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Following the remarkable string of results enjoyed by exploration companies down the East African coast (see Upstream oil and gas), and success in exploiting analogues between South America and West Africa, deep offshore specialists are attempting to open up a potentially lucrative ‘Falklands Islands-style’ play in South African waters

SacOil has named Thabo Kgogo as new chief executive with effect from 1 June. Roger Rees, who took over as acting chief executive on the departure of Robin Vela a year ago, has stepped down. Kgogo, 38, joins SacOil from PetroSA, where he was vice-president operations and acting chief operating officer. Kgogo was responsible for PetroSA’s integrated operations, which included offshore production wells and platforms, a gas-to-liquids refinery, and shipping and aviation services. Vela and two non-executive directors quit after shareholders voted against a proposal to convert a $17.6m loan into equity.

PPL Shipyard wins rig order; Repsol renews EPSAs for two blocks; New Morocco licensing; Drilling planned in Mozambique; Russians enter Sierra Leone

Operator Statoil plans a further appraisal well on the Block 2 Zafarani discovery after completing a drill stem test on the Zafarani-2 well. The operation tested two separate intervals and flowed at a maximum of 66mcf/d, constrained by equipment, confirming good reservoir quality and connectivity. “The ongoing appraisal programme is crucial to firm up the design and development basis for bringing gas to shore and a first phase onshore LNG project in Tanzania,” said Statoil Tanzania country manager Øystein Michelsen.

With ExxonMobil looking for a rig to drill on its Ampasindava permit’s Sifaka prospect in H2 2009, the US giant’s 30% partner Sterling Energy is set to farm out part of its stake and thus reduce its share of the huge costs implied by working in the Madagascar offshore (AE 127/16). Industry sources put the well’s cost at some $180m-200m, which is likely to comfortably exceed Sterling’s remaining carry.

Oando Energy Resources has opted not to go ahead with buying a 17% stake in the Brass liquefied natural gas project as part of its purchase of ConocoPhillips’ Nigerian oil and gas business. Oando had agreed in December 2012 to pay $198.4m for the LNG stake as part of a deal to purchase the US independent’s Nigerian assets for $1.79bn (AE 246/18). Toronto-listed Oando paid a deposit of $435m, including $35m towards the purchase of the Brass LNG stake, but this will now be deducted from the final balance. The date for completion of the acquisition has been extended from 19 September to 30 November. Oando said the final balance payable was $1.22bn.

The peremptory quashing by the United Arab Emirates of a nascent deal under which some oil exports could have restarted, the Egyptian parliament’s approval of military intervention, Turkey’s determination to take control of the oil fields and terminals, combined with local actors’ inflexible pursuit of their separate interests are all factors pushing Libya into a deeper war. 

The Ministry of Petroleum is pushing ahead with plans to extend upstream exploration into several new frontiers despite the low oil price and difficulties in finding a market for currently produced gas, and it is expecting support from IOC partners that have made exploration commitments in bid rounds or bilaterally over the course of this year.

As explorers cut back on Africa spending, Kosmos Energy has agreed with Royal Dutch Shell to sell its stakes in exploration blocks in São Tomé & Príncipe, Namibia, South Africa and Suriname for about $100m, plus future contingent payments of up to $100m.

The African Petroleum Producers Organisation (APPO) is looking to reinvigorate its Cotonou-based APPO Fund, which has been renamed the Africa Energy Investment Corporation (AEICorp). Managing director Zakaria Dosso told African Energy AEICorp was looking to raise hundreds of millions of dollars to support under-pressure producers. The group’s model is the Saudi Arabia’s Arab Petroleum Investments Corporation which reported lending of $3.5bn as at 31 December 2018.

National oil company Société Nationale des Pétroles du Congo (SNPC) has taken over operating assets previously held by Eni, as the Italian major scales down all but its core assets in Republic of Congo. Eni Congo’s decision to pull out of the 39.25km2 Zingali and 61.17km2 Loufika blocks was presented to the council of ministers by hydrocarbons minister Jean-Marc Thystère-Tchicaya on 23 September, with the recommendation that SNPC takes over the assets.

State energy giant Sonatrach said everything was under control at the giant El Merk oil field after a fire in the central processing facility (CPF) on 21 October. The next day, Sonatrach chief Toufik Hakkar visited the unit operated by the Groupement Berkine joint venture with Occidental Petroleum Corporation, reassuring markets that output at the field, which produces 98,000 b/d of crude and 29,000 b/d of condensates, would soon return.

EU concern over drilling plan The European Commission has expressed concern about the potential impact of oil exploration on the Kavango-Zambezi Transfrontier Conservation Area, where Reconnaissance Energy Africa (ReconAfrica) plans to drill three wells starting in late December.

CGG has signed an agreement with Société Nationale des Pétroles du Congo and the Ministry of Hydrocarbons to acquire the industry’s first-ever multi-client airborne gravity and magnetic survey of the onshore Cuvette Basin. The government hopes to attract new investment following the Ngoki discovery last year.

Société Nationale des Hydrocarbures (SNH) has given New Age (African Global Energy) Ltd formal approval to apply for a new exploitation agreement for the Etinde licence. This would replace the existing Etinde exploitation agreement (EEA) which came into force by presidential decree in January 2015 and had been due to expire. Partner Bowleven said the new agreement, reached following talks with SNH, “would be for the production of hydrocarbons including the delivery of gas to thermal power plants or any other projects confirmed by the state”.