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.
Atlanta, Georgia-based GE Energy has announced a contract to supply a Belfort, France-manufactured Frame 9E gas turbine generator and accessory equipment to Ibom Power Company for its independent power plant in the southern Akwa Ibom region. GE Issue 93, December 2005.more
Draft PSC ratified
The Nigeria-São Tome Joint Development Authority’s Joint Ministerial Council on 16 November ratified a draft of the production-sharing contract (PSC) for the five offshore oil blocks awarded in May. Issue 93, December 2005.more
Court rules gas flaring illegal
A federal high court judge has ruled that gas flaring in the Niger Delta violates the rights to life, health and dignity of the region’s residents and has ordered an immediate halt to the practice. Issue 93, December 2005.more
Green light for Mambilla
The Federal government has approved the start of work on the 2,000MW Mambilla Plateau hydropower project in the north-eastern Adamawa state. Issue 92, November 2005.more
GE wins Alaoji SCGT contract
GE Energy is to supply four Frame 9E gas turbines for a new 480MW simple-cycle power plant to be constructed in Alaoji, Abia state, in 2006. Issue 92, November 2005.more
Mittals look for opportunities
India’s LN Mittal group and Oil and Natural Gas Corporation (ONGC), who have tied up to seek business abroad, are looking at investment opportunities in Nigeria (AE 90/22). Issue 92, November 2005.more
Noble replaced in JDZ Block 4
Addax Petroleum has signed a memorandum of understanding with ERHC Energy to replace Noble Energy in the consortium exploring Block 4 of the Joint Development Zone. Issue 92, November 2005.more
Coal sell-off in prospect
The government is preparing to privatise its 100%-owned Nigerian Coal Corporation (NCC), although a sale is unlikely to take place this year. Issue 92, November 2005.more
Power sell-off to launch next year with ‘actual divestment’
Full privatisation of the National Electric Power Authority successor company, Power Holding Company of Nigeria (PHCN), will start next year (AE 90/11). Issue 91, October 2005.more
Obasanjo turns licensing round into controversial legacy
Nigeria has favoured premium-paying Asian NOCs in its 2005 round, while President Obasanjo has courted controversy by rewarding friends and allies through local content requirements. While Obasanjo’s rule has been lauded for starting to clean up Nigeria, this risks leaving a bitter legacy. Issue 90, September 2005.more
Pitfalls remain, but such is the potential that Nigerian IPPs line up
After so many false dawns it may be hard to take the Nigerian infrastructure investment boom seriously, but with the numbers of IPPs stacking up, this time the markets may really be positioning themselves to help Nigeria to emerge from its dark age. Issue 90, September 2005.more
Afren in deal for marginal field
Rilwanu Lukman’s Afren has signed a financing and production-sharing agreement with the local Bicta Energy & Management Systems for the development of the offshore Ogedeh field, awarded to Bicta in the marginal field allocation programme. Issue 90, September 2005.more
After Saro Wiwa IOCs improved so much, but more remains to do
The hanging of writer and Ogoni rights campaigner Ken Saro-Wiwa was intended by Nigeria’s then military rulers to decisively intimidate activists demanding a better deal for the oil-rich Niger Delta’s people. But the Delta remains a turbulent place, while Saro-Wiwa’s 10 November 1995 execution has proved a seminal event in oil industry history. Issue 90, September 2005.more
Rome agrees to CDM projects
The Italian and Nigerian governments have signed a voluntary agreement to develop greenhouse gas offset projects under the Kyoto Protocol, according to a senior executive at Italy’s state oil and gas company Ente Nazionale Idrocarburi (Eni). Issue 89, August 2005.more
Licensing round bids in with Asians prominent
Nigeria has received bids from more than 280 local and international companies for the 75 blocks on offer in its 2005 bid round (AE 85/17). Big-name bidders include Shell, ExxonMobil, Chevron, Agip, Total and ConocoPhillips. The commercial bidding conference is tentatively set for 26 August. Issue 89, August 2005.more
Contracts flow as Addax Nigeria expands upstream
Addax Petroleum Development Nigeria is budgeting for a $380m spend – to come from its balance sheet and capital markets – for development of Okwori, a complex marginal field with 12 very small accumulations and 100-plus small accumulations. Issue 89, August 2005.more
JDA postpones PSC negotiations
The Joint Development Authority has postponed contract negotiations with the successful 2004 licensing round bidders to give them more time to review the draft production-sharing contract (AE 88/21). Issue 89, August 2005.more
Shell looks to carbon credits for Nigerian IPP
While EPC bidding for Shell’s Afam VI project has closed, the project sponsors are looking to use innovative carbon credits to make this ground-breaking Nigerian IPP truly innovative, writes Nick Carn in Barcelona. Issue 88, July 2005.more
Shell set to rise again with Nigerian gas
Persistent rumours that Shell is to pull out of its Nigerian onshore operations seem premature, when examined in the context of its reserves position and trends in the global gas industry, which are working in favour of Shell’s Nigerian operations, writes Jonathan Bearman. Issue 87, June 2005.more
Total awards Akpo contracts
Nigerian National Petroleum Corporation (NNPC) has given the go-ahead for Total to begin developing the offshore Akpo gas and condensate field on OML 130. Issue 87, June 2005.more
Murky end to a messy game in Nigeria/São Tomé JDZ
Despite much anticipation, the final award of five Joint Development Zone blocks offered at end-2004 was still awaited as African Energy went to press. For all the hype about the zone’s offshore prospects and the partners’ stated commitment to transparency, the licensing round’s tortured progress points to continued difficulties in turning paper promises into a transparent economic reality. Issue 86, May 2005.more
Holding company set up for Nepa assets
Work is getting under way on reform of the power sector, after President Olusegun Obasanjo signed into law the Power Sector Reform Bill (AE 85/12). The Bureau of Public Enterprises (BPE) has established a new company to take over the assets of National Electric Power Authority (Nepa) in preparation for eventual privatisation. Issue 86, May 2005.more
Farm-out success for Eze in Nigeria and beyond
Irrepressible entrepreneur Arthur Eze has been a real survivor in the hard knuckles world of Nigerian business and is now building up a portfolio of serious African West Coast assets involving some highly competent partners. Issue 86, May 2005.more
MoU for new LNG project
Nigerian National Petroleum Corporation (NNPC), Chevron Nigeria, BG International and Shell Gas & Power Developments signed a memorandum of understanding on 13 April on the four-train Olokola Liquefied Natural Gas project (AE 83/25). Issue 86, May 2005.more
Escravos GTL award boost
The Escravos gas-to-liquids project looks finally set to get under way following the award of a $1.7bn engineering, design and procurement contract to the Team JKS consortium of Japan Gas Corporation, Kellogg, Brown & Root (KBR) and Italy’s Snamprogetti. Issue 86, May 2005.more
Equator Exploration in deal for OML 122
Wade Cherwayko’s Equator Exploration and local partner Peak Petroleum Industries Nigeria have announced an agreement to develop two oil and gas discoveries and drill an exploration prospect in offshore OML 122 in the western Niger Delta. Issue 86, May 2005.more
Aje field GTL plans progress
The partners on OML 113 have received government approval for their plans to develop the Aje field. The block was once held by Wade Cherwayko’s Abacan Resources, who had joined forces with Enron in a gas-to-power scheme in Benin. Issue 86, May 2005.more
Ambitious new bid round offers 61 blocks
The government is offering 61 blocks of varying prospectivity in its 2005 licensing round launched in late March. Judging from the number of companies who attended a roadshow in London on 4 April, interest could be intense for the more attractive acreage. Issue 85, April 2005.more
Nigeria sketches in Nepa privatisation timetable
Further details are emerging of the proposed timetable for Nepa’s privatisation, the Nigerian utility’s managing director told African Energy. Abuja hopes it will show that an infrastructure can be developed for wide-scale, secure foreign investment beyond the hydrocarbons industry. Issue 84, March 2005.more
Gurara HPP under way
The Nigerian Ministry of Water Resources (FMWR) is building a 30MW hydropower plant as part of the Gurara multipurpose water project under development in the Federal Capital Territory (FCT). Construction of the powerhouse is under way with commissioning of the plant due by end-2006. Issue 84, March 2005.more
Implementation time as Nigerian bill progresses
Nigeria’s drawn out restructuring programme cleared a vital hurdle when the Electric Power Sector Reform Bill was passed by the House of Representatives, but the schedule for Nepa’s break-up remains far from clear. Issue 83, February 2005.more
Nigeria takes on the non-performers
The withdrawal of 24 non-performing upstream licences, including a number from supermajors, is expected to raise the number of blocks that Nigeria can offer in the 2005 licensing round. Issue 83, February 2005.more
JV group formed for Aje field development for crude and GTL
Syntroleum Corporation and Sovereign Oil & Gas Company have completed the formation of an industry group to undertake the appraisal and development of the Aje field in oil mining lease (OML) 113. Issue 83, February 2005.more
BG joins Chevron in new Niger Delta LNG project, downgrades Equatorial Guinea ambitions
ChevronTexaco and BG Group have joined with NNPC to launch a new scheme for a large liquefied natural gas plant in the western Niger Delta, with the British company expected to take the unit’s initial baseload. This comes after BG decided not to join Marathon in its LNG project in Equatorial Guinea. Issue 83, February 2005.more
Nigeria late with debt payment but financiers’ confidence growing
Financial markets have been surprised by Nigeria’s failure to make an estimated $30m payment due on 15 November under the terms of oil price appreciation warrants issued as part of the 1992 London Club debt restructuring. But analysts expect the payment to be made soon, and are cautiously positive over government efforts to attract energy sector investment – which is just as well given the amount of project finance Abuja needs to mobilise. Issue 83, February 2005.more
JDA pockets up to $433m as Anadarko and Devon raise the stakes in second Nigeria/STP round
No supermajors participated this time round, but the raised prices offered to the Nigeria/STP Joint Development Authority gave substance to President Obasanjo’s insistence that the JDA should conduct a new licensing round. Issue 82, January 2005.more
Awoba starts supplying NLNG
Shell Petroleum Development Company has started supplying 55m ft3/d of gas from its Awoba plant to the Nigeria Liquefied Natural Gas project on Bonny Island. Issue 82, January 2005.more
With a new law coming and a raft of major pipeline and LNG projects set for take-off in 2005, the shape of the new Nigerian gas industry is becoming much clearer. Export-oriented projects may gain most attention, but IOCs must also understand pressures to develop domestic markets as well. Issue 81, December 2004.more
Eskom bullish on Nigerian potential, cautious on investment commitment
There have been clear signs that the South African utility’s Eskom Enterprises arm is retrenching north of the Limpopo, but not apparently in the huge potential market of Nigeria – also a key strategic ally for Thabo Mbeki’s government. Issue 81, December 2004.more
Ugly scenes in the Delta do not a global crisis make, but markets think otherwise
Oil markets spun into panic mode last month, blaming crude prices at over $50/bbl on tight global supplies, booming Chinese demand and an uprising in the Niger Delta. But while serious, events in Nigeria were not sufficient to trigger global panic: it is time for markets to regain a sense of perspective, writes Jonathan Bearman. Issue 80, November 2004.more
Independent to build $100m industry-focused plant
The local Geometric Power on 19 October said it had received approval to build a 105MW independent power plant in Aba to serve industries that state utility National Electric Power Authority (Nepa) had been unable to provide with constant supply. Issue 80, November 2004.more
Atlas makes Chevron play
With output from its Ejulebe field at near sub-economic levels, Prince Arthur Eze’s Atlas Petroleum is eager to maintain its oil mining lease (OML) 109 as a producing asset by participating in the development of the Chevron Nigeria-operated Mefa field in neighbouring OML 90. Issue 80, November 2004.more
Political logic defies economic doubts over trans-Saharan gasline
Sceptics may scoff, but the influence on business and infrastructure development of initiatives such as the New Partnership for Africa’s Development (Nepad) and African Union is starting to become apparent – and this factor is contributing to the ever-improving prospects for one of the continent’s more quixotic projects, the planned 4,000km-plus Nigeria-Algeria (Nigal) gas pipeline across the Sahara. Issue 80, November 2004.more
New plants help Nepa to raise capacity by 1,900MW
National Electric Power Authority (Nepa) says new plants nearing completion will increase capacity by 1,900MW to 4,900MW by year-end. Issue 79, October 2004.more
Cavendish to revive Obe field
Cavendish Petroleum plans to revive production at its offshore Obe field in oil mining lease (OML) 110 where activity was suspended in late 2000.
Specialist newsletter Nigeria Focus, published by the UK-based Menas Associates and Clearwater Research Services, reported that Cavendish, owned by the Deribe family, was targeting production of about 2,100 b/d in 2005. Issue 79, October 2004.more
Back-in rights overshadow 2005 licensing round, add to Nigerian marginal fields’ attractions
The prospect of elephant field developments in West African deep-water acreage caught explorers’ imagination. Complicated by politics, marginal fields have not generated the same excitement, but changes to Nigeria’s exploration regime are making IOCs think again, writes Jonathan Bearman. Issue 78, September 2004.more
Syntroleum and locals moot offshore GTL development
Tulsa, Oklahoma-based Syntroleum Corporation on 2 September announced it had signed a heads of agreement (HoA) with a leading local independent, Yinka Folawiyo Petroleum Company (YFP), to potentially develop an offshore oil and gas discovery in oil mining lease (OML) 113, near the border with Benin. Issue 78, September 2004.more
Reforming Nigeria seeks to transcend the sins of the fathers and overcome risk concerns
Intense media interest in reports about IOCs’ problems in the Niger Delta, a festering potential scandal surrounding part of the initial Nigeria LNG project financing and fears that insurers will pull back due to turbulence suggest that Nigeria’s leadership has much to do if its much-vaunted commitment to change is to be translated into the huge new investment the economy craves. Issue 77, August 2004.more
Nigeria’s debut power financing tied up
AES Corporation has finalised the long-delayed financing for its 306MW Ebute barge-mounted power project in Lagos, Nigeria’s first independent power project. Issue 77, August 2004.more
USA fund coal study – an industry revived?
The USA’s Trade and Development Agency (TDA) has awarded a $410,800 grant to the Ministry of Solid Minerals Development to fund a feasibility study on developing the country’s coal resources. The TDA-funded feasibility study will analyse ways to meet current and future energy demands in Nigeria through the use of coal for power generation. Issue 77, August 2004.more
Abuja bails out West Africa Gas Pipeline, supports STP
Central Bank of Nigeria (CBN) is to extend emergency loans totalling 6.2bn naira ($45m) to Ghana and São Tomé & Príncipe. The lion’s share, $40m, is to help Ghana meet its financing obligations to the West African Gas Pipeline (WAGP) project. The São Tomé government’s $5m is to cover the island nation’s emergency needs until it can access revenues from the Joint Development Zone. Issue 77, August 2004.more
ChevronTexaco’s Nigerian challenge to global insurance markets
The apparent challenges facing ChevronTexaco as it seeks to repair the financial damage caused to its Nigeria operations by Ijaw unrest in the Niger Delta region in 2003 have highlighted a serious shortfall in the insurance market – and one that could have consequences beyond Africa for oil producers in other politically volatile regions such as the Middle East Issue 77, August 2004.more
Nigeria opens to the private sector as Nepa confronts huge challenges
Private sector investment in Nigeria’s power sector would be very welcome, with generation assets to be unbundled in Q4 04, according to National Electric Power Authority (Nepa) managing director Joseph Makoju. He does not rule out the government taking equity in new public/private partnerships (PPPs), but the Nepa boss was adamant that the private sector should be the driving force in a sector where big changes have been made but so much more is needed. Issue 76, July 2004.more
Ocean to drill on OPL 256
Ocean Energy – now owned by Devon Petroleum – plans to start its first well in oil prospecting licence (OPL) 256 in October. The company set up an in-country exploration office in 2003, and the Ocean Energy team in Nigeria is firming up a drilling prospect. Simultaneously, it has begun acquiring seismic on its second deep-water block, OPL 242. Issue 76, July 2004.more
Peace and Security in the Niger Delta: The Conflict Expert Group baseline report
The leaked working paper, drawn up by WAC Global Services for Shell Petroleum Development Company (SPDC) and the other Shell Companies in Nigeria (SCIN) last December, has had a big impact on thinking about the sustainability of international corporate activity in Nigeria. Issue 76, July 2004.more
Shell and NLNG reign supreme as rival LNG projects struggle
When it comes to delivering on Nigeria’s gas export potential and efforts to end flaring, the Shell-led liquefaction scheme reigns supreme, writes Jonathan Bearman Issue 75, June 2004.more
Reserves define the shape of the new sub-Saharan gas industry
When it comes to gas exports, south of the Sahara only Nigeria can at present compete with the major North African exporters, but with a few other countries such as Angola and Equatorial Guinea shaping up to become significant players, an Atlantic-focused sub-Saharan natural gas industry is emerging. Issue 75, June 2004.more
‘New Eldorado’: Obasanjo steps in to take over JDZ licensing
The highly prospective Block 1 has been awarded, but the Nigeria/STP licensing round hardly proved the smooth affirmation of the Gulf of Guinea’s attractions its boosters had hoped. President Olusegun Obasanjo has stepped in to take the awarding of blocks out of the hands of the Joint Development Authority, questions are being asked about participants and more senior personnel changes are expected. Issue 74, May 2004.more
NNPC sackings point to new Nigerian crackdown
President Obasanjo has indicated that his second term presidency will be serious about tackling graft. Recent sackings at NNPC’s products subsidiary point to the sort of abuses that need to be cleaned up. Issue 74, May 2004.more
Nigeria’s Conoil doesn’t miss a trick
Mike Adenuga’s Conoil is already ahead of Nigeria’s other indigenous upstream companies, moving quickly to become an integrated operator with wider regional ambitions, writes Jonathan Bearman. Issue 73, April 2004.more
Bonga due on stream by year-end
Shell expects its Bonga deep-water field to begin production by year-end, around six months later than expected. Bonga will be the first commercial deep-water find to be developed in Nigeria, and is expected to pump 225,000 b/d of oil and 150,000 ft3/d of gas, which will be piped to the NLNG terminal at Bonny island. Issue 72, March 2004.more
Abuja government probes Halliburton claims
The Abuja government is investigating reports that the TSKJ consortium of Technip, Snamprogetti, Kellogg Brown & Root (KBR) and JGC Corporation offered bribes to influence contract awards for the construction of the Nigeria Liquefied Natural Gas (NLNG) plant. Issue 72, March 2004.more
Shell confused its reserves position through Nigerian accounting
Shell’s shock revelation that it has been obliged to cut its proven oil reserves by 20% globally owes much to a reassessment of its oil field assets in Nigeria. Around one-third of the 3.9bn barrels clipped from its proven reserves worldwide are reserves that had previously been declared proven in Nigeria. Issue 71, February 2004.more
Nigeria’s oil development may slow as Angola speeds up, Deutsche forecasts
Organisation of Petroleum Exporting Countries (OPEC) quota policy, tax considerations and political pressures within the Niger Delta could lead Nigeria to postpone the development of some major deep offshore fields, at a time when Angola is pressing ahead at full pace, according to new analysis by Deutsche Bank. Issue 70, January 2004.more
JDZ results imminent, but old commitments cloud issues
Following weeks of speculation over bidding for nine blocks in the offshore Joint Development Zone, the Abuja-based Joint Development Authority (JDA) was expected to issue preliminary licences for some five blocks – probably 1-4 and 6 – as African Energy went to press. Issue 70, January 2004.more
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