ExxonMobil’s Liza field, where the FPSO will be deployed, sits in the giant Stabroek block, which covers almost 27,000 square kilometers, circa 200 kilometers offshore Guyana and where ExxonMobil has struck more than a dozen oil discoveries which are yet to be developed.
The Liza field is expected to start producing up to 120,000 gross bopd by the first quarter of 2020. The first phase is expected to develop around 500 million barrels of oil.
The FPSO, the first of several to be deployed in Guyana, will be spread moored in a water depth of 1,525 meters and will be able to store 1.6 million barrels of crude oil.
Liza Destiny FPSO Sets Sail To Make Guyana An Oil-Producing Nation
Liza Destiny, an FPSO that will make Guyana an oil-producing nation, has set sail from Keppel’s Singapore yard where it was recently named and delivered.
According to Guyanese Department of Public Information, the Liza Destiny FPSO converted from a VLCC by Keppel, is expected to reach Guyana in September.
Owned by SBM Offshore, the Liza Destiny FPSO will be deployed at Exxon-operated Liza field as part of the first phase of the development offshore Guyana. First oil is expected in the first quarter of 2020.
Friday data by VesselsValue showed that the FPSO was sailing through the Malacca Strait on Friday, July 19, 2019, with the next stop being Cape Town, South Africa.ExxonMobil’s Liza field, where the FPSO will be deployed, sits in the giant Stabroek block, which covers almost 27,000 square kilometers, circa 200 kilometers offshore Guyana and where ExxonMobil has struck more than a dozen oil discoveries which are yet to be developed.
The Liza field is expected to start producing up to 120,000 gross bopd by the first quarter of 2020. The first phase is expected to develop around 500 million barrels of oil.
The FPSO, the first of several to be deployed in Guyana, will be spread moored in a water depth of 1,525 meters and will be able to store 1.6 million barrels of crude oil.
ExxonMobil’s Liza field, where the FPSO will be deployed, sits in the giant Stabroek block, which covers almost 27,000 square kilometers, circa 200 kilometers offshore Guyana and where ExxonMobil has struck more than a dozen oil discoveries which are yet to be developed.
The Liza field is expected to start producing up to 120,000 gross bopd by the first quarter of 2020. The first phase is expected to develop around 500 million barrels of oil.
The FPSO, the first of several to be deployed in Guyana, will be spread moored in a water depth of 1,525 meters and will be able to store 1.6 million barrels of crude oil.
Ghana: AGM Petroleum Makes Oil Discovery Offshore
AGM Petroleum, an oil and gas exploration company has discovered oil at Ghana’s South Deepwater Tano (SDWT) prospect in the Western Basin.
The discovery was made known by the President and CEO of AGM’s related company Aker ASA, Øyvind Eriksen in a letter to shareholders published in its second-quarter and half-year results for 2019.
According to Mr Eriksen, “the drilling results, including quantification of volume, is subject to further analysis”.
“In parallel, Aker continues to consider a consolidation between Aker Energy and AGM Petroleum, the main operator of the South Deepwater Tano block. AGM Petroleum is a company controlled by our main shareholder,” Mr Eriksen said.
“During the second quarter, Aker Energy acted as service provider in AGM’s batch drilling of two exploration wells, Kyenkyen-1X and Nyankom-1X. We are pleased to announce that oil has been discovered in the AGM block. When it comes to volume ranges, AGM will communicate this at a later stage”.
Aker commitment
Mr Eriksen added that the progress made during the first half of the year was proof of Aker’s commitment to building an industry in Ghana.
“The progress made during the first half year has undoubtedly removed a lot of the previously held uncertainty around Aker Energy. Aker is committed to building an industry in Ghana, and the Aker Ghana Industrial Corporation (AGIC) is another good illustration of how we are taking an active and proactive approach to ensure long-term success, both for the Ghanaian people and for our investors.
“Through AGIC, Aker will promote local industry through both investments and transfer of know-how, and we are already well on our way with building the organisation that can see this through”.
Halliburton Releases Industry’s First 3D Logging-While-Drilling Technology
US based Halliburton Company, world’s largest providers of products and services to the energy industry has introduced 3D reservoir mapping, a new logging-while-drilling (LWD) capability that provides a detailed representation of subsurface structures to improve well placement in complex reservoirs.
3D inversion, an advanced reservoir mapping process, reveals overlooked features such as faults, water zones, or local structural variations that can considerably alter the optimal landing trajectory of a well.
In geosteering applications, the technology maximizes contact with oil and gas zones while mapping the surrounding formation to identify bypassed oil, avoid drilling hazards and plan for future development.
“This unique technology moves beyond layered reservoir models to full 3D characterization of the reservoir, enabling accurate well placement,” said Lamar Duhon, vice president of Sperry Drilling. “In complex formations, visualizing data in a 3D environment helps operators significantly enhance reservoir understanding to drive better drilling decisions and maximize asset value.”
The 3D capability originates from downhole measurements taken by the EarthStar ultra-deep resistivity service, an LWD sensor that identifies reservoir and fluid boundaries up to 225 feet (68 meters) from the wellbore. This range more than doubles the depth of detection of other industry offerings.
An operator in the North Sea recently deployed the 3D capability in a field with a long history of production and water injection.
The data allowed the operator to better assess the movement of reservoir fluids and visualize fault boundaries, which supported more accurate well placement and increased production.
McDermott’s Amazon Vessel Arrives In Rotterdam For Conversion Work
The McDermott-owned construction vessel Amazon has arrived in Rotterdam to start its transformation into an ultra-deepwater J-Lay vessel.
U.S. engineering company McDermott revealed its plans to convert the Amazon construction vessel to an ultra-deepwater J-Lay vessel in late July 2018.
The Amazon is operated by McDermott under a long-term bareboat charter that started in 2017. The vessel is equipped with twin 400 metric ton cranes and accommodations for 200 personnel.
The modifications will consist of removing the existing tower and replacing it with a J-Lay system with 1,500 tonnes of dynamic top tension on the tower, which will enable large subsea structures and hex sections of pipelines from 4.5 to 24 inches to be installed.
The Amazon modifications will include an integrated multi-joint facility, where single joints will be welded to form hex joints. The 10,000 tonnes of existing cargo space onboard will remove the requirement for onshore facilities to produce the multi-joints, enhancing the mobility of the vessel and reducing reliance on shore bases for support.
Dutch-based Royal IHC has been selected to design and build the J-Lay system and would perform overall management of the modification project.
Initial engineering on the project began in October 2017 and transitioned into full engineering design in January 2018.
McDermott will pay for the modification project primarily through an increased bareboat charter rate over an extended 12-year term once the modifications are complete.
The conversion period that is expected to last ten months and redelivery to McDermott is expected in the summer of 2020.
Source: offshoreenergytoday.com
Aker Energy Postpones Decision On Ghana Floater Amid Signs Of Strategy Shift On Subsea Contract
A decision on which contractor will land a major order to supply a floating production, storage and offloading vessel for Aker Energy’s 330-million-barrel Greater Pecan project off Ghana has been delayed by up to four months.
Industry sources said the Norwegian operator had been set to decide by late June which out of Netherlands-based SBM Offshore and Malaysia’s Yinson would land the FPSO deal, but Upstream understands a choice will now only be made by October.
One project observer said the delay reflects how Aker is “struggling with the complexities of Ghana”.
The source added that that Greater Pecan’s schedule “just keeps on slipping”.
Another source said the project is “definitely going more slowly than expected”, highlighting, for example, how Aker had to re-submit a revised development plan last month to the government amid concerns, among other things, about cost.
Upstream was told that two of Aker’s three partners in Greater Pecan — Russia’s Lukoil and state-owned Ghana National Petroleum Corporation (GNPC) — balked at the original project scope’s price tag.
While the deep-water development was never going to be cheap, one project observer said it was “too complex and too expensive” so the partners asked Aker “to go away and simplify it”.
It is understood that Aker wants SBM and Yinson to reduce the price of their commercial offers covering the FPSO lease-and-operate contract which will also have a purchase option.
But a source remarked that with the FPSO market “heating up very quickly and capacity disappearing” it is unclear how far prices can be reduced, particularly in the context of other issues that SBM and Yinson are being requested to address.
“To ask (FPSO) contractors to simultaneously reduce prices, increase local content and increase Norwegian content is (a challenge),” said one well-placed contact.
There has been talk of upgrading Tema Shipyard possibly with the help of Kvaerner and Dubai Dry Docks.
The FPSO will be designed to handle 110,000 barrels per day of oil, 110 million cubic feet per day of gas and 200,000 bpd of produced water with a storage capacity up to 1.6 million barrels.
Currently, gas will have to be re-injected until it can be exported.
Produced water will be cleaned up before being disposed in the sea while seawater will be injected to maintain reservoir pressure.
The FPSO will be spread-moored in about 2400 metres of water with oil tandem-offloaded to a tanker.
Aker Energy has not started a tender process for the subsea production system and subsea umbilical, riser and flowline system. Sources previously told Upstream that it wants to dispense with invitations to tender altogether and push through direct awards to Subsea 7 for the SURF package and Aker Solutions for the SPS.
However, it was learned this week that an “open, but limited bidding process” could start later this summer, at least for the SURF, amid signs that Aker Energy’s resolve to go with a direct award solution is “weakening progressively.”
It is unclear what Pecan’s subsea layout is under the revised development plan.
However, in an environmental scoping document completed in mid-May, a “tentative” subsea layout involved 14 producers and 12 water-alternating-gas injectors spread across four drill centres equipped with multiphase pumps.
These wells will be linked to the FPSO via 10-inch and 12-inch flowline loops and steel catenary risers, with four umbilicals also needed.
There have been suggestions in the market that because of unresolved issues, a final investment decision on the Greater Pecan project could be delayed to 2020, delaying first oil from 2022 to 2023.
For example, an environmental impact report must be produced (and approved by government and project lenders) and this could take between eight and 12 months to complete.
So, even if work on the EIA report began in May (the date of the environmental scoping document), then it may only be finalised in early 2020.
Nevertheless, an Aker Energy spokesman said FID “is still targeted for 2019.”
He said: “The Environmental & Social Impact Assessment process is progressing in accordance with Ghanaian environmental and social due diligence regulations. In parallel, lenders are being provided with the necessary environmental and social information ahead of an FID.
“We are in an ongoing, collaborative dialogue with the authorities as we work towards an approval of the PDO (development plan), at which point we will award contracts and make our FID together with our partners.
“As previously communicated, while the PDO feedback extended our timeline, we consider it a natural part of the process as the project involves significant investment with operations and revenues impacting many stakeholders.”
The spokesman added: “Our organisation has only been in existence for a year-and-a-half and we are very pleased with the progress we’ve made to date.”
Greater Pecan lies in the Deepwater Tano-Cape Three Points block where Aker has a 50% stake with Lukoil holding 38%, GNPC on 10% and Fueltrade with 2%.
Source: upstreamonline.com
Eni Managers Accused Of Attempted Witness Tampering In Oil Corruption Case
An Italian prosecutor on Wednesday told a local court that managers at Italy’s oil major Eni tried to tamper with a witness in an ongoing investigation into alleged corruption in an oil block award in Nigeria.
“We have become aware that Eni, through its managers, would have tried to influence and would have approached the defendant (Vincenzo) Armanna to convince him to withdraw some of his statements,” Fabio De Pasquale reportedly told the court.
Eni, as well as Shell, are on trial for knowing that an alleged payment of US$1.3 billion in bribes was made to the former Nigerian government back in 2011, for which Eni and Royal Dutch Shell secured exclusive rights to develop the oil block OPL-245 offshore Nigeria.
The 2011 acquisition of block OPL 245, according to Italian and Nigerian prosecutors, involved a transfer of money to personal accounts held by the Nigerian oil minister at the time. The official, Dan Etete, was later convicted of money laundering by a French court in a separate, unrelated case.
The sum of the OPL 245 deal was US$1.3 billion, an investigation revealed, of which US$1.1 billion was used to bribe politicians and businessmen to secure the deal. Shell and Eni have always insisted they were unaware of any wrongdoing at the time.
The case has been dragging for two years now in an Italian court after prosecutors asked in early 2017 Eni to stand trial over the alleged corruption.
Eni is also subject to a separate investigation for allegedly obstructing justice in the corruption case in Nigeria.
Lawyers for Eni, which denies these allegations too, asked on Wednesday the court in Milan to adjourn hearings until they examine evidence in the obstruction of justice investigation.
The court denied Eni’s request to adjourn, but directed defendant Armanna to be asked only about the alleged corruption, not about the alleged obstruction of justice, Reuters reports.
Source: Oilprice.com:
Ghana: TOR Loses GHc186 Million In Four Months
Ghana’s only oil refinery, Tema Oil Refinery, has recorded a net loss of Ghc186.35 million in the first four months of 2019, energynewsafrica.com can report.
According to the 2019 TOR’s Variance Report, the company anticipated its operational loss to be around Ghc71.70 million but ended up recording the huge loss due to a number of factors.
The 14-page report presented an analysis of the financial performance and situation of the Tema Oil Refinery in the West African nation, from January to April 2019.
The report includes commentary on the liquidity situation and an update on the legacy debts and payments being made by ESLA PLC.
The explanatory notes underlying the performance was that the turnover for the period was derived from the sale of petroleum product, fees from storage, loading rack, laboratory services and product transfer fees.
The turnover of the first four months of Ghc126.38 million was lower than the flexed budgeted figure of Ghc170.52 million, representing 26 percent below budget, and this recorded variance was as a result of a reduction in the volume of products stored in the refinery.
On the cost of sales, the Variance Report said Ghc114.12 million was more than the flexed budgeted amount of Ghc91.28 million, representing a negative variance of 25 percent of the budgeted amount.
The higher cost of sales, it said, was due to a surge in international prices and higher exchange rates.
On operating expenses of Ghc198.61 million was more than the budgeted amount of Ghc151.04 million, representing a negative variance of 31 percent of the budgeted amount.
Again, the higher operating expenses could be attributed to the higher exchange difference recorded during the period.
TOR’s four months’ liabilities amounted to Ghc2, 145.64 million with its long-term loan standing at Ghc267.40 million and a deferred tax of Ghc19.08 million.
In spite of government injecting an additional Ghc3, 488.21 million and shareholders’ funds amounting to Gh678.89 million as at the end of the first four months under review, the refinery’s liquidity position is not good.
The report was clear that the company is having serious difficulties meeting operating expenses such as personnel cost, utility bills, insurance premiums, ground rent and land lease payments, as well as statutory payments.
TOR’s total debt, as at April 30, 2019, was Ghc1.5 billion, after ESLA PLC had paid a total amount of Ghc1,135.38 million of legacy debts.
Qatargas Ships 3000th LNG Cargo To Japan
Doha-based liquefied natural gas company Qatargas has set another milestone as it successfully delivered the 3,000th LNG cargo to Japan.
The cargo was transported onboard Al Jasra, a conventional LNG vessel with a capacity of 135,000 cubic meters.
It was delivered to the Kawagoe LNG Receiving Terminal, owned and operated by JERA, a joint venture between Chubu Electric and Tokyo Electric.
Back in January 1997, the first-ever Qatari shipment was delivered to the abovementioned terminal in Japan.
“We are delighted to celebrate the 3000th LNG delivery to Japan. This significant milestone comes over two decades following the first delivery to our foundation customer in Japan,” Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, President & CEO of Qatar Petroleum, commented.
“Qatargas’ commitment to serving Japan’s energy needs has never been stronger. We are focused on boosting future cooperation with Japan,” Al-Kaabi, who is also Chairman of Qatargas Board of Directors added.
“We celebrate the uninterrupted supply of this 3000th LNG cargo to Japan, which is a major milestone reflecting the relationship between Qatargas and our esteemed Japanese customers. This delivery demonstrates Qatargas’ commitment to continue providing Japan, and all of our customers around the globe, with a safe and reliable source of clean energy,” Khalid bin Khalifa Al Thani, Chief Executive Officer of Qatargas said.
Qatargas has term contracts to supply LNG with many of the key Japanese buyers. Apart from these term contracts, Qatargas also delivers a significant amount of Japan’s spot LNG requirements.
Ghana: IPPs Commend Gov’t, Others For Stepping In To Avert Plant Shutdown
The Chamber of Independent Power Producers, Distributors and Bulk Consumers (CIPDIB) in the Republic of Ghana have commended all the stakeholders especially government, for stepping in to ensure that their challenge in getting payment for power supplied to ECG is resolved.
“CIPDIB particularly appreciates the role of government, ECG, PDS and the media in tackling the issue,” the chamber said in a press statement copied to energynewsafrica.com.
It would be recalled that the IPPs, in the West African country last week, threatened to shut down their plants if ECG and PDS failed to pay them over $700 million debt within seven days.
The development did not sit well with many Ghanaians and this generated a lingering media discussion.
In the heat of the threats, government, as reported by energynewsafrica.com, released an amount of GHc200 to ECG to defray part of the debts.
The chamber explained in the statement that “there are further commitments by the stakeholders to have the payments to IPPs well-structured, going forward.”
Below is the full statement
PRESS RELEASE
IPPS APPRECIATE EFFORTS BY STAKEHOLDERS TO AVERT SHUT DOWN
- The past week was particularly busy for the IPPs as they contemplated a shutdown of their plants due to mounting debt stocks.
- Even though this contemplation was a particularly difficult one for the IPPs, they were constrained by the huge debts which were choking their operations.
- Against this backdrop, the IPPs, under the umbrella body of CIPDIB, expressed their frustration with a view to having the matter resolved in the interest of our country.
- Since the matter came to the fore through the instrumentality of the vibrant media, stakeholders have been engaging behind the scenes to have the matter resolved.
- There are further commitments by the stakeholders to have the payments to IPPs well-structured going forward.
- 10.CIPDIB further calls for more engagement among industry players and important stakeholders with a view to guaranteeing stable power supply regime in our fledgling economy going forward.
82% Of LPG Stations In Central Region Pose Danger To Lives, Property
Some 67 out of the 81 Liquefied Petroleum Gas (LPG) stations in the Central Region of the Republic of Ghana, have been found to be exposed to a high level of danger to lives and property, according to the National Petroleum Authority (NPA).
The figure represents about 82.7 percent of gas stations sited in the region per a risk assessment exercise of all LPG retail outlets across the region..
Central Regional Minister Kwamena Duncan disclosed this at a town hall meeting organized by the NPA on the Cylinder Recirculation Model (CRM) of LPG distribution in Cape Coast, the region’s capital on Tuesday, July 16.
The event dubbed; “CRM: creating more jobs, securing our future” was part of a nationwide exercise to engage members of the public about the policy and their contributions towards the successful implementation of the policy which is geared towards addressing the needs of the consumer.
He said per assurances given, all the high-risk stations would have their retail outlets converted into cylinder distribution centres under the CRM “while the low-risk stations will be considered as autogas refilling only.”
“The CRM revolves around you the LPG marketers and distributors; so, when we hear concerns about job-losses, obviously, the facts do not support that conclusion,” he expressed.
Mr Duncan assured that government was mindful of the local content law which “stipulates that a venture like this should be fully reserved for Ghanaian equity participation; non-Ghanaians will not be allowed to operate under the model.”
Addressing the participants, Mr. Samuel Asare Bediako, Coordinator of Unified Petroleum Price Fund at NPA who represented the Chief Executive, reiterated over 4,500 direct jobs would be created when the CRM takes off.
He said the purpose of the CRM was aimed at providing direction for marketing and distribution of LPG in a safe and efficient manner, to facilitate an increase in access to LPG nationwide.
He said it was also to ensure safety and good environmental practices in the production, marketing and consumption LPG and “ensure the sustainability of supply and local content and participation in the LPG sub-sector in compliance with the Downstream Local Content Policy.”
The President of Central Regional House of Chiefs and Omanhene of Gomoa Ajumako Traditional Area, Obrempong Nyanful Krampah XII, called on the populace to support the new policy and assured the Chief’s in the region continuous support to see to its full implementation.
He said per assurances given, all the high-risk stations would have their retail outlets converted into cylinder distribution centres under the CRM “while the low-risk stations will be considered as autogas refilling only.”
“The CRM revolves around you the LPG marketers and distributors; so, when we hear concerns about job-losses, obviously, the facts do not support that conclusion,” he expressed.
Mr Duncan assured that government was mindful of the local content law which “stipulates that a venture like this should be fully reserved for Ghanaian equity participation; non-Ghanaians will not be allowed to operate under the model.”
Addressing the participants, Mr. Samuel Asare Bediako, Coordinator of Unified Petroleum Price Fund at NPA who represented the Chief Executive, reiterated over 4,500 direct jobs would be created when the CRM takes off.
He said the purpose of the CRM was aimed at providing direction for marketing and distribution of LPG in a safe and efficient manner, to facilitate an increase in access to LPG nationwide.
He said it was also to ensure safety and good environmental practices in the production, marketing and consumption LPG and “ensure the sustainability of supply and local content and participation in the LPG sub-sector in compliance with the Downstream Local Content Policy.”
The President of Central Regional House of Chiefs and Omanhene of Gomoa Ajumako Traditional Area, Obrempong Nyanful Krampah XII, called on the populace to support the new policy and assured the Chief’s in the region continuous support to see to its full implementation.
2019 Africa Oil Week To Witness New Features
Organizers of the Africa Oil Week, which is scheduled for November 4-8, 2019, in Cape Town, South Africa, have introduced new dynamic features into the annual gathering of industry players.
The new additions are Ministerial and VIP Programme, Prospect Forum, Bidding Rounds and Wells to Watch.
The AOW organizers announced this in a press release and copied to energynewsafrica.com.
According to the organizers, this year’s additions followed consultation with two expert advisory boards, and countless interviews with the industry, leading to the crafting of programme which, they said, puts deal-making front and centre of the agenda for the 1500+ delegates.
“A key aim of ours for the 2019 Summit is to ensure that capital is connected to the right opportunities. The Ministerial & VIP Programme is key to these efforts and will bring together the top 150 decision-makers and influencers in the African upstream space for investment and deal-making. This core group, we believe, will play a major role in the future development of the sector and, by extension, the economic development of Africa,” Kael O’Sullivan, who is the Director of Investor and VIP Relations, said.
Below is the full statement
For over twenty-five years, Africa Oil Week (www.Africa-OilWeek.com) has acted as a central hub for decision-makers in the African oil and gas sector, bringing together delegates from Marrakesh and Maputo to Lagos and Lusaka in Cape Town each November. Following consultation with two expert advisory boards, and countless interviews with the industry, this year organizers have crafted a programme that puts deal-making front and centre of the agenda for the 1500+ delegates.
In 2019, AOW will include the following dynamic features designed to foster business development:
Ministerial & VIP Programme
Projected to host 20+ government Ministers and 150+ CEOs, VPs and Investors in 2019, the aim of the Ministerial & VIP Programme is to act as a catalyst which moves projects towards Final Investment Decision. With a dedicated team on hand to facilitate introductions, delegates taking part in the Programme will be fast-tracked to the best opportunities in the African upstream.
In the words of Kael O’Sullivan, Director of Investor and VIP Relations: “A key aim of ours for the 2019 Summit is to ensure that capital is connected to the right opportunities. The Ministerial & VIP Programme is key to these efforts and will bring together the top 150 decision-makers and influencers in the African upstream space for investment and deal-making. This core group, we believe, will play a major role in the future development of the sector and, by extension, the economic development of Africa.”
Prospect Forum
After a well-received 2018 launch, the Prospect Forum returns to AOW this year with three days of insights into the most exciting plays across Africa. The data revealed at the forum will help define where Operators and Geophysical companies allocate their investments and attention during the coming years. Expect to hear from Independents including: Steve Jenkins, Chairman of Savannah Petroleum, Edward van Kersbergen, Founder and Chairman of Mazarine Energy and global geophysical players including: TGS, PGS and ION
Bidding Rounds
Aiming to match the success of last year’s Ghanaian, Congolese (ROC) and Sudanese licencing rounds, which resulted in the issue of multiple shallow water licences, it has been confirmed that further African nations will be offering licenses at the conference this year. Further information will be released soon.
Wells to Watch
The 26th Africa Oil Week will unveil the first ever Wells to Watch insight series, which will give delegates access to brand-new proprietary information about the most promising prospects on the continent. Highlights include Scott Macmillan, Managing Director of Invictus Energypresenting Zimbabwe’s SG 4571 and Alexander Mollinger, COO of Discover Exploration presenting Comoros blocks 35, 36 and 37.
For the latest news, as well as bidding round, VIP and Ministerial announcements, please visit: www.Africa-OilWeek.com. Find AOW in the CTICC 2, November 4-8, 2019.
Seadrill Bags Drilling Rig Gig In Gabon
Offshore drilling firm Seadrill Partners has secured a contract in Gabon for one of its drillships.
Seadrill Partners said Wednesday that its drillship West Polaris had secured a contract with PC Gabon Upstream for drilling operations in Gabon.
The contract is for one well, and it is expected to start in September 2019, running to the end of 2019.
According to the offshore drilling company, the backlog is expected to be approximately $22 million excluding mobilization fees.
The West Polaris is the 6th generation, dynamically positioned drillship delivered from the Samsung shipyard in 2008. It is currently warm-stacked in the Canary Islands.
Uganda Gov’t Frustrating Tullow Oil’s Attempt To Sell Stake
Endless negotiations with the Ugandan government are holding up Tullow Oil’s attempts to sell a 21.75% stake in its Ugandan holdings.
In a Bloomberg report Paul McDade, Tullow CEO, said efforts to offload the stake to its fellow partner in Uganda, Total, continue to stall with government persistently failing to give the deal a go-ahead.
“What we put together we thought was in the best interest of all parties, including the government of Uganda. We feel somewhat frustrated [two and half years] later that the efforts on that farm-down structure have been unsuccessful in completing,” he said, noting that they were now looking for alternative ways to get the deal done.
“What we are doing is gently standing back and looking at: Are there other ways to structure the deal? It’s really just about not continuing just to try and push the same thing,” McDade told Bloomberg.
While Tullow may be frustrated, other reports have the Energy Minister, Irene Muloni, wondering at the frustration.
Muloni told the Daily Monitor that the government was not aware of any frustration, wondering who Tullow had complained to. “Be fair. Tullow complained to who? To you?” she quizzed in a brief phone interview, noting she would give a full response after understanding the contents of the alleged frustration.
The Ugandan cabinet, in February, okayed the sale to Total E&P. And near the close of 2018 Muloni told the Daily Monitor, government had endorsed Tullow’s desire to sell its assets to Total E&P subject to the payment of $167 million (about Shs614b) in capital gains tax.
“On November 21, 2018 I gave conditional consent for this transaction, subject to payment of the tax obligations as assessed by Uganda Revenue Authority (URA),” she said at a briefing about the status of Uganda’s oil sector. “In principle, we do not have any problem with the arrangement: how they clear up the $167 million is something they will have to arrange with URA,” she said.
McDade, in the Bloomberg interview, did say that the current negotiations for the sale were focused on taxes related to the transaction, claiming that whereas Tullow had agreed to the principle terms for its portion of the levies earlier this year, the deal is yet to be finalized.
EU Sanctions Turkey For Drilling Offshore Cyprus
The European Union is set to sanction Turkey over ‘illegal’ drilling activities in the Eastern Mediterranean offshore Cyprus. The EU will, among other sanctions, stop high-level dialogues with Turkey and will reduce pre-accession assistance to Turkey for 2020.
First, Reuters last week reported it had seen documents showing that the EU was preparing to sanction Turkey for the deployment of two drillships in waters claimed by Cyprus.
Then, the confirmation of the reports came on Monday, with the European Foreign Affairs Council issuing a statement where it said it “deplores that, despite the European Union’s repeated calls to cease its illegal activities in the Eastern Mediterranean, Turkey continued its drilling operations west of Cyprus and launched a second drilling operation northeast of Cyprus within Cypriot territorial waters.”
It would be recalled that following the recent deployment of the Fatih drillship west of Cyprus, Turkish TPAO last week deployed the Yavuz drillship to east of Cyprus, claiming its drilling operations are legitimate as its drillships have been deployed in areas granted to Turkey by the Turkish Republic of Northern Cyprus – a self-declared state on Cyprus, recognized only by Turkey.
The European Council said Monday that in light of Turkey’s “continued and new illegal drilling activities,” the council would suspend negotiations on the comprehensive air transport agreement, and won’t hold the Association Council and further meetings of the EU-Turkey high-level dialogues for the time being.
The council also endorsed the European Commission’s proposal to reduce the pre-accession assistance to Turkey for 2020, which according to Euronews, amounts to €145.8 million.
The European Foreign Affairs Council also invited the European Investment Bank to review its lending activities in Turkey, notably with regard to sovereign-backed lending.
“The Council remains seized of the matter and, in accordance with the European Council conclusions of 20 June, invites the High Representative and the Commission to continue work on options for targeted measures in light of Turkey’s continued drilling activities in the Eastern Mediterranean. The Council will closely monitor developments and will revert to this issue as appropriate,” the Council said.
Turkey: We will continue drilling
Turkey’s ministry of foreign affairs said the measures by the EU will not in any way affect its drilling activities. Turkey also accused the EU of bias and of having no regard to Turkish Cypriots.
The Turkish foreign ministry said “The conclusions adopted by the EU Foreign Affairs Council yesterday (15 July) will in no way affect Turkey’s determination to continue its hydrocarbon activities in the Eastern Mediterranean. These conclusions demonstrate how prejudiced and biased the EU is with regard to Cyprus as they make no reference to the Turkish Cypriots, who have equal rights over the natural resources of the Island, in total disregard of their existence in Cyprus.”
“As we have repeatedly emphasized in the past, our hydrocarbon activities in the Eastern Mediterranean have two dimensions: the protection of our rights on our continental shelf, and the protection of the equal rights of the Turkish Cypriots, who are co-owners of the Island, over the hydrocarbon resources of the Island.”
“Our country will continue to protect both its own rights and the rights of Turkish Cypriots with determination, and will further boost its activities to this end. The EU, [which] has not kept its promises to the Turkish Cypriots since 26 April 2004, has no word to say to us in this regard.”
Source: Offshoreenergytoday.com