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There has been material progress reforming Angola’s opaque and nepotistic energy sector over the past year. Considerable work has gone into crafting new power sector regulations, and there have been notable changes to upstream licensing and the role of state oil and gas giant Sonangol, as well as important reforms to the downstream hydrocarbons sector. Investors and analysts canvassed by African Energy were impressed by the extent of the changes, although plenty of problems remain to be resolved.

Long the exclusive preserve of small, specialised companies, East Africa has seen the arrival of a number of big players in the past couple of years, and even BP has an East Africa exploration manager looking at opportunities. But management of expectations is emerging as a key challenge – highlighted by the standoff between Uganda and international oil companies (IOCs).

Following the signing of an umbrella agreement for the Fortuna floating liquefied natural gas (FLNG) project on Block R, Ophir Energy has announced that its partner Golar LNG has awarded midstream construction contracts. Ophir said Golar has executed agreements for conversion of the 126,000m3 LNG carrier Gandria to a floating liquefaction facility for the project, which is expected to produce first gas in 2020.The primary contract for the FLNG Gandria was entered into with Singapore’s Keppel Shipyard

Tullow is considering an appeal against an English court ruling that it was not entitled to terminate its West Leo rig contract with Seadrill in December 2016 by invoking force majeure provisions. The 3 July ruling in London’s Commercial Court by Mr Justice Teare requires Tullow to pay Seadrill a contractual termination fee and other standby fees that accrued in the 60 days before termination of the contract. Tullow said the fees totalled $254m.

Gas drilling slow but set to takeoff towards year-end

Woodside Energy has pulled out of the Lake Tanganyika South Block in western Tanzania. Partner Beach Energy said Woodside had decided not to enter into the next period of the exploration programme. Beach announced in July 2014 that it had agreed to farm out a 70% stake to Woodside, which funded acquisition of 1,333 line km of marine survey over the lake and 107 line km of marine-land transition survey. Beach will remain on the block as operator with 100%.

Canada’s Artumas Group may have overcome some of its recent cashflow problems by securing an option agreement with Maurel & Prom and Cove Energy giving them an opportunity to buy into its assets. The agreement gives the purchasers the option to buy a 54.6% participating interest in Artumas’ Tanzanian gas assets, a 34% stake in its onshore Mozambique assets and all of its 8.5% interest in offshore Mozambique. The option has to be exercised by 18 September. If the deal goes through, Artumas will be carried on the cost of 600km2 of 3D seismic in Tanzania and has an option to be carried on two appraisal wells in Tanzania in exchange for giving Cove and M&P another 5% per well. Cove’s shares are quoted on London’s Alternative Investment Market.

The International Court of Justice (ICJ) in The Hague was due to rule on 2 February on whether it has jurisdiction to hear the dispute between Somalia and Kenya over their shared maritime border in the Indian Ocean. Somalia referred the dispute to the ICJ in 2014 (AE 325/18). Kenya maintains that the boundary should be a straight line running directly east from the point at which the two countries meet on land, while Somalia proposes that the boundary should follow a median line broadly equidistant from both coastlines in accordance with clause 15 of the UN Convention on the Law of the Sea.

BP has given contracts to McDermott International and Baker Hughes (BHGE) for subsea umbilicals, risers and flowlines (Surf) and subsea production system equipment for the Greater Tortue Ahmeyim natural gas project offshore Mauritania and Senegal. The companies are working together to realise efficiencies for the project, which reached a final investment decision in December.The initial subsea infrastructure will connect the first four of 12 wells consolidated through production pipelines leading to a floating production, storage and offloading (FPSO) vessel.

HERITAGE: Former US Special Forces head hired as non-exec; PANATLANTIC: New name for Vanco

The Rufisque Offshore, Sangomar Offshore and Sangomar Deep (RSSD) joint venture is targeting a final investment decision for the SNE oil field development “as early as possible in H2 2019 to accommodate outstanding regulatory and joint venture approvals and funding activities”, according to partner Woodside Energy.In its Q1 results, Woodside said Shearwater GeoServices Ltd had been awarded a high-definition 3D marine seismic survey contract to improve reservoir definition supporting well positioning and optimisation for the SNE development.

The Nigeria-São Tomé Joint Development Zone (JDZ) is hoping for a resurgence of interest after Total licensed blocks 7, 8 and 11 in March. Ibiwari Lorvde Jack, executive chairman, monitoring and inspection at the Joint Development Authority (JDA) administering the JDZ, said licensing terms had been revised and the JDA was seeking to promote the area’s potential at industry events. The JDA plans to launch a third licensing round for open acreage in Q4 2019 or Q1 2020, and there are also plans to delineate new blocks in the southern area of the JDZ.

In a move that underlines national oil companies’ increasing willingness to push for expansion by investing abroad, Sonangol was a surprise victor in Iraq’s second post-war licensing round, winning the Najmah and Qayyarah fields, which are located around 70km south of Mosul, the most violent city in Iraq. The Angolan state company was the sole bidder for the two fields and initially offered remuneration fees of $12.50 for Qayyarah and $8.50 for Najmah but after the Ministry of Oil rejected the offers, it reduced them to $5 and $6 respectively.

SDX Energy said on 14 July it had sold its 50% stake in the North West Gemsa licence in the Eastern Desert to Egypt’s Gulf Energy for $3m. Of the total, $1.4m has been used to clear SDX’s remaining liabilities on the licence. SDX said the net $1.6m proceeds exceeded its expectations for the sale.

Nigeria’s Oranto Petroleum on 10 October signed two production-sharing agreements (PSAs) for the shallow and deep plays in the Ngassa Block on Lake Albert. The block has been stratigraphically delineated, with two licences issued vertically over the same area. The ministry said this aimed to ensure that the full potential of the acreage was explored, since companies could be inclined to relinquish shallow reservoirs, which tend to be more gas prone in the Albertine Graben, as opposed to the deep reservoirs, which are more oil prone.