Ghana’s Energy Commission has granted the Electricity Company of Ghana (ECG) the Electricity Brokerage Licence to enable it to sell electricity in bulk to consumers after the earlier license issued to Power Distribution Services (PDS) was canceled.
A statement issued by the Board of the Energy Commission said PDS and ECG were to facilitate a smooth transition process to ensure that customers were not adversely affected.
It said the Commission, therefore informs the public that based on communication from ECG, the Demand Guarantees submitted by PDS to ECG in respect of the Lease and Assignment Agreement (LAA) between the two companies were null and void.
It said the Commission per the provisions of Section 19 of the Energy Commission Act, 1997 (Act 541), has canceled the Electricity Distribution Licence No. EC/EDL/02-19001 and the Electricity Sale Licence No. EC/ESL/02-19-001 issued to PDS with effect from 23rd October 2019.
PDS was in July 2019 found to have presented invalid insurance security for the takeover of ECG assets.
The company was initially supposed to furnish the ECG with payment securities in the form of either a demand guarantee or a letter of credit issued by a bank.
The insurance guarantee came about because of difficulties experienced with raising a bank guarantee.
PDS appealed to use a demand guarantee issued by an A-rated insurance company.
PDS thus submitted the Payment Securities in the form of demand guarantees issued by a Qatari insurance firm, Al Koot Insurance, and Reinsurance, which eventually became the source fraud after it was discovered that there were fabricated letters and forged signatures.
The government also noted that Al Koot could not engage in such a transaction-based on its net worth.
The company was also not authorized to issue demand guarantees.
EC_Public Notice-071019_PDS ECG_25.10
Republic of Ghana, United States of America (USA), Belgium, United Kingdom, Canada, Nigeria, as well as India, have made it to the top seven topmost countries among 153 countries where most people visit energynewsafrica.com.
Netherlands, Germany and Norway followed 8, 9 and 10th position respectively.
Established in February this year by Michael Creg Afful, Head of Energy desk at the Accra-based Oman FM, energynewsafrica.com has witnessed a huge patronage with over 31,000 people visiting the website.
The website has also recorded about 55,000 views.
Among the stories that pulled huge number of people are: ‘Breaking News: Twelve days’ load shedding begins today’-7, 616 people; ‘PDS finally releases load shedding timetable’-2, 840 people and ‘Breaking News: GRIDCo’s Transmission Tower Hacked Down’- 1,885 people.
The website was officially launched on Wednesday, October 30, 2019, at the British Council, Accra, the capital of Ghana, West Africa.
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Ghana’s first online portal solely dedicated to the energy sector has been launched in Accra, capital of Ghana, West Africa.
The launching which took place at the British Council Auditorium brought together some industry players.
The objectives of energynewsafrica.com among other things is to disseminate relevant information and happenings in energy sector to industry players in Africa and beyond.
Launching the online portal, the Executive Secretary for the Public Utilities and Regulatory Commission (PURC), Madam Mami Dufie Ofori called on energy sector players to help the website to succeed on its mandate.
She applauded the efforts of Mr. Michael Creg Afful for the creation of a website solely for the dissemination of energy news internally and beyond.
She encouraged management of the portal to always portray Ghana and Africa in their reportage so as to sell the energy prospects in the continent to the outside world.
She however cautioned the managers of the portal led by Michael Creg Afful to ensure that all news contents are carefully verified before they are put into the public domain to ensure Credibility and originality.
The former Energy Commission’s Director, Dr. Ampofo was optimistic the website will be a resource tool for energy sector players, researchers and students.
People and industries in the sector will always rely on Energy News Africa portal for vital energy information, Dr. Ampofo emphasised.
Michael Creg Afful, Editor of energynewsafrica.com taking the audience through the performance of the website
He added that the portal has come at an appropriate time and that the future looks very bright for Michael and his team members if they managed the portal very well.
“We must also look at how we manage the financial aspects such as advertisements and subscriptions to ensure its effectiveness and sustainability,” he advised.
To this end, Dr. Ampofo called on energy sector organisations to advertise on the portal so as to help sustain the media organisation.
On his part, Mr. Michael Creg Afful, admitted challenges in coming up with the website but was quick to expressed their determination and resolve to succeed with or without challenges.
He added that the idea of coming up with the website came from the PURC Executive Secretary and was thankful for her advise.
A representative from Institute for Energy Security (IES), applauded the creation of the website and requested for the posting of upcoming events and programs in the energy and power sectors on the website to help increase its viewership.
A former Chairman of Ghana’s Energy Commission, has underscored the need for players in Ghana’s energy sector to pool resources to support the sustainability of energynewsafrica.com.
This, he said, is very important in order to get industry players constantly informed of latest happenings in the industry.
In a brief remarks at the launching of energynewsafrica.con in Accra, the capital of the West African country, he said “a laudable project like this, aimed at championing our area of speciality needs the financial support to grow it.”
Dr. Ampofo who is the Chairman of Ghana Energy Awards commended the Publisher and Managing Editor of energynewsafrica.com, Michael Creg Afful, for his dedication and specialising in energy reporting.
“It’s an area with rare reporters and we, as industry players, are happy we have a reporter who has specialised in energy reporting,
Source: www.energynewsafrica.com
Ghana’s Minister for Finance, Ken Ofori-Atta believes economic and political ties between Ghana and the US government won’t be affected despite the termination of the concession agreement signed between the Power Distribution Services (PDS) Ghana Limited and Electricity Company of Ghana (ECG).
According to the Minister, the relationship between the two countries goes beyond differences over how the power deal should be structured.
“The Republic of Ghana and the United States of America are truly long-term partners with a shared vision of a Ghana Beyond Aid and the USA’s principle of a ‘Journey towards Self-Reliance’,” he said.
He also noted that the relationship between Ghana and the US was anchored by the emergence of Ghana as a pillar of stability in West Africa and on the African continent.
Mr Ofori Atta added that “there are periods that we will have differences, but does not mean you don’t remain as partners.”
Ken Ofori-Atta also argued that other financial commitments and technical support would not be affected.
The minister also disclosed that the cancellation of the remaining funds under the Millennium Challenge Compact could have any negative impact on the budget, adding that the government would explore other measures to deal with the expected funding gap as a result of this cut in financial support.
The Finance Minister also disclosed that the government was working to present an action plan on a new private sector participation in ECG by November 15 2019.
Mr Ofori-Atta added that they are working hard to ensure that they avoid the challenges that confronted the PDS concession while looking at instituting a broad Ghanaian institutional participation.
He added that there are plans to explore shared ownership, with the plan of listing it on Ghana Stock Exchange.
The Finance Minister gave the assurance that whatever plan would come out next month will be accepted by all stakeholders and would be in the interest of Ghana.
Background
The government last week announced the cancellation of the PDS concessionaire over what it describes as challenges with the financial guarantee provided for the deal.
However, this has not gone down well with the US government.
The US government has maintained there was nothing wrong with the deal. This forced them to cancel the remaining $190 million that Ghana could have drawn down through the Millennium Development Authority (MiDA) for supporting the energy sector.
Spokesperson at the Embassy, Naomi Mattos, recently told Accra based Joy FM, that the first statement issued by the American government established that Meralco be maintained in the deal was the outcome of its series of meetings with Ghana government officials.
The government signed a concession agreement with PDS in March 2019, handing over more than GH¢22 billion in assets of the Electricity Company of Ghana (ECG).
But by July 2019, PDS was suspended after the government said, per contract terms; it failed to provide demand guarantees as proof of its financial ability to run ECG.
The US administration has announced plans to assist Africa advance economic prosperity and energy development across the continent without saddling them with unsustainable debt, or imperil their long-term economic development or their sovereignty.
The US administration launched its Prosper Africa initiative in 2018, with the vision to open markets for American businesses, grow Africa’s middle class, promote youth employment opportunities.
The initiative also aims to improve the business climate and enable the US to compete with China and other nations who have business interests in Africa.
The $50 million programme will offer technical help to companies looking to enter or grow in Africa, which is urbanising more rapidly than anywhere else on Earth.
The region is projected to have 1.52 billion consumers by 2025 — nearly five times the size of the US population.
A continued priority for the US Department of Energy is now looking towards Africa to develop opportunities in the exploration, production and monetization of liquefied natural gas (LNG).
In the words of Energy Secretary Rick Perry, “increased amounts of US LNG on the world market benefit the American economy, American workers, and consumers and help make the air cleaner around the globe.”
Biggest LNG project in Africa
When it comes to the oil and gas sector American corporations are already very active on the continent.
Earlier this year Texas energy company Anadarko Petroleum gave the green light to start building a $20 billion gas liquefaction and export terminal in Mozambique — the biggest such project ever approved in Africa.
To further this policy assistant secretary for fossil energy, Steven Winberg, will join over 25 Pan-African ministers at the Africa Oil Week summit in Cape Town this November.
Winberg will use the event to share US energy policy points with the continent and outline a vision for deeper US commitment to Africa in the oil, gas and power sectors.
According to the event organiser, this vision looks set to encompass increased two-way trade and investment between the US and Africa, with the US making potential capital available on joint-ventures and to part-finance LNG infrastructure for energy-lacking African countries.
Winberg said: “We want our friends and partners in Africa to thrive, prosper, and control their own destinies. And we welcome the opportunity to share with them not only our abundant energy resources, but also the knowledge and technologies that can help them develop their own resources.”
ABB has been selected by energy companies SSE Renewables and Equinor to supply its high-voltage direct current (HVDC) Light converter systems to connect the world’s largest offshore wind farms in the Dogger Bank region of the North Sea to the UK transmission network.
In the first ever use of the HVDC technology in the UK’s offshore wind market, ABB will supply technology with one of the smallest environmental footprints, due to the most compact station design combined with the lowest energy losses in the power industry.
ABB will supply the HVDC Light converter systems, while Aibel will deliver two HVDC offshore converter platforms. In 2016, ABB and Aibel announced their partnership on the design, engineering and optimization of offshore wind connections.
“Winning the contracts from SSE Renewables and Equinor for the landmark Dogger Bank project underscores ABB’s innovative offshore wind technology and expertise. It also highlights the success of ABB Power Grids’ customer partnerships, both on design optimization as well as on the business model level,” Claudio Facchin, President of ABB’s Power Grids business said.
“ABB is committed to delivering sustainable solutions with pioneering technologies and in the Dogger Bank project we are helping to make offshore wind competitive and thus contributing to a stronger, smarter and greener grid.”
On his part, Paul Cooler who is the director of capital projects at SSE Renewables, said: “Dogger Bank is truly a world-leading project, pushing new boundaries in the provision of ground-breaking technology to deliver low-carbon energy generation to help achieve the UK’s net zero ambition by 2050. The appointment of Aibel and ABB as project partners will ensure that the latest grid solution technology is deployed to support our successful project delivery.”
“This is an important milestone for Dogger Bank with a groundbreaking HVDC technology solution enabling a competitive solution for offshore wind at a long distance from shore. This will be the first offshore HVDC solution in the UK which opens up new markets and opportunities. The appointment of Aibel and ABB demonstrates cross industry collaboration bringing best expertise into a successful Dogger Bank delivery,” Halfdan Brustad, vice president for Dogger Bank at Equinor said.
The Dogger Bank development consists of three wind farm projects – Creyke Beck A and B, and Teesside A. It will significantly contribute towards the UK government’s goals of sourcing up to a third of its electricity from offshore wind by 2030. ABB has been awarded contracts for Creyke Beck A and Creyke Beck B.
According to the International Energy Agency (IEA), global offshore wind capacity may increase 15-fold and attract around $1 trillion of cumulative investment by 2040. This is driven by increased competitiveness, supportive government policies and some remarkable technological progress.
Commercial HVDC technology was pioneered by ABB more than 60 years ago. It is a highly efficient alternative to alternating current (AC) for transmitting large amounts of electricity with higher efficiency and lower electrical losses. HVDC contributes to the secure and stable transmission of power across networks that operate on different voltages and frequencies. This makes the technology suitable for many key power applications, enabling the integration of renewable energy from offshore wind farms and interconnections with AC networks.
Total has signed an agreement to sell wholly owned subsidiary Total E&P Deep Offshore Borneo BV — which holds an 86.95% interest in Block CA1, located 100 kilometers off the coast of Brunei — to Shell1 for $300 million.
The transaction is subject to approval by the competent authorities and is expected to close by December 2019.
“This transaction fits with our strategy of actively managing our portfolio and will contribute to our program to dispose of $5 billion of non-core assets over the period 2019-2020,” Arnaud Breuillac, president exploration & production at Total said.
Block CA1 covers 5,850 square kilometers, with water depths ranging from 1,000 to 2,500 meters. Total currently operates the block alongside partners Murphy Oil (8.05%) and Petronas (5%).
Halliburton Company, an oil and gas services provider has announced a multi-year agreement with Repsol to provide a cloud-based master data management solution for exploration and production (E&P) activities.
The software as a service enables users to load, ingest, manage and access log, well and other E&P data across different locations for greater efficiency and productivity throughout Repsol’s asset portfolio.
As exploration and production challenges intensify, operators need to generate insights to enhance performance from existing data. Effectively managing E&P data through a comprehensive, cloud solution drives greater communication, accuracy and consistency so operators can make better-informed decisions.
Repsol will implement the cloud solution for simultaneous access and management across ten global locations during the contract’s first year with additional locations to follow. DecisionSpace® 365 Data Foundation supports data residency and integrates with applications and data on premise.
“The cloud simplifies and lowers the cost of managing information across the well lifecycle and DecisionSpace 365® Data Foundation provides true collaboration by making the same data available in context at the right time,” Nagaraj Srinivasan, senior vice president of Landmark and Halliburton Digital Solutions.
“We look forward to working with Repsol to deliver a data management solution using the cloud that maximizes the value of their assets,” he added.
About Halliburton
Founded in 1919, Halliburton celebrates its 100 years of service as one of the world’s largest providers of products and services to the energy industry.
With 60,000 employees, representing 140 nationalities in more than 80 countries, the company helps its customers maximize value throughout the lifecycle of the reservoir — from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset.
Visit the company’s website at www.halliburton.com. Connect with Halliburton on Facebook, Twitter, LinkedIn, Instagram, and YouTube.
Stakeholders in Ghana’s petroleum downstream industry have called for a paradigm shift in the politicisation of BOST inter-depot transportation business.
The stakeholders in the downstream subsector are worried about the situation where a change in government results in some transporters being thrown out of job.
This is contained in the 2018 Industry Report on Ghana’s Petroleum Downstream which was compiled by the Chamber of Bulk Oil Distributors (CBOD).
The report described how because of politicisation of BOST’s deport transport business, some transporters are able to hedge political victimisation by partnering key personalities across both dominant parties.
The report noted that some register different companies and use the same vehicles. Subject to the political sentiments, the transporter fronts its transactions with one of its politically-aligned companies.
According to recurring reports from some transporters over the years, companies are aligned to particular political actors who front contracts for rents of between 20%-30% of the gross transportation income.
The report said many investors into trucks have had their investments impaired by political victimisation.
“This culture is unsustainable and injurious to investments and BOST as an institution,” it said.
Ghana is currently over trucked significantly because of the hope of BOST patronage. Ghana’s transportation pricing is based on an eight trips a month assumption for local deliveries (deliveries within a 66km radius).
“For such a radius, a truck should be operated at about 20 trips minimum a month.
This implies that our asset utilisation premium in the transportation price build up is overstated by 150 percent.
“It is no wonder that there is constant agitation from transporters to have the transportation price increased. This does not augur well for Ghana as an economy as the under-utilisation of assets is the dissipation of productivity.
“It also leads to higher prices being paid by consumers at the fuel pump.”
The report underscored the need to professionalise the industry and retain constructive value for BOST and not dissipate it through rent seeking schemes.
While the current management, the report said, is making efforts at minimising these occurrences, it stated that its efforts will yield little unless ingrained in the policy structure of their operations.
It, thus, recommended that BOST openly auctions the inter-depot transportation of fuel. This, it said, would imply that all licensed transporters would have an objective chance at competing.
It would also ensure the retention of all ‘would have been economic rents’ within BOST to fund its operations.
The report, again, stated that the auctions be made based on volume and location with the NPA transportation price as the benchmark. Such auctions must require the posting of easily negotiable performance insurances or financial instruments.
It further recommended that price quotes must be NPA benchmark transportation prices less a management margin for BOST. This implies that NPA benchmarks shall be paid to BOST for their service and the margin retained by BOST to fund their administrative and operational costs for managing the transportation processes.
The above recommendations would ensure Ghana is not short-changed and value is retained in BOST.
“It will dispel the rent seeking and help truncate the excessive politicisation and polarisation of BOST. As the industry grows, it is imperative that institutions are depoliticised and the citizenry access to service and opportunities be not dependent on political discretions.”
Workers’ union Solidarity has issued a letter of demand, insisting Eskom withdraws an unfair dismissal against Johan Dempers, a project manager at the Matimba and Medupi power stations by 29 October 2019.
According to union, Dempers was dismissed on 18 October 2019 from Eskom Rotek’s service without any warning.
Anton van der Bijl, head of solidarity’s legal services, contends that after the coal conveyor belt had broken down on 12 October, leading to the recent power cuts, Dempers was told to supervise repairs to the conveyor belt.
As part of the emergency measures implemented while the conveyor belt was being repaired – 1,500 tonnes of coal had to be trucked to the power station.
According to Van der Bijl, Eskom Rotek argues that Dempers failed to supply the 1,500 tonnes of coal per hour to Medupi as per their instruction and then, when he saw that the targets would not be met, he failed to report the matter to senior management.
“It is shocking, to say the least. Dempers was dismissed without any warning for something that was not his responsibility, and this despite the fact that he performed his duty of supervising the repairs of the conveyor belt resolutely and in an excellent way,” Van der Bijl said.
Van der Bijl continued: “It is unfortunate that it has become a trend that mismanaged state enterprises use their employees as pawns to try and conceal their own incompetence.
“In this instance we are dealing with a case where our member did far more than was expected of him, and he is now made the scapegoat for the recent power cuts.”
He further stated that if Eskom Rotek has not withdrawn Dempers’s dismissal by 29 October, Solidarity will have no choice but to take urgent legal steps.
“We believe and trust that Eskom Rotek would then be taught a lesson in court,” Van der Bijl concluded.
Source: www.energynewsafrica.com
The Kenya Power Board of Directors has appointed Bernard Ngugi as the Managing Director & Chief Executive Officer of the Company.
Prior to his appointment, Ngugi was the Company’s General Manager in charge of Supply Chain. He takes over from Eng. Jared Othieno who has been the Acting Managing Director & CEO since July 2018 when he was appointed to the position following the exit of the former Management team.
Ngugi has over 30 years’ experience in the Company with expertise in financial and revenue accounting, internal audit and supply chain management. He holds a Master of Business Administration in Finance and Bachelor of Commerce in Accounting.
He is a Certified Public Accountant of Kenya and a member of the Institute of Certified Public Accountants of Kenya. He is also a Certified Public Secretary of Kenya and a member of the Institute of Certified Public Secretaries of Kenya.
Additionally, Ngugi holds a Graduate Diploma from the Chartered Institute of Purchasing and Supplies and is a member of the Kenya Institute of Supplies Management.
“My immediate focus is to lead the Company towards improved profitability while ensuring the business fulfils its socio-economic purpose. This will be achieved by implementing our 5 Year Strategic Plan that broadly aims at delivering excellent customer service and ensuring our business sustainability,” Ngugi said.
The Board of Directors of Kenya Power & Lighting Company Plc is confident that operations of the Company will run smoothly under the leadership of Ngugi.
“We believe that Ngugi will see the Company through an important stage of its development and growth as we work to diligently implement all our plans to strengthen the Company and the commercial aspects of our business,” Kenya Power’s Chairman Amb (Eng) Mahboub Maalim said.
Source: www.energynewsafrica.com
By: NJ Ayuk
I truly believe that investment and economic development are the keys for peace and stability in Sub-Saharan Africa. I have said it again and again. I wrote dozens of articles and even a book partially dedicated to that particular belief. So, it is with great joy that I see that same belief being followed and put into practice in one of Sub-Saharan Africa’s nations most impoverished and most affected by conflict in recent years, South Sudan. The world’s youngest nation has been in dire straits, to say the least, for quite some time.
Since the landmark peace deal signed by President Salva Kiir in September 2018, the ceasefire has held, and that has opened the doors to set up the country’s structure again. To be sure, South Sudan’s (and Sudan’s) main source of revenue comes from oil. During the conflict, oil production was halted and infrastructure damaged or destroyed. Further, the only export pipeline out of South Sudan, where most oil fields are located, goes through Khartoum, in Sudan.
Now, if this set up has been a source of tension and conflict in the past, understanding its various aspects is also the beginning of finding solutions for stability. As the former South Sudanese Minister of Petroleum, Ezekiel Lol Gatkuoth, said in April 2019, “the lifeline and the backbone of the economies of South Sudan and Sudan must continue to stand strong. The economies and the people of Sudan and South Sudan share a common destiny. The flow of oil is vital for the people of both nations and shall remain uninterrupted”.
This is no small truth. Cooperation, rather than individualism is the only thing that will keep these two nations from conflict and allow them to take advantage of their resources to build lasting peace and promote economic development.
Now, there is a lot more to be taken from what has been happening in South Sudan than just a lesson in diplomacy. The South Sudanese leadership is conscious that oil is their only door, at the moment, for economic stability.
But further, they understand that expanding their oil production is the way towards a brighter future and that, for that to happen, they must lure investors with an attractive business environment and investment security.
So first, the Ministry of Petroleum started by supporting the operating companies in the country and pushing them to increase oil production and reopen oil fields that had been shut down during the civil conflict. A target of returning to a pre-war daily production of 350 thousand barrels of oil per day was set for 2020. Ambitious as it may be, it has set the government’s tone regarding its oil industry – “We want investment now!”.
It’s working! Slowly but surely, old oil fields have been brought online and the national daily production rate, although far from its ultimate goal, standing today at 180 thousand barrels per day, is consistently increasing, step by step.
Then, there is the issue of creating an enabling and well developed legal framework. In order to attract foreign investment, the South Sudanese government has decided to review and improve the laws overseeing the oil industry and has sought outside expertise to help. Local content and empowering women must be key to this process.
Again, it is working. In 2017, Pan African E&P company Oranto Petroleum was the first to sign a production sharing agreement in South Sudan since, well, since the country was formed. The company is now operating block B3. To be sure, Oranto is no small actor in Africa’s main oil plays, and its entry in South Sudan marked a sign of change in this young nation’s renewed oil industry. We would have to wait two years until another exploration and production sharing agreement (EPSA) was to be signed in the South Sudanese plays. In May 2019, the South African state-owned Strategic Fuel Fund (SFF) signed the second EPSA in South Sudan’s young history for the license of block B2.
And now, that will all come together when the South Sudanese Minister of Petroleum Hon. Awow Daniel Chuang, a technocrat and results oriented Minister, announces South Sudan’s 2020 oil and gas licensing round at two strategic conferences this October: Africa Oil & Power 2019 in Cape Town, South Africa, on October 9-11 and South Sudan Oil & Power (SSOP) 2019 in Juba on October 29-30. This is a historic landmark for South Sudan and a fantastic opportunity for investors to tap into this incredibly proliferous and underexplored oil region (it is estimated that at least 70% of South Sudanese oil is still to be found).
The Ministry of Petroleum is also searching for companies that will work on gathering geological and seismic data on the country’s basins so it can be better prepared to captivate the interest of Canadian, American, Russian, Asian and European exploration and production companies in exploring the country. The event will open a new era for South Sudanese oil and is bound to have a dramatic impact on the country’s economic and social future. The government is also seeking partners to develop environmental assessments on the current and prospect oil fields in the country, as social concerns over environmental damages have also taken central stage in the cabinet’s plan for the industry. Besides all that, one of the main debate topics in the upcoming SSOP is the role of women in the energy sector, another topic that I press upon repeatedly especially in my recent bestselling book Billions at Play.
Finally, the cherry on the top of the cake, the end of August 2019 saw the announcement of the biggest oil discovery in South Sudan in years. Over 300 million barrels of recoverable oil were found in the Adar oilfield, in block 3, operated by the Dar Petroleum Operating Company consortium, which is led by the China National Petroleum Corporation (CNPC). Further reserves could be on the way as other wells are currently under evaluation in the same area. Oil should start flowing from this field within 12 months.
This is to say that, South Sudan came out of a devastating war and turned itself around, took advantage of its natural resources and created the conditions to attract foreign investment, built international partnerships with neighbours and fellow African nations and developed a legal and business framework that would enable growth, while seeking peace through economic development and compromise, never undervaluing social, regional and ethnic concerns.
What else can I say, if the youngest and one of the most impoverished nations in the world can do it, so can the rest of Africa. The time is now.
NJ Ayuk is the CEO of Centurion Law Group and the Executive Chairman of the African Energy Chamber. His experience negotiating oil and gas deals has given him an expert’s grasp of Africa’s energy landscape. He is the author of bestselling book, “Billions at Play: The Future of African Energy and Doing Deals.”
ENI has made yet another discovery in Egypt.
The latest discovery was made in the Abu Rudeis Sidri development lease, in the Gulf of Suez, where the operating company Petrobel, equally held by ENI and the Egyptian General Petroleum Corporation (EGPC), drilled an appraisal well of the discovery of Sidri South, announced last July.
The Sidri 36 appraisal well, drilled to assess the field continuity westward in a down dip position with respect to Sidri-23 discovery well, encountered an important hydrocarbon column in the clastic sequences of the Nubia Formation (200 meters of hydrocarbon column).
This new and important result continues the positive track record of the “near field” exploration in ENI’s historical concessions in Egypt and prove how the use of new play concepts and of the technology allows to re-evaluate areas where exploration was considered having reached a high level of maturity.
The well will be completed and put into production in the next few days with an expected initial flow rate of about 5.000 barrels per day.
Petrobel immediately conceived a rapid development plan for the new discovery with a “fast-track” approach, leveraging on existing infrastructures in the vicinity of the well and maximizing facilities synergies; this strategy will be applied also in future activities in the Sidri area with the next delineation and development wells connected to the production in a short time.
The Sidri South discovery, which is estimated to contain about 200 million barrels of oil in place, will be reassessed following these new results.
Source: www.energynewsafrica.com
