Oil+Gas 122Nd Edition February 2018+.Cdr

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www.africaoilgasreport.com Email: +234-809-9903294, 234-8036-525-979 Phone: +234-806-0095809,+234-8127483663, SERVICES Phone: Al GalaaStreet, -11511,Cairo. CAIRO: AL-AHRAMNEWSPAPERS LTD. SUBSCRIPTION/ADVERT PLACEMENT OYELADE ABASS Tudu Branch, Accra. Phone:+234-243349209 RIDGE CHURCH, Phone: DANIEL BUDU Phone: Email: ACCRA: DELALIOTCHI Phone: Post BagX16 Hermanus, 7200SouthAfrica Email: Western CapePostnet Suite 226 CAPE TOWN: ROBERT BAKRE REGIONAL CONTACTS 6th Floor, Western House,Broad Street, Lagos OMISORE AND LEGAL CONSULTANTS 12A, AnimashaunStreet,12A, OFFICE ADDRESS EDITORIAL EMAIL DISPATCHER: TEL: 234-8036-525-979 WEBSITE: Published by: AKIN ADESOKAN MAKOJI ADUKU Abuja INTERNATIONAL ADVISORY BOARD Off BodeThomasStreet, Surulere, Lagos. TAKO KONING Cover Design:OBAYANJU WALESEUN DEV George JAHMAN ANIKULAPO AUSTIN AVURU Lagos Business Development: Reporter: SEUNALABIOWO Editorial Assistant: AHMEDGAFAR Consultant: [email protected], 234-805-621-2178 KAZMA CONCEPTS LAGOS DESIGN &EDITORIAL CONSULTANTS FOLUSO OGUNSAN (Lagos) MOHAMMED JETUTU(Cairo) SULLY MANOPE(Windhoek) Editor: MOSES AKINAREMU REGIONAL REPRESENTATIVES HQ(North): North Africa: OYELADE ABASS/Cairo, Egypt South Africa: ROBERT BAKRE/Cape Town, SA JOHN ANKROMAH (Accra) SA'AD BASHIR (DaresSalaam) REGIONAL CORRESPONDENTS HQ(South): NOAH AJIBISE/Warri Editor-In-Chief: Publisher: TOYIN AKINOSHO West Africa: DELALIOTCHI/Accra, Ghana [email protected] [email protected] [email protected] +233-243349209. 233-2405-69650. 5796997, Mobile:012/2180706 +277-96971531. FESTAC NEWSPRESSLTD. www.africaoilgasreport.com AMY AVIA /Port Harcourt Abuja, KISHONWUNALI FIDELIS AKPOM Houston Kayode Akinyele FESTAC NEWSPRESS LTD. Calgary ISSN: 1597-5274 Copyright 2018 FREDAKANNI Indiana : [email protected] Lagos PAUL KELECHI Vol 19,No2,February-March2018 report Shell's Proposal Was Thrown Out The Door prompted by the feeling that by some that Shell's dominance of the party for a piece of the action. the crash to tried businessmen of sorts All screening. the trailed Federal Executive Council (FEC), which resulted in the rejection of Shell's proposal. There were There proposal. Shell's of rejection the in resulted which (FEC),the Council Executiveof Federal members and politicians Nigerian with homework its done had lobby Feldman the But such magnitude. uor ta ta h poie t cnrbt t eeto cmags I cud lo ae been have also could It campaigns. election to contribute to promised he that that rumours of project executea to pedigree the lackedFeldman history, thatcredit revealed on businesses mn bgln cru. sou eal te xrvgna that extravaganza the recalls Asiodu circus. boggling mind a and shortlisting of applicants took three years. It turned out to be In the event, the invitation for expression of interest, longlisting honoured.” Industries. A quick background check by Dun and Bradstreet, which provides commercial data to The combination BP/Kosmos Energy in North East Africa: where a major finds a unique minnow eti ta te upy il e tbe n cnrcs il be will contracts and stable be will supply the that certain undertake. The US will not commit itself to a supply unless it is they be international corporations or local entrepreneurs,local or corporationsinternational be they global developments andpolicyissuesisthego-to mediumfor decisionmakers, whether an introductory note to Phillip Asiodu, the Oxford trained Permanent Secretary of the Ministry of In these pages, we'd explore what is going on together. The to work with, is a model to watch. us to say, greener energy, as they snap up hydrocarbon properties in Africa. regional headquarters in Lagos are +2348130733523, +2348036525979, +2348023902519. of the hydrocarbon industry on the continent. It is the market leader in local contextualizing of Another proposal came from Don Feldman, an American entrepreneur. Feldman had approached email address is contract, this is not something an entrepreneur can can entrepreneur an something not is this contract, decision. that bemoans still Asiodu later, years five Forty of media advertisements. and that thesec project LNG an establishing of capable world the in companies of handful the then Permanent Representative of Nigeria to the United Nations, Simeon Adebo, who gave him Ti i a og em rjc ta rqie 2-5 years 20-25 requires that project term long a is “This dominant combination of fuels in the energy mix, so they are investing in renewable, or permit subscribers around the world. to Its delivered website publication hardcopyremainsmonthly, a is AOGR 2001, November since Limited Press eeoes rud h wrd ahr hn o ih hl. t ulse avrieet for advertisements published It Shell. with go than expressions rather of interest world in local and foreign the newspapers inviting around companies interested developersin developing which isgeographically thenearest ofthethree countries, hadseriousdebtproblems. Contracts (2) The world's biggest oil giants recognize it may be the twilight period of hydrocarbons as the Cote d'ivoire, Senegal, Kenya). the country's gas assets. The council paid no heed to Asiodu's advise, that there were only a with Brazil would not inspire confidence in the international finance community. institutions, for useful analyses of Africa's oil and gas industry. Published by the FestacNewsindustry.the gas by and Published oil Africa's of analyses usefulfor institutions, the Nigerian/Biafran hostilities. Whatever it was, FEC resolved to throw open Nigeria's needed gas to assets be to curtailed. It could be because Shell was accused of sitting on the fence at the outset of because of the steep LNG price after making allowance for ocean transportation costs. Brazil, costs. transportation ocean for allowance making after price LNG steep the of because provinces (Nigeria, Angola, Algeria, Libya) even as they swoop in on the fringes (Mauritania, fringes the on in swoop they as even Libya) Algeria, Angola, (Nigeria, provinces Brazil and Argentina. The survey identified the US as the prime destination. Japan was unattractive (1)BP, TOTAL, ExonMobil and ENI are entrenching themselves in the established African oil African established the in themselves entrenching are ENI and (1)BP,TOTAL,ExonMobil There are two more the observable on things: space more grab will majors The rule. a as further, retreat will independents The continent. The tendency has continued for all of 2017 and has moved into the early weeks of 2018. NLNG Limited, released in 2017. Excerpted from I T up to this proposal was started in 1969 with market surveys conducted in the United States,United the in conductedmarketsurveys with 1969 startedin was proposal this to up Finima, two smalltowns ontheBonny Island,were indicated. Thedevelopment work leading n 1971, Shell proposed a two train LNG project for location in eastern Nigeria. PetersideNigeria.eastern and in location forproject LNG traintwo a proposed Shell 1971, n -Editor West Africa. frontier began in earnest in late 2016, symbolized by BP's audacious entry into North into entry audacious BP's by symbolized 2016, late in earnest in began frontier he current trend of European and American oil giants returning to dominate the African AFRICA OIL+ GASREPORT Majors Claim Both Frontier and Heartland The Story of Nigeria LNG Limited ompanies beinvited for negotiations instead [email protected] By Ifeanyi Mbanefo , by Ifeanyi Mbanefo, published by Bookcraft, funded by . Contact telephone numbers in our West African www.africaoilgasreport.com FEBRUARY - MARCH 2018 MARCH - FEBRUARY Africa Oil+Gas technical enterprises or financing or enterprises technical fledgling hydrocarbon industry BOOK EXCERPT

Report is the primer and the contact 3

F R O M T H E E D I T O R Email: +234-809-9903294, 234-8036-525-979 Phone: +234-806-0095809,+234-8127483663, SERVICES SUBSCRIPTION/ADVERT PLACEMENT OYELADE ABASS Phone: Al GalaaStreet, -11511,Cairo. CAIRO: AL-AHRAMNEWSPAPERS LTD. Tudu Branch, Accra. Phone:+234-243349209 RIDGE CHURCH, Phone: DANIEL BUDU Phone: Email: ACCRA: DELALIOTCHI Email: Phone: Post BagX16 Hermanus, 7200SouthAfrica Western CapePostnet Suite 226 CAPE TOWN: ROBERT BAKRE REGIONAL CONTACTS 6th Floor, Western House,Broad Street, Lagos OMISORE AND LEGAL CONSULTANTS DISPATCHER: TEL: 234-8036-525-979 WEBSITE: EDITORIAL EMAIL AnimashaunStreet,12A, OFFICE ADDRESS Off BodeThomasStreet, Surulere, Lagos. Published by: AKIN ADESOKAN TAKO KONING MAKOJI ADUKU Abuja INTERNATIONAL ADVISORY BOARD DEV George JAHMAN ANIKULAPO AUSTIN AVURU Lagos Cover Design:OBAYANJU WALESEUN [email protected], 234-805-621-2178 KAZMA CONCEPTS LAGOS DESIGN &EDITORIAL CONSULTANTS FOLUSO OGUNSAN (Lagos) MOHAMMED JETUTU(Cairo) SULLY MANOPE(Windhoek) Business Development: Reporter: SEUNALABIOWO Editorial Assistant: AHMEDGAFAR Consultant: JOHN ANKROMAH (Accra) SA'AD BASHIR (DaresSalaam) REGIONAL CORRESPONDENTS HQ(South): NOAH AJIBISE/Warri HQ(North): North Africa: OYELADE ABASS/Cairo, Egypt South Africa: ROBERT BAKRE/Cape Town, SA Editor: MOSES AKINAREMU West Africa: DELALIOTCHI/Accra, Ghana REGIONAL REPRESENTATIVES Editor-In-Chief: Publisher: TOYIN AKINOSHO [email protected] [email protected] [email protected] +233-243349209. 233-2405-69650. 5796997, Mobile:012/2180706 +277-96971531. FESTAC NEWSPRESSLTD. www.africaoilgasreport.com AMY AVIA /Port Harcourt Abuja, KISHONWUNALI FIDELIS AKPOM Houston Kayode Akinyele FESTAC NEWSPRESS LTD. Calgary ISSN: 1597-5274 Copyright 2018 FREDAKANNI Indiana : [email protected] Lagos PAUL KELECHI VolV 19,No2,February-March2018 ol 19,No2,February-March2018 report Shell's Proposal Was Thrown Out The Door prompted by the feeling that by some that Shell's dominance of the Federal Executive Council (FEC), which resulted in the rejection of Shell's proposal. There were There proposal. Shell's of rejection the in resulted which (FEC),the Council Executiveof Federal members and politicians Nigerian with homework its done had lobby Feldman the But such magnitude. uor ta ta h poie t cnrbt t eeto cmags I cud lo ae been have also could It campaigns. election to contribute to promised he that that rumours of project executea to pedigree the lackedFeldman history, thatcredit revealed on businesses party for a piece of the action. the crash to tried businessmen of sorts All screening. the trailed and shortlisting of applicants took three years. It turned out to be In the event, the invitation for expression of interest, longlisting honoured.” Industries. A quick background check by Dun and Bradstreet, which provides commercial data to they be international corporations or local entrepreneurs,local or corporationsinternational be they global developments andpolicyissuesisthego-to mediumfor decisionmakers, whether The combination BP/Kosmos Energy in North East Africa: where a major finds a unique minnow mn bgln cru. sou eal te xrvgna that extravaganza the recalls Asiodu circus. boggling mind a In these pages, we'd explore what is going on together. The to work with, is a model to watch. eti ta te upy il e tbe n cnrcs il be will contracts and stable be will supply the that certain undertake. The US will not commit itself to a supply unless it is an introductory note to Phillip Asiodu, the Oxford trained Permanent Secretary of the Ministry of regional headquarters in Lagos are +2348130733523, +2348036525979, +2348023902519. of the hydrocarbon industry on the continent. It is the market leader in local contextualizing of us to say, greener energy, as they snap up hydrocarbon properties in Africa. Another proposal came from Don Feldman, an American entrepreneur. Feldman had approached email address is the then Permanent Representative of Nigeria to the United Nations, Simeon Adebo, who gave him contract, this is not something an entrepreneur can can entrepreneur an something not is this contract, dominant combination of fuels in the energy mix, so they are investing in renewable, or permit ot fv yas ae, sou tl bmas ht decision. that bemoans still Asiodu later, years five Forty of media advertisements. and that thesec project LNG an establishing of capable world the in companies of handful subscribers around the world. to Its delivered website publication hardcopyremainsmonthly, a is AOGR 2001, November since Limited Press (2) The world's biggest oil giants recognize it may be the twilight period of hydrocarbons as the Cote d'ivoire, Senegal, Kenya). Ti i a og em rjc ta rqie 2-5 years 20-25 requires that project term long a is “This eeoes rud h wrd ahr hn o ih hl. t ulse avrieet for advertisements published It the Shell. country's gas assets. with The council paid gono heed to Asiodu's than advise, that there expressions rather were of only interesta world in local and foreign the newspapers inviting around companies interested developersin developing which isgeographically thenearest ofthethree countries, hadseriousdebtproblems. Contracts with Brazil would not inspire confidence in the international finance community. Brazil, costs. transportation ocean for allowance making after price LNG steep the of because institutions, for useful analyses of Africa's oil and gas industry. Published by the FestacNewsindustry.the gas by and Published oil Africa's of analyses usefulfor institutions, (Mauritania, fringes the on in swoop they as even Libya) Algeria, Angola, (Nigeria, provinces Brazil and Argentina. The survey identified the US as the prime destination. Japan was unattractive the Nigerian/Biafran hostilities. Whatever it was, FEC resolved to throw open Nigeria's needed gas to assets be to curtailed. It could be because Shell was accused of sitting on the fence at the outset of (1)BP, TOTAL, ExonMobil and ENI are entrenching themselves in the established African oil African established the in themselves entrenching are ENI and (1)BP,TOTAL,ExonMobil There are two more observable things: h idpnet wl rtet ute, s rl. h mjr wl ga mr sae n the on space more grab will majors continent. The rule. a as further, retreat will independents The The tendency has continued for all of 2017 and has moved into the early weeks of 2018. NLNG Limited, released in 2017. I Excerpted from T up to this proposal was started in 1969 with market surveys conducted in the United States,United the in conductedmarketsurveys with 1969 startedin was proposal this to up Finima, two smalltowns ontheBonny Island,were indicated. Thedevelopment work leading n 1971, Shell proposed a two train LNG project for location in eastern Nigeria. PetersideNigeria.eastern and in location forproject LNG traintwo a proposed Shell 1971, n -Editor West Africa. frontier began in earnest in late 2016, symbolized by BP's audacious entry into North into entry audacious BP's by symbolized 2016, late in earnest in began frontier he current trend of European and American oil giants returning to dominate the African AFRICA OIL+ GASREPORT Majors Claim Both Frontier and Heartland The Story of Nigeria LNG Limited ompanies beinvited for negotiations instead [email protected] By Ifeanyi Mbanefo , by Ifeanyi Mbanefo, published by Bookcraft, funded by . Contact telephone numbers in our West African www.africaoilgasreport.com FEBRUARY - MARCH 2018 MARCH - FEBRUARY Africa Oil+Gas technical enterprises or financing or enterprises technical fledgling hydrocarbon industry BOOK EXCERPT

Report is the primer and the contact 3

F R O M T H E E D I T O R KICKSTARTER hlo pces Te hn National Ghana The pockets. shallow a dsie t wr wt cmais with companies with work to destined was attracting passionate, highly capitalised opcos. In the last five years it had seemed like Ghana like seemed had it yearsfive last the In that they mask the country'srealchallengesin the mask theythat 150,000BOPD, of excess in output 2017 their consistently on the Jubilee and TEN Fields, with ulw i ad t prnr hv dlvrd so delivered have partners its and Oil Tullow programme, has left the country. operations than any ambitious work work ambitious any than operations enthusiastic press releases about its Namibian its about releases press enthusiastic Even Eco Atlantic, known better for its its for better known Atlantic, Eco Even Norwegian explorer. was made in the waters offshore the old Gold old the offshorewaters the in made was that it scarcely pays heed to its E&P E&P its to heed pays scarcely it that Coast, West Afric say. to else little so had She respond. to time was itiuin hog cue i taig t a acreages, producing and to exploratory of string trading, oil crude through distribution hnin ses o kr nry a smaller a Energy, Aker to assets Ghanaian It is 11 years since a sizeable commercial find commercial sizeable a since years 11 is It oil hydrocarbonsin find major to race the join company a have to excited clearly is Ghana prtrhp; pigil, Gaaa minor Ghanaian a Springfield, operatorships; Corp, a sizeable American independent, sold its the country. it when commented, she we…” said, you “As minister.atthe while gaped the Darwin all Ms. n t pae rm lcrct gnrto and generation electricity from plate its on Petroleum Corporation signed agreements agreements signed Corporation Petroleum h GP areet ih xoMbl Hess ExxonMobil, with agreement GNPC the so unlucky it handed back its stake. Weeks after them as partners to work with”. people”,and Agyarkoequipment how,of both another Nigerian company which has so much so has which companyNigerian another gushed. “It's our good fortune that we found we that fortune good our “It's gushed. ih et n iei, t hatad Sahara, heartland; its Nigeria, in debt with made a minor discovery, but considered itself considered discovery,but minor a made to be a passive participant. Russian giant Lukoil company, with deep pockets, technical know- technical pockets, deep company,with with ERIN,acash strapped company struggling American independent which has a position in position a has which independent American Exnoi i te ags, ulcy itd oil listed publicly largest, the is “ExxonMobil television. last Block(DWT/CTP), Points Three Cape Tano the acreage hosting the Jubilee field, is content h eet a ard n rm tm National time prime on aired was event The January. prtr s mno. ndro a senior a Anadarko, minnow. a other is every operator ENI, player, Italian from Apart had been inked with GNPC, for the Deepwaterthe for GNPC, inkedwith been had list of the junior explorers on the oil patch. companies operating in Ghana has read like a like read has Ghana in operating companies representatives, after a Petroleum AgreementPetroleum a representatives,after u te ose o itrainl n local and international of roaster the But house reception for the supermajor's supermajor's the for reception state house a at Addo, Akufo- Nana President told “We couldn't have found a better partner”,betterhe a found have couldn't “We country's Minister of Energy. Agyarko,Boakye the than Ghana reputationin P svir aae fr e company's her for manager savvier a President for Africa, could not have hired amela Darwin, ExxonMobil's Vice Vice ExxonMobil's Darwin, amela 4 a's second largest economy. FEBRUARY-MARCH 2018 FEBRUARY-MARCH Why Ghana Fawns Over ExxonMobil

acquired acreage. But tha activating a field development plan for a newly is involvedis currentis in campaigns,and drilling Corporation (GNPC) entered into a a into entered (GNPC) Corporation Petroleum National Ghana the and Petroleum operates a string of oilfields in its home country, producer Nigerian Petroleum.The Amni is ball 30, 2015, when the former Minister of of Minister former the when 2015, 30, The story is that the discussions go back to April segment of the south Atlantic. Ghana's in depth watermetre 4000 and 2,000 position, especially in ultradeepwater, between One company which could run ahead with the with ahead run could which company One publicly listed company showing up to take a take to up showing company listed publicly l o wih ep o xli M. Agyarko's largest, Mr. world's the explain having about to excitement help which of All to partner -heeled deliver a well work programme a in Ghana. for market the in has in the Central Tano Block? Not at it all. claims Amni is it plays prospective highly the prove delisted from the Oslo a rnmd erlu Srie Gop and Group Services Petroleum renamed was operator,an company. service a GroupIt's The l te 5Mlin eurd o rl a el to well a drill to required $50Million the all is AGR. But, look carefully, AGRhas never been So the consortium's as main claim to E&P pedigree well as Minexco and MED Songhai Developers Limited. companies, drilling deep-water reportedly one of the world's most experienced linked to AGM Gilbraltar, is AGM,said to involve AGR, Meanwhile performance. applaudable it; Brittania U, which has produced off and on and off produced has which U, Brittania it; realise to money little but ambition large with from its small marginal field in Nigeria, a hardly By Toyin Akinosho

Stock Exchange in 2014. OIL GAS T R O P E R S A G + L I O A C I R F A t said, can Amni drop However you look at it, Ghana considers itself considers Ghana it, at look you However than they've done in a while. fortunate to be part of this evolving story. territory African of swaths vastnewer, taking h soy s o cmlctd te aos are majors the complicated, not is story the acreages.riskiestundrilled Yes,the of part this (P They are developing the biggest fields, charting ExxonMobil the in everywhere go majors the Nowadays, had made the discoveries in the African frontier. Uganda, Kenya, Cote d'Ivoire; ENI in Morocco, in ENI d'Ivoire; CoteKenya, Uganda, frontier: BP in Mauritania and Senegal; TOTAL in the matter is not as straightforward. minnows the after in moved generally 2014, 2005- days, those in majors, the goes, theory Oil Big versus junior the as then; was that But Kosmos. and Jubilee, in partner content local the EO, needns wo ae d have who independents, Kosmos Energy,Kosmos relationshipbetween the over especially as certain smaller Western Western smaller certain as especially itut ewe te hnin tt and state Ghanaian the between of mistrust weight the under failed negotiations The for their wish to get a stake in Ghana. Kenya, as example of that tendency), but again, Ghana is certainly in sync with the current trend Kosmos Energy, involving the former's former's reported fora fields, nearby and Jubilee the in the involving Kosmosof Energy'sproposedstakeacquisition Energy, Kosmos f i Ol woig n rnir cegs in acreages frontier on swooping Oil Big of with signature 2018 18, January ExxonMobil's the oil giant. with (MoU) Understanding of Memorandum the country's capital city Accra, to push in the case location conference the of advantage took Nigeria, from managers ExxonMobil when ranking 2009/2010 in back conference, Africa I recall attending sessions of the Offshore West value of $4Billion. Africa and taking exploration acreages, acreages, exploration taking and Africa to negotiations between ExxonMobil and and ExxonMobil between negotiations to Back in 2010, Ghanaian authorities were averse than a simple junior versus Big Oil issue. we realise that the story is far more complicated But ifwe recall that ExxonMobil hasbeenkeen on getting into Ghana for close to a decade now, frontier, have gone on the retreat. ol ct TTLs nr it Uad and Uganda into entry TOTAL's cite eople ominated the the ominated KICKSTARTER hlo pces Te hn National Ghana The pockets. shallow a dsie t wr wt cmais with companies with work to destined was attracting passionate, highly capitalised opcos. In the last five years it had seemed like Ghana like seemed had it yearsfive last the In that they mask the country'srealchallengesin the mask theythat 150,000BOPD, of excess in output 2017 their consistently on the Jubilee and TEN Fields, with ulw i ad t prnr hv dlvrd so delivered have partners its and Oil Tullow programme, has left the country. operations than any ambitious work work ambitious any than operations enthusiastic press releases about its Namibian its about releases press enthusiastic was made in the waters offshore the old Gold old the offshorewaters the in made was say. to else little so had She respond. to time was that it scarcely pays heed to its E&P E&P its to heed pays scarcely it that Even Eco Atlantic, known better for its its for better known Atlantic, Eco Even Norwegian explorer. Coast, West Afric find commercial sizeable a since years 11 is It oil hydrocarbonsin find major to race the join company a have to excited clearly is Ghana itiuin hog cue i taig t a acreages, producing and to exploratory of string trading, oil crude through distribution the country. A yu ad w… se omne, hn it when commented, she we…” said, you “As minister.atthe while gaped the Darwin all Ms. prtrhp; pigil, Gaaa minor Ghanaian a Springfield, operatorships; Petroleum Corporation signed agreements agreements signed Corporation Petroleum smaller a Energy, Aker to assets Ghanaian them as partners to work with”. people”,and Agyarkoequipment how,of both n t pae rm lcrct gnrto and generation electricity from plate its on Corp, a sizeable American independent, sold its found we that fortune good our “It's gushed. another Nigerian company which has so much so has which companyNigerian another h GP areet ih xoMbl Hess ExxonMobil, with agreement GNPC the so unlucky it handed back its stake. Weeks after ih et n iei, t hatad Sahara, heartland; its Nigeria, in debt with know- technical pockets, deep company,with made a minor discovery, but considered itself considered discovery,but minor a made to be a passive participant. Russian giant Lukoil with ERIN,acash strapped company struggling Exnoi i te ags, ulcy itd oil listed publicly largest, the is “ExxonMobil television. last Block(DWT/CTP), Points Three Cape Tano American independent which has a position in position a has which independent American h eet a ard n rm tm National time prime on aired was event The January. the acreage hosting the Jubilee field, is content had been inked with GNPC, for the Deepwaterthe for GNPC, inkedwith been had prtr s mno. ndro a senior a Anadarko, minnow. a other is every operator ENI, player, Italian from Apart list of the junior explorers on the oil patch. companies operating in Ghana has read like a like read has Ghana in operating companies representatives, after a Petroleum AgreementPetroleum a representatives,after u te ose o itrainl n local and international of roaster the But house reception for the supermajor's supermajor's the for reception state house a at Addo, Akufo- Nana President told “We couldn't have found a better partner”,betterhe a found have couldn't “We country's Minister of Energy. Agyarko,Boakye the than Ghana reputationin P svir aae fr e company's her for manager savvier a President for Africa, could not have hired amela Darwin, ExxonMobil's Vice Vice ExxonMobil's Darwin, amela 4 a's second largest economy. FEBRUARY-MARCH 2018 FEBRUARY-MARCH Why Ghana Fawns Over ExxonMobil

Stock Exchange in 2014. OIL GAS T R O P E R S A G + L I O A C I R F A t said, can Amni drop However you look at it, Ghana considers itself considers Ghana it, at look you However than they've done in a while. territory African of swaths vastnewer, taking fortunate to be part of this evolving story. are majors the complicated, not is story the the riskiest undrilled acreages.riskiestundrilled Yes,the of part this They are developing the biggest fields, charting ExxonMobil the in everywhere go majors the Nowadays, (P Uganda, Kenya, Cote d'Ivoire; ENI in Morocco, in ENI d'Ivoire; CoteKenya, Uganda, frontier: BP in Mauritania and Senegal; TOTAL in the matter is not as straightforward. had made the discoveries in the African frontier. Oil Big versus junior the as then; was that But Kosmos. and Jubilee, in partner content local the EO, 04 gnrly oe i atr h minnows the after in moved generally 2014, 2005- days, those in majors, the goes, theory Energy,Kosmos relationshipbetween the over needns wo ae d have who independents, Kenya, as example of that tendency), but again, itut ewe te hnin tt and state Ghanaian the between of mistrust weight the under failed negotiations The for their wish to get a stake in Ghana. especially as certain smaller Western Western smaller certain as especially Kosmos Energy, involving the former's former's reported fora fields, nearby and Jubilee the in the involving Kosmosof Energy'sproposedstakeacquisition Energy, Kosmos Ghana is certainly in sync with the current trend the country's capital city Accra, to push in the case location conference the of advantage took Nigeria, from managers ExxonMobil when ranking 2009/2010 in back conference, Africa I recall attending sessions of the Offshore West value of $4Billion. f i Ol woig n rnir cegs in acreages frontier on swooping Oil Big of with signature 2018 18, January ExxonMobil's the oil giant. with (MoU) Understanding of Memorandum to negotiations between ExxonMobil and and ExxonMobil between negotiations to Africa and taking exploration acreages, acreages, exploration taking and Africa Back in 2010, Ghanaian authorities were averse than a simple junior versus Big Oil issue. we realise that the story is far more complicated But ifwe recall that ExxonMobil hasbeenkeen on getting into Ghana for close to a decade now, frontier, have gone on the retreat. ol ct TTLs nr it Uad and Uganda into entry TOTAL's cite eople ominated the the ominated Why Hess Corp. Is Leaving Ghana A combination of several things. Crude oil prices headed for a crash in 2014. The cost of producing oil from shale formation, in Hess' heartland acreages in the US, started plunging by mid-2015 and third, the company found itself a lucky beneficiary of Cameroon's Crude Output Drops To Less Than 50KBD ExxonMobil's huge discovery in Guyana in 2015. Around the same time… See Page 34 ameroon's state hydrocarbon drop in production, according to SNH. million cubic foot or 27MMscf/d supplied in company, Société nationale des “The crude oil commercialized are Kolé (sold 2016. Chydrocarbures (SNH) says that the by bulks of 950,000 barrels), Lokélé (sold by “The gas supplied this year has helped exploit country sold 16.86Million barrels of crude oil bulks of 650,000 barrels) and Ebomé (sold by 63.09% of the plant's installed capacity”, SNH in 2017, against 20.51Million in 2016. bulks of 400,000 barrels)”, SNH reports. said. VolVol 19, No 2, February-MarchFebruary-March 2018 Between the two periods, this represents a But as crude oil production is dropping, natural These hydrocarbon sales enabled SNH to decrease by 3.65Million barrels. gas output is increasing, and the domestic gas transfer CFA264.57Billion or $500Million to In barrels of oil per day (BOPD) terms, this is market is growing. SNH supplied 10,591 the public treasury between January 1 and CONTENTS effectively sale of 46,192BOPD in 2017, against million cubic foot of gas or 29MMscf/d to October 31, 2017. During the same period in 56,192BOPD sold in 2016, This is 17% drop in KPDC, operator of the Kribi thermal power 2016, it had transferred CFA266.06Billion, or export, which is as a result of an equivalent plant, in 2017, a sharp increase from the 9,764 $510Million. I N T H E N E W S

www.africaoilgasreport.com Kenya May Start With a 60,000BOPD Project 210 Wells planned for First Phase report ullow Oil and its partners have proposed providing the best opportunity to deliver first production to 100,000BOPD or greater. It is that the initial stage of the South oil in a timeline that meets the Government of anticipated that Front End Engineering and TLokichar include a 60,000 to 80,000 Kenya expectations. Design (FEED) for the initial stage will barrels of oil per day (BOPD) Central The installed infrastructure can then be commence in 2018, with FID targeted for 2019 Processing Facility (CPF) and an export pipeline utilized for the optimization of the remaining and first oil in 2021/22. to Lamu, on the Kenyan coast, some 750 and yet to be discovered South Lokichar oil A total of six appraisal wells have been drilled kilometers from the South Lokichar basin. fields, allowing the incremental development at the Amosing field, ten at Ngamia, three at IN THIS ISSUE The development proposal, to the of these fields to be completed in an efficient Etom and two at Ekales. Additionally, extended

FROM THE EDITOR 03 MAJORS IN AFRICA 24 Government of Kenya lists the Amosing and and low cost manner post first oil. well tests, water injection tests, well COVER STORIES Ngamia fields to be developed in the first The initial stage is planned to include 210 wells interference tests and water-flood trials have KICKSTARTER 04 BIG OIL IN AFRICA 26 phase, to enable an early Final Investment through 18 well pads at Ngamia and 70 wells been undertaken, all of which have proved IN THE NEWS 07 GAS MONETISATION/ANALYSIS 28 Decision (FID) of the Amosing and Ngamia through seven well pads at Amosing, with a invaluable for planning the development of fields to takefull advantage of the current low- planned plateau rate of 60,000 to the oil fields. OIL PATCH SUBSAHARA 17 FARM IN FARM OUT 34 cost environment for both the field and 80,000BOPD. Additional stages of OIL PATCH SAHARA 19 36 infrastructure development, as well as development are expected to increase plateau ANALYSIS Pages: 24 - 26 PETROLEUM PEOPLE 22 Senegal: Cairn to Drain ~400Million Barrels With 25 Wells airn Energy and partners are “The development concept being considered FAR to contain 640MMbbls on a full field basis COVER PHOTO: Patrick Jean Pouyanné, Chairman and CEO of TOTAL. considering an initial well count of by the joint venture is a standalone FPSO (100% basis, best estimate, Contingent Capproximately 25 wells for the first facility with subsea wells and infrastructure”, Resources, unrisked). This means less than CONFERENCES, MEETINGS, EVENTS phase of development of the SNE field in FAR Limited declares in a just released report. 450MMbbls in terms of proven oil. March 7-8, 2018 [email protected] Dakar, Senegal deepwater Senegal. “The project will be designed to allow “In line with the terms of the Production Offshore Well Intervention Workshop +86 131 6607 0519 www.upstreamwestafrica.com The project is the first major oil development flexibility for anticipated subsequent Sharing Contract with the Government of Accra, Ghana [email protected] in the Northwest African margin. development”. Senegal, the joint venture has made a interventionwca.offsnetevents.com April 25-26,2018 +44 (0) 1446 677 960 The wells will be principally drilled in the field's Although FAR Ltd is a 15% non operating submission to evaluate the SNE North Mozambique Mining, Oil & Gas & Energy +44 (0) 20 3793 8800 “S500 lower reservoirs”. partner in the venture, it has been the more discovery and an application to evaluate Conference & Exhibition July 2-5, 2018 Maputo, Mozambique It is anticipated that other discoveries, e.g Fan vocal with updates than operator Cairn Energy. the FAN South discovery is currently being March 15, 2018 Nigeria Oil & Gas Conference & Exhibition (NOG) www.ametrade.org/mozmec South and SNE North, may be developed and The joint venture aims to have all Government compiled”, FAR explains in the note. “Both SPE Workshop - Ghana Future Leaders ICC, Abuja, Nigeria [email protected] www.cwcnog.com tied to the SNE field development afterwards. approvals in place by the end of 2018, with a discoveries are in tie-back range of a hub Mövenpick Ambassador Hotel, Accra, Ghana +44 (0) 207 700 4949 www.spe.org [email protected] But all these considerations are at concept target of first oil in 2021-2023. development at SNE and, if the appraisal is +234 813 893 8564 +44 (0) 207 299 3300 May 29-31, 2018 selection stage now and a clear decision is still The extensive SNE field with an area covering successful, will be tied into the SNE 2 East Africa 2018 Oil & Gas International a little far ahead. approximately 350km has been assessed by development in later phases of development. March 19-21, 2018 Trade Exhibition 6-8 August 2018 Somalia Oil, Gas & Mining Summit Nairobi (SPE) Nigeria Annual International Conference and Nairobi, Kenya expogr.com/Kenyaoil/ Exhibition (NAICE) GABON: BWOffshore Runs With The Dussafu Plan Contact: +971-4-3721421 at Eko Hotels & Suites, Victoria Island, Lagos, Nigeria. WOffshore spud the first of the two Dussafu Marin Production Sharing Contract, is in order to appraise the northwest of the [email protected] [email protected] June 14-15, 2018 [email protected] producer wells in the final lap to first oil being drilled with the Borr Norve jack-up rig. Tortue field in both the Gamba and Dentale 5th East Africa Oil & Gas Summit (EAOGS 2018) in the Dussafu Acreage offshore South The Tortue field contains oil reserves in two reservoirs. Subsequently, the rig will drill the March 25-28,2018 B The Intercontinental Nairobi, Kenya November 05-09, 2018 Gabon. main sandstone reservoirs – the Gamba and DTM 3-H production well targeting the Gamba North Africa Petroleum Exhibition & eaogs.com/ Africa Oil Week 2018 The Norwegian operator is angling for first oil the Dentale D6. Conference (NAPEC 2018) reservoir at Tortue. The two production wells [email protected] Cape Town, South Africa Oran, Algeria from the field in the second half of 2018. DTM-2H is a horizontal well targeting the will be tied back to a leased floating +44 1737 784952 www.Africa-oilweek.com www.napec-dz.com/ The DTM-2H production probe, on the Tortue Dentale D6 reservoir at 3,140 metre true production, storage and offloading (FPSO) [email protected] [email protected] oil field, in 116metre water depth, part of the vertical depth (TVD) subsea. Following drilling, vessel via subsea trees and flowlines. June 14-15, 2018 +44 (0) 207 384 8384 +213 (0) 550 46 88 98 East Africa Oil & Gas Summit 2018 the well is intended to be completed as a gas The partners have not shared the likely Kenya Intercontinental hotel November 18 - 22 , 2018 lifted, subsea oil production well with an production rates after the wells have been March 26-28, 2018 http://eaogs.com/ 36th Annual International Conference and With proved reserves of approximate 500 metre horizontal drain. The hooked up, but with proved reserves being North Africa Petroleum Exhibition & Exhibitions 2018 June 14-16, 2018 drilling and completion for DTM-2H is 15.9Million barrels of oil, certified by NSAI, an Conference Venue: Eko Hotel and Suites, Victoria Island, Lagos. 16MMBO, field is unlikely to 2nd Africa Oil & Gas Local Content Conference expected to take approximately 70 days. industry authority on reserves calculation, the Oran, Algeria [email protected] & Exhibition, Luanda, Angol deliver more than 6,000BOPD Following the drilling of the DTM-2H well the optimum outut should be around 6,000Barrels www.napec-dz.com Tel: 09092143198, 01-3429082 www.ametrade.org/alc, [email protected] rig will move first to drill the DTM-3 pilot hole of oil per day. March 29-30, 2018 +44 (0) 207 700 4949 3rd East & Southern Africa Gas & LNG Conference http://www.szwgroup.com/world-gas-congress- June 20-22, 2018 africa-2018 4th Annual Upstream West Africa Summit 2018

6 FEBRUARY-MARCH 2018 A F R I C A O I L + G A S R E P O R T AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 7 Why Hess Corp. Is Leaving Ghana A combination of several things. Crude oil prices headed for a crash in 2014. The cost of producing oil from shale formation, in Hess' heartland acreages in the US, started plunging by mid-2015 and third, the company found itself a lucky beneficiary of Cameroon's Crude Output Drops To Less Than 50KBD ExxonMobil's huge discovery in Guyana in 2015. Around the same time… See Page 34 ameroon's state hydrocarbon drop in production, according to SNH. million cubic foot or 27MMscf/d supplied in company, Société nationale des “The crude oil commercialized are Kolé (sold 2016. Chydrocarbures (SNH) says that the by bulks of 950,000 barrels), Lokélé (sold by “The gas supplied this year has helped exploit country sold 16.86Million barrels of crude oil bulks of 650,000 barrels) and Ebomé (sold by 63.09% of the plant's installed capacity”, SNH in 2017, against 20.51Million in 2016. bulks of 400,000 barrels)”, SNH reports. said. Vol 19, No 2, February-March 2018 Between the two periods, this represents a But as crude oil production is dropping, natural These hydrocarbon sales enabled SNH to decrease by 3.65Million barrels. gas output is increasing, and the domestic gas transfer CFA264.57Billion or $500Million to In barrels of oil per day (BOPD) terms, this is market is growing. SNH supplied 10,591 the public treasury between January 1 and CONTENTS effectively sale of 46,192BOPD in 2017, against million cubic foot of gas or 29MMscf/d to October 31, 2017. During the same period in 56,192BOPD sold in 2016, This is 17% drop in KPDC, operator of the Kribi thermal power 2016, it had transferred CFA266.06Billion, or export, which is as a result of an equivalent plant, in 2017, a sharp increase from the 9,764 $510Million. I N T H E N E W S www.africaoilgasreport.com Kenya May Start With a 60,000BOPD Project 210 Wells planned for First Phase report ullow Oil and its partners have proposed providing the best opportunity to deliver first production to 100,000BOPD or greater. It is that the initial stage of the South oil in a timeline that meets the Government of anticipated that Front End Engineering and TLokichar include a 60,000 to 80,000 Kenya expectations. Design (FEED) for the initial stage will barrels of oil per day (BOPD) Central The installed infrastructure can then be commence in 2018, with FID targeted for 2019 Processing Facility (CPF) and an export pipeline utilized for the optimization of the remaining and first oil in 2021/22. to Lamu, on the Kenyan coast, some 750 and yet to be discovered South Lokichar oil A total of six appraisal wells have been drilled kilometers from the South Lokichar basin. fields, allowing the incremental development at the Amosing field, ten at Ngamia, three at IN THIS ISSUE The development proposal, to the of these fields to be completed in an efficient Etom and two at Ekales. Additionally, extended

6 FEBRUARY-MARCH 2018 A F R I C A O I L + G A S R E P O R T AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 7 Nigerian Indies In New Year Bonus anuary 2018 heralded some of the highest sourced by Africa Oil+Gas Report. The The month of February is a painful two year volumes in oil and gas production in the NPDC/Shoreline JV and NPDC/NECONDE JVs anniversary of the bombing of the …that Jlast 24 months for Nigerian independents averaged around 59,000BOPD with the latter cramped production in the Niger Delta and led with E&P assets in the Western Niger Delta. cruising at as high as 77,000BOPD as the to the country's recession. The export line was The NPDC /Seplat JV breached 400Million month came to a close. The NPDC/NDWestern not opened until 16 months later, in June

www.africaoilgasreport.com roton is evaluating a number of independent alternative oil JV partners to occur in the next six months. evacuation routes that will improve consistency of supply of its roton's own Lease Automatic Custody Transfer (“LACT”) units Ecrude oil, produced from the Oil Mining Lease (OML) 18 to the for OML 18 are now in Nigeria and, following commissioning market. and regulatory sign off, are anticipated to be operational in the The company prefers a new dedicated pipeline and offshore Floating E second half of 2018. Storage and Offloading (FSO) system. The use of these units is expected to provide accurate measurements The decision is determined by two challenges with the current at the transfer point and therefore reduced the pipeline losses arrangement. The first is that Tank tops and cargo shipping delays at the allocated to to the company. Bonny Terminal, as well as intermittent upstream outages on the Eroton is optimistic that the proposed alternative crude evacuation Nembe Creek Trunk Line pipeline (“NCTL”), the export pipeline used to (pipeline) and storage facilities will realise significant advantages with transport oil to the Bonny Terminal, has resulted in material production respect to pipeline loss allocation and production up-time. As Eroton commences a drilling campaign to increase production from the downtime at OML 18. The second is Pipeline Losses, claimed by Shell second half of 2018 to first half of 2019, the timing of the increased The arrival of ExxonMobil, sends a positive message to the rest of the world of the world the rest to message sends a positive of ExxonMobil, . “ The arrival Nigeria, operator of the Bonny Terminal, output should which Eroton finds dubious. coincide with the Following the installation of new Lease inauguration of Automatic Custody Transfer (“LACT”) the new LACT units on the NCTL line in 2016, “the facility. The Bonny Terminal operator allocated an C o m p a n y average of approximately 35% pipeline e x p e c t s losses to all operators using NCTL for tendering and approval by JV Tullow: The Drilling Starts Tullow: in February Jubilee area the Greater in TEN fields and, later, drilling programme incremental starts Tullow 2018. This additional well capacity combined with current strong production from both fields will from production strong with current combined capacity 2018. This additional well years. in the coming production and sustain maximise 2017 (compared with 9% assumed and partners to occur documented in the Company's in the next six Boakye Agyarko, Minister of Energy, is especially excited about the January 18, 2018 Petroleum agreement agreement about the January 18, 2018 Petroleum is especially excited of Energy, Minister Agyarko, Boakye the adding that in Accra, the ceremony he said at sector”, big business in the energy for Ghana is ready that have couldn't “We sector. energy by a robust powered nation will help in building an industrialized partnership the supermajor's for house reception a state at Addo, Nana Akufo- President he told partner”, a better found 4 on Page story Full representatives”. Agyarko Is Excited By the PA With ExxonMobil the PA By Is Excited Agyarko and Ghana ExxonMobil between admission document dated 26 August months. 2016”, Eroton declares. The company disputes the allocation and has requested that the relevant regulatory authorities investigate the allocation of such excessive losses with a view to reallocating losses in Eroton's favour.

Amni's Output Resurgence In The New Year mni Petroleum produced about 13,500BOPD while Ima produced slightly less campaign. Meanwhile, the company is 14,500Barrels of oil per day from its than 1,000BOPD. Amni is hoping to boost the working up plans for development of the Tubu AIma and Okoro fields, in OMLs 117 and Okoro production, which peaked at around field, an undeveloped discovery located in the 112 respectively. Okoro produced over 24,000BOPD three years ago, with a two well OML 52 it acquired from Chevron in 2015. Excel Looks To Turn Up The Volume xcel E&P hopes to ramp up production reservoir at the moment. “We plan to main flowstation equipment are expected in from its Eremor (marginal oil field) in increase production with rigless activity country in March 2018. Awosika does not Ethe Western Niger Delta, onshore starting in March 2018 and to drill two new disclose how the funding for two wells will be Nigeria, from the current 1,000BOPD to wells before the end of 2018 to boost output sourced. 1,500BOPD. to 5,000BOPD”, says Biodun Awosika, Excel The field is producing from one well and E&P's Chief Executive Officer. The company's

Copyright 2018, standard cubic feet per day in the third week JV produced as much as 307MMscf/d by the 2017. The January 2018 figures simply © AFRICA OIL+GAS REPORT of that month, and ended January averaging third week of January, a relatively high figure indicate that the companies are beginning to 60,930BOPD 8crude oil production alone) in for the partnership, but its liquid production get a good handle on production since that FEBRUARY 2018 UPDATE FEBRUARY OMLs 4, 38 and 41, according to field reports remained less than 20,000BOPD. incident. report Teams were on the ground between November November between on the ground were Teams the engage and December 2017 to the soft issues before and address communities GNPC Addresses the Social Performance the Social Performance GNPC Addresses Basin Project Issues of the Voltaian the Social Performance GNPC is addressing (VBP). Basin Project issues of the Voltaian in deployed are seismic acquisition equipment the initial works. for earmarked the areas impact and mitigation Issues of potential and including compensation measures, employment opportunities etc were the focus. were opportunities etc employment Vol 19, No 2, February-March 2018 Vol I N T H E N E W S Eroton Seeks Alternative ...LACT Units Arrive Nigeria Export Route To NCTL Company expects tendering and approval by www.africaoilgasreport.com roton is evaluating a number of independent alternative oil JV partners to occur in the next six months. evacuation routes that will improve consistency of supply of its roton's own Lease Automatic Custody Transfer (“LACT”) units Ecrude oil, produced from the Oil Mining Lease (OML) 18 to the for OML 18 are now in Nigeria and, following commissioning market. and regulatory sign off, are anticipated to be operational in the The company prefers a new dedicated pipeline and offshore Floating E second half of 2018. Storage and Offloading (FSO) system. The use of these units is expected to provide accurate measurements The decision is determined by two challenges with the current at the transfer point and therefore reduced the pipeline losses arrangement. The first is that Tank tops and cargo shipping delays at the allocated to to the company. Bonny Terminal, as well as intermittent upstream outages on the Eroton is optimistic that the proposed alternative crude evacuation Nembe Creek Trunk Line pipeline (“NCTL”), the export pipeline used to (pipeline) and storage facilities will realise significant advantages with transport oil to the Bonny Terminal, has resulted in material production respect to pipeline loss allocation and production up-time. As Eroton commences a drilling campaign to increase production from the downtime at OML 18. The second is Pipeline Losses, claimed by Shell second half of 2018 to first half of 2019, the timing of the increased The arrival of ExxonMobil, sends a positive message to the rest of the world of the world the rest to message sends a positive of ExxonMobil, . “ The arrival Nigeria, operator of the Bonny Terminal, output should which Eroton finds dubious. coincide with the Following the installation of new Lease inauguration of Automatic Custody Transfer (“LACT”) the new LACT units on the NCTL line in 2016, “the facility. The Bonny Terminal operator allocated an C o m p a n y average of approximately 35% pipeline e x p e c t s losses to all operators using NCTL for tendering and approval by JV Tullow: The Drilling Starts Tullow: in February Jubilee area the Greater in TEN fields and, later, drilling programme incremental starts Tullow 2018. This additional well capacity combined with current strong production from both fields will from production strong with current combined capacity 2018. This additional well years. in the coming production and sustain maximise 2017 (compared with 9% assumed and partners to occur documented in the Company's in the next six Boakye Agyarko, Minister of Energy, is especially excited about the January 18, 2018 Petroleum agreement agreement about the January 18, 2018 Petroleum is especially excited of Energy, Minister Agyarko, Boakye the adding that in Accra, the ceremony he said at sector”, big business in the energy for Ghana is ready that have couldn't “We sector. energy by a robust powered nation will help in building an industrialized partnership the supermajor's for house reception a state at Addo, Nana Akufo- President he told partner”, a better found 4 on Page story Full representatives”. Agyarko Is Excited By the PA With ExxonMobil the PA By Is Excited Agyarko and Ghana ExxonMobil between admission document dated 26 August months. 2016”, Eroton declares. The company disputes the allocation and has requested that the relevant regulatory authorities investigate the allocation of such excessive losses with a view to reallocating losses in Eroton's favour.

March 2018. March construction overruns, and cost delays considerable After Group Five Likely To Deliver Kpone Gas to Power Plant By By Plant Power Gas to Kpone Deliver To Likely Five Group the 350MW Kpone complete to expects Five Group company Independent Gas and oil fired combined cycle power plant. The plant. power cycle combined Gas and oil fired Independent $410MM, although it's not clear how much was original budget to be. “The is now expected to has come the final cost contract in a report, says Five Group loss,” life-to-date an overall reflect of procured arrival with the late together citing design delays, items on site following a change in Ghanaian law during the in Ghanaian law a change following on site items the original which impacted factors key as two contract, Ghana Launches Petroleum Register Register Ghana Launches Petroleum of Ghana has launched an online platform The Government by ratified and contracts Agreements Petroleum host to (www.ghanapetroleumregister.com), contractual completion date of September 13, 2017. of September date completion contractual Parliament as well as Petroleum Permits, Certificates, Authorisations, Approvals and Consents. and Consents. Approvals Authorisations, Certificates, Permits, as Petroleum as well Parliament The Petroleum Register is aimed at broadening the boundaries of transparency and the boundaries of transparency broadening is aimed at Register The Petroleum in Register activities a Petroleum Petroleum in the Upstream disclosure information accordance with the provisions of the Petroleum Exploration and Production Law. and Production Exploration of the Petroleum with the provisions accordance Full story on Page 29 . on Page story Full there was hardly a molecule of gas a molecule of gas hardly was there 7MMscf/d. See to which translates feet, TEN Field: Gas Production Is TEN Field: Gas Production Disappointing TEN Field has been from Production since and insignificant inconsistent rather be to began 2017, when records May that indicate Corporation Petroleum the field since May from produced cubic of 238Million standard production taken. Data from the Ghana National the Ghana National from Data taken. AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 9 Vol 19, No 2, February-March 2018 JANUARY 2018 UPDATE ©Copyright 2018 www.africaoilgasreport.com AFRICA OIL+GAS REPORT NIGERIA’S MARGINAL FIELDS: ACTIVITY report PLATFORM PETROLEUM/NEWCROSS ENERGIA PETROLEUM Egbeoma Field Ebendo Field INDEPENDENT ENERGY WALTERSMITH PETROMAN Ibigwe Field Production commenced: 2007 Partner: Oando Ofa Field Production: commenced: 2008 December 2017 Production: 3,500BOPD. Production commenced: 2009 Production unlikely to January 2018 Production: 406BOPD. The Egbaoma Gas Processing Plant has finally been commissioned, producing Propane January 2018 output: happen on this field. Production was shut in from January 3, 2018, and LPG. Platform is unable to provide the entire 30MMscf/d of gas required as input Why? In 2009, Afren re- 4,500BOPD. Energia is working to mid February 2018 as a result of the repair entered Ofa-1 and because of its own production constraints, so the volume of output is lower than optimal. up plans to optimise its gas work on the Trans Niger Pipeline, the evacuation facility. processing and transportation conducted a Drill Stem Test SAHARA ENERGY FIELDS The production figure is simply the three days production facility in order to deliver which failed to establish Tsekelewu Field divided by the 31 days of the month. 15MMscf/d of dry natural gas to commercial flow. In 2012, Awarded in 2003, Sahara Energy has neither performed a the Escravos Lagos Pipeline Xenergi, a local early re-entry, nor commenced new drilling on this field. The System (ELPS). production facility provider, company has access to funding but doesn't consider this had the same experience. asset a priority. ALL GRACE ENERGY Ubima Field GUARANTEE PETROLEUM/OWENA Technical/Financing Partner: Eland Oil &Gas Ororo Field Technical and Financing Partner: Sirius-Sirius Petroleum has signed a Joint Operating Production: Nil. Eland Oil and Gas says it plans to establish early Agreement (JOA) with its partners Guarantee Petroleum and Owena for the development of production in Ubima in 2017, via low cost re-entry of Ubima-1, but it the Ororo Field. The JOA enables Sirius to transition from an investing company to an doesn't nail down the date. operating company. Sirius has also entered into a $10MM revolving pre-payment facility (“Pre- payment Agreement” or “Agreement”) and commercial offtake agreement (“Offtake Agreement”) in respect to the sales of the crude produced from the field, with BP Oil International, a subsidiary of BP. The company is, however yet to move to site for field PILLAR OIL development. Umuseti/ Igbuku Field MILLENIUM OIL &GAS Production commenced: Oza Field EXCEL E&P 2009 Partners: Hardy Oil & Emerald Eremor Field January 2018 output: Production commenced: October Production commenced November 2016 3,000BOPD. 2017 Crude Oil injection into the Trans Excel is the sole operator of its Eremor field and its facilities and produces 1000 BOPD at the moment from one well and reservoir. The company says that plans are on the way to ramp up National Pipeline (TNP) has started. All the production to 1,500 BOPD with rigless activity in March 2018 and to 5,000BOPD with the physical infrastructure is on ground. Early drilling of two new wells before the end of 2018. Main flowstation equipment expected in Production Facility (EPF) and tie-in at country in March 2018. SPDC's Isimiri flowstation, Pipelaying of 27.5km of 3” inter well flowlines and 3”and 6” test and crude delivery pipelines from NIGER DELTA PETROLEUM the Oza manifold to Isimiri flow station are Ogbele Field all done. Production Commenced: August 2005 January 2018 Production disrupted by the repair work on the Trans Niger Pipeline, the crude evacuation facility. ASSOCIATED OIL & GAS/DANSAKI Tom Shot Bank Field Technical/Financing Partner: Midway Resources BAYELSA OIL COMPANY LIMITED Renewed field operations had planned to commence Atala Field within Q2, 2017, but that has not happened. The Technical and Funding Partner: Century E&P PRIME marginal field licence with respect to the TSB Field was Production HAS NOT commenced ENERGY/SUFFOLK issued under the 1st Marginal Field Round in 2003 and later extended until 14th March, 2015. It has now been An Early Production Facility and other ancillary Asaramatoru Field. Production further extended for a period of 24 months with effect units had been commenced: 2013. from 1st, May 2016. This company may need a installed on the field by end of May 2017. Average for January funding partner. Crude oil is produced into 2018 was 1,200BOPD. GREEN ENERGY Crude oil produced via an NETWORK E&P storage barge. But an export barge to deliver Otakikpo Field Extended Well Test (EWT) Qua Ibo Field the crude to an FPSO (in Technical/Financing Partner: LEKOIL Licence is evacuated in a Partner: Oando Production commenced: February 2017. effect a transportation/export solution) is still a barge and delivered at Production commenced: February 2015 January 2018 output: 7,600BOPD. challenge. Amni Petroleum's Ima January 2018 Production: 2,159BOPD. Contract signed with Sinopec Changjiang Engineering for facility offshore. acquisition of 197sq km three dimensional (3D) seismic data to update the existing 2D coverage. Drilling for production MOBIL SHELL TOTAL NPDC PAN OCEAN increase will be based on the data interpretation. CHEVRON AGIP ADDAX SEPLAT Vol 19, No 2, February-March 2018 JANUARY 2018 UPDATE ©Copyright 2018 www.africaoilgasreport.com AFRICA OIL+GAS REPORT NIGERIA’S MARGINAL FIELDS: ACTIVITY report PLATFORM PETROLEUM/NEWCROSS ENERGIA PETROLEUM Egbeoma Field Ebendo Field INDEPENDENT ENERGY WALTERSMITH PETROMAN Ibigwe Field Production commenced: 2007 Partner: Oando Ofa Field Production: commenced: 2008 December 2017 Production: 3,500BOPD. Production commenced: 2009 Production unlikely to January 2018 Production: 406BOPD. The Egbaoma Gas Processing Plant has finally been commissioned, producing Propane January 2018 output: happen on this field. Production was shut in from January 3, 2018, and LPG. Platform is unable to provide the entire 30MMscf/d of gas required as input Why? In 2009, Afren re- 4,500BOPD. Energia is working to mid February 2018 as a result of the repair entered Ofa-1 and because of its own production constraints, so the volume of output is lower than optimal. up plans to optimise its gas work on the Trans Niger Pipeline, the evacuation facility. processing and transportation conducted a Drill Stem Test SAHARA ENERGY FIELDS The production figure is simply the three days production facility in order to deliver which failed to establish Tsekelewu Field divided by the 31 days of the month. 15MMscf/d of dry natural gas to commercial flow. In 2012, Awarded in 2003, Sahara Energy has neither performed a the Escravos Lagos Pipeline Xenergi, a local early re-entry, nor commenced new drilling on this field. The System (ELPS). production facility provider, company has access to funding but doesn't consider this had the same experience. asset a priority. ALL GRACE ENERGY Ubima Field GUARANTEE PETROLEUM/OWENA Technical/Financing Partner: Eland Oil &Gas Ororo Field Technical and Financing Partner: Sirius-Sirius Petroleum has signed a Joint Operating Production: Nil. Eland Oil and Gas says it plans to establish early Agreement (JOA) with its partners Guarantee Petroleum and Owena for the development of production in Ubima in 2017, via low cost re-entry of Ubima-1, but it the Ororo Field. The JOA enables Sirius to transition from an investing company to an doesn't nail down the date. operating company. Sirius has also entered into a $10MM revolving pre-payment facility (“Pre- payment Agreement” or “Agreement”) and commercial offtake agreement (“Offtake Agreement”) in respect to the sales of the crude produced from the field, with BP Oil International, a subsidiary of BP. The company is, however yet to move to site for field PILLAR OIL development. Umuseti/ Igbuku Field MILLENIUM OIL &GAS Production commenced: Oza Field EXCEL E&P 2009 Partners: Hardy Oil & Emerald Eremor Field January 2018 output: Production commenced: October Production commenced November 2016 3,000BOPD. 2017 Crude Oil injection into the Trans Excel is the sole operator of its Eremor field and its facilities and produces 1000 BOPD at the moment from one well and reservoir. The company says that plans are on the way to ramp up National Pipeline (TNP) has started. All the production to 1,500 BOPD with rigless activity in March 2018 and to 5,000BOPD with the physical infrastructure is on ground. Early drilling of two new wells before the end of 2018. Main flowstation equipment expected in Production Facility (EPF) and tie-in at country in March 2018. SPDC's Isimiri flowstation, Pipelaying of 27.5km of 3” inter well flowlines and 3”and 6” test and crude delivery pipelines from NIGER DELTA PETROLEUM the Oza manifold to Isimiri flow station are Ogbele Field all done. Production Commenced: August 2005 January 2018 Production disrupted by the repair work on the Trans Niger Pipeline, the crude evacuation facility. ASSOCIATED OIL & GAS/DANSAKI Tom Shot Bank Field Technical/Financing Partner: Midway Resources BAYELSA OIL COMPANY LIMITED Renewed field operations had planned to commence Atala Field within Q2, 2017, but that has not happened. The Technical and Funding Partner: Century E&P PRIME marginal field licence with respect to the TSB Field was Production HAS NOT commenced ENERGY/SUFFOLK issued under the 1st Marginal Field Round in 2003 and later extended until 14th March, 2015. It has now been An Early Production Facility and other ancillary Asaramatoru Field. Production further extended for a period of 24 months with effect units had been commenced: 2013. from 1st, May 2016. This company may need a installed on the field by end of May 2017. Average for January funding partner. Crude oil is produced into 2018 was 1,200BOPD. GREEN ENERGY Crude oil produced via an NETWORK E&P storage barge. But an export barge to deliver Otakikpo Field Extended Well Test (EWT) Qua Ibo Field the crude to an FPSO (in Technical/Financing Partner: LEKOIL Licence is evacuated in a Partner: Oando Production commenced: February 2017. effect a transportation/export solution) is still a barge and delivered at Production commenced: February 2015 January 2018 output: 7,600BOPD. challenge. Amni Petroleum's Ima January 2018 Production: 2,159BOPD. Contract signed with Sinopec Changjiang Engineering for facility offshore. acquisition of 197sq km three dimensional (3D) seismic data to update the existing 2D coverage. Drilling for production MOBIL SHELL TOTAL NPDC PAN OCEAN increase will be based on the data interpretation. CHEVRON AGIP ADDAX SEPLAT

ANGOLA's CRUDE OIL EXPORT AND PRODUCING COMPANIES (FOREIGN &LOCAL) JANUARY-DECEMBER, 2017 NIGERIA's TOP INDIGENOUS CRUDE OIL PRODUCING COMPANIES - JANUARY 2018 GROSS PARTNER 3 PARTNER 4 PARTNER 5 PARTNER 6 OPERATED EQUITY Prdn GROSS Field KEY PRODUCING BLOCK NAME VOLUME OPERATOR PARTNER1 (Percentage) PARTNER 2(Percentage) (Percentage) (Percentage) (Percentage) (Percentage) COMPANY NAME Prdn (BOPD) (BOPD) Prdn (BOPD) ACREAGES LICENCE TYPES FIELD BLOCK 17 219,690,792 TOTAL 40% ESSO 20% BP 16.67% STATOIL 23.33% OMLs 4, 26, 30, 34, 38, BLOCK 15 103,893,065 ESSO 40% BP 26.67% ENI 20% STATOIL 13.33% NPDC 186,855 148,535 247,979 JV, PSC Okono 41, 65, 66, 111, 119 BLOCKS OA&B 88,116,989 CHEVRON 39.2% Sonangol 41% TOTAL 10% ENI 09.8% BLOCK 31 52,689,920 BP 26.67% ESSO 25% Sonangol P&P 20% STATOIL 13.33% MARATHON 10% China Sonangol 5% AITEO 90,000 40,500 90,000 OML 29 JV Nembe Creek BLOCK 18 41,332,828 BP 50% SSI 50% NONE NONE NONE NONE NONE SEPLAT - Note 1 61,190 31,329 74,690 OMLs 4, 38, 41, 53, 55 JV Oben, Sapele BLOCK 15/06 40,967,171 ENI 35% SSI 20% Sonangol P&P 15% TOTAL 15% FALCON 5% STATOIL 5% PETROBRAS 5% Cawthorne EROTON 55,000 24,750 55,000 OML 18 JV BLOCK 14&14 K/A-IMI 32,996,991 CHEVRON 31% Sonangol P&P 20% ENI 20% TOTAL 20% GALP 9% Channel BLOCK 3/05 10,842,785 Sonangol P&P China Sonangol 25% AJOCO 20% ENI 12% SOMOIL 10% NAFTGAS 4% INA NAFTA 4% NEWCROSS E&P 30,000 13,500 30,000 OML 24 JV Ekulama BLOCK 4/05 2,957,292 Sonangol P&P 50% STATOIL 20% SOMOIL 15% ACREP 15% NONE NONE NONE ORIENTAL 22,000 22,000 22,000 EBOK Marginal Field Ebok BLOCK 2/05 826,210 PETROBRAS Sonangol P&P 25% CHEVRON 20% SOMOIL 9.3% POLIEDRO 9.1% KOTOIL 9.1% MIDWESTERN 19,000 13,300 19,000 UMUSADEGE Marginal Field Umusadege BLOCK 3/05A 560,785 Sonangol P&P China Sonangol 25% AJOCO 20% ENI 12% SOMOIL 10% NAFTGAS 4% INA NAFTA 4% CONOIL 12,000 12,000 12,000 OMLs 59, 103 Sole Risk Otuo South ZONE SUL TERRESTE CABINDA 404,500 Plus Petro 50% Sonangol P&P 20% Force Petroleum 20% CUPET 5% BLOCK FS/FST 325,542 SOMOIL 15% Sonangol 63.67% CHEVRON 14.3% Sonangol P7P 5% NONE NONE BELEMAOIL 10,000 1,750 10,000 OML 55 JV TOTALS 595,604,870 AMNI PETROLEUM 14,384 14,384 14,384 OMLs 112, 117 Sole Risk Okoro ANGOLA's INDIGENOUS PRODUCING COMPANIES-2017 EXPORT ENTITLEMENTS JANUARY-DECEMBER, 2017 GREEN ENERGY/LEKOIL 7,600 7,600 7,600 OTAKIKPO Marginal Field Otakikpo OPERATED PAN OCEAN 6,000 2,400 6,000 OML 98 JV Ogharefe COMPANY NAME Prdn EQUITY Prdn GROSS Prdn ACREAGES ERIN ENERGY 5,000 5,000 5,000 OML 120 Sole Risk Oyo Blocks FS/FST, 2/05, 3/05, SOMOIL 325,542 1,464,980 15,512,614 ENERGIA 4,500 2,588 4,500 EBENDO Marginal Field Ebendo 3/05A, 4/05 FALCON NIL 2,048,359 40,967,171 Block 15/06 PLATFORM 3,500 2,100 3,500 EGBEOMA FIELD Marginal Field, JV Egbeoma Field YINKA FOLAWIYO 3,200 3,200 3,200 OML 113 Sole Risk Aje Field ACREP NIL 443,594 2,957,292 Block 4/05 POLIEDRO NIL 75,185 826,210 Block 2/05 PILLAR OIL 3,000 1,800 3,000 UMUSETI Marginal Field Umuseti KOTOIL NIL 75,185 826,210 Block 2/05 Zone Sul Terreste MONI PULO 2,800 2,800 2,800 OML 114 Sole Risk Abana FORCE PETROLEUM NIL 80,900 404,500 Cabinda NETWORK E & P 2,159 2,159 2,159 QUA IBO Marginal Field Qua Ibo TOTALS 325,542 4,188,202 61,493,997 NIGER DELTA PETROLEUM 1,600 1,600 1,600 OGBELE FIELD Marginal Field Ogbele Data sourced from the Angolan Ministry of Finance. Daily production averaged 1.632MMBOPD during the period PRIME ENERGY 1,200 720 1,200 ASSARAMATORU Marginal Field Assaramatoru EXCEL E&P 1,000 1,000 1,000 EREMOR FIELD Marginal Field Eremor FRONTIER OIL 520 N/A 520 UQUO FIELD Marginal Uquo TOTAL leads in Angola, With BP and ExxonMobil in Close Chase WALTER SMITH- Note 6 406 406 406 IBIGWE FIELD Marginal Field Ibigwe OTAL is the leading crude oil producer in Angola on every count: SHORELINE NAT' RESOURCES AMT 26,662 59,248 OML 30 JV Afiesere operated, gross and equity, but it is followed in hurt pursuit by BP KAOMBO PROJECT NECONDE AMT 26,860 59,688 OML 42 JV Jones Creek Ughelli, Warri ExxonMobil and BP in net output. ND WESTERN AMT 7,687 17,083 OML 34 JV T River Angola's 1.632Million Barrels Per Day output in 2017 was contributed ELCREST AMT 7,639 16,976 OML 40 JV Opuama mainly by these three companies delivering equity production of FIRST HYDROCARBON AMT 2,534 5,630 OML 26 JV Ogini 299,815BOPD, 271,369BOPD and 270,323BOPD respectively. OMLs 60, 61, 62, 63, 125,JV, PSC, Marginal OANDO ER - Note 2 NIL 15,000 100,000 TOTAL operated Block 17 remains the country's main cash cow, with a Field EBENDO, QUA IBOE total of 219Million barrels produced in the acreage alone, more than a Agbami Field FAMFA - Note 3 NIL 20,000 238,000 OML 127 Sole Risk third of the country's entire output of 595Million barrels in the year. (Deepwater) AKPO Field Although they are non operators in that prolific asset, BP and SAPETRO - Note 4 NIL 15,000 120,000 OML 130 Sole Risk (Deepwater) ExxonMobil benefit from the hefty output with their 20% and 16.67% SUNTRUST NIL 5,700 19,000 UMUSADEGE Marginal Field Umusadege equity in the lease respectively. TOTALS 356,059 333,968 1,005,184 Indeed, ExxonMobil's 20% share of Block 17 account for higher volume NIGERIA's TOP INDIGENOUS NATURAL GAS PRODUCING COMPANIES-DECEMBER 2017 OUTPUT than its 40% equity in Block 15, which it operates. I N T H E N E W S OPERATED GROSS Field The immediate also rans in Angola's 2017 crude oil proceeds are ENI, Prdn EQUITY Prdn Prdn COMPANY NAME (MMscf/d) (MMsf/d) (MMscf/d) ACREAGES/Offtaker with net equity production of 141,700BOPD and Chevron, with Includes Oben, 123,240BOPD. NPDC 273 326 702 Utorogu, Ughelli and TOTAL is poised to sprint ahead, with the Kaombo development (Block Oredo 32) scheduled to start producing around March (could be later). Peak Mainly ENI operated production is 230,000BOPD. TOTAL holds 30% in the acreage, with OANDO ER NIL 186 900 into NLNG system and Okpai Power Plant ExxonMobil holding 15%. BP is absent in this property. Utorogu Gas, fed into ND WESTERN NIL 133 289 the Escravos Lagos Pipeline System (ELPS) Angola Trounces Nigeria in 2017 Crude Oil Output Fed into NGC lines ngola averaged daily crude oil different in terms of pattern; they cite Nigeria operating in the country. SEPLAT 371 167 371 (Geregu line and the production of 1.632Million in 2017, as having produced 1.66MMBOPD contrasted The Central Bank of Nigeria gives quarterly ELPS) compared with Nigeria's 1.510Million, with Angola's 1.639MMBOPD. reports of all liquid hydrocarbons, including Sold to Ibom Power, A FRONTIER 95 NA 95 Unicem and Calabar according to the current (February 2018) issue But for us in Africa Oil+Gas Report, the natural gas liquids and condensates. Fourth Plant of OPEC's Monthly Oil Market Report officially supplied data (i.e. one provided by quarter 2017 report indicated 1.8MMBPD of Sulpplied to Notore (MOMR). the countries' authorities) in the MOMR, liquid hydrocarbons. This is not as definitive as EROTON 50 22.5 50 Fertiliser company These figures were obtained by OPEC corroborates the data on Angola's dedicated the Angolan reporting. The OPEC report and Pumped into NLNG NIGER DELTA - Note 5 35 35 35 secretariat through direct communications reporting website, which we access every the Angolan dedicated website, cite just the system with the approving authorities in both crude oil data. Condensates are not counted in ENERGIA 10 10 10 Sold in the community Plans for expansion and sale to NGC month (and publish above on this page). TOTALS 834 879.5 2,452 countries, the report shows (See listing on Nigeria does not have a comparable website OPEC production quota even though they are Notes Below: page 38). with the Angolan site, which presents every sold in the market as crude oil. (1) SEPLAT Production now includes Pillar Oil operated Umuseti field, as well as OMLs 53&55. Production data obtained by the Secretariat month, almost in real time, crude oil (2) Most of Oando's gas production via NNPC/Agip JV is supplied to the NLNG; but 4.275MMsf/d is its share of the Energia operated Ebendo field from secondary sources are significantly production data by all the companies (3) Famfa holds 60% equity in OML 127 (Agbami), which outputs 238,000BOPD, but is lifting 20,000BOPD, as a result of its "carried" status (4) SAPETRO's take is 13.5% of Akpo field's (OML 130)'s daily production of 120,000BOPD but it lifts 18,000BOPD due to its "carried" status (5) Niger Delta Petroleum Resources delivered 35MMscf/d of gas from the Ogbele field to the Nigerian Liquefied Natural Gas(NLNG) system. (6) Waltersmith's average production for January 2018 is this low because of the shut down and maintenance of the Trans Niger Pipeline

12 FEBRUARY-MARCH 2018 A F R I C A O I L + G A S R E P O R T AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 13

Nigerian Oil Revenue Has Declined Every Year From 2011 to 2015 Comparative Analysis of Financial Flows from 2011 to 2015 I N T H E N E W S

: This data is excerpted from the 2015 Audit Report of the Nigeria Extractive Industry Transparency Initiative (NEITI).

FEBRUARY-MARCH 2018 A F R I C A O I L + G A S R E P O R T AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 14 15 Nigerian Oil Revenue Has Declined Every Year From 2011 to 2015 Comparative Analysis of Financial Flows from 2011 to 2015 I N T H E N E W S

: This data is excerpted from the 2015 Audit Report of the Nigeria Extractive Industry Transparency Initiative (NEITI).

www.africaoilgasreport.com report AFRICA OIL+GAS REPORT was was January ANGOLAANGOLA RIGRIG COUNTCOUNT JANUARYJANUARY 20182018 January 2018 January 2018 -Gross averaged 17,083BOPD averaged Copyright 2018, ©

AFRICA OIL+GAS REPORT January 2018 UPDATE NPDC/NDWestern OML 34 in JV Production Gross 2018 NDWestern). to (7,687BOPD net

report NNPC/AITEO JV NNPC/AITEO OML 29 January 2018 production averaged production 90,000BOPD (40,050BOPD facility The export AITEO). to net Nembe Creek Trunk Line was down Line was Trunk Nembe Creek of October. 10 days the last until Vol 19, No 2, February-March 2018 Vol gross output was 10,000BOPD. Seplat 10,000BOPD. output was gross 5,630BOPD (2,534BOPD net to FHN). to 5,630BOPD (2,534BOPD net NPDC/FIRST HYDROCARBON NIGERIA HYDROCARBON NPDC/FIRST OML 26 in oil production Gross NPDC/Shoreline Natural Resources Natural NPDC/Shoreline OML 30 in oil production Gross Shoreline). to 59,248BOPD (26,662BOPD net

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Operator Belemaoil was entitled to 1,750BOPD. to entitled Belemaoil was Operator result of a financing arrangement. NNPC equity is 60%. of a financing arrangement. result was entitled to 2,250BOPD (or 22.5%) of this as a to entitled was NNPC/BELEMAOIL OML 55 January 2018

-Gross production average was average production -Gross NNPC/EROTON JV NNPC/EROTON OML 18 January 2018 was production 55,000BOPD (24,750BOPD net EROTON to Conoil Successfully Tests, Plugs, Cretaceous Discovery in the Niger Delta 60,930BOPD for these three acreages (27,419BOPD acreages these three 60,930BOPD for since month the best This January was Seplat). to net February 2016.. February OMLs 4, 38 &41 January 2018 NPDC/SEPLAT he Nigerian junior, Conoil Producing, has “Producing the reservoirs will be very challenging plugged Toju Ejanla-1, the very because of low porosity-permeability”, says a Texperimental, exploratory well drilled into source familiar with the data. the cretaceous reservoirs of offshore Oil Mining It is unusual to find commercial sized Lease (OML) 103 in the western flank of the Niger hydrocarbons in cretaceous sequences in the

Delta. Niger Delta basin, which is a tertiary basin. The Two reservoirs in Toju Ejanla -1 successfully tested western flank, in which OML 103 is domiciled, is Equity to Newcross was was Newcross to Equity

for oil while other reservoirs were very tight with close to the boundary of the Benin Basin, whose tests unsuccessful. sedimentary deposits are located in the NNPC/NEWCROSS JV NNPC/NEWCROSS OML 24 E&P operated The Newcross NNPC/Newcross JV averaged JV averaged NNPC/Newcross in January 30,000BOPD gross 2018. 13,500BOPD. 13,500BOPD. Initial post-well reserves are estimated at 50 cretaceous, an older geological sequence. Toju MMbbls. Ejanla-1 is located on the cusp between these two Conoil used the Adriatic-1 a jack up Rig operated basins and it encountered sequences in three NPDC/NECONDE JV NPDC/NECONDE OML 42 JV recorded The NPDC/NECONDE about 59,688BOPD gross production in Neconde) to (26,860BOPD net January 2018. by Shelf Drilling for Toju Ejanla-1. geologic “depobelts”, a term Nigerian geologists

. The company is not in a haste to do an appraisal use to describe the series of “sub basins” that well on this particular well and there are other make up the onshore/shelf system of the Niger prospects in the inventory, meant to test the Delta. However way anyone sees it, this is a very Cretaceous play, which is still poorly understood, important probe. in Nigeria, in terms of hydrocarbon fetch area, was January 2018 reservoir fairway and the overall petroleum system.

Eroton Expects A Drilling Campaign From 4Q 2018 16,976BOPD (7,639BOPD Elcrest to net NPDC/ELCREST OML 40 in oil production Gross January 2018 igerian junior Eroton expects that rig- production, (mostly Awoba and Krakama fields), it

based workovers on the Oil Mining Lease will factor uptake in assets like Akaso, Cawthorne

O I L P A T C H S U B S A H A R A

N(OML) 18, previously anticipated to Channel and Alakiri fields, whose Field Re- commence in Q4 2017, will commence in Q3 Development Plans have been submitted to the 2018, and new wells will be drilled commencing Nigerian National Petroleum Company (“NNPC”), MOBIL CHEVRON TOTAL ADDAX SHELL AGIP NPDC SEPLAT OCEAN PAN Q4 2018. with approval expected during Q1 2018. These are all subject to favourable conclusion of The proposed drilling campaign is expected to the 2018 Budgetary planning process, which was yield significant production gains. Eroton expects ongoing at the time of our going to press with this the work will add materially to its production edition in mid February 2018. base, although it doesn't say exactly how much Although the planned drilling is meant for increase, from the current 55,000BOPD. are hoping to execute Gas Sale Agreements with West African Gas African with West Gas Sale Agreements execute hoping to are has been submitted to Nigerian regulatory authorities. Partners authorities. Partners regulatory Nigerian to has been submitted Government. State and the Lagos Pipeline Company OML 113-Aje Field Gas development the Turonan Plan for A Field Development in 3,200BOPD on average The oil rim produced FOLAWIYO AND PARTNERS FOLAWIYO

NIGERIAN INDEPENDENTS: UPSTREAM ACTIVITY MAP ACTIVITY UPSTREAM INDEPENDENTS: NIGERIAN increased take in fields that are currently in OPTIMUM/LEKOIL OPL 310 Go To One Down, More of the the second is expecting LEKOIL authorities on of Nigerian consents two Lease (OPL) 310. the Oil Prospecting is date lease expiry The current has an 2019 . Lekoil February Hughes, a GE with Baker understanding and partnership technical for company, of the discovery. in appraisal investment

AFRICA OIL+GAS REPORT January 2018 UPDATE NPDC/NDWestern OML 34 in JV Production Gross 2018 NDWestern). to (7,687BOPD net report NNPC/AITEO JV NNPC/AITEO OML 29 January 2018 production averaged production 90,000BOPD (40,050BOPD facility The export AITEO). to net Nembe Creek Trunk Line was down Line was Trunk Nembe Creek of October. 10 days the last until Vol 19, No 2, February-March 2018 Vol gross output was 10,000BOPD. Seplat 10,000BOPD. output was gross 5,630BOPD (2,534BOPD net to FHN). to 5,630BOPD (2,534BOPD net NPDC/FIRST HYDROCARBON NIGERIA HYDROCARBON NPDC/FIRST OML 26 in oil production Gross NPDC/Shoreline Natural Resources Natural NPDC/Shoreline OML 30 in oil production Gross Shoreline). to 59,248BOPD (26,662BOPD net

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based workovers on the Oil Mining Lease will factor uptake in assets like Akaso, Cawthorne

O I L P A T C H S U B S A H A R A

AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 17 Kosmos Hits Three Dry Holes In A Four Well Campaign One failed due to charge access, another for lack of trap, the third being evaluated…. Vol 19, No 2, February-March 2018 By Toyin Akinosho ©Copyright 2018 In Association with osmos encountered three dry holes in the space of seven www.africaoilgasreport.com AFRICA OIL+GAS REPORT report months in its campaign to find oil (and some gas) in the Ksequences outboard of its gas discoveries in the NW Africa NIGERIA RIG ACTIVITY AS OF JANUARY 2018 margin. The prospect, Requin Tigre-1 (Tiger Shark), in Senegal's Saint Louis Operator /RIG RIG Owner Current Location Operations Terrain Offshore Profond block “was fully tested but did not encounter ERIN ENERGY hydrocarbons”, the company declared on Monday, February 5, 2018. Pacific Bora Pacific Drilling Oyo-NW Drilling Deepwater Requin Tigre-1 was the fourth of a four well drilling programme which featured Yaakar-1, Hipoccampe-1, and Lamantin-1. This particular well was targeted at finding gas, and extending the 15-25Tcf Tortue play. CONOIL The well drilled to a total depth of 5,200 meters and was designed to Majestic Depthwize Ango Drilling Swamp evaluate Cenomanian and Albian reservoirs in a structural-stratigraphic AD-1 Shelf Drilling Toju Enjala 1 Drilling Offshore trap, charged from an underlying Neocomian-Valanginian source kitchen. “Post-well analysis is currently ongoing to determine the

reasons it was unsuccessful”, Kosmos lamented. O I L P A T C H S A H A R A CHEVRON NIG The four prospects are all located in combination strat/structural plays, (SHELF) with Cenomanian-Turonian and Albian oil source kitchen “with OES Respect OES Energy Services Dibi Drilling Onshore/Swamp increased probability for liquids”. Trident 8 Shelf Drilling Sonam Drilling Offshore But Yaakar-1 was the only one that was successful and even then, what it encountered was gas, which wasn't the primary objective. Resourceful Shelf Drilling Rig Move to Site Offshore

CHEVRON NIG Kosmos had encountered tanker loads of natural gas in the (DEEPWATER) Northwest African margin and was hoping to find oil in prospects ENSCO-DS4 ODENL Agbami Drilling Deepwater located outboard of these gas tanks. Hippocampe-1, drilled in approximately 2,600 meters of water in SEEPCO Block C-8, offshore Mauritania, “encountered well-developed reservoirs in both exploration targets but these proved to be Bogel Durga 1 British Oil&Gas Expl Eniye Drilling Land water bearing”. Kosmos' earth scientists believe that this Bogel Durga 2 British Oil&Gas Expl Okwuibome 63 Drilling Land prospect failed due to a lack of charge access in this part of the Bogel Durga 3 British Oil&Gas Expl Anieze Drilling Land play fairway. Bogel Durga 4 British Oil&Gas Expl Rig Move Land Lamantin-1, whose structure was prognosed to hold hundreds of millions of oil barrels, also came up water wet. Located in Block C- Bogel Durga 5 British Oil&Gas Expl Okwuibome Drilling Land 12 offshore Mauritania in approximately 2,200 meters of water, it Bogel Durga 6 British Oil&Gas Expl Okwuibome Drilling Land was drilled to a total depth of 5,150 meters and was designed to Bogel Durga 7 British Oil&Gas Expl Agu Drilling Land evaluate a previously untested Lower Campanian base of slope fan supplied from the Nouakchott River system, trapped in a combination structural-stratigraphic feature, and charged from TOTAL underlying, oil-prone Cenomanian/Turonian and Albian source (DEEPWATER) rocks. But the Campanian reservoir objective was water bearing West Jupiter Seadrill Akpo Drilling Deepwater with some residual hydrocarbons due to, Kosmos believes, “a lack of trap, related to a combination of up-dip sand pinch-out and top TOTAL (SHELF) / base seal effectiveness”. Kosmos, a passionate exploration company, looks on the bright Baltic Shelf Drilling Ofon Drilling Offshore side: “With each exploration well drilled, we deepen our Frigg Borr Drilling Ayama Drilling Offshore understanding of this newly emerging basin, further refining our geologic model and geophysical tools. Requin Tigre was the last ELCREST well in our second phase of exploration of the deepwater Cretaceous petroleum systems offshore Mauritania and Senegal OES Teamwork OES Energy Services Opuama Drilling Swamp targeting large basin floor fan structures. We have delivered one success (Yakaar) in four wells in this second phase programme, ADDAX following three successes in three wells (Tortue, Marsouin, Teranga) in the first phase programme targeting inboard ZPEB HPEB 120 Njaba Completions Land structures on the slope. Overall we have discovered gross resource of 40 trillion cubic feet, at a net cost of $0.20 per barrel of EXXONMOBIL oil equivalent benefiting from the partner carry, and have created Trident 14 Shelf Drilling Rig Move to Site Offshore the potential for two world scale LNG hubs. We will rigorously evaluate our large inventory of prospects across Mauritania and Senegal ahead of the next phase of exploration offshore the two SPDC countries.” SDF BR-301 Dodo North Drilling Swamp

18 FEBRUARY-MARCH 2018 A F R I C A O I L + G A S R E P O R T AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 19 Kosmos Hits Three Dry Holes In A Four Well Campaign One failed due to charge access, another for lack of trap, the third being evaluated…. Vol 19, No 2, February-March 2018 By Toyin Akinosho ©Copyright 2018 In Association with osmos encountered three dry holes in the space of seven www.africaoilgasreport.com AFRICA OIL+GAS REPORT report months in its campaign to find oil (and some gas) in the Ksequences outboard of its gas discoveries in the NW Africa NIGERIA RIG ACTIVITY AS OF JANUARY 2018 margin. The prospect, Requin Tigre-1 (Tiger Shark), in Senegal's Saint Louis Operator /RIG RIG Owner Current Location Operations Terrain Offshore Profond block “was fully tested but did not encounter ERIN ENERGY hydrocarbons”, the company declared on Monday, February 5, 2018. Pacific Bora Pacific Drilling Oyo-NW Drilling Deepwater Requin Tigre-1 was the fourth of a four well drilling programme which featured Yaakar-1, Hipoccampe-1, and Lamantin-1. This particular well was targeted at finding gas, and extending the 15-25Tcf Tortue play. CONOIL The well drilled to a total depth of 5,200 meters and was designed to Majestic Depthwize Ango Drilling Swamp evaluate Cenomanian and Albian reservoirs in a structural-stratigraphic AD-1 Shelf Drilling Toju Enjala 1 Drilling Offshore trap, charged from an underlying Neocomian-Valanginian source kitchen. “Post-well analysis is currently ongoing to determine the

18 FEBRUARY-MARCH 2018 A F R I C A O I L + G A S R E P O R T AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 19 O I L P A T C H S U B S A H A R A penetrated bywell Opuama-8 continues. The NNPC JV in 1967 (Okwok-1), and two two and (Okwok-1), 1967 in JV NNPC ko ws icvrd y h ExxonMobil/ the by discovered was Okwok Equatorial Guinea. Testing and production of the three reservoirs says. wells beingcirca 22,000BOPD”, thecompany 115 to resolve a boundary issue with with issue boundary a resolve to 115 “Productionperformancefield from Opuama production range. expected previously Company's the of half is strong, with gross production from all four all from production gross with strong, is compensate for carving out part of its OML its of part out carving for compensate recorded at over 6,200BOPD and at the upper nov 1 dvlpet el ad three and wells development will permit, 11 the involve in fields the of depletion 4/4 coe n paa8 a been has Opuama-8 in choke 40/64" a The programme, meant to mitigate the the mitigate to meant programme, The I to the company between 2006 and 2007, to 2007, and 2006 between company the to marginal fields (the other being Ebok) granted develop the Okwok field. Okwok is one of two Elcrest reports that initial gross production on O financiers all over the world, to raise money to Gabon. a drilling campaign in its Ezanga Permit in EzangaPermit its in campaign drilling a ndonesian operator Maurel et Prom plans 20 company owned by Mohammed with Mohammed talking family,is his and Indimi by owned company ina Eeg Rsucs te E&P the Resources, Energy riental GABON NIGERIA Elcrest's Successful With Opuama 8, Continues With No. 9 FEBRUARY-MARCH 2018 FEBRUARY-MARCH Oriental Sources Funding To Develop Okwok OES TeamworkOES there although continues, Rig The drillingoftheOpuama-9infill well bythe encouraging and within expectation. commence shortly. The test rates are are rates test The shortly. commence of the third reservoir, the D4000, will will D4000, the reservoir, third the of choke withaFTHPof47bar(680psi).Testing 30, lwd t ,8 bp o a 40/64" a on bopd 2,980 at flowed D3500, 75 s) hl te hloet etd the tested, shallowest the while psi) (725 flowing tubing head pressure (FTHP) of 50 bar flowed at 3,250 bopd on a 40/64" choke with a usqet pria wls ee drilled were wells appraisal subsequent 07 n asmd h rl o Technical of role the assumed and 2007 dio. fe jie ta prnrhp in partnership that joined Afren Advisor. el t h D lvl ls utpe 0 t oil ft 50 multiple plus level D2 the at well deepest of the reservoirs tested, the D5000, the tested, reservoirs the of deepest of the drop in oil prices. over 100 ft of oil pay logged in the Okwok-2 the in logged pay oil of ft 100 over halt in development programme, on account programme,on development in halt Addax acquired a 40% interest in Okwok in Okwok in interest 40% a acquired Addax website. Okwok-1 the in LD1 the in sections bearing n Owk2 el” Oina sy o its on says Oriental wells”, Okwok-2 and “with reservoirs of series D2 and LD1 the in 1968 (Okwok-2 and Okwok-3) but not not but Okwok-3) and (Okwok-2 1968 35% in the last three years, largely due to a to due largely years, three last the in 35% production tested. The wells encounteredoil wells tested.The production Production in Ezanga permit has crashed by crashed has permit Ezanga in Production 2018. sidetracks. It will commence in the first half of … .and commence wildcatting inKari andNyanga-Mayomnbé M&P To Drill 14 Wells in Ezanga OIL GAS T R O P E R S A G + L I O A C I R F A in of 2018. ,3 f. opein n Pouto from Opuama-9 is expected within the Production first quarter and Completion ft. 9,033 o tree Ttl etcl et (V) of (TVD) Depth Vertical Total targeted a to drill the 12 ¼" hole with current depth 6,016 ft casing has since been run. The rig has begun to drilled to a depth of 3,348 ft and the 13 3/8" 13 the and ft 3,348 of depth a to drilled mechanical to due delays some been have sus ih h Rg Te 6 hl hs been has hole 16" The Rig. the with issues agnl il Fsa ad a Regime. Tax and Fiscal Field Marginal Nigerian the from benefits field Okwok The not on the board of directors. formerly with Texaco, Chevron and Addax, is Addax, Texaco,and with Chevron formerly fly, n xeine ptoem engineer petroleum experienced an Ifelayo, h cmays aaig ietr Ignatius Director, Managing company's The engineer, reportedly of 30 years' experience. years' 30 engineer,of reportedly mining a is member,Goni, board Sheikh fifth nii n tre hlrn Aia Ndimi- Amina Fodio, children: Ameena Ndimi and Mustafa three Indimi. The and Indimi h fv mmes f h bad en Mr. being board the of members five the el o te ai n Nyanga-Mayomnbé and Kari the on exploration also wells first will the it of says drilling Gabon commence Prom & Maurel permits in the second half of 2018 Afren), all on its own. own. its on all Afren), brought on stream by by stream on brought had and development for t u p Per t u Oil o of 22,000Barrels t n e r r u C Ebok all (which was was (which all Ebok d l e i f just a plan, d e development t e l p m o c Okwok earmarked Afren jointly to develop the field. Addax with agreed and 2009 August Oriental is a family family a of out four with is business Oriental company's output. the expand Okwok to thus, is, development financing for search ongoing The Day. default, producing the the producing default, then, Oriental had become into went it before tcncl prtr by operator technical a the past two and half years For 2015. in receivership, t a O I L P A T C H S U B S A H A R A NNPC JV in 1967 (Okwok-1), and two two and (Okwok-1), 1967 in JV NNPC penetrated bywell Opuama-8 continues. The ko ws icvrd y h ExxonMobil/ the by discovered was Okwok Equatorial Guinea. Testing and production of the three reservoirs says. 115 to resolve a boundary issue with with issue boundary a resolve to 115 wells beingcirca 22,000BOPD”, thecompany “Productionperformancefield from Opuama production range. expected previously Company's the of half compensate for carving out part of its OML its of part out carving for compensate is strong, with gross production from all four all from production gross with strong, is nov 1 dvlpet el ad three and wells development will permit, 11 the involve in fields the of depletion recorded at over 6,200BOPD and at the upper The programme, meant to mitigate the the mitigate to meant programme, The I to the company between 2006 and 2007, to 2007, and 2006 between company the to marginal fields (the other being Ebok) granted develop the Okwok field. Okwok is one of two 4/4 coe n paa8 a been has Opuama-8 in choke 40/64" a Elcrest reports that initial gross production on O financiers all over the world, to raise money to Gabon. a drilling campaign in its Ezanga Permit in EzangaPermit its in campaign drilling a ndonesian operator Maurel et Prom plans 20 company owned by Mohammed with Mohammed talking family,is his and Indimi by owned company ina Eeg Rsucs te E&P the Resources, Energy riental GABON NIGERIA Elcrest's Successful With Opuama 8, Continues With No. 9 FEBRUARY-MARCH 2018 FEBRUARY-MARCH Oriental Sources Funding To Develop Okwok OES TeamworkOES there although continues, Rig The drillingoftheOpuama-9infill well bythe encouraging and within expectation. commence shortly. The test rates are are rates test The shortly. commence of the third reservoir, the D4000, will will D4000, the reservoir, third the of choke withaFTHPof47bar(680psi).Testing 30, lwd t ,8 bp o a 40/64" a on bopd 2,980 at flowed D3500, 07 n asmd h rl o Technical of role the assumed and 2007 drilled were wells appraisal subsequent 75 s) hl te hloet etd the tested, shallowest the while psi) (725 flowing tubing head pressure (FTHP) of 50 bar flowed at 3,250 bopd on a 40/64" choke with a dio. fe jie ta prnrhp in partnership that joined Afren Advisor. el t h D lvl ls utpe 0 t oil ft 50 multiple plus level D2 the at well of the drop in oil prices. over 100 ft of oil pay logged in the Okwok-2 the in logged pay oil of ft 100 over deepest of the reservoirs tested, the D5000, the tested, reservoirs the of deepest halt in development programme, on account programme,on development in halt Addax acquired a 40% interest in Okwok in Okwok in interest 40% a acquired Addax website. Okwok-1 the in LD1 the in sections bearing n Owk2 el” Oina sy o its on says Oriental wells”, Okwok-2 and “with reservoirs of series D2 and LD1 the in 1968 (Okwok-2 and Okwok-3) but not not but Okwok-3) and (Okwok-2 1968 35% in the last three years, largely due to a to due largely years, three last the in 35% production tested. The wells encounteredoil wells tested.The production Production in Ezanga permit has crashed by crashed has permit Ezanga in Production 2018. sidetracks. It will commence in the first half of … .and commence wildcatting inKari andNyanga-Mayomnbé M&P To Drill 14 Wells in Ezanga OIL GAS T R O P E R S A G + L I O A C I R F A in of 2018. ,3 f. opein n Pouto from Opuama-9 is expected within the Production first quarter and Completion ft. 9,033 o tree Ttl etcl et (V) of (TVD) Depth Vertical Total targeted a to drill the 12 ¼" hole with current depth 6,016 ft casing has since been run. The rig has begun to drilled to a depth of 3,348 ft and the 13 3/8" 13 the and ft 3,348 of depth a to drilled mechanical to due delays some been have sus ih h Rg Te 6 hl hs been has hole 16" The Rig. the with issues agnl il Fsa ad a Regime. Tax and Fiscal Field Marginal Nigerian the from benefits field Okwok The not on the board of directors. formerly with Texaco, Chevron and Addax, is Addax, Texaco,and with Chevron formerly fly, n xeine ptoem engineer petroleum experienced an Ifelayo, h cmays aaig ietr Ignatius Director, Managing company's The engineer, reportedly of 30 years' experience. years' 30 engineer,of reportedly mining a is member,Goni, board Sheikh fifth nii n tre hlrn Aia Ndimi- Amina Fodio, children: Ameena Ndimi and Mustafa three Indimi. The and Indimi h fv mmes f h bad en Mr. being board the of members five the el o te ai n Nyanga-Mayomnbé and Kari the on exploration also wells first will the it of says drilling Gabon commence Prom & Maurel permits in the second half of 2018 Afren), all on its own. own. its on all Afren), brought on stream by by stream on brought had and development for Ebok all (which was was (which all Ebok d l e i f just a plan, d e development t e l p m o c Okwok earmarked Afren jointly to develop the field. Addax with agreed and 2009 August t u p Per t u Oil o of 22,000Barrels t n e r r u C Oriental is a family family a of out four with is business Oriental company's output. the expand Okwok to thus, is, development financing for search ongoing The Day. default, producing the the producing default, then, Oriental had become into went it before tcncl prtr by operator technical a the past two and half years For 2015. in receivership, t a Sam Dossou Is The New ABR Chairman DregWater Lights Up The Season At Tarkwah Bay am Dossou-Aworet, the widely influential to turn around the moribund entity, described in a reg Waters Petroleum and Logistics the good things for Christmas but their care- business activities and further improve the Beninois businessman, who is Chairman of the recent press release as an affiliated group of the took “Christmas-in-a-Box” to givers cannot afford them”, said Damilola socio-economic status of the residents. SBoard of NDWestern Ltd, has been elected African Development Bank (ADB). Dhundreds of children in the Tarkwa Owolabi, Chief Executive Officer of Dreg “We want to ensure that we can have more President and Chairman of the Board of the African The toothlessness of ABR is evidenced by the fact that Bay community in Lagos state, Nigeria. its Waters, who led a team of staff and volunteers support and more resources to get the school Business Roundtable (ABR) one man, Bamanga Tukur had held the Presidency for 2017 corporate social responsibility project to join the Slum2School team and celebrate here more functional and provide more Dossou-Aworet is first and foremost founder and over a decade. And for all the conversations around with a high impact Christmas event for Christmas with the kids. “We are glad to educational facilities for the children in this Chairman of Petrolin Group, which has extensive Africa as an emerging business hub, ABR's voice has In association with Slum2School Africa, a partner with Slum2School Africa to provide community”, said Otto Orondaam, the interests in oil and gas operations around the globe. hardly been heard. charity focused on, the company delivered them with gift items, educational materials Founder/Managing Director of Slum2School Petrolin holds about 40% of the equity in NDWestern, Dossou-Aworet has far more influence than his hundreds of Christmas gift packs and and food items.” Africa. “Our target is to achieve these in the a special purpose E&P firm which holds 45% in Oil predecessor on the job. His tenure may provide the educational materials for children of different Owolabi emphasized that Dreg Waters and its next two to three years. We believe the goals Mining Lease (OML) 34 onshore Western Niger Delta. tonic that ABR needs to step up and make impact on age categories in the coastal community. team chose to go to celebrate the festive with be accomplished through our Going by his pedigree, it is unlikely that the Presidency the African business landscape. Until he makes the The event, held exactly a week to Christmas season with the Tarkwa Bay children. She collaborations with Dreg Waters and other ADVERTORIAL of the ABR will excite Dossou-Aworet, unless he plans required changes, his takeover of ABR is meaningless. eve, 2017 featured a lot of merriment and fun passionately implored the Nigerian organizations that share similar vision." for the children and their care-givers. government to provide electricity power John Munyes Is Kenya's New Petroleum Minister “These children would really love to have all supply for the community, so as to enhance P E T R O L E U M P E O P L E after the splitting of the Energy and Petroleum Parliament for Turkana North from 1997 to ministry formerly held by Charles Keter. 2013 after which he was elected senator for In the new cabinet appointments President Turkana county. He has in the past served the Uhuru Kenyatta named Munyes as cabinet government as an assistant Minister, Ministry secretary in the new Ministry of Petroleum of water & irrigation, Minister of State for and Mining bringing together Petroleum and Special Programmes (Office of the President), Mining. Minister for Water and Irrigation, and minister Today's appointment will be viewed by many of labour. as a way of appeasing the Turkana community John Munyes holds an undergraduate degree which has vowed that unless its concerns are from St Francis University and has previously viewed oil production will not go ahead with worked with Oxfam and Unesco. ormer Senator and Member of the Early Oil Pilot Scheme planned to Former principal secretary in the state Parliament for the oil rich Turkana commence n Q1 2018. department of petroleum Andrew Kamau will County John Munyes has been John Munyes is a seasoned politician born in keep his earlier docket. Dreg Waters staff and volunteers arrive with the gift packs and “party” gear Father Christmas came to Tarkwa Fnominated to head the Petroleum Ministry 1966and has been elected member of South Africa Gets Its Sixth Energy Minister in Five Years new Energy Minister was part of the content and likely passage of the Mineral and cabinet portfolio changes effected by Petroleum; the country's widely applauded ASouth African President Cyril Renewable Energy programme suffered Ramaphosa President in the last week of disinvestment as Eskom, Africa's largest February 2018. Jeff Radebe, veteran member Energy Utility, called off the connection of of the ruling ANC, was moved from the completed projects into the National Grid. position of Minister in the Presidency to the The last victim of the country's unforced Energy Ministry. His was one of the 24 changes Energy crisis is the plan to roll out a gas to the new President made in the 38 Cabinet power, Independent power programme. portfolios. Radebe was a student when he joined the Minister Radebe, with his mining magnate wife, Kids, bearing their gifs, pose with Dreg Waters mascot "I have a bag to brag about" Mr. Radebe, who has been a South African ANC in 1976. He was dispatched the following Bridgette Motsepe Radebe minister since 1994, is the sixth in succession year to Mozambique and soon after to South Africa's media has outlined the to Dipuo Peters in the last five years. After Ms. Tanzania where he worked as a journalist for a priorities for Mr, Radebe. “He has to reinforce Peters served as Energy Minister from May radio station in Dar es Salaam. Radebe was the message that nuclear is unaffordable and 2009 to July 2013, former President Jacob arrested in 1986 after an unsuccessful secret is not on the cards”, writes Engineering News, Zuma made several changes in relatively quick mission by the ANC, and was convicted under a reference to widely reported insinuations succession. Ben Martins, Tina Joemat- the Terrorism Act of the then Apartheid that former President Zuma was keen on Pettersson, Mmamoloko Kubayi-Ngubane government. He was sentenced to a 10-year foisting the building of very expensive, large and, most recently, David Mahlobo, followed. imprisonment on Robben Island. After a scale nuclear power plants on the country. The Under their watch, debts piled up and successful 12-day hunger strike, he was newspaper also wants the minister to reaffirm reputation floundered as corporate released from prison in 1990. government's support for the country's governance weakened in PetroSA, the Radebe served as Minister of Public Works Renewable Energy Independent Power country's hydrocarbon E&P company; a Gas from 1994 to 1999 under Nelson Mandela. Producer Procurement Programme, “which master plan, on the drawing board for over a President Thabo Mbeki made him Minister of has delivered more than 60 projects to date, decade, remained stubbornly on the back Public Enterprises (1999–2004) and Minister while simultaneously facilitating a material burner; the Integrated Energy Plan remained of Transport (2004-2009). He was Minister of decline in renewables tariffs. He can deliver a outdated, the last version having a 2010 date; Justice and Constitutional Development from quick win by overseeing the signing of the 27 2009 to 2014. Radebe is South Africa's longest “I am young, it’s time to fill up…it’s Christmas” From right Busayo Aroloye (Head of Operations Dreg Waters), Nwakaego Ogueri (Project manager slum2school), oil companies dithered about exploration in power purchase agreements that have been Otto Orondaam (Managing director Slum2school Africa), DamilolaOwolabi (Managing the Dreg Waters), South Africa as uncertainty grew around the continuously serving cabinet member. illegally delayed by Eskom”. Sam Audu (Teens Cordinator slum2school), Margaret Nongo( Publisher Orient Energy magazine), Isa Ibrahim( Head Finance Dreg Waters)

22 FEBRUARY-MARCH 2018 A F R I C A O I L + G A S R E P O R T AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 23 Sam Dossou Is The New ABR Chairman DregWater Lights Up The Season At Tarkwah Bay am Dossou-Aworet, the widely influential to turn around the moribund entity, described in a reg Waters Petroleum and Logistics the good things for Christmas but their care- business activities and further improve the Beninois businessman, who is Chairman of the recent press release as an affiliated group of the took “Christmas-in-a-Box” to givers cannot afford them”, said Damilola socio-economic status of the residents. SBoard of NDWestern Ltd, has been elected African Development Bank (ADB). Dhundreds of children in the Tarkwa Owolabi, Chief Executive Officer of Dreg “We want to ensure that we can have more President and Chairman of the Board of the African The toothlessness of ABR is evidenced by the fact that Bay community in Lagos state, Nigeria. its Waters, who led a team of staff and volunteers support and more resources to get the school Business Roundtable (ABR) one man, Bamanga Tukur had held the Presidency for 2017 corporate social responsibility project to join the Slum2School team and celebrate here more functional and provide more Dossou-Aworet is first and foremost founder and over a decade. And for all the conversations around with a high impact Christmas event for Christmas with the kids. “We are glad to educational facilities for the children in this Chairman of Petrolin Group, which has extensive Africa as an emerging business hub, ABR's voice has In association with Slum2School Africa, a partner with Slum2School Africa to provide community”, said Otto Orondaam, the interests in oil and gas operations around the globe. hardly been heard. charity focused on, the company delivered them with gift items, educational materials Founder/Managing Director of Slum2School Petrolin holds about 40% of the equity in NDWestern, Dossou-Aworet has far more influence than his hundreds of Christmas gift packs and and food items.” Africa. “Our target is to achieve these in the a special purpose E&P firm which holds 45% in Oil predecessor on the job. His tenure may provide the educational materials for children of different Owolabi emphasized that Dreg Waters and its next two to three years. We believe the goals Mining Lease (OML) 34 onshore Western Niger Delta. tonic that ABR needs to step up and make impact on age categories in the coastal community. team chose to go to celebrate the festive with be accomplished through our Going by his pedigree, it is unlikely that the Presidency the African business landscape. Until he makes the The event, held exactly a week to Christmas season with the Tarkwa Bay children. She collaborations with Dreg Waters and other ADVERTORIAL of the ABR will excite Dossou-Aworet, unless he plans required changes, his takeover of ABR is meaningless. eve, 2017 featured a lot of merriment and fun passionately implored the Nigerian organizations that share similar vision." for the children and their care-givers. government to provide electricity power John Munyes Is Kenya's New Petroleum Minister “These children would really love to have all supply for the community, so as to enhance P E T R O L E U M P E O P L E after the splitting of the Energy and Petroleum Parliament for Turkana North from 1997 to ministry formerly held by Charles Keter. 2013 after which he was elected senator for In the new cabinet appointments President Turkana county. He has in the past served the Uhuru Kenyatta named Munyes as cabinet government as an assistant Minister, Ministry secretary in the new Ministry of Petroleum of water & irrigation, Minister of State for and Mining bringing together Petroleum and Special Programmes (Office of the President), Mining. Minister for Water and Irrigation, and minister Today's appointment will be viewed by many of labour. as a way of appeasing the Turkana community John Munyes holds an undergraduate degree which has vowed that unless its concerns are from St Francis University and has previously viewed oil production will not go ahead with worked with Oxfam and Unesco. ormer Senator and Member of the Early Oil Pilot Scheme planned to Former principal secretary in the state Parliament for the oil rich Turkana commence n Q1 2018. department of petroleum Andrew Kamau will County John Munyes has been John Munyes is a seasoned politician born in keep his earlier docket. Dreg Waters staff and volunteers arrive with the gift packs and “party” gear Father Christmas came to Tarkwa Fnominated to head the Petroleum Ministry 1966and has been elected member of South Africa Gets Its Sixth Energy Minister in Five Years new Energy Minister was part of the content and likely passage of the Mineral and cabinet portfolio changes effected by Petroleum; the country's widely applauded ASouth African President Cyril Renewable Energy programme suffered Ramaphosa President in the last week of disinvestment as Eskom, Africa's largest February 2018. Jeff Radebe, veteran member Energy Utility, called off the connection of of the ruling ANC, was moved from the completed projects into the National Grid. position of Minister in the Presidency to the The last victim of the country's unforced Energy Ministry. His was one of the 24 changes Energy crisis is the plan to roll out a gas to the new President made in the 38 Cabinet power, Independent power programme. portfolios. Radebe was a student when he joined the Minister Radebe, with his mining magnate wife, Kids, bearing their gifs, pose with Dreg Waters mascot "I have a bag to brag about" Mr. Radebe, who has been a South African ANC in 1976. He was dispatched the following Bridgette Motsepe Radebe minister since 1994, is the sixth in succession year to Mozambique and soon after to South Africa's media has outlined the to Dipuo Peters in the last five years. After Ms. Tanzania where he worked as a journalist for a priorities for Mr, Radebe. “He has to reinforce Peters served as Energy Minister from May radio station in Dar es Salaam. Radebe was the message that nuclear is unaffordable and 2009 to July 2013, former President Jacob arrested in 1986 after an unsuccessful secret is not on the cards”, writes Engineering News, Zuma made several changes in relatively quick mission by the ANC, and was convicted under a reference to widely reported insinuations succession. Ben Martins, Tina Joemat- the Terrorism Act of the then Apartheid that former President Zuma was keen on Pettersson, Mmamoloko Kubayi-Ngubane government. He was sentenced to a 10-year foisting the building of very expensive, large and, most recently, David Mahlobo, followed. imprisonment on Robben Island. After a scale nuclear power plants on the country. The Under their watch, debts piled up and successful 12-day hunger strike, he was newspaper also wants the minister to reaffirm reputation floundered as corporate released from prison in 1990. government's support for the country's governance weakened in PetroSA, the Radebe served as Minister of Public Works Renewable Energy Independent Power country's hydrocarbon E&P company; a Gas from 1994 to 1999 under Nelson Mandela. Producer Procurement Programme, “which master plan, on the drawing board for over a President Thabo Mbeki made him Minister of has delivered more than 60 projects to date, decade, remained stubbornly on the back Public Enterprises (1999–2004) and Minister while simultaneously facilitating a material burner; the Integrated Energy Plan remained of Transport (2004-2009). He was Minister of decline in renewables tariffs. He can deliver a outdated, the last version having a 2010 date; Justice and Constitutional Development from quick win by overseeing the signing of the 27 2009 to 2014. Radebe is South Africa's longest “I am young, it’s time to fill up…it’s Christmas” From right Busayo Aroloye (Head of Operations Dreg Waters), Nwakaego Ogueri (Project manager slum2school), oil companies dithered about exploration in power purchase agreements that have been Otto Orondaam (Managing director Slum2school Africa), DamilolaOwolabi (Managing the Dreg Waters), South Africa as uncertainty grew around the continuously serving cabinet member. illegally delayed by Eskom”. Sam Audu (Teens Cordinator slum2school), Margaret Nongo( Publisher Orient Energy magazine), Isa Ibrahim( Head Finance Dreg Waters)

22 FEBRUARY-MARCH 2018 A F R I C A O I L + G A S R E P O R T AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 23

MAJORS IN AFRICA MAJORS IN AFRICA

www.africaoilgasreport.com NATURAL GAS PRODUCTION BY COUNTRIES AFRICA OIL+GAS REPORT CRUDE OIL PRODUCTION BY COUNTRIES 2016 www.africaoilgasreport.com report report AFRICA OIL+GAS REPORT

NIGERIA TUNISIA NIGERIA TOTAL-508MMscf/d ALGERIA TUNISIA SHELL- 95MMscf/d EXXON MOBIL- 253,000BOPD SHELL- 503MMscf/d ENI- 77,00BOPD SHELL-10,000BOPD CHEVRON- 204,000BOPD ENI- 19MMscf/d ALGERIA ENI- 266MMscf/d TOTAL- 5,500BOPD ENI- 7,000BOPD SHELL- 171,000BOP BP- 5,000BOPD BP-208MMscf/d Chevron- 159MMscf/d TOTAL- 139,000BOPD ENI- 116MMscf/d ENI- 68,000BOPD TOTAL- 90MMscf/d LIBYA LIBYA ENI-1,465MMscf/d ENI- 84,000BOPD

CHAD EXXON MOBIL-21,000BOPD

EGYPT EGYPT ENI- 597MMscf/d ENI- 76,000BOPD SHELL- 397MMscf/d BP- 39,000BOPD BP- 308MMscf/d SHELL-17,000BOPD GABON TOTAL- 13MMscf/d EQUATORIAL GUINEA EXXON MOBIL-31,000BOPD

GABON ANGOLA TOTAL- 54,000BOPD CHEVRON- 114MMscf/d SHELL- 35,000BOPD ENI- 78MMscf/d TOTAL- 68MMscf/d

MAJORS IN AFRICA MAJORS IN AFRICA

Vol 19, No 2, February-March 2018 Vol 19, No 2, February-March 2018 ©Copyright 2018 ©Copyright 2018 www.africaoilgasreport.com NATURAL GAS PRODUCTION BY COUNTRIES AFRICA OIL+GAS REPORT CRUDE OIL PRODUCTION BY COUNTRIES 2016 www.africaoilgasreport.com report report AFRICA OIL+GAS REPORT

CHAD EXXON MOBIL-21,000BOPD

EGYPT EGYPT ENI- 597MMscf/d ENI- 76,000BOPD SHELL- 397MMscf/d BP- 39,000BOPD BP- 308MMscf/d SHELL-17,000BOPD GABON TOTAL- 13MMscf/d EQUATORIAL GUINEA EXXON MOBIL-31,000BOPD

GABON ANGOLA TOTAL- 54,000BOPD CHEVRON- 114MMscf/d SHELL- 35,000BOPD ENI- 78MMscf/d TOTAL- 68MMscf/d

ANGOLA TOTAL- 299,000BOPD CONGO BRAZZAVILLE CONGO BRAZZAVILLE BP- 219,000BOPD ENI-168MMscf/d TOTAL- 84,000BOPD EXXON MOBIL169,000BOPD TOTAL- 30MMscf/d ENI- 71,000BOPD ENI- 109,000BOPD CHEVRON-2,000BOPD* CHEVRON 108,000BOPD OIL MAJORS IN AFRICA UDARA TOTAL Shoots Up To The Lead 17MMBO rench major TOTAL is the now and 200,000BOPD by around 2022. 10 years; Shell, ExxonMobil and Chevron had immediate term leading producer of No other major explorer has oilfield projects, only managed one each. crude oil on the African continent. this size, anywhere close to delivery in Africa, As TOTAL is leading the charge in production, F EKPAT The company produced 582,000BOPD in five in the next three years. so it is acquiring new positions in places that 20MMBO African countries in 2016, dusting And some of the largest oil or gas projects on were deemed unlikely just a few years ago. CNL SHELL EXXONMOBIL TOTAL AGIP OTHER OPERATORS

second. Its preliminary 2017 reports suggest are the Shell-led Bonga SouthWest least five years before the whole hoopla 25MMBO ©

an improvement on that figure. Aparo(BSWAP) and NLNG Train 7 in Nigeria, or erupted over the NorthWest Afican margin; it AFRICA OIL+GAS REPORT And this year looks even more promising. the Tullow Oil operated South Lockichar Basin has collected exploratory blocks in Senegal, 13MMBO In 2018, TOTAL will commission the two project in Kenya, has TOTAL ensconced as Tanzania, Guinea, Cote d'Ivoire, Namibia, AMANIBA report largest oilfield projects in Africa in the last six significant equity partner. South Africa, South Sudan and even 19, No 2, February-March 2018 Vol years; Kaombo in Angola and Egina in Nigeria The trick is that TOTAL, like ENI, was investing Democratic Republic of Congo. 1MMBO OML 67 OML

are expected to peak at 230,000BOPD and in Africa's toughest but oil rich places while Although Africa is a core region for Big Oil in BANGHAN 4MMBO OFEMINI IBOM

200,000BOPD respectively. Both deepwater others demurred in the last decade, even general, it is disproportionately more so for OML13 43MMBO 1.4 MMBO

B I G O I L I N projects A F R I C A would have come on stream by the before the crash. And it had a deeper pocket TOTAL, which gets 1/3rd of Group cash flow, NKUKU OPL 290 OPL www.africaoilgasreport.com

fourth quarter. than the Italian giant. 1/3rd of E&P Capex and 25% of Group CHANNEL HUGHES 60MMBO TOTAL is on course of taking Final Investment Oil majors were averse to investing in Nigeria production from the continent, despite the

Decision, later in the year, in an equally in the early to middle 2010s (2009 to 2014) fact that the continent doesn't contribute up OML 100 OML 70 OML massive project in the east of the continent; and Uganda was a difficult place to be, but to 15% of the world's crude oil and gas the Albert Basin Project in Uganda, an onshore TOTAL has led the deployment of three production. OML 104 USORO investment expected to plateau at deepwater FPSOs offshore Nigeria in the last OBUZO 30MMBO UTINE OML 51 OML OML 99 OML 65MMBO OML 52 OML OML 11 OML OML 119 OML OML 72 OML BANIELE 7MMBO IKONG 7MMBO OML 18 OML OML 17 OML 30 0 30 60 OML 55 OML OPL 090 OPL OML 53 OML OML 124 OML (ADDAX) OPL 285 OPL 8MMBO UZUAKU BIME OLOYE 3MMBO 21MMBO OML 23 OML OML 58 OML OML 25 OML OLUA OML 20 (SHELL) OML OPL 225 (ADDAX) OPL OPL 2005/2006 OPL OML 61 OML OML 18 OML OML 26 OML OPL 238 OPL (SUNLINK) OML 28 OML OPL 275 OPL OML 66(NNPC) OML 141 (EMERALD) OML The Cluster

Adewale Fayemi, TOTAL E&P Uganda's country manager, presents the entire Albert Basin Field development project plan to the country's highest ranking officials, 85MMBO OML 116 (NNPC) 116 OML EGBOLOM OML 33 OML OPL 286 OPL

including President Yoweri Museveni, (extreme left in white hat). 31 OML ODIMODI 18MMBO OML 32 OPL 226 OPL (CPC) OML 30 OML MAJORS IN AFRICA: NET HYDROCARBON (OIL+GAS) PRODUCTION IN 2016 COMPANY COUNTRY OF ORIGIN AFRICAN PRODUCTION WORLDWIDE PRODUCTION PRODUCING COUNTRIES 298 OPL OML 35 OML ENI ITALY 940,266BOEPD 1,671,000BOEPD EGYPT, LIBYA, ANGOLA, CONGO, NIGERIA, TUNISIA, ALGERIA 63 OML OKIORI TOTAL FRANCE 700,000BOEPD 2,452,000BOEPD NIGERIA, ALGERIA ANGOLA, GABON, CONGO 5MMBO OML 83 OML OML 34 OML OML 56 (CONT.) EXXONMOBIL UNITED STATES 474,000BOEPD 4,053,000BOEPD NIGERIA, ANGOLA, EQ. GUINEA, CHAD 86 OML OML 66 (NPDC) OML OML 98 OML

SHELL UK, NETHERLANDS 398,084BOEPD 2,784,000BOEPD NIGERIA, EGYPT, GABON OML 56 85 OML

CHEVRON UNITED STATES 359,000BOEPD 2,594,333BOEPD NIGERIA, ANGOLA, CONGO EMOHUA 7MMBO BP UK 348,500BOEPD 2,225,000BOEPD ALGERIA, ANGOLA, EGYPT 281 OPL OPL 288 OPL

Figures quoted are the companies' averages for 2016 42 OML Source: Companies' 2016 Annual Reports OML 46 (SHELL.)OPL282 OML 64 OPL 289 OPL OML 88 OML OML 45 OML

ENI Is More All Over the Map 49OML 41 OML talian player ENI produced oil and gas in far and is the only major oil company with any OPL 263 OPL OML 43 OML

more countries all over Africa, in 2016, hydrocarbon production in Ghana. 40 OML OPL227 EXPRESS OML 79 OPL 274 OPL than any of the other majors. Although ENI is the smallest of the majors, 89 OML 7MMBO

I 90 OML In that year it delivered 492,000 Barrels of oil with $60Billion market cap as of February 28, per day and 2.68 Billion standard cubic feet of 2018, it produced higher volumes of oil in IGBOMOTORU gas per day in seven African countries, Africa than every other major with the OML 95 OML including three in North Africa, where majors, exception of TOTAL in 2016. ATAMBA OML 91 OML OLURE 3MMBO

as a rule, are not very strong. This is an improvement on its performance in META

The Rome headquartered operator has been 2014, the last year that this magazine 6MMBO the only consistent producer of hydrocarbons evaluated for this type of story, when ENI IRIGBO in Libya in the last half a decade, netting over came in third position in crude oil output, with

1.4 Billion standard cubic feet of gas per day t, 2MMBO

overall 479,000BOPD across the continen KUDO KOROLE 8MMBO 14MMBO AJAKETON and 84,000Barrels of oil per day in 2016 in that behind only TOTAL (523,000BOPD in 2014) 15MMBO TOTAL's CEO, Patrick Pouyanne, meets Ugandan President, OSUOPELES/W troubled country. and ExxonMobil (489,000BOPD in 2014). Yoweri Museveni in Kampala ENI operates the largest gas projects in Egypt SHANGO 3MMBO 9MMBO OBIRA RUTA 1MMBO NIGERIAN MARGINAL FIELDS: BID ROUND LIKELY CANDIDATES LIKELY ROUND BID FIELDS: MARGINAL NIGERIAN AZAMA 16MMBO 2MMBO BENIN ESTUARY Data for Obuzo and Olua fields were not available as of press time. Obuzo for Data 2626 FEBRUARY-MARCHAUGUST 2017 2018 AA F F R R I I C C A A O O I I L L + + G G A A S S R R E E P P O O R R T T and Probable (2P) reserves of those assets. Possible recoverable ultimate the fields are estimated The figures below OIL MAJORS IN AFRICA UDARA TOTAL Shoots Up To The Lead 17MMBO rench major TOTAL is the now and 200,000BOPD by around 2022. 10 years; Shell, ExxonMobil and Chevron had immediate term leading producer of No other major explorer has oilfield projects, only managed one each. crude oil on the African continent. this size, anywhere close to delivery in Africa, As TOTAL is leading the charge in production, F EKPAT The company produced 582,000BOPD in five in the next three years. so it is acquiring new positions in places that 20MMBO African countries in 2016, dusting And some of the largest oil or gas projects on were deemed unlikely just a few years ago. CNL SHELL EXXONMOBIL TOTAL AGIP OTHER OPERATORS

second. Its preliminary 2017 reports suggest are the Shell-led Bonga SouthWest least five years before the whole hoopla 25MMBO © an improvement on that figure. Aparo(BSWAP) and NLNG Train 7 in Nigeria, or erupted over the NorthWest Afican margin; it AFRICA OIL+GAS REPORT And this year looks even more promising. the Tullow Oil operated South Lockichar Basin has collected exploratory blocks in Senegal, 13MMBO In 2018, TOTAL will commission the two project in Kenya, has TOTAL ensconced as Tanzania, Guinea, Cote d'Ivoire, Namibia, AMANIBA report largest oilfield projects in Africa in the last six significant equity partner. South Africa, South Sudan and even 19, No 2, February-March 2018 Vol years; Kaombo in Angola and Egina in Nigeria The trick is that TOTAL, like ENI, was investing Democratic Republic of Congo. 1MMBO OML 67 OML are expected to peak at 230,000BOPD and in Africa's toughest but oil rich places while Although Africa is a core region for Big Oil in BANGHAN 4MMBO OFEMINI IBOM

200,000BOPD respectively. Both deepwater others demurred in the last decade, even general, it is disproportionately more so for OML13 43MMBO 1.4 MMBO

B I G O I L I N projects A F R I C A would have come on stream by the before the crash. And it had a deeper pocket TOTAL, which gets 1/3rd of Group cash flow, .africaoilgasreport.com NKUKU OPL 290 OPL www.africaoilgasreport.com www fourth quarter. than the Italian giant. 1/3rd of E&P Capex and 25% of Group CHANNEL HUGHES 60MMBO TOTAL is on course of taking Final Investment Oil majors were averse to investing in Nigeria production from the continent, despite the

SHELL UK, NETHERLANDS 398,084BOEPD 2,784,000BOEPD NIGERIA, EGYPT, GABON OML 56 85 OML

CHEVRON UNITED STATES 359,000BOEPD 2,594,333BOEPD NIGERIA, ANGOLA, CONGO EMOHUA 7MMBO BP UK 348,500BOEPD 2,225,000BOEPD ALGERIA, ANGOLA, EGYPT 281 OPL OPL 288 OPL

Figures quoted are the companies' averages for 2016 42 OML Source: Companies' 2016 Annual Reports OML 46 (SHELL.)OPL282 OML 64 OPL 289 OPL OML 88 OML OML 45 OML

ENI Is More All Over the Map 49OML 41 OML talian player ENI produced oil and gas in far and is the only major oil company with any OPL 263 OPL OML 43 OML more countries all over Africa, in 2016, hydrocarbon production in Ghana. 40 OML OPL227 EXPRESS OML 79 OPL 274 OPL than any of the other majors. Although ENI is the smallest of the majors, 89 OML 7MMBO

as a rule, are not very strong. This is an improvement on its performance in META

1.4 Billion standard cubic feet of gas per day t, 2MMBO overall 479,000BOPD across the continen KUDO KOROLE 8MMBO 14MMBO AJAKETON and 84,000Barrels of oil per day in 2016 in that behind only TOTAL (523,000BOPD in 2014) 15MMBO TOTAL's CEO, Patrick Pouyanne, meets Ugandan President, OSUOPELES/W troubled country. and ExxonMobil (489,000BOPD in 2014). Yoweri Museveni in Kampala ENI operates the largest gas projects in Egypt SHANGO 3MMBO 9MMBO OBIRA RUTA 1MMBO NIGERIAN MARGINAL FIELDS: BID ROUND LIKELY CANDIDATES LIKELY ROUND BID FIELDS: MARGINAL NIGERIAN AZAMA 16MMBO 2MMBO BENIN ESTUARY Data for Obuzo and Olua fields were not available as of press time. Obuzo for Data 2626 FEBRUARY-MARCHAUGUST 2017 2018 AA F F R R I I C C A A O O I I L L + + G G A A S S R R E E P P O O R R T T and Probable (2P) reserves of those assets. Possible recoverable ultimate the fields are estimated The figures below FULL DISCLOSURE

WAGP to Tema, an interim tariff for 2018 has have been almost an Natural Gas Pricing For Ghana's Domestic Market been agreed at around $1.65/MMbtu, in 2017 additional $1.00 in By Mike Fulwood & Thierry Bros dollars, although GNPC has agreed to fund the 2016 because of very additional work on the WAGP to low volumes but at ntil the start-up of natural gas accommodate this gas and as a result will the contracted production from the Jubilee field, receive a discounted tariff of $1.50/MMbtu. In volumes level would UGhana relied on gas imports. total, therefore, the cost of Sankofa gas be less than $0.10. So the price was effectively the imported gas delivered to Tema is thought to be just over For Jubilee and TEN price from Nigeria through the West Africa $9/MMbtu – slightly in excess of the current other charges are the Gas Pipeline (WAGP). The price of this price of Nigerian gas delivered to Tema via the PURC levy range, consistent with the price of gas from imported gas is governed by the WAGP WAGP. Source: Energy Commission of Ghana, World Nigeria delivered via the WAGP. At the contract terms and consists of three main The Table 1 summarises the different prices Bank, OIES Analysis moment GNPC is generating a large economic elements: for delivery at Tema for Nigeria gas and With gas from Jubilee, TEN, and Sankofa fields rent by selling domestic gas at this price but • The contracted wellhead price in Sankofa. Jubilee and TEN gas is assumed to be being priced at the commodity level on a this will change once Sankofa gas comes on Nigeria which consists of a base price delivered at Takoradi so attracting no WAGP different basis, it remains uncertain what the stream in 2018 and also when the “free” which changes partly in relation to transport fee. However, even if they did go to prices charged to the end user will be, but it Jubilee gas ends. At these price levels, LNG the Bonny Light oil price and US Tema, the delivered price may not change seems likely that the commodity prices will be becomes a realistic option, but its uptake inflation. since the high Ghana transport price would amalgamated and then a single price, which depends on whether Ghana actually needs • The pipeline tariff on the Escravos – most likely be reduced. includes gathering, processing, LNG supplies. Lagos pipeline system (ELPS) which Other charges: WAGP includes the regulatory transportation, and other charges, will be Excerpted from Future Prospects for LNG delivers gas from the gas fields to the fee, a pipeline protection zone charge, deliver charged to the power plants. Demand in Ghana, a paper by Mike Fulwood entry point of WAGP at Itoki. fee and fuel useIn addition there is a credit The current pricing of gas in Ghana, at least to & Thierry Bros published by the Oxford • The WAGP tariff which is supposedly support charge which is a fixed fee and is not the end users in the power sector, seems to Institute for Energy Studies, in January 2018. GAS MONETISATION/ANALYSISa 100 per cent capacity charge but in for Jubilee gas was suspiciously similar to the plateau and 5.5 years of expected decline included in the delivered price. This would have coalesced around the $8 - $9/MMbtu GAS MONETISATION/ANALYSIS practice, because of the continuous final WAGP price. Given the gas is provided for period). The price agreed by the parties is force majeure declared by the free, the price structure and level suggest that $9.80/MMbtu (2014 money) and the annual JUBILEE GAS DELIVERED TO GHANA GAS COMPANY (GNGC) NOV. 2014 – NOV. 2017 Nigerian supplier, has been charged the GNPC is capturing the economic rent quantity is 62 bscf. The contract includes a Gas Production in on a volumetric basis. through excessive charges. The PURC levy of Take or Pay (ToP) clause that states that the No. Delivery Delivered Vol Energy Delivered Vol. Ghana Peaks in There are a few small additional fees and $0.66/MMbtu, assuming that it is designed to GNPC has to pay for 90 per cent of the agreed Month (MMscf) Conversion Factor (MMBtu) charges to be included to arrive at the cover the costs of the PURC, also seems quantity of gas whether it is able to take it or 1 Nov - Dec 2014 1,906.39 (BTU/Cu. Ft) 2,020,773.40 2 Jan-15 1,532.22 1,060.00 1,624,153.20 October 2017 delivered gas price. Since the WAGP start date excessive, especially when compared with the not. 3 Feb-15 1,075.29 1,060.00 1,139,807.40 roduction from the Jubilee field in in 2011, the delivered price to Ghana, either at regulatory fee of $0.06/MMbtu charged on The World Bank report 96554-GH states that 4 Mar-15 1,803.70 1,060.00 1,911,922.00 Ghana reached its highest in Tema or Takoradi, has usually been in the mid the WAGP15, and the fact that PURC regulates the gas price formula includes an annual 5 Apr-15 1,472.77 1,060.00 1,561,136.20 October 2017, according to $8/MMbtu range. The WAGP tariff has been the electricity sector as well, which has been escalation linked to the Henry Hub price and P 6 May-15 2,578.27 1,060.00 2,732,966.20 figures from the Ghana National increasing over time (currently over its main rationale. Once the free gas volume to changes in the US Consumer Price Index as 7 Jun-15 2,132.45 1,060.00 2,260,397.00 Petroleum Corporation. $5/MMbtu) while lower oil prices have (specifically the first 200 bcf) ends, it is well as a capping mechanism related to the 8 Jul-15 179.19 1,060.00 189,941.40 The production was 114Million standard reduced the wellhead price. At current oil understood that the gas commodity price will Brent oil price. Also included is an option for 9 Aug-15 2,604.44 1,060.00 2,760,706.40 cubic feet per day. The entire October prices, the wellhead price in Nigeria for gas be $2.35/MMbtu. This should not, however, GNPC to decrease the gas price by 10 Sep-15 2,410.49 1,060.00 2,555,119.40 2017 output was 3.5Billion cubic feet. delivered to WAGP is only around half the affect the final delivered gas price, since the $0.55/MMbtu per $100 million contributed 11 Oct-15 2,539.55 1,060.00 2,691,923.00 Gas output dropped to 3.3Billion cubic price that can be achieved by selling the gas in commodity price is already “assumed” to be by GNPC to the funding of the gas pipeline. 12 Nov-15 2,778.99 1,060.00 2,945,729.40 feet, or 111MMscf/d in November 2017. Nigeria to power generators or industry. This $2.90. While the gas price negotiated in the GSA is 13 Dec-15 3,103.69 1,060.00 3,289,911.40 Data from December 2017 and January incentivises producers to sell the gas in Nigeria The TEN oil field, also operated by Tullow, $9.80/MMbtu, the levelized net economic 14 Jan-16 2,411.24 1,060.00 2,555,914.40 2018 were not available as we went to rather than send it along the WAGP. started producing associated gas in 2016. By cost of the gas for Ghana is estimated to be 15 Feb-16 2,557.89 1,060.00 2,711,363.40 press. Furthermore, potential new buyers for the end of 2016, Jubilee and TEN had $6.60/MMbtu (2014 money) taking into 16 Mar-16 1,603.14 1,060.00 1,699,328.40 Gas production began in the Jubilee field, Nigerian gas are inhibited by the high WAGP produced just over 50 bcf of gas between account direct and indirect 17 Apr-16 0.00 1,060.00 0.00 the first (and, so far only) gas producing tariff and the final price they would need to them. The TEN field consists of both revenues to the Government of Ghana 18 May-16 1,231.14 1,060.00 1,305,008.40 field in Ghana, in November 2014. The pay. associated and non-associated gas, with the generated by the project17. The price is 19 Jun-16 1,546.01 1,060.00 1,638,770.60 average production in 2015 overall was The Jubilee oil field produces associated gas commodity price for the associated gas being reduced from $9.80 to $8.20/MMbtu as a 20 Jul-16 2,068.40 1,060.00 2,192,504.00 66MMscf/d, but the peak production in 21 Aug-16 2,282.53 1,060.00 2,419,481.80 which was first delivered to the power plants $0.50/MMbtu and the non-associated gas result of the royalties and income taxes that year was December. 22 Sep-16 1,673.78 1,060.00 1,774,206.80 in Takoradi in 2014, when the pipeline and price being $3.00/MMbtu. accruing to the government, and then to Production dipped sharply in 2016, with 23 Oct-16 2,401.39 1,060.00 2,545,474.46 processing plant which was needed to Deliveries of non-associated gas from the $6.60/MMbtu largely reflecting the benefits average daily production of 58MMscf/d 24 Nov-16 1,558.42 1,060.00 1,651,925.20 commercialize associated gas entered into Sankofa field, part of the Offshore Cape Three of GNPC's share of the gas sales revenues and the highest production in the year 25 Dec-16 2,245.98 1,060.00 2,380,738.80 service. This associated gas is delivered to the Points (OCTP) project, to the Takoradi area are combined with their 15 per cent carried 26 Jan-17 1,570.34 1,060.00 1,664,564.64 being 88MMscf/d in February 2016. beach, at no cost for the first 200 billion cubic expected to start in mid-2018. The Takoradi interest on the capital costs. It is thought that 27 Feb-17 242.38 1,060.00 256,926.19 There appears to be a surge in the last feet (bcf); around a quarter of this total had offtake point on the WAGP is being these “benefits” will be taken into account 28 Mar-17 2,299.59 1,060.00 2,437,565.40 trimester of 2017 and if the trend been delivered by the middle of 2017. The reconfigured as an entry point to allow the when setting the final delivered price to end 29 Apr-17 2,383.29 1,060.00 2,526,287.85 between August and November is price charged by GNPC to the power plants in delivery of this gas to Tema as well as Takoradi. users. 30 May-17 2,048.17 1,060.00 2,171,060.20 anything to go by, the volume is set to Takoradi in 2016 was $8.84/MMbtu, and Over a time period of 14 years the Sankofa The net $6.60/MMbtu cost is for delivery at 31 Jun-17 2,313.54 1,060.00 2,452,353.46 increase, but the FPSO will be going for consisted of: a gas commodity price of project is expected to deliver 180 mmscfd, the beach. On top of this there is a gathering 32 Jul-17 2,675.48 1,060.00 2,836,011.98 repairs. $2.90/MMbtu, which is linked to the light split between the Takoradi and Tema power and processing charge for the GNPC onshore 32 Aug-17 3,432.75 1,060.00 3,638,711.92 Production from TEN Field has been crude oil price; a gathering, processing, and plants. pipeline, which is thought to be around 33 Sep-17 3,230.30 1,060.00 3,424,115.88 rather inconsistent and insignificant transportation fee of $5.28/MMbtu; and a A Gas Sales Agreement (GSA)16 between $1.00/MMbtu to deliver the gas to Takoradi, 34 Oct-17 3,540.35 1,060.00 3,752,769.94 since May 2017, when records began to Public Utilities Regulatory Commission (PURC) Eni/Vitol and GNPC has been agreed for an as opposed to the much higher charges levied 35 Nov-17 3,333.40 1,060.00 3,533,406.12 be taken. levy14 of $0.66/MMbtu. The resulting price estimated 19-year period (13.5 years of on the Jubilee gas. To deliver gas through TOTAL 71,433.56 1,060.00 75,719,570.12 See data on TEN Field Gas Production on Page 31

28 FEBRUARY-MARCH 2018 A F R I C A O I L + G A S R E P O R T AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 29 FULL DISCLOSURE

28 FEBRUARY-MARCH 2018 A F R I C A O I L + G A S R E P O R T AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 29 Nigeria's Economic Growth, Leveraging On Gas To Close The Gap: The Role Of The Parliament Infrastructure development driven by By Distinguished Senator Bassey Albert Akpan. government and funded from the treasury (Chairman, Senate Committee on Gas Resources) Senator Representing Akwa Ibom North-East Senatorial District will always be inadequate to meet the in the Nigerian National Assembly pace of gas demand. It will keep draining An overview of the parliament's role: linkages to power (electricity) Agro- allied Significantly there has been more resources from social sectors. That's why As evident in the recent passage of the and industrial sectors, if given the correct gas supply into the domestic we need for the Public Private Partnership Petroleum Industry Governance Bill (PIGB), policy choices. There is potential for hauling market in the last five years. (PPP). the Senate is making frantic efforts to review in massive revenues from large scale But the failure to enact the the industry laws and appropriations made investment in the gas value chain. downstream Gas bill, making the to the sector with a view to evolving - Gas Laws & Regulations; Several regulatory frame work to remain Without prejudice to other budgetary provisions for strong hinterland reforms initiatives in the gas sector unclear and inconsistent, has institutions overseeing the sector, infrastructural capabilities. in the last fifteen years include: buoyed the perception that the department of gas (regulations) Thus the Senate shall attempt to improve the - the Natural Gas Strategy (2003), Nigeria's doors are not sufficiently needs to be resourced as an interim enabling legislations through revisions to - Nigerian Natural Gas Policy (2004) open for business. As a result of measure pending the encourage strategic partnership between - Natural Gas (Fiscal Reform) Bill this, only relatively minor gas establishment of a substantive the government and the private sector and 2005, projects have been executed. Very sector Regulator. The activities of apply international best practices to support - Downstream Gas Bill (2008), little has occurred by the way of GACON are no longer relevant to and protect the nation's critical gas - Nigerian Gas Master Plan & “mega projects”. the realities of what operators face infrastructure. Domestic Gas Pricing and Supply What's most obvious to many of us in this crucial industry. The goal is to prioritise the supply and policy (2008), is the weak sector governance. - The Nigerian Gas Master Plan the private sector with 5-7 years tax economic realities and ensure the consumption of natural gas in the domestic - Template Commercial Contracts There has been limited capacity in (NGMP): Sector infrastructure is holiday. achievement of the natural flares out market. (Gas Sales & Aggregation key regulatory institutions, leading grossly inadequate to respond to - Gas flaring: Gas flaring previously target of 1st January 2030.

GAS MONETISATION/LEGISLATIONEssential elements requiring parliament Agreement; Gas Transmission to overreaching and pseudo- demand from load centers. NGMP addressed by the flare-out deadline Available data from the NNPC has GAS MONETISATION/LEGISLATION attention: Agreement, Escrow Agreement) regulation by other agencies, with is the gas infrastructure blueprint, dates and flare penalties failed shown the loss of over N217Billion in The natural gas sector is especially critical to Gas Network Code; policy initiatives being driven over yet infrastructure development woefully. NAPIMS and DPR's revenue, as oil and gas companies flared Nigeria's socio-economic development. - National Pipeline Specifications the years by Nigerian National driven by government and funded integrated solution to hydrocarbon a total of 244.84Billion standard cubic With estimated reserves of 192 Trillion Cubic and Petroleum Corporation (NNPC) - from the treasury will always be discovered in any block also could feet of natural gas within the same Feet, TCF (DPR 2017), the ninth largest - The failed Petroleum Industry Bill Gas Aggregation Company of inadequate to meet the pace of gas not work. I think only gas utilization period. The flared (SCF) loss of volume in the world, this resource will (PIB 2008 and 2012). Nigeria (GACON) which oversees demand. It will keep draining can work but this can only happen N217Bllion translates to a loss of accelerate economic development with its - The Downstream Gas Imperative: gas supply and pricing. resources from social sectors. when the investment environment $710Million at the official exchange rate That's why we need for the Public is attractive. of N305.25/$. The volume of flared gas Private Partnership (PPP). Following a passionate bid to end gas according to analysis, is sufficient to - Fiscal regime for gas: The country's flaring and commercialize gas flares and feed 3 LNG trains or generate 3.5 GW of strategic imperative for the near in line with the 7 Big WINS of the FGN electricity. and mid-term is domestic gas (Ministry of Petroleum Resources), I As a country now confronted with development, especially the sponsored the Gas Flaring (Prohibition massive youth unemployment rate, accelerated development of gas and Punishment) Bill, 2017 currently depending on the policy or legislative infrastructure, with a reality that before the Senate. The Bill seeks to interventions taken or the lack thereof; infrastructure projects pay out over discourage gas flaring and specifically Nigeria's gas abundance may be the a long term. From the Senate's address the inadequacies and only panacea to this problem and pivot perspective, a fiscal break for shortcomings of the 1979 ACT, bring gas the country out of the current economic investment in infrastructure flare penalties in line with current meltdown. projects will be a positive signal for Continued from Page 29 Natural Gas From TEN Cluster Delivered To Ghana Gas No. Delivery Month Delivered Vol Energy Delivered (MMscf) Conversion Vol. Factor (BTU/Cu. Ft) (MMBtu) 1 May-17 238.39 1,060.00 252,693.40 2 Jun-17 0.00 1,060.00 0.00 3 Jul-17 10.26 1,060.00 10,870.30 4 Aug-17 0.00 1,060.00 0.00 5 Sep-17 10.01 1,060.00 10,611.66 6 Oct-17 0.00 1,060.00 0.00 7 Nov-17 0.00 1,060.00 0.00 TOTAL 258.66 274,175.36

30 FEBRUARY-MARCH 2018 A F R I C A O I L + G A S R E P O R T AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 31 Nigeria's Economic Growth, Leveraging On Gas To Close The Gap: The Role Of The Parliament Infrastructure development driven by By Distinguished Senator Bassey Albert Akpan. government and funded from the treasury (Chairman, Senate Committee on Gas Resources) Senator Representing Akwa Ibom North-East Senatorial District will always be inadequate to meet the in the Nigerian National Assembly pace of gas demand. It will keep draining An overview of the parliament's role: linkages to power (electricity) Agro- allied Significantly there has been more resources from social sectors. That's why As evident in the recent passage of the and industrial sectors, if given the correct gas supply into the domestic we need for the Public Private Partnership Petroleum Industry Governance Bill (PIGB), policy choices. There is potential for hauling market in the last five years. (PPP). the Senate is making frantic efforts to review in massive revenues from large scale But the failure to enact the the industry laws and appropriations made investment in the gas value chain. downstream Gas bill, making the to the sector with a view to evolving - Gas Laws & Regulations; Several regulatory frame work to remain Without prejudice to other budgetary provisions for strong hinterland reforms initiatives in the gas sector unclear and inconsistent, has institutions overseeing the sector, infrastructural capabilities. in the last fifteen years include: buoyed the perception that the department of gas (regulations) Thus the Senate shall attempt to improve the - the Natural Gas Strategy (2003), Nigeria's doors are not sufficiently needs to be resourced as an interim enabling legislations through revisions to - Nigerian Natural Gas Policy (2004) open for business. As a result of measure pending the encourage strategic partnership between - Natural Gas (Fiscal Reform) Bill this, only relatively minor gas establishment of a substantive the government and the private sector and 2005, projects have been executed. Very sector Regulator. The activities of apply international best practices to support - Downstream Gas Bill (2008), little has occurred by the way of GACON are no longer relevant to and protect the nation's critical gas - Nigerian Gas Master Plan & “mega projects”. the realities of what operators face infrastructure. Domestic Gas Pricing and Supply What's most obvious to many of us in this crucial industry. The goal is to prioritise the supply and policy (2008), is the weak sector governance. - The Nigerian Gas Master Plan the private sector with 5-7 years tax economic realities and ensure the consumption of natural gas in the domestic - Template Commercial Contracts There has been limited capacity in (NGMP): Sector infrastructure is holiday. achievement of the natural flares out market. (Gas Sales & Aggregation key regulatory institutions, leading grossly inadequate to respond to - Gas flaring: Gas flaring previously target of 1st January 2030.

30 FEBRUARY-MARCH 2018 A F R I C A O I L + G A S R E P O R T AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 31 EQ/GUINEA: JANUARY 2018 ACTIVITY UPDATE

Royalgate May Lose… Marathon Plans Turnaround Royalgate, operator of Block Z, is in danger of having its Due to a planned turnaround maintenance work, Marathon Oil licence to the block revoked for non performance. The expects significant reduction in overall 2018 production in the company was granted extension to October 2016, four Alba field, which it operates. Fourth quarter 2017 production years after it signed the Production Sharing Contract. averaged 88,000BOEPD from the Alba gas facility, which delivers Royalgate had acquired 600sq km of seismic data on the above 200,000BOEPD. 8,084 sq km block-after reportedly finding out that data on the block was not usable. The company had proposed Noble Energy Reports Net 64,000BOEPD in Alen and Aseng Fields drilling in April 2016, but did nothing. Noble Energy's fourth quarter 2017 report indicates 64,000BOEPD (Net) for both Aseng and Alen Fields. With the company holding about 43% equity in both, the total output was 148,000BOEPD for the period. Crude Oil accounts for 44,000BOPD of this figure, which means that production has reduced, slightly, from 2016 to 2017 XOM Has Zafiro Until Later Than 2023 Government has approved plans for the Zafiro field expansion. ExxonMobil's operating licence is likely to be approved beyond its renewal date in 2023.

Taleveras Picks EG-07 In Bid Round Taleveras, primarily a crude oil trader, was among the Fortuna Struggles With seven companies announced by the Minister of Mines and Funding Energy, as having won a block, in the 2016 Bid round Ophir says it will deploy awards. significant Proportion of its increased liquidity to funding the Fortuna FLNG. The is still in ExxonMobil Still Uncertain Of the Commerciality of Avestruz discussions with financers for ExxonMobil Corp. is mum about the commerciality at its the 2.2MMTPA Project Avestruz-1 well on Block EG-06, 160 km offshore Malabo, The Guvnor has signed in to Equatorial Guinea. The drilling was concluded as far back as offtake The supplies, and yet October 2017 and the supermajor has been assessing the funding the project remains an results. Block EG-06 is located west of and adjacent to the prolific Zafiro field and EG-11, ExxonMobil's most recent issue. acquisition in the country.

The Three Hopefuls EQUATORIAL GUINEA granted awards to seven companies in the last bid round, but it places more hope on three particular companies, two of which won blocks outside of the process of a bid round. The companies are ExxonMobil, which won EG 11, Ophir Energy, which won Block EG-24 and Kosmos Energy, which won Blocks EG 21, Block S and Block W as well as operatorship of the legacy oil fields Ceiba and Okume. The government is certain that Kosmos Energy would hit the ground running.

Ophir Rewarded With EG-24 London listed Ophir Energy has expended significant effort in developing a gas field Kosmos Will Boost Ceiba offshore Equatorial Production With Waterflood Guinea. The Fortun Field, Kosmos Energy's studies of production behaviour of oil fields discovered in 2008, is on comparable to Ceiba and Okume complex, indicate a potential to course of Final Investment Ceiba Field st double recovery factor in the two Decision by the end of Average production for 1 Half fields, with about ~400Million 2016 was 15, 439BOPD. 2018. It's not surprising barrels remaining. The company that Ophir is one of the bought the fieds from Hess in companies that picked up October 2017 and has proposed an acreage in the just plans for field optimization through waterflood, electric ended 2016 Bid Round. submersible pump (ESP) installation and in-fill drilling. Gross production is anticipated to stabilize at ~40-50,000BOPD through early 2020s. See full story in http://africaoilgasreport.com/w p-content/uploads/2018/ 01/AOGR-VOL-19-NO.1-2018.pdf EQ/GUINEA: JANUARY 2018 ACTIVITY UPDATE

DPR Approves 13 of Shell's 17 Renewal Applications, Revokes Three and… Ghana Launches Petroleum Register Nigeria's Minister of State for Petroleum, were renewed but the DPR proposed that under the government's “split it to three hana has launched a Petroleum boundaries of transparency and information the petroleum upstream sector Emmanuel Ibe Kachikwu, has approved the OML 11 be split into three because it is too acreages” instruction. But a renewal of OML Register in accordance with the disclosure in the Upstream Petroleum Present at the launch of the Petroleum recommendation by the Department of large (3,000sq km). Those renewed have a 11 licence, either in wholesale or in pieces, Gprovisions of the Petroleum activities. It will also ensure efficient and Register on February 5, 2018 were Egbert Petroleum Resources (DPR), to revoke three new lease of life for another 20 years. improves the investment climate around the Exploration and Production Law. effective utilisation of Ghana's petroleum Faibille Jnr, Chief Executive of Petroleum Oil Mining Leases (OMLs) operated by Shell The DPR expects Shell to re-apply for the asset. Transcorp has struggled to raise money The Petroleum Register is an online platform resources and provide the Civil Society Commission, Mr. Lawrence Apaalse, Chief Petroleum Development Company, a local "new" acreages carved out of OML 11, either to purchase the 45% because of the nearness (www.ghanapetroleumregister.com) of a Organisations (CSOs) the single point or Director of Ministry of Energy, Steve arm of Shell, the Anglo Dutch major. in sum or in parts, but ministry sources say of the licence expiry date. Public Register that host Petroleum platform to monitor all upstream activities. Manteaw, member of the Public Interest and The 17 acreages that Shell submitted for that the company is unlikely to be re-awarded Ministry sources declined to disclose the Agreements and contracts ratified by Ghana Petroleum Commission, the country's Accountability Committee (PIAC), renewal purposes were: OMLs 11, 16, 17, 20, all the three. Shell had not re-applied as of exact renewal fee, but they explained, in a Parliament as well as Petroleum Permits, Upstream Regulator, prepared and launched representatives from the organizations in the 21, 22, 23, 27, 28 31, 32, 33, 35, 36, 43, 45 and March 1, 2018. vague way, why those three leases were Certificates, Authorisations, Approvals and the register, in fulfilment of the state petroleum sector and some Directors of 46. The properties were due to expire in OML 11 is currently under a Shell divestment revoked; “They are gas rich acreages that Consents. It is aimed at broadening the commitment of deepening transparency in Petroleum Commission. 2019. programme; Shell is talking with Transcorp, a Shell has not put enough effort in developing The acreages revoked include OMLs 31, 33 Nigerian company which is scouting for for the last 10 years”. VITOL To Fund Shoreline's OML 30 With Half A Billion Dollars and 36. $1Billion to pay for 45% of the acreage. It is Licences for 13 of the remaining 14 leases not clear how that transaction will work itol, the estimated 800Million barrels of oil reserves, capabilities,” he reportedly added. F A R M I N F A R M O U T crude oil according to sources at Shell Nigeria, which The financing is said to be supported by local F A R M I N F A R M O U T Nestoil Wants To Sell Down In Neconde/OML 42 Vt ra d e r, operated the asset until 2012. Shoreline is Nigerian lenders, including Ecobank has reached a involved in a partnership that holds 45% Transnational Incorporated, Fidelity Bank Plc, estoil, the oil service firm owned by output, at an optimum price, to pay back debt by the members of the SPV. $530Million interest in the acreage. Union Bank of Nigeria Plc, FCMB Group Plc as Nigerian businessman Ernest debts and fund a sorely needed expansion. What are you buying? d e a l w i t h Shoreline is looking forward to increase well as Farallon Capital Management LLC. NAzudialu, is reportedly angling to First the NPDC, the ineffectual E&P OML 42 was producing around 60,000BOPD S h o r e l i n e production to 80,000BOPD with field Shoreline, with financing from UK explorer sell part of its equity in the Neconde Special subsidiary of the state hydrocarbon as of January 2018. There are two.. A Group, the optimization by the third quarter 2018 and Heritage as joint venture partner, bought the Purpose Vehicle SPV. company NNPC was imposed to operate the 40MMscfd capacity gas processing plant Ladi Bada, N i g e r i a n take it up to 120,000BOPD with the drilling of Shell/TOTAL/ENI stake in OML 30 in 2011 and As such, it will be farming down in its asset and that meant a low production (less was completed in February 2017, the first of CEO Shoreline Natural Resources independent, to four or more wells, by late 2018-early 2019 finalized the deal in 2012. A range of issues partnership in the Oil Mining Lease (OML) than 20,000BOPD) for over three years. It two phases, but it has not processed a finance oilfield development operations in (See January 2018 issue of Africa Oil+Gas including poor technical capacity of the 42, located in the Western Niger Delta. was inside that time frame that the crude oil molecule of gas. exchange for access to some of the oil the Report). This money will come in handy. operator NPDC the Nigerian state Nestoil holds 80% of Neconde. What is price collapsed. And just when the prices Shell shut in production in OML 42 in 2005, fields produce. The agreement, finalised on “The funds will be used to refinance existing hydrocarbon company, acute militancy in the particularly curious about the story is that were about to climb back up, Niger Delta six years before the sale. Production at the January 18, 2018, will provide Shoreline with debt and provide us with working capital to Niger Delta region which results in shutting Nestoil was the prime mover of the creation militants bombed the crude evacuation time of the shut-in was more than cash to refinance existing debt and further expand production”, Kola Karim, Shoreline's down evacuation facility and overall chairman, reportedly said in the media. “As corruption plagued bureaucracy in simple of the Neconde SPV, which took over facility, forcing the terminal to shut in for 16 50,000BOPD and more than 80MMcf/d of develop the Oil Mining Lease 30 in the Niger Delta. part of the funding arrangements, Shoreline logistics, have combined to whittle down Shell/TOTAL/ENI's 45% stake in the acreage months between February 2016 to June natural gas. The sales process for OML 42 OML 30 produced around 60,000BOPD in will work with Vitol to market the crude, and in value of the asset. in 2012. The majority 55% is held by NNPC, 2017. Out of the $585Million paid for the started in late 2010 and during the first part December 2017 (See Page 12) and still has an the development of its export logistics the state hydrocarbon company. stake, the consortium partners (Nestoil, of 2011 one of the fields within the license Creating value from the asset takeover has Yinka Folawiyo and KOV) paid $435MM as area was put on-stream resulting in ENI Adds Tarfaya To The Basket been an epic struggle. While Neconde paid equity and collectively raised $150Million production of 15,000 BOPD as of the time of talian giant ENI has signed a Petroleum license with a 75% stake, while ONHYM will exploration portfolio in basins with high $585Million to buy the 45%, it has found it as debt. What's not clear is how much of the take over. Agreement (PA) with the Moroccan State retain a 25% stake. The exploration rights hydrocarbon potential. ENI is already present difficult to reach and stay on an optimum $435Million equity payment was raised as ICompany ONHYM to enter into the Tarfaya cover an area of 23,900 square kilometers, in Morocco through its operatorship in the Offshore Shallow exploration permits I-XII, with a water depth ranging from zero to 1,000 Rabat Deep Offshore license (ENI 40%, Hess Finalises Ghana Divestment With $100MM Deal located in the waters of the Atlantic Ocean metres, and with liquid hydrocarbons ONHYM 25%, Woodside 25%, Chariot 10%) ess Corp. is finalising the 20 month started drilling on the block in 2011. Only the block? offshore the cities of Sidi Ifni, Tan Tan and potential in place. The new Petroleum and the El Jadida Offshore license (ENI 75%, long divestment of its stake in one out of 8 wells drilled have turned out The discovered contingent resources are Tarfaya. Following the agreement, which is Agreement enables ENI to enlarge its existing ONHYM 25%), Ghana's DeepWater Tano Cape non-commercial. As of 2014, Hess had a reportedly 550Million barrels (2C), to go by subject to the authorization of the Moroccan position in Morocco, in line with the H authorities, ENI will be the Operator of the Company's strategy aimed at diversifying its Three Points DWT/CTP block with a deadline to submit a PDO to the Ghanaian Hess' estimates, with a remaining $100Million with Norway's Aker Energy. authorities by September 2016. It didn't. prospective volume upside of The deal includes $25Million payable upon So, why is Hess leaving? approximately 400Million barrels, also in Nigerian Bid Round May Not Happen Until After 2019 Elections closing of the transaction and a further A combination of several things. Crude oil Hess' opinion. resident Muhammadu Buhari is not ExxonMobil, Chevron and ENI for over 13 acreages that will be placed on offer”. $75Million payable upon approval of the prices headed for a crash in 2014. By the Five of the discoveries are oil bearing - predisposed to assenting to a bid years- are expected to be up for grabs. (See Mr. Muhammadu Buhari, elected on an anti- Plan for Development and Operation (PDO) middle of the following year, 2015, the cost Pecan, Pecan North, Cob, Beech and Pround, for now, sources at the Nigerian Map on Page 32). Aspects of the proposed corruption platform in 2015, reportedly sees on the property. Aker has indicated fast of producing oil from shale formation, in Almond, while Hickory North and Paradise Ministry of Petroleum have suggested. regulations of the bid round indicate that issues such as hydrocarbon lease sale, track development, saying it will submit Hess' heartland acreages in the US, started are gas and condensate bearing. The fields He hasn't said a word about the several interested investors will be required to pay electricity tariff increase, deregulation of proposals on his table for a lease sale. $50,000 each for a Report which include petroleum product prices and willing buyer- PDO the authorities in 2018, with plunging and third, in the same year, the were planned to be developed in phases, ]Nigeria's last bid round was in 2007, which “details of their shareholding structure, willing seller natural gas prices, as avenues anticipated first oil in 2021, three years company found itself a lucky beneficiary of with the oil discoveries a top priority. In means that the Presidencies of Umar names of their directors, track record in the oil where the elite take advantage of the poor, after. ExxonMobil's huge discovery in Guyana. It 2014, before the implications of the price Yar'adua, and Goodluck Jonathan did not and gas sector, audited financial statements, who he sees himself as representing. Some of The process of divestment has been on was around this time that Ghana and Cote crash set in, Hess had completed “an conduct any lease sale, but Goodluck partnership and/or collaboration with the country's most vocal economic analysts course since late 2016. Hess has been 50% d'Ivoire were heading to court over a encouraging three well appraisal Jonathan administration executed a number indigenous firms, and financial resources to have described the president's stance as operator of the block. Russia's Lukoil, maritime boundary dispute. programme”, to quote the company of discretionary marginal bid round awards. bid and pay for the oil acreages”. After the inflexible. Indeed, most of the areas where the Ghanaian state hydrocarbon company Compared with the rest of its global directly. The highlight was a drill stem test Between 40 and 50 marginal fields- report is approved, bidders will also pay President has disallowed free market laws of GNPC and local content partner Fuel Trade, portfolio, Hess' Ghanaian investment of the Pecan 3A well, which flowed undeveloped discoveries which have lain $15,000 each as data mining fees to enable economics have been in the crucial energy all still have stakes in the acreage, which has started looking weak. 3,900BOEPD. fallow in acreages operated by Shell, TOTAL them gain access to the relevant data on the sector. witnessed seven discoveries since Hess So, now what opportunities are there on

34 FEBRUARY-MARCH 2018 A F R I C A O I L + G A S R E P O R T AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 35 THOSE WHO ARE SELLING A round up of some of the rich pickings in the petroleum rights sector

34 FEBRUARY-MARCH 2018 A F R I C A O I L + G A S R E P O R T AFRICA OIL + GAS REPORT FEBRUARY - MARCH 2018 35 Algeria, Angola, Drop in 2017 Crude Oil Output Nigeria bucks the trend, Libya was generally uncertain, and data is incomplete for Equatorial Guinea and Gabon frica's top producing countries That dataset indicates that Algeria produced authorities). First again, the top three collectively recorded lower crude oil 1.059MMBOPD in 2017 as against producers follow the same pattern; 2017 Aoutput in 2017 compared to the 1.146MMBOPD in 2016; Angola output output is lower than 2016 production for previous year. 1.632MMBOPD in 2017 as opposed to Algeria and Angola, and higher for Nigeria. Algeria, Angola and Nigeria produced 1.722MMBOPD in 2016 and Nigeria delivered Algeria records 1.043MMBOPD (2017) and 4.2Million Barrels of Oil Per Day 1.51MMBOPD in 2017, compared with 1.09MMBOPD (2016)'; Angola (4.2MMBOPD) last year, compared with 1.427MMBOPD in 2016. 1.639MMBOPD (2017) and 1.725MMBOPD 4.3MMBOPD in 2017, a drop of 100,000BOPD. Gabon doesn't feature at all in this data set. (2016) and Nigeria 1.660MMBOPD and These figures were obtained by direct Nor does Libya. The 2017 production for 1.556MMBOPD. communications with the authorities in the Equatorial Guinea is put at 129,000BOPD, but Gabon, Libya and Equatorial Guinea recorded ANALYSIS said countries, according to the February 2018 the report doesn't have any figure for the 200,000BOPD, 817,000BOPD and issue of OPEC's Monthly Oil Market Report country for 2016. 135,000BOPD in 2017 respectively, according (MOMR). All the six African countries in OPEC are, to secondary sources and 221,000BOPD, But Nigeria bucked the trend, increasing however featured in a second set of data, 390,000BOPD and 160,000BOPD. Except for production slightly, while Algeria and Angola which was gathered from secondary sources, Libya, the indication points southwards. recorded less output. (i.e not directly from the countries'

36 FEBRUARY-MARCH 2018 A F R I C A O I L + G A S R E P O R T Algeria, Angola, Drop in 2017 Crude Oil Output Nigeria bucks the trend, Libya was generally uncertain, and data is incomplete for Equatorial Guinea and Gabon frica's top producing countries That dataset indicates that Algeria produced authorities). First again, the top three collectively recorded lower crude oil 1.059MMBOPD in 2017 as against producers follow the same pattern; 2017 Aoutput in 2017 compared to the 1.146MMBOPD in 2016; Angola output output is lower than 2016 production for previous year. 1.632MMBOPD in 2017 as opposed to Algeria and Angola, and higher for Nigeria. Algeria, Angola and Nigeria produced 1.722MMBOPD in 2016 and Nigeria delivered Algeria records 1.043MMBOPD (2017) and 4.2Million Barrels of Oil Per Day 1.51MMBOPD in 2017, compared with 1.09MMBOPD (2016)'; Angola (4.2MMBOPD) last year, compared with 1.427MMBOPD in 2016. 1.639MMBOPD (2017) and 1.725MMBOPD 4.3MMBOPD in 2017, a drop of 100,000BOPD. Gabon doesn't feature at all in this data set. (2016) and Nigeria 1.660MMBOPD and These figures were obtained by direct Nor does Libya. The 2017 production for 1.556MMBOPD. communications with the authorities in the Equatorial Guinea is put at 129,000BOPD, but Gabon, Libya and Equatorial Guinea recorded ANALYSIS said countries, according to the February 2018 the report doesn't have any figure for the 200,000BOPD, 817,000BOPD and issue of OPEC's Monthly Oil Market Report country for 2016. 135,000BOPD in 2017 respectively, according (MOMR). All the six African countries in OPEC are, to secondary sources and 221,000BOPD, But Nigeria bucked the trend, increasing however featured in a second set of data, 390,000BOPD and 160,000BOPD. Except for production slightly, while Algeria and Angola which was gathered from secondary sources, Libya, the indication points southwards. recorded less output. (i.e not directly from the countries'

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