Abu Dhabi Launches Second Oil, Gas Exploration Bid Round
The Abu Dhabi National Oil Company (ADNOC) is launching Abu Dhabi’s second competitive bid round for oil and gas exploration of conventional and unconventional resources, the state oil firm said on Wednesday.
ADNOC and Abu Dhabi are opening for bidding five new blocks, including three offshore and two onshore blocks, with one of the onshore blocks offering two separate licensing opportunities for conventional and unconventional oil and gas, respectively.
“Based on existing data from detailed petroleum system studies, seismic surveys, exploration and appraisal wells data, estimates suggest the blocks in the second bid round hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas,” ADNOC said in today’s statement.
ADNOC will be accepting bids by the end of November 2019, after which the company will evaluate the bids received. The Supreme Petroleum Council (SPC) will award the successful bidders, ADNOC said.
The launch of second exploration bid round comes a year after ADNOC offered six oil and gas blocks for bidding in a first-ever competitive exploration and production bid round as part of its strategy to expand strategic partnerships in all business areas.
The first bid round concluded in March 2019, in which Abu Dhabi awarded two offshore blocks in concessions to a consortium led by Italy’s oil and gas major Eni and Thailand’s PTT Exploration and Production Public Company Limited (PTTEP). One onshore block went to India’s Bharat Petroleum Corporation Limited and Indian Oil Corporation Limited, another onshore block was awarded to Occidental Petroleum, and a third onshore block was awarded to Japan’s Inpex Corporation.
“The launch of Abu Dhabi’s second licensing bid round builds on the momentum of the first and very successful competitive bid round,” Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said.
“It demonstrates how ADNOC’s expanded approach to partnerships is enabling us to utilize value-add partnerships and smart technologies to drive new commercial opportunities and efficiently accelerate the exploration and development of Abu Dhabi’s untapped resources, in line with the leadership’s directives,” Al Jaber noted.
Source: Oilprice.com
Saudi Arabia, UAE “Draw The Death And Collapse Of OPEC
Namdar Zanganeh
In among the multitude of threats that Iran has made public since the US sanctions on Iran were levied, Iran has now heralded the collapse of OPEC, if OPEC members fill the void by snagging market share left unfilled by Iran and Venezuela, according to S&P Global Platts.
Iran’s oil minister said that two OPEC members were doing just that, accusing them of wielding their oil as a weapon. The two members Zanganeh was referring to were Saudi Arabia and the United Arab Emirates.
It’s interesting to note that both Saudi Arabia has unduly taken on the burden of cutting production. Saudi Arabia has agreed to keep its production to 10.311 million barrels per day, while the UAE’s target is 3.072 million bpd.
Saudi Arabia has been overachieving its share of the production cuts, producing 9.794 million bpd in March. Similarly, the UAE is producing closer to target—but is still under at 3.059 for March.
The “oil weapon”, then, to which Iran is referring, according to S&P Global Platts, is their contact with the United States to come up with a plan to ensure that the oil market is well supplied. Thus far, Saudi Arabia has not increased production to fill any void left by either Iran or Venezuela.
“By using oil as a weapon against two founding members of OPEC [Venezuela and Iran], [they] turn OPEC solidarity into division and draw the death and collapse of OPEC,” Zanganeh said, warning that any country using oil to this end should “accept its consequences.”
Iran and Venezuela have indeed suffered falling oil production as the sanctions on both countries restrict exports and cut out buyers such as India, South Korea, and Cuba who will have to shop elsewhere to obtain sufficient quantities of crude oil.
Venezuela’s oil production fell below 1 million bpd in March at 732,000 bpd, while Iran’s fell to 2.698 million bpd—with more decreases expected as the sanction waivers that eight countries have thus far enjoyed ended on May 1. Iran’s 208 average production was 3.553 million bpd, while Venezuela’s averaged 1.354 bpd, according to secondary sources provided by OPEC.
The tough times in which Iran and Venezuela now find themselves may continue to drive a wedge into the oil cartel as other members will naturally respond to market demand as they are able.
Source: Oilprice.com
Power Sector Workers Cry Over huge debts at May Day
Workers within Ghana’s Power Sector have expressed worry over what they described as huge indebtedness in the sector, which they claimed is stifling operations.
The workers communicated their grievances on placards they displayed at this year’s May Day celebration, which took place in all the regional capitals, with the national one held at the Black Star Square in Accra.
At the Black Star Square, some staff of the power company waved placards with inscriptions to drum home their SOS call to the President to save the power sector agencies from collapse.
Some of the placards read: ‘GRIDCo is bleeding’, ‘ECG/VALCO debt killing GRIDCo’, ‘No GRIDCo, no 1District, 1Factory’, ‘Energy sector without GRIDCo is useless’, ‘GRIDCo is viable; government pay us our ESLA debt’, ‘No ESLA money = dum dum’, ‘Government, don’t throw away GRIDCo like ECG’, ‘Current tariff killing GRIDCo’, ‘ESLA – GRIDCo = Dumsor’, ‘Mr President, aagbe GRIDCo’ and ‘Lack of maintenance = More dumsor’.
The country’s energy sector is saddled with debts running into billions of cedis.In August last year when GRIDCo celebrated its 10th anniversary CEO of the company, Mr Jonathan Amoako Baah revealed that Electricity Company of Ghana for instance owe GRIDCo about GHS900million.
Again early this year, CEO of Ghana Gas Dr Benjamin K. D Asante also revealed that Volta River Authority(VRA) is also owing them to the tune of about $750million for gas supplies.
Below are some of the messages on the placards the energy sector workers displayed at the May Day.
NPA commissions biggest Tanker Terminal in Kpone
The National Petroleum Authority (NPA) has commissioned a modern and the biggest Bulk Road Vehicles (BRVs) terminal at Kpone, in the Greater Accra Region.
The facility, which was started some years ago and completed this year at the cost of GHc17 million, can accommodate about 1000 BRVs.
The terminal, which is strategically located, is expected to ease traffic congestion around Tema Oil Refinery (TOR), as well as eliminate the dangers the BRVs posed to other road users due to how they park haphazardly along the roads linking Tema Oil Refinery and other Petroleum Products Storage Depots in Tema, because of the unavailability of spaces.
In his address, the Chief Executive of NPA, Mr. Hassan Tampuli, said the NPA wanted movement of tanker vehicles scheduled to load petroleum products properly regulated.
He noted a number of accidents were borne out of fatigue as a result of inadequate rest after a trip, hence, “the need to construct the tanker parking terminal to address any unforeseeable occurrences of accidents caused by drivers.”
“We, as stakeholders in the industry and operators of these tankers, therefore, have the responsibility to give members of the public the assurance that we are doing our utmost best to ensure their safety while we carry out our business,” he stressed.
He assured the tanker drivers that the NPA would continue to create an enabling environment for the operations of the transportation section of the Petroleum Downstream Industry.
He used the occasion to urge all tanker drivers to be more safety conscious by observing road traffic signs, and avoid excessive and reckless speeding, dangerous overtaking particularly in sharp bends and hilly areas, avoid night driving and use of mobile phones while driving.
“You are also urged to take the pre-trip inspections of your vehicles such as checking of tire pressure, headlights, hazard lights, tail/brake lights and pointers/traficators and windshield wipers very seriously,” he added.
On his part, the Minister for Energy, Mr John Peter Amewu, in a speech read on his behalf by the Managing Director of TOR, Mr Isaac Ossei, said “the parking of tanker vehicles, sometimes loaded with petroleum products, along these roads, poses a serious health and safety risk to life and property. I, therefore, commend the National Petroleum Authority for this laudable project.”
He said the facility would ensure efficiency in the distribution of petroleum products in the country.
Pledging government’s support to develop petroleum downstream sector, he said government would ensure the regular supply of petroleum products to all parts of the country “through a cost-effective and an efficient distribution system.”
The Energy Minister said issues on rehabilitation of pipelines from Tema to Akosombo, the possibility of a rail line between Tema and Kumasi, are all being given attention to reduce road transportation of petroleum products.
The MD of TOR, Mr Isaac Osei(middle) being assisted by CEO of NPA, Hassan Tampuli (left) and Board Chairman of NPA,Mr Addo Yobo to cut the tape to officially open the facility
The MD of TOR, Mr Isaac Osei(middle) being assisted by CEO of NPA, Hassan Tampuli (left) and Board Chairman of NPA,Mr Addo Yobo to cut the tape to officially open the facility
Buffett To Back Occidental With $10B In Bidding War For Anadarko
Warren Buffett
Warren Buffett’s Berkshire Hathaway has committed to invest US$10 billion in equity in Occidental Petroleum if Occidental completes its proposed acquisition of Anadarko, Occidental said on Tuesday, a day after Anadarko said that it would resume talks with Occidental despite having agreed to a deal with Chevron.
Contingent upon Occidental completing the acquisition of Anadarko, Berkshire Hathaway will receive 100,000 shares of Cumulative Perpetual Preferred Stock with a liquidation value of US$100,000 per share, together with a warrant to purchase up to 80.0 million shares of Occidental common stock at an exercise price of US$62.50 per share, Occidental said.
“We have long believed that Occidental is uniquely positioned to generate compelling value from Anadarko’s highly complementary asset portfolio. We are thrilled to have Berkshire Hathaway’s financial support of this exciting opportunity,” Occidental’s president and CEO Vicki Hollub said.
On Monday, Anadarko said that it plans to resume negotiations with Occidental after Occidental announced last week a proposal to buy Anadarko at a higher price than Anadarko had agreed in a deal with Chevron announced earlier this month.
While negotiations are being held, the Chevron Merger Agreement “remains in effect and accordingly the Anadarko board reaffirms its existing recommendation of the transaction with Chevron at this time,” Anadarko said yesterday, noting that there is no guarantee that the talks would necessarily result in a superior transaction than the one pending with Chevron.
Chevron said on April 12 that it had entered into a definitive agreement to buy Anadarko in a stock and cash transaction valued at US$33 billion that would boost Chevron’s position in the Permian, the Gulf of Mexico, and in liquefied natural gas (LNG).
On April 24, Occidental Petroleum said that it is proposing to buy Anadarko at a higher price than the one Anadarko had accepted from Chevron, opening a bidding war for one of the U.S. companies with the strongest positions in the Permian.
Source: Oilprice.com
Our desire is for Ghanaians to have reliable and affordable electricity supply-Prez Akufo-Addo
Ghana’s President Nana Akufo-Addo has said it is the desire of his administration to ensure that Ghanaians especially businesses, have access to reliable and affordable power supply to spur industrialization in the country.
According to the President, a reliable and an affordable power supply is crucial to the survival of government’s ‘1 District 1 Factory’ initiative, which is intended to propel industrial and economic growth in the country.
President Akufo-Addo expressed this in a speech delivered on his behalf by the Chief of Staff Mrs. Akosua Frema Osei Opare at a sod cutting ceremony for the construction of a 330kV Bulk Supply Point at Pokuase, in the Greater Accra Region.
The project, which is the first project under the Ghana Power Compact II, when completed would help to improve power supply in Pokuase, Kwabenya,Nsawam, Legon and the surrounding communities.
The US$33 million project, which is being executed by Elecnor of Spain, is expected to be completed in the first quarter of 2021.
It is the first project under the Ghana Power II spearheaded by the Millennium Challenge Corporation (MCC) through the Millennium Development Authority, leading to the private sector participation in Ghana’s power sector by Power Distribution Services (PDS) Ghana limited.
The project, when completed, would help improve power supply in Pokuase, Nsawam, Kwabenya, Legon and the surrounding communities.”We believe that availability of affordable electricity is crucial to the success of our industrialization endeavours, such as the 1 District, 1 Factory initiative,” he said.
Minister for Energy John-Peter Amewu, who highlighted the importance of the Bulk Supply Point as far as power supply in the country is concerned, however, called on the contractor to make sure that the project is executed in accordance with specification.
He said, under the current administration led by President Akufo-Addo, the situation whereby contractors fail to execute projects according to specification would not be tolerated.
Pokuase Gets 330kV Bulk Supply Point To Improve Power Supply
A ground breaking ceremony has been performed for the construction of 330kV Bulk Supply Point at Pokuase in the Greater Accra Region of Ghana.
The US$33 million project, which is being executed by Elecnor of Spain, is expected to be completed in the first quarter of 2021.
It is the first project under the Ghana Power II spearheaded by the Millennium Challenge Corporation (MCC) through the Millennium Development Authority, leading to the private sector participation in Ghana’s power sector by Power Distribution Services (PDS) Ghana limited.
The project, when completed, would help improve power supply in Pokuase, Nsawam, Kwabenya, Legon and the surrounding towns.
Delivering a welcome address at the sod cutting ceremony, Tuesday, 30th April, 2019, Board Chairperson for Millennium Development Authority Prof. Yaa Ntiamoa-Baidu said the Bulk Supply Point would enhance significantly the services provided by PDS to its customers in Pokuase and the surrounding towns.
According to her, besides the project, there are other infrastructural projects in the pipeline. These, she said, include seven primary sub-stations, replete with their interconnecting circuits and low voltage Line Bifurcation Activities to cover Accra East and Accra West Regions of PDS’s operations.
“I’m happy to add that significant progress has also been made in installing IT driven state-of-the-art Meter Management Systems, Geographical Information Systems, Outage Management System, Enterprise Resource Planning Systems and a Data Centre. These are inputs needed for what will become a well-run and competitive distribution operations. A total of US$55.2million will fund these projects,” she said.
According to her, MiDA is confident that Messrs Elecnor, which is the first contractor for the infrastructural projects under the compact, would engage all the parties to the project and work harmoniously with them to ensure the completion and delivery of the project within 24 months’ construction period.
She charged the contractor to set the best example in handling the project for others to emulate.
Prof. Ntiamoa-Baidu commended the people of the United States of America, through the Millennium Challenge Corporation, for the intervention which would increase reliable power supply.
Ghana: Use laid down procedures to get your grievances resolved-BOST MD to workers
Ahead of May Day tomorrow, the Board of Directors and Management of the Bulk Oil Storage and Transportation (BOST) Company have commended the workers for their contributions towards the shaping of the company.
In a brief touching message to the workers, Managing Director of BOST, Mr. George Mensah Okley, commended the entire workers for their commitment and dedication towards the forward march of the company.
“The staff, both juniors and seniors, over the years, have displayed loyalty, commitment and responded to calls to duty and must be parted on the back,” he said.
He continued that “management and board of BOST are delighted to have first class calibre of workers who understand the vision and mission of the company.”
According to him, management and board would continue to fashion out programmes and policies that would inure to the benefit of the staff and the company.
He advised the workers to use laid down procedures to get their grievances addressed instead of resorting to ways that would bring the name of BOST into disrepute.
“On the occasion of the Labour Day, we wish everyone well and pray that we continue to hold each other’s hands for the betterment of BOST and mother Ghana,” he said.
BP profit dips on lower prices
British oil major BP posted a slight dip in the first quarter underlying replacement cost (RC) profit, citing the weaker oil price and margin environment at the start of the quarter.
The company’s underlying RC profit, BP’s definition of net profit, was $2.4 billion for 1Q 2019, down from $2,6 billion in the corresponding quarter last year.
Upstream production, excluding Rosneft, for the quarter was 2,656 mboe/d, 2% higher than a year earlier due to the acquisition of the BHP assets and growth of major projects.
To remind, BP in October 2019, acquired BHP’s subsidiary Petrohawk Energy Corporation, a wholly owned subsidiary of BHP that holds a portfolio of unconventional onshore US oil and gas assets.
As for the upstream highlights in the first quarter of 2019, BP’s Constellation field in the Gulf of Mexico was the company’s first Upstream major project brought online in 2019. The Constellation start-up was followed by the second stage of the West Nile Delta development, the Giza and Fayoum fields, in Egypt and the Angelin development offshore Trinidad.
“These are the first of five Upstream major projects expected to begin production in 2019. BP has now safely brought 22 new upstream major projects into production since 2016, remaining on track to deliver 900,000boe/d from new projects by 2021,” BP said on Monday.
Since the start of the year, BP has taken final investment decisions on the Atlantis Phase 3 development in the Gulf of Mexico, Azeri Central East in Azerbaijan and Seagull in the UK North Sea. On 1 March, BPX Energy assumed full control of the BHP acquired US field operations.
In March, BP confirmed a gas discovery, operated by Eni, in the Nour North Sinai offshore prospect in the Egyptian Eastern Mediterranean.
“Looking ahead, we expect second-quarter 2019 reported production to be broadly flat with the first quarter reflecting ramp up of major projects offset by ongoing seasonal turnaround and maintenance activities in high margin regions,” BP said.
Aker Solutions books higher profit, expects increase in energy demand
Aker Solutions recorded an increase in its first quarter 2019 net income which totaled NOK 149 million ($17.2M) compared to NOK 105 million ($12.1M) in the prior-year period.
Revenue rose 32% to NOK 7.3 billion ($844M) in the first quarter 2019 from NOK 5.5 billion ($635.9M) a year earlier, supported by progress and deliveries on key projects in several markets.
Aker Solutions has two reporting segments: Projects and Services.
Revenue in Projects rose 40 percent to NOK 6 billion in the quarter from NOK 4.2 billion a year earlier, mainly driven by the field design sub segment.
Revenue in Services was NOK 1.3 billion, up 12 percent from NOK 1.2 billion in the same quarter last year, with the increase driven by international growth in the company’s production asset services sub-segment.
Orders totaled NOK 5.5 billion in the quarter, bringing the backlog to NOK 33.3 billion. Key awards included the subsea gas compression FEED contract from Chevron for the Jansz-Io field offshore Australia.
“This is the international breakthrough for our subsea compression technology, which already has provided great results at Åsgard for Equinor since 2015,” said Aker Solutions’ Chief Executive Officer Luis Araujo.
According to the company, tendering activity remains high in main markets – and Aker Solutions is currently bidding for contracts totaling about NOK 55 billion. The majority of this is in the subsea area – and key projects are anticipated to be awarded this year.
In the longer term, Aker Solutions expects an increase in global energy demand and that investment efforts in sustainable energy solutions will be rewarded.
Aker Solutions sees overall revenue in 2019 up close to 10 percent from 2018 on the back of a strong order intake last year and continued high tendering activity.
Source: Offshoreenergytoday.com
Top 2019 GOM Equity Producers
A combined Chevron Corporation and Anadarko Petroleum Corporation entity would take first place in a table of top 2019 Gulf of Mexico (GOM) equity producers, Rystad Energy has confirmed.
The combined entity would produce just over 400,000 barrels of oil equivalent per day from the region, according to Rystad Energy, which listed BP plc and Royal Dutch Shell plc as second and third in the list, respectively. Equinor ASA and Fieldwood Energy LLC placed fourth and fifth, respectively, in Rystad Energy’s rankings.
The remaining companies in Rystad Energy’s top 10 list of 2019 GOM Equity producers can be seen below. Companies are placed in order.
6. ExxonMobil Corporation
7. BHP
8. The combined Murphy and LLOG entity
9. Hess Corporation
10. Talos Energy Inc
On April 12, Chevron revealed that it had entered into an agreement to buy Anadarko. The deal would shake up the U.S. upstream sector, creating a company that rivals ExxonMobil domestically, according to GlobalData.
Following the agreement, Occidental Petroleum Corporation made a proposal to acquire Anadarko on April 24. Occidental’s proposed Anadarko deal would put the company alongside ConocoPhillips in a peer group of two as a “super-independent”, according to Zoe Sutherland, a corporate analyst at Wood Mackenzie.
On April 23, Murphy Oil Corporation revealed that its subsidiary, Murphy Exploration & Production Co. – USA, had entered into a definitive agreement to acquire deepwater GOM assets from LLOG Exploration Offshore LLC and LLOG Bluewater Holdings LLC.
Bidding War Heats Up As Anadarko Plans To Negotiate Occidental’s Bid
Anadarko Petroleum Corporation said on Monday that it plans to resume negotiations with Occidental Petroleum after Occidental announced last week a proposal to buy Anadarko at a higher price than Anadarko had agreed in a deal with Chevron announced earlier this month.
Chevron said on April 12 that it had entered into a definitive agreement to buy Anadarko in a stock and cash transaction valued at US$33 billion that would boost Chevron’s position in the Permian, the Gulf of Mexico, and in liquefied natural gas (LNG).
Last Wednesday, Occidental Petroleum said that it is proposing to buy Anadarko at a higher price than the one Anadarko had accepted from Chevron, opening a bidding war for one of the U.S. companies with the strongest positions in the Permian.
Occidental Petroleum sent a letter to Anadarko’s board of directors on April 24, offering “a superior proposal” to buy Anadarko for $76.00 per share, in which Anadarko shareholders would receive $38.00 in cash and 0.6094 shares of Occidental common stock for each share of Anadarko common stock.
The $76.00 per share cash-and-stock proposal from Occidental represents a premium of around 20 percent to the current value of the transaction with Chevron that Anadarko had accepted, Occidental said in a statement.
Today, Anadarko said that it “is resuming its earlier negotiations with Occidental because Anadarko’s board of directors, following consultation with its financial and legal advisors, has unanimously determined that the Occidental Proposal could reasonably be expected to result in a ‘Superior Proposal’ as defined in the Chevron Merger Agreement. The Occidental Proposal reflects significant improvement with respect to indicative value, terms and conditions, and closing certainty as compared to any previous proposal Occidental made to Anadarko.”
While negotiations are being held, the Chevron Merger Agreement “remains in effect and accordingly the Anadarko board reaffirms its existing recommendation of the transaction with Chevron at this time,” Anadarko said, noting that there is no guarantee that the talks would necessarily result in a superior transaction than the one pending with Chevron.
Source: Oilprice.com
Energy Economist asks 17 questions about Aker Energy Deal
A Petroleum Economist and Political Risk Analyst Dr Theo Acheampong has waded into the ‘controversial’ Aker Energy deal by asking about 17 questions regarding the deal.
Policy Think Tank MANI-Africa and Ministry of Energy seem to be at war over the 450-550 million barrels of oil discovered by Aker Energy in the Pecan South-1A well in the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana.
According to IMANI-Africa, the Petroleum Agreement (PA), covering the new discovery, worth more than $30 billion, expired in 2014 and by law, did not automatically fall under the company’s PA with the government.
At a media engagement in Accra, Senior Vice President of IMANI, Kofi Bentil, asked the government not to approve Aker Energy’s Plan of Development submitted for approval last month, in its current form.
According to Mr Bentil, the new discoveries, by law, ought to be negotiated under a new PA as stipulated by the Petroleum (Exploration and Production) Act, 2016 Act 919 but the government seemed uninterested in the gains.
He said if the government failed to clarify circumstances surrounding the agreement with Aker Energy, IMANI and its associates would go to court to seek declaration on the ownership on the discovery.
But the Energy Minister, John-Peter Amewu, at a news briefing in Accra, described the claims by IMANI as total falsehood.
In providing some background information on the agreement, Mr. Amewu said the PA covering the DWT/CTP contract area operated by Aker Energy was executed on 8thFebruary, 2006, between the Government of Ghana -GNPC, AMERADA HESS Corporation, Lukoil-and FUELTRADE subsequently formed in 2015.
He disclosed that Fueltrade’s participating interest was set at 2% for which it paid about US$9 million with a performance guarantee of US$2 million.
“The contract area has 7 discoveries namely pecan north, almond, cob, beech, pecan, paradise and hickory north. The first five are oil discoveries while paradise and hickory north are gas discoveries. Aker Energy acquired the interest of AMERADA HESS Ghana Limited in February 2018 and proceeded to continue the unfinished works under the programme of appraisal to HESS,” he added.
The Energy Minister criticised IMANI for misinforming Ghanaians on a potential loss of US$30 billion to the country, if the government failed to negotiate a new petroleum agreement.
“IMANI tried to alarm Ghanaians about a potential loss of US$30 billion to the country if the government failed to negotiate a new petroleum agreement with new terms with the DWT/CTP partners. This is absolutely false,” he said.
Below are Dr. Theo Acheampong’s questions:
BEGGING QUESTIONS ON OIL AND GAS INDUSTRY
1. When was the original Hess Agreement ratified by Parliament for the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana, and what was the total exploration period duration?
2. When did exploration cease; and did the Minister of Energy give any extensions, when and why?
3. At the time of Hess’ exit in June 2018, what was the status of the seven (7) discoveries namely Pecan North, Almond, Cob, Beech, Pecan, Paradise and Hickory North?
4. Were these seven (7) discoveries all appraised and what was the result of the appraisal for each of the discoveries?
5. Did Hess declare commerciality on any of the discoveries? If so, which of the discoveries and when were these commercialities declared for each discovery?
6. What was the status of the Pecan discovery at the time of Hess’ exit? How many wells had been drilled? Was any well drilled during the appraisal period?
7. What are the current dimensions of the production and discovery area for the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana?
8. What was the objective of the four-well new drilling programme by Aker approved by the Petroleum Commission for Pecan-4A, Pecan South and Pecan South East?
9. What are the exact locations of the four new ‘appraisal’ wells and what is the status of the appraisal report?
10. Is there any pressure communication between the reservoirs of the Pecan4A and Pecan South and main Pecan field — that is, is this an extension of the same field, and if it is not, then is that now what the petroleum agreement defines as a discovery?
11. What is the position of the Petroleum Agreement, E&P law and other regulations on the classification of exploration or appraisal wells including new exploration activity during the appraisal period?
12. What were the factors that led to Hess’ decision to sell its equity in the field, and why did it fail to submit a Plan for Development and Operations (PDO)?
13. What is the format for submission of a Plan for Development and Operations (PDO)?
14. Did the new operator follow this prescribed format when it submitted its PDO on 28 March 2019?
15. What is the procedure/process for approving a PDO?
16. Who is telling the truth: is the basis for IMANI’s $30bn gross valuation of the Deepwater Tano Cape Three Points (DWT/CTP) block right given the known reserves and resources?
17. What is the procedure for extension of petroleum agreements?
Tanzania approves $309m for Stiegler’s Gorge contractor
The Tanzanian government continues to provide support for the development of the Stiegler’s Gorge Hydropower project on Rufiji River, with the latest being the issuance of an advance payment totaling $309.645 million to Egyptian company- Arab contractors to enable the construction of the project.
According to the Citizen, the advance payment forms part of 15% of the total cost of the project, furthermore, clause 14.2 of the signed contract stated that the 15% advancement payment has been portioned at 30% local and 70% foreign currency (US Dollar).
Permanent Secretary Ministry of Energy Dr Hamis Mwinyimvua elaborated: “What is being paid…is 70% foreign portion of the advance payment. The local portion (30%) will be settled once contractual processes are finalised by the contractor.”
The Citizen reports that on 15 April 2019, CRDB and UBA banks issued Advance Payment and Performance Guarantees to the Contractor-the joint venture of Arab Contractors and Elsewedy Electric S.A.E as per the project requirements.
“The issued guarantees triggered the next milestones of the project including settling of the advance payment by the client which is happening today,” said Dr. Mwinyimvua.
The minister added: “I’m very confident that the advance payment settled today will enable the contractor now to fully mobilize and immediately begin implementation of the works as agreed.”
Meeting environmental requirements
Earlier this year Tanzania’s National Environmental Management Council approved the construction of the planned 2,100MW hydroelectric dam and assured that it will not have adverse impact on the local ecology.
“We are determined to make sure that all water sources in Morogoro, Iringa, Dodoma, Njombe, Mbeya and Ruvuma regions are well protected and sustained,” said the director general of the Council, Dr Samuel Gwamaka.
The development of this hydropower project has been surrounded by a lot of criticism from various stakeholders because of its location close to the Selous Game Reserve.
However, addressing the concerns, President John Magufuli previously said: “After all, only 3.5% of the total area in the reserve will be used for hydro-electric power generation. However, wildlife will get enough drinking water compared to the past.”