OFFSHORE AFRICA July-August 2019

www.offshoreafricamagazine.com

VOL. 9 ISSUE 3 - JULY / AUGUST 2019 AFRICA

ITLOS May Resolve Ghana, Togo Maritime Dispute

Angola is Open for Business AGM Spuds Exploration What Oil Industry Expects Wells at SDWT Block from Buhari’s Reelection Mozambique Expects US$95B of Gas Revenue

Indigenous Oil Firms Risk GRA Crackdown for Fronting

Contents

8 EXPLORATION & PRODUCTION 12 LOCAL CONTENT AGM Spuds High Potential Indigenous Oil Companies Risk Exploration Wells at SDWT GRA Crackdown for Fronting Block Upstream petroleum regulator, the AGM Petroleum is currently drilling Petroleum Commission, says it is the Kyenkyen-1x and Nyankom- working with the Ghana Revenue 1x exploration wells at its South Authority (GRA) to check the Deepwater Tano (SDWT) block increasing cases of indigenous offshore Ghana. Both wells are at companies fronting for foreign firms 28 ENVIRONMENT extremeAke waterr En depthsergy arangingnd AG fromM P etroinl etheu moil Gandha gasna sector. snapshot 34 SPECIAL REPORT 200 to more than 3,000 metres. Ghana Reports 2,000 AREA MAP 12O LOCALWNERSHI PCONTENT STRUCTURE SUIncursionsMMARY into Offshore Oil ITLOS May Resolve Ghana, Aker Energy executes all operations on behalf Security Zones Togo Maritime Dispute of AGM through service agreements. TarPetroleumgeting a business co mCommissionbination in 2019 to Ghana enhance an area developement to more than § E&P companyGhana’s with aim of rep fledglinglicating Aker upstream sector Despite concerted efforts by Announcesdouble the value Localcreation. Content PlansBP succe ss in facesGhana growing security threats as Ghanaian and Togolese leaders to § Operator and 50% owner in DWT/CTP for PecanT RFieldG Development(2006 PA1) local fishermen routinely flout amicably resolve the dispute over 50% § Working on POD delivery Q1 2019 - target 1st oil late 202safety1 measures put in place to their maritime boundary, signs Ghana’s PetroleumMa joCommissionrity owner has § Aim to contribukeepte to de vkeyelopin ginstallations local safe and outlined the local content componentGhanaia n industry – beyond local content are emerging that the dispute for100 %the Pecan development and functional. may ultimately be resolved under Aker Energy Ghana international arbitration. production project driven66% by field 50% operator Aker Energy. § E&P company owned by Petrica (TRG) DWT/CTP SDWT § Operator2 and 66% in owner SDWT, (2013 PA) 35 SPECIAL REPORT § Ultra deep water exploration block Aker Energy and AGM are two Norwegian owned E&P § Work integrated with Aker Energy and companies with same ultimate principal shareholder, TRG. GNPC Oil Companies Rush for

1) Hess awarded block in 2006, later farmed down to Lukoil. Aker Energy signed SPA with Hess Q1 2018. 12 wells drilled, several discoveries. 2) Opco being established as operator company 8 EXPLORATION© 2019 Aker Energy AS & PRODUCTION 2 Offshore Keta Basin Oil major BP is the latest Aker Energy to Grow DWT/CTP international exploration and Oil Reserves production firm to indicate a firm interest in exploring for oil in Aker Energy, operator of the DWT/ the eastern offshore Keta Basin. CTP block offshore Ghana, says it Representatives of BP had informed is targeting a total oil resource with 16 OIL & GAS PEOPLE 30 GAS Ghana’s oil and gas licensing upside potential of up to one billion committee that it was dropping out barrels in the area. Awotwi named Executive Vice Mozambique Expects US$95B of the first licensing round to focus President for Tullow of Gas Revenue over 25 years on future licensing rounds involving blocks in the Keta Basin. Kweku Andoh Awotwi, Managing Mozambique’s government expects 9 EXPLORATION & PRODUCTION Director of Tullow Ghana (TGL), to reap $95 billion of revenue over has been promoted to Executive 25 years from natural-gas deposits 36 NIGERIA Ivory Coast extends four oil Vice President of Tullow Oil plc, being developed in the country — field awards to Total and Eni following a re-organisation of the more than seven times larger than Group structure. The Tullow Ghana What Oil Industry Expects Oil giants France’s Total and its gross domestic product. Business, which was formerly part Italy’s Eni which holds substantive from Buhari’s Reelection of Tullow’s West Africa Business, is exploration blocks in Nigeria’s Fresh from his comfortable re- now a standalone business under the have continued their divestment 32 POWER election, President Muhammad new Group structure. across Africa with Ivory Coast Buhari faces huge hurdles. The awarding four new offshore oil and Ivory Coast’s Azito Power 76-year-old former military ruler gas blocks two to Total and two to Plant Increases Output by is saddled with more daunting ENI, government spokesman Sidi tasks in his second term due to his Toure said. 30 MW inability to decisively tackle critical GE’s MXL2 Turbine Upgrade will issues confronting Nigeria in his help Increase Power Output by 30 first tenure. 10 EXPLORATION & PRODUCTION megawatts (MW) at Azito’s plant in 28 ENVIRONMENT the Yopougon district of the Ivory Ghana’s First Licensing Round Coast; GE’s Upgrade and Predix 48 ANGOLA CSOs Call on Uganda and DRC Asset Performance Management was a Tough Sell Angola is Open for Business to Avoid Oil Exploration in (APM) Software will Help Improve Oil industry watchers are pondering Plant Competitiveness; The Project with Oil Reforms the rather modest results from Sensitive Albertine Graben Marks GE’s First Digital Solutions Angola, sub Saharan Africa’s second Ghana’s first oil licensing round. The Albertine Graben is home Order and First GT13E2 MXL2 Full largest oil producer after Nigeria, Only three companies (Eni, Tullow to Virunga National Park in the Modules Configuration Gas Turbine has announced the first phase of Oil and First E & P) applied for two Eastern DRC which is classified as upgrade installation in Sub-Saharan a brand new six-year oil licensing out of the three blocks on offer. A a UNESCO World Heritage site and Africa. strategy in a bold bid to revamp its third block received no bid. accommodates 43% of Africa’s bird waning oil and gas sector. species, 27% of Africa’s mammals and more than 10% of its reptiles, amphibians, and plants in addition to several rare and endangered species that exist nowhere else in the world. www.energemgroup.com

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Accra Takoradi Office/Warehouse Houston Malabo Lagos 8th Floor, One Airport Square, Airport City Block 2 GHPA Log Office 3130 Grants Lake Blvd, Suite 17331. Edificio Davinci, 1 Planta, Malabo II, BN, Suite 1910 19th Floor, Western House 8/10 14 Senchi Street, Airport Residential Area. Harbour Business Area Sugarland TX 77496 Guinea Ecuatorial Broad Street, Lagos + 233 302 779 203 +233 269 303 030 +1 346 214 6990 +240 555 49 57 05 +234 817 504 5673 EDITORIAL editorial Ghana Shouldn’t be too disappointed with Oil VOL. ISSUE - AFRICA Licensing Outcome PUBLISHER/ EDITOR-IN-CHIEF Ghana’s first oil licensing round GILBERT DA GILBERT DA COSTA was always going to be a difficult COSTA [email protected] task. As expected, it has turned to Editor-in-Chief, EDITOR be a huge learning curve. Three KATE DA COSTA Offshore Africa [email protected] companies, including Tullow magazine Oil and Eni, are bidding for two REPORTER offshore oil blocks. A third block Gilbert Da Costa is a journalist who worked PATIENCE AREMU received no application at all. for many years as the Nigeria correspondent MARKETING EXECUTIVE This was not the outcome many for Cable News Network (CNN), British ELIZABETH AMOAH had anticipated. Broadcasting Corporation (BBC), Voice [email protected] of America (VOA), TIME magazine and SPECIAL PROJECTS Several reasons and excuses have Associated Press. KOFI AMPARBENG been thrown forth as possible Born in Accra, Da Costa provided some of the LEGAL CONSULTANT factors for the the relatively most exciting, factual and unbiased reporting GODWIN DJOKOTO low interest in the blocks on of top stories during his time in Nigeria- the EUROPEAN UNION BUREAU offer. Interestingly, blocks five long period of military dictatorships and the Kwame Agyei-Nyarko and six, which were set aside return to civil democracy in 1999. Fatcoin Group for direct negotiations between A lawyer, Da Costa has had many outstanding Kneppelweg 5 the Ministry of Energy and experiences in his 30 -year career, including NL-1104 MA Amsterdam prospective bidders, attracted a minute-by-minute live reporting for CNN Phone: + 31 6 271 60131 huge interest. on the sudden death of both military ruler LONDON BUREAU General Sani Abacha and politician Moshood Al- Haji Abdul Tanko There is absolutely no need to Abiola in 1998. He was credited with CNN’s Aimex Focus Ltd panic over the situation. Ghana electrifying coverage of Nigeria between 1993 125 Roman Road should step back, review what and 2001. Bethnal Green has happened in a pragmatic London E2 OQN, UK Working in Nigeria offered him the way to enhance future licensing Tel.: +44 7949793126 opportunity to cover the oil and gas industry rounds. Ghana already offers in great detail. He also covered the Boko ABUJA BUREAU very attractive terms for oil Haram phenomenon extensively and was Princess Umoh the first foreign reporter to visit Maiduguri 3rd Floor, Block A, City Plaza exploration and production. and Limankara, in the troubled northeast, on Plot 596, Ahmadu Bello Way, In reviewing the current assignment for TIME magazine in 2005. Area 11, Garki licensing round, emphasis should All Correspondence to: Da Costa has interviewed several leading

be on easing procedures and OFFSHORE VOL.9.3 The Editor, Offshore Ghana international personalities, including four modalities for future public bids. serving Nigerian presidents. GP 4923, Accra-Ghana 7 Email: [email protected] Email: [email protected] ADVISORY BOARD Phone: +233 (0) 54 739 5411 Phone: +233 (0) 26 239 4291 Phone: +233 (0) 27 200 4048 M.C. VASNANI: CEO and Owner of Consolidated Shipping Agencies Limited (CONSHIP), a Twitter: @Offshore Africa_ leading logistics company in the oil and gas sector. Facebook: Offshore Africa Magazine JOHN JUSTICE BONNEY: CEO of Takoradi-based award winning M&L Trinity, a top oil and Offshore Africa Magazine is published by energy service provider. Jubert Communications Limited PAT MENSAH: CEO of iBanking Solutions Limited. An Accra-based information technology LOCATION service provider to the banking industry in Ghana. DESIGN & PRINT: BUCK PRESS LTD: 0302 408061 BUCK PRESS LTD: DESIGN & PRINT: 7, Dadekotopong Street, East Legon, Accra EXPLORATION & PRODUCTION Aker Energy and AGM Petroleum Ghana snapshot Ghana’s Minister of Energy John AGM Spuds High Aker Energy to Grow DWT/CTP Oil Peter Amewu sounded pliable on Aker Energy’s solicitation AREA MAP for concessionsOWNER inS itsHI Pphased STR UCTURPotentialE Exploration SUMMARY Reserves to One Billion Barrels developments and production of resources in the DWT/CTP Wells at SDWT Block Akecontractr Energ area.y ex e“Internationalcutes all op erations on behalf of AGM through service agreements. oil companies moving into • Jan Haugan Tarchallenginggeting a b watersusine needss c omorembi nation in 2019 to Ghana enhflexibleance aroomn ar toea operate, develo tope ment to more than § E&P company with aim of replicating Aker increased theiroub lproductione the valu toe creation. BP success in Ghana reserve ratio,” he told a recent § Operator and 50% owner in DWT/CTP conference in Accra. TRG (2006 PA1) The phased50% development plan of § Working on POD delivery Q1 2019 - target 1st oil late 2021 DWT/CTP block will start with Majority owner the development of the Pecan § Aim to contribute to developing local field, being the largest of several Ghanaian industry – beyond local content discoveries100% in the area. Upon PoD approval by the Ghanaian authorities, Aker Energy will Aker Energy Ghana initiate a process to make a Final 66% Investment Decision (FID). 50% First Oil from the Pecan field is § E&P company owned by Petrica (TRG) estimatedDWT /forCT 35P months after the SDWT § Operator2 and 66% in owner SDWT, (2013 FID is made. PA) Aker has so far spent about § Ultra deep water exploration block Aker Energy and AGM are two Norwegian oAGMwned PetroleumE&P is currently drilling $300 million on its Ghana § Work integrated with Aker Energy and companies with same ultimate principal sharethehold Kyenkyen-1xer, TRG. and Nyankom- GNPC Aker Energy, operator of the 26 percent to 31 percent. So the project, and submitted the 1x exploration wells at its South DWT/CTP block offshore Ghana, PoD we submitted was based on Plan of Development (PoD) in Deepwater Tano (SDWT) block March. The Norwegian firm was says1 )it H eisss atargetingwarded block ian 2total006, lat eoilr far med down to L31uko ilpercent,”. Aker Energy s revealedigned SPA wi thJan Hess ArveQ1 201 8. 12 wells drilled, several discoveries. offshore Ghana. Both wells are at resource2) Opco bwitheing es upsidetablished a spotential operator com pany Haugan, CEO of Aker Energy. subsequently asked to withdraw extreme water depths ranging from of up© 2 to01 one9 Ak ebillionr Energ barrelsy AS in the the PoD and review and upgrade2 200 to more than 3,000 metres. area. The average recovery rate in its application to meet all Norway is 47 percent and Aker required regulations. Aker Energy is providing technical The Norwegian firm says it Energy reckons it could increase services to AGM Petroleum. “We has increased oil reserves from the recovery rate for its Ghana The total investments (CAPEX) are now preparing for the next what it was when it took over operations. However, Mr. to develop these reserves are exploration well, which is called from Hess last year by about 49 Haugan insists Ghana will have estimated to USD 4.4 billion, Nyankom-1x. We expect this to be percent to 600 million barrels, to make concessions in terms of excluding the charter rate for one of the more prospective targets with a potential to reach the one granting the firm permission to a leased FPSO. The Pecan field that we have in the block,” says Aker billion barrels mark. continue with exploration even centre will have the flexibility to Energy’s CEO Jan Arve Haugan, after submitting the PoD. tie-in subsequent development of It says a sister company in noting that at such water depths, resources. technical challenges abound. Norway currently operates an “We need to continue with offshore oilfield in the Nordic exploration activities in the block Aker Energy Ghana Limited is “At 3,080 metres, we are nation with the same volume even after we have delivered the operator under the DWT/ approaching the top end of the of reserves as Aker’s asset in the PoD, and even when the CTP Petroleum Agreement with competence that we have in the Ghana, which makes application contract area is converted into a 50% participating interest. Its industry, and sometimes you can of learnings from Norway in a development and production partners are Lukoil Overseas compare them to the champions Ghana a very appealing option. area,” he explained. “Based on Ghana Tano Limited (38%), league in Europe.” “Based on that, we believe that it that, we believe the producible the Ghana National Petroleum should be possible to increase the volume will increase going Corporation (GNPC) (10%) and Norwegian billionaire Kjell Inge recovery rate from the estimated forward.” Fueltrade Limited (2%). Roekke, who owns majority stake in AGM Petroleum, also owns Aker Energy. The SDWT block • >16,500 km (10,253 mi) of 2D is considered one of the largest August cut-off point for calibrated vintage seismic offshore oil blocks in the world and Egyptian Red Sea license bids • 3,650 sq km (1,409 sq mi) of adjudged to be of exceptionally high reprocessed 3D level of prospectivity. Egypt’s Ministry of Petroleum and Mineral Resources is and Mineral Resources is offering 10 exploration blocks in • 12 calibrated wells with legacy A minimum of six offshore wells offering 10 exploration blocks in the Red Sea close to established data (11 with logs) are expected to be drilled in Ghana the Red Sea close to established hydrocarbon production. Closing this year. Exploration drillings

OFFSHORE VOL.9.3 • Interpretation of vintage data hydrocarbon production. date for submission of bids is are expected in licenses operated and literature pack Aug. 1. by Eni, Eco Atlantic Ghana, AGM 8 Egypt’s Ministry of Petroleum (including gravity, magnetics, Petroleum, Springfield E&P, and TGS is supporting seep, geological reports) Heritage/ Blue Star. the licensing • Integrated interpretation round by making State-owned GNPC, a partner at products of the RS18 seismic, available the the SDWT block, says it expects a gravity and magnetic data. following data: minimum of 100,000 bopd of oil, According to the company, the and 80 mm scf/d of gas production • 10,318 Egyptian Red Sea may contain by 2022 from the AGM-operated km (6,411 mi) 5 Bbbl of undiscovered but block. of Red Sea ’18 recoverable oil and 112 tcf of (RS18) 2D long- AGM holds 66 percent equity stake natural gas (based on findings offset broadband in the block, while GNPC owns the from a 2010 report by the US seismic, PSTM/ remaining 34 percent. Geological Survey). PSDM) EXPLORATION & PRODUCTION BP enters Gambia with exploration deal Ghana’s Government Centre for Settlement of Slams NDC over Investment Disputes. No resolution has been announced Shoddy Oil Deals in the case. African Petroleum said on Wednesday it “continues to reserve its rights in relation to the A1 license and will continue with its efforts to protect its interest” through arbitration. A spokeswoman for BP declined to comment on the arbitration proceedings and said it had won the license in a bidding round. • Dr. Amin Mohammed

• President Adama Barrow with BP officials A statement from the office The NPP-led administration in of Gambian President Adama Ghana has thrown down the gauntlet BP has signed a deal to explore majors from across the globe. Barrow quoted Jonathan with a scathing indictment of the for oil and gas off Gambia’s coast opposition NDC for slacking the The A1 block is one of two Evans, BP’s vice president in a potential economic boon for pace of oil exploration in Ghana. The that the Gambian government for Africa New Ventures, as the tiny West African country, government is blaming the NDC for stripped from Norwegian-listed saying the project would begin although another producer says the award of 13 licenses to companies African Petroleum Corporation with an environmental impact it owns the rights to the same that have failed to drill a single in 2017, saying the licenses had assessment, followed by two license. exploration well. expired and that the company years of drilling, exploration and BP was awarded the license had failed to meet contractual development of a first well. “None of the contracts they (NDC) to the A1 block, the Gambian obligations. African Petroleum estimated signed led to a discovery. All the government said, a deal which contracts that are producing oil were African Petroleum disputed the A1 and A4 blocks that it held comes as producers seek to signed under President John Kufuor. that and launched arbitration contained up to 3 billion barrels emulate oil and gas finds Those that they signed between proceedings in October 2017 of oil. It is not clear what the in neighboring Senegal and 2013 and 2016, 13 contracts were at the U.S.-based International estimate is for the A1 block alone. Mauritania that have attracted oil signed by them, the highest number of contracts ever signed by any government in Ghana,” declared Dr. Mohammed Amin, Deputy Minister Sierra Leone opens up most of offshore to explorers for Energy, Petroleum. The process includes two types “Under the 13 Petroleum of tender, a “direct tender” for Agreements, they were supposed to licence applications where 50pc have drilled 14 wells and spent $890 or more of the application area million. As I speak to you now, not is in water over 2,500 metres a single well has been drilled. They deep, and an “open tender” for all spent only $94 million out of $890 other licence applications-those million they were to have spent.” in relatively shallow water. PDSL said the division reflected the The NDC government was in fact that fewer companies would power when Ghana commenced have the financial and technical oil production in 2010. Some of capability to operate safely in the work delays may have been ultra-deep-water areas, making prompted by the protracted maritime a direct tender more appropriate border dispute between Ghana and for these. Ivory Coast but the exploration firms have refused to fulfill their The tender process was formally work obligations under Petroleum launched on 21 May and will run Agreements long after the dispute for six months for open tenders Sierra Leone has taken the A rethink by the new had been resolved and moratorium and four months for direct unusual step of opening up government, plus industry on offshore drilling lifted. tenders. Licences awarded by its entire offshore acreage to interest in acreage beyond direct tender could be awarded potential explorers. While it is the original five licensing The current government says it has before the closing date. being branded as a reopening areas resulted in suspension adopted “aggressive exploration” strategies to increase oil reserves of its fourth licensing round, it of the original round and a Applicants need to propose a

and to guarantee continuity of oil OFFSHORE VOL.9.3 is actually more of a complete new approach in a bid to win work programme for an initial production well into the future. revamp. investment. Explorers are now exploration period, following invited apply for licences in any which they will have the option 9 The fourth round was originally Reports reaching Offshore Africa part of the country’s offshore to enter an extension period. launched back in early 2018, suggest Energy Minister John waters, barring environmentally No minimum work programme when five deep and ultra-deep- Peter Amewu plans to revoke protected estuaries and a 5km specifications have been set water blocks covering more 15 exploration licenses by the coastal fisheries zone. for the initial period, but the than 31,000 km2 were offered. end of 2019 for failing to meet directorate said it expected However, the process was Applicants can make bids work commitments under signed companies to “invest in studies, complicated by the timing of the for licence areas of their own Petroleum Agreements. While some data and other activities that April 2018 presidential elections, choosing based on combinations of the licenses are expected to expire build toward the drilling of which resulted in a win for the of delineated blocks, each of and will not be renewed, others are exploration wells”. opposition candidate, Julius 1,360km2. said to have failed to pay annual ground rents and not delivered on Maada Bio. PE Briefing the drilling of mandatory exploration wells. EXPLORATION & PRODUCTION Ghana’s First Licensing Round was a Tough Sell il industry watchers exploration technology to work are pondering the in Ghana at this time weighed rather modest against Ghana’s first bid. O “The truth is that nobody wants results from Ghana’s first oil licensing round. Only to take up a block requiring you to drill an exploration well within three companies (Eni, a relatively short period that Tullow Oil and First E & could cost you more than $100 P) applied for two out of million when you are not fully the three blocks on offer. A certain what to expect on the third block received no bid. block,” a senior oil executive told Offshore Africa in Accra. While some analysts have But other senior Ghanaian described the exercise as very officials disagreed with the disappointing, others called it presumption that inadequate a mixed outcome. “Our basins data derailed what looked bidding. What does that tell with the Ghanaian government are not de-risked, significant like an exercise heading for you? They don’t want to follow for Blocks 5 and 6. Latest data gaps and low data quality great success. ”Most foreign due process and a transparent reports reaching Offshore still exists and many companies companies are used to walking system. It has nothing to do with Africa say ExxonMobil and BP continue to cite our fiscal regime to the Ministry and picking up inadequate data and everything may have dropped out of the as disincentives. The result of oil blocks. They just get the to do with oil companies wanting companies interested in the two Ghana’s first licensing round, blocks without showing any to do things their own way,” the ultradeepwater blocks. although not satisfactory, in commitment to develop them. highly-placed source said. terms of the response rate, has Top Ghanaians officials are That is why we have 14 licensed confirmed the fears about a To make the next licensing hinting at reviewing Ghana’s blocks sitting idle today,” a developing industry and the risks round more compelling, some attractive fiscal regime to make highly-placed official told associated with frontier areas,” industry watchers are suggesting it even more attractive following Offshore Africa. declared Energy Minister John that licenses for 13 blocks, for the licensing round fiasco. But Peter Amewu. He was convinced that the which no exploration has been analysts say such a move must insincerity of exploration and implemented, should be revoked not be done in a hasty manner. An oil and gas executive in production companies, and and made available for bidding Accra agrees with the minister’s Ghana currently produces not the lack of quality data, under a new licensing regime. assessment, but said the lack approximately 200,000 bpd oil, contributed to the disappointing of quality data was not the only Some 16 companies, including with the Jubilee field producing outcome. ”And what do they drawback. He cited onerous global majors such as Total, close to 100,000 bpd. The West mean by lack of quality data? It is work programme requirements Eni, ExxonMobil, CNOOC and African nation is positioning the same data available for blocks which did not meet investment Equinor, applied for Ghana’s itself to be the petroleum hub in 2,3,4 that is available for blocks 5 criteria of oil majors and the fact oil blocks. And while only three the region and projecting a long- and 6, yet 16 firms have applied that only a few international oil companies have submitted bids term production of about one for blocks 5 and 6 through direct companies have ultra deepwater for Blocks 2 and 3, 16 firms million barrels per day. negotiations and not by open have filed for direct negotiations African Energy Chamber Ivory Coast extends four oil Hosts Roadshow for field awards to Total and Eni Equatorial Guinea’s Oil Oil giants France’s Total CI-501 and CI-504. and Italy’s Eni which holds Investment will total $185 substantive exploration blocks Licensing Rounds in China million, including $90 million in Nigeria have continued their from Total and $95 million from divestment across Africa with The African Energy Chamber The forum in China will ENI during the exploration Ivory Coast awarding four new will host an investment forum showcase 27 blocks on offer period, he said. in Beijing on 2-3 July 2019, under the 2019 Oil & Gas offshore oil and gas blocks with a focus on giving Chinese Licensing Round, including two to Total and two to ENI, Ivory Coast’s Petroci Holding and Asian investors access to blocks EG-23 and EG-27 (former government spokesman Sidi would retain 10 per cent of the OFFSHORE VOL.9.3 Equatorial Guinea’s EG Ronda Block R, which contains the Toure said on Wednesday. consortium on each block, he said. 2019 Licensing Rounds for oil giant Fortuna gas find) for Ivory Coast, the world’s top cocoa 10 and gas and mining. The forum appraisal development and 25 producer, is seeking to develop Source: Oriental News will be held at the Kempinski other blocks for exploration. it’s long-neglected oil sector. Hotel Beijing Lufthansa Center. It will also present Chinese companies with the opportunities “The government adopted “This forum in China is central to to explore Equatorial Guinea’s a communication regarding Equatorial Guinea’s strategy of mineral resources, especially talks on four contracts attracting a variety of investors in the Rio Muni area in the to share production with and companies to explore the country’s Littoral Province. companies Total and ENI,” country’s oil and gas and mineral While unexplored, the area holds Toure told journalists. resources,” declared H.E. Gabriel vast potential in mineral deposits Total will operate offshore Mbaga Obiang Lima, Minister of such as gold, diamonds, base blocks CI-705 and CI-706, Mines and Hydrocarbons. metals, iron ore and bauxite. while ENI will operate blocks takes place in close dialogue with the Petroleum Commission President Akufo-Addo received Maersk Drilling to support the Ghanaian government’s Accelerated Oil and CEO for conversation about Ghana’s oil future Gas Capacity Building Program. Committed to local development To Maersk Drilling, a successful operation is one that brings n 30 May, President Nana Addo Dankwa without endangering the integrity high value to both the company, Akufo-Addo received the Chief Executive of the drill string. its customer, and the country Officer of the Danish offshore drilling Due to the time constraints of it operates in. The company is O the campaign programme, the proud to take part in building the company Maersk Drilling, along with Maersk Akoma exploration well had to Ghanaian oil and gas industry Drilling’s joint-venture partners from PMD Viking be scheduled during the most by transferring the skills and Ghana Ltd., for an open-minded conversation about challenging season for drilling, knowledge needed to match with high sea currents (up to 3 the capabilities of other oil- the promising future of Ghana’s oil and gas industry. kts) and strong squalls (up to 60 producing nations. kts). Still, the station-keeping Since entering Ghana in 2015, via Dynamic Positioning did not Maersk Drilling has continuously cause any downtime at all for increased the number of Maersk Voyager. Ghanaian employees, both on- The record-breaking operation and offshore. By the end of 2018, was made possible by an Maersk Drilling employed a total outstanding performance from of 352 Ghanaian nationals. This all departments of the Maersk equated a share of 54% of the Voyager crew, which included company’s total employees in 57% Ghanaian nationals. Ghana across both onshore and offshore teams. Throughout its stay in Ghana, the Maersk Voyager has provided Choosing local suppliers Eni with a dramatic increase first in operational output via Maersk Drilling’s policy is to continuous review of procedures, use local suppliers whenever possible, and the company The Maersk Drilling CEO, Mr. the Copenhagen stock exchange. further enhanced by performance always focuses on building and Jorn Madsen, was honored leaders on board the rig who have developing a strong local vendor to be granted audience by the In 2015, Maersk Drilling facilitated cohesive cooperation base for the many services President and emphasized the commenced operations in Ghana between the teams. The high- required to support a drilling rig. need for continuous dialogue for the first time when ultra- level capabilities of the Maersk deepwater drillship Maersk with authorities to facilitate Voyager crewmembers is further With three drillships operating Voyager came to the country to cooperation and identify further proven by the fact that the rig in Ghana, Maersk Drilling’s work for Eni on the Cape Three opportunities to create better was recently awarded the 2018 local procurement has increased Points project. value for both business and Eni Safety Award from a very substantially. In 2019, the satisfied customer. society. Mr. Madsen shared Maersk Drilling has since company has so far placed orders his thoughts on the oil and expanded its presence in Ghana, Transferring skills to the with 88 different Ghanaian gas industry’s prospective and during 2018 and 2019, a total Ghanaian oil industry suppliers. One of the local contribution to Ghana’s economy of three high-tech drillships have To further strengthen the suppliers is Energem who have and prosperity, the development been working for the company’s development of oil and gas- expanded into new business of the industry under the strong customers in Ghanaian waters. related skills and knowledge areas since entering into a guidance of the Petroleum Simultaneously, Maersk Drilling in Ghana, Maersk Drilling has relationship with Maersk Drilling Commission, and Maersk has also built up its onshore invested in a number of capacity- in 2015. Drilling’s commitment to Ghana. presence, choosing Accra as building initiatives. “The Maersk Drilling leadership the location of its main office in The audience also included a and operational teams have Africa. In the beginning of 2019, the discussion of the cutting-edge company launched a three- played a critical part in the technology needed to get to the Outstanding operational month training program, evolution of Energem as a oil under challenging deepwater results offshore Ghana “Training Bright Minds”, for 20 major oilfield services company conditions, such as those found The skills and knowledge brought young Ghanaians who had just in Ghana,” says Kunle Nubi, offshore the Western Region of to Maersk Drilling’s Ghanaian completed National Service. Executive Chairman of Energem. Ghana. operations is evident in the The purpose is to equip new In addition to the various success of its drillships. Most A leading global drilling graduates with the necessary service vendors, Maersk Drilling recently, Maersk Voyager set the contractor born out of skills to work in the sector, and has invested in several joint record for the shallowest water OFFSHORE VOL.9.3 Maersk two of the participants have ventures in Ghana. The latest depth ever drilled by a Maersk Founded in 1972, Maersk Drilling already won jobs with two joint-venture partnership is Drilling drillship when it drilled was originally part of the Maersk different companies. PMD Viking Ghana Ltd. which 11 the Akoma exploration well at Group, and the company is supports the Maersk Viking only 350m depth in April 2019. Another example is the solidly based on the Maersk company’s cooperation with the drillship with a wide range of values. However, as part of the For a drillship, working at low Kwame Nkrumah University locally sourced services including Maersk Group’s decision to focus water depths is very challenging. of Science and Technology in recruitment and training of on shipping and logistics, Maersk The ship must constantly be Kumasi to complement the crewmembers. Drilling was demerged in April kept in place by its Dynamic skills of their instructors and 2019, and it is now a stand-alone Positioning thrust system, and enable the university to offer company which operates 23 when drilling at 350m depth, the international certifications within offshore rigs around the world ship cannot move more than 4m offshore drilling. This initiative, and is independently listed on out of position on the surface which is still in its early stages, LOCAL CONTENT

Indigenous Oil Companies Risk PETROLEUM COMMISSION announces Local Content Plans GRA Crackdown for Fronting for Pecan Field Development

• Ghanaian oil and gas executives pstream petroleum regulator, the Petroleum Commission, says it is working with the UGhana Revenue Authority (GRA) to check the increasing cases of indigenous companies fronting for foreign firms in the oil and gas sector.

“We are collaborating with and tell you that they own 51 the Ghana Revenue Authority percent of that company. That (GRA) to check the incidence is a joke.” of fronting,” disclosed Kwaku Boateng, Director for Local The Commission, according to Content at the Petroleum Mr. Boateng, encouraged the Commission. “We expect that if a formation of joint ventures as a Ghanaian company tells us that it vehicle to transfer knowledge and has 51 percent in a joint venture skills to Ghanaians. As a result, (JV), then when the JVs make the two entities in the JV were money we expect you to get 51 expected to execute different percent and that should reflect in aspects of their contracts. “But because the foreign partner, no Ghana’s Petroleum Commission which means the impact was your books, for the GRA to see, has outlined the local content not substantially felt in Ghana. and you will have to pay taxes matter its shareholding is the senior partner in the JV, a lot component for the Pecan from the profits. So very soon the development and production “The limited capacity of local GRA will be combing through of the services are done by the company to meet industry foreign partner,” he noted. “So project driven by field operator your books, particularly those Aker Energy. standards is one of the major fronting.” almost all the JVs that I have hurdles. Actual exploration seen, I am yet to see a JV that has The Commission is currently happened over 10 years ago,” Under the local content law, made a profit for them to share studying the local content noted Kwaku Boateng, the PC’s indigenous Ghanaian companies with an indigenous company.” component of the Pecan Plan of Director for Local Content. “So enjoy certain priviledges and Development (PoD) submitted in every respect the industry advantages, and Mr. Boateng The Commission says it has set up an electronic portal to by Aker Energy at the end of is still very nascent in Ghana is acutely aware of fronting March 2019, but the upstream and therefore a number of by indigenous firms. “A small upload details of upcoming contracts and procurement plans petroleum regulator is clear Ghanaian companies have not Ghanaian firm with two or three as to the level of Ghanaian been able to build the technical people will form a joint venture of international oil companies (IOCs), which will be accessible participation in the project. capacity to participate in more with a foreign company with sophisticated contracts.” market capitalization of about to all Ghanaian companies at the “Per the Pecan development $20 billion. And they will come same time, to ease the challenges plan, we expect an increased Limited access to credit or high of information asymmetry. level of in-country activity, cost of funding for Ghanaian especially in the area of companies is also a major fabrication. We envisage that impediment. According to once the PoD is approved Mr. Boateng, most Ghanaian and the local content plan is companies borrow up to 30 NUPENG lauds president on approved; among some of the percent interest rate, while their modules that will be fabricated foreign counterparts borrow at EO5, seeks jobs creation here in Ghana by Ghanaian five to eight percent. firms include flare modules, module stools, laydown Breaking down contracts modules, and suction piles. in the upstream sector to Also under consideration is a make it easier for indigenous The Nigeria Union of Petroleum to foster value addition in major topside module-proposal companies to compete remains and Natural Gas Workers the nation’s human capital for helideck, flare stack, a big challenge. “Typically, the (NUPENG) has commended development and utilisation of accommodation module etc. average contract in the industry President Muhammadu Buhari material resources and services. is about $20 million, $15, $10 for signing Executive Order (EO) Some industry watchers say million. But these contracts 5 to improve local content in the It also appealed that the the local content plans for the are beyond the capabilities of OFFSHORE VOL.9.3 country’s public procurements. application of local content development of the Pecan field small Ghanaian companies and law should be geared towards are rather very modest. The therefore when the contracts are 12 Its President, Williams the creation of decent jobs for Commission says about $20 bundled, many small Ghanaian Akporeha, also applauded Nigerians. billion had been spent in the companies find it difficult to Buhari for the order, which seeks upstream petroleum sector actually bid and succeed.” NUPENG argued that application of science, technology in Ghana in the past decade. casualisation of jobs in Nigeria, and innovation to achieve the Another $20 billion is envisaged The Commission has especially in the oil and gas development goals in all sectors to be invested in Ghana’s fast established a Business Advisory industry was appalling and of the nation’s economy. developing oil and gas industry Unit to help indigenous disturbing in view of the high over the next six years. Ghanaian companies with The union, however, urged expectations and premium it overcoming some of their Buhari to ensure that all relevant placed on the Nigeria Content The speculation is that a greater teething and operational agencies are compelled to Development and Management portion of those in-flows went problems, as well as build their implement the new Executive Board (NCDMB) since its to foreign services companies, capacity. Order without delay so as creation. LOCAL CONTENT Rigworld, Maritime University partner to train students on IMO regulations

igworld Training the training program include Centre (RTC), an Elementary First Aid, Personal indigenous Ghanaian Survival Techniques, Personal R Safety and Social Responsibilities company has signed an as well as Basic Fire Prevention accreditation partnership and Fire Fighting. with the Regional Maritime Others are International Ship University (RMU) to train and Port Facility Security personnel on International Code, Oil/Chemical Tanker Maritime Organization Familiarization, Efficient Deck (IMO) regulations. Hand, Lifeboat, Proficiency in Survival Craft Rescue Boat, Under the accreditation Radar/ARPA Simulator Training partnership, the two parties as well as International Safety will collaborate for the training Management. of people on IMO mandatory short courses hence issue two The RMU is an international certificates; one jointly signed institution owned by the by RTC and RMU and secondly Republics of Cameroon, The solely signed by the Ghana Gambia, Ghana, Liberia and Maritime Authority, certificate Sierra Leone under the Maritime of competency from Ghana Organization of West and Central Maritime Authority. Africa (MOWCA). The partnership was signed by The RTC on the other hand Professor Elvis Nyarko, Vice is an indigenous Ghanaian Chancellor of the RMU and Kofi company accredited by various Amoa-Abban, Director/Owner international bodies to train of RTC. people and students in safety and survival skills in the oil and gas • Dr. Kofi Abban, CEO/MD of Rigworld Group Among some of the courses industry here. that would be offered as part of

Oil exploration and production Tullow Says Indigenous Companies company, Tullow Oil, says it awarded contracts worth $16 billion in Ghana over the past Awarded $10 billion Contracts decade, out of which $10.6 billion went to indigenous Ghanaian companies and joint ventures (JVs). “Over the last 10 years, contracts totaling $10.6 billion have been awarded to indigenous Ghanaian companies and JVs in which Ghanaian companies are partners,” announced Kweku Awotwi, Executive Vice President at Tullow Ghana at the at recently-concluded Offshore Technology Conference in Houston, Texas. Tullow Ghana says it had

reserved specific contracts for OFFSHORE VOL.9.3 Ghanaians operating in sectors such as technical services, logistics 13 and materials, procurement, communication, security and marine services. According to Tullow Ghana’s Local Content Manager, Jennifer Bruce- Konuah, the firm intends to award 80 percent of its contracts in 2019 to Ghanaian companies. Tullow Ghana produces oil and gas from two offshore fields.

• A Tullow offshore worker SPECIAL FEATURE Busch Vacuum and Overpressure Blowers – World Leading Technology, Servicing the Whole of Africa

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Awotwi named Executive Vice Eni: Alessandro Puliti new President for Tullow Chief Upstream Officer

Kweku Andoh Awotwi

Kweku Andoh Awotwi, Managing This reflects the materiality Director of Tullow Ghana (TGL), and importance of TGL within has been promoted to Executive Tullow and underlines the Vice President of Tullow Oil Group’s long-term commitment plc, following a re-organisation to Ghana. As an Executive Vice- of the Group structure. The President, Kweku Awotwi is now lessandro Puliti has been appointed Eni’s new Tullow Ghana Business, which a member of Tullow’s Executive was formerly part of Tullow’s Team, which has oversight and Chief Upstream Officer. Starting in his new West Africa Business, is now a responsibility for Tullow’s global role on September 1st, 2019, he will replace standalone business under the operations. Mr. Awotwi will also A new Group structure. retain full oversight of Tullow Antonio Vella, who will leave the Company at the end of the year, after a career spanning over more than Ghana. 30 years. South Sudan Appoints Alessandro Puliti has a solid then, he has held positions Mita-Teknik’s professional experience, built of increasing responsibilities New Oil Minister over the years, in Italy and within the Upstream business, abroad, handling diverse and both in regional management new CEO Klaus highly complex situations. Eni – as Managing Director in key is confident that he will lead the countries such as Egypt and Knudsen development of the Upstream Norway – and in headquarter department with effectiveness strategy, in departments such as Mita-Teknik’s new CEO Klaus and passion, contributing Reservoir and Drilling. Knudsen has announced his to reaching the Company’s new strategic vision for the ambitious targets in the area. In September 2018, he was company. This year, Mita-Teknik, appointed Chief Development, a company that pioneered Over the last five years, Antonio Operations & Technology Officer. wind technology since the early Vella has strengthened Eni’s eighties, celebrates its 50th Upstream activities, in spite of Alessandro Puliti holds a degree anniversary. With Knudsen in in geology by the University of the challenging market situation. the top job, the Danish turbine Awow Daniel Chuang Milan, and has graduated from control solution specialist is Who is Alessandro Puliti Eni’s Master’s programme in gearing up to embrace the Awow Daniel Chuang has been Energy and Environmental challenges of the coming decade. Born in Florence in 1963, Economics (MEDEA) at the appointed as South Sudan’s he joined Eni’s Reservoir Enrico Mattei school. Strategically, the company Minister of Petroleum and Mining department in 1990. Since will focus on three main areas following a cabinet shuffle by H.E. as engine of its growth. First, Salva Kiir Mayardit, President of Mita-Teknik will continue to the Republic of South Sudan. push its partnership approach, a Formerly serving as Director core value that has determined General for Petroleum at the Daniele is head of Eni Ghana the company’s success for half a Ministry, Awow Daniel Chuang century. It will strive to secure precedes outgoing Minister H.E. oberto Daniele is seamless team integration with

OFFSHORE VOL.9.3 Ezekiel Lol Gatkuoth, who served as a view to ensuring smooth the new Managing Minister of Petroleum and Mining project flows and making Director of Eni for three years. 16 R partnerships as efficient as they Ghana. He assumed the can be. This approach goes The Ministry of Petroleum and role a few months ago both for established customers Mining plays a critical role in the following the transfer of and partners within the wind economy of the East-Central African his predecessor Giancarlos segment, but also for the country, which derives nearly all Ruiu. company’s new industry segment, of its government revenues from which can use Mita-Teknik as an oil. Total oil production currently Mr. Daniele previously headed outsourcing partner for control stands at approximately 180,000 Eni operations in Venezuela and panel production, as well as barrels of oil per day (bopd), with assumes his new posting at a benefit from their know-how the government aiming to reach time Eni’s assets in Ghana are within control, SCADA and 350,000 to 400,000 bopd by mid- growing. monitoring. 2020. OIL & GAS PEOPLE

Billions at Play: N.J Ayuk Writes New Book about Africa’s Oil and Gas throughout the continent. Now petroleum resources, American he’s writing a book that explains investment in Africa oil and gas how it can be done. in the era of President Trump, The book, “Billions at Play: local content, addressing energy The Future of African Energy”, security concerns, new African which is slated for release in gamechangers, and the value October 2019, will be packed with African countries achieve by captivating, useful ideas, stories, participating in The Organization NJ Ayuk examples and information of the Petroleum Exporting that Africans can use to take Countries (OPEC), among others. command of their future, from Ayuk says that one of his main The book, “Billions at Play: The new oil revenue management goals for writing the book is Future of African Energy”, will models, gas to power, to the to inspire a healthy dialogue be packed with captivating, deal-making techniques and about the future of the African useful ideas, stories, examples behind the scene strategies that energy industry that is seeing and information that Africans Ayuk has successfully employed new changes in Nigeria, can use to take command of their with multinationals and African Senegal, Ghana, Kenya, South future governments. Sudan, Algeria, Uganda, Congo, Centurion Law Group’s Founder Equatorial Guinea, Cameroon, Additional topics covered in the Aiteo announces and CEO NJ Ayuk has been Gabon, South Africa, Angola, book include the importance saying for years that Africa’s Libya, Niger, Congo, Chad, of including women in oil and oil and gas resources can fuel Mauritania, Tanzania and many Senior Leadership gas leadership, monetizing socioeconomic revitalization other new players. Appointments Geological Survey Agency before Mele Kyari: The new joining the NNPC subsidiary, Aiteo has restructured its Integrated Data Services Limited executive management, head of Nigeria’s oil (IDSL), where he worked as naming a number of critical a Seismic Data Processing appointments and reassignments giant, NNPC Geophysicist in the Data Following a review of its Processing Department. operational and investment President Muhammadu Buhari In 1998, Mr Kyari was appointed objectives and in reaction has confirmed the appointment the Exploration Geophysicist to prevailing business of the Group General Manager, Production Sharing Contract environment, Aiteo has Crude Oil Marketing Division (PSC) of the National Petroleum restructured its executive (COMD) of the Nigerian National Mele Kyari Investments Management management, naming a number Petroleum Corporation (NNPC), Services (NAPIMS) until 2004 of critical appointments and Mele Kolo Kyari, as the new With over 32 years of experience when he became the Abuja reassignments. Group Managing Director of the in the oil and gas industry, his Operations Manager of NAPIMS. corporation. tour of duty traversed the entire Mr. Chike Onyejekwe, the pioneer value chain of the petroleum In 2006, he was appointed Managing Director of Aiteo E & P Mr Kyari from Borno State, industry. the Supervisor PSC, Crude Oil Limited will be retiring from the succeeds the incumbent GMD, Marketing Department (COMD) company. Mr. Onyejekwe will be Maikanti Baru, who retired from A 1987 Bachelor of Science of the NNPC, from where he rose replaced as Managing Director the NNPC in July. (B.Sc) degree holder in Geology to the position of Head, and later by Mr. Victor Okoronkwo. and Earth Science from the Mr Kyari comes to the job as the Manager of Production Contracts Currently Senior Vice President, University of Maiduguri, Mr 19th GMD of the NNPC with a Management of the COMD Commercial & Gas for Aiteo E Kyari did his National Youth rich profile of professional and between 2007 and 2014. & P Limited, Okoronkwo brings Service Corp (NYSC) as a service credentials. over 30 years of Oil and Gas Well Site Geologist with the Mr Kyari was appointed General experience to this position. Prior A geologist, Mr Kyari is known Directorate of Foods, Roads and Manager Oil Stock Management, to joining Aiteo, he worked in in the oil industry as a crude oil Rural Infrastructure (DFRRI) COMD where he worked till various leadership capacities with marketer with outfield pedigree between 1987 and 1988. 2015 before being appointed the Shell Group in Nigeria and in petroleum economics and Group General Manager, COMD abroad as General Manager. Between 1988 and 1991, he crude oil and gas trading. and later Nigeria’s National worked with the Nigerian Representative at OPEC.

Algerian interim President appoints new Sonatrach CEO OFFSHORE VOL.9.3 17 lgeria’s interim Creating uncertainty for investors and oil production. looking to re-enter the country’s President, Abdelkader “Chevron is a big company and Bensalah, has oil and gas sector, the news of A Kaddour’s replacement raises we are happy to have it here appointed Sonatrach’s concerns on the progression of with us in Algeria as it will bring Head of Production and Sonatrach’s ongoing deals. know-how and expertise,” said Exploration, Rachid Kaddour last week. Kaddours replacement follows Hachichi, as the new CEO The news of Rachid Hachichi’s of the state-owned oil giant, Sonatrach’s announcement last week that it would hold talks with appointment falls in line with the replacing Abdelmoumen Chevron this week, to discuss a Algerian interim government’s Ould Kaddour. possible partnership on shale gas recent reshuffles as it aims to gain public support. Rachid Hachichi NEWS

Africa’s Oil Ministers Meet in Cape Town to Discuss Future of Energy Industry IEA Cuts Oil At least eighteen Ministers from Africa’s largest energy producing nations, including countries such Demand Growth as Nigeria, Equatorial Guinea and Tunisia among others, have agreed to meet in Cape Town at Africa Oil Week (AOW), taking place from Forecast Again 4-8 November 2019 to broker new partnerships for their energy by Andreas Exarheas sectors. he International The ministers will be using Africa Energy Agency Oil Week Summit as a platform now sees global to discuss national strategies, T sovereign competitiveness, issue oil demand growth at 1.2 licences and finalise tenders. With million barrels per day in pressure growing on Sovereigns 2019. to develop attractive operating environments, the ministers will The International Energy Agency be detailing their hydrocarbon (IEA) now sees global oil demand strategies to an audience of 1500+ growth at 1.2 million barrels per senior executives from the entire • HE Irene Muloni, Minister regulatory environment for the day (MMbpd) in 2019, according upstream value chain, including of Energy and Mineral energy sector. to its latest oil market report. NOCs and IOCs, Independent Development for Uganda. Operators, the Geoscience The figure marks the second In 2018, Uganda hosted a • Hon Dr Emmanuel Ibe community, Service Companies consecutive cut to the roadshow at Africa Oil Week Kachikwu, Minister and EPCs and the investment organization’s oil demand to showcase the country’s of State for Petroleum community. growth forecast, following a “proven oil and gas reserves Resources, Nigeria. Nigeria In 2019, Ministers in attendance decrease from 1.4MMbpd which constitutes close to 12% is Africa’s largest oil producer will include: to 1.3MMbpd in May. Last of world oil production”. This and exporter; however it also has large gas reserves up for month’s alteration was the first • Hon Slim Feriani, Minister year she will be expanding development, attracting interest change to the IEA’s 2019 demand of Energy for Tunisia, who on this theme with an update from local operators such as outlook for several months. will be joining the government on the country’s most recent Seplat and Oando who are speaker line-up for the first petroleum exploration project. “The consequences for oil sponsoring Africa Oil Week in time in AOW’s history. Though demand are becoming apparent,” • HE Gabriel Mbaga Obiang 2019. Don’t miss updates from Tunisia is well known for oil the IEA said in a statement Lima, Minister of Mines, the minister on Nigeria’s most production, Feriani recently posted on its website on Friday. Industry & Energy for exciting exploration projects announced that the nation Equatorial Guinea. Famous and policy developments. “In 1Q19, growth was only is planning to double its gas for its offshore crude oil fields, 0.3MMbpd versus a very strong production this year from Equatorial Guinea produces Alongside those already 1Q18, the lowest for any quarter 35,000 barrels of oil equivalent roughly 13.5 million tonnes mentioned, ministers from Ghana, since 4Q11. The main weakness to 65,000 when the southern of crude oil per year, with 149 South Africa, Republic of Congo, was in OECD countries where Nawara gas field comes million tonnes recoverable oil Central African Republic, Djibouti, demand fell by a significant onstream in June. He will be reserves. Catch this session at Burkina Faso, Guinea, Gambia, 0.6MMbpd, spread across all providing more details on the AOW to learn more about the Mali, Zambia, Rwanda and Chad regions,” the statement added. status of Tunisia’s oil and gas country’s attractive policy and will also be speaking at the event. resources at AOW 2019. “There were various factors; a warm winter in Japan, a slowdown in the petrochemicals industry in Europe, and tepid Somali Petroleum Law close to full approval gasoline and diesel demand Somalia’s federal government has “Production-sharing agreements The design of the survey, over in the United States, with approved a new Petroleum Law can now be signed, wherein the water depths ranging from 30- the worsening trade outlook and Revenue Sharing Agreement. first phase will involve planning 4,000 m (98-13,123 ft), is said to a common theme across and mobilizing to acquire seismic have allowed for seismic coverage all regions,” the statement According to Spectrum Geo, this data and the drilling of exploration over the shelf, slope and basin continued. ratifies the terms outlined in the wells over 2020 and 2021.” floor with dip, strike and recording country’s first offshore licensing Looking at next year, the time intervals suitable for defining round, which was launched in Spectrum undertook acquisition various leads and prospects. IEA revealed that global oil February and is due to close on and processing of 20,185 km demand growth could recover to Nov. 7, 2019. (12,542 mi) of 2D long-offset 1.4MMbpd.

OFFSHORE VOL.9.3 seismic data to support the President Mohamed Abdullahi round. The data Mohamed Faramaajo should soon 18 was acquired sign the 2019 Petroleum Law into following a effect, having received support cooperation from all the federating Somali agreement with states. the federal Minister of Petroleum & Mineral government Resources, Abdirashid Mohamed of Somalia Ahmed, said: “The Ministry has and is said to worked successfully with the complement federal member states to develop 20,500 km an equitable and transparent (12,738 mi) of framework to develop natural existing seismic resources… data shot in 2014.

FEATURE

TAKORADI PORT: THE BRIDGE SERVING THE OIL AND GAS INDUSTRY

ince 2007, when Ghana discovered oil and gas in commercial quantities in has been set up to offer essential supply of drill and potable water two fields off Cape Three Points, the Port of Takoradi added a further string for offshore drill campaigns and Sto its bow by positioning itself as the hub of Ghana’s offshore oil and gas for the Port’s commercial use. industry. The Port has committed itself to providing timely and cost-efficient The Port of Takoradi has also services to the existing and new operators The recent entry of Aker Energy Ghana leased space to Belmet 7 for a Ltd and its successful drill find of oil at its Pecan field in commercial quantity, fabrication yard specializing in fabrication of subsea and has lent credence to, and further strengthens the foundation for the realization of complex structures for Ghana the Port’s stated vision “To Become a World-class Port, The Dominant Oil & Gas and beyond. The facility has Services Hub of West Africa”. direct access to a 200-meter quay and equipped with 400ton The Pecan South-1A well drilled Firstly, on the back of a major Also, GPHA in partnership and 220-ton crawler cranes by Aker Energy Ghana Ltd private sector involvement with Viking Offshore since capacities to support loading contains estimated “total reserves through PPP arrangement 2012, Viking Offhsore, has been and offloading of large and of 334 million barrels of oil, and with BAJ Freight & Logistics, operating a dedicated one-stop heavy structures and transport plateau production of 110,000 construction of an open storage berthing facility to support oil of heavy cargo to and from barrels of oil per day. Production area for oilfield plant and and gas supply vessels (OSVs). vessels and barges. The facility is from the field is expected to last machinery has been completed. At the facility, OSVs can receive also equipped with heavy plate for more than 25 years. The area BAJ Freight & Logistics has cement, liquid mud, drill water rolling machine DAVI MCB N-30 holds discovered contingent developed a leased land into lay and marine diesel supplies, and with a rated 3000mmx70mm resources (2C) of 110-210 down areas for pipes and other offshore waste management – typical maximum wall 50mm million barrels of oil equivalent equipment inside the port. In can be handled. Additionally, with additional capability to (mmboe), combined resulting fact, currently, ENI’s US$6 a RO desalination Plant with fabricate piles of 24-meter height in an estimated volume base of billion oilfield project is being production capacity of 1,848 and 4-8-meter diameter (ibid). approximately 450–550 mmboe. supported from that BAJ Freight metric tons and a storage This Belmet 7 facility at the Total resources in the area & Logistics open storage area. capacity of 1,662 metric tons port has enabled huge savings have the potential to increase Additionally, the Port has leased in the procurement of undersea to between 600-1000 mmboe”. out about 31,000 square meters This together with Tullow Oil’s also to BAJ Freight & Logistics to current net production of 95,000 develop into an additional open

OFFSHORE VOL.9.3 bopd and expected to rise to lay area for material storage and 100,000 bopd as additional a free zone enclave, a 10,000sq 20 Ghana wells come on stream, metres enclosed warehouse, is not only good news for the and a 2000-5000sq metres companies but also the Port fabrication area for the oil and of Takoradi; not least because gas industry. The warehouse is it ties-in with the strategic currently about 90% complete measures put in place by the and is scheduled to complete Management of Ghana Ports and by the end of July 2019. Harbours Authority (GPHA) to Construction of the lay area and support new entrant-operators fabrication area will commence like Aker Energy Ghana Ltd and by end of the third quarter of existing operators like Tullow Oil 2019, all things being equal. in Ghana’s oil and gas industry. FEATURE equipment due to the fabrication of 3,232 MT of various types of undersea equipment for Tullow and Yinson such as sleepers, pipe walking piles, subsea structures, grillage and IA, Manifold, to support operations both at Jubilee and TEN oil and gas fields which hitherto would have been imported from abroad at huge cost. Also, through a PPP arrangement between GPHA and Prime Meridian Docks, a world-class repair and maintenance facility for oil rigs and ships is being built. This will be the newest and most modern repair and maintenance facility in these parts of West Africa, consisting of a 330-meter pier, a floating dock and an industrial workshop to cater for the needs of the maritime transportation, fishing and offshore oil and gas industries. The pier is being a significant increase in ship calls The Future themselves to development of situated within the harbour basin at the port, notably by offshore this terminal. In view of this development, which is an extension of the supply vessels (OSVs). As a discussions are currently Against the backdrop of the dredging wharf to accommodate percentage of total ship calls, the underway to secure a private above implemented strategic the floating dock. It will have proportion of OSV calls has risen partner for the construction measures, the Management of an LOA of up to 200 metres, from 11 per cent in 2007 to 63 of a 600metre quay wall and the Port of Takoradi will continue width of 35 metres and lift per cent in 2018 with the highest development of the basin of to partner with all the players capacity of 10,000 tons. Prime figure – 1,798 or 65 per cent the old port, and specifically in the Oil and Gas supply chain Meridian Docks will provide – recorded in 2011. Statistics the former cocoa wharf, into an to deliver cost-efficient services ship owners with a cost effective show that since 2009, over 50% oil and gas terminal. This will and logistics. Thus, operators option for both planned and of all vessel calls at Takoradi involve reclaiming 28 acres to in the oil and gas industry can unplanned maintenance, repairs, have been OSVs. Indeed, the add to the former cocoa wharf confidently look up to the Port inspection and re-certification, ongoing expansion of the Port is to provide a total land area of of Takoradi as a one-stop shop modifications and refits. The now enabling it to service oilfield 200,000 square metres. When for all their maritime logistics, facility will support offshore supply vessels from Liberia and completed, this facility will storage, transportation and project mobilization, as well Sierra Leone which use it for the have a depth of -10.0 metres maintenance and repair needs. as asset preservation, lay-up/ storage of drilling chemicals, chart datum and will be able Indeed, the Port of Takoradi stacking and reactivation. The pipes and other machinery for to accommodate six OSVs. All has become the most important installation of this facility means their operations. Due to the things being equal, construction facility in Ghana’s oil and gas that ships will not have to go all superior operational efficiency will commence soon. Already, industry and it continues to get the way down to South Africa for levels at the Port of Takoradi, major companies such as better. the abovementioned services. coupled with facilities available Tullow, Shlumberger, Bolloré Significantly, the company holds in Takoradi, it is the much Africa Logistics, M-I SWACO Free Zone Enterprise status, preferred option by the oil and and Conship have committed enabling it to offer customers gas industry operators. competitive pricing and most efficient service delivery, due to the minimal customs procedures for importation of spare parts. Already, a GOIL tank farm project located inside the port for storage of marine gas oil, with capacity of 13.5 million liters has been completed. Since its commissioning in April 2017, it has enabled the Port of Takoradi to render bunkering services to supply vessels that call at the OFFSHORE VOL.9.3 port. 21 In all, 78,000 square metres of port space has been leased out to oil and gas companies, which are able to reduce their logistics costs by operating from Takoradi Port. Oil Blessings The discovery of oil in Ghana has been a blessing to the Port of Takoradi. Since the oil and gas discovery in 2007, there has been ENVIRONMENT Environmental Impact of Oil Requires Honest Officials, Nana Addo

• President Akufo Addo and Norwegian PM Erna Solberg The Ghanaian government plans to exploit bauxite deposits in parts of Eastern region amidst protests by environmental groups that the project could lead to massive environmental degradation. The Ghana Integrated Aluminum Corporation (GADEC) estimates that Ghana’s bauxite reserve in the area is about one billion metric tonnes. The government has reportedly signed a $2 billion barter deal with Sinohydro Group, a Chinese company. The bauxite deposit is estimated to be valued at $400 billion. The possible environmental impact of exploitation on the Atiwa Forest reserve, where some of the deposit is located, has heightened tensions between environmental groups and the government. But President Addo reckons environmental correctness will be applied. Ghana’s President Akufo “A very major part of the fields and plans to double Addo reckons very serious permit they give to people current production to over “The technology being used now consideration must be given to come to our waters and 500,000 barrels per day in the to exploit bauxite is different to environmental impact look for oil is environmental medium term. Concerns have from the technology we had 30, assessments prior to oil and gas impact. It is important for emerged about the inability 40, 50 years ago. The technology exploration in any part of Ghana, those who are responsible for of the local Environmental of today is more sensitive to the to preserve the environment. making these assessments to Protection Agency to ensure environment,” he declared. “As In particular, the diligence and be true and honest, and not get effective and full compliance far the exploitation of Ghana’s honesty of officials charged with compromised. So that is also a with environmental laws and bauxite is concerned, we are in enforcing existing environmental major concern,” he said. regulations. President Akufo a better place, technology-wise, laws is crucial for the future of Addo spoke at a forum in Accra than we would have been 30 the country, he observed. Ghana currently produces oil attended by Norwegian Prime years ago.” and gas from three offshore Minister Erna Solberg.

Eni to Focus on Saving African Forests to Offset CO2 Emissions ni SpA’s plan to offset announcement in March The Italian company will spend to reduce emissions stemming emissions from its oil appeared to involve planting about 1 billion euros ($1.1 billion) from deforestation or forest and gas operations 20 million acres of new forests, on “circular economy” initiatives degradation. The company E an area roughly the size of the to reduce emissions over the next has formed partnerships will focus on working with U.S. state of South Carolina. four years. Other oil majors have with Zambia, Mozambique, African communities to While Eni’s initiative will involve also turned to the forests to offset Zimbabwe, Mexico and Brazil. prevent deforestation. planting some new trees, the their climate change footprint. Talks are underway to develop main focus is on preserving Eni’s European rival Royal Dutch new initiatives in Congo, The project is part of the Italian OFFSHORE VOL.9.3 mature forests “which play a Shell Plc plans to plant and Indonesia, Mozambique and energy giant’s goal of removing crucial role to absorb CO2 from conserve trees to offset emissions Ghana, it said. 22 the equivalent of 20 million tons the atmosphere,” the company through a $300 million a year of carbon dioxide from the said. investment over three years. The The strategy includes growth in atmosphere by 2030. On top of company will provide carbon Eni’s portfolio of low- or zero- efforts to improve operational “We pursue an approach credits to its diesel and gasoline carbon energy sources, with an efficiency and minimize waste, which aims at the sustainable customers in the Netherlands. increasing share of gas, biofuels, the forest initiative would result management of forests, their Total SA expects to invest about solar, wind, and “a circular in net zero emissions from its conservation, and enhancement $100 million in forests starting approach to maximize the use upstream fossil fuels business, of forest carbon stocks, also in 2020. of waste as a feedstock and to Eni says. leveraging local population transform and extend the life of as crucial players,” an Eni The oil and gas explorer said it industrial sites,” the company The company has clarified spokesperson said. will develop forestry projects said. its plans after the initial through REDD+, a program Industry Plans ENVIRONMENT CSOs Call on Uganda and DRC to Avoid Oil Exploration in Sensitive Ecosystems in Albertine Graben he Albertine Graben is home to Virunga The CSOs made the call following of which are located within the the launch of Uganda’s second Albertine Graben. National Park in the Eastern DRC which is competitive oil exploration classified as a UNESCO World Heritage site licencing round in May.. Block V, which is located in T Virunga National Park in the and accommodates 43% of Africa’s bird species, At the launch in Mombasa, Albertine Graben, is one of the 27% of Africa’s mammals and more than 10% of Kenya, Uganda’s Minister blocks that could be put up for its reptiles, amphibians, and plants in addition for Energy and Mineral licensing. Development, Hon. Irene to several rare and endangered species that exist Muloni, opened up five blocks for TOURISM OVER OIL nowhere else in the world. bidding. Through a letter dated May 20, 2019, the CSOs remind the • The Albertine Graben presidents of the ecological, economic and social importance of the sensitive ecosystems in the Albertine Graben and call on them to protect them from oil exploitation. “The Albertine Graben harbors some of the most sensitive ecosystems of national and international importance. For instance, it is home to Virunga National Park in the Eastern DRC which is classified as a UNESCO World Heritage The Albertine Graben is also fresh water and income from Among the blocks is Ngaji oil site. a home to Queen Elizabeth block, which is located in the agriculture, fisheries, and The park accommodates 43% National Park and Lake Edward ecosensitive Lake Edward and tourism. of Africa’s bird species, 27% of in Uganda, which are shared Queen Elizabeth National Park Africa’s mammals and more than between our countries. Queen Nearly 50 civil society (QENP) in Uganda. The above 10% of its reptiles, amphibians, Elizabeth National Park in organizations (CSOs) from are shared and border DRC’s and plants in addition to several Uganda is also classified a Uganda, the Democratic Virunga National Park (ViNP) in rare and endangered species that Humanity and Biosphere Reserve Republic of Congo (DRC) and the Albertine Graben. by UNESCO while Lake Edward their partners have written to exist nowhere else in the world. is classified as a Ramsar site. On the other hand, Hon. the presidents of Uganda and The Albertine Graben is also The above ecosystems also play John Kwet-Mwen Kwet, the the DRC calling on them to home to Queen Elizabeth important roles for climatological Minister of Hydrocarbons in the avoid sensitive ecosystems in National Park and part of Lake stability, carbon absorption, Democratic Republic of Congo the planned and ongoing oil Edward in Uganda. and supports millions of people exploration licensing round in (DRC) also rolled out the call through the provision of food, the Albertine Graben. for bids for 21 oil blocks some Ghana Reports 2,000 Incursions • Ghanaian fishermen into Offshore Oil Security Zones Ghana’s fledgling upstream of encroachments by fishermen,” sector faces growing security observed Kwaku Boateng, threats as local fishermen Petroleum Commission’s routinely flout safety measures Director for Local Content. put in place to keep key installations safe and functional. Under current laws, territories Some 2,000 incursions and within five nautical miles around violations were reported in FPSOs are designated Advisory Zones, while areas within 2018 and the authorities are OFFSHORE VOL.9.3 still grappling with finding an 500 metres exclusive zones effective solution. surrounding FPSOs are deemed 23 Restricted Access Area (for safety “Unfortunately for us, there of offshore installations such as have been a number of Oil Offloading Buoy (OOB) and Centre for Environmental and fishermen and also ensures that encroachments. Last year drill centres MODU (drilling rig). Health Research and Training oil companies can also undertake alone, Eni reported over 1,200 (CEHRT). their activities in a very peaceful Environmental groups and encroachments on their advisory and harmonious manner.” zones. Tullow had 600, 700 and activists are calling for immediate The Petroleum Commission, other companies. Three years action to avert a potential with support from Tullow Oil, The Commission says it expects ago, a seismic vessel that was disaster. “These incursions into has launched a Sea Access oil and gas companies to support working in shallow waters, was the exclusive zones are dangerous Framework, “which outlines initiatives leading to the creation forced to halt operations for and could lead to full-blown modalities for all users of the sea, of alternative livelihoods for more than two months because accidents at installations,” warns which also protects the rights of fishing communities. Yaw Ameyaw Osei, CEO of GAS Tanzania names start date Houston for $30bn LNG project to host the town of Lindi, in the south of the country. Medard Kalemani, Tanzania’s energy minister, said in a budget global gas presentation to parliament: “Construction of this project is expected to start in 2022 and will be concluded in 2028. The conference project will have capacity to produce 10 million tonnes of LNG a year.” in September Tanzania’s central bank has said that just starting work on the plant would add another he U.S. Gulf Coast two percentage points to annual economic growth of around 7%. has become an important arena anzania has years by regulatory delays. The government is presently T for liquefied natural gas announced that its holding individual talks with the The development will be carried exports, and many of the $30bn liquefied by a consortium led by Equinor oil companies to agree a “host T government agreement”. companies who take part natural gas (LNG) project of Norway, along with Royal are based in Houston. will break ground in 2022. Dutch Shell, Exxon Mobil, Kalemani added that Ophir Energy, Pavilion Energy construction of a $1.9bn fertiliser This year’s Gastech conference The construction of a plant and and the Tanzania Petroleum plant would also start in 2021 in Houston is expected to bring terminal to export gas from Development Corporation. and would be operational in more than 15,000 visitors from the country’s massive offshore 2024. outside the U.S. to the Bayou deposits has been held up for They plan to build the plant near City. Gastech, which takes place every Cameroon: Natural 18 months in a different location, hasn’t been in Houston for the gas output up 219% past 19 years, said Nick Ornstien, vice president for energy at to 747.96 million m3, United Arab Emirates-based dmg events, the conference’s at end-April 2019 organizer. Gastech will take place at NRG Center, Ornstien said, etween January and is scheduled for Sept. 17-19, Eni Makes First Gas and April this year, 2019. Cameroon produced The conference is expected to B draw about 35,000 attendees, a total of 26,414.04 million Discovery at CTP Block cubic feet (747.96 million about half of whom will be m3) of natural gas, up visiting from abroad, Ornstien said. Attendance ranges from Italian energy giant Eni is of cenomanian age with good 219.78% compared to the hopeful of additional upside for petrophysical properties and with ministerial- and executive-level gas at the CTP-Block 4, offshore hydrocarbon down to. same period last year. people to students, he said. Ghana. Further drilling will The good performance, Akoma - 1X is the first well Houston has become a good fit be carried out following the the national hydrocarbons drilled in CTP-Block 4 and for the conference as nearby discovery of about 600 bcf of gas corporation (SNH) explains, is represents a discovery of a natural gas production and LNG and 20 mmbbl of condensate in driven by the launch in May 2018 potentially commercial nature, exports have risen, but that’s not May. of liquefied natural gas (LNG) due to its close distance to the only reason the conference exports through the Floating The exploration well, dubbed the existing infrastructures. has made its way to the U.S., Liquefied Natural Gas-FLNG Akoma-1x, was the first The discovery can be put in Ornstien said. plant in commercial operation exploration at the CTP-4 block, production with a subsea tie to OFFSHORE VOL.9.3 at Bipaga, off Kribi, in southern “We decided that now was a and is located approximately the FPSO with the aim to extend Cameroon. perfect time to bring it back to 24 60 kilometres off the coast and its production plateau. Houston,” Ornstien said. “But about 12 kiometres north-west SNH claims it delivered 3,816.06 The Joint Venture of CTP- also, just because we want to be from Sankofa hub, where the million cubic feet of natural gas Block 4 is formed by Eni Ghana a global show, we feel it’s time to John Agyekum Kufuor FPSO is (108.06 million m3) to the Kribi (operator, 42.469%), Vitol come back to the energy capital located. The well was drilled by thermal power plant; an average Upstream Tano (33.975%), GNPC of the world.” the Maersk Voyager drilling ship capacity used of 149 MW, or (10%), Woodfields Upstream in a water depth of 350 meters 68.98% of the plant’s installed The total expected number of (9,556%), Explorco (4,00%). and reached a total depth of 3790 capacity (216 MW). “With attendees for 2019 is up from meters. Eni has been present in Ghana regard to LNG, six cargoes were previous years — the 2018 exported between 1 January and Gastech in Barcelona is expected Akoma - 1X proved a single gas since 2009 and accounts 30 April, representing a volume to bring in about 30,000 people, and condensate column in a 20 m currently a gross production of 864,241 m3, or 388,054 tons,” Ornstien said. thick sandstone reservoir interval of about 60,000 barrels of oil equivalent per day. informs the SNH. GAS

vital importance. Helium One is licensed by the Tanzania’s Helium Find Offers Tanzanian government to explore for helium at three sites in the country. The company has looked for the gas in other East Africa countries along the Rift Valley, Hope for Worldwide Shortages “but we don’t believe they have A large underground reserve of the right geology” that would the precious gas was discovered result in similar finds of helium, in East Africa earlier. Roaming Mr Abraham-James, Helium One across the Tanzanian plains CEO said. on safari some six years ago, Commercial production of the it dawned on two Australian ‘life-Saving’ stash of precious geologists that Tanzania could helium gas discovered in hold world-class helium reserves. Tanzania may be five years in the Looking at local research done by future. The CEO of the Norway- a British geologist in the 1950s, based company spearheading an unusually high concentration the project cautioned earlier. “If of helium in the country’s all goes according to plan, we naturally occurring gas seeps could be in production by 2020 was a strong indication that large or 2021.” primary deposits lay under the Other than its large quantity, ground. Tanzania’s Rukwa basin helium The Australian geologists seeps are relatively unique in eventually created a company- the concentration of helium it • Scientists tracking the helium find Helium One and announced from produces. early analysis data that Tanzania and company are manufactured Professor Jon Gluyas, Director any think of could hold as much as 98.9 inside of a pure helium of Durham University’s Energy Helium as the billion cubic feet (bcf): enough to atmosphere so that air-bubbles Institute, who conducted gas in party make the East African nation one cannot get trapped inside the research on Tanzania in M of the world’s top producers. balloons, but it is one of cable. conjunction with Oxford the most valuable gases on The researchers estimate they University and Helium While helium has so many uses, earth, with uses ranging found about 54 billion cubic feet One, argues that the helium the global supply of helium had (BCf) of helium in just one part concentration in Tanzania is from rocket fuel to MRI comfortably outweighed the of the valley, which is enough to “getting on for a world record.” scanners. The tech industry demand and the situation was so fill 1.2 million MRI scanners. And bad forcing Party City, a global Notably, while most helium interestingly also has a lot looking at all the things MRI can store providing party materials, is produced with very low uses for helium, including do; letting doctors non-invasively to close 45 of its outlets. Helium’s percentages as a by-product of enabling you to read this examine a patient’s internal global supply is under threat, natural gas, helium in the Rukwa organs, monitor tumor growth, article. with the commodity surging basin is found attached to the study inflammation or check on around 500% in the past fifteen carrier-gas nitrogen and takes The fiber optic cables that a developing fetus, the value in years. up a much greater share of that deliver Internet access and regards to health care alone is of cable television to your home compound. Mozambique expects US$95B of gas revenue over 25 years

• Mozambican youths are very expectant the cabinet approved the defaulted on $2 billion of debt development plan this week, is in 2017, the bulk of which the expected to generate $46 billion authorities hid from donors and of income for the state, according the International Monetary Fund. to a statement posted on the government’s website Thursday. The government is in That adds to the $49 billion restructuring talks with holders of revenue anticipated from of its $727 million Eurobonds, two other LNG projects being and has reached an early developed nearby by Eni SpA and agreement to pay them 5% of Anadarko Petroleum Corp., it its revenue from the Eni and said in June. Anadarko projects, up to a maximum $500 million. It has OFFSHORE VOL.9.3 The liquefied-natural-gas reached a similar preliminary projects the three companies deal with Russia’s VTB Capital 25 plan to build in Cabo Delgado for another of the loans that province will be transformational made up the $2 billion. for the world’s sixth-poorest nation, which is still recovering The Rovuma project will cost from a civil war that ended in about $23 billion to develop, 1992. Mozambique’s GDP was according to the government Mozambique’s government than seven times larger than its less than $13 billion in 2017, statement. Standard Bank Group expects to reap $95 billion of gross domestic product. according to the World Bank. estimated in a March report that revenue over 25 years from the Exxon project could cost as natural-gas deposits being Exxon Mobil Corp.’s Rovuma Mozambique’s economy has also much as $33 billion. developed in the country — more LNG project, for which struggled since the government POWER

digital solutions, is paving the way for additional total plant Ivory Coast’s Azito Power Plant solutions across the region. GE successfully executed the MXL2 upgrade on the first unit, comprising turbine, compressor and combustor Increases Output by 30 modules, without any loss time to injury and a workforce that With a focus on improving was predominantly 95% local. • The Azito plant power plant output, reliability, Designed to be compatible with availability and operational all installed GT13E2 units, the performance as well as gaining MXL2 upgrade combines GE’s data and insights for predictive latest technology developments maintenance of assets, Azito and over 10 million operating Energie S.A. today announced hours of GT13E2 fleet experience. that it has signed a contract This upgrade allows operators to with GE to deploy its Predix benefit from increased efficiency, Asset Performance Management improved power output, and (APM) software for two GT13E2 significantly extended service gas turbines and two generators intervals. This upgrade also helps at the Azito III plant site, located extend the lifetime of the asset in the Yopougon district of Ivory and improve availability of power Coast. In addition, the companies with fewer C-inspections. announced the successful Under this contract, the APM execution of GE’s MXL2 upgrade software will provide real-time solution for the first GT13E2 unified visibility into the health gas turbine, which will increase of assets critical to the customer the plant’s production by 15 —all in one place. It can predict megawatts (MWs), which is and accurately diagnose issues GE’s MXL2 Turbine Upgrade Improve Plant Competitiveness; equivalent power for up to will help Increase Power Output The Project Marks GE’s First with greater accuracy before they 120,000 homes. The upgrade occur with the help of predictive by 30 megawatts (MW) at Digital Solutions Order and First on the second unit is set to be Azito’s plant in the Yopougon GT13E2 MXL2 Full Modules analytics, while generating the implemented later in the year. A root cause analysis of events and district of the Ivory Coast; Configuration Gas Turbine first-of-its kind project in Sub GE’s Upgrade and Predix Asset upgrade installation in Sub- providing a framework for the Saharan Africa, this flagship resolution of identified issues. Performance Management Saharan Africa. upgrade combined with the (APM) Software will Help eSwatini calls for solar power bids Ghana Mulls New Levy for to ease reliance on S.Africa’s Eskom Energy Debts

• Hon. John Peter Amewu

• A solar installer

The kingdom of eSwatini has affairs manager at the eSwatini called for bids to build 40 Energy Regulatory Authority, megawatts (MW) of solar power told reporters the solar project

OFFSHORE VOL.9.3 capacity to reduce reliance on would cut electricity imports and South Africa’s troubled state boost job creation, and could also The Ghanaian government is Electricity Company of Ghana is 26 power firm Eskom. stimulate foreign investment. contemplating a special financial said to stand at GHS1.2 billion. arrangement to offset the The electricity provider is owed The kingdom, formerly known as The bidding process will close on crippling energy sector debts that a lot more in unpaid debts Swaziland, imports 80 percent of Aug. 23. The government wants some blame for recent hiccups in by electricity users across the its electricity from South Africa, Swaziland to produce 100% of its power supply. country. where the cash-strapped national own power by 2034. supplier has implemented some “Steps are underway to resolve “My Ministry is finalizing a of the worst rolling blackouts Under the project, water from the the energy sector debt by using National Energy Policy for in years and has needed a state dam would be used to generate a special purpose vehicle called onward submission to cabinet for bailout to survive. an extra 20 MW, Khaya Mavuso, the Energy Sector Levy Act,” approval. The document contains a representative for eSwatini announced Ghana’s Energy policy directions and strategies Sikhumbuzo Nkambule, Electricity Company, told the Minister John Peter Amewu. aimed at maximizing the benefits communications and consumer Times of Swaziland newspaper. of Ghana’s petroleum resources,” Government’s debt to the said Mr. Amewu.

SPECIAL REPORT Oil and Gas Tensions We Cant Negotiate Offshore Africa with Kenya over • The disputed offshore territory Oil Fields-- Somalia mimics the sea border maritime The row over ownership of maritime demarcation separating Tanzania oil fields along the Indian Ocean and Kenya. has taken a new shape after Somalia on Saturday ruled out any possible Ghana and Ivory Coast endured negotiations with Kenya. a protracted maritime border dispute that was eventually Foreign Minister Ahmed Awad said resolved by the International the matter at hand can only be solved Tribunal for the Law of the Sea. at the International Court of Justice, a move that could prolong the crisis. The borderline separating Kenya and Somalia were drawn in the “Somali government and its late 19th century. Like everyone people’s stand on the issue is that’s else on the continent, this was a court matter and there will be no the work of cartographers negotiation and bargaining on that working for Europe and colonial issue,” he said. “We want that matter ensions are rising in East Africa as Kenya powers. to remain like that,” Awad said as quoted by VOA. and Somalia battle over their maritime “Now we have the maritime border demarcation. This is border boundary. The disputed area is about Over the weekend, Somalia banned T where the problem is, and this her ministers from holding meetings 100,000km2, forming a triangle east of the Kenya is what we may anticipate in the in Nairobi, slightly a week after coast, proven to contain large deposits of oil, gas and future. Historically, the continent a minister and two MPs were of Africa was partitioned by denied access at Jomo Kenyatta tuna. colonial masters. So the land International Airport. borders are established. When Somalia wants to extend the The claims overlap contested it comes to the maritime border Kenya’s Foreign Affairs minister frontier line of its land border in legal regimes involving the that is where we have problems,” Monica Juma denied claims that a south east direction. It bases continental shelf, the Exclusive observed Dr. Stephen Donyinah, authorities in Nairobi were unfairly its claim on the equidistance Economic Zone, and extended a senior lecturer at the Kwame targeting Somalia diplomats. Instead, principle derived from the United continental shelf claims beyond Nkrumah University of Science she said, everybody travels on Visa. Nations Convention on the Law 200 nautical miles from the and Technology (KNUST). of the Sea. Kenya claims the coast. On Friday, Somalia President border follows along the parallel As more offshore oil discoveries Mohammed Farmajo was forced to Kenya has regarded the line line of latitude directly east of are made on the continent, snub Jomo Kenyatta International parallel to the line of latitude its shared land terminus with the drive for offshore space is Airport while travelling to South as the border demarcation Somalia. expected to lead to more tensions Africa. He has traditionally used for almost 100 years. The line and potential for conflicts. JKIA.

ITLOS May Resolve Ghana, Togo Maritime Dispute Despite concerted efforts by common maritime space. Reports Ghanaian and Togolese leaders to reaching Offshore Africa says the amicably resolve the dispute over last major land pillar close to the their maritime boundary, signs beach has been removed, making are emerging that the dispute it very difficult to start making may ultimately be resolved under seaward projections in respect of international arbitration. defining maritime boundaries. The two countries are currently “Some unscrupulous persons negotiating modalities for have removed the key land pillar,” demarcating the boundary, in a source told Offshore Africa.

OFFSHORE VOL.9.3 accordance with UN Convention “This is making it very difficult to on the Law of the Sea, which move forward.” 28 tend to rely on the equidistance • Ghanaian and Togolese officials search for onshore pillars principle in adjudicating such “The underlining principle is to to disputes. drive an outcome that is guided issue concerning our maritime acquisition tasks in Ghanaian by international law, utilizing all borders,” said Stanilas Baba, waters close to the border with The equidistant principle was the established principles governing president of the high council Togo was intercepted and chased main plank upon which judgment matters oof this nature,” noted for the sea and member of the away by the Togolese navy. was entered in favour of Ghana Ghana’s delegation head and Togolese team at the talks. This development led to talks in its maritime dispute with its National Security Minister Albert involving President Akufo Addo Western neighbor Ivory Coast. Ken Dapaah. Sources tell Offshore Africa that and his Togolese counterpart. oil and gas vessels contracted After four sessions, two in Accra Togolese officials are equally to work on the Ghana side of Reports from Togo suggest and two in Lome, the joint skeptical about current bilateral the border continue to face Togolese officials believe the area committee of senior officials of talks. “So far, very little progress harassment from the Togolese around the east Keta offshore the two countries, is yet to decide has been made because we are yet navy. In December 2016, a basin may have huge oil and gas on modalities for demarcating the to discuss the quintessence of this vessel conducting seismic data deposits. SPECIAL REPORT Oil Companies rush for Offshore Keta Basin il major BP is the latest international The basin lying along the eastern to Deputy Energy Minister coast of Ghana has both tertiary (Petroleum), Dr. Mohammed exploration and production firm to indicate a and cretaceous prospectivity. Amin, most of the new blocks will firm interest in exploring for oil in the eastern Evaluation of the hydrocarbon be in the Keta basin. O potential of the Keta basin offshore Keta Basin. Representatives of BP had suggests there is significant Offshore Africa has seen a recent informed Ghana’s oil and gas licensing committee exploration potential in this map of Ghana’s coastline, that it was dropping out of the first licensing round relatively frontier deepwater generated by a top international to focus on future licensing rounds involving blocks basin. Major leads have been oil company, which suggested identified and may develop into substantial deposits of gas and in the Keta Basin. drillable prospects with further oil and shallow waters of the Keta analysis. Seismic interpretation Basin. Is the current rush for the At least four international opportunity. of the area confirmed the basin is Keta Basin driven by what some oil companies are said to be of these companies have seen or Equinor, formerly Statoil, highly prospective. interested in exploring the strongly suspect? Norway’s largest oil and gas prospectvity of the basin, Despite the strong interest in company, is also said to be described as prime acreage. the Keta Basin, some Ghanaian “No, I don’t think they have seen targeting the basin and other Kosmos Energy is said to have officials are not impressed that anything of special interest in the sites onshore as it seeks to indicated a very strong desire to interest and focus have shifted Keta Basin,” a senior Ghanaian expand its production abroad to commence exploration work at to the eastern offshore basin petroleum official told Offshore counter dwindling crude output the Keta Basin. Some Kosmos at a time Ghana is offering Africa. “The Keta Basin has seen from the North Sea. Energy executives reportedly offshore blocks in the Western little activity and people are curious. Secondly, it is shallow lobbied local petroleum officials Shell Oil company, one of the Tano Basin. “The setting is like waters compared with the ultra to be granted permission to world’s largest, is also looking to a marketplace. We bring our deepwater conditions at the commence exploration at the participate in Ghana’s nascent goods; we determine what we Tano Basin, in the west. It is not eastern flank. oil sector and had approached want to sell. You the buyer, it every company that can reliably Ghanaian officials in the past is not your duty to tell us what Tullow Oil, which currently operate in ultra deepwater. I to express interest in the Keta goods to bring to the market,’ a produces oil and gas from think that is why most of the Basin. “We have a growing top-ranking Ghanaian oil and gas offshore Jubilee and TEN companies are more interested in appetite for Ghana and we official told Offshore Africa. fields, has never hidden its the Keta Basin.” are seeking the opportunity profound interest in the Keta Reports reaching Offshore Africa to participate in the country’s Basin. Tulllow, which recently suggest that the Ministry of And while significant uncertainty upstream activities,”Mike Muller, designated Ghana as a distinct Energy is considering the award remains in the Keta Basin, the global head of Shell Trading, business unit, says it will apply of 15 new offshore oil blocks in explorers believe it has great said. “We are working to acquire for a license to explore the Ghana’s second licensing round, potential. Ghana’s offshore a license for exploration…….we basin whenever offered the possibly in 2020. According sedimentary basins include Tano, hope to get this opportunity.” Saltpond and Accra/Keta.

• Ghana’s Keta Basin showing huge promise OFFSHORE VOL.9.3

29 REPORT What Oil Industry Expects from Buhari’s Re-election

• Nigerian President Buhari celebrates his reelection

resh from his comfortable re-election, education, and infrastructural wealth. It was never about short- development. “If this was to term gains. I want to assure you President Muhammad Buhari faces huge happen, then there will be more that dialogue on the Petroleum hurdles. The 76-year-old former military ruler public spending available to build Industry Bill is still ongoing. At F hospitals, to build roads, to build the end, we will have a bill that is saddled with more daunting tasks in his second school, and to support education the nation will be proud of,” term due to his inability to decisively tackle critical and health for the people,” insists Mr. Buhari. issues confronting Nigeria in his first tenure. argued the Managing Director of the IMF, Mrs. Christine Lagarde. And while President Buhari Oil and gas provide Nigeria with critical, says the IMF. ponders whether to sign the 95 percent of its foreign exchange Poverty levels are on the increase reform-oriented bill or not, earnings and is the lifeline of the With rapid population growth in Nigeria and the government the level of poverty in Africa’s economy. But slowing economic that could make Nigeria the third is clearly alarmed to add to most populous nation and other growth, rising inflation, falling most populous country in the the numbers with oil subsidy sub Saharan African countries revenues and fiscal account world by 2050, these issues will removal. Fuel is sold in Nigeria at is getting worse despite other deficit are some of the critical intensify if not addressed. To a controlled price of N145 naira regions making progress on concerns that yearn for urgent meet Nigeria’s large spending per litre, whereas in ECOWAS shared prosperity. “By 2030, attention of President Buhari. needs, greater resource countries such as Ghana, a litre nearly nine out of 10 poor mobilization is critical. The of petrol sells for about N400 people will be from Africa, while The Petroleum Industry Bill current revenue base is simply Naira. progress is predicted to be made (PIB), revival of ailing refineries, too low to address the current in other regions,” observed the creating a more business friendly challenges, says the IMF. Urgent structural changes are President of the World Bank, electricity tariff system and also needed in the upstream David Malpass. OFFSHORE VOL.9.3 deregulation of the downstream At 3-4 percent of GDP, Nigeria’s petroleum sector- the cash sector are some of the many non-oil revenues mobilization cow. President Buhari has so Gail Anderson, director, sub 30 challenges the petroleum sector has been one of the lowest far refused to sign the industry Saharan African researcher at is grappling with in Nigeria, worldwide. Nigeria raises less defining Petroleum Industry Bill Wood Mackenzie, sees delay in Africa’s largest crude producer. than 1 percent of GDP in VAT (PIB) into law. The PIB seeks to major investments in Nigeria’s revenues, compared to almost 4 restructure the organization and oil and gas sector. According According to the IMF, spending percent of GDP in the countries fiscal terms in the industry. to him, “with major Final on health and education in of Economic Community of West Investment Decisions (FIDs) Nigeria is among the lowest in African States (ECOWAS). A “Whatever decision we take highly unlikely until the PIB issue the world. Nigeria therefore comprehensive tax reform could now will impact negatively or is resolved, these negotiations needs to maximize the amount help increase the tax-to-GDP positively on generations to will go a long way to determine of revenues it raises. Diversifying ratio by about 8 percent points. come. The Petroleum Industry whether Nigeria’s world class the government’s revenue base, Bill was conceived to ensure deepwater has an attractive The IMF wants Abuja to remove increasing non-oil revenues, and Nigeria’s future generations are long-term future. There is a lot at fuel subsidy and instead spend securing oil revenues, will all be positively impacted by its oil stake in the next four years.” the money saved on health, LOGISTICS & PROJECTS FREIGHT FORWARDERS SHIP AGENCY

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ISO 9001 OHSAS 18001 COMPANY NEWS Maersk Drilling to put low-emission rig into the field

Maersk Drilling has announced Morten Kelstrup of Maersk Drilling that it will launch a new low- said: “The Maersk Intrepid project emission hybrid oil rig. is the result of asking a simple yet challenging question: What would The company said the Maersk be the most efficient technological Intrepid “upgraded” rig will be approach to minimising emissions kitted out with batteries and a from a rig in the short term? monitoring system that will switch off engines “when they are not “The resulting ideas have been very needed”. positively received by Equinor and will contribute to Equinor’s long- It said Catalytic Reduction (SCR) term emission targets. systems will “capture NOx exhausts and use ammonia injections to Maersk Drilling owns and convert the gas into harmless water operates a fleet of 23 offshore rigs and nitrogen”. specialising in harsh environment and deepwater drilling operations. The upgrade to hybrid, low- emissions rig are being carried out The firm successfully applied in cooperation with the Maersk for project funding through the Intrepid’s current customer, NOx Fund, a Norwegian industry Equinor. fund dedicated to reducing NOx • The Maersk Intrepid emissions.

Bentley Systems Announces the Acquisition of Keynetix Transocean Bentley Systems, Incorporated, construction and operations of ground investigation data systems CEO describes the leading global provider infrastructure assets. The creation for UK-based Structural Soils, of comprehensive software and curation of subsurface Ltd., a member of the RSK Group future drilling and digital twins services digital twins involves modeling Ltd., said, “Bentley’s gINT and for advancing the design, the underground environment Keynetix’s HoleBASE software rig technology construction, and operations of (geology, hydrology, chemistry, platforms are core, business infrastructure, today announced and engineering properties, and critical tools within our ground Offshore drilling rig technologies the acquisition of Keynetix, a UK- the underground infrastructure), investigation (GI) businesses, are continuing to develop and headquartered provider of cloud- and utility networks, structures, and have been so for more than evolve in response to increased based software for capturing, and tunnels – and then analyzing 20 years. The acquisition of industry demand for safer and more visualizing, modeling, and sharing and simulating the subsurface Keynetix’s modern and innovative efficient systems, said Transocean of geotechnical data. The addition behavior. Supplementing borehole software into the Bentley portfolio, CEO and President Jeremy of Keynetix software expands reports managed by Bentley’s alongside the mature and proven Thigpen at the Offshore Technology Bentley’s geotechnical offerings gINT software, Keynetix’s cloud- gINT platform, is a breath- Conference on Tuesday. and accelerates Bentley’s vision of based geotechnical knowledge taking and exciting landmark While the market downturn of the enabling subsurface digital twins management system captures moment within the GI digital past five years led many companies for infrastructure projects and and manages underground landscape. The rapidly growing to sacrifice their R&D budgets, assets. environment information for Bentley geotechnical platform is Thigpen explained that this was the Bentley’s geotechnical analysis helping to maximize the potential wrong approach. “It’s important Subsurface digital twins can be applications, PLAXIS and positives of the digital shift we vital for assessing and managing to keep offshore innovation SoilVision. are experiencing within the GI going,” Thigpen said. “We need to risks in infrastructure projects, workplace. Ground investigation is and to the planning, design, Mark Bevan, associate director, transform the offshore industry so truly going digital.” that it can compete effectively with shale, improve drilling efficiency, and accelerate first oil.” Thigpen’s presentation, entitled Maersk Drilling Cheque Donation “Rig technologies of the future,” described eight drilling technologies aersk Drilling that Transocean has or expects to in Ghana is deploy on its rigs in the foreseeable pleased to be future.

OFFSHORE VOL.9.3 M able to support the Ghana The time is now to support these Greentech Academy with a technologies, Thigpen said. “The 32 donation of GHS 205,000. offshore environment is favorable. Breakevens have been reduced from “We thank MaerskDrilling $65/bbl in 2016 to $40/bbl in 2019, and all their employees. and even lower in some cases.” And This is an extraordinary support the number of offshore FIDs has of our Academy,” said Mr. William tripled from 2016 to 2019, he noted. Amegah (right), Project Officer & Still, the economic environment Tutor at the Greentech Academy, has changed, he allowed. “How do as he received the symbolic Greentech Academy teaches in a country where three of our we make the industry profitable cheque from Mr. Nutifafa Kuivi its students environmental drillships have worked during at $50/bbl?” New drilling rig (left), Assistant Rig Manager stewardship through agricultural the last year. This is business technologies, he suggested, would of MaerskVoyager, during the training, and we are very happy to and society cooperating for play a large part in that. ceremony in Accra. The Ghana support sustainable development BetterValue. COMPANY NEWS

Baker Hughes, launches Multimodal KBR Wins Algeria Contract Facility Expansion in Angola Baker Hughes, a GE company skilled Angolan employees, further has inaugurated its multimodal entrenching people and skills facility (MMF) for oil and gas in development in the industry and Luanda, Angola. The facility, with the country. its additional capabilities across multiple product lines, will deliver Facility Details a suite of products and services The multimodal facility is across the oil and gas value chain. located at the Sonils Integrated It will serve as a hub to support Logistics Base, Luanda. With the customers and projects in Angola additional investment, the MMF and Southern Africa region, and builds on BHGE’s track record will also serve customers on a and established capabilities global scale. in subsea tree assembly and testing. The facility has added Sonatrach and Cepsa have efforts to help Algeria boost its The strategic location for this additional indoor turbomachinery awarded KBR a contract tied oil and gas output, KBR added. multipurpose facility puts BHGE overhauling services for gas to their RKR redevelopment in in close proximity to serve turbines, and an outside storage Algeria. The $1 billion RKF important projects in the region. area that can withstand up to 10T/ redevelopment aims to SQM load capacity. Sonatrach and Cepsa have significantly increase the mature The Luanda facility will service awarded KBR, Inc. a contract to oilfield’s production. Moreover, BHGE’s product company Other capabilities include subsea provide basic engineering design the 25-year project will produce capabilities in Oilfield tree assembly and testing, sand (BED) and front end engineering liquefied petroleum gas (LPG) Services, Oilfield Equipment, control, wellbore intervention design (FEED) services for their and should create up to 1,500 Turbomachinery & Process wireline, surface logging services, Rhoude el Krouf Field (RKF) new jobs. Components of the Solutions, and Digital Services. In drilling services, completion redevelopment in Algeria, KBR RKF redevelopment include: addition to subsea infrastructure services, wireline services, reported Wednesday manufacturing and installation, cementing services, coring Drilling 30 new wells the facility now also delivers a services, sand control services, According to KBR, the RKF Building new processing broad range of oilfield services, upstream chemicals. field – located southeast of the well construction and drilling town of Hassim Messaoud in facilities capable of treating Other services and products 24,000 barrels of crude oil per services, wellbore intervention, eastern Algeria – includes oil and wireline services, completion available at the facility are gas central processing facilities day and 10,000 barrels per reservoir development services, day of LPG services, aeroderivative with a gathering network and turbomachinery, power and aeroderivative turbomachinery associated structures. The KBR will perform the BED and compression technology and technology supply and services, redevelopment will add another FEED work from its London and maintenance services for offshore field installation and oil and gas treatment train to the Chennai offices, the company upstream production facilities onshore support, rental tool existing facilities and represents noted. (i.e. oil platforms and FPSOs), maintenance and certification. part of Sonatrach and Cepsa’s midstream plants (i.e. LNG) and In addition, inspection, downstream (i.e. refineries). recertification of H4 connectors and drilling risers, maintenance Additive Manufacturing This infrastructure investment in and storage of customer-owned Angola is a testament to BHGE’s equipment and tubular fabrication localization strategy in the country repairs can also be serviced from Joint Industry Project and region. The hub’s operations this facility. Expands with new Oil and will be run by a majority of highly Gas Industry Partners PG pumps to cool Greater Tortue hree multi-national ConocoPhillips, the world’s corporations are the largest independent E&P Ahmeyim power turbines company, based in the U.S.; latest companies to PGFS will supply four large T seawater pumps, each with a sign on to a joint industry Sulzer, a Swiss industrial project focusing on a manufacturer focusing on flow capacity of 5,500 cu m/hr, to cool pathway to certification for control and applicators; and down the onboard turbine steam condensers. additively manufactured Petrobras, a Brazilian (AM) industrial parts. integrated energy company The LNG-fuelled vessel will with operations in E&P, employ steam turbines for power OFFSHORE VOL.9.3 The project, run by Lloyd’s refining, production, and generation, with the pumps Register (LR) and TWI Ltd. marketing of oil, natural gas providing cold seawater to liquefy 33 (TWI) for just over a year, and biofuels. the steam. is examining how to achieve • Illustration of the pump for the FLNG code compliance for additively Chevron, Sellafield, AECC BIAM, Gimi.PG Flow Solutions The axial-type propeller pumps, manufactured materials. and AVIC MTI have previously using frequency converters signed on as sponsors. Keppel Shipyard has contracted for energy optimization, will Currently there are no codes nor PG Flow Solutions (PGFS) to standards providing guidance for be ‘reversed’ to clean out the The JIP will generate material provide seawater pumps for the seawater circuit. the assessment of AM materials property data and understanding FLNG vessel Gimi. and their performance in the oil of 316L type stainless steel used PGFS will assemble the pumps at and gas industry. in three AM processes: powder This is an LNG carrier undergoing its complex in Vestfold, Norway, conversion in Singapore for 20 The new project sponsors are: bed fusion (PBF), wire arc then transport them to Singapore AM (WAAM), and laser metal years of service at BP’s Greater during 4Q 2019. deposition (LMD). Tortue Ahmeyim development offshore Mauritania/Senegal. EVENTS

JULY 2019

July 1-4 Nigeria Oil & Gas Conference & Exhibition Abuja, Nigeria [email protected] July 1-5 Mastering Energy Storage and Charging London, UK [email protected] Vehicles July 1-5 Expo Tanzania Dar es Salaam, [email protected] Tanzania July 2-5 Power Purchase Agreement (PPA) from London, UK [email protected] Commercial Perspective July 3-4 Africa LPG Summit Dar es Salaam, [email protected] Tanzania July 3-5 8th International conference on Energy and Coimbra, Portugal [email protected] Sustainability July 8-9 LNG Western Africa Accra, Ghana [email protected] Conference 2019 July 8-10 ARPA-E Energy Innovation Summit Denver, Colorado, USA [email protected] July 10-11 US Fuels Markets & Refining Strategy Houston, Texas, USA [email protected] Conference July 11-13 West Africa Hvac Lagos, Nigeria [email protected] July 15-18 2019 Carbon Management Technology Houston, Texas, USA [email protected] Conference July 20 Aquapalooza Osage Beach, Missouri, [email protected] USA July 22-24 Unconventional Resources Technology Denver, Colorado, USA [email protected] Conference July 25-27 Africa 2019 Oil and Gas International Trade Nairobi, Kenya [email protected] Exhibition

AUGUST 2019

August 11-14 The Oil & Gas Conference 2019 Denver, Colorado, USA [email protected] August 13-14 SPE Subsea Well Intervention Symposium Galveston, Texas, USA [email protected] August 19-23 Gas & LNG Markets, Contracts & Pricing Johannesburg, South Africa [email protected] August 19-23 Project Finance & Project Financial Modelling Johannesburg, South Africa [email protected] August 21-22 Summer NAPE Houston, Texas, USA [email protected] August 27-28 IADC Well Control Conference of the Americas & Galveston, Texas, USA [email protected] Exhibition August 27-30 AAPG international Conference & Exhibition Buenos Aires, Argentina [email protected] August 28-29 CI’s 2019 US Base Oils and Lubricants Summit New Orleans, Louisiana, USA [email protected]

SEPTEMBER 2019

September 3-5 Pacific Fuels and Convenience Summit San Diego http://www.petroshow.com September 9-12 World Energy Congress Abu Dhabi [email protected]

OFFSHORE VOL.9.3 September 11-12 London Gas & LNG Forum London, UK [email protected] September 17-19 Gastech Exhibition & Conference Houston, Texas, USA [email protected] 34 September 18-19 Middle East & North Africa Oil & Gas London, UK [email protected] Exhibition (MENA 2019) September 23-24 10th International Conference and Expo on London, UK [email protected] Oil and Gas September 25-26 Uganda International Oil & Gas Summit Kampala, Uganda [email protected] September 29-October 1 GoTech 2019 Dubai, UAE [email protected]

TECHNOLOGY

uROV – The Next Generation IMR Platform Utilizing Supervised Autonomy Jack Heath Vincent, Nazli Deniz Sevinc, and Neil Andrew Herbst, OneSubsea, A Schlumberger Company

This paper was selected for presentation by an OTC program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not been reviewed by the Offshore Technology Conference and are subject to correction by the author(s). The material does not necessarily reflect any position of the Offshore Technology Conference, its officers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the written consent of the Offshore Technology Conference is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of OTC copyright.

Introduction uROV is unique in its’ approach to autonomy. AUVs have been mostly A pragmatic approach to balance out development and support costs, utilized with little to no real-time supervision of operations except for specifically autonomy development and offshore operations, is an ideal vehicle status and position. In open water applications, such as survey, framework for the emergent use of autonomous vehicles for the subsea this is acceptable. However, around producing subsea fields a different oil and gas domain. The optimal LOA can be achieved with “Supervised level of supervision is needed. Thus, the uROV platform was centered Autonomy”. Supervised Autonomy is not a novel concept in autonomy around supervised autonomy wherein a "person in the loop" can have development. However, specific to subsea applications the framework realtime visual feedback of the operation (same as ROV operations). has been challenged due to the capability of wireless communications. This person or supervisor can be located on the field host platform or While all the pieces of the framework are required and important, it is on-shore, allowing for greater flexibility in autonomous missions and the development and integration of a new wireless communication that with more robust operational integrity – not only for efficiency but also enables differentiating Supervised Autonomy for uROV. industry acceptance of new intervention framework. Furthermore, this approach aims at achieving the optimal Level of Supervised Autonomy Framework Autonomy (LOA) by balancing the system development cost with lifecycle operations and support cost. This is best illustrated in a The Supervised Autonomy framework is made of five key report from the National Research Council[1] and shown in Figure 1 elements: that compares autonomous system development cost and the lifecycle autonomous and untethered vehicle platform operations and support cost. high-bandwidth wireless communication system command and control architecture advanced sensing and perception digitalization tools and techniques Figure 2 is a depiction of uROV supervised autonomy vision.

• Figure 1—Comparison on autonomous system development cost vs lifecycle • Figure 2—Five key elements of uROV supervised autonomy. operations and support cost [1].

Figure 1 shows a transition point on the total cost of ownership when the Vehicle system development cost begins to outpace the lifecycle operations and In all autonomy framework, there is a platform that will perform the support cost. This is identified as the optimal level of autonomy. Like OFFSHORE VOL.9.3 prescribed work. In the domain of subsea IMR, this platform would the popular “law of diminishing returns” the illustration simply shows need to perform inspections utilizing various sensors as well as interface 36 that typical autonomy development will reach an ideal efficiency based with and intervene on subsea equipment and infrastructure. Most on the technology at that time. This could especially be true in subsea activity in oil and gas up until very recently has been covered by two oil and gas autonomous applications because of the lack and maturity of vehicle platform types – an autonomous untethered non-hovering AUV requirements, standards, and experience. The industry will take some for long distance inspection and survey and a piloted tethered hovering time to develop common testing requirements or minimum acceptance ROV for close in inspection and intervention. These platforms represent criteria for these new operational frameworks. As an example, the two opposite sides of a continuum for vehicle operations. The AUV traditional tethered ROVs could be automated such that a pilot is not on one side with fully pre-programmed and non-intervened missions. required. However, the delivery of the tether would still weigh in on the The ROV on the other side with continuous intervention through operations and support cost. In contrast, fully autonomous untethered piloting. Supervised autonomy represents a mix of the two operational vehicles could be deployed with minimal operations and support cost, frameworks in which a vehicle platform would not be piloted and would but the development cost associated to handle all the capabilities and not have to rely on a completely pre-planned mission. scenarios in a robust and reliable way would likely be extremely high. TECHNOLOGY

To enable the version of supervised autonomy and cover as much of the interaction between the vehicle and the operator. In our architecture, use cases within subsea IMR, the base requirement of a vehicle platform we have three functional interfaces that interact with a central is a hovering AUV with a control interface for custom behaviors. Shown control core for supervised autonomy. The central control core in Figure 3, the SAAB Sabertooth hybrid ROV/AUV achieves these handles the prescribed behaviors needed for the vehicle platform minimum requirements [2]. to execute and accomplish a set mission. A vehicle management function delivers vehicle status and receives directed commands. A communication management function enables the real-time supervision of the vehicle activities to the operator. A data and visualization management function provides the processing and display of sensor data for the supervision. The basic architecture can be found in Figure 4.

• Figure 3—SAAB Sabertooth double hull hybrid ROV/AUV [3].

The Sabertooth is a 6 degree of freedom (DOF) vehicle that can hover and station-keep just like an ROV. It can also perform untethered autonomous missions with on board batteries and autonomous control. The vehicle is also adaptable to interface and carry different sensors and tools for various IMR use cases. The vehicle also has a control system that can be interfaced with proprietary autonomous development for custom behaviors which is enabled by an open architecture API. Communication The key to the “supervised” element of this autonomy framework is the availability of real time communications to connect the vehicle activity with a human operator. Furthermore, in the context of subsea operations and delivering the next-generation IMR service, the communication needs to be wireless to fully unlock the efficiencies and cost reductions that supervise autonomy can deliver. Wireless communications allow for the removal of the tether and thus the dependency of an IMR • Figure 4—Simplified command and control architecture vessel at the surface. However, challenges in wireless communication Each function is connected through the control core. This architecture in the subsea are non-trivial. There are essentially three physical allows flexibility within each function for various hardware and channels to achieve wireless communication in water – acoustic waves, software solutions throughout development. optical waves, and electromagnetic radio waves. Table 1 shows some commercial examples for bandwidth and range for each method. Sensing & Perception Table 1—Commercial examples for underwater wireless Sensing and perception play a unique role in the supervised autonomy communication [4], [5], [6]. framework. Not only are they vital for a vehicle to operate in a subsea environment, their performance directly impacts how effective a Bandwidth & Range System supervising operator can perform their job. Classic ROV operations Acoustics Up to 4.5 kbps at (range Kongsberg, depend on camera visibility for close interaction with subsea not listed) [4] cNODE® Modem infrastructure and will often time utilize a forward-looking sonar at Explorer range to identify objects in front of them. AUV operations use a plethora of sensors and sonars for navigation and data collection. In recent Optics 2-10 Mbps at 150m Sonardyne, years, laser scanning has also become a relevant means of sensing maximum [5] BlueComm® 200 and perception for underwater vehicles. Any of these options can be Electro-magnetics 10 Mbps at 3cm [6] WFS, Seatooth® effectively used within supervised autonomy. A combination of these S500 options can deliver the optimal perception for a human operator. Each method has its own unique benefits compared to the others Enabled by wireless communication, our supervised autonomy and for supervised autonomy, any of the methods could be utilized. framework focuses on the transmission and display of streaming video However, only acoustic systems have shown significant capability at and laser data. Video, laser, sonar, and any other data collected from ranges beyond one to two hundred meters. For most IMR operations the vehicle, in its’ highest quality, is recorded onboard the vehicle. today,longer-range communications are needed. To bridge this gap, However, the video and laser feeds are separately compressed and telemetry expertise is being leveraged to develop a new through water transmitted through the wireless communication link to the graphical communication system that can deliver order-of-magnitude greater user interface of the supervising operator. The video feed provides the

performance for bandwidth and range compared to current commercial standard visual perception at close range, 1-3m, or good water visibility. OFFSHORE VOL.9.3 systems. A key target for this technology will be to transmit real-time The laser feed provides high resolution point cloud data for three- video from a vehicle at 3,000m water depth. dimensional perception at medium range, 10-20m. For the laser data 37 to be applicable in this operational context, only a time of flight type In 2017 the team achieved a world record for data rate at range by LiDAR sensor can be used. The 3D at Depth SL series subsea lasers transmitting live video 1,000m in the horizontal and vertical channels offer true time of flight LiDAR and uROV includes the integration and offshore Boston, MA, USA and San Diego, CA, USA respectively [7]. utilization of a 3D at Depth SL sensor for streaming LiDAR point clouds. The system, named Dolphin, is currently being integrated in the uROV An example of uROV streamed LiDAR data vs sonar and camera data is platform and will be ready for field trials April of 2019. show in Figure 5 below. Command & Control The command and control architecture of supervised autonomy is extremely important in enabling robust and flexible operation. There are multiple functions to manage that create a seamless TECHNOLOGY

• Figure 6—A deep supervised learning object detection principle

The result is a computer vision software solution that can • Figure 5—uROV collected LiDAR, sonar, and camera data from same underwater asset. automatically detect and log prescribed anomalies or objects for reporting. This is enabled with a high-performance computing edge Digitalization device that can be deployed in many ways during acquisition. In the context of supervised autonomy, this detection can add value in a The remaining element to our supervised autonomy framework couple of ways. The first is through the situational awareness of the involves the digitalization function. This function includes data autonomous vehicle. process automation, connection and layering, and visualization. As an example, efforts in data process automation have focused on Utilizing the detection of an object and localization data, the vehicle or inspection video logging. A task performed manually by a human the supervisor can infer position within the subsea field. The second wherein the identification of anomalies within the subsea field are is highlighting the items of interest to the supervisor which can then identified and documented. decide if the mission needs to be adjusted to collect more data about the item of interest. The process can take a significant amount of time and is prone to error. To make this process much more efficient a deep supervised learning object detection principle can be applied to replace the human Conclusion with a real time automatic logging tool. Figure 6 shows the general framework of this principle and how previously collected data is used The supervised autonomy framework offers a pragmatic and effective to enable real time detection. operational architecture for the deployment of autonomous vehicles in IMR. Enabled by the vehicle platform, wireless communications, supervisory command and control, advanced sensing and perception, and digitalization tools and techniques; uROV will be able to deliver the next-generation IMR service for our customers.

Scientists have figured out how to listen to the earth and unlock Africa’s hidden riches By Tolulope Olugboji frica was once at the It’s like holding a stethoscope centre of the world to the earth’s surface and using – literally. It was a computer to reconstruct A the anatomy of the planet. the landmass at the centre of Pangaea, a super continent From mountain peaks to the that broke upinto smaller inaccessible red hot depths of plates about 200 million years Earth’s inner core, the invisible is made visible. ago. The information detected and Today, Africa sits on the recorded has many important reconstruct images of the Earth’s eruptions. second largest of these plates uses. Aside from helping us interior. This remote sensing Without digging up the and her physical landscape is understand how plate tectonic technology is incredibly useful. earth, the sensors can not a permanent fixture. It’s forces shape the landscape, they It can provide unique also map the distribution being constantly shaped by can provide valuable information information on changes to of Africa’s undiscovered massive geological forces that about natural disasters, the the climate and environment underground resources. This reach deep down into the interior location of resources (like through glacier systems, ocean data is critical to hydrocarbon of the Earth. This is the central oil or minerals) and even waves, underground waste and and resource exploration. It can, organising idea in the earth environmental changes. This carbon sequestration – the for instance, show where to find sciences: the theory of plate could be particularly useful for process of capturing and storing South Africa’s diamonds or the tectonics. Africa. atmospheric carbon dioxide. mineral, oil and gas resources of When plates collide, slide Nigeria or Angola. past or bump into each other, Listening to the earth It can tell us how plate they cause the earth to shake. tectonics is implicated in This seismic technology can OFFSHORE VOL.9.3 The process to unlock this natural disasters. For example also reveal why certain features, This shaking is picked up by information starts with in Botswana, scientists can like mountains, formed on the sensors, called seismometers, the recordings, from the sensors, 38 reveal where (and how) the African plate. It also explains which are often buried in of ground vibrations. These buried faults – fractures in the why bodies of water exist where vaults underground. Some vibrations happen whenever ground – rupture. This allows they do. For example, the great have been formed into seismic plates shake and move and could them to reveal exactly where lakes of Tanganyika, Nyasa and networks across the globe. also be caused by waves crashing earthquakes strike and what Victoria were all formed by a The longest and continuously on seashores, hurricanes shaking their intensity is. The sensor new breaking up of the African running of these are owned and the earth, gravity waves and even images also inform scientists plate – as Tanzania, Uganda and operated by an international nuclear test explosions set off by on when volcanoes, like Ol Rwanda prepare to break off consortium consisting of many North Korea. countries including the US, Doinyo Lengai in Tanzania, may from the rest of Africa. France, Japan and China. From these basic recordings we erupt. This data can be used Tolulope Olugboji, Postdoctoral then extract the seismic signals in earthquake detection and Research Associate, As a computational seismologist, from ambient noise and use high quantification and early warning Seismology, University of I use these sensors to build performance computers to systemsfor tsunamis and volcanic images of the earth’s interior. Maryland AXISS SHIPPING SERVICES SHIP HAPPY

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Tortue partners add exploration well to Phase 2 drilling campaign Crude oil theft: Police chase illegal bunkerers in Delta, destroy products

Officers and men of the illegal bunkering in the area. Nigeria Police Force led by the Warri Area Commander, ACP “I received information from Mohammed Mukta Garba, above that I should come and Friday chased illegal bunkers see the place. The information was true that some people are • Dussafu PSC offshore GabonPanoro Energy and destroyed a large quantity of “illegally refined” Automotive sabotaging federal government by doing illegal bunkering. BW Offshore and its partners in seismic, which delivered oil in Gasoline Oil, AGO, and kerosene the Dussafu PSC offshore Gabon core samples with dipmeter data in Mason community, Warri “This is a sound warning to them. plan to drill an exploratory well indicating a higher structure to South Local Government Area of I am here to work for the Federal later this year on the Hibiscus the southwest. Delta State. Government and I will not Updip prospect. condone illegal bunkering. After development drilling, a The products destroyed by the According to Panoro Energy, a rig further exploration well should police operatives were loaded “I will make it uncomfortable for should mobilize to the well site in follow in early 2020, possibly on in drums, jerrycans and sacks. them, they must desist from the July, followed by drilling of four Prospect B to the south – a large Others were hidden inside a illicit business.” wells for Phase 2 of the Tortue Dentale closure – or the Espadon wooden boat. field development. prospect to the north of Ruche Garba warned his officers against No suspect was arrested in the compromise, saying: “anyone NE, which has closure at Gamba sting operation which lasted for All will be subsea horizontal and Dentale levels. caught would face the full weight oil development wells – three an hour, as the illegal bunkers of the law. through the Gamba reservoir and Depending on the results ran away when they sighted the one in the Dentale D6 reservoir. from the Phase 2 wells and Police coming towards their “The police will take action The campaign should conclude in reprocessing, more exploration direction. against any officer that early 2020. Production from the drilling could occur later in 2020. comprised. They should work In a chat with newsmen, the as Police Officers. Of course, I new wells should start flowing Warri Area Commander of the later that year, lifting total output In the meantime, concept do not think a sensible police selection work continues for Nigeria Police, ACP Mohammed officer will be a party to illegal from Tortue to potentially 25,000 Mukta Garba said the exercise b/d. Dussafu Phase 3, which will bunkering. target development of the Ruche was meant to warn the illegal Hibiscus Updip is mapped as a and Ruche NE fields for a tieback bunkers to desist from the “It is drizzling and I am here four-way closure at the Gamba to the FPSO BW Adolo, stationed criminal business which pollutes to perform my duty as a Police level. BW believes it could at Tortue. the environment and endangers Officer. It is going to be a contain recoverable volumes the lives of the citizens. continuous exercise.” Tullow Oil has confirmed its similar in magnitude to the ACP Garba said he will not ACP Garba also said he would Ruche, Ruche NE, and Tortue plans to exercise a 10% back-in right into the Dussafu license and condone illegal bunkering within write an invitation letter to discoveries drilled previously his jurisdiction, stressing that leaders of Mason community based on 3D seismic. The well has agreed to pay a portion of back costs. Following completion, he acted following a tip-off that after seeking and getting location will be southwest of some elements were sabotaging permission, to come and the HIBM-1 exploratory well Panoro’s interest in the Dussafu Marin license will be 7.5%. the Federal Government through explain why they harbour illegal drilled by Arco in 1991 using 2D bunkering in their land. Tullow negotiating entry to offshore Namibia license

Block 2813B offshore The company’s managing NamibiaCalima Energy director Alan Stein said: “The Namibian block is a world- OFFSHORE VOL.9.3 Calima Energy has an agreement class exploration play with to sell its interest in the PEL 90 extraordinary upside, but it will 40 license (block 2813B) offshore require considerable investment Namibia to Tullow Oil. and time to reach the point of The two companies have exploration drilling.” sanctioned a 60-day exclusivity Block 2813B covers 5,433 sq km period to cover formalization of (2,097 sq mi) in the Orange River a sale and purchase agreement, basin. During the initial term, due diligence, Tullow’s board Calima committed to acquire approval, and government and seismic data and undertake a partner approvals. detailed review of prospectivity. On completion, Calima will receive $2 million. GULF OF GUINEA

Lukoil farms into oil-producing permit offshore Congo

Conceptual full field development combined proved and probable infrastructure, and it also fits our production from Marine XII is plan of the Marine XII resources of 1.3 Bboe. technological expertise. On top set to peak at more than 100,000 development.New Age of that, the project is already free b/d by 2025, with a floating LNG Nene and Litchendjili currently cash flow positive.” development also in prospect. Lukoil is acquiring a 25% interest produce 28,000 b/d of oil (mainly held by Jersey-based New Age light and low-sulfur) and gas New Age retains its 75% operated Jean-Baptiste Bouzard, (African Global Energy) Ltd. in condensate, and 1.7 MMcm/d of interest in the adjacent Marine III senior research analyst, said the Marine XII license offshore gas. permit, where SNPC is the sole the transaction price is more Republic of Congo. partner. than $400 million below the Eni operates with a 65% stake: consultant’s valuation. The $800-million transaction is the other partner is state-owned The company plans to acquire subject to conditions, including Société Nationale des Pétroles du further 3D seismic data over the This can be partly explained approval by the government. Congo (SNPC) with 10%. license this year and to drill the by New Age’s view of the first exploration well before the development costs associated The 571-sq km (220-sq mi) license Vagit Alekperov, president of end of 2020, targeting the same with complex reservoirs, and its is 20 km (12.4 mi) from the shore PJSC Lukoil, said: “The project is reservoir horizons developed in preference to focus on the Etinde in water depths of 20-90 m (65- characterized by explored reserves, Marine XII. development offshore Cameroon 295 ft). It covers four blocks and substantial production growth and to replenish its exploration includes five discovered fields with potential, access to well-developed According to Wood Mackenzie, portfolio. High Level Meet on Piracy in Gulf of Guinea high-level meeting Discussion were animated, but all now,” he urged. Agency (NIMASA) acknowledged on piracy and gathered were in consensus as to the maritime security risks His views were echoed by Jakob armed robbery in the outcome, which is to identify present in the Gulf of Guinea. A actions that will reduce the risks Larsen, Head of Security for the Gulf of Guinea held at posed to seafarers and shipping, BIMCO said that regional states However, he said that new the International Maritime needed to play their part as well. initiatives underway to improve OFFSHORE VOL.9.3 Organization (IMO) head office and to make crew kidnappings ‘history’. “Nigerian piracy mainly affects the joint capacity of Nigerian in London, was attended by a small geographical area of law enforcement and Navy 41 the shipping community, Flag Dr. Grahaeme Henderson, Chair around 150 x 150 nautical miles. capabilities could make seafarer States, seafarer groups and of the UK Shipping Defence The problem can be solved easily kidnappings “history” within a maritime agencies, including Advisory Committee and Vice and quickly, especially if Nigeria matter of months. International Maritime Bureau President of Shell Shipping & partners with international The latest quarterly piracy report (IMB). Maritime, said the high level of navies. Nigeria holds the key to piracy and armed robbery attacks solving this problem,” Larsen published by IMB shows that in The symposium has shone the in the Gulf of Guinea was not said. the first quarter of 2019, the Gulf spotlight on the need for urgent acceptable. of Guinea accounted for all of the action to ensure the safety and In his keynote address, Dr. worldwide crew kidnappings; 21 security of seafarers transiting the “Yet it is happening every day, Dakuku Peterside, Director crew members were kidnapped region. and this is not business as usual. General and CEO of the Nigerian across five separate incidents. We need to take urgent action Maritime Authority and Safety REPORT

Eni announces fifth oil discovery in Block 15/06 Eni has made the fifth oil oil with an oil down to. The Agidigbo is the fifth discovery in one year in Block hydrocarbons are contained in discovery of commercial 15/06, in Angola’s deep offshore. the Lower Miocene sandstones nature since the Block The well has been drilled on the with good petrophysical 15/06 Joint Venture re- Agidigbo exploration prospect, properties. The discovery has launched its exploration and analysis of post drill results further upside that will be effort one year ago. It indicate between 300 and 400 proved by an appraisal campaign follows the discoveries of million barrels of light oil in planned in early 2020. Kalimba, Afoxé, Agogo place. and Ndungu. The five Due to its proximity to East discoveries altogether The Agidigbo-1 NFW has been Hub’s facilities and subsea are estimated to contain drilled by the West Gemini network, which are at about Eni is utilizing to unlock the full up to 1.8 Billion barrels of light potential of the area. drillship in a water depth of 10km away, production from oil in place with possible upside. 275 meters, and reached a total Agidigbo can be fast-tracked, These new discoveries further The Block 15/06 Joint Venture depth of 3800 meters. It proved thus extending the Armada confirm the exploration potential is composed by Eni (operator, a single hydrocarbon column Olombendo FPSO production of the block and the effectiveness 36.8421%), Sonangol P&P composed by a gas cap of about plateau. of the exploration skills and (36.8421%) and SSI Fifteen 60 m and 100 meters of light proprietary technologies that Limited (26.3158%).

to 8.2 percent of GDP in 2016, according to a World Bank figure. Angola is Open for Business with Oil Reforms Non- oil revenues also went down ngola, sub Saharan Africa’s second largest oil Bidding Round, place Angola despite measures to improve tax as the number one African collections, from 9.1 percent of producer after Nigeria, has announced the exploration frontier for years to GDP in 2014 to 6.8 percent of Afirst phase of a brand new six-year oil licensing come. GDP in 2017. strategy in a bold bid to revamp its waning oil and gas This ambitious drive is led by The country is currently working sector. President João Manuel Gonçalves on a new regulatory framework Lourenço’s vision to reform to promote the development of the economy and overhaul the Angolan content in the oil the governance of Angola’s and gas sector and build domestic hydrocarbons sector, with the capacities. A draft presidential aim of increasing and replacing decree on local content is depleting reserves. undergoing public consultation and debate. Angola aims to “intensify the replacement of reserves in The creation of the new order to stop the deep decline Angola National Petroleum of oil production, ensure self- and Gas Agency (ANPG) in sufficiency in refined products February, 2019, is one of the by building new refineries and most significant reforms since increase national production 2017. The head of ANPG is an capacity,” he declared at the experienced oil and gas executive and former secretary of State • President Lourenco with IMF Chief Lagarde opening ceremony of Angola Oil & Gas 2019 Conference. Paulino Jeronimo, a man with a good reputation. The licensing round covers a total negotiations until 2025. Oil resources allowed Angola to of 10 blocks, including Blocks This is not the only landmark rebuild critical infrastructure The government of Angola 11,12, 13, 27, 28,29, 41, 42 and 43 since the end of the civil war currently runs a number of in the Namibe Basin, and Block 10 bidding to be launched in Angola this year. The Agency is 16 years ago, and the country programmes, some of them in Benguela Basin. The National has made progress in reducing jointly funded with multilateral Agency of Petroleum Gas and also launching Angola’s first- ever Marginal Fields Bidding poverty. But the International organisations which offer soft Biofuels (ANPG) says it plans Monetary Fund (IMF) says the loans to SMEs in all sectors of the to host international roadshows Round, which is attracting new and existing African players, south-central African country economy. in September, involving should do more to lower the international independents and Oil production has declined engagements with investors in economy’s dependence on oil medium-sized operators via the in recent years due to falling Houston, London and Dubai, and its vulnerability to the offering of more attractive fiscal investments. Current efforst to prior to the opening of a tendering commodity’s price fluctuations terms. revive exploration is the best process in October. so that enough resources can be thing to the Angolan oil and gas “Our message to the global oil “Our new regulatory framework made available to improve living OFFSHORE VOL.9.3 industry. Angola’s midstream provides tax incentives for the standards. industry is simple: Angola is open and downstream infrastructure for business. We are ready to exploration of marginal fields,” 42 added Paulino Jerónimo. “Economic diversification in needs billions of dollars in new seriously engage with existing and sectors other than oil is central to investments to connect existing new players, be they international “Over the years, Angola has made the success of the government’s and future fields to consumption oil companies, national oil several discoveries deemed too development strategy,” IMF centres and to build the refineries, companies, independents and uneconomical for development. Managing Director Christine power plants, petrochemicals mid-sized operators and get them Our new fiscal and contractual Lagarde said in an emailed and fertilizer plants to process oil to explore in Angola,” announced terms are focused on incentivising statement. The IMF approved a and gas. Paulino Jeronimo, CEO of ANPG. the exploration and production of loan of $3.7 billion last December The new reform agenda is making such reserves for both African and to support Angola’s economic This is the first public auction in Angola’s oil and gas sector very international medium-sized E&P reforms and improvements to Angola since the pre-salt layer attractive again to international companies.” public financial management. blocks and auction of 2011 and the investors who are excited about first of a series of licensing rounds These upcoming licensing rounds, Angola’s oil revenues declined the new fiscal and regulatory that will see as many as 55 blocks along with the Marginal Fields from 23.8 percent of GDP IN 2014 environment. put up for public bidding or direct www.steadfastrigworld.com

High Tensile Bolts PTFE Coated Studbolts Gaskets

Head Oﬃce Takoradi Branch Tel: 030 2768 143 5th Flooor, 335 Place, Block 6, N1 Oﬀ Prestea Lane, Ahanta West Dst, Mobile: +233 540 104 440 North Dzorwulu, Accra - Ghana Takoradi, W/R. Email: [email protected] DOWNSTREAM

Vice-President Yemi Osinbajo reiterated recently, the Nigeria Targets 5,000,000 MT of administration’s commitment to the attainment of the objectives of the Gas Policy, Domestic LPG Utilization by 2027 saying the establishment of a Ministerial Committee and a Multi-Stakeholder National Coordinating Committee and the National LPG Expansion utilization in the country is igeria has projected a five million Metric Programme were key indicators abysmally low. In 2015 it was of the administration’s resolve. Tonnes (5,000,000 MT) of domestic, estimated that only nine percent commercial and industrial Liquefied of households utilized LPG, Osinbajo, who was speaking at N notwithstanding domestic LPG the commissioning of the Techno Petroleum Gas (LPG) utilization in the country by 2027, as it implements an ambitious national gas production of 3 million metric Oil LPG Cylinder Manufacturing tonnes (MT) per annum. Plant at Lagos, Nigeria further policy. said the removal of 5 percent Significant percentage of the VAT from the domestic pricing of population still depend on LPG has given domestic output a biomass fuels (firewood) or huge boost. traditional fuels (petrol and diesel) which pose enormous The Vice-President also health, environmental, economic discussed the advantage of and social challenges. These are the development of a Market responsible for increased carbon Cylinder Owned Mode to the emissions, massive deforestation, Consumer Cylinder Owned massive desertification and Model, saying, it would eliminate increased number of deaths the consumers’ up-front arising from air pollutions. purchase of LPG cylinders and make the product more According to the World Health accessible and affordable to the Organization (WHO), smoke people. emanating from burning wood fuels contribute significantly to “No household will need to women and children mortality in purchase or own an LPG Nigeria. cylinder. The cylinders will be delivered and retrieved by The current administration the marketers who will also be For instance, LPG utilization for direct and indirect jobs in the sub approved the National Gas Policy responsible for the maintenance households is anticipated to rise sector. in 2017 with the intent to shore and refurbishment of the to a 40 percent adoption rate up LPG utilization, as well as Nigeria has the sixth largest gas cylinders, making LPG accessible (13.8 million households) by transform the sub-sector into a deposits in the world. Despite its to a whole new segment of non 2022 and 73 percent adoption catalyst for industrialization and abundant gas deposits, domestic, LPG users,” he maintained. in 2027 (33.3m households), economic development. creating up to 2 million new industrial and commercial gas Petrol price drop of 90c per litre Frimps Oil denies expected in July, in South Africa The association said it expects petrol to decrease by 90c ‘cheating’ customers per litre, while diesel and rimps Oil Company Tetegu service station has not illuminating paraffin could Limited has been ‘cheating’ our customers as go down by 70c and 62c denied reports they so put it.” respectively. F that customers at some of It added that “Frimps Oil as a The Automobile Association (AA) its filling stations are being corporate entity will never make said it’s confident that motorists shortchanged. a deliberate attempt to ‘cheat’ will be treated to a petrol price our customers. The issue at hand drop next month. According to the company, it where the GSA locked some of values its customers to cheat our pumps (not all) happened The association said it expects them in any way because of on May 2, and since then, it has

OFFSHORE VOL.9.3 petrol to decrease by 90c their trust in the quality and already been corrected. The GSA per litre, while diesel and • South African and Angolan Presidents affordability of their products had already visited 60 of our illuminating paraffin could 44 and services. filling stations and just two of go down by 70c and 62c them had some technical issues respectively. and the international oil prices This follows inspections carried with their pumps.” remain or get better, then out by the Ghana Standards AA Spokesperson Layton Beard obviously the outlook will be Authority (GSA) which has says these decreases are due to better going into July. We exposed 10 fuel filling stations retreating oil prices. are confident we will have a engaged in under-delivering. But with two weeks still decrease.” Explaining their side of the story, remaining in the month of June, Beard says the Association hopes Frimps Oil said the GSA “were at he’s warned a lot can still change. to see more certainty in economic our station at Tetegu on March “If the rand holds where it is at policy as it affects the strength of 18 and our station passed the the moment or it strengthens the rand which in turn affects the inspection and verification tests petrol price. carried out on that day. The

FEATURE Remote location Oil & Gas Medical Protocols By-lined to Loreen Lock, Clinical Operations Director, Remote Medical International.

Many medical protocols are simple medical concerns can medics the information they against the guidelines while written for the Oil & Gas industry be complicated and quickly need to make the right decisions. setting clear thresholds for relating to countries and areas escalate if not handled correctly. These guidelines, however, consultation. This team approach where access to hospital care is “Cookbook” medicine, which should not be proscriptive and has been proven to ensure relatively easy. They vary from prescribes specific responses require appropriately trained appropriate decisions are country to country and some are to scenarios, is not a practical medical staff in place who can made and patient outcomes are stricter than others but, in the approach and to ensure best use the guidelines, interact consistently improved within the main, they are proven for the outcomes, paramedics may need with the patient and make oil & gas industry. areas in which they are used. to go beyond their normal limits an active judgement on the Such protocols, however, have of practicing medicine as seen in required course of action. With Beside the need for medical not necessarily been considered cities and developed countries. the right protocols and suitable protocols to be location-specific, for use in regions such as Having the correct, location- medical providers available they also need to be continually remote parts of Africa; isolated, specific, Remote Health Care locally, patients can be placed renewed and updated in line harsh industrial environments, Provider (RHCP) protocols in into well-defined risk groups, with latest knowledge, ongoing or offshore installations. To place standardizes the quality of additional telemedicine support learning from field cases and ensure high quality care and to medical care provided, regardless sought if needed, and evacuation medical advances. Along with the avoid unnecessary medevacs of what resources are available to hospital only becomes an peace of mind that an employer or recordables in these places, locally, and helps ensure highest option when it is appropriate to is working with a remote medical medical guidelines need to be quality, evidence-based patient do so. Generalized or outdated expert, this regular review of environment-specific. care while avoiding unnecessary protocols and poorly trained guidelines ensures employees case escalations and evacuations. staff, on the other hand, often working in harsh, industrial Medical protocols are a set These guidelines, combined with make medical evacuation the settings get the best and most of guidelines followed by an expert remote medical support default option, even if it is not appropriate medical care at that emergency medical technician via telemedicine, result in safe required. point in time. or nurse that is responsible for a implementation of treatments to group of oil & gas workers. They Of course, this approach only Summary – higher quality the same level as a physician and medical care often costs less provide a clear, logical structure to modern care quality standards. truly minimizes escalation for clinical management and and evacuation if onsite overall are a vital part of ensuring In remote regions, local medical medics have the telemedicine For oil & gas companies, using a consistent, high quality patient care may already be in place, support of experienced, board- higher quality medical provider care. For Emergency Medical but the standard of treatment certified physicians trained may add additional initial cost. Services (EMS) they are now an may vary dramatically. In such in both emergency medicine, Compared with using a standard excepted and proven method of circumstances, experts in remote occupational medicine, injury medical package, however, a increasing the level of medical medical services can offer an management, and operational carefully selected combination care in a community by providing HSE oversight and provide medicine. RHCP guidelines of bespoke services to suit the OFFSHORE VOL.9.3 paramedics with a way to appropriate, workable, RHCP need to clearly advise when needs of the location and the administer medicines and make guidelines so local physicians tele-consultation is required. provision of highly trained 46 best choices without the support can provide the necessary level Circumstances will include the medical personnel may better of a fully qualified doctor. For of care. Through oversight, prescription of certain medicines meet care needs while actually medical support in some of auditing, 100% chart review, or specific symptoms or injuries reducing the overall cost with the most remote parts of our and providing guidance to that indicate complex cases. fewer evacuations. Using remote planet, however, it is vital these local doctors, local resources Even if not required by the medical experts, both employers protocols reflect the options and can be fully integrated into a guidelines, the onsite clinician and their employees can have conditions that are available to comprehensive, high quality care can still obtain a second opinion the assurance of consistent, the clinician. package of an assured standard. from these experts if they have high quality medical support any doubts whatsoever. This When definitive hospital care RHCP guidelines need to be and a partnership that works to gives remote, highly-trained, continuously improve medical is distant from the oil & gas available for different patient local medical practitioners the operations, even seemingly presentations and provide onsite care and outcomes wherever they freedom to make judgements are in the world. Head Oﬃce 5th Flooor, 335 Place, Block 6, N1 North Dzorwulu, Accra - Ghana Takoradi Branch Oﬀ Prestea Lane, Ahanta West Dst, Takoradi, W/R. Tel: 030 2768 143 ext. 1016 | Mobile: +233 540 102 400 Email: [email protected] Website: www.transatlanticservicesltd.com

Transatlantic catering Services Ltd provides oﬀshore/ onshore Catering Service and wholesale distributor of fast-moving consumables goods across Ghana and West Africa.

Our business is to serve our client’s needs, and we achieve this by providing top class service to all levels of the companies. Along our operations, we use our knowledge and experience to develop practical solutions to client’s day to day challenges.

Our long-standing reputation for excellence has helped us in providing both catering and wholesale/distributor services to industries with a constant priority in delivering quality food products/ consumables and services in compliance with Health, Safety and Hygiene practices.

Transatlantic culture is one of pride in performance and integrity plus a level of commitment that comes from employee satisfaction and motivation.

Our culture is one of pride in performance and integrity in addition to a high level of commitment that comes from employee satisfaction and motivation.

At Transatlantic Services Ltd. quality performance, achievement of goals and the delivery of quality services is the bedrock of our existence. Our focus on delivering excellent performance consistently is fundamental to our competitiveness, hence we drive and foster a proactive quality culture which must be understood, shared and practiced by all employees as an integral part of our day to day activities. Sheila Adjetey-Anum Mensah Managing Director Expertise

Food Consumable Facilities Distribution Management

Oﬀshore, industrial & Camp Management Remote Catering