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Latest news, analysis and commentaries on oil & gas industry in Africa - countries, companies, projects and contracts. Published by NewsBase since 2003, being read in 86 countries worldwide.

Latest news, analysis and commentaries on oil & gas industry in Africa - countries, companies, projects and contracts. Published by NewsBase since 2003, being read in 86 countries worldwide.

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AfrOil - oil & gas news for Africa AfrOil - oil & gas news for Africa Document Transcript

  • 22 January 2013 AfrOil Week 03 Issue 473 News Analysis Intelligence Published by AFRICA OIL & GAS MONITOR NewsBaseCOMMENTARY 2 NEWS THIS WEEK… Algeria crisis The In Amenas attack 2 Nigeria takes Qua Iboe crunch 4PIPELINES & TRANSPORT 5 Algiers demonstrated its willingness to engage terrorism last week in its response to the In Tender issued for Kenya’s new pipeline 5 Amenas assault, but can the country keep its South Sudan remains keen on pipeline to Kenya 5 facilities – and workers – safe? Piracy threat increasing in West Africa 6 Algeria has committed to providing more security for its facilities, as has Libya, which could wellINVESTMENT 6 face similar attacks. (Page 2) Perenco signs Cameroon exploration contract 6 East African linksPERFORMANCE 7 South Sudan is still casting around for export Eni confirms Sankofa find with appraisal options, while Kenya is re-tendering a long- well 7 planned products pipeline. Somaliland aspires to oil future 8 Frost: South African shale gas years Kenya has taken a first step in tendering a pipeline away 8 from Mombasa to Nairobi, which was to have been worked on by Libya’s Tamoil. (Page 5)POLICY 9 Griffiths charged with Chadian A South Sudanese official has reiterated interest corruption 9 in an export pipeline through Kenya, but this will be an expensive proposition. (Page 5)PROJECTS & COMPANIES 9 Pura Vida signs up Gabonese block 9 South African shale Liberian 3-D seismic under way 10 Frost & Sullivan believes the shale resource of theNEWS IN BRIEF 11 Karoo Basin will not be commercially produced forCONFERENCES 21 at least seven years. (Page 8)For analysis and commentary on these and other stories, plus the latest oil and gas developments, see inside… Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 2 COMMENTARYThe In Amenas attackAlgeria has weathered the last few years in relative calm, but the assault last week on theIn Amenas joint venture was a shocking reminder of both local and regional problemsBy Chris Moghtader and Ed Reed The terrorist strike, and its response, ran for four days and led to an estimated 70 deaths French intervention in Mali and insecurity in the Sahel have been pointed to as motivating factors Algeria and Libya have responded with assurances of additional security forces for energy facilitiesThe attack on Algeria’s In Amenas gas to reports, attackers told locals and Cameron went on to praise thefacility began with the ambush of a bus Muslims that they would not be harmed, Algerian response and said thecarrying workers and ended with a death and that they were targeting Westerners responsibility for the deaths “liestoll said to be more than 70 – raising and Christians. squarely with the terrorists.”fresh concerns about security in the Sahel The Jamestown Foundation reported As of January 20, BP said four of itsregion. that responsibility for the attack was also workers were still missing and that it had Details of the assault are still emerging claimed by a rival group, Katibat al- 18 employees at the facility when thebut it seems the January 16 dawn ambush Mulathamin – which it translated as attack began. The company said it hadon the bus led to the deaths of an Brigade of the Wearers of the Veil. evacuated non-essential staff from Inexpatriate worker and an Algerian Salah, Hassi Messaoud and othersecurity guard. The attackers, who appear Grim tally locations and that the security situationto have been members of Mokhtar At the time of the attack there are was under “close review.”Belmokhtar’s al-Muaqioon Biddam – thought to have been around 800 workers Statoil released the name of fivewhich can be translated as Signed in at In Amenas, of whom 135 were employees still missing on January 20,Blood – brigade, then stormed the expatriates. Figures provided by the UK noting that it had 17 workers at the plantTigantourine plant, taking a number of government suggest at least 12 workers at the time of the assault.hostages. are dead and another 20 missing – and A statement from Sonatrach on It appears the kidnappers attempted to the same source repeated Algeria’s January 20 “condemned and deplored”move some of their hostages on January statement that 37 foreign hostages had the terrorist attack on Tigantourine and17 but the Algerian army attacked with a been killed. Over 30 terrorists had died, offered condolences to its partners andhelicopter gunship, leading to the death UK Prime Minister David Cameron said, the Algerian army for the dead, but didof between 20 and 40 people. Both but a “small number” are in Algerian not provide information on the status ofkidnappers and kidnapped died in the custody. its workers.Algerian assault. The Algerian armycarried out a finalassault on January 19.Algerian PrimeMinister AbdelmalekSellal, on January 21,said 37 foreignworkers were believedto have died. Sellalalso said 29 militantshad been killed andthat three had beencaptured. Around 680Algerian workers andmore than 100expatriate workerswere freed, accordingto Algiers. According Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 3 COMMENTARYInsecurity Insecurity in neighbouring Mali, Niger “The country is therefore the latestThe attack has been widely linked to a and Libya, combined with weak to non- candidate to be added to the long list ofFrench decision to send a military existent border control throughout the countries at risk from political turmoil inintervention force to help resolve the region, while a deluge of arms and the MENA region and could underpin theongoing crisis in northern Mali, which military equipment left over from the geopolitical risk premium further.”began on January 11. The militants Libyan conflict, have left Algeria Algerian exports to Italy fell to 60-65themselves reportedly called for a French increasingly exposed. million cubic metres on January 17, fromwithdrawal as one of their demands for Attacks against the energy industry normal levels of 70-75 mcm per day,the release of hostages. However, given have been only sporadic in recent years Reuters reported.the scale of the attack, at more than 1,000 in Algeria. Where they have occurred, RBC Capital markets said BP andkm from Mali itself, it seems unlikely they have tended to target vehicles Statoil both had working interest stakesthat it could have been planned and belonging to oil and gas companies, of 46% in In Amenas, while Sonatrachexecuted within such a short period. rather than the installations themselves. It held the remaining 8%. “Work isThere was no consensus from Algerian is not clear whether this latest attack is presently taking place on an expansionofficials as to where the attack had the beginning of a new trend, or whether project which was due to [be] completedoriginated from, although Libya and it evolved from an attack on a convoy in [the second half of 2013]. We have noNiger were also mentioned. into something more serious. incremental volumes in 2013, then 6,000 It seems likely the Algerians were Cameron, speaking to the UK’s bpd and 17,000 bpd each in 2014 andspurred into action by concerns that the Parliament on January 21, said the 2015.”terrorists would escape with hostages international terrorist threat was shiftingover the Libyan border, which is very away from Afghanistan and Pakistan More cautionclose to In Amenas. Once the decision towards Yemen, Somalia and parts of Given that details are still emerging fromhad been taken, Algerian Special Forces North Africa. the Tigantourine assault, it would bewould have prioritised killing the premature to leap to conclusions.assailants, over saving hostages. The In Amenas However, it seems likely that in the nearstark line taken by Algiers can be seen in The four wet gas fields that make up the term, companies will be far morea statement by Algerian Communications east Algerian development are operated cautious in making development plans inMinister Mohamed Said Belaid, who said by a joint venture involving BP, remote areas of the Sahel – and requirethere would be “no negotiation, no Sonatrach and Statoil. Contractors from more assurances from local forces,blackmail, no respite” for terrorists. Japan’s JGC Corporation were also at the whether in Algeria or Libya. The apparent mastermind of the attack, facility and it is thought that nine of the Algeria intends to hold a bid roundBelmokhtar, is well known throughout hostages killed were Japanese. later this year and is in the process ofthe region. A former member of al-Qaeda Algerian Minister of Energy and Mines changing its hydrocarbon laws to makein the Islamic Maghreb (AQIM), he is Youcef Yousfi told the state’s the country more attractive to bidders.renowned as much for banditry and information agency, APS, on January 21 This terrorist assault may increase thesmuggling as he is for his terrorist that damage to the plant was minor and pressure on Algiers to strike a moreactivities. He has been implicated in that production would restart in two days. conciliatory tone with foreign companies.numerous kidnappings of foreigners However, there were reports that the There has been some suggestion thatthroughout the region in recent years, terrorists had laid mines around the companies will use more local workers,including a Canadian diplomat, Robert facility and BP declined to comment on reducing their expatriate exposure. ThisFowler, who was held for around four timing. is an appealing idea, and will go downmonths. In Amenas produces around 9 billion well with local communities, but the Regardless of whether or not the attack cubic metres per year of gas – around skills required are in short supply so maycan be credibly linked to the intervention 10% of the country’s total – and 60,000 not be practical.in Mali, it is symptomatic of wider barrels per day of liquids, said JBC Libya too will face pressure to increaseinsecurity throughout the Sahel. Algerian Energy. security at its energy installations as,officials had warned of a growing The attack “may be a sign that the following the attack on the US consulateterrorist threat in the south of the country political stability of the Islamic country in Benghazi in September 2012, concernthroughout 2012, particularly following a is on a downswing,” JBC continued, is running high.suicide attack in the southern oasis city noting also that gas exports from Algeriaof Tamanrasset in March. to Europe had declined in 2012 by 4%. Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 4 COMMENTARYNigeria takes Qua Iboe crunchThe same old problems continue to curb Nigerian production hopes, while piracy figuresmountBy Helen Castell Qua Iboe exports in February will come in below previous expectations Shell has complained of mounting pipeline insecurity, which has restricted exports Production is returning after the floods of NovemberA recovery in Nigeria’s crude oil exports The company has been critical of the Resources, Diezani Alison-Madueke, butwas dealt another blow last week with Nigerian government’s failure to stem we always have challenges because ofnews that shipments of the country’s Qua endemic oil theft in the country – which the rate at which pipelines are beingIboe grade would suffer delays in has also been a factor behind production vandalised, practically on a daily basis,”February. shortfalls and export delays. The Nation quoted him as saying. The news comes just a month afterExxonMobil lifted a force majeure – a Pipe problems Piratesclause which means a company is not Although Shell itself has “made great It is not only onshore installations andable to meet contractual obligations progress over the last two years in terms pipelines that are being targeted bybecause of events beyond its control – on of actually dealing with operational thieves. Nigerian authorities last weekQua Iboe, which is Nigeria’s main export issues, and in cleaning up previous years’ charged 23 people with oil theft after thegrade. Disruptions to Qua Iboe loadings sabotage and operational spill sites” in navy seized two ships carrying allegedlymean that three out of 11 cargoes that Nigeria, at the same time the “stealing stolen crude oil late last year.were initially scheduled to load in and sabotage of crude oil has Nine Nigerians and two GhanaiansFebruary will now be pushed back into intensified,” Shell’s CEO, Peter Voser, were arrested when the navy interceptedMarch, trade sources told the Energy said in a December statement posted on the Mount Eve vessel, which wasTribune. the company’s website. carrying 16,500 gallons (75,000 litres) of Although it is not clear why the delay “The overall security situation in 2012 refined fuel. A week later, the navyhas occurred, one trader said that has worsened,” he said. “Shell alone arrested 10 Indians and four NigeriansFebruary’s production forecast was cannot solve these issues. It needs aboard the Ashkay vessel, which wassimply overoptimistic. “It’s just an concerted government action to reduce carrying 35,000 gallons (161,000 litres)adjustment of production, [which] was [the] theft of crude.” of allegedly stolen fuel.forecast too optimistic,” he said. Nigerian National Petroleum The number of attacks on oil tankers Nigeria’s oil production had been Corporation (NNPC) has lost around 165 offshore Nigeria nearly doubled in 2012,expected to rise around 10% in February billion nairas (US$1.06 billion) over the from 11 in 2011. In December 2012, 11after recovering from the floods of late past four years to oil product theft and attacks were reported on ships in the Gulf2012. pipeline vandalism, one of its of Guinea, most of them involved in the Italy’s Eni also lifted its force majeure subsidiaries, the Pipelines and Products oil business, UPI reported.on Nigerian oil exports last week, raising Marketing Company (PPMC), said on Piracy off West Africa “is reachinghopes that an end was in sight for January 17. dangerous proportions,” the InternationalNigeria’s supply problems. “We have “We are talking to legislators at the Maritime Bureau (IMB) said in Octoberremoved the force majeure on Brass,” an National Assembly on proper sanction 2012. “It’s a serious problem,” said IMBEni spokesman said on January 16. and prosecution of people that engage in director Pottengal Mukundan. “The Eni had first declared force majeure in oil theft and pipeline vandalism,” said pirates are getting quite audacious, withearly November and traders had reported PPMC’s managing director, Prince increasing levels of violence being used.”delays of more than a month for the Haruna Momoh. “We believe that Corruption is also a perennial problem.Brass River grade, which typically between now and the end of June, we In October last year, a leaked reportaccounts for around 5% of Nigeria’s total should be able to come up with a commissioned by the government allegedoil exports. solution.” mismanagement of gas deals had cost the Royal Dutch Shell also declared three “We at the NNPC are still keeping the Nigerian state US$8.6 billion betweenforce majeures on its Nigerian oil and gas mandatory 30-day national stock reserve, 2009 and 2011.output in the fourth quarter of last year. as directed by the Minister of Petroleum Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 5 COMMENTARY That said, Nigeria’s oil exports have (US$3.7 billion). and ongoing maintenance” on pipelinesbeen recovering slowly since the flood The lift in oil exports occurred “even and other facilities, Nigeria’s accountantwaters receded. In December, a pick-up as crude-oil production and lifting general, Jonah Otunla, said last week,in oil exports helped Nigeria’s state encountered several disruptions as a without releasing specific oil exportrevenue rebound 2% to 581 billion nairas result of increased bunkering activities figures. PIPELINES & TRANSPORTTender issued forKenya’s new pipelinePlans for the construction of a second Tamoil was contracted to re-design the eastern Africa region up to the yearproducts pipeline linking Kenya’s port pipeline to move fuel in both directions 2044,” KPC said in a statement.city of Mombasa to the capital, Nairobi, and also expand it from six inches (152 Much of the oil trucked frommoved forward last week when mm) to 10 inches (254 mm), a plan that Mombasa is destined for landlockedinvitations went out for procurement, drove up the cost of the project from the Uganda, Rwanda and Burundi. However,construction, testing and commissioning initial US$80 million to US$300 million. the challenges of poor roads have led toof the project. Last week, Kenya Pipeline Company delays in the delivery of fuel, creating The new US$300 million pipeline, (KPC) called for expressions of interest supply gaps in the three economies.which in future could be extended to (EOI) in the design of the 450-km KPC runs a pipeline from Mombasa toKampala in Uganda, will replace the pipeline, as the country seeks to ease the Nairobi, which extends to Nakuru, beforecurrent one whose 30-year lifespan has transportation of fuel from Mombasa, branching to Eldoret, in Kisumu.ended, according to a report by Reuters. providing an alternative to the present Those companies hoping to take part The undertaking comes after an earlier system of unreliable trucking. need to meet a number of KPC’sattempt to extend the current pipeline, Submissions must be delivered to KPC requirements, including 10 years ofterminating in Eldoret town in western by February 28. experience on similar work and auditedKenya to Kampala, under a contract with “The new pipeline is designed to meet reports for the last five years.Tamoil East Africa was put off. petroleum products demand for theSouth Sudan remains keenon pipeline to KenyaA South Sudanese diplomat has said his of 2012, saying that they hoped to begin dependent on an existing export line thatcountry remains eager to build an oil construction as early as June, with work runs through Sudan. That pipe has notexport pipeline to Kenya. wrapping up about 18 months later. carried any South Sudanese crude during South Sudan’s ambassador to Nairobi, However, the two sides have yet to reach the last 12 months, owing to a disputeNgurduong Majok, indicated in a recent agreement. between Khartoum and Juba over transitinterview with The EastAfrican that Juba The ambassador told The EastAfrican fees. In turn, the idling of the pipelinestill saw the proposed link as the best that Juba and Nairobi were still in talks has forced South Sudan to freeze oillong-term option for moving crude to on the project but did not say when a deal production.market. South Sudan intends to construct might be concluded. The US$5-6 billion The two sides signed a deal on transitthe 2,000-km pipeline regardless of the price tag for building the pipeline, which shipments in late September, saying theyoutcome of negotiations with Khartoum, will run from Juba to Lamu, would be hoped to see crude flows resume within ahe said. covered by revenues earned from oil few months. South Sudanese officials began talks exports, the newspaper noted.with Kenya on the project in the first half In the meantime, South Sudan remains Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 6 PIPELINES & TRANSPORT Several weeks ago, the leaders of during a visit to Juba last week, said they last May that Juba wanted to use tankerSudan and South Sudan reiterated their did not expect Khartoum to uphold its trucks to export at least 35,000 barrelscommitment to upholding the deal. share of commitments under the per day – equivalent to 10% of theHowever, South Sudan has yet to bring agreement signed in September 2012. As country’s production – via Ethiopia.its fields back on line, partly as a result such, South Sudan should proceed with The Sudan Tribune noted, though, thatof continued clashes with Sudan over plans for moving oil to market by truck, existing roads in South Sudan andsecurity issues and jurisdiction over the the senators suggested. Ethiopia could not withstand heavyAbyei region. They said the US government would traffic from tanker trucks. New roads will support this scheme, which was mooted have to be built to facilitate large-scaleTrucking option last year by South Sudanese Oil Minister oil exports, it said.Meanwhile, a group of US senators, Stephen Dhieu Dau. The minister saidPiracy threat increasingin West AfricaPirate attacks have fallen to a five-year armed security teams, plus the members taken hostage, with the use oflow around the world, mainly as a result application of “best management guns during an attack having beenof successful action against Somali practices” by ships’ crews. reported on at least 37 occasions.pirates, but the waters off the coast of However, it warned that the threat and Attacks in Nigerian waters reached 27East Africa remain the world’s most capability of heavily armed Somali last year, compared with 10 in 2011.dangerous, while risk is increasing pirates remained strong and that a Togo experienced 15 attacks, up fromoffshore West Africa. continued naval presence was essential to five in 2011, while Cote dIvoire Assaults in Somalia and the Gulf of combating buccaneers. “This progress recorded an increase from one pirateAden – reported by 75 ships in 2012, could easily be reversed if naval vessels assault in 2011 to five last year.compared with 237 in 2011 – accounted were withdrawn from the area,” said the “Now, were seeing more abductions offor 25% of incidents worldwide last year, IMB’s director, Captain Pottengal sailors from oilfield supply vessels offaccording to a global piracy report Mukundan. IMB also said piracy was on Nigeria, and tankers being hijacked as farpublished by the International Maritime the increase in West Africa’s Gulf of west as Abidjan. This type of violentBureau (IMB) on January 16. Guinea, where there is currently no maritime criminality shows no sign of The international watchdog said the engagement of international navies for decreasing any time soon,” according tonumber of Somali hijackings had halved counter-piracy activity. It reported 58 an intelligence analyst from security firmfrom 28 in 2011 to 14 last year, largely incidents in the region during 2012, AKE, quoted by Reuters.because of “pre-emptive strikes and compared with a total of 46 incidents in Only Benin reported a reduction inrobust action against mother ships” by the area during 2011. Last year there piracy, with its figures down from 20 inseveral navies and the work of private were 10 hijackings and 207 crew 2011 to two events last year, IMB said. INVESTMENTPerenco signs Cameroonexploration contractAnglo-French independent Perenco has According to the agreement, said collection on the area for three years andsigned a contract with Cameroon’s state- Perenco on January 15, it will explore the drill two wells to a minimum depth ofrun Societe Nationale des Hydrocarbures offshore block, which covers 137.13 1,100 metres. Depending on the results(SNH) to drill two wells in the Atlantic square km. obtained, the contract could be extendedcoastal Rio del Rey Basin’s Moabi block. Perenco will undertake seismic data for another two years. Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 7 INVESTMENT Perenco is investing 17.5 billion CFA 2012, up 9.3% on the same period in block in the country’s southwest region.francs (US$35.5 million) in this first 2011, according to an official statement SNH is working with Addax Petroleumphase of the project. handed to reporters in the capital in several blocks in the oil-rich Rio del There are options for two further Yaounde. Rey Basin, where the Bakassi peninsulaexploration phases, both running for two One of the most recent discoveries in is situated.years each, with a well required to be Cameroon was made by Chinese-owned In the gas sector, Scotland’s Bowlevendrilled in each additional period. Addax Petroleum, which said in October has announced its intention to begin Cameroon raised about 477 billion that it had discovered new offshore oil production at its offshore Sapele wells byCFA Francs (US$950 million) from oil and gas reserves in Bakassi, at its the end of 2015 or 2016.production over the first nine months of Padoux-IX exploration well in its Iroko PERFORMANCEEni confirms Sankofafind with appraisal wellEni’s first appraisal well in Ghana’s Engineering studies to develop and joint venture partners playing aOffshore Cape Three Points (OCTP) ensure commercialisation of the block prominent role.block has confirmed the commerciality are also ongoing under the terms of a Eni’s subsidiary Eni Ghanaof the Sankofa discovery. This is Memorandum of Understanding (MoU) Exploration and Production is theestimated to contain around 450 million recently signed by Eni, Vitol and Ghana operator of the block with a stake ofbarrels of oil in place, with recoverable National Petroleum Corporation (GNPC) 47.2%. Vitol Upstream Ghana holds aresources of up to 150 million barrels with the Ghanaian Ministry of Energy. 37.8% interest, while the remaining 15%including gas, associated liquids and oil. The MoU has a particular focus on the belongs to GNPC, with an option for an Sankofa East 2A encountered 23 domestic gas market, with Eni and its additional 5% share in the block.metres of gas and condensategross pay – of which there were17 net metres – and 76 metres ofgross oil pay – with 32 net metres– in good Cretaceous sands, Enisaid in a statement on January 17. Data acquisition has confirmedhydraulic communication in theoil-prone reservoir between thediscovery and the appraisal wells,the Italian company said. Morework is under way on planning thedevelopment of the reserves. The Sankofa East 2A appraisalwell reached a total depth of 4,050metres, in 990 metres of water inthe OCTP block, in the TanoBasin, approximately 50 km fromthe Ghanaian coastline. It wasdrilled 8 km southwest of theSankofa East X1 discovery well,which contains the same reservoirsands and lies around 38 km eastof Ghana’s Jubilee field. Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 8 PERFORMANCESomaliland aspires to oil futureSomaliland, which lies along the Somaliland is strategically positioned to the drilling of one exploration well.northern side of the Horn of Africa, and be one of East Africas major energy According to the Genel website, thewhich declared its independence from supply bases and play a key role in the area of Somaliland that it is exploringSomalia in 1991, hopes to have a future region’s energy future,” he said, could hold 1 billion barrels of oil.based partially on hydrocarbon according to the Somaliland Sun Meanwhile, in neighbouring Puntland,development. newspaper. a semi-autonomous region of Somalia, Anglo-Turkish Genel Energy acquired In August 2012, Genel acquired a 75% Horn Petroleum drilled two wells lasttwo production-sharing agreements interest in two blocks in partnership with year that proved to be dry.(PSAs) in 2012 for five onshore blocks in the East Africa Resource Group, which Horn said last year it would continuethe country and is expected to drill in holds the remaining 25%. In November, with its exploration programme in2014. Genel farmed in to a 50% stake in three Puntland. The company and its partners, The breakaway state’s Minister for more blocks that form the Odewayne Range Resources and Red Emperor, saidMining, Energy and Water Hussein Abdi PSA with partners Jacka Resources and they would enter the next explorationDualeh recently attended an energy Petrosoma, which hold 30% and 20% phase in the Nugaal and Dharoor Valleyconference in Abu Dhabi to acquaint the stakes respectively. The deal called for PSAs. Those agreements call for oneenergy industry with his country’s plans. Genel to carry its partners through exploration well to be drilled within a“In light of its geographical position, Phases 3 and 4 of the PSA, which include three-year period.long coastline and deep-sea ports, gathering 1,500 km of 2-D seismic andFrost: South Africanshale gas years awaySouth Africa’s hopes to replicate the resource. million British thermal units (US$249-North American shale gas boom are A number of companies are working 440 per 1,000 cubic metres) might beunlikely to cut prices by the same extent on shale in the country, although South reasonable, while allowing it could be asand will take seven to 10 years to reach Africa’s Sasol pulled out during the low as US$6 per million Btu (US$166commercial levels, according to a recent moratorium. per 1,000 cubic metres).conference call by Frost & Sullivan US figures have put South Africa’s Fracking in the Karoo poses particularexperts. shale gas resource at 13.7 trillion cubic difficulties owing to the region’s limited A South African industry analyst at the metres but this is likely to fall once more water resources, with extremely lowconsultants, Dominic Goncalves, said the information is established, with the rainfall. “A huge amount of water wouldmain difficulty in exploiting the analyst citing the example of Poland, need to be transported,” Goncalves said,country’s shale gas reserves in the Karoo where figures were reduced by around in order to provide the 2-30 million litresBasin would be environmental concerns. 85% after initial drilling results. of water per well needed.The area is highly prized and opposition Goncalves said the likely figure for Unlike Europe or the US, South Africato hydraulic fracturing in particular is South Africa would probably be 283 has only a limited amount ofnotable. billion cubic metres to 1.42 tcm, which is infrastructure so substantial investments The moratorium on the industry was “still significant.” would be needed in pipelines and alifted in September 2012, Goncalves The country needs to press ahead with market would have to be created.said, but “fracking is still not currently finding new sources of power feedstock, Statistics from the US suggest thepermitted.” As such, industry is caught in as it is experiencing fuel shortages. possibility of water contamination is verya “Catch-22” situation, the analyst said, “There is no way to know the price” of low, but the Frost analyst said there waswhere it cannot prove South African shale gas production, he continued, “no element of certainty in fracking.shale gas is a valuable, exploitable although suggesting that US$9-16 per Accidents can happen.” Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 9 POLICYGriffiths charged withChadian corruptionGriffiths Energy International has been 2011. problematic. Fees paid to consultants arecharged with foreign corruption by the The company began an internal often flagged by transparencyCanadian authorities, but the company investigation in November 2011 and campaigners as open to abuse.said it was confident there would be a shared the results with authorities in May Griffiths filed for an IPO in November“near-term negotiated resolution.” The 2012. 2011 but dropped these plans in Februarycompany was charged with one count “Weve worked extensively with the the following year, saying it had raisedunder Section 3(1)(b) of Canada’s Crown and the RCMP throughout and we cash privately. The company said it hadCorruption of Foreign Public Officials anticipate a negotiated resolution in the spudded its first development well on theAct by the Public Prosecution Service of very near future,” said Griffiths’ Badila field at the end of November lastCanada (PPSC). president and CEO, Gary Guidry. “We year. Griffiths’ notified US and Canadian cant say any more at this time, but will The company signed up the Mangara-authorities in November 2011, after commit to providing more details as soon Badila production-sharing contract (PSC)discovering contracts signed by its as a resolution is approved by the Court in March 2011 and the Doseo-Borogopprevious management with two and made public.” PSC in January 2011. Griffiths signed acompanies owned and controlled by a According to previous statements, preliminary deal with Glencore“foreign public official and his spouse” Griffiths paid around US$8.5 million on International last year under which thebetween August 2009 and February consulting agreements on entering Chad trader would take a 25% stake in the2011. The new team at Griffiths was and around US$2 million of this amount Mangara and Badila developments.appointed between July and September was considered to be potentially PROJECTS & COMPANIESPura Vida signs up Gabonese blockAustralia-based Pura Vida Energy hastaken an 80% stake in the Nkembeblock, offshore Gabon. The companywill be the operator and will carry theremainder of the equity on behalf ofGabon. Pura Vida announced the dealon January 15, after signing theproduction-sharing contract (PSC) inLibreville on January 11. The block covers 1,210 square km,with water depths of 50 to 500 metres,in the Gabon Basin. Nkembe is close toa number of producing oilfields, PuraVida said. The company’s technical director,David Ormerod, said the award was animportant step in building a“diversified portfolio of high-qualityexploration assets. Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 10 PROJECTS & COMPANIES Pura Vida has taken a high equity A note from Hartleys, which has also and contract terms.position, demonstrating our confidence in acted as Pura Vida’s corporate advisor, Pura Vida is to buy 845 square km ofthis project and the belief that sound predicted the company would adopt a 3-D seismic data from WesternGeco.technical work will generate value by similar strategy to its new Gabon block, Under the first phase, which will run forproving the potential of these plays.” with a “farmed-out carry on at least one four years, the company will acquire 550 Pura Vida recently struck a deal to well.” square km of Multi Azimuth 3-D seismicfarm out a stake in its Moroccan block, The Australian company noted recent and drill an exploration well. SeismicMazagan, to the US’ Plains Exploration interest in subsalt plays in Gabon and work is expected to begin early in theand Production (PXP). Under the said it would be investigating these on second half of this year.Mazagan deal, PXP agreed to make a Nkembe. Tudor Pickering Holt has The second phase will involve anotherUS$15 million upfront cash payment and described the country as being the most 550 km of 3-D seismic and the drilling ofprovide US$215 million of funding for appealing in West Africa for pre-salt two exploration wells.work on the block. work, based on its potential resourcesLiberian 3-D seismic under wayTGS-NOPEC Geophysical has started African Petroleum Corporation, which there were plans for a “very activeacquiring a 3-D multi-client survey over announced recently that it had started exploration programme” in Liberia forup to 7,800 square km of acreage in the drilling at its Bee Eater-1 well offshore 2013.Harper Basin, offshore Liberia. The Liberia, about 10 km from what the A second well is planned in thesurvey, known as Sunfish, “provides company said was a proven high-quality offshore region once the Bee Eater-1excellent data coverage for the source- reservoir. The Australian company said well has been completed. Theprone, syn-rift and early post-rift the well was meant to test the westward recoverable resources for the Bee Eatersequences in this highly prospective area extension of the reservoir. African area are estimated by the company atoffshore Liberia,” said TGS on January Petroleum’s CEO, Karl Thompson, said more than 840 million barrels of oil.16. “TGS has been active in acquiring dataover the West Africa Transform marginfor the past decade and this surveydemonstrates TGS’ ongoing commitmentto grow the seismic data library inAfrica,” said TGS’ senior vice presidentfor the eastern hemisphere, Stein OveIsaksen. TGS is chartering the 12-streamerPolarcus Asima for the survey, which issupported by industry funding. Thecharter will last for approximately sixmonths. Data processing will beperformed by TGS and will be availableto clients in the third quarter of 2013,prior to Liberia’s 2013 bid round. Liberian President Ellen JohnsonSirleaf has been active in courtinginvestments in the country’s oil andnatural gas sector, as it recoverspolitically and economically from yearsof civil war. The Liberian governmenthas said that more than US$16 billion hasbeen invested in natural resources, suchas oil, during the past six years. Inroads have been made by Australia’s Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 11 NEWS IN BRIEFThe following news items are sourced completed with thermal casing, however,from local and international news Egypt discovers oil their flow rates are expected to increasesources. NewsBase is not responsible for and gas in Western from their current 22 barrels per day withthe contents of the stories and gives no Desert steam injection into the other nearbywarranty for their factual accuracy. wells. Egypt General Petroleum Co. (EGPC) MENA HYDROCARBONS,North Africa made an oil and natural gas discovery in January 15, 2013 the Western Desert and plans to drill nineAlgeria crisis wells to develop the concession, the Oil Tension increases intriggers Libya, Egypt Ministry said January 14. The find has Libya reserves estimated at about 16.5 billionoil security review cubic feet of gas and 48 million barrels Unconfirmed reports indicated that of crude, the Cairo-based ministry said in hostile groups have threatened attacks onLibya rushed to beef up security at its an email. The company and Kuwait foreign targets in Libya in response tooilfields and energy firms were Energy Co. made two joint discoveries in ongoing violence in Mali. In Benghazi,considering similar measures in Egypt as the same area, the ministry said. unconfirmed reports indicate thatIslamist militants threatened to attack BLOOMBERG, January 14, 2013 security forces in the city intercepted anew installations in North Africa. number of vehicle-borne improvisedHundreds of workers were evacuatedfrom a number of Algerian production MENA Hydrocarbons explosive devices (VBIEDs) at thesites on the border with Libya to safer notes Lagia progress airport before they were detonated. Unidentified militants opened fire on theplaces in the countrys centre and MENA Hydrocarbons is pleased to vehicle of Italys consul, although he wasindustry experts said that could announce the following operational not injured in the attack. Meanwhile, twoultimately lead to lower oil and gas update. Activities on the Companys police officers were killed in separateproduction from the OPEC member state. 100% owned Lagia oil field in Egypt attacks in the city on January 15 and 16.Libya and Algeria are Africas third and have re-commenced. A new progressive Saif al-Islam Gaddafi appeared in courtfourth largest oil producers with Libya cavity pump (PCP) has been installed in in Zintan on January 17 to face chargesalso the largest oil reserves holder on the the Lagia well 9 which has produced related to a visit by an Internationalcontinent. Together with Egypt they are over the last 12 days at an average Criminal Court (ICC) lawyer in 2012.important gas suppliers to Europe and the stabilised rate of 90 barrels per day of AKE, January 18, 2013budgets of all three countries are heavily approximately 16 degree API oil gravity.dependent on energy revenues. Libyas This PCP replaces the original sucker rod Major Libyan oil terminal remainsoil protection force, affiliated with the pump that was previously installed indefense ministry, said there had been no closed, exports Lagia 9. MENA has also completedreports of incursions into its oilfields, installation of required productionwhere more guards and military personal facilities in the field with three oil delayedhad been deployed and security patrols storage tanks, a water tank, and a 500 The Zueitina oil terminal in Libyaintensified inside and around the sites barrel fuel tank and has connected all remains shut, almost a month afteraround the clock. “Due to events in the producing wells with flow lines. Lagia demonstrators forced the closure of theregion, the Petroleum Faculty Guard has wells 8 and 10, which were also drilled in major oil exporting hub, a shipping agenttaken a series of actions to enhance and 2012 and designed for steam injection, told Dow Jones Newswires Thursday.reinforce the protection of oilfields, will be placed on production following The closure has caused severefacilities and employees in the western an initial steam injection cycle to begin disruptions to exports of oil from theand southern regions of Libya,” it said. A next month. The Company has signed an North African country, traders have said.Western security adviser working in agreement with an experienced Middle One trader said last week that fiveLibya said by telephone he was not sure East steam operator, Steamtech and Co., cargoes for January loading had beenthat would immediately boost security, to provide steam injection equipment and dropped, three cargoes of Bu Attifel oilsince the oil protection force, set up after personnel to start the steam injection and two cargoes of Zueitina oil. “Itsthe overthrow of Muammar Gaddafi in operation in the field. Given the quality affecting the market really badly,” he2011, was at an “embryonic stage.” of sandstone reservoir and oil gravity, it said. “Basically January liftings wereLibyas National Oil Corporation is expected that production volumes from cancelled.” Oil installations have beenchairman Nuri Berruien confirmed the wells will be significantly improved. focal points for demonstrations followingincreased security measures at fields on The two remaining production wells in elections in July.the Algerian border. the field, Lagia 6 and 7, were drilled by a REUTERS, January 18, 2013 previous operator and were not Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 12 NEWS IN BRIEFWhat is happening in “Zueitina is in line Maroc from its previous owner Caithness to the international market throughwith whats been going on elsewhere; Petroleum. Cabre Maroc is the operator Ethiopia instead of waiting for Khartoumtheres been quite a lot of protests at oil of an extensive portfolio of highly to honour its agreements on oil transport.terminals throughout the country over the prospective oil and gas exploration In May last year South Sudanese oillast three months,” said Alan Fraser, risk licences and gas exploitation concessions minister Stephen Dhieu Dau told theconsultant at Ake security in an interview covering an area of approximately 5,100 Wall Street Journal that his country planslast week. “Locals are trying to pressure square miles in northern Morocco. As to use trucks to export at least 10% of itsthe government and oil ministry into well as the US$19 million paid to secure oil production, 35,000 barrels per day,giving more people in the local the acquisition, a financial guarantee of through Djibouti after crossing Ethiopiacommunity jobs,” he said. In 2011, a US$5 million for the performance of and the Kenyan maritime port ofcivil war that completely halted oil future exploration commitments on the Mombasa. The Senators who visited Jubaexports from the OPEC member rocked Rharb permits has also been provided to this week include Senator Steve Pearcethe markets and contributed to soaring ONHYM, the regulator of Moroccos oil of New Mexico carrying the messageprices. and gas sector. This guarantee will be which urged Kiir to immediately DOW JONES NEWSWIRES, refunded immediately upon the transport its oil by trucks, saying January 17, 2013 fulfillment of those commitments which Khartoums act of stopping the flow of is expected to occur during the second oil “doesnt make sense.” The Senators,Chads SHT seeks half of this year. Gulfsands said its who later gave statements to the state-Sudan oil co- purchase of Cabre Maroc delivers to the owned South Sudan Television (SSTV)operation company a large, contiguous and highly on Sunday, said their government would prospective acreage position in an area support the new alternative initiative toThe head of the projects unit in Chads with proven petroleum systems, revenues truck the oil to the international market inSociete Des Hydrocarbures du Tchad from near term production, and multiple order to generate significant amount of(SHT) Eng. Al-Mahdi Mohamed Gamar drilling targets. It believes that there is revenues for the countrys economy.said his country is participating in the meaningful near term value potential Senator Steve Pearce questioned theinternational trade fair of Khartoum and contained within the proven conventional logic why South Sudan with such hugethe objective of their participation is to and shallow depth gas play in the Rharb resources should suffer economically.benefit from Sudans experience in Centre permit, together with significant However, the country has the plan inindigenising the oil industry and striking exploration upside related to the fold and place already to alternatively truck the oilagreements with Sudanese oil companies. thrust belt structures identified in the through Ethiopia from Upper Nile stateSudan and Chad signed a protocol to adjacent Rharb Sud, Fes and Taounate but there was need to construct apromote co-operation in oil, the deal won permits. Following completion of the tarmacked road to connect Upper Nilestrong support from Chadian President acquisition, Gulfsands and ONHYM and Ethiopia which will be able toIdriss Deby who is seeking strong have become co-venturers in the Rharb withstand the frequent heavy traffic ofpartnerships with African countries. He Centre and Rharb Sud permits, with big oil trucks. The road to connect Uppersaid Chad entered the oil industry in Gulfsands the operator of the joint Nile state and Gambella region of1972 through international companies venture and following completion of Ethiopia was one of the priority roadsand is now making efforts to establish various post completion matters, such as that of Juba-Nimule road whichlocal oil companies, stating that the Gulfsands and Caithness Petroleum connects South Sudan and Ugandacurrent oil output in Chad is 125,000 through their respective wholly owned because of their economic importance.barrels from Kume oilfield, 60,000 subsidiaries will become co-venturers SUDAN TRIBUNE, January 14,additional barrels are expected to be with ONHYM in respect of the Fes and 2013produced this year. Chad has an oil Taounate Permits, with Gulfsands theexport pipeline running across operator of both exploration joint South Sudan signsCameroon, which brought major benefits ventures. deals with Israeli companiesfor the economy and the population. RIGZONE, January 17, 2013 SUDAN VISION, January 19, 2013 US calls on Kiir to South Sudan says it has signed anGulfsands completes transport oil by agreement with several Israeli oilMoroccan trucks companies, a potentially significantacquisition strategic move that will consolidate A delegation of US Senators have urged Israels relations with the fledgling, oil-Gulfsands Petroleum has completed a President Salva Kiir Mayardit of South rich East African state.US$19 million acquisition of Cabre Sudan to begin to truck his countrys oil Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 13 NEWS IN BRIEFSouth Sudans petroleum and mining until the end of its contract in May 2018.minister, Stephen Dhieu Dau, announced Sudan to boost oil The potential contract revenue for thethe oil deal last week after he returned output to 150,000 extension is estimated to approximatelyfrom a visit to Israel. The country will bpd US$450 million based on 97% utilisationalso bolster Israeli moves to counter and includes a performance bonusIranian inroads into the Red Sea and a Sudan plans to increase oil production to arrangement. This brings the totalmajor gunrunning route from the at least 150,000 bpd this year thanks to estimated contract value to US$1.13Revolutionary Guards base at Bandar two new oilfields and a higher recovery billion. In line with the omnibusAbbas in the Persian Gulf to the Gaza rate from existing fields, its oil minister agreement terms and conditions betweenStrip via Sudan. Dhieu Dau said told a newspaper on Wednesday. The Seadrill and Seadrill Partners, Seadrill isnegotiations were ongoing with Israeli African country, which currently pumps obligated to offer the West Leo tocompanies - whom he did not identify - 136,000 bpd to 140,000 bpd, lost three- Seadrill Partners at a fair market price.seeking to invest in South Sudan. He quarters of its output when South Sudan SEADRILL, January 16, 2013indicated that the government in Juba, became independent in July 2011. Thethe ramshackle capital of the infant state, drop in oil, its main source of budget and Angola productionhoped to export oil to Israel, but trade revenues, has thrown its economy reaches 1.78 million bpdobserved that this could not happen into turmoil. Sudan had originallybefore March. He gave no indication how planned to reach 180,000 bpd by the endthe landlocked south would achieve this, of the year, but its major Heglig oilfield In December 2012 Angola’s oilor what volume of crude would be was damaged during a brief occupation production totalled a daily average ofinvolved. by South Sudans army and border 1.78 million barrels, which is slightly HAARETZ, January 20, 2013 fighting between the two countries in lower than the target set by the April. The planned increase will be government of 1.8 million barrels perOil shutdown is driven partly by the al-Barsaya oilfield in day, according to Angolan weeklycorrecting tax Block 17 in South Kordofan state, which newspaper Expansao. Although Angolanrevenue shortfall in has started with an initial output of 6,000 production last year ranged between 1.65 bpd, State Oil Minister Faisal Hamad and 1.75 million barrels per day, theUnity State told the al-Intibaha newspaper. Its output State Budget for 2013 outlines dailyThe financial crisis caused by the year- will rise to between 10,000 bpd and production of 2 million barrels per day.long oil shutdown in South Sudan is 15,000 bpd this year, he estimated. He Expansao said it would be difficult toforcing Unity state to address the did not name the companies involved in meet that target and cited Oil Ministergovernments relaxed attitude to tax the field, but Block 17 is operated by Botelho de Vasconcelos, as saying that,collection, the states minister of state oil firm Sudapet and Ansan, a “to achieve 2 million barrels we willagriculture and forestry told Sudan company owned by Yemeni investors. A have to work more and more.”Tribune. Samuel Lony Geng said Friday second new oilfield in Hadida in Block 6 MACAUHUB, January 16, 2013 in the western Darfur region will increase GE, GLS, strikethat since South Sudan split from Sudanin 2011 the process for collecting tax output to 20,000 bpd this year fromrevenues has remained “very weak.” 10,000 bpd currently, he said. Chinese- partnershipFollowing the oil shutdown a year ago owned Petro Energy E&O is operating US group General Electric (GE) has setSouth Sudans government has begun to the field. up a partnership with Angolan companylook into diversifying its economy and REUTERS, January 17, 2013 GLS Oil & Gas, of the GLS Holding West Africahow to increase revenues from other group to expand the services it offers toavenues. In January last year South the oil sector, in which it has operated forSudan accused Sudan of confiscating oil Seadrill receives over 50 years, Angolan state newspaperentitlements worth about US$815 Jornal de Angola reported. Themillion. This was denied by Khartoum, term extension for partnership, called GE-GLS Oil & Gaswhich said it had only taken some oil aspayment in kind for alleged unpaid semi-submersible Limitada, was made official on 31 December 2012 following a longtransit fees. Tullow has exercised its contractual negotiation process. The US SUDAN TRIBUNE, January 20, option to extend the contract for the multinational is represented in this 2013 ultra-deepwater semi-submersible rig partnership by its subsidiary Nuovo West Leo by two years from May 2016 Pignone Angola, which is based in to May 2018. The West Leo is expected Italy. to carry out operations in West Africa Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 14 NEWS IN BRIEFThe two sides agreed to set up a on the upgraded prospectivity identifiedpartnership with share capital of 5 billion in Block CI-202 via the 2011-12 3-D NOCAL, Africankwanzas (US$52 million), and this will seismic acquisition and verified by the Petroleum counterinitially involve construction in the Soyo CPR, with a total mean prospective over optimismregion of Zaire province of a factory to recoverable liquids and gas resource ofproduce underwater equipment and 897 million barrels and 2,936 Bcf A joint press release from the Nationalproviding services for oil and gas respectively. It also gave details on Oil Company of Liberia (NOCAL) andexploration in Angola. proposed 2013 work programme African Petroleum (AP) has indicated MACAUHUB, January 18, 2013 including drilling with the Vantage that there has always been a harmonious Sapphire Drilling Unit, an overview of and cordial working relationship betweenGlencore awards the revised development concept and the two entities since oil blocks werePlexus HP/HT work updated Contingent Resource for the awarded, adding that they have aligned Gazelle Field; and information on the objectives. According to the pressPlexus Holdings has agreed to supply its statement dated January 18, African recently acquired 12.5% interest in thehigh pressure/high temperature (HP/HT) Petroleum officially announced the Accra Block, offshore Ghana.POS-GRIP wellhead equipment, subject commencement of the drilling of the Bee RIALTO ENERGY, January 15,to finalisation of the contract, to Eater - 1 well in Block LVB-09 offshore 2013Glencore Exploration Cameroon, the Liberia with semi-submersible ocean rig,leading integrated commodities producer Tanker taken off the Eirik Raude, which is meant to test Cote d’Ivoireand marketer, for drilling a gas the potential of a westerly extension ofexploration well offshore Cameroon. The the Narina - 1 Turonian oil discovery.contract will have an estimated initial Gunmen seized a Nigerian-owned, NOCAL and African Petroleum jointlyvalue of circa GBP700,000. The order is Panama-flagged tanker with 16 Nigerian clarified that “un-risked prospectiveinitially for one well with an option to crew off Cote d’Ivoires port of Abidjan resources” need to be confirmed byincrease this to three. This is the first as it prepared to unload 5,000 tonnes of further technical work and additionalcontract Plexus will enter into with fuel, port officials said on Monday. drilling, and shall not be considered asGlencore, and it is anticipated that Attacks on shipping are increasing in the “proven reserves of oil” ready to berevenues will commence in March 2013. Gulf of Guinea – second only to the produced as was reported recently in theThe exploration drilling programme will waters around Somalia for piracy. But press. Only further drilling canutilise Plexus POS-GRIP HP/HT 18-3/4” the ITRI incident was only the second of demonstrate whether “resources” can15,000 psi wellhead equipment, and this its kind in Ivorian waters, reports move to the “reserve” category and howcontract further strengthens the Reuters. The tanker, named the ITRI and much commercial quantities will beCompanys growing presence in West owned by Lagos-based Brila Energy, was available for production. In addition, theAfrica, and Cameroon in particular. commandeered on Thursday, Abidjans release stated that the current drillingPlexus CEO Ben Van Bilderbeek said, port authority said in a statement. Serge campaign is aimed at confirming the“This first contract to supply our POS- Constant of Koda Maritime, an Ivorian nature of the geology and of theGRIP wellhead equipment to Glencore firm that was managing its stopover in reservoir, including its size and quality soadds another blue chip operator to our Cote d’Ivoire, said there has been no that further drilling and technicalbroad customer base, and provides contact with it since. Constant said the programmes can be developed. Thefurther evidence of Plexus high standing ITRIs onboard tracking system had been shape of the programme, the number ofin the oil and gas industry as a supplier of disabled. Abidjan port officials said the possible appraisal wells will bebest in class equipment in terms of ITRIs last known position was off the dependent on the outcome of the Beeoperational performance and safety. In coast of neighbouring Ghana. But Eater - 1 well.the last few months, we have announced Ghanaian authorities said they had been THE INFORMER, January 21,contract wins in three continents, Asia, unable to locate the ITRI. “We now seem 2013Europe, and Africa, illustrating how our to be back to square one. Thepatented technology continues to gain information is contradictory. We dont French troops pushtraction worldwide.” know whos telling us the truth and who towards Diabaly PLEXUS, January 15, 2013 isnt,” said Constant. THIS DAY, January 21, 2013 Fighting continued in Mali on 19 and 20Rialto updates CPR January as French troops pushed towardsfigures the contested town of Diabaly.In an investor presentation today, RialtoEnergy provided technical information Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 15 NEWS IN BRIEFFrench troops are also conducting 132KV power sub-station in Umuahia,operations near the towns of Sevare and South Africa finds Abia State if the contractor handling theKonna. Reports suggest that some Nigerian militant project which was awarded to Valenceinsurgents are beginning to pull back, guilty of terrorism Nig, fails to rectify a fault with one of theretreating towards the mountainous areas transformers meant for the facility. Thearound Kidal in the north or blending in A South African court found suspected 132KV Sub-Station, which wasto local populations. African troops Niger Delta militant leader Henry Okah commissioned despite the fact that one ofunder the International Support Mission guilty of terrorism on Monday for the transformers was faulty, has thein Mali (MISMA) are arriving with masterminding two car bombs that killed capacity to generate 64 MW of electricityCanadian and Russian planes now at least 10 people in the Nigerian capital to Umuahia and its environs. At present,deploying to assist with transportation. at an independence day ceremony in it supplies only 33 MW of electricity due AKE, January 21, 2013 2010. Judge Neels Claassen said Okah, to the fault. who was accused of leading the militant GUARDIAN, January 20, 2013Mali: Eni pulls out of MEND group in Nigerias oil-producingMali on poor Niger Delta, was found guilty on 13 Tackle oil spills, notprospecting outlook counts ranging from conspiracy to illegal bunkering, Nigeria urged commit terrorism to detonatingItalian oil and gas group Eni has pulled explosives. “The evidence that was givenout of Mali because of the poor by his accomplices was not Stakeholder Democratic Network (SDN)prospecting outlook in the African contradicted,” Claassen told the court in a pressure group in the Niger Delta, hascountry, an Eni spokesman said on Johannesburg. frowned at the priority given by theTuesday. “Eni has handed back licenses REUTERS, January 21, 2013 Federal Government to security againstit had because of the very low potential crude oil theft to the detriment of theof the area,” the spokesman said. The Nigeria boosts gas needed environmental protection actionlicenses were handed back before the production, may against oil spillages in the region. SDNrecent outbreak of fighting in the revoke 132KV power noted that though the activities of crude contractcountry, he said. France intervened in oil thieves were reducing the economicMali last week in an effort to block an earnings of the nation, the excessiveadvance by rebel fighters whom the West Federal government’s efforts to sustain focus and security actions against illegalfear could use the West African nation as the existing improvement in power bunkering and crude oil theft was a poora launching pad for international attacks. supply received a boost at the weekend reflection of governments policy focusEni is the biggest foreign oil major in with the unveiling of the Oredo and sign of neglect of the people of NigerAfrica and has identified the continent as Integrated Gas Handling Facility (IGHF) Delta by the Federal Government.one of its key drivers for growth. Eni, in by the Minister of Petroleum Resources, Country Co-ordinator of the group,partnership with Algerias state-owned Diezani Alison-Madueke. It was at the Inemo Samiama, in a statement, saidSonatrach, said in 2006 it had acquired 5 Nigerian Petroleum Development SDNs position was informed by the lackexploration licenses in Malis Taoudeni Company (NPDC) operated Oredo field of action on the KS Endeavour blowoutBasin. Eni acquired a 50% participating in Edo State. The facility which currently in 2012, off the Atlantic coast ofinterest along with operatorship from supplies 65 million metric standard cubic Koloama in Southern Ijaw LocalBaraka Mali Operations Limited, a feet per day (MMscfd) has ramped up Government Area of Bayelsa State. “Thewholly owned subsidiary of the public NPDC’s total gas production to a record 2012 incident is typical of a year incompany Baraka Petroleum Limited, and level of 400MMscfd with projected which much was put in the publicthe private company Baraka Mali growth to 600MMscfd by year end is domain about oil spills, especially thoseVentures Limited, which originally had envisaged to significantly enhance the from illegal refineries, but too little was75% and 25% interest respectively in the Federal Government’s power supply done to address the massive gap betweenlicences. Sonatrach acquired a 25% drive. At the ceremony, Alison-Madueke Nigerias spill record and its capacity tointerest in the licences through its noted that the project was in line with the contain and clean up the spills.”subsidiary Sipex. The blocks – Blocks 1, ongoing reform process in the industry VANGUARD, January 18, 20132, 3, 4 & 9 – were located in the designed to vigorously ensure theTaoudeni Basin. monetisation of the nation’s gas REUTERS, January 16, 2013 endowment through gas-to-power and other gas-related industrialisation. However, the Federal Government has threatened to revoke the contract for the Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 16 NEWS IN BRIEF maintenance and growth of Joint US$80-90 per barrel before costs. CapitalFuel-laden ships Ventures volumes.” expenditure for 2012 amounted towaiting to discharge DAILY TRUST, January 16, 2013 approximately US$520 million, in lineat Lagos Afren issues trading with guidance. Of this amount, approximately US$315 million wasThere are 25 ships are waiting to statement allocated to production and developmentdischarge petroleum products at the activities and approximately US$200various oil terminals within the Lagos Afren’s CEO, Osman Shahenshah, said: million to exploration and appraisal.ports, the Nigerian Ports Authority “2012 saw record production and Based on current plans, capital(NPA) has said. NPA, in its daily financial performance combined with expenditure for 2013 is forecast to beShipping Position, made available to significant exploration success in Nigeria approximately US$620 million.newsmen on Wednesday in Lagos, said and the Kurdistan region of Iraq. In 2013 AFREN, January 21, 2013that 14 of the ships would discharge we expect to further grow our reservespetrol, while three ships would discharge base through a multi-well exploration Southern Africadiesel. It said that three ships would and appraisal drilling campaign in both HRT takesdischarge kerosene, three others would established and new basins, while continuing to grow our production base. Transocean rigdischarge diesel, while ethanol and baseoil would be discharged by a ship each. We are financially well positioned withNPA reports that nine ships would robust cash flows, a strong balance sheet HRT Participacoes em Petroleo hasdischarge rice, fresh fish, containers, and the necessary financial capacity and received the semi-submersible drilling-bulk sugar, and fertiliser. It added that 68 flexibility to optimally explore and rig Transocean-Marianas fromships carrying different cargoes were develop our high quality portfolio of Transocean, offshore Ghana, at zero hourexpected to sail into the ports between growth opportunities well into the future. of January 15, 2013. The rig will be inJan. 16 and Jan. 31. There is much to look forward to in 2013 transit to Namibian waters for the next VANGUARD, January 16, 2013 and beyond.” Net production at the three weeks and, then, she will undergo Companys assets during the full year mandatory maintenance for the followingNigerias oil 2012 (subject to final reconciliation) was 21 days, before starting HRTs drillingproduction stagnant approximately 42,830 boepd, driven by campaign in Walvis and Orangefor 40 years the year-on-year increase in net sedimentary basins. The Marianas is production from the Ebok and Okoro expected to be on location to start drillingNigerias oil production has remained fields, offshore Nigeria. Notably during the first well in Namibia, in the Wingatstagnant in the last 40 years, a report the period, the Company commenced Prospect, in Walvis basin at HRTsfrom ExxonMobil has said. The production from the Okoro Field Petroleum Exploration License-23 (Pel-multinational company also said the Extension offshore Nigeria within nine 23) by the end of the first quarter. Wingatcountrys new deepwater production has months of announcing the discovery and is located in 1,000 metres of water and itsnot buoyed its oil production during the also initiated production from the Barda drilling operations are expected to lastperiod under review. General Manager, Rash field in the Kurdistan region of approximately 60 days. “The arrival ofOperations Technical Geoscience, Mobil Iraq. Total revenue for 2012 is expected the Transocean-Marianas is excellentProducing Nigeria Andrew Ejayeriese to be circa US$1.5 billion, compared news for HRT and GALP. She is arrivingsaid this during the presentation of with US$597 million in 2011. The within the planned timeframe to start oneMobils Energy Outlook. He said in the increase in revenue is due to higher sales of the most expected and exciting drillingmid 1970s, Nigerias oil production volumes in 2012, principally due to campaigns in Southern offshore Westreached a high of 2.2 million barrels per increased production from the Ebok and Africa,” added the CEO, Marcio R.day, mainly from onshore and shallow Okoro fields offshore Nigeria together Mello.water fields. He attributed the nations with continued strength in commodity HRT, January 15, 2013stagnant oil production to delays in prices. Oil and gas inventory atproject approvals, restrictions in NNPC December 31 2012 was approximatelyfunding and tortuous contract award US$36 million, representingprocess which have slowed overall approximately 780,000 barrels net toreserve replacement and put pressure on Afren. Hedges covering approximatelylong-term production and growth. He 4.7 million barrels are in place for thesaid: “We all know the story of the period January 1 2013 to June 30 2014,impact of militancy and oil providing minimum floor prices on thesebunkering/illegal refinery on the volumes of between approximately Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 17 NEWS IN BRIEF circular dated December 28. “About four to five wells has beenSouth Africa Accordingly, the Board has adjourned confirmed to have oil,” said the NRMproposes law to give the Special General Meeting in order party-leaning MP. He also said astate share of oil fully to explore the proposed New presentation to the effect would be madeprojects Financing Transaction, which is seeking at the ongoing NRM retreat at to raise gross proceeds of up to US$65 Kyankwanzi by the Energy Minister,The South African government has million from a pre-emptive issue of new Irene Muloni. According to Rubondo,proposed changes to an energy law that Common Shares. The Pre-Emptive Share Total is spearheading the operation thatwould enable it to secure free stakes in Issue would be undertaken at a has led to the new discovery.all new oil- and gas-production projects. subscription price of US$0.29 per DAILY MONITOR, January 16,The planned amendments to the Mineral Common Share and firm commitments 2013and Petroleum Resources Development have been received in respect ofAct also aim to secure the state the right subscriptions in an amount of US$33.4 Aminex signs loanto appoint two directors to the board of million (gross) from investors including a dealcompanies operating new energy projects number of existing institutional Aminex has agreed a US$8 million loanand to abolish the petroleum industry Shareholders. Further discussions facility with a fund managed by Argoregulator. The changes, if approved by between the Company and other Capital Management (Cyprus), withParliament, could have repercussions for substantial Shareholders are continuing which the company has had a long-companies such as ExxonMobil and with regard to their participation in the standing relationship. The loan willRoyal Dutch Shell. The law didn’t New Financing Transaction and a further provide working capital, particularly forspecify what size stake the state would announcement will be made as and when the companys Tanzanian operations. Thetake in new energy projects and it was appropriate. company intends to repay the loanunclear how the provisions will work in MADAGASCAR OIL, January 15, facility from proceeds of the proposedpractice, said Peter Leon, the 2013 sale of its US assets which is currentlyJohannesburg-based head of Africamining and energy projects at law firm Total makes new oil under way. In the event that the loan is discovery in northern not repaid by the sale of US assets beforeWebber Wentzel. “These proposals are December 31 2013, Aminex has agreedextremely negative for the industry while Uganda to raise additional equity to repay thesurrounding countries continue to benefit Uganda’s oil prospects got a boost loan facility and to provide for thefrom an exploration boom,” he said in an following another discovery in the companys ongoing operations. Aminexe-mailed response to questions today. northern part of the country. The chairman, Brian Hall, commented: “We“No obvious reason has been advanced Commissioner for Petroleum, Ernest are very pleased to have completed thisfor the abolition of the Petroleum Rubondo, confirmed the development but financing which will provide valuableAgency of South Africa and the transfer declined to give details, pending what he working capital for the Companysof its all responsibilities to nine regional referred to as further analysis. “I can significant projects in Tanzania. Thesemanagers of the Department of Mineral confirm that we have discovered more oil include gas discoveries at Ntorya in theResources.” in Nwoya, but the details about the onshore Ruvuma Basin and at Kiliwani BLOOMBERG, January 18, 2013 volume and its commercial viability can North, both of which are close toEast Africa only be ready in about three weeks after Tanzanias proposed new gas trunk line, analysis,” Rubondo said in a telephone due onstream in late 2014. A farm-outMadagascar Oil sets interview with the Daily Monitor process is currently under way to introduce new partners into our Ruvumaout finance plan yesterday. “But all indications suggest that we have actually found more oil. Basin joint venture in order to accelerateMadagascar Oil has received a detailed However we still need to wait for the activity and do justice to this largeproposal for an alternative financing analysis,” he added. The area’s Member concession. The campaign to sell thetransaction to the financing transaction of Parliament, Richard Todwong, had Companys US assets has recentlyannounced on December 18 and 20, told the Daily Monitor a week before recommenced.”2012, details of which were set out in the Christmas that it was already known that AMINEX, January 17, 2013 Nwoya Constituency was laden with oil. Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 18 STATISTICS Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 19 STATISTICS Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 20 STATISTICS Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 page 21 CONFERENCES Copyright © 2013 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
  • AfrOil 22 January 2013, Week 03 Back Page NEWSBASE INFORMATION HEADLINES FROM A SELECTION OF NEWSBASE MONITORS THIS WEEK CUSTOMERS INCLUDEOil and Gas SectorAsianOilJapans Chubu Electric Power and South Koreas KOGAShave signed a joint LNG purchase deal with Eni.ChinaOilConocoPhillips restart plan for its Penglai oilfields hasbeen approved by Chinas NEA.EurOilStatoil has announced it will go ahead with theredevelopment of the Aasta Hansteen natural gas field.FSU OGMPreliminary data show that LUKoils oil productiondropped by about 1% last year.LatAmOilRepsol is poised to sell off its LNG assets, including itsshare in the Atlantic LNG project in Trinidad and Tobago.MEOGSaudi Arabia is gearing up to develop the Kidan non-associated gas project in the Empty Quarter.NorthAmOilConocoPhillips has struck a US$1.05 billion deal to sellNorth Dakota and Montana assets to Denbury Resources.Unconventional OGMBP has predicted that China will be the most successfuldeveloper of shale gas outside North America by 2030. 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 © 2013 NewsBase Ltd. www.newsbase.com