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Anadarko Petroleum Corporation, Eni and their partners have signed a unitisation and unit operating agreement (UUOA) for the development of massive natural gas resources that straddle Anadarko-operated Area 1 and Eni’s Area 4. Under the terms of the UUOA and previously announced Decree Law, the Prosperidade and Mamba reservoirs will be developed in a separate but co-ordinated manner by the two operators until 24tcf of natural gas reserves, 12tcf from each area, have been developed. All subsequent development of the unit will be pursued jointly by the Area 1 and Area 4 concessionaires through a joint-venture operator (50:50 Anadarko and Eni).

As the pace of East African exploration picks up, Tullow Oil spudded the Tutule-1 well on 21 September in the South Omo Block in the Southern Rift Basin. Joint venture partner Africa Oil Corporation said the well would test the Tertiary rift play in a horst block feature 4km east of the recent Sabisa-1 well, which proved the basic elements of a hydrocarbon system including reservoir, seal and source. Further east on Block 8 in the Ogaden Basin, operator New Age (African Global Energy) is expected to spud the El Kuran well later this month.

Sonangol on 12 April made declarations of commerciality for three gas discoveries: the Lira well on Block 15/14 in the Lower Congo Basin, and Katambi-1 on Block 24/11 and Lontra-1 in Block 20/15, both in the Kwanza Basin.A presidential decree in June 2014 granted Sonangol the mining rights to develop and produce hydrocarbon gases in the Block 15/14 Lira concession area. Sonangol said that, in accordance with the Block 15/06 production-sharing agreement, it would start talks with Block 15/06 operator Eni on options for exploiting, developing and monetising the natural gas resource.

Chariot Oil & Gas has decided to relinquish the C-19 licence offshore Mauritania, but has converted the Mohammedia reconnaissance licence offshore Morocco into exploration permits. Chariot will have a 75% interest and operatorship of the Mohammedia Offshore exploration permits I-III, in partnership with the Office National des Hydrocarbures et des Mines, which holds a 25% carried interest. Chariot said it had decided not to enter into the first renewal phase of the C-19 licence after failing to find a farm-in partner.

State power utility Zesco announced in April that it would raise power tariffs for mining companies operating in Zambia to $0.093/kWh backdated to January 2017, replacing individually negotiated rates that have averaged $0.06/kWh. The move has not gone down well with mining companies, which consume 50% of Zambia’s total power output, and on 11 August, Zesco and Copperbelt Energy Corporation (CEC) announced they were “restricting” power supply to mining companies operated by Canada’s First Quantum Minerals (FQM) and Swiss commodities trader Glencore that had refused to pay the new tariff.

Gabon’s new acreage has brought a fresh wave of interest from the majors, while Italy’s Eni is making a big push in Republic of Congo

HERITAGE: Oman sale frees up cash; TOWER RESOURCES: Uganda drilling, share placing

After signing deals to look for unconventional hydrocarbons reserves in Congo-B and other E&P frontiers, the Italian giant is looking to consolidate its relations with major partner Algeria by supporting energy minister Yousfi’s quest to exploit shale gas reserves – which Sonatrach officials believe could be considerable in several Saharan basins

The government has cancelled licences awarded to African Petroleum and Oranto Petroleum for “failure to meet the licence obligations by the licensees”. A statement by the Office of the President in Banjul said the government’s decision was in accordance with the provisions of the country’s petroleum laws. African Petroleum farmed into blocks A1 and A4 held by Canada’s Buried Hill Energy in August 2010, while Oranto held the onshore Lower River Block. “These licences have been terminated with immediate effect. The Gambia government will not allow any institution to acquire licences only to keep them for speculation.

Having repositioned itself with new acreage acquisitions in Chad and Kenya, ERHC Energy has moved away from the deep waters of the Gulf of Guinea and set an ambitious timetable for the next two years.

The Toma South field on blocks 1, 2 and 4 resumed production on 25 August at an initial 3,000 b/d, petroleum ministry director-general Awow Daniel Chuang told African Energy. This has now risen to 7,000 b/d and will reach 10,000 b/d when renovation work is completed. Toma South is the first of five fields on the blocks being brought back on stream following the civil conflict. It will be followed successively by El-Nar, Unity, Manga and El-Toor.

Parliament has ratified a petroleum agreement for the highly prospective Deepwater Cape Three Points West Block, adjacent to the Jubilee field. Namibia-focused Eco (Atlantic) Oil & Gas will operate the block with a 50.51% stake, while Nigerian-owned A-Z Petroleum Products Ghana will have 32.14%, Ghana National Petroleum Corporation (GNPC) will hold 13%, and GNPC Exploration and Production Company will hold 4.35%. The contract area covers 944km² in water depths of between 800 and 2,000 metres. Eco Atlantic was founded by president and chief executive Gil Holzman, described as having “significant experience in the mining and energy resource sectors throughout Africa”.

Operator Addax Petroleum has made an oil and gas discovery with the Padouk-1X well on the offshore Iroko Block in the Rio del Rey Basin

Italy’s Eni has made a tenth discovery with the Agulha well in its prolific Area 4, opening up a new exploration play in the southern part of the block. Preliminary estimates suggest the Agulha structure could contain 5-7tcf of gas. 
Agulha was drilled to a total depth of 6,203 metres in 2,492 metres of water, testing the hydrocarbon potential of geological sequences that are older than those drilled in the Mamba complex.

In the eye of the storm triggered by the Deepwater Horizon disaster, BP is looking to divest more assets, and remains under pressure from Congress and a range of lobby groups over its plans to start drilling in the Libyan offshore (AE 191/12). Senior congressmen are threatening to descend on London and Edinburgh in search of ‘the truth’ about convicted Lockerbie bomber Abdelbaset Ali Mohammed Al-Megrahi’s release on grounds of ill health.