Search results

The South African government’s decision to approve state-owned PetroSA’s selection of an affiliate of Russia’s sanctioned Gazprombank as the preferred investment partner for the Mossel Bay GTL plant has sparked controversy.

ExxonMobil has provided an update on the expected start date for front-end engineering and design (Feed) work on the 18m t/yr Rovuma liquefied natural gas (RLNG) development in Cabo Delgado. The United States supermajor also said it was undertaking a security assessment in partnership with TotalEnergies, as it targets an exit from force majeure.

The UAE has had to deal with some unwelcome scrutiny of its energy strategy after the COP28 climate conference opened in Dubai on 30 November. Observers had long warned that holding such an event in the world’s seventh largest oil producer was likely to lead to friction and so it has proved. African Energy’s sister publication Gulf States Newsletter (GSN) gives a view from the region, including a roundup of the big pledges made in a ‘transactional’ first week.

Golar LNG has been bullish in outlining its regional expectations for floating liquefied natural gas (FLNG), saying on 21 November that West Africa’s estimated 240tcf gas reserves and “proximity to all major demand centres” gave it a competitive advantage over other gas-exporting regions.

Major Mauritania-Senegal Basin plays GTA and Sangomar are now advancing after ship-related issues delayed both projects for around a year. However, despite optimism for West African LNG developments, much-anticipated results from Shell’s wildcat well in Mauritania’s Block C10 have disappointed.

The Zambian government has said it will abandon the current 30-day pricing cycle for petroleum products and instead move to a 90-day review period, reversing a policy that was set late last year. However, the Energy Regulation Board (ERB) has told African Energy that changing the price review mechanism cannot happen “overnight” and a number of issues need to be assessed before the current 30-day cycle can be discarded.

Dodoma and Kampala have signed a bilateral agreement to jointly fund a feasibility study for a new pipeline to send gas from southern Tanzania to Uganda.

The 1,982km Niger-Benin export pipeline (NBEP) has been nominally commissioned by Niger’s Prime Minister Ali Mahaman Lamine Zeine, although in reality it will be some months before any crude oil is exported along the route.

First discovered in 1974, the offshore Kudu gas field could provide substantial gas-to-power capacity for Namibia’s domestic market and for export to South Africa. Officials say it will proceed independently of recent massive Orange Basin discoveries further south, but industry observers are sceptical of the electricity export plans, citing the lack of transmission infrastructure with South Africa, write Our Namibia Correspondent and Marc Howard.

Following the recent dismissal of Sonatrach chief executive Toufik Hakkar, a further eight vice-presidents have now been dismissed from the national oil company, pointing to wider tensions within the Algiers establishment, writes Our Algiers Corresondent.

Kosmos Energy has taken an operated stake in the 25tcf offshore Yakaar-Teranga gas field, following BP’s exit, and says it intends to export up to 3m t/yr of LNG. Longstanding plans to supply local offtakers through a new pipeline are also set to continue. Meanwhile the cross-border Senegal-Mauritania LNG development continues, but progress could be held up as the Greater Tortue Ahmeyim (GTA) project’s FPSO awaits repairs off Durban, writes Marc Howard.

UK-headquartered independents are leading the way in developing Morocco’s onshore and offshore gas resources, as the government seeks to boost domestic supplies and reduce its reliance on expensive imports via Spain. Among recent activity, Chariot has secured environmental approval for its 1.5tcf offshore Anchois development, writes James Gavin.

Were projects assessed solely on their economic and social impact, the East African Crude Oil Pipeline (Eacop) and Lake Albert would probably be widely praised. Uganda needs both the energy and investment the projects bring. But the projects have drawn fierce criticism from environmental campaigners and NGOs, in Uganda and beyond in a concerted, high-profile campaign that has registered successes.

With oil field developments proceeding at pace, the Kampala government has signalled its intention to play a more robust role in economic management, with plans to renationalise the electricity distribution network and take an expensive majority stake in the Kabalega refinery development. Meanwhile financing for the Eacop pipeline is expected to close soon, with Chinese lenders stepping in where western financiers have refused to go, writes Marc Howard, recently in Kampala and Hoima.

With first oil expected from Lake Albert by early 2026, an array of associated infrastructure is under development, including the controversial Eacop pipeline. Shunned by western financiers, Chinese debt is expected to rescue Eacop, with a financing package due to be finalised in the coming weeks. Kampala has also signalled its appetite to intervene in energy markets by taking a majority stake in the Kabalega refinery, writes Marc Howard in Hoima.