Nigeria has had several bumps in the road when it comes to dealing with foreign oil investments in its country, ranging from corruption to security to back tax issues.
Eni, along with Shell, has been embroiled in a scandal over OPL 245 in Nigeria spanning years and continents, the likes of which have not yet been laid to rest.
In February of this year, Nigeria ordered foreign oil companies to pay $20 billion in back taxes to local states.
Security issues have also been a concern for foreign players, although Nigeria seems to be making progress on this front, at least from the days when the Niger Delta Avengers were intent on disrupting Nigeria’s oil industry.
Source: Oilprice.com
Nigeria: NNPC Withholds Payments To Eni
Nigeria’s state oil firm, National Petroleum Corporation, has said that it had stopped payments to Eni three months ago, because of plans to let some of Eni’s oil licenses expire, energynewsafrica.com can report.
NNPC has plans to take over some of Eni’s licenses for itself.
In the meantime, Nigeria’s refusal to pay Eni has created some setbacks for the country, which has taken steps to overhaul its energy industry by tamping down pipeline violators along with a series of anti-corruption efforts including improving transparency in the sector.
NNPC did not say which of Eni’s asset licenses would not be renewed, nor did it specify what asset the dispute was over.
“The failure to pay cash call arrears in the last three months was deliberate and meant to ensure that the issues surrounding the agreement (are) settled,” NNPC said in a statement carried by Reuters.
NNPC urged Eni in its statement to finish Phase 1 of the Port Harcourt refinery rehab project on time, which is in October. Nigeria is making a push to boost its local refinery capacity.Nigeria has had several bumps in the road when it comes to dealing with foreign oil investments in its country, ranging from corruption to security to back tax issues.
Eni, along with Shell, has been embroiled in a scandal over OPL 245 in Nigeria spanning years and continents, the likes of which have not yet been laid to rest.
In February of this year, Nigeria ordered foreign oil companies to pay $20 billion in back taxes to local states.
Security issues have also been a concern for foreign players, although Nigeria seems to be making progress on this front, at least from the days when the Niger Delta Avengers were intent on disrupting Nigeria’s oil industry.
Source: Oilprice.com
Nigeria has had several bumps in the road when it comes to dealing with foreign oil investments in its country, ranging from corruption to security to back tax issues.
Eni, along with Shell, has been embroiled in a scandal over OPL 245 in Nigeria spanning years and continents, the likes of which have not yet been laid to rest.
In February of this year, Nigeria ordered foreign oil companies to pay $20 billion in back taxes to local states.
Security issues have also been a concern for foreign players, although Nigeria seems to be making progress on this front, at least from the days when the Niger Delta Avengers were intent on disrupting Nigeria’s oil industry.
Source: Oilprice.com
South Africa: Special Appropriations Bill To Channel R59bn Toward Eskom
South Africa’s Finance Minister, Tito Mboweni, has proposed additional funding support of R59 billion over the next two financial years to help the embattled power utility, Eskom, meet its financial obligations.
Mboweni stated this when he was introducing the Special Appropriations Bill aimed at assisting Eskom with additional financial support during a sitting of the National Assembly on Tuesday.
The minister said: “Although government has committed R23 billion to be allocated to Eskom over the next three years, Eskom’s funding plan is dependent on their ability to raise additional financing from the market, which in turn requires them to be a going concern.
“It is therefore important to note that the proposed financial support for 2019/20 and 2020/21 financial years addresses the going concern status and enables Eskom to honour its obligations.”
He continued: “Therefore the special appropriations bill requests approvals of additional financial support for Eskom as follows: an additional R26 billion in 2019/20 financial year and…R33 billion in the 2020/21 financial year. However, the future sustainability of Eskom will have to address the debt and the restructuring of Eskom.”
After a vote, the 226 Members of Parliament voted in favour of the appropriations bill being read for the first time, while 90 voted against the bill being read.
Eskom presents the biggest risk
The Minister’s proposal comes after President Cyril Ramaphosa announced during his State of the Nation Address in February that Eskom was in a crisis and required additional support to improve its balance sheet.
Introducing the first reading of the Special Appropriation Bill to the National Assembly on Tuesday, Mboweni said Eskom presents the biggest risk to the fiscal framework because of its financial difficulties and its negative impact on the lives of ordinary South Africans.
He said given the risks to the economy of the systemic failure if Eskom were to collapse, government is urgently working to stabilize the institution while developing a broad strategy for its future.
Mboweni noted: “Eskom faces serious financial and operational challenges, which to a large extent were caused by governance challenges that are playing themselves out at the Zondo Commission.
“As it stands, Eskom is not financially sustainable based on its current high levels of debt and its inability to generate sufficient revenue to meet its operational and capital obligations which exposes the entity to higher levels of liquidity and balance sheet risks.”
He added: “Therefore, without major changes to Eskom’s business model and financial assistance being provided by government, the company will be unable to meet its financial obligations for the 2019/ 20 financial year.
“At a strategic level, we must thus face the reality that large vertically integrated energy company is an outdated model in a changing industry, both domestically and internationally.”
Source: Esi-Africa.com
Ghana: VRA Seeks To Install Transformers And Other Accessories
Ghana’s Volta River Authority intends to apply a portion of its budgetary allocation to cover eligible payments under a contract for which this Invitation for Tenders (IFT) is issued.
The scope of the works expected to be awarded under this IFT includes but not limited to the procurement and installation of two new packaged 3.3/0.415kV, 250kVA transformers at Akosombo Generating Station in the Eastern Region of Ghana for power supply to the spillway gates.
The Volta River Authority now invites sealed tenders from eligible contractors for the design, manufacture, testing, delivery to site and erection of the transformers, associated panels, reinforced steel conduit and cabling.
More details on the requirements are provided in the specifications and activity of schedules included in the tender documents.
This IFT is open to all qualified bidders who have registered with the Public Procurement Authority and can demonstrate experience of having provided similar services.
A contractor will be selected under a competitive tendering method through the evaluation procedure, which is described in the tender documents, in accordance with the Public Procurement Act, 2003 (Act 663) as amended.
Interested bidders may obtain further information from and inspect the tendering documents at the following address from 09:00 to 15:00 hours GMT on Mondays to Fridays as from 22 July 2019 to 28 August 2019.
The Director,
Engineering Services Department,
P.O. Box 77, Akuse – Eastern Region
Tel: 0302 664941-9 Ext. 723216
Email: [email protected]
A mandatory site visit and pre-tender meeting shall be held and therefore all bidders are required to meet at Akosombo Generating Station Conference Room, near the Akosombo Generating Station, Akosombo in the Eastern Region at 10:30am on 07 August 2019.
Bidders who fail to attend the mandatory site visit and pre-tender meeting shall be rejected.
All tenders in one original plus two (2) copies, properly filled in, and enclosed in plain envelopes must be delivered to Engineering Services Department Conference Room, VRA – Akuse (EL-1014-5842) in the Eastern Region at or before 12:00 hours GMT on Wednesday, 28 August 2019.
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Ghana: National Gas Company Gets Operational Headquarters
President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo, has commissioned the state-of-the-art Operational Office Complex of the West African country’s National Gas Company, Ghana Gas in the Western Region.
The office complex is expected to deliver first-class gas operations and support services for the country’s gas sector, whilst, at the same time, accommodating the women and men of the company who work to ensure reliable and sustainable gas supply for power generation.
Whilst commending the Board and Management of Ghana Gas for overseeing the project, President Akufo-Addo also applauded the company for the numerous developmental projects it is undertaking in the Western Region, including the 10.5km asphalt road from Alla-Bokazo to Anokyi.
The President noted that similar road projects have either been completed or at various stages of completion in Axim, Half Assini and Kikam.
The Gas company, he noted has also extended its corporate social responsibility initiative in the area of health by registering some 1,350 indigenes living in Atuabo and Aboadze under the National Health Insurance Scheme.
Other corporate social responsibility projects being constructed by Ghana Gas are construction of 8-Seater Water Closet Toilet facility, a Mechanized Borehole in Allabokazo; a 4-unit Teachers’ Quarters in Anokyi, a 4-unit Teachers Quarters in Asemnda Suazo, and an Ultra-Modern Nursery facility in the same area.
President Akufo-Addo urged the company to continue in this vein, and support the communities within which they are operating.
He assured that the Ministry of Agriculture, in collaboration with Ghana National Gas Company, is currently working towards the establishment of a fertilizer plant in Jomoro.
The Plant will use natural gas as feedstock to produce high quality ammonia, urea and fertilizer for both local and regional markets.
Eni Hits Gas And Condensate In Ken Bau Prospect Offshore Vietnam
Italian oil and gas company, Eni has proven the presence of gas and condensate in the Ken Bau prospect located in the exploration block 114 in the Song Hong Basin, offshore Vietnam.
Eni Vietnam is the Operator of Block 114 with a 50% share; ESSAR E&P holds the remaining 50%.
Eni announced on Wednesday that the well result indicates a significant potential of the hydrocarbon accumulation.
The exploration well Ken Bau 1X has been drilled at a depth of 95m below water level, and reaches a total depth of 3606m, encountering several intervals of gas and condensate sandstone interbedded with Miocene age shale, with an estimated net reservoir thickness in excess of 100m.
Ken Bau 1X well was plugged and abandoned ahead of the original plan due to technical issues, prior to reaching deeper levels that could hold significant additional resources. Eni is already planning a drilling campaign early next year to fully assess the substantial upside of the discovery.
According to Eni, Ken Bau 1X results represent a significant breakthrough for evaluating the exploration potential in the Song Hong basin, where Eni Vietnam also operates with a 100% share in the neighboring Block 116.
Source: Offshoreenergytoday.com
Tullow Plans To Drill Suriname Well Next Year
Oil and gas company, Tullow Oil and its partners have decided to drill an exploration well in Block 47 located offshore Suriname next year.
Tullow said in an operational update on Wednesday that together with its Joint Venture Partners it had decided to enter the second phase of operations in Block 47.
Following recent meetings, the Joint Venture Partners have chosen to drill the Goliathberg-Voltzberg North prospect in 2020, Tullow added.
The prospect lies approximately 260 kilometers off the coast of Suriname, in 1,900 meters of water and is one of a series of leads and prospects on the flank of the Demerara High.
Tullow has interests in three blocks in Suriname, Blocks 54, 62, and 47.
The company signed a Production Sharing Contract with Staatsolie in relation to Block 47 in September 2010. It is a 2,369 sq km deepwater exploration license where there is potential to extend the Jubilee play from West Africa across the Atlantic to Suriname.
Tullow’s partners in Block 47 are Pluspetrol and Ratio Exploration with 30% and 20% interests, respectively.
The company signed a Production Sharing Contract with Staatsolie in relation to Block 47 in September 2010. It is a 2,369 sq km deepwater exploration license where there is potential to extend the Jubilee play from West Africa across the Atlantic to Suriname.
Tullow’s partners in Block 47 are Pluspetrol and Ratio Exploration with 30% and 20% interests, respectively. Update: Ghana Navy Rescue 8 Turkish Crewmen Attacked In Nigeria Waters
Ghana’s Navy has succeeded in rescuing eight crewmen onboard Turkish vessel, Paskoy-1 after they were attacked and abandoned on sea by pirates in Nigerian territorial waters.
The vessel was enroute La Cote D’Ivoire from Cameroon when the pirates kidnapped 10 crewmen of the total 18, including the captain of the vessel.
The pirates were believed to undertaken have done so for ransom, for the release of the captives.
The Turkish Ambassador to Ghana, Ozlem Ergun Uluren, expressed appreciation to the Ghana Navy and allied security authorities for bringing the troubled Turkish crewmen and vessel to safety in Ghanaian waters.
Commodore James Kontoh, Flag Officer in Charge of the Eastern Naval Command, bemoaned the threat the Gulf of Guinea is posing on travelers but affirmed the Ghana Navy’s resolve to ensure Ghana’s territorial waters remain safe.
“The Gulf of Guinea area has become very notorious, in terms piracy and kidnapping, but our resolve is to make sure our territorial waters are safe. We have been carrying out vigorous patrol, to make sure that they do not come here.”
Venezuela’s Juan Guaido Vows To Protect Chevron’s Assets
The Western -recognized Venezuelan President Juan Guaido has vowed to protect Chevron’s Venezuela assets in the event that the United States declines to extend Chevron’s license that allows it to operate in a sanctioned country, according to Reuters.
Chevron’s license to work in Venezuela expires on July 27, and if not renewed, Chevron would no longer be able to lawfully operate in the Latin American country. Most other foreign oil companies have already been pushed out of Venezuela by Maduro’s predecessor, former President Hugo Chavez. Chevron decided to stick it out, tempted by the vast oil riches of the Orinoco Belt.
For this privilege, Chevron had to suck up some rather unfavorable terms which Chavez demanded, not to mention its likely tiresome exposure to corruption in the country such as overbilling by contractors, which probably was a distant second to mustering up a business face when dealing with the likes of an unstable Chavez.
Under normal circumstances, if Chevron were to stop operating in Venezuela, its assets would be considered forfeit and swallowed up by the Maduro regime.
“Companies that leave the [Orinoco] oil belt will be substituted by companies of equal quality from Venezuela’s allies,” Venezuela’s Foreign Minister Jorge Arreaza said in April, Reuters reported—its allies meaning Russia and China.
But today’s backing by the leader of Maduro’s opposition should give Chevron hope that if it indeed does have to leave Venezuela until a time when sanctions are lifted, its assets will be protected and returned to Chevron when it is ready to restart production.
The United States is currently discussing the license renewal request.
Nigeria: NNPC Secures $3B Deal To Develop Oil License
The Nigerian National Petroleum Corporation (NNPC) says it had secured a US$3.15 billion financial and technical services agreement with local firm Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) to develop the OML-13 oil license owned by NNPC’s upstream subsidiary NPDC.
The deal is part of NNPC’s strategy to develop more resources and increase oil production with the help of financing from third parties to spread out development costs.
At the beginning of this year, NNPC said that it was in talks with SEEPCO to raise US$3.15 billion, and in discussions with Nigerian company CMES-OMS Joint Venture Limited for another US$991.1 million, to boost its oil production. The state oil firm was seeking the total of US$4.1 billion to develop oil resources estimated at more than 400 million barrels of crude oil from three oil fields in Nigeria.
NNPC, which was pumping around 240,000 bpd out of Nigeria’s 1.78 million bpd production in January 2019, is looking to raise its production to more than 500,000 bpd.
Earlier this year, Nigeria’s oil operations were disrupted several times due to fires, shutdowns, force majeure, and protests. In April and May, a key oil pipeline and a logistics base in Nigeria’s oil-rich Niger Delta were rocked by a shutdown and protests in the latest incident that disrupted the Nigerian oil industry in the spring.
Shell declared a force majeure on Bonny Light exports while exports of Amenam, operated by France’s Total, were also under force majeure in April.
Nigeria has managed to recover its production since May, and led the increases, with 129,000 bpd, among OPEC’s members who boosted production in June over May, even exceeding the boost in Saudi production.
Nigeria’s crude oil production averaged 1.855 million bpd in June, according to OPEC’s secondary sources.
Source:Oilprice.com
Nigeria Inks Deal With Germany, Siemens To Triple Power Supply
The Federal Government of Nigeria has signed a roadmap seeking to nearly triple power in partnership with the German Government and Siemens AG.
President of the West African country, His Excellency Muhammadu Buhari, who met with the president of the German technology firm, Siemens AG, Joe Kaeser, said the partnership will help achieve “7,000 megawatts of reliable power supply by 2021 and 11,000 megawatts by 2023”.
Only about 4,000 megawatts reliably reaches consumers despite there being over 13,000 megawatts of power generation capacity.
“Our intention is to ensure that our cooperation is structured under a government-to-government framework. No middlemen will be involved so that we can achieve value for money for Nigerians,” Buhari said.
The President expressed worries that though the initiative may not solve all the demands facing the power sector, it has the potential of addressing a significant amount of the electricity challenges Nigeria has faced for decades.
Despite being the largest producer of energy in Africa, Nigeria has struggled to supply electricity throughout the country for decades.
The government is also planning to sell 10 electricity generation companies to private investors this year to boost power supply.
The government has set up a committee for the sale of the remaining companies established under the National Integrated Power Project (NIPP).
Eni Kicks Off Installation Works On Coral Sul FLNG Hull
Italian oil and gas company, Eni has started installation works on the hull of the Coral Sul floating liquefied natural gas (FLNG) treatment and liquefaction unit that will be moored offshore Mozambique.
The unit is part of the Coral South project, which will put in production 450 billion cubic meters of gas from the giant Coral reservoir. The hull is expected to be launched in 2020, in line with the planned production startup of the Coral South Project in 2022, Eni informed on Monday.
The Coral Sul FLNG facility will have a gas liquefaction capacity of 3.4 million tons per year when completed and will be the first FLNG vessel ever to be deployed in the deep waters of the African continent, according to Eni.
The vessel, which will be 432 meters long and 66 meters wide and weigh about 220,000 tons, will be able to house up to 350 people in its eight-storey accommodation module. The facility will be anchored at a water-depth of around 2,000 meters by means of 20 mooring lines that weigh a combined 9,000 tons.
Construction works on the Coral Sul FLNG started in 2018 and are ongoing in seven operational centers across the world.
Construction of the mooring turret began in March; construction of the hull’s 24 modules that contain the LNG storage tanks and sections of the treatment facilities began in September 2018. Construction of the topside, consisting of 12 gas treatment and LNG modules, started last November, along with the living-quarters.
By the end of 2019 the overall progress of the project is expected to exceed 60% completion with the total man-hours worked shortly expected to reach 10 million.
Drilling and completion activities for the six subsea wells that will feed the liquefaction unit will begin in September 2019. The wells will have an average depth of approximately 3000 meters and will be drilled in about 2000 meters of water depth. The activities, carried out by the Saipem 12000 drilling rig, will be completed by the end of 2020.
Eni has been present in Mozambique since 2006, with the acquisition of a participation interest in the exploration concession of Area 4, located in the deep offshore in the Rovuma basin, in the north of the country.
Between 2011 and 2014, Eni discovered super-giant natural gas resources in the Coral, Mamba Complex and Agulha reservoirs, holding estimated 2,400 billion cubic meters of gas in place.
Qatar Petroleum Joins Oil, Gas Search Offshore Kenya
Qatar Petroleum (QP) on Tuesday announced that it had struck a deal to enter three exploration projects off the coast of Kenya operated by Italy’s Eni.
Pending approval by the Kenyan government, the national oil company is set to take 25% stake in a consortium with rights to blocks L11A, L11B and L12 in the offshore Lamu basin.
Eni will retain 41.25% interest in the group, while France’s Total will maintain a 33.75% holding.
The blocks span 15,000 km2 of acreage in waters between 1,000 and 3,000 metres deep. In its statement, QP described the area as “a frontier and largely unexplored.”
“In line with its growth strategy, this opportunity strengthens Qatar Petroleum’s position in the exploration of frontier basins with significant hydrocarbon potential,” the company said.
Eni, which is already partnered with QP at projects in Oman, Mexico, Morocco and Mozambique, said the sale “further reinforces the continuously evolving strategic co-operation between the two companies.”
The price QP agreed to pay for the stake has not been disclosed. Under the transaction, the Doha-headquartered producer will take a 13.75% interest from Eni and a 11.25% stake from Total.
Halliburton Beats Profit Estimates Despite “Challenging” North America Market
Oilfield services provider Halliburton Company has beating analyst estimates in its Q2 earnings, thanks to growth in international markets that offset lagging activity in North America, the company’s largest market.
Halliburton, one of the world’s largest oilfield services companies, adjusted net income of US$303 million, or US$0.35 per diluted share, for Q2 2019, excluding impairments and other charges.
The earnings per share exceeded the US$0.30 analyst consensus estimate in the Wall Street Journal.
The Q2 profit beat sent Halliburton’s stock surging more than 7 percent on the NYSE at 10:40 EDT, and 8 percent by 1:45pm EDT.
International revenues rose by 6 percent quarter on quarter, while North America revenue increased by 2 percent, to US$3.3 billion. Halliburton’s North American revenue was driven by higher stimulation, artificial lift and wireline activity onshore, and higher drilling activity in the Gulf of Mexico.
“We continue to build on the growth momentum internationally and successfully manage the market dynamics in North America,” Jeff Miller, Chairman, President and CEO at Halliburton said, commenting on the Q2 results. Again referring to North America, Miller noted:
“We are successfully executing our strategy of controlling what we can control and managing our business to perform well in any market conditions.”
In April this year, Halliburton expected total global offshore spending to jump 14 percent this year. Reporting the Q1 figures back then, Miller said, referring to North America, “the worst in the pricing deterioration is now behind us. For the next couple of quarters, I see demand for our services progressing modestly.”
On Friday, Halliburton’s competitor Schlumberger said that its first-half international revenue increased by 8 percent on the year, while North America land revenue declined 12 percent.
“These results reflect the normalization in global E&P spend that we were anticipating as international investment increases in response to the accelerating decline in the mature production base, and North America land investment decreases due to E&P operator cash flow constraints,” Schlumberger said.
Schlumberger’s chief operating officer Olivier Le Peuch—who was appointed to become chief executive officer effective August 1—said in prepared remarks on the Q2 results:
“North America land remains a challenging environment. Indeed, E&P operator focus on cash flow has capped activity and continued efficiency improvements have also reduced the number of active rigs and frac fleets—so far without major impact on oil production.”
Source: Oilprice.com
ENGIE And Partners Reach Financial Close For PV Projects In Senegal
ENGIE and its partners Meridian and FONSIS have signed the EPC, O&M and finance contracts for two solar PV projects totalling 60MW.
The financing package for the two projects located in Kael and Kahone includes senior loans worth €38 million from the International Finance Corporation (IFC), the Finland-IFC Blended Finance for Climate Program, which helps spur private sector financing for climate change solutions in emerging markets, the European Investment Bank, and Proparco.
The solar PV plants are part of the Scaling Solar initiative in Senegal, conducted jointly by the Senegalese authorities and IFC.
ENGIE was selected as preferred bidder by Senegal’s Electricity Sector Regulation Commission (CRSE) in a tender launched in October 2017.
ENGIE and Meridiam hold a 40% shareholding in the project company. FONSIS, the Senegalese sovereign fund, is a shareholder with a 20% equity stake.
The projects are located in Kahone, in the Kaolack region, and in Touba-Kaël, in the Diourbel region; construction and operation of the plants will be managed and executed by ENGIE.
Yoven Moorooven, CEO of ENGIE Africa, said: “In an extremely competitive context, ENGIE reaffirms its commitment to be a long term player in Senegal and to bring clean and affordable energy to the country while creating sustainable jobs.
“These projects are perfectly in line with the strategy of the Group to become a leader in the zero carbon transition ‘as a service’ for our customers in Africa.”