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Briefings & Reports
Briefings and Reports 1

 

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.

Read more about Libya's Energy Future

 



Analysis of the big issues affecting the continent and its energy industries

The subject headings below will take you to a selection of headlines and links from the African Energy archives. The listed topics are regularly updated with links to new developments and analysis.

Sudan/South Sudan

North Africa uprisings

Cote d'Ivoire

Post-election Nigeria

Upstream

Downstream

Financial trends


Sudan/South Sudan

SUDAN/SOUTH SUDAN

South Sudan gears up for business – if it can tackle politics and graft

The party’s over in Juba following South Sudan’s independence day on 9 July, but the new, officially English-speaking state carved out of the Republic of Sudan remains under intense scrutiny, from international organisations and business groups, as well as from international oil companies which must come to terms with the region’s new political configuration (AE 213/1). “South Sudan has to be among our highest priorities – it is the first 21st century African country and [in building its economy] we have to show we’ve learned something in the first 50 years,” the World Bank Group (WBG) chief economist for Africa, Shantayanan Devarajan, told African Energy. “We should be bringing all our resources to bear” to develop the economy.
Issue 218 - 21 October 2011 more

South Sudan independence poses questions over Ilemi Triangle dispute and Kenya’s Block 11

As South Sudan celebrates its birth and its neighbours issue statements of support, the Ilemi Triangle border dispute seems to have been forgotten. Nairobi and Khartoum have both eyed this notoriously volatile area’s oil prospects in recent decades, but Juba has yet to publicly take a stance, writes Adrian J Browne

Issue 214, 29 July 2011. more

Khartoum sets fee for South Sudan pipeline use

With no deal yet in place on oil revenue-sharing between north and south Sudan, Khartoum has imposed a pipeline usage fee of $22.80/bbl on South Sudan’s exports.

Issue 214, 29 July 2011. more

Oil issues fuel conflict as two Sudans emerge to confront multiple problems

Without genuine co-operation over oil flows, efforts to rein in militias and a concerted international effort to overcome Abyei and other crises, history may show that the January referendum and independence day celebrations were a high point for the new South Sudan and its troubled northern neighbour

Issue 213,15 July 2011. more

Khartoum, as well as South Sudan, will struggle with independence

Another Sudanese drama beckons with President Omar Hassan Al-Bashir’s threat to shut off the main pipeline linking oil fields in the soon-to-be-independent south with the export terminal at Port Sudan unless the Government of South Sudan (GoSS) continues to share revenues or pays a transit fee on every barrel exported. Under the 2005 Comprehensive Peace Agreement, Khartoum and the GoSS have split oil revenues 50/50, reflecting the south’s dominance over oil output (producing 75-80% of the Sudanese total, put officially at 500,000 b/d but probably much lower), but also the north’s control of export infrastructure. After 9 July, all that output will go to the new South Sudan.

Issue 212 - 1 July 2011 more


North Africa

Things can’t stay the same, but needn’t fall apart in North Africa

The ‘Arab Spring’, which offered such hope of radical change across North Africa, has entered a long hot summer of doubts and fears, as the Libyan conflict drags on and populations from Morocco to Egypt wait to see if promised political reforms will deliver the hoped for dividends of more open decision-making, fairer legal systems and equitable economic opportunities that will help reduce levels of poverty and give real jobs to the region’s disaffected youth.

Issue 214 - 29 July 2011 more

ALGERIA

Cherouati fights for job in Algiers

There is intense speculation that further change will follow at Sonatrach, with former pipelines vice president (VP) Abdelhamid Zerguine – who now heads the Algerian state energy giant’s subsidiary in Lugano, Switzerland, said to be in line to replace unpopular president director-general (PDG) Nordine Cherouati. Sources said Cherouati had been dismissing the story as a rumour and telling people not to believe it.
Issue 220 - 18 November 2011 more

Signs of a thaw as Algiers plans better terms for IOCs, moots major gas development measures

After five years of resource nationalism and three unsuccessful licensing rounds, the Algerian government may be preparing to improve commercial terms for conventional oil and gas exploration, and is looking to promote non-conventional projects, writes John Hamilton in Madrid with African Energy correspondents in Algiers.
Issue 219 - 4 November 2011 more

South-west gas developments poised to go ahead

Another problem for energy planners in Algeria is that some proposed projects – even those essential for the long-term sustainability of gas reserves – may not be commercial. 
Issue 219 - 4 November 2011 more

Authorities grind out Sonatrach affair

An Algiers court has reduced some of the remaining charges against state energy giant Sonatrach’s former president director-general (PDG) and vice presidents (VPs), suggesting that the dramatic corruption crisis is being wound down.
Issue 218 - 21 October 2011 more

Yousfi hints at hydrocarbons law amendments

Energy and mines minister Youcef Yousfi’s announcement of unspecified amendments to the hydrocarbons law has raised hopes that the authorities might be considering improvements to the terms and conditions offered to international oil companies (IOCs) for exploration licences. But, as yet, no details have emerged.
Issue 216 - 23 September 2011 more

The Algerian street is alive with protest, but yet to find its political voice

A wave of strikes, adding to the localised protests across the country over social and economic issues, says much about the current mood in a North African state that has so far resisted the galvanic change that marked the early months of the Arab Spring. State energy giant Sonatrach has been affected by industrial action that its president director-general (PDG) Nordine Cherouati has struggled to control. The powerful Union Générale des Travailleurs Algériens (UGTA) labour federation is fighting to keep workers within its ranks, after decades when secretary-general Abdelmajid Sidi Saïd and other union leaders held office by cutting deals in smoke-filled rooms.
In Sonatrach’s giant gasfield Hassi R’mel, workers’ spokesman Ali Arhab is criticising “the [Sonatrach] general management’s silence [on employees’ demands] and complicity of the UGTA”. Even if attempted mass protests in Algiers have been snuffed out by heavy policing, there are plenty of signs of volatility in Algeria.

Issue 210 - 3 June 2011 more

EGYPT


EGPC launches 15-block bid round


Egyptian General Petroleum Corporation (EGPC) has launched a new bid round offering 15 blocks in the Gulf of Suez, Western Desert, Eastern Desert and Sinai. The North East Obayed (801km2) and North Matruh (798km2) blocks are in the north of the Western Desert in the Matruh area, north of the Obayed and Matruh gas fields, west of the Kanayis gas field and north-west of the Tarek gas field.
Issue 217 - 7 October 2011. more


LIBYA

Document cache reveals Vitol’s dominance of Libyan market

Data released by the NTC government suggests that the Geneva-based trading company earned over $50m from its crude oil and refined products trades during the civil war, and even though other players are joining the market, Vitol remains a dominant force, writes John Hamilton
Issue 219 - 4 November 2011 more

IOCs hold back from Libya as production ramps up

Two months after the fall of the Qadhafi regime, security at installations and oil fields is still the main barrier preventing international companies from returning to the country, writes John Hamilton
Issue 219 - 4 November 2011 more

Billions sought in Libya reparations

Hundreds of businesses, including many oil service providers, engineering and construction companies, are preparing to make billions of dollars-worth of claims against the new Libyan government for losses and damage sustained during the six-month revolution.

Issue 218 - 21 October 2011 more

Libyan industry emerges from conflict as fields gear up to resume exports


The Libyan export industry is coming back to life, with the resumption of oil production in the western offshore and Sirte Basin’s easternmost fields, and Eni expecting gas exports to resume this month. But a return to substantial production may take longer than recent projections suggest, writes John Hamilton
Issue 217 - 7 October 2011. more


Touareg threat to Saharan production


The immediate threat to efforts to resume hydrocarbons production in the Ghadames and Murzuq basins comes from groups of armed Touareg tribesmen who have not yet accepted National Transitional Council (NTC) authority. Not all the Touareg are pro-Muammar Qadhafi, although the deposed leader recruited some as mercenary forces during the recent civil conflict.
Issue 217 - 7 October 2011. more

First-mover Heritage strikes in Libya

Heritage Oil’s acquisition of a majority stake in the well-connected Benghazi-based Sahara Oil Services Holdings (Sosh) is the first important oil sector deal in post-conflict Libya. It may help overcome earlier objections from the National Transitional Council (NTC) to Heritage’s proposals for assisting with oil field security; and it also adds a new dimension to the company’s controversial offshore exploration plans in Malta (AE 213/1, 212/16).
Issue 217 - 7 October 2011. more

Libya’s interim energy administration assesses likely production

As the new regime in Tripoli establishes its authority, Libya urgently needs to restart oil production. A potentially divisive mix of old and new faces is emerging to take charge of the sector, writes John Hamilton

Issue 215, 9 September 2011. more

Trader Vitol’s role in Libya’s revolution

Geneva-based oil trading firm Vitol’s fuel supply deal to the National Transitional Council during its six-month uprising against Colonel Muammar Qadhafi’s regime has attracted admiration, criticism and envy.
Issue 215, 9 September 2011. more

Market responds to NTC demands for fuel imports

Libya’s new oil sector and financial administration has agreed a number of emergency fuel supply contracts to overcome massive shortages across the country. But while lines of authority in the sector are still being drawn, there is a great deal of confusion in the market.

Issue 215, 9 September 2011. more

UK recognises Libyan rebels and Agoco

Alongside its decision to recognise the National Transitional Council (NTC) as the “sole governmental authority” in Libya, the UK government has consolidated Arabian Gulf Oil Company (Agoco)’s position as a national oil corporation in waiting and motor of the rebel administration’s exchequer by agreeing to the payment of $91m of frozen assets held in London.

Issue 214 - 29 July 2011 more

Desert security fears threaten Libyan rebel plan to restart fields

The Benghazi-based Interim National Council plans to restart oil production from fields under its control by the end of August. But the cash-strapped rebels have yet to secure their southern flank against the threat posed by desert-based forces loyal to Colonel Muammar Qadhafi, writes John Hamilton

Issue 213 - 15 July 2011. more

Rebel stranglehold will ‘drain’ Tripoli of fuel, leading the Libyan conflict closer to resolution

While the rebels’ allies fret about their failure to deliver a knock-out blow and the Qadhafi regime displays confidence that it can hold on to Tripoli and make diplomatic gains, a move to cut the main supply of fuel to the capital may signal that the endgame is closer than many think, writes John Hamilton
Issue 212 - 21 July 2011. more

Ofac lifts Agoco sanctions amid supply crisis

The United States Treasury Department’s Office of Foreign Assets Control (Ofac) has lifted sanctions on National Oil Corporation (NOC)’s Benghazi-based subsidiary Arabian Gulf Oil Company (Agoco).

Issue 210 - 3 June 2011 more

Az-Zawiya struggles with gasoline shortage & fuel oil glut

The west of Libya may have access to domestic gasoline production of as little as 6,000 ltrs/d, from the Az-Zawiya oil refinery, but it also has too much fuel oil and kerosene, which it cannot dispose of.

Issue 210 - 3 June 2011 more


Cote d'Ivoire

Côte d’Ivoire escalates Ghana border row

Côte d’Ivoire has escalated a simmering border row with Ghana by demarcating new blocks that overlap with Ghana’s western acreage. 
Issue 219 - 4 November 2011 more

Globeleq signs Azito expansion agreement

The long-mooted expansion of the Azito power plant is set to go ahead with the signing of an amended concession agreement by Globeleq Generation subsidiary Azito Energie SA.
Issue 218 - 21 October 2011 more

Rialto secures rig for Q1 2012

Australia’s Rialto Energy has secured a jack-up drilling rig from Transocean and plans to drill on CI-202 in Q1 2012 (AE 210/19).

Issue 214 - 29 July 2011 more

Côte d’Ivoire banks on oil and gas for recovery

The new government is looking to the energy sector to lead the revival of the economy, but has warned it could run out of gas to fuel power plants, writes Our Abidjan Correspondent

Issue 212 - 21 July 2011. more

Race against time for Ouattara in attempt to put Côte d’Ivoire back on track

A range of energy industry players and financiers are waiting to see if the president can create sufficient national consensus to provide the investment opportunities promised by CdI’s natural resource base and reconstruction needs, writes Thalia Griffiths

Issue 209 - 20 May 2011. more

Long road ahead for Côte d’Ivoire recovery after decade of misrule

Continued fighting in Côte d’Ivoire’s main city underlines that, despite the dramatic capture of former president Laurent Gbagbo, the conflict is far from over. Some 16 years after he was excluded from the 1995 election, Alassane Ouattara finally gets to be president, but in the worst possible circumstances.
Issue 207 - 15 April 2011 more



Post-election Nigeria

Nigeria seeks $50bn in foreign investment to reactivate power sector

With generation capacity finally creeping upwards, the federal government is turning to foreign investors to provide the huge sums needed to overcome crippling power shortages.  But targets still remain both ambitious and insufficient, writes David Slater in Abuja
Issue 219 - 4 November 2011 more

CBN supports naira to reassure nervous investors

Central Bank of Nigeria (CBN) governor Sanusi Lamido Sanusi used The Economist’s 20 October Nigeria Summit in Abuja to stress that the naira would not be devalued – in a move to reassure investors worried about continued instability. 
Issue 219 - 4 November 2011 more

Nigerian government battles to push through PIB, bring oil sector finances under control

There will be opposition from across Nigerian society, but key measures to restructure the hydrocarbons industry and channel windfall oil earnings are among a raft of measures the Jonathan government expects to push through in the coming months, the country’s senior economic minister told Jon Marks in Washington
Issue 217 - 7 October 2011 more

Government calls on IOCs to help maintain fragile peace in the Niger Delta

With oil production at a four-year high, the government is reaching out to IOCs to ensure that a temporary and fragile ceasefire can be transformed into a lasting peace, writes David Slater
Issue 214 - 29 July 2011 more

Jonathan finalises his new government, but key questions remain over oil industry reform

As President Goodluck Jonathan puts the final touches to his long-awaited new cabinet, having returned staunch ally Diezani Alison-Madueke to the petroleum ministry, questions over sector reform and industry power remain

Issue 213 - 15 July 2011. more

GE eyes expansion in Nigeria with revived co-operation deal and potential IPP investments

As the Jonathan administration settles in, GE is among the major players looking to build an even bigger business on the back of Abuja’s commitment to increased electricity supply and an acceleration of stalled IPPs

Issue 210 - 3 June 2011 more


Nigeria power update: Slow progress towards a minimum performance

A few IPPs promoted by local developers and IOCs report progress, according to research conducted for African Energy's latest Nigeria power update. Partners now expect an acceleration in generation and transmission projects, running parallel to a concerted effort to unbundle the sector with the divestment of key PHCN assets. Over 300 companies have expressed interest but, as ever in Nigeria, it remains to be seen whether grandiose claims and multi-billion dollar bids can achieve concrete results
Issue 209 - 20 May 2011 more



TOP



Power sector

 

DR CONGO

Deep-rooted problems stall Snel’s recovery, jeopardising DRC projects and regional schemes

Weeks ahead of DRC’s presidential election, the Senate Special Commission of Inquiry’s damning report shows the appalling extent of mismanagement at Snel since the utility’s creation, writes François Misser
Issue 220 - 18 November 2011 more

Power cuts trigger Snel reshuffle

President Joseph Kabila ordered a complete reshuffle at the top of Société Nationale d’Electricité (Snel) on 20 August, following power cuts caused by the lowest water levels for a century in the Congo River.

Issue 215 - 9 September 2011. more

Donors, consultants seek ‘optimal strategy’ to push the pace of Inga projects

A shift of donor strategy to develop the mighty Grand Inga scheme through a series of phased projects divided into investor-friendly, bite-sized chunks is intended to move plans for Africa’s biggest hydropower source closer to reality. Whether the DRC government’s hope of developing Inga III and donors’ multinational plans for Grand Inga are compatible will be debated this year, writes Jon Marks

Issue 211 - 20 June 2011. more

ETHIOPIA

Ethiopia goes it alone (if possible) in mission to develop mega HEP schemes to supply neighbours

The self-proclaimed water tower of Africa has made advances in developing its hydroelectric-driven industry, adding to generation capacity and strengthening regional interconnections. Companies working with EEPCo speak highly of the Ethiopians’ technical skills and the government has big plans to develop cross-border links, but there remain significant obstacles to overcome before Ethiopia can fulfil its ambition to serve as eastern Africa’s leading power supplier, writes Adrian J Browne
Issue 218 - 21 October 2011 more

GABON

Gabon reports progress on $2bn HEP masterplan but still needs to secure financing

With a development strategy that relies on promoting mining and forestry projects requiring large-scale electricity supply, Gabon is pressing ahead with plans to build six hydropower dams, François Misser reports from Paris

Issue 212 - 1 July 2011. more

GHANA

Local creditors’ foreclosure hits Ghanaian IPP, leaving TOPL’s future in doubt

Work had started on the Tema Osonor independent power project, and major institutions had lined up debt and equity, when issues of bridge loan repayments and the failure to obtain parliamentary approval for the PPA blocked the project. This has left Ghana’s first major IPP in a decade in doubt, as a number of legal and arbitration proceedings loom, writes Jon Marks

Issue 211 - 20 June 2011. more

GUINEA

Condé looks to China to ease power woes

China is once again wooing the new Guinean government, offering badly needed power investment and a major bauxite project, writes Our Conakry Correspondent
Issue 217 - 7 October 2011 more

KENYA

Olkaria expansion

Kenya Electricity Generating Company has given a consortium of Japan’s Toyota Tsusho Corporation and South Korea’s Hyundai Engineering Company a turnkey contract for the Olkaria I extension and the new Olkaria IV geothermal plant. 
Issue 219 - 4 November 2011 more

Opic approves loan for Olkaria expansion

The US’ Overseas Private Investment Corporation (Opic) has approved a loan of up to $310m for Ormat Technologies to finance a project to double the generating capacity of the Olkaria III geothermal power plant.
Issue 217 - 7 October 2011 more

 

MOROCCO


ONE/Onep fusion agreed at last


The long-awaited merger of the kingdom’s two major utilities, Office National de l’Electricité (ONE) and Office National de l’Eau Potable (Onep) into a single public sector company called Office National de l’Electricité et de l’Eau (Onee) has finally been approved by the Chamber of Counsellors, the 270-member upper house of parliament.
Issue 217 - 7 October 2011 more

NIGERIA

Nigeria seeks $50bn in foreign investment to reactivate power sector

With generation capacity finally creeping upwards, the federal government is turning to foreign investors to provide the huge sums needed to overcome crippling power shortages.  But targets still remain both ambitious and insufficient, writes David Slater in Abuja
Issue 218 - 21 October 2011 more

Power projects lead infrastructure drive

Critical to better use of Nigeria’s hydrocarbons wealth are efforts to tackle infrastructure bottlenecks in power and transportation by implementing key projects. Government and Power Holding Company of Nigeria (PHCN) promises of large-scale additions to electricity generation and transmission infrastructure have consistently foundered in the face of lack of implementation, co-ordinating minister of the economy and finance minister Ngozi Okonjo-Iweala told African Energy.
Issue 217 - 7 October 2011 more

RWANDA

Wärtsilä to supply KivuWatt power plant


ContourGlobal subsidiary KivuWatt has given Finland’s Wärtsilä Corporation a contract to supply the power plant for its project to harness methane gas from Lake Kivu. The plant will be powered by 20-cylinder Wärtsilä 34SG gas-powered engines and have an electrical output of 25MW.
more 

ContourGlobal signs KivuWatt loan facility

US power developer ContourGlobal has signed agreements for a $91.25m loan facility for phase I of the KivuWatt project to turn Lake Kivu’s methane into power (AE 209/8).

Issue 215 - 9 September 2011. more

Rwanda seeks funding for generation plans

Sporadic power cuts still occur in Kigali but this situation might change radically as projects to tap Rwanda’s potential come on stream between now and 2017, writes François Misser, recently in Kigali

Issue 210, 3 June 2011 more

SENEGAL

Wärtsilä to expand Bel Air, Kahone power plants


Under pressure to tackle crippling power shortages, Senelec has given Finland’s Wärtsilä Corporation turnkey contracts worth nearly E60m ($79m) to expand its two existing power plants at Bel Air and Kahone. The Bel Air power plant in Dakar was built in 2005 and the Kahone plant at Kaolack in 2006. Both facilities are powered by 18-cylinder Wärtsilä 46 engines, and are maintained and operated by Wärtsilä under a 15-year agreement signed in 2006.
Issue 217 - 7 October 2011 more

Senegal lines up emergency and longer-term projects as past failures haunt Senelec

Persistent blackouts, rising tensions in poorer neighbourhoods and disillusionment among the professional classes are adding to political pressures on President Wade and his family. A speedy breakthrough in installing new generation capacity and improved T&D would considerably ease tensions, writes Jon Marks in Dakar

Issue 210, 3 June 2011 more

SOUTH AFRICA

World Bank funding for renewables

The World Bank board has approved $250m in funding for the Eskom Renewables Energy Support Project, to help implement the Upington concentrating solar power and Sere wind power plants. 
Issue 219 - 4 November 2011 more

AfDB funds Eskom renewables plan

Eskom and the African Development Bank (AfDB) signed two loan agreements totalling $365m in Washington on 25 September for the first large-scale implementation of renewable wind and solar generation in Eskom’s history.
Issue 217 - 7 October 2011 more

 

TANZANIA

Chinese mining, pipeline projects to boost power sector


China’s Sichuan Hongda Group has signed a $3bn agreement for mining and power generation at the Mchuchuma coal and Liganga iron ore deposits in the Iringa region of southern Tanzania, described as the biggest private investment in East Africa, while China has agreed financing for new gas pipeline infrastructure.
Issue 217 - 7 October 2011 more

Government’s $325m temporary salve for Tanzanian power crisis

Emergency plans were pushed through in August to help to alleviate the worst of Tanzania’s power rationing. But there are understandable concerns about cost and corruption, and fears that larger projects will not come to fruition any time soon, writes Adrian J Browne

Issue 215, 9 September 2011. more

Power cuts threaten Tanzanian economy

After months of power cuts, the prospect of indefinite load-shedding comes as a serious blow to Tanzanian homes and industries. While emergency and longer-term projects have been announced, the crisis will take time to resolve

Issue 213 - 15 July 2011. more

Daily blackouts during Songo Songo inspection

Tanzania Electric Supply Company (Tanesco) said on 7 May it would be forced to introduce 15-hour power cuts every day for a week because a scheduled inspection at the Songo Songo gas production facility would cut off supply to gas-fired plants.

Issue 209 - 20 May 2011 more

 

TUNISIA

EPC route for Sousse CCGT plant

Tunisia appears to have abandoned hopes of launching independent power projects (IPPs) during the current period of political reform and economic uncertainty.

Issue 216 - 23 September 2011 more



ZIMBABWE

Zimbabwe seeks Hwange, Kariba expansion bids

Harare has taken another step towards tackling the country’s power supply deficit with the start of tendering for 900MW of new capacity at Hwange and Kariba

Issue 214 - 29 July 2011 more

Zimbabwe looks to revive big generation schemes

The beleaguered MDC energy minister is talking up prospects for encouraging investment to relaunch major generation schemes and, following a series of disappointments, expects to test investor appetite in coming months
Issue 212 - 1 July 2011. more

 

REGIONAL

East African currency pressures trigger memories of Asian crisis for power sector developers

Recent pressure on the Kenyan, Tanzanian and Ugandan shillings poses problems for power developers and others operating in East Africa’s fast-growing economies, with echoes of the late 1990s events in Asia that undermined that region’s burgeoning IPP sector, writes Kevin Godier with Jon Marks

Issue 213 - 15 July 2011. more

New strategy as World Bank backs hydropower

The change of direction signalled by the World Bank’s new draft energy strategy is part of a commitment to widening access to power while minimising greenhouse gas emissions
Issue 211 - 20 June 2011. more

SOUTHERN REGION

Southern African pool still operating below par

The SAPP is putting on a brave face about prospects for the region’s electricity supply industry and its own performance, looking to inflows of investment to install more generation capacity across southern Africa and for the pool’s trading mechanisms to gain momentum, write Kevin Godier and Jon Marks
Issue 220 - 18 November 2011 more

Southern power update part II: Eastern SAPP

Mozambique’s ambitious plans dominate the regional picture, but Zimbabwe has high hopes for economic recovery and smaller states hope to benefit from interconnections within the Southern African Power Pool

Issue 212 - 1 July 2011. more


Southern Africa power update: International offtake remains elusive

While a few projects in the planning stages are moving towards development and implementation, securing finance to unlock the full value chain of some projects, from upstream to power generation and offtake remains a problem

Issue 211 - 20 June 2011. more


TOP

Upstream

KENYA

Exploration on Lake Turkana

A group led by Tullow Oil is preparing to drill a well on the Ngamia prospect on Block 10BB, launching an exploration programme which plans to build on the company’s Ugandan experience.  Africa Oil Corporation president and chief executive Keith Hill said the choice of Ngamia had been a cause for some debate within the joint venture. 
Issue 219 - 4 November 2011 more

Total makes Kenya grab

Total has made a concerted effort to catch up with its Anglo-Saxon rivals in East Africa, with a farm-in to Anadarko’s five blocks offshore Kenya following recent acquisitions onshore Tanzania and in Uganda.
Issue 216 - 23 September 2011 more

Upstream update: Exploration activity in Kenya reaches unprecedented level

After a couple of high-profile exploration disappointments, onshore and offshore, all eyes are on Tullow as the company prepares to drill in the Turkana Basin in Q4
Issue 215 - 9 September 2011. more

CHAD

Revived Chad oil search attracts hopefuls in need of a pipeline

Following an upturn in production since 2010, further efforts to revive exploration are bringing a new generation of independents into acreage including blocks relinquished by Doba field operator ExxonMobil

Issue 213 - 15 July 2011. more

NIGERIA

Shell faces US lawsuits

Royal Dutch Shell is facing two lawsuits over its operations in the Niger Delta, three months after a United Nations Environment Programme (Unep) report condemned the oil major for environmental damage and recommended it foots the $1bn clean-up bill (AE 215/20).
Issue 219 - 4 November 2011 more

Shell remains committed to Nigeria following legal action and damning UN report

The environmental disaster in Ogoniland could take up to 30 years and $1bn to repair, but Royal Dutch Shell says it remains committed to its Nigerian operations despite accepting liability for its part in oil spills, writes David Slater

Issue 215 - 9 September 2011. more

NAMIBIA

Keyes takes a second look

Houston-based Frontier Resources International has been awarded an exploration licence for two blocks in northern Namibia’s Etosha-Ovambo Basin. 
Issue 219 - 4 November 2011 more

Namibia’s new entrants have some strange allies

In Namibia’s highly politicised resource economy, forming joint ventures with the right local partners is critical to accessing licences – but local partners can pose reputational risks. This is illustrated by the case of recent entrants Australia’s Pancontinental Oil & Gas and Texan outfit Hydrocarb Corporation, writes Our Windhoek correspondent
Issue 216 - 23 September 2011 more

Chariot wins BP farm-in

UK minnow Chariot Oil & Gas has won a farm-in from BP, which has taken 25% in its southern Block 2714A in the Orange Basin, which includes the giant Nimrod prospect.
Issue 215 - 9 September 2011. more

Gazprom’s Kudu stake changes hands

While Gazprom has not entirely withdrawn from the Kudu gas-to-power project, news that the stake has changed hands highlights tension between the Russian major and Namibian authorities, writes Michael Wooldridge

Issue 210 - 3 June 2011. more

TANZANIA


Ophir targets 21tcf of gas in new campaigns


Independent estimates by RPS Energy have put prospective resources at 21tcf in Tanzanian blocks 1, 3 and 4, where London-listed companies BG Group and Ophir Energy hold stakes.
Issue 217 - 7 October 2011. more


Shell farms into Petrobras blocks


With no sign of progress on its Pemba and Zanzibar blocks, Shell has farmed into Petrobras’ blocks 5 and 6, taking 50%. Petrobras, which remains as operator, said the Tanzanian authorities had approved the farm-out on 16 September. The blocks are in the Indian Ocean at water depths of 600-3,000 metres.
Issue 217 - 7 October 2011. more

Upstream update: Majors ready to drill in Tanzania after gas discoveries fuel optimism

While political and regulatory issues still pose some challenges, recent offshore gas discoveries have encouraged majors’ drilling campaigns to begin in Q4, and Total has been tempted into a tricky onshore block in pursuit of oil
Issue 216 - 23 September 2011 more

UGANDA

More controversy in Uganda as Museveni attempts to force through Tullow deal

The government’s attempts to disregard parliament’s oil resolutions, and to weaken the capacity of a corruption probe committee, have met with considerable opposition, underlining the capacity of domestic politics to complicate Uganda’s passage to becoming an oil producer, writes Adrian J Browne
Issue 220 - 18 November 2011 more

Eighty firms compete for Uganda blocks

Petroleum commissioner Ernest Rubondo has told the ad hoc parliamentary committee investigating the oil sector that “close to 80” applications had been received from international oil companies looking to secure blocks in Uganda’s open acreage.
Issue 220 - 18 November 2011 more

Museveni’s opponents seize on oil issue to press for genuine change in Ugandan business

Uganda’s dynamic new parliament has hit out at the perceived lack of transparency in the oil sector, demanding full disclosure of contracts seen as controlled by the president’s inner circle. With everything from local land rights to military aircraft sales under scrutiny, the veteran president is under pressure ahead of crude production coming on stream, write Adrian J Browne and Thalia Griffiths
Issue 218 - 21 October 2011 more

Land rights controversy adds to potent mix in Uganda

The issue of land ownership is a major factor in the Ugandan oil and politics equation. During the grilling of National Resistance Movement grandees in parliament on 12 October, Buliisa MP Stephen Biraahwa Mukitale named a senior agent of the government’s Internal Security Organisation, Major Herbert Asiimwe Muramagi, as one of those accused by locals of attempting to illegally acquire land near the Taitai well in Kigorobya.
Issue 218 - 21 October 2011 more

Leaked US cables reveal discussion of alleged oil corruption in Uganda

Fresh details of the machinations surrounding the sale of Heritage’s Ugandan oil acreage have emerged in the latest batch of WikiLeaks releases, writes Adrian J Browne
Issue 217 - 7 October 2011. more

Upstream update: Uganda’s prolific run continues, but development may be delayed

Exploration is a success story, but a series of legal and regulatory disputes and the row over capital gains tax between Heritage Oil and Tullow Oil continue to threaten the sector
Issue 217 - 7 October 2011. more

EAST REGION

Eni ‘to invest $50bn’ in Mozambique gas

It has drilled only one well, but the extent of Eni’s ambitions for its gas find in Mozambique’s Offshore Area 4 are becoming apparent, with the Italian major’s chief executive, Paolo Scaroni, telling one interviewer it could invest $50bn in developing the discovery and building infrastructure to export the gas to Asia (AE 219/15).
Issue 220 - 18 November 2011 more

Gas emerges as unexpected game-changer for east coast economies

The scale of the Mamba South discovery announced by Italian major Eni wasn’t such a shock after Anadarko Petroleum Corporation’s upbeat reporting of its Barquentine-2 appraisal well, which has shown that northern Mozambique could become a major gas producer, just as northern neighbour Tanzania is shaping up to be. 
Issue 219 - 4 November 2011 more

Piracy spreads down the East African coast

The Swahili coast’s upstream petroleum industry is taking shape as pirates step up their activity in an ever wider area. The US military is playing an active role, but new offshore infrastructure is vulnerable, writes Adrian J Browne
Issue 216 - 23 September 2011 more

WEST REGION

Jubilee a tough act to follow as IOCs confront disappointment and politics in Transform Margin

Undaunted by the latest salvo in the long-running border dispute between Côte d’Ivoire and Ghana, companies active in the West African Transform Margin are pushing ahead with exploration. But emulating Tullow’s record is proving harder than several IOCs had hoped, writes Thalia Griffiths in Accra
Issue 220 - 18 November 2011 more

All eyes on Liberia as new West Africa drilling season kicks off

A string of wells are due offshore West Africa by year-end, with Ghana’s neighbours hoping to emulate its success in pursuing the Transform Margin play. Liberia is particularly in the spotlight, while Côte d’Ivoire is seeing work resume following the lifting of force majeure restrictions, writes Thalia Griffiths
Issue 216 - 23 September 2011 more

Upstream update: Central Africa begins to entice

Exploration in Burundi, Zambia and Malawi is still at an early stage, but the region’s lakes are attracting companies hoping to replicate Uganda’s success, while Zambia’s varied geology and expertise in mining mean blocks have been awarded to a mix of local and international players
Issue 218 - 21 October 2011 more


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Downstream

LIBYA

Document cache reveals Vitol’s dominance of Libyan market

Data released by the NTC government suggests that the Geneva-based trading company earned over $50m from its crude oil and refined products trades during the civil war, and even though other players are joining the market, Vitol remains a dominant force, writes John Hamilton
Issue 219 - 4 November 2011 more

Market responds to NTC demands for fuel imports

Libya’s new oil sector and financial administration has agreed a number of emergency fuel supply contracts to overcome massive shortages across the country. But while lines of authority in the sector are still being drawn, there is a great deal of confusion in the market.

Issue 215, 9 September 2011. more

ALGERIA

Total’s ethane cracker deal in doubt

Uncertainties within Sonatrach over feedstock supply have erased more than three years of progress towards a formal joint venture agreement between the Algerian authorities and Total on the construction of an estimated $7bn ethane cracker.
Issue 209 - 20 May 2011 more

SUDAN/SOUTH SUDAN

Khartoum sets fee for South Sudan pipeline use

With no deal yet in place on oil revenue-sharing between north and south Sudan, Khartoum has imposed a pipeline usage fee of $22.80/bbl on South Sudan’s exports.

Issue 214, 29 July 2011. more

EAST AFRICA

Anadarko takes the lead in race to East African LNG as Mozambique gas discoveries line up

The scale of gas finds offshore Mozambique and Tanzania suggests there are reserves to support two LNG plants, if Anadarko and BG can capture Asian markets in the face of competition from Australia, writes Adrian J Browne
Issue 215, 9 September 2011. more


Changes lined up for East Africa markets

Downstream players in East Africa are calling for tax changes to petroleum storage facilities to help prevent product shortages and allow them to operate more efficiently, writes Kimemia Mugo

Issue 211 - 20 June 2011. more

Kenya LNG plans take shape as demand increases

Growing power demand and a steady pace of gas discoveries offshore Tanzania and northern Mozambique have encouraged planners to consider an LNG plant for Mombasa. The Indian Ocean port is set to become a major energy hub, writes Kimemia Mugo in Nairobi

Issue 209 - 20 May 2011 more

GHANA

Ghana to launch study into LNG imports

As it prepares for first oil from the Jubilee field, energy-hungry Ghana is considering a floating LNG unit to add imported gas to its energy mix

Issue 215, 9 September 2011. more

NIGER

Refinery to begin operating

Production at the Chinese-built Zinder refinery in southern Niger will begin this month, and the government is seeing growing interest from explorers, according to Ousseini Assane Boureima, director of exploration at the Mines and Energy Ministry
Issue 219 - 4 November 2011 more

Big test for Jonathan as Nigerian government tries again to lift burden of subsidies

The unions don’t like it and neither do many northern politicians. But publicly, at least, a majority in government and business are behind the president’s efforts to remove subsidies on petrol, writes Leonard Lawal in Lagos
Issue 218 - 21 October 2011 more

ZAMBIA

Zambia’s populist new president targets fuel costs

President Michael Sata has made a number of promises but looks unlikely to unsettle major investors with big policy changes, though he has bravely pledged to tackle the fuel supply conundrum, writes Chiwoyu Sinyangwe in Lusaka
Issue 219 - 4 November 2011 more

REGIONAL

Refinery developments: so attractive to governments, so elusive to build

Bullish comments by Moroccan officials about the prospects for building a 200,000 b/d greenfield oil refinery at Jorf Lasfar underline the attraction of installing crude refining capacity in-country to reduce dependence on imported products.
Issue 203 - 18 February 2011 more

 

Financial trends

ANGOLA

Sonangol taps milestone ten-year loan

Angola’s oil parastatal has raised a $1bn ten-year loan facility backed by South Korea, marking an unprecedented tenor for one of the most regular African users of international syndicated loan markets, writes Kevin Godier

Issue 215 - 9 September 2011. more

TANZANIA

Infrastructure funding breaks new ground

Tanzania has tapped a seven-year commercial $250m loan to fund new infrastructure projects, signing off on the deal on 8 August with a consortium of local and global banks led by Stanbic Bank Tanzania and parent company Standard Bank Group of South Africa. Finance minister Mustafa Mkulo said the loan would be deployed “especially in the areas of power and roads”, but did not give details.
Issue 215 - 9 September 2011. more

 

ETHIOPIA

Ethiopia defends growth plans amid scepticism

Ethiopia has staunchly defended its ambitious five-year growth and transformation plan following suggestions that the levels of debt it involves may not be sustainable, writes Michael Wooldridge

Issue 211 - 20 June 2011. more

BOTSWANA

Morupule financing highlights pula liquidity

With a $181m deal, one of the largest local currency financings in an African emerging market is complete, writes Kevin Godier

Issue 210 - 3 June 2011. more

ZAMBIA

Government plans $500m bond

Zambia’s new government plans to capitalise on its B+ credit rating by issuing a $500m ten-year sovereign bond next year. Presenting the 2012 budget to parliament, finance minister Alexander Chikwanda said the rating from Standard & Poor’s and Fitch “has opened up the opportunity for Zambia to diversify its external financing sources to support our commitment to improve infrastructure, particularly in the road and energy sectors.
Issue 220 - 18 November 2011 more

REGIONAL

EU follows Dodd-Frank with transparency proposals

The European Commission has proposed new disclosure requirements along the lines of the US Dodd-Frank Act for companies based in the European Union. The new rules would require large extractive and logging companies to report payments they make to governments, with the aim of strengthening the Extractive Industries Transparency Initiative (EITI), which is currently voluntary.
Issue 220 - 18 November 2011 more

New UK anti-graft act invites the question: ‘What is a bribe?’

Companies doing business in Africa are looking closely at the provisions of the UK Bribery Act, which came into force on 1 July. The act replaces and brings together previous bribery laws, which date back to 1889, setting tough penalties and making companies responsible for their co-venturers and contractors. Not only must companies feel confident about the principals they are dealing with, they must also show that adequate procedures have been put in place with the main contractor to prevent wrongdoing by subcontractors. Serious due diligence on potential partners will become more vital than ever.

Issue 213 - 15 July 2011. more

East African currency pressures trigger memories of Asian crisis for power sector developers

Recent pressure on the Kenyan, Tanzanian and Ugandan shillings poses problems for power developers and others operating in East Africa’s fast-growing economies, with echoes of the late 1990s events in Asia that undermined that region’s burgeoning IPP sector, writes Kevin Godier with Jon Marks

Issue 213 - 15 July 2011. more



AfDB looks to replicate ‘Senegal model’ to accelerate infrastructure finance flows

Private financing initiatives are one notable element of the African Development Bank’s more assertive role in promoting projects across the continent under Donald Kaberuka’s presidency. Following the successful closing of financing for four major infrastructure schemes in Senegal, the Bank and its partners are looking to accelerate and integrate big-ticket projects in other low-income economies, writes Jon Marks

Issue 212 - 1 July 2011. more

 

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