateral and bilateral financial institutions must work together withcommercial creditors in Africa, especially to defer loan payments andgive Africa the fiscal space it needs.

We stand ready to support Africa in the short term and for the longhaul. We are ready to deploy up to $50 billion over five years inprojects to help with adjustment costs that Africa will face as itdeals with the knock-on effects of COVID-19, long after the currentstorm subsides.

But more support will be needed. Let’s lift all sanctions, for now. Evenin wartime, ceasefires are called for humanitarian reasons. In suchsituations, there is a time to pause for relief materials to reachaffected populations. The novel coronavirus is a war against all of us.All lives matter.

For this reason, we must avoid fiscal distancing at this time. A stitchin time will save nine.

Social distancing is imperative now. Fiscal distancing is not.


Extraordinary timescall for

extraordinary measures


Backgroundlimate protectors have long lamented about the damage theflaring of natural gas from oil production sites around theglobe has on the environment, contributing to climate change

by releasing millions of tons of CO2 to the atmosphere. Subsequently,producing nations and oil companies alike had no choice but to takenotice and once it was realized that billions of dollars annually werebeing flared away, the effort to end flaring and monetize this naturalresource gained momentum and efforts to “clean up and monetize”began in earnest.

In 2002, the Global Gas Flaring Reduction Public-Private Partnership(GGFR) was established at the World Summit on SustainableDevelopment in 2002 in Johannesburg with the objective to assistefforts of governments and the petroleum industry to reduce ventingand flaring of associated natural gas from oil operations. Since theGGFR was formed, increasing attention has been called to the issueof gas flaring resulting in national and regional flaring reductioninitiatives being formed. It has also heightened awareness with thegeneral public and increased the pressure on oil companies andgovernments to act accordingly.

In 2004, seven of the world’s top 20 flaring nations were in Africa ledby Nigeria as the world’s largest offender. Nigeria was also the firstto make a huge commitment, calling for the complete end to gas flaringby 2008. However good intentioned, the task at hand proved to bemuch more difficult than anticipated, with oil companies called uponto foot the bill for the billions of dollars needed to make the transitionand implement new technologies, largely due to the lack of infrastructurerequired to safely monetize the resource.

Elsewhere around the globe, countries nonetheless signed up to endgas flaring and put their own goals and strategies in place. While gasflaring did not end, a significant decrease was realized over the firstdecade into the GGFR.

Efforts around the world showed progress until 2010 and then flaringbegan trending upward again, largely due to a burgeoning globalpetroleum sector with a new exploration and production boom supportedby a weighty oil barrel price. While two of the world’s biggest offenders– Nigeria and Russia – made notable progress in reducing their gasflaring emissions, the United States increased its flaring by five-fold.

The World Bank (WB) recently reported that unfortunately, for thefirst time in five years, global gas flaring has again increased. “Newly

released estimates from satellite data have shown a 3% increase in2018 to 145 billion cubic meters (bcm), which is equivalent to the totalannual gas consumption of Central and South America,” WB reported.

A New Global InitiativeWell over a decade after the GGFR was established, the “Zero RoutineFlaring by 2030” initiative was introduced by the World Bank in 2015,bringing together governments, oil companies, and developmentinstitutions who recognize the flaring situation described above isunsustainable from a resource management and environmentalperspective, and who agree to cooperate to eliminate routine flaringno later than 2030. The initiative commits endorsers to not routinelyflare gas in new oil field developments and to seek solutions to endroutine flaring at existing oil production sites as soon as possible andno later than 2030.

Currently, 32 governments, including nine from Africa (Angola,Cameroon, Egypt, Gabon, Morocco, Niger, Nigeria, and SouthSudan) have committed to the initiative, while 39 oil companies and15 development institutions are onboard. Of the oil companies, 11 ofthe commitments are from African companies representing both

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MONTHLY FOCUS

Gas Flaring Report Card Gas Flaring Report CardAt the turn-of-the-century the call to end gas flaring was loud;

so just where does the industry stand 20 years later?

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state firms like NNPC, Sonatrach and Sonangol as well as privatesector firms such as Pan Ocean Oil Corporation (Nigeria) Ltd. andSeven Energy (Nigeria). Africa also has a strong showing from thedevelopment inst i tut ion community including AfricanDevelopment Bank, East African Development Bank, ECOWASBank for Investment and Development, and the West AfricanDevelopment Bank.

The Nigerian CaseAs mentioned previously, Nigeria, the world’s largest flaring nationback in 2004, put in aggressive plans to end flaring. While Zero Flaringwas not achieved, the country did remove itself of the title of the world’sbiggest flaring offender. That said, oil companies faced increasingpressure from the government and were faced with large fines andpenalties for not complying. Shell, the country’s largest producer, saidin its defense at the time “Shell remains committed to ending thecontinuous flaring of gas in its operations in Nigeria...The joint venturehas made considerable progress in reducing flaring. Total flaringdropped by more than 50% between 2002 and 2007...This is theequivalent of taking all passenger cars in the Netherlands off the road.Regrettably, security issues that prevent access to key constructionsites - and lack of funding from our majority JV partner – are continuingto delay the gas gathering projects.”

And so the story goes with other operators in the country. Efforts andprogress were made, but zero flaring was not attainable for a varietyof reasons, including those cited by Shell. In 2017, Pat Maseli, thenan executive of the Department of Petroleum Resources revealed thatthe West African country lost over $850 million to gas flaring in2015. She said, “55 million barrels of oil equivalent was lost and 25million tons of carbon dioxide emitted.” To put the amount intoperspective, if not flared, it could have resulted in 3,500 MW ofelectricity generation and about $400 million in carbon credit value.Despite this, from 2012 to 2015, Nigeria reduced gas flaring byabout 2 bcm and is now the the 7th largest flaring petroleum producerin the world, losing its ‘Number 1’ billing.

Having failed at meeting its call for Zero Gas Flaring by 2008 in theprevious decade, in 2016 the Nigerian government set a new target of2020 to end all gas flaring in the country under the Nigeria Gas FlareCommercialization Program (NGFCP). The new target date was setfollowing a Senate panel investigation into the activities of oil and gasagencies in the country. The government was called to task by thepanel, who laid the blame at the government’s feet for an actual increasein flaring, losing ground on earlier reductions, saying that its inabilityto enforce payment of stipulated penalties on operators was the mainreason for the rise in gas flaring.

Unfortunately, now entering Q2 2020, it seems another deadline willpass without the end of flaring. Program Manager of the NGFCP,Justice Derefaka, said “We have gone back to the drawing board tocome up with a robust timeline, where we will actualize some of it.Federal Government has said it would end gas flaring by 2020, but theUnited Nations’ deadline is 2030. Not all the flare sites will go by2020. Some will go next year and the rest after.” Some of the failures

of the government to achieve this goal are largely related to fines notbeing hefty enough to deter flaring; IOCs would rather take the penaltythan invest in expensive infrastructure. Not much has changed since2007 on this front.

That said, with the global push to slow climate change, companies arebeginning to change their tune as a result of shareholder pressure andresultant corporate good citizen programs. This, combined withgovernment pressure, could spell success for the next Nigerian initiative.At the end of the day, Nigeria has made progress and as long as itcontinues to put its best foot forward, less gas will be flared and moremonetized, incremental though it may be.


The New “Zero Routine Flaring by 2030”Governments that endorse the Initiative will provide a legal,regulatory, investment, and operating environment that isconducive to upstream investments and to the developmentof viable markets for utilization of the gas and the infrastructurenecessary to deliver the gas to these markets. This will providecompanies the confidence and incentive as a basis for investingin flare elimination solutions. Governments will require, andstipulate in their new prospect offers, that field developmentplans for new oil fields incorporate sustainable utilization orconservation of the field’s associated gas without routineflaring. Furthermore, governments will make every effort toensure that routine flaring at existing oil fields ends as soonas possible, and no later than 2030.

Oil companies that endorse the Initiative will develop new oilfields they operate according to plans that incorporatesustainable utilization or conservation of the field’s associatedgas without routine flaring. Oil companies with routine flaringat existing oil fields they operate will seek to implementeconomically viable solutions to eliminate this legacy flaringas soon as possible, and no later than 2030.

Development institutions that endorse the Initiative willfacilitate cooperation and implementation and consider theuse of financial instruments and other measures, particularlyin their client countries. They will endeavor to do so also inclient countries that have not endorsed the Initiative.

Governments and oil companies that endorse the Initiativewill publicly report their flaring and progress towards theInitiative on an annual basis. They also agree to the WorldBank aggregating and reporting the same.

The parties that endorse the Initiative acknowledge that itssuccess requires all involved – governments and oil companies,with the support of development institutions – to fully cooperateand take the action described herein to eliminate routine flaringno later than 2030.

rior to the world becoming aware of the Corona Virus, theensuing pandemic, decreased demand for energy and the collapsein oil prices, Africa’s downstream future looked bright. Pipelines,

refineries, petrochemical facilities and LNG plants were all on thedrawing board or under construction. Fast forward a couple shortmonths and many of these planned projects are on hold, but for a few.

The Super ProjectThere is one facility, however, that is going forward, the mega 650,000barrel per day refinery under construction by Dangote Group. The newfacility has seen its stops and starts over the years, initially tagged tostart operations in 2016, but a change of location quashed that timeline.Once a new site was selected, 2019 was the new target however, delaysrelated to the importation of steel and other equipment pushed the dateback to 2020. And, more recently, due to a disruption caused by theCOVID-19 pandemic requiring social distancing measures andultimately less team members working on the project, the date wasmoved again. However, the Group has confirmed that the facility’sconstruction is still underway with a new projected completion dateslated for early 2021.

This integrated refinery project, under construction over 2,635 hectaresin the Lekki Free Zone in the Lagos region of Nigeria, is expected to

be Africa’s biggestoil refinery and theworld’s largestsingle-train facility.Estimated to costbetween $12 and$18 billion uponcompletion, therefinery project willalso produce Euro-V quality gasolineand diesel, as wellas jet fuel.

T h e p i p e l i n einfrastructure is thelargest anywhere inthe world, with1,100 kilometers tohandle 3 billionstandard cubic feet of gas per day (Bscf/d), according to the DangoteGroup. The refinery alone has a 400-MW power plant that will be ableto meet the total power requirement of Ibadan Distribution Company.

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DOWNSTREAM FOCUS

NIGERIA’S SUPER PROJECTLow oil prices and the COVID-19 outbreak are putting a damper ondownstream investments, but one super project is moving forward.

Minister of State Petroleum Resources, ChiefTimipriye Sylva on inspection tour of the Dangote

Refinery

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Sinopec built the world’s largest Atmospheric Towerfor the Dangote refinery

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Further, sulphur recovery andhydrogen generation facilities, andan 838-ktpa polypropylene unitwill be included. The hydrogengeneration complex will containtwo steam methane reformer(SMR) units. These will generate200,000Nm³/h of hydrogen andsteam, which will be used to producesulphur-free fuels.

Dangote is sourcing best-in-class technologies and equipment for theproject as well. DuPont Clean Technologies was awarded the contractto supply a range of advanced proprietary equipment from DuPont forthe refinery in 2017. DuPont is supplying Dangote with proprietaryequipment for STRATCO® alkylation unit, MECS® sulfuric acidregeneration (SAR) unit, MECS® DynaWave® sulfur recovery unit(SRU) tail gas scrubbing, and BELCO® EDV® fluid catalytic crackingunit (FCCU) stack scrubbing that will help Dangote meet gasoline pooloctane and emissions requirements.

Dangote will source local crude and natural gas for its projects andtoward this end in March 2019 it entered into a long-term agreementwith Chevron Nigeria Limited (CNL) for the delivery of natural gasfrom Chevron’s supply portfolio to the fertilizer plant. Dangote FertilizerLtd. will produce 3.0 million metric tonnes per annum (mmtpa) ofUrea. The fertilizer plant consists of twin trains, with each single trainhaving a capacity of 1.5 mmtpa of Urea and Ammonia, which makeseach of them the largest trains available in the world. The total capacityof the plant is 3 mmtpa and it sits on an area of 500 hectares. Followingthe completion of the central control room, the ammonia and urea bulkstorage area and the cooling tower, the company started a test run ofthe $2 billion fertilizer plant in February.

Benefitting the Local CommunityDangote says its refinery will meet 100% of the Nigerian requirementof all refined products and also have a surplus of each of these productsfor export and will create a market for around $11 billion per annum

of Nigerian crude, while decreasingthe demand for costly imported fuelproducts. The refinery is designedto process Nigerian crude with theability to also process other crudes.The project is expected togenerate 4,000 direct and 145,000indirect jobs.

Toward that end, about 200 youths from the Ibeju-Lekki communityin Lagos State have graduated from a various skills acquisitionprogram organized by Dangote Petroleum Refinery as a way oftransforming society and providing employment opportunities forthe youths.

The program was put together by Dangote Petroleum Refinery andfacilitated by the National Directorate of Employment (NDE) and theNigerian Content Development and Management Board (NCDMB).The skills acquisition program, which cut across a wide range ofvocational skills such as plumbing, welding, iron bending, automechanics and electrical works, marked the successful completion ofthe first batch of trainees.

Speaking at the graduation ceremony, Dangote Group ExecutiveDirector, Strategy, Capital Projects and Portfolio Development,Devakumar Edwin said the initiative was a demonstration of DangoteRefinery’s commitment toward capacity-building and youthempowerment in the country and was aimed at making youth from itshost communities employable.

He said the 200 youths from Ibeju-Lekki community in Lagos Stategraduated from various skills acquisition programs put together byDangote Petroleum Refinery as a way of transforming society andproviding employment opportunities for the youths.

According to Edwin, as the petroleum refining and fertilizer complexcomes on stream, it is expected there will be a population boom in thesurrounding communities, which will require the services and skillsof the trainees.

Following the completion of the centralcontrol room, the ammonia and urea bulk

storage area and the cooling tower, thecompany started a test run of the $2 billion

fertilizer plant in February.

Miss Bakare Fatmoh Oluwadamilare (right) receivescongratulations on her completion of the training program

Lekki Free Zone and Dangote executives inspecting the trainee projects

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n November 7, 2018 at the Africa Oil Week in Cape Town,the erstwhile Gabonese Minister of Petroleum andHydrocarbons, Pascal Houagni Ambourouet, declared the

opening of the Republic of Gabon’s 12th Licensing Round. With crudereserves of over 2 billion barrels, this small Central African countryof 1.8 million people nestled next to the Gulf of Guinea is one of thefive largest oil producers in sub-Saharan Africa. Despite being a matureproducer which has gradually seen its production fall to a current rateof 200,000 barrels per day, this newly-reinstated OPEC member stillexported more than 4.2 billion USD worth of oil in 2018, whichaccounted for 80% of its total exports and almost 30% of its GrossDomestic Product, and has experienced an increase of 13% of its crudeoil production in 2019 to a total of 10.901 million tonnes.

The 12th Licensing Round has made available a total of 35 explorationblocks, divided between 12 shallow water blocks and 23 deep andultradeep blocks. The smallest block, A3, has 695 square meters ofacreage on offer, while the largest block, BC8, offers 4,066 squaremeters worth of acreage. The end date of the Licensing Round hasbeen postponed several times since April 2019 for various reasons. Animportant motive was the time needed for Gabon to adopt a moreinvestor-friendly legal framework to encourage bids. The latest deadlineof April 30, 2020 has been deferred to a later date, yet to be determined,due to the COVID-19 pandemic, even though Gabon has until nowbeen spared a high number of cases and fatalities compared to manyother countries in the sub-region due to an early closing of its bordersand the implementation of a State of Emergency.

In July 2019, Gabon published a new Hydrocarbons Law regulatingits petroleum sector, which has been seen as the Gabonese State’sanswer to the criticism made by international oil companies operatingor interested in operating in Gabon about the previous HydrocarbonsLaw which was only adopted four years ago, in August 2014. Operatorshad complained that the 2014 Law was rigid, fiscally-constrained andaltogether unattractive to investors,during a time of dropping oilprices and competition from otherneighbors in the region. Theyparticularly raised as an impedimentto investment the minimumthreshold for fiscal terms. Theprevious Law set forth a corporatetax rate of 35% in addition to the

State’s share of profit oil, and high rates of carried interest for the Statewith an additional stake allotted to the national operator, Gabon OilCompany. Coupled with the global oil crisis, the adoption of the 2014Hydrocarbons Law led to an aborted 11th Licensing Round.

The State did not waste any time and declared its intention to amendthe 2014 Law, which started with a seminar held in Gabon’s capitalcity Libreville in March 2018, gathering State representatives, delegationsof international organizations and foreign governments, outsideconsultants, members of the oil industry and civil society. After morethan two years of discussion, the State finally adopted the newHydrocarbons Law on July 16, 2019.

The changes brought by the 2019 Hydrocarbons Law have been laudedby investors, who have especially appreciated its adaptability to thecurrent economic conjuncture as well as its flexibility in order to attractinvestors. The fiscal and financial terms have been deemed to be mostencouraging. For one, no Corporate Income Tax needs to be paid inaddition to the State’s profit share. The exemptions on Value AddedTax and taxes on capital / investment income which were introducedby the 2014 Law have been maintained. Cost oil recovery limitsconcerning liquid hydrocarbons have been increased from 65% to 70%for conventional blocks and 70% to 75% for deep water blocks. In thecase of gas, the same limits were increased to 80% and 90% respectively.In addition, a possibility to allow a higher rate in exceptional cases hasbeen introduced. The State’s minimum profit share has been decreasedfrom 55% to 45% for conventional blocks, and from 50% to 40% fordeep and ultradeep water blocks. The minimum shares for gas are 25%in conventional areas and 20% in deep and ultradeep. The royalty rateshave also dropped from 13% to 7% for shallow acreage and from 9%to 5% for deep water blocks, although annual surface royalties haveslightly increased in the exploration phase from 50 to 100 CFA francsper hectare. Special lower rates have been foreseen for gas explorationand development.

Not only that, the new Law hasincreased the total duration ofexploration and production licenses,with special rules for deep orultradeep offshore areas. Appraisaltimeframes for discoveries havebeen specified in the new Law toavoid the “parking” of blocks by

O

By Catarina Távora and Archa DuttaMiranda &Associados

Afr i can Focus

A NEW ERA OF OPPORTUNITYIN GABON’S PETROLEUM SECTOR

The end date of the Licensing Round has beenpostponed several times since April 2019 for variousreasons. An important motive was the time neededfor Gabon to adopt a more investor-friendly legal

framework to encourage bids.


operators. Special provisions on marginal discoveries, marginal fieldsand mature fields as well as non-associated gas have been included.

Provisions on local content and onprotection of the environment,especially during site rehabilitation,take a key place in the new Lawand have not just been added as anafterthought. Yet, local contentobligations in terms of hiring andtraining of nationals, preference forlocal goods and services, supportto welfare projects and transfer oftechnology and knowledge toGabonese citizens and theircompanies are still to be detailed through regulations.

The maximum participating interest allotted to the Gabonese State hasbeen decreased from 20% to 10%, as the equity stake that the Statemay decide to hold in an operator applying for an exclusive developmentand production license. The Gabon Oil Company is also granted theright to acquire an additional interest of up to 15%, but its acquisitionis to be made on market terms.

It is no secret that a succession of production sharing contracts wassigned in the months following the adoption of this new HydrocarbonsLaw. The Malaysian integrated international oil and gas companyPetronas signed two contacts in August 2019. On its heels followedAssala Energy (ex-Shell) and Sinopec. Most recently, the Franco-British major Perenco signed three contracts with the Gabonese Statein February 2020. In total, at least 12 new contracts have been signedunder the new Hydrocarbons Law. The fact that these companies werealready present in Gabon and chose to sign new contracts under the

2019 Law was an encouraging sign to potential bidders and, in January2020, when the new Minister of Petroleum and Hydrocarbons, Mr.

Vincent de Paul Massassa, who hasexperience in both the oil privatesec to r and the Gabonesegovernment, extended the 12th

Licensing Round until April 30,2020 he explained that the extensionwas due to companies manifestingtheir interest in further analyzingthe recently released model contractsand the bidding criteria.

Since the 12th Licensing Round wasannounced, Gabon has had three

different Ministers of Petroleum and changed the Director-General ofthe Hydrocarbons Directorate twice. However, all high-level electedmembers of government and other officials have continuouslyemphasized the importance of this round in the revitalization of theGabonese economy. If the Minister of Petroleum sets a new deadlinefor submission of bids for the not too distant future, we shall see if theimprovements made in the new Law are still sufficient to attract newinvestments in the upstream sector in a low price environment.

About the AuthorsCatarina Távora is a Partner and Global Head of the Energy andNatural Resources Practice at Miranda & Associados. Catarinafrequently advises oil & gas companies in setting up and carrying outtheir operations in Africa. Catarina may be contacted [email protected]. Archa is a Consultant andmember of the Energy and Natural Resources Practice atMiranda & Associados. Archa may be contacted [email protected].

It is no secret that a succession of production sharingcontracts was signed in the months following the

adoption of this new Hydrocarbons Law … In total,at least 12 new contracts have been signed underthe new Hydrocarbons Law. The fact that these

companies were already present in Gabon and choseto sign new contracts under the 2019 Law was an

encouraging sign to potential bidders …

Afr i can Focus


NEW PRODUCTS & SERVICES

Weatherford International plc introducedCentro™, a holistic approach to effectivelymanaging complex wellsite operationsdigitally. By seamlessly integrating everyelement of an operator’s well data, teammembers from any global location can access,share, and store all vital project informationat any time. Centro makes consolidated dataavailable in real time, enabling advanceddomain viewing and live analytics.

“For decades, the oil and gas industry hasdemanded a holistic approach to managingcomplex wellsite operations digitally,” saidEtienne Roux, President of Drilling andEvaluation, Weatherford. “Centro answersthat challenge. By giving operators everypiece of mission critical data – all in oneplace – Centro is an outstanding solution foroilfield data technology management and akey achievement on our industry’s digitaltransformation journey.”

As an all-inclusive, real-time solution beyondmerely transferring data between the rig and

the office, Centro combines datamanagement, visualization, and real-timeengineering technologies, all from asingle provider. Centro unleashesthe power of real integration and gives asingle engineer the analytical capacity of anentire team.

Centro Industry-LeadingBenefits and Features

Monitor multiple wells simultaneouslyusing a single interactive interface thatcombines data from all sources.Visualize with advanced 2D and 3Drenderings through a high degree ofcompatibility with industry data formatsand operations.Receive alerts when it matters by settingbasic or condition-based smart alarms thatdeliver instantaneous notifications toglobal users.Enjoy an unmatched intuitive interfacethat minimizes the effort to manage datasets and enables creating customworkspaces.

Avoid downhole hazards and tool failureswith continuous real-time updates ofdynamic hydraulics, torque-and-drag, andvibration models.Reach maximum operational performanceand team productivity by automatinghundreds of real-time calculationsand tasks.

Weatherford Unveils Centro™, Digital Well Delivery

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Subsea UK has teamed up with one of theworld’s leading non-profit ocean protectionorganizations to promote and supportinitiatives to prevent pollution of our oceans.The trade body has partnered with Big BlueOcean Cleanup to support its ocean protectionproject and raise awareness of the initiativeacross the UK’s £7.8 billion underwaterengineering industry.

Big Blue Ocean Cleanup is an internationalagency that works to prevent pollutionthrough initiatives such as offshore and beachcleaning, and educational programs. The datacollected through its academic research armis used by businesses, governments,universities and individuals to help keep theoceans clean. As part of the new partnership,Subsea UK is backing Big Blue’s OceanProtection Project and will be promoting itto its 300 members, encouraging them tosign up. The program is aimed at companieslooking to make a positive contribution to

supporting the marine environment andpreventing further pollution.

Neil Gordon, chief executive of Subsea UK,said: “Our industry takes its environmentalresponsibilities seriously. We recognize that,as our underwater industry sectors profitfrom the Blue Economy, we have a duty ofcare to the oceans and the seabeds and arecommitted to operating in this fragileenvironment in a way that is safe, sustainableand environmentally friendly. Theengineering expertise and technologicaladvancements as well as the marine sciencewhich characterize our industry have helpedus to minimize our impact and, as weaccelerate the transition to net-zero, we willfurther reduce our carbon footprint.

“Through this partnership we will bepromoting Big Blue Ocean Cleanup’s oceanprotection project to our membership andencouraging them to further enhance their

sustainable operating practices by gettinginvolved in any way they can.”

Rory Sinclair, chief executive of Big BlueOcean Cleanup, commented: “We are verypleased that Subsea UK has come on boardas an official partner. Their involvement andsupport for our work demonstrates that theUK’s underwater industry is working hardto play its part in securing a clean future forglobal marine life.”

Big Blue Ocean Cleanup Project

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The American Bureau of Shipping (ABS) ofHouston, Texas announced that they havereached an agreement to class a series ofSelf-Elevating Drilling Units (SEDU) forSilver Eagle Global of Manama,Bahrain. The vessel construction will bebased on the Levingston/MiNO Enhanced430WC-4 design. The initial contract callsfor two vessels with an option for anadditional two vessels. It is anticipated thata series of similarly designed SEDU’s willfollow after the initial builds. Silver Eaglehas contracted with PetroVietnam MarineShipyard to build the vessels for anundisclosed contract value. Silver EagleGlobal is associated with Rawabi Holdingof Saudi Arabia.

According to Silver Eagle Global, the SilverEagle SEDU 430WC-4 will have theindustry’s largest deck area and deck loadcapacity, large accommodations, increasedcrane capacities, high speed jacking system,greater working water depths in harshenvironments along with other uniqueproprietary design features for the worldwideoffshore industry.

Silver Eagle has entered into a Master ServiceAgreement with Baker Hughes. The

agreement is for worldwide operations whichwill integrate Baker Hughes array of serviceswith Silver Eagle marine operations.

“These unique units offer the flexibility toadapt to the mission and payload. The largedeck and cantilever are innovative designfeatures, while self-propulsion and the fourlegs allows the vessel to get on the job siteindependently. These unique design featuresof the Silver Eagle units will bring a newlevel of versatility for the offshore industry,”said Matthew Tremblay, Senior VicePresident, Global Offshore, ABS.

Ronald Sanders, Executive Chairman ofSilver Eagle, stated, “it is a great privilegeto announce the start of a new era for theoffshore oil and gas industry with the highlyefficient design of the Silver Eagle SEDU430WC-4. We believe this design willprovide a cost-effective solution for theoffshore energy industry in all cycles ofcommodity prices. It gives me a great senseof pride to see this vessel contribute to theevolutionary and revolutionary worldwideoffshore oil and gas service industry. Alongwith our partners, we will continue to be theworld leader in SEDU technologies. We areextremely pleased to be working with ABS

to class the vessels and PetroVietnamMarine Shipyard (PVMS) to build the SilverEagle SEDU’s.”

PVMS will build the vessels in their VungTau shipyard located in the SocialistRepublic of Vietnam. Vung Tau is locatedabout 100 kilometers from Hoe Chi MinhCity. The yard is composed of a Total Areaof 400,000 square meters which iscomprised of structural, piping mechanical,blasting/painting workshops along with alarge open fabrication and assembly area.The fabrication areas, yard cranes, overheadcranes with other yard features, provides theshipyard with the key features to build theSilver Eagle SEDU.

Silver Eagle Global to Build a Seriesof Self-Elevating Drilling Units

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Emerson has released Micro MotionProcessViz™, a standalone, cost-effectivesoftware solution for flow meter process datavisualization. Having an instant visualizationof raw process data translates into directactionable information, helping plantoperators in the chemical, food and beverage,and oil and gas industry reduce the timeneeded to identify a problem in the flowprocess. Ultimately, this can potentially savea facility money by reducing the need forstoppages or shutdowns to trace the sourceof a problem.

The new software supports the MicroMotion™ Coriolis transmitters with data

historian output capabilities such as the 5700and 4200 models and provides a snapshot ofa moment in time in the flow process. Atechnician or plant manager won’t need to

manipulate data to see what is happening inthe flow. The data is available in a usableformat that allows the user to identify andanalyze process issues.

“We created ProcessViz after our customerssaw us using it to diagnose their flowproblems,” said Ron Fleissman, softwareproduct manager for Emerson’s AutomationSolutions business. “We received so manyrequests for this software that we realizedthere was a need in the market for a tool thatwould make it easier for our customers todiagnose process issues that might be causedby changes in the flow, thereby saving themtime and money.”

Emerson Introduces New Data Visualization Softwarefor Flow Measurement

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NEW PRODUCTS & SERVICES


AROUND THE WORLD

Equinor Sees Monument Oil Pay in GoMEquinor and co-venturers Progress ResourcesUSA and Repsol E&P USA have encountered oilin the Monument exploration well in the US Gulfof Mexico. The Monument exploration well foundapprox. 200 feet of net oil pay with good reservoircharacteristics in Paleogene sandstone. Thecompany says this provides an early indicationof the productive reservoir interval at the welllocation. The well was drilled to a total depth of33,348 feet using the Pacific Khamsin drillship.

“We are pleased to have proved an accumulationof movable hydrocarbons in the Monumentexploration well. However, determining the fullpotential of the discovery will requirefurther appraisal drilling,” said Bjørn IngeBraathen, senior vice president of Exploration inNorth America.

The Monument exploration well is located in thecentral US Gulf of Mexico. It is operated byEquinor (50%) with partners ProgressResources USA (30%) and Repsol E&P USA(20%). Monument is Equinor’s first operatedexploration well in the US Gulf of Mexicosince 2015.

Petro-Victory EnergyAnnounces Oil Discovery at Vida WellPetro-Victory Energy has announced the discoveryof oil at the 1-VID-1-ES (Vida) exploration welllocated in Block ES-T-487 Espírito Santo Basin,Brazil. This is the company’s first explorationwell in Brazil.

The Vida exploration well was drilled to a totaldepth of 1,890 meters in the onshore portion ofthe Espírito Santo Basin, Brazil. Evaluation oflogging, pressure, and fluid data confirms thatVida comprises of high-quality oil-bearingCretaceous sandstone reservoirs. The wellencountered 49 meters of net oil pay, exceedingPetro-Victory’s pre-drill forecast of 855,000barrels of mean recoverable resource. Oil wassuccessfully recovered to surface during fluidsampling from a sandstone reservoir at 1,600meters and preliminary observations of the oilsample show similar qualities to a nearby oil field(24 API, low BSW). Oil pay was encountered

across the Vida well, with the majority of oil payoccurring between 1560-1660 meters.

The company will suspend the well, evaluate thedata from the Vida oil discovery, update therecoverable oil resource, determine an appropriatetesting program, and source a workover rig toconduct a detailed testing program and put theVida well on production in Q3. Upon completion,the company projects ongoing OPEX to be in the$10-12 per BO range, generating positive cashflow and profitable netbacks in the current priceenvironment.

This oil discovery significantly de-risks otherCretaceous age prospects on the ES-T-487 licenseand the Company’s other nearby licenses, ES-T-477, ES-T-373, ES-T-354, including the nextwell, the Sintonia prospect located on ES-T-441.

Woodside’s ScarboroughGas Development OffshoreWestern Australia ApprovedWoodside achieved an important regulatorymilestone for its Scarborough gas developmentoffshore Western Australia. The National OffshorePetroleum Safety and Environmental ManagementAuthority (NOPSEMA) has advised of itsacceptance of the Scarborough Offshore ProjectProposal (OPP), following its assessment of thepotential environmental impacts over the life ofthe project.

The OPP is the primary Commonwealthenvironmental assessment document for theScarborough project in Commonwealth watersand forms the basis for future activity-specificEnvironment Plans, which must also be assessedand approved by NOPSEMA. Future activitiesinclude the drilling of the gas wells, installationof the floating production unit and installation ofthe pipeline.

Woodside CEO Peter Coleman said NOPSEMA’sacceptance of the OPP was a significant stepforward for the proposed development of theScarborough gas resource, which is now beingprogressed on a revised schedule due to the currentuncertain global investment environment.

“Although we are now facing challenging marketconditions due to the impact of COVID-19 andvolatile oil prices, Scarborough is a world-classresource which we plan to develop at a globallycompetitive cost through our proposed BurrupHub. “Woodside is continuing work to ensure wehave all the necessary regulatory approvals andcommercial agreements in place to ensure a finalinvestment decision can be taken for Scarboroughin 2021,” he said.

The Scarborough field contains an estimatedcontingent resource (2C) dry gas volume of 11.1Tcf (100%; 8.2 Tcf Woodside share, calculatedusing deterministic and probabilistic methods).The field is held 73.5% by Woodside and 26.5%by BHP.

Bergknapp Prospect in the NorwegianSea Gushes Oil for Wintershall DeaWintershall Dea has made an oil discovery at theoperated Bergknapp prospect in the NorwegianSea, close to the Maria field. The well, drilled bythe Scarabeo 8 drilling rig, encountered an oilcolumn of at least 60 meters in the Garn Formationand an oil column of at least 120 meters in theTilje Formation, with reservoir qualities rangingfrom poor to good.

Initial recoverable resource estimates put thediscovery at between 26 and 97 million barrelsof oil equivalent. The license partnership willnow initiate studies, investigate potential appraisalmeasures and development options for thediscovery. The well will be temporarilysuspended, while a future production test isbeing considered.

With Maria and Dvalin Wintershall Dea alreadyhas fields in production and development in thearea around Bergknapp. Exploring around existinginfrastructure is part of Wintershall Dea’s strategyfor Norway. Together with its partners, thecompany will consider future development optionsfor the Bergknapp discovery taking into accountthe current market environment. Wintershall Deais operator of the discovery in PL 836S with a40% share. License partners are Spirit EnergyNorway (30%) and DNO Norge (30%).

ANP Suspends Brazil’s 17th Bid RoundBrazil’s ANP has approved the temporarysuspension of the 17th Bidding Round for areasfor oil and natural gas exploration and production,under the concession regime, which was scheduledfor this year. The Agency complied with thedetermination of the Ministry of Mines andEnergy, which, in an official letter, requested thetemporary suspension of actions related to the17th Round, specifically those related to thepublication of the pre-public notice and the draft

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contract, in view of the current economic andresulting from the COVID-19 pandemic.

The National Energy Policy Council (CNPE) willdefine a new schedule for the biddingprocess, which will be submitted for evaluationby its members.

McDermott Sees Early FirstGas on ONGC’s 98/2 Block ProjectMcDermott International has announced that earlyfirst gas has been achieved on India’s Oil andNatural Gas Corporation’s (ONGC) 98/2 Blockin the Krishna Godavari Basin, offshore India.Awarded in October 2018, the largest subseaproject in India brings together leading subseaequipment and services to provide ONGC withend-to-end project delivery.

The integrated subsea package includes the supplyof all subsea production systems (SPS), including26 deepwater trees, and the installation ofsubsea umbilicals, risers and flowlines (SURF)at a water depth of between zero to 4,265 feet.Early first gas involved the tie-back of asingle well to the existing Vashishta facility. At4,265 feet, the first well that has been opened forearly first gas is the deepest water depth openedby ONGC.

Ian Prescott, McDermott’s Senior Vice Presidentfor Asia Pacific, commented, “To deliver thisaccelerated schedule is an exceptionalachievement and testament to the benefits of thecollaborative commercial model put forward toONGC. Production from a deepwater well in lessthan 14 months is an outstanding achievementfor the deepwater exploration and productionindustry. In line with the ‘Made in India’approach for the 98/2 project, a substantialamount of engineering and project managementhas been led from McDermott’s operations inChennai. This local approach is a newinitiative in the deepwater subsea spacefor McDermott…”

Lebanon Extends Deadlinefor Licensing Due to COVID-19The Lebanese Petroleum Administration (LPA)announced a postponement of the closing datefor its ongoing second offshore explorationlicensing round in response to the spread ofCOVID-19 worldwide. The new deadline isJune 1, 2020.

His Excellency the Minister of Energy and Waterfor Lebanon, Raymond Ghajar issued thefollowing statement: “Given the implications ofthe spread of Coronavirus worldwide, the Councilof Ministers’ announcement of public mobilization

in Lebanon, and the resulting impacts on thecourse of the Second Offshore Licensing Roundon deadlines given to International Oil Companiesto undertake preparations to submit LicensingRound Applications; the Minister of Energy andWater issued a decision to postpone thedeadline to submit applications to participate inLebanon’s Second Offshore Licensing Roundfrom April 30 to June 1, 2020. The decision willbe published in the Official Gazette and on theLPA website.”

Lebanon’s Council of Ministers approved thelaunch of the second offshore licensing round,of which PGS is an official data provider, in April2019. Acreage offshore Lebanon comes with thereassurance of proven hydrocarbon plays andrecent discoveries in the vicinity.

Magseis Fairfield AwardedDeepwater OBN Program in MexicoMagseis Fairfield has been awarded a deep waterOBN project in the Mexican sector of the Gulfof Mexico. Work is scheduled to commence inthe third quarter of 2020 and will take approx.60 days. The survey will be carried out in waterdepths of 2,000 to 2,600 meters.

The award adds further to the backlog forMagseis Fairfield’s proven existing ZXPLR crew,led by the REM Saltire node handling vessel.The new award increases the crew’s backlog intothe fourth quarter 2020, following the twodeep-water OBN programs announced inDecember 2019.

This is the first deep water OBN survey in Mexicofollowing the 2013 Energy Reform, and MagseisFairfield is excited to leverage its extensive deepwater OBN experience gained in the US sectorof the Gulf.

Aker JV Wins 5-Year Contractwith BSP for Offshore MaintenanceAker Solutions, in a joint venture with PTAS SdnBhd, has signed a five-year agreement to provideoffshore maintenance and modification servicesto Brunei Shell Petroleum (BSP). The Scope ofwork covers maintenance and upgrades tomaintain production levels for more than 200offshore assets.

The name of the new entity is PTAS AkerSolutions Sdn Bhd. The joint venture will ensurecontinuity of delivery to BSP and has a stronglocal execution capability, combined with the fullvalue of Aker Solutions’ international expertise.The work will be managed from PTAS AkerSolutions Sdn Bhd’s office in Kuala Belait, BruneiDarussalam.

“We are pleased to continue our work forBrunei Shell Petroleum and look forward tohelp extend the lifetime of the offshoreinstallations in the South China Sea,” saidLuis Araujo, chief executive officer ofAker Solutions.

Suriname’s Sapakara West-1Hits Oil for Apache and TotalApache Corp and Total have announced asignificant oil discovery at the Sapakara West-1well drilled offshore Suriname on Block 58. Thewell was drilled using the Noble Sam Croft withApache as operator holding a 50% workinginterest and Total holding a 50% working interest.Sapakara West-1 was drilled to a depth of approx.20,700 feet, and successfully tested for thepresence of hydrocarbons in multiple stackedtargets in the upper Cretaceous-aged Campanianand Santonian intervals.

Preliminaryfluid samplesand test resultsindicate a tleast 259 feetof net oil andg a scondensa t epay in twointervals. Thes h a l l o w e rCampan iani n t e r v a lcontains 43feet of net gascondensate and 30 meters 98 feet of net oil pay,with API oil gravities between 35 and 40 degrees.The deeper Santonian interval contains 118 feetof net oil-bearing reservoir with API oil gravitiesbetween 40 and 45 degrees.

Block 58 comprises 1.4 million acres and offerssignificant potential beyond the discoveries atSapakara West and Maka Central. Apache hasidentified at least seven distinct play types andmore than 50 prospects within the thermallymature play fairway.

Upon completion of operations at Sapakara West-1, the Sam Croft will move to the third prospectin Block 58, Kwaskwasi, which is locatedapproximately 6 miles northwest of SapakaraWest-1. The fourth exploration target is Keskesi,which will be drilled around 12 miles southeastof Sapakara West-1. Both exploration wells willtest oil-prone upper Cretaceous targets in theCampanian and Santonian intervals in reservoirsthat appear to be independent from the Maka andSapakara discoveries.

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MARKET MOVERS

TechnipFMC Delays Planned CompanySeparation Due to COVID-19Market conditions have changed materially dueto the COVID-19 pandemic, the sharp decline incommodity prices, and the heightened volatilityin global equity markets. The impacts of theseevents have created a market environment that isnot currently conducive to the company’splanned separation into TechnipFMC andTechnip Energies.

The company reiterated that the strategic rationalefor the separation remains unchanged. Thecompany is committed to the transaction andcontinues its preparations to ensure that the twocompanies are ready for separation when themarkets sufficiently recover.

FAR Struggles with Sangomar DebtArrangements in Current Market ClimateIn a statement, Australian independent FAR Ltdsaid that because of the COVID-19 pandemiccombined with the precipitous fall in Brent oilprice by over 60% since January 2020, it hasadversely impacted global financial marketsincluding the global availability of credit.

Consequently, the company says its “ability toclose the Sangomar Project debt arrangementsthat were ongoing during this time have beencompromised such that the lead banks to thesenior facility have now confirmed that theycannot complete the syndication in the currentenvironment. As a result, the Board is of theopinion that, in addition to the senior facility,neither the junior nor mezzanine facilities thatwere being arranged will be able to be completedfor the foreseeable future. At the end of February,the company had approximately A$150m cashat bank and no debt.”

The company will provide further informationon this review by the joint venture as appropriate.In view of the current global economic climate,the Board has commenced a process to reviewall strategic alternatives available to the companywhich are focused on preserving shareholdervalue for the longer term.

Zenith Renegotiates Tilapia acquisitionZenith Energy Ltd. announced that it has enteredinto a conditional Deed of Variation to amendthe terms of the consideration (the Consideration)payable for the acquisition of an 80 percent.interest in AAOG’s fully owned subsidiary, AngloAfrican Oil & Gas Congo S.A.U, (AAOG Congo)which has a 56 percent. majority interest in, andis the operator of, the Tilapia oilfield in theRepublic of the Congo (Acquisition).

Under the original terms of the Acquisition, Zenithwas to pay a consideration of £1 million to AAOG,of which £500,000 was to be satisfied in cash tobe paid in six equal monthly instalments with thefirst installment due on completion and the lastbeing six months later, and £500,000 was to besatisfied by the issue of ordinary shares in theshare capital of Zenith to be issued at the volumeweighted average price of a Zenith common sharefor a period of 14 trading days prior to completion(Consideration Shares).

The Deed of Variation provides that theConsideration shall be decreased by 20 percent,to £800,000 to be paid in cash only and in tenequal monthly installments with the firstpayment due on completion of the Acquisition.As a result of this amendment, Zenith will nolonger issue any equity as part of the Considerationfor the Acquisition.

The aforementioned revision to the amount ofthe Consideration and the mechanism by whichit is to be settled is conditional only on the passingof a resolution to be put to shareholders of AAOGat a general meeting. Otherwise, the terms of theAcquisition, as detailed in Zenith’s announcementdated December 27, 2019, remain unchanged.

Rosneft Sells its Venezuelan assetsRussian firm Rosneft has announced thetermination of its operations in Venezuela andthe disposal of its assets, related to operatingin Venezuela.

Rosneft has concluded an agreement with thecompany 100% owned by the Government ofRussian Federation, to sell all of its interest andcease participation in its Venezuelan businesses,including joint ventures of Petromonagas,Petroperija, Boqueron, Petromiranda andPetrovictoria, as well as oil-field servicescompanies, commercial and trading operations.

As a result of the concluded agreement all assetsand trading operations of Rosneft in Venezuelaand/or connected with Venezuela will be disposedof, terminated or liquidated. The concludedtransaction and the sale of assets will result inRosneft receiving as a settlement payment a 9.6%share of Rosneft’s equity capital that will be heldby a 100% subsidiary of Rosneft and accountedfor as treasury stock.

NOC Implements AusterityMeasures Due to Blockade of FacilitiesIn March, Libya’s National Oil Corporation(NOC) said it had implemented austerity measuresdue to the continued illegal shut down of facilities.

The corporation is yet to receive its 2020 budgetafter more than 70 days of the new year whichwill force it and its subsidies to cut all non-essential expenses. This includes freezing orpostponing some contracts, stopping mostovertime pay, reduction of some services andother measures.

“This was not an easy decision, but the lack ofrevenue caused by blockading facilities meansthat we will have to reduce our costs. We call onthose responsible for the closure to immediatelylift the imposed blockade and spare oil sectorworkers and citizens from more suffering. Wealso call on the rest of the state’s bodies to maintainthe remaining reserves and reduce their expensesas well,” said NOC Chairman Eng. MustafaSanalla. “I would like to reassure all workers inthe sector that their situation is stable as theirbasic salaries will continue to be paid. I want toask them to stay strong and united during thesedifficult times.”

Varel Announces Multi-Million-DollarInvestment from Blue Water EnergyVarel International Energy Services announceda multi-million-dollar investment from Blue WaterEnergy, an international private equity firm thatspecializes in the energy sector. Varel InternationalEnergy Services (VIES) is the parent companyof Varel, the global supplier of drilling solutionsfocused on the Oil & Gas industry, and DownholeProducts (DHP), which specializes in wellconstruction and well completions.

Varel will use the investment from Blue WaterEnergy to drive growth in the medium term, withthe aim of regaining its status as one of the world’sleading international Oil & Gas suppliers. Arevised strategy will see Varel explore potentialinternational growth prospects, including M&Aopportunities, in the completions products market,as the number of wells and the length of projectscontinues to grow worldwide. VIES will alsolook to consolidate the highly fragmentedcompletions market, particularly in the US, Indiaand the Middle East.

Derek Nixon becomes the new Chief ExecutiveOfficer and President of VIES and will overseethe company’s new direction. Derek has beenwith VIES for 12 years and is currently VicePresident of DHP. Derek joined Varel as a FieldSalesman in 2006, later becoming RegionalManager before moving across to DHP in2014. He became Vice President of DHP in 2016.The deal also sees Jim Nixon, who previouslyspent 16 years as CEO of Varel before leaving in2014, return as Non-Executive Chairman.



Eni and University of Oxford set upMBA Program for African CountriesEni and Saïd Business School, University ofOxford, have announced 10 new MBAscholarships to strengthen the future of businessleadership in Africa.Oxford Saïd leads the wayin MBA recruitment from Africa, with 13% ofthis year’s cohort coming from the continent,spanning 12 African countries. Out of the AfricanMBA students at Oxford, 56% are women.

The Eni-Oxford Africa Scholarship will coverMBA course fees, a living expenses stipendand one return air fare. Two places will beavailable for the 2020-21 academic year, and theremaining eight places will be opened insubsequent years.

Candidates for the Eni-Oxford Africa Scholarshipmust be resident in one of the African countriesin which Eni operates: Algeria, Angola, Egypt,Gabon, Ghana, Ivory Coast, Kenya, Libya,Morocco, Mozambique, Nigeria, Republic ofCongo, South Africa and Tunisia.

Eni has also announced support for three DPhilsat Oxford Saïd, the first of which will start inSeptember 2021. Preference for these will begiven to candidates with an African nationality.

ION to Divest Land SeismicEquipment JV for $12 millionION Geophysical has entered into an agreementto sell its 49% equity stake in INOVA GeophysicalEquipment Limited for $12 million. INOVA is aland seismic equipment joint venture with BGPInc., the world’s largest land seismic serviceprovider, who owns the remaining 51%. INOVAis a leading provider of land geophysicaltechnology, including acquisition systems, sourceproducts and digital sensors. In 2014, ION wrotedown its investment in INOVA to zero. The partiesanticipate closing the deal in the second half ofthe year, subject to regulatory approvals and otherclosing conditions.

“This divestment is aligned with ION's strategyto focus on higher potential return offeringsoffshore that value our leading technology andexperience while monetizing non-core assets,”said Chris Usher, ION’s President and CEO.“I am pleased we reached a mutually beneficialagreement that supports our customers whiledelivering value to our shareholders. The proceedswill support our entry into the 3D new acquisitionmarket and development of our Marlin SmartPortbusiness while further bolstering our liquidity.”

Tower Updates Thali PSC Farm-OutTower Resources has announced updates inrespect of its Thali Production Sharing Contract(PSC) in Cameroon, conducted through its wholly-owned subsidiary Tower Resources Cameroon,and its binding heads of terms (HoT) in respectof a farm-out of a 24.5% interest in the PSC toOilLR Pty Ltd (OilLR).

Tower and OilLR have agreed to amend theirHoT to extend the proposed completion date toJune 30, 2020. Tower is satisfied that OilLR’sintended investors have the funds to completethe intended farm-in, and both Tower andOilLR are still committed to completing thetransaction, but both parties also agree that thetransaction cannot be completed until theenvironment stabilizes sufficiently for the projectto move forward.

The company is continuing discussions with otherpotential investors in the Thali PSC, and whileit fully expects OilLR to complete the agreedfarm-in as set out in the HoT, the company hasalso agreed with OilLR that in the event it receivesadditional offers of firmly committed funds whichaggregate to more than $15 million, and if (andonly if) OilLR is unable to make an escrowpayment on an agreed schedule, then the companywill have the right to reduce OilLR’s share of thetotal farm-out down to a minimum of $5 millionto accommodate the other potential investors.This is to ensure that extending the completion

schedule will not materially delay the company’saccess to funding from other sources as well. Theother terms of the HoT with OilLR are unchanged.

Essar Files Breach Claimagainst Shorecan over Nigerian AssetsEssar Exploration & Production Limited Mauritius(Essar Exploration) has filed a claim in the EnglishHigh Courts against Shoreline CanoverseasPetroleum Development Corporation Limited(ShoreCan). This legal claim relates to bothcompanies’ respective interest in Essar Explorationand Production Limited (Nigeria) (Essar Nigeria).ShoreCan is as a joint venture between theCanadian Overseas Petroleum Limited (COPL)and Shoreline Energy International Limited.COPL is listed on the London Stock Exchangeand Canadian Securities Exchange.

The filing states that ShoreCan has committed arepudiatory breach of the Share PurchaseAgreement and a material breach of theShareholders’ Agreement, dated August 17, 2015.The purpose of these agreements was forShoreCan to receive 80% of the shares in EssarNigeria, for an investment of $80 million. Theremaining 20% of shares would belong to EssarExploration Mauritius.However, ShoreCan failedto provide the promised funding, and as a result,Essar are claiming damages of $63 million forthe amount that it invested into this project.

The legal filing claims that as a result of this,both agreements are therefore terminated, andthe initial transfer of shares by Essar Explorationto ShoreCan is void. This would require ShoreCanto transfer its shares to Essar Exploration.

Essar Exploration provided ShoreCan with morethan adequate time to take corrective steps toremedy its defaults under the agreement andissued a notice of breach to ShoreCan in August2018. Unfortunately, ShoreCan never took thenecessary steps, and Essar Exploration have beenforced to take legal action.

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Contents · 2020-07-11 · security at all times. ... However, one opposition party, Oromo Federalist Congress, said COVID-19 is just an excuse to postpone as the Electoral Board