Oil+Gas 116Th Edition June 2017

BRADE Consulting Limited is a project management company focused on delivering projects for clients in Nigeria and the rest of Africa. The company undertakes projects from a single defined technical study up to full field development with its integrated team of Drilling & Completions Engineers, Subsea Engineers, Geoscientists and Petroleum Economists.

With over 200 years of combined experience in the oil and gas industry, the company has executed and delivered projects within time and budget, and has capacity to support the technical needs of the Oil & Gas industry in Nigeria and Sub-Saharan Africa.

In the last two years, the company in alliance with some of its partners;

· provided well delivery services to Marginal Field Producers in Nigeria · delivered OCTG (Casing & Tubings) to NPDC-SEPLAT JV projects in Nigeria · provided project management services to an indigenous operator in the Niger-Delta, Nigeria

Currently the company is;

· negotiating provision of IPM services for drilling & completion to a major E & P company in Nigeria · NOV's partner for implementing SEABOX-SWIT, a novel subsea water treatment & injection technology in Nigeria / Ghana. Technology approved by NNPC, DPR, NAPIMS; introduced to major IOCs in Nigeria and Ghana

Well Construction and Delivery Services Integrated Field Development Subsea and Topside Engineering Heavy Duty Equipment Supply (OCTG, Wellheads and X-mas trees) Engineering, Procurement, Commissioning, Installation and Maintenance (EPCIM)

Halliburton Energy Services Limited (Nigeria) Shandong Molong Petroleum Machinery Company National Oil well Varco (NOV) - SEABOX/SWIT Technology Schlumberger Nigeria Limited

Stefan & Kevin West Africa Limited Kerogen Logistics Limited BRADE West Africa Limited BRADE Oil & Gas Limited OCTG, Line Pipe and Large-diameter Pipes Marine & Land Transportation EPCI, IPM, Procurement, Asset Integrity Services Subsea Engineering, Top Side Engineering

Contacts: Stephen Amartey Close, Nima Residential Ghana P. O. Box 115, Accra +233 202 203 319 [email protected] www.bradeafrica.com BRADE Consulting Limited is a project management company focused on delivering projects for clients in Nigeria and the rest of Africa. The company undertakes projects from a single defined technical study up to full field development with its integrated team of Drilling & Completions Engineers, Subsea Engineers, Geoscientists and Petroleum Economists.

In the last two years, the company in alliance with some of its partners;

Currently the company is;

Halliburton Energy Services Limited (Nigeria) Shandong Molong Petroleum Machinery Company National Oil well Varco (NOV) - SEABOX/SWIT Technology Schlumberger Nigeria Limited

Contacts: Stephen Amartey Close, Nima Residential Ghana P. O. Box 115, Accra +233 202 203 319 [email protected] www.bradeafrica.com F R O M T H E E D I T O R

SERVICE Email: Email: +234-809-9903294, 234-8036-525-979 Phone: +234-806-0095809,+234-8127483663, D Phone: CAIRO: T RIDGE CHURCH, Phone: SUBSCRIPTION/ O Phone: Al GalaaStr Email: Phone: P ACCRA: W CAPE T RE 6th Floor OMISORE AND LE TEL: DISP WEBSIT EDIT 12A, AnimashaunStree OFFICE ADDRESS Off BodeThomasStr RE HQ(North): JOHN ANKROMAH(Accr SA'AD B T South Africa: HQ(South): DEV Geor MOHAMMED JETUTU(Cair SULL Published by: AKIN ADESOKAN North Africa: FOL KAZMA CONCEP RE W DESIGN &EDIT Business Developmen k J Consultan Publisher: R E E E Special Projects: INTERNA Cov A MAK AHMAN ANIK AK udu Br azmaconcepts@y ditorial Assis ditor: ditor-In-Chie ost BagX16Hermanus,7200S eporter: USTIN A ANIEL BUDU YELADE ABASS est est Afric GAL CONSUL GIONAL CONT GIONAL CORRE GIONAL REPRESENT O K er Design: USO OGUNSAN(Lag 234-8036-525-979 A Y MANOPE(Windhoek) ORIAL EMAIL OJ ern CapeP T r MOSESAKINAREMU hospitality inf ONING CHER: OWN: I ADUK 233-2405-69650. +233-243349209. anch, Accr obertbakr AL-AHRAM NEWSP 5796997, Mobile:012/2180706 +277-96971531. E ASHIR (DaresSalaam) DELALI O S , W TIONAL AD : FEST VURU o@afric ge SEUNALABIOW www T t: a: NOAHAJIBISE/W eet, -11511,Cair AMY A O Abuja, KISHONWUNALI est FIDELIS AKPOM DELALIO Houst K YIN AKINOSHO FES ROBER ROBER O f: U tan AC NEWSPRESSL ULAPO OBA Calgary ISSN: Copyright 2017 a T ern House,Br ORIAL CONSUL YELADE ABASS/Cair FREDAKANNI .afric ostne Lagos yode Aki AD ANTS Abuja TS LAGOS ACTS EJIKEME OKEKEAGUL T Indiana aoilg [email protected] t: T [email protected] : inf a. Phone:+234-243349209 SPONDENTS VIA /P CHI on Y AC NEWS ahoo.com, 234-805-621-2178 AHMEDGAF VERT PLA ANJU W 1597-5274 VISOR aoilg T BAKRE/Cape T BAKRE eet, Suruler t Suite226 o@afric Lagos T asreport.com t: A CHI/ t, os) TIVES a) P ort Har n asr A O yel APER Y BO UL KELECHI o) Accr ALESEUN PRESSL o. eport.com r oad Str CEMENT e arri e aoilg T p ANTS V ARD court outh Africa S L a, Ghana o ol 18,No4,June2017 AR e, Lagos. TD. r t asr TD o eet, Lag TD , Egypt own, SA . eport.com . U

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IN THISISSUE Cont Lagos, Nig Conf Society ofP Aug16-18,2017 July 31toAugus +44 (0)1424721667 ht Kig POWER &ENER July 12-14,2017 +27 117837250 ht CTICC, CapeT Africa 2017) Maritime &Off July 11-13,2017 +65 65060965 [email protected] www Johannesburg, SouthAfrica 4th AfricaLPGSummit2017 Jul 11-12,2017 +44 2079780000 VWilson@thecwcgr www Accr 8th AnnualGhanaSummit Jun 22-23,2017 +44 (0)1424721667 ht Lusak Exhibition 7th ZambiaInt June 22-23,2017 +27 765867717 a africaoilandpo Cape T Africa Oil&P Jun 05-07,2017 ydanur@a tp:// tp://www tp:// ali, R a, Ghana ernce act: spenc-secre .lpgsummit.com/ .cwcghana.c a, Gambia own, SouthAfrica expogr ametr wanda eria w fricaoilandpow etr w .africaogp.c ade.org/zimeczambia/ .com/rwanda/po own, SouthAfrica ower 2017 w wer ernational Mining&Ener oleum Engineer shore MarineAfric GY R .a t 2,2017 om/ fr .com/ ic oup.com W a o taria Africa2017/ ANDA 20 il aop-2017/regis g om a s er t@spenigeriac r e .com p wer o s, Nigerian 17 r t. c a andLogistics2017(Oil&Gas energy/ o C P P 2 D I m N O a 0 a ter/ gy Conf A ouncil.org D V g ChapterAnnual 1 g Y E 7 e E e R erence &

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C O N T E N T S 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, SERVICE SUBSCRIPTION/ O Phone: Al GalaaStr CAIRO: T RIDGE CHURCH, Phone: D Phone: Email: ACCRA: Email: Phone: P W CAPE T RE 6th Floor OMISORE AND LE DISP TEL: WEBSIT EDIT Off BodeThomasStr 12A, AnimashaunStree OFFICE ADDRESS Published by: AKIN ADESOKAN T DEV Geor J A MAK INTERNA Cov k KAZMA CONCEP DESIGN &EDIT FOL MOHAMMED JETUTU(Cair SULL JOHN ANKROMAH(Accr SA'AD B RE HQ(South): HQ(North): North Africa: South Africa: W RE Business Developmen Special Projects: R E Consultan E E Publisher: AHMAN ANIK AK udu Br azmaconcepts@y ditorial Assis ditor: ditor-In-Chie ost BagX16Hermanus,7200S eporter: USTIN A ANIEL BUDU YELADE ABASS est est Afric GAL CONSUL GIONAL CONT GIONAL CORRE GIONAL REPRESENT O K er Design: USO OGUNSAN(Lag 234-8036-525-979 A ORIAL EMAIL Y MANOPE(Windhoek) OJ ern CapeP T r MOSESAKINAREMU inf hospitality ONING CHER: OWN: I ADUK +233-243349209. 233-2405-69650. anch, Accr obertbakr AL-AHRAM NEWSP 5796997, Mobile:012/2180706 +277-96971531. E ASHIR (DaresSalaam) DELALI O S , W TIONAL AD : FEST VURU o@afric ge SEUNALABIOW www T t: a: NOAHAJIBISE/W eet, -11511,Cair AMY A O Abuja, KISHONWUNALI est FIDELIS AKPOM DELALIO Houst K YIN AKINOSHO FES ROBER ROBER O f: U tan AC NEWSPRESSL OBA ULAPO Calgary ISSN: Copyright 2017 a T ern House,Br ORIAL CONSUL YELADE ABASS/Cair FREDAKANNI .afric ostne Lagos yode Aki AD ANTS Abuja TS LAGOS ACTS EJIKEME OKEKEAGUL T Indiana aoilg [email protected] t: T [email protected] : inf a. Phone:+234-243349209 SPONDENTS VIA /P CHI on Y AC NEWS ahoo.com, 234-805-621-2178 AHMEDGAF VERT PLA ANJU W 1597-5274 VISOR aoilg T BAKRE/Cape T BAKRE eet, Suruler t Suite226 o@afric Lagos T asreport.com t: A CHI/ t, os) TIVES a) P ort Har n asr A yel O APER Y BO UL KELECHI o) Accr ALESEUN PRESSL o. eport.com r oad Str CEMENT e arri e aoilg T p ANTS ARD court outh Africa S L a, Ghana o AR V e, Lagos. ol 18,No4,June2017 TD. r t asr TD o eet, Lag TD , Egypt own, SA . eport.com . U

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much two as mak a and as in er out Africa. the F s, of wh tol been that ww ope—the of she and our near ovide ha o in ys City pr t, y es in r desert er corner t lit to Day escue deck ey the ear wildca or ating the +2348023902519. r d the of v e Messina, os tr t eth and of fifty-fiv ed t T sear tle s. E w con ac e ou g k had e es crude sold , mor a wer writ a me

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es O boats a ork s ar ys “t r Now asp ofdeal gener escues ant con I eas they eached r T inter oup on con tment. sacr egional earing /n w ria. out AL. two ed piecing close It the her er oper of f T ed ound the ess enough ed alk once-a in ng aly to t tinent. camp ews/n Independents a and the s ern the , v 2017. to indus So t osanct in

al, nat of April BP but of up er the l s anding Africa's ed the cheek t since deadlies and medical l till as f is alk is ations at e dis or under sation I an the thr con g t disposable coas h int io wen will s een-age ar mer ale ar t inf g d M a las gener tog ews.. headquart

ention useful try tr flow in 13, the a policy about na a -y ough e r ound o e G fuel Medit v tinent, Nov v s. ess o@afric eliable a t worl winds ear e Sicily t er ether A of t oper l volumi ely on f s Africa thr in fir 2017 ew ther of no with t t age ./a-repo mark , oper R and charity cor al what's near ember t car s to J portions the i r the ee w d. Its analyse the issues t to T the Sicily U the g evie pictur other y , err at Nige

fr and e, allets po ear looking ar of I as N means a r r infla the a one e y how aoilg C nous om each er er a a ar con anean the f E ear e ational f entry s r $27 ship, ound horr v w ocused what wel L s , ati tory s web rian l s in n going ea, 2 an r 2001, second ago” Médecins rters-p and E e. r I det e t 0 s of Eur tinent. of esults s to of t coas asr a able on in she had

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R N R P D U -

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- F E A 3 S H

E 3 O N 5 t oilfieldinE L ciome-chad.com/ N'Djamena, Chad Showc www Chad Int Oct 10-12,2017 +44 2077004949 alessandr Dar esSalaam,T T Sep 11-12,2017 +234(1) 2957730 ametr Luanda, Angola www VWilson@thecwcgr www Ek Nigeria GasSummit2017 Sep 26-28,2017 +234-(0)803-686-4201 Nicon Lux Upstr Aug 30-31,2017 +65 63250254 K 3rd Ug Sep 27-29,2017 +44 2079780000 African Oil&GasLocal Oct 04-06,2017 +44 (0)1424721667 ht reanne@in Oil &GasT www +971 Dar Gas /LNGContr Aug 21-25,2017 www Johannesburg, SouthAfrica ed Afric anzania Oil& ampala, Ug R T our

tp://www 5 o Hotel&Suit T O es ria in2016.Inthesamey .cwct .uiogs.com .e .inf 4 E .nigeriag eam &Downstr

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C O N T E N T S exploration blocks C-6, C-8, C-12 and C-13 in ENI, a 25% indirect interest in the natural gas- In early 2016, ENI had signed, with Chariot Oil Majors Reclaim E&P Lead In Africa's Frontier Mauritania and a 32.49% effective working rich Area 4 block, where the Italian player and Gas, a farm-in agreement s to enter into uropean and American majors have discoveries all over the continent. interest in Kosmos' Saint-Louis Profond and currently holds a 50% indirect share through a Rabat Deep Offshore exploration permits I-VI, returned to dominate the African “The majors are no longer carrying out Cayar Profond exploration blocks in Senegal. 71.4 percent stake in Eni East Africa, which located in a 6,500 sq km area in the Northern

R frontier, seeking to establish new exploration work in Africa”, declared Tim The acreage includes the Tortue field, owns 70 percent of the Area 4 concession. The Atlantic Margin of Morocco. The country's R

E E estimated by Kosmos to contain more than 15 agreed terms include a cash price of authorities have authorised the deal and the E heartlands. O'Hanlon, Tullow Oil's Vice President for Tcf of discovered gas resources. The British approximately $2.8Billion. Italian explorer plans to drill its first well on the T They are taking back the initiative from the Africa. “They move in after we independents T major is investing nearly one billion dollars All these acquisitions are in varying degrees of lease in 2018. R small to large independents, who have mostly have done the work”. R been responsible for new discoveries and mostly in the form of a multi-year exploration completion, but they indicate the willingness Not all majors are excited about increasing

A The truth is a little more complicated than A and development carry to acquire these of European and American majors to play their portfolios in Africa's second tier basins,

T development in basins outside Nigeria and O'Hanlon had put it. ExxonMobil drilled two T properties. The total acreage, by Kosmos' significant role in African resource extraction whether in near term assets or exploratory

S Angola for the past 15 years. wildcats in the Sirte basin offshore Libya, the S Now Tullow, Cobalt, Anadarko, Kosmos and estimates, could contain roughly 50Tcf of gas in the next five years. property.

K first two deepwater wells to be drilled in that K their peers are taking a back seat, as TOTAL, country, in 2009. They were both dry holes. resource potential and in excess of 1Billion Apart from taking positions in near term Shell and Chevron, certainly haven't featured C barrels of liquids resource potential. BP will assets, the major oil companies are in headline news about acquisitions of new C I ExxonMobil, ENI and BP reclaim the African Chevron's wildcat drilling onshore Libya was I pay Kosmos a cash bonus of $162Million on uncharacteristically taking exploration hydrocarbon property on the continent. Does K E&P landscape, from exploration to first oil. By Toyin Akinosho also a duster. Meanwhile, ENI, the Italian K In the last 12 months, ExxonMobil has drilled a giant, did get into Mozambique around the completion and carry Kosmos' exploration acreages in these second tier basins. it mean they aren't as bullish as ENI, TOTAL, BP wildcat in Liberia, ENI has taken positions in basin. same time as Anadarko. It made a string of and appraisal costs of $221Million along with TOTAL and ENI have led the charge in this foray and ExxonMobil? Cote d'Ivoire, BP has bet on Senegal and Around the same time BG and Ophir, made discoveries. Kosmos' development costs of $533Million, for rank wildcat prospects. Apart from a one off-story about two blocks Mauritania and TOTAL has grabbed a good finds of natural gas off Tanzania. Overall however, the independents have held including front-end engineering and design TOTAL signed, with Mauritania, a deal to offshore Namibia Shell is frequently Senegalese asset that once belonged to a very Afren and Lekoil bucked the trend in 2013, sway over the second tier basins; Ghana's studies. Project sanction is expected by 2018. perform exploration work on Block C7, which mentioned for its interest in the shale junior company. discovering the Ogo oil and gas field in the Tano, Uganda's Lake Albert basin, the Kenyan In Uganda, TOTAL is rounding up the covers an area of 7,300 square kilometers, hydrocarbons suspected to be locked in the And that's just the exploration part of things. Benin Basin; off Nigeria. In 2014 Kosmos part of the east African rift basin and the acquisition of an additional 21.57% interest becoming the operator with a 90% interest Karoo basin in South Africa. It also has Closer to the terminal, TOTAL is the defacto Energy encountered large gas pools in Senegal Senegal-Mauritanian basin in Northwest from Tullow in the Lake Albert oil project. In alongside the Société Mauritanienne des exploration right in an offshore South African leader of Uganda's basin development and Mauritania, while Cairn Energy registered Africa. the event, the French major will hold a 54.9% Hydrocarbures et de Patrimoine Minier acreage. Chevron's enthusiasm about (200,000BOPD at peak). ExxonMobil will Senegal as an oil prone province in the same Now the baton is now being handed back to interest, strengthening its position in this (SMHPM) holding the remaining 10%. Northwest Africa has cooled; in early 2016, it operate the onshore LNG plant proposed by year. the majors. competitive project. The overall consideration In Cote D'Ivoire, ENI was awarded 90% sold 35%, or almost half of the 75% interest it ENI in Mozambique (5MMTPA) and BP is on These were all independents, some of them BP is in the process of acquiring a 62% working paid by TOTAL to Tullow will be $900MM, interest in two new exploration blocks; CI-101 holds in Morocco's Cap Rhir Deep, Cap Cantin course of becoming the operator of Senegal's small-cap companies, making basin opening interest, including operatorship, of Kosmos' representing a reimbursement of a portion of and CI-205, covering an area of approximately Deep and Cap Walidia Deep to Qatar first oilfield development. past costs, payable in installments along the 2,850km², ENI is following up on its Petroleum. This is a reverse baton exchange from the one development of the project, with an initial acquisition, in 2016, of the Cape Three Point that happened 18 years ago. payment of $100MM at closing. Block 4, in the same Tano Basin, in In the mid-1990s, IHS-Petroconsultants, the In Mozambique ExxonMobil is acquiring, from neighbouring Ghana. oil and gas scouting service, famously declared that deepwater Africa was the Cobalt Energy's Alternative Adventure in the Kwanza playground of the majors. o b a l t E n e rg y ' s d i s cove r y o f independent company. The fifth It was a period that witnessed discoveries c o m m e r c i a l s i z e d p o o l s o f was by Maersk Oil, a Danish after spectacular discoveries of oil in hydrocarbon in presalt reservoirs of independent. Most of the dry deepwater Angola and Nigeria, all of them by Cthe Kwanza basin in deep water Angola fits holes were by majors and big Big Oil. perfectly into “the –independents- are- the- independents, including BP, TOTAL, As the majors commenced development of their finds in these two oil saturated ones –winning- in -African -exploration” ENI, Statoil. countries, the independents started poring narrative of the years 1999 to 2016. The Kwanza basin campaign had into data existing in other countries, which The reason we excluded it from the main story consumed $9Billion in terms of harbor unexplored basins outside Angola and is that the discoveries were in Angola, exploration spend (including Nigeria whereas the idea was to explore the tendency signature bonus, of course) on 11 In 1999, American independent Triton for independents to look outside Angola and acreages by nine companies discovered the La Ceiba field, in 700metres of Nigeria for the oil and gas prize. chasing massive tanks of oil water off Equatorial Guinea, In 2001, Australia's Woodside discovered the Even so, Cobalt is an exception that proves the beneath a salt layer. Chinguetti field I 1,300metres of water off rule. C o b a l t , l i ke s o m e o f t h e Mauritania. For one, its discoveries were in the Kwanza independents which made the UK based Hardman Resources opened the basin, not in the Congo Basin where the huge discoveries in Africa in the Lake Albert basin onshore Uganda in 2006. majors rule the roost in Angola. The company last 15 years, will not operate the This was not in deepwater, but it fit the bill as a has made hay in a second tier basin. discovered assets to first oil or gas. frontier. For another, it has done awesomely well as an The company is leaving. American Kosmos Energy broke the jinx in Ghana's Tano Basin in 2007, discovering the operator in a basin in which the major In August 2015, Cobalt executed a in August 2016. Mahogany field in excess of 1,500 metres of companies have had spectacular misses. purchase and sale agreement with Sociedade water. As of Christmas of 2015, twenty one N a c i o n a l d e C o m b u s t í v e i s d e Cobalt, as of May 2017 is seeking extensions Then the gas fields started to show up. exploration wells had been drilled in the pre- Angola—Empresa Pública (“Sonangol”) for to the Block 20 and 21 license agreements In 2008, Ophir discovered the Fortuna gas salt campaign in the Kwanza basin, nine of the sale of its working interests in Blocks 20 pursuant to the terms of the purchase and sale and 21, the two acreages it operates and in field off Equatorial Guinea. them outright dry holes, six non -commercial, agreement, and is continuing to market its which those reserves were found. However, interest in these blocks to interested third In 2010, Anardako cracked the code offshore with only five considered commercial. Four of Mozambique, encountering significant because the sale to Sonangol did not close parties. those five commercial finds were drilled by volume of gas in the deepwater Rovuma within one year of execution of the purchase Cobalt Energy, an NYSE listed small and sale agreement, the sale was terminated

6 JUNE 2017 A F RI C A O IL + G AS R E P O R T AFRICA OIL + GAS REPORT JUNE 2017 7 exploration blocks C-6, C-8, C-12 and C-13 in ENI, a 25% indirect interest in the natural gas- In early 2016, ENI had signed, with Chariot Oil Majors Reclaim E&P Lead In Africa's Frontier Mauritania and a 32.49% effective working rich Area 4 block, where the Italian player and Gas, a farm-in agreement s to enter into uropean and American majors have discoveries all over the continent. interest in Kosmos' Saint-Louis Profond and currently holds a 50% indirect share through a Rabat Deep Offshore exploration permits I-VI, returned to dominate the African “The majors are no longer carrying out Cayar Profond exploration blocks in Senegal. 71.4 percent stake in Eni East Africa, which located in a 6,500 sq km area in the Northern

A The truth is a little more complicated than A and development carry to acquire these of European and American majors to play their portfolios in Africa's second tier basins,

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Bluestar Campaigns For Farminee into OST Block First Oil From Sankofa-Ge Nyamme, Ahead of Schedule. Bluestar Exploration, an indigenous independent, has commenced campaign ENI announced First oil production from Offshore Cape Three Points (OCTP), on May 20 for farm in into the Offshore Southwest Tano block, adjacent to the Jubilee 2017. This commissioning was achieved two and a half years after the project was field. Bluestar claims it is Ghana's largest indigenous upstream Oil and Gas sanctioned and is the third key project The Italian explorer has delivered ahead of Company, holding material working interest positions in two exploration schedule in 2017. The $7.9Billion project consists of 14 subsea wells on the Sankofa Main licences located offshore. The Offshore South West Tano (“OSWT”) licence is & East fields, tied back to a new, leased FPSO. Peak production is expected in 2019 at within the prolific Tano Basin. The East Keta (“EK”) licence is new 80,000BOEPD, of which gas will account for over 40%. First gas is expected to be flamed exploration acreage in the deeper water part of the Keta Basin. Gas in 2018. At peak, the OCTP project will contribute 190MMscf/d to Ghana's Blue Star and its partners, Heritage Oil Limited and GNPC Exploration and indigenous natural gas supply. Production Company Limited, were, in July 214, awarded the two high exploration licences offshore Ghana. “Blue Star led the sub-surface analysis and commercial negotiations with the Government of Ghana required to Soon There Will Be Gas From TEN identify and secure the Petroleum Agreements”, the company claims. The tie-in, dewatering and commissioning of the TEN gas export line was completed in March 2017, enabling gas export once a Gas Sales Agreement is executed, which is expected latest by July 2017.

PGS Completes 1,2000sqkm seismic for ENI, Springfield and Tullow Ghana's Gas Production to reach PGS has completed acquisition 350MMscf/d by 2019 Ghana's Ministry of Petroleum expects of 1,200sq km of three “gas volumes from indigenous fields will dimensional (3D) and four reach 350 Million Standard Cubic Feet Dimensional(4D) seismic data per Day (MMscf/d) by 2019”. This for three companies operating in includes gas volumes from the Jubilee the country. The company field, the TEN Custer and the Sankofa - acquired 4D data in Tullow GyeNyame twin fields. The molecules operated Deepwater Tano block will “be enough to generate over and 3D data in both ENI 2,000MW of power”, according to operated Offshore Cape Three Emmanuel Kofi Armah-Buah, the Points (OCTP) and Springfield Minister of Petroleum. The country's only Gas Processing Plant, which has a operated West Cape Three capacity of 150 MMscf/d, is currently Points Block. supplying about 80 MMscf/d of gas for power generation. This is coming from Jubilee alone. TEN will be introduced in 2017, adding 50MMscf/d. Sankofa- Two Thirds of Ghana's Offshore Area Still Open for Investors GyeNyame is in development and the Ghana's offshore basins (measured to 3500 m isobath) encompass an area of approximately 60,000 sq. km. About 23,092 sq. km gas will be processed by a different have been awarded to IOCs and the rest is open to investors. In Q2 2016, two new companies were granted E&P rights offshore and plant. The Jubilee Gas Processing plant one company was awarded rights onshore. As of October 2016, eighteen (18) Petroleum Agreements (PAs) were active for offshore is also producing about 500 metric concessions. Source: Ministry of Petroleum tonnes of Liquefied Petroleum Gas (LPG) per day, about 50% of national demand. Theme: Previe V Association ofP capit and shak Theme :PETROLEUMPE V mechanism andtheAfric SPE Ups Botswana t seismic anddrillingschedulesthroughoutthesubregion.Developmen Theme: ScrambleF V Theme: V meeting thechallengesofe modelling Theme: V in Lagos,NigeriaJuly31-Augus participan c Theme: V participan domain ofindependents.W Theme: V This issuewillbedis Theme: THEAFRICANINDEPENDENT V This issuewillbedis Cairo. S V F This issuewillbedis deepw dis Afric African edgeoftheMedit t 1. V The publica o participan ontinen eb -02March TEPPING ONTHEGAS olume 18,Number10,December 2017,r ol 18,Number9,Nov ol 18,Number8,Oct ol 18,Number7,Sept ol 18,No6,Augus ol 18,No5,July2017,r ol 18,No4,June2017,r ol 18,No3,April-Ma ol 18,No2,F ol 18,No1,January2017,r w Theme: w tribut w CIAL ISSUE:TheChallengeofAlt tream Conf .a a (Seneg al developmen f r ic Incorpor at a :

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Provincial Politics A Major Risk to Kenya's Oilfield Development Ghana Averages 132,000BOPD in Q1 2017 he overarching risk facing Kenya's oil ross crude oil production in Jubilee quarter, so wasn't counted for this report. commissioning of the TEN gas export line

of the oil industry further. Very fluid political S industry is how the devolution process, dynamics in Kenya, particularly around field, Ghana's main oil field averaged Jubilee and TEN are operated by the Irish was completed in March 2017, enabling gas S established in the 2010 constitution, of 82,000BOPD in the first quarter of Independent Tullow Oil. Sankofa Gye export once a Gas Sales Agreement is W I election cycles, have the potential to disrupt

T G E transferring political power and economic

S the industry again, and repeatedly so, in the 2017. The TEN Cluster, which came on line in Nyamme is operated by ENI. executed, which is expected latest by July

resources from the central government to the future. N Y 2016, averaged 50,000BOPD in the same Gas production for Q1 2017 was slightly less 2017.

sub-county level, wrestle to control new I Studies (OEIS) and Senior Researcher, Danish development projects resources, including business engagement Institute for International Studies (DIIS). valued at $30.2Billion under with the oil industry and future oil revenues. If By Luke Patey References T construction in Egypt. They are Kenya is to go it alone with financing and Oxford Institute of Energy Studies 32 Members of parliament representing collectively expected to produce building an oil pipeline, or orchestrate a joint comprehensive stakeholder engagement to Turkana South and Turkana East, the two oil- 4.7Bilion standard cubic feet of gas pipeline with a regional partner, it will need to address grievances in local communities.36 But bearing sub-counties, motivated residents to and twenty seven thousand calm concerns associated with high in- whether its efforts will continue in the long shut down the industry. Each was dissatisfied barrels of condensate per day country political and security risk. run, and can overcome local power structures with their access to employment and tenders (4.7Bscf/d, 27,000BCPD) by the Unlike Uganda, where the oil industry has 'to recalibrate the industry's unhealthy from companies Sammy Lutta & Bernard end of 2019, according to Tarek El faced hard bargaining over financial and relationship with local government', is yet to Namuname, 'Oil drilling halted', Daily Nation, 37 Molla, the country's Petroleum regulatory issues, Kenya's central government be seen. In Turkana, managing expectations 27 October 2013; has been relatively supportive to of fast growth and development from oil will Minister. Mr. Molla told the 33 'Setting the Agenda for the Development American Chamber of Commerce international oil companies. President Uhuru be a challenge in light of the relatively small of Kenya's Oil and Gas Resources – The in Cairo that $7.4 Billion was Kenyatta has been eager to demonstrate size of the discoveries to date. Perspectives of Civil Society', Kenya Civil invested in twenty one (21) similar advancements in the oil industry before the The early oil scheme to truck and rail 2,000 Society Platform on Oil and Gas (KCSPOG), projects during the last three 2017 national election, including pushing BOPD from Turkana to Mombasa before the Nairobi, July 2014, 53; 'Tullow Oil, Annual years, yielding 3.1Bscf/d and forward an early oil production scheme. But 2017 elections may backfire on the ruling Report 2013'. 38 21,000BCPD. He announced that as exploration companies Tullow and Africa Jubilee alliance. While President Kenyatta 34 Kennedy Mkutu& Gerard Wandera, 11 Gas development projects are Oil look to attract larger partners to invest in wants to demonstrate success in the oil 'Conflict, Security and the Extractive and develop Kenya's oil resources, the long- industry during his first term, the small Industries in Turkana, Kenya: Emerging Issues in their planning stage ; they will term perspective of how political relations revenues (if not losses) from initial oil sales 2012-2015', United States International attract $17.5Billion worth of within and between Turkana and central may only enflame grievances in local University-Africa and Kenya School of investment and deliver $1.9Bscf/d authorities will develop becomes critical. communities over the lack of jobs and Government, 2016, p. 2. and 50,000BCPD. Source: Egypt’s Minister of Petroleum Grievances among the local communities and development in the region, where there is 35 Personal communication, oil consultant political representatives have already already high-levels of inter-communal working in East Africa, 9 October 2014. 39 Addax' Production Flat in Cameroon and Gabon, Drops Sharply in Nigeria constrained oil operations in Turkana, and violence over land and resources. It is a 36 'Oil exploration in Kenya: Success Requires may very likely do so again in the future. In late dangerous gamble for the Kenyan Consultation', Cordaid, August 2015. hinese-Swiss independent Addax 24,000BOPD, but it has fallen in Nigeria, from however. In Iraq, the company produces October 2013, Tullow suspended its government and international oil companies, 37 Interview, Leading Kenyan civil society Petroleum, has maintained net around 44,000BOPD on average) in 2016 to slightly less than 8,000BOPD and around operations in Block 10BB and 13T for several as most investors have a low threshold for representative, 9 August 2016. production of around 28,000BOPD in 34,000BOPD in late May 2017. 16,000BOPD in the United Kingdom. weeks in the face of demonstrations by 40 C violence. A significant attack on oil 38 'Early oil from Turkana: Marginal benefits / Cameroon and its output has also been Addax' production in these three West hundreds of local residents over a lack of operations could derail advancement in relatively flat in Gabon, at around African countries remains its largest, 32 unacknowledged costs', Kenya Civil Society employment and business opportunities. Kenya's oil industry even further. Platform on Oil and Gas, Nairobi, October Tullow responded to the 2013 shutdown by There are also divisions between the national- 2016. PIGB Creates Three Commercial Entities to Replace NNPC renewing its commitment to community local government that warrant attention. Oil 39 Interview, international oil company active engagement through increasing social companies did not enter a blank slate in igeria’s Petroleum Industry mutandis, in the repeal of the Nigerian appropriation through the National 33 in East Africa, 12 July 2016. investment, local hires, and tendering. But Turkana, where divisions over the neglect of 40 Interviews, international oil companies Governance Bill (PIGB) 2017 National Petroleum Corporation Act CAP Assembly for the initial capitalisation and its actions increased the economic value of the region by the political centre have long active in East Africa, 24 April 2015 & 14 Nproposes the incorporation of three N123, Laws of the Federation of Nigeria, subsequent financing of the company. The political positions in Turkana and existed, and have now manifested again over December 2016. commercial entities including the Nigeria 2004, Nigerian National Petroleum Federal Republic of Nigeria Appropriation demonstrated the ability of local political oil. Throughout 2016, the Turkana South and 41 One demand was that locals (likely Petroleum Assets Management Company, Corporation (Projects) Act CAP N124 Laws of Act 2016 provides for the funding of NNPC representatives to control community- East MPs threatened to block oil drilling and companies affiliated with the political National Petroleum Company and the the Federation of Nigeria, 2004 and Nigerian through appropriation. Part of the recurrent company relations in order to selectively the construction of a pipeline should representatives) receive a share of trucking Nigeria Petroleum Liability Management N a t i o n a l Pe t ro l e u m C o r p o ra t i o n and capital expenditure components of the distribute employment and tender government development plans for the contracts in the early oil scheme; Alphonse Company. Amendment Act N123. Appropriation Act 2016 which shall be 3 4 41 o p p o r t u n i t i e s . F u t u r e e l e c t e d region not move forward. The current Shiundu, Turkana MPs vow to block oil drilling, The bill, passed by the Senate, the Upper The Nigeria Petroleum Liabilities received by the Nigeria Petroleum Assets parliamentarians will likely expect similar governor of Turkana, a member of the pipeline until Government honours pledges', Chamber of Nigeria's Bicameral House of Management Company is proposed as a Management Company from the NNPC opportunities from the oil industry for their opposition party, and Turkana MPs, some The Standard, 23 March 2016. Legislature, on May 25, 2017, seeks, among limited liability company that has the legal budget aforesaid shall be adequate to supporters and businesses, opening up from the ruling Jubilee alliance, have also 42 Kenyatta recommended capping the other things, to restructure the Nigeria capacity to hold assets including shares in provide for the financing of the competition with outgoing political protested against President Kenyatta's refusal county share according to national levels and National Petroleum Corporation by splitting the Nigeria Petroleum Assets Management establishment of the Nigeria Petroleum representatives who are already embedded in to ascent a draft of the Petroleum bill that reducing the share for local communities to the assets and liabilities of the corporation Company and the National Petroleum Assets Management Company. Therefore, 35 transport and labour supply chains. allocated 20% of future oil revenues to 5%. into two new commercial entities, namely Company on behalf of the Government of no further financial requirements are Since 2015, Tullow has developed a new producing counties, and 10% to local the Nigeria Petroleum Assets Management the Federal Republic of Nigeria. needed for the establishment of the Nigeria 42 approach to community engagement. It has communities. Left unresolved, this national- Company and the National Petroleum Funding of the Nigeria Petroleum Assets Petroleum Assets Management Company. moved away from a transactional approach county divide, related to the wider devolution Company which will result, mutatis Management Company shall be by with local politicians towards more process, threatens to stall the advancement

10 JUNE 2017 A F RI C A O IL + G AS R E P O R T AFRICA OIL + GAS REPORT JUNE 2017 11 Provincial Politics A Major Risk to Kenya's Oilfield Development Ghana Averages 132,000BOPD in Q1 2017 he overarching risk facing Kenya's oil ross crude oil production in Jubilee quarter, so wasn't counted for this report. commissioning of the TEN gas export line

T G E transferring political power and economic

S the industry again, and repeatedly so, in the 2017. The TEN Cluster, which came on line in Nyamme is operated by ENI. executed, which is expected latest by July

resources from the central government to the future. N Y 2016, averaged 50,000BOPD in the same Gas production for Q1 2017 was slightly less 2017.

L county level is implemented. This presents This article is an excerpt from a research period. A new field, named Sankofa-Gye than 60MMscf/d, all of it from the Jubilee challenges to the oil industry, particularly in E A paper titled: A Belated Boom: Uganda, Nyamme came on stream in the second field. The tie-in, dewatering and Turkana County (where the oil is found in Kenya, South Sudan, and prospects and risks H N commercial quantities), as political for oil in East Africa. Patey is Lead Senior T Companies Pump $30Billion into Gas Projects in Egypt A representatives at the national, county, and Research Fellow, Oxford Institute of Energy h e r e a r e n i n e g a s N sub-county level, wrestle to control new I Studies (OEIS) and Senior Researcher, Danish development projects resources, including business engagement Institute for International Studies (DIIS). valued at $30.2Billion under with the oil industry and future oil revenues. If By Luke Patey References T construction in Egypt. They are Kenya is to go it alone with financing and Oxford Institute of Energy Studies 32 Members of parliament representing collectively expected to produce building an oil pipeline, or orchestrate a joint comprehensive stakeholder engagement to Turkana South and Turkana East, the two oil- 4.7Bilion standard cubic feet of gas pipeline with a regional partner, it will need to address grievances in local communities.36 But bearing sub-counties, motivated residents to and twenty seven thousand calm concerns associated with high in- whether its efforts will continue in the long shut down the industry. Each was dissatisfied barrels of condensate per day country political and security risk. run, and can overcome local power structures with their access to employment and tenders (4.7Bscf/d, 27,000BCPD) by the Unlike Uganda, where the oil industry has 'to recalibrate the industry's unhealthy from companies Sammy Lutta & Bernard end of 2019, according to Tarek El faced hard bargaining over financial and relationship with local government', is yet to Namuname, 'Oil drilling halted', Daily Nation, 37 Molla, the country's Petroleum regulatory issues, Kenya's central government be seen. In Turkana, managing expectations 27 October 2013; has been relatively supportive to of fast growth and development from oil will Minister. Mr. Molla told the 33 'Setting the Agenda for the Development American Chamber of Commerce international oil companies. President Uhuru be a challenge in light of the relatively small of Kenya's Oil and Gas Resources – The in Cairo that $7.4 Billion was Kenyatta has been eager to demonstrate size of the discoveries to date. Perspectives of Civil Society', Kenya Civil invested in twenty one (21) similar advancements in the oil industry before the The early oil scheme to truck and rail 2,000 Society Platform on Oil and Gas (KCSPOG), projects during the last three 2017 national election, including pushing BOPD from Turkana to Mombasa before the Nairobi, July 2014, 53; 'Tullow Oil, Annual years, yielding 3.1Bscf/d and forward an early oil production scheme. But 2017 elections may backfire on the ruling Report 2013'. 38 21,000BCPD. He announced that as exploration companies Tullow and Africa Jubilee alliance. While President Kenyatta 34 Kennedy Mkutu& Gerard Wandera, 11 Gas development projects are Oil look to attract larger partners to invest in wants to demonstrate success in the oil 'Conflict, Security and the Extractive and develop Kenya's oil resources, the long- industry during his first term, the small Industries in Turkana, Kenya: Emerging Issues in their planning stage ; they will term perspective of how political relations revenues (if not losses) from initial oil sales 2012-2015', United States International attract $17.5Billion worth of within and between Turkana and central may only enflame grievances in local University-Africa and Kenya School of investment and deliver $1.9Bscf/d authorities will develop becomes critical. communities over the lack of jobs and Government, 2016, p. 2. and 50,000BCPD. Source: Egypt’s Minister of Petroleum Grievances among the local communities and development in the region, where there is 35 Personal communication, oil consultant political representatives have already already high-levels of inter-communal working in East Africa, 9 October 2014. 39 Addax' Production Flat in Cameroon and Gabon, Drops Sharply in Nigeria constrained oil operations in Turkana, and violence over land and resources. It is a 36 'Oil exploration in Kenya: Success Requires may very likely do so again in the future. In late dangerous gamble for the Kenyan Consultation', Cordaid, August 2015. hinese-Swiss independent Addax 24,000BOPD, but it has fallen in Nigeria, from however. In Iraq, the company produces October 2013, Tullow suspended its government and international oil companies, 37 Interview, Leading Kenyan civil society Petroleum, has maintained net around 44,000BOPD on average) in 2016 to slightly less than 8,000BOPD and around operations in Block 10BB and 13T for several as most investors have a low threshold for representative, 9 August 2016. production of around 28,000BOPD in 34,000BOPD in late May 2017. 16,000BOPD in the United Kingdom. weeks in the face of demonstrations by 40 C violence. A significant attack on oil 38 'Early oil from Turkana: Marginal benefits / Cameroon and its output has also been Addax' production in these three West hundreds of local residents over a lack of operations could derail advancement in relatively flat in Gabon, at around African countries remains its largest, 32 unacknowledged costs', Kenya Civil Society employment and business opportunities. Kenya's oil industry even further. Platform on Oil and Gas, Nairobi, October Tullow responded to the 2013 shutdown by There are also divisions between the national- 2016. PIGB Creates Three Commercial Entities to Replace NNPC renewing its commitment to community local government that warrant attention. Oil 39 Interview, international oil company active engagement through increasing social companies did not enter a blank slate in igeria’s Petroleum Industry mutandis, in the repeal of the Nigerian appropriation through the National 33 in East Africa, 12 July 2016. investment, local hires, and tendering. But Turkana, where divisions over the neglect of 40 Interviews, international oil companies Governance Bill (PIGB) 2017 National Petroleum Corporation Act CAP Assembly for the initial capitalisation and its actions increased the economic value of the region by the political centre have long active in East Africa, 24 April 2015 & 14 Nproposes the incorporation of three N123, Laws of the Federation of Nigeria, subsequent financing of the company. The political positions in Turkana and existed, and have now manifested again over December 2016. commercial entities including the Nigeria 2004, Nigerian National Petroleum Federal Republic of Nigeria Appropriation demonstrated the ability of local political oil. Throughout 2016, the Turkana South and 41 One demand was that locals (likely Petroleum Assets Management Company, Corporation (Projects) Act CAP N124 Laws of Act 2016 provides for the funding of NNPC representatives to control community- East MPs threatened to block oil drilling and companies affiliated with the political National Petroleum Company and the the Federation of Nigeria, 2004 and Nigerian through appropriation. Part of the recurrent company relations in order to selectively the construction of a pipeline should representatives) receive a share of trucking Nigeria Petroleum Liability Management N a t i o n a l Pe t ro l e u m C o r p o ra t i o n and capital expenditure components of the distribute employment and tender government development plans for the contracts in the early oil scheme; Alphonse Company. Amendment Act N123. Appropriation Act 2016 which shall be 3 4 41 o p p o r t u n i t i e s . F u t u r e e l e c t e d region not move forward. The current Shiundu, Turkana MPs vow to block oil drilling, The bill, passed by the Senate, the Upper The Nigeria Petroleum Liabilities received by the Nigeria Petroleum Assets parliamentarians will likely expect similar governor of Turkana, a member of the pipeline until Government honours pledges', Chamber of Nigeria's Bicameral House of Management Company is proposed as a Management Company from the NNPC opportunities from the oil industry for their opposition party, and Turkana MPs, some The Standard, 23 March 2016. Legislature, on May 25, 2017, seeks, among limited liability company that has the legal budget aforesaid shall be adequate to supporters and businesses, opening up from the ruling Jubilee alliance, have also 42 Kenyatta recommended capping the other things, to restructure the Nigeria capacity to hold assets including shares in provide for the financing of the competition with outgoing political protested against President Kenyatta's refusal county share according to national levels and National Petroleum Corporation by splitting the Nigeria Petroleum Assets Management establishment of the Nigeria Petroleum representatives who are already embedded in to ascent a draft of the Petroleum bill that reducing the share for local communities to the assets and liabilities of the corporation Company and the National Petroleum Assets Management Company. Therefore, 35 transport and labour supply chains. allocated 20% of future oil revenues to 5%. into two new commercial entities, namely Company on behalf of the Government of no further financial requirements are Since 2015, Tullow has developed a new producing counties, and 10% to local the Nigeria Petroleum Assets Management the Federal Republic of Nigeria. needed for the establishment of the Nigeria 42 approach to community engagement. It has communities. Left unresolved, this national- Company and the National Petroleum Funding of the Nigeria Petroleum Assets Petroleum Assets Management Company. moved away from a transactional approach county divide, related to the wider devolution Company which will result, mutatis Management Company shall be by with local politicians towards more process, threatens to stall the advancement

10 JUNE 2017 A F RI C A O IL + G AS R E P O R T AFRICA OIL + GAS REPORT JUNE 2017 11 Vol 18, No 4, June2017 Is Somali Piracy On The Rebound? ©Copyright 2017, he recent reported attacks off Somalia www.africaoilgasreport.com

AFRICA OIL+GAS REPORT S report and the Gulf of Aden are creating new 2: Reported total incidents, 2007-2017 S

concerns about safety of vessels in the T 350 W N E D NIGERIA's TOP INDIGENOUS CRUDE OIL PRODUCING COMPANIES -MAY, 2017 I T 300 horn of Africa. C E N I

F 250 O But Control Risks, the global risk consulting R N E 200 B

OPERATED EQUITY Prdn GROSS Field KEY PRODUCING M firm, says it is too soon to determine whether U

N 150

E C OMPANY N A M E Pr d n ( B O PD) (BOPD) Prdn (BOPD) ACREAGES LICENCE TYPES FIELD D the recent attacks will develop into a E T 100 R

AITEO 85,000 38,250 85,000 OML 29 JV Nembe Creek O P sustained trend H E 50 Cawthorne R 0 EROTON 54,000 24,300 54,000 OML 18 JV “Recent incident levels mark an increase T Channel 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

OMLs 4, 26, 30, 34, 38, compared with the extremely limited number YEAR Source: Control Risks N P DC 4 5 , 9 45 45,099 62,007 JV, PSC Okono of incidents recorded in the last few years”, Gulf of Guinea Horn of Africa N 41, 65, 66, 111, 119 forces, as well as the offshore response from they also differ in several important ways, with I N E WCROSS E & P 3 3 , 0 00 14,850 33,000 OML 24 JV Ekulama Control risks spokespersons admit. “However, existing naval forces. Groups will also face pirate groups in each country using separate, O R IENTAL 2 5 , 0 00 12,500 25,000 EBOK Marginal Field Ebok activity levels since March are well below deteriorating sea conditions when the distinct 'business models'. SEPLAT - Note 1 26,000 13,150 38,500 OMLs 4, 38, 41, 53, 55 JV Ovhor, Sapele those seen during the high point of Somali “Somali pirates tended to seize ships, crews MIDWESTERN 15,000 10,500 15,000 UMUSADEGE Marginal Field Umusadege pirate group activity in 2011”. AMNI PETROLEUM 11,000 6,500 11,004 OML 112 Sole Risk Okoro and cargo, and hold them off the coast for One bad news is that pirate groups in Somalia BELEMAOIL 11,000 1,925 11,000 OML 55 JV weeks, months or even years to negotiate have retained the resources and expertise to C O NOIL 9 , 0 00 9,000 9,000 OMLs 59, 103 Sole Risk Otuo South multi-million dollar ransoms. By contrast, NIGER DELTA PETROLEUM 5,760 5,760 5,760 OGBELE FIELD Marginal Field Ogbele attack vessels, but the good news is that “their 2016 saw the highest number of pirate activity off Nigeria and in the wider Gulf E R I N ENERG Y 5 , 0 00 5,000 5,000 OML 120 Sole Risk Oyo influence and support among local attacks in Nigerian waters since of Guinea takes many forms, from theft and W A LT ER SMITH 3 , 4 8 3 3,483 3,483 IBIGWE FIELD Marginal Field Ibigwe communities appears to have diminished”, 2008. This was primarily driven by armed robbery involving ships at anchor, to MONI PULO 2,800 2,800 2,800 OML 114 Sole Risk Abana Control Risks argues . ENERGIA 2 ,500 1,432 2,500 EBENDO Marginal Field Ebendo financially motivated kidnapping- high-profile cases involving the kidnapping of “In three of the hijacks reported so far this for-ransom groups based out of crew off ships, or the hijacking of tankers to PILLAR OIL 1,900 1,140 1,900 UMUSETI Marginal Field Umuseti year, the vessels were quickly released either steal their refined fuel cargoes.Kidnaps and PLATFORM 1,400 840 1,400 EGBEOMA FIELD Marginal Field, JV Egbeoma Field through negotiation, abandonment or local Bayelsa and Rivers states. PRIME ENERGY 1,200 720 1,200 ASSARAMATORU Marginal Field Assaramatoru hijacks have typically been shorter in duration security force intervention. This suggests that FRONTIER OIL 520 N/A 520 UQUO FIELD Marginal Uquo in Nigeria than Somalia”. there is less support for piracy among local NECONDE NIL 25,220 11,349 OML 42 JV Jones Creek Control Risks sees a close link between levels communities than when vessels were held for OMLs 60, 61, 62, 63, 125,J V, PSC, Marginal monsoon period begins in June, which will act of insecurity onshore and fluctuations in OANDO ER - Note 2 NIL 15,000 100,000 long periods in previous years. Local EBENDO, QUA IBOE Field as a further deterrent. These factors, piracy incidents. Although piracy and armed community cooperation and support in 2011 Agbami Field combined with a lack of success in holding robbery at sea in various forms has remained a FAMFA - No t e 3 NIL 15,000 238,000 OML 127 Sole Risk was often pivotal in enabling groups to (Deepwater) vessels and negotiating a ransom, mean the persistent issue in the Gulf of Guinea, Nigeria SHORELINE NAT' RESOURCES NIL 13,500 30,000 OML 30 JV Afiesere successfully hold vessels and crew for long recent attacks could remain an isolated spate has yet to experience the levels of activity Akpo Field periods of time”. SAPETRO - Note 4 NIL 10,000 145,000 OML 130 Sole Risk rather than signalling the start of a new trend. recorded during the high point of Somali (Deepwater) Whether Somali groups continue to launch SUNTRUST N IL 4,500 15,000 UMUSADEGE Marginal Field Umusadege Control Risks argues that while piracy in pirate activity (between 2008 and 2011). attacks will depend on their persistence in the ELCREST NIL 3,600 8,000 OML 40 JV Opuama Somalia and Nigeria share some similarities, However, 2016 saw the highest number of Ughelli, Warri face of onshore pressures from local security ND WESTERN NIL 3,055 6,788 OML 34 JV attacks in Nigerian waters since 2008. This was River 1: Reported incidents in the Horn of Africa, year to date Jan 1 – April 28, 2007 -2017 primarily driven by financially motivated FIRST HYDROCARBON NIL NIL NIL OML 26 JV Ogini kidnapping-for-ransom groups based out of SHORELINE NAT' RESOURCES NIL NIL NIL OML 30 JV Afiesere S 160T N

E Bayelsa and Rivers states. These were D

PAN OCEAN NIL NIL NIL OML 98 JV Ogharefe 140I C N I

120

TOTALS 339,508 287,124 922,211 F motivated by cuts in the Niger Delta amnesty O

100R

NIGERIA's TOP INDIGENOUS NATURAL GAS PRODUCING COMPANIES-MAY 2017 OUTPUT E programme for former militants at the B

M 80

OPERATED GROSS Field U N 60 beginning of 2016 and exacerbated by the D E

Prdn EQUITY Prdn Prdn T 40 R Bayelsa state gubernatorial elections in O

COMPANY NAME ACREAGES/Offtaker P 20 (MMscf/d) (MMsf/d) (MMscf/d) E R January 2016, which saw an influx of weapons Includes Oben, Utorogu 0 NPDC 272 367 512 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017 into the state that were later used in offshore and Oredo YEAR Mainly ENI operated * No incidents were recorded between 1 Jan - 28 April 2016 attacks. OANDO ER NIL 186 900 Total into NLNG system Source: Control Risks Utorogu Gas, fed into ND WESTERN NIL 90 202 the Escravos Lagos TransForcados System (TFS) Is Back Up Pipeline System (ELPS) By Toyin Akinosho, in Lagos Fed into NGC lines he TransForcados System, a crude oil Midwestern, Energia and Platform. pipeline. SEPLAT 210 95 210 (Geregu line and the ELPS) export facility in Nigeria, came back on Until it was shut down in February 2016, In the period that the shut- in lasted, Sold to Ibom Power, Tline in late May 2017. through a military grade dynamite of the however, four more companies –Seplat, FRONTIER 115 NA 115 Unicem and Calabar Comprising a pipeline, a crude loading line undersea, six kilometre crude loading line, Elcrest, Neconde and Shoreline-had Plant and the terminal itself, the TFS had been out by gangs operating in the Niger Delta Basin, it commissioned alternative routes to market, Pumped into NLNG NIGER DELTA - Note 5 20 20 20 of operation for over 15 months, shutting was the only outlet for all the crude all of them, through shipping operations. system ENERGIA 10 10 10 Sold in the community Plans for expansion and sale to NGC out at least 200,000Barrels Per Day of produced by six of these companies: Seplat, The cost of shipping (barging crude into TOTALS 627 768 1,969 Nigerian crude. Elcrest, Shoreline, Neconde, Pan Ocean and FPSOs) is however so high many companies Notes Below: The facility is the export thoroughfare for NDWestern. say it is not sustainable. Elcrest, for example, (1) SEPLAT Production now includes Pillar Oil operated Umuseti field, as well as OMLs 53&55. crude produced by one International It was, however, only a secondary was paying $15 on every barrel shipped (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 company, Shell, and ten Nigerian thoroughfare for crude produced by Pillar through the operations. NDWestern was not (3) Famfa holds 60% equity in OML 127 (Agbami), which output 238,000BOPD, but is lifting 15,000BOPD, as a result of its "carried" status independents: Seplat, Elcrest, Shoreline, Oil, Midwestern, Energia and Platform Oil, involved in barging because “it's not (4) SAPETRO's take is 13.5% of Akpo field's (OML 130)'s daily production of 138,000BOPD but it lifts 10,000BOPD due to its "carried" status Neconde, Shell Petroleum Development which all have an alternative evacuation sustainable”, according Abdulrazaq Isa, Chief (5) Niger Delta Petroleum Resources delivered 35MMscf/d of gas from the Ogbele field to the Nigerian Liquefied Natural Gas(NLNG) system Company, Pan Ocean, NDWestern, Pillar, fare: in ENI (Agip) operated Kwale to Brass Executive of Waltersmith, which has 8% Continued on page 14

12 JUNE 2017 A F RI C A O IL + G AS R E P O R T AFRICA OIL + GAS REPORT JUNE 2017 13 Vol 18, No 4, June2017 Is Somali Piracy On The Rebound? ©Copyright 2017, he recent reported attacks off Somalia www.africaoilgasreport.com

AFRICA OIL+GAS REPORT S report and the Gulf of Aden are creating new 2: Reported total incidents, 2007-2017 S

concerns about safety of vessels in the T 350 W N E D NIGERIA's TOP INDIGENOUS CRUDE OIL PRODUCING COMPANIES -MAY, 2017 I T 300 horn of Africa. C E N I

F 250 O But Control Risks, the global risk consulting R N E 200 B

OPERATED EQUITY Prdn GROSS Field KEY PRODUCING M firm, says it is too soon to determine whether U

N 150

E C OMPANY N A M E Pr d n ( B O PD) (BOPD) Prdn (BOPD) ACREAGES LICENCE TYPES FIELD D the recent attacks will develop into a E T 100 R

E Bayelsa and Rivers states. These were D

PAN OCEAN NIL NIL NIL OML 98 JV Ogharefe 140I C N I

120

TOTALS 339,508 287,124 922,211 F motivated by cuts in the Niger Delta amnesty O

100R

NIGERIA's TOP INDIGENOUS NATURAL GAS PRODUCING COMPANIES-MAY 2017 OUTPUT E programme for former militants at the B

M 80

OPERATED GROSS Field U N 60 beginning of 2016 and exacerbated by the D E

Prdn EQUITY Prdn Prdn T 40 R Bayelsa state gubernatorial elections in O

12 JUNE 2017 A F RI C A O IL + G AS R E P O R T AFRICA OIL + GAS REPORT JUNE 2017 13

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. u r s C ) d o y

c d D D r t t o e

barging would come down, once it becomes immediately put out of action again. y i r P o P W l M o w t U d r u t c r c E e O O s n p q e o w a routine route to export. Elcrest says that, with the TFS up, it N B B N 4 a o r E s

s e /

/ A 0 0 v c 2 . O s e

C C V 0 5 N e r s 7 L

The latest crude oil producer in Nigeria has was producing 8,500BOPD gross o J

P P 0 8

r a 1 s N , e , E ’

E g M N N h 0 3 4 h

e joined the cohort of companies pumping (Net to Elcrest: 3,825BOPD) from o V D N O T N 3 2 1

t e D J d M

R N v t P n i E

crude through the TFS. It is Excel E&P, and it Opuama-3, as of the first week of e t O o O D a n R c C T

e n N E 0 has resumed injecting into the system. Excel June 2017. It anticipates production o D r e

t N O N 2

. e P

S h A d / . s t l C t 2 .

9 l

, O is producing about 800BOPD from its dual start-up from Opuama-1, which will C 7 a n E e d 2 t a d r 1 r 5 B

F 1 D n c P e 2 N 2 e e 4 i u 2

9 g 0 v

e The average June 2017 production of the P /

stringed Eremor marginal field, located at pump up the volume, in due course. t L 4 d 1

j 4 t n N 2

m o r e C i

N P o 3 L r L u

r r E a g r , y

D U N Nigerian independents will be published in O p e o r e .

the current mouth of the Niger Delta basin. SEPLAT was putting over 74,000BOPD into s a

p 1 r M w I M t P

a h b s e f 1 a e m I P O N

i c a N T O a ( M b i a

the next issue (July 2017 edition) of this :

The outage of the TFS-twice in 16 months the system; Shoreline was injecting over r s c 2 &

d M 1 a u n E m e

4 o a A S w

magazine, which will be distributed at the t

with dynamite- was a symbolic event that 30,000BOPD into the line; NDWestern was k

s / n 1 n

t i 6

M Y e a i y g h f L

n y 7

r , R

c G Society of Petroleum Engineers (Nigerian T n e l affronted the Nigerian state, suggesting it pumping over 15,000BOPD into it and g a i n i 3 a e

l i e M . , R , h i y s h e s u R h h s d M s T E 1 g r O t

t H h

w a Council) at the Eko Hotel, between July 31 r e

could not secure the country's petroleum Neconde was producing more than

b e N . n s , d N g n h e i n e w p e i

e )

l M E

D A

n y e

n t , F S h e l n i n 0

and August 2, 2017. P r l

infrastructure. The facility came back up in 30,000BOPD, all in early June 2017. U t b p E F g D n e

d e 0 E o e i 1 e , E i r O o T L l F c h d e t d ( 0

L p 4 a e l N B l O t t w c n A

r i e 2

b i 1 o e S . 0

, O

m T

l u R s n h a r s 0 P n

h S e e y e

D L R e d r

g T E l t e t F s 0 i

e E c l b T v

Wentworth Raises $5MM For Appraisal of Tembo Discovery s o , a s . - i

u a e M r R n E r e a n y m M 8 7 e e i n o

e b

p C

r S a E P O E d y d h s l

o But the Oslo listed explorer still keen on a farminee s L l N s i r n s i 0 a o t n E o r 0 e e t 2 o c / a

w v e 4 d e

. r

u s C e E e

entworth Resources says it has provides it with working capital flexibility new and existing investors for a total of a n b T L 7 6 s

t c d D w 1 1 r s r o e o u M P r

a r a o 0 0 o r

r a i s e d a p p r o x i m a t e l y ahead of the potential step up of gas demand 16,953,496 new Common Shares of no par h P d N O G 2 p p c t F h 2 h

7 e s

$5.1Million to advance an in Tanzania. value (the "Placement Shares") at a price of l p E 0 l i o n i 2 h

o o w i W s

appraisal programme onshore Mozambique. Tembo-1 well was drilled to a total depth of 2 5 p e n c e p e r P l a c e m e n t S h a r e y h

l t

a D i n e

d N r l r o

The main objective of the fund raising is the 4,553 metres into rocks of Upper Jurassic (approximately $0.32, 2.73 NOK), raising M n i d p

r o A

t N a f

n o

e E m

N i

s O l d

Tembo structure, in which Wentworth made age. Natural gas and some condensate was approximately $5.5Million (GBP 4.2Million, u h l o

7 C r & I T i X t a

L e

D d c R

l 1 L e I t

L O P w A i o A l C h 0 n

e 5 a discovery with the Tembo-1 in 2016. recovered by modular formation dynamics NOK 46.3Million) in aggregate before V d r A L B t l P a L O t - a O L 2 i

D I r D

r T I n p s E p N e

k P B i O E n L j p a a w d t r i P D I O G

H O a

The money was raised through private testing ('MDT') confirming the petro physical expenses. The net proceeds of the Private 0

H A E

m G p p A n a t r o K

6 y 0 O d M C T A

S A N S P o d l a l e -

n h l E , p

h n

0 K w - c t t a n

, L

e t

d e

placement, which the company says was analysis of 11 meters of pay in sands of Placement are estimated to amount to

e i p r n e , e

E i l i , n A e t j . a s 2 a . a f s a d a a L

t e

m e

n w a i d f 7 I A l a f

e e r

g l

d n s l f e 0 oversubscribed. Cretaceous age. approximately $5.1Million (GBP 3.9Million, p R

d w e r h i L

l 1 o y i o p

G g

e n l

e t n

u 1

i n i , i e u p 0 U u t f o U t y n

f D d u o r 3

s c a i l

d R h 2 N o n q & F

h n l The company says that the fundraising New Common Shares have been NOK 43.2Million). r L b

P u p o e d

, l a

o u T l

e S e r i e e l P i h s i

s h r V M r O c s g d

r i

S R i a

c i t c s n

E e m

P O L

o O n B m i

supports its ongoing Tembo appraisal successfully conditionally placed, or u d r d

E e t a t O

n I A a

i n l

s I

f d d S r h 6 r p e

i i .

0 a o p

b C

l e P a

E - t e

f h t .

G O d e

e t g o a L p s o h e f 0 l

s r

e C

s h l r I e e o d e c c K n G

programme in Mozambique and also subscription agreements entered into, with o l s i M a h c m d m p j p 0

t D o l u

e i

n i

a G

a e t o t t

U E d e

, e n u F a f O a e

a u

t e h i f A

e v n o h g o t N t

i L l s L n

t e i 0

S r I r

e p d i o i t K e w l i i n

I v

t f t e o f e

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e o j d . w E r o g i s o u p i t i E

o l t t a

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o o O c v a f e e e e q K i l n e o e o g g g a v l c

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u v r r e e P P F O A w i r u a P M M y i i K O l l , r e i r c u b i e E v n s s p h e u u u t t e n p JUNE 2017 p L f

0 A F R I C A O IL + G AS R E P O R T 0 E e i e i m s d e O L O G p l t d d t p w i d

n h 14 l i o o o l L

i r L w s m v v 0 0 d i m s b t r r e r e o

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Vol 18, No 3, April/May 2017 d

i a t u

e o

n t r i D s t h 7 c e T P e y

P e

r O e e

e n

e 0 O d d

o www.africaoilgasreport.com t B h e h y 2 h

L B e o t a t e

e I 0 t h

AFRICA OIL+GAS REPORT report n l r k t

4 s n i f h t i 0 T i t a N e p r t 6 n - a

o (

a 0 A u p

e p 6 ,

e f e i , r . L b d n r n 0 A d I m o )

o i ANGOLA's CRUDE OIL EXPORT AND PRODUCING COMPANIES (FOREIGN & LOCAL) JAN-APR, 2017 m 2

C ,

e u o T 3

e ( n

) i o N E t t O

n p , e n r

t i e i o c S

s c A T u . E

5 e d a D c I

c O F t b

h a u

h A a n r e

1 f p u P m s P u I s R r T s u s e r o o n E r ( w h

o t

D 0 m o e e D w d E a i ,

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s t GROSS h C R

T e c t o t e 2 e P

t 7 P

a o

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G s w e . 7 t r a r . c

r S o m

r h 1 I

u r t r . N

u ) y 1 U 0 O t t a 7 1 t u

e A . u 0 f o

) e s y VOLUME p s

e o r S N n 0 a ) l 2

t t B 1 0

2 t

o e l G d n e 7 e e

r e b s L s i 2 s t 9 s n s r 0 0 2 + r e p

o O n

, 1 b N e 73,845,410 ESSO 20% BP 16.67% s

y T p h

V a L i

t o o e r 2 e 0 e t W n y I . n a m l

y 5 0 J g S

g C O o

i s

d S

d P R a 0

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% e 36,255,107 ESSO 40% BP 26.67% ENI 20% , l

i s

e D B d e t r

a l N a y t e l . a r O a t

0 G r i V 5 A N

(

o c M 4 e P p M R p a o -

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25,386,804 CHEVRON 39.2% Sonangol 41% ENI 09.8% 3 d f t

I e w M h

e A T O

n P u n s e

s o C 7 p C u a i D h a I . N R i i S S L f r c d r C

n s

B d t

r F

t m O 1 c F i

D D 19,623,377 BP 26.67% ESSO 25% Sonangol P&P 20% MARATHON 10% China Sonangol 5% m A N a 9 U y o s e u m e © r n o f e n 0 e a n e o

B L O

A 0

t / P J M P i o r v

t g t g 2 a i n h v o o o

5 o 0 o

i r

2 R d N

i s C i k e t m O t

13,833,306 BP 50% SSI 50% NONE NONE NONE NONE NONE u

N O G a t h F f f a t ) 0

2 t 7 L t n y 1 r r D P , e y n B 0 u e q s e e 0 2 c c

' % S e T e , e s s g Y a 5 8 n e u

M n u N 11,448,024 CHEVRON 31% Sonangol P&P 20% ENI 20% GALP 9% n u u

J 5

d s s 1 v ,

i r s 2 o 4 . 3 l

H e e l o d C d t

1 N O a M ( a a t T N 9

o r 2 D ,

e h h , e 8 P o 9,232,691 ENI 35% SSI 20% Sonangol P&P 15% FALCON 5% PETROBRAS 5% o i 1 T o

s l 2 t t d r P o f r r 1

V S N

a a r e t o s p p r O e 7 o R

4,222,598 Sonangol P&P China Sonangol 25% AJOCO 20% ENI 12% SOMOIL 10% NAFTGAS 4% INA NAFTA 4% c N o w a l I a l h

r (

B i

1 i

h .

t F S 6 0 t o 0 d g d T o 0 o

967, 646 Sonangol P&P 50% SOMOIL 15% ACREP 15% NONE NONE NONE / u / D

2 n 3 F e

e . 0 n 2

s p l s C P C

i s e ) L e t t 5 L n s s y i g

325, 542 SOMOIL 15% Sonangol 63.67% CHEVRON 14.3% Sonangol P7P 5% NONE NONE , n O D D L N u t n m e o r o I a i a 3 B M P r M P r o l e n H p a r

5 1 212, 038 PETROBRAS Sonangol P&P 25% CHEVRON 20% SOMOIL 9.3% POLIEDRO 9.1% O g e

N O G F T M s N O G ( b o s

7 A

s n t s o 4 a o ,

172,086 Sonangol P&P China Sonangol 25% AJOCO 20% ENI 12% SOMOIL 10% NAFTGAS 4% INA NAFTA 4% a u M r d r m 2 r o c o E . w g

t a r o

p a e L l r 112,500 Sonangol P&P 20% CUPET 5% s c b s o

. a i g 7 l i t r E o a a g a c

i 6 r o f 1 a . ( B o w n 5 d w

1 195,637,129 a 0 i w w

/ F

5 s e c

0 2

l C

m e e s t L n 2 i P y e

g g a n l t a y M N a a e n a n r i OPERATED r r e N O M e f B a e T r

v c Prdn EQUITY Prdn GROSS Prdn u e r a a

h b

n e T e

e o

SOMOIL 325,542 653,166 5,899,910 . F P i r

) o t t t h n

c i V a t t

l J u

FALCON NIL 461,634 9,232,691 Block 15/06 A e e e p s d c n N s e

a o

ACREP NIL 145,146 967,646 Block 4/05 e S r O i D

w h D T

p P

o t P n

POLIEDRO NIL 19,295 212,038 Block 2/05 O t s M . 7 n O

r 1 i o ) s O R t i

1 B o 4 t t E NIL 19,295 212,038 Block 2/05 o B N e f 8 0 T 0

r c / u 0 1 n & O 2 0 A

C D G 0 h Y T L 3 L - 8 d y s P , D P FORCE PETROLEUM NIL 22,500 112,500 0

P O , 7 a 3 o 4

P M N

O n r E 4 Cabinda R 1 , T 2 O B S e N O M p 5 ( E 0 4 I

/ e 0 B

325,542 1,321,036 16,636,823 2 s

C 0 0 b l L

i 0 5 D r , d V

7 M P p s a 5 ,

a N O A 1 6 h d d e w e

T g t y s a a s a r r

Continued from page 13 o e e r C

TransForcados System (TFS) Is Back Up M

v p c V a n o J

i w

n V e S A s P

equity in NDWestern. November 2016, nine months after J s o

N i

& s

t O E s d r o

c Seplat, on its own, reported that the costs of the original blast, but it was n T R t

g i e o

. u r s C ) d o y

c d D D r t t o e

s e /

/ A 0 0 v c 2 . O s e

C C V 0 5 N e r s 7 L

The latest crude oil producer in Nigeria has was producing 8,500BOPD gross o J

P P 0 8

r a 1 s N , e , E ’

E g M N N h 0 3 4 h

e joined the cohort of companies pumping (Net to Elcrest: 3,825BOPD) from o V D N O T N 3 2 1

t e D J d M

R N v t P n i E

crude through the TFS. It is Excel E&P, and it Opuama-3, as of the first week of e t O o O D a n R c C T

e n N E 0 has resumed injecting into the system. Excel June 2017. It anticipates production o D r e

t N O N 2

. e P

S h A d / . s t l C t 2 .

9 l

, O is producing about 800BOPD from its dual start-up from Opuama-1, which will C 7 a n E e d 2 t a d r 1 r 5 B

F 1 D n c P e 2 N 2 e e 4 i u 2

9 g 0 v

e The average June 2017 production of the P / stringed Eremor marginal field, located at pump up the volume, in due course. t L 4 d 1

j 4 t n N 2

m o r e C i

N P o 3 L r L u

r r E a g r , y

D U N Nigerian independents will be published in O p e o r e . the current mouth of the Niger Delta basin. SEPLAT was putting over 74,000BOPD into s a

p 1 r M w I M t P

a h b s e f 1 a e m I P O N

i c a N T O a ( M b i a

the next issue (July 2017 edition) of this :

The outage of the TFS-twice in 16 months the system; Shoreline was injecting over r s c 2 &

d M 1 a u n E m e

4 o a A S w

magazine, which will be distributed at the t with dynamite- was a symbolic event that 30,000BOPD into the line; NDWestern was k

s / n 1 n

t i 6

M Y e a i y g h f L

n y 7

r , R

c G Society of Petroleum Engineers (Nigerian T n e l affronted the Nigerian state, suggesting it pumping over 15,000BOPD into it and g a i n i 3 a e

l i e M . , R , h i y s h e s u R h h s d M s T E 1 g r O t

t H h

w a Council) at the Eko Hotel, between July 31 r e

could not secure the country's petroleum Neconde was producing more than

b e N . n s , d N g n h e i n e w p e i

e )

l M E

D A

n y e

n t , F S h e l n i n 0

and August 2, 2017. P r l infrastructure. The facility came back up in 30,000BOPD, all in early June 2017. U t b p E F g D n e

d e 0 E o e i 1 e , E i r O o T L l F c h d e t d ( 0

L p 4 a e l N B l O t t w c n A

r i e 2

b i 1 o e S . 0

, O

m T

l u R s n h a r s 0 P n

h S e e y e

D L R e d r

g T E l t e t F s 0 i

e E c l b T v

Wentworth Raises $5MM For Appraisal of Tembo Discovery s o , a s . - i

u a e M r R n E r e a n y m M 8 7 e e i n o

e b

p C

r S a E P O E d y d h s l

o But the Oslo listed explorer still keen on a farminee s L l N s i r n s i 0 a o t n E o r 0 e e t 2 o c / a

w v e 4 d e

. r

u s C e E e entworth Resources says it has provides it with working capital flexibility new and existing investors for a total of a n b T L 7 6 s

t c d D w 1 1 r s r o e o u M P r

a r a o 0 0 o r r a i s e d a p p r o x i m a t e l y ahead of the potential step up of gas demand 16,953,496 new Common Shares of no par h P d N O G 2 p p c t F h 2 h

7 e s

$5.1Million to advance an in Tanzania. value (the "Placement Shares") at a price of l p E 0 l i o n i 2 h

o o w i W s appraisal programme onshore Mozambique. Tembo-1 well was drilled to a total depth of 2 5 p e n c e p e r P l a c e m e n t S h a r e y h

l t

a D i n e

d N r l r o

The main objective of the fund raising is the 4,553 metres into rocks of Upper Jurassic (approximately $0.32, 2.73 NOK), raising M n i d p

r o A

t N a f

n o

e E m

N i

s O l d

Tembo structure, in which Wentworth made age. Natural gas and some condensate was approximately $5.5Million (GBP 4.2Million, u h l o

7 C r & I T i X t a

L e

D d c R

l 1 L e I t

L O P w A i o A l C h 0 n

e 5 a discovery with the Tembo-1 in 2016. recovered by modular formation dynamics NOK 46.3Million) in aggregate before V d r A L B t l P a L O t - a O L 2 i

D I r D

r T I n p s E p N e

k P B i O E n L j p a a w d t r i P D I O G

H O a

The money was raised through private testing ('MDT') confirming the petro physical expenses. The net proceeds of the Private 0

H A E

m G p p A n a t r o K

6 y 0 O d M C T A

S A N S P o d l a l e -

n h l E , p

h n

0 K w - c t t a n

, L

e t

d e

placement, which the company says was analysis of 11 meters of pay in sands of Placement are estimated to amount to

e i p r n e , e

E i l i , n A e t j . a s 2 a . a f s a d a a L

t e

m e

n w a i d f 7 I A l a f

e e r

g l

d n s l f e 0 oversubscribed. Cretaceous age. approximately $5.1Million (GBP 3.9Million, p R

d w e r h i L

l 1 o y i o p

G g

e n l

e t n

u 1

i n i , i e u p 0 U u t f o U t y n

f D d u o r 3

s c a i l

d R h 2 N o n q & F

h n l The company says that the fundraising New Common Shares have been NOK 43.2Million). r L b

P u p o e d

, l a

o u T l

e S e r i e e l P i h s i

s h r V M r O c s g d

r i

S R i a

c i t c s n

E e m

P O L

o O n B m i supports its ongoing Tembo appraisal successfully conditionally placed, or u d r d

E e t a t O

n I A a

i n l

s I

f d d S r h 6 r p e

i i .

0 a o p

b C

l e P a

E - t e

f h t .

G O d e

e t g o a L p s o h e f 0 l

s r

e C

s h l r I e e o d e c c K n G

programme in Mozambique and also subscription agreements entered into, with o l s i M a h c m d m p j p 0

t D o l u

e i

n i

a G

a e t o t t

U E d e

, e n u F a f O a e

a u

t e h i f A

e v n o h g o t N t

i L l s L n

t e i 0

S r I r

e p d i o i t K e w l i i n

I v

t f t e o f e

i h e g m s n e . t s r e d 1 e i A i x

e o j d . w E r o g i s o u p i t i E

o l t t a

O f h a O i d r c p o

h r

r t l g e e t L O

p w

s n

, n r 8

o a A d t s r y d

s o

n t s c t K H r u

O l o / x - e e p

n u 4 E a s

e e e c a t e 1 s p s s l

n p o e n t c i e

e a

E f N f -

i T s e r Y o e s p 3 n h

h d t t I G e

c i n d u u e l L p o t u B d h e M t e t a l o m m d

l p r r l t

1 l

j m f l

o 2 v t n n n

r c s n h o . . G p

e t

h a e t n

c i 0 o o e a a U e 1 c u r t W t t e

p e n r A m m e e a s i a a i u

x s

f f f

y c n e s i g

a N s ' u 1

f c c t f l L i o

A L o a a F d o

P m e s I e w n e s i

a i o e I l w a a e

f M L l r

i 3 r

r m m o

e e j r s

n L

t I I . c v r , e o

o t f t j j u a , s M M r a p t e u e i l d c g O g s

i h h p p h t M t & r e b h W j L T l l e p a c c s e O

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c e E o u o e f e r 4 6 s n b i O a o u h h h h h o o e l F c a n p t t t d t e $ d $ s g G t o f F a p t t t West Africa Lags Behind In Response to the Oil Price Downturn continue its decline. By Henrik Poulsen and Bimbola Kolawole, Rystad Energy Summary As shown, the West African E&P industry he fall in crude oil price has foisted is handling the current uncertain market has room for improvement on how they run T a significant challenge on the E&P conditions will greatly impact future their daily operations. What has been T

H industry. p e r f o r m a n c e . D e c i s i o n s a n d achieved in other parts of the world should H

G T achievements completed in recent years be possible, to a certain degree, for West G Things have eased since January 2016, I will influence how the different regions Africa to copy. Efficiency gains will often I

S but crude oil price has stabilized at a S much lower level than expected. In order will be able to attract and develop the require a collaborative and open N N

I to survive and deliver healthy economic industry into the future. As we have seen, environment between the E&P and OFS I results, companies have initiated a string has the efficiency in operations and industry together with the authorities. We of methods to improving operations. The investment levels developed significantly assume there is room for improvement for their operating costs. hydrocarbon industry is about to develop a different from region to region? The issues at least another 10% on the operating costs Investments (Capex) new standard on how we collectively look discussed can also help us to understand in West Africa. The oil price crash has of course had a great upon cost levels, development concepts and how robust the future production in the Low oil prices have made the industry even impact on the investment level. Previous efficiency. different regions will be if low oil prices more cautious to invest in high politically at- projects with a robust economy at By comparing operating cost levels, remain for a longer period. Rystad Energy risk and unstable countries and there is no US$100/Bbl are not sustainable at investments and robustness of future believes the prices to be positioned upwards doubt that some regions are hurt more than US$50/Bbl. Many projects have been production to low prices in four different of US$60/Bbl when we reach the 2020's. others by this fact. It is important to deferred, re-designed or simply abandoned, regions, we at Rystad have discerned a However, oil prices have never been understand that doing investments, which (London), USA (New York & Houston), Russia Author: Bimbola Kolawole, Business which has caused a dramatic drop in pattern of how the industry is evolving precisely predictable. Therefore we have will pay off the next two or three decades, (Moscow), Brazil (Rio de Janeiro), as well as Development Manager Africa, Rystad investment levels since 2014. Regions that globally. We have scrutinized how operating looked at how much of a portion of future requires a stable and predictable Singapore and Dubai. Energy have been able to re-design their projects costs per barrel and investments (Capex) production (in 2020 and in 2025) will need a investment climate. Author: Henrik Poulsen, SVP Government Bim (Bimbola) is Business Development have seen a lower drop in investment levels. have changed since the oil price crash in four breakeven price higher than US$60/Bbl. In a high-risk environment with low oil Relations, Rystad Energy Manager –Africa at Rystad Energy. She is Among the peers, the drop have been most regions, including West Africa, South East Production with breakeven prices higher prices, we would expect that West Africa is Henrik holds an MSc. in Petroleum Geology also responsible for account management, dramatic in West Africa and South East Asia, than US$60/Bbl might be at risk, if the world one of the regions in the world that would Asia, South America and Western Europe. from the Norwegian University of Science training and support for clients in the with an almost 60% decline in investments remains as oversupplied as it is today. be harmed most – close to 60% drop in We have also looked at the impact on how and Technology and is currently Senior Vice Region. Her area of expertise includes from 2014 to 2017. The drop in Western Among the four regions, West Africa has the investments the last 3 years. This is partly the latter changes have influenced the President - Government Relations at Rystad business strategy, general management, Europe and South America has respectively breakeven price distribution of the second highest portion of vulnerable due increasing maturity, deeper water, more been 45 and 30%. South America stands out Energy. He has more than 25 years of business development, training and support production. In other words, how robust production if prices remain lower than complex reservoirs, but also difficult as positive in this respect due to the experience in the E&P and oilfield service as well as project coordination. Previously, future production will effect low oil prices. A US$60/Bbl. Only South East Asia has a higher political conditions in some countries. We development of its many great discoveries industry and has worked as a consultant for Bim worked at IHS Energy where she was region is a coarse geographical entity and portion of production at risk. 13% of West would encourage the industry, together done some years before the oil price crash. 15 years in the E&P industry, assessing responsible for managing selected clients may not reflect differences at a country Africa's predicted production in 2020 is at with the authorities, to uncover simpler Future production will be harmed most geological and economic uncertainties. across the Oil & Gas space value chain in the level. However, a region comprises so many risk, while this increases to 27% in 2025. This development concepts instead of deferring where projects have been deferred or Since 2005, Henrik has held several senior EMEA region. She holds a BSc. in Economics projects and fields that the statistics shows the importance of constant work on or abandoning projects to make future abandoned, while re-design will have less management positions at different from Ilorin University, MSc. in Energy becomes significant and reliable. cost reductions and efficiency gains in order production more robust to accommodate impact on future production, apart from the companies such as Roxar (Emerson), Finance from Dundee University and an Has the industry been able to improve their to remain competitive and economically l o we r p r i c e s . We s e e ro o m fo r fact that redesign also cause a delay, but Schlumberger and Rystad Energy. MBA from Leicester University. efficiency - Operating expenses per barrel sound. However, we still forecast a small improvements on the latter. only by some few years. (Opex/Bbl) increase in oil (Crude & Condensate) Lower operating costs per barrel and Future robustness to low oil prices Opex/Bbl is a measurement on how cost production from West Africa from 2020 to increased focus on improved and more There is no doubt that how the E&P industry efficient the actual oil production is. 2025, while South East Asia is expected to efficient development concepts may arrest Until 2014, such expenses were by far our prognosis, that West Africa may face a the highest in Western Europe (among doubling of their production at risk with oil the four regions compared). The price prices lower than 60 USD/bbl. downturn has made operators in Whatever the future oil price will be it is Western Europe work more efficiently, evident that both Governments and the and the cost level has lowered by more industry would profit by working smarter than 30% to come down to the same and more cost efficient in a joint level as in the three other regions in collaborative environment. this review. In the same period, South About Rystad Energy America lowered their Opex/Bbl by Rystad Energy is an independent oil and gas about 20%, while West Africa and consulting services and business South East Asia have only been able to intelligence data firm offering global lower their Opex/Bbl by 10% each. databases, strategy consulting and South East Asia has a declining research products. production, which explains much of Rystad Energy's headquarters are located the low reduction, while West Africa is in Oslo, Norway. Further presence has been falling behind in terms of reducing established in Norway (Stavanger), the UK

16 JUNE 2017 A F R I C A O IL + G AS R E P O R T AFRICA OIL + GAS REPORT JUNE 2017 17 West Africa Lags Behind In Response to the Oil Price Downturn continue its decline. By Henrik Poulsen and Bimbola Kolawole, Rystad Energy Summary As shown, the West African E&P industry he fall in crude oil price has foisted is handling the current uncertain market has room for improvement on how they run T a significant challenge on the E&P conditions will greatly impact future their daily operations. What has been T

H industry. p e r f o r m a n c e . D e c i s i o n s a n d achieved in other parts of the world should H

S but crude oil price has stabilized at a S much lower level than expected. In order will be able to attract and develop the require a collaborative and open N N

16 JUNE 2017 A F RI C A O IL + G AS R E P O R T AFRICA OIL + GAS REPORT JUNE 2017 17 Vol 18, No 4, June 2017 JUNE 2017 UPDATE ©Copyright 2017 www.africaoilgasreport.com AFRICA OIL+GAS REPORT NIGERIA’S MARGINAL FIELDS: ACTIVITY report PLATFORM PETROLEUM/NEWCROSS WALTERSMITH/MORRIS PETROLEUM ENERGIA PETROLEUM Egbeoma Field INDEPENDENT ENERGY Ibigwe Field Ebendo Field Production: commenced: 2007 Ofa Field Production: commenced: 2008 Partner: Oando May 2017 Production: 1,400BOPD. The Egbeoma Gas Processing Plant has finally Production unlikely to May 2017 Production: 3,483BOPD, due to the shut in of the TNP. Field Production commenced: been commissioned, producing Propane and LPG. Platform is unable to provide happen on this field. capacity is 7,000BOPD. Plans are going ahead to construct a 5,000BOPD 2009 the entire 30MMscf/d of gas required as input because of its own production Why? In 2009, Afren re- crude oil refinery, now scheduled for start-up in 1Q 2018. Waltersmith has May 2017 output: 2,000BOPD. constraints, so the volume of output is lower than optimal. entered Ofa-1 and upgraded its plans for a gas processing plant to developing a 300MW Energia is working up plans to conducted a Drill Stem Test gasfired power plant. optimise its gas processing and which failed to establish SAHARA ENERGY FIELDS transportation facility in order to commercial flow. In 2012, ALL GRACE ENERGY Tsekelewu Field deliver 15MMscf/d of dry natural Awarded in 2003, Sahara Energy has neither performed a Xenergi, a local early Ubima Field gas to the Escravos Lagos production facility provider, Technical/Financing Partner: Eland Oil &Gas re-entry, nor commenced new drilling on this field. The Pipeline System (ELPS). company has access to funding but doesn't consider this had the same experience. Production: Nil. Eland Oil and Gas says it plans to establish early asset a priority. production in Ubima in 2017, via low cost re-entry of Ubima-1, but it doesn't nail down the date. The Gbetiokun field (OML 40) is next in development plan, and Ubima development might have to wait until GUARANTEE PETROLEUM/OWENA sometime in 2018. Eland sources also say they don't need financial Ororo Field assistance from any company to fund the Ubima marginal field Financing Partner: Sirius Petroleum Sirius will be drilling Ororo-2, a step out from the Ororo-1 well, with COSL Power. The well had not been development project. Eland farmed into the field, held by All Grace spud as of June 12, 2017. Well management activities will be carried out Energy, and has put the field on the back burner for close to three by ADD Energy. Schlumberger will provide managed and integrated years. products and services. PILLAR OIL MILLENIUM OIL &GAS EXCEL E&P Umuseti/ Igbuku Field Oza Field Eremor Field Production commenced: Partners: Hardy Oil & Emerald Production commenced November 2016 2009 Production start- up unlikely until Excel E&P has resumed injecting crude into the Trans Forcados System (TFS). May 2017 output: June 30 2017. Most of the facility Production is about 700-900Barrels of Oil Per Day. It actually started in November 2016, 1,900BOPD. Both the ENI required are on ground. Early but the system was shut down a few days after the commencement. Now the TFS is operated evacuation route and Production Facility (EPF) and tie-in at back up. Excel E&P has enlisted the services of Salvic Petroleum to operate its EPF and the Shell operated alternative, SPDC's Isimiri flowstation, Pipelaying of other facilities. Trans Forcados, are now online. 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 Integrated oil, gas and refined product operation. May 2017 production: 6,788BOPD. Plans to increase the Ogbele Refinery's existing capacity from 1,000 barrels of crude per day to 11,000 barrels per day. ASSOCIATED OIL & GAS/DANSAKI Tom Shot Bank Field Technical/Financing Partner: Midway Resources BAYELSA OIL COMPANY LIMITED Renewed field operations planned to commence within Atala Field Q2, 2017, so time is running out. The marginal field Technical and Funding Partner: Century E&P EURAFIC ENERGY PRIME licence with respect to the TSB Field was issued under Production commenced: Not yet at the time Dawes Island Field ENERGY/SUFFOLK Production: Not yet. Eurafric encountered over 90 feet the 1st Marginal Field Round in 2003 and later extended of Press Asaramatoru Field. Net Oil Sand when it re-entered Dawes Island 1 with the until 14th March, 2015. It has now been further An Early Production Facility and other ancillary Production Henan/Tansaniola owned Omega rig. But the company extended for a period of 24 months with effect from 1st, units had been installed on the field by end of May commenced: 2013. has to pay a $500,000 fee to renew the licence. May 2016. This company may need a funding 2017. The three partners: Bayelsa Oil Company, Average for May 2017 was partner. Century E&P and Eunisell Solutions were gearing 1,200BOPD. Crude oil for field commissioning on June 20, 2017 as of the produced via an Extended GREEN ENERGY NETWORK E&P time of our going to Press. 2,000 BOPD from two Well Test (EWT) Licence is Otakikpo Field Qua Ibo Field reservoirs, will be delivered into barges and ferried evacuated in a barge and Technical/Financing Partner: LEKOIL Partner: Oando into an FSO for export. Offtaker is Monaco. The delivered at Amni Production commenced: February 2017. Production commenced: February 2015 cash flow from the production is expected to fund Petroleum's Ima facility May 2017 output: 5,500BOPD. Payment has been received for May 2017 Production: 2,300BOPD. Sinopec has completed acquisition of 56 the drilling of Atala-2. offshore. the first cargo lifted from this field, announced on 10 May 2017. sq km of three dimensional (3D) seismic data. New data is expected to “The high quality Otakikpo crude blend led to the partners earning highgrade the upside prospects adjacent the producing field. The partners a small premium to Brent Crude pricing before marketing and plan to raise funds internationally through Finance Brokers, for MOBIL SHELL TOTAL NPDC PAN OCEAN related costs over the given period”, Lekoil says. drilling new wells based on the seismic data, to increase production. CHEVRON AGIP ADDAX SEPLAT AFRICA OIL+ GASREPOR T

A P R I L / M A Y 2 0 1 7 19 Vol 18, No 4, June 2017 JUNE 2017 UPDATE ©Copyright 2017 www.africaoilgasreport.com AFRICA OIL+GAS REPORT NIGERIA’S MARGINAL FIELDS: ACTIVITY report PLATFORM PETROLEUM/NEWCROSS WALTERSMITH/MORRIS PETROLEUM ENERGIA PETROLEUM Egbeoma Field INDEPENDENT ENERGY Ibigwe Field Ebendo Field Production: commenced: 2007 Ofa Field Production: commenced: 2008 Partner: Oando May 2017 Production: 1,400BOPD. The Egbeoma Gas Processing Plant has finally Production unlikely to May 2017 Production: 3,483BOPD, due to the shut in of the TNP. Field Production commenced: been commissioned, producing Propane and LPG. Platform is unable to provide happen on this field. capacity is 7,000BOPD. Plans are going ahead to construct a 5,000BOPD 2009 the entire 30MMscf/d of gas required as input because of its own production Why? In 2009, Afren re- crude oil refinery, now scheduled for start-up in 1Q 2018. Waltersmith has May 2017 output: 2,000BOPD. constraints, so the volume of output is lower than optimal. entered Ofa-1 and upgraded its plans for a gas processing plant to developing a 300MW Energia is working up plans to conducted a Drill Stem Test gasfired power plant. optimise its gas processing and which failed to establish SAHARA ENERGY FIELDS transportation facility in order to commercial flow. In 2012, ALL GRACE ENERGY Tsekelewu Field deliver 15MMscf/d of dry natural Awarded in 2003, Sahara Energy has neither performed a Xenergi, a local early Ubima Field gas to the Escravos Lagos production facility provider, Technical/Financing Partner: Eland Oil &Gas re-entry, nor commenced new drilling on this field. The Pipeline System (ELPS). company has access to funding but doesn't consider this had the same experience. Production: Nil. Eland Oil and Gas says it plans to establish early asset a priority. production in Ubima in 2017, via low cost re-entry of Ubima-1, but it doesn't nail down the date. The Gbetiokun field (OML 40) is next in development plan, and Ubima development might have to wait until GUARANTEE PETROLEUM/OWENA sometime in 2018. Eland sources also say they don't need financial Ororo Field assistance from any company to fund the Ubima marginal field Financing Partner: Sirius Petroleum Sirius will be drilling Ororo-2, a step out from the Ororo-1 well, with COSL Power. The well had not been development project. Eland farmed into the field, held by All Grace spud as of June 12, 2017. Well management activities will be carried out Energy, and has put the field on the back burner for close to three by ADD Energy. Schlumberger will provide managed and integrated years. products and services. PILLAR OIL MILLENIUM OIL &GAS EXCEL E&P Umuseti/ Igbuku Field Oza Field Eremor Field Production commenced: Partners: Hardy Oil & Emerald Production commenced November 2016 2009 Production start- up unlikely until Excel E&P has resumed injecting crude into the Trans Forcados System (TFS). May 2017 output: June 30 2017. Most of the facility Production is about 700-900Barrels of Oil Per Day. It actually started in November 2016, 1,900BOPD. Both the ENI required are on ground. Early but the system was shut down a few days after the commencement. Now the TFS is operated evacuation route and Production Facility (EPF) and tie-in at back up. Excel E&P has enlisted the services of Salvic Petroleum to operate its EPF and the Shell operated alternative, SPDC's Isimiri flowstation, Pipelaying of other facilities. Trans Forcados, are now online. 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 Integrated oil, gas and refined product operation. May 2017 production: 6,788BOPD. Plans to increase the Ogbele Refinery's existing capacity from 1,000 barrels of crude per day to 11,000 barrels per day. ASSOCIATED OIL & GAS/DANSAKI Tom Shot Bank Field Technical/Financing Partner: Midway Resources BAYELSA OIL COMPANY LIMITED Renewed field operations planned to commence within Atala Field Q2, 2017, so time is running out. The marginal field Technical and Funding Partner: Century E&P EURAFIC ENERGY PRIME licence with respect to the TSB Field was issued under Production commenced: Not yet at the time Dawes Island Field ENERGY/SUFFOLK Production: Not yet. Eurafric encountered over 90 feet the 1st Marginal Field Round in 2003 and later extended of Press Asaramatoru Field. Net Oil Sand when it re-entered Dawes Island 1 with the until 14th March, 2015. It has now been further An Early Production Facility and other ancillary Production Henan/Tansaniola owned Omega rig. But the company extended for a period of 24 months with effect from 1st, units had been installed on the field by end of May commenced: 2013. has to pay a $500,000 fee to renew the licence. May 2016. This company may need a funding 2017. The three partners: Bayelsa Oil Company, Average for May 2017 was partner. Century E&P and Eunisell Solutions were gearing 1,200BOPD. Crude oil for field commissioning on June 20, 2017 as of the produced via an Extended GREEN ENERGY NETWORK E&P time of our going to Press. 2,000 BOPD from two Well Test (EWT) Licence is Otakikpo Field Qua Ibo Field reservoirs, will be delivered into barges and ferried evacuated in a barge and Technical/Financing Partner: LEKOIL Partner: Oando into an FSO for export. Offtaker is Monaco. The delivered at Amni Production commenced: February 2017. Production commenced: February 2015 cash flow from the production is expected to fund Petroleum's Ima facility May 2017 output: 5,500BOPD. Payment has been received for May 2017 Production: 2,300BOPD. Sinopec has completed acquisition of 56 the drilling of Atala-2. offshore. the first cargo lifted from this field, announced on 10 May 2017. sq km of three dimensional (3D) seismic data. New data is expected to “The high quality Otakikpo crude blend led to the partners earning highgrade the upside prospects adjacent the producing field. The partners a small premium to Brent Crude pricing before marketing and plan to raise funds internationally through Finance Brokers, for MOBIL SHELL TOTAL NPDC PAN OCEAN related costs over the given period”, Lekoil says. drilling new wells based on the seismic data, to increase production. CHEVRON AGIP ADDAX SEPLAT AFRICA OIL+ GASREPOR T

A P R I L / M A Y 2 0 1 7 19 Ben Asante Takes Charge of Ghana Gas E

L en K. D. Asante is the Caretaker rich Western Region. He has worked for C h e m i c a l

P Chief Executive Officer (CEO) of the m a j o r O p e r a t i n g C o m p a n i e s Engineering Ghana National Gas Company (Nova/TransCanada Pipelines and Enron) as f r o m O B (Ghana Gas). well as Engineering Consulting companies I m p e r i a l E His appointment follows the exit of the (Jacobs Engineering and Gulf Interstate C o l l e g e , P

former CEO of the company, George Sipa- Engineering) in Canada and the US in various London/Uni

M Adjah Yankey. positions up Director of Engineering and versity of Asante assumes his new role as Acting-CEO Operations. He has also provided consulting Calgary. Dr U with more than 25 years global experience in services to the World Bank and Asian Asante is a E the Oil and Gas industry. He is a Lecturer at Development Bank (ADB). b o a r d L the School of Engineering, Kwame Nkrumah He developed the Gas Infrastructure Master c e r t i f i e d O University of Science and Technology Plan for Ghana, working with the Energy Professional R (KNUST) and a former Engineering and Commission. He has consulted for the Ghana Engineer. He has 15 technical papers and T Technical Director of Ghana's premier Gas National Petroleum Corporation GNPC. He made over 80 technical presentations E Infrastructure project, which led to the holds a BSc in Chemical Engineering (KNUST, around the world on il/Gas Infrastructure P Atuabo Gas Processing Plant and allied gas Ghana) and MSc in Chemical Engineering Design and Operations. infrastructure in the country's petroleum (University of Calgary, Canada) and a PhD in Greger Is New Head of OMV's Investor Relations ffective June 1, 2017, Florian in Ludwigshafen, Germany, where he initially held various positions Greger (47) became Head of in the plastics sector. EInvestor Relations for the OMV In 2009, Florian Greger became part of the BASF Investor Relations Group. He succeeds Magdalena Moll, team, where he had various roles including Deputy Head of Investor who has managed the department in Relations. He moved to the U.S. in 2013, where he was responsible addition to her function as Head of for the North America region as Director of Investor Relations for Corporate Affairs OMV. Florian Greger BASF Corporation in New Jersey. At the end of 2015, he took over the will report to Magdalena Moll. business management Diols & Derivatives North America in his role Florian Greger can look back on a career in as Director. the chemical industry stretching back Florian Greger studied Chemistry in Heidelberg, Germany, after almost 20 years: In 1999, he joined BASF which he completed an MBA in Belgium and Spain. PGS Chief to Become Chairman of Statoil on Erik Reinhardsen has been elected as of the board of one of Europe's new chair of Statoil's board of directors. largest E&P companies from JØystein Løseth, who was chairman for September 1, 2017, until the the last two years, had informed the ordinary election of shareholder- nomination committee that he did not wish elected members to the board of to stand for re-election in 2017, as he wants directors in 2018. to return to a career seeking more Meanwhile, Roy Franklin will retain operational positions. his position as deputy chair and will Løseth leaves the board on July 1, 2017. function as the acting chair of the Oystein Loseth Jon Reinhardsen Reinhardsen will retire from the position of board in an interim period from Rebekka Glasser Herlofsen, Maria Johanna Chief Executive Officer of Petroleum Geo- July 1, 2017, when Løseth leaves the board of Oudeman and Jeroen van der Veer were all Services (PGS), a job he has held for nine directors, until and including August 31, re-elected members of the board of years (since 2008), and take on chairmanship 2017. Wenche Agerup, Bjørn Tore Godal, directors. Ayoade Is New Boss At Erin Headquarters rin Energy has Ayoade has more than 20 years' of University from February 2008 to July 2016; named Femi experience in the oil and gas industry and Ahmed, meanwhile, “has an extensive EAyoade as CEO extensive experience on exploration and history of government service on behalf of and new Director of production operations offshore Nigeria. the Republic of Nigeria and has served as the the Corporation. He From 2008 to 2013, he was a Senior Technical Secretary to the Government of the r e p l a c e s S e g u n Executive at CAMAC Petroleum Limited and Federation of Nigeria, a role that involved O m i d e l e , w h o Allied Energy Plc Nigeria and from 2006 to serving as Secretary to all Councils and resigned effective 2008, he was a Senior Drilling Engineer at bodies chaired by the President of the February 22, 2017. Nigeria Agip Exploration (a subsidiary of Republic, such as the Federal Executive Up until Mid-May 2017, when Ayoade took ENI). Council and the Council of State. Mr. Ahmed over, Jean-Michel Malek, Senior Vice New non executive directors and members served as the Minister of Defense and as the President, General Counsel, and Secretary, of the board who joined the board in Mid- Head of Civil Service. served as Interim Chief Executive Officer, May 2017 are John Rudley, an American and while the Board conducted a search for a Mahmud Yayale Ahmed, a Nigerian. Rudley permanent replacement. served as the President of Texas Southern

20 JUNE 2017 A F R I C A O IL + G AS R E P O R T Ben Asante Takes Charge of Ghana Gas E

L en K. D. Asante is the Caretaker rich Western Region. He has worked for C h e m i c a l

former CEO of the company, George Sipa- Engineering) in Canada and the US in various London/Uni

20 JUNE 2017 A F RI C A O IL + G AS R E P O R T Ophir In The Seventh “Successive” Dry Hole Wildcat In The African Frontier A COTE D'IVOIRE Is this poor geosciences evaluation, reckless exploration strategy, or simple lucklessness? R

Vol 18, No 4, June 2017 A phir announced, in late May 2017, natural gas pool it was looking for Tende-1 targeting a number of turbidite channel ©Copyright 2017, In Association with H that the Ayame-1X exploration well well in in East Pande licence offshore complexes of Santonian and Turonian age. www.africaoilgasreport.com AFRICA OIL+GAS REPORT A in Block 513, Cote D'Ivoire, had Tanzania. And it failed again in Block 7, in the “The prospective reservoir intervals were report

S O reached total depth with nothing close to same country, where the Mkuki-1 well was encountered as prognosed. Oil shows were

B significant hydrocarbon encountered. drilled. recorded in the target reservoirs, but It is the seventh wildcat that the London There are, of course, geologic reasons as well significant hydrocarbons were not U NIGERIA RIG ACTIVITY AS OF MAY 2017 listed company will drill as a duster, in sub- as commercial justifications given for the encountered”. Ophir didn't provide much S

Saharan Africa, since January 2014. company's three dry holes in Gabon. There details about likely progress on the asset, H Apart from its gas discovery in Equatorial were no explanations proffered, however, going by the poor results. “Full analysis and Operator /RIG RIG Owner Current Location Operation Terrain C Guinea, made since 2008 and which has for the four dry holes in Tanzania and Cote interpretation of the data is ongoing”, it

T been commercially appraised, Ophir has D'Ivoire. simply reported. “The well will be plugged

A never, as an operator, been lucky with any While the targeted reservoirs in Padouk and abandoned as a dry hole”. Ophir farmed P new field wildcat anywhere in subsaharan Deep-1 didn't work out, “minor shows were into 45% operated interest in Block 513 only CONOIL

L Africa, at least since 2014. interpreted at shallower intervals providing 18 months ago (December 2015) and won

I Majestic Depthwize Ango Drilling Swamp The wildcats in which Ophir has succeeded, evidence of a working hydrocarbon system in the Ivorien government approval only in

O outside Equatorial Guinea, in the last three the offshore North Gabon Basin”, Ophir March 2016. The company made a years, have been wells it has not operated. claimed. “The key pre-drill risk was that of contribution of $16.9 million towards (lease The discoveries off Tanzania have been seal and trap integrity”, the company argues. holder) African Petroleum's back costs in CHEVRON NIG (SHELF) drilled by BG (now a part of Shell), in “The lack of the anticipated thin salt drape relation to the block. The rush to drill fits the acreages in which Ophir has been a 40% non- over this high relief prospect and the lack of company's pattern of operations elsewhere OES Respect Oando Energy Resources Gbokoda Drilling Swamp operating partner. sealing shales within the targeted reservoirs in the region, especially in Gabon. Trident 8 Shelf Drilling Sonam Drilling Shallow Ophir failed to encounter hydrocarbons in all appear to be a cause of the prospect's But Ophir was not always this unlucky as an six wells it drilled in 2014. In the Mlinzi Mbali- failure”. In Affanga Deep-1, “cuttings have explorer in Africa. Two years after it entered Water 1 well offshore Tanzania, the Cretaceous confirmed the presence of a Cenomanian oil Equatorial Guinea, it began work targets were intersected and were prone source rock which may have positive programme on the Block in 2008 with three interpreted to be water bearing. In Padouk implications for the prospectivity of the exploration wells being drilled resulting in Deep-1, offshore Gabon, “thicker than wider Ogooué Delta outboard play and for the Fortuna and Lykos discoveries. Three SEEPCO expected, good quality Gamba and the Deepwater play to the west of this dimensional (3D) seismic was acquired and Bogel Durga 1 British Oil&Gas Expl Agu Drilling Land Coniquet/Dentale reservoir sands were location”.. interpreted prior to a second drilling encountered”, Ophir said, but there was no Ophir ensured that costs of drilling Padouck campaign in 2012 with the Tonel discovery Bogel Durga 2 British Oil&Gas Expl Okwuibome Well Activation Land hydrocarbon. In Affanga Deep, also in Deep and Okala had largely been carried by and appraisal wells on Fortuna and Viscata. It Gabon, there were only oil shows, just as Petrobras and OMV, and the cost of drilling is these discoveries that form the basis of the Bogel Durga 3 British Oil&Gas Expl Drilling Land there were no significant hydrocarbon Affanga Deep have been partially carried by Fortuna FLNG development project, which is shows in the target reservoirs in Okala-1, in OMV. planned to deliver 2.5MMTPA of gas from Bogel Durga 4 British Oil&Gas Expl Drilling Land Mbeli Block, also in Gabon. The latest dry hole, Ayame-1, was drilled to 2020. Bogel Durga 5 British Oil&Gas Expl Okwuibome Drilling Land Ophir failed to find the commercial sized 5,394 metres True Vertical Depth Sub Sea, Bogel Durga 6 British Oil&Gas Expl Okwuibome Casing Land Anadarko Is Encouraged By the Promise of Paon Field Bogel Durga 7 British Oil&Gas Expl Ameshi Drilling Land nadarko's appraisal of the main Paon drilled at the Paon-3AR sidetrack and well-developed sands and found structure and exploration of its encountered approximately 120 net feet of approximately 15 feet of net oil pay on water. Asatellites have been showing some oil pay. The Pelican-1X well in CI-527 encountered SPDC promise. The American independent Following the appraisal drilling, Anadarko approximately 70 feet of net oil pay in two continued appraisal of the field, in 2016 with completed a successful drillstem and separate intervals. Anadarko operates. CI- Hilong - 19 Hilong Oil Service Kolo creek Drilling Land the Paon-5A horizontal well, its first interference testing programme. 103, with a 65% working interest, and CI-527, horizontal deepwater well in the field, which, The company then stepped outside the main CI-528, and CI-529, each with a 90% working encountered nearly 100 net feet of oil pay, structure and drilled two exploratory wells to interest. Appraisal At Paon appraisal. successfully appraising the discovery. The the southeast, targeting similar-aged sands TOTAL (DEEPWATER) field is located in the CI-103 in Cote D'Ivoire. along trend to the Paon discovery. The West Jupiter Seadrill Egina Drilling Deepwater A second deepwater horizontal well was Rossignol-1X well in CI-528 encountered

TOTAL (SHELF) NIGERIA SEEPCO's Rig Activity Surges, Despite the Downturn Baltic Shelf Drilling Ofon Drilling Offshore he Indian operator Sterling Oil two months, the company has drilled at least are moving to new locations. There's Exploration Energy Company three exploratory wells, mostly on its OML however a lot of hush on which fields these T(SEEPCO) Ltd, has rigs on Four 143, between late March and late April 2017. are. The company doesn't have a Nigerian YINKA FOLAWIYO PETROLEUM locations in the eastern Niger Delta, drilling The company owns all the four rigs currently among its top three executive personnel, ahead in spite of the downturn. In the last drilling and the three others (making seven) and the Indians are mum. Pacific Bora Pacific Drilling Aje-6 Drilling Offshore

22 JUNE 2017 A F R I C A O IL + G AS R E P O R T AFRICA OIL + GAS REPORT JUNE 2017 23 Ophir In The Seventh “Successive” Dry Hole Wildcat In The African Frontier A COTE D'IVOIRE Is this poor geosciences evaluation, reckless exploration strategy, or simple lucklessness? R

S O reached total depth with nothing close to same country, where the Mkuki-1 well was encountered as prognosed. Oil shows were

T been commercially appraised, Ophir has D'Ivoire. simply reported. “The well will be plugged

L Africa, at least since 2014. interpreted at shallower intervals providing 18 months ago (December 2015) and won

I Majestic Depthwize Ango Drilling Swamp The wildcats in which Ophir has succeeded, evidence of a working hydrocarbon system in the Ivorien government approval only in

www.africaoilgasreport.com report AFRICA OIL+GAS REPORT Nidoco West 4 and -5 Will Produce 315MMscf/d EGYPT A R

A he just completed Nidoco West-4 well Both wells will thus produce a total of Miocene reservoirs, below 3,200 metres A

R in the Nooros field in Egypt's Nile 315MMscf/d, which is also their optimum water depth, in record 50 days. It was the H A Delta, has been hooked up, producing rate for at least two years. tenth producer well to be hooked up in the ANGOLA RIG ACTIVITY MAY 2017 A

H T 175MMscf/d of gas and 1,400 barrels of The current output at the Nooros Field (as of Nooros Field. condensate. The rig was moved to Nidoco June 1, 2017) is 1.066Bcf/d. The addition of The company was drilling Nidoco West-5 as S A B

S West-5, which is expected to come on line Nidoco-West 5 will bring the production to of June 1, 2017 and is expected to come U before the end of July 7, with a lower 1.206Bcf/d. onstream by next July with an average H production rate: 140MMscf/d. Nidoco West-4 was drilled and completed in production rate of 140 MMscf/d. S

C H T ENI Completes Drilling of Wells In Zhor's Phase 1 C A

NI has completed drilling work on all eight wells of T P Egypt - Zohr Development Project

phase one of the Zohr gas field. The initial plan A L

was for six wells in the first phase. The Italian P I Operator/RIG RIG Owner Current Location Operation Terrain E explorer is currently focusing on finishing the first set of L O

associated infrastructure to process and export the gas ExxonMobil I

to the grid (See illustration). First gas from the field is West Polaris Seadrill Block 15 Kizomba satellite Production/Development Deepwater O expected to come on stream by December 2017 at West Eclipse Seadrill Block 15 Kizomba satellite Production Development Deepwater production rate of 1Billion standard cubic feet per day(1Bscf/d). Deutag KCA Deutag KizombaB Production/Development Deepwater The Zohr field was discovered in August 2015, about Deutag KCA Deutag KizombaA Production Deepwater 150km into the Mediterranean Sea from the coast, in the CHEVRON 3,752km² Shorouk Block, within the Egyptian Exclusive Economic Zone (EEZ), The discovery well, Zohr 1X NFW, TOTAL penetrated 630m (2,067ft) of hydrocarbon column. Skyros Ocean Rig Block 32 Deepwater At the time of the discovery, ENI owned a 100% stake of Ensco DS-8 Ensco Block 17 Deepwater the Shorouk license through IEOC Production, and the property is operated by Belayim Petroleum Company West Gemini Seadrill Block 17 Production (Petrobel), a joint venture between IEOC and Egyptian ENI General Petroleum Corporation (EGPC), However by the Poseidon Ocean Rig 35/11 Development/exploration Deepwater end of December 2016, ENI had sold 10% interest in the Shorouk concession to BP and a further 30% to Rosneft. Scaraboro 9 Saipem Block 15/06 Drilling/Completion Deepwater BP also has an option before the end of 2017 to buy a further 5% interest in the concession.

turbidite fan prospect, which is round. to be an aggressive explorer. Atlas involved in a range of activity from real O equivalent to the FAN-1 2014 Out of a total of 23 companies Petroleum, which is partnered with estate to renewable energy, is relatively oil discovery, in which was expressing interest in the licensing South Africa's Strategic Fuel Fund for a novice in oil and gas. Its only M

found 29m of net oil bearing round since the EG Ronda opened in Block EG-10, is well known for sitting on hydrocarbon asset is the Senegal R

reservoir in Cretaceous June 2016, 12 companies submitted assets without taking them any closer to Offshore Sud Shallow Block (SOSSB), on A

sandstones with no water official bids for what the Government drilling, let alone development. Given its which it has announced no work F contact encountered in a gross called 'the EG Ronda'. Of those, a total pedigree in EQ Guinea, where it sat on programme. One company that looks, N

oil bearing interval of more of seven companies advanced to have Blocks H and I until bigger independents from a distance, a little earnest is I than 500m. Distinct oils types negotiations, which were set to begin came in to farm in at least five years after Clontarf Energy, which won Block EG-18.

ranging from 28° API up to 41° June 19, 2017. it had been awarded the acreages. It has But up close, we find that all it has M airn Energy is stepping out of the West of SNE. It's a play with mean API indicated so far from a “They are companies dedicated and repeated this pattern all over Africa. It is elsewhere are positions in properties in R main SNE structure for a new field prospective resource of 110Million barrels, number of oil samples recovered to surface. willing to do exploration and that is the curious how it showed up on the list of which no programmes have been A FAN South is however a newfield wildcat and thing that needs to be done,” Mr. Obiang winners. Offshore Equator Plc, which carried out: a 3% royalty in Peruvian F

wildcat offshore Senegal. The with about 24% chance of success. C not an appraisal of FAN 1. Lima said at the Africa Oil and Power won Block EG-23 is unknown; Taleveras, Block 183 and 60% Ghana Tano 2A company is drilling FAN South prospect, It will be drilled with the Stena DrillMAX located in 2,175metres of water, 20km South drillship, which drilled SNE-6, Cairn's last conference in Cape Town, where he which picked up Block EG-07, is an oil Block.

www.africaoilgasreport.com report AFRICA OIL+GAS REPORT Nidoco West 4 and -5 Will Produce 315MMscf/d EGYPT A R

A he just completed Nidoco West-4 well Both wells will thus produce a total of Miocene reservoirs, below 3,200 metres A

C H T ENI Completes Drilling of Wells In Zhor's Phase 1 C A

NI has completed drilling work on all eight wells of T P Egypt - Zohr Development Project phase one of the Zohr gas field. The initial plan A L

was for six wells in the first phase. The Italian P I Operator/RIG RIG Owner Current Location Operation Terrain E explorer is currently focusing on finishing the first set of L O associated infrastructure to process and export the gas ExxonMobil I

SENEGAL Cairn Drills A FAN In The South Eq. Guinea Round: Questions Around The Selected Seven abriel Mbaga Obiang Lima, made the announcement rounding off trader trying to feel its way upstream. Its well in the country. M i n i s t e r o f M i n e s a n d the EG Ronda. oil trading business is not anywhere on FAN South has dual prospects; GHydrocarbons of Equatorial But there are questions around the the scale of Vitol or Glencore, who have an Upper Cretaceous stacked Guinea, announced a list of seven selected seven. been acquiring upstream acreages too, multi-layer channelized companies as having “advanced to Ophir Energy, which won Block EG-24 is but have the deep pockets to purchase turbidite fan prospect and a negotiations with government”, after the most likely to proceed to activate its upstream technical expertise. Elenilto T Lower Cretaceous base of slope contesting in the yearlong licencing proposed work programme. It is known won Block EG-09. It's an Israeli group U turbidite fan prospect, which is round. to be an aggressive explorer. Atlas involved in a range of activity from real O equivalent to the FAN-1 2014 Out of a total of 23 companies Petroleum, which is partnered with estate to renewable energy, is relatively oil discovery, in which was expressing interest in the licensing South Africa's Strategic Fuel Fund for a novice in oil and gas. Its only M found 29m of net oil bearing round since the EG Ronda opened in Block EG-10, is well known for sitting on hydrocarbon asset is the Senegal R reservoir in Cretaceous June 2016, 12 companies submitted assets without taking them any closer to Offshore Sud Shallow Block (SOSSB), on A sandstones with no water official bids for what the Government drilling, let alone development. Given its which it has announced no work F contact encountered in a gross called 'the EG Ronda'. Of those, a total pedigree in EQ Guinea, where it sat on programme. One company that looks, N oil bearing interval of more of seven companies advanced to have Blocks H and I until bigger independents from a distance, a little earnest is I than 500m. Distinct oils types negotiations, which were set to begin came in to farm in at least five years after Clontarf Energy, which won Block EG-18. ranging from 28° API up to 41° June 19, 2017. it had been awarded the acreages. It has But up close, we find that all it has M airn Energy is stepping out of the West of SNE. It's a play with mean API indicated so far from a “They are companies dedicated and repeated this pattern all over Africa. It is elsewhere are positions in properties in R main SNE structure for a new field prospective resource of 110Million barrels, number of oil samples recovered to surface. willing to do exploration and that is the curious how it showed up on the list of which no programmes have been A FAN South is however a newfield wildcat and thing that needs to be done,” Mr. Obiang winners. Offshore Equator Plc, which carried out: a 3% royalty in Peruvian F

24 JUNE 2017 A F RI C A O IL + G AS R E P O R T AFRICA OIL + GAS REPORT JUNE 2017 25 THOSE WHO ARE SELLING -A round up of some of the rich pickings in the petroleum rights sector

45 Marginal Fields Up For Grabs Nigeria: New Law Strips Minister of Power to Issue Acreage Licences T nce the new Petroleum Industry Federation of Nigeria, 2004. b) one non-executive Commissioner; T be Kachikwu, Minister of State for operators in 2017. The minister's Petroleum Industry Bill (PIB). U Governance Bill is signed into law, The Petroleum Regulatory Commission will c) the Executive Vice Chairman, who shall also U Petroleum Resources, has given a hint as confirmation validates Africa Oil+Gas He, however, informed that he had

O the Nigerian Minister of Petroleum be funded by appropriation through the be the accounting officer of the Commission; O

to how many marginal fields would be on Report's Kachikwu disclosed that, the intervened to get the legislative processes O I will no longer be the authority to issue, National Assembly. The Federal Republic of d) three Executive Commissioners; offer when the marginal field bid round is government had written to holders of all going on the bill, which the National M modify, amend, extend, suspend, review, Nigeria Appropriation Act 2016 provides for e) a representative of the Ministry of M announced. He said in a media briefing that expiring OMLs to come forward and update Assembly has failed to pass into law for R cancel, reissue, revoke and /or terminate the funding through appropriation of the Petroleum Resources who shall not be below R government has identified up to 45 marginal their licences. years now

A upstream licences in the country. Department of Petroleum Resources of the the rank of Director; A oil fields it would put out for competitive bid. Besides, the petroleum minister confirmed F Those powers will now belong to the Ministry of Petroleum Resources and the f) a representative of the Ministry of Finance F

He also stressed that the Ministry of reports that there were bits of internal country's newly created Petroleum Petroleum Products Pricing Regulatory who shall not be below the rank of Director; N Petroleum Resources was not in a hurry to disputes between the Senate and House of Regulatory Commission, which is a Agency. g) a representative of the Ministry of N I I

issue out fresh oil blocks to new investors or Representatives about the passage of the combination of the Department of Petroleum The Commission is proposed to be governed Environment who shall not be below the rank

M Resources and the Petroleum Products by a 9-man board comprised of politically of Director; M Agip To Contribute Two Fields To Marginal Bid Round 2017 Pricing Regulatory Agency. autonomous individuals with proven All appointments shall be made by the R R By Wanokabo Okaikai, in Lagos The PIGB, which was passed by the Senate, integrity, relevant competencies and President and confirmed by the Senate. It is A A the upper legislative chamber in Nigeria's experience to effectively deliver on core expected that the Board will operate outside F or the first time ever, undeveloped company's operated undeveloped marginal field bid round. F

bicameral legislature, repeals the Petroleum functions. the 4-year electoral cycle to safeguard discoveries in Nigerian Agip operated discoveries are in the “bid basket” of the ExxonMobil did not contribute any field in Products Pricing Regulatory Agency These are: continuity. acreages may be awarded as marginal Department of Petroleum Resources, the those awards but has, in the 15 years since F (Establishment) Act, CAP P43, Laws of the a) a non-executive Chairman; fields. agency responsible for conducting the bid then, “given” up two marginal fields: Okwok Two hydrocarbon accumulations, operated round. and Ebok to the Nigerian government, in Spectrum Makes a Case for Gabon's Licencing Round by the company are likely to be part of about Agip has been unable to “participate” in furtherance of the cause, which is to help eophysical company Spectrum Geo labelled as one of tight reservoirs filled with localized inversion, despite the exploration 40 fields expected to be on offer, when the marginal field awards since the exercise boost indigenous capacity. Ltd has embarked on the acquisition gas, since ENI's discovery of the Nyonne in immaturity and sample bias of the area. Nigerian government launches the much formally began in 2002 because, of all the Outside the 2002/2003 awards, Shell has 2 of a 5,500 km three dimensional(3D) 2014. “Bringing these two considerations to bear awaited marginal fields bid round later in the majors, it has the least prospective acreages contributed two more marginal fields. G seismic survey over the open area in the “The meme has grown from this discovery” opens the probability that this unexplored year. in Nigeria, especially Onshore, where the Ubima and Otakikpo were awarded by the North Gabon basin on the conviction that the that the pre-salt of North Gabon is tight and area is ready to yield major surprises in the The round is expected to be declared open bulk of undeveloped discoveries referred to Nigerian state in 2012, outside the process of pre-salt play in the area is likely to be oil- gas prone, according to a technical paper by next wave of exploration”. latest September 2017. as marginal fields are located. a bid round, a situation that was severely bearing in good quality sandstone. Spectrum's geoscientists. Spectrum is acquiring the data in Sources in Nigerian Agip, the Nigerian Only three of the five oil majors operating in criticised. Companies are beginning to show interest in In the paper, published in GEO ExPro, a collaboration with the Gabonese oil industry subsidiary of the Italian giant ENI, confirm Nigeria contributed fields in their acreages to Spectrum's multi-client data, ahead of Geoscience journal produced out of London, regulator, Direction Generale des that preliminary data from two of the the basket, during the landmark 2002/2003 Gabon's proposed licencing round in the Neil Hodgson, Karyna Rodriguez and Hydrocarbures (DGH). “The DGH intends to area, because they'd like to see its argument Anongporn Intawong argue that “variable make these blocks available through future against the likely preponderance of natural heat-flow and source rock maturity can be shallow water license rounds”, the company SDX Grabs The Gharb Centre gas in that part of the basin and the case it is evaluated to support the case for oil”. They says. “Spectrum's new 3D broadband seismic he Gharb Centre exploration permit, the work programmes making about the likelihood of oil reservoirs. also believe that Nyonie-Deep has poor will image high potential pre- and post-salt 2 covering an area of over 1362 km , at both Sebou and The shallow water area had been widely reservoir characteristics as a result of play types”. has been awarded to SDX for a period Lalla Mimouna, where ofT eight years, with a firm commitment from development and Egypt Gets $15.3Billion Worth of Oil and Gas Commitments Through Licensing Rounds 2 exploration wells are SDX for the acquisition of 200km of 3D planned for H2 2017, arek El Molla, Egypt's petroleum signed with international oil companies, He told the Egypt American Chamber of seismic, and two exploration wells within the a s p r e v i o u s l y minister, says that 76 New Upstream involving a minimum of $15.3 billion worth Commerce: “New blocks are always offered first four-year period. announced. Pre- TExploration agreements have been of commitment in the last three years. by EGPC, EGAS & GANOPE”. The Gharb Centre area comes with a drilling activity is now considerable quantity of recently acquired underway in both Tullow Will Farm Down in Kenya After… 2D and 3D seismic which has established permits where the ondon listed Tullow Oil would be hard will help the company shed some of its large not help matters, Tullow's inexperience in multiple target horizons throughout the tendering process for pressed to contribute 50% of the likely debt burden, but if oil prices don't rise in the managing complex onshore oilfield Miocene-aged strata, similar to what the d r i l l i n g r i g s a n d L$10Billion development cost of its next few years, a sale in Kenya may be development projects may very well slow Company produces from in its surrounding associated services in these permits and is targeting a late Q3 operated Kenya oil discoveries, so it is likely unavoidable. progress further. licenses. has been initiated. SDX has also received 2017 start date for the program. to farm down sometime in the next 18 Equally concerning is the ability of Tullow to Another farm down in Kenya from Africa Oil, partner approval for seven drilling locations months. manage such a large-scale oil project and the or one from Tullow, potentially to bring in a The activity at Gharb Centre complements “The development costs to develop Kenya's political and regulatory risks it entails in new or joint operator, or at least financial oil industry are considerable for the current Kenya's upstart oil industry. Even before the muscle, may be in store in the coming years. Otto Withdraws From Controversial JV in Tanzania partners Tullow, Africa Oil, and Maersk”, fall in global oil prices, Tullow was struggling This will likely not take place until Tullow is tto Energy has agreed to withdraw Kilomero and Pangani licences. Energy, a net sum of US$800,000 on or Considering difficulties in attracting large- with its efforts to progress oil finds in its finished with de-risking Turkana's oil f r o m t h e J o i n t O p e ra t i n g Swala and Otto have also entered into a before 31 August 2017. Upon receipt of such scale financing in the lower oil price portfolio into producing assets. Tullow's resources and a joint development Agreement with respect to the royalty agreement under which Swala has payments, the claims made before the environment, new partners, with larger offshore oilfields in Ghana faced technical agreement is made with the Kenyan O capital capacities, would give the venture a difficulties, lowering production, and government, but potential candidates to Kilosa Kilombero Licence onshore Tanzania granted to Otto a gross overriding royalty Federal Court in Australia, including that The company agreed to pay third party equal to 2% of revenue derived from Otto's against current and former directors of both significant boost towards first oil. In addition regulatory disputes in Uganda have been farm into Tullow's Kenya assets include Total, creditors a total sum of US$249,016. f ormer interest in Kilosa Kilombero. This Swala and Swala Energy Limited (subject to to a possible further farm down from Africa another costly delay for the company. In CNOOC – both with experience in Kenya – Meanwhile, Swala Energy has assumed the means that Swala can go ahead and progress Deed of Company Arrangement) will be Oil, Tullow will also likely look for buyers of its Kenya, Tullow expects a final investment along with other investors looking for rights and obligations in respect of Otto the plans to drill the Kito-1, the first well on discontinued. interests.. The British company announced decision in 2018, but such plans have slipped potential growth opportunities in East Energy's 50% participating interest, which the licence, sometime in 2017. renewed dedication to its Kenya assets after on numerous occasions, and are now already Africa. It will not be until next decade at the also means operatorship of the licence. The With respect to the Pangani Licence, also its Uganda farm-down in January 2017. The several years behind schedule.30 While earliest until Kenya becomes a large-scale oil two companies were partners in Kilosa onshore Tanzania, Swala shall pay to Otto announcement of a new stock rights issue Kenya's still unfinished oil legislation does exporter.

26 JUNE 2017 A F R I C A O IL + G AS R E P O R T AFRICA OIL + GAS REPORT JUNE 2017 27 THOSE WHO ARE SELLING -A round up of some of the rich pickings in the petroleum rights sector

O the Nigerian Minister of Petroleum be funded by appropriation through the be the accounting officer of the Commission; O

26 JUNE 2017 A F RI C A O IL + G AS R E P O R T AFRICA OIL + GAS REPORT JUNE 2017 27 Vol 18, No 4, June 2017 ©Copyright 2017, NIGERIAN MARGINAL FIELDS: BID ROUND LIKELY CANDIDATEwww.afrSicaoilgasreport.com report AFRICA OIL+GAS REPORT

SHANGO OLURE BIME

OBUZO META The Cluster OLOYE HUGHES OPL 274 CHANNEL OML 98 OPL 275

OML 40 UZUAKU OML 95 OML 49 OML 41 BANGHAN

BENIN ESTUARY OML 124 ODIMODI (ADDAX) ATAMBA O OML 34 OML 30 OML 20 (SHELL) OML 43 M OML 42 L OML 26 OML 91 OML 90 6 OFEMINI 4 OML 53

IRIGBO OML 45 OPL 281 OML 61 AZAMA OPL 298 OSUOPELE O OML 35 M UDIBE O L OML 58 S/W P L 4 2 6 2 ( OML 31 O 7 S M E H OML 28 L X O E P L 7 P L OML 17 KOROLE 9 R L . OML 66 (NPDC) E 2 ) S 8 S 2 O RUTA M LEGEND L O 3 OPL 2005/2006 M 2 CNL OML 89 L OML 11 5 OML 63 SHELL 6 OML 18 OML 23 O EXXONMOBIL OML 88 M OML13 L OML 18 5 TOTAL 6 OML 51 OPL 263 ( C OML 55 O OML 33 AGIP N USORO T OML 52 OBIRA .) OML 66(NNPC) OML 25 OPL 290 OML 86 OTHER OPERATORS KUDO OML 141 (EMERALD) OML 72 OML 67 OPL 285 OML 70 OPL 289 BANIELE OPL 286 OML 99 OML 85 OPL 225 (ADDAX) OML 116 (NNPC) OML OML UDARA OPL 288 OML 83 OPL 238 OPL 090 OML 119 104 100 OPL 226 (SUNLINK) OKIORI( CPC) 30 0 30 60 IKONG IBOM

EKPAT UTINE NKUKU AMANIBA AJAKETON IGBOMOTORU EMOHUA EGBOLOM OLUA Vol 18, No 4, June 2017 ©Copyright 2017, NIGERIAN MARGINAL FIELDS: BID ROUND LIKELY CANDIDATEwww.afrSicaoilgasreport.com report AFRICA OIL+GAS REPORT

SHANGO OLURE BIME

OBUZO META The Cluster OLOYE HUGHES OPL 274 CHANNEL OML 98 OPL 275

OML 40 UZUAKU OML 95 OML 49 OML 41 BANGHAN

BENIN ESTUARY OML 124 ODIMODI (ADDAX) ATAMBA O OML 34 OML 30 OML 20 (SHELL) OML 43 M OML 42 L OML 26 OML 91 OML 90 6 OFEMINI 4 OML 53

EKPAT UTINE NKUKU AMANIBA AJAKETON IGBOMOTORU EMOHUA EGBOLOM OLUA

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but it's not clear where else on the African didn't drill a single well in Equatorial Y Independents In Retreat hydrocarbon map it will be hunting for big Guinea, its main African cash cow, where Y A By Toyin Akinosho game, in the near term. it had total net daily output of A

D Ophir Energy is a self-acclaimed wildcatter, 33,000BOEPD. Nor does it plan to drill D onocoPhillips, the world's biggest required to be deployed for an oilfield much about the two phase Liquefied Natural

’ but it has not been as successful in opening any well in that country in 2017. Hess was ’ E&P Independent, divested all its development. The real project is the 80,000- Gas (LNG) project it is developing to

S any basin. Instead, it has earned the actually excited about Ghana six years S African assets, in the last three years, 100,000BOPD crude oil development, fed monetise its operated ^60Tcf of gas in Area A. T C reputation of being a dry hole specialist. Its ago, when it made its first discovery T with the exception of Libya, a country whose into 1,000km pipeline from Turkana in the oil Anadarko and ENI happen to have reached recent duster in Cote d'Ivoire is the seventh there. In 2014, the year of the onset of N industry is so uncertain the company cannot rich north to Mombasa on the Indian Ocean development stages in monetising N dry hole offshore Africa in three years (See the great price crash, it drilled three E always count on it. coast. Mozambican gas at a time the world is E story on page 22). This naughty fact however, successful appraisal wells, which it D But COP's divestment activities are not In Ghana, Tullow expects to produce experiencing a glut of LNG projects. But ENI D does not obviate the significance of Ophir's continues to evaluate. But while it says it

N symbolic of the status quo of International 68,500BOPD (net: 24,300BOPD) in the has been luckier; its (smaller) FLNG project N contribution to E&P activity in Africa. The is progressing development planning,

E Independents in Africa. Jubilee field in 2017. The Greater Jubilee got an early, well-heeled offtaker in the form E least to say of the company is that it is daring. Hess appears frustrated about the For anyone looking for such a direction, it is P field development is to monetise the of BP. It has since taken the Final Investment P Clear Line of Sight To Field Development Maritime border dispute between helpful to watch Tullow Oil's recent fortunes

E Jubilee's upside potentials. (It is an Decision on that facility, while Andarko has E I T S O I L F I N D I N G I N A D E Q UA C I E S Ghana and Côte d'Ivoire, which involves on the continent. integration of nearby Mahogany and Teak postponed announcement of Financial close D notwithstanding, Ophir is doing well on the a portion of its Deepwater Tano/Cape D The Irish explorer continues to make gains in discoveries in the West Cape Three Points on the much larger project till 2018.

N development front. It is leading a project to Three Points license. “We are unable to N Kenyan exploration. Its latest discovery, Block with the main Jubilee Field). Greater ANADARKO MAY NO LONGER BE THE lead I drain over 2Tcf of gas offshore Equatorial proceed with development of this license I Emekuya-1, chugged through 75metres net Jubilee is expected to deliver about wildcatter in the African wild, but it has Guinea over a period of 15 years. The until there is a resolution of this matter, oil pay, and stretches the pool much further 60MMBbls of oil and 100Bcf of gas. By simple settled comfortably as an appraiser and Fortuna Floating LNG (FLNG) project is which may also impact our ability to north of the country's main prospective hub. arithmetic, this means that when it comes on developer. It has advanced on appraisal of proposed to deliver 2.5MMTPA from the develop the license”, it says. While it has But the Kenyan property is the smaller of the stream, the Greater Jubilee will add about the Paon structure, its 2012 discovery off Fortuna gas field in the country's Block R, gone ahead and “declared commerciality company's two major undeveloped East 10,000BOPD at the most to the current Cote d'Ivoire, and has encountered oil in from 2020. The award of the EPCIC contract for four discoveries, including the Pecan African oil portfolios; with 750Million barrels production, which itself is on a course of satellites (Pelican, Rossignol) of the main is on schedule, Ophir says. “Term sheets Field, which would be the primary of 2P resources, it is less than half of what decline. structure. If this were big, hub size fields, or have been agreed with a consortium of development hub for the block”, Hess' constitutes the Ugandan play, which is now With the farm down in Uganda, the peak at least basin opening, they would have Tullow's Founder and Chairman, Aidan Heavey, holds on to China-based lenders. The counter-parties to continuing increase in investment in the firmly in the development phase. And yet, production from the Ghanaian assets is the made frontline news. the ball. With farm down of Ugandan asset and Ghanaian the financing have now entered into final Shale hydrocarbon fields onshore portfolio not growing any more, company may lose the Tullow has surrendered the leadership of the highest in any country that Tullow is likely to Elsewhere on the continent, Anadarko's documentation stage”. Ophir holds 80% and United States indicates where its real 'captainship' of the cast of independents operating in Ugandan project by farming down over 22% go, especially in terms of monetary value. Is operated gross hydrocarbon production in Africa. Photo credit: Getty Images. has signed an agreement confirming the priorities lie and it wouldn't be to TOTAL, the French major. Now it holds there likely to be a surge in the fortunes of Algeria averaged approximately 404,000 participation rights of the state hydrocarbon surprising if it announces an extreme around 12%. Tullow in Africa, in the next ten years? We are BOEPD during the fourth quarter of 2016, premier exploration and production company, GEPetrol, as partners for 20% of farm down, if not outright exit from Ghana, It is also expected to farm down in Kenya, waiting to be surprised. the highest average quarterly production company with global assets focused on the upstream portion of the project, and for in the next two years. But here is the official where it currently holds 50% in Blocks 10BB Anadarko was, until 2014, making headlines rate since 2009. The El Merk field produced North American growth”, it declares without a future potential participation of up to 30% line: “We are continuing to work with the and 13T, the country's most prospective with discovery after spectacular discoveries at rates of more than 160,000 BOEPD. The equivocation. “In Egypt and the U.K. North ownership of the midstream FLNG vessel by government on how best to progress work acreages. For now Tullow is operating the of gas pools in Mozambique, where it was Hassi Berkine South (HBNS) facility achieved Sea, we will continue investing to sustain the Republic of Equatorial Guinea or a on the block given the maritime border pilot, early oil scheme to truck and rail singularly responsible for opening the production rates of approximately 118,000 free-cash-flow generation, which is a key designated State company. Project partners dispute”. 2,000barrels of oil per day from Turkana to prolific deepwater Rovuma basin in 2010. BOPD during the quarter. component to funding our long-term growth were, by late May 2017, determining the Noble Energy has positions in Cameroon Mombasa from the third quarter of 2017. Seven years later, it has gone loudly quiet on Kosmos Energy is another of the minnows strategy in North America”. So there. structure and amount of the expected (Exploration) and Equatorial Guinea This is merely a demonstration scheme, even the exploration front and has hardly said frequently cited as being passionate about FINALLY, CAIRN ENERGY IS CURRENTLY the volume to place under contract at Final (Production). Just like Hess, it doesn't discuss though it entails all the technical faculties new plays. It opened the Tano basin (which lead wildcatter in the African wild. Its oil Investment Decision, which Ophir was these assets much when it makes contains the Jubilee field) off Ghana and its discovery in SNE and FAN prospects, back to Anadarko’s Paon Field, Cote D’Ivoire hoping to take by the end of June 2017. presentations at Investors' conferences. gas-finding activity in Senegal/Mauritania is back in Senegal in 2014 echoed Kosmos' As to who the offtakers are, the company Noble is growing its East Mediterranean part of the reason for the great Northwest Mahogany discovery off Ghana in 2007 and says: “An award of offtake will be made from portfolio and its onshore (read Shale African rush. The news of Kosmos' latest Anadarko's discovery of huge gas filled the shortlist of attractive proposals from hydrocarbon) United States assets as it pays discovery Yakaar-1, off Senegal, is still a hot structures offshore Mozambique in 2010, as high quality counterparties”. What these all less attention to African projects. It operates item. Encountering 45metres of net gas pay, game changing. mean is that Ophir has a sizeable LNG project the Aseng and Allen fields offshore it is the sixth consecutive successful It has had seven successful appraisal wells on to manage in Africa for the next 15 years. Equatorial Guinea, which collectively exploration and appraisal well drilled by the the SNE field. Neither Hess, Apache, Noble nor Marathon, produced 17,000BOEPD net in 2016. It also company in the Senegal/Mauritania basin to Cairn is about to discover more oil in one of has touted itself, or gained media perception holds equity in Marathon Oil operated Alba date and it's already being touted as “able to the most under explored basins on the of an aggressive wildcatter or basin opener Field in the same country. In Cameroon, support a second cost-competitive LNG planet. It is a non-operating partner to the way Tullow, Anadarko, Kosmos and Ophir Noble Energy says it is working with the hub”. But this is the first well that Kosmos Kosmos in a Moroccan asset, which happens have done. government on development options for will drill as partner to BP, which has farmed to be located in the troubled Western Sahara But these four American companies, all YoYo-1, discovered as far back as 10 years significantly into the former's six blocks in region. It will likely make more discoveries in listed on the New York Stock Exchange, have ago. In our view, Noble Energy is not excited Mauritania(4) and Senegal (2). With 62% the Senegal/Mauritanian basin in the next 18 contributed in several ways to the image of about this asset and would rather have a share in the Mauritanian blocks and 33% in months, and so far it has talked of leading the the domineering stature of the Western buyer. the Senegalese blocks, the aggressive BP is development of these assets, reportedly international independent in African E&P. APACHE is the biggest independent not expected to sit on the passive partner holding around 400MMBO. An Exploitation Of the four, however, Hess appears a little operating in Africa. Its 170,131BOEPD in seat for long. BP is already talking about Plan to be submitted in 2018, a Final tired. For the first time since 2001, when it Egypt is the highest volume of hydrocarbon investment decisions for proposed LNG Investment Decision (FID) within twelve arrived Africa by way of taking over Triton resources pumped by any independent on projects in the basin and it is easy to see the months thereafter and first oil expected in Energy, and started running the second the continent in 2016. All of the company's British major leading the charge going the period 2021-2023. It is curious, however, largest oil field in Equatorial Guinea, Hess effort in Africa is expended in one country: forward. that no major oil company has announced a does not look gung ho about the continent. Egypt, which is not necessarily a growing pie Kosmos has hunger for foraging in the wild, move on this asset. It quit Algeria in 2016. In the same year, it in its portfolio. Apache's vision is to be the

34 JUNE 2017 A F R I C A O IL + G AS R E P O R T AFRICA OIL + GAS REPORT JUNE 2017 35 but it's not clear where else on the African didn't drill a single well in Equatorial Y Independents In Retreat hydrocarbon map it will be hunting for big Guinea, its main African cash cow, where Y A By Toyin Akinosho game, in the near term. it had total net daily output of A

34 JUNE 2017 A F RI C A O IL + G AS R E P O R T AFRICA OIL + GAS REPORT JUNE 2017 35 Drillers Group Seek More Relevance By Foluso Ogunsan, in Lagos, Nigeria

E rilling companies in Nigeria, under the the current executive runs a three-year T aegis of the International Association administrative period, passing on the baton

A of Drilling Companies (IADC) Nigerian by early 2019 in a constructive arrangement

D D chapter, have found a niche for the association whereby the present Vice-Chairman takes

P in the current low price regime. the helms of affairs, fostering a continuous “We are owners of rigs,” says Ote Enaibe, the chain of operation. U

IADC Nigeria chairman. “We should have firm At the association's 2017 Safety Awards Y knowledge of rig operations in Nigeria. ceremony last April, Tukur Faru, Director of

N Beginning from 2017, we decided to become the Nigeria Nuclear Research Agency (NNRA)

A the resource base for the hydrocarbon explained the function of the NNRA and its Ote Enaibe, chairman IADC Nigeria Chapter (left), with Tim Cox of

P industry.“ relationship to the drilling industry. NNRA is Controlled Risks and Engr Tukur Faru of Nigeria Nuclear Research Agency. Rig counts dropped from a 2014 high of 48 rigs well equipped with good database management. He identified regulatory, M to a low of 10 rigs operational in-country by management processing, he said. A dosage political and operational uncertainties as the O December 2016, direct fall-out of worldwide monitoring arm of the agency measures key factors deterring FDI into the Nigeria's

C oil industry slump. radiation exposures to handlers of the hydrocarbon industry. Chairman Enaibe called to question the material. Regional as well as state-wide offices Also present at the event was David Geer, business model of an E&P company, Sterling are being planned to reduce the bureaucratic IADC's Regional Director MiddleEast, Africa. Oil coming into the country with their own process afflicting the agency operations. He introduced new initiative called Drilling drilling operators: BOGEL. This is against what Tim Cox, Associate Director for Control Risks Matters, a response to the negative media the regulations say. He did however state not West Africa, a global risk consultant bedevilling the industry in present times. It all rig owners for varied reasons are members management agency took the Drilling aims at providing answers to frequently asked of IADC Nigeria Chapter. community on risk management techniques questions (FAQs) about a range of drilling (IADC) Nigeria Chapter plans to continue its and strategies. He shared the three key things operations from fracking to Arctic drilling. tri-yearly association gatherings beginning Control Risks believes in-(1) ensuring value Another new entrant is the BOP Joint with the yearly business outlook, its annual and return on investment on security Reliability Industry Project used to create a HSE Awards Ceremony and its technical funding,(2) risk and security management as a database of all BOP-related events for all sessions alongside annual general meeting. competitive advantage in the market space players in the industry towards ensuring BOP Safety of operational environment involving and (3) adopting a holistic approach whilst fit-for-purpose function. utilisation of nuclear materials and Security understanding the changing threat in Chucks Enwereji, Vice-Chairman IADC Nigeria Risk management is the core concern for Mr. operating environment. He stated that Chapter, told Africa Oil+Gas Report that fewer Enaibe's executive committee. The former collaborative working, networking and co- drilling companies participated in the 2016 involves closer collaboration with the Nigeria operation are essential in dealing with the HSE ISP collation. Nine shortlisted companies Nuclear Research Agency (NNRA) while the hydra-headed monster of pipeline vandalism, were vetted by HSE managers from four IOC's latter sees drilling operating companies piracy and threat to life and operations. Cox with Shelf Drilling awarded the best overall forging better bonds with security risk experts cautioned on the use of drone technology performer for the IADC 2017 HSE AWARDS specialised in operational risk management. application in security management, viewing Ceremony. As is the operating culture of the association, it as an uncertified, novel solution to security EVENTS The Continent's Most Influential Hydrocarbon Summit Shapes Up he Africa Oil Week will have its 24th continent attend the flagship Africa Oil Week edition in Cape Town, South Africa from that attracts a key oil and gas audience to Cape T23-27 October, 2017. Town, offering a content driven program, “The Conference & Exhibition provides the quality industry exhibition and five star most trusted platform worldwide”, according networking opportunities”, ITE asserts. to ITE Exhibitions, the event's orgainsers. “It Some of AOW's Key Highlights, according to brings together governments, national oil the organisers: companies, corporate players, independents Longest-running and most prominent and financiers with support from service and event held worldwide in and on the supply operators shaping Africa's oil, gas and African Continent for its fast-growing oil, energy future. gas-LNG and energy industry news and “The conference portrays five days of content- business partnerships. rich senior level executive insights, finance First-class networking and social interface and investor outlook, exposure of Africa-wide with multiple opportunities for all to state and/or private acreage opportunities, create and cement relationships that will National Oil Companies and state entities transaction and/or new venture assets and shape the future for oil and gas in Africa. Government agencies, Ministries potential, exposure of Africa-wide state Deal-driven industry Exhibition Offshore exploration and production and/or private acreage opportunities, Sizeable in-room investor and finance Technology, service and supply exploration and production developments, potential companies industry strategies and portfolio, and an At Africa Oil Week, You Engage with: Oil and gas institutions, investors, overview of Africa's hydrocarbon future; Globally-diversified mix of senior-level financiers, bankers and energy lawyers regarded for its high level participation, government and corporate delegates Onshore, offshore and deepwater intimate networking and on-site deal-flow. Substantial array of countries offering Advisors and consultants “Annually, more than 1,250 corporate and numerous exploration blocks and bid influential leaders and thinkers from every rounds

36 JUNE 2017 A F RI C A O IL + G AS R E P O R T AFRICA OIL + GAS REPORT JUNE 2017 37 Drillers Group Seek More Relevance By Foluso Ogunsan, in Lagos, Nigeria

E rilling companies in Nigeria, under the the current executive runs a three-year T aegis of the International Association administrative period, passing on the baton

A of Drilling Companies (IADC) Nigerian by early 2019 in a constructive arrangement

D D chapter, have found a niche for the association whereby the present Vice-Chairman takes

P in the current low price regime. the helms of affairs, fostering a continuous “We are owners of rigs,” says Ote Enaibe, the chain of operation. U

IADC Nigeria chairman. “We should have firm At the association's 2017 Safety Awards Y knowledge of rig operations in Nigeria. ceremony last April, Tukur Faru, Director of

N Beginning from 2017, we decided to become the Nigeria Nuclear Research Agency (NNRA)

A the resource base for the hydrocarbon explained the function of the NNRA and its Ote Enaibe, chairman IADC Nigeria Chapter (left), with Tim Cox of

36 JUNE 2017 A F RI C A O IL + G AS R E P O R T AFRICA OIL + GAS REPORT JUNE 2017 37 Algeria's Oil Sector Is Adrift hen Abdul Moumen Kaddour was founded in 1964 is vanishing as fear of E was appointed as the chief denunciation following events since 2010

G executive of Algeria's oil and gas means that no one at intermediary levels

A W company Sonatrach six weeks ago, dares make any decision. Decision making at

T describing the event as a bolt out of the blue the top is clogged.

R would be understating its impact on this key As many senior administrators, engineers

O section of the Algerian economy. Nobody and finance specialists take early retirement, was expecting Amine Mazouzi who had been P the company one of the largest in Africa appointed less than two years earlier to get E which accounts for 97% of Algeria's foreign fired. income and 60% of budget receipts has R The name of the new CEO was not even turned into a giant with feet of clay. whispered in the corridors of power before Ould Kaddour's appointment maybe at the impromptu Sonatrach board meeting By Francis Ghilès another level the umpteenth episode in the called on 20 March by the Algerian minister endless settling of scores between Algerian of energy Noureddine Boutarfa. Like his contracts expire in 2019. Mr Khelil's return to security and the presidential circle. The immediate predecessors, Ould Kaddour is a favour provides a powerful boost to president's feud with the DRS and its competent technician but has no experience American interests in Algeria. predecessor the Securite Militaire (SM) goes in upstream activities or in the Trials followed the exit of Mr. Khelil in 2010 back to 1979 when, after the death of commercialisation sector. but those responsible for the massive President Houari Boumedienne, the SM The manner of the appointment speaks of corruption charges were never brought to blocked Bouteflika's candidature to succeed. the extent of infighting within Algeria's ruling trial. Second liners, including Ould Kaddour These palace intrigues and the weakening of circles. It sends a confused message to were sentenced to prison then rehabilitated. Sonatrach will seriously damage Algeria's Sonatrach's foreign partners which are The whole affair left a bitter taste in the reputation. They send a confused signal to helping to develop Algeria's vast gas mouth of millions of Algerians. foreign partners be they oil companies or resources and to those countries Algeria is Ould Kaddour was in the mid-2000s in French, British, German or US officials. The committed to working with to stabilise a charge of Brown, Root Condor which was a first cannot engage with officials who are north-western African region beset by civil joint venture specialising in engineering afraid of their very own shadow while strife, poverty and terrorism (Libya, Mali, work between Algerian companies diplomats and security specialists find it Niger and Tunisia). (Sonatrach and the Nuclear Research Centre difficult to engage with a country which plays Boasting its sixth CEO since the dismissal of at Draria) and KBR, the British subsidiary of and important role in North-West Africa. The Chakib Khelil for corruption as energy Halliburton, a major US company whose threat of terrorism inside Africa's Saharan minister in 2010, Sonatrach and the energy chairman was Dick Cheney, before he belt is real and growing. Chaos rules in Libya sector are adrift. Kheli's downfall was became US vice president. and uncertainty in Tunisia. A country whose engineered by the powerful security (DRS) as BRC was alleged to have received kickbacks senior officials are engaged in a never ending Khelil fled to the United States, only to return from Sonatrach and the Ministry of Defence merry go round and who are often sacked to to Algeria two years ago, part of a for work carried out at their behest in Algeria be replaced by less competent people is not presidentially sanctioned rehabilitation during the boom years of high oil prices. an easy partner because it inspires ever process. Ould Kaddour is close to Khelil and None of the senior culprits were held to lower competence. his appointment is considered another step account. The DRS did press charges of spying in the rehabilitation of the former minister. for a foreign power to get Ould Kaddour The key explanation of Ould Kaddour's condemned. appointment is that those who represent US After he left Algeria, Khelil worked at the interests in Algeria were furious that his World Bank, eventually overseeing the Latin Francis Ghilès is a Senior Research Fellow at CIDOB, the Barcelona Centre for International predecessor had signed, twenty four hours America energy department after 1980. In Affairs, in Barcelona, Spain. A specialist in North the decade that followed Argentina and before he was sacked a major contract with African affairs and a keen observer of Algerian the Italian ENI to develop solar gas in the Bolivia came under huge pressure from the political economy, he is a frequent contributor country. The American “clan” was convinced US government and through the World Bank to Africa Oil+Gas Report this contract belonged to them. ENI and its to privatise oil and gas companies which they founder Enrico Mattei have played an strongly rejected. important role in the development of Mr Khelil's strong hydrocarbons in Algeria since the mid fifties. links with Dick Mattei advised the Algerians who signed the Cheney date from treaty of Evian with France in March 1962 those years. whereby Algeria became independent. ENI Today morale at built the first underwater gas pipeline in the Sonatrach and the world which delivers Algeria gas to Italy via ministry of energy Tunisia and the Straight of Sicily since 1983. are rock bottom. The volume of gas delivered has dropped by The culture of half to 14bcm in 2017 but the strong links i n t e r n a t i o n a l with Italy explain why the Italian minister of engagement so economic development threatened to stop characteristic of buying Algerian gas after the current Sonatrach since it

38 JUNE 2017 A F RI C A O IL + G AS R E P O R T Algeria's Oil Sector Is Adrift hen Abdul Moumen Kaddour was founded in 1964 is vanishing as fear of E was appointed as the chief denunciation following events since 2010

G executive of Algeria's oil and gas means that no one at intermediary levels

A W company Sonatrach six weeks ago, dares make any decision. Decision making at

T describing the event as a bolt out of the blue the top is clogged.

R would be understating its impact on this key As many senior administrators, engineers

38 JUNE 2017 A F RI C A O IL + G AS R E P O R T