Search results

The Rwandan deployment has changed the course of the Mozambique government’s battle against Islamist insurgents. This opens the way for a crucial resumption of big gas projects in Cabo Delgado, but questions remain about the Rwandan deployment’s funding, President Kagame’s strategic goals and whether the insurgency is really beaten, writes Marc Howard

Plans are moving ahead for a new refinery to be built in Pointe-Noire’s special economic zone (SEZ), according to hydrocarbons minister Jean-Marc Thystère Tchicaya, following an agreement signed with a Chinese company identified as Beijing Fortune Dingheng Investment. Ministry of Hydrocarbons downstream projects adviser Alphonse Obami said: “According to our estimates, it is very probable that the work on this second refinery will start in Q1 2021.”

Kosmos Energy has dropped plans to sell down part of its stake in the Greater Tortue Ahmeyim project following the adoption of plans for a scaled-down second phase. The smaller phase II aims to make more use of existing infrastructure, making it cheaper and more profitable, writes Thalia Griffiths.

London-based investment firm Gemcorp Capital and state oil company Sonangol announced a final investment decision on 30 October for construction of a 60,000 b/d refinery at Cabinda. Sonangol and the Hong Kong-based United Shine consortium signed a deal to build the refinery in June 2019, but that deal was cancelled in December and a new agreement was signed with Gemcorp.

Nigeria is proving to be a testing ground for trucking gas on African roads, while Circle Gas’s LPG-based cooking solution is building up a consumer base in Kenya and Tanzania. Africa remains a frontier market for ‘virtual pipelines’ and other innovative uses for gas, but business models are evolving to create some vibrant new industries, writes Jon Marks.

South Africa’s Renergen expects to launch a new phase of drilling in late July, targeting gas-producing fracture systems in its Virginia Gas Project production hub in Free State. As the field has gas permeating up through faults and fissures, rather than a conventional reservoir, the company plans to drill inclined wells at a 45 degree angle to improve gas recoverability. The gas at Virginia is methane with unusually high concentrations of helium – the average concentration is 3.4% and a discovery drilled in December 2019 contained up to 12%, making it by far the world’s richest resource in terms of concentration. By comparison, Qatari helium has a concentration of about 0.04% and US helium about 0.35%.

On 18 September, deputy leader of the Government of National Accord’s Presidency Council Ahmed Maetig issued a seven-point agreement reached with warlord Khalifa Haftar, whose Libyan Arab Armed Forces control the eastern part of the country. In a televised address soon afterwards, Haftar confirmed he was lifting the blockade on all ports and terminals. Peace agreements signed by other players during August failed to get this far, and in July a fresh war seemed possible.

Karpowership is well advanced with the conversion of three LNG tankers to floating storage and regasification units (FSRUs) designed specifically for the African market and is hoping to steal a march on rival LNG import schemes. The FSRUs are being built through a 50:50 joint venture with Mitsui Osaka Lines (MOL).

The launch of two projects to import LNG will eventually save Libya money and end a debilitating period of rolling power cuts. While gas sales from the west of the country to Italy are likely to continue, the deterioration of one of Africa’s leading hydrocarbons exporters to this point provides more evidence of the shocking irresponsibility of domestic politicians and their various international supporters, writes John Hamilton

A boom is expected for the extractives sector, highlighted by first gas supply from the Coral Sul reservoir off Mozambique’s northern Cabo Delgado coast, but locals are demanding a fairer share of the benefits and the authorities are struggling to define what they mean by ‘local content’.

Loading of the first liquefied natural gas (LNG) cargo from Eni’s 3.4m t/yr Coral Sul floating liquefied natural gas (FLNG) plant is due to take place on 14 November, an industry source told African Energy.

Shortly after selling up its Angolan upstream interests, Portugal’s Galp Energia is fielding reports that it wants to sell its 10% interest in Mozambique’s highly prospective Rovuma LNG project.

Algerian state giant Sonatrach has been courting international oil companies to capitalise on the potential to ramp up deliveries to Europe, but African Energy’s soundings suggest there are plenty of reasons for caution, despite the improved investment climate since hydrocarbons sector reforms were unveiled.

Savannah Energy has vowed to pursue all its legal options – including arbitration at the ICA in Paris – after Mahamat Idriss Déby’s ‘transitional’ government nationalised the upstream oil assets the UK independent had acquired from ExxonMobil in December.

Savannah Energy’s dispute with Mahamat Idriss Déby Itno’s government in Ndjamena has gone cross-border, with diplomatic ties between Chad and Cameroon under stress after the London AIM-listed oil company’s new deal to sell part of its interest in the export pipeline, writes James Gavin.