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Total’s South Africa gas discovery first step towards exploiting the country’s full hydrocarbons potential

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SA Energy Minister Jeff Radebe. Image: African Energy Chamber

The discovery, which will help open a new hydrocarbons province in South Africa, could prove the presence of billions of barrels of oil equivalent in South African waters

JOHANNESBURG, South Africa, February 7, 2019/ — Gas discovery in the offshore Outeniqua Basin speaks to South Africa’s hidden oil & gas potential; gives an opportunity for a meaningful dialogue on attractive legislation and local content development.

The African Energy Chamber (AEC) (EnergyChamber.org) welcomes the recent gas condensate discovery by Total in Block 11B/12B, 175km off the southern coast of South Africa. This is a great first step for the country which still relies on imports of oil and gas despite the great reserves believed to be in its soil and waters.

The discovery, which will help open a new hydrocarbons province in South Africa, could prove the presence of billions of barrels of oil equivalent in South African waters, which will undoubtedly change the course of the country’s economy and help reduce dependency on imports.

“The oil industry hopes this will be a catalyst and encouragement for all policy makers to work on an enabling business environment for exploration and drilling activities in South Africa,” declared NJ Ayuk, Executive Chairman at the Chamber.

“We believe South Africa holds the potential for many more such discoveries, and the time has come to have a meaningful conversation on local content development so the development of the industry benefits all South African workers and contractors across the value-chain and creates jobs for the communities.”

The gas discovery is a timely one as the South African government is currently working on a new legislation separating oil and gas from traditional minerals, and has released last year a new Integrated Resource Plan (IRP 2018) which ambitions to install an additional 8,100MW of gas-to-power capacity in South Africa by 2030.

It further echoes increased engagement of the South African government with the African and global oil industry. Since being appointed Energy Minister in 2018, Jeff Radebe has been leading a strong South African outreach to oil markets in Africa like Nigeria, Equatorial Guinea, Angola, South Sudan, many middle eastern producers and attending meetings of the Organization of Petroleum Exporting Countries (OPEC) in Vienna and seeking deals for state-owned South African companies such as the Central Energy Fund and PetroSA.

“Oil companies want to see leadership and sound governance wherever they invest,” added NJ Ayuk. “With South Africa demonstrating a commitment to reforms and the creation of an enabling environment for business, the oil industry is confident that the country can attract the investment needed.”

Distributed by APO Group on behalf of African Energy Chamber.

Oil and Gas

Shell, Partners Sign 300 Million Cubic Feet Gas FID

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The Shell Petroleum Development Company of Nigeria Limited (SPDC) and its joint venture partners signed a Final Investment Decision agreement for a 300 million cubic feet of gas on Wednesday in Abuja at a ceremony witnessed by the Managing Director of Total Exploration and Production Nigeria Limited, Mr. Nicholas Terraz and the Managing Director of Nigeria Agip Oil Company Limited, Mr. Lorenzo Fiorillo.

SPDC had announced taking FID last December on the Assa North Gas Development Project which is one of the Seven Critical Gas Development Projects of the Federal Government. The project, located in south-eastern Imo State, aims to position Nigeria as a regional hub for gas-based industries while complementing Federal Government’s aspiration for gas sufficiency for domestic consumption, power generation, and gas-based ammonia and urea fertilizers for farmers.

At peak production, the project is expected to produce 300 million standard cubic feet of gas per day and will be treated at SPDC JV’s Gas Processing Facility and distributed through the Obiafu-Obrikom-Oben pipeline network.

Speaking at the FID agreement-signing ceremony, Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Dr. Maikanti Baru, described the project a major investment towards fulfilling the domestic gas aspiration of the Federal Government, adding that the corporation was excited at the progress with the project and would provide the needed support to ensure first gas production as soon as possible.

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Baru, who was represented by NNPC Chief Operating Officer Upstream, Mallam Rabiu Bello, said, “The NNPC Project Management Board would work hard to ensure progress having provided the necessary approvals and enablers,” adding on successful completion, the project would translate into huge social-economic benefit to Nigerians.

Also speaking, Managing Director of SPDC and Country Chair, Shell Companies in Nigeria, Mr. Osagie Okunbor, described the progress with the FID as good news for the SPDC JV and Nigeria for the accelerated growth of the domestic market and optimisation of SPDC’s onshore footprints.

Okunbor said, “The project is key to driving the Federal Government of Nigeria’s ambition of marching away from a mono-economy through diverse industrial growth. It is premier amongst the Seven Critical Gas Projects initiative led by the Ministry of Petroleum and the Nigerian National Petroleum Corporation (NNPC). Their integrated focus, support and drive were instrumental to this investment decision.

“SPDC JV would continue to explore other areas of support for the expansion of domestic gas supply and continue to make investments under the right conditions.”

SPDC had earlier signed a Global Memorandum of Understanding with the clusters of host communities of the Assa North project for community development projects in addition to some other community initiatives already executed by the company ahead of construction work.

SPDC is the operator of a Joint Venture involving NNPC, which holds 55%; Shell 30%; Total Exploration and Production Nigeria Limited (TEPNG)10%; and Nigeria Agip Oil Company Limited (NAOC) 5%.

– SPDC

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Oil and Gas

Egypt, Lebanon in talks over petroleum, gas cooperation

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Natural gas pipelines – Reuters

CAIRO: 31 January 2019: Petroleum Minister Tarek el Molla discussed on Thursday with his Lebanese counterpart Cesar Abi Khalil ways of boosting bilateral cooperation in the petroleum and gas domains.

In a statement, Molla reiterated distinguished relations binding Egypt with Lebanon, expressing Egypt’s readiness to offer all forms of assistance to Lebanon in the petroleum and gas domains.

Molla said talks tackled regional cooperation in the natural gas domain and Egypt’s role in the eastern Mediterranean gas forum, that was held in January.

Talks also tackled the possibility of training Lebanese cadres in Egyptian training centers.

The Lebanese minister expressed his country’s desire that Egypt would resume pumping natural gas to Lebanon as part of the 2009 contract signed between the two sides.

– EGYPT TODAY

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Oil and Gas

South Sudan enters into an Agreement with the African Energy Chamber to provide Technical Assistance to its Petroleum Sector

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This technical assistance will support South Sudan in building an enabling environment for business and a world-class oil industry for the benefits of all citizens and investors

JUBA, South Sudan, January 30, 2019/ — The Chamber will mobilize capacity building initiatives; it will work on reforms to boost an enabling environment for oil investors; it will invest in energy access initiatives.

The African Energy Chamber (EnergyChamber.org) has entered into a technical assistance cooperation agreement with the Ministry of Petroleum of the Republic of South Sudan to strengthen the country’s capacity to manage its hydrocarbons sector and wealth.

South Sudan has over the past year demonstrated a commitment to peace, which gives the country an opportunity to build long-lasting economic development and strengthen its engagement with the regional and international investment community.

The energy sector is the pillar of the country’s economic growth. As oil and gas exploration and production activity continues to picks up steam in South Sudan, there is growing need to increase the  level of local expertise required to manage the petroleum sector sustainably, push for rural energy access, and create long-lasting economic empowerment and sustainable development projects.

As a leading advocate of the African energy industry with  institutional and corporate partners that have significant experience in Africa’s oil & gas sector, the Chamber will mobilize the oil and gas community to provide technical assistance to the South Sudanese government.

“We continue to do a remarkable job when it comes to oil field resumption. We are seeing an increase in production. However, capacity building programs are needed to have our citizens work and manage our oil resources properly. We welcome the support of the oil sector through the African Energy Chamber in its collaboration with our country,” declared Hon. Ezekiel Lol Gatkuoth, Minister of Petroleum in South Sudan. “This partnership with the African Energy Chamber once again proves the high level of trust and genuine cooperation that is needed to develop our country. Guaranteeing energy access is important for every South Sudanese in our march towards economic growth.”

This technical assistance will support South Sudan in building an enabling environment for business and a world-class oil industry for the benefits of all citizens and investors. Under the agreement, the Chamber will be conducting an immediate needs assessment of South Sudan’s oil and gas sector, detailing the key institutional and policy reforms required to strengthen capacity across the country’s value-chain. The Chamber will also work on key energy access initiatives and mobilize financing for South Sudan.

South Sudan is East Africa’s only mature oil producer so the interest of oil companies to invest in the market as it puts back damaged field into production is increasing,” declared NJ Ayuk, Executive Chairman at the African Energy Chamber.

“Now is the time for the oil industry to rally around South Sudan’s efforts to build a sustainable hydrocarbons sector whose revenues equitably benefit all South Sudanese. The strengthening of South Sudan’s oil sector is a priority as it will provide a pillar for the development of East Africa’s entire energy value-chain.”

Distributed by APO Group on behalf of African Energy Chamber.

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