AfrOil 19th Oct 2010 - Centric’s African rift frontier potential

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Centric Energy CEO on their potential in Mali, Kenya and beyond

Centric Energy CEO on their potential in Mali, Kenya and beyond

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  • 1. 19 October 2010 AfrOil Week 41 Issue 361 News Analysis Intelligence Published by AFRICA OIL & GAS MONITOR NewsBase COMMENTARY 2 NEWS THIS WEEK… Gabon delay Gabon struggles to sustain plans on auction delay 2 Centric chases rift frontier potential 4 The Gabonese government has announced an INVESTMENT 6 indefinite delay to the launch of its 10th bid round. African refining plans fall short 6 Zuma backs economic case for Project Gabon’s oil production has been declining for Mthombo 6 some years. The country hopes that exploration of Sirius Petroleum shines light on Nigeria’s its ultra-deepwater will turn this trend around. (Page 2) Ke field 7 The country’s reasons for putting off the bid PERFORMANCE 7 round focus on concerns highlighted by BP’s Gulf Spain, Algeria fight on gas pricing 7 of Mexico disaster. (Page 9) Confidence in Libya continues to deteriorate Petroceltic updates North African 8 Refining woes appraisal programme 8 Africa’s refining sector is slow-moving and very POLICY 9 few schemes actually make progress. Tullow continues Kinshasa dispute 9 CITAC has diagnosed the downstream industry Gabon postpones round again 9 and appears unimpressed. (Page 6) Libyan squeeze Obasanjo aide charged over NLNG case10 Abyei talks collapse, jeopardising Sudanese production 10 Tripoli has proved to be a difficult partner in many PROJECTS & COMPANIES 11 ways and this is slowing development. Shell to launch Marsa el-Brega tender 11 Sonangol and PetroSA plot refinery joint A number of companies have dropped licences as venture 11 a result of poor results and tough terms. (Page 8) NEWS IN BRIEF 12 Reports suggest work on Marsa el-Brega may COURSES 20 soon be up for tender again, but it is unclear that CONFERENCES 21 things will be any better this time around. (Page 11) For analysis and commentary on these and other stories, plus the latest oil and gas developments, see inside… Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 2. AfrOil 19 October 2010, Week 41 page 2 COMMENTARY Gabon struggles to sustain plans on auction delay Libreville has announced another delay to its 10th licence round, throwing into question the country’s plans to sustain production levels through licensing the technically difficult ultra-deepwater offshore By Alfonse Dubere The round was due to be held on October 27 but has been postponed indefinitely Environmental concerns are said to be a major factor in the decision to delay the round Gabon needs production from new areas to overcome the decline of the last few years Gabon has postponed its planned 10th Total, which have recently announced Petroleum and Hydrocarbons Minister licensing round yet again. The news will imminent Gabonese commitments. Julien Nkoghe Bekale said on October come as a disappointment to explorers The official line from Libreville is that 12. The minister said exploration costs that have been eyeing the West African the auction of 42 offshore drilling blocks and environmental concerns had changed country’s deeper offshore waters as a – which had originally been scheduled since the Gulf of Mexico spill. new oil frontier opportunity – a view for March and was then put off until “This approach is consistent with our mirrored by foreign majors LUKoil and October 27 – has been postponed hopes to achieve the best standards for indefinitely, risk prevention and industrial safety, and owing to a compliance with environmental number of standards,” he was reported as saying by factors, Reuters. including a The Gabonese authorities want “to be requirement assured of certain guarantees, notably for improved with regard to security, the environment security and and the opportunities for operators,” an environment official said. Libreville is taking into guarantees. account what happened in the Gulf of Africa’s Mexico, where the worst oil spill in US seventh largest history occurred in April 2010. “No one crude supplier is immune from that sort of accident ... increasingly which means that we are taking the time needs to to prepare things in the best way.” combat steep Concerns over environmental issues declines from are on the rise around the world, with a its existing number of company officials reporting fields, but increased interest as a result of the “wisdom has Macondo disaster. prevailed, Mba said some companies had shown since new interest in the new blocks, reiterating past factors and statements from the government that the objectives auction had been delayed to October 27 have arisen,” because of heightened international Gabonese interest. Mines, Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 3. AfrOil 19 October 2010, Week 41 page 3 COMMENTARY CGG Veritas, which has worked on fresh exploration ventures, as well as the Sud. marketing the round, said in late 2009 oil companies that buy into the blocks. that some industry majors and larger This, now, is in question. Existing plays independents had already shown an Gabon’s attraction as a hydrocarbons initial interest in the acreage. Recent Ultra-deep prospects market remain strong, though, as shown reports cited China’s Sinopec – already Oil remains Gabon’s main source of by recent comments from LUKoil, an existing player in Gabon – as lining wealth, accounting for about 60% of the Russia’s second largest oil company, up major potential bids at the auction. country’s budget, but output has been which is considering joining an upstream Mba underlined that one of the key declining for more than a decade after oil and gas project in Gabon as part of its external concerns – new regulations for hitting a peak of 371,000 barrels per day strategy of expanding in West Africa. No the Gabonese industry – was being in 1997, falling to around 220,000- further details were provided by drawn up, and would lay down a number 250,000 bpd. The new licensing round, LUKoil’s president, Vagit Alekperov, of rules that firms currently operating in which was due to open on October 27 who told reporters on October 13 that Gabon and those hoping to do so would with a grand event in Libreville, was “we’re looking at Gabon.” have to obey. A French law firm, Gide therefore seen as key to Gabon’s Far more specific is French Total, Loyrette Nouel, came up with a draft hydrocarbons future, marking the first which is eyeing a multi-billion hydrocarbons law in 2009, but work on time that Gabon had offered blocks in the investment into its Gabonese oil acreage. this would appear to be ongoing. offshore ultra-deepwater. “We are planning to invest some very It may be significant in this respect Here, untapped subsalt deposits have large sums, nearly US$2 billion in our that, according to Reuters, a Gabonese been touted as offering complex but installations and at the same time get energy official said recently that in potentially highly lucrative opportunities access to new resources,” Total’s head of addition to royalties and production for players prepared to gamble that exploration and production, Yves-Louis costs, Gabon would seek a 50% share of drilling successes across the Atlantic in Darricarrere, told Gabon’s national production for fields producing up to Brazil’s offshore can be replicated. television on October 13. 75,000 bpd, and a greater percentage for The untapped potential of Gabon’s Darricarrere reportedly hinted that fields where output was even higher. subsalt section was recently highlighted Total Gabon’s Anguille oilfield would Whatever Gabon’s rationale for the by Spain’s Repsol, which said it wanted not be the only investment in the years move, the news has, yet again, placed on to “export” the Brazilian model to Gabon ahead by the French super-major, which hold what some market observers have and other West African countries. also controls the 6,000-square km Diaba envisaged will be a potential 10-year Several small subsalt discoveries have block. His comments came after a period of offshore exploration in Gabon. already been made offshore the Republic meeting with Gabonese President Ali It had seemed entirely plausible that a of Congo (Brazzaville), giving rise to Ben Bongo, who took office in August range of drilling activity could begin predictions that this trend could run all 2009, replacing his father. across the newly licensed blocks by mid- the way up to Tullow Oil’s discoveries Bongo has held up a range of targets 2011, bringing opportunities for the offshore Ghana. for economic revitalisation, including the drilling contractors and subsea Data for bidders pursuing this play replacement of gas flaring with re- equipment manufacturers that feed on offshore Gabon have been handled by injection techniques. Like many African CGG Veritas, leaders, though, he has failed to match which has been the ambitious talk with project retained to advise implementation. Analysts said the 10th the Direction licensing round would be seen as a key Generale des gauge of the progress made by the new Hydrocarbures president, given the government’s long- (DGH) on the term need to turn around years of slow promotion of the production decline from maturing licensing round. It shallow-water fields and thereby sustain has acquired its future economic development. almost 13,000 km For the time being, it will be down to of seismic data existing explorers such as Maurel et and reprocessed Prom, Royal Dutch/Shell, Perenco and 5,000 km across Vaalco Energy to prop up production the two levels, but these will only ever swing deepwater regions back past the previous peak if the focus involved, Zone of activities can move out into Gabon’s Nord and Zone deepwater offshore acreage. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 4. AfrOil 19 October 2010, Week 41 page 4 COMMENTARY Centric chases rift frontier potential The company has significant acreage in two frontier countries, Mali and Kenya, and is on the look out for additions By Ed Reed Centric has 88,000 square km of acreage in Mali and Kenya, working with Heritage and Tullow The Kenyan block is under-explored, with plans to investigate the on- and offshore Seismic is to get under way in Mali this year and an exploration well could be drilled in 2011 Success in Uganda has helped drive claim. A hearing is to be held on October Under its licence, Centric has enthusiasm for Kenyan work, a sentiment 27 on the matter. committed to carrying out an airborne corroborated by Tullow Oil’s decision to Exploration has been moving in fits gravity survey and acquiring 200 km of strike a deal with Centric Energy on its and starts in Kenya for many years, 2-D seismic on the block in the first Block 10BA. although there have been relatively few three-year phase. The company has Tullow is to take a 50% stake in wells. received satellite images of Lake Centric’s production-sharing contract Turkana to look for slicks that might (PSC), assuming it gains approval from Kenyan programme have come from oil seeps. the Kenyan government. “We have had Robinson said the sheer size of the area – “The next step is to get out on the lake indications that the Kenyan government Block 10BA covers 16,205 square km – to sample these and we will need to do is pleased, so we do not anticipate any meant there was substantial untapped seismic onshore and in the lake. We have difficulties in that regard,” Centric’s exploration potential. On this large also initiated reprocessing of the old CEO and president, Alec Robinson, told expanse only one well has been drilled seismic data and reinterpretation of the AfrOil. Tullow, he said, “will be a strong and around 1,500 km of seismic old gravity and magnetic data,” Robinson partner for Kenya.” acquired. said. One potential concern, though, is a “The latest seismic [on the block] was Should Centric – and Tullow’s – hopes Kenyan court case, under which shot in 1992,” Centric’s CEO said. “We for oil be successful in Kenya, the Interstate Petroleum has sought a judicial feel that the opportunities that are companies would face some challenges review of the block’s award, although demonstrated by the seismic are in terms of exporting the crude, as there Centric has said there is no basis for the significant.” is no nearby infrastructure at present. Robinson, though, was confident a solution could be found, saying success at Block 10BA could piggyback on other export schemes, either from Sudan or Uganda. South Sudan is set to hold a referendum in January 2011 on potential secession. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 5. AfrOil 19 October 2010, Week 41 page 5 COMMENTARY Should independence be approved, as “They are both part of the interior rift were in the blocks. “The survey is seems likely, the new country would face system, although of slightly different sufficiently high-resolution that we can an interesting dilemma over how to ages. The rift basin in Mali is use it to decide where to shoot more export its oil. South Sudan holds the Cretaceous-age and the rift basin in seismic. As I mentioned, seismic is majority of the country’s production but, Kenya is Tertiary, so it is younger. The planned to start later this year. for now, output flows to the north, to rift basin in Kenya is north to south, and Depending on the results, drilling should Port Sudan. crossing it at an angle is the Cretaceous start [in 2011].” Should Sudan break up, this export rift, known as the Anza Graben, that Although Mali has mostly flown under route may come under pressure and continues into southern Sudan,” he said. the radar, a number of high-profile schemes have emerged for a link to be Robinson went on to note the potential companies have signed up to work in the constructed to transport crude through presence of “lake sediment, which forms Sahelian state. Algeria’s state-owned Kenya. Such a plan, which has been Sonatrach, for instance, has Block 20 and backed by Toyota Tsusho, would involve a stake in Block 4, alongside Italy’s Eni. building a pipeline probably passing “The Agadem block, in “The Agadem block, in Niger, is of a through Centric’s block. Niger, is of a similar age similar age and may indicate the Alternately, the plan could tie into a potential of our licences in Mali,” Ugandan scheme. “The export pipeline and may indicate the Robinson said. “One study by another for Uganda’s oil, if it [passes] through potential of our licences in company suggests it has 350 million Kenya, will come very close to our barrels of oil in place. It is reported that a operation,” Robinson said. “The ideal Mali,” Robinson said Chinese company paid a signature bonus solution would be a pipeline network, of US$300 million about two years ago source rocks and generates oil, as seen in bringing together Sudanese, Ugandan to acquire the licence.” Uganda.” Finally, the licence terms in and Kenyan oil.” both states are good and the tax regimes The pipeline would have to be heated Looking to the future are “acceptable. We’re a small company, to more than 40 degrees Celsius, Centric’s strategy is to focus on so we have to go to regions where, Robinson explained, in order to “keep the opportunities in areas “where there is currently, there is less competition.” oil flowing, because of [its] wax evidence of hydrocarbons, in countries Another link, tying Mali to Uganda, is content.” that have favourable commercial terms the presence of Heritage Oil, which Despite the block’s proximity to and that accept direct applications for acquired a 75% stake in the blocks in Sudan, the Centric official was exploration acreage.” 2008, committing to carry Centric unconcerned about security issues. There Robinson said the company was on the through the acquisition of seismic and is a disputed area nearby, he said, but lookout for additional deals and that its the drilling of a first exploration well. there does not appear to be any fighting focus was on sub-Saharan Africa. “We Centric’s two areas, Blocks 7 and 11, there. “It’s important to have strong don’t just look at geology: we look at are in southeast Mali, in the Cretaceous- community programmes in the areas of deal flow, competition, business age Goa rift basin. Between the two operations. It is good common sense. environment and fiscal regime when blocks, Robinson said, is a water well in Local people should see the benefit our considering where to go next.” which oil and gas have been detected. presence – it’s partly altruistic, partly Centric has previously been linked to “BP sampled it in the 1970’s and wise business.” Eritrean opportunities, which have also confirmed that the oil [there] is a seep of been under-explored, appearing to match natural crude oil and not pollution. This Mali the company’s plans to seek up and gives us some indication of hydrocarbons As a result of the Tullow deal and other coming plays. With the completion of the in the basin,” he said. corporate activity much has been made Kenya deal and the start-up of seismic in Heritage is planning to acquire seismic of East African assets in recent times, but Mali looming, Centric seems to have on the blocks in the fourth quarter of this Centric also has two blocks in Mali, proved its ability to sign up frontier year. An aeromagnetic survey, covering covering 72,850 square km. acreage. Now the company needs to 42,000 line km, has already been shot on Robinson told AfrOil that there were a establish its ability to move into the the blocks, “which is about the number of links between Mali and exploration phase and firm up its circumference of the world.” Kenya, including the geology, lake hopes. Robinson said this had given clear sediments and licence terms. indications of where the basins of interest Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 6. AfrOil 19 October 2010, Week 41 page 6 INVESTMENT African refining plans fall short Africa’s refining plans have failed, for company has been instrumental in more support for refining plans and must the most part, to make any progress building plants in Sudan, Algeria, Chad honour long-term commitments. beyond the drawing board, CITAC and Niger, while Citadel Capital is Subsidies can act to distort the market, it Africa pointed out at a recent forum. involved in a facility being planned in continued, and governments must pay The group’s executive director, Gary Egypt. these on time, should they be maintained. Still, speaking at a downstream event in The CITAC official said the Chinese The World Bank and International Lagos on October 14, said that while involvement in these downstream areas Monetary Fund (IMF) should support the there had been 60 announcements of “may lead to the acquisition of prime construction of refineries over product plans for new refineries in Africa, only exploration concessions, which may imports, which would draw in one had actually been built. become future Chinese-controlled crude commercial backing. Finally, CITAC CITAC said that 90% of the proposals reserves for years to come.” Local said, refineries should focus on meeting for refineries fail to make any progress. governments benefit from these domestic demand in land-locked Some make it as far as a feasibility study investments, with the introduction of new countries, rather than marginal exports. but are then dropped once backers try to product capacity as well as securing Still said as long as these factors were raise financing. Slow progress in African upstream commitments. uncertain, African refining plans would refining has been further compounded by Still also said the African refining continue to struggle and “perhaps only weak international margins, with some sector was “desperately searching for CNPC will be prepared to take the experts saying the world needs to cut as financing to improve product quality.” commercial risk of the necessary much as 7 million barrels per day of There would be significant health and investment by supplying soft loans.” capacity. economic benefits for countries Even CNPC, though, would look to The prime driver of downstream switching to clean fuels, CITAC said, but balance its downstream investment risk projects in Africa, CITAC continued, has in sub-Saharan states alone this would through securing upstream been China National Petroleum Corp. require US$10-15 billion of investment concessions. (CNPC), which has been involved in five by 2020. out of seven schemes. The Chinese CITAC said governments should show Zuma backs economic case for Project Mthombo South African President Jacob Zuma has billion rand (US$1.8 billion) per year in The Project Mthombo refinery is given his support to PetroSA's planned energy costs once it was running, and expected to ease some of this pressure, refinery in the Coega industrial “could export oil [products] across with Zuma singling out state-owned development zone, near Port Elizabeth. Africa.” PetroSA’s recent track record as a reason The president said the project would While the refinery would “showcase for optimism. reduce South Africa’s dependency on South Africa’s competitive ability” it “We welcome the fact that PetroSA is energy imports and improve the country's would also help the country escape from making its impact, not only in job image overseas. its current dependency trap, where creation but in empowering the people as Construction of the US$11 billion demand for refined automotive products well. It employs close to 2,000 people, facility, which will have 400,000 barrels relies on imports, he added. while 27,500 more will be absorbed per day of capacity, is expected to start in Despite South Africa's status as one of within the crude oil refinery that is 2012, with the refinery to come onstream the most developed economies in sub- [being] planned,” Zuma said. by 2015. Once completed it will be the Saharan Africa, it has frequently “To be able to reach the markets in largest oil refinery on the continent. struggled to maintain a consistent and Europe, the US, the Caribbean, the Speaking at a visit to PetroSA’s gas-to- secure energy supply, with both domestic Middle East and the Far East is an liquids (GTL) refinery in Mossel Bay on use and its large-scale and resource- important achievement,” the president October 14, Zuma said the project would intensive mining sector regularly said. help South Africa save an estimated 12.6 disrupted. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 7. AfrOil 19 October 2010, Week 41 page 7 INVESTMENT Sirius Petroleum shines light on Nigeria’s Ke field UK-listed minnow Sirius Petroleum said was originally discovered in 1965 by barrels of crude. it had raised GBP15.7 million (US$24.9 Chevron, which retains a small royalty Trading in the company’s shares has million) to help develop Nigeria’s Ke interest in any production income from been halted on London’s Alternative field, a small oil discovery in the the Ke farm-out area. Investment Market (AIM) while the southern part of the Niger Delta. The area, which covers 52 square km, transaction is in play. The company said last week that it was originally part of Oil Mining The move into Nigeria’s oil sector would place about 313.9 million shares at Licence (OML) 55 and was awarded to marks a major strategic shift for Sirius GBP0.05 (US$0.08) per share to raise the Del Sigma in 2003, as part of the Petroleum, which has had no substantive money. Sirius agreed earlier this year to Department of Petroleum Resources trading business since 2007, following a acquire a 40% interest in the field, held (DPR) marginal field round. decision to cease its gaming industry by Nigerian independent Del Sigma Del Sigma presently holds a 100% aggregation software business. Petroleum, in a reverse takeover deal. participating interest in the field. Starting with the Ke field, it now plans The deal is still awaiting Nigerian According to Sirius Petroleum, to focus on marginal oilfields, government approval, which is potential recoverable reserves at the Ke particularly in Nigeria. The Sirius board anticipated later this month. The Ke field field are expected to exceed 25 million said the project “has unrealised value.” PERFORMANCE Spain, Algeria fight on gas pricing The gas price dispute between Spain’s the Paris arbitration court over 2007-09 to 50% from 60%. The 60% level was set Gas Natural Fenosa and Algeria’s gas prices, and must now pay Sonatrach in 2004 by another royal decree. Sonatrach is now a full blown political up to US$2 billion in unpaid costs, which Gas Natural is Spain’s biggest gas conflict between the two countries, is more than Gas Natural’s annual net group, with more than 60% of all Spanish Industry Minister Miguel profit. Spanish gas customers. The economic Sebastian told Parliament on October 13. The legal change to limit a foreign nature of the dispute has become political Sebastian revealed he would be company’s gas market share to 30% for several reasons. One is that Gas travelling to Algeria in the week would restrict Sonatrach’s power in Natural’s debt to Sonatrach could end up commencing October 18 to discuss the Spain. The power the Algerian company being paid partly by Gas Natural’s matter with Algerian Energy Minister wields is set to increase radically when customers. Gas Natural has asked the Youcef Yousfi. the Algeria-Spain underwater Medgaz government to allow some of the huge As the Spanish government angles for gas pipeline comes into operation later debt to be paid through Spaniards’ gas a solution through dialogue, Gas Natural this year. bills. is studying legal measures to limit Almost worse for Gas Natural is that Another reason is the much greater Sonatrach’s power in Spain as the Sonatrach has a licence to trade its gas in power Sonatrach could wield once country’s main gas supplier. One is to Spain, which means it can sell directly to Medgaz began operating, which would reduce by law the 50% maximum gas end users without going through include the power to condition prices. supply market share a foreign company intermediaries, such as Gas Natural, Sonatrach holds the largest stake in can have in Spain to 30%. Sonatrach’s Iberdrola or Endesa. Sonatrach already Medgaz, with a 36% stake. Gas Natural current share is 32%. has a 1.04% trading market share, and has no stake in Medgaz, although Another is to take Sonatrach’s Algeria’s ambassador in Spain has Iberdrola and CEPSA have 20% each, intention of raising gas supply prices for indicated the company may triple this. while Endesa and Gaz de France each 2010-12 by a further 30% to another A Spanish royal decree issued in 2007 own 12%. Sonatrach’s gas currently international arbitration court. In August, had already lowered the gas supply reaches Spain via the Maghreb pipeline, Gas Natural lost a case with Sonatrach in market limit for a non-Spanish company which passes through Morocco. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 8. AfrOil 19 October 2010, Week 41 page 8 PERFORMANCE Confidence in Libya continues to deteriorate Confidence in Libya’s oil and gas November. were lifted in 2005. marketplace took another hit this month The announcements reiterate the Many have looked to the experience of as a series of international firms feeling of general unease surrounding Canada’s Verenex Energy and have announced they would exit the country Libya, with the lacklustre finds of many begun to wonder if the risk of investing because of low returns and an unstable international companies made worse by in the country is worth the hassle. political climate. erratic comments and behaviour on the The Calgary-based company agreed to Following BG Group, which part of the government. Libya had a sale to China National Petroleum Corp. announced its exit in late August after appeared to be moving towards (CNPC) but, following opposition from three consecutive dry wells, Chevron, modernisation but shifting power local interests, was forced to accept an Occidental Petroleum, Woodside balances within the Tripoli regime have offer of 30% less from the Libyan Petroleum and Abu Dhabi-based Liwa swung back towards more conservative Investment Authority (LIA), Energy have said they will not renew figures. Poor results and comments However, while many companies are their licences. suggesting a nationalisation of Libya’s cutting Libyan projects, others have The planned exits follow a summer of resources have created an uneasy elected to remain, such as Hess, delays as BP has struggled to move atmosphere for foreign investors. Petrobras, Indonesia’s Medco Energi, Oil forward on a US$900 million offshore In addition to threatening needed India Ltd (OIL) and Algeria’s Sonatrach. drilling project. The company has been exploration and infrastructure In addition, Italy’s Eni has reiterated its criticised by European Union officials for investment, this loss of confidence pledge to invest US$25 billion in Libya planning to drill in the Mediterranean jeopardises the country’s growth rates, over the next decade. Sea. The UK-based super-major appears which have been driven by the promise to be set to begin drilling in Libya in of its oil and gas industry since sanctions Petroceltic updates North African appraisal programme Drilling is to start at Petroceltic appraisal drilling programme lasting six Bir Ben Tartar reservoir unit, a detailed International’s Ain Tsila discovery in months at the gas condensate field, where evaluation of the data indicated oil Algeria’s Isarene permit in November, three test wells have revealed “an saturation and reservoir characteristics but its Tunisian exploration well is to be extensive and probably continuous gas were insufficient to justify fracture plugged and abandoned. accumulation” that, following fracture stimulation and well bore testing. Petroceltic confirmed these contrasting stimulation, is capable of flowing at rates Petroceltic’s CEO, Brian O'Cathain, fortunes from its North African wells in exceeding 850,000 cubic metres per day. commented that, while the ST-4 an operations update issued on October This latest appraisal programme aims exploration results were disappointing, 12. to confirm recoverable hydrocarbon “the extensive modern logging data The Irish-headquartered independent reserves and to optimise development collected” would be reviewed “before said it was making good progress at its plans for the discoveries and gas sales making a decision on whether to Ain Tsila (AT-4) well in Algeria, where contracts. continue with any further exploration” on it holds a 75% stake as operator in a joint that block. venture with state-owned Sonatrach. Tunisia ST-4 is part of a work programme Civil engineering works are now Meanwhile, the Sidi Toui-4 (ST-4) well, agreed when Petroasian Energy Holdings complete and the site is ready to receive at the Ksar Hadada permit in Tunisia, is farmed into the permit, in which the Dalma No 12 rig. Drilling is expected to be plugged and abandoned without Petroceltic is the operator with a 27.03% to begin during the first week of testing. The CTF Rig 06 will be interest. Petroasian’s holding is 51% and November and take around 40 days. demobilised. there are three other partners. This will be the first in a multi-well Despite encountering oil shows in the Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 9. AfrOil 19 October 2010, Week 41 page 9 POLICY Tullow continues Kinshasa dispute Tullow Oil said last week it would companies owned by Khulubuse Zuma, of Hydrocarbons Celestin Mbuyu told continue to pursue a court case in order the nephew of South African President members of parliament that Tullow did to uphold its claims to two blocks on the Jacob Zuma. In June of this year, a not have the right to seek arbitration in western side of Lake Albert, in the presidential decree endorsing the award the Paris court. He asserted that the Democratic Republic of Congo of Blocks 1 and 2 to Caprikat and presidential decree signed in June (Kinshasa). Foxwhelp was signed. invalidated the sections of the Irish Tullow’s vice president, Tim According to the Congolese company’s agreement that provided for O’Hanlon, told Bloomberg that his government, the signing of the arbitration of future disputes. company had no choice but to seek a presidential decree means that the only He also said Kinshasa had sent letters judicial remedy for its claims to Blocks 1 valid contract for the blocks is the one to both Tullow and DIG giving notice of and 2, located in the northeast part of signed with Caprikat and Foxwhelp. cancellation and offering instructions on Congo (Kinshasa). “Since Tullow is not However, Tullow has challenged securing compensation from the in the habit of buying back goods which Kinshasa’s actions, saying that the Congolese Ministry of Finance. have been stolen from us, I defy anybody original deal should stand. It has filed O’Hanlon told Bloomberg that his to show what alternative we had to these cases against Congo (Kinshasa) in the company was not aware of any such legal actions,” he said in an email International Court of Arbitration in Paris letter. However, DIG’s director, Andrea message. and in a British Virgin Islands court. Brown, told the news agency that her Kinshasa had awarded the blocks to The latter court recently made a ruling company had received Kinshasa’s letter Tullow in 2006. Before the project had in Tullow’s favour. On September 21, it and was in negotiations on reached the step of being approved by issued an injunction barring Caprikat and compensation. presidential decree, though, the Foxwhelp from exercising or transferring Tullow also holds rights to several Congolese government announced that it rights to the blocks and from working at blocks on the Ugandan side of Lake had been cancelled. In 2008, it awarded either site. It also said a new hearing on Albert. These blocks contain about 1 the two blocks to Divine Inspiration the case would be held on October 18. billion barrels of crude oil and are set to Group (DIG) of South Africa. As of press time, it was not clear begin production in 2014-15. They may This deal also fell through and whether the Congolese government had come to yield 200,000 barrels per day. Kinshasa later turned the blocks over to commented on the injunction. two British Virgin Islands-registered In early October, Congolese Minister Gabon postpones round again Gabon has opted to push back the start of Hydrocarbons Ministry official, Guy produce 220,000-240,000 barrels per its offer of blocks indefinitely, attributing Martial Mbeang Mba, told AFP on day, are in decline and the country is the delay to security concerns and October 13 that the government wanted seeking to diversify its economic reliance environmental guarantees in the wake of to “be assured of certain guarantees, on oil, which is said to account for BP’s Gulf of Mexico disaster. notably with regard to security, the around 60% of its budget. The sale of 42 Gabonese offshore environment and the opportunities for Earlier this year, an energy official said blocks, which was originally set for May operators.” Gabon would be asking for a 50% share 5 and then delayed until October 27 Without announcing a new auction of production from fields generating up because of greater than expected date, Mba confirmed Gabon was drawing to 75,000 bpd, with a greater amount due international interest, is now in jeopardy. up a code of conduct for companies from those with a higher output, in A government official linked the latest working in its energy industry, taking addition to receiving royalty payments deferral to a need to “adopt a new “international factors” into account. “No and production costs. approach rather than just launch into this one is immune from that sort of The country has also suffered from operation” following the loss of life and accident,” he said, adding the oil-rich numerous strikes and, early this month, environmental damage caused by an state was “taking the time to prepare Gabon said it was to move towards explosion on and the subsequent sinking things in the best way.” strengthening the role of local content, in of BP’s Deepwater Horizon rig in April. Gabon is Africa's seventh largest crude a move that might prove difficult for A Gabonese Mining, Oil and supplier but its existing fields, which foreign investors. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 10. AfrOil 19 October 2010, Week 41 page 10 POLICY Obasanjo aide charged over NLNG case The long-running case centred on bribes Technip, Snamprogetti and JGC. TSKJ is to the government. paid to secure construction contracts at said to have paid around US$180 million The Nigerian government has also Nigeria LNG (NLNG) took a fresh twist in order to secure work on the NLNG been reported as preparing to sue last week as an official close to Nigeria’s project. The US government has also Halliburton, which was the parent former president, Olusegun Obasanjo, chosen to pursue these companies, with company of KBR at the time of the was charged with money laundering. KBR, Technip and Snamprogetti having scandal, for US$2 billion in US courts. A senior aide in the Obasanjo paid out or set aside cash to cover fines. administration, Adeyanju Bodunde, was Charges filed in September had named Panalpina charged with six counts of money a number of participants in the scandal, In related news, the Wall Street Journal laundering on October 14. He pleaded but suits against many foreigners were reported Panalpina, a Swiss logistics not guilty to all the charges and was dropped last week. Among those company, and Royal Dutch/Shell were subsequently freed on bail. previously named and then dropped are nearing a settlement with the US Bodunde was accused of accepting Jeffrey Tesler, George Mark and the government over foreign bribery. around US$5 million in cash from local affiliate of construction giant Panalpina’s actions are being various businessmen. The aide denied Bilfinger Berger. investigated in a number of foreign wrongdoing, saying in local reports that Tesler, who resides in the UK, is states, including Nigeria. The logistics he was merely acting to raise fighting attempts by the US government company is to pay US$85 million, while contributions for Nigeria’s ruling to extradite him, to face charges of Shell will have to stump up US$30 People’s Democratic Party (PDP). contravening the Foreign Corrupt million for using Panalpina’s services in The charges stem from actions taken Practices Act (FCPA). Julius Berger is Nigeria. by TSKJ Nigeria, a consortium of said to have reached an out of court international service companies – KBR, settlement, paying around US$30 million Abyei talks collapse, jeopardising Sudanese production Prospects for the Heglig and Unity US-mediated talks in Addis Ababa be aggravated by the looming dispute oilfields, in Sudan’s Muglad Basin, have collapsed, shattering any hopes by the between NCP and SPLM, both of whom been thrown into question following the Greater Nile Petroleum Operating have agreed to a fresh round of collapse of the latest negotiations over Company (GNPOC), the major operator negotiations later in the month. The two the over the future of the oil-producing of the two oilfields, of boosting the sides are also accusing each other of Abyei region. falling production figures and of amassing troops along the demarcation The Khartoum-based National enhancing the capacity of the Greater boundary. Congress Party (NCP) and the Nile Oil Pipeline. The link runs from the GNPOC oil production in Blocks 1, 2, Government of Southern Sudan’s Sudan fields to Port Sudan, on the Red Sea. 4, which include areas in Unity State, People's Liberation Movement (SPLM) “Despite serious efforts and many Southern Kordofan and Abyei, generated have been locked in unsuccessful productive discussions, [the delegates] around 175,000 barrels per day in 2009, negotiations over the control of Abyei. did not succeed in reaching an agreement down from an estimated 252,000 bpd in The area is to hold a separate referendum on the eligibility criteria for voters in the 2006. from the south, under which the two Abyei area referendum,” the NCP and Under the Comprehensive Peace dominant tribes in the area – the the SPLM said in a joint statement, Agreeement (CPA) of 2005, the oil Messiriya and Ngok Dinka – will decide quoted in the International Business produced in the country, over 80% of whether to throw in with Juba or Times. which comes from the south, was to be Khartoum. Statistics show falling production from shared equally between Khartoum and Despite frantic efforts last week, the the two fields, a situation that is likely to the Government of South Sudan. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 11. AfrOil 19 October 2010, Week 41 page 11 PROJECTS & COMPANIES Shell to launch Marsa el-Brega tender A new tender is close to being issued to has been operating for around 40 years – a new plant or upgrade. overhaul the Marsa el-Brega liquefaction it was only the second in the world to Libyan expectations about price are facility in Libya, according to a report in begin producing. It originally had a also likely to cause trouble, with a Upstream. capacity of 3.2 million tonnes per year previous tender being scrapped because A note from IHS Global Insight on but this has fallen to around 700,000 contractor quotes were around double October 14 picked up on the report but tonnes per year. NOC’s forecasts. warned that contractors remained The plant lacks the capacity to strip Leading contenders in the new tender, “sceptical and risk-averse” about liquid petroleum gas (LPG) from its Global Insight said, would be similar to operations in Libya. Global Insight feedstock, which restricts its exports to those from the previous effort, with reported Shell and Sirte Oil Co. (SOC) one destination – a Spanish regasification Italy’s Bonatti and the UK’s Petrofac. were close to re-launching the tender, facility run by Enagas. This problem Upstream suggested Greece's noting hopes from contractors that the would be tackled in the first phase of Consolidated Contractors Co. (CCC) project had been carved up into more work, Global Insight said. would also be interested in the deal. manageable packages. Shell’s deal with Libya also involves NOC’s failures with the Marsa el- Shell struck a bilateral deal to work on the company securing sufficient reserves Brega deal demonstrate wider problems the Marsa el-Brega plant in 2005 but to drive the construction of a new LNG with the Libyan regime and its attitude progress has been slow – hampered by facility, as well as new reserves for the towards investments and various Libyan bureaucracy and a lack of clarity existing plant. The note said Shell and fluctuations in the administration. about reserves. Problems at the plant SOC had not disclosed their exploration “Inflexibility and decision-making expose “the organisational problems results but quoted the two firms as saying paralysis have become permanent,” within the structures of the National Oil these had been “encouraging.” Global Insight said, noting the Corporation (NOC) and its subsidiaries,” Upstream quoted industry sources as “micromanaging of the sector from the Global Insight’s analyst, Samuel Ciszuk, saying there was uncertainty about what highest levels [at NOC], in what always said. Libya wanted from Marsa el-Brega – has been a very top-heavy The liquefied natural gas (LNG) plant whether it was to “patch things up,” build organisation.” Sonangol and PetroSA plot refinery joint venture Angola’s state-run Sonangol and South Although no other details were given, PetroSA. Africa’s PetroSA are looking at ways to both countries are keenly interested in “Angola briefed South Africa about its work together in the refining sector and developing new refining capacity. new oil exploration strategy, which will upstream. Angola’s oil ministry said in a Angola has been planning a large be approved at the end of 2010, statement, seen by Bloomberg, that the refinery in Lobito, with a capacity of providing an opportunity for PetroSA to two state energy companies were around 200,000 barrels per day, for take part in licence bidding,” a ministry contemplating setting up a joint venture years. The country’s only other refinery statement said. It said PetroSA wanted to to build and manage oil refineries. is a much smaller facility, with a import oil and liquefied natural gas “The parties are considering the maximum capacity of 41,000 bpd. (LNG) from Angola. possibility of creating a joint venture PetroSA has a refinery of similar size The two sides may sign a between Sonangol and PetroSA to at its Mossel Bay plant, although South memorandum of understanding (MoU) construct and manage refineries and Africa too has been crafting plans for a on energy issues when Angolan President finished petroleum products,” the much larger capacity plant, up to 400,000 Jose Eduardo dos Santos visits South ministry’s statement said. bpd, for some years. Africa, the ministry statement added, It follows recent talks between the two Angola’s oil ministry also said there although it did not specify when the trip sides in the Angolan capital, Luanda. were upstream opportunities too for would take place. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 12. AfrOil 19 October 2010, Week 41 page 12 NEWS IN BRIEF On October 14 the amended US$600 Global Issues Foreign investment million secured debt facility was closed hit by potential with Bank of Scotland, BNP Paribas, US official comments African state curbs Credit Agricole Corporate & Investment on AFRICOM International companies, such as Bank, HSBC Bank, ING Bank, Natixis, Societe Generale, Standard Bank, “Obviously, we’re seeing any number or ExxonMobil, Chevron and Tullow Oil, Standard Chartered Bank, and The Royal problems in the maritime areas around have tripled spending in sub-Sahara Bank of Scotland participating as Africa now. Everyone knows and talks Africa to US$30 billion per year in a mandated lead arrangers. The amended about piracy on the east coast. Yet that decade, finding twice the US’ remaining and increased debt facility will piracy probably only impacts 0.001% of reserves. The flow of cash is now at risk, supplement Tullow’s existing US$2.5 all shipping but it makes just about every though, as nations from Uganda to Ghana billion reserve based lend debt headline in the world when a major ship tighten control of the industry. Explorers arrangements, providing additional is taken. I think the reason that this face being stripped of licences or funding capacity and flexibility for the happens is the idea that pirates can get awarded less favourable contracts as group’s future capital programmes. away with taking major vessels and governments seek to reassert authority TULLOW, October 15, 2010 holding up the trade of nations in and out over their natural resources. There’s also of Africa, holding up food that’s so badly the challenge of operating in countries North Africa needed when countries are impacted by emerging from civil war such as drought, holding up oil that’s going Democratic Republic of Congo and Algeria to increase infrastructure around the horn and down the coast. Sierra Leone. “Governments are under Africa has been a great source not only much more pressure to make demands of of oil but of minerals to the rest of the an oil and gas companies in term of oil Algeria has been in a state of confusion world. Those shipping lanes need to be exploration and oil revenue coming into since the Sonatrach scandal at the safe, not only to help the rest of the the national coffers,” said Rolake beginning of the year. Only since world but to make the trade with Africa Akinola , a London-based Africa analyst September have some improvements prosper. Then I look over also on the at Eurasia Group. “That trend will only become visible. The government has west coast that we don’t talk about as continue.” Ghana blocked Exxon’s US$4 somehow restarted to implement the much. In fact the bunkering of oil on the billion bid to buy a stake in the country’s country’s oil and gas programme. The west coast is a bigger business and a Jubilee field from Kosmos Energy this launch of the third upstream bid round on more lucrative business than piracy on year. Tullow’s plans to start pumping September 2 was the first sign. The the east coast. It’s just less spectacular. from fields in Uganda with 1 billion round offered 10 contract areas across But it drains off Nigeria’s immense oil barrels of oil have been held up by a tax five onshore basins, with a total area of wealth. And of course in the end it makes dispute. Both countries are sets to just over 64,000 square km. Sonatrach oil prices go up for all of us around the become major oil exporter for the first has also resumed awarding projects. Late globe. There are the other issues that we time as discoveries are put into September, Sonatrach has awarded an are becoming increasingly worried about production. “Government interference in US$908 million contract to France’s of drug trafficking because here is Uganda and Ghana is a major concern,” Technip for the expansion and Africa, as Gen Ward indicated, small said Dougie Youngson an analyst at rehabilitation of Algiers refinery. Italian nations in some cases trying to cope with Arbuthnot Securities In London “This is company Saipem received an US$500 huge drug cartels. Drug cartels that all part of the pattern of operating in million contract to build a gas-oil probably have a larger GDP then some of Africa.” separation plant at Hassi Messaoud. The the countries. Individuals who are willing DAILY INDEPENDENT, October Algerian government has already delayed to offer bribes that are probably larger 14, 2010 a 2010 target to increase its gas exports than the country’s GDPs. So how do we to 85 bcm per year to 2014, and the help Africa deal with this and if we don’t Tullow secures chances of meeting the revised objective help Africa deal with this will there be a additional credit look as remote as ever. The North nexus between non-state actors, facility African country has also planned in the extremists and illicit trade,” said next five years to start new liquefied Ambassador Vicki Huddleston at a forum Tullow Oil has finalised and closed natural gas (LNG) terminals at Skikda in Germany, where AFRICOM is based. arrangements for an increase of US$350 and Arzew. It also plans to start the AFRICOM, October 15, 2010 million to its existing US$250 million Medgaz and Galsi pipelines which will corporate revolving credit facility, with pump gas to Spain and Italy the amended facility commitments now respectively. totalling US$600 million in aggregate. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 13. AfrOil 19 October 2010, Week 41 page 13 NEWS IN BRIEF Exports are somehow the lifeline of the sharply in 2009 because of the economic Iranian petrochemical products to these economy, but domestic demand is downturn, but Algeria expects demand to countries. Iran currently produces 25.8% showing strong growth too. Algeria’s recover over coming months. “World gas of petrochemical products of the Middle domestic demand for gas is expected to demand will improve from this year and East and 2.4% of global output. Iran more than double in the period 2009-18, next year,” Yousfi said, adding that plans to produce 44 million tonnes of from 25.5 bcm per year to 51-63 bcm per Algeria was on track to increase its petrochemicals by the end of the year. year, according to figures from the state production capacity by another 10 bcm TEHRAN TIMES, October 14, power regulator. With the current per year over the next few years. 2010 projects and infrastructure, this goal will REUTERS, October 14, 2010 not be met. Existing projects have also Waha Oil announces been delayed. Projects such as Reggane Crosco to provide oil find in Sirte Basin Nord field have not been approved yet. drilling for INA in Waha Oil Company has reported that it No real steps have been taken to bring Egypt has drilled the 6Q1-59 New Field West African gas into the Algerian CROSCO Integrated Drilling & Well Wildcat well to a total depth of 9,227 pipeline system. Services is pleased to announce the feet. The well is located in the Sirte MEED, October 15, 2010 provision drilling services for INA Basin approximately 80 kilometers Algeria: LNG Industrija Nafte in Egypt. Drilling southeast of Marada Town. The initial capacity to recover services are being provided with production testing from Lidam and Lower Beda flowed at 1,080 bpd of 41 in months CROSCO 2000 HP drilling rig Emsco 602 (Emsco C-2II) on exploration well degrees API crude oil and 0.86 million Algeria's LNG production capacity El Neamma, East Yidma concession. cubic feet of gas per day, and 1,704 bpd should return to normal in a few months Petar Vuckovic, General Manager of of 36 degrees API crude oil and 0.025 after an accident cut capacity by as much CROSCO’s Egyptian branch, stated, million cubic feet per day of gas as 20%, Algerian energy minister Youcef “CROSCO is pleased to again be respectively. Waha Oil Company (WOC) Yousfi said. Algeria is one of the world's providing drilling services for INA in is owned by National Oil Corporation biggest LNG exporters, with a capacity Egypt with CROSCO drilling rig Emsco (NOC) in a joint venture with three US of 30 billion cubic metres per year, but 602. Meanwhile, CROSCO has available companies, namely ConocoPhillips, output has dropped due to a problem with in Egypt a second CROSCO 2000 Marathon and Hess. These companies are one of its facilities, he said ahead of an drilling rig, Emsco 605.” now back working as partners since Jan OPEC oil exporters' meeting in Vienna. CROSCO, October 13, 2010 2006 after having left in 1986 when it “We had [LNG] capacity destroyed due was known as Oasis Oil Company. to an accident,” he said, adding that the Iran exports first NATIONAL OIL CORPORATION, capacity lost was equivalent to around 5- petchem October 17, 2010 6 bcm per year. He did not say when the consignment to Total Libya Egypt problem occurred or give a more exact timeline for when it might be fixed. LNG announces market analysts Waterborne said last The managing director of Iran resumption of drilling week Algerian production fell to its Petrochemical Commercial Company for oil in 2011 lowest level this year in September. Reza Hamzehlou stated that Iran has Algeria has been sending a lot of its LNG exported its first consignment of The executive director of the French oil to European countries since buyers in the petrochemical products to Egypt as part company, Total E&P Libya, Stephane US lost interest in imported gas because of a new agreement with that country in Michel, has announced the resumption of booming North American shale gas. this field. The final stages of negotiations drilling of oil by the company in 2011. But a new pipeline from Algeria to Spain between Iran and Egypt were going on He told PANA in an interview in Tripoli is expected to open in the next few for exporting five main petrochemical that this would begin in Al-Jorf in the months, delivering up to 8 billion cubic products including polypropylene, urea southeast of the country. Michel said metres per year of gas to Europe's top fertiliser, methanol, polymer grades and Total E&P Libya had investments in LNG importer. Analysts say this Medgaz parazyline. All of Africa has a share of Akakos field in the south, which pipeline could further boost the LNG only 1% of Iran's petrochemical exports. produced more than 300,000 bpd. He available on an already well supplied In addition, talks have started in the added that the company was also global market and that lower Algerian ALBA region (Latin America) with carrying out exploration at Cyreniaca in LNG exports could temporarily temper countries such as Venezuela, Ecuador, eastern Libya and offshore in the oversupply. European gas demand fell Bolivia and Brazil for the exportation of south. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 14. AfrOil 19 October 2010, Week 41 page 14 NEWS IN BRIEF Michel said Total E&P Libya would failure by both delegations, who had autonomous region will be protected if contribute to develop the country's huge convened in Addis Ababa on October 4. southerners vote for independence in a oil potential. He noted that Total E&P More talks are scheduled to begin in the January 9 referendum. “The largest Libya has been operating in the country Ethiopian capital Oct. 27, but neither side investment in South Sudan today is for more than 50 years and today, it is has shown any real signs of being ready Chinese. They have invested billions of carrying out exploitation activity to budge. dollars in the oil sector, and have a large offshore Al-Jorf and an onshore field at BUSINESS INSIDER, October 15, number of Chinese workers in the Mabrouk, which are exploited directly by 2010 oilfields,” said Pagan Amum, secretary Mabrouk Oil Corporation, a joint venture general of the south's ruling Sudan between Total E&P Libya and the Oil region will decide People's Liberation Movement (SPLM). National Oil Company (NOC). Sudan's future “We have given assurances to the PANA, October 14, 2010 Chinese leadership delegation to protect The future of Sudan, Africa's largest the Chinese investments in southern Sudan faces oil country and one widely expected to split Sudan, and are desirous to see more production problems in two in a planned national referendum investment in the future,” he further said. in January, lies in the oil-rich region of Amum made these remarks to the Didiri Mohammad Ahmad, a senior Abyei that straddles the ill-defined Agence France Presse after a meeting official in Sudan’s ruling National border between north and south. The with a delegation from the Chinese ruling Congress Party (NCP), said October 14 prospect of renewed civil war between Communist Party on Friday. Anne Itto, that there was not enough time to prepare the Arab Muslim north and the largely south Sudan's minister of agriculture, and for the Abyei referendum, currently Christian and animist south looms as the SPLM deputy secretary general told scheduled to occur on the same day as two sides struggle for control of Abyei, reporters after her return from China last the referendum on Southern Sudanese which many believe could be the trigger August that the Chinese government independence, January 9, 2011. At the for further bloodshed. “The centrifugal fears that its assets in Sudan's oil would same news conference, Sudanese forces pulling apart the country for a be “a waster” if the south opts for Minister of International Co-operation generation are accelerating,” warned secession. Jalal Yousuf al Digair said the Andrew Natsios, a former US special SUDAN TRIBUNE, October 15, government would be open to a proposal envoy to Sudan now at Georgetown 2010 to delay the vote, in which residents of University, Washington. The south as a Abyei will decide whether to become whole is expected to vote West Africa part of Southern Sudan, by a few months. overwhelmingly for separation in KBR to execute Neither statement is tantamount to an January but without a plebiscite in Abyei official request from Khartoum that the the southern referendum will be referendum be postponed, but they will meaningless. Some 75% of Sudan's design for Total’s send a message to the semi-autonomous proven oil reserves of 6.3 billion barrels CLOV FPSO government of Southern Sudan in Juba lie in the south. However, the pipeline KBR has been awarded a contract to that such a demand may be just around that pumps the crude to export terminals execute the topsides detailed design for the corner. Juba has repeatedly linked the and refineries run through the north, TOTAL’s CLOV floating production, Abyei referendum to the larger vote on which leaves the south dependent on storage and offloading (FPSO) unit. This Southern Sudanese independence, saying Khartoum to sell the oil. Sudan produces project is the fourth development pole in that the January 9 date for each poll is 500,000 barrels of oil a day, earning Angola’s deep offshore Block 17, after sacrosanct. Southern Sudanese leaders about US$8 billion for the southern Girassol, Dalia and Pazflor. Located fear that allowing a delay in Abyei, government since 2005 and US$13 approximately 140 km from Luanda and which still does not even have a billion for Khartoum, which keeps all the 40 km northwest of Dalia in water depths referendum commission, less than three revenue from oil fields in the north. ranging from 1,100 to 1,400 metres, the months before the referendum date UPI, October 15, 2010 CLOV development will lead to four would set off a chain of events that could see the more prominent referendum SPLM gives fields – Cravo, Lirio, Orquidea and assurances on Violeta – coming onstream. being put off as well. Ahmad’s and al Digair’s remarks come only two days Chinese oil investments in South after the latest series of Abyei talks between the NCP and Southern Sudan’s ruling Sudan People’s Liberation South Sudan's ruling party reassured Movement (SPLM) were declared a China that its investments in the semi- Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 15. AfrOil 19 October 2010, Week 41 page 15 NEWS IN BRIEF In collaboration with Daewoo education and economic development. Shipbuilding & Marine Engineering GDF pushing The fact-finding team was in Liberia to (DSME) – the engineering, procurement, Cameroonian LNG explore public programmes Chevron installation and construction contractor plan could support. No further details have for the project – KBR will execute the been given. detailed engineering of topsides for the A top executive at French energy giant ALL AFRICA, October 15, 2010 project, which is estimated to produce GDF Suez SA(GSZ.FR) has met with reserves of approximately 500 million Cameroonian President Paul Biya to push NOCAL approves barrels of oil. The facility will be for approval of the construction of a Simba PSA designed to process approximately liquefied natural gas plant in the Atlantic coastal town of Kribi. "We came to Simba Energy is pleased to announce 160,000 barrels per day of oil, 230 Cameroon to show the progress made so that the National Oil Company of Liberia million cubic feet per day of natural gas, far on our LNG project. "Meeting the (NOCAL) has issued its formal and have a 1.8 million barrels of oil head of state was aimed at securing his acknowledgment confirming receipt of storage capacity. “KBR’s continuing support to enable us realize this project," the Company’s Application to convert its relationship with DSME has given us the the president and CEO of GDF Global current Hydrocarbon Reconnaissance opportunity to be part of one of the LNG, Philippe Olivier, told reporters Licence NR-001 into a production- newest major oil & gas projects in the Tuesday after holding talks with sharing agreement (PSA). Robert African region,” said Roy Oelking, President Biya. In 2008, GDF Suez Dinning, CEO of Simba, said: “We are President, KBR Oil & Gas. “KBR is reached an agreement with the Cameroon pleased to reach this important milestone among the world’s leaders in the design government-owned National with the submission of our detailed PSA of complex FPSOs, designing more units Hydrocarbons Corp. to explore for LNG application to the National Oil Company than any other engineering contractor or in Kribi, located some 300 kilometers of Liberia (NOCAL) to convert our fabricator in the market today. We look southwest of the capital, Yaounde. Hydrocarbon Reconnaissance Permit, forward to applying our extensive "We're satisfied and comforted by into a PSA.” Dinning added: “We view experience in FPSO engineering to President Paul Biya in putting the recent interest in the area directly successfully execute the topsides design Cameroon LNG project on the rails," offshore in Liberia by Chevron, one of for TOTAL’s CLOV development.” Olivier said. the world’s leading oil companies, as KBR, October 14, 2010 DOW JONES, October 13, 2010 being very positive both for the company Angola plans 2011 and for oil and gas prospects in Liberia licence round Chevron steps up generally. The increased activity offshore Liberian fact finding in Liberia with Chevron acquiring three Angola is expecting big investments in large blocks has increased the its oil industry going into 2013. A senior African news sources report that a team exploration activity dramatically in the government official said that the country from Chevron has concluded a fact- area with five offshore wells planned by expects its oil industry to attract US$50.6 finding mission in Liberia, following up mid- year in 2011.” billion in investment between last year its sealing of a three-year oil exploration SIMBA ENERGY, October 13, and 2013. Part of that investment will deal with the government of President 2010 come from a licensing round. The round Ellen Johnson. In a statement to the has been postponed a couple of times, press, Chevron has said it plans to open Taoudeni tests under but an official said that it will take place an office in Liberia this year and will way in 2011, according to Platts. The begin exploration activities in the third quarter of 2011. The company is France’s Total is reported to have started government will offer up 10 blocks. The currently making preparation to drill its production testing hydrocarbons in the blocks include Onshore Cabinda Centro, first offshore well. The deal, which was Taoudeni basin, where the French oil onshore Kwanza blocks KON 11 and 12, announced in August and later ratified by group Total announces the start of its Block 9 in shallow water, deepwater the Liberian National Legislature, is phase "test" production of hydrocarbons. blocks 19, 20, and 21 in the Kwanza potentially worth U$10 billion. Chevron The company, which has been invested Basin, and newly designated ultra- has a 70% interest in three offshore, since 2005 in onshore oil exploration in deepwater blocks 46, 47, and 48 in the deepwater concessions. Chevorn officials Taoudeni after the signing of production Lower Congo Basin. stated that the operation was “promising” sharing contracts with the Mauritanian PETROLEUM AFRICA, October and that Liberians could reap benefits state, started exploration drilling in 2009 18, 2010 from Chevron's corporate social and the results raised many hopes. responsibility efforts, focusing on health, Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 16. AfrOil 19 October 2010, Week 41 page 16 NEWS IN BRIEF Although hopes are on the up, with operator of the block, to complete all innocent persons on ridiculous offshore production falling from 75,000 studies needed for further exploration. insinuations and unrelated evidence, we barrels per day in 2007 to a static level of Last month, ERHC supported Sinopec have decided to carry out another attack 10,000 bpd, Total seems to have Corp., ERHC’s technical partner, in in Abuja without altering our mode of preferred prudence and kept quiet on its applying to enter into Exploration Phase operation to proof the suspects work. Nevertheless the first hole appears II pending the completion of the studies. innocence. As usual we will give a thirty to have detected the presence of Instead, agreement was reached with the minutes advance warning to avoid hydrocarbons. Total has just completed JDA to further extend Exploration Phase civilian casualties then sit back and drilling in the Ta8 block, northeast of I to enable completion of the studies watch how the blame game will be Ouadane, according to information before commencement of Phase II. A played out on all those already falsely provided to the president of Mauritania. similar decision to extend Exploration accused. An Arab investor, Qatar Petroleum Phase I in JDZ Blocks 3 and 4 was JOMO GBOMO, October 16, 2010 International is also interested in the announced in September. drilling as it has a stake in the block. ERHC, October 14, 2010 Exile delays Akepo Total did not provide information on the production reserves or the potential cost of MEND issues bomb warning Junior oil and gas explorer Exile production. In a statement relayed by the Resources said use of a new, cheaper Mauritanian News Agency, the head of In an obvious attempt to intimidate method to ship crude oil will lead to a Total said: “We will return in the coming anyone opposed to the presidential delay in first production at its Akepo days, in the testing phase, to measure the ambition of Goodluck Jonathan, the field development project in Nigeria. quality and quantity of hydrocarbons.” It Nigerian government, hiding under the Toronto-based Exile Resources said will take several weeks, the Total official cloak of terrorist hunters, have been crude oil from the Akepo-1 well will now said, to learn about the oil potential in witch-hunting, falsely accusing and be produced via a permanent pipeline to Taoudeni . The announcement of this harassing its perceived opponents. A a nearby onshore facility, eliminating the production test drilling on Ta8 was made perfect opportunity emerged on October need for an early production system. The after a hearing that the president gave to 1, 2010 after the Movement for the company, focused on the development of Jean-Francois Arrighi de Casanova, Emancipation of the Niger Delta the Akepo oilfield in the shallow water director of Total North Africa. (MEND) detonated car bombs in a Niger Delta, had earlier considered using POINTS CHAUD, September 30, symbolic attack in Abuja for which we a shuttle barge to ship crude oil to a 2010 reaffirm responsibility but with regrets to nearby off-take facility. The permanent Contract extension the avoidable loss of lives. The pipeline will cost roughly US$11 per for FPSO Sendje government of President Goodluck barrel, compared with a shuttle barge that Jonathan responded by arresting innocent would have cost US$50 per barrel, the Berge persons on trumped-up charges, linking company said in a statement. Addax Petroleum Exploration, part of the them with the attack. From Chief REUTERS, October 19, 2010 Raymond Dokpesi, which indirectly was BW Gas, Marubeni Sinopec group, has exercised the remaining two years of options for the pointing at former military head of state, FPSO Sendje Berge. The firm period has General Ibrahim Babangida, to Henry join forces for LNG been extended until March 2013. The Okah in South Africa, the government venture FPSO is operating on the Okwori field, has also named and arrested persons not connected with our actions as suspects The joint venture will see Marubeni offshore Nigeria. and masterminds. The South African invest close to US$710 million for their BW OFFSHORE, October 11, government is playing an obviously stake. The eight LNG vessels were 2010 partial role over the Independence Day delivered from 2004 to 2008 and have JDA grants JDZ Bombing in it’s handling of the Henry since delivery been chartered by Nigeria extension for Block 2 Okah angle because the Nigerian LNG, a joint venture comprising Shell government has threatened to nationalise Gas, Total LNG Nigeria, Eni ERHC Energy announced that the Joint the South Africa communication giant, International together with Nigeria Development Authority (JDA) has MTN if the country does not follow a National Petroleum Corp. (NNPC). The approved a six-month extension of devious script. Since the court in South vessels have been engaged in LNG Exploration Phase I in Joint Africa has turned into a Kangaroo one transportation from Nigeria to Europe Development Zone (JDZ) Block 2. The that is scandalously biased, and both and USA under long-term 20 year extension will enable Sinopec Corp., the governments are bent on blaming contracts. Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 17. AfrOil 19 October 2010, Week 41 page 17 NEWS IN BRIEF This is Marubeni’s first investment in governor said that the accountants must production in the area, which includes LNG vessels. Marubeni envisions the ask the question for the sake of the poor, about 30 wells with a production energy supply chain including LNG adding that people must resist practices capacity of approximately 50,000 barrels transportation as one of its core growing that make other people poorer in the of oil equivalent per day, is currently business fields. name of subsidy. He said: “As shut down awaiting completion of repairs BW GAS, October 11, 2010 professional accountants, you cannot to an export pipeline damaged in late afford to sit on the fence without asking 2008. PENGASSAN issues probing questions on ways and manner THIS DAY, October 18, 2010 ExxonMobil nation's resources are being managed by ultimatum people entrusted with them.” He blamed Militant students the management of NNPC for shrouding threaten to target Chevron operations There are strong indications that workers its affairs in secrecy. “Nigerians do not of Mobil Producing Unlimited may know how much crude oil the country Thursday begin an indefinite strike over produces because we don't have the Nigerian sources report that as a fall out alleged non-compliance of management mechanism to monitor what we produce. of alleged non-absorption of some to the National Content Act and other NNPC is extremely economical with the participants of the Chevron Nigeria applicable laws on expatriate staff as truth. If you have no control of Limited’s sponsored Vocational Training well as systematic easing out of transparency in a sector that produces Programme (VTP), two separate groups, Nigerians from the company. Vanguard 80% of your revenue, then corruption Movement for the Development of gathered that under the aegis of the cannot be ruled out,” he said. He said Unemployed Graduates (MODUG) and Petroleum and Natural Gas Senior Staff NNPC has become so powerful that it the Ndokwa Solidarity Front (NSF), have Association of Nigeria (PENGASSAN) deducted any amount realised from crude threatened to disrupt activities of the oil the aggrieved workers had about two oil sales and handed what it felt like company in Warri and Port Harcourt. weeks ago, issued a 21-day ultimatum to handing to the Federation Account VTP, introduced by Chevron three years the management of the upstream oil giant without anyone raising question. ago to train Nigerian graduates on oil and to among others, comply with National DAILY TRUST, October 13, 2010 gas skills for employment in the Content Act and other applicable laws on company, is currently generating some expatriate staff and halt the systematic NNPC, Shell head for bad blood between the organisation and easing out of Nigerians from the collision over three over 30 trainees in the programme as the oil blocks company or risk indefinite industrial trainees alleged breach of contract and unrest. The ultimatum, Vanguard abandonment by the company. gathered, will expire this Thursday and Controversy has stalled the 10 month-old GUARDIAN, October 17, 2010 there is no indication that management is process by Shell Petroleum Development ready to address the grouse of the Company (SPDC) to transfer ownership WAGP agreement workers. and operatorship of three oil blocks to a signed Nigeria VANGUARD, October 12, 2010 consortium of two Nigerian companies, Nigerian Minister of Foreign Affairs THISDAY has learnt. SPDC in January Oshiomhole asks this year said it had sealed a deal to Odein Ajumogobia has signed an accountants to probe agreement with the West African Gas transfer, within six months, its interest in Pipeline Authority. Ajumogobia said the NNPC the three production licences and other signing of the agreement indicated that related equipment in the Niger Delta to a The Edo State governor has challenged with the headquarters located in Nigeria, consortium led by two Nigerian chartered accountants in the country to staff of the authority would enjoy companies and a French firm. The Anglo investigate the activities of the Nigerian diplomatic privileges and immunities Dutch company is the operator of the National Petroleum Corporation (NNPC) such as duty waivers in Nigeria. He also licences under a joint venture between to find out the country’s benchmark of indicated that it was more than symbolic the Nigerian National Petroleum fuel production and the level of supposed because it represented a fulfilment of a Corporation (NNPC) with 55%, Shell subsidy claimed to have been provided. promise made to the four countries. The with 30%, Total Exploration & Adams Oshiomhole made the remarks West African Gas Pipeline Authority was Production Nigeria with 10 per cent and yesterday in Abuja at the opening established in May 2003, to regulate the Nigeria Agip Oil Company (NAOC) with ceremony of the 40th Annual activities of the gas pipelines of the four 5%. It said the agreement covered Shell's Accountants' Conference with the theme: countries involved: Nigeria, Ghana, 30% interest in OMLs 4, 38 and 41, “Nigeria at 50: Economic Development Benin Republic and Togo. covering approximately 2,650 square km and socio-political stability.” The in the northwest Niger Delta. Crude oil Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 18. AfrOil 19 October 2010, Week 41 page 18 NEWS IN BRIEF The minister also said: “the agreement is conditions. The case has brought an to guide all countries involved on how to Imports cost Nigeria angry reaction in Zambia, where Chinese operate. It is governed by Nigerian US$16 billion businesses have invested heavily. Police laws.” The director-general of the say the miners had been protesting Nigeria is currently losing over US$16 authority, Debo-K’mba Barandao, said against poor working conditions at the billion with the import of equipment and the signing of the agreement was an Collum mine on Friday when the facilities in the oil and gas industry. The important milestone in the history of the managers opened fire at random. latter also includes payments for the West African Gas Pipeline project. The BBC, October 18, 2010 services of foreign technical personnel. authority is charged with the responsibility of regulating the activities Muttaqha Darma, executive secretary to East Africa Nigeria’s Petroleum Technology of the West African Gas Pipeline project Cove closes offshore Development Fund, the amount on behalf of all the four countries. represents about 90% of the over US$18 Construction work on the project started in 2005. At present, all the pipelines had billion spent per year by stakeholders in deal in Kenya the industry. Determined, however, to Cove Energy has received consent from been laid from Lagos beach to Ghana. To reduce the amount being spent on the the Kenyan government, including all start operations, it will take some small importation of facilities and payment of necessary permissions and approvals, for measures, such as the fact that the foreign personnel in the oil and gas its acquisition of a 15% participating compressor station in Lagos is not yet sector, the PTDF is stepping up its interest in the Production Sharing ready. The initial cost of the project was training and research efforts. The PTDF Contracts (PSCs) covering five US$700 million, but owing to delays arrangement is to ensure that within the contiguous deepwater blocks L5, L7, encountered along the line, the project next five years, the Fund would have L11a, L11b and L12, offshore Kenya. would now cost about US$1 billion. trained over 20,000 Nigerians to occupy The latter is being acquired from GUARDIAN, October 15, 2010 various positions in the industry as Dynamic Energy Exploration & New Nigeria licence petroleum engineers, geo-scientists, geo- Production Corporation (DEPCO). In its round expected in physicists, chemical engineers and report, the company stated that the process engineers among others. 2010 According to him, “over 90% of all acquisition is now unconditional and the transfer of the Interests by DEPCO'S Nigerian Minister of Petroleum Diezani goods and services used in the industry subsidiary, Dynamic Global Advisors Allison-Madueke has said a planned oil that spends more than US$18 billion Kenya, to Cove's wholly owned affiliate, licensing round and the passage of wide- annually are imported from overseas. Cove Energy Kenya, has been ranging legislation to overhaul the energy The consequence is that Nigeria cannot completed. The deal includes several sector would take place this year. “The be said to be deriving maximum benefits blocks, holding an area of 30,682 square oil licensing rounds will take place in from its oil and gas industry in terms of km, which is nearly three times the size Nigeria before the end of the year. The employment, technology transfer and of Cove’s Area 1 Offshore Mozambique energy bill will be passed well before the impact on their well being.” block. The new interests are located over end of this year,” she told reporters ahead PUNCH, October 15, 2010 an extensive Kenya deepwater zone from Southern Africa of an OPEC meeting. Allison-Madueke the Somalia border in the north to said the nation’s oil production was Tanzania in the south. Several running at around 1.9 million barrels per hydrocarbon play types within the blocks day and that the country would do Chinese bosses have not yet been tested before in Kenya. nothing to disrupt current market charged over Cove Energy indicated that the plays are stability, which she hoped would Zambian mine similar to those that have been shooting continue well into next year. Asked about successfully explored by Cove and its the possibility of Nigeria raising partners in Rovuma Offshore, including production, she said: “We would do Police in Zambia have charged two Upper Cretaceous and Tertiary nothing to disrupt the current stability. Chinese mine managers with attempted deepwater fan systems. During 2011, We are very hopeful stability will murder after they allegedly opened fire Cove, in co-operation with the operator, continue well into 2011.” on a group of miners. At least 11 workers Anadarko Kenya Company, is to work on BUSINESS DAY, October 15, were injured in the incident at the Collum a 3-D seismic survey, to be followed by 2010 coal mine in the southern town of potential drilling in 2012. Sinazongwe. The owners were reported COVE ENERGY, October 13, to have felt threatened by the miners 2010 during a protest about their pay and Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 19. AfrOil 19 October 2010, Week 41 page 19 NEWS IN BRIEF mining department.” ABG, which is 75% quarter alone indicate some surprises, No objection to owned by Barrick Gold, suspended more which further attest to the fact that new Beira-Malawi pipeline than 40% of the mining department – 60 markets are finding Uganda attractive,” employees and a number of contractors – said Bitature. He said Ugandans continue Mozambique's Minister of Energy owing to fuel theft. The suspension has to be the leading investors in the country. Salvador Namburete has said the country delayed mining of higher grader ore and “Ugandan investments continue to be the is open to the Malawian initiative to forced the company to process low-grade leading source of investment for the build an oil pipeline from the central stockpiles. The incident will reduce full- quarter with 40 projects, worth a planned Mozambican port of Beira to Nsanje, in year production at the company’s investment value of US$178.1million, southern Malawi. Namburete was Buzwagi mine by about 30,000 ounces. envisaged to create 11,338 jobs,” reacting to reports from Malawi that the WSJ, October 14, 2010 Bitature further noted. On a quarterly Malawian government has launched an basis, the third quarter of the year had 93 international tender for the construction Tullow criticised on planned projects, an investment value of Block 3A deal of a pipeline that would pump petrol, US$339.7 million and 15,307 jobs. diesel and kerosene. The estimated cost EAST AFRICAN BUSINESS of such a pipeline is US$140 million. The Ugandan government should take WEEK, October 18, 2010 Although the pipeline would run for away Block 3A from Tullow Oil due to hundreds of kilometres through the irresponsible manner with which they Swiss study urges Uganda to build oil Mozambican territory, the Mozambican have conducted themselves in the authorities were not consulted about the ongoing oil transaction. Based on the launch of the tender. Nonetheless, reports I have read, said Rachel Ssebide, refinery Namburete told the daily paper Noticias the company evidently took a huge Support for an in-country oil refinery has that the initiative is welcome, and that commercial and financial risk buying out gained momentum following the the Mozambican government is fully Heritage's assets in Uganda without the presentation of a feasibility study report open to a dialogue with the Malawians consent of the Government. This to the Uganda government this month by on the matter decision taken by the Tullow CEO Aiden Swiss engineering company Foster MOZAMBIQUE INFORMATION Heavy and his top management has Wheeler. Nationalists in the government AGENCY, October 11, 2010 plunged Uganda into a tax dispute that have been insisting the country’s oil be could have been easily avoided. Given ABG cuts mining processed locally, while the oil that the license for Block 3A, which companies have let it be known they plans on Tanzanian Heritage wanted to sell was set to expire prefer a refinery in Mombasa and an fuel theft in September effectively meaning export pipeline for surplus crude. The Heritage would have been forced to Swiss consultants’ report shows that an UK-listed African Barrick Gold on accept the governments terms as the oil refinery inside Uganda would create Thursday lowered its full-year gold deadline approached. many spin-offs for the domestic economy output forecast after it said it was forced EAST AFRICA BUSINESS WEEK, in the form of direct employment and to suspend a large portion of its mining October 11, 2010 secondary industrial activities. While oil department due to the discovery of Uganda secures companies want crude exports because systematic on-site fuel theft. The they can thus recoup their investment company is now anticipating full-year US$1 billion of FDI in faster, the Norwegian funded study nine months gold production on a par with the shows that Uganda would be saving over 716,000 troy ounces of gold produced in US$1 billion annually if it were to build 2009, marking a second downgrade to its Uganda has registered a steady flow of its own oil refinery and the economy full-year production forecast since the foreign direct investments (FDI) since would gain from the refining process company was listed on the London Stock the year begun, Uganda Investment through creating employment Exchange in March. “We have recently Authority board chairman Patrick opportunities and taxes. The Ministry of uncovered an organised and systematic Bitature disclosed last week. Statistics Finance has said it should be possible to onsite fuel theft which has impacted released by UIA indicate that for the last develop the refinery at Hoima, not from production at Buzwagi,” the company three quarters of the year, January to its own coffers but with external funding, said, referring to its Tanzanian gold September 2010, a total of 263 projects which was the least of the problems, an mine. “Investigations into this matter were registered. These projects were to official said. indicate that criminal fuel theft invest about US$1.2 billion and create THE EAST AFRICAN, October 18, syndicates have widely infiltrated our 65,476 jobs. “Statistics for the last 2010 Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 20. AfrOil 19 October 2010, Week 41 page 20 COURSES Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 21. AfrOil 19 October 2010, Week 41 page 21 CONFERENCES Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 22. AfrOil 19 October 2010, Week 41 page 22 CONFERENCES Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 23. AfrOil 19 October 2010, Week 41 page 23 CONFERENCES Copyright © 2010 NewsBase Ltd. www.newsbase.com Edited by Ed Reed All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
  • 24. AfrOil 19 October 2010, Week 41 Back Page NEWSBASE INFORMATION HEADLINES FROM A SELECTION OF NEWSBASE MONITORS THIS WEEK CUSTOMERS INCLUDE Oil and Gas Sector AsianOil Petronas’ net profit soared 60% year-on-year in the first quarter of the financial year that ended on June 30. ChinaOil CNOOC has signed a four-year LNG supply agreement with GDF Suez worth more than US$1 billion. EurOil Offshore activity on the UK Continental Shelf (UKCS) dropped by 20% during the third quarter of 2010. FSU OGM Ukraine and Russia may set up a joint gas company without merging Gazprom and Naftohaz. LatAmOil PDVSA has issued US$3 billion worth of bonds. MEOG Iran has given the green light on a project to build the country's first private oil refinery. NorthAmOil The moratorium on deepwater drilling in the Gulf of Mexico has been lifted. Unconventional OGM The drilling techniques behind the US shale gas boom are unsustainable, according to Schlumberger’s CEO. For further details on the stories above and NewsBase’s entire product range: tel: +44 (0) 131 478 7000 e-mail: news@newsbase.com Copyright © 2010 NewsBase Ltd. www.newsbase.com