Search results

Houston-based Endeavor Energy has pushed back financial close on the Songon gas-to-power project to the end of Q3 2016 from its previous target of December 2015. Songon is a multi-phase combined-cycle power project with purpose-built liquefied natural gas (LNG) import infrastructure and a floating storage and regasification unit (FSRU), generating 375MW in its first phase. Endeavor entered into a joint development agreement with local partner Starenergie 2073 last year, for Endeavor to take a majority interest in Starenergie and lead the development of the project.

Victoria Oil & Gas (VOG) has agreed to acquire Glencore’s operated stake in the Matanda Block, adjacent to its Logbaba permit. The block includes the North Matanda gas field. VOG said on 18 February it would acquire Glencore Exploration Cameroon’s 75% interest in the Matanda production-sharing contract and take over the operatorship via its subsidiary Gaz du Cameroun (GDC) Matanda. In exchange, VOG will take over responsibility for a work programme to be agreed with the government. The assignment of the stake is conditional on this being agreed, and on other customary government approvals.

The imminent launch of the gas independent power producer (IPP) procurement programme has sparked fresh discussions about the mechanics of the process. A request for proposals (RfP) is expected in April or May and it seems that, until then, many developers’ questions will remain unanswered. While there is enthusiasm for the programme, there are numerous complexities to be resolved, and issues about how the plants will be coordinated with Eskom may push long-ignored policy decisions back into the spotlight.

. Petroceltic International has announced the start of development drilling on the Ain Tsila gas and condensate field. The newly built Sinopec rig 50117 arrived on the Isarene permit in November 2015 and was assembled on site. Development well AT-10 spudded on 21 February. AT-10 is located in the north of the field, some 3.4km from the field discovery well AT-1, and 2km from the appraisal well AT-8, which both delivered gas flow rates of more than 30mcf/d on test. The vertical well is targeting the Ordovician reservoir formation to a planned total depth of 1,989 metres.

Sasol said on 1 February it had obtained approval from Mozambique’s council of ministers for a new field development plan for an area next to its producing Pande and Temane fields. The first phase of the production-sharing agreement licence area development proposes an integrated oil, liquefied petroleum gas and gas project adjacent to Sasol’s existing petroleum production agreement (PPA) area. Sasol declared commerciality on the Inhassoro G6 and G10 oil, and Temane G8 and Temane East gas reservoirs in 2013.

The existential threat to facilities in the Sirte Basin is growing while the prospects for a rapid, if partial, political solution to Libya’s crisis are diminishing. A second wave of attacks carried out by Islamic State (IS, or Daesh) on the Ras Lanuf and Sidra oil export terminals on 21 January has demonstrated definitively that the jihadist organisation intends to destroy oil production capability rather than exploiting it for commercial gain.

While many service companies are struggling with the market contraction caused by the oil price crash, Schlumberger is picking up new opportunities, with a preliminary agreement to take 40% in Ophir Energy’s Equatorial Guinea gas project as well as a global deal with Golar LNG. Schlumberger, which in December signed a field management agreement onshore Morocco, has signed a non-binding heads of terms agreement with Ophir for the Fortuna floating liquefied natural gas (FLNG) project.

An explosion at Naftal’s butane gas bottling plant in the Skikda industrial zone on 5 January hospitalised 17 people with burns, one of whom is understood to have died from his injuries. The incident appears to be a consequence of inadequate safety measures in the operation of the plant – said to be a widespread problem at Sonatrach’s downstream facilities. In a statement released through Algérie Presse Service, the official state-owned newswire, Naftal said that “the incident has no consequences for the effective supply of the wilaya and the eastern region, which is carrying on as normal”.

The fall in the oil price combined with Egypt’s failure to remit funds owed for oil and gas supplied to the domestic market has forced the management of Dublin-based Petroceltic International to put the company up for sale while simultaneously divesting its Egyptian assets. Italy’s Edison International has already taken over Petroceltic’s stakes in the prime offshore blocks that it operates, at what may turn out to be a bargain price. Several producing onshore Egypt fields will be sold next, leaving the Ain Tsila gas development in Algeria as the core asset to be sold with the company.

Aminex on 13 January announced a gas sales agreement with Tanzania Petroleum Development Corporation (TPDC) for its Kiliwani North field. Gas from Kiliwani North will be supplied to the new Songo Songo processing plant. Final well preparations are being completed before testing and commissioning of the new plant, and TPDC and Aminex will agree the start of commercial operations once this is completed.

Bulk Oil Storage and Transportation Company Limited (BOST) has given Penspen a contract to conduct a front-end engineering design study for further development of the Ghana Natural Gas Interconnected Transmission System. BOST, as holder of Ghana’s natural gas transmission utility licence, has a mandate to operate, maintain and further develop a country-wide gas transmission network as part of Ghana’s national agenda to exploit gas as an efficient and cost-effective means of augmenting power supply. The first phase of this build-out will be the addition of approximately 750km of pipeline from Aboadze to Tema, and from Prestea to Buipe, via Kumasi.

Anadarko Petroleum Corporation, Eni and their partners have signed a unitisation and unit operating agreement (UUOA) for the development of massive natural gas resources that straddle Anadarko-operated Area 1 and Eni’s Area 4. Under the terms of the UUOA and previously announced Decree Law, the Prosperidade and Mamba reservoirs will be developed in a separate but co-ordinated manner by the two operators until 24tcf of natural gas reserves, 12tcf from each area, have been developed. All subsequent development of the unit will be pursued jointly by the Area 1 and Area 4 concessionaires through a joint-venture operator (50:50 Anadarko and Eni).

Nigeria’s Oando plc has won shareholder approval to sell its gas and power, downstream, and energy services businesses. A shareholders meeting on 7 December approved plans for a rights issue to raise up to N80bn ($402m). Oando paid $1.5bn to acquire ConocoPhillips’ Nigerian operations in July 2014 in a bid to expand its upstream operations, but its cashflow has been hard hit by the lower oil price. The company, which is listed in Johannesburg and Lagos, while its upstream arm Oando Energy Resources is listed in Toronto, also won approval to issue N40bn of shares from its unissued share capital to swap debt for equity under agreements with two shareholders, Ocean and Oil Development Partners and QPR Limited.

London-based Genesis Energy has signed a power purchase agreement for gas power plants with combined capacity of 360MW. Speaking to African Energy on the sidelines of the African Global Investment Summit in London on 2 December, chairman and chief executive Akinwole Omoboriowo said the first phase would involve a 100MW on-grid power plant using General Electric units and a 20MW distributed power plant using engines provided by the UK’s Cummins Cogen, part of the US-based Cummins Group.

Symbion Power Lake Kivu Ltd on 8 December signed a 25-year power purchase agreement with state utility Rwanda Energy Group for a 50MW methane gas-to-power project on Lake Kivu. A detailed feasibility study and front-end engineering design have been completed for the project, which will now proceed to detailed design, procurement and permiting.The agreement comes as the KivuWatt project, developed by the US’ ContourGlobal, has begun tests for commissioning of its first 25MW after being connected to the grid.