Search results

The brutal takeover of Dublin-based and London-listed oil company Petroceltic International by activist shareholder Worldview Capital will test the extent to which the need for foreign investment now trumps Algeria’s resource nationalist instincts – which have driven much energy sector and broader economic policy-making over the past decade. Petroceltic’s shareholders have until 14 April to agree a proposal from a Worldview subsidiary which values the company at just $6.42m. The company’s board has recommended accepting the offer as the shares are otherwise likely to be worthless.

Quantum Power Ghana Gas has signed an agreement with Golar LNG to construct a $500m floating liquefied natural gas (LNG) import terminal near the port of Tema. Quantum Power, a subsidiary of Israeli billionaire Idan Ofer’s Quantum Pacific Group, signed a memorandum of understanding in October 2013 with Ghana’s Ministry of Energy and Petroleum to develop LNG infrastructure at Tema port and work with the authorities to source LNG for national and regional use. It set a target date for first gas of 2016.

Mozambican officials remain bullish about the potential for gas-to-power schemes to meet their ambitious forecast of representing 42% of the energy mix by 2020. New gas-fired capacity came online in December at Ressano Garcia, while an emergency open-cycle unit operating in Maputo since early 2015 is supplying 100MW. Speaking in Johannesburg on 15 March, Electricidade de Moçambique (EDM) director of market operations Aderito Manso de Sousa said he expected the 100MW Central Térmica Maputo plant to be converted to combined-cycle operation by October 2018. Japan’s Sumitomo Corporation and IHI Corporation in February signed a contract with EDM for a 100MW-110MW CCGT unit.

The Ministry of Mines and Hydrocarbons signed a memorandum of understanding (MoU) with Royal Dutch Shell on 4 July following the Anglo-Dutch company’s acquisition of BG Group. The MoU will enable greater collaboration between the two parties on numerous oil and gas-related projects, the ministry said. BG has a 17-year purchase agreement for all liquefied natural gas (LNG) produced by the EGLNG facility since 2007. “In addition to Shell’s heightened focus on existing activities in Equatorial Guinea’s oil and gas sector, the MoU facilitates the future entry of the firm into new hydrocarbons projects,” the ministry said.

Aggreko announced on 5 September it had won a one-year contract to supply 100MW of power at the Maria Gléta site. The power will be generated from Addgas, a technology that substitutes a significant portion of diesel fuel with natural gas. An Aggreko spokeswoman told African Energy its existing 50MW of capacity would be upgraded to Addgas and an additional 50MW with the Addgas option would be added, making 100MW in total. “This will offer a more flexible, cheaper kWh,” she said.

Egypt-focused SDX Energy expects to bring its South Disouq field in the onshore Nile Delta into production during H2 2018. On 12 April, it announced a gas discovery at the Ibn Yunus-1X exploration well, which it spudded on 26 March. It drilled the well to a total depth of 9,068 feet and encountered 100.8 feet of net conventional natural gas pay in the Abu Madi horizon. The company reported that “the well came in on prognosis but with a reservoir section that was of better quality and thicker than pre-drill expectations”.

The World Bank Group’s Multilateral Investment Guarantee Agency (Miga) announced on 14 July that it is providing guarantees worth $180m to Actis subsidiary Energy Cameroon Coöperatief for its equity investment in national utility Sonel. The deal will provide cover against the risk of transfer restriction, war and civil disturbance and breach of contract for eight years. Actis subsidiary Globeleq is also covered under the agreement for its investment in the 216MW Kribi gas power plant and 88MW Dibamba heavy fuel oil plant. Globeleq is covered for up to 20 years against breach of contract.

National Petroleum Corporation of Namibia (Namcor) is confident that the Kudu gas-to-power project will go ahead, despite doubts about the cost expressed by finance minister Calle Schlettwein. Namcor managing director Immanuel Mulunga told Global Pacific & Partners’ Africa Upstream conference the partners were aiming for upstream and downstream financial close in Q1 2016. Norway’s BW Offshore has been selected as upstream technical partner, taking over Tullow Oil’s 31% stake, while Italy’s Saipem has been selected for the subsea and pipelines element. Mulunga said discussions were progressing well, and Namcor expected to finalise contracts before the end of March 2016.

Total has signed an agreement with the government to set up a joint task force to ensure security for the Mozambique LNG project. The news comes after insurgents seized the port of Mocimboa da Praia in Cabo Delgado province, just south of the Afungi Peninsula where the LNG project is under construction.

The Netherlands’ FMO has provided a €200,000 ($236,000) repayable grant to the FasoBiogaz biogas plant in Ouagadougou from the Access to Energy Fund. FMO’s funding will add to €1.5m from Fasobiogaz shareholders and a grant from the Netherlands Enterprise Agency (RVO) to complete two biodigesters.

BP has said Africa will continue to play a significant role in its portfolio as it transforms into a diversified energy producer with the goal of net zero emissions by 2050.

GE has completed the rehabilitation of three 9E.03 gas turbines at the Calabar and Sapele open-cycle gas turbine power plants on behalf of the owner-operator, Niger Delta Power Holding Company (NDPHC). The intervention has reduced the risk of unplanned downtime, enabling the plants to reliably supply up to 360MW to the national grid, GE announced on 28 September.

Announcing job losses and investment cutbacks, Big Oil’s flagship companies are emitting signals that should be heeded by those African oil-producing governments that are less inclined to believe the world is changing to their disadvantage. Dramatic announcements of changes of strategic direction by BP, Eni, Royal Dutch Shell and Total suggest most majors see their futures as diversified energy companies, rather than old-style IOCs.

The 4.8bcm/yr Tinrhert phase one expansion project in the Illizi Basin is expected to be producing by year-end, Le Quotidien d’Oran reported. The daily said energy minister Abdelmadjid Attar had visited the region on 10 October. Phase one work by Petrofac to bring 29 new wells into operation will raise natural gas output in the Ohanet field to around 11bcm.

Perenco has taken delivery of a new platform for the Sanaga Sud gas field. Société Nationale des Hydrocarbures said the Sanaga 2 platform, which incorporates gas compression equipment for the development of the field, had arrived offshore Cameroon in June 2020 from the Netherlands and was undergoing commissioning testing.