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There is a curious disconnection between Egypt’s dire political and financial straits and the relatively upbeat assessments from the international oil companies (IOCs) developing assets there. In spite of the continued closure of Eni and Union Fenosa’s Damietta LNG export terminal and the substantial debt owed by Egyptian General Petroleum Corporation (EGPC) to domestic gas producers, long-term prospects still appear to justify investments.

A cabinet meeting on 6 June approved a production-sharing contract for Edinburgh-based Savannah Petroleum for blocks R1 and R2. A government statement said the blocks represented 50% of the Agadem Block, granted to China National Petroleum Corporation (CNPC) in 2007, suggesting the new blocks are relinquished acreage. Initial oil production from Agadem is supplying a refinery near Zinder and CNPC has plans to build an extension to the Chad-Cameroon pipeline to enable exports.

Special supplementary conditions have been set for the Ahnet zone, a gas project operated by Sonatrach. This prize territory seems to be operating almost as a test case. According to Sonatrach head Mohammed Meziane, “we are convinced that numerous possibilities exist through which Sonatrach can benefit from access to international assets

Empresa Nacional de Hidrocarbonetos de Mocambique (ENH) and Brazilian steel giant Vale signed a memorandum of understanding (MoU) in Maputo on 10 December which paves the way for coalbed methane exploration in the Moatize coal fields in Tete province

CONGO-B: Marine XI farm-out brings in Vietnamese; MAURITANIA: Khop well spuds; TUNISIA: Vietnamese take two blocks; TUNISIA: DualEx enters with Bouhajla stake

Addax Petroleum has farmed into the shallow water OPL 227 in the western Niger Delta, taking 40%. The other partners are two Nigerian companies, Express Petroleum & Gas Company Ltd (which retains 39%) and Petroleum Prospects International Ltd (21%). Express remains the operator but Addax Petroleum has taken the position of technical advisor.

China National Petroleum Corporation (CNPC) signed a construction and operation agreement with the government of Benin on 5 August for a crude oil pipeline from Agadem in Niger to Sèmè port in Benin. “The more than 1,900km pipeline, including 687km in Benin, is the largest cross-border crude pipeline invested by CNPC in Africa,” the company said.CNPC built a refinery at Zinder in 2011 to process crude from its Agadem fields but has been seeking to develop an export route so it can increase production.

The safest pair of hands in the Nigerian oil industry, Rilwanu Lukman, has finally stepped down from his formal industry role as chairman of fast-rising, AIM-listed independent Afren

Pura Vida Energy has announced the sudden departure of chief executive Damon Neaves. Non-executive chairman Simon Eley will take over temporarily and the board will seek a replacement before a planned three-well drilling programme on the Nkembe Block offshore Gabon. Pura Vida is looking for a partner to come up with around $17m for the drilling programme. On 17 March, the Australian Securities Exchange suspended the company’s shares from trading for failing to lodge half-year accounts for the six months to 31 December.

Australia’s WHL Energy has said that Ophir Energy has relinquished its Seychelles blocks. “Under the terms of the Petroleum Agreement, the blocks revert back to the Seychelles government,” WHL said. It said national oil company PetroSeychelles had formally notified the original licence holder PetroQuest International that the petroleum agreement dated 14 April 2014 relating to Blocks 5B/1, 5B/2 and 5B/3 was terminated. WHL acquired the blocks from PetroQuest in 2010 and farmed out 75% to Ophir in 2014. “WHL Energy continues to work closely with the Seychelles government in assessing the forward strategy for this prospect,” the company said.

Germany’s RWE Dea has announced a fifth discovery in the Sirte Basin, where it has three concessions awarded in 2003.

Technip contracts for Block 31 developments; PA Resources farms out Marine XIV; EODC contracts for two jack-ups; M&P to appraise Omko-1; Perenco quits Dussafu Marin; Swiss Oil takes Blocks L4 and L13; Candax starts seismic; Universal extends holdings; Aker contract

Zambia has pledged to maintain electricity supplies to the mining industry despite the expiry of the power supply agreement between Zesco and the privatised Copperbelt Energy Corporation (CEC).The bulk supply agreement (BSA) expired on 31 March, ending a 23-year-old arrangement for electricity supply to the country’s economic mainstay sector. The government says Zesco will continue supplying power to the Copperbelt for up to 12 months while a long-term solution is sought.

SDX Energy sees more acquisition opportunities in Egypt following its purchase of Circle Oil’s assets, as other companies look to reduce their exposure or pull out altogether. SDX, which listed on London’s AIM market in May 2016, plans to spud a well this month on Egypt’s South Disouq licence followed by further exploration drilling in Egypt and Morocco (AE 339/14).

After announcing a “world class” gas find in May, Kosmos Energy has found more gas deeper in the Tortue discovery, which has been renamed Ahmeyim at the government’s request. In addition to the 107 metres of pay found in the primary Cenomanian target, the well intersected ten metres in the lower Albian section. Chevron has an option to take a 30% stake in Ahmeyim, which has opened a new outboard Cretaceous petroleum system offshore Mauritania and northern Senegal.