Algeria's Energy Future was launched at a half-day round-table seminar at Chatham House, London, on Wednesday 6 April.
The report was presented at the seminar by its lead authors, Jon Marks and John Hamilton, and critically assessed by Algerian and international experts. Read more
The African Energy Atlas has established itself as an indispensable resource for energy industry professionals.
The 2011 edition features more than 45 maps and charts drawn with expert care by journalist cartographer David Burles. Read more
Briefings and Reports 2
AfricaHardball is an executive dialogue that brings together policy-makers, industry leaders and analysts to discuss the key political issues affecting African markets in frank and open terms.
The next AfricaHardball roundtable will be held on 1 December in London, focusing on North Africa Read more
Briefings and Reports 3
A detailed and frank analysis of Libya’s energy sector
Published in July 2010, Libya's Energy Future provides authoritative, independently sourced analysis of Libya’s energy sector policy and history, examines the country’s governance and financial record and assesses the potential for international partners to do business with its institutions and interest groups.
Shell, Total and Agip have sold their stake in the onshore OML 40 Block to Elcrest Exploration & Production Nigeria, a consortium of local company Starcrest Nigeria Energy (owned by Nigerian business mogul Emeka Offor’s Chrome Group) and the UK-based Eland Oil and Gas.
No change to term contracts as Jonathan gears up for polls
There was no change in the system of awarding term crude lifting contracts for Nigerian National Petroleum Corporation (NNPC)’s oil in the run-up to the April elections, with the usual raft of well-connected local traders joining government and international company lifters being appointed to trade some 1.51m b/d from 1 May 2011 in deals valued at some $32bn.
Shell Petroleum Development Company (SPDC) has signed a $101m contract for a pipeline system to gather associated gas that is now flared for use in the domestic gas market with Saipem Contracting Nigeria Ltd.
Jonathan pushes Niger Delta agenda, but NPDC’s Ogoniland play remains elusive
Shell has shortlisted bidders for four onshore blocks in the Niger Delta, and with Goodluck Jonathan pushing economic growth in the region as a plank of his re-election campaign, considerable speculation surrounds other blocks, including NPDC’s plans for oil exploration in Ogoniland. But getting projects off the ground remains a challenge in this troubled territory, write Leonard Lawal in Lagos and African Energy staff Issue 206, 1 April 2011. more
‘Gas revolution’ gives timely boost to Jonathan’s election bid
With presidential and parliamentary elections only weeks away, President Goodluck Jonathan has given his campaign a timely boost by announcing significant progress in government plans to utilise Nigeria’s huge natural gas reserves, with the aim of attracting significant foreign investment in the economy and creating over 500,000 jobs.
The authorities are analysing expressions of interest in the privatisation of 11 distribution companies, officials have said. Crucially, successful bidders will not be required to carry the legacy debts of their predecessors.
A 12-year association with Nigerian oil man Prince Arthur Eze has turned Simco Petroleum Management into one of the major dealmakers on the African scene, writes John Hamilton Issue 205, 18 March 2011.more
Addax proposed as Bakassi operator
Sinopec subsidiary Addax Petroleum seems to have positioned itself as the ‘partner of choice’ for both Nigeria and Cameroon to explore the Bakassi Peninsula.
PHCN tenders show Nigeria is ‘open for business’ but systemic problems remain
At last the Nigerian government can point to some progress in kick-starting the stalled sector reform programme. “The Nigerian power sector is open for business,” Presidential Taskforce on Power chairman Professor Barth Nnaji told the Commonwealth Business Council’s power summit conference in London on 2 March – just ahead of the deadline for potential investors to submit expressions of interest (EoI) in the privatisation of eight regional distribution companies, thermal power plants and most of Power Holding Company of Nigeria (PHCN)’s other 18 successor companies.
Onshore blocks in the volatile Niger Delta are the latest Shell assets put on offer as the oil major changes its focus to the offshore, writes David Slater
The joint venture between South Africa’s SacOil and Energy Equity Resources Ltd (EER) has concluded a second farm-out agreement, this time with Transnational Corporation of Nigeria PLC (Transcorp) for OPL 281.
With April’s presidential and parliamentary elections looming, and a range of contentious issues pointing to a tighter battle than yet seen in Nigeria’s short democratic history, incumbent president Goodluck Jonathan is still hoping to force through the controversial and much delayed Petroleum Industry Bill (PIB) before the current parliamentary term ends in May.
London Stock Exchange-listed Afren aims to increase average production to 40,000 boe/d in 2011 (with an exit rate of 55,000 boe/d), from some 14,320 boe/d in 2010. However, this is a lower target than the 55,000 boe/d announced in September, due to delays on the Ebok field.
News of Nigeria’s debut sovereign eurobond has been well received by the debt markets and the issue is expected to be oversubscribed, writes Jon Marks in Paris and David Slater Issue 201, 21 January 2011.more
Nigeria prepares for polls
Incumbent President Goodluck Jonathan has overcome months of controversy by securing a dominant victory in the ruling People’s Democratic Party (PDP) primaries, making him the firm favourite for the April presidential elections.
WikiLeaks cables add new twist to the old mix of oil and influence in Nigeria
The revelations and opinions included in leaked US cables suggest it is business as usual in the Nigerian oil industry, where IOCs and indigenous players are looking to trade more acreage, speculation surrounds a proposed marginal fields round and decisions on new natural gas schemes are being pushed ahead of next April’s elections Issue 200, 17 December 2010.more
IOCs seek closer alignment to local companies
Despite concerns over a possible change of administration in April 2011, and controversy over the impending Petroleum Industry Bill, which promises a radical shake-up of the energy sector, international oil companies continue to seek investment in Nigeria’s oil and gas sector.
South Africa’s SacOil Holdings has signed a farm-in agreement with Nigdel United Oil Company to acquire a 20% working interest in the OPL 233 licence off the coast of the central delta region and adjacent to the Apoi field.
Nigerian leaders look for easy winners as the nation enters a frenzied pre-election phase
With the political elite gearing up to battle it out for the 2011 presidential nomination, the incumbent ‘GoodluckSambo’ ticket is looking for some ‘easy wins’ to outflank opponents. On the agenda is a revival of the stalled electricity sector liberalisation programme, writes Jon Marks in Abuja and Lagos
Intense battle for nomination shapes politics, policy ahead of Nigerian elections
The re-emergence of controversial former vice president Atiku Abubakar as presidential candidate for a group of powerful northern elite factions has added some very Nigerian spice to the 2011 presidential election.
Coal returns to the energy mix as Nigerian government steps up support
Companies and entrepreneurs are awaiting new energy tariffs that could enable ambitious generation schemes to get off the ground, writes Jon Marks in Abuja
A multi-billion dollar chunk of an estimated $5bn-6bn payments backlog accumulated by Nigerian National Petroleum Corporation (NNPC)’s fuel importing arm has been paid this autumn, African Energy has been told. Issue 199, 3 December 2010.more
IFC invests in Lagos bank
The World Bank Group’s International Finance Corporation has announced a $70m investment in First City Monument Bank (FCMB) to support its growth strategy and help it increase financing of small and medium enterprises. Issue 199, 3 December 2010.more
Afren arm takes onshore stake
Afren affiliate First Hydrocarbon Nigeria (FHN) has acquired a 45% interest in onshore OML 26 in Delta state. Issue 197, 5 November 2010.more
Message from the gas industry: keep projects as simple as possible
The Gulf of Guinea’s numerous liquefied natural gas (LNG) projects were never all going to succeed, but they have been dealt a blow by the development of shale gas in the United States (AE 188/24). Yet African domestic markets may be the ultimate beneficiaries as companies direct their gas to smaller, less complex schemes. Issue 197, 5 November 2010.more
Opic backs ContourGlobal CHP scheme
The US Overseas Private Investment Corporation has agreed to provide $37.8m in political risk insurance to support ContourGlobal’s construction and operation of three combined heat and power generation (CHP) plants for Nigeria Bottling Company (NBC). Issue 196, 22 October 2010.more
Ebok field sail-away ceremony
Afren and partner Oriental Energy Resources have held a naming and sail-away ceremony for the Ebok field’s mobile offshore production unit (Mopu) at the Gulf Copper Yard in Galveston, Texas. Issue 196, 22 October 2010.more
Nigeria extensions, merger
Floating production, storage and offloading vessel (FPSO) contractor Prosafe Production said Nigerian Agip Exploration Limited had exercised the first of two 12-month extension options for the Abo FPSO. Issue 196, 22 October 2010.more
West Africa downstream update – Nigerian ambitions hit by delays
Any ambitious Nigerian state governor has a refinery project, but not all of them will be built. African Energy’s latest Downstream update focuses on Nigeria, Senegal, Sierra Leone and Togo Issue 196, 22 October 2010.more
Nigeria woos the markets with bond issue, new institutions
Nigeria is preparing to launch a debut global bond that will underline the country’s rehabilitation in international markets and, more generally, highlight the growing attraction of so-called frontier markets for fixed-income and other investors. Issue 196, 22 October 2010.more
JDZ players keep options open on extensions
The Joint Development Authority (JDA) has approved a six-month extension of exploration phase I in blocks 3 and 4 of the Nigeria-São Tomé Joint Development Zone, enabling the companies involved to complete the studies needed for further exploration (AE 194/14). Issue 195, 8 October 2010.more
SacOil JV on OML 115
South Africa’s SacOil (South Africa Congo Oil Company) has formed a joint venture with Energy Equity Resources (EER) on OML 115 in the onshore Niger Delta. Issue 195, 8 October 2010.more
JDZ partners discuss second phase
The operators of Joint Development Zone (JDZ) blocks 2, 3 and 4 are negotiating terms for entry into exploration phase II with the Nigeria/ São Tomé Joint Development Authority (JDA). Issue 194, 24 September 2010.more
Nigeria lines up multi-billion dollar payment to calm nerves of fuel importers and insurers
Traders’ concern over payments delays have made NNPC’s fuel importing arm a heavily insured entity on the single-risk insurance markets. With the backlog reaching alarming levels, insurers are looking forward to the settlement of some $2.5bn in the coming weeks, writes Kevin Godier Issue 194, 24 September 2010.more
Elections timetable under fire as Jonathan announces candidacy
President Goodluck Jonathan has declared his intention to stand for the presidential nomination of Nigeria’s ruling People’s Democratic Party (PDP) when the primary season kicks off this month. Issue 194, 24 September 2010.more
Power bonds and other reforms on President’s agenda
After pledging a host of economic reforms when he became president in May following the death of his predecessor, Umaru Musa Yar’Adua, Goodluck Jonathan is expected to again place the energy sector at the centre of his presidential bid. Issue 194, 24 September 2010.more
Hardy sells up to focus on India
Hardy Oil and Gas has agreed to sell its Nigerian business for $4.55m in cash to Inergia Petroleum Limited, a newly incorporated upstream energy company focused on Nigeria. Issue 194, 24 September 2010.more
Power privatisation revived as Jonathan prepares for 2011 election
As presidential elections draw closer, plans to privatise the ineffectual PHCN could enhance Goodluck Jonathan’s position as he starts to make good on pledges to deal with Nigeria’s crippling power crisis, writes David Slater Issue 193, 10 September 2010.more
Siemens to build Geregu II plant
As Nigeria struggles to overcome its generation woes Siemens Energy has received an order for construction of the Geregu II gas turbine power plant in Ajaokuta for Niger Delta Power Holding Company (NDPHC). Issue 193, 10 September 2010.more
NLNG LPG, condensate tender
Nigeria LNG has invited companies to pre-qualify to bid for the purchase of liquefied petroleum gas and condensate from its plant on Bonny Island. Issue 193, 10 September 2010.more
Nigerians talk up sector reform with PIB expected ‘within weeks’
The controversial Petroleum Industry Bill (PIB), designed by the previous government to implement the largest energy sector shake-up in recent Nigerian history, will be passed into law by the end of August, according to petroleum minister Diezani Allison-Madueke. Issue 192, 6 August 2010.more
Seplat completes Niger Delta purchase
Seplat Petroleum Development Company, which is 45% owned by France’s Maurel & Prom, has completed the acquisition of a 45% stake in Niger Delta OMLs 4, 38 and 41 from Shell Petroleum Development Company of Nigeria, Total E&P Nigeria and Nigeria Agip Oil Company (AE 181/18). Issue 192, 6 August 2010.more
Afren acquires EER’s residual interest in OML 115
UK-based Afren has agreed terms to acquire Energy Equity Resources Oil and Gas’ residual licence interest in OML 115 in the eastern Niger Delta. Issue 191, 23 July 2010.more
Total Takes Chevron’s Block 1 stake
Total has signed an agreement to acquire Chevron’s 45.9% interest in Block 1 in the Joint Development Zone (JDZ). Issue 191, 23 July 2010.more
Drilling success for Sinopec
China’s Sinopec has struck oil in its first exploration well on OML 137, which it acquired when it bought Addax Petroleum last year. Issue 191, 23 July 2010.more
Crude supply deal
The Liberian government has signed a ‘purchase and sale’ contract with Nigeria under which Nigeria National Petroleum Corporation (NNPC) will supply 20,000 b/d of crude oil to the Liberia Petroleum Refining Corporation (LPRC). Issue 191, 23 July 2010.more
AccuGas transaction kicks off Nigerian gas financing, bankers see more such deals to come
A big new loan for a Nigerian gas project underlines growing interest from private investors in the country’s potential, writes Kevin Godier Issue 191, 23 July 2010.more
Pointers
Amenam contract extension; Gas find for Conoil, Total Issue 190, 9 July 2010.more
Lagos seals refinery deal
Following a memorandum of understanding (MoU) in May between Nigerian National Petroleum Corporation (NNPC) and China for a package of three refineries (AE 187/19), the Lagos state government has agreed details of a 300,000 b/d plant to be sited in the Lekki Free Trade Zone. Issue 190, 9 July 2010.more
Sun also rises for Delta interests
A new and obscure player has emerged in the battle to secure choice sub-Saharan Africa oil and gas reserves, with a $4.8bn bid by Lagos-based Sunrise for ExxonMobil’s Nigeria assets. Issue 189, 25 June 2010.more
Nigeria gets new supply ‘template’ as government sees way towards fuelling gas-to-power boom
Two new committees to spearhead and monitor reform and efforts to unify contracts reveal the president’s focus on achieving stable power supply Issue 189, 25 June 2010.more
In statements, press briefings and interviews, Royal Dutch Shell on 21-22 June sought to reassure Nigerian communities that it was reviewing the much-derided safety of its local operations following the BP oil spill in the Gulf of Mexico and making a vital contribution to the nation’s economy. Issue 189, 25 June 2010.more
Government looking to pick ‘low-hanging fruit’ to raise power output and ensure Jonathan’s future
Accelerating Nigeria’s energy partnership with Germany might allow the Jonathan government to raise electricity output and revive industry. A big boost for the power sector would promote the new president’s claim to be a serious candidate for the 2011 elections, write Jon Marks and David Slater Issue 188, 11 June 2010.more
Big role for Tukur
The Nigerian-German Energy Partnership’s Nigerian chair is influential former diplomat Alhaji Hassan Tukur, who on 17 May became President Goodluck Jonathan’s new principal secretary, replacing David Edevbie, who was close to disgraced former Delta state governor James Ibori (AE 187/4). Issue 188, 11 June 2010.more
KBR refinery contract
Houston-based FPR Inc has given KBR a contract to provide design and early engineering services for the development of the Araromi refinery project in the OK Free Trade Zone in Ogun and Ondo states, about 100km east of Lagos. Issue 188, 11 June 2010.more
USTDA backing for renewable energy
The US Trade and Development Agency has awarded more than $850,000 in grants to enable the recipients to identify clean and sustainable sources of energy. Issue 188, 11 June 2010.more
NNPC reform as elusive as ever as Jonathan lines up a 2011 presidential bid
Goodluck Jonathan and his allies have proved ruthless in their efforts to reshape the Nigerian energy industry, with the president firing the second NNPC head of his short tenure, while his crackdown on corruption is removing some powerful PDP figures opposing his bid for a second term Issue 187, 28 May 2010.more
Who is Austen Oniwon?
The new Nigeria National Petroleum Corporation (NNPC) group managing director is a low-profile Harvard and Oxford-educated engineer from the central Kogi state, who joined NNPC in 1977 and became Warri Refining and Petrochemicals Company’s head of planning in 1987. Issue 187, 28 May 2010.more
SPDC’s integrated oil and gas project to start supplying IPP
Shell Petroleum Development Company of Nigeria (SPDC) has announced that its integrated oil and gas project in Bayelsa state will begin supplying gas to an independent power project (IPP), the Imiringi Gas Power Plant, as well as to the Nigerian Liquefied Natural Gas plant in Rivers state from June. Issue 187, 28 May 2010.more
Chinese promise Nigeria refinery investment package
A Chinese deal to build three refineries could help strengthen the government’s hand in deregulating the downstream sector while giving Beijing access to oil supplies. Issue 187, 28 May 2010.more
Acergy contract
Acergy has been awarded a contract valued at $120m for work offshore Nigeria in shallow water. Issue 187, 28 May 2010.more
Nigeria’s Jonathan seeks balance and dynamism with ‘northern elite’ deputy
Following the death of President Umaru Musa Yar’Adua on 5 May after a prolonged illness, vice president Goodluck Jonathan has been elevated to the presidency after several months filling in as the acting head of state. With many of Nigeria’s political elite still deeply unhappy at a southerner taking office during the agreed presidential tenure for the north, Jonathan has tried to calm the controversy by appointing the relatively unknown Kaduna state governor Alhaji Mohammad Namadi Sambo as vice president. Issue 186, 14 May 2010.more
Financiers report ‘flight to quality’ as Nigeria’s top banks emerge from crisis
Having undertaken Africa’s biggest-ever banking sector bailout last year, Nigeria is clawing its way back to a more respectable profile in trade and project finance circles, according to market players who talked to Kevin Godier Issue 186, 14 May 2010.more
Pricing fluctuates for Nigerian oil deals
A London-based trade financier said refined crude oil products still represented “the key market” for trade financiers in Nigeria, reporting that pricing was “fairly stable”. But other market players who talked to African Energy had a different analysis. Issue 186, 14 May 2010.more
Wood-waste project progresses
US renewable energy developer Revonergy says it has been assigned the rights to develop and own a wood waste-to-energy project in Ondo state (AE 161/15, 140/9). The company said a “very significant amount” of development had taken place and it was ready to proceed to the next phase, consisting of securing power purchase agreements, finding a local partner and bringing the project to a financial and technical close. Issue 186, 14 May 2010.more
Nigeria’s new oil team enthusiastic about local content, less sure about legislating relations with IOCs
The Jonathan administration is signalling a desire for dynamic policy-making, but for all the personnel changes and policy statements, Abuja’s ability to enact deep-rooted change remains in question. African Energy rounds up the new team’s approach to key policy issues Issue 185, 30 April 2010.more
New appointments, corporate restructuring in Nigerian hydrocarbons industry
The federal government on 26 April approved more appointments at the top of the oil industry, with further changes in the senior managements of Nigerian National Petroleum Corporation (NNPC), several of its subsidiaries and the government’s Department of Petroleum Resources (DPR). Issue 185, 30 April 2010.more
Nigeria looks to more realistic gas pricing to relaunch electricity industry
With gas prices for producers set to become more attractive, the Jonathan administration is hoping for a genuine breakthrough in bringing substantially more generation capacity on stream, write Leonard Lawal and David Slater Issue 185, 30 April 2010.more
Mart prepares for drilling
Toronto Venture Exchange-listed Mart Resources and its partners are preparing to launch their 2010 drilling programme, starting with the UMU-6 development well on the Umusadege field. Issue 185, 30 April 2010.more
So much to do, so little time to do it, as Jonathan takes power with new-look Nigerian cabinet
Goodluck Jonathan’s new cabinet is packed with surprises that the acting president hopes will cement his authority and speed up government business. Ministers have been told to move quickly to implement their ‘national assignments’, but politicking ahead of the 2011 elections will slow down many initiatives, write David Slater and Jon Marks Issue 184, 16 April 2010.more
Making up the power deficit
After the failure of successive ministers to increase Nigeria’s generation capacity to meet targets, missing out on the 6,000MW capacity increase expected by end-2008 and again in 2009, Acting President Goodluck Jonathan is taking on the portfolio himself until a new power team has been assembled to work in conjunction with the power sub-committee of the new Presidential Advisory Council. Issue 184, 16 April 2010.more
Lukman, Babalola out as Jonathan reshuffles Nigerian cabinet
Acting President Goodluck Jonathan has submitted to the senate his first 33 nominations to fill government ministries a week after sacking the cabinet in a bold move to stamp his authority on government. Issue 183, 26 March 2010.more
New minister backs PIB
The new government is committed to pushing the Petroleum Industry Bill (PIB) through parliament this year, despite the departure of the law’s architect, ex-petroleum minister Rilwanu Lukman. His expected successor, Odein Ajumogobia, is close to ailing president Umaru Musa Yar’Adua, and has acting president Goodluck Jonathan’s confidence, having been an influential player in trying to get the PIB onto the statute book (AE 179/19). Issue 183, 26 March 2010.more
New rig contract for Afren
Afren and its partners Oriental Energy Resources and Amni International Petroleum Development Company have signed a second drilling contract with Transocean. Issue 183, 26 March 2010.more
Delta ceasefire, oil reform in limbo as rival camps vie for power
The return of President Umaru Musa Yar’Adua from Saudi Arabia, where he has been in hospital for more than three months, is threatening to undermine acting president Goodluck Jonathan’s efforts to consolidate his position and derail attempts to get the Niger Delta ceasefire and controversial oil sector reforms back on track (AE 178/1). Issue 182, 12 March 2010. more
Wapco to deliver first gas to Ghana
There appears to be progress in the long-running saga of the West African Gas Pipeline Company (Wapco)’s failure to deliver Nigerian natural gas to Ghana. Issue 182, 12 March 2010. more
Seplat’s Niger Delta purchase puts spotlight on shift in Nigerian equity interest ownership
Shell’s decision to sell its 30% interest in three Niger Delta permits has highlighted the role of indigenous companies, whose ownership and management structures are very different from the companies they will replace. Leonard Lawal in Lagos has been looking into the Seplat Petroleum Company consortium Issue 181, 26 February 2010.more
AIM-listed Sirius Petroleum has announced an acquisition and joint operating agreement with Nigeria’s Del Sigma Petroleum for development of the Ke marginal field on OML 55. Issue 181, 26 February 2010.more
KBR awarded contract for Eleme plant revamp
Texas-based KBR has been awarded a technology licence and engineering services contract for the revamp of the 550,000 t/yr Indorama-owned Eleme Petrochemicals Company ethylene plant in Port Harcourt. Issue 181, 26 February 2010.more
Delta ceasefire erodes as Nigeria’s politics remain in crisis
The government is determined to hold a licensing round by year-end for onshore and offshore fields – as forecast by African Energy (AE 179/19) – in a very difficult political environment. Issue 180, 5 February 2010.more
SPDC partners sell stakes in the Niger Delta blocks
Shell Petroleum Development Company of Nigeria (SPDC) has agreed to transfer its interest in three production licences in the Niger Delta to a consortium led by two Nigerian companies. Issue 180, 5 February 2010.more
Oando to raise N21bn in rights issue for upstream plays
Oando has launched a rights issue involving 301.7m shares of 50 kobo each, at N70 per share, on the basis of one new ordinary share for every three shares held. Issue 180, 5 February 2010.more
London Stock Exchange-listed Afren has found a larger than expected hydrocarbon column in its Ebok-6 appraisal well, leading it to raise its reserves estimate to 135m bbls, of which 23m bbls is estimated as recoverable. Issue 179, 22 January 2010.more
Yar’Adua, Lukman, PIB: speculation is rampant about Nigerian politics and energy
Speculation is growing that the political order has changed in important ways in recent weeks, during which ailing President Umaru Musa Yar’Adua has remained in Saudi Arabia for medical treatment amid growing concern that a dangerous power vacuum is growing. Issue 179, 22 January 2010.more
JVs talk money while Abuja considers marginal round
The state of political limbo has resulted in much government business coming to a standstill, with delays to the proposed PIB and the stalling of deregulation in the oil and gas sector. But it has emerged that several international oil companies (IOCs) have begun discussions with the federal government over the renewal of oil block licences since the High Court ruling. Issue 179, 22 January 2010.more
State of The Nation: smoke and mirrors cloud outlook as IOCs reassess their position in Nigeria
The politicking and uncertainty that surround President Yar’Adua’s illness have further undermined confidence in the ability of Nigeria’s venal leadership to reform, while electricity and other key sectors remain in a catastrophic state. But despite this unpromising outlook predictions that oil majors are preparing to quit – or that soldiers are ready to return to government – may be premature, if not plain wrong, write Jon Marks, Kevin Godier and David Slater Issue 178, 12 January 2010.more
From Delta crisis to energy sector reforms, Yar’Adua’s illness poses difficult questions
The Christmas day attack on a flight bound for Detroit in the United States by well-heeled Nigerian student turned radical jihadist Umar Farouk Abdulmutallab was an acute embarrassment to the Nigerian government. Issue 178, 12 January 2010.more
Nigerian electricity supply industry remains in disarray
The Federal Government has again failed to meet one of President Umaru Musa Yar’Adua’s most treasured commitments, to raise generation output to at least 6,000MW, with 10,000MW installed capacity working by end-2010. Issue 178, 12 January 2010.more
Oyo oilfield starts up
The local Allied Energy and Eni affiliate Nigerian Agip Exploration have started production from the Oyo oilfield in the Niger Delta deep offshore, about 75km from the coast. Issue 178, 12 January 2010.more
Total find on OPL 223
Total Exploration & Production Nigeria Ltd has announced a light oil discovery in the southern portion of deep-water OPL 223 offshore south-eastern Nigeria. Issue 178, 12 January 2010.more
2009 Archive – Nigeria
GE, Rockson win Kaduna power plant contract
The federal government has given GE Oil & Gas and Rockson Engineering Nigeria a $230m contract for the installation and commissioning of a 150-200MW dual fired power plant in Kaduna. Issue 176, 11 December 2009.more
ERHC expands interests
Houston-based ERHC Energy has signed a non-binding memorandum of understanding (MoU) with Circle Ltd and Excel Exploration and Production to negotiate acquisition of a working interest in the Eremor marginal field in OML 46. Issue 176, 11 December 2009.more
The existing regime is far from perfect, but local and international investors are alarmed at a Petroleum Industry Bill that is supposed to improve things for everyone, writes David Slater. Issue 175, 27 November 2009.more
Afren completes appraisal well
Afren has announced the completion of the Ebok-5 appraisal well. The well was drilled by the Transocean Adriatic IX jack-up drilling unit to a total depth of 3,743ft. Issue 175, 27 November 2009.more
Long-term relationship starts with stake in Nigeria’s Oyo field
US company Pacific Asia Petroleum has teamed up with CAMAC Energy Holdings, part of Houston-based CAMAC International, in a cash and shares deal to buy its stake in the deep-water Oyo oilfield. The transaction is expected to close in Q1 10. Issue 175, 27 November 2009.more
Oando plans to list in London as Nigeria’s indigenous players come of age
Oando’s listing plans underline the growth potential of serious local companies, which are seeking a further boost from the Petroleum Industry Bill. Fresh faces such as Russia’s Gazprom are also being encouraged to buy into Nigeria’s new-look industry. Issue 174, 13 November 2009.more
West-Pac to ‘supply 2,000MW’ on the cheap to Lagos industry
Manufacturers Association of Nigeria (Man) has entered into a partnership with US-based West-Pac Electrical Nigeria to install 2,000MW in the Lagos industrial area by 2013. Issue 174, 13 November 2009.more
AfDB backs sector reform
The African Development Bank (AfDB) has approved a $159m loan to finance the Economic and Power Sector Reform Programme (EPSERP). The loan is the AfDB’s first budget support operation for Nigeria, and will be implemented over a two-year period with the aim of developing the country’s non-oil sector and increasing electrification. Issue 174, 13 November 2009.more
Majors give updates on gas developments
Royal Dutch Shell and partners are still considering whether to move forward with the second phase of the Gbaran Ubie oil and gas project, which will monetise another 3.4trn ft3 of gas extracted from the field. Issue 174, 13 November 2009.more
Good news from Nigeria: ceasefire holds up as rebels seek further talks
In a promising move for peace in the Niger Delta, rebel groups have reinstated a ceasefire signed in July to pursue further talks with the government. The key to ending the conflict and reaching a compromise is that the government addresses Niger Delta inhabitants’ most pressing grievance – a more proportionate distribution of oil and gas revenues from the region, which account for approximately 80% of government revenue. Issue 173, 30 October 2009.more
Consultant sought for wind farm project
The Federal Ministry of Power is inviting bids for consultancy services for a planned 10MW wind farm project in Katsina State. Issue 173, 30 October 2009.more
Oando in Gazprom tie-up
Fast-growing local player Oando has signed a memorandum of understanding (MoU) with Russia’s Gazprom to collaborate in the development of oil and gas assets and infrastructure in the West African region and the Gulf of Guinea. Issue 173, 30 October 2009.more
Shell restarts Soku gas plant
Shell Petroleum Development Company resumed operations at the Soku gas plant in Rivers State on 15 October following repairs to pipelines. Issue 173, 30 October 2009.more
Pointer – Acergy contract for Escravos gas Issue 173, 30 October 2009.more
Nigeria upstream update – looking beyond the shut-ins to create a more transparent industry
The prospect that a militant ceasefire in the Niger Delta may eventually form the basis for an enduring peace process provides a ray of hope for the Nigerian oil and gas industry, which is still waiting for Rilwanu Lukman’s Petroleum Industry Bill to set the pace for reform, writes Leonard Lawal in Lagos, with Jon Marks. Issue 172, 16 October 2009.more
Pointer – Seismic acquired over Aje field block Issue 172, 16 October 2009.more
Pointer – Bonga contract for Saipem Issue 172, 16 October 2009.more
Sanusi makes his mark on Nigerian banks
Central Bank of Nigeria’s $2.6bn rescue package for five ailing banks signals a tough new phase of reform under governor Lamido Sanusi. Issue 171, 2 October 2009.more
Hydro rehab adds 500MW to generation capacity
Rehabilitation work at hydroelectric power stations has added 507MW to the national grid, bringing total generation to 2,700MW, according to a statement by Power Minister Lanre Babalola. Issue 171, 2 October 2009.more
Pointer – Mobil to build power plant Issue 171, 2 October 2009.more
CNOOC seeks ‘6bn bbls’ reserves
China National Offshore Oil Corporation (CNOOC) is seeking a deal with the government for 6bn barrels of reserves. Abuja says CNOOC will not receive as much as that, but Nigeria could sell them its stakes in joint ventures. Issue 171, 2 October 2009.more
Pointer – Oriental launches Ebok field development Issue 171, 2 October 2009.more
Government backtracks on refinery deposit
The government has decided to remove a statutory deposit of $1m for every 10,000 barrels refinery capacity imposed on potential investors in the refining sector. Issue 171, 2 October 2009.more
Small refinery for Ogun State
A local company called Anthonio Oil plc has announced plans to relocate a 27,000 b/d refinery from Cyprus to Iwopin village in Ogun Waterside Local Government Area of Ogun State. Issue 171, 2 October 2009.more
Asian companies as prone to big man politics as western rivals
Central Bank of Nigeria governor Lamido Sanusi’s crackdown on five prominent banks over alleged abuses, including ramping up share prices and building non-performing loans on transactions involving ‘big men’ cronies, has brought a much-need reality check to the sector. It is a wake-up call to all those within Nigeria and outside who believed the oil-fuelled boom of 2006-08 formed the basis for a real break from the abuses and malfunctioning markets that have blighted the economy for decades. Issue 170, 18 September 2009.more
Little hope of peace from Delta ceasefire
Militants in the Niger Delta have agreed to extend their ceasefire by 30 days but there has been little improvement in the situation on the ground. Some militants have surrendered their weapons in public ceremonies, but one source in the Delta told African Energy: “it’s just tokens, more guns are still being hidden in the creeks.” Issue 170, 18 September 2009.more
Pointer – Niger Delta pressure study Issue 170, 18 September 2009.more
Nigeria power update – still searching for 6,000MW
There are many generation projects lining up, and huge potential from indigenous sources of energy and capital. As African Energy’s new Nigeria power update shows, a crisis in the Niger Delta and chronic governance problems continue to keep many schemes on the drawing board – and have driven away Globeleq and other investors. Issue 169, 4 September 2009.more
Trans-Saharan pipeline politics defy business logic
Gazprom’s joint venture with Nigeria has boosted a project that continues to attract the backing of governments and IOCs despite continuing doubts over its commercial viability Issue 169, 4 September 2009.more
Sirius Petroleum wins financing for potential Nigeria play
The Nigeria-focused Sirius Petroleum, previously known as Global Gaming Technologies, has announced that it has negotiated financing from a London-based family office trust, Capital Investment Office (CapInvest), for a potential marginal oil field project. Issue 169, 4 September 2009.more
Pointers – Afren takes 28% stake in Okwok; KNOC wins lawsuit against government; Addax starts JDZ drilling Issue 169, 4 September 2009.more
Local banks cover JV financing
In a move that points to the potential offered by the evolution of Nigeria’s banking sector, a consortium of eight indigenous banks led by United Bank for Africa (UBA) have extended $265m of supplementary refinancing for ExxonMobil and Nigerian National Petroleum Corporation (NNPC). Issue 167, 17 July 2009.more
Fuel supply risks, Delta militants undermine Nigerian power initiatives
The nation has been transfixed by the Niger Delta crisis, as the Movement for the Emancipation of the Niger Delta’s attack on a jetty in Lagos and subsequent 60-day ceasefire offer took the conflict to a new level. A series of senior military and economic appointments have suggested that President Umaru Musa Yar’Adua’s slow-moving administration wants to bring new thinking to old problems (as well as promoting ever more northerners to the top jobs). Issue 167, 17 July 2009.more
Generation falls further
Average electricity generation fell to 2,305.9MW/h in Q1 09, from 2,833.3MW/h in Q4 08 and 3,000MW/h in Q1 08, according to the Central Bank of Nigeria’s quarterly economic report. Issue 166, 3 July 2009.more
Downstream update – West and Central Africa’s plentiful crude supply doesn’t mean big profits
West and Central African states have no shortage of refinery projects, but access to crude oil alone is not enough to make a refinery economic, as producing states like Nigeria and Republic of Congo can testify. Issue 166, 3 July 2009.more
Nigeria calls for bitumen investors as part of mining revival
Keen to diversify its economy and revive the mining sector to balance the effects of lower oil prices, Nigeria has invited bids to develop its bitumen deposits, writes Eleanor Gillespie. Issue 166, 3 July 2009.more
Nigeria’s push for a better deal raises IOC concerns over upstream terms
All sides are talking about building confidence, but with IOCs fearful that the landmark Petroleum Industry Bill will slash their profits, and Nigerian politicians keen to influence policy across the sector, the timetable for vital energy industry reforms is slipping ever further behind. Lack of trust over the upstream industry’s future shape is delaying investment and holding up reforms vital for gas and power sector developments, write Leonard Lawal in Lagos, Our Gulf of Guinea Correspondent in Abuja, and Jon Marks. Issue 165, 19 June 2009.more
Lukman’s NNPC unbundling gathers steam
No one doubts Dr Rilwanu Lukman’s pedigree in the Nigerian oil industry, but his return as oil minister last year, formalising his central role in shaping the Yar’Adua administration’s policy, was still a gamble – at least as far as preserving the veteran engineer’s reputation. Issue 165, 19 June 2009.more
World Bank commits more than expected to Negip scheme
The World Bank Group board has approved $600m of assistance to the power and gas sectors, comprising $200m in International Development Association soft loans for network investments and technical assistance to improve electricity supply, and $400m in partial risk guarantees (PRGs) to support domestic gas market development. Issue 165, 19 June 2009.more
GE tie-up
General Electric Company and the Federal Government have signed a landmark “company-to-country” agreement aimed at promoting collaboration between GE and Nigerian public and private sector organisations driving critical infrastructure projects across the country. Issue 164, 5 June 2009.more
Oando wins swamp drilling contract
Oando Energy Services Ltd has signed a $150m two-year drilling contract with Nigerian Agip Oil Company for its oilfields in the Niger Delta swamps. Issue 164, 5 June 2009.more
While little has been heard since UK Prime Minister Gordon Brown met Nigerian President Umaru Musa Yar’Adua last July and promised to help tackle illegal bunkering of fuel from the Niger Delta, officials say technical work has been going on behind the scenes (AE 144/24). Issue 163, 22 May 2009.more
Usan order for Nexans
Hyundai Heavy Industries has given France’s Nexans a E7m ($9.5m) order to manufacture and supply the topside power, control, instrumentation and telecommunications cables for the floating production storage and offloading (FPSO) vessel for Total’s Usan deep-water oilfield. Issue 163, 22 May 2009.more
Gas supply constraints continue to hobble industry
Power Minister Dr Rilwan Olanrewaju Babalola was sounding bullish when in early May he told journalists in Abuja that the fabled generation of 6,000MW could still be achieved before year-end. Issue 162, 8 May 2009.more
Mixed outlook for Nigerian LNG schemes
The government is promising action, but many projects remain on the drawing board as decision-making drags on. Issue 162, 8 May 2009.more
Waiting on Gazprom’s Nigerian play
The inclusion of Russian giant Gazprom on Nigerian National Petroleum Corporation’s list of the 15 companies shortlisted as potential investors in Nigeria’s domestic gas infrastructure did not go unnoticed by policy-makers and security experts (AE 147/1). Issue 162, 8 May 2009.more
Nigeria dominates part two of African Energy’s latest West African power update. Blighted by ridiculously low generating capacity, successive governments have promised to raise output to 6,000MW, committing billions of dollars on paper at least, only for production to remain at half or less that number. The table below shows the substantial number of projects being promoted, of which a few may start up in 2009/10 helping to ease pressures. Elsewhere in the region, the situation looks a bit more promising, helped by progress in developing the West African Power Pool. Issue 161, 24 April 2009.more
NNPC reshuffle
Nigeria National Petroleum Corporation has replaced six group executive directors (GEDs) in a reshuffle ahead of planned restructuring spearheaded by Petroleum Resources Minister Rilwanu Lukman. Issue 161, 24 April 2009.more
Plans for Ebok development
Following a successful appraisal well late last year, Afren plc and its partner Oriental Energy Resources plan to start up the Ebok field in early 2010 with production of 15,000-25,000 b/d, rising to 35,000-50,000 b/d by year-end. Issue 160, 3 April 2009.more
Why build a pipeline across several borders and through potentially volatile regions when you could instead export the gas as LNG to a choice of markets? John Hamilton in Paris and Jon Marks examine the latest efforts to build momentum behind the TSGP. Issue 160, 3 April 2009.more
Chevron completes sale
Chevron Africa Holdings Ltd has completed the sale of Chevron Nigeria Holdings Ltd (CNH) to Corlay Global SA, a Panamanian company owned by a consortium of Nigeria’s MRS Holdings Ltd and Côte d’Ivoire’s Petroci Holding (AE 147/20). Issue 160, 3 April 2009.more
Akpo start-up
Total Upstream Nigeria Limited (TUPNI) has started production ahead of schedule from its Akpo deep-water gas and condensate development on OML 130. Issue 159, 20 March 2009.more
Addax scores drillship for JDZ
Operator Addax Petroleum Corporation has signed an agreement with Transocean for the use of the Deepwater Pathfinder drillship to drill the Kina prospect on Block 4 in the Joint Development Zone. Issue 159, 20 March 2009.more
Nigerian National Petroleum Corporation subsidiary Nigerian Gas Company is seeking prequalification bids for three pipeline contracts. Issue 158, 6 March 2009.more
Nigeria upstream projects update – majors and top indies push on despite delays and frustrations
The Niger Delta’s political violence, unresolved issues of joint venture funding and sector reform, and the problems faced by IOCs who are called upon to deal with often untested – and in many cases unknown – local partners have hampered the growth of upstream projects. But Nigerian E&P retains great potential, especially in its deep offshore, which majors with deep pockets continue to develop. A few well-connected and focused independents, such as Addax and Afren, are also building significant portfolios, analysis of ongoing projects listed in African Energy’s latest Nigeria upstream update shows, even if too many permits remain all but ignored by their equity holders. Issue 157, 20 February 2009.more
Gasol, Teekay plan floating LNG system for Nigerian near-shore
Gasol and Teekay are planning a near-shore liquefaction process to monetise gas in the Gulf of Guinea region. Issue 157, 20 February 2009.more
Further power shocks as new Nigerian minister pledges unbundling, EFCC arrests Owan for graft
There was dramatic confirmation that Nigeria’s power sector is bracing to undergo another period of political flux when, on 4 February, it was announced that respected regulator Ransome Owan and other officials had been held on corruption charges. The EFCC’s swoop came as new Power Minister Rilwan Babalola is seeking to stamp his mark on the troubled sector and add those missing gigawatts to the national grid as quickly as possible – even if it means challenging other key players, write Jon Marks and Leo Lawal. Issue 156, 6 February 2009.more
Pointer – Wärtsilä to supply 100MW plant to Lafarge Cement
The government has cancelled the award of two deep-water oil blocks to a South Korean consortium claiming that the group failed to make the necessary payments. The award of OPL 321 and 323 in the 2005 licensing round was controversial because the acreage was initially given to India’s ONGC Videsh Ltd (OVL), which had offered a $485m signature bonus, but then given to Korean National Oil Corporation (KNOC), which Nigeria claimed had the right of first refusal over the acreage (AE 97/21). Issue 156, 6 February 2009.more
Oando boosts portfolio, buying into Agip producing block
Oando Exploration and Production Ltd has announced the payment of $197m to Agip for a 15% stake in OML 125 and OML 134, which it said made it the first indigenous company to participate in a producing deep offshore oil block. Issue 155, 23 January 2009.more
Call for faster JDZ exploration
The presidents of Nigeria and São Tomé & Príncipe have called on oil companies with acreage in the Joint Development Zone to move ahead with exploration. Issue 155, 23 January 2009.more
Lukman lines up his top teams as Nigeria looks to ‘safe pair of hands’
While Nigerians have been speculating once more about the future of ailing President Umaru Musa Yar’Adua, his new Petroleum Resources Minister Rilwanu Lukman has shown a taste for decisive action that has been largely missing in recent months, when promises to restructure Nigerian National Petroleum Corporation (NNPC) and other key energy bodies were let slip (AE 152/24, 149/24). Issue 155, 23 January 2009.more
Pointer – Lukman steps down from Afren; Total find on Nigeria’s OML 102
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