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Page 1: Contentsengineering roles for Chevron and Hilcorp Energy Company. Geoquip Marine appointed Jean-Luc Laloe to its board of directors. Laloe has close to four decades of experience in
Page 2: Contentsengineering roles for Chevron and Hilcorp Energy Company. Geoquip Marine appointed Jean-Luc Laloe to its board of directors. Laloe has close to four decades of experience in
Page 3: Contentsengineering roles for Chevron and Hilcorp Energy Company. Geoquip Marine appointed Jean-Luc Laloe to its board of directors. Laloe has close to four decades of experience in

Monthly FocusThe Digital Oilfield Culture 24

Petroleum Africa May/June 2019 3

Local ImpactWorley’s ESD Initiative a Testimony to Positive Transformation 30

DEPARTMENTSMoving OnMessage from the EditorAfrican PoliticsAfrica’s Big FiveAfrica at LargeDownstream News

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ON THE COVER

ContentsVol. 16 Issue 3May/June 2019

Market MoversAround the WorldPower & AlternativesFacts and FiguresConferencesAdvertisers’ Index

404245485050

Technology and SolutionsInnovative Offshore Technology Award Winners 22

28

The Ramform Atlascompletes MC3Dsurvey offshoreGuinea

Downstream FocusTop Refining Projects in Africa 28

African FocusOverview: Namibia

Overview: Niger

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New Products & ServicesULO Systems Debuts New-Generation RJM

First Multi-Functional Shallow Intervention System Launched

Logan Industries Introduces New Passive Heave Compensation

Wild Well Control Announces Online Drilling Operations Course

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Offshore TechnologyAfrican Refining

Page 4: Contentsengineering roles for Chevron and Hilcorp Energy Company. Geoquip Marine appointed Jean-Luc Laloe to its board of directors. Laloe has close to four decades of experience in

MOVING ON

International Petroleum Corporation haspromoted Daniel Fitzgerald, VP Operations, tothe position of COO. Fitzgerald’s appointmentwas effective April 1. At the same time, RyanAdair, formerly VP Reservoir Development, willassume a senior role in the Canadian managementteam as VP Asset Management and CorporatePlanning of IPC Canada.

OPITO appointed Richard Roberts as VP ofstrategic development for the Middle East andAfrica region. Roberts has over 25 years’ industryexperience in senior roles ranging from operationsto regional human resources. His appointmentfollows the recent announcement of Hart Victorjoining as VP for Asia Pacific. In addition, OPITOappointed Brandon Grosvenor to the new roleof VP of strategic development for theAmericas region.

Ismael Ripoll was appointed as a new advancedanalysis lead for the Exodus Group. With morethan 12 years’ experience in subsea pipeline and

FEA engineering, Ripoll joins Xodus fromIntecsea where he acted as technical authorityof the advanced analysis team.

Aqueos Corp. named Eric Legendre to theposition of VP – International Business andStrategic Development. Legendre has 18 plusyears of industry experience complementingAqueos’ existing team.

Fenix International added digital finance expertJunior Zerubabel Kwebiiha to its core leadershipteam as its chief commercial officer. Kwebiihahas over 10 years of commercial experience inmobile money, digital financial services andbuilding sustainable businesses. Prior to joiningFenix, Kwebiiha served as a Digital FinancialServices Expert at the United Nations CapitalDevelopment Fund in Zambia.

Dr. Bill Higgs has been named CEO and memberof the board of Genel Energy with immediateeffect. Higgs has 30 years of global experiencein the industry, formerly holding executivepositions with Ophir Energy and MediterraneanOil & Gas. Murat Özgül will not stand for re-election at the AGM and has stepped down fromthe board. In addition, Genel appointed CFO EsaIkaheimonen to the board.

Martijn Bergink has been appointed CEO ofFramo. The former CEO of Framo, Sameer

Kalra, moved to Framo’s parent company,Alfa Laval, as the new head of the Alfa LavalMarine Division and a member of the Alfa LavalGroup Management.

Cairn Energy has two new independent non-executive directors, Alison Wood and CatherineKrajicek. Both appointments are effectiveJuly 1.

WFS Technologies added to its seniormanagement team with the appointment ofRichard Adams as Sales Channel Director.Adams’ appointment comes weeks after MorayMelhuish took up the post of CommercialDirector at WFS Technologies.

Royal Dutch Shell appointed Khaled Kacemas the new country chairman and managingdirector in Egypt, replacing Gasser Hanter.Kacem was appointed in 2017 as the director ofShell Hasdrubal Ltd. He was previously assignedthe role of Shell Tunisia Upstream director in2016, and before that, he was appointed asPresident of BG Egypt in 2015. He assumed thechairman and MD position in May.

The executive eirectors of the World Bankselected David R. Malpass as president of theWorld Bank Group for a five-year term. Malpass’term began April 9. He replaces KristalinaGeorgieva.

Malin React, a newly launched arm of the MalinGroup, appointed Graham Penman as a businessunit manager to head up its operation. Penmanhas over 25 years’ experience in engineering,subsea installation, construction and project

To include a corporate personnel announcement in Moving On, write to [email protected]. Preference will be given to Africa-specific appointments and to thosecompanies who have interests within the continent; all others will be included on a space available basis.

South Africa has a new Energy Minister,Gwede Mantashe. Mantashe takes over theenergy portfolio from Jeff Radebe. Thechange in ministers follows South Africa’scombining of the mineral resources and energyministries with the combined ministry fallingunder Mantashe who previously held themining portfolio.

Gwede Mantashe Jeff Radebe

Paul Welch resigned as adirector, and as Presidentand CEO of SDX Energy.Welch’s resignation waseffective May 31. MarkReid, company CFO,assumed the role of interimCEO until the companyrecruits a new CEO.Paul Welch

Carlo Santurino, head of Angola’s state-runoil and gas firm Sonangol, was let go by thecountry’s president, João Lourenço. Saturinowas replaced by Sebastiao Gaspar Martins.Martins, is an oil industry veteran who hasworked at Sonangol for nearly four decades,recently serving on Sonangol’s board as anexecutive administrator.

Carlo Santurino Sebastiao Gaspar

Aminex announced that due to health reasons,Jay Bhattacherjee has stepped down as CEOand director of the company. The board ofAminex appointed Tom Mackay as interimCEO. Mackay joined Aminex in September2014 as a non-executive director and iscurrently the senior non-executive director onthe Board. Linda Beal takes over as the seniornon-executive director.

Jay Bhattacherjee Tom Mackay

South Africa’s state-ownedTransnet appoin tedMark Gregg-Macdonaldacting CFO, with effectfrom May 13. He will alsoserve on Transnet’s board.His appointment followsthe naming of acting CEOMohammed Mahomedyon May 2.

MarkGregg-Macdonald

The CEO of Uganda’sstate-run oil and gas firm,Uganda National OilCompany, JosephineWapakabulo, submittedher letter of resignation.Her resignation is effectiveAugust 13. Wakakapulocited the need to focus onher family and new

opportunities as the reason for her resignation.

JosephineWapakabulo

Page 5: Contentsengineering roles for Chevron and Hilcorp Energy Company. Geoquip Marine appointed Jean-Luc Laloe to its board of directors. Laloe has close to four decades of experience in

management with positions previously held atSubsea 7, DOF Subsea UK, Bibby Offshore,Helix Energy Solutions and GAP Subsea Ltd.

BiSN named Hema Prapoo VP of Sales. Prapoobrings 15 years of experience to the company,starting his career as a wireline field engineer atBaker Hughes for a decade, before joiningAllied-Horizontal Wireline Services. Prapoobrings extensive experience in businessdevelopment, sales, customer service and accountmanagement.

Arja Talakar has been appointed CEO ofSiemens Oil & Gas. Talakar’s appointment waseffective April 1. Prior to taking this new role,he was responsible for Siemens’ Saudi Arabiaoperations.

BCCK Holding Company appointed Don Tyleras director of engineering. He has more than 40years of combined engineering, design, projectand discipline management experience.

Corrosion Resistant Alloys LP appointedTommy Najar as VP of commercial. Prior tojoining the team, Najar amassed more than 17years of industry experience, serving in variousengineering roles for Chevron and HilcorpEnergy Company.

Geoquip Marine appointed Jean-Luc Laloe toits board of directors. Laloe has close to fourdecades of experience in the offshore oil and gasindustry, previously working for companies likeTechnip, Stolt Offshore and Acergy/Subsea 7.

Lincoln Electric Holdings is mourning the lossof John M. Stropki, Jr., former chairman,president and CEO of the company. Stropki passedaway on May 11 at the age of 68. He was withthe company for 41 years serving as the company’sseventh CEO from 2004 to 2012.

A. O. Smith Corp. named Hammam Amairehas general manager – Middle East and Africa. Inhis new role, Amaireh will be responsible forsales in the Middle Eastern and African (MEA)markets. He previously worked for Pentair, wherehe led MEA sales operations.

i-Tech 7, Subsea 7’s Life of Field business unit,appointed Craig Roberts as its new regionalbusiness development manager for the Asia Pacificand Middle East regions. He has more than25 years-experience in the offshore oil and gasindustry, most recently with Total MarineTechnology.

Unique Group appointed Matthew Gordon asthe new regional VP for Europe & UK. Gordon

has over 22 years of experience in the subsea oiland gas industry, with previous seniormanagement roles held in Fugro Survey,Subsea7 and Viking Seatech.

SOCO had some recent changes to its board.Ambassador António Monteiro, non-executivedirector, retired at the conclusion of SOCO’sAGM. Marianne Daryabegui was appointed asan independent non-executive director, effectivein mid-March.

Alhaji Mohammed Ahmed has been appointedas the new managing director of APM TerminalsNigeria. Ahmed is an experienced leader, servingacross a number of markets and industries inAfrica, Asia, Middle East and Europe.

Siemens Gamesa Renewable Energy(SGRE) appointed Alfonso Faubel as thecompany’s new Onshore Business CEO, effectiveJuly 29. Faubel, who has 30 years’ experience inthe automotive and energy industries, joinsSGRE from Sentient Science, where he was chiefrevenue officer of Energy and presidentof Europe.

E g h o s a O r i a i k h iMabhena will be joiningPuma Energy effectiveJuly 1 as Head of Africa.Eghosa joins the team fromBaker Hughes where shehas been executive directorfor their sub-SaharanAfrica oilfield servicesbusiness. Eghosa will join

the Puma Energy Executive Committee andwill be responsible for Puma Energyoperations across Africa.

Eghosa OriaikhiMabhena

Sherif Barakat has beennamed the new CountryDirector for Thales inEgypt. Barakat’s previousrole was VP & CCO ofSamsung Egypt. He hasalso served as countrydirector in both SaudiArabia and Egypt withSamsung.

Sherif Barakat

Write [email protected] book you space

www.petroleumafrica.com

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Petroleum Africa January/February 20186

CONTACT US

MESSAGEF R O M T H E E D I T O R

Petroleum Africa Magazine is aTexas, United States-registered company.PO Box 1571 Montgomery, TX 77356

This year the Offshore Technology Conference in Houston (OTC) celebrated its50th Anniversary. On the occasion, there was additional pomp & circumstancecommemorating the milestone. One of many features at this year’s OTC was theinaugural Around the World Series, which offered analysis of offshore growthin the nine featured countries; Ghana represented Africa. During OTC week eachyear, I always look forward to meeting the delegations from Africa that make thetrip. As with every year in recent memory, Angola and Nigeria had a significantpresence, and Ghana, as it has over the past 6-7 years, was also well represented.

Additionally, from North Africa, Libya made the trip during that same weeklooking to strengthen existing ties and establish new relationships, and of course,attract investment into its beleaguered oil and gas industry. NOC Chairman,Mustafa Sanalla, participated at the U.S. MENA Country Dialogue Series: Libyaand Iraq, organized by the Bilateral US-Arab Chamber of Commerce (USBACC).Days earlier, Sanalla was bestowed the 2019 Visionary Leadership Award by theUSBACC for his “perseverance and dedication in his tireless effort to keep LibyaNOC afloat in challenging times.” And a huge challenge it is!

While speaking at the dialogue series, Sanalla said “NOC is struggling to keepout of this conflict,” emphasizing that NOC looks to remain neutral on the politicalspectrum. He did add that he is “gravely concerned” and that it is “crucial thata ceasefire be reached” or else the result would be a “political vacuum.” For now,Sanalla chooses to keep focused on the job at hand – increasing production,rebuilding infrastructure, conducting new exploration and attracting new investorsand partners. To that end, NOC has established its first international office inHouston. “Our presence in Houston signals the important role that US companiesand expertise can play in the development of our oil and gas sector,” Sanallahsaid. He also touted the quality of American technology and available expertise,along with its commitment to transparency.

Over the course of his speech, Sanalla laid out NOC’s vision and plans whichincludes increasing production to 1.5 million bpd in the near term and to 2.1million bpd by 2023. He said the country has 56 major projects, both new andbrownfield, along with plans for invigorating the downstream. I wish Sanallahand NOC the best of luck in these pursuits. With General Khalifa Haftar’s LNAmaking gains across the country and into Tripoli, it is my sincere hope that nomatter what the political outcome, that NOC will carry on as the standard bearerfor Libya’s oil and gas industry.

Inside these pages, you can find more information on the technologies featuredat OTC as well as developments out of Libya. Our Africa Focus this issue includesNamibia and Niger; one an oil producer and one still in search of the big find!African Refining features in the Downstream Focus, be sure to have a look atthe world’s largest single train refinery coming to Nigeria, as well as updates onother planned refineries. As always, your comments and suggestions are welcomeand can be sent to [email protected].

Dianne SutherlandChief Editor

Advertising RepresentativesAustria, Germany, SwitzerlandEisenacher MedienErhardt EisenacherTel: +49 0228 2499 [email protected]

GhanaResearch Development &Financial Consultants Ltd.Tel: +233 302 767 [email protected]

ItalyEdiconsult InternazionaleAnna De BortoliTel: +39 02 477 100 [email protected]

South AfricaAntonette BentingTel: +27 82 414 [email protected]

North AmericaFarrah YounesTel/Fax: +1 713 867 [email protected]

Rest of Africa/Middle EastFarrah YounesTel: +1 713 867 [email protected]

United KingdomJina SellersTel: +1 713 867 [email protected]

Global InquiriesJina SellersTel: +1 713 867 [email protected]

Deputy EditorJennifer [email protected]

Senior CorrespondentMark Pabst

ContributorsNuria BrinkmannRosário PaixãoScott Shemwell

Operations ManagerAlan Younes

Art DirectorMario Saad

Client Relations andDigital Media ManagerFrederick Caccamo Jr.

Circulation ManagerSilvia Rafaat

Distribution CoordinatorAmira A.Wahab

Database CoordinatorOlabisi Ijeh

Senior AccountantSaid Adly

Advertising/SalesJina Sellers

IT and Social MediaFarrah Younes

Administrative AssistantDalia Abd El-Wahab

Africa Headquarters10G Ahmed Abd El-Aziz St.,New Maadi, Cairo, EgyptTel/Fax: +2 02 2517 [email protected]

[email protected] visit www.petroleumafrica.com

Petroleum Africa May/June 20196

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Page 8: Contentsengineering roles for Chevron and Hilcorp Energy Company. Geoquip Marine appointed Jean-Luc Laloe to its board of directors. Laloe has close to four decades of experience in

Petroleum Africa May/June 20198

AFRICAN POLITICS

Sudan: Protestors Fired UponThe situation on the streets of Khartoum andthroughout Sudan have continued to heat up. Justprior to Petroleum Africa going to press onJune 3, security forces fired on pro-democracyprotesters in the capital, leaving a number of deadand many more injured.

The situation in Sudan began back in Decemberfollowing then-president Omar Al Bashir cuttingsubsidies, with fuel and bread price increasesigniting the country’s citizenry, especially amongthe many poor. By April Al Bashir was forcedout in a bloodless coup. The Council ofGenerals took over on April 11 but have beenunable to quell the unrest and return the countryto normality.

This latest round of violence prompted the UnitedNations chief’s condemnation and an appeal for“peaceful dialogue” to resume. Secretary-GeneralAntónio Guterres “strongly condemns theviolence” and “the use of force to disperse theprotestors at the sit-in site,” said a statementissued by his Spokesperson, adding he was alsoalarmed at reports that “security forces haveopened fire inside medical facilities.”

Mr. Guterres reminded the Transitional MilitaryCouncil of its responsibility for “the safety andsecurity of the citizens of Sudan,” and urged allparties to “act with utmost restraint,” includingtheir responsibility to uphold “the human rightsof all citizens, including the right to freedom ofassembly and of expression.”

“The Secretary-General urges the parties to pursuepeaceful dialogue and to stay the course in thenegotiations over the transfer of power to acivilian-led transitional authority, as required bythe African Union (AU),” the statement continued.It concluded with the UN chief’s commitment toworking with the AU in support of the process,saying that the UN “stands ready to support theSudanese stakeholders in their efforts to buildlasting peace.”

Pan-African Free Trade Pact in ForceThe Africa Continental Free Trade Agreement(AfCFTA) came into force in late May afterbeing ratified by the parliaments of 24 countries.The commissioner of Trade and Industry forthe African Union, Albert Muchanga,confirmed by tweet that the agreement is now in

force and that a unified market would belaunched July 7.

Surprisingly, Nigeria, Africa’s most populouscountry and largest economy, has not signed onto the agreement, saying it needed to consulteconomic stakeholders before deciding onwhether or not to participate. At present,52 African nations are onboard with the deal,leaving just Nigeria, Benin, and Eritrea onthe sidelines.

According to the Brookings Institution, “Thesignificance of the AfCFTA cannot be overstated:It will be the world’s largest free trade area sincethe establishment of the World Trade Organization(WTO) in 1994.”

The AfCFTA is expected to greatly facilitate themovement of goods between nations and reducetariffs dramatically. Once in effect, participantswill be required to drop 90% of their tariffs forimports from other African states. According tothe United Nations, this could boost intra-Africantrade by 52.3%.

Libya: Opposition Hires US PR FirmField Marshal Khalifa Haftar and his LibyanNational Army (LNA) hired Linden GovernmentSolutions, based in Houston, according to a foreignagent registration document released by the USJustice Department. The leader of the LNA islooking to gain international support for his bidto take over Libya.

According to an AP report Linden, which wouldreceive about $2 million under the 13-monthagreement, also will assist with “internationalcoalition building, and general public relations”for the LNA.

Haftar is reported to have spoken to USPresident Donald Trump on the telephone. Thetwo were said to have shared their vision of“Libya’s transition to a stable, democraticpolitical system.”

The Linden executives leading the firm’srepresentation of Haftar and the LNA, StephenPayne and Brian Ettinger, have extensiveknowledge of Libya, the company said in astatement. Payne, Linden’s president, said he hasbeen in communication with Haftar for the pastfive years, according to the statement.

NOC Condemns Attack at ZellahIn Libya extremists stormed the main gate betweenZellah city and a local oilfield operated by NOCunit Zueitina Oil Company (ZOC). According toreports on the state-run firm’s website, the attackresulted in three casualties.

NOC, in its statement condemned the attack. Theincident caused no immediate impact onoperations. ZOC management held an emergencymeeting to review security protocols, requestingthat the local Petroleum Facilities Guard takenecessary precautions.

NOC chairman, Mustafa Sanalla denounced theattack and warned of the risk to the oil sectorfrom current hostilities: “NOC strongly condemnstoday’s terrorist attack that could have easilyendangered oil sector workers and infrastructure.The incident highlights the fragile securitysituation in our country and the need for animmediate ceasefire. Ongoing hostilities havecreated a security vacuum that extremists are nowtaking advantage of – potentially plunging Libyainto even deeper chaos.”

Algerian Election CanceledPolitical uncertainty will continue in Algeria asits planned July 4 election has been canceled.The country’s constitutional council cited “a lackof candidates.”

Given the current political and civilian climatein Algeria, the prolonging of the political transitioncould incite more anger from protesters. Themove will likely extend the rule of interimPresident Abdelkader Bensalah, who was due tostay on only until the vote to elect a new president,following the resignation of former PresidentAbdelaziz Bouteflika after weeks of protests.

In a statement on state television, the constitutionalcouncil overseeing the country’s transition, saidtwo candidates had come forward but weredeemed invalid. The two candidates had not metthe quorum of 60,000 signatures in support, apolitical source told Reuters.

Buhari Sworn-In for Second TermMuhammadu Buhari was sworn in for a secondterm as Nigeria’s president, after winning theelection with 56% of the vote. His closestcompetitor, former Vice President AtikuAbubakar of the Peoples’ Democratic Party(PDP), took 41%.

Buhari, now 76-year, was sworn in on May 29amid tight security in the capital Abuja. He ranthis campaign focused on tackling security threatsand rooting out corruption.

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Like in previous elections in Nigeria, the resultsare being disputed. Abubakar filed a petitionwhich will be adjudicated in Nigeria’sappellate court.

U.S. Embassy CommendsMoves Toward Peace in MozambiqueThe Embassy of the United States of Americacommended the President Filipe Jacinto Nyusi,and Renamo President Ossufo Momade for theirjoint announcement committing to completingthe disarmament, demobilization, and reintegration(DDR) process in the months of June and Julyand expressing intent to sign a definitive ceasefireagreement and permanent peace accord in August.The US statement said it welcomed this news ofprogress toward achieving these key milestonesin advance of the October general elections andurged both sides to continue taking concrete andsimultaneous steps to fulfill their respectivecommitments to reaching a timely and completeDDR of Renamo combatants.

“The cooperation between President Nyusi andRenamo President Momade to advance the peaceprocess, especially in the wake of the devastatingand tragic cyclones that struck Mozambique inMarch and April, stands as a testament to the twoleaders’ desire to unify the country. The UnitedStates congratulates the Government of the

Republic of Mozambique and Renamo, andremains committed to working within theframework of the International Contact Group toprovide the support necessary to achieve thedurable peace deserved by the people ofMozambique,” the statement read.

New UN GeneralAssembly Head AppointedTijjani Muhammad-Bande, Nigeria’s current UNPermanent Representative, was elected to headthe world body by acclamation on June 4 in theGeneral Assembly Hall in New York and willsucceed Ecuador’s Maria Fernanda Espinosa.

“Peace and security, poverty eradication, zerohunger, quality education, climate action andinclusion will constitute a major priority of mypresidency,” said the Nigerian ambassador.

When he takes the reins at opening of the 74th

session in September, he is committed to“promoting partnerships that are needed from allstakeholders to achieve our objectives, andultimately ensure that we do our best to ensurepeace and prosperity, particularly, for the mostvulnerable.”

Muhammad-Bande spoke about a number ofSeptember’s high-level events that will be

convened at UN Headquarters in New York tosupport the Sustainable Development Agenda,including a High-Level Political Forum, theClimate Change Summit, the High-LevelDialogue on Financing for Development, theHigh-level meeting on Universal HealthCoverage, as well as the high-level meeting toreview progress made in addressing thepriorities of Small Island DevelopingStates (SIDS).

“The promotion of human rights and theempowerment of women and youth deservespecial attention, and I will be devoted to thepromotion of gender parity throughout the wholeUN system, starting from my own Office,” saidthe president-elect.

Noting that the 75th anniversary of the UN’sfounding would be commemorated during histenure, he called it “a unique opportunity for usto reduce the trust deficit between nations.”

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Petroleum Africa May/June 201910

AFRICA BIG F IVE

Dana G Spuds East Med WellDana Gas spud the Merak-1 well offshore Egypton its North El Arish concession on May 20. Thisblock is in the Eastern Mediterranean Basin wheregiant natural gas discoveries, such as ENI’s Zohrdiscovery, have been made in recent years.

The Merak-1 well is being drilled using theTungsten Explorer, on hire from AdvantageDrilling Services. The well is estimated to takeapproximately 70 days to drill.

Prospective resources to be added from this wellin the case of exploration success could reach4 Tcf of natural gas. The discovery of a world-class resource of this size could easily supportan offshore field development. If Merak-1 issuccessful, additional exploration and appraisaldrilling will follow.

Rockhopper Busy on Egypt PortfolioRockhopper Exploration provided an operationalupdate on its Egyptian portfolio, in which thecompany holds a 22% working interest. The AlJahraa-11 in-fill well reached TD of 4,150 metersMD in mid-April in the Kharita formation.Mudlogs and petrophysics indicate combined netpay of 28.7 meters.

The well was successfully tested across the ARC,ARG and Bahariya and has been completed witha dual string to produce from these threereservoirs. The well is currently producingapproximately 787 bpd gross. In addition to theoil production from Al Jahraa-11, theoperator, Kuwait Energy, is evaluating a gascommercialization solution through bids for theconstruction of a sales gas pipeline from Al Jahraato the gas plant at El Salmiya.

The Al Jahraa -7 in-fill well was spud on May26, as of June 2 it was drilling ahead at 1,195meters in 12 1/4" hole. This well is planned toreach TD in the Kharita formation with its primaryobjective being an infill oil producer in the ARCreservoir and having a secondary objective in theBahariya. The well is planned to take around 60days to drill and complete.

The next well in the program will be Al JahraaWater Injector-1, followed by the SW-ASHcommitment exploration well.

On the Abu Sennan 6 development lease, whichwas awarded on March 25, the ASX-1X discoverywas brought onstream shortly thereafter. Thewell is currently producing 150 bpd gross. As ofJune 2 the total gross production from Abu Sennanwas 5,135 boepd.

Nigeria Looks to Re-WriteExsisting Contracts with ShellNigeria has begun renegotiating oil contracts withShell. According to Minister of Petroleum,Emmanuel Ibe Kachikwu, the government islooking for better terms than were seen in theprevious PSCs with the international oil firm.

Nigeria has several types of contracts with energymajors including JVs for onshore blocks, in whichthe government has an equity stake, andproduction-sharing agreements for thedeepwater blocks.

The state signed production sharing contracts inthe early 1990s with companies including Shell,France’s Total, ENI, and ExxonMobil.

Kachikwu said the old agreements favoredthe foreign companies, giving them as much as80% of the oil that was produced after costs –known as profit oil – against the 20% for thestate. “That is a non-starter,” the Minister said.“It’s got to be better.”

He said the new contracts should start at 60% orlower in the company’s favor. Under these typesof contracts, the companies take the greater sharein the initial stages of operation, before graduallyshifting in favor of the state as the companiesrecover their investments.

Kachikwu said NNPC has already enteredinto renegotiations with Shell, which in 2023will be the first company to see a contract expire.Others will expire by 2028. “The Shell model,when they finish, will then be the basisof what we do with all other PSC contractors,”he said.

Development LeaseApproved in Western DesertTransGlobe Energy received approval for a newdevelopment lease in Egypt. In the Western Deserton the South Ghazalat, the company receivednotice that its Development Lease (DL)application for the SGZ-6X discovery well wasapproved by the Ministry of Petroleum.

The SGZ-6Z discovery well tested at a rate of3,840 bpd of light oil.

The 29.8 sq km DL has a 20-year primary termwith a five-year extension available. In additionto the $1 million DL bonus (as per the concessionagreement), the company has committed todrill a minimum of one exploration well onthe DL within the first four years of theprimary term.

Upon receiving approval of the South GhazalatDL and having met all the commitments for thefirst two exploration phases, TransGlobe electednot to enter the final 18-month exploration periodand relinquished the balance of the South Ghazalatexploration lands.

The near-term development plan is targeting firstoil production from the SGZ-6X discovery wellin Q4 of 2019. The initial developmentincludes the construction of an EPF and equippingthe SGZ-6X well for production. The companyis targeting to initially produce the SGZ-6X wellat about 1,000 bpd from the Upper Bahariyaformation to assess reservoir performance.Subject to finalizing transportation agreementswith neighboring operators, the crudeproduced will initially be trucked to a nearbyfacility which is connected by pipeline to theEl Hamra Terminal.

Concurrently, TransGlobe is planning to drill anappraisal well in Q3/Q4 (subject to rig availability)which, if successful, would be tied into the EPFand potentially be producing prior to year-end.In addition, it has initiated a project to merge andreprocess two existing 3D seismic surveys overthe DL area to better define prospects and leadsidentified from current mapping for futureexploration and appraisal drilling.

KBR Wins Algeria’s RKF ContractKBR, Inc. will be working in Algeria providingthe Basic Engineering Design (BED) and Front-End Engineering Design (FEED) for theredevelopment of the Rhoude el Krouf Field(RKF). The contract comes from state-runAlgerian firm Sonatrach and its partner on theRKF, Cepsa.

The RKF field, located in the Algeria desert south-East of Hassi Messaoud, includes an oil and gasCPF with gathering network and all associatedstructures. The redevelopment will add anadditional oil and gas treatment train to the existingfacilities. This project is part of the objectives setby partners Sonatrach and Cepsa to support theincrease of Algeria’s oil and gas capacity.

Tungsten Explorer

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The project will be executed from KBR’s Londonand Chennai offices over an eight-month period.

NOC Meets with SchlumbergerLibya’s NOC chairman, Mustafa Sanalla, metwith the chief operating officer of Schlumberger,Olivier Le Peuch, on May 9. The two discussedonshore and offshore field development.

The two parties also agreed to sign a MoU inJune on joint drilling and training projects.

Sanalla and Le Peuch discussed soon tocommence drilling and early production projectsin the Murzuq and Sirte basins, as well as trainingcenters that Schlumberger will establish in Tripoliand Benghazi to give the next talent pool of theoil sector a skills boost.

Libya to Develop North Hamada OilfieldNational Oil Corp (NOC), Libya’s state-run oiland gas firm, said in a statement that it plannedto launch the development of the North Hamadaoilfield in the northwest of the country onConcession 47 through one of its JVs, NafusahOil Operations.

Nafusah Oil Operations, a JV between NOC andIndonesia’s PT Medco, holds the right to developConcession 47 where the field is located.

“A technical team held a workshop on May 20to discuss proposals submitted for the developmentof the field,” the statement said.

El Fayum DrillingProgram to Start in JuneSoco International, following the completion ofthe acquisition of Merlon Petroleum El FayumCompany, reported average production from theEl Fayum concession in Egypt at 5,551 bpd.

The company reported that a second rig wascontracted and drilling operations with this rigare expected to commence next month. The focuswill be on drilling more production wells andadditional injector wells to enhance the secondarywater flooding in the core El Fayum fields.

In addition, Soco said it was making good progressin reducing diesel-fired electrical power generationby introducing new gas-fired generators, whichwill both reduce CO2 emissions and the amountof gas going flared off.

The team in Egypt has been integrated with Soco’soperations to manage this expanded program ofactivity. Soco anticipates a 2019 exit rate in excessof 6,500 bpd from the El Fayum concession. Itsgoal remains to increase production from theconcession to 15,000 bpd by 2023.

The company is considering short and long-termoptions for off-take arrangements in Egypt,including various different refinery and pipelineoptions to provide maximum flexibility for futuredevelopments.

Block 15/06 Sees 5th Discovery in a YearENI made another discovery in Angola on Block15/06. The discovery marks the company’s fifthon the block in one year. The well has been drilledon the Agidigbo exploration prospect, and analysisof post drill results indicate between 300 and 400million barrels of light oil in place.

The Agidigbo-1 NFW was drilled using the WestGemini drillship in a water depth of 275 metersand reached a total depth of 3,800 meters. Drillingshowed a single hydrocarbon column composedof a gas cap of about 60 meters and 100 metersof light oil.

ENI said the discovery has further upside thatwill be proved by an appraisal campaign plannedfor early-2020.

Due to its proximity to East Hub’s facilities andsubsea network, production from Agidigbo canbe fast-tracked, thus extending the ArmadaOlombendo FPSO production plateau.

The Agidigbo discovery follows the discoveriesof Kalimba, Afoxé, Agogo and Ndungu. The fivediscoveries altogether are estimated to containup to 1.8 billion barrels of light oil in place withpossible upside. These new discoveries furtherconfirm the exploration potential of the blockand the effectiveness of the exploration skills andproprietary technologies that ENI is utilizing tounlock the full potential of the area.

SPDC Targets 600 Mmcf/dSPDC, Shell’s unit in Nigeria, said it istargeting gas output of 600 Mmcf/d from its AssaNorth and Ohaji South. This follows thecompany taking the FID on the two projectsearlier this year. The two fields, currently under

development, are expected to generate energyequivalent to 2,400 MW.

Osagie Okunbor, MD of SPDC stated that “theprojects would be a major game-changer inNigeria’s quest for energy sufficiency andeconomic growth as we look to grow the domesticgas market.”

This production will see 2.4 million Nigerianhomes with an uninterrupted power supply, thecompany said.

Sirte Oil CompanyIncreases Flows at Istiklal OilfieldNOC unit, Sirte Oil Company (SOC), saw thesuccessful completion of the FF03-6 developmentwell within the Istiklal oilfield. The activities ofSOC were fully supported by the state-run firmas part of its drive to increase and maintainproduction and ensure regular gas supply tocoastal region power plants.

The testing of the well was conducted on May12 and drilled utilizing Aphron technology – amodern drilling fluid system utilized under thesupervision of the Al-Jowfe Service Company.According to a statement on the NOC website,the results were encouraging.

The well saw condensate production of 7,103Mmcf/d and condensates of 263 bpd on a64/32-inch choke. It saw higher production rateswas testing on a 64/68-inch choke; gas flowed at13,979 Mmcf/d and condensate at a rate of455 bpd.

Well completion is to be finalized using productionpipelines and well accessories designed accordingto specific reservoir conditions.

TransGlobe Drillson West Bakr ConcessionTransGlobe Energy saw a development welldrilled on the West Bakr concession in Egypt’sEastern Desert. The K-63 development well wasdrilled to a total depth of 4,741 ft and cased asan Asl A formation oil well. The K-63 wellencountered an internally estimated 74 ft of netoil pay in the main Asl A pool based on well logs

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and samples. It is expected that K-63 will becompleted and placed on production by earlyJune, along with the previously drilled H-30development well.

Also on the West Bakr concession, the HW-2Xdiscovery well is producing at a rate of around700 bpd. During drilling the well encountered aninternally estimated 113 ft of net oil pay.

The drilling rig is scheduled to move toTransGlobe’s NW Gharib to drill the NWG 38D-1 exploration well. The well is targeting the RedBed formation in an adjacent fault block to theeast of the company’s producing 38A pool.TransGlobe initiated water injection in the NWG38A Red Bed pool during Q1 to maintain reservoirpressure and increase recoveries.

Algeria’s HydrocarbonLaw Ready for ApprovalAlgeria’s latest version of its hydrocarbon law iscomplete and will be submitted to authorities forapproval according to Mohamed Arkab, thecountry’s Minister of Energy.

The draft hydrocarbon law covers institutional,contractual, fiscal and environmental terms.

Africa’s third-largest oil producer and numberone natural gas producer is looking to revamp itsexploration strategy and attract fresh investment.A decline in reserves has been noted in the past

few years despite several recent discoveries.Meanwhile, the national demand for hydrocarbonproducts is increasing and the country is facinga whopping seven percent annual GDP growth.The draft has been finalized according to theorientations of the Inter-Ministerial Council andhas been handed over to the various ministerialdepartments for possible add-ons,” said Arkab.He did not provide a deadline as to when to expectfinal approval.

During the announcement, Arkab mentioned the51/49 rule, which forbids foreign investors fromowning north of 49% of any company in Algeria,would not be withdrawn from the future bill. “Wewill not alter the 51/49 rule. However, furtheramendments will allow us to improve investmentconditions from a legal, institutional and fiscalpoint of view,” Arkab said.

Arkab went on to say that the aim of drafting anew law was to is to counter a “slowdown in newexploration and production contracts” as well as“restore the country’s extractive industriesattractiveness, increase production levels andbring in foreign direct investment in thepe t ro leum sec tor, wi thout th rea t ingnational sovereignty.”

ENI Knocks Out Angola DiscoveryENI has made a new light oil discovery in Block15/06, in Angola’s deep offshore. The well wasdrilled on the Ndungu exploration prospect. The

new discovery is estimated to contain up to250 million barrels of light oil in place, withfurther upside.

The Ndungu-1 NFW well is located a fewkilometers from ENI’s West Hub facilities andwas drilled by the Ocean Rig Poseidon drillshipin a water depth of 1,076 meters and reached atotal depth of 4,050 meters.

The Ndungu-1 NFW proved a single oil columnof about 65 meters with 45 meters of net pay ofhigh quality oil (35° API) contained in Oligocenesandstones with excellent petrophysical properties.The result of the intensive data collection indicatesa production capacity in excess of 10,000 barrelsof oil per day.

Ndungu is the first significant oil discovery inAngola inside an already existing DevelopmentArea. It certifies the concrete validity of the recentlegislation, promoted through the PresidentialLegislative Decree No. 5/18 of 18 May 2018,which defines a favorable legal framework onadditional exploration activities within existingDevelopment Areas.

Being located about 2 km from the Mpungi field,the new discovery can be fast-tracked toproduction due to the proximity to the subseaproduction system. Production will be routed tothe N’goma FPSO, therefore extending the WestHub’s production plateau.

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Ghana’s Akoma-1X is a HitENI’s drilling offshore Ghana on CTP-Block 4resulted in a gas and condensate discovery. Thewell, drilled on the Akoma exploration prospect,revealed an estimated volume between 550 and650 Bcf of gas and 18-20 million barrels ofcondensate.

The discovery has further additional upside forgas and oil that will require further drilling to beconfirmed.

The Akoma - 1X exploration well was drilled bythe Maersk Voyager drilling ship in a water depthof 350 meters and reached a total depth of 3,790meters. It is located northwest of the Sankofa hubwhere the John Agyekum Kufuor FPSO sits.

Akoma - 1X proved a single gas and condensatecolumn in a 20 meter thick sandstone reservoirinterval of Cenomanian age with goodpetrophysical properties. The well is the firstdrilled on CTP-Block 4 and represents a discoveryof a potentially commercial nature, due to itsclose distance to the existing infrastructures. Thediscovery can be put in production with a subseatie to the FPSO with the aim to extend itsproduction plateau.

Savannah to Test Niger’s Amdigh-1Savannah Petroleum revealed that it expects toproceed with its planned Amdigh-1 discoverywell test in H2 2019. Its previously announcedPre-Stack Depth Migration (PSDM) seismicprocessing project on R3 East is now complete.

The PSDM dataset shows an overall improvementin seismic imaging at all levels vs. the existingPre-Stack Time Migration (PSTM) dataset. Theinterpretation phase, which is planned to startthis month, will assist in confirming drillingtargets to support the proposed EPS as well asidentifying additional prospectivity in the deeperYogou and Donga Cretaceous intervals.

TE-10 Disappoints, No Commercial FlowsSound Energy’s TE-10 gas discovery onMorocco’s Tendrara permit failed to find successwhile on test. While the well flowed gas to thesurface, it did not achieve commercial flow ratesfollowing the stimulated well test.

Both internal and external petrophysicalinterpretations of wireline log data, integratedwith FMI (high definition formation micro-imagerlog), and side wall core analyses, estimated netpay of up to 15.4 meters in a succession of thinlybedded gas bearing intervals distributedthroughout the 110 meters gross TAGI reservoirinterval. The presence of moveable hydrocarbonswas further supported by the successful recoveryof a gas sample from 1,937 meters MD (mMD),with no evidence of water, using a modularformation dynamics tester (MDT).

A mechanical stimulation was carried out overthe uppermost primary zone (1,932 to 1938 mMD)by an experienced crew of Schlumbergerengineers, deploying ‘state of the art’Schlumberger Hi-Way technology, the first useof this technique in Morocco. Wireline dataacquired during the operations indicated that thestimulation was successful and that the formationwas likely fractured over an interval between1,924 mMD and 1,946 mMD. After the initialclean up this zone was flowed and recovered amixture of gas and liquid, largely comprising thefluid used in the stimulation. Two nitrogen liftoperations were subsequently performed in anattempt to increase the gas flow rate, followedby nitrogen injection into the fracture network.

Serinus Ramping UpOperations in TunisiaSerinus Energy is ramping up operations in Tunisiaafter a prolonged period of inactivity due to thedifficult social conditions in the country. Thecompany’s local team commenced the reopeningof the Chouech Es Saida field in southern Tunisiain late Q1.

Initial steps include the re-hiring of employees,road clearing, inspection of down hole equipmentand consumable inventories, tendering for servicesand site inspections. These procedures areongoing, with work to replace the pumps due tocommence during Q2 and production anticipatedin early Q3 2019.

Serinus also expects to deploy additional capitalto the Sabria field in the form of a re-entry intoa well that was mechanically damaged duringcompletion many years ago by a previousconcession holder. The company views activitieslike this as excellent capital allocation with lowexploration risk and technical risk that has beenmitigated over the years by improving technology.

The Sabria field has been producing, since itsdiscovery, on simple primary production. Serinusis considering applying artificial lift to this field.

This capital investment work at Sabria isanticipated to start in late-2019.

Two Majors Pull Outof Ghana’s Bidding ProcessUS-based ExxonMobil and the UK’s BP pulledout of Ghana’s ongoing licensing round. The pairhad submitted applications for direct negotiationsfor Blocks 5 and 6 but then recently withdrewtheir interest.

Ghana is offering six oil exploration blocks, threethough competitive bidding process, blocks 2, 3,and 4. While Blocks 5 and 6 were supposed tobe for direct negotiations; the last block has beenset aside for GNPC.

ENI, Vitol, and Tullow Ghana Limited allsubmitted bids for Block 3 with First E&Psubmitting a bid for block 2.

The original pool of companies that put in a bidfor the three oil blocks included CNOOC, CairnEnergy, Qatar Petroleum, Global PetroleumGroup, First E&P, Sasol, Equinor and HarmonyOil and Gas Corp. Total, Kosmos Energy, andAker Energy were also participating in thelicensing round.

Shell Looking at South AfricaShell is looking to acquire acreage in South Africa,the Petroleum Agency South Africa (PASA)confirmed to Bloomberg. The firm has appliedto take a stake in OK Energy’s license in deepwaters off the country’s west coast.

“We have indeed received an application whichis awaiting ministerial approval,” PASA toldBloomberg.

According to reports, Shell could acquire a 40%stake from Anadarko Petroleum in deep-waterblock 5, 6, and 7 off Cape Town.

The news on Shell follows South Africa comingclose to finishing separate oil and gas legislation.Shell had left the country’s Orange Basin twoyears ago due to policy uncertainty.

ENI Adds Stakes inMozambican Blocks to PortfolioENI picked up new stakes in Mozambique’soffshore arena. The company acquired rights toexplore and develop Blocks A5-B, Z5-C, andZ5-D in the Angoche and Zambezi Basins. Theacreage comes through a farm-in agreement,signed with ExxonMobil and authorized by theMozambican authorities. ENI will gain a 10%stake in all three blocks.

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Block A5-B is located about 1,300 km northeastof the capital Maputo, in a completely unexploredarea off the city of Angoche. It has an area of6,080 sq km at water depths ranging from 1,800and 2,500 meters.

Blocks Z5-C and Z5-D cover a total area of10,205 sq km, at a water depth between 500 and2,100 meters, in a scarcely explored area facingthe delta of the Zambezi River, about 800 km tothe north-east of the capital Maputo.

The three blocks, assigned under the 5th LicensingRound, are operated by ExxonMobil (40%), inpartnership with the Mozambican State companyEmpresa Nacional de Hidrocarbonetos (ENH,20%), Rosneft (20%) and Qatar Petroleum (10%).

ENI holds a 59.9% stake in Block A5-A offeredin the country’s 5th Licensing Round. The blockis adjacent to Block A5-B. Other partners areSasol (25.5%) and ENH (15%). A farm-outagreement enabling Qatar Petroleum to acquirea 25.5% participating interest in Block A5-A,reducing ENI shares to 34%, is pendingauthorization by the Mozambican authorities.

Pre-qualificationfor Equa G Blocks Closing SoonEquatorial Guinea’s Ministry of Mines andHydrocarbons’ 2019 Oil and Gas Licensing Round– EG Ronda 2019 – will see the pre-qualificationfor bidding window close June 3.

The licensing round is comprised of 26blocks; 24 for exploration and two forappraisal/development of hydrocarbons alreadydiscovered. The deadline for companies tosubmit bids is September 27. Winning bids willbe announced November 27 at the Gas ExportingCountries Forum 5 th Gas Summit inEquatorial Guinea.

“We want to welcome all investors from the oilindustry to join us in developing our vast resourcesfor the benefit of our country, and our internationalpartners, in an environment of clear and stablelegislation, fantastic incentives for the companiesand extraordinary untapped potential of ourbenevolent geology,” said Gabriel Obiang Lima,Minister of Mines and Hydrocarbons.

The country already hosted roadshows in CapeTown, Malabo, and San Antonio betweenFebruary and May. Equatorial Guinea hasscheduled additional roadshows in London (AOPInvestor Forum, June 17), Cape Town (AOWNovember 4-8) and Malabo (CEGF Gas Summit,November 26-29).

PGS Completes Guinea MC3DPGS’ latest MultiClient 3D (MC3D) GeoStreameracquisition offshore Guinea has been completed.The MC3D survey covered blocks A4 and A5and was completed on May 8. The Guinea MC3Dsurvey is PGS’ first MultiClient project incollaboration with Guinea and marks the start ofa series of planned acquisitions.

The survey was conducted using the RamformAtlas over a 7,900 sq km area in water depths of60 to 4,500 meters. The survey commencedoperations in mid-February and took 84 days tocomplete.

A PGS statement read: “The competent and well-managed PGS crews delivered excellent HSEQperformance, in line with our corporatecommitment. The speed of operation, togetherwith a highly effective seismic spread, reducedoverall survey duration, maximizing efficiencyand minimizing environmental impact. Onlinebarnacle scraping lessened noise and improveddata quality while reducing exposure to HSErisks. Evaluation of the acquired separated-wavefield data (P-UP) confirms the highstandards achieved.

“PGS brings GeoStreamer technology with a truebroadband imaging solution to the Republic ofGuinea. Broader bandwidth and rich low-frequency content provide clearer reservoirdetails in all play types, with reducedsidelobe artifacts.”

The project includes the acquisition and processingof seismic, gravity and magnetic data over openacreages. Commercial, strategic and technicalbenefits are available now to early participantsin the survey.

Room for Partnerson South Sudan’s Block B2Companies who had an interest in South Sudan’sBlock B2 prior to its award to South Africa’sStrategic Fuel Fund (SFF) may have anotherchance to get take a stake. According to thecountry’s Minister of Petroleum, Ezekiel LolGatkuoth, SFF has “room to farm in” a partnerin carrying out activities on the block.

The recently signed $1 billion exploration andproduction sharing agreement will see the SFFconduct exploration activities in the block andbuild a 60,000 bpd refinery and pipeline inSouth Sudan.

Gatkuoth told Bloomberg that the SouthSudanese government has the right to approveany partners, with the transaction beingsubject to capital gains tax. In approving anypartnership, the government will consider therole the relationship will play in boostingproduction as the country works to restore itsoutput to pre-war levels.

Under the agreement, the SFF will own andoperate Block B2 alongside South Sudan’snational oil company, Nile Petroleum Corp.

Shearwater Wins SNE ShootWoodside Energy has contracted ShearwaterGeoServices to conduct a high-density multi-azimuth 3D seismic acquisition campaignover the SNE field offshore Senegal.Woodside is the operator of the SNE FieldDevelopment JV.

The contract covers the Sangomar, SangomarDeep and Rufisque Offshore blocks, whichinclude the SNE discovery.

The work, designed as high density and multi-azimuth survey, will be acquired by the PolarMarquis using 14 streamers, and Flexisourcetriple source. Starting in early Q3 2019, the surveywill take approximately 90 days to complete.

“We are pleased to see the award by Woodsideof this complex multi-azimuth triple sourcecontract over these significant Senegaldiscoveries” said Irene Waage Basili, the CEOof Shearwater GeoServices. “The award reflectsour capabilities as a full-service geophysicalservice provider and the Polar Marquis’ excellentrecord operating offshore Africa.”

KBR Wins New Jobon Greater TortueAhmeyim ProjectKBR picked up more work on the Greater TortueAhmeyim Project offshore Senegal andMauritania. BP awarded the company’s UKoperating subsidiary the EPCM contract to providefacilities integration and terminal quartersand utilities.

KBR will manage the Hub/Terminal QUcontractor, provide services for the QU IntegratedControl, Safety System ICSS, Telecoms Systemsand Supplemental Services – system engineering,

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support and verification – for the marine and civilelements of Hub/Terminal.

“KBR is delighted to continue supporting BPduring the execution of the integration and QUfor Phase 1 of the TortueAhmeyim Project,” saidJay Ibrahim, KBR President, Energy Solutions –Services. “We are proud to be part of thisgroundbreaking project which will deliver LNGrevenues and gas to Africa for decades to come.”

South Sudan toGet Production Boost in JuneSouth Sudan’s Minister of Information MichaelMakuei Lueth, while speaking to reporters saidthat the government plans to increase productionby 30,000 bpd by the end of June.

According to figures recently released by theMinistry of Petroleum, current production in thecountry is 175,000 bpd.

The Minister said that profits from marketing thisadditional volume will be used to financeconstruction and roads and other publicinfrastructure. He also said that these funds willhelp pay part of the salary arrears of officials whohave not been paid for nearly five months.

This increase in production is due to the lull inthe country’s main production areas that has beenobserved for several weeks.

Chariot’s SeesResource Upgrade in MoroccoChariot Oil & Gas’ remaining recoverableresources have been upgraded to in excess of

1 Tcf, according to its recent Competent PersonsReport (CPR) completed by NSAI over its satelliteprospects adjacent to the Anchois-1 gas discoveryin the Lixus Offshore License, Morocco. TheLixus license covers an area of approximately2,390 sq km, 30 km north of Chariot’s existingMoroccan acreage, with water depths rangingfrom the coastline to 850 meters. The area hasbeen subject to earlier exploration with legacy3D seismic data covering approximately 1,425sq km and four exploration wells, including theAnchois gas discovery.

The company has identified five satellite prospectsto Anchois that have tie-back potential, all ofwhich have now been audited by NSAI, givingAnchois and the satellites total remainingrecoverable resources in excess of 1 Tcf. Theexcellent quality reservoirs in the Anchoisdiscovery offer the potential for high rate wellsand the consequent possibility of a low-costdevelopment. The combination of excellentcommercial contractual terms, high domestic gasprices and growing energy demand mean theAnchois discovery offers the potential for amaterial, high-value project. Furthermore, thelow risk prospect inventory offers running roomfor additional, low-cost tie-back opportunities.

An additional five prospects have been identifiedin Lixus in similar geological settings as Anchoisbut are currently without the appropriatelyconditioned 3D seismic data to confirmcomparable anomalous seismic signature. Thecompany estimates these prospects to have grossbest estimate prospective resources ranging from66 Bcf to 330 Bcf. Seismic reprocessing will beundertaken to reduce the risk for these additional

prospects after which a CPR is to be conductedon these prospects. Chariot is also evaluatingleads identified in the section below the Nappe,which has the potential for giant scale prospectiveresources.

The initial license commitment, for which thecompany is fully funded, includes a technicalprogram of 3D seismic reprocessing andevaluation to access the additional explorationpotential of Lixus. Chariot will also furtherevaluate the gas market, test development conceptsand seek strategic partnerships and alliances toprogress towards a development of the Anchoisdiscovery.

ENI and Total Pick UpAcreage in Cote d’IvoireE&P firms ENI and Total have picked up acreagein Cote d’Ivoire. Government spokesman SidiToure told journalists that the government hadawarded four new offshore oil and gas blocks,two went to Total and two to ENI.

“The government adopted a communicationregarding talks on four contracts to shareproduction with companies Total and ENI,” Touretold journalists.

Total will operate offshore blocks CI-705 andCI-706, with an investment of roughly $90 millionduring the exploration period. ENI scored accessto blocks CI-501 and CI-504 and will invest about$95 million in the first exploration period.

The country’s state-run oil and gas firm, PetrociHolding, will hold a 10% stake in each of theblocks, Toure said.

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DOWNSTREAM NEWS

New LNG SPA forMozambique LNG1 CompanyAnadarko Petroleum revealed that theMozambique LNG1 Company, the jointly ownedsales entity of the Mozambique Area 1 co-venturers, has signed a Sale and PurchaseAgreement (SPA) with JERA and CPC Corp. TheSPA calls for the delivered ex-ship supply of 1.6mtpa for a base term of 17 years from thecommercial start date.

Mozambique LNG’s portfolio of long-term salesnow includes four of the top five LNG importingmarkets in the world.

Anadarko is developing Mozambique’s firstonshore LNG facility consisting of two initialLNG trains with a total nameplate capacity of12.88 MTPA to support the development of theGolfinho/Atum field located entirely withinOffshore Area 1.

NPDC to Unveil New LPG FacilityNigeria’s state-run oil and gas firm, NNPC, willunveil the largest LPG and propane storage anddispensing facility in Oredo, Benin City. Companyspokesman, Ndu Ughamadu, speaking in Abujaon May 19 said NNPC’s subsidiary, NPDC, wouldunveil the facility as part of its efforts to fast trackthe use of LPG in the domestic market.

“The facility, which is an extension of theIntegrated Gas Handling Facility (IGHF) plant,has the capacity to dispense 330 tonnes of LPGand 300 tonnes of propane daily, in addition tothe 100 Mmscf/d and 260 bpd of condensate fromthe IGHF plant,” he said.

Ughamadu noted that the managing director ofNPDC, Yusuf Matashi, said the IGHF would bea game changer for the National Oil Company,as both facilities (IGHF & LPG bay) whencommissioned, would be a huge revenue streamfor the government.

“Before the end of 2019 NPDC would beproducing 40% of the nation’s LPG requirements,”he quoted Matashi as saying.

Currently NPDC is the single largest supplier ofgas to the domestic market with about 90% ofgas supply targeted at power generation to drivethe nation’s economy positively.

Santos Reaches Milestonein Expansion of PNG LNGSantos reached an important milestone towardsthe expansion of the PNG LNG plant by signinga binding LoI to acquire a 14.3% interest

(pre-government back-in) in Petroleum RetentionLicense 3 (PRL 3), which contains the P’nyangnatural gas field in Papua New Guinea.

The PRL 3 participants propose to undertake thedevelopment of the P’nyang field in coordinationwith the participants in the PNG LNG Project toleverage the advantages available with the existinginfrastructure.

Under the binding letter of intent, the parties haveagreed for Santos to pay $187 million in total forthe 14.3% interest, approximately $120 millionof it is due following the execution of a fully-termed sale and purchase agreement. Theremainder of the contingent installments issubject to the award of a production developmentlicense to replace PRL 3 and the FID for theconstruction of an additional LNG train at thePNG LNG plant site for the liquefaction of gasfrom the P’nyang field.

The execution of a sale and purchase agreementremains subject to agreement between the partieson entry into FEED for PNG LNG plantexpansion.

Santos Managing Director and Chief ExecutiveOfficer Kevin Gallagher said Santos’ strategy inPNG is to work with its partners to align interests,and support and participate in backfill andexpansion opportunities at PNG LNG.

Trans Forcados Upin Smoke, Remains ClosedShell’s Trans Forcados pipeline in Nigeria remainsclosed after a fire broke out on the line, accordingto the company. While the line remains closed,Shell has yet to declare a force majeure.

The fire occurred at a spill site along the pipelinewithin the Chanomi Creek in the Yeye community.The pipeline is the major trunk line within theForcados pipeline system, which is the secondlargest network in the Niger Delta and transportsoil, water and associated gas from fields in thewestern delta to the Forcados oil terminal, whichhas an oil export capacity of 400,000 bpd.

Shell manages the crude export terminal, whileHeritage Energy operates the pipeline.

Kenya to Export FirstCrude Shipment in JuneKenya is expected to export its first shipment ofcrude sometime in June, according to the EastAfrican country’s Petroleum Cabinet SecretaryJohn Munyes. Munyes said so far Tullow Oil hastransported 87,000 barrels of crude oil from

Lokichar to Mombasa’s Kenya Oil RefineriesLtd. tanks for storage.

The country will only be able to make itsfirst crude oil shipment after hitting the200,000-barrel mark.

While speaking at the official opening of the 9th

East Africa Petroleum Conference in Mombasa,Munyes said Kenya is poised to become a hugecrude oil exporter.

“By June this year, we hope the oil that we havebeen trucking from Lokichar to Mombasa willhit the 200,000 barrels. We’ll have the 200,000barrels getting into vessel, ready for shipment,”said Munyes.

Rwanda Increases LPG Storage CapacityRwanda has increased its LPG storage and fillingcapacity. Thanks to an investment by SP PetrolRwanda, the country has seen its LPG storageand filling capacity double, going from 160 m3

to 320 m3.

SP installed eight new plants, each with acapacity of 20 m3 and capable of filling 1,000bottles a day.

This comes in response to the country’s growingdemand, which has tripled just in the last twoyears. In 2016 the amount of LPG imported intoRwanda was just over five million kilograms,however, by 2018 that number had risen to morethan 18.2 million kilograms.

The increase in this demand is attributed to theRwandan government’s policy to reduce theamount of charcoal used in the country.Measures are being taken in this direction,including the establishment of a strategicreserve in the event of a possible shortage orincrease in prices.

Seplat Takes FID on PipelineDr. Ambrosie Orjiako, chairman of SeplatPetroleum, revealed that the company’s boardhad taken the FID for the ANOH and Amukpeto Escravos alternate export pipeline in Nigeria.Addressing journalists at the firm’s yearlygeneral meeting he said: “As you are aware, ourresults from the previous two years werecharacterized by the extended period of force

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majeure at the Forcados Terminal from February2016 to June 2017.

“As we enter 2019, our reliable production base,low unit cost of production and discretion overcapital commitments will allow the business toremain highly free cash flow generative andprofitable. In the absence of any major interruptionor force majeure event, this will enable Seplat tohonor its dividend policy and provide an attractiveyield to our shareholders in addition to thepotential for capital appreciation.”

Orjiako added that the company will selectivelyinvest in low-risk oil production drillingopportunities within the existing portfolio andcontinue the expansion of its gas business, with2019 set to be the year that activity intensifies atthe large scale Assa-North and Ohaji-South(ANOH) gas and condensate development.

Uganda to Pay HigherTariff for Crude ExportsUganda, in a bid to boost its crude oil exportsonce production begins, announced that it willpay a higher tariff to use the pipeline planned torun through neighboring Tanzania. The pipeline,which spans 1,445 km, will take crude fromUganda’s Lake Albert region to the coast ofTanzania at the Port of Tanga.

The government was initially set to pay a tariffof $12.20 per barrel of crude shipped through thepipeline. However, following negotiations withinvestors it was agreed that the tariff would beincreased to $12.77 per barrel.

The Ugandan fields are jointly owned by Total,CNOOC and Tullow Oil. At a cost of $3.5 billion,approximately two-thirds of the project’s costwill be debt-financed jointly by a Ugandan unitof Standard Bank Group and Japan’s SumitomoMitsui Banking Corp.

Rovuma LNG Gets Go AheadMozambique Rovuma Venture saw thegovernment of Mozambique approve itsdevelopment plan for the Rovuma LNG project.The project will produce feedstock for an LNGdevelopment from three reservoirs located in theArea 4 block offshore Mozambique, two of whichstraddle the boundary with neighboring Area 1.

“The development plan approval marks anothersignificant step toward a final investment decisionlater this year,” said Liam Mallon, president ofExxonMobil Upstream Oil & Gas Company. “Wewill continue to work with the government tomaximize the long-term benefits this project willbring to the people of Mozambique.”

The Rovuma LNG project will work to build thelocal workforce through focused recruitment andskills development. “This is the third developmentplan approved in this five-year period to enablethe sustainable development of the huge naturalgas reserves discovered in the Rovuma basinand represents the government’s commitment toensure the implementation of projects that willdrive the development of Mozambique,” saidMinister of Mineral Resources and Energy ErnestoElias Max Tonela.

“We want Mozambican entrepreneurs andMozambicans to be the main beneficiaries of thevarious business opportunities made available bythe multinationals because we believe that thesecompanies should grow with the nationalbusinesses and with Mozambique,” added Tonela.

The marketing effort for the LNG produced fromthe Rovuma LNG project is jointly led byExxonMobil and ENI. Sales and purchaseagreements for 100% of the LNG capacity fortrains 1 and 2 have been submitted to thegovernment of Mozambique for approval, whichtogether will produce more than 15 million tonsof LNG per year.

“The expected production from the Area 4 blockwill generate substantial benefits for Mozambiqueand the Area 4 partners,” said Alessandro Puliti,ENI’s chief development, operations & technologyofficer. “The development plan details ourcommitment to train, build and employ a localworkforce and make gas available in support ofMozambique’s industrialization.”

The Rovuma LNG partners have developed aseries of plans to support community developmentin line with the government’s priorities. Duringthe production phase, the Rovuma LNG projectexpects to provide up to 17,000 tons of LPG peryear in Mozambique from Area 4 resources,which is currently about 50% of the country’sLPG imports, and will dramatically improveaccess to energy. The Area 4 partners also planto distribute up to 5,000 LPG burners and cookingstoves in the Afungi area to replace the burningof wood.

ExxonMobil will lead construction andoperation of natural gas liquefaction andrelated facilities on behalf of MRV, and ENIwill lead construction and operation ofupstream facilities.

AIM Wins Braefoot Bay Terminal JobAsset Integrity Maintenance (AIM) was awardeda major contract by ExxonMobil to aid in theextension of the life of the US supermajor’s jetty

facility at Braefoot Bay Marine Terminal in Fife.The tanker terminal exports LPG to Europe andthe US after being produced at the Fife EthylenePlant (FEP) using feedstock from developmentsin the North Sea.

A team of six specialists from AIM have startedworking at the 233-meter long jetty for the firstphase of a major upgrade program. This phasealone represents an investment of some 3,000man-hours. As part of the work, they will be usinga cutting-edge temporary access structure, whichwill be suspended below the jetty and enclosesthe work area to ensure no environmental impactto the Firth of Forth below.

The project represents the beginning of a majorinvestment in the jetty, which handles shippingof ethylene from FEP to ports in mainland Europe.AIM’s scope of work will focus on therefurbishment, repair and protection of the jetty’ssteelwork coating and will use abrasive materialsand a vapour blasting technique that areenvironmentally friendly.

Sonangol AwardsRefined Products TenderSonangol awarded its refined products buy tenderfor the next 12 months to Total and Trafigura.Total will supply Angola with gasoline whileTrafigura will supply diesel and marine diesel.

The news of the tender comes on the back ofAngola facing one of its worst fuel shortages inyears. Sonangol blamed the shortage on difficultiesaccessing hard currency as well as unpaid debtsowed to the energy company by industrial clients.

Algerian Gas Exports Down in 2018Sonatrach, Algeria’s state-run oil and gas firm,reported that the North African country’s naturalgas exports for 2018 were down compared to itstotals in 2017.

According to the company, Algeria exported 51.5Bcm of gas in 2018, down from 54 Bcm in 2017.Of the total exported last year, 75% was throughpipelines and 25% via LNG shipments, Sonatrachsaid in a statement.

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NEW PRODUCTS & SERVICES

ULO Systems, a wholly-owned privatecompany and provider of services within theoil and gas, renewable offshore wind andconstruction industries, has unveiled the latestaddition to its fleet of proprietary groutingequipment – the new-generation recirculatingjet mixer (RJM) and high-capacity pump.

In trials, ULO Systems’ RJM achieved amixing and pumping capacity of up to120 m³ per hour, an output 400 percent higherthan traditional RJMs, enabling groutingworks to be completed 75 percent faster.ULO Systems designed and developed theRJM to meet the requirements of the oil andgas, construction and renewables sectors forthe execution of specialized grouting projectsin challenging offshore environments. Duringthe concept design, selection of components,system integration, assembly, fabrication andtesting, ULO Systems placed an emphasison output for faster execution andsustainability for a wide range of products.Colin Reilly, General Manager at ULOSystems, explained: “ULO Systems has alsointroduced a new pump to complement the

RJM, to further optimize results. Clients areable to choose two variations – a singlepump or double pump set up on a singleDNV 2.7-1-certified 6M ISO skid.

“The single pump providesthree times the capacity ofindustry-standard pumps,and a double pumpperforms at four times thecapacity. Additionally, twinsurge tanks, which can befilled from two silossimultaneously, feedcement at a higher rate.This new equipmentenables our highly-trainedpersonnel to completegrouting work at a pacenever before seen.”

The new-generation RJMcan grout and flush twoseparate annuli via its twoholding tanks and watermanifolds on one of theskids, while the second skidh o u s e s t h e p u m p s .

Additionally, the RJM features two higher-capacity recirculating jet mixers on a singleskid, facilitating higher capacities andthicker mixes. Two jets feed one mixer drum,creating a much more turbulent vortex forbetter colloidal dispersion of solids,resulting in a grout that will last as long asthe asset’s lifecycle.

ULO Systems also incorporated features intothe advanced equipment to reduce downtimeand increase reliability. In addition to thehigh-power inverters fitted to handleexcessive loading needs when workingwith higher capacities and flow, a thirdinverter has been installed as a backupin the event of failure of any of theinverters.

The new RJM and high-pressure high-capacity pump were launched recently duringa demonstration for customers, including AllSeas, Boskalis, GeoSea, Heerema, Seaway7, Van Oord and Jumbo, in Rotterdam, theNetherlands. For its first project, ULOSystems’ RJM has been deployed on theValhall Flank West Platform in the Norwegiansector of the North Sea.

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Unity, a leading provider of well integritytechnology, services and engineeringsolutions, has launched the industry’s firstmulti-functional, near-surface interventions y s t e m f o l l o w i n g a s u c c e s s f u lcommercial project for a major operator inNorthwest Africa.

In its first deployment, the SurfaceIntervention System (SIS) was mobilized offthe coast of Tunisia to set two frac sleeveson two wells. Each sleeve was successfullyset in under three hours, including rig-up andrig-down time – a significant speed comparedto the c.24-hour schedule for conventionalintervention methods.

Gary Smart, Unity CEO, said: “Unity isinvesting in technology and services that aredesigned to deliver significant benefits tothe oil and gas industry. Working closelywith our customers, we recognized a clearopportunity to develop a multi-functionalshallow intervention system which combinesheavyweight capability within a compactand mobile package. Being simple to operate,compact to ship and fast to deploy, the SISoffers cost savings of up to 75% when usedas an alternative to conventional equipment.We believe this is a ground-breakingtechnology offering rapid and streamlinedoperations which will open up new doors toimproved efficiency gains for operators.”

Wireline or coiled tubing intervention oftenrequires multiple vendors with considerablemanpower, heavy well control packages, and

a large wellsite footprint resulting insignificant cost and risk for the operator,especially offshore. While this equipment isnecessary for deeper well intervention, theSIS provides a refined and more cost-effectivesolution for shallow operations.

With the option to include an integrated wellcontrol package, the SIS can be used acrossa variety of operations including plug ortubing hanger setting, Xmas Tree removal,well inspection, milling and well-bore cleanout. Consecutive tasks can be performedduring the same deployment, with the systemoperated by just two people, increasingefficiency.

The SIS is fully compatible with industrystandard tools. This enables simple switchingbetween functions using sectional hollowrods at the wellsite. It can operate in pressuresup to 10,000psi and has a powerful hydraulicmotor, driving a push, pull and rotatefunction which can rival wirelineor coiled tubingcapability.

According to the Oil andGas Authority’s ‘Wells Insight Report 2018’,well integrity problems were the singlebiggest cause of production losses,accounting for 43% of the total 33 millionboe loss, of which 10 million boe was

due to wellhead, xmas tree and annulusfailures.

Smart added: “Near surface well integrity isextremely influential in avoiding andrecovering production losses., so we see aclear opportunity for the system’s use insafeguarding the integrity of producingwells in the UKCS and across global oil andgas regions.

“The SIS is also ideally placed to assist inthe end phase of well P&A activity throughplug setting and the removal of xmas treeand wellhead surface equipment. In addition,it can be used to carry out inspection andremedial work of the internals of the surfaceequipment and tubulars prior to removal.”

The commercial launch of the SIS marksanother significant milestone for the companysince it acquired Simmons

Edeco Europein December 2018

and changed its namefrom Well-Centric to Unity.

The deal created Europe’s largestindependent supplier of well integrityservices. Unity, alongside Well-SENSE,ClearWELL and Pragma, is part of FrontRowEnergy Technology Group, a group ofcomplementary upstream oil and gastechnology focused businesses that arebringing new solutions to market to meetindustry challenges and reduce costs.

Unity Launches First Multi-Functional ShallowIntervention System to Secure Cost Savings

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Petroleum Africa May/June 201920

NEW PRODUCTS & SERVICES

Logan Industries (Logan), a hydraulicrepair, manufacturing and rental company,has launched a new Passive HeaveCompensation Winch.

The new Passive Heave Compensation Winchsystem, a set of winches engineered to safelyprovide constant tension through the ratedrange of motion, is primarily used in subseadrilling and completion activity, butapplicable to any environment where a loadexperiences resistance to movement due tohydrodynamic drag (ROVs, PLETs, etc.).Far less complex than an active compensationsystem, the winch is electrically poweredand uses a custom-built Hydraulic PowerUnit and control set to monitor winch statusand activity.

With a design life of 20 years, the winchprovides passive compensation over a widerange of movement. Traditionally, passivecompensation is provided via hydraulic

cylinders, whose compensationrange is limited to the overallstroke of the cylinder. This newwinch greatly widens thiswindow and provides passivecompensation in a very smallfootprint.

Dean Carey, technical director,Logan, said, “We receive manyrequests for active compensationwinches, but these machines are typicallydifficult to troubleshoot and few technicianscan work on them. Alternatively, we believeadequate compensation for many tasks canbe achieved with a less complex, passivecompensation device. The difference in loadvariation between the ‘active’ and ‘passive’is usually insignificant and the trade-off inreduced complexity is definitely worth it tomost operators. The Passive HeaveCompensation Winch will ultimately reduceoperators’ costs.”

The Passive Heave Compensation Winch,which can be controlled from a LocalOperator Console, is equipped with twoindependent winch drums per Winch Skid.Each Winch Skid features an energyregeneration circuit to provide continuousheave compensation. The system is designedto operate the winches autonomously andonly requires periodic pressure monitoringand maintenance. To date, two Winch Skidswith a common power unit have beendelivered and installed on a semi-submersible.

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Wild Well Control, a Superior EnergyServices company and a leader in wellcontrol, engineering and training services,has launched a new online well controle-learning course, ‘Introduction to DrillingOperations.’s

This e-learning course meets all regulatoryguidelines and is IADC WellSharp™accredited. As an introduction to well controlfor oil and gas drilling operations, the courseis intended for operators, contractors andservice company personnel, as well as non-technical and non-industry personnel. Thecourse includes detailed visual animationsto increase students’ awareness andunderstanding of drilling and the importanceof maintaining well control at all times.

Bill Mahler, executive vice president, WildWell, said, “Over the past three years, ourWild Well team has spent thousands of hoursdeveloping a detailed, high-quality coursethat will provide lasting value for theindustry.”

Throughout the 20 animated lessons, studentswill learn about land-based and subsea topics

that wil l increase theirknowledge of drilling and wellcontrol. “The level of detail thatwe have included in the lessonsbrings the subject matter to life.As a teaching tool, the 3Dcourse animations help studentsgain a better foundation of wellcontrol concepts by illustratingcomplicated and otherwiseunseen downhole topics,” addedKen Smith, General Manager of Training atWild Well.

The quality of Wild Well’s course providesvaluable information for industry personnelto be informed and to work safely in theoffice or in the field. This course functionsas a continuing education tool for experiencedoilfield workers and as an introductory on-boarding tool for office and non-industrypersonnel.

Mark Denkowski, IADC executive vicepresident accreditation operations, said, “Thecoursework objectives were developed anddesigned by IADC member subject matterexperts to focus specifically on new

technology and operations, and theintroductory course addresses the basicfundamentals of good well control practices.As one of IADC’s trusted training providers,we are excited to see Wild Well launch theire-learning WellSharp Introductory course.”

Mahler continued, “As the leading trainingprovider of IADC-issued certifications, WildWell is committed to the continualimprovement of its well control coursecurriculums under the IADC WellSHARPprogram, and, more importantly, the qualityand experience of its certified well controlinstructors. Wild Well has invested in bothcurriculum and instructor development inorder to create the highest-quality courses.”

Wild Well Control Announces Online Introductionto Drilling Operations Course

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ach year the Offshore Technology Conference (OTC) handsout its Spotlight on New Technology awards for exhibitors,recognizing the most advanced and innovative technologies

being introduced. Here we feature a handful of OTC’s picks for 2019that Petroleum Africa found most exceptional.

NOV – Automated Pig Launcher (SAPL)NOVs Subsea Automated Pig Launcher (SAPL) solution enablesoperational pigging without vessel or ROV support during pigging.The SAPL is mounted on a subsea structure, and is loaded with pigsfrom a retrievable cassette. The cassette can house a number of pigswhich can be launched individually from shore or platform at desiredtime. Subsea pigging technology is today an essential part of offshorefield development in fields with different flow characteristics, sizes,geographies, water depth and weather conditions.

The Subsea Automated Pig Launcher (SAPL) will simplify operationsrelated to pre-commissioning and commissioning, wax control, slugcontrol and intelligent pigging (inspection).

Baker Hughes – NovaLT16This two-shaft gas turbine is designed for mechanical drive and powergeneration applications. With a power turbine speed of 7,800 rpm, itis ideally suited for pipeline compression – with direct coupling to thelatest PCL pipeline compressors featuring high performance stages and89% or higher compressor efficiency. It is full of exceptional advantagesfor any operation – including up to 99% availability. It is designed fora 35,000-hour mean time between maintenance, which translates into

four years of non-stop running for the gas generator module or eightyears for the power turbine module.

In addition to long intervals without maintenance, the NovaLT16enables extremely short intervals for maintenance activities. In fact,the modular maintenance philosophy is optimized so that a cold-condition engine can be swapped in just 24 hours. Beyond the mechanicsof the turbine itself, the complete package is designed with the ultimateperformance and support features as standard – fully equipped withintegrated monitoring and diagnostics sensors and remote tuningcapability. Control room location is up to you, while oil and startingsystems are easily accessible outside of the enclosure, making routinemaintenance safer and more ergonomic (lower noise, lower heat).

TechnipFMC – Subsea2.0™ In-Line Compact Robotic ManifoldTechnipFMC’s Subsea 2.0™ In-Line Compact Robotic Manifold hastransformed the traditional manifold design to improve subsea fielddevelopment economics. The compact manifold design reduces size,weight and manufacturing cost. It incorporates a robotic arm for valveactuation, can be installed using the same vessel laying the flowlineand increases the flexibility for CAPEX spend over the life of the field.The product is designed to be half the size and weight of its conventional

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counterpart and reduces cost and delivery up to 30%. In addition, itsproduction schedule can be compressed up to 30%, providing fastertime to first oil and return on investment.

The new compact manifold integrates all the functions of the conventionalmanifold pipe work and structure into a few cross drilled blocks withintegral valve cavities and common interfaces to bolt on the branchand header hubs. All hydraulic functions have been eliminated to furtherreduce the complexity through the use of manually operated valves.The result is a simpler manifold that can be produced with 10-timesfewer parts and requires no structure for support or lifting. Furthermore,production of manifolds now shifts from a customized project design

to a modularized, configurable product that enables true standardizationand industrialization.

XSENS Flow Solutions – XACT™Ultrasonic Clamp-On FlowmeterXSENS AS product XACT™ Ultrasonic clamp-on Flowmeter alsowon a Spotlight on New Technology Award, selected among 450 awardapplications.

XSENS AS’s game-changing XACT™ Ultrasonic clamp-on Flowmeter,provides flow rate and fraction measurement at accuracies that wereuntil now only obtainable by in-line technologies. Installation of anXACT clamp-on flowmeter does not compromise pipeline integrity.XACT’s size and weight are just a fraction of conventional flow metersystems and is ideal for retrofit applications.

FutureOn – FieldApFieldAP™ is the Industry 4.0 cloud-based application enabling digitalsubsea field planning, subsea data and asset visualization, and installationplanning for subsea projects. The platform allows you to easily integratewith other backend systems and offshore engineering software alreadyin use in your organization either for field design, field planning, oractivity scheduling.

A FieldTwin platform application, FieldAP enhances collaborationamong teams globally while reducing risk. Through digitalization,FieldAP is improving project margins and maximizing investmentreturns on existing talent.

www.petroleumafrica.com

2019 SPOTLIGHT SMALL BUSINESS WINNERSHYTORC, producer of LITHIUM SERIES® IIGreen Pin®, producer of Green Pin Tycan®

XSENS AS, producer of XACT™ Ultrasonic clamp-on Flowmeter

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2019 SPOTLIGHT WINNERSAFGlobal, producer of Active Control Device (ACD)AFGlobal, producer of DuraStim® PumpBaker Hughes, a GE company (BHGE), producer of NovaLT™16Dril-Quip Inc., producer of Double Expansion XPak™ Liner HangerFutureOn®, producer of FieldAP™ – a FieldTwin™ PlatformApplicationNOV, producer of Subsea Automated Pig Launcher (SAPL)Oceaneering International, Inc., producer of Subsea PumpingTechnologySaipem, producer of Offset Installation Equipment (OIE)Schlumberger, producer of Concert well testing live performanceOneSubsea, a Schlumberger company producer of Vx Omni SubseaMultiphase FlowmeterSIEMENS, producer of BlueVault™ Energy StorageSIEMENS, producer of Subsea Power GridStress Engineering Services, Inc., producer of Condition BasedMaintenance of Drilling Riser SystemsTechnipFMC, producer of Subsea 2.0™ In-Line Compact RoboticManifoldWeatherford, producer of TR1P™ Single-Trip Completion System

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y one account, the Digital Oilfield global market is forecastedto grow from $20.10 billion in 2016 to $27.10 billion by2022. Value is expected to be realized from enhanced

production, workflow process optimization and significant reductionsin unplanned downtime.

Much has been written regarding opportunities for value, including bythis author. In the June 2018 edition of this publication, our articleSystem of Systems Asset Lifecycle Performance: The Internet of ThingsMeets Augmented Reality articulates four areas of value that operatorscan realize from digitalization:

Digital Platform – Potentially enabling innovation exponentiallyfaster at one tenth the cost

IT – OT Convergence Across Ecosystems – Up to 25% increasein automation and productivity

Predictive Analytics – Potential for 30% improvement in assetavailability and process optimization

Augmented Reality – 30% to 50% improvement in human efficiency

These numbers are staggering and the potential enormous. The energysector is struggling with a long-term low commodity trading range anddisruptive changes with its workforce as well as societal pressures, akaSafety, Green, etc. Successful implementations of Digital Oilfields(including cyber security) is imperative. This may be the differencebetween strong Balance Sheet supported by good margins and theorganization’s demise.

However, many digitalization initiatives do not deliver expected returns.There are many reasons for these failures including poor projectmanagement and unrealistic goals coupled with poor metrics, etc.

The consulting firm McKinsey writes, “Most digital strategies don’treflect how digital is changing economic fundamentals, industrydynamics, or what it means to compete.” In other words, this is acultural metamorphosis – very different from the ERP rollouts ofthe past.

Cultural TransformationChange management initiatives fail at similar frequencies as IT projects.Often the two are tied together as management seeks to use new toolsenabling the long-sought value believed available.

Many transformational efforts are actually simple change management.One can argue that the adoption of a new technology may only bechanging the way we interface with a machine.

A case in the recent news. Sears Roebuck is the original Amazon.Readers received a catalog of goods, made their selection and mailedtheir order and payment. Sometime later, the package would be shippedand received.

Essentially, this is the same business model used by Amazon today.Work processes are faster and their organizational cost structure lower;however, the fundamentals are basically the same.

So why did Sears fail? Why did IBM lose the PC operating system toMicrosoft? The list goes on as all economic actors have access to thesame technologies, yet some are winners and others, losers. Managementmisses the point when it attempts to change the way we do businessfrom only a process perspective.

An organization’s culture can be defined as, its “Who We Are.” Theculture must be transformed as well.

Culture is a set of shared values and beliefs often evolving over manydecades or even longer. As such it has a certain level of resiliency ortendency to ‘snap back’ to its stable state.

Cultural transformation changes the ‘Who We Are’ part ofthe equation

So, what is a Digital Oilfield Culture?An environment where humans oversee the digitalized enterprise isdifferent from one where humans make decisions from data andinformation generated by machines. There are no instances of a fullupstream digitalized ecosystem at present. However, there are businessmodels that are appropriate to adopt for this new era.

High Reliability Management has been widely adopted by criticalinfrastructure sectors such as medicine. That sector defines these fiveHRM principles for providing world class health care:

Preoccupation with Failure – Good judgment is critical to providepatients with the best care and absent-mindedness can lead to death

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The Digital Oilfield CultureTransformational Value for the Organizational EcosystemThe Digital Oilfield Culture

Transformational Value for the Organizational Ecosystem

By Scott M. Shemwell, D.B.A.Managing DirectorThe Rapid Response Institute

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Reluctance to Simplify – Understand that organizations and processesare complex and be careful not to over generalize as patient healthdepends on these capabilities

Sensitivity to Operations – Focus on understanding the rationalebehind policies and protocols and look for ways to improve performancein healthcare delivery

Commitment to Resilience – Respond to setbacks and considerthem opportunities for improvement in patient care

Deference to Expertise – Contribute evidence-based expertise whenyou can and defer to those whose knowledge is greater as necessaryfor the best patient care

One example of HRM in healthcare is the Ebola crisis of 2014. Readersmay recall that there was fear of a pandemic in the USA following thearrival in Dallas, Texas of an individual from Liberia. The pandemicnever happened and in this writer’s opinion, that sector followed thesefive principles and contained the outbreak.

HRM requires a robust organizational governance model. We havecoined the term Strong Bond Governance to define the role of seniorexecutives and the Board of Directors in the critical infrastructuresectors required by High Reliability Organizations.

The upstream sector has been slow to adopt HRM. However, theseprinciples are well suited for an organizational ecosystem where itsmembers depend on digitalization to enhance their Bottom Lines.Markets are competitive with little expectation of help from highercommodity prices.

We have previously defined a Safety Culture and adapt that definitionas follows for the Digital Oilfield Culture.

Internalizing the New CultureMissing in most discussions about the Digital Oilfield is how do yousell it to employees, customers, suppliers and other stakeholders.Management must answer the “What’s in it for Me” question!

From a marketing perspective, creating and sustaining Digital OilfieldCulture is all about branding. A branding strategy provides anorganization with a sustainable competitive advantage that differentiatesthe organization from its competitors. This is exactly how most seetheir organization’s culture.

As part of a branding strategy, organizationsoften develop a Brand Wheel. Its constructis very straightforward and encapsulatesboth the hard ‘Fact” side as well as the moreemotional “Personality” of the product orsolution. The process of going through thisprocedure is usually best done through aseries of workshops.

Input can come from focus groups and/orother input from end users, employees,management, the public, regulatory agenciesand other stakeholders. We define theseindividuals as ‘ME.’ It is important to

understand that the constituents are people and not their organizations– people buy from people!

Around the core “Brand Promise” (Digital Oilfield Culture) readerswill find answers to four questions:Facts & Symbols• What the Product (or Solution) does for ME• How I would Describe the Product (or Solution)Brand Personality• How the Brand makes ME look• How the Brand makes ME feel

For example, BMW brands their automobiles as, “The Ultimate DrivingMachine.” This answers the question, “What’s in it for Me” very clearly.A Digital Oilfield Culture must be this understandable for itsstakeholders as well.

The following figure depicts this approach towards branding the DigitalOilfield. It addresses all needs of participants in the ecosystem. Interestedreaders are invited to customize it to their situation.

Space precludes a detailed review of the components named below butall of them are discussed herein. While it may appear to be complex,working through the process is straightforward. Moreover, developingthe construct is interactive but when the first version is finalized, itwill set the stage for a successful transformation.

This model helps management assure that stakeholders ‘Buy In’ to thenew culture, thus removing the ‘Snap Back’ resiliency. Since mostchange management models do not include this process, successbecomes fleeting. It is worth the time and energy required to completethe exercise.

Implementation GuidelinesThe Digital Oilfield is all about the relationship individuals in theecosystem have with each other and the technology automating fieldoperations, among other tasks. However, a new or different Relationshipis dependent on changing Behaviors and situational Conditions.

Human relationships are a function of the environment one findsthemselves in and the behaviors of others in that environment. For a

Digital Oilfield, management needs tounderstand that humans will also havenew/different behaviors with machines.

Conditions will be different when digitaldecisions are made independent of humanoperators. No amount of changemanagement processes will be effectiveunless organizations understand and trainpersonnel for their new behaviors in thisnew condition or environment.

This R B C construct must overlay anyimplementation approach. Failure tounderstand these dynamics will most likelynegatively impact the initiative.

www.petroleumafrica.com

Systemic Digital Oilfield Culture canbe defined as the Core Set of Valuesand Behavioral Economics of ALL

participants of the extended organizationand its Enterprise Risk Managementstrategy that reflect a Strong Bond

Governance commitment to behavingas a High Reliability Enterprise

Ecosystem in a Safe andEnvironmentally responsible manner.

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MONTHLY FOCUS

Most importantly when individuals interact with digital devices andprocesses, Human Factors need to be addressed. In the Digital Oilfieldcontext, this is defined as how humans behave physically andpsychologically in relation to particular conditions, digital tools, orprocesses. If this issue is not actively adopted, Digital Oilfield culturaltransformation may be sub optimal.

Knowledge, Skills, AbilitiesAn automobile with an automatic transmission is easier to drive thanone with a standard transmission. Moreover, today’s drivers assimilateand process information while rapidly navigating crowed highways.Yet the automobile has not materially changed in 100 years other thanthe continued advancement of conveniences and safety devices.

Most likely, a driver from the era of the Model T would have troubledealing with the everyday driving all of us face. As the industry becomesdigital, Digital Oilfield individuals’ KSAs will need to evolve as well.Those on a technical track will need to stay current. Those inmanagement will need to understand new work processes andtechnologies very well. This includes top management – StrongBond Governance.

One example; humans will need to understand when a highly automatedprocess must be interrupted manually, i.e., taking control from adriverless automobile. What if he or she is mistaken in that decision?As with the Safety Culture Tenant quoted below, there needs to be nonegative repercussions for honest mistakes. “A work environment ismaintained where personnel feel free to raise safety and

environmental concerns without fear of retaliation, intimidation,harassment, or discrimination.”

Overseeing the automated and complex processes of digitalizationrequires additional KSAs from those used to manage today’s processcontrol systems – HRM is a better construct. Individuals will still drivethe Digital Oilfield automobile, but it may then be the ultimatedriving machine!

Final CommentsTo put things in perspective, if the Digital Oilfield market forecast iscorrect, in 2022 the upstream sector will spend almost as much asConocoPhillips’ 2017 revenue or approximately 10% of ExxonMobil’sin that period. Troubling; by some accounts more than 70% of ITprojects are perceived as failures.

While the promises of the Digital Oilfield are attractive, history suggeststhat unless something changes rather dramatically, the destruction ofshareholder value may approach appalling levels. Certainly, the promisedgreater Earnings Per Share (EPS) and Competitive Advantage willnot materialize.

The approach towards cultural transformation described herein willhelp assure every individual in the ecosystem will have a good ‘What’sin it for Me’ experience. This will then be reflected in a strong, sustainedDigital Oilfield organization culture – Who We Are.

In an era of low commodity price points the organization’s culture iskey to not just thriving, but surviving. Management owes all stakeholders(include employees every step of their careers) no less than successfultransformations to this business model and new ones that willundoubtably be forthcoming. As the saying goes, “the only constantis change.”

About the AuthorDr. Scott M. Shemwell, Managing Director of The Rapid ResponseInstitute is an acknowledged authority and thought leader in fieldoperations and risk management. He has over 30 years in the energysector leading turnaround and transformation processes for globalS&P 500 organizations as well as start-up and professional servicefirms. He had been directly involved in over $5 billion in acquisitionand divestitures as well as the management of significant projects andbusiness units. He is the author of six books and for over a decade, heand his firm have helped clients adapt to the dramatic changes impactingglobal energy and heavy industry sectors. www.theRRinstitute.com

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he era of fossil fuels, far from being over, is starting a newchapter, especially after the recovery in crude oil prices inrecent years. According to most forecasts, fuel demand shall

peakin 2030, only then starting to decrease. Experts agree that, whetherone likes it or not, petroleum will remain the world’s main energysource for the next half century. In fact, demand is expected to risefrom 79 million bpd in 2003 to 121 million bpd in 2025. In order tomeet such demand, global crude oil refining capacity is expected toincrease at an average annual growth rate of 4% from 102,603 mbpdin 2018 to 125,163 mbpd in 2023.

Although Asia is expected to lead the global refining industry between2019 and 2023, both in terms of capacity and capital expenditure, theAfrican continent has shown signs of a significant boom in thedownstream sector in many countries. Major greenfield projects wereannounced in Nigeria and Uganda, while Angola is investing in theimprovement of existing facilities and the development of new units,and Algeria’s strategy for growth includes the acquisition of a refiningunit abroad.

Angola – João Lourenço’s ‘RegenerationProgram’ boosts the downstream sectorAlmost immediately after taking office, President João Lourençoannounced his intention to make Angola’s hydrocarbon sector morecompetitive and self-sufficient.

In addition to a major reform in the upstream sector, which includedthe replacement of the State-owned company, Sonangol EP, as thenational concessionaire for the petroleum sector by the recently createdNational Oil, Gas and Biofuels Agency and significant simplificationmeasures for tender procedures in the petroleum industry, PresidentJoão Lourenço also decided to reorganize the downstream sector,focusing on the reactivation of dormant projects. A new legal frameworkapplicable to refining activities, concluded in 2017 with the enactmentof a new statute on technical and procedural rules for the design,construction, operation and maintenance of refineries, also eased theway for local and international players seeking to invest in the sector.

The Lobito refinery project, which had been suspended in 2016 by theformer Chairman of Sonangol, allegedly to reevaluate the scope of theworks considering the fall in international oil prices, was re-launchedin 2017 with an open international tender.

Private investors responded enthusiastically to this opportunity. Theinternational tender for the construction of the Lobito facility registereda massive participation, with a total of 16 proposals selected by Sonangolin the first phase, seven of which were pre-selected. The award of theproject has not been officially announced yet, but the refinery is expectedto be completed by 2025. Once it starts operating, the Lobito Refineryshould be processing around 200,000 bpd of crude oil.

The tender for the construction of a new unit in Cabinda, launched in2017, is also on the horizon. Of the nearly 70 proposals initiallysubmitted by national and foreign companies, seven entities wereselected and subject to additional evaluation and due diligenceprocedures. Sonangol’s board of directors announced in 2018 the awardof the construction of the Cabinda refinery to the United Shineconsortium, the members of which are yet to be disclosed. Negotiationswith the consortium members are underway and expected to be concludedin the first half of 2019. The new refinery will have a processingcapacity of approximately 60,000 bpd and completion is expected bythe end of 2021.

A third project that has long been in the Government’s pipeline is theoptimization and expansion of the only existing refinery in Angola, theLuanda refinery. After the recent award of the project to Italian oilmajor ENI, it is expected that, after conclusion of the work in 2021,the refinery will increase by four times its current capacity and thereby dramatically reduce the country’s continued dependence on importedrefined products. The improved Luanda refinery will increase gasolineoutput to 1,200 daily tons, against the current 300 tons.

Nigeria– the largest refinery in AfricaNigeria, the largest crude oil producer in Africa, is now half-waythrough the implementation of the country’s first privately owned

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Top RefiningProjects in Africa

By Rosário Paixão and Nuria BrinkmannMiranda Law Firm

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refinery and the world’s largest single-train refinery. The controversialplan by cement magnate Aliko Dangote to turn Nigeria into a massivefuel exporter seems to be back on track after taking into considerationimportant criticisms and having to change the project’s location.

Even though the ‘Giant of Africa’ has been topping the ranks of Africanpetroleum and fuel producing countries, with a crude oil productionof 1,999,885 bpd and a refining capacity of 445,000 bpd, fluctuationshave always been significant, not only in the downstream but especiallyin the upstream sector. In recent years, violent attacks by local militantgroups, many times blowing up pipelines and kidnapping foreign oilworkers as a protest against poverty and environmental pollution,resulted in many operations having to be interrupted or even abandonedbecause of lack of security.

At the same time, although Nigeria has a considerable potential refiningcapacity which, if effective, would exceed domestic demand and allowfor exports to neighboring countries, the State-owned Nigerian NationalPetroleum Corporation (NNPC)continues to import the bulk of thecountry’s refined products’ consumption. This is a consequence of thenational refineries traditionally operating way below their fullestcapacity, mostly due to sabotage, lack of maintenance for over 20 yearsand technical failures. The Minister of Petroleum recently explainedthat Nigeria’s four refineries in Port Harcourt, Warri and Kaduna hadstill not concluded repair works, more than four years after their originalconstructors completed the technical assessments on the facilities,because it was concluded that most of the units were simply obsoleteand could either hardly produce again or effectively increase theircurrent production.

Fixing the decrepit existing refineries seems to be a never-endingchallenge that has already cost Nigerian a fortune. Although plans torevamp the current units have not been entirely set aside, the Government

is now more interested in planning the country’s first green field projectin more than 30 years, by supporting the construction of the Dangoterefinery. Aliko Dangote had already announced his plans to enter andcause a major change in the refining industry in 2016. Back then, hewas already considered the richest man in Africa, his net worth beingestimated at $11.2 billion. The lack of expertise in the sector – Mr.Dangote’s fortune was mainly made in the cement and food industries– did not stop him from entering into this extremely ambitious $14billion project, presumably to be financed, more than 60%, by hiscompany Dangote Industries Ltd.

While Mr. Dangote hopes the refinery could be producing annually10.4 million tons of gasoline, 4.6 million tons of diesel and 4 milliontons of jet fuel by 2020, most experts seem to suggest this may nothappen before 2022.

The Dangote complex will also include a 3-million metric ton/yearfertilizer factory and a petrochemical plant. The unit will be poweredby gas, which will be piped from the Niger delta via two 550-kilometerunderwater pipelines.

This should result in the Dangote project being able to supply fertilizer,kerosene and gasoline to the entire Nigerian population and still haveplenty of products to export to neighboring countries, bringing inimportant foreign exchange reserves.

Uganda – a late but big entryinto oil production and refiningUganda first hit oil in late 2000, although production operations havebeen successively delayed since the Government failed to reach anagreement with the potential operators, namely regarding tax andstrategic matters.

The country expects to be able to start commercial production of crudeoil in 2022, two years after the initial target announced for 2020. Oilwill be produced by France’s Total SA, China’s CNOOC, and Irishfirm Tullow Oil Plc.

At the same time, Uganda is aiming to refine petroleum domesticallyin order to reduce importation of oil products. By mid-2018 Ugandahad already signed a framework agreement with a consortium, led byGeneral Electric, to build and operate a 60,000 bpd refinery that isexpected to be fully operational by 2023.

Algeria – political and economic changes give riseto investment opportunities in the downstream sectorDespite overcoming the Arab Spring’s revolutionary movements,Algeria’s President Abdelaziz Bouteflika could not avoid his healthissues and the increasing need of change that the Algerian populationwas protesting for in the streets of Algiers. After two decades in office,Algeria’s longest-serving President recently announced his resignation.

The North African country is now facing considerable political andeconomic changes, which could entail significant opportunities forattentive investors. Hydrocarbons have long been the backbone ofAlgeria’s economy, accounting for almost 60% of State budget

Hydrocracking unit bound for Dangote Refinery

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revenues. With 12.2 billion barrels, the country ranks sixteenth inproven oil reserves, a large part of this potential still being unexplored.To attract additional foreign investment to the area, a new and muchanticipated hydrocarbons law was recently announced, a first draft ofwhich, according to publicly available information, should now beunder analysis. The amendments are expected to include taxincentives, a bigger variety of contracts and the alleviation ofadministrative procedures to improve the attractiveness of the sectorto international players.

Both the upstream and the downstream sectors of the national oilindustry are essentially owned by the State. The national oil company,Sonatrach, owns roughly 80% of total hydrocarbon production andNaftec, a subsidiary of Sonatrach, operates Algeria’s four currentrefineries: Skikda, Hassi Messaoud, Algiers and Arzew.

Despite the four refineries’ combined capacity being 450,000 bpd,domestic consumption still outstrips supply (currently, Algeria importsapproximately around 2.9 million tonnes of gasoline and diesel annually).In order to balance out its product demand within the next 10-15 years,Algeria is putting in place a series of major reforms to the oil sector,including the new Sonatrach strategy (SH 2030), which is a combinationof measures aiming at facilitating foreign investment, revitalizing thedownstream sector and developing Algeria’s shale gas deposits.

Several measures had already been announced by Sonatrach back in2012, including a five-green field-facilities downstream developmentprogram. Two of the new refinery projects (Hassi Messaoud – near thecountry’s biggest oilfield – and Tiaret) have already reached thetender phase.

Algeria also launched a modernization plan of the existing refineriesmore than a decade ago. Skikda’s refinery upgrading works werecompleted, although the unit is still not working at its full capacity.The upgrade of the Sidi R’cine refinery was recently completed, andthe unit inaugurated in February 2019. Sidi R’cine is the result ofrehabilitation and expansion work on the pre-existing Algiers refinery.The project was awarded in 2016 to China Petroleum Engineering andConstruction Corporation, a subsidiary of China National PetroleumCorporation, and increased the refinery’s capacity from 59,000 bpd to79,000 bpd.

Finally, Sonatrach has recently announced the acquisition ofExxonMobil’s Augusta refinery in Sicily, a 10-million-ton capacityfacility, and three oil terminals in Italy. Plans to buy other refineries

overseas have not been set aside if the opportunity arises. Accordingto Sonatrach’s CEO, with the refineries of Augusta, Sidi R'cine andHassi Messaoud, domestic production would largely meet the country’sneeds and allow exports of refined products, turning Algeria into oneof the few self-sufficient countries in terms of fuel balance.

Refining gap – an opportunity for investorsThe so-called African refining gap has been a hot topic for years nowamong experts, stakeholders and policymakers in most African countries.The fact that many major petroleum producers are still importing alarge share of refined products to meet their populations’ needs is aparadox that weights heavy on the respective States’ budgets and thaturges immediate and effective solutions.

Although prospects for green power are on almost all African agendas,the truth is that electricity and transportation in the region will continueto be based on fuel for the coming years. Demand for fuel will growrapidly, thereby increasing pressure to increase domestic productionand to improve the quality of refined products. Since refining facilitiesin almost all African countries are obsolete, inefficient or simply scarce,these countries are now facing the great challenge of building newrefining facilities and upgrading the existing ones. Projects are beingpushed aggressively by local governments since the need to revert thecurrent trend of exporting crude oil and importing refined products tomeet the domestic demand is enormous.

Emmanuel Ibe Kachikwu, the Nigerian Minister of State for PetroleumResources and former Chairman of NNPC recently gave a speechwhich very much reflects this trend: “We are very much committed torepairing what we call the existing Big Four which are the four refinerieswe have located in Port-Harcourt, Kaduna and Warri. If everybody hadran at the speed that I wanted to run, we should have that up and runningquite frankly all done and functioning by 2019. Not for election purposes,but for the fact that it will be such a sad day for this country if at theend of 2019, we’re still hopping around the world trying to importproduct. It costs us a lot of money, it’s waste of vital foreign exchangethat we shouldn’t pay and it deprives our people of good jobs at hand.We need to hurry up that process.”

The same applies to Angola, where the intention to move on to a newera in the refining sector was made very clear with the enactment ofthe most recent legislation, to Uganda, a country that is only nowentering the refining industry but already has big plans, and to Algeria,where the sector is undergoing a major modernization phase.

Notwithstanding the challenging singularities of African countries ingeneral and the refining sector in particular, these developments aregood news for foreign investors wishing to make the most of themomentum and leaving their mark in the process of overcoming thechronic refining gap that these countries have faced for decades.*Rosário Paixão and Nuria Brinkmann are respectively a PrincipalAssociate and an Associate at Miranda’s Energy and Natural ResourcesPractice and are involved in advising oil and gas companies intheir operations in Lusophone Africa. Rosário and Nuria maybe contacted at [email protected] [email protected].

Algerian refining sector has seen some rehab

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aunched in 2013, the Worley Parsons Enterprise SupplierDevelopment (now Worley Enterprise Supplier Development)initiative supports meaningful transformation of the southern

Africa economy by providing tangible opportunities for small businessesto prosper and expand. As the initiative matures, the list of successfulpartnerships continues to grow, highlighting the critical role businessesplay in driving inclusivity and sustainability within the environmentsin which they operate.

Gladwin Mfolo, Worley Senior ProjectManager, says that in South Africa,transformation is often driven bycompliance considerations rather thanbeing viewed as a catalyst to address thecountry’s socio-economic challenges ofinequality, unemployment and poverty.

“There are hundreds of developmentincubators in South Africa but not all

have social development programs aligned with the company’s businessstrategy,” says Mfolo.

He believes that a corporate transformation strategy is fundamental toany social development programme, not only to maintain anorganisation’s relevance in a changing economic and businessenvironment, but also to ensure benefit to all.

“The Worley ESD initiative is one of the corporate social responsibilityprograms in South Africa with real success stories that attest to howpositive transformation can happen,” says Mfolo, citing GridbowEngineering and Technical Services as one such example.

This award-winning electrical engineering company specializes inenergy audits, generator installations, and UPS services, and is now analumni partner company in the Worley ESD program. Enterprise alumnipartners are companies that have graduated from the Worley ESDprogram and continue to work closely with Worley in pursuing workand executing projects.

“Gridbow’s entrepreneurial journey with Worley has been an amazingsuccess story, and the company has grown to over 60 permanentemployees and has expanded its business operations as far as sub-Saharan Africa and Australia,” says Mfolo.

COO of Gridbow, Farai EJ Chabata, reflects on being an ESD partner:“The journey as an entrepreneur is long and a helping hand is one ofthe key things. The helping hand that the Worley (then TWP) programgave us was priceless. The world-class office space and open workingenvironment set us up for success. All we had to do was look for workand execute the projects.”

Mfolo cites iX engineers as a further example. Established in 2016, iXengineers are a Worley ESD extended partner company offeringprofessional consulting engineering services. ESD extended partnersare companies already established in their own right, and who are ableto partner with Worley to execute major projects.

iX engineers have worked nationally as well as across most continentsand are well versed in international best practices, routinely applyingstate-of-the-art technology and systems to support a more efficientproject process.

“These two companies are now at the point where they are able to fulfiltheir own socio-economic obligations and can operate independently.The wheel has come full circle and their success is testament to ourESD program working the way it was intended,” comments Mfolo.

With the Worley ESD initiative now fully into its implementation phase,Mfolo is not short of other success stories.

ST Nubian Architects, an extended ESD partner, is currently engagedwith the design and layout of a simulated underground miningenvironment for the University of Johannesburg, followingsuccessfully tendering for the project with mining engineering assistancefrom Worley.

Worley is also taking a lead role in the design and layout of the simulatedmine and has, through its global engineering expertise, assisted STNubian Architects to tap into new markets.

Mfolo adds that while design projects such as these are not usuallyundertaken by Worley, the project nevertheless fits well with their ESDinitiative by supporting an educational institution that may in turnpotentially provide valuable human resources to Worley.

A Worley ESD core partner company, UNN Surveys, specializes inland development, land management and engineering consulting,

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Worley’s ESD Initiative a Testimonyto Positive Transformation

Worley’s ESD Initiative a Testimonyto Positive Transformation

Gladwin Mfolo

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offering comprehensive solutions in the infrastructure anddevelopment sectors.

Mfolo says that this 100% black women-owned enterprise is indiscussions with an international land surveying company aboutcollaborating on future projects. “This will be beneficial to both partiesas UNN Surveys can access global expertise and resources whilesimultaneously assisting an overseas organization to gain entrance tothe local market.”

NBi Quantity Surveyors is a black-owned cost engineering consultancyfirm offering quantity surveying services with a specific focus on themining environment. As an extended partner within the ESD program,NBi is currently providing quantity surveying services to the De Beers

Venetia Underground Project, oneof Worley’ flagship projects. Mfolocomments that the NBi resourcesseconded to the project areexecuting work well with Worleyresources in delivering this projectfor De Beers.

At present, Worley has 12 enterprisesupplier development partners inits ESD program. These range fromESD core partner companies to ESDextended partner companies and

ESD alumni partner companies. The program assists the ESD partnercompanies with capability and capacity building, with special focuson value-added activities within the South African industry throughservice-related functions.

“Our intention is to jointly deliver services in the hydrocarbons, mineral,metals, chemicals, power and infrastructure sectors with our ESDpartners and we believe that the engineering sector and its associatedinfrastructure in South Africa has much to gain from this initiative. Asthe program continues to mature, we expect to see more and morejoint delivery of services while exposing our ESD partner companiesto world-class delivery systems and transferring skills andcapabilities to help these companies and the industry as a whole grow,”concluded Mfolo.

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De Beers’ Venetia Underground project

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hat is today the African nation of Namibia was formedthrough a number of treaties between several Europeannations that visited its shores. The first was the Portuguese

in the late-1400s, with Germany and England coming along a littlelater. As previously stated, Namibia’s present international boundarieswere established by European treaties, or more specifically Germantreaties with Portugal and Great Britain between 1886 and 1890.Germany annexed the territory of South West Africa (SWA) duringthis same period.

Namibia’s neighbor to the south took over the territory during WorldWar I, five years later the League of Nations granted South Africa themandate to govern SWA. South Africa kept its hold on SWA for thenext half-a-century despite opposition from the UN and the people ofSWA itself. In 1946 the UN refused to allow South Africa to annexSWA and in turn South Africa refused to place SWA under UNtrusteeship. Over the next 15 years opposition parties to South Africa’srule arose, most notably Herman Toivo ya Toivo and others, creatingthe opposition Ovamboland People’s Congress, which would laterbecome the South West Africa People’s Organization (Swapo).

In 1961 the UN General Assembly demanded that South Africa terminatethe mandate and set the establishment of SWA’s independence as anobjective. Namibia’s neighbor was not quick to react to do the UN’sbidding which led to Swapo launching an armed struggle against SouthAfrican occupation. SWA was officially renamed Namibia by the UN

General Assembly in 1968 and in 1973 it recognized Swapo as “solelegitimate representative” of Namibia’s people. While the UN mayhave recognized the independence of the Namibian people, SouthAfrica took a bit longer. It was not until 1988 that South Africa agreedto Namibian independence in exchange for the removal of Cubantroops from Angola where South Africa had been assisting UNITA inthe country’s civil war.

Namibia’s first elections took place in 1989, supervised by the UN.Swapo came in as the winner. In 1990 Namibia became independent,with Sam Nujoma as its first president. He went on to win the next twoelections however, in 2001, he said he would not stand for a fourthterm and stepped down with his presidency expiring in 2004.

In November 2004 President Nujoma’s nominee, Hifikepunye Pohamba,won the presidential elections. He was inaugurated in March 2005.During his tenor as president, Pohamba was praised for overseeingstrong economic growth with gross domestic product per capita risingfrom $3,297 in 2004 to $5,693 in 2013, according to the World Bank.Under his leadership his Swapo party was applauded for making stridesin gender equality, with 25 of 72 parliamentary seats filled bywomen. The party was also commended for improving national healthservices and increasing Namibia’s life expectancy from 55 in 2004 to64 in 2012. The strides made by Pohamba in the areas of boostinggovernance, media freedom and human rights in the southernAfrican country while in office, led to him being awarded the $5 million

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By Jennifer Nickle, Deputy Editor

Afr i can Focus

Politics & Economy

NAMIBIANAMIBIA

President: Hage Geingob(since March 2015)Independence:March 21, 1990(from South African mandate)Population: 2,533,224 (July 2018 est.)GDP (purchasing power parity):$26.6 billion (2017 est.)Real GDP Growth Rate: -0.8% (2017 est.)Per Capita GDP: $11,200 (2017 est.)Minister of Mines and Energy: Tom AlweendoOil Production: N/ARefined Oil Consumption:27,000 bpd (2016 est.)Proven Oil Reserves: N/ANatural Gas Production: N/ANatural Gas Consumption: N/ANatural Gas Imports: N/AProven Natural Gas Reserves:3.3Tcf (January 2017 est.)

UN

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Mo Ibrahim prize for African leadership when he left office inearly-2015. The Mo Ibrahim prize is given to an elected Africanleader who governs well, raises living standards and then leaves office.

Like his predecessor Nujoma, Pohamba stepped down at the end ofhis constitutional term limits. Namibia once again elected a Swapoparty member. Hage Geingob won the 2014 elections with 86.7% ofthe vote. Just recently the country’s Chief Electoral and ReferendaOfficer, Theo Mujoro, announced that Presidential and NationalAssembly elections will be held on November 29 of this year. Theupcoming elections will take place against a background of negativeeconomic growth, expanding income inequality, high poverty levels,youth unemployment, unsustainable government deficits and debt aswell as massive rural-urban migration. In recent times elections inNamibia have come to be viewed as a means of employment creation.

On the economic end, Namibia’s economy is heavily dependent on theextraction and processing of minerals for export, particularly Uranium.

Unfortunately for the country’s coffers, the price of Uranium has takena dip, hurting its bottom line. Diamonds are also a big revenue generatorfor Namibia, however the rising cost of mining diamonds, especiallyfrom the sea, combined with increased diamond production in Russiaand China, has reduced Namibia’s profit margins. Namibia also produceslarge quantities of zinc and is a smaller producer of gold andcopper. Namibia’s economy remains vulnerable to world commodityprice fluctuations and drought. Authorities emphasized the need toadd value to raw materials, do more in-country manufacturing,and exploit the services market, especially in the logistics andtransportation sectors.

A high per capita GDP, relative to the region, obscures one of theworld’s most unequal income distributions. The current governmenthas prioritized exploring wealth redistribution schemes while tryingto maintain a pro-business environment. GDP growth in 2017 slowedto about -0.8%, however, when 2018 numbers are in the country isexpected to show a modest recovery.

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UPSTREAM

Namibia has yet to become anAfrican producer. While massivenatural gas discoveries werediscovered off its coast well overa decade ago, no set developmenthas moved forward to takeadvantage of these resources forvarious reasons. A number ofexploration programs over thepast several years have seen wellsdrilled off its coast, as yet, noneof these programs have resultedin any new discovered resources.

While no new resources havebeen discovered, that has notstopped firms from coming toNamibia’s shores. The countryplays host to a number ofindependent firms and majorsare starting to make their way toNamibia’s offshore arena. Firmslike Chariot Oil & Gas, TullowO i l , To w e r R e s o u r c e s ,EcoAtlantic Oil & Gas, and Shell have all been present in the countryfor a few years; more recent entrants include Kosmos Energy, Total,and ExxonMobil.

Since last covered by Petroleum Africa, ExxonMobil entered Namibia,picking up stakes in PEL 82 from Galp Energia in February 2018.The license is located in the Walvis Basin, and covers an area of11,444 sq km in water depths ranging from 300 meters to 2,000 meters.The US supermajor added to its position in August that same year withthe purchase of a 30% interest in PEL 44 from AziNam. ExxonMobilwas not yet done picking up acreage and added approximately 7 million

acres in April of this year. The company signed an agreement withNamcor and the government for blocks 1710 and 1810 and a farm-inagreement with Namcor for blocks 1711 and 1811A. The blocks extendfrom the shoreline to about 135 miles offshore Namibia in water depthsranging up to 13,000 ft. In a statement, the company said that it plansto begin exploration activities this year, including acquisition of seismicdata and analysis. ExxonMobil will operate blocks 1710 and 1810 witha 90% interest, Namcor will hold the remaining 10%. The companywill assign a 5% interest to a local Namibian company. ExxonMobilwill be the operator of blocks 1711 and 1811A with an 85% interestwith Namcor holding the remaining 15%.

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In May 2018, Calima Energy was awarded a 5,433 sq km explorationblock in the emerging deepwater oil play of the Orange RiverBasin, Block 2813B. The petroleum agreement is for a 56% stakeand operatorship under an initial four-year term. The companyrecently reached an agreement with Tullow Oil to sell its stake in theblock to the Irish company. Prior to the sale, Calima held a 56%stake and was partnered with Trago Energy, Harmattan Energy,and Namcor.

In Q4 2018, Kosmos Energy expanded its position in Africa pickingup acreage in Namibia. The company entered into a strategic explorationalliance with Shell to jointly explore in a Shell license area. Initially,the alliance will focus on Namibia, where Kosmos has completed thefarm-in to Shell’s acreage in PEL 39.

At the same time as Kosmos joined Shell on PEL 39, Namcor executedtwo Joint Operating Agreements (JOA) with Total and Impact Oil.The JOA has Total joining Impact and Namcor in deep water Block2913B. Block 2913B covers approximately 9,000 sq km about 300 kmoffshore Namibia in a water depth of 3,000 meters. The acreage liesalong the western toe of the Orange River delta, where deep marinefan sands are contained within large structural traps. While Block2913B is located 150 km west of the Kudu Gas field, recent explorationwells along the outer fringes of the Orange Basin have demonstratedthat there exists a rich oil prospective zone running through the block.In addition, the Namcor and Total partnership concluded a JOA inrespect of Block 2912 also located in the Orange Basin. Namcorholds a 15% carried interest in the block and Total holds theremaining interest. Total will act as operator of both Block 2913B andBlock 2912.

As stated previously the country has seen some drilling over the pastseveral years but with no clear indication of new resources in place.In September 2018 Tullow Oil and its partners, which includesPancontinental Oil & Gas, spud the Cormorant-1 well on PEL 37. Itwas hoped that Tullow’s extraordinary luck seen in Ghana, Kenya, andUganda would transfer to Namibia. The Cormorant-1 was drilled bythe Ocean Rig Poseidon in 545 meters of water, to a total depth of3,830 meters subsea. Unfortunately, the results of the Cormorant welldid not clear up the question of Namibia’s prospectivity. According toTullow, the well encountered hydrocarbons, however they were non-commercial and as a result the well was plugged and abandoned. Tullowsaid that important geological data was gained and, in combinationwith high quality 3D seismic data, would provide valuable insightsinto the prospectivity of its Namibian acreage in PEL-37 and PEL-30.Tullow operates the PEL-37 license with 35% equity and is partneredwith ONGC Videsh Ltd (30%), Pancontinental Oil & Gas (30%) andParagon (5%).

Namibia’s next offshore well spud a short time later, this time it wasChariot Oil & Gas doing the drilling on its Central Blocks license,also using the Ocean Rig Poseidon. Chariot is the operator of thelicense and is partnered with Azinam, Namcor, and Ignitus. The wellwas spud on Prospect S, which is independently estimated to have agross mean prospective resource of 459 million barrels and a probabilityof geologic success of 29% by Netherland Sewell Associates.

In September 2018 Eco (Atlantic) Oil & Gas received necessaryapprovals from the Namibian Ministry of Environment and Tourismto drill an exploration well on PEL 30 (Cooper Block). The approvalsare for the final Environmental Clearance Certificate. The companycompleted seven years of exploration on the Cooper Block, includingregional geological studies, fracture analysis, slick studies, the reviewand interpretation of 5,000 km of 2D and 1,100 sq km in 3D surveys.In addition to its own ongoing interpretation, Eco has also contractedindependent studies from Petroleum Geo-Services, Azinam, TullowOil and Gustavson Associates. In October 2018 Tullow announced itsdeparture from the Cooper Block and transferred its 25% workinginterest back to Eco. Following this, Eco entered into active discussionswith potential farm-in partners to replace Tullow and to jointly drillthe Osprey Prospect with JV partner AziNam. Eco also holds an 80%interest in the Tamar Block (PEL 50), covering 7,500 sq km adjacentto PEL 71, and is considering the same channel and fan systems thatlead on to PEL 50. Accordingly, the company will monitor the resultsof the well on PEL 71 and will further analyze them once the well hasbeen completed.

Namibia awarded Global Petroleum new acreage offshore the countryin September of last year. The company signed a petroleum agreementwith the Namibian authorities for Block 2011A in the northern WalvisBasin. Global will hold an 85% interest in the new block as operator.Namcor, and a local private company, Aloe, will have carried interestsof 10% and 5% respectively. The new block is located immediately tothe east of the company’s current license, PEL 0029, which is madeup of Block 1910B and 2010A. The combination of the two licensesgives Global an aggregate of 11,608 sq km offshore northern Namibiaand makes it one of the largest net acreage holders in the region. Thecompany said that it believes that Block 2011A contains the same playsas those detailed in the Competent Person’s Report for PEL 0029,which was published in January 2018.

Under the Block 2011A work program, in the first two years of theInitial Exploration Period, Global will carry out various studies andwill reprocess all existing seismic in the license area, which includesa 3D seismic data survey shot in the western section. The studies andreprocessing will enable the reservoirs in the Welwitschia structureand elsewhere in the acreage to be mapped with more confidence, andthe leads to be identified more accurately. At the end of two years,Global has the option either to shoot a new 2,000 sq km 3D seismicdata survey in the eastern part of Block 2011A, or alternatively torelinquish the license.

On its PEL 0029, Global agreed to a work commitment for Phase 3with the Namibian Ministry of Mines and Energy. The firm’s additionalwork program consists of various studies, including mapping of sourcerock, mapping of contourites deposits, fault studies and amplitudeversus offset (AVO) analyses and extended elastic impedance (EEI)studies on seismic data. In addition, and carried over from the FirstRenewal Period extension, is the acquisition of 600 sq km of 3D seismicdata, contingent upon Global concluding a farmout, and the drilling ofone exploration well. The Ministry has also waived the requirementto surrender a further 25% of the original license area, which isnormally required at the end of the First Renewal Period, 50% had

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already been surrendered in accordance with the Petroleum Agreementat the end of the Initial Exploration Period (Phase 1). Significantprospective resources have been calculated on three prospects and twoleads in the acreage; Albian carbonates are the main reservoir for thethree prospects, with the primary prospect, Gemsbok, also havingprospective resources in two deeper layers. One of the two leads, Choje,has Upper Cretaceous deep-water sandstones as its reservoir. Both theAlbian carbonate and Upper Cretaceous sandstone plays are currentlybeing worked up further, both in the license and in Global’s adjacentLicense PEL0094.

In November of last year Tower Resources signed a new petroleumagreement (PA) with the government of Namibia covering an 80%interest in offshore Blocks 1910A, 1911, and 1912B. The agreementwas also signed by Namcor and ZM Fourteen Investment CC, Tower’spartners. The PA covered 23,297 sq km of the northern Walvis Basinand Dolphin Graben, encompassing Blocks 1910A, 1911, and 1912B.The area is an under-explored region in which recent drilling resultshave proven the presence of a working oil-prone petroleum system and

good quality turbidite and carbonate reservoirs. This is also an areathat Tower knows well since Blocks 1910A and 1911 formed part ofTower’s original license PEL0010, which Tower and its partners,Repsol Exploration (Namibia) and Arcadia Expro Namibia,relinquished in 2015.

The PA is structured to comprise an Initial Exploration Period of fouryears (which may be extended to five in appropriate circumstances),followed by options for Tower and its partners to enter a First andSecond Renewal Period of two years each. The work program for theInitial Exploration Period comprises regional play fairway evaluationand acreage high-grading activities including CRS mapping, sequencestratigraphy, sedimentology and basin modelling, geochemical, gravityand magnetics analysis, 2D and 3D seismic interpretation and mapping,and petrophysics and well failure analysis, based on a data base buildcomprised of the acquisition of 5,000 km of existing 2D seismic andrelevant well data; analysis and, if necessary, reprocessing of existing2D data; acquisition of at least 1,000 sq km of 3D seismic data; andthe acquisition of oil seep satellite data and piston-coring reports.

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Namibia imports petroleum products for domestic use and is a weighpoint for distribution to other countries in the region. In May 2018 itwas revealed that the Namibian town of Usakos had teamed up withMDL International and foreign financiers to develop an oil storagefacility that could store over 200 million liters of fuel to be distributedto markets in the Southern African region. The massive investment,projected to cost over R3 billion, could transform the quiet town intoan urban logistics center and generate significant employmentopportunities for the community. MDL International and itsinvestors see the establishment of a fuel and gas storage terminal as away to distribute products to countries like Angola, Botswana, theDemocratic Republic of Congo, Zambia and Zimbabwe. Phase 1 ofthe project has already begun with the establishment of a logisticscenter. Phase 2 involves the actual construction of the storageterminal. It is expected that the terminal will take around two yearsto construct.

Perhaps the country’soil and gas industry isbest known for thelong-delayed Kudugas-to-power project.The Kudu project hasbeen on the books forsome time although itnever seems to makea n y s i g n i f i c a n tprogress. In August2018 the project took

another hit when Tom Alweendo, the country’s energy minister, saidthe project may not be viable. Speaking on state broadcaster, NamibiaBroadcasting Corp., Alweendo said he was not sure the project wouldtake off after years of delays due to the related export agreements.Namibia’s offshore Kudu Gas Fields have proven and probablerecoverable reserves estimated at more than 3.3 Tcf and could drastically

reduce the country’s dependence on imported power. However, theproject has been delayed for more than two decades and has alsoseen a number of firms participating in the project come and go overthat time.

Despite Minister Alweendo’s views, the project did make the newsrecently when it was reported that the Kudu project could make arevival. According to reports, the project has seen a revival by BWKudu Limited, who says recent technological advancements as wellas a consistent market for reliable economical energy makes theelectricity project viable. BW Kudu Ltd, a subsidiary of BW Offshore,became the operator for the Kudu Gas field in 2017 with a 56%shareholding with Namcor holding the remaining 44%. Reports haveBW Kudu’s Namibia Country Manager, Klaus Enderesen, being fairlyconfident that the necessary local and international investors could besecured to mobilize the approximate $2 billion needed to bring the475-MW project to fruition. Enderesen was cited in an interview withNew Era as saying that once all the necessary elements are in place,it will take about three years to see the Kudu Gas-to-Power projectproviding stable and reliable electricity to the Namibian market.However, he noted that it will take another year for all the additionalelements to be in place, including sufficient research on exporting thatpower to supply electricity to South Africa.

To make the project more cost effective, the single buyer model thathas been touted for the project, which would have seen all the electricityproduced sold to NamPower, is being modified to a multi-buyer model.This modification has been refined to include a private energy supplyconcept that would most likely see Kudu Gas also supply electricitydirectly to private buyers and Independent Power Producers (IPPs).BW Kudu explained that the Kudu Gas development plan is based ontwo wells together producing 250 Mboe over 25 years, the redeploymentof an FPSO provided by BW Offshore, and a gas export pipeline fromthe FPSO to shore where a 475-MW power plant would be constructedto serve the domestic and regional market.

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he African nation of Niger started out its modern history beingoccupied by France. The French began their occupation inthe late-1800s and Niger’s colonial history and development

was parallel to that of other French West African territories. Franceadministered her West African colonies through a governor general inSenegal, and governors in the individual territories, including Niger.

After the establishment of the Fifth French Republic in October 1958,territories of French West Africa and French Equatorial Africa weregiven the right to hold a referendum on membership in the FrenchCommunity, including Niger. Membership in the French Communityallowed for some limited self-government and was viewed as a pathto eventual independence. Niger took on independence in 1960 withits parliament electing Hamani Diori as president.

Hamani Diori was overthrown in a military coup led by Lt-Col SeyniKountche in 1974. Kountche held on to his position until 1987 whenhe died of a brain tumor. Ali Seybou succeeded Kountche and twoyears later a new constitution brought Niger back to civilian rule withSeybou being re-elected as president. Following Seybou’s re-election,he legalized opposition parties when faced with a wave of strikes anddemonstrations. He held on to his position until July 1991 when aconstitutional conference stripped him of his powers and set up atransitional government under Andre Salifou.

In 1992 a new constitution was ratified, allowing for multi-partyelections. The following year Mahamane Ousmane was elected as

president and his coalition, the Alliance of the Forces of Change, wona majority of seats in parliament in 1993. No one president held on tooffice for long and coups abounded in Niger as just three years later,Ousmane was ousted in a coup led by Col Ibrahim Mainassara, whobanned all political parties. May of that year brought yet anotherconstitution, this one giving the president increased powers. While thenew constitution lifted the ban on political parties, Mainassara wasable to win the presidential election held in July. Like his predecessor,Mainassara was removed from office, this time by assassination. InApril 1999 Major Daouda Wanke assumed power following Mainassara’sassassination by his bodyguards.

Yet again, another constitution was drawn up, this one reversing theincrease in presidential powers. In November 1999 MamadouTandja was elected president and his party, the National Movement forthe Society in Development, won a majority of seats in parliament. InDecember 2004, Tandja won a second term in office with 65.5% ofthe vote in a second-round ballot. While the country’s constitution heldpresidential term limits to two, Tandja wanted a third term. In mid-2009 he suspended the constitution and assumed emergencypowers after the Constitutional Court ruled against his plans for areferendum on whether to allow him to seek a third term. In Augustthe referendum went through giving Tandja three more years andbroader presidential powers. Tandja’s constitutional shenanigans ledto him being ousted in a coup and the military junta appointed atransitional government headed by a civilian prime minister,Mahamadou Danda.

T

By Jennifer Nickle, Deputy Editor

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President:Issoufou Mahamadou(since April 2011)Independence:March 21, 1990(from South African mandate)Population: 2,533,224(July 2018 est.)GDP (purchasing power parity):$21.86 billion (2017 est.)Real GDP Growth Rate: 4.9% (2017 est.)Per Capita GDP: $1,200 (2017 est.)Minister of Petroleum: Foumakoye GadoOil Production:11,000 bpd(2017 est.)Refined Oil Consumption:14,000 bpd (2016 est.)Refined Petroleum Exports:5,422 bpd (2016 est.)Proven Oil Reserves:150 million barrels (2018 est.)Natural Gas Production: N/ANatural Gas Consumption: N/ANatural Gas Imports: N/AProven Natural Gas Reserves: N/A

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Source:CIA World Factbook and World BankNIGERNIGER

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The country hosted elections in March 2011 with Mahamadou Issoufouwinning the office of president. Issoufou was re-elected in a run-offelection in 2016 which was boycotted by supporters of his exiledopponent, Hama Amadou, who was later sentenced to a year in prisonfor child smuggling. He was not in court and denied the charges,describing them as politically motivated.

EconomyOn the economic end, the country relies mainly on subsistence crops,livestock, and its uranium deposits which are some of the largest inthe world. Agriculture contributes approximately 40% of GDP andprovides livelihood for over 80% of the population, according to theWorld Bank. Niger was ranked as the second least developed countryin the world by the UN in 2016. The UN’s ranking of Niger was dueto multiple factors including food insecurity, lack of industry, highpopulation growth, a weak educational sector, and few prospects forwork outside of subsistence farming and herding.

The UN reports that GDP growth has been relatively flat the pastseveral years, coming in at 4.3% in 2015 and 4.9% in both 2016 and2017. The government relies on foreign donor resources for a largeportion of its fiscal budget; however, plans to exploit its oil, gold, coal,and other natural resources are in the works to sustain growth in thefuture. The country has sizable oil reserves but its production leavesit dependent on the vagaries of the oil markets booms and busts.

Formal private sector investment needed for economic diversificationand growth remains a challenge, given the country’s limited domesticmarkets, access to credit, and competitiveness. Although PresidentIssoufou is courting foreign investors, including those from the US, asof April 2017, there were no US firms operating in Niger. In November2017, the National Assembly passed the 2018 Finance Law that wasgeared towards raising government revenues and moving away frominternational support.

Oil Industry UpdateNiger produces crude from fields operated by Chinese firm CNPC.The firm took on acreage in 2008 that had been abandoned by someof the industry’s biggest players and just three years later struck oiland started production. Between 2011 and 2014, CNPC made 95discoveries from 129 exploration wells, confirming over one billionbarrels in oil reserves.

Prior to CNPC, the country had only seen 25 wells drilled and fiveminor discoveries. Yet despite all the wells and discoveries made byCNPC, Niger only produces at a rate of 20,000 bpd. What is hinderingNiger is not a reserve problem, but an infrastructure problem. Targetsof 60,000-90,000 bpd have been set but delays are pegged with thelack of export infrastructure. Being landlocked, Niger has no pipelineconnecting it to neighboring nations and any increase in productionwould lead to a significant storage problem.

Despite the infrastructure problem one independent decided to plantits flag in the country with much success to date, Savannah Petroleumout of the UK. The company, as of October 2018, has recorded fiveconsecutive commercially viable discoveries on it R3 and R4 PSC

areas in the Agadem Rift basin (ARB), in the southeast of Niger. TheAmdigh, Bushiya, Kunama, Eridal, and Zomo wells all resulted indiscoveries for the company.

Following the successful results of the five exploration wells drilledto date, Savannah Niger has elected to commission Pre-Stack DepthMigration (PSDM) processing of the R3 East 3D seismic dataset. ThePSDM processing project was completed in 2019 and showed an overallimprovement in seismic imaging (better event continuity and faultdefinition) at all levels vs. the existing Pre-Stack Time Migrationdataset, according to the company. The interpretation phase, which isplanned to start in June, will assist Savannah in confirming drillingtargets to support the proposed EPS as well as identifying additionalprospectivity in the deeper Yogou and Donga Cretaceous intervals.

The company also received an additional 400 km of 2D seismic dataon the R3 Central area in H2 2018. Savannah said the data reconfirmed

GW215 Mast Raised at Bushiya-1 well site

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many of the previously identified exploration targets on the area aswell as identifying several new targets. A new drilling campaign isexpected to commence in early 2019, initially focusing on the R3 Eastand R3 Central areas, before likely proceeding to the R1 Dinga 3Darea and, potentially, the R2 Dinga Ridge area. Savannah Niger continuesto expect to perform a well test on Amdigh-1 in 2019.

Savannah also intends to develop a domestic-focused early productionsystem (EPS) utilizing resources discovered on R3 East, with oilexpected to be sold into the Société de Raffinage de Zinder (SORAZ)refinery, which is connected to the ARB via the third party owned463-km Agadem-Zinder crude oil transportation pipeline. There is alsotalk of a pipeline to connect the oil fields to the export pipeline in Chadthat takes crude to the Atlantic coast in Cameroon.

Savannah’s success brought Niger to the attention of OrantoPetroleum. The company’s chairman, Prince Arthur Eze signed a MoUwith the Ministry of Petroleum for the rights to explore blocks R5, R6,Dibella and Dallol in the Tenere and Agadem Basins. Both R5 andR6 border Savannah’s other exploration licenses in the AgademBasin, R1 and R2, which have also registered considerable oil and gasprospects in recent years and that have been assessed by CGG ascontaining up to 1.6 billion barrels of oil equivalent in reserves“yet to find.”

As stated previously, there is talk of a pipeline to link Niger to theChad-Cameroon pipeline. The potential of this infrastructure couldbring a huge change to the face of Niger’s oil industry. The Nigergovernment has said for a number of years that construction on thepipeline would begin, but as yet no movement has been seen. If it goesthrough, Niger could be a de facto oil exporter by 2020 or 2021 andhave access to a new influx of capital to continue to finance theindustry’s growth and the country’s overall economic development,particularly if oil prices see a rise.

Niger could also become an exporter of refined products as plans wereconcluded earlier this year with neighboring Nigeria to establish a newoil refinery to be located in the border town between the Niger andKatsina state in Nigeria. The multi-million-dollar plant would helpmeet the need for refined products in both countries and could leavesome for export. After meeting with the President of Niger, MahamadouIssoufou and Minister of Petroleum Foumakoye Gado, Nigeria’sMinister of Petroleum Emmanuel Ibe Kachikwu disclosed that “Amutually beneficial agreement was reached for the construction of arefinery in the border town between the Republic of Niger and KatsinaState, Nigeria and a crude oil pipeline from the Republic of Niger tothe new refinery.” This was back in 2018 but since then, not much hasprogressed on this front. With the latest Nigerian election recentlyconcluded, the project could gain new traction, but with all of therefinery woes it has on its plate domestically, for now the project willremain uncertain.

Seismic vibrator truck operating on R3 Eas

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MARKET MOVERS

GNA Calls for Firms to Fix Legal StatusLibya’s internationally recognized government,the Government of National Unity (GNA) haveissued a grace period of three months for firmsoperating without licenses to fix their legal status.These firms include at least one oil and gas major.

The Ministry of Economy and Industry said in adecree that the firms, including French oil majorTotal, would be suspended as their licenses hadexpired. This was seen by some as a way topressure the EU to stop an eastern militaryoffensive against the capital of Tripoli.

The Ministry cited legal procedures, but the actioncomes as the Tripoli-based government seeks todrum up support to fend off an assault by KhalifaHaftar’s Libya National Army (LNA) force,which has been trying for one month to takethe capital.

The decree was published a day after TripoliPrime Minister Fayez al-Serraj met FrenchPresident Emmanuel Macron in Paris, comingfrom Berlin and Rome, to bolster his case.

“Officially, those 40 licenses were scheduled tobe expiring now,” he said. “In reality, the decreeis motivated by a desire to show European statesthat their leniency towards the eastern-Libyanfaction has immediate consequences on theireconomic interests.”

Angolan Reform Agenda Pays DividendsThe ambitious reform agenda of AngolanPresident João Laurenço and his Minister ofMineral Resources and Petroleum, Dr. DiamantinoPedro Azevedo, has already resulted in increasedinvestment by the country’s biggest Europeanoperators. The country has emerged as a hub offoreign direct investments within the continent.This has resulted in increased investments out ofEurope and the prospects of attracting more FDIthis year are bright.

According to the African Energy Chamber, thiscurrent state of play now presents an opportunityfor North American companies to re-engage andre-invest in the Angolan market.

Angola just released a new oil licensing strategyup to 2025, and for the first time is about to launcha bidding round that includes marginal oil fieldswith an attractive fiscal framework. Angola’seconomic recovery is being driven by investmentsin the country’s oil and gas sector, with thecountry’s energy sector attracting well over $1billion of investment commitments over the pastfew months.

The charge is notably led by international oilcompanies increasing the size of their operationsin the country, including Total at Kaombo,ExxonMobil in the Namibe Basin and BP at thePlatina Field. US oil & gas service companieslike Halliburton and Baker Hughes GE also stilldominate the sector and are likely to further investin technology as the country ramps up explorationefforts. American firms have traditionally ledinvestments within Angola’s oil sector, especiallyunder the Strategic Partnership Agreement theUS has with Angola, one of just three in sub-Saharan Africa.

Lekoil Drops Suit Against KachikwuLekoil advised that it has dropped its legal actionagainst Nigeria’s Minister of Petroleum,Emmanuel Ibe Kachikwu. The company receiveda letter from the Ministry of Petroleum Resourcesrelating to an application for an extension(re-award) of the OPL 310 license. In astatement on its website, the company said thatthe letter notes the license expired onFebruary 10 and ownership reverted back tothe government, according to Nigeria’sPetroleum Act.

The letter from the Ministry said that a re-awardof the block to Lekoil would not be considereduntil the suit filed by the company against theMinister was withdrawn. The letter from theMinistry said that failure to do so by Lekoil andother parties in the suit within 30 days wouldnegate any consideration for re-award.

Lekoil received the letter on May 13, however itwas dated May 8. The company decided towithdraw legal action. It will also continueengagements with the regulator and OptimumPetroleum Development Company Ltd., theoperator of OPL 310, to conclude agreementsand resolve all outstanding issues.

Liberia TransfersRegulatory Functions to LPRAThe government of Liberia, through the LiberiaPetroleum Regulatory Authority (LPRA), and theNational Oil Company of Liberia (NOCAL), areset on rebuilding a viable oil and gas program.The plan to be initiated by LPRA and NOCALincludes improving governance, transparency,accountability and equity participation of allLiberians. The move is in keeping with Section78 of the Petroleum (Exploration and Production)Reform Act of 2014.

A statement from the government was releasedto inform the public and its partners that theTransfer Plan, referred to and required in the

Petroleum Law, was now complete. The newssignals the full transfer of all regulatory functionsfrom NOCAL to LPRA allowing NOCAL tofocus on improving the commercialcapabilities and promoting the government’sinterest and citizen participation. This also allowsfor LPRA to immediately commence keyactivities leading to future bid round activitiesfor offshore acreage.

Liberian president, George M. Weah, challengedthe CEO of NOCAL and the Director-General ofLPRA to engage with international oil companiesand other global partners in building aneconomically successful and sustainable oil andgas sector, one that will maximize government’stake, ensure environmental sustainability, andequitable participation of all Liberians.

The President further stressed that, “while thecountry is in desperate and dire needs to discovercommercially viable quantity of oil, we must notlose sight of the attending consequences thatcould evolve when the right policies, regulationsand laws are not developed or adhered to.”

BP to Sell GUPCO to Dragon OilBP has agreed to sell its interests in its Gulf ofSuez oil concessions in Egypt to Dragon Oil, theDubai-based oil and gas company. Under theterms of the agreement, Dragon Oil will purchaseproducing and exploration concessions, includingBP’s interest in the Gulf of Suez PetroleumCompany (GUPCO).

The deal, which is subject to the Egyptian Ministryof Petroleum and Mineral Resources’ approval,is expected to complete during the secondhalf of 2019 and is part of BP’s plan to divestmore than $10 billion of assets globally over thenext two years. Financial details are notbeing disclosed.

Panafrican Energy Servicesand Wire International Team UpPanafrican Energy Services Group and WireInternational Ltd. are bringing well interventionservices to the African continent. The pair willbring together the engineering advisorypotential of Panafrican Energy Services Groupand hands-on experience of Wire Group and itsknow-how to integrate the latest slicklineand cased hole services technologies intonew markets.

Wire Group will provide operations support toits partner in services lines such as slicklineServices, data acquisition, cased hole services(well logging, pipe recovery, perforations – both

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wireline & tcp), fluids sampling & analysis,surface well testing, and production systems.

WIS & Rhône Capital to AcquireFishing and Tubulars BusinessesWellbore Integrity Solutions (WIS), an affiliateof private equity firm Rhône Capital, andSchlumberger entered into an agreement for WISto acquire the businesses and associated assetsof DRILCO, Thomas Tools, and Fishing &Remedial services, along with part of amanufacturing in Houston.

The transaction is valued at approximately$400 million and is subject to regulatory approvalsand other customary closing conditions. Theparties expect to close the transaction by year-end 2019.

WIS expects to operate the combined businessesas a global, customer-focused provider of drillingtubulars services; tubing work strings, rentals andaccessories; and fishing and remedial servicesfor drilling, intervention and abandonmentactivities for the oilfield services industry.

TGS-NOPEC/SpectrumMerger Plan ApprovedThe respective boards of TGS-NOPECGeophysical and Spectrum have unanimouslyapproved and decided upon a final mergeragreement and merger plan in line with the termspreviously announced. The merger plan is nowto be submitted to and registered by the NorwegianRegister of Business Enterprises.

Completion of the merger is subject to approvalby extraordinary general meetings in TGS andSpectrum, expected to be held on or aboutJune 21. Notices for the general meetings will be

sent to shareholders shortly. As previouslyreported, Spectrum shareholders representingmore than 34% have given their support to thetransaction and undertaken to vote their sharesin favor thereof.

Aqualis Offshore and BraemarTechnical Services to Join ForcesAqualis ASA, the parent of marine and offshoreengineering consultancy Aqualis Offshore, todayentered into an agreement to acquire the Offshore,Adjusting and Marine business lines from BraemarShipping Services Plc.

The combined company, to be renamed AqualisBraemar ASA, will be a leading offshore,adjusting, marine and renewables consultancywith a broadened service offering across allmajor basins.

Aqualis Offshore is a specialized offshore marineand engineering consultancy firm, focusing onthe shallow and deep-water offshore segments ofthe oil and gas industry. The company has a broadservice offering within the offshore oil and gassegment, leading within engineering services,rig moves and complex offshore transportation.Braemar Technical Services also provides a broadservice offering within the offshore oil and gassegment, leading within engineering services andrig moves.

The combined company will be divided into fourdivisions, each with a strong presence in theirrespective markets: Offshore, Marine, Adjustingand Renewables. It will have a total of more than430 full-time equivalent employees globally. Thecombined company’s revenue for the twelvemonths ended December 31, 2018 wasapproximately USD 76 million, with Aqualis and

Braemar Technical Services representingapproximately USD 36 million and USD 40million respectively.

Completion of the transaction is subject to theapproval by Aqualis’ shareholders at the AnnualGeneral Meeting, expected to be held on or about11 June 2019. The transaction is not subject toany regulatory approvals. Given approval at theAGM, the transaction is expected to close by theend of June 2019.

Chevron Out – Oxy InOne of the most talked about acquisitions in theindustry in years was initiated during the period,Chevron’s buy of Anadarko Petroleum.Unfortunately, the intended buy did not go wellfor Chevron as fellow US firm OccidentalPetroleum stepped into the mix, toppingChevron’s bid.

The Chevron bid offered Anadarko $50 billion.Occidental, who had been talking to Anadarkoprior to the Chevron deal, upped the ante to $57billion. Occidental is offering $76 a share but thenew bid has it paying 78% in cash and 22% instock. The $57 billion transaction was initiallystructured as a 50-50 cash-and-stock deal whenOccidental first made its public bid for Anadarko.

Occidental’s bid attracted some powerful interest,securing $10 billion in support from BerkshireHathaway and France’s Total SA said it has agreedwith Occidental to acquire the African assets ofAnadarko for $8.8 billion. Other players such asItaly’s ENI, are said to also be interested inacquiring the African assets. In the end,Anadarko accepted the Occidental bid andChevron chose not to up the ante, bowing out ofa bidding war.

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Appomattox StartsProduction in US GoMRoyal Dutch Shell subsidiary, Shell OffshoreInc., saw production start from its latest operatedproject in the US Gulf of Mexico (GoM), theAppomattox floating production system. TheAppomattox began production ahead of schedule,opening a new frontier in the GoM.

According to Shell, the Appomattox, whichcurrently has an expected production of 175,000boepd, is the first commercial discovery nowbrought into production in the deep-water Gulfof Mexico Norphlet formation. The companysaid it creates a core long-term hub for Shell inthe Norphlet through which it can tie backseveral already discovered fields as well asfuture discoveries.

In a release, Shell said that the Appomattox wasa story of “efficiency through innovation.” Byway of optimized development planning, betterdesigns and fabrication, and expert drillingexecution, Appomattox has realized costreductions of more than 40% since taking thefinal investment decision in 2015. The start ofproduction at Appomattox is only just thebeginning of further maximizing the flow ofresources in the prolific Norphlet surroundingAppomattox.

Safe Eurus Brazil BoundProsafe and Petrobras entered into a contract forthe use of Prosafe’s Safe Eurus semi-submersiblevessel for safety and maintenance support offshoreBrazil. The contract will commence in Q4 2019with a firm period commitment of three years.

This is the first contract for the Safe Eurus, avessel designed and built to service the Brazilianmarket. Safe Eurus will be the third Prosafe vesselunder charter in Brazil, with sister vessel SafeNotos also on charter to Petrobras, and SafeConcordia on charter with MODEC. The totalvalue of the contract is approximately $80 million.

Petro Matad Preparesfor Mongolian Spud in JulyPetro Matad updated its preparations for its 2019drilling campaign in Mongolia on Block XX. The

company said that well site construction hascommenced on the Heron 1 location. The siteconstruction contractor will then move to theGazelle 1 location and from there to Red Deer 1.All three sites are expected to be complete by theend of June.

The work is being carried out by the sameconstruction contractor that successfully preparedthe sites for the company’s 2018 drillingcampaign. A contractor has been chosen to drilltwo water supply wells, one for operations atHeron and Gazelle and one for Red Deer. Thecontractor will mobilize to Heron in early June.

Permitting, procurement activities and rigpreparations are progressing well, ahead of theexploration drilling campaign. The DQE rig hascompleted its pre-move testing and certificationand the required electrical upgrade is expectedto be completed in the first week of June. PetroMatad is targeting an early-July spud date for theHeron well, with the Gazelle well immediatelyfollowing. The Red Deer will follow in the secondhalf of July.

In addition, the company said that the applicationsfor entry into the final two-year term (to July2021) of the Exploration Phases of Blocks IVand V, submitted in mid-April 2019, are underreview by the regulator (MRPAM), with finalclarification meetings expected shortly.

FID Coming Soon for Liza Phase 2Hess Corp. and ExxonMobil Corp. receivedregulatory approval from the government ofGuyana and have made the FID to proceed withthe second phase of development of the LizaField on the Stabroek Block, offshore Guyana.

Liza Phase 2 will utilize the Liza Unity FPSOvessel which will have the capacity to produceup to 220,000 bpd of oil. Six drill centers areplanned with a total of 30 wells, including 15production wells, nine water injection wells andsix gas injection wells. First oil is expected bymid-2022. The development is expected to havea gross capital cost of approximately $6 billion,including a lease capitalization cost ofapproximately $1.6 billion for the FPSO, and willdevelop approximately 600 million barrels of oil.

The FID is expected later this year for a thirdphase of development, Payara, subject togovernment and regulatory approvals. The Payaradevelopment is expected to produce between180,000 and 220,000 bpd with startup as earlyas 2023. Following the recent Yellowtail andTilapia discoveries, the Turbot area is also

expected to become another major developmenthub, and additional development potential is beingevaluated in other areas of the Stabroek Block,including at Hammerhead.

Vroon Offshore CrossesPond to Trinidad and TobagoBP Trinidad and Tobago LLC awarded VroonOffshore Services Aberdeen a multiple year,multi-million pound contract. This award willsee industry recognized North Sea emergencyresponse vessels and expertise transferred tointernational waters.

Vroon Offshore, the North Sea’s largest operatorof emergency rescue and response vessels(ERRVs), will provide three specialist vessels tosupport BP’s operations in the Caribbean:the VOS Gorgeous, the VOS Fabulous and theVOS Grace. Dedicated to supporting offshoreoperations 24/7 365 days a year, ERRVs are fullyequipped to recover and rescue people from thewater, provide a place of safety and medical aid.They also monitor the safety zone, helping toavoid collisions, act as a first response in handlingoil spills and as a reserve radio station.

These vessels and their specialist crews havedeparted from North Sea waters to service thecontract and Vroon Offshore will establish a localpresence in Trinidad and Tobago to support them.This contract follows a 2018 agreement betweenBP and Vroon Offshore to supply five ERRVs inthe North Sea and West of Shetland on a long-term contract.

CUPET Offers Up 24 Offshore BlocksUnión Cuba-Petróleo (CUPET), Cuba’s state-runoil and gas firm, in partnership with BGP, ran apromotional event related to its 2019licensing round, alongside the EAGE conference.CUPET is offering up 24 offshore blocks inthe Cuban economic exclusive zone of the Gulfof Mexico.

The roadshow took place on June 3, at the Instituteof Directors, Pall Mall, London. The presentationsprovided an opportunity to review and discussthe exploration opportunities, the contractual andfiscal terms, and the legal framework for upstreampetroleum activities in Cuba. Data viewing wasavailable at the Aloft Hotel on June 5 and 6.

Offered blocks for the 1st Licensing Roundinclude 24 blocks associated with the highestexploratory potential geological scenarios.Classification criteria is based on availableinformation and data packages were available toregistered and qualified companies.

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All Four Rever VesselsDeployed in North SeaRever Offshore has deployed of all four of itsvessels in the North Sea since the start of April.The Rever fleet, which includes the saturationdive support vessels Rever Topaz, Rever Sapphireand Rever Polaris along with the heavyconstruction support vessel Normand Clipper,was fully employed for several key clients onprojects within the UK sector of the North Sea.

The Rever Polaris, which has recently completedan eight-week dry dock, and the Normand Clipper,have been working simultaneously on a largesubsea decommissioning scope recovering flexibleflowlines and various subsea structures. Prior tothis, the Normand Clipper was configured inconstruction mode where she successfullycompleted a multiple flexible flowlineinstallation project.

The Rever Topaz has been working on saturationdiving IRM scopes and has now commenced along-term commitment in the southern sector ofthe North Sea. The Rever Sapphire, having alsofocused on IRM scopes including sat diving, hasnow changed mode on to ROV survey andinspection works.

SBM Awarded More Liza ContractsSBM Offshore was awarded contracts for thenext phase of offshore Guyana’s Liza project byExxonMobil unit, Esso Exploration andProduction Guyana. Under these contracts, SBMOffshore will construct, install and thereafterlease and operate for up to two years the LizaUnity FPSO. This follows completion of FEEDstudies, receipt of requisite government approvalsand the FID on the project by ExxonMobil andblock co-venturers.

The Liza Unity FPSO design is based on SBMOffshore’s industry leading Fast4WardTM programas it incorporates the company’s new build, multi-purpose hull combined with several standardizedtopsides modules. The FPSO will be designed toproduce 220,000 bpd, will have associated gas

treatment capacity of 400 Mmcf/d and waterinjection capacity of 250,000 bpd. The FPSO willbe spread moored in a water depth of about 1,600meters and will be able to store around 2 millionbarrels of crude oil.

Saipem Wins NewContracts in Norway and MESaipem has been awarded contracts for offshoredrilling in Norway and the Middle East totalingover $100 million. One contract was signed withRepsol Norge AS for the drilling of a well foroperations in Norway expected to commence inQ3. Works will be executed by the sixth-generation semisubmersible rig Scarabeo 8.

Furthermore, Saipem has been awarded a newthree-year contract in the Middle East. Operationsare expected to begin in Q4 and involve the useof a high spec jack-up. For this project, a vesseloperated by Saipem will be utilized.

Sparrow Selects J.S.Technical as Agent in ThailandSparrows Group selected Thai service and supplycompany J. S. Technical Services Co., Ltd. (JST)to act as its sole agent in Thailand. The agreementwill create a partnership that can provide a broadrange of equipment and services to supportreliability and operational safety in the energy,industrial and renewable industries.

As part of the collaboration, JST will haveexclusive rights to supply Sparrows OriginalEquipment Manufacturer parts and componentsin Thailand. This includes all crane brands thatSparrows hold intellectual property rights for,such as American Aero, Houston System, BucyrusErie Marine, Weatherford and Energy Cranes.

As well as supplying parts and components, JST’sinfrastructure in the country will enable Sparrowsto provide crane management and operationsand maintenance; inspection, testing andcertification; design and engineering support; andequipment rental.

Tatweer and Total Sign MoUTatweer Petroleum-Bahrain Field DevelopmentCompany and Total E&P Activités Pétrolièressigned a MoU to cooperate in progressing oil andgas exploration opportunities, knowledge sharingand the supply of LNG to Bahrain. The signingtook place as part of an official visit to Franceby a high-level delegation from the Kingdom ofBahrain, led by His Majesty King Hamad bin IsaAl Khalifa, King of the Kingdom of Bahrain, tofurther enhance ties between the two countries.

Patrick Pouyanné, Total’s Chairman and CEO,signed the MoU in the presence of a number ofofficials from the National Oil and Gas Authority,Tatweer Petroleum, Total and CEOs of other oiland gas companies.

The MoU will allow for further discussion oncollaboration between Tatweer Petroleum andTotal, including sharing of experience, expertiseand support on ongoing exploration andproduction activities in the recently discoveredunconventional Khalij Al-Bahrain Basin, as wellas training and development of professionals fromTatweer Petroleum in the fields of LNG tradingand oil and gas exploration and production.

Siccar Point EnergyCompletes Blackrock WellSiccar Point Energy completed drilling theBlackrock exploration well 204/5b-2 in the Westof Shetland. The well was drilled with theDiamond Ocean GreatWhite semi-submersibleon License P1830 in 1,115meters of water, 10kmnorth of the Siccar Point operated Cambo field.

The well was targeting the intravolcanic PaleoceneFlett reservoirs of the Colsay Member which lieon-trend with equivalent oil filled sandstones inthe Rosebank field. The well encountered a34-meter gross package of intra-volcanic

siliciclastic sediments which contained anumber of thin oil-bearing sandstones from whichoil samples were obtained. Gas was alsoencountered in the overlying Hildasay supravolcanic Member.

The well proved the existence of intra-volcaniccharged reservoirs between the Cambo andRosebank fields. The well results will now beincorporated with existing regional data to betterdefine and target thicker reservoir packages.

CGG Launches First Multi-client OBNCGG launched its first multi-client ocean bottomnode (OBN) survey in the north-central regionof the Gulf of Mexico. This dense OBN surveywill provide well-sampled, full azimuthal coveragewith long offsets, to deliver exceptional data forimaging the geologically complex structures inMississippi Canyon.

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Acquisition services were provided by SeabedGeosolutions and the data will be processed byCGG Geoscience’s Subsurface Imaging inHouston. Implementation of CGG’s mostadvanced OBN processing techniques will providea fine-tuned velocity model and improveddefinition of drilling targets. Preliminary productswill be available in Q3 2019, and final productsare expected in Q1 2020.

Supported by industry prefunding, CGG’sMississippi Canyon Node survey paves the wayfor further CGG multi-client OBN surveys inthe future.

Gazprom Gets Approvalfor Kara Sea DiscoveriesIn Russia the Federal Agency for MineralResources approved the expert opinions of theState Reserves Commission with regard to thediscovery by Gazprom of new hydrocarbon fieldson the shelf of the Yamal Peninsula, namely theDinkov and Nyarmeyskoye fields.

The Dinkov field is situated within theRusanovsky licensed block in the Kara Sea. Thefield is unique in terms of gas reserves: itsrecoverable reserves in the C1+C2 categoriestotal 390.7 billion cubic meters.

The Nyarmeyskoye field is located in theNyarmeysky licensed block in the Kara Sea. Interms of gas reserves, it is a large field with therecoverable amount of 120.8 Bcm in the C1+C2categories

Vintage and FiretailEnter Heads of AgreementVintage Energy entered into a binding Heads ofAgreement with Firetail Energy Services that willmake Firetail a JV partner in the EP126 permitonshore Australia’s Northern Territory in theBonaparte Basin.

Under the terms of the agreement, Firetail willearn a 10% interest in EP126 through the provisionof $850,000 of services for the testing of Cullen-1, the total cost of which is currently estimated

at $3.2 million. This contribution by Firetail, andthe formation of the JV places considerable valueon the EP126 permit and its exploration potential.Vintage will retain a 90% interest in the permitand operatorship.

Firetail will add value to the JV through itsrelevant experience and access to equipment.

Subject to receiving all the necessary regulatoryapprovals, ministerial approval of the farm-inand satisfaction of conditions precedent, the JVplans to test the Cullen-1 well prior to the wetseason this year. This testing will take place overfour zones in a thick section of carbonates,which are interpreted to exhibit natural fracturesand vuggy porosity, an occurrence of large,irregularly shaped pore spaces that can reservoiroil and gas.

Encouraging gas shows were observed duringthe drilling of Cullen-1, which the previousoperator cased and suspended for future testing.A positive result from the test would likelylead to further seismic acquisition andexploration/appraisal drilling. The conditionsprecedent of title transfer registration (BeachEnergy to Vintage) and entering into a servicesagreement with Firetail, are expected to befulfilled shortly.

QP Awards McDermott FEED JobQatar Petroleuma warded the FEED contract forthe North Field Expansions offshore pipelinesand topsides facilities to McDermott Middle East.

The scope of this FEED includes engineeringdesign for eight unmanned wellhead platformtopsides, four 38” trunk lines and four 28”intra-field lines and is expected to take 12 monthsto complete.

22 Investors Enabled to Compete for20 Areas Offered by Columbia’s ANHAfter having been validated by the firm ‘Gestióny Auditoría Especializada S.A.S., independentauditor, the National Hydrocarbons Agency ofColombia published the final list of investors thatare enabled to compete for the 20 areas forexploration and production of hydrocarbons.These areas were released on February 21 duringthe launching of the Permanent Process of AreaAllocation (PPAA), for the first stage of 2019.

Among the qualified companies are operators ofrecognized trajectory in Colombia and in theworld, and the presence of two new players whoventure into the local market, with headquartersin the United States, stands out. These are the

companies Noble Energy and Hunt Overseas,who have expressed their interest in entering thenational market thanks to the investmentopportunities offered by the government ofPresident Iván Duque.

The audit study evaluated five aspects of theinterested parties, for purposes of shaping thefinal eligible list. The areas of study were: legal,financial, technical, environmental and socialresponsibility. Once this stage has beencompleted, the selected companies will be ableto participate in bidding for the 20areas that wereinitially offered.

The 20 areas of conventional deposits postulatedby the ANH for the first stage of 2019 correspondto an area of 1,418,000 hectares, 18 of which arelocated in the contintenal zone and two in theoffshore zone.

The short list of authorized investors canbe v i ewed a t f o l l owing t he l i nk :http://bit.ly/2MgufnK.

OMV PetromStarts Gloria DecommissioningOMV Petrom started the decommissioning of itsGloria offshore platform in Romania. The fieldreached the end of its economic lifetime limitafter more than four decades in service.

It is a complex process, which will be undertakenfor the first time in Romania. GSP Offshore, aRomanian company, has won the tender forremoval services, with an estimated value ofapproximately €5 million.

The company took the decision to decommissionGloria in 2018. Later in the same year, a tenderwas launched for the removal services which waswon by GSP Offshore. The decommissioningsolution consists of reinstating the platform jackingsystem, positioning the Gloria platform on a cargobarge and then transporting it to the shore.

The Gloria platform was the first offshore drillingplatform in Romania. It was commissioned in1976 and was built based on a license fromOffshore Co., USA.

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DNV GL Promotes Wind Turbines toPower Water Injection for Oil RecoveryDNV GL is urging offshore oil and gas operatorsto implement a new solution using floating windturbines to power water injection for oil recovery.‘WIN WIN’ (WINd powered Water INjection)was conceived in 2013 by DNV GL and is nowready for prototype development after two jointindustry projects have shown the concept to beboth cost efficient and technically feasible.

Water injection is an effective tool in exploitingoil reserves, but the process is often inhibited bythe high costs associated with large gas or dieselgenerators and complicated subsea infrastructure.By using a floating wind turbine, the WIN WINconcept allows the injection system to operateindependently, eliminating the need of longflowlines from the platform.

DNV GL has worked extensively with oil andgas companies since 2015 to bring the ‘WINWIN’ concept to prototype readiness. The firstphase of research explored the techno-economicfeasibility of the wind powered water injection,while the recently completed second stageinvolved advanced proof-of-concept lab tests. Inthe latest round of research, DNV GL conducteda joint industry project (JIP) with funding providedby ExxonMobil and Vår Energi AS. Jayme Meier,vice-president, ExxonMobil UpstreamResearch Company, says, “The completion ofphase 2 of the WIN WIN JIP drives us one stepcloser to a technically viable and commerciallydeployable system.”

ENI and ETAP Join Forces in SolarIn Tunisia, ENI inaugerated its Tatouine asset inthe south of the country. The site includes a PVplant with an installed capacity of 10 MW. Theproject, which was awarded to the ETAP-ENIconsortium following a public tender issued bythe Tunisian authorities in accordance with thecountry’s licensing regulations, will supplyelectricity to the state-owned company SociétéTunisienne de l'Electricité et du Gaz (STEG).The project will be carried out by a new jointventure between ENI and ETAP which focusesexclusively on the production of energy fromrenewables.

The plant, equipped with a solar tracking systemcapable of optimizing the energy produced, willprovide the national grid with more than 20GWh/year of electricity and saving a total of

about 260,000 tons of CO2 during its planned25 years of operation.

The Italian firm will also complete its constructionof the Adam solar PV field in Tataouine this year,which will have a maximum installed capacityof 5 MW, whose power will be used directly fromthe industrial site. The new site has been builtwith innovative hybrid and energy storagesystems that will be integrated into the plant’sexisting turbines, reducing gas consumption,operating costs and carbon dioxide emissions intothe atmosphere.

With these initiatives, ENI and ETAP demonstratethe i r cont inued commitment to thedecarbonization of the Tunisian energy systemtowards a low-carbon scenario.

DHYBRID to SupplyHybrid Power Plant in SenegalGerman hybrid specialist, DHYBRID, will supplyseven PV-diesel hybrid systems in remoteSenegalese locations with sophisticated hybridcontrol and energy storage systems. The totaloutput capacity is 2 MW and the storage capacity2 MWh. The plants will enable Senegal to supplypower for very isolated sites and to diversify itsenergy mix.

DHYBRID was selected by French EPC andmain contractor Omexom, the energy brand ofthe VINCI Energies Group.

The total project will generate enough power tocover the annual needs of 140,000 people andwill avoid atmospheric CO2 emissions amountingto up to 19,000 tons per year, equivalent to theemissions of a car driven 135 million km. It willbe part of a €26.8 million investment, financedby the German bank KFW and Senelec, thenational electricity company of Senegal, consistingof the hybrid sites and an additional 15 MWPV-installation.

The project sites will be spread over four largeregions: The Saloum Islands and the Thiès regionin the western part of the country and theTambakounda and Kolda regions in the east.DHYBRID will supply their proprietary UniversalPower Platform (UPP) – a modular and manufacturerindependent Energy Management System (EMS)and SCADA solution that will manage, controland monitor the interaction between dieselgenerators, PV inverter and energy storage systemto minimize the electricity costs and CO2 emissions.In addition to that, the German company will supplycontainerized Lithium-Ion energy storage systems,automatic generator controllers and the mainelectricity distribution panels.

Egypt Sees 6,000 MW from REEgypt successfully produced 6,000 MW ofelectricity from renewable resources, as it seeksto boost the renewable energy share in thecountry’s energy mix. Of the 6,000 MW ofrenewable energy power generated, 2,000 MWis generated by solar and wind farmsaccording to Mohamed El-Khayat, the ExecutiveChairman of the New and Renewable EnergyAuthority (NREA).

Through its 20 solar plants, the Benban solar parkhas been added to the national electricity gridwith a capacity of 900 MW, El-Khayat stated,adding that the total number of stations plannedto be built at Benban solar park stands at 32stations with a total capacity of 1,465 MW.

Egypt Considers Selling Power PlantsAccording to Mohamed Shaker, Egypt’s Ministerof Electricity, the government is consideringselling three recently built power plants to privateinvestors. “The negotiations are still in the earlystages,” Shaker told Reuters by telephone. Hedeclined to disclose further details.

The plants, tagged at the time as the world’sbiggest, were built by Siemens AG in a $6.7billion deal signed in 2015 and inaugurated byEgyptian President Abdel Fattah al-Sisi in July.Companies said to be interested in the plantsinclude the Blackstone Group and Edra PowerHoldings.

EDP and ENGIE Join Forcesto Create a Global Offshore Wind PlayerAntonio Mexia, EDP CEO and Chairman ofEDPR and Isabelle Kocher, ENGIE CEO,announced the signing of a strategic Memorandumof Understanding (MoU), to create a co-controlled50/50 joint-venture (JV) in fixed and floatingoffshore wind. The new entity will be theexclusive vehicle of investment of EDP, throughits subsidiary EDP Renewables (EDPR), andENGIE for offshore wind opportunitiesworldwide and will become a global top-5player in the field, bringing together theindustrial expertise and development capacity ofboth companies.

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Under the terms of the MoU, EDP and ENGIE,will combine their offshore wind assets and projectpipeline in the newly-created JV, starting with atotal of 1.5 GW under construction and 4.0 GWunder development, with the target of reaching5 to 7 GW of projects in operation or constructionand 5 to 10 GW under advanced developmentby 2025.

The JV will primarily target markets in Europe,the United States and selected geographies inAsia, where most of the growth is expected tocome from. The JV’s ambition is to be self-financed and the projects that will bedeveloped will respect the investment criteria ofboth companies.

This ambitious alliance follows EDPR andENGIE’s successful six-year cooperation asconsortium partners in the Dieppe Le Tréport andYeu Noirmoutier fixed offshore wind projects inFrance and Moray East and Moray West in theUK. EDPR and ENGIE are also partners in 2floating offshore wind projects in France andPortugal and in the Dunkerque offshore windtender currently ongoing in France.

Ethiopia Rations Power,Suspends Electricity ExportsDue to a drop in water levels in Ethiopia, thecountry has started to ration electricity fordomestic and industrial customers. Minister forWater and Electricity, Seleshi Bekele, said thedrop in water levels at the country’s Gibe 3 damhad led to a deficit of 476 MW. Speaking at anews conference, Seleshi said that the deficit wasmore than one-third of the country’s electricitygeneration of 1,400 MW.

In addition to rationing domestic supplies, Ethiopiahas also suspended electricity exports toneighboring Djibouti and Sudan. The rationingprogram will run until July.

Power Africa Supports121 Power Generation ProjectsThe US’ Power Africa Initiative is currentlysupporting 121 power generation projects, witha total capacity of 10,000 MW. This support isprovided by technical and financial experts whohave brought their experience to mobilize thenecessary funds for these various initiatives.

A total of 160 institutional and individual partnersare involved in this project, which was launchedin 2015. These include US government agencies,the African Development Bank and the UnitedStates, United Kingdom, France, Japan, Korea,Israel and Sweden, to name a few.

“Our role, as we see it, is to support the privatesector in removing the various barriers toelectrification. One of our recent successes hasbeen to bring energy to 500,000 people in Nigeriafor the first time,” said Andrew Herscowitz, theproject coordinator.

Launched in 2015, Power Africa aims to facilitatethe installation of 30,000 MW of new powerplants on the continent, by 2030, reaching 300million people.

Geothermal for EthiopiaReykjavik Geothermal will undertake ageothermal energy project in Ethiopia. Thecompany is about to start drilling in the localitiesof Corbetti and Tulu Moye.

The two power plants are planned to be locatedin these zones, each will have a capacity of500 MW, which will make the company the leaderin the geothermal energy sub-sector in the country.The first phase of these projects will allow theinstallation of 50 to 60 MW of capacity on eachsite. It will cost $175 million per site, which hasalready been mobilized by the RG and its partners.

ExxonMobil Partners with NREL andOthers to Advance Energy TechnologiesThe US’ National Renewable Energy Laboratory(NREL) and ExxonMobil have partnered up. Thetwo signed a $100 million agreement that hasExxonMobil funding the partnership with NREL,the National Energy Technology Laboratory(NETL), and other US Department of Energylaboratories over a 10-year span.

The partnership will focus on “developingtransformative advanced energy technologieswith a focus on reducing emissions,” NRELdirector Martin Keller said. Keller further added,“What excites me is that there are differentmindsets coming together and, in my view, thebreeding ground of tremendous breakthroughideas.”

ExxonMobil’s commitment is “the largest singleexternal investment in research at NREL in thelaboratory’s history.”

The agreement will foster research collaborationon projects with the potential to move beyondthe laboratory, improving energy efficiency andreducing emissions on a global scale.

“The partnership with the national labs reallygoes back to the fundamental challenge that we’refacing as a society, which is: How do you providescalable energy to 9 billion people whileaddressing the risks of climate change?” saidVijay Swarup, vice president of research anddevelopment at ExxonMobil Research andEngineering Company.

Sharm El Sheikh’sFirst Solar Plant CommissionedSchneider Electric commissioned the very firstsolar power plant in the Egyptian Red Sea townof Sharm el Sheikh. The plant has a capacity of5 MW. The company worked on the project withIntro Energy and Gila AlTawakol Electric, localcompanies that act as lead developer, site layoutmanager and co-developer respectively. Schneideris involved in this project as a technical partner.Expansion work is already underway to increasethe capacity of the Sharm el Sheikh solar park to40 MW.

The entire installation will operate with a digitalmanagement solution from SchneiderElectric, including “EcoStruxure”. It is an open,interoperable, ready-to-use and IoT compatiblearchitecture and platform that optimizes carbonfootprint by up to 50% and engineering costs andlead times by up to 80%.

Aggreko Installs PowerPlant in Burkina FasoIn Burkina Faso, power generation is beingboosted by an additional 50 MW provided by atemporary plant installed by Aggreko. Theestablishment of the temporary power plant cameat cost of about $90 million.

In addition to this additional solution, thecountry has started construction of a 50 MWpower plant in Kossodo and a 150 MW powerplant in Ouaga East.

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Transcorp Wins Bid for Afam Power PlantTranscorp, owned by Nigerian businessman TonyElumelu, was successful with its offer for Afam,which operates a natural-gas fired power plantin Nigeria’s southern Rivers state. Elumelu saidin a statement that he plans to invest as much as$2.5 billion in power projects in Nigeria.

Nigeria broke up its state-owned powermonopoly in 2013 and began selling distributionunits and the hydro- and natural gas-poweredplants it ran to attract investment needed toexpand supplies. Companies includingTranscorp, Korea National Electric Co. and ForteOil Plc have paid more than $3 billion forcontrolling interests in 15 power generators anddistributors.

Namibia to Get Floating Solar PlantIn Namibia, independent power producer DroegeEnergy will establish a floating solar power plant

on Lake Malawi. The solar plant, which will havea capacity of 20 MW, will be the first of its kindin the country.

Droege also signed a contract to buy productionfrom a wind farm. The Mphamvu Mzimba windfarm will have a capacity of 50 MW.

These projects are part of the 14 power purchaseagreements signed by Namibia’s ElectricalRegulatory Authority to increase the country’spower generation capacity.

In total, the national power sector has 20 contractswith independent generators that will build plantswith a combined capacity of 367 MW.

Total Starts Solar Production in JapanFrench oil firm Total started commercialoperations at its 25 MW-peak solar power plantin Miyako, Japan. Miyako is located on Japan’s

Honshu Island. The plant was completed twoyears after construction began and will produceenough energy to power over 8,000 Japanesehouseholds.

“We are proud of the successful start-up of oursecond solar power plant in Japan. The successof the Miyako project is fully in line with ourambition to develop low-carbon electricityworldwide,” said Julien Pouget, senior VPRenewables at Total.

The solar power plant is designed to fully meetJapan’s stringent earthquake-resistant buildingstandards. The facility is operated with nearly77,000 high-efficiency SunPower solar panels,ensuring the highest performance in difficultweather conditions, including snow and lowtemperatures. The plant is connected to theelectricity distribution grid to supply energythrough the regional utility company.

Page 48: Contentsengineering roles for Chevron and Hilcorp Energy Company. Geoquip Marine appointed Jean-Luc Laloe to its board of directors. Laloe has close to four decades of experience in

Petroleum Africa May/June 201948

FACTS AND FIGURESSo

urce

: BH

GE

*Data not available

Vari

ous

sour

ces

incl

udin

g E

IA, I

EA

and

OPE

C

Country

African Rig Count

AlgeriaAngolaBeninCameroonChadCongoCongo (DRC)Cote D’IvoireDjiboutiEgyptEquatorial GuineaEthiopiaGabonGhanaGuineaKenyaLiberiaLibyaMauritaniaMoroccoMozambiqueNamibiaNigerNigeriaSenegalSierra LeoneSouth AfricaSudan*TanzaniaTogoTunisiaUganda

2019

5150273112

240263070

1501001

1400000020

May

* Based on secondary sources

Sour

ce: O

PEC

Country

OPEC Oil Production

AlgeriaAngolaCongoEcuadorEquatorial GuineaGabonIran, I.R.IraqKuwaitLibyaNigeriaSaudi ArabiaUAEVenezuelaTOTAL OPECOPEC exluding Iraq

10131413335528110186

2554463026971176181997423060768

3003125531

April

(Thousand Barrels/Day*)

Country

Africa Productionof Crude Oil

AlgeriaAngolaCameroonChadCongo (Brazzaville)Congo (Kinshasa)Cote d’Ivoire (Ivory Coast)

EgyptEquatorial GuineaGabonGhanaLibyaMauritaniaMoroccoNiger NigeriaSouth AfricaSudan and South SudanTunisiaTotal Africa

10131413

751113351927

650110186124

11760

0.520

18192.518849

7318

April

(including Lease Condensate, Thousand Barrels/Day)

Sour

ce: I

EA

Oil

Mar

ket R

epor

t

Country

AmericasCanadaChileMexicoUnited StatesAsia OceaniaAustraliaOthersEuropeNorwayUKOthersTotal OECDTotal Non OECD

23.764.930.011.93

16.890.470.4

0.063.381.731.170.48

27.6131.05

April

World Oil Production(million barrels per day)

2019

2019

2019

10191454

761083442028

650120211122

11050

0.520

17283

18048

7236.5

March

10261448

791033212028

639121185125902

00.520

17233

17748

6968.5

February

10191454344528120211

2718451727071105172897873057740

3003425534

March

10261448321524121204

272646472709902

17231011830681021

3055825911

February

5250273112

250273080

1501001

1400000020

April

5250273112

270273080

1501001

1400100020

March

24.015.280.011.94

16.780.460.4

0.063.451.781.180.49

27.9331.36

March

23.475.140.011.93

16.380.480.410.063.531.821.2

0.5127.4831.43

February

Page 49: Contentsengineering roles for Chevron and Hilcorp Energy Company. Geoquip Marine appointed Jean-Luc Laloe to its board of directors. Laloe has close to four decades of experience in

Petroleum Africa May/June 2019 49

www.petroleumafrica.com

International Rig CountsAREA Last Count

USCANADAINTERNATIONAL

Count Change FromPrior Count

Date ofPrior Count

Change fromLast Year

Date of LastYear’s Count

June 7, 2019June 7, 2019May, 2019

975103

1,126

-91864

May 31, 2019May 31, 2019

April, 2019

-87-9

159

June 8, 2018June 8, 2018May, 2018

737271706968676665646362616059585756555453525150

May 21Henry HubNew York

May 23Henry HubNew York

May 29Henry HubNew York

May 31Henry HubNew York

June 04Henry HubNew York

June 06Henry HubNew York

June 10Henry HubNew York

2.732.64

2.562.59

2.692.62

2.592.46

2.452.41

2.402.32

2.422.35

Dollars per BTU

Dat

a co

mpi

led

by P

etro

leum

Afr

ica

from

var

ious

sour

ces i

nclu

ding

OPE

C, E

IA a

nd o

ther

s

May 21OPEC BasketBrent CrudeNymex

May 23OPEC BasketBrent CrudeNymex

May 28OPEC BasketBrent CrudeNymex

May 31OPEC BasketBrent CrudeNymex

June 04OPEC BasketBrent CrudeNymex

June 06OPEC BasketBrent CrudeNymex

June 10OPEC BasketBrent CrudeNymex

$71.7172.9463.13

68.5668.3757.91

68.8470.1959.14

64.1566.7853.50

61.6363.5653.48

60.8862.7752.59

63.0164.3153.26

OPEC Basket Brent Crude NymexOil Prices

Gas PricesSpot Price Futures Price*

2.50

4.00

2.00

3.00

3.50

Ma

y 28

Ma

y 31

June

06

June

10

June

04

Ma

y 21

Ma

y 23

$

Ma

y 29

Ma

y 31

June

06

June

10

June

04

Ma

y 21

Ma

y 23

Ma

y 29

Ma

y 31

June

06

June

10

June

04

Ma

y 21

Ma

y 23

Ma

y 28

Ma

y 31

June

06

June

10

June

04

Ma

y 21

Ma

y 23

Ma

y 28

Ma

y 31

June

06

June

10

June

04

Ma

y 21

Ma

y 23

Page 50: Contentsengineering roles for Chevron and Hilcorp Energy Company. Geoquip Marine appointed Jean-Luc Laloe to its board of directors. Laloe has close to four decades of experience in

Petroleum Africa May/June 20195050

CONFERENCES

AD INDEX

ADIPECAfrica Oil & PowerAlternative Energy AfricaAMI InternationalCWC GroupDreg Waters Petroleum & Logistics

219

417

IFCIBC

EnergyNetEuroconvention GlobalLayherOil & Gas EurasiaPetroleum Africa MagazineVale Media Group

4731

BC11

5, 15, 19, 2637

JUNE 20194-5 Accra, Ghana www.bit.lyOffshore Well Intervention – West Africa

4-6 Luanda, Angola www.africaoilandpower.comAngola Oil & Gas 2019

11-13 Dakar, Senegal www.ametrade.org17th Edition SIEPA – Senegal 2019

OCTOBER 2019

9-11 Cape Town, South Africa www.africaoilandpower.comAOP 2019 (Africa Oil & Power)

NOVEMBER 2019

26-27 Malabo, Equatorial Guinea www.yearofenergy2019.comGECF 5th Gas Summit

DECEMBER 20194-5 London, UK www.ami.internationalOil & Gas Non-Metallics 2019

11-13 Dakar, Senegal www.ametrade.org17th African Energy and Petroleum Summit (SIEPA)

1-3 Brazzaville, Congo www.ametrade.orgCongo International Oil & Conference and Exhibition (CIEHC 2019)

7-9 Amsterdam, The Netherlands www.offshore-energy.bizOffshore Energy Exhibition & Conference

10-11 Accra, Ghana www.ametrade.org3rd Africa Oil & Gas Local Content & Sustainability Summit

15-17 Alexandria, Egypt www.moc-egypt.comMOC 2019 (Mediterranean Offshore Conference & Exhibition)

11-14 Abu Dhabi, UAR www.adipec.comADIPEC 2019

17-17 London, UK www.africaoilandpower.comLondon Investor Forum 2019

18-20 Dakar, Senegal www.upstreamwestafrica.com5th Annual Upstream West Africa 2019

JULY 20191-4 Abuja, Nigeria www.cwcnog.comNigeria Oil & Gas 2019

29-31 Cape Town, South Africa www.ssapower.com5th Annual Southern Africa Power Summit 2019

10-11 Bahrain www.bbtc-mena.bizBBTC MENA 2019 – Bottom of the Barrel Technology Conference

10-12 Muscat, Oman www.mealf.net9th Middle East Artificial Lift Forum (MEALF 2019)

MARCH 202015-17 Oran, Algeria www.napec-dz.comNAPEC - North Africa Petroleum Exhibition & Conference

Page 51: Contentsengineering roles for Chevron and Hilcorp Energy Company. Geoquip Marine appointed Jean-Luc Laloe to its board of directors. Laloe has close to four decades of experience in
Page 52: Contentsengineering roles for Chevron and Hilcorp Energy Company. Geoquip Marine appointed Jean-Luc Laloe to its board of directors. Laloe has close to four decades of experience in

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