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.
Nigeria’s budget: ‘exercise in futility’ or key to a brighter future?
Rilwanu Lukman’s candidacy to become energy minister, probably with a much-expanded portfolio, has been accepted by parliament, and will be welcomed by many in the industry. He will be asked to deliver on President Umaru Musa Yar’Adua’s key policy goals, in a government promising action on all fronts, including over the stalled Niger Delta peace process (AE 149/24). The oil price downturn is a worry for planners in Abuja, but as usual in recent years, power sector and other critical infrastructure development projects have been allocated big sums in the 2009 budget. So much for the positive stuff: real worries about everything from the political outlook to public and private sector finances – and the administration’s ability to do anything about them – mean that Nigeria goes into 2009 with a stronger than ever sense of drift. Issue 152, 12 December 2008.more
Sokoto State plans IPP
In the latest independent power plant to be announced by authorities in the north, the government of Sokoto State has signed an agreement with US private equity firm Vulcan Capital Management to build a 30MW IPP (AE 149/9). Issue 151, 28 November 2008.more
ERHC in legal action
ERHC Energy has filed a lawsuit in the Federal High Court in Abuja “to stop any tampering with its rights” in Blocks 5 and 6 of the Nigeria/São Tomé Joint Development Zone (JDZ), following media reports that it had been removed from the blocks. Issue 150, 14 November 2008.more
Total farms into deep water
Total has signed an agreement with OMEL Energy Nigeria Ltd (OENL) and OMEL Exploration and Production Nigeria Ltd (OEPNL) to take a 25.67% stake in deep offshore licence OPL 285 and a 14.5% stake in deep offshore licence OPL 279. Issue 150, 14 November 2008.more
Nigerian reshuffle launched at last: paralysis beckons, action needed
President Umaru Musa Yar’Adua on 29 October released some 20 ministers from their portfolios in the 44-member government, finally moving to end months of speculation that had all but paralysed government activity in a country where the economy and policy-making are lorded over by politicians. Issue 149, 31 October 2008.more
Nigerian states line up foreign assistance for generation schemes
With Nigeria’s national power utility making little headway in improving supply, a growing number of federal states are going it alone in securing finance for independent power projects, writes Jon Marks, recently in Abuja. Issue 149, 31 October 2008.more
Nerc licenses IPP to supply industrial plant, grid
Nigerian Electricity Regulatory Commission (Nerc) has licensed Notore Power Ltd to generate 50MW of electricity from the defunct National Fertiliser Company of Nigeria (Nafcon) site in Onne, Rivers State – bringing to 29 the number of private sector operators so far licensed in the power sector. Issue 149, 31 October 2008.more
Nigerian authorities commit to northern oil search, seek new regional pipeline network
Feeling more politically assertive with a northerner in the presidency, and seeking to promote parastatals’ activity in developing infrastructure outside traditional growth areas, ‘northern elites’ are pushing NNPC and other companies to increase their activities in the politically powerful but economically under-developed region. Issue 149, 31 October 2008.more
Total to invest $3bn in OML 58 gas production
Total Exploration and Production Nigeria Ltd (TEPNG) has signed a contract with a consortium of Saipem, Ponticelli and Desicon to upgrade the Obite gas operation on OML 58, in a project that will boost gas supply to Nigeria Liquefied Natural Gas Ltd (NLNG) at Bonny and help cut flaring. Issue 149, 31 October 2008.more
Government bends to pressure to stall planned privatisations
Ahead of the promised law to break up Nigerian National Petroleum Corporation (NNPC), plans to privatise Products and Pipelines Marketing Company (PPMC) – which operates a network of petrol distribution pipelines and depots – and Nigerian Gas Company (NGC) have been shelved by President Umaru Musa Yar’Adua and NNPC group managing director Abubakar Lawal Yar’Adua. Issue 149, 31 October 2008.more
In elevated discourse and spreadsheets showing ambitious growth forecasts, Nigerian energy decision-makers are promising a major boom in electricity supply over the next five years. But the sector remains prey to Nigeria’s complex and opaque political system, with vested interests manoeuvring to sabotage the best-laid plans of honest technocrats, writes Jon Marks in Abuja. Issue 148, 17 October 2008.more
Nigeria still a ‘good bet’ for PRI market
Despite its corruption, violence and lack of political cohesion, Nigeria remains one of the best credit risks that are offered to insurers, according to a senior political risk insurance (PRI) underwriter in the Lloyd’s of London market. Issue 148, 17 October 2008.more
Odusina talks prices and pipelines
The government is anxious for international oil companies to submit their proposals for projects to promote domestic gas use – going as far as to stop exports from Nigeria LNG Ltd’s new Train 6 to hammer home the point that IOCs must sell part of their output closer to home. Issue 148, 17 October 2008.more
Indians revive Nigerian refinery scheme
The OMEL joint venture between Indian oil major ONGC and Lakshmi Mittal’s Mittal Energy has indicated that there is life in its venture to set up a first refinery in Nigeria, in an investment now put at around $4bn. Issue 148, 17 October 2008.more
AES seeks partners following shake-up of local operations
AES Corporation has created a holding company for its operations in Cameroon and Nigeria. The US developer said AES Africa Power Company (AES Apco) “will be addressing market opportunities through this vehicle and intends to seek partners in the venture”. Issue 147, 4 October 2008.more
Nigeria’s oil and gas development hostage to violence, policy doubts
Nigeria’s future upstream oil and gas projects are being put at risk by a surge in rebel attacks in the troubled Niger Delta and confusion surrounding the government’s energy policy. Issue 147, 4 October 2008.more
Ex-Im Bank sounds out Nigerian power sector
The Export-Import Bank of the United States reports seeing a rise in interest in electricity schemes since sponsoring a three-day Nigerian Independent Power Project (IPP) Financial Seminar in Abuja in April in conjunction with other US government agencies. Issue 146, 22 September 2008.more
Nigeria’s northern states gain FG, PPP commitments as PHCN’s output slumps
While PHCN struggles to maintain even the low average levels of generation achieved in recent years, state governments and other Nigerians are looking at ways of increasing electricity output using private financing and other means to launch projects. Issue 145, 5 September 2008.more
Nigeria unveils big plans for JV reform
The Nigerian cabinet has approved plans drawn up by presidential advisor Rilwanu Lukman that call for wide-ranging changes to the structure of joint ventures to tackle long-standing financing problems. Issue 145, 5 September 2008.more
OGIC calls for refinery, domestic gas reform
The final report drawn up by Rilwanu Lukman’s Oil and Gas Reform Implementation Committee (OGIC) – discussed in Upstream oil and gas, above – calls for reform of the ailing refining sector, which has been crippled by mismanagement and left the country a major importer of fuel. Issue 145, 5 September 2008.more
ExxonMobil’s Mobil Producing Nigeria Unlimited has announced the start-up of the $1.3bn East Area Natural Gas Liquids II project, which involves the recovery of 275m bbls of natural gas liquids from associated gas produced in East Area reservoirs from blocks OML 67, 68 and 70. Issue 145, 5 September 2008.more
Nigeria’s AFC drops CEO and moves on
Africa Finance Corporation acted to tackle governance abuses when the Lagos-based investment bank’s board of directors voted unanimously at an emergency meeting to suspend AFC’s founding president and chief executive Austine Ometoruwa indefinitely. Issue 144, 1 August 2008.more
Addax takes extra JDZ share
An independent arbitration tribunal has given Addax Petroleum Corporation an additional 7.2% participating interest in its operated Block 4 of the Nigeria/São Tome e Principe Joint Development Zone (JDZ). The award increases Addax’s interest in the license area from 38.3% to 45.5%. Issue 144, 1 August 2008.more
WAGP contract for Entrepose
West African Gas Pipeline Company has awarded France’s Entrepose Contracting a contract to build the delayed Lagos Beach Compression Station – a key element in getting the West African Gas Pipeline to full export capacity (AE 143/5). Issue 144, 1 August 2008.more
Stability in the Niger Delta holds the key to so many people’s problems
It was not just his much-vaunted commitment to African development that led Gordon Brown to offer already overstretched UK forces’ support for President Umaru Musa Yar’Adua’s efforts to stabilise the Niger Delta. Brown signalled that he might provide at least the sort of military training commitment that his predecessor Tony Blair used to such good effect in Sierra Leone. Issue 144, 1 August 2008.more
WAGP partners wrangle over lack of gas
The West Africa Gas Pipeline should by now be supplying Nigerian gas along the coast to western Nigeria, Benin, Togo and Ghana for power plants and industrial units. But the failure to fill the pipeline on time – it is over six months behind – is leaving a bitter taste (AE 142/24, 137/20, 134/7). Issue 143, 18 July 2008.more
Indian players see blocks revoked
The federal government has reversed the award of three oil blocks – OPLs 226, 2005 and 2006 – to India’s Essar Exploration and Production and Sterling Global Resources during last year’s licensing round. Issue 143, 18 July 2008.more
Nigeria’s GTL financing milestone
A N26bn ($220m) financing agreement for the Escravos gas-to-liquids (GTL) project was signed on 21 June between a consortium of Nigerian banks and Nigerian National Petroleum Corporation (NNPC) and its joint venture partner Mobil Producing Nigeria (MPN). Issue 142, 4 July 2008.more
Hydrocarbons restructuring
Presidential adviser on energy Rilwanu Lukman has said he expects final government approval of his report on the restructuring of the Nigerian hydrocarbons sector “in the next week or two”. Issue 142, 4 July 2008.more
Yar’Adua pushes for Ogoni solution
To much fanfare, Nigerian President Umaru Musa Yar’Adua has announced plans to hand over Royal Dutch Shell’s interests in Ogoniland to Nigeria National Petroleum Corporation (NNPC) and bring them back into production. This may not be such a big deal: Shell is hoping for a deal in which it surrenders the operatorship but retains its 30% stake in the fields, even though they accounted for just 28,000 b/d of production. Issue 141, 20 June 2008.more
Gurara Falls HEP scheme
The Niger State government has signed a memorandum of understanding with US-based concern Transatlantic Investment and Development Company Ltd to develop a 250MW hydro plant at Gurara Falls. Issue 141, 20 June 2008.more
Okoro Setu production starts as Afren unveils more work
Afren and its partner Amni International Petroleum Development Company have announced the start of production from the Okoro Setu project in OML 112. Issue 141, 20 June 2008.more
Addax farms into OPL 227
Addax Petroleum has farmed into the shallow water OPL 227 in the western Niger Delta, taking 40%. Issue 141, 20 June 2008.more
Sawmill waste to fuel plant
London-based independent power producer Revonergy has announced a memorandum of understanding with the Ondo State government to build a 14MW waste-to-energy plant fuelled by wood waste and sawdust from the sawmill industry. Issue 140, 6 June 2008.more
Centrica denies LNG deal reports
UK gas operator Centrica has denied reports from Lagos that it has signed a $12bn deal with Akwa Ibom State to build a new liquefied natural gas plant. Issue 140, 6 June 2008.more
Afam CCGT O&M bids sought
Shell Petroleum Development Company has invited companies to prequalify for a tender for operations and maintenance for the Afam VI power plant near Port Harcourt. Issue 140, 6 June 2008.more
SPDC wins JV financing deal with NNPC
Shell Petroleum Development Company (SPDC) and the Nigerian National Petroleum Corporation (NNPC) have announced a $3.1bn joint venture financing agreement to meet funding shortfalls caused by the state’s failure to pay its share of development costs (AE 139/13). Issue 140, 6 June 2008.more
Nigeria unveils master plan to harness the ‘unbelievable’ potential of gas
Nigerian energy officials have taken important steps to move forward key policy goals, despite reports of delays and in-fighting across the Yar’Adua administration. Key developments include finalising new financing structures for joint ventures, discussed in Upstream oil and gas below, and unveiling the new Nigerian gas master plan – in the process giving details of how much gas operators will be required to set aside for the domestic market. Issue 139, 23 May 2008.more
Shell nears joint venture loans deal with Nigeria, wider reforms remain in question
Royal Dutch Shell could be within a few weeks of agreeing a deal to inject cash into its Shell Petroleum Development Company (SPDC) joint venture, by extending a series of loans to bridge funding gaps caused by the state’s failure to pay its share of development costs. Issue 139, 23 May 2008.more
White Nile enters Nigeria
Better known for its activities with the Government of Southern Sudan, former England cricketer Philippe Edmonds’ White Nile Ltd has widened its horizons, buying private oil company PA Energy Africa Ltd for $1.839m in cash and 3,132,688 shares. Issue 139, 23 May 2008.more
Gulf of Guinea spuds Uquo well
Gulf of Guinea Energy has spudded the first of two back-to-back appraisal/development wells in the Uquo field on OML 13 in the eastern Niger Delta. Issue 139, 23 May 2008.more
Willbros settles in FCPA case
Engineering services company Willbros Group has agreed to pay $32.3m to settle US investigations into the payment of bribes to officials in Nigeria and Ecuador in violation of the Foreign Corrupt Practices Act. Willbros settled cases with the both the Securities and Exchange Commission (SEC) and the Justice Department. Issue 139, 23 May 2008.more
Nigeria’s ‘season of probes’ delays power financing among host of schemes
The latest initiative to revitalise Nigeria’s power infrastructure is on hold because of one of the many government investigations now under way, as President Yar’Adua’s government and parliamentarians tackle the darker side of their former sponsor Olusegun Obasanjo’s administration, writes Thalia Griffiths. Issue 138, 9 May 2008.more
AFC emerges with local, sub-Saharan and Chinese connections
Created last year to operate as an indigenous investment bank, Lagos-based Africa Finance Corporation (AFC) enjoys strong Nigerian governmental support and has hired a group of leading African professionals to promote private sector project financing and corporate development in sub-Saharan markets. Issue 138, 9 May 2008.more
Nigeria may make companies refine their crude
Nigerian National Petroleum Corporation (NNPC) general manager for refinery projects Sola Alabi has said Nigeria plans to introduce legislation to oblige international oil companies to refine a part of their crude production in the country. Issue 138, 9 May 2008.more
WAGP start-up delayed to May
The killing of a contractor by armed robbers in Nigeria has brought a new delay to the long-awaited start-up of the West African Gas Pipeline (AE 134/7). Issue 137, 25 April 2008.more
Pointer – Oil probe
The House of Representatives has set up a 26-member committee to investigate the activities of the Nigerian National Petroleum Corporation (NNPC), its subsidiaries, and the Directorate of Petroleum Resources (DPR). Issue 137, 25 April 2008.more
Nigeria eyes eastern Europe to refine her crude
Senior officials at Nigerian National Petroleum Corporation (NNPC) are discussing the possibility of refining Nigerian crude in refineries in eastern Europe to “add value”. The idea has been floated by Uthman Mohammed, manager of NNPC’s London office, but has horrified industry observers at home. Issue 136, 11 April 2008.more
Afren joins Oriental on Ebok field
Afren has lined up a sixth indigenous partnership in Nigeria, with Oriental Energy Resources to develop the offshore Ebok field. Issue 136, 11 April 2008.more
Oza farm-out
London-based Hardy Oil and Gas has agreed to farm out a 20% stake in the onshore Oza field to Nigeria’s Emerald Energy Resources Ltd. Issue 136, 11 April 2008.more
Pointer – $1.3bn-plus Usan development contract
Elf Petroleum Nigeria Ltd has given Italy’s Saipem a contract worth more than $1.3bn for the umbilicals, flowlines, risers and oil loading terminal activities for the subsea development of the Usan deep-water field on OML 138. Issue 136, 11 April 2008.more
The new Great Game: Gazprom’s interest in LNG and pipelines sets strategists’ nerves jangling
IOCs and consumer governments are indulging in intense speculation about Gazprom’s Nigerian love-in, with indications that Moscow might also revive co-operation with Algeria and invest big in several other African gas plays. Jon Marks and African Energy correspondents report on the latest turn in resource-based geopolitics, involving old rivals and some new friends too. Issue 135, 28 March 2008.more
Total joins Conoil on OPL 257
Total has signed an agreement with the local Conoil Producing Ltd to farm into the deep offshore OPL 257 licence with a 40% interest. Issue 135, 28 March 2008.more
Nigeria agreed to supply Ghana with 60,000 b/d of crude on a government-to-government basis, during talks in Abuja between President Umaru Musa Yar’Adua and his Ghanaian counterpart John Agyekum Kufuor. Issue 135, 28 March 2008.more
Caught between market realities and public frustrations, Nigeria’s leaders must address weaknesses along the electricity supply chain
An impressive array of new policies and committees has been announced to revive Nigeria’s troubled power sector, but rows over previous failures, wobbles over tariff hikes and the massive cost of the investment needed to reach 100,000MW by 2015 give cause to wonder whether the Yar’Adua administration really can turn things round. And that is without considering the likely debate between producers and government over how much gas can be redirected for domestic consumption, writes Eleanor Gillespie, recently in Abuja. Issue 134, 7 March 2008.more
Gas for Nigerian domestic users and tripling generation
The availability of gas for domestic sectors – particularly power – is a major plank of the government’s reform programme (AE127/17). A presidential statement in February ordered all oil and gas developers to allocate some gas from their reserves and annual production to the domestic market. It decreed that producers “must realign their gas development portfolios” to ensure that gas is supplied to “strategic domestic sectors”. Issue 134, 7 March 2008.more
Geometric Power orders turbines for Aba IPP
Independent power producer Geometric Power Ltd has contracted GE Energy to supply three aeroderivative gas turbines for its private power plant at Aba, the commercial capital of Abia State (AE 126/9). Issue 134, 7 March 2008.more
Yar’Adua visit highlights extent of Chinese relations
The construction of a Chinese-backed coal fired plant and President Umaru Musa Yar’Adua’s late February tour of the People’s Republic underlined a growing alliance between Abuja and Beijing. Issue 134, 7 March 2008.more
ERHC takes the long view in the JDZ and São Tomé
Controversial ERHC remains a player in the Gulf of Guinea and has high hopes for the Nigeria/STP JDZ. Issue 134, 7 March 2008.more
Total gets Usan go-ahead
The government has given Elf Petroleum Nigeria Ltd (EPNL) the go-ahead to develop the Usan field on the former OPL 222. Issue 134, 7 March 2008.more
Afren takes onshore gas blocks
Afren plc has signed production-sharing contracts for OPLs 917 and 907 in the Anambra Basin as part of its strategy to commercialise stranded gas assets. Issue 134, 7 March 2008.more
Plans are moving ahead for the most radical overhaul of Nigeria’s hydrocarbons industry in 40 years, according to the draft report seen by Our Gulf of Guinea Correspondent. Also in African Energy, Eleanor Gillespie in Abuja and Leonard Lawal in Lagos report on joint ventures and other aspects of the reform promised across the industry, which may not be to the taste of many IOCs but fulfill a need for real change in Nigeria. Issue 133, 22 February 2008.more
A national reform agenda
President Umara Musa Yar’Adua wants a stronger national industry – as he noted, opening CWC Associates’ Nigeria Oil & Gas Conference 2008 in Abuja on 19 February, “the provision of petroleum projects is dependent on expertise from other countries.” A strong entity was needed to replace Nigerian National Petroleum Corporation, which “has long witnessed sister national oil companies competing against the IOCs.” This point was a major theme for the majority of speakers who spoke of their desire to see NNPC compared to the likes of Petrobras, Petronas and StatoilHydro. Issue 133, 22 February 2008.more
How to enact change and other critical questions for Nigeria’s JV funders
With agreements between the Nigerian government and oil majors reached a quarter of a century ago up for review and renegotiation, critical questions of joint venture funding are a major element of reforms that are sending shockwaves through the sector, write Eleanor Gillespie in Abuja and Leonard Lawal in Lagos. Issue 133, 22 February 2008.more
Lukman’s take on Nigeria’s hydrocarbons reform
Presidential advisor Rilwanu Lukman used CWC Associates’ Nigeria Oil & Gas Conference 2008 to set out his stall for the reforms the Yar’Adua administration is piloting through the political system Issue 133, 22 February 2008.more
Trovoada seeks relaunch of STP offshore
Despite all the hype, the Nigeria/ São Tomé e Príncipe Joint Development Zone (JDZ) has achieved nothing – for the international oil companies who poured into this ‘new Gulf of Guinea Eldorado’ in mid-decade, nor for the people of the islands. There are hopes that the 14 February appointment of Patrice Trovoada as prime minister will inject new energy into STP’s once promising but now dormant oil sector. Issue 133, 22 February 2008.more
Gazprom eyes up Nigeria stakes, looks for Algerian upturn
These could be prime times in Africa for Gazprom, with Algerian President Abdelaziz Bouteflika’s 19-20 February visit to Moscow promising to revive the gas giants co-operation agreement with Sonatrach – if parallel thorny issues of defence sales and finance could be ironed out – and Gazprom executives in Abuja sounding bullish about the prospects for their planned projects in Nigeria (AE 130/15). Issue 133, 22 February 2008.more
‘Real companies’ line up for crude liftings
The mid-February allocation of crude oil lifting contracts by Nigeria National Petroleum Corporation (NNPC) has a more reassuring feel to it than the previous announcement, which had led market commentators to fear that President Umaru Musa Yar’Adua’s administration was learning some bad habits from its predecessors. Previous administrations had made the award of oil trading contracts, both to lift Nigerian crude and to import refined products, a key tool of patronage available to the presidency. Issue 133, 22 February 2008.more
Aje drilling under way
The Aje-4 appraisal well has been spudded on OML 113, using the Transocean Deepwater Pathfinder drillship (AE 126/13). Issue 133, 22 February 2008.more
Gesture politics all round in the Niger Delta: Time for a new approach?
President Umaru Musa Yar’Adua promised he would sort out the Niger Delta in his first 100 days in office, but observers say the political will to follow up words with deeds is lacking, and influential Nigerians are still making a lot of money out of the crisis. It was a well-meaning gesture to put Vice President Goodluck Jonathan, a former governor of Bayelsa State, in charge of finding a solution, but critics say he is part of the problem. What is more, hostage-taking is lucrative both for the militants and for the government mediators, when security officers take a cut of the payments. Issue 132, 8 February 2008.more
Projects line up, but no end in sight to Nigerian refining woes
With the first attempt at privatisation ending in disarray and the Bureau for Private Enterprises facing reorganisation, prospects look bleak for the divestment of Nigeria’s oil refineries, seen as essential to end chronic fuel shortages. On the plus side, a number of new projects are on the table, and although by no means all will see the light of day a few are making real progress, writes Leonard Lawal in Lagos. Issue 131, 25 January 2008.more
Gazprom’s Nigerian play: are the Russians serious?
Presenting itself as a global player and flexing the political muscles President Putin has bestowed on his much-favoured gas export monopoly, Gazprom has generated big headlines with its commitment to enter the Nigerian gas industry. Undoubtedly a force in the global industry, Gazprom’s strategic clout has rarely yet been translated into productive projects, writes Jon Marks. Issue 130, 14 January 2008.more
Nigeria needs to tackle flaring
Nigerian National Petroleum Corporation (NNPC)’s long-standing commitment to end the flaring of associated gas is among President Umaru Yar’Adua’s priorities, with a Flare Reduction Committee (FRC) established in Q4 2007 to push this agenda, via weekly meetings and consultations with IOCs. Issue 130, 14 January 2008.more
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