contents · at mhs aviation. the appointment was with immediate effect. prior to this position she...

DEPARTMENTSMoving OnMessage from the EditorAfrica’s Big FiveAfrica at LargeDownstream NewsMarket MoversAround the World

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ON THE COVER

ContentsVol. 14 Issue 6August/September 2016

African FocusUganda Overview

Libya Overview

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African PoliticsPower & AlternativesFacts and FiguresConferencesWord SearchRecruitmentAdvertisers’ Index

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Wintershall operations in Libya in peaceful times

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38Statoil in the Murzuq Basin

Monthly FocusNOC of the Year 32

Technology and SolutionsDefining Potential with Advanced Seismic Techs 28

Oil SecurityGabon: The Price of Stability 22

Women in EnergySariel Etwire: Ghana’s Metering Chief 42

Downstream FocusLNG to Power

The Importance of Power Generation

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Book ReviewAfrica Uprising: Popular Protest and Political Change 24

Mozambique’s Gas Monetization Options 18

Local Impact

Polarcus Amani sets acquisition records

New Products & ServicesMirmorax Launches Desktop Oil-in-Water Analyzer

New Air Driven Liquid Pump Released

Lucrative Waste Heat Recovery

Largest Hole-Size LWD Density Service Debuts

New Epoxy Linings for Assets in Challenging Environments

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Petroleum Africa August/September 20162

Egypt’s Minister of Petroleum and MineralResources, Tarek El Molla, has named thechairman of Gupco, Abed Ezz El Regal, as thenew VP of EGAS. Gupco’s operations GM,Nabil Salah El Din, has been promoted tochairperson of Gupco. El Molla also appointedMustafa Taher, VP of West Bakr Petroleumfor Exploration, as president of Esh El MallahaPetroleum Co.

Rowan Companies appointed Charles L. Szewsto its board of directors with immediateeffect. Szews previously served as CEO ofOshkosh Corp.

Aqualis Offshore appointed Ben Lazenby asdirector of the company’s Middle East operationsfrom his current position as regional marinedirector. Lazenby succeeds Reuben Segal whowill now concentrate fully on his role as COO.

Puma Energy named Alessio Torelli as GlobalHead of Retail. Torelli joins Puma from ENIRefining & Marketing. The company alsonamed Andrew McClarron as Global Head ofCompliance. Previously, McClarron worked atBP where he was responsible for the Ethicsand Compliance program for a number ofglobal businesses.

Prior Diesel appointed Matt Dack as businessdevelopment manager. Dack has been with thecompany for more than 25 years, previouslyholding the position of service manager

SBM Offshore’s Supervisory Board hasnominated D.H.M. Wood as management boardmember and CFO. Wood will replace currentCFO P.M. van Rossum who will retire after theAGM in 2017. Wood has worked at Royal DutchShell since 1993 in various financial andmanagement positions, including as VP ofFinance & Planning Exploration.

T.D. Williamson’s board chairman and pastpresident and CEO, Richard B. Williamson isretiring and will assume the position of chairmanemeritus. He is succeeded by his brother StephenWilliamson, who has served on the board ofdirectors since 1977 and most recently held theposition of vice chairman.

Marathon Oil promoted T. Mitch Little toexecutive VP, Operations. Little has held a numberof subsurface and management positions acrossthe company's operations in the US andinternationally including Equatorial Guinea,Gabon, and Libya. In conjunction with thischange, Cathy Krajicek, currently VP ofTechnology and Innovation, has acceptedthe role of VP, Conventional. BruceMcCullough, currently VP and CIO, has acceptedthe role of VP, Technology and Innovation, andretains his role as CIO. Lance Robertson, VP,Resource Plays, has elected to leave thecompany to pursue other opportunities.Unrelated to the organizational changesnoted above, J.R. Sult, executive VP and CFO,has elected to leave the company for personalreasons. Pat Wagner has been appointedinterim CFO.

2H Offshore appointed Yann Helle as managingdirector. Helle replaces Tim Eyles who is movingto the role of VP with parent company Acteon.He previously held the position of technicalmanager with the firm.

National Oilwell Varco promoted Isaac H.Joseph to President, Wellbore Technologies.Following the merger between National Oil Welland Varco in 2005, Joseph was named Presidentof NOV Tuboscope.

Anadarko Petroleum elected David E.Constable to serve as an independent directorof the company, effective immediately. Constableis the former president and CEO of Sasol.

Saipem announced it has appointed GaetanoColucci as senior VP of Public Affairs andCommunication. Colucci has many years ofexperience in the field of integrated institutionalcommunications, having overseen relations withinstitutions and the media as well as CSR projectsfor numerous companies, among themSnam S.p.A., Eni S.p.A., Sintonia S.A.(Benetton Group) and Gestoredei ServiziEnergetici S.p.A.

Geospatial Corp. added Todd Porter to itsmanagement team. Porter brings 30 plus yearsof experience and active relationships in theenergy markets to the company.

Dele Alimi has been appointed MD of the newClarion Events West Africa office (CEWA)that has opened in Lagos, Nigeria. Alimi waspreviously the director, Trade Promotion &International Relations, at the Lagos Chamberof Commerce & Industry in Lagos.

William E. Albrecht has been named toHalliburton’s board of directors. Albrecht hasmore than 35 years of experience in the oil andgas industry. He previously served as VP ofOccidental Petroleum Corp. from 2008 to 2014and as President, Oxy Oil & Gas, Americasfrom 2012 to 2014. He also served as President- Oxy Oil & Gas, USA from 2008 to 2012.

Petra Steffen was named manager ofCommunications and International Key Accountsat MHS Aviation. The appointment was withimmediate effect. Prior to this position she workedas marketing and public relations specialist withOHS Aviation Services.

To include a corporate personnel announcement in Moving On, write to [email protected]. Preference will be given to Africa-specific appointments and to thosecompanies who have interests within the continent; all others will be included on a space available basis.

Moving On

Ernest Rubondo wasappointed executivedirector of the PetroleumAuthority of Uganda.Rubondo previouslyw o r k e d w i t h t h ePetroleum Explorationa n d P r o d u c t i o nDepartment (PEPD)under the Ministry of

Energy and Mineral Development since itsinception in 1991 and grew through the ranksto become the head of Department in 2009.In 2015 he became the Director for Petroleumin the Ministry, a position he held until thisappointment.

Ernest Rubondo

Ola Fjeld has beenappointed as a non-executive director ofAminex with immediateeffect. Fjeld is currentlyCOO of Ara Petroleumin Oman and has heldpositions with Geoteam,PGS, and Fugro. Aminexalso revealed that Philip

Thompson is standing down from the boardand from his executive role in the companywith immediate effect.

Ola Fjeld

T h e U S - A n g o l aChamber of Commerce(USACC) named Mariada Cruz president ,effective immediately. Aspresident, da Cruz willhave responsibility foroverseeing USACC’soperations in the US andAngola. An 11-year

veteran of USACC, Cruz served since 2009as executive director in the US and previouslyheld the position of deputy director andprogram assistant.

Maria da Cruz

Sound Energy hasstrengthened its boardwith the appointment ofMutiu Sunmonu as non-executive chairman of thecompany. Sunmonu is theformer managing directorof Shell and countrychairman for Shell’soperations in Nigeria.

Mutiu Sunmonu

Petroleum Africa August/September 2016 3

Advertising RepresentativesAustria, Germany, SwitzerlandEisenacher MedienErhardt EisenacherTel: +49 0228 2499 [email protected]

GhanaResearch Development &Financial Consultants Ltd.Janice OdonkorTel: +233 302 767 [email protected]

ItalyEdiconsult InternazionaleAnna De BortoliTel: +39 02 477 100 [email protected]

NigeriaOil & Gas Soft SkillsEmmanuel EmieluTel: +234 803 308 [email protected]

North & South AmericaEric FreerTel: +1 281 384 [email protected]

RussiaOil & Gas EurasiaTel: +7 495 781 [email protected]

United KingdomGayle MeikleTel: +44 (0) 20 7193 [email protected]

Global InquiriesFarrah Younes/Jina SellersTel/Fax: +1 713 867 [email protected]

CONTACT USDeputy EditorJennifer [email protected]

Senior CorrespondentMark Pabst

ContributorsEdna OliveiraGarry PeggRicardo SilvaStefan Chapman Operations ManagerAlan Younes

Art DirectorMario Saad

Client Relations andDigital Media ManagerBasma Awdan

Circulation ManagerSilvia Rafaat

Distribution CoordinatorAmira A.Wahab

Database CoordinatorOlabisi Ijeh

Senior AccountantSaid Adly

Advertising/SalesJina Sellers

IT and Social MediaFarrah Younes

Administrative AssistantDalia Abd El-Wahab

Africa Headquarters10G Ahmed Abd El-Aziz St.,New Maadi, Cairo, EgyptTel/Fax: +2 02 2517 [email protected]

[email protected] visit www.petroleumafrica.com

As my regular readers are aware, I like to get off topic once in a while and discussother matters relating to Africa, most often sports or culture. The 2016 SummerOlympics in Rio provides a perfect opportunity. The continent was well representednot only in track & field where African nations historically have a tough contingent,but also in judo, soccer, swimming, taekwondo, and several other events.

Kenya stole the show for Africa finishing with six gold medals, and thirteen overall.Three African countries waited until the penultimate day to earn their first medals ofthe entire Games: Nigeria (bronze in men’s soccer), Niger (silver in men’s taekwondo80kg+), and Burundi (silver in women’s 800 meter). For Niger and Burundi, theseare only their second Olympic medals of all time, with Niger earning a bronze backin 1972 and Burundi a gold in 1996.

Also allowed to compete from Africa with special refugee status were five athletesfrom South Sudan (track & field), two from the Democratic Republic of Congo (judo),and one from Ethiopia (track & field). While these athletes were afforded the opportunityto compete, the only one to advance was Yonas Kinde who finished 90th in themarathon. A number of other African nations also competed at the Rio games, Djiboutiand Ghana among them, but did not finish with a medal. My congratulations goes outto all of the athletes who participated in the 2016 Summer Olympics. Medal or not,it is an extraordinairy honor to represent you country on a global stage.

This issue provides an in-depth look at both Libya and Uganda; learn more aboutLibya’s battle to get back on top and Uganda’s latest plans for bringing its considerablereserves to production in our Africa Focus section. Our Downstream Focus includesa couple of articles that discuss power options in the continent, including LNG. MarkPabst gives an insight into what is really going on in Gabon’s political arena in theOil Security article. And finally, our NOC of the Year is named in our Monthly Focusfeature. As always, your comments and suggestions are welcome and can be sent [email protected].

Dianne SutherlandChief Editor

MESSAGEF R O M T H E E D I T O R


Petroleum Africa Magazine is aTexas, United States-registered company.PO Box 1571 Montgomery, TX 77356

RANK

15

30

44

51

62

69*

69*

75*

75*

78*

78*

COUNTRY

KENYA

SOUTH AFRICA

ETHIOPIA

COTE D’IVOIRE

ALGERIA

BURUNDI

NIGER

EGYPT

TUNISIA

MOROCCO

NIGERIA

GOLD

6

2

1

1

0

0

0

0

0

0

0

SILVER

6

6

2

0

2

1

1

0

0

0

0

BRONZE

1

2

5

1

0

0

0

3

3

1

1

TOTAL

13

10

8

2

2

1

1

3

3

1

1

Sport

All Track & Field

Rowing, Rugby Sevens,

Swimming, Track &

Field

All Track & Field

Taekwondo

All Track & Field

Track & Field

Taekwondo

Taekwondo,

Weightlifting

Fencing, Taekwondo,

Wrestling

Boxing

Soccer

Africa’s Rio Medal RankingsAfrica’s Rio Medal Rankings

*Multiple countries tied in stated position for that ranking


ENI Spuds Offshore LibyaENI spud a new well offshore Libya. The Italianfirm spud the C1-16/3 well on Contract Area Don July 24, according to a release on theNOC website.

Contract Area D was granted to ENI under theEPSA IV contract model signed between thecompany and NOC in January 2008.

The well will be drilled in a water depth of515 feet, south of the Bahr-Essalam gas field.The well is expected to be drilled to a totaldepth of 10,845 feet and should be completewithin 77 days.

Zohr Estimates on the RiseReports have estimated reserves for ENI’s supergiant Zohr gas field offshore Egypt climbing.New estimates put the field at 32 Tcf of naturalgas, up from the previous estimate of 30 Tcf.

ENI has begun drilling the fifth of six plannedappraisal wells for the first phase of the Zohrdevelopment so reserves could potentially climbeven higher.

Following the discovery of the Zohr field, ENI’sCEO Claudio Descalzi said: “This historicdiscovery will be able to transform the energysector of Egypt.”

Erin Progresses onCorporate and Operational FrontsErin Energy continued to make progress in Q2with its balance sheet restructuring and debtreduction initiatives, according to CEO SegunOmidele in the company’s Q2 report. It hassuccessfully restructured its Zenith term loanfacility and realized revenues of $23.2 millionfor the quarter.

Erin’s cost-reducing strategies initiated in Q1have become deeply embedded in its operations.The company has also made the “tactical decision”to explore acquisition opportunities given thecurrent upstream environment.

Operationally in Nigeria during Q2, the companybrought the Oyo-8 well back online using adeepwater light intervention vessel and achievednet average daily oil production of 5,400 bpd,compared to 1,800 bpd in the previousquarter. Currently, Oyo-8 is producing more than7,000 bpd.

The Oyo-7 well has not been able to come backonline naturally following an emergency shutdown on July 1. This is due to high waterproduction from the well which has resulted in

a temporary production loss of about 1,400 bpd.Erin is currently attempting to bring the Oyo-7back by introducing nitrogen from the productionfacilities via subsea infrastructure to the well.The company intended to carry out this nitrogenlift after its next crude lifting.

Progress on preparations for the next drillingcampaign, which is planned to commence in Q4,is being made. Both the identification of a drillingrig and the procurement of long-lead well andsubsea equipment are progressing.

The Oyo-9 production well is planned as anadditional development well within thecentral area of the Oyo field in Oil MiningLease 120 and will be tied into the existingproduct ion faci l i t ies to increase thecompany’s production by approximately6,000-7,000 bpd.

New Algerian Minister Sets Focus on GasAlgeria’s newest Minister of Mines and Energy,Nouredine Bouterfa, plans to put a greater focuson the promotion of natural gas production.

Bouterfa is a downstream expert with abackground in the natural gas sector stemmingfrom his time at state-owned utility Sonelgaz(since 2004). Appointed in mid-June, Bouterfahas advocated for higher energy prices with theaim of increasing state revenues and curbingrising domestic demand in order to increaseexport volumes.

According to PGI Intelligence, the Minister willneed to move quickly to bring about reforms inthe sector and attract increased foreign interestin the gas sector. His predecessor, Salah Khebri,was given just a little over a year to attract newinvestment before being replaced.

Militant Groups Continuewith Attacks in Niger DeltaIn southwest Nigeria, reports from local policehave militants blowing up a state-owned gaspipeline.

Deputy Superintendent Olumuyiwa Adejobi, thepolice spokesman for Ogun state, told theAssociated Press on July 14 that “hoodlums”pretending to carry out repairs planteddynamite and blew up a major gas pipeline ownedby NNPC.

While no group have claimed responsibility forthis act of sabotage, companies operating in theNiger Delta have been subjected to a number ofattacks from the Niger Delta Avengers or theNDA. The militant group has been responsible

for cutting a significant amount of productionfrom Nigeria’s capacity.

In addition to the NDA attacks, another militantgroup emerged from the swamps of the NigerDelta to take up arms against oil producers, theDelta Greenland Justice Mandate. On August 10the Delta Greenland Justice Mandate blew up apipeline owned by NNPC and Shoreline NaturalResources.

Dana G Maxes Out Capacity in EgyptDana Gas is continuing to rein in operationalcosts given the current industry crisis. Despitethis effort, the company saw its revenues for H1drop $53 million over its revenue during the sameperiod in 2015. The company attributes the declineto the price of crude in global markets. While itsrevenue dropped, Dana said this was balancedby its lower G&A and operating costs as well asinvestment and finance income.

Operationally in Egypt, the company continuedits activities under the Gas ProductionEnhancement Agreement (GPEA). Theagreement, signed in 2014, allowed the companyto significantly enhance production and graduallyrecover its outstanding receivables in a phasedmanner over a three-year period going forward.To date, 17 wells have been drilled as part ofGPEA with a further 12 planned over the nexttwo years. Dana said despite a slow start, theprogram is advancing well.

Dana Gas Egypt delivered average production of36,550 boepd during Q2, which is an 11% increaseon the 33,000 boepd production of Q1.

Besides drilling the company completed theinstallation of a 17-km of pipeline in the NileDelta region, linking the Balsam Field to the El-Wastani gas processing plant some three monthsahead of schedule. This resulted in an additionalproduction of 4,000 boepd, putting its gasprocessing plant at full capacity.

On the exploration end, the company isparticipating with BP in the drilling of theMocha-1 well in the Nile Delta’s El Matariya(Block 3) Onshore Concession Area. The wellwas spud in early May and is to be drilled to atargeted depth of 6,200 meters. Results from theMocha-1 well are expected in Q4.

Africa’s Big Five

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Rockhopper CompletesBeach Egypt AcquisitionRockhopper Exploration completed its acquisitionof Beach Petroleum (Egypt). Beach Egypt holdsa 22% interest in the Abu Sennan concession anda 25% interest in the El Qa’a Plain concession.

Rockhopper acquired Beach Egypt for a cashconsideration of $11.9 million based on a casheffective date of January 1, 2016. The stakes willresult in the company seeing an average workinginterest production rate of approximately 1,100boepd and substantial upside potential.

Recent activity on the Abu Sennan concessionincludes the successful drilling of the Al JahraaSE-1X oil exploration well which intersected16.4 meters of net pay. The Al Jahraa SE-1X wellhas been cased and completed and is expected tobe brought onto production imminentlyfollowing signature of a new developmentlease. Initial estimates are that the well wouldadd approximately 2 million boe to the gross2P reserves recoverable from the Abu Sennanconcession.

In order to complete drilling and fully evaluatethe results of the Al Jahraa SE-1X well, anextension of the exploration concession has beengranted to November.

In addition, the ASH-1X ST2 side track oildevelopment well is currently being drilled withthe aim of improving productivity from theASH field.

Separate to the acquisition, Rockhopper iscurrently evaluating potential opportunitiesavailable through one of the licensing roundsEgyptian state-run companies are hosting in 2016.

In Amenas to See Full FlowsAlgeria’s In Amenas gas plant is ready to comefully back online for the first time since militantsattacked the facility three and a half years ago.All tests at the gas plant have been successfullypassed and a retrun to full production wasimminent. In Amenas is operated by Sonatrach,BP, and Statoil.

The plant is currently producing at a rate of about16 Mmcm/d and should reach 24-25 Mmcm/dwhen the third and final train comes online.Forty oil workers, the majority of which wereexpatriates, were killed in January 2013 after alQaeda militants attacked the plant and took dozensof workers hostage.

The In Amenas is the largest wet gas developmentproject in Algeria. The project includes the

development of four primary gas fields in theIllizi Basin in south-eastern Algeria and theassociated gas processing facility. The fourprimary gas fields are the Tiguentourine,Hassi Farida, Hassi Ouan Taredert, and HassiOuan Abecheu.

Eastern Libya Troops toSecure Oil Fields/Clashes PossibleTroops loyal to the government in eastern Libyahave made a commitment to secure major crudeexport terminals and fields. Abdulrazak al-Nazhuri, chief-of-staff for the leader of the easternforces, General Khalifa Haftar’s Libyan NationalArmy (LNA), also reissued a threat to target oiltankers that do not have permission from easternauthorities to dock.

While the need to protect Libya’s oil fields andports is real, this will probably lead to a clashbetween the UN-backed Government of NationalAccord (GNA) and the government in the east,and throw a spanner in the works for gettingLibya’s exports back on track.

According to a Reuters report, the LNA hasmobilized around eastern oil ports and fields.

“We will enter the ports of Zueitina and Es Siderand Ras Lanuf,” Nazhuri told Reuters in aninterview. These are the same ports that thePetroleum Facilities Guard (PFG) recentlyreleased from a blockade after coming to anagreement with the GNA.

Egypt Approves O&G AgreementsEgypt’s government has approved five oil andgas exploration agreements, according to thecountry’s Petroleum Minister Tarek El Molla.

Four of the deals are for exploration offshore thecountry and were signed between EGAS and fourforeign firms: BP, Edison, ENI, and Total. Thefifth deal was signed between EGPC and localfirm Trident Petroleum. The deal approvesTrident’s drilling in the Gulf of Suez.

Front Puffin FPSOCommissioning CompletePanoro Energy saw the commissioning of theFront Puffin FPSO for the Aje field offshoreNigeria completed and the FPSO is on hirefollowing the 72-hour test. The Aje field is locatedon OML 113.

Targeted stabilized production rates have not yetbeen achieved, due to mechanical issues andNigerian regulatory approvals. The company saidthat until the outstanding issues are resolved,which could take until the end of Q4 2016,

production shall be maintained at a restricteddaily rate of approximately 7,000-8,000 bpdof oil.

The first lifting of crude from the Front PuffinFPSO were expected to take place at the endof August.

Laboratory assays have been delivered on Ajecrude oil which show it to be as expected, a highquality grade of approximately 42° API. Severalinternational oil companies and trading houseshave expressed interest in purchasing Aje crude.

In addition, Panoro is continuing its planning forAje Phase 2 (additional Cenomanian oil wells)and Phase 3 (Turonian gas and condensate), andin evaluating the wider exploration potential onOML 113.

Sirius Sees Greenlight forExtension and Drilling ProgramSirius Petroleum extended its stay on Nigeria’sOML 95. The Nigerian Ministry of Petroleumgranted Sirius a renewal for the license. OML 95contains the Ororo Field. The extension has aneffective date of May 1, 2016 and is for threeyears. The renewal is conditional on the paymentof a Renewal Fee of $500,000 by no later thanJuly 29.

The company alsorevealed that it hasr e c e i v e d f i r mcommitments fromexisting shareholdersto raise aggregatefunds of £500,000before expenses, tot h e i s s u e o f200,000,000 newordinary shares at anissue price of 0.25 pershare. The funds being raised are being utilizedspecifically to pay the Renewal Fee and toprogress the work on the Ororo field.

The company also saw the Ministry of Enviromentapprove its EIA for the field. The companysubmitted the EIA for approval in late-April inaccordance with the DPR’s guidelines andregulations. The greenlight covers the drilling ofthree wells on the Ororo Field and the installationof wellhead platforms.

Algerian Oil Fields Increase FlowsAlgeria saw its crude production increase overthe past couple of months at two of its majorfields, the Hassi Messaoud and the Ourhoud.Production at Hassi Messaoud is currently sitting

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Africa’s Big Five

at 470,000 bpd, up from its previous flows of420,000 bpd. Output at Ourhoud oil field rose25,000 bpd to 125,000 bpd.

The North African country’s Minister of Minesand Energy, Nouredine Bouterfa, toldreporters that Algeria’s goal was to increaseproduction by 30% by 2020. He also revealedthat Algeria has decided not to wait for atender for exploration licenses, but would dealdirectly with international firms present inthe country.

“We can’t wait two years because we need toboost our output,” Bouterfa said.

Sonatrach, the state-run oil firm, has focused onmaximizing output at its mature fields. It is alsolooking to engage plans to drill 32 to 50 wells atHassi Messaoud beginning this year.

Krechba Sees SomeExpats Return to WorkThe Krechba gas plant, a satellite operation ofAlgeria’s In Salah gas field, has seen some of itsforeign workers return. BP and Statoil removedtheir foreign staff following a mortar attackin March.

While the facility was not damaged in the attack,nor anyone injured, BP and Statoil thought itprudent to remove the expatriate staff. The facilityhas been operational since the attack, accordingto Sonatrach.

It is most likely the number of expatriate staffthat return to the plant full time will be lowerthan prior to the attack.

Statoil said none of the foreigners returning tothe operation were its employees. “(After therocket attack) we made the decision to temporarilywithdraw our expats and there is no change tothat,” a spokesman said, according to a Reutersreport. “We follow the security situation closely.It is obviously challenging.”

ROD Partners Get10 More Years in AlgeriaBHP Billiton, ENI, and Sonatrach have enteredinto an agreement that extends their PSC in Algeriafor the Rhourde Ouled Djemma (ROD) andsatellite fields in Blocks 401a/402a. The extensiongives the partners an additional 10 years onthe acreage.

The agreement, pending final approval, also laysthe foundation for the completion of the unitizationprocess to connect the Sif Fatima field (SF),where Sonatrach has a 100% stake, and the SifFatima North East (SFNE) field which is a partof the ROD Unit.

The ROD Unit consists of six satellite depositsin the Berkine Basin that pump oil back to adedicated processing train.

Nigeria in Talks with MENDThe Nigerian government is in talks with aformer militant group that used to rampage inthe Niger Delta just a few years ago. TheMovement for the Emancipation of the NigerDelta, or MEND as they were more commonlyknown, has been holding talks with thegovernment to try and bring about an end to thehost of attacks on oil and gas facilities in theNiger Delta.

“The Movement for the Emancipation of theNiger Delta (MEND) wishes to confirm thatindeed it has been in preliminary talks with theFederal Government through oil companiesand law-enforcement agencies,” the group saidin a statement.

In 2009 MEND signed an amnesty agreementbrokered by former president Goodluck Jonathan’sregime in exchange for cash and job training.

The Niger Delta Avengers, the current bane ofNigeria’s oil industry, is not part of the new talks.“The Federal Government made it clear duringour meetings that a negotiation with criminals isout of the question,” MEND said. “The NigerDelta Avengers...fall under this category.”

Protesters Block ChevronFacility in Niger DeltaProtesters in Nigeria’s Niger Delta are blockadingan entrance to a Chevron oil facility. The protestersare demanding jobs and housing.

“Chevron has not fulfilled many of its promises,”said Collins Edema, a youth and protest leaderin the Ugborodo Itsekiri community in Deltastate, in a Reuters report. The Ugborodo Itsekiricommunity is home to Chevron’s Escravos tankfarm. Edema said the tank farm had been blocked.According to Edema Chevron had previouslypromised to create jobs for the youth in the areaand to provide new housing.

“Our protest will continue until Chevron listensto our demands. We at Ugborodo are urging otherItsekiri communities to follow suit and shut downChevron activities in our communities,” he said.


Africa at Large

Sterling Issues Surrender Notice for NtemSterling Energy announced that its wholly ownedsubsidiary Sterling Cameroon has issued a noticeof surrender in relation to the Ntem Concession,offshore Cameroon.

The surrender will be effective by the end ofDecember 2016. The company does not expectto incur any material costs associated with thesurrender.

Eskil Jersing, company CEO, said: “We aredisappointed that we have been unable to reachan acceptable solution for all parties to advanceoperational activity on the Ntem Concession.Given the declaration of force majeure in May2014, the remaining potential on the block andthe challenging macro landscape, we have madethe decision to formally surrender the Ntem Block.Our focus remains on securing transformative,exploitation led M&A opportunities.”

Mauritania/SenegalFairway Could Hold 50 TcfIn its Q2 report Kosmos Energy commented onits Teranga-1 well offshore Senegal on theCayar Offshore Profond Block. The companyannounced in May that the well was a significantgas discovery, encountering 102 ft of net gas payin good quality reservoir in the LowerCenomanian objective.

Results from the well confirmed that a prolificinboard gas fairway extends approximately200 km from the Marsouin-1 well in Mauritaniathrough the Greater Tortue area on the maritimeboundary to the Teranga-1 well in Senegal.

The Teranga-1 marked Kosmos’ fifth consecutivesuccessful exploration and appraisal well in thisfairway in which it has discovered a gross Pmeanresource of approximately 25 Tcf. The companyestimates the fairway holds more than 50 Tcf ofpotential resources.

Woodside Expands in Africawith ConocoPhillips’ Senegal StakeAs part of its phased exit from deepwater acreagein West Africa, ConocoPhillips entered into anagreement to sell its 35% stake in three blocksoffshore Senegal. The interest in the three blocks– the Rufisque Offshore, the Sangomar Offshore,and the Sangomar Deep Offshore – will go toWoodside Petroleum.

The blocks are home to the SNE and FANdiscoveries. Woodside will pay ConocoPhillips$350 million for the 35% stake. The transactionis subject to approval of the government ofSenegal and co-venturer preemption rights. The

partners on the three blocks are Cairn Energy(operator) and FAR Ltd. The three offshoreexploration blocks had a net carrying value ofapproximately $250 million as of May 31.The transaction is anticipated to close byyear-end 2016.

Matt Foxx, ConocoPhillips’ executive VP,Strategy, Exploration, and Technology called thesale an “important milestone” in the company’sexit from the region.

Alba B3 Platform Sees First FlowsMarathon Oil achieved first gas productionthrough its new Alba B3 compression platformoffshore Equatorial Guinea. Production from theB3 platform allows Marathon Oil to convertapproximately 130 million boe of provedundeveloped reserves, more than doubling itsremaining proved developed reserve base in theWest African country.

Execution of the Alba B3 compression projectinvolved engineering and construction in fourcountries with Heerema Fabrication Group servingas the general contractor. An Equatoguineanconstruction firm fabricated both the platformflare and bridge structures as part of MarathonOil’s commitment to building local capacitywithin the country.

Cote d’Ivoire Plans Production BoostCote d’Ivoire is looking to boost its oil and gasproduction over the next four years. Accordingto the state-run company Petroci, the West Africancountry will double its output by 2020.

“Today we have around 60 blocks. We’ve awardedabout 20,” Petroci’s Managing Director IbrahimaDiaby told Reuters on the sidelines of anenergy conference in the capital Yamoussoukro.“With current exploration our ambition is to reach200,000 barrels of oil equivalent in 2020,”he said.

Gabonese Pre-Salt Stake on the MarketCompanies interested in Africa’s pre-salt potentialand in particular, Gabon’s pre-salt potential, have

a chance to gain a stake in the Tchicuate License(G13). Marathon Oil is looking for a partner totake 40% or more of its 100% stake in theGabonese license.

The license is unexplored, but highly prospectivewith large pre-salt 3D PSDM defined prospectsin a more oil prone, delta front play immediatelyoutbound of proven oil fairway; combinedresource potential is estimated to be in excess ofone billion barrels recoverable.

The acreage is on the highly prospective marginof the largely undrilled deeper water South GabonBasin, and located immediately outboard of theproven producing pre-salt Etame oil fieldsand Dussafu discoveries in shallower water.Significantly, two of the recent pre-salt explorationwells (Diaman, Leopard) in the region have foundsignificant amounts of hydrocarbons.

The area’s primary play consists of stacked lowerCretaceous pre-salt Gamba and Dentale sands,overlying source rocks including the highlyorganic Melania ‘hot shale’. This sequence wasdeposited in the Dentale Paleo-Trough during theearly continental break up, rifting andseparation of what is now Brazil and Africa. Avariety of trap-types have been identified.Upside potential exists in the post-salt CretaceousMadiela play, which is prolific in Congoand Angola.

The Tchicuate is interpreted to containthicker delta front sediment sequences fed fromthe east and ponded over the hinge zone on thetrough flanks. The new CGG multi-clientBroadSeis PSDM 3D seismic data over theblock, processed for Marathon on an acceleratedbasis, provides excellent imaging in thepre-salt section.

The PSC was awarded in August 2014 and is inthe first exploration period, with a wellcommitment prior to the end of a four-year period.

CNR Suspends Cote d’Ivoire InvestmentsCote d’Ivoire will see investments by a Canadianindependent put on hold until there is an uptickin crude prices. Canadian Natural Resources(CNR) said it is postponing $300-400 million inplanned investment on its assets in the WestAfrican country.

An official from the company told Reuters thatdue to the low barrel price CNR was “obliged”to suspend operations after spending around$1.5 billion over the past year or two on drillingnew wells on the Espoir and Baobab fields tomore than double production.

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CNR plans to resume drilling again as soon asoil prices increase to a sustainable level and thinksit can add another 5,000-10,000 bpd to its flowsfrom the country.

Niger Seismic to Start SoonA subsidiary of Savannah Petroleum signed acall-off order under its previously signedframework contract for seismic acquisitionservices with BGP Niger. The call-off providesfor the acquisition of around 800 sq km 3D seismicdata over part of the company’s R3 License insoutheast Niger. Mobilization of crew andequipment is expected to commence shortly.

The data acquired will provide enhanced definitionover 12 existing mapped exploration targetsidentified on Savannah’s existing 2D seismicdataset. The targets themselves incorporate stackedtraps at multiple play levels (the Oligocene UpperSokor, the Eocene Sokor Alternances and theUpper Cretaceous Yogou formations) which maybe evaluated in single exploration wells. Inaddition, the historical application of 3D seismicin this basin clearly demonstrates that additionaltargets tend to be added to the portfolio throughthe additional coverage that the data provide.

New Drilling ProgramPlanned for South LokicharAfrica Oil Corp. and Tullow Oil are planning torecommence drilling activities in the SouthLokichar Basin in Q4. The initial program, onBlocks 10BB and 13T, is for four wells with thepotential to extend this by a further four wells.

The first two wells will be the Etete and Erutprospects in the north of the South LokicharBasin. Other potential prospects in the programinclude further appraisal of the Ngamia andAmosing fields to target un-drilled flanks,with an aim of extending the size of theseexisting discoveries. In addition, the JV is planningan extensive water injection test program inQ4 to collect data to optimize the fielddevelopment plans.

Outside of the South Lokichar Basin, a FTGsurvey over Block 12A commenced to gain furtherdata on this prospective area.

43 Sub-Saharan Projectson the Books Over Next DecadeWhile the industry may be stagnant when it comesto oil and gas projects moving forward, don’texpect this to last for long, especially in sub-Saharan Africa where according to GlobalData,there are a total of 43 crude and natural gasprojects expected to start operations in the nextdecade. Leading the charge with projects on thebooks are Nigeria and Angola, who have 11 andeight planned projects respectively.

Joseph Gatdula, Global Data’s Senior UpstreamAnalyst, explains: “The region will experienceinvestment delays across a wide scope of projects.However, developments will continue to comeonline in the mid-term, including fields whichstarted development prior to the downturn inprices and those which demonstrate break evensat or below today’s current oil prices.”

Tullow Oil plc and Total S.A. will lead the regionin terms of operatorship with five planned projectseach. Of the 10 projects the two companies areexpected to operate, nine are crude and one isnatural gas, with Chevron Corp. occupying thirdplace in terms of development with its threeplanned projects.

Key planned projects in the sub-Saharan regionare expected to contribute 1.1 million bpd ofglobal crude production in 2025 and 7.7 Bcf/d toglobal gas production.

These projects come with a capex of about$153 billion, with a good chunk of that beingspent in Mozambique to bring its massive naturalgas reserves to market. Projects in Mozambiquehave a capex of around $70 billion, with themajority of this being spent on the RovumaArea 1 Complex and Rovuma Area 4 Complexprojects.

Uganda Selects Four Biddersto Negotiate for Oil BlocksThe winners of Uganda’s licensing round launchedin February of last year have been revealed. Thegovernment has invited four firms to negotiatefor five PSAs, three of those firms are fromNigeria and one is from Australia.

Uganda offered up six exploration blocks in itsfirst competitive licensing round. Biddingdocuments were issued to 16 companiesafter qualifying but only seven of those 16submitted bids.

The Ministry of Energy and MineralDevelopment said it selected Nigerian firmsWalter Smith Petroman Oil Ltd., Oranto Petroleum

International, Niger Delta Petroleum Resources,and Armour Energy Ltd. out of Australia.

“Negotiations for these PSAs is the final milestonebefore granting exploration rights,” the Ministrysaid in a statement. Issues for negotiation wouldinclude exploration work programs and how thefinancial proceeds will be shared.

Tanzania Extends Aminex’sStay on Mtwara LicenseAminex confirmed that the government of Tanzaniahas formally approved the extension of its MtwaraLicense of the Ruvuma PSA. The license was dueto expire in December of this year; the extensiontakes Aminex to December 2017.

The Mtwara License includes the Ntorya AppraisalArea where Aminex has an existing discovery.Within the license, civil work for the Ntorya-2appraisal well has begun. The company expectsthe well pad to be complete within 10 weeks.

Aminex has a 75% working interest and isoperator of the well. The well will be drilledabout 1,500 meters southwest of the originalNtorya-1 discovery well. The drilling of theNtorya-2 satisfies Aminex’s appraisal drillingobligation, after which it plans to apply for a25-year development license subject to its success.

Vaalco Increases Etame Marin StakeVaalco Energy increased its stake in Gabon’sEtame Marin Permit, acquiring Sojitz EtameLtd.’s stake in the block. The two firms enteredinto a purchase and sale agreement that givesVaalco an additional 3.23% participating stakein the acreage. The transaction has an effectivedate of August 1.

Vaalco is operator and prior to the acquisitionowned a 30.35% participating interest in the fieldsin the Etame Marin block. There are fourproduction platforms and nine wells currentlyproducing in the concession, including threesubsea well tiebacks. Production from the fieldsaveraged about 19,000 bpd in Q2 and over 93million barrels of oil have been produced sinceproduction commenced in 2002. This acquisitionis expected to boost the company’s net productionby nearly 11%.

The transaction is expected to close within 90days, subject to customary closing conditions.The company intends to fund the acquisition withthe additional $5-million loan capacity availableunder the new term loan agreement announcedin early July with the International FinanceCorporation (IFC), subject to their approval, andwith cash on hand.

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Somalia Extends Odewayne PSASterling Energy and Genel (operator) have hadtheir license period for the Odewayne PSA inSomalia extended by a further two years by thegovernment.

The expiry dates of the relevant explorationperiods under the PSA have the third explorationperiod ending in November 2018 and the optionalfourth period ending in May 2020. There is alsoan optional fifth and sixth period ending in May2021 and May 2022 respectively.

The minimum work obligations for the explorationperiods remain unchanged, calling for theacquisition of 500 km of 2D seismic during thethird period and the acquisition of 1,000 km of2D seismic and one exploration well during thefourth period.

ENI and ExxonMobilReach Deal on MozambiqueMore reports on ExxonMobil joining ENI in thedevelopment of Mozambique’s natural gasresources offshore the country are making therounds. The latest report has the deal betweenthe two being completed and ExxonMobil joiningENI on Offshore Area 4.

While neither firm would comment on the report,a Reuters source said that although the deal iscomplete it will not be officially announced atthe US firm’s request.

The buy into Area 4 is not the only acreageExxonMobil will hold in Mozambique; thecompany was awarded three exploration blocksin Q4 2015.

ENI has been intimating for some time that itwanted to sell a portion of its stake, but it hasalso wanted to remain operator. CEO ClaudioDescalzi told analysts that the company’s modelwas to “remain and keep the operatorship or keep,in any case, a clear control on the asset – the assetthat we discovered.”

Earthquake LimitsCircle’s Flows in MoroccoCircle Oil saw its production out of Moroccodrop temporarily due to an earthquake that hitnear the town of Kentira. According to Circle,the gas pipeline spur that the company uses totransport some of its gas from the Sebou fieldwas closed by ONHYM, forcing Circle to reduceits flows. The pipeline was only shut in as aprecaution.

Reports out of Morocco regarding the quake saythere were no injuries associated with the incident.Production from the field continues through

Circle’s separate pipeline system at productionrates roughly 70% of previous levels.

“The reduction in gas flow rates is expected tobe temporary and a further announcement willbe made in due course,” said Circle in a statement.

TE-6 “Significant Discovery” for SoundSound Energy reported that it has made a“significant gas discovery” at the Tendrara license,onshore Morocco. The first Tendrara well, TE-6, which was drilled to a measured vertical depthof 8,743 ft, achieved a stabilized gas flow rate of17 Mmcf/d.

According to the company the flows weresignificantly above initial expectations.

Sound, together with Schlumberger, is nowpreparing to drill a second well at Tendrara, theTE-7, using sub-horizontal drilling techniqueswhich are expected to significantly increase theindividual well flow rate in a success case. Thiswill be followed by an extended well test. Therig-up process at TE-7 is already complete anddrilling is expected to commence this month.

TE-6 will be suspended until the results of theTE-7 are confirmed, at which point Sound expectsto apply for a production concession andcommence detailed engineering for constructionof the necessary infrastructure, which Oil & GasInvestment Fund (OGIF), one of the company’spartners, has already indicated an interest infunding, constructing and operating.

Harvest Continues toEvaluate Development Plans in GabonHarvest Natural Resources reported on itsoperations in Gabon on the Dussafu Project inits Q2 report. The third exploration phase of theDussafu PSC expired on May 27. All expenditurecommitments on this exploration phase have beencompleted

While the third exploration phase expired, it didnot have any effect on Harvest’s discovered fieldsunder the Exclusive Exploitation Authorization(EEA). In March 2014 the JV partners approveda resolution confirming that the discovered fieldsare commercial to exploit and a Declaration ofCommerciality (DOC) was signed with DirectionGenerale Des Hydrocarbures (DGH) pertainingto four discoveries.

In July 2014 DGH awarded an EEA for thedevelopment and exploitation of certain oildiscoveries on the Dussafu Project and on October10, 2014 the field development plan was approved.The company has four years from the date of theEEA approval to begin production.

In its Q2 2016 report the company said that inorder to begin production by July 2018, the currentproject plan being considered is to develop thearea surrounding its Ruche well first, followedby the development of the other fields and drillingselected high quality exploration prospectsidentified on 3D seismic. Operational activitiesduring the six months ended June 30, 2016,included continued evaluation of developmentplans, based on the 3D seismic data acquired inlate-2013.

Ghana Extends Erin’s Stay on ESWTErin Energy saw its application to extend theinitial exploration period for the ExpandedShallow Water Tano (ESWT) block approved bythe Ghanaian government. The company nowhas an additional 18 months on the ESWT.

Geological and reservoir studies are ongoing withthe existing 2D and 3D seismic datasets to evaluatethe various possible development options and theexploration potential of the block. New 3D marineseismic data acquisition over the entire block isin the execution planning phase. The new seismicdata will enable the high-grading of the explorationprospects as well as firm-up the drilling candidates.

Actual field operations await the resolution ofthe Ghana-Cote d’Ivoire maritime border disputearbitration in mid-2017.

Kenya Approves Pilot Production SchemePlans to produce between 2,000 and 4,000 bpdof crude in Kenya has been approved by the EastAfrican nation’s government. The production willcome from a pilot scheme to be initiated byTullow Oil and Africa Oil Corp. The pilotproduction scheme will enable Kenya to reapearly benefits from the resources discovered bythe two firms.

According to a statement from the communicationoffice of Kenyan president Uhuru Kenyatta, thecountry’s infrastructure will be upgraded to allowthe crude to travel to the port of Mombasavia trucks.

Gambia Seismic Ready in Q3Erin Energy revealed in its Q2 report that it iscurrently waiting for the completion of seismicprocessing in Gambia. The processing of arecently acquired 3D seismic data is expected tobe completed in Q3. Erin said that once the datais in-house it expects to resume talks with potentialfarm-out partners.

The company’s A2 and A5 blocks are located inthe same prolific offshore geological basin as therecent world-class discoveries by Cairn Energyin its offshore Senegal blocks.


ExxonMobil to IncreaseUltra-low Sulfur Fuels at BeaumontExxonMobil plans to increase production of ultra-low sulfur fuels at its Beaumont refinery byapproximately 40,000 bpd. Construction isscheduled during H2 to install a selective catnaphtha hydrofining unit, which uses a proprietarycatalyst system to remove sulfur while minimizingoctane loss. Startup of the flexible technology,known as SCANfining, is expected in 2018.

Gasoline produced using this technology willmeet the US Environmental Protection Agency’sTier 3 gasoline sulfur specifications.

Installation of the selective cat naphthahydrofining unit is the facility’s second expansionproject in a year, following the announcement ofthe Beaumont refinery’s capacity expansion in2015, and demonstrates ExxonMobil’s long-termview and disciplined approach toward advantagedbusiness investments. Beaumont is well positionedto competitively supply high-demand growthmarkets around the U.S. in the face of achallenging industry environment.

Sasol Transports Abnormal LoadSasol commenced the transportation of what istermed as an “abnormal load” from Johannesburgto Secunda. The company saw a 91,000 kg AcidGas Scrubber column leave from Johannesburgas part of preparations for its annual maintenanceshutdown in September.

The load is more than 60 meters long and wasmanufactured by Kelvion Thermal Solutions toreplace the existing column, which has reachedthe end of its lifespan.

The new replacement column will be used tosafely remove specific gases from the ammonia-rich stream at Sasol Synfuels’ Phenosolvan plantin Secunda. Sasol Group Technology is overseeingthe project.

Uganda – Tanzania PipelineConstruction to Start in 2017Construction of the pipeline that is to takeUgandan crude to the East African coast via

Tanzania is due to start construction in 2017. Thepipeline will travel from the oil fields in the LakeAlbert Basin to the Tanzanian seaport of Tanga,about 1,443 km away.

The engineering and design work is expected tobegin in October, and according to Uganda’sMinister of Oil, Irene Muloni, the pipeline shouldbe operational in 2020.

The land acquisition operations, FEED study, andenvironmental impact study will of course becompleted before work begins. Tanzania’sMinistry of Energy has said the oil pipeline shouldbe complete by 2020.

Government to Power up Rural TanzaniaTanzania plans to spend $3.21 billion over thenext five years to bring electricity to an estimatedone million rural households in the country. Thepower needed to generate this electricity will usenatural gas as its feedstock.

“The five-year rural electrification project whoseimplementation starts in this 2016/17 governmentfinancial year is expected to benefit up to 5 millionpeople,” GissimaNyamo-Hanga, acting directorgeneral of the state-run Rural Energy Agency(REA), was cited as saying in a Reuters report.The government will fund a good portion on itsown, but it also expects to receive financialassistance from its development partners toimplement the project.

The government wants to lift the proportion ofthe population with access to electricity to 85%by 2025.

Kenyans to Pay More at the PumpKenya’s Energy Regulatory Commission hasincreased the price motorists will pay at thepump for fuel. The energy regulator said costswere increased due to the rising price ofpetroleum imports.

The Energy Regulatory Commission sets themaximum retail prices for petrol, diesel andkerosene on the 15th of every month. Thecommission said that the cost of importing a tonof petrol had risen by 3.31%.

Petrol in Nairobi is now 95.13 shillings per liter.The commission increased the price of petrol by8% in July.

FortisBC Energy GetsGreenlight for Gas PipelineBritish Columbia’s environmental regulatorapproved a natural gas pipeline to feed gas to theproposed Woodfibre LNG project. The pipeline,

being built by FortisBC Energy, may havereceived approval but the regulator attached someconditions to its construction.

The conditions, 30 in all, include consultationwith Aboriginal groups and mitigation work toreduce impact on grizzly bear populations,among others.

The 47-km pipeline will connect to an existingpipeline in the Vancouver area and carry gas tothe Woodfibre industrial site, where it would beconverted into LNG for export.

Woodfibre LNG was approved by federalregulators in March. The company has not yettaken the FID on the project.

SPDC Declares ForceMajeure on Gas to NLNGIn Nigeria Shell unit SPDC has declared forcemajeure on gas supplies to the NLNG exportfacility on Bonny Island. The halt in feedstocksupplies to NLNG is due to a leak on the EasternGas Gathering System (EGGS-1) pipeline.

The force majeure on the EGGS-1, through whichSPDC supplies the bulk of its gas to NLNG, wasdeclared on August 8 by SPDC. The declarationmay impact exports from the facility.

IPMAN and NIMEXJoin Forces to Import Petroleum ProductsThe Independent Petroleum Marketers Associationof Nigeria (IPMAN) and NIMEX PetroleumGroup have entered into a partnership toimport 100,000 metric tonnes of petroleumproducts into Nigeria as part of the government’sderegulation policy.

A statement issued by IPMAN said theimportation would be done by the group and itwould be distributed to IPMAN’s members acrossthe country to augment the supplies received fromNNPC and other sources.

The strategic relationship established withNIMEX Petroleum Group is aimed at improvingthe supply chain of petroleum products inthe country.

Ships Hits Wallin Panama Canal ExpansionWhile traversing the newly expanded PanamaCanal, a Chinese container ship hit a wall. Thevessel, the Xin Fei Zhou, was traveling throughthe new lane of the canal.

This was the third such incident to take placesince the expansion of the canal opened. The

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Panama Canal Authority said its operations teamwas investigating the latest incident.

The $5.4-billion project, which was inauguratedon June 26, tripled the size of ships that can passthrough the canal.

A LPG tanker, the Lycaste Peace also madecontact with the canal. The vessel ripped off afender during a collision in late-June, causingsome minor damage to the railing of the ship,according to a source familiar with the incidentcited in a Reuters report.

Firms Express Interest in FSRU TenderEgypt’s international tender to lease a third FSRUhas resulted in expressions of interest from severalfirms. The firms include Norway’s Hoegh, USfirm Excelerate Energy and Singapore-basedNorwegian gas shipping company BW Gas,according to a Reuters report.

The tender for the FSRU with a capacity of 750Mmcf/d was launched by the country’s state-runfirm in charge of natural gas, EGAS.

Angola LNG Out Until Late-SeptemberAngola LNG is scheduled to resume productionin late September following a planned shutdownto test equipment. It was reported previously thatthe plant would only be shut-in for a fewweeks and would be back up and running by midto late August.

The plant just reopened in June after being shutdown since April 2014.

ENI Closing in on FLNG OrderReports have a Samsung Heavy Industries-ledconsortium closing in on a deal with ENI thatwill have it building the Italian firm’s FLNGvessel for offshore Mozambique. Samsung is intalks with ENI as part of a consortium withTechnip and JGC for the project.

The reports of the pending order for the FLNGvessel could signal that ENI is ready to take theFID on the Mozambican project.

Ethiopia’s Mega Gas Projectset to Launch SoonEthiopia’s Foreign Minister, Tedros Adhanom,said on July 21 that initial work on the country’smega gas project would begin soon. The projectrevolves around taking Ethiopian gas from theOgaden Basin via a pipeline to the coast ofDjibouti.

Chinese firm GCL-POLY Petroleum GroupHoldings Ltd. will finance the project whichincludes a gas processing.

NOC Unhappy with PFG DealLibya’s NOC is not happy with the deal madebetween the Petroleum Facilities Guards (PFG)and the unity government to reopen ports.

Libya’s hopes to boost crude exports have beendealt a blow after the head of the National OilCorporation (NOC) objected to a deal betweenthe government and local guards to reopenkey ports.

According to a letter seen by Reuters, NOC’schairman Mustafa Sanalla, said it was a mistaketo reward Ibrahim Jathran, head of the PFG, fora blockade of the oil ports of Ras Lanuf, Es Sider,and Zueitina. Sanalla maintains that the settlementwill only encourage other groups to disrupt oiland gas operations in hopes of a similar pay out.While the terms reached to end the blockade ofthe ports has not been made public, a Reutersreport says the salaries for Jathran’s men havebeen agreed upon.

Sanalla said the NOC would not lift force majeureat export terminals if a payout went through dueto the risk that the corporation would faceliabilities. Should any court cases ariseinternationally for losses stemming from theblockade, “we, as NOC, are determined not tobe attached to these lawsuits,” the letter said.NOC also threatened to withdraw its recognitionof the unity government.

It is hoped that NOC, the PFG, and the unitygovernment can come to some accord that will

allow for Libya’s export terminals to once againbecome active.

Cameron LNG Gets Nodfrom DOE for ExpansionSempra Energy received authorization from theUS Department of Energy (DOE) to export anadditional 1.41 Bcf/d of natural gas from itsproposed Cameron LNG liquefaction expansionproject. The expansion allows for exports tocountries that do not have a free-trade agreementwith the US. With this order, Cameron LNG’sexport capacity will be 24.92 million tons perannum or 3.53 Bcf/d.

Cameron LNG received approval from the FederalEnergy Regulatory Commission to site, constructand operate the proposed expansion project earlierthis year. The expansion includes up to twoadditional LNG trains (trains No. 4 and No. 5)and one additional full containment LNG storagetank (tank No. 5).

The expansion project will be located next to theCameron LNG terminal and liquefaction facilitiesthat were approved for construction in 2014 inHackberry, LA.

“Construction on the first phase of the $10 billionCameron LNG liquefaction project (trainsNo. 1-3) is currently is underway. The facility isexpected to commence operations during2018, with the first full year of operationsin 2019.”

The proposed expansion project is subject tocompleting the required commercial agreements,securing all necessary consents and approvals,obtaining financing and reaching a finalinvestment decision, among other things.

Pertamina Shuts Refinery for RepairsPertamina shut its 30,000 bpd secondary gasolinerefinery unit at Cilacap to conduct repairs in earlyAugust. The Residual Fluid Catalytic Cracking(RFCC) unit was expected to resume productionwithin 10 days, said Rachmad Hardadi,Pertamina’s refinery director.

The refinery shut in late July and is expected toreopen well before the end of August, accordingto Hardadi.

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“Gas to power” is a popular and current phrase that is used as if it isa defined term or has some specific meaning or science. It does not.Nor is it a particularly novel concept insofar as many countries/regionshave been using gas directly in power generation for many years.Rather, the phrase is meant to convey a trend of projects, largely focusedon the African continent, which are seeking to take advantage of thecoming together of a series of global events which afford a goldenopportunity to address the widespread chronic power shortage particularlyacross sub-Saharan Africa.

Africa’s power problems are well-documented. Electricity outages costthe continent billions of dollars in wasted productivity. They stifleambitions for economic growth and diversity. Much closer to home alarge proportion of the population does not even have access to poweron a constant basis without resorting to portable diesel generators, orin some cases none at all. What are the series of events that have givenrise to a new “gas-to-power” focus?

Africa’s estimated 600-trillion plus cubic feet of natural gas reserves,is a huge resource. While export projects have been largely favored inthe past, there is now a glut of natural gas globally in the wake of theUS shale gas boom. So gas directly to power generation is a moreattractive proposition. And for those countries in Africa without thebenefit of indigenous gas there are pipeline projects to deliver gas.More relevant for this article, there is an abundance of LNG and aburgeoning market in FSRU’s. There are also new innovations andtechnologies that are promising to take regasification to new levels andmore economically.

We have seen movement in South Africa which unveiled a gas to powerprogram a few years ago. More advanced seems to be GNPC’s excitingpathfinder TEMA LNG project offshore Ghana.

Issues in Gas to PowerTechnological issues aside, there are a number of challenging commercialand legal issues in an LNG to power project.

Risk Allocation – an LNG to power project, as we define it, is anintegrated project starting with LNG supply to regasification facilitiesand ending with delivery to power producers. The contractual chainin such a project requires especial dexterity to ensure a coherentalignment of risk throughout. LNG supply throws up differentchallenges to pipeline gas to power. Consider the contractual chainfor the TEMA project in Ghana. Under an LNG supply agreement,gas will be supplied to an FSRU owned by a third party, but charteredand operated by the project developer. LNG will be delivered to theFSRU and redelivered in gaseous form to the gas aggregator whichin turn will deliver gas to power producers. And typical of most sub-Saharan African gas to power projects, some of those power producerswill be government entities, others will be entirely commercialentities (IPP’s), and both groups will have a different appetite forrisk and different expectations for how that risk may be protected.Typical areas that need to be looked at throughout the chain are forcemajeure, change in law and tax, differentiation between political andnon-political events, liability (through liquidated damages) fordelays in meeting start dates, and a regime for non-performanceand termination at each stage in the chain, remembering of coursethat failure in any part of the chain will have knock on effectsthroughout.

LNG Procurement – LNG procurement throws up significantchallenges notwithstanding the relative large availability of LNG atthe moment. For some countries long lead times for development ofindigenous gas reserves or pipeline construction and delivery meansLNG may be regarded as more of a short term fix. Other countries

Downstream FocusBy Garry Pegg

Managing Partner (London office)King & Spalding

GAS TO POWER IN AFRICADAWN OF A NEW DAY

With pathfinder projects now in the pipeline, Africa’s gas to power potentialis starting to take shape.


may seek to bring together a mix of LNG and pipeline/indigenousgas which on paper may seem to be a very desirable way forward.But those are complicated decisions which are underpinned bydemand forecasting which involves the industrial policy and ambitionsof countries that extends beyond electrification of the population asa whole. Whatever the stimulus for an LNG gas to power project,LNG has to be sourced from LNG providers who are commerciallyand technically reliable, but who can also meet the type of flexibilitydemands likely to be made by countries at different stages in theirdevelopment. There are few LNG suppliers (whether portfolio ortraders) who will say they cannot meet the flexibility demandsrequired; everything is available at a cost and consequence for riskallocation and that has to be factored into the entire gas to powerproject as a whole. A complicated and onerous balance.

Credit Risk – credit demands of LNG suppliers and offtakers,FSRU owners, charterers, IPPs and lenders all need to be factoredinto an integrated gas to power project. The demands for securityare inevitably high, especially for LNG projects. The ability of manycountries in sub-Saharan Africa to meet heavy demands for financialsecurity, as well as maintain it for the life of the project will be avery significant challenge. It will almost certainly also be the casethat the entire project will be US dollar denominated putting strainson other sectors in countries already financially challenged.

Other issues – it is beyond the scope of this short article to give acomplete project analysis. Issues will vary from country to country,so for some countries credit and access to US dollars will be less ofan issue than others. Many countries have a well-established petroleumand regulatory framework which elsewhere may be in its infancy;environmental health and safety issues inevitably arise, andexpectations from Development Agencies and the like may have animpact. Increasingly across the continent, legitimate demands fromhost countries for capacity building, knowledge transfer and localcontent require new, sometimes onerous commitments from developersand broader thinking and greater accountability than ever before.

Perhaps one of the best examples of a gas to power development whichtakes into account many of the above drivers, is the TEMA LNG projectin Ghana being sponsored by Quantum Power. GNPC is the offtaker.

Being reliant primarily on power generated from the Akosombo Hydrofacility, Ghana has been attempting to diversify its reliance onhydropower from at least the mid-1990s when the Takoradi PowerProject was inaugurated by President Fl Lt Jerry Rawlings. The long-term aim of Takoradi was to take advantage of natural gas sourcedfrom Nigeria through the West African Gas Pipeline, or WAGP, (thenegotiations for which took place at roughly the same time as theTakoradi development). For a number of reasons WAGP gas has notbeen available in quantities envisaged at the outset. Ghana has oftenbeen referred to as one of Africa’s forerunners for attracting foreigninvestment in large part because of its stable political and legal systems,but the proliferation of back-up diesel generators will never be asubstitute for allowing the country to meet its potential and ambitions.An aggressive and successful exploration campaign in Ghana however,has delivered associated gas from the Jubilee Field and will delivernon-associated gas in significant quantities from Sankofa. That said,water levels at Akosomobo are low and take years to replenish, andlead times to bring on board more indigenous gas have caused thegovernment and GNPC to focus on the import of LNG for powergenerations in the short term.

In an effort to bring about more coordination, GNPC was appointedthe gas aggregator for the country. GNPC is currently negotiating theTEMA LNG project both as a short term answer to gas supply/electricitydemand but also as an integral part of a wider infrastructure portfoliogoing forward. The project too will take advantage of innovative andmodern technologies utilizing an FSRU located offshore with ship toship transfer of LNG in an open ocean environment. That, and thecontinued development of indigenous gas reserves and greater utilizationover time of existing infrastructure such as WAGP is arguably a veryeffective and all-encompassing example of what gas to power is reallyall about.

ower generation provides us with electricity, which is vital toour modern way of life. Electricity is something with whichwe cannot do without – it runs our home appliances, it powers

many processes in industry, and also powers many means oftransportation. We are highly dependent on electricity.

If we look at the electricity demand around the world we see that it israpidly increasing, notably in major developing centers such as China,Asia, and India.

This ever-increasing demand is driving the Power Generation industry– over the next few years a very significant number of grassroot powerplants will need to be installed to meet these requirements.

There are several types of power plants – it depends greatly on the typeof fuel used. For bulk power generation thermal, nuclear and hydroare usually favored. Each form of electricity generation has its set ofstrengths and weakness – there are also different considerations thatneed to be looked at for future power generation – notably with regardsto greenhouse gas emissions.

Different regions in the world have certain preferences with regardsto which type of power plant they favor. The type of power plantinstalled depends on many factors including location, availability offuel, government incentives, and regulations. For example, if wecompare the present situation in the United Kingdom with the one inFrance in terms of energy we can see important differences.

In figures 1 and 2 we can see the electricity produced for both theUnited Kingdom and France from all energy sources. We can see thatwhile the United Kingdom has traditionally been dependent on thermalor fossil power stations (coal 32% & gas 30%) in France the approachhas been different. Over the last few decades France has favored the

use of nuclear power plants to provide the country’s electricity. In 2014,76% of the electricity produced came from nuclear fuel.

Let us take a look at the main types of power plants in more detail toidentify the specificities of each option.

Thermal Power PlantsThermal power stations (or fossil fuel plants) have been by far the mostconventional and traditional method of generating power with reasonablyhigh efficiency.

These types of power plants burn carbon fuels such coal, oil or gas togenerate steam – the steam is used to drive large turbines to producethe electricity.

Looking at the relative strengths and weaknesses – reliability: thesetypes of plants can generate electricity reliably over a long period.However, as mentioned previously, in this day and age the fact that thepower is generated from burning carbon fuels is proving to be animportant problem – notably with regards to carbon dioxide emissionsand sulphurous oxides.

Another possible concern with regards to fossil fuel plants is the needfor very significant quantities of coal, oil or gas for feedstock. In somecases these fuels have to be transported over long distances and thereis also the issue of price increase in times of shortage, meaning possiblefluctuations in generation costs.

Nuclear Power PlantsNuclear Power plants produce reliable supplies of electricity, with verylow carbon emissions and relatively small amounts of waste, but dueto the nature of the process this waste needs to be safely stored andeventually disposed of.

Downstream FocusBy Stefan Chapman

Vice President, Euro Petroleum Consultants

Coal32%Gas

30%

Nuclear19%

Geothermal0%

Hydroelectric2%

Oil1%

Solar Tide Wave1%

Biomass and Waste7%

Wind8%

Figure 1: UK – Electricity Production from all Energy Sources 2014 (%)

Nuclear76%

Coal3%

Oil1%

Solar Tide Wave1% Biomass and Waste

2%

Wind3%

Geothermal0%

Gas3%

Hydroelectric11%

Figure 2: France – Electricity Production from all Energy Sources 2014 (%)

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PThe Importance of Power GenerationThe Importance of Power Generation


These plants are similar in many aspects to the thermal (or fossil) powerplants – both produce steam, which is in turn used to power turbinesproducing the electricity. The main differences are the use of radioactivematerial as a fuel instead of coal, oil or gas, the use of nuclear reactorand exchangers instead of the furnace and boiler.

The process uses the heat produced by nuclear fission to generatesteam that drives turbines. There is in this case no greenhouse gasesproduced, and only small amounts are produced across the wholefuel cycle.

Production reliability is also very important and in this aspect nuclearpower plants can run for many months without interruption, providingreliable and predictable supplies of electricity.

Hydro-Electric Power StationOur third major producer of electric power is hydroelectric powerplants. These plants generate electricity by storing water in reservoirsbehind massive dams. The electricity is produced when the energygenerated by the water flowing from the dam is channeled throughturbines, hence generating electricity. The water then runs out into therivers below the dam.

Hydro dams have the potential to generate large amounts ofelectricity. There are however a number of potential disadvantagesincluding the weather impacting the water level in the reservoir, andthe potential impact on the local ecology by modifying the naturalflow of the water.

Electricity from RenewablesAs mentioned earlier the majority of world’s electricity has historicallybeen produced from three different types of power plants: thermal orfossil, nuclear and hydro.

This picture is evolving with environmental awareness becoming amajor part of our daily lives – this has meant that there has been aconscious effort to increase the share of electricity produced fromrenewable energy.

Sources of renewable energy including wind, solar andsmall-scale hydro produce electricity with a ‘clean’ processemitting very low amounts of greenhouse gas emissions across theirentire lifecycle.

In the past the cost of generating electricity from renewables hasproven to be a stumbling block when compared to cost of powerproduction by ‘traditional’ processes – however these costs are nowcoming down.

In terms of reliability, there remains some concern as these processesare often dependent on factors that are difficult to predict orharness, such as production output fluctuations due to wind speed orstrength of sunshine, etc.

This has meant that in some cases the renewables are backed up byother forms of power generation including fossil fuel generationprocesses.

Circulating Fluidized Bed BoilersThere is another sector that is interesting to focus on and that is theCirculating Fluidized Bed Boilers (CFB) – these advances in technologyand processes have enabled boiler and power plant operators a greaterflexibility in burning a wide range of coal and other fuels. All thiswithout impacting efficiency and more importantly with reducedpollution.

One major opportunity that CFB’s can provide is that it can be usedto burn Coke or pitch from Solvent Deasphalting units (SDA) as thefuel. This can be a good solution to achieve 100% conversion inrefineries – zero waste refineries.

The energy sector is currently focusing on increasing the power outputof various CFB boilers and at the same time reducing emissions.

The Asia Pacific region has provided a number of opportunities forCFB boilers due to the high demand for industrial and infrastructuraldevelopments – these industries have important energy requirementsand this trend is likely to continue in the coming years – meaning asignificant market growth for CFB boilers.

With the rising environmental concerns and implementation of stringentemission control norms, the CFB technology will provide an interestingoption for power generation in terms of reducing impact on theenvironment.

There is also the added advantage that CFB boilers have low runningcost, higher reliability, and better fuel flexibility.

However it is not only positive news with the high maintenance costof a CFB boiler as its most notable drawback. These types of boilersoperate under extreme conditions experiencing oxidation, heat, and ata higher rate than their subcritical counterparts. This means a higherrisk of rusting and thus quicker erosion of reactor walls.

Cleaner, More Efficient Power GenerationSo why do why we need a cleaner, more efficient power generationindustry?

The simple answer is that we have seen that the risks of carbon pollutionon the environment, our way of living and our health. There is now aconscious effort to minimize carbon pollution from power plants.

As mentioned, there have been technological advances to reduce theemissions from power plants, there has been the use of alternative fuelsas well as different types of power generation plants. The commongoal is to have a reliable energy system, while minimizing pollutionand protecting our health and environment now and for futuregenerations.

About the AuthorStefan Chapman is Vice President at Euro Petroleum Consultants(EPC), a technical oil and gas consultancy with offices in Dubai,London, Moscow, Sofia and Kuala Lumpur. EPC also organizes leadingconferences and training workshops including BBTC Middle East &Africa 2016 – Bottom of the Barrel Technology Conference.



lthough Mozambique has definitely found itself sitting ona significant amount of natural gas, the proposed developmentof these resources goes far beyond the export of gas to

foreign, more developed markets. In fact, the government of Mozambiquehas realized that the gas discoveries in the Rovuma Basin are a gamechanger with the potential to take the country to a whole new level ofeconomical and industrial development. Development – and not onlyin terms of revenue – appears to be the main driver of the country’spolicy to exploit the Rovuma gas, and the government has sought toapproach this issue in an integrated manner, and developed a documentthat lays down the strategies and the priorities for the use of naturalgas in the country: the Natural Gas Master Plan.

The Natural Gas Master PlanIn addition to LNG – the obvious priority to start generating cash flowfor the State coffers – power generation is seen as pivotal for thecountry’s development strategy. Small and medium (gas fired) powerplants and large combined cycle plants are being considered. Havingreliable power available is, of course, crucial for industrial developmentand this is regarded as a priority by the government. Additionally, thereis a large regional market (organized around the Southern AfricanPower Pool) that can also play an important role in using the gas forpower generation.

The Natural Gas Master Plan, approved by the Council of Ministersin 2014, aims to be a strategic guiding instrument for the national useof natural gas, in order to ensure the most effective and advantageousbenefits thereof for the country and its population, and to promote itssustainable development.

According to the Natural Gas Master Plan, the natural gas market canbe divided into three major sectors: (i) use of natural gas for powergeneration; (ii) large industrial consumers; and (iii) small and mediumenterprises.

The Natural Gas Master Plan states that the use of natural gas forpower generation is of particular importance as the supply of electricitywith good quality and adequate safety levels is a basic need for thedevelopment of any project, regardless of its size.

On the other hand, the large industrial consumers sector would typicallyfall under the “mega-projects” legislation due the investment amountsinvolved. Large industrial consumers use gas as a feedstock for theproduction of fertilizers (urea), methanol and liquefied gases, or inmanufacturing processes for heating, electricity, aluminum smelting,steel mills, petrochemical plants, refining, etc.

In turn, small and medium scale enterprises, which tend to be locatedin urban areas, employ gas for industrial and commercial use in small

By Ricardo Silva and Edna OliveiraMiranda & Associados

A

Power Generation in Africa

A CASE STUDYMOZAMB IQUE

Local Impact


quantities, mainly for process heating, drying, cooking, etc. This sectoralso includes use in road transport.

Additionally, the Mozambican government considers that it is necessaryto ensure that part of the natural gas being produced in the RovumaBasin (which holds most of the gas resources discovered in the country)is used for the industrialization of Mozambique at a price that allowsthe viability and competitiveness of the industries to be created.

According to the Natural Gas Master Plan, in order to ensure thesustainability of the exploitation of Mozambique’s natural gas resources,the government has been perfecting the institutional, political and legalframeworks applicable to the energy sector.

Institutional FrameworkThere are several bodies currently responsible for regulating oil andgas activities in Mozambique.

The Ministry of Mineral Resources (MIREM) is the government’sinstitution responsible for promoting sustainable use of natural gas inthe country. MIREM develops and implements policies relating to theexploration and production of mineral resources, including hydrocarbons.In addition, the National Petroleum Institute (INP) regulates andoversees all upstream oil & gas related activities.

On the other hand, Empresa Nacional de Hidrocarbonetos (ENH), thenational oil company is the entity responsible for participating in theprospecting, exploration, production and trading of petroleum productsand represents the State in petroleum operations.

Moreover, there are many ministries that may also play a key role inthe sustainable use of natural gas for power generation and gas use,such as the Ministry of Energy (which is responsible for the regulationof downstream production and distribution operations), Ministry ofTrade and Industry, Ministry for Coordination of Environmental Affairs,Ministry of Planning and Development, and Ministry ofFinance, among others.

Policy FrameworkOver the years, the Mozambican government hasadopted several policies in order to promote thedevelopment and sustainable use of the country’senergy resources. A few key examples includethe Energy Policy, the Strategy for theDevelopment of the Natural Gas Market inMozambique and the country’s Energy Strategy.

The Strategy for the Development of the NaturalGas Market in Mozambique, which was approved byResolution No. 64/2009, of November 2, 2009 aims tomaximize benefits of natural gas for Mozambique, reduce imports andpreserve the environment. According to this strategy there are twopotential uses for natural gas in Mozambique: (i) use of gas as fuel;and (ii) use of gas in major projects.

The strategy states that natural gas may compete with the majority offuels used in the industry or for the generation of electricity in areas

close to pipelines. On the other hand, it also states that if new discoveriesof natural gas are made, there are projects which require high amountsof natural gas that may eventually become attractive for implementationin Mozambique such as (i) the production of ammonia and fertilizers;(ii) methanol production; (iii) iron and steel; (iv) production liquidfuels (GTL – Gas to Liquids); (v) production of liquefied naturalgas (LNG) for export and/or transport to other places along the coastof Mozambique.

In addition, the Energy Strategy was approved by Resolution No.10/2009, of June 4, 2009 and aims to ensure the availability of powerin Mozambique and meet the challenges posed for the sustainablesocio-economic development of the country.

The Energy Strategy proposes the continuation and acceleration of thecountry’s electrification efforts, prioritizing rural areas through theExpansion of the National Network of Energy Transport (RNET –Rede Nacional de Transporte de Energia) and alternative energy sources,including by the use of low cost solutions and the reinforcement of thecollaboration between institutions such as the State-owned utility,Electricity of Mozambique (EDM – Electricidade de Moçambique)and the Energy Fund (FUNAE – Fundo de Energia), as well as theintroduction of a percentage value in the investment packages in orderto finance equipment and electrical goods capable of stimulating theproductive and efficient use of energy (for instance, low cost and highefficiency bulbs).

This strategy also states that it is crucial to ensure the fulfilment ofMozambique’s electricity needs by implementing major power generationprojects. According to the strategy, electrical energy must be valuedinternally before its export is considered. This will avoid situationssimilar to the Cahora-Bassa dam, which exports most of the energyproduced, when the country has a clear energy deficit.

In turn, the Energy Policy, which was approved by Resolution No.5/98, of March 3, 1998 establishes several objectives such

as (i) to ensure a reliable supply of energy with thelowest possible cost in order to fulfil the current

energy consumption and the economic developmentneeds; (ii) increase the availability of energy forthe domestic sector, especially mineral coal,lamp oil, gas and electricity; (iii) export of energyproducts; (iii) improve the efficiency of energyuse; (iii) institutional development; (iv) creationand review of legislation applicable to the energy,electricity and petroleum sectors.

The policy also states that the government ofMozambique aims to extend the national electricity

network in order to improve the living conditions of theMozambican population, providing a reliable technical service

with costs that are compatible with the economic needs as well as theincrease of exports.

Legal FrameworkLaw No. 21/97, of October 1, 1997 (Electricity Law) applies toproduction, transport, distribution and trading of electricity in

Interms of powers and

attributions, the Councilof Ministers is responsible for

the award of concessions with aninstalled nominal capacity equal toor higher than 100 MVA, while

the Minister supervising theenergy sector is responsible for

those between 1 MVAand 100 MVA.

Local Impact

Mozambique, as well as its import and export, into or from the country.The statute sets out the key provisions to be included in concessioncontracts that are awarded for the development of power projects. TheElectricity Law establishes that the State, its institutions or other publiclegal persons, have a leading role in promoting the enhancement ofexisting capabilities, to enable an increasingly wider access to the benefitsof electricity, and contribute to the economic and social developmentof the country and the region. Importantly, it also acknowledges the roleof the private sector in the public power utilities sector.

Private investors (including international investors) wishing to enterthe power sector in Mozambique may apply for the negotiation andentering into of a concession contract, foreseeing the terms and conditionsapplicable to the project. However, in order to encourage competition,a public tender may be organized for such purpose.Under the law the concessions may have a term of upto 25 years (except in the case of hydro power projects,where the maximum term is 50 years), renewable, thusgiving investors sufficient time to recoup theirinvestment and make an adequate return. Freedom ofaccess to existing infrastructure (for instancetransmission infrastructure) is also guaranteed, uponpayment of non-discriminatory fees. As for the nationaltransmission network, it is currently being operatedby EDM, the Mozambican State-owned utility.

In terms of powers and attributions, the Council ofMinisters is responsible for the award of concessionswith an installed nominal capacity equal to or higherthan 100 MVA, while the Minister supervising theenergy sector is responsible for those between 1 MVAand 100 MVA. A regulatory agency, the NationalElectricity Council (Conselho Nacional deElectricidade), was also created under the ElectricityLaw and ancillary regulations, with wide powers interms of supervision and organization of the sector.

ConclusionThe major gas discoveries in Mozambique, especiallyin the Rovuma Basin, have the potential to make animportant contribution to national development.However, in order to ensure the country’s economicand industrial development, it is crucial that theMozambican government ensures that there is reliablepower available in the country and strikes the rightbalance between the amounts of natural gas exportedand the quantities retained for power production.

The Natural Gas Master Plan seems to be a step in theright direction as it clearly indicates that having reliablepower available in Mozambique and the country’seconomic and industrial development is regarded asa priority by the government. This said, the possibilityof attracting world class players to the market willdepend on certain factors that are, at least in part, withinthe powers of the government. Among other factors,the gas sales price, approval of a contractual framework

capable of contributing stability for investors, and the negotiation andentering into of adequate power purchase agreements that give investorscertainty of recovering their investment is crucial to ensure the successof power projects.

About the Authors*Ricardo is a Partner at Miranda & Associados’ Lisbon headquarters, and isresponsible for coordinating the firm’s Timor-Leste office. He is Co-Head ofthe Firm’s Energy and Natural Resources Practice Group and frequently advisesenergy companies in setting up and carrying out their operations in Africa andSouth East Asia. Edna is a trainee and a member of the Energy and NaturalResources Practice Group at Miranda & Associados.

Ricardo and Edna may be contacted at [email protected] [email protected].

or over 40 years Omar Bongo ruled Gabon through acombination of fear, political guile, and generosity to alliesand potential allies. While his less than democratic methods

won him his share of critics in the international community, he wasgenerally tolerated and often actively embraced by the leadership ofcountries like France, the former colonial power in Gabon, the UnitedKingdom, and the United States. French President Charles de Gaulleis said to have essentially chosen Bongo to lead Gabon.

One reason these powers remained positively inclined towards the longserving leader is because he generally brought stability to an oil-richcorner of Africa. Though Gabon’s relative importance to oil marketshas decreased as more African countries have become oil exporters,the country still holds the third largest proven oil reserves in sub-Saharan Africa. In fact, the only time outside powers pressured him toincrease the people’s say in Gabonese government affairs was whenprotesters agitating for more democracy threatened the peace. WhenBongo père died in 2009, few outside Gabon protested when his sonAli Bongo won the election to fill his father’s office. In fact, FrenchPresident Nicolas Sarkozy was among the first to call and congratulateBongo fils on his victory.

That is not to say the younger Bongo’s opponents took his ascensionlying down. There were civil disturbances and accusationsof election fraud following his win. However, AliBongo largely shrugged these off, managed toavoid global headlines for the rest of his firstterm, and seemed confident going into hissecond presidential election this August.However, the protests sparked by the youngerBongo’s questionable “reelection” in the 2016polls have some of the Bongo clan’s erstwhileinternational allies abandoning the president.One reason is the level of violence associatedwith the protests against Bongo this timearound. Protesters set fire to the parliamentbuilding in the capital Libreville and repeatedlyclashed with security forces in the days immediatelyfollowing the election. According to news outlets, over

800 protesters were arrested, and the opposition says as many as a 100more were killed by police. For its part the government put the numberof dead protesters in the single digits.

The other reason is the blatant nature of the election fraud committedin favor of Bongo in the most recent election. The president talliedfewer than 6,000 votes more than his main challenger Jean Ping, anespecially close result in a country of 1.8 million. Election returns fromthe Bongo stronghold of Haut Ogoue were several hours late andshowed voter participation of over 99%, with 95% of votes in theregion going for Bongo. Given that national turnout averaged around60%, the returns from Haut Ogoue seem especially suspicious.

While other strongmen who sit on large oil reserves havebenefitted from similar voting patterns (Equatorial

Guinea’s President Teodoro Obiang Nguemareportedly received 103% of the vote in one

province in his country’s 2002 elections), formerallies, domestic and international, appearready to challenge Bongo over the latestelection results. Gabon’s Justice MinisterSeraphin Moundounga resigned in earlySeptember when it became obvious thegovernment would not heed protesters’ calls

for a recount. Moundounga told Radio FranceInternationale that he was stepping down because

he believed “the government was not respondingto concerns about the need for peace and the

consolidation of democracy.”

F

By Mark Pabst, Senior Correspondent

Oil Security

Electionreturns from the

Bongo stronghold of HautOgoue were several hours late

and showed voter participation ofover 99%, with 95% of votes in theregion going for Bongo. Given thatnational turnout averaged around

60%, the returns from HautOgoue seem especially

suspicious.

The late Gabonese president Omar Bongo Ondimba (left) and his sonAli Bongo Ondimba (right), now current president

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Among international observers, the head of theEuropean Union’s mission in Gabon, MariyaGabriel, called for the government to publish thepoll results by individual polling station, andnoted that failure to do so would result in “a crisisof confidence in the (election) results.” FrenchPrime Minister Manual Valls also discussed arecount, but hedged by saying “common sensewould command a recount… but our priority isthe safety of the 15,000 French nationals wholive and work in Gabon.” While not exactly a call

for Bongo’s ouster, it is a far cry from the congratulations offered bySarkozy after the last elections.

So what is the difference between the contested elections that broughtAli Bongo to power in 2009 and the most recent polls in August? Forone, the overall economic backdrop. The plunge in oil prices over thelast year has been particularly tough on Gabon. The country has gonefrom a budget surplus in 2014 to a deficit today. Increased spendingassociated with Gabon’s decision to host the African Cup of Nationsnext year suggests the deficits will likely continue for the foreseeablefuture. To be fair to Bongo, his government has had some successreplacing lost oil revenue with increasing levels of foreign directinvestment. In 2008 oil accounted for half of Gabon’s GDP, and nowit accounts for about a third of total GDP. While some of the rebalancingcan be attributed to falling oil prices, much of it is a testament toGabon’s increasing ability to attract investment, which makes thecurrent unrest all the more unpalatable.

Foreign powers are starting to criticize Bongo when he needs them themost. When oil prices are high, the world is more willing to turn ablind eye to less egregious signs of authoritarianism because it needsGabonese oil. At the same time, a flush Gabonese government is lessdependent on foreign investment and loans from abroad. Now,however, Bongo is in a situation where he needs to show investors thatGabon is stable enough to lure investment and at the same timeworthy of IMF loans to fill the growing hole in the national budget.In short, the latest problems are coming at exactly the worst timefor Bongo.

Ironically, the crisis is partially due to Bongo’s desire to be seen as alegitimate leader. He allowed the opposition relatively free reign tocriticize him during the campaign, with Ping even going so far as toclaim Bongo was not really Gabonese (similar to businessman andnow current US republican presidential nominee Donald Trump’sefforts against the 2008 Democratic nominee and now presidentBarack Obama). It is certainly difficult to imagine leaders likeEquatorial Guinea’s Obiang putting up with similar accusations.Moreover, he either was unable or unwilling to orchestrate thewidespread voter fraud necessary to guarantee himself the type ofcomfortable victory enjoyed by presidents of oil rich countries thatshare Gabon’s neighborhood. Now Bongo, assuming he survives thiscrisis, has to deal with a reputation as an authoritarian. If Bongo doesmanage to hold onto power, foreign governments, companies, andinvestors will also have a decision to make. How much support arethey willing to give a man that will now have the reputation of beinga dictator?

Mariya Gabriel headof the European

Union’s mission inGabon

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opular uprisings in Africa have been in the news recently,especially the ongoing protests in Ethiopia. According to HumanRights Watch over 400 people have been killed in Ethiopia

protesting the government’s plans to reallocate land belonging largelyto members of the Oromo ethnic group, but it wasn’t the killings thatgarnered the world’s attention. Instead it was the decision of Ethiopianrunner (and ethnic Oromo) Feyisa Lilesa to put his hands above hishead in an “X” as he crossed the finish line to win a silver medal atthe Olympic marathon in Rio. The gesture is one associated with theprotests, and after he made it many speculated that Lilesa was now aman marked for discipline, or even death by the government inAddis Ababa.

However, the protests rocking Ethiopia are far from the only oneshappening in Africa currently. In South Africa people recently took tothe streets to urge President Jacob Zuma to step down after his party’srecent humiliating election losses, and Zimbabwean President RobertMugabe attempted to ban protests in the capital Harare after a restiveAugust. In Gabon an estimated 100 protestors were killed in Augustprotesting the results of the presidential election.

Adam Branch and Zachariah Mampilly, the authors of one of the latestbooks in Zed Books’ “African Arguments” series, believe thatmany of these popular uprisings are too often overlooked.In fact, they think that popular protest has becomecommon enough in Africa that it has earned a spotin the continent’s overall narrative. Whileeconomics journals and business magazines havebeen busy touting Africa’s rising fortunes inrecent years, the world has largely ignored thepopular uprisings that have mushroomedthroughout the region over the same period.According to Branch and Mampil ly“perhaps we need to abandon the simplisticnarrative of Africa Rising and instead focuson Africa’s Uprisings.” Hence the name of theirlatest effort, “Africa Uprising: Popular Protest andPolitical Change.”

They back up their argument about the ubiquity of protests with a tablethat lists the many popular uprisings that have rocked no fewer than40 African countries since 2005. In making their list they were carefulto exclude things like labor strikes for improved wages, student protestsfocused on campus living conditions, and ethnic protests that soughtbenefits for a particular tribe or community. Even with these limits,the list is impressive.

Casual observers are unlikely to be familiar with many of these protestmovements outside of the Arab Spring, which obviously garneredwidespread attention. This could be because in the last decade popularuprisings that have occurred across the continent have often beendismissed as protests against economic conditions or simply “foodriots.” Branch and Mampilly quote one scholar who tries to put thenotion of food riots into perspective, saying that “although (these)demonstrations and riots were sometimes precipitated by food pricerises, the protests usually included demands to reduce political repression,promote political reform, and reduce the influence of internationalfirms.” In short, the authors believe that we often give short shrift topopular unrest in Africa because we think of these uprisings as emotionalreactions to temporary economic hardships rather than demands forsystemic change.

Speaking of systemic change, the authors also give voiceto those Africans who decry the failures of multiparty

democracy, complaining that the increase in politicalparties does not come with any increase in realchoices. When the loyal opposition becomes alittle too loyal, and essentially functions as justanother part of the ruling establishment, thendemocracy fails. During the 1990s donorcountries, international institutions, and a hostof NGOs pressured single party African states

to transition into multiparty democracies, but thistransition has not necessarily produced real choice

for the people. At the same time, the authors pointout that institutions like the IMF were pushing austerity

on governments in Africa, resulting in reduced government

P

Whileeconomics journals

and business magazineshave been busy touting Africa’srising fortunes in recent years,the world has largely ignored

the popular uprisings that havemushroomed throughout the

region over the sameperiod.

By Adam Branch and ZachariahMampillyZed Books2015

Africa UprisingPopular Protest and Political Change

Reviewed by Mark Pabst, Senior Correspondent

Book Review


services and subsidies. A decade of such policies helped drive theuprisings we have seen in recent years.

Branch and Mampilly spend perhaps a fourth of theirbook discussing why African protest movementsexist, what their common demands tend to be, andtheir general structure. They also delve into thehistory of popular protest in Africa, providingan analysis of the protest movements that helpedend colonialism. However, it is in their casestudies where the authors probably do their bestwork. They dedicate a chapter each to protestmovements in various countries, including OccupyNigeria, Walk to Work in Uganda, and variouspolitical uprisings in Sudan and Ethiopia. Thechapters, especially the ones about Nigeria and Uganda,provide a unique insight into political movements that arerarely mentioned in the international press.

But, ultimately, the reader is left to wonder about the effectiveness ofthese popular uprisings. None of the movements described by theauthors can be described as political successes, and at the same timean argument could be made that uprisings frighten away potentialinvestors. Conservatives could certainly point to Egypt and Libya asan example of the frightening results of “successful” uprisings.Unsuccessful movements like Walk to Work in Uganda and Occupy

Nigeria are in some ways even more discouraging. They begin withsuch hope, but fizzle out largely in disappointment.

Moreover, the potential for popular uprisings has tofrighten oil companies working in Africa. While

oil infrastructure is usually unscathed by suchmovements (with the post uprising fallout inLibya being the notable exception) when Branchand Mampilly write about the oversize influenceof foreign firms, they might as well be addressingthe international oil industry. Street protests mayspring from systemic economic problems or lack

of real political choice, but they can be twistedinto populist movements that can demand

nationalization of hydrocarbon assets or tougherterms in exploration and production agreements.

All of this means that when Branch and Mampilly end with a directcomparison between African protest movements and similar movementsin the developed world, it can be downright depressing both for thosewho support the status quo and for those who are activists themselves.“Activists in the West who today rise up against austerity measures intheir own countries are, in many ways, following paths that were firstwalked by African activists who have faced choiceless democraciesand austerity for decades.” It’s good to see the developed world followingAfrica for a change, but that might not necessarily be a good thing.

Streetprotests may spring

from systemic economicproblems or lack of real politicalchoice, but they can be twisted

into populist movements that candemand nationalization of

hydrocarbon assets or tougherterms in exploration andproduction agreements.


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Mirmorax AS, an oil in water analyzer solutionsprovider, announced the launch of its DesktopOil-in-Water Analyzer – the DT250. The portableinstrument, based on Mirmorax’s third generationultrasonic technology, provides efficient, flexibleand highly accurate sample analysis as well aslive measurements of oil and solids inproduced water.

For operators, this will lead to improvedmonitoring capabilities and the flexibility to de-bottleneck various parts of the processing system.This will bring new value and optimizationpossibilities to existing separators and filters,enable targeted use of chemicals, and ensurethe meeting of all environmental requirements.The Desktop Oil-in-Water Analyzer will alsobe particularly suited to challenging fieldsthat host separation from different tie-backswith various oil types in the same producedwater.

“With the current low oil & gas prices, theflexible, cost-effective and accurate monitoringof oil in water to ensure optimal operations,effective separation and environmentalcompliance has never been more important,”said Mirmorax CEO, May Britt Lilletvedt.“That’s why the Desktop Oil-in-Water Analyzeris truly a solution for our times – delivering bothhighly accurate and crucial productioninformation but also in a flexible, portable andhighly effective manner.”

Key benefits to operators of the Desktop Oil-in-Water Analyzer’s features include: accurateand robust oil-in-water analysis with the ability

to handle chemicals and various oil types. Thenew instrument simultaneously detects oil andsolid particles; calculates the mean size of oilparticles and solids; and provides other crucialinput information, such as the temperature andsalinity of process water.

A low maintenance, robust and easy-to-usesystem that can be set up in minutes and eitherbe used as a sample analyzer or as a by-passanalyzer providing continuous measurements.The instrument can analyze fresh produced watersamples or samples that have been stored for alonger time. The instrument is lightweight, isideal as a portable test instrument that can bemobilized quickly (fulfilling the weight and sizerequirements for offshore helicoptertransportation) and comes in a robust,weatherproof case.

The Mirmorax Oil-in-Water Analyzer is basedon ultrasonic measurements in which individualacoustic echoes are characterized using advanced

signal processing. A highly focused acousticsignal is transmitted directly into the producedwater and the reflection and absorption of thesignal provides a wide range of accuratemeasurements. The analyzer is designed tomanage the lower range (0-250 ppm) of oil andparticles and delivers accurate classifications ofparticles and size distributions.

The integrated design also includes a separatechamber where the sample is analyzed with astirrer keeping the sample homogeneous at alltimes. Analysis time for a sample is less thanfive minutes under normal conditions with themodel also including an outlet interface thatallows for by-pass flow of produced water toflow continuously through the measurementchamber. This is particularly useful when findingthe optimal location for in-line probes. Theinstrument also comes with a produced water-sampling bottle that enables closed circuitsampling for optimal HSE and the conditioningof old samples for later analysis.

Mirmorax Launches Desktop Oil-in-Water Analyzer

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Parker Autoclave Engineers, part of ParkerHannifin – a global provider of motion andcontrol technologies, has released an innovativenew air driven liquid pump, the AHL118. A highvolume, double-ended, double acting highpressure pump, the AHL118 is designed for usein oil and gas, chemical, industrial and researchapplications.

The pump operates to a pressure range of 23,000psi and at 5.6 gallons per minute (25.5 liters). The AHL118 is designed to be extremely robust,featuring a carbon-based prioritized coating tothe plunger, which is three times harder thanStellite. This makes the plunger unscratchable,extending the lifespan of the seals and reducing

downtime, repairs and servicing, deliveringmajor savings to the customer.

All AHL118’s hydraulic parts are manufacturedfrom stainless steel, making them very durablewith extended Mean Time Between Maintenance(MTBM) and increasing safety. AHL118’s pumphardware is also manufactured from stainlesssteel, which is anodized to the bottom and topcaps for superior corrosion resistance.

Shawn P. Landry, IPD Product Manager –Pumps/Systems for Parker Autoclave Engineers,said: “This air driven liquid pump offersunrivalled performance and reliability, bringinghuge benefits to customers. When developing

the product, we analyzed what the issues werein the market and so designed a pump that wouldlast significantly longer, lowering downtime andmaximizing efficiency.”

New Air Driven Liquid Pump Released


Industrial operations require significant energy,with large amounts of this energy disappearingas waste heat after use. Energy Nest’s thermalenergy storage now ensures that this widelyuntapped energy reserve can be convertedeffectively. Once stored, the time-shifted wasteheat can be used in a variety of ways – e.g. toprovide process steam, to generate own poweror to stabilize entire power grids. It comes withmany advantages, but the main one being asignificant increase in resource efficiency.Consequently, industrial operations becomeenvironmentally friendlier. Industrial retrofitsnot only lead to a better energy balance, moreover

such projects have short project paybacks makingit economically very attractive.

One element of this new technical solution isthe HEATCRETE® – a high performanceconcrete, which is composed of 75% quartzaggregates and 25% additives. A steel carrierstructure encloses HEATCRETE®-embeddedcarbon steel pipes, through which a heat transferfluid is charging and discharging the storagesystem at a pressure of up to 160 bar. A singlemodule, fitting into a standard 40-foot container,provides an energy capacity of up to twomegawatt hours thermal. Due to its modular

structure, this system can be scaled up into thegigawatt hour range.

It is by far cheaper compared to other energystorage technologies – at around $20-$25 perkilowatt hour: a fraction of battery costs. Dueto its rigid structure and no moving parts, thestorage system works virtually maintenance-free, so that operating costs are a fifth of whatother storage systems require. The potential forown power generation via time shifted wasteheat is tremendous. Companies can, for example,avoid peak price tariffs with their own waste-heat-to-power installation.

Lucrative Waste Heat Recovery

Sperry Drilling, a Halliburton business,announced the release of the 9-1/2-inchAzimuthal Lithodensity (ALD™) service,providing real-time density measurements andimages in boreholes up to 17-1/2 inches. Withthis addition, Halliburton offers the greatestrange of hole-size capability and is the onlyservice company to provide this larger wellboremeasurement.

ALD provides downhole density measurements,including high-quality borehole image logs, tohelp optimize wellbore placement throughgeosteering and to reduce geologicaluncertainties. The measurements, delivered viaLWD, also eliminate costly wirelineconveyance runs and capture data immediatelyafter drilling when the borehole is in the bestcondition.

The 9-1/2-inch ALD provides the samefunctionality as its smaller counterparts,including azimuthal density, and photoelectricand acoustic stand-off measurements. Thisinformation has a wide range of applicationsthat can help determine a formation’s porosity,

rock strength, pore pressure and boreholegeometry.

“ALD addresses an important market need andis currently the only commercially availableLWD density service designed for large-diameterboreholes,” said Corey Walker, vice presidentof Sperry Drilling. “In areas like the Gulf ofMexico and other regions where large boreholesare common, we are well positioned to meetincreasing demand.”

In the Gulf of Mexico, ALD has demonstratedvalue to operators. In one case, an operator usedthe density measurement to identify shallowhydrocarbon deposits in a 17-1/2-inch borehole.In another case, an operator used borehole densityimages in real-time to determine the formationdip and reservoir structure immediately belowa massive salt interval in a 16-1/2-inch borehole,where surface seismic data was poor. Previously,operators had to perform wireline runs to retrievethese results, but ALD provided this informationwithout adding expensive deepwater rig time,operation costs, or risks associated with wirelineconveyance.

Largest Hole-Size LWD Density Service Debuts

6-3/4-in. ALD™ sensor data from the NorthSea. A 16-bin real-time image is shown to the

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With the launch of its new Hempaline Defendepoxy linings, global coatings companyHempel now offers a complete range oflinings for challenging applications, whereheavy-duty performance and a fast return toservice are essential for continued productionuptime.

Designed specifically for the power and oil &gas industries, Hempel’s new Hempaline Defendepoxy linings provide long-term protection forassets in challenging environments, such as bulkstorage tanks, process vessels, frac tanks andsecondary containment areas. The internal linings

protect both steel and concrete from aggressivechemicals, elevated temperatures and abrasiveservice conditions.

Hempel’s newly launched Hempaline Defendepoxy linings come with a choice of hardeners,enabling customers to select a single-coat systemthat allows a vessel to be returned to service inas little as 24 hours without any drop inperformance.

Pernille Lind Olsen, Hempel Group Product &Portfolio Director, comments: “In the power andoil & gas industries, equipment downtime can

often mean a loss of revenue. Our HempalineDefend epoxy linings make it simple forcustomers to select a fast-cure system whenshortened downtime is essential.”

Hempaline Defend epoxy coatings complementHempel’s recently launched Hempaline Defendvinyl ester range, and mean that Hempel cannow offer customers a full range of products forinternal and external protection in aggressiveenvironments. The Hempaline Defend range iscurrently available in southeast Asia and theMiddle East, where they are locally producedfor shorter delivery times.

New Epoxy Linings for Assets in Challenging Environments


ffshore and onshore, advancements in seismic technologycontinue to be a game changer to the global oil & gasexploration industry, allowing a clearer, sub-surface picture

of a basin and narrowing down the most prospective of prospects. Overthe past year or so, service providers have released a number of newand/or improved technologies to narrow those prospects down evenfurther. Here we look at just a few of the most recent.

VesselsImprovements to seismic acquisition vessels has been impressive, andthis past March PGS announced its most recent fleet upgrade. Thelatest Ramform Titan-class vessel, the Ramform Tethys, was celebratedat a ceremony in Nagasaki, Japan in March. This newbuildenhances the Ramform Titan-class acquisition platform and sets thestandard for seismic operations for the next 25 years, according tocompany reports.

PGS’ first Ramform Titan-class vessels, the Ramform Titan and theRamform Atlas were delivered in 2013 and 2014. The Ramform Tethys,and the Ramform Hyperion, will be even better due to small modificationsof equipment handling on the back deck and an increase in enginepower to 26,400 kW from 23,040 kW on the first two Ramform Titan-class vessels.

“With the increased power output and the back deck modifications weare enhancing the Ramform Titan-class acquisition platform further.

Productivity, safety, stability and redundancy are the key benefits ofthese vessels. Their ability to tow many streamers gives highdata quality with dense cross-line sampling and cost efficientacquisition with wide tows,” said Per Arild Reksnes,EVP Operations.

The design dovetails advanced maritime technology to the imagingcapabilities of the GeoStreamer® seismic acquisition technology.The 70-meter broad stern is fully exploited with 24 streamer reels:16 reels aligned abreast and 8 reels further forward, with capacityfor 12 kilometer streamers on each reel. With such capabilities theRamform Tethys has tremendous flexibility and redundancy for highcapacity configurations. Increased work space and advanced equipmenthandling mean safer and even more robust operations. The Ramformconcept design is made by Roar Ramde.

The vessel carries over 6,000 tons of fuel and equipment. Shewill typically tow a network of several hundred thousand recordingsensors over an area greater than 12 sq km, equivalent to nearly 1,200soccer pitches, or 3.5 times the size of Central Park.

For PGS and its clients, more rapid deployment and retrieval ofequipment, as well as greater operational capacity will translate intofaster completion of surveys and increased uptime in marginalweather. The period between major yard stays is also extended byapproximately 50%.

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SEISMICDefining Potential

Seismic advances continue to assist operators in obtaining a clearer picture in defining their exploration prospects.

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Jon Erik Reinhardsen, President and CEO of PGS stated in a comment:“The Ramform Tethys further strengthens our fleet productivity andtogether with the other Ramform Titan-class vessels will enhance ourcompetitive edge. In the current challenging market environment wealso experience more demand for our best capacity and Ramform Tethyswill add to PGS ultra-high-end value proposition.”

Data IntegrationPGS, also announced this past June that it had entered into an agreementwith Rock Solid Images (RSI) related to the integration of seismic,EM, well log and rock physics data. This agreement will allow PGSto offer a range of new products and services based on RSI’s patentedworkflows, building on PGS’ GeoStreamer® expertise and detailedreservoir understanding.

The company says that its innovative Towed Streamer EM system notonly revolutionizes acquisition efficiency but also generates richerdatasets which are significantly higher density than those generated bytraditional node-based methods. It is this high data density and richnessin both offsets and frequencies that make PGS EM data easier tointegrate with seismic, and ideal for reservoir characterization. PGSis now able to use results from EM inversion, together with the welllog, rock physics, and pre-stack broadband seismic data to producesuperior interpretation results.

“The real value of CSEM data is extracted once it is fully integratedwith seismic. This agreement allows us to develop more quantitativeworkflows so that Towed Streamer EM data can be used beyondexploration and into reservoir characterization,” said Jonathan Midgley,Vice President PGS EM.

“Our fantastic GeoStreamer technology is ideal for quantitativeinterpretation but the value is further improved when collocated withhigh-density EM data. Now we can integrate both these datasets in ourworkflows. Prestack AVO compliant GeoStreamer seismic combinedwith Towed Streamer EM, is a tremendous tool for prospect de-risking,”commented Cyrille Reiser, PGS Reservoir Characterization Director.

Shallow Reservoir ImagingJust recently, CGG launched its TopSeis(TM), the latest evolution inoffshore broadband seismic, specifically designed to overcome theintrinsic lack of near offsets inherent in 3D towed-streamer seismic.

Exacerbated by the use of progressively wider spreads to meet theindustry’s quest for greater efficiency, the lack of near offsets leads toan inability to image shallow geological features, such as faults, gaspockets, channels and stratigraphic pinch-outs, effectively. Byovercoming this shortcoming, TopSeis enables exploration anddevelopment teams to make critical investment decisions on the basisof superior high-density broadband data delivered at a lower costcompared to other techniques, notably ocean bottom seismic.

TopSeis is the latest outcome of eight years of collaboration betweenLundin Norway AS and CGG to develop innovative broadband solutions,including early benchmarking of CGG’s BroadSeis(TM) solution, toimprove subsurface understanding and increase exploration success.Its dual-vessel acquisition design, which places CGG’s broadbandsource over a customized receiver spread, combined with proprietary

imaging, is an industry first. Extensive field trials have shown TopSeisto be a highly-effective solution which delivers unsurpassed broadbandimaging of shallow targets.

TopSeis will play a key part in a forthcoming integrated geosciencestudy, including an extensive commercial survey CGG plans toacquire in the Barents Sea in 2017. This will offer other early adoptersof this new technology the opportunity to benefit from the anticipatedstep-change in image quality for exploration and development inthis region. TopSeis is also expected to have significant potential forapplications in other areas offshore Norway as well as other parts ofthe world.

Halvor Jahre, Exploration Manager, Lundin Norway AS, said: “Aftersuccessful close cooperation with CGG to develop, design and test theTopSeis acquisition concept, we view TopSeis as the next generationof broadband seismic acquisition. Results from a test offshore Gabonappear to confirm the data uplift indicated by modeling studies and weplan to move forward with full-scale TopSeis surveys on the LoppaHigh in the Barents Sea during 2017.”

Jean-Georges Malcor, CEO of CGG, said: “CGG has once again drawnon the multi-disciplinary expertise within its integrated geoscienceoffering to spearhead another step-change in seismic imaging to enhancesubsurface knowledge. We are delighted to have had the opportunityto work so closely with Lundin on the development of TopSeis andlook forward to seeing how this solution will open the door to a betterunderstanding of shallow reservoirs to help oil and gas companiesextract the full potential of these highly prospective fields in the BarentsSea and beyond. As we have seen with StagSeis(TM), the full-azimuthsolution that we purpose-designed for subsalt imaging in the Gulf ofMexico, these made-to-measure approaches can prove very successfuland reap dividends for the industry as a whole.”

Unique Acquisition ProgramsPolarcus undertook an ultra-wide 3D marine seismic project offshoreMyanmar. Polarcus Amani towed an in-sea configuration thatmeasured 1.8 km wide across the front ends. With each of the 10streamers separated by 200 meters, the total area covered by the spreadis 17.6 sq.km. This is the largest in-sea configuration ever towed by


Polarcus Amani sets acquisition records

Technology and Solutions

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a single seismic vessel as well as the largest man-made moving objecton earth.

With such an achievement, Polarcus is setting new acquisitionperformance records. The acquisition plan in Myanmar had the programdelivering up to 190 sq km per day, a production rate that is currentlyunrivalled in the seismic industry.

Around a decade ago, ION Geophysical introduced its BasinSPANs,or basin-wide seismic data programs to address the challenge ofevaluating both conventional and unconventional plays. BasinSPAN(SPAN) programs are basin-wide deep, geologically driven regionalmulti-client programs designed to evaluate prospectivity in new frontiersor identify new play concepts. BasinSPAN programs are customdesigned with local experts to provide critical insights into the geologicevolution, deep basin architecture, and depositional and structuralhistory of a petroleum system.

BasinSPANS are depth imaged by ION using the most advancedprocessing tools available. Particular attention is paid to ensure thedata ties available well information and provides a consistent frameworkto integrate 2D and 3D datasets and evaluate prospects.

The company has conducted numerous BasinSPANs globally,including many in Africa such as the CongoSPAN, East AfricaSPAN,

EquatorSPAN, LibyaSPAN, NamibiaSPAN, and NigeriaSPAN,collectively known as AfricaSPAN. The surveys collectively encompassover 95,500 km of data.

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Monthly Focus

he petroleum industry has not seen much, if any, improvementover the past year. If anything, in some instances the challengesthat have plagued the industry over the last couple of years

have deepened. The drop in oil prices and insecurity in many a producingregion on the African continent have all taken their toll. It is not onlyinternational oil companies (IOCs) that have suffered obviously, nationaloil companies(NOCs) have taken a hard hit and unlike some IOCsmany do not have the cushion or tdeep financial pockets to keep themgoing as their efforts are geared toward filling national coffers.

The continent’s NOCs come in every shape, size and prowess; no twoare the same so the criteria for judging their activities is less regimentedthen that of Petroleum Africa’s Annual Independent contenders. TheBig 5 NOCs–EGPC, NNPC, NOC, Sonangol, and Sonatrach have beenhit hard as they, and the countries they represent, depend heavily oncrude revenues. The continent has a host of small, medium, and evena couple larger NOCs trying to make their mark on the industry fortheir respective countries during trying times for the petroleum sector.Whether a Big 5 NOC or one of the smaller At Large NOCs, all theAfrican NOCs under consideration for this year’s title have workedhard to continue to progress their respective countries’ agendas.

The Big 5As stated previously Big 5 NOCs have been hit hard by the challengesthe industry is experiencing, some have handled it better than others.One firm that has continued to push through over the year, knowingthat its country depends on the funds generated by its efforts in thepetroleum sector. This year’s winner of the Big 5 NOC of the Year isAlgeria’s Sonatrach. The past decade has not been kind to Sonatrach.The company has seen less and less foreign investment over the years,has been embroiled in corruption scandals, and the security of someof its facilities has been called in to question time and again, yetdespite this the company has continued to persevere, and for the mostpart prosper.

The NOC has 154 subsidiaries both nationally and internationally, with105 of those subsidiaries operating in Algeria and 49 others around theworld in countries such as Peru, England, Spain, Mali, Niger, andLibya. Sonatrach’s subsidiaries cover a wide range of disciplines insidethe industry and peripherally including drilling operations, engineering,well services, shipping, and marketing.

Over the past year Sonatrach has done its utmost to stay near the topof the production charts on the continent and initiated plans at theoutset of the year to aid in that. The company planned to raise productionby 5% in 2016 over 2015 numbers and is targeting a 30% increase by2020. By mid-2016 the company had already seen two of its major oilfields experience an uptick in production, the Hassi Messaoud and theOurhoud. The Hassi Messaoud’s production is up by 50,000 bpd andthe Ourhoud is up 25,000 bpd as part of Sonatrach’s goal to maximizeoutput on mature fields. In this effort, it has not been afraid to spendits dwindling cash to get the job done.

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Year Awards

The company initiated its plans to maximize production on the HassiMessaoud, Algeria’s oldest and largest oil field. Sonatrach’s planscalled for the drilling of 32 to 50 wells. Under this scheme it awardeda contract for the revamp and installation of a new production system,and undertook the updating of a well on the field itself at the cost of$14 million.

Over 2016 Algeria’s NOC saw the start up of the Southern Fieldsproject on the In Salah. Phase 2 of the In Salah Gas Project involvedthe development of the four gas fields in the south of the area – theGour Mahmoud, the In Salah, the Garet el Befinat, and the HassiMoumene. Developing these Southern Fields allow for production tomaintain a level of 9 Bcm/y. The development included the constructionof a new processing facility, more than 300 km of pipelines, and thedrilling and tie-in of 26 wells. Besides the start-up of the SouthernFields, the In Salah saw its gas plant resume full production for thefirst time since a militant attack in 2013 when its third train cameback online.

While security concerns have been an issue with foreign firms operatingin the country, leading to two firms pulling their employees from theKhrechba gas field in April following an attack, Sonatrach turnedaround and had its own employees operate the field in the absence ofthe foreigners. The incident highlighted that the NOC was more thancapable to carry on in whatever capacity necessary without the aid offoreign workers.

On the drilling end, the state-run firm participated in a number programswith partners including the successful third exploration phase of theHassi Bir Rakaiz project and in August reported a new oil and gasdiscovery was made on the concession. The discovery had flow ratesof around 2,406 bpd of crude and associated gas flow was 2.9 Mmcf/d.It also participated in the launch of development drilling at Ain Tsila.To date the Groupement Isarene partners have drilled two wells andspud a third. The first well, the AT-10 development well, reached atotal depth of 2,005 meters MD, with a planned 61-meter penetrationof a fully gas and condensate bearing Ordovician formation. Next wasthe AT-13 development well which, like the AT-10, penetrated gas andcondensate in the Ordovician formation.

Besides the activity discussed, the NOC has taken the ‘you have tospend money to make money’ approach, issuing a number of contractsand tenders on both the upstream and downstream side. Earlier thisyear the company awarded a FEED contract for three new refineries,there was a package of contracts totaling $880 million for oil and gasdrilling tubes, and a tender for the purchase of gasoil and gasoline. Italso handed out a number of contracts to oil service firms; US oilservice firms Schlumberger, Weatherford, and Baker Hughes were allawarded contracts for work in the North African country. Schlumbergerand Weatherford secured contracts for cementing and pumping services.The Schlumberger contract award is worth $75 million and theWeatherford contract is worth $11 million. Baker Hughes secured acontract for $50 million through its Algerian unit, BJSP, in which

Monthly Focus

Sonatrach holds a 51% stake. A fourth contract worth$44 million was awarded to the Emirati firm NPS.

The effort Sonatrach has shown throughout the yearunder challenging conditions was met with considerablesuccess. While keeping the minimum status quo is afeat in itself, Sonatrach went beyond the call andorganized a hefty work program and kept the pace onmeeting its goals, including upping its production.For this effort and a number of others, Sonatrach isdeserving to return to the Petroleum Africa podiumafter a brief absence as its annual National OilCompany of the Year once again. Congratulations tothe Sonatrach team!

NOC At LargeWith 53 countries on the continent, Africa plays hostto a number of NOCs outside the Big 5 realm and whilenew NOCs are not formed on a regular basis, thecontinent does have a few newbies who have yet tocut their teeth in the industry. These non-Big 5 NOCs also come inall shapes and sizes as do their levels of industry prowess. Inaddition, they also differ in how they participate in their petroleumsector, some are fully vested, integrated firms while others just overseethe industry.

This year’s winner of the NOC At Large award is one of those firmsthat is fully vested in its country’s industry and has worked hard toensure that whatever activity takes place in the country, it will providethe most benefit to a wide range of its citizenry. The firm is not thelargest of At Large NOCs or the most technically advanced, but it hasupped its game over the past several years establishing itself as a forceto be reckoned with.

Making a back-to-back appearance as the winner of NOC At Large isGhana National Petroleum Corp., or GNPC. The state-run firm nowhas a host of subsidiaries aiding it in its endeavors. GNPC Explorationand Production Company (Explorco), GNPC’s 100%-owned explorationand production subsidiary serves as the company’s operating arm onselected projects. Explorco is currently partnering with internationalfirms on the South Deepwater Tano Block and the Expanded ShallowWater Tano Block. There is also the Saltpond Offshore Producing Co.Ltd., an operating and production company for the Saltpond Field;GNPC owns 45% with the remainder held by Lushann Eternit EnergyLtd. GNPC also has the AGM Operating Company (OPCO) whichuses the joint operating company concept in which GNPC-Explorcoand AGM Ghana will jointly operate selected blocks.

This past year GNPC has added to the production totals it overseeswith the addition of flows from the TEN development. The firm playeda vital role in the identification, mapping of the leads and prospectseven before the first discovery of the three fields was made throughdata it acquired prior to the block being awarded. Actions taken by thecompany in the past paved the way for its participation in the successof the TEN development. The underlying principle of GNPC as anNOC was to protect national interest, while at the same time, creating

the right environment for a fair return for investors. This GNPC pursuedby ensuring that the TEN Plan of Development had national interestat the fore and also had enough offerings for the partners to developthe field. GNPC also ensured that the operator and partners committedto creating opportunities for Ghanaians to gain experience and developskills. These actions all combined for a successful development pathfor the project.

GNPC is also involved in aiding Ghana keep up with the country’spower generation needs. In early 2016 the company signed a Heads ofTerms for the construction and operation of the liquefied natural gas(LNG) storage, regasification and delivery facilities at Tema. The TemaLNG Project, comprising a capital outlay of over $550 million, willbe implemented on a build-own-operate-transfer (BOOT) basis andGNPC will take over the assets after the project’s 20-year term iscompleted (see Downstream Focus, page 14-15, for more details).

The company also launched a call for expression of interests and atender over the period to facilitate its exploration plans onshore Ghanain the Voltaian Basin. The expression of interest was issuedinternationally, while the tender was issued inside the country. Ghanacalled for an expression of Interest from reputable international servicecompanies to be shortlisted to receive an Invitation to Tender (ITT)for the processing of 2D seismic data before Q3 2017. The tender wasfor the supply and provision of VHF radios and satellite phones andrelated services for use in its upcoming survey.

Given the state of the industry worldwide it has been difficult enoughfor an IOC to survive and prosper, let alone a relatively small NOC.GNPC has not only been able to survive but has flourished in its owngrowth path – upgrading the skills of its in-house teams and broadeningits technical capabilities – all the while looking out for the nation’sbest interests and overseeing the TEN development come online. It isfor these reasons, among others, that GNPC remains Petroleum Africa’sNOC At Large for the second year running. Congratulations to theentire GNPC team for a successful year, well done!

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he past has not brought a whole lot of peace to thepolitical landscape in Libya, although the future of the countryis slightly less bleak than when covered last year by

Petroleum Africa. Over the past year a UN-backed Government ofNational Accord (GNA) was established. In December representativesfrom a broad range of Libyan society signed a UN-brokered agreementon forming a national unity government. The signing of theagreement was hailed by a number of dignitaries around the world as“historic” and “essential building blocks towards a peaceful, secureand prosperous Libya.”

While the signing was welcomed worldwide it should be noted thatautomatic peace and security was not the result. According to UNSecretary General Ban Ki-moon the signing was just the “beginningof a difficult journey.” One of those difficulties is that the governmentthat was established in the east of the country has failed to endorse theGNA from the beginning. A presidential council was appointed to formthe unity government in January and in February the council namedits ministers for parliament to vote on. The list was sent to Libya’sEastern parliament for approval of the 13 ministers and five ministersof state the council had named. The government in the East rejectedthe list of ministers. Just recently parliament based in Eastern Libyavoted against a motion of confidence in the GNA. This was the first

time since January that the parliament has gotten together to vote. TheGNA had been trying to receive an endorsement from the East’sparliament for a number of months and the vote of no confidence isseen as a blow to the GNA’s ability to bring about unity to the country.

Another difficulty for the GNA is the insurgency of Daesh (ISIL/ISIS)fighters in the country. The UN plan under which the unity governmentwas named was designed to help Libya stabilize and tackle a growingthreat from Daesh or the Islamic State of Iraq and the Levant. The CIAestimates that the number of Daesh fighters in Libya is increasing. InJune CIA Director William Brennan said there were an estimated 5,000-8,000 fighters on the ground, up from an estimated 2,000-5,000 inFebruary. Libyan troops, those aligned with the GNA and those loyalto the government in the East, have been battling Daesh militants acrossthe country with some success. Over the past several months a pushto oust the militants from the coastal city has been conducted withsome positive results. The US has also contributed to efforts to oustDaesh, conducting airstrikes on the militants’ positions in Februaryand early August.

While Libya has taken some steps forward in its political situation,albeit small steps, the economic situation continues to grow more dire.The instability and fighting has cut off the majority of its main revenue

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African Focus

Political and Economic SnapshotPolitical and Economic Snapshot

Source: Various, including CIA World Factbook and EIA

Prime Minister (Presidency Council):Fayez SerajIndependence: December 24, 1951(from UN trusteeship)Population: 6,411,776 (July 2015 est.)GDP (purchasing power parity):$92.61 billion (2015 est.)GDP - real growth rate: -6.4% (2015 est.)GDP - per capita (PPP): $14,600 (2015 est.)Oil - production: 332,000 bpd (June 2016)Oil - consumption: 248,000 bpd (2013 est.)Oil - proved reserves:48 billion barrels (2014 est.)Natural gas - production:430 Bcf (2012 est.)Natural gas - consumption:202 Bcf (2012 est.)Natural gas - proved reserves:54.7 Tcf (2015 est.)

Fayez SerajL I B YAL I B YA


With all the issues Libya is embroiled in, it should not come as asurprise that the country’s oil and natural gas reserves totals have notchanged over the past year. As reported in the 2015 coverage inPetroleum Africa, the country has booked reserves totaling 46.42 billionbarrels of crude and an estimated 52 trillion cubic feet (Tcf) of naturalgas. Libya still remains near the top of the African chart when it comesto reserves.

The country used to sit near the top of the African producers chart butit is now closer to the bottom. The poor political and security situationhas had serious consequences for the economy, public finance andofficial reserves. An average of 400,000 barrels per day (bpd) wereproduced in 2015, quite a drop from the 1.8 million bpd it was producingprior to the Arab Spring.

As the industry continues to stagnate due to the security situation, thereis little to report on either the upstream or downstream side of theequation. Most international firms with holdings in the country havetheir operations on hold or are producing at a fraction of their pre-civilwar levels.

Companies who hold stakes in Libya have not been flooding the industrywith news on their operations; although there are one of two who havehad something to report, Italy’s ENI is one of them. The firm hascontinued to produce throughout each crisis the country has faced overthe past half-a-decade, mostly from its offshore fields. At the end of2015 the company was producing at a rate of 300,000 boepd. ENIpushed forward with its exploration activities offshore, which over2015 and 2016 resulted in discoveries. On ENI’s contract Area D itmade gas and condensate discoveries in the offshore Bahar EssalamSouth exploration prospect and the Bouri North exploration prospect.Contract Area D was awarded to ENI in 2008 under the EPSA IVcontract model. The latest exploration activity conducted by the companyon Area D was the spudding of the C1-16/3 in late July. The well isbeing drilled in a water depth of 515 ft, south of the Bahr-Essalam gasfield. The well is expected to be drilled to a total depth of 10,845 ftand should be complete within 77 days.

On the development end ENI’s JV company with NOC, Mellitah OilCo., recently awarded Technip a major contract for a job for its BahrEssalam Phase II development. The contract has Technip performingoverall design, detailed engineering, and delivering the projectmanagement, as well as procurement, installation, tie-ins, pre-commissioning and commissioning of the development in theMediterranean. This natural gas field development will be tied backto the Sabratha platform. This will be associated with the provision ofa gas gathering system, comprised of production pipelines, subsea

isolation valve (SSIV), umbilicals, as well as extensive diving andinstallation campaigns. It will also include modifications to the Sabrathaplatform regarding the topsides. Offshore installation is scheduled forH2 2017 through to H2 2018.

Unfortunately, oil and gas activity does not run so smoothly onshore.In April of this year the company had to evacuate its staff from theWafa, Tibesti, and Bayda fields on fears of attacks by Daesh militants.All of the staff was evacuated from the Wafa, while a partial evacuationtook place at the Tibesti and Bayda fields; production however wasnot affected by the shut ins.

Wintershall operates in eight onshore oil fields in the eastern SirteBasin; these fields are spread over concessions C96 and C97. Thecompany is partnered with Gazprom on the concessions. Because ofoperational challenges such as strikes and blockades at export terminals,Wintershall has had to repeatedly suspend its operations on bothconcessions. In April of this year the company said that over 2015 itonly saw 125 producing days. Over the 2015 period not only did thecompany produce for roughly only one-third of the year, but itsproduction rate was down almost two-thirds. The German firm sawaverage flows of only 35,000 bpd for the year, a big drop from itsprevious average of up to 100,000 bpd during peaceful times.

France’s Total has two fields in Libya, the Mabruk with Statoil in theSirte Basin and El Sharara in the Murzuq Basin. Unfortunately, due tothe insecurity the company’s production has been suspended since late-2014. Total also held an interest in the offshore Al Jurf field on theC137 block, partnered with Wintershall and NOC. In H2 2015 it wasreported that Total sold its 51% stake in Mabruk Oil Company, the JVbetween Total and NOC which operates the Al Jurf, to Libya’s NOC

Petroleum Sector

African Focusgenerator, oil and gas exports, due to fighting and protests around oiland gas fields and export terminals. According to multiple sources thecountry’s GDP was -6.4% in 2015 and is expected to come in at anegative once again in 2016, with estimates putting it at -0.6% for theyear. On a positive note, in the event of a resolution to conflict and arapid resumption of oil production, economic growth could recoverquickly and economists say it could hit 3.9% for 2017 if this happens.According to a report on the Libyan economy by African Economic

Outlook, Libya’s economic situation over 2016 will largely depend onthe implementation of the GNA and the extent of security stabilization.In this context, the economic recovery will proceed slowly, especiallyin the oil sector. In 2017, the implementation of an important reformsprogram could release substantial growth potential and significantimprovements in both the budget and current balances. This wouldstabilize Libya’s official reserves and help create a climate of trust andconfidence for potential investors.

Statoil in the Murzuq Basin

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based jn Tripoli. Statoil, mentioned previously, also holds stakes inArea 147 in the Murzuq Basin. Operations on this block have been onhold since 2015 due to the security situation.

Occidental Petroleum, or Oxy, is looking to make a strategic exit fromthe country. The company’s CEO Vicki Hollub said at the outset of2016 that there were a few assets that needed to be disposed of and thecompany’s holdings in Libya were included. While the companyenvisaged an exit from a number of its assets by the end of 2016, thedisposal of the Libyan assets will require more time. Exiting variousfields in Libya’s Sirte Basin and other onshore exploration blocks holdsmore challenges than its other assets. “We haven’t really defined ordisclosed what our exit strategy is right now, so that’s one of the optionsthat will probably take longer,” Hollub said.

The country has two National Oil Corps., one based in Tripoli andanother operated out of the East by the government in Tobruk. The twoNOCs caused much confusion as industry players were not confidentas to which firm they should be dealing with. Recently there has beenmovement on the NOC front with the two agreeing in principle to unifythe oil sector. Following this agreement, the two firms indicated thatthey had agreed on a structure for the group that could end the battleover who has the right to export Libyan crude. Under the agreementMustafa Sanalla, from the Tripoli-based NOC, will remain chairmanof the group, while the head of the eastern-backed NOC, Naji al-Maghrabi, will serve as a board member. It is hoped that a unified oilsector will be key in supporting the unity government. Over the pastseveral months NOC has been busy meeting with various JV companies,local officials, foreign dignitaries, and visiting petroleum facilitiesacross the country.

While the two NOCs confused the industry, one of the subsidiaries ofNOC continued to trudge along getting the job done despite all theturmoil and violence surrounding oil operations, that subsidiary is theArabian Gulf Oil Co. (AGOCO). When last covered in PetroleumAfrica’s overview, AGOCO was pumping 225,000 bpd even with twoof its oil fields, the Nafoura and Bayda, closed due to power cuts or

protests. Over the past year AGOCO carried on itsexploration and development activities issuing anumber of tenders for drill bits, construction, anda variety of other items to keep its facilitiespumping away.

The company’s drilling schedule will not lay dormantif plans revealed by AGOCO chairman MohamedBen Shitwan are anything to go by. In a presentationin Q4 2015, Shitwan said that the company woulddrill 93 wells over a 10-year period. He went onto say that the new wells had a target potential inexcess of 2.3 billion barrels of oil/condensate and3.1 Tcf of natural gas. In April of this year thecompany revealed a discovery was made in Block47 with the drilling of the FF2-147. The well testedat an initial flow rate of 1,892 bpd.

Not all the news from AGOCO was positivehowever, as it experienced attacks on facilities and

production shut ins. In April NOC reported that the area adjacent tothe Al-Baidha oil field was attacked, resulting in the loss of five lives.In July the company halted production at the Sarir field after a protestby oil-facility guards shut the eastern port of Hariga. Recently the GNAreached an agreement with the petroleum facilities guards (PFG) toreopen some ports in exchange for being paid back salaries. NOC wasnot happy with the deal and had no qualms in saying so. The state-runfirm said it was a mistake to reward the PFG for the blockade of oilports at Ras Lanuf, Es Sider, and Zueitina. According to Sanalla, thesettlement would only encourage other groups to disrupt oil and gasoperations in hopes of a similar pay out.

As stated previously NOC has not been sitting idle and has been meetingwith a number of its JV partners to plan the future of the industry. InAugust the company held a technical meeting with the Waha Oil Co.which included representatives with from Marathon Oil, ConocoPhillips,and Hess Corp., as well as specialists from the Libya Petroleum Institute(LPI) and Taknia Libya Engineering. During the meeting, Waha OilCo. presented its activities for 2016 and the work program and proposedbudget for 2017. Also discussed during the meeting was the company’splan to resume production and exports. In addition to meeting withWaha, NOC has met with JV companies Mabruk Oil (Total) andMellitah Oil (ENI), along with their partners on various fields includingStatoil and Wintershall.

While Libya’s current situation may appear to be dire, with productionmerely a trickle of its former glory, you must remember it has been inthis position before and rebounded quickly. At the time of the ousterand subsequent death of longtime leader Muammar Qaddafi, Libya’sproduction was also faltering, but companies operating there quicklyset their facilities aright and flows returned to near pre-civil war status.The restoration of production happened at a much quicker pace thananyone had predicted. For the Libyan oil industry to make a repeat ofthis a number of things must happen, most importantly the country’snumerous factions need to come together behind the GNA andoust Daesh. Only then can they work on fully restoring this oncebustling industry.

Wintershall operations in Libya during peaceful times

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hroughout history a host of tribes and cultures migrated intothe region that is now Uganda, all leaving their indelible markon what today makes up this modern day East African country.

The European’s spark of interest in the territory came as a result offorays into the region to discover the source of the Nile. British explorersstumbled across Lake Victoria as the source. Although it would takemany more years before this was actually confirmed, the discovery ledto the colonization of Uganda by the British until 1962 when EdwardMutesa II was brought into the role of ceremonial president uponindependence. Mutesa named Milton Obote as the prime minister andfour years later Obote threw out the constitution and declared himselfpresident, bringing about an era of political instability and some bloodycoups and rulers.

Uganda faced some horrific years following independence with coupsand counter coups taking place. Perhaps the bloodiest of the country’shistory took place when Idi Amin Dada came to power in 1971 througha military coup. Idi Amin’s regime was one of the most brutal in thehistory of Africa; characterized by human rights abuses, politicalrepression, ethnic persecution, extra-judicial killings, and theexpulsion of Indians from the country. Amin ruled until an invasionby Tanzanian forces aided by Ugandan exiles sent him packing andoff into exile in 1979.

Following the ouster of Amin, Obote returned to rule Uganda butwas overthrown again, this time by General Tito Okello in 1985.Okello’s rule was short, lasting only six months before he himself wasoverthrown in a coup by the National Resistance Army led byUganda’s current president, Yoweri Museveni. Museveni at one timewas lauded by the West as one of the ‘new generation’ of Africanleaders, although it is hard to fathom how the ‘new generation’leader has managed to hang on to his position for three decadeswithout some of the ‘old generation’ qualities to maintain hisstatus. His change of the constitution in 2005 to allow unlimited termlimits for the presidential office is just one of the ‘old generation’tricks he has pulled; a maneuver in December 2014 by Museveni’sNational Resistance Movement (NRM) that added to the powers ofthe presidential office is another. The NRM approved a motionthat would allow the NRM party chairman, Museveni, to appoint ordismiss party leaders at will, which the president took fulladvantage of.

Museveni took advantage of those unlimited term limits once again in2016, winning the presidential elections in February with more than60% of the vote. Museveni defeated opposition candidate KizzaBesigye and six others who sought to end his reign. It was thoughtthat this election would be the toughest challenge Museveni had

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African Focus

Political and Economic SnapshotPolitical and Economic Snapshot

Source: CIA FactBook July 2016

President: Yoweri Museveni(since January 1986)Independence: October 1962 (from UK)Population: 37,101,745 (August 2016 est.)GDP (purchasing power parity):$79.88 billion (2015 est.)GDP - real growth rate: 5% (2015 est.)GDP - per capita (PPP): $2,000 (2015 est.)Minister of Energy and Mineral Resources:Irene MuloniOil - production: N/AOil - consumption: 22,000 bpd (2013 est.)Oil - proved reserves: 2.5 billion barrels(January 2015 est.)Natural gas - production: N/ANatural gas - consumption: N/ANatural gas - proved reserves:14.16 Bcm (2015 est.)

Yoweri MuseveniUGANDAUGANDAUGANDA


As another year passes, Uganda remains ‘on the verge of production’,‘Africa’s next producer’, and ‘about to become a member of theproducing club’. However, recent movements on an export scheme forthe country’s crude have brought Uganda closer to the precipice ofbecoming an oil producer.

In anticipation of having a booming oil and gas sector Uganda createda national oil company (NOC). The NOC was incorporated in June2015 under the name Uganda National Oil Company Ltd. Theincorporation is seen as a firm step forward after years of explorationand grumbling over issues such as tax and the kind of infrastructurethe industry needs. Fred Kabagambe-Kaliisa, the permanent secretaryat the Ministry of Energy and Mineral Development, described theincorporation of the company as a milestone.

Uganda’s NOC will collect the country’s share of petroleum receivedin kind, manage business aspects of state participation, and also developin-depth expertise in the oil and gas industry. It will be run as a privatecompany and be wholly owned by the government. Last yearMichael Werikhe, the chairperson of Natural Resources Committee ofParliament, said the country opted for a private company that couldrun its business like any other private entity, free from the bureaucraciesof government.

The Production Sharing Agreements (PSA) that the government entersinto with licensed oil companies provide for government’sparticipation through a carried interest of up to 15%. The oil firms willcarry the interest for the government through the exploration anddevelopment stage. The carry ends upon the start of production whenthe government takes charge of its interests through the NOC. The newcompany is also expected to handle government’s interests in theplanned refinery through a subsidiary. The state will hold a 40%share in the oil refinery, which is planned to be built on a Public PrivatePartnership basis. Russia’s RT Global Resources has been selectedas the government’s preferred partner for the construction ofthe refinery.

In addition to the creation of the NOC, the Ugandan government createdthe Petroleum Authority of Uganda (PAU) to regulate the industry. ThePAU, according to the recently enacted Petroleum Act, is charged withmonitoring, regulation of oil activities, administering petroleumagreements, and ensuring that licensed oil companies uphold laws,regulations, rules, and contract terms.

In October 2014 the government began preparing for a licensing round,forgoing its traditional direct negotiation process. Uganda offered upblocks in this licensing round, all located in the Albertine Graben. Theblocks included the Ngassa in Hoima District, Taitai and Karuka in theBuliisa District, Ngaji in the Rukungiri, and Kanungu Districts, Mvulein the Moyo and Yumbe Districts together with Turaco and Kanywantabain Ntoroko District. These blocks have both seismic and well datawhich were acquired by oil companies previously licensed in theseareas. Stratigraphic licensing will be applicable to some of theseblocks. The Ngassa, Taitai, Karuka, Turaco, and Kanywantabablocks all saw exploration by Tullow Oil. The Mvule and the Ngajiwere part of acreage held by Tower Resources and DominionPetroleum respectively.

Uganda Upstream

seen at the polls since taking office; however, Besigye, his closestcompetitor, only came in with a little over half of the votes thatMuseveni garnered.

Besigye’s party, the Forum for Democratic Change, rejected the resultsand demanded an independent audit of the elections. Meanwhile,Amama Mbabazi, who served as prime minister under Musevenibetween 2011 and 2014, came third in the presidential race with lessthan 2% of the vote and filed a legal complaint against the results ofFebruary’s presidential election.

This was not Besigye’s first go-round at trying to unseat Museveni,having challenged him in the 2001, 2006 and 2011 elections. Afterlosing the 2011 election, he was shot by the military police and detainedseveral times. This past October he was temporarily placed under housearrest to prevent him from holding opposition rallies. Besigye wasarrested and/or detained multiple times during the week of the February18 elections, only to be arrested again, accused of fomenting violence,and released in July. While not everyone would agree on his leadership,

Museveni has been able to bring relative stability and economic growthto the country.

Uganda is blessed with an abundance of natural resources to fuel itseconomic growth. The country’s fertile land could feed all of thecontinent if it was farmed commercially. Uganda’s economy improvedover 2015, despite external shocks. The country is expected to see GDPgrowth reach 5.1% for 2016 and grow to 5.8% in 2017. The growthwill be driven by industry, services, and public infrastructure investment.

According to African Economic Outlook, large infrastructure projectsundertaken in the country will boost manufacturing, as well as services,most notably tourism. Rising private consumption will also drivegrowth. Further investment in the energy sector will also boost growth,although the pace has slowed in the past year as oil prices have fallensharply. The issue of new licenses for further oil exploration in thegreater Albertine region, once the government finishes contractnegotiations with select firms, will likely attract much-needed foreigndirect investment as well.

Operations on Tullow assets in Uganda

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Ugandan authorities undertook resource and risk assessment of theareas proposed for licensing, developed a data room, and made availabledata packages to prospective investors in preparation for this licensinground. A Notice of Request for Qualification (RfQ) was issued witha closing date of June 3 and 19 RfQs were received. In August thegovernment qualified 16 firms to submit bids for the acreage. The finalbids from Uganda’s first licensing effort were submitted in Q1 withthe government receiving seven bids for the six exploration blocks.Four firms were invited to negotiate for five PSAs. Three of thosefirms are from Nigeria and one is from Australia. The Ministry ofEnergy and Mineral Development said it selected Nigerian firms WalterSmith Petroman Oil Ltd., Oranto Petroleum International, Niger DeltaPetroleum Resources, and Armour Energy Ltd. out of Australia.“Negotiations for these PSAs is the final milestone before grantingexploration rights,” the Ministry said in a statement. Issues for negotiationinclude exploration work programs and how the financial proceedswill be shared.

Currently the only game in Uganda is the partnership of Tullow, Total,and CNOOC on EA1, EA2, and EA3A. A work program of wells,production tests, and a 3D seismic campaign that were carried out overthe past several years by the partners ended in mid-2014. Progress inbringing Uganda’s resources to fruition seem to continually hit roadblocks. The most recent stumbling block seems to be a repeat – theroute for the pipeline. This issue led to Tullow pushing back the timelinefor its FID on the development of its discovered resources in Uganda.The new timeline for the FID is now in early-2017. Events over the

past several months could lead to Tullow moving the FID timelineforward a bit, but given the delays seen in developing the resources itis unlikely the FID timeline will not budge unless it is pushed backeven further.

According to Tullow the delays have allowed it and its partners, Totaland CNOOC, to de-risk their 1.7-billion barrel resource base in thecountry. The partners have benefited from adequate time to mature thedefinition of the Lake Albert field upstream development which isexpected to have life-of field development costs, which comprisesoperating expenditure, capital expenditure and pipeline tariffs, ofapproximately $25 per barrel. The field development plans have beensubmitted to the government and approval of the plans, alongside theaward of production licenses, are in the works. Environmental andSocial Impact Assessments are underway, and Tullow is expecting theFEED for both the upstream and pipeline developments to commencein H1 2017.

Just recently it was reported that Uganda’s cabinet finally agreed toissue three petroleum production licenses to Total Exploration andProduction Uganda. In a statement issued by Uganda’s Informationand ICT Minister, Frank Tumwebaze, it was revealed that the cabinetapproved the request by Energy and Mineral Development MinisterIrene Muloni to allow for the issuance of the three production licenses.The licenses are for the Ngiri, Jobi-Rii, and the Gunya. The licenseswill have a duration of 25 years and can be renewed for an additionalfive years under Total’s PSA with the government. The licenses providethat where there are oil fields which extend across boundaries oflicensed areas, it's agreed that these oil fields will be developed as oneunit. The FID is planned to be taken within 18 months of the issuanceof the production licenses and first oil flow is expected in fiscal year2019/2020.

Prior to Total’s award of the production licenses, only CNOOC hadbeen granted one, although it really hasn’t done much with it. CNOOCseems to be taking its time on the Kingfisher oil field on Block EA-3A. According to reports, the Chinese firm is rethinking most of itsearlier conceptual designs, undertaking surveys for feeder pipelinesthat will take the crude from the Kingfisher field to the refinery, andbaseline studies for the installation facilities. Other work completedincludes the collection of more data on the wells, the FEED, the layoutof well pads, and analysis on central processing facilities with a capacityof 20,000 bpd.

African Focus

Uganda DownstreamTo date Uganda has no downstream industry other than a retail petrolsector. While right now the downstream is virtually non-existent, thesituation will change with the start of oil production as Uganda is setto get not only a refinery, but a pipeline as well.

When last covered by Petroleum Africa a RT Global Resources-ledconsortium (Russia) had been chosen to build the refinery. The plannedrefinery has a proposed capacity of 60,000 bpd and will be jointlyowned by a subsidiary of Uganda’s recently formed NOC and theprivate sector. The state will hold a 40% share in the oil refinery, whichis planned to be built on a Public Private Partnership basis. There havebeen reports that could throw a spanner in the refinery however, as the

Russian consortium has reportedly withdrawn from the project, butcould be enticed back given the right incentives. Specifically, theRussian firm wants tax breaks from the government.

Uganda will also be getting an export pipeline. This pipeline has causedsome consternation as first it was going through Kenya to the coastand then changed to a southern route to Tanzania on Total’s insistence.The route through Tanzania is thought to be the safer bet as Somalimilitant excursions into northern Kenya cause security concerns. Tullowhad been for the northern route as it has discovered significant cruderesources in Kenya that could be exported through it as well as itsUgandan crude.

Pipeyard in Uganda

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Uganda and Tanzania agreed on the pipeline route through Tanzaniafrom the Ugandan town of Hoima to the Tanzanian port of Tanga. Both

governments are progressing preliminary discussions on ownership,legal and commercial structures, while in parallel pipeline pre-projectwork has continued under Total’s sponsorship. Recent progress on thepipeline plan has included narrowing the route corridor to better definethe exact location, further field refinement work, the appointment oflegal advisors and advancing discussions on the commercial framework.Uganda and Tanzania are both actively committed to facilitating landaccess, as well as agreeing on favorable fiscal terms in order to movethis element of the project forward.

In April of this year Uganda and Tanzania came together to determinetransit fees. According to Uganda the cost of transporting its crude viaa pipeline through Tanzania will be capped at $12.20 per barrel. Theengineering and design work is expected to begin in October, constructionof the pipeline is due to start in 2017, and should be operational in2020. The land acquisition operations, FEED study, and environmentalimpact study will of course be completed before work begins.

Besides the refinery and pipeline, a petrochemical industry may emergein the future through the establishment of a fertilizer industry. In JuneAfrican Potash signed a non-binding Memoranudm of Understandingwith the government to support the development of a fertilizer industryin the East African country. The firm said the agreement will seek tohelp ensure the availability and effective distribution of fertilizers toUgandan farmers.

Uganda Tanzania Proposed Pipeline

How did you come to work in the energy sector?After completing my first National Service program as a teacherin a public school, I gained admission in 1990 to study BSc.Electrical and Electronics Engineering at the Kwame NkrumahUniversity of Science and Technology. I was the only female inthe Electrical Engineering class and came out as one of the top10 students with a second-class upper division. My malecounterparts were friendly and accepted me as any other student,thus making my transition from an all-girls school to an all-maleclass manageable.

For my second National Service program in 1994, I was a tutorin the Electrical and Electronics Department of Accra Polytechnicwhere I lectured Instrumentation, Controls and TelecommunicationEngineering. Towards the end of the following year, I startedwork at the Electricity Company of Ghana as an AssistantElectrical Engineer and have not looked back since.

With two decades under your belt at ECG, you must haveseen many changes; what projects have stood out for you?As you can imagine, I have worked on a considerable numberof projects that have contributed to the changing energy andelectricity environment in Ghana.

The first that comes to mind is when I led a team in the late1990s to conduct a technical survey, energy audit of publiclighting and traffic lights. The main deliverable was acomprehensive database to monitor the kWh consumed bypublic facilities and an assessment of its impact on ECG’stechnical losses.

In the same period, I undertook the assessment and approval ofprospective customers’ electricity service requirements. I alsosupervised service deliverables undertaken by third partycontractors and trained staff in the customer services section onthe Reviewed Service Connection Procedures.

Then in 2002, while working as a Metering Engineer, I designedwork methods to ensure the integrity of our industrial customers’metering as well as instituting a comprehensive database for 800of these customers.

Now as the manager for the metering division of ECG myresponsibilities include ensuring the overall integrity of meteringsystems from the Bulk Supply Points up to industrial customersthrough to the provision of policies, procedures and technicalstandards. I also manage an advanced meter laboratory used forcalibration, testing and inspection of new and used energy meters.

Women in Energy

Two Decades TransformingMetering and Service Delivery at ECG in Ghana

The importance of metering to drive your utility’s profitability and the benefits of customer service is evident in thisESI Africa interview with Eng Sariel Adobea Etwire, Manager for Metering Services and the Project Manager for

Advanced Metering Infrastructure (AMI) Projects for Bulk Supply Points, Distribution Transformers and Commercialand Industrial Metering at the Electricity Company of Ghana.

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Sariel Etwire in the Meter Laboratory preparingmeters and meter cubicle

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About Sariel Etwire, The Woman Behind ECG’s Metering TransformationSariel Etwire is a registered Electrical Engineer with the Ghana Institution of Engineers. She holds an MSC in Navigation and Related Application(2006), MA in Industrial Management (2003) and BSc Electrical and Electronic Engineering (1994).

Etwire is a member of the Women in Engineering (WINE) branch of the Ghana Institution of Engineers and currently holds the position of Manager forMetering at the Electricity Company of Ghana, since 2006.

Born in Akropong Akwapim in the eastern region of Ghana to Rev. Emmanuel Yirenkyi Addo and Mrs. Lydia Addo, both of blessed memory, Etwire is thesecond child of five siblings. She is married to Eng. Andrew Etwire of PowerWorld Ltd. Ghana and has three children, Evangeline, Giftie and Emmanuel.

Etwire’s favorite subject at school was mathematics and she graduated as the best science student for the school in 1989. She has been working for theElectricity Company of Ghana since November 1995 and is a corporate member of the Ghana Institution of Engineers.


Interview originally published in Africa’s power journal, ESI Africa issue 3/15 and republished with permission. www.esi-africa.com

I frequently facilitate the training and employee development oftechnical staff on meter data analysis and other related activities.

Who were your mentors and how did they inspire you in thechoices you made?My mentors were my late father and mother. My father discussedmy career path and encouraged me to pursue my dreams; hesupported me financially and emotionally. He was the first GlassBlowing Technologist in Ghana. My father, however, did notlive to see me pursue my engineering career. He died in May1995 a few days after my BSc Electrical Engineering graduationceremony, but his words of encouragement continue to inspiremy work.

My mother was very proud of me as a female engineer andcontinuously encouraged me to be a role model. Her words ofencouragement were mainly from Titus 2:7 – “Show yourself inall respects a model of good deeds, and in your teaching showintegrity, gravity and sound speech…”

Are there enough women in the power industry?The number of women in the power industry has been on theincrease; however, I believe they still represent a minority. Inmy company, only three women engineers are at the manageriallevel with 8% of the population of engineers in the companybeing women. On the other hand, 30% of non-technicalcustomer service related activities in the company are undertakenby women.

Should gender matter?Not really. What matters is one’s job satisfaction and ability toimpact positively on the country’s socio-economic aspirations.I see a successful engineer as one who dreams of delivering areliable product or quality service, and who enjoys workingtowards providing that service for the benefit of everyone.

However, with that said, it is my opinion that women make goodengineers because of their inherent qualities, which include asense of discipline, thinking outside the box and aesthetic skills.

What have been the most important decisions for you inentering the power industry?My choice to study Electrical and Electronics Engineering at theuniversity and then a discussion I held with my father and hisfriend working as a manager of ECG. These discussions clearedmy anxieties about working in the energy sector as a femaleengineer.

It became clear to me that women’s needs are respected, thatstudy leave and maternity leave are available, and that there areboth white- and blue-collar jobs for all ages. In fact, in October2001, ECG granted me a study leave to pursue a Master’s Degreein Industrial Management at the KNUST, in Ghana.

It is important to stay abreast of developments and improve yourskills. Thus, in 2005 I gained a USAID sponsorship to study an

MSc Program in Navigation and Related Applications atPolytechnico Di Torino, Italy. As part of the program I researchedinto the Development of GIS (Geographical Information System)for Asset Management of a Utility Company using GPS (A CaseStudy of ECG).

Sharing the knowledge gained from my MSc program I undertooka two-year part-time lecturing role at the Regional MaritimeUniversity where I taught courses in Instrumentation and Control,Electrical Measurements and Instruments, and Control Systems.

What have been your successes that have had a positiveinfluence in the sector?My successes have mainly been in the management or supervisionof turnkey projects at my company, ECG. For instance, in 2001,I supervised 15 third party contractors and 30 staff in a massivedecentralized deployment project to replace existing meters witha prepayment system for 80,000 customers, with a combinedmonthly revenue of over $100,000.

In 2005, we completed an expansive Metering ImprovementProject to curb losses in the industrial sector. This project coveredabout 800 industrial customers, which yielded about $1 millionin revenue from rectification and analysis of metering anomaliesand the restructuring of operations for better meter installationpractices.

Another project that had a significant impact was in 2014, forthe upgrade of 1,000 sub-standard metering systems and thedeployment of AMI for 3,000 commercial and industrial customers.This turnkey project led to the recovery of 99 million KWh and$10 million lost revenue and the curtailment of over $800,000per month. The benefits derived from this project include aneffective 24-hour remote monitoring system, and the prompt andeasy access to electronic metering data for billing and variousdata analysis.

Out of my desire to satisfy customers, we developed a custom-made Internet based customer portal for our distinguishedcustomers, leading to better understanding of the electricity usage,electricity availability and how their bills are generated. Thisplatform has resulted in a drastic reduction in disputes receivedfrom customers.

Sariel Etwire and family

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What projects are you currently busy with and what willthese hopefully achieve?Currently I am managing three turnkey projects in my companywith the ultimate goal to further reduce our commercial andtechnical losses as well as improve system reliability.

The projects are a $10 million Boundary Bulk Metering Project,a $6 million Primary Station and Distribution TransformerMetering Project, and a $4 million AMI Metering Project forCommercial and Industrial Customers. The impact of theseprojects is enormous and has reduced our commercial and technicallosses as well as improving system reliability.

The AMI project has unearthed over 102 million kWh leakedenergy representing over $10 million and curtailed a monthlyenergy leakage of over 3 million kWh. The system still effectivelymonitors the metering systems for quick detection and rectificationof the anomalies.

The metering project for distribution transformers is currently atthe integration stage with our GIS and billing system for energybalance analysis. This, we are optimistic, will generate reportson Distribution Transformers with high percentage losses fordirect loss reduction interventions.

In addition, the bulk metering project ensures the integrity andmonitoring of our energy purchases across ECG administrativeboundaries. It also enables the company to assess the performanceof loss reduction programs after their completion.

There is also a personal project that I have undertaken where Iam currently mentoring 28 electrical engineers, five of whomare women.

What are your top three predictions for the energy marketin Africa in the next five years?The energy sector is a vibrant place to be right now, and I predictthat there will be an increased level of partnership between utilitycompanies and telecommunication service providers for turnkeymetering operations on loss reduction programs.

Further to this, the sector will experience an increase in minirenewable sources of energy generated by consumers (the adventof pro-sumers) to augment the deficiencies in the national energygrid. There is bound to be an escalation in Private SectorParticipation (PSP) interest in the service delivery department ofutilities.

What is your personal vision forthis industry in Ghana as well asfor Africa?To have effective and visionaryleaders in the energy sector. For themanagement and staff of utilitycompanies to understand thedynamism of the energy industry andthen to turn the industry into aprofitable business venture withsatisfied customers. Throughdelivering on the projects in myportfolio, I believe this vision ispossible to achieve.

What has surprised you about being a woman in theenergy sector?My initial perception that the energy sector predominantly requiredmenial skilled labor, rather than analytical skills was incorrect.

When I started out in the sector, I effectively combined fieldactivities with my analytical skills. As I progressed in myprofession more analytical skills, leadership skills and humanrelationship interventions were strategic to my achievements.

I therefore encourage more women to enter the energy sectorsince the ultimate goal is excellent customer service delivery,regardless of the environment in which you will operate.

When you retire, what legacy do you wish to leave behind?The legacy I wish to leave behind when I retire are severaljournals on metering, an industry handbook on metering and aresilient, divested and user-friendly metering infrastructurepackage for utilities to replicate. Currently very few stakeholdersin the energy sector understand and appreciate the potential ofmetering as a strategic tool.

Last words of encouragement for women wanting to enterthe energy sector?Ladies, this sector now engages non-technical staff due to thefocus on good customer service delivery and this trend has cometo stay. I encourage you to take up any opportunities offered inengineering and technical fields as there are white-collar jobsnow in the industry to accommodate the special needs of women,such as maternity leave. Reach out to women who are alreadyin the marketplace who can guide you to become successful inthis sector.

Women in Power and Energy Luncheon – West AfricaWest African Power Industry Convention (WAPIC) together with Power Africa and PowerForAll along with African DevelopmentBank is proud to host the “Women in Power and Energy Luncheon – West Africa” (by invitation only).

Power Africa’s Women in Africa Power network and WAPIC are hosting a luncheon highlighting the role of women in Africa'senergy sector. Women in African Power aims to shine a light on both the role that women currently play in Africa’s energysector, and the tremendous potential they hold to shape a vibrant and growing sector. This luncheon will provide aplatform for networking, information exchange and exposure to new business opportunities.

To be part of the luncheon please contact Yolisa Nyoka: [email protected].

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Cobalt to Market Angola StakeDuring a meeting between Cobalt InternationalEnergy’s CEO Tim Cutt, and SonangolChairwoman Isabel dos Santos, it was decidedthat instead of the state company acquiring a40% stake in Blocks 20 and 21 as previouslyagreed upon, Cobalt will now market the staketo sell to a third party.

According to the US independent, it received aletter from dos Santos on August 1 confirmingSonangol’s support of such a marketing andsale process. Given this agreement to marketCobalt’s interest in Blocks 20 and 21, it is unlikelythat the sale transaction between Cobalt andSonangol will close pursuant to the terms of theAugust 2015 Purchase and Sale Agreement, andtherefore it is likely the Purchase and SaleAgreement will automatically terminate onAugust 22.

Cobalt is currently preparing a data room for itsAngolan assets and will immediately commencethe marketing and sale process.

Commenting on this Angola sale update, Cuttsaid, “Although we would prefer the transactionwith Sonangol to close, I am pleased that we canremarket these attractive liquid rich assets tothird parties. The development cost environmenthas improved substantially, the fundamentals formedium to long term liquids pricing remainsstrong and we have delivered two new discoverieson Block 20.”

ENI, Saipem and ScaroniOrdered to Stand Trial in AlgeriaENI, Saipem, and former ENI CEO Paolo Scaroniwill be standing trial in Algeria on corruptioncharges as ordered by an Italian judge.

The corruption case revolves around allegationsthat Saipem paid intermediaries around€198 million for contracts with Algeria’s state-owned Sonatrach worth an estimated €8 billion.

According to Saipem the allegations relate tohappenings at the start of 2010.

Both ENI and Saipem issued statements sayingthey were confident that the allegations wouldbe proved groundless.

Lufthansa Takes You to AfricaTravel to Africa just became a little easier. TheLufthansa Group airlines which includeLufthansa, Austrian Airlines, Brussels Airlines,and SWISS have integrated Africa’s mostimportant growth markets into their worldwideroute network.

Lufthansa has more than 35 destinations on thecontinent with over 600 connecting weeklyflights. Connections into Africa can be accessedfrom 10 regional airports.

South Sudan Turns to China for FundingSouth Sudan is looking for funding from China.According to the country’s foreign affairsminister, Deng Alor, the government plans toask China for a $1.9 billion loan. The loan is tobe used for infrastructure projects such as roadsand bridges.

“We (usually) present a list. Anything below$40 million, we ask the Chinese government forit to be a grant and anything above $50 millionto be a concessional loan. So we are asking for$1.9 billion,” Alor told a news conference in thecapital Juba. “We want to focus and use thismoney, the loan that we are going to get fromChina, on infrastructure like roads, bridges.”

Alor did not give more details on when the moneywas expected to be disbursed.

WEC Takes Stakein Industrial Cooling FirmWEC Projects (Pty) Ltd., a contractor specializingin turnkey water and wastewater treatmentsolutions in South Africa, acquired a majority

Independent E&P Companies

Ticker Symbol Currency One-monthPercent Change

Price as ofAug 22

Groundstar ResourcesAminex plcMaurel et Prom

GSA.VAEX.L

MAU.PA

CADGBPEUR

35.002.023.99

Company

ADX EnergyCobalt International EnergyMadalena Ventures

ADX.AXCIE

MVN.V

AUDUSDCAD

-16.60%-15.17%15.15%

0.0051.230.14

75.00%43.20%40.40%

stake in Industrial Water Cooling (Pty) Ltd.(IWC), a company specializing in coolingtower and industrial cooling solutions. Thepartnership is effective immediately andreplaces private equity company, MEDU Capital’sstake in IWC.

“I am very pleased to announce that we have anew business partner in WEC Projects. I am ofthe firm belief that in WEC we have found alike-minded business partner that understandsthe contracting environment in which weoperate,” comments Roger Rusch, ManagingDirector of IWC.

Johannesburg-based WEC Projects has beenoperating as a contractor in the water andwastewater treatment industry since 2002. Thecompany specializes in designing, manufacturing,and installing water and wastewater treatmentplants, such as packaged potable water treatmentplants, sewage treatment plants, industrialfiltration plants, submerged membranebioreactors, reverse osmosis plants, reverseosmosis pre-treatment systems, dissolved airfloatation devices, and lamella settlers.

WEC Projects are also pioneers in biogas toenergy technology, having designed, suppliedand installed South Africa’s first such plant at amunicipal wastewater site. The technologyconverts wastewater sludge into biogas that isthen used to fuel a gas engine that produceselectricity. As a result of this technology,municipalities are able to subsidize their electricalcosts by what they are able to produce themselves,utilizing a waste material that now has significantcommercial value.

Algeria’s Forex Dropping ala Oil PriceLow crude prices have caused Algeria's foreignexchange reserves to dip. According toAbdelmalek Sellal, the country’s prime minister,foreign exchange reserves are expected to dropto $116 billion by the end of 2016.

The government is making further cuts inspending, with its budget seeing a 9% cut for2016. The budget cuts are mainly affecting muchneeded infrastructure projects.

The North African country’s reserves dropped$6.1 billion to $136.9 billion in the first fivemonths of 2016.

“State policy will not be directed towardsausterity, but there will be a decrease inspending,” Sellal said, according to the statenews agency APS. He did not give details onfuture cuts.

Market Movers


Drilling & Service Companies


Price as ofAug 22Company

SIR Asks Government toTake on its Crippling DebtCote d’Ivoire’s SIR refinery has requested thatthe government take on debts that are keeping itfrom turning a profit despite record output.SIR hit a 30-year production record of 3.45million tons of refined products in 2015and output is on track to rise further in 2016,Thomas Camara said.

Oil and Energy Minister Adama Toungara toldreporters that he expected the government to takea decision in the next few days., but at time ofpress there had not been further word.

The refinery contributes the majority of the WestAfrican country’s refined petroleum productsand allows for exports to neighboring countries.

ExxonMobil OutbidsOil Search for InterOilExxonMobil has topped Oil Search’s bid forInterOil, offering $2.2 billion for the companythat holds the large natural gas reserves in PapuaNew Guinea. The move pits the US supermajoragainst French firm Total who is backing the OilSearch bid for InterOil. Oil Search had until July21 to up the ante.

Upon receiving ExxonMobil’s unsolicitedproposal, InterOil’s board of directors, afterconsultation with its legal and financial advisors,determined that the ExxonMobil offer constitutesa “Superior Proposal,” as defined in InterOil’sarrangement agreement with Oil Search Ltd. andInterOil has provided notice of such determinationto Oil Search.

Under the terms of the ExxonMobil Offer,InterOil shareholders would receive apayment of $45.00 per share of InterOil, paid inExxonMobil shares. The number of ExxonMobilshares paid per share of InterOil would becalculated based on the volume weighted averageprice of ExxonMobil shares over a measuring

period of 10 days ending shortly before theclosing date.

There would also be a contingent resourcepayment (CRP), which would be an additionalcash payment of approximately $7.07 per sharefor each Tcfe gross resource certification of theElk-Antelope field above 6.2 Tcfe, up to amaximum of 10 Tcfe. The CRP would be paidon the completion of the interim certificationprocess in accordance with the Share PurchaseAgreement with Total SA, which would includethe Antelope-7 appraisal well. The CRP wouldnot be transferrable and would not be listed onany stock exchange.

Golar LNG andSchlumberger Form OneLNGGolar LNG and Schlumberger have cometogether to form the OneLNGSM JV. The JV wasformed with the aim of rapidly developing lowcost gas reserves into LNG.

The combination of Schlumberger reservoirknowledge, wellbore technologies and productionmanagement capabilities, with Golar’s low costFLNG solution, will offer gas resource ownersa faster and lower cost development therebyincreasing the net present value of the resources.Golar and Schlumberger have a 51/49 split inthe ownership of the JV. The two have agreed toan initial investment commitment to cover theestimated equity needed to develop the firstproject. In addition, the parties will on a project-by-project basis discuss additional debt capitalas required. This future financing will take intoaccount Golar’s FLNG intellectual propertythrough an equitable contribution mechanism tobe agreed between the parties.

OneLNG will be the exclusive vehicle for allprojects that involve the conversion of naturalgas to LNG which require both SchlumbergerProduction Management services and Golar’sFLNG expertise. After reviewing the current

market opportunities where 40% of the world’sgas reserves can be classified as stranded, bothparties are excited at the future prospects ofOneLNG and are confident that it would concludefive projects within the next five years.

SDX Completes SecondTranche of its Private PlacementSDX Energy completed the second tranche ofits private placement. The second tranche consistsof 3,910,000 common shares that had been placedwith an investor conditionally upon the receiptof final acceptance of the transaction by the TSXVenture Exchange, which has now been obtained.Admission of the placement shares to trading onAIM and the commencement of dealings tookplace on July 28. The subscription price was18 pence (C$0.33) per placement share.

For the purposes of the UK Disclosure andTransparency Rules, the total number of votingrights in the company will be 79,843,902.

Hess Wants Compensationfrom SchlumbergerHess Corp. could pursue legal action againstSchlumberger over a defective valve for one ofits GoM oilfields. The company is looking foras much as $40 million as recompense for thebad valve that led to three wells being shut in,lowering its production flows from the field.

Hess announced its litigation plans in its quarterlyearnings conference call, publicly mentioningSchlumberger and decrying the quality of serviceand parts provided.

“It’s extremely disappointing,” Greg Hill, COOat Hess said on the earnings call of the allegeddefective valve.

Hess claims it is owed between $30 million and$40 million in remediation fees, attorney feesand lost profit from the shutdown of some wellsat its Tubular Bells field. Originally only twowere shut in but during a routine maintenancecheck a third was shut in.

As a result, Hess slashed its production outlookfrom the Tubular project to about 10,000 boepdfor the year, down from previous estimates forat least 25,000 boepd.

“It relates to some quality control and some ofthe components of the valve,” Hill said in theconference call.

New Strike Threat for South Africa 8315Two unions in South Africa launched strikes inover the past month. The first was the Chemical,

Market Movers

ProsafeNewpark ResourcesHelix Energy Solutions

PRS.OLNR

HLX

EURUSDUSD

42.30%29.30%18.40%

0.747.407.95

TidewaterAtwood Oceanics Inc.Noble Corp.

TDWATWNE

USDUSDUSD

-31.70%-28.60%-26.00%

3.208.355.97


Energy, Paper, Printing, Wood and AlliedWorkers Union (CEPPWAWU). The union,which refinery workers belong to, began its strikeon July 28.

The second was the National Union ofMineworkers (NUM). The union launched astrike against Eskom on August 8, demanding awage increase from the state-run utilityfirm. While Eskom was in arbitration withNUM, the union was not pleased with the offerEskom made to its workers.

In an effort to avoid a strike Eskom received aninjunction from a South African court, which

stated that the strike was illegal. The workersfrom NUM launched their strike anywayswith one of its leaders saying the unionmembers had a right to strike and the law was“no barrier.”

The union is said to have reduced its salarydemands from 13% for the lowest paid membersfrom 18% and to 12% from 16% for the rest.Eskom is offering 7%.

After a 14-hour marathon of negotiations NUMsigned a wage increase of between 8.5% and10%, with the lowest paid workers getting a 10%pay raise for the this year. In the second year, all

workers will receive a pay raise of 8% they said.It should be noted that not all unions on strikeparticipated in the Eskom negotiations.

Lamprell to Pay Enscofor Delays in Jack Up DeliveryLamprell will be paying remedial costs andliquidated damages to Ensco for the delay indelivering the jack up ENSCO 140. The ENSCO140 is a Le Tourneau designed, Super 116E(Enhanced) Class mobile offshore drilling unit.

Lamprell signed an agreement with the client tosettle all claims arising from the late delivery ofthe rig, including a $25 million deduction fromthe final milestone payment. The firm will alsoprovide additional services for ENSCO 140 andENSCO 141(now under construction atLamprell’s yard) including temporary storage.

An extended warranty for the jacking equipmentsupplied by the original equipment manufacturer,Cameron Le Tourneau will also be provided.

The delay was caused by failures in the jackingequipment that Cameron supplied. Lamprellplans to recover the remedial costs arising fromthe technical defects in the jacking equipmentfrom Cameron as well as seeking compensationfrom the latter.

Major E&P Companies


Price as ofAug 22

ConocoPhillipsTotalBP

COPFP.PABP.L

USDEURGBP

42.3142.47

427.31

Company

Royal Dutch ShellExxonMobilENI

RDSA.LXOM

ENI.MI

GBPUSDEUR

-8.90%-7.80%-6.10%

1887.0086.8513.42

1.30%-1.20%-4.10%


World’s Largest Semi-SubDelivered into ClassDNV GL welcomed the world’s largest semi-submersible drilling rig into class recently. TheOcean Greatwhite, is 123 meters long and 78meters wide and was delivered by Hyundai HeavyIndustries.

The Ocean Greatwhite is owned by DiamondOffshore and will be put to work offshore Australiaunder contract to BP.

The rig is to be a new design MOSS CS60E highspecification state-of-the-art semi-submersibledrilling unit suitable for operations in harshenvironments, which is the first MOSS CS60Eand the largest rig in the world.

Ocean Greatwhite is also the first new-build rigto receive the DNV GL Integrated SoftwareDependent Systems (ISDS) notation. ISDS aresystems whose performance is dependent on theoverall behavior of their integrated softwarecomponents. DNV GL’s ISDS standard helpsowners and operators minimize softwareintegration errors and delays in projects involvingcomplex integrated systems.

The certification ensures that software andintegration issues are identified and resolved earlyon during the project design stages. It alsorepresents a new approach to verification, as itemphasizes a review of the working methods andprocesses that lead to the delivery of the systems,rather than simply focusing on the final reviewof documents and installations to ensure theymeet product requirements.

Range Well ReachesTargeted Depth in TrinidadRange Resources’ QUN 159 well spud on August8 in Trinidad has reached the targeted depth of2,500 ft. The well, located on the Morne Diablofield, was the third development well drilled byRange in Trinidad this year.

The well was targeting the Lower Forest andUpper Cruse horizons. Preliminary analysis ofthe well indicates approximately 40 ft net oil pay.

The program to perforate the well has beenapproved by the government and Range intendsto proceed with production testing of the wellduring early September.

Production testing on the two previously drilleddevelopment wells (MD 250 and MD 251) is alsounderway. All three wells are expected to bebrought into production during Q3 2016.

Petronas Awards BellGeospace and Onyx FTG SurveyBell Geospace and Onyx Engineering werecontracted by Petronas for work in Malaysia. Thecontract is for a 3D multi-client FTG dataacquisition, processing and interpretation services.The data acquisition will cover approximately198,900 sq km.

The provision of airborne FTG and magneticsurveys will be undertaken over offshorePeninsular Malaysia, Sarawak, and Sabah. It willcommence subject to pre-funding requirementsand approval by Petronas.

Bell Geospace will provide a variety of expertservices for the project. This will allow currentpetroleum arrangement contractors and potentialbidders seeking new exploration blocks to quicklyidentify prospective areas for quick and efficientunderstanding of complex sub-surface geology.

Iraq Reaches InvestmentDeal with Three IOCsThe government of Iraq and three internationaloil and gas firms have reached an agreement thatwill see a restart of activities at certain fields.The agreement reached was with BP, Lukoil, andShell to restart investments at oil fields whichthe firms had halted development activities atearlier this year.

The agreements effectively delay to H2 activitiesthat the three companies had planned to carry outin H1, which had been suspended because of lowoil prices.

BP has agreed to spend $1.8 billion this year atthe Rumaila field it operates, Shell willspend $742 million, and Lukoil will spend$1.08 billion.

Indonesia Invites Petronas to ExplorePetronas was offered to explore 10 oil and gasfields in Indonesia, according to Indonesia’sDeputy Prime Minister Ahmad Zahid Hamidi.The invitation involved seven exploration blocksin the Exclusive Economic Zone and three in

Natuna Island and was made by Indonesia’sCoordinating Minister for Maritime Affairs LuhutBinsar Panjaitan.

While speaking at a press conference Hamidisaid Petronas had the opportunity to participatein the open tender by Pertamina, Indonesia’s state-owned oil company, for the exploration of newblocks in other locations.

Ashstead Deploys New DMSfor BP’s Quad 204 RedevelopmentAshtead Technology successfully completed asubsea integrity management project to supportBP’s Quad 204 redevelopment of the Schiehallionand Loyal fields, West of Shetland. Ashteaddeployed its new Deflection Monitoring System(DMS), to capture critical data required to safelydeploy and install two subsea manifolds at waterdepths of 400 meters. The technology waslaunched to the market earlier this year.

The system monitors deflection, heading, pitch,roll, depth and other parameters of subseastructures in real time. This allows informeddecisions to be made during critical operations,ensuring specified tolerances and safetyrequirements are taken into account.

The DMS was optimized to the exact pressuresand water depths required for the scope of workat Ashtead’s UKAS accredited calibrationlaboratory before it was launched from a vesseland lowered 400 meters onto the seafloor.

The project was completed on time and allowedthe subsea manifolds to be installed within 24hours of the DMS being deployed. The entireproject was controlled remotely via radiofrequency and acoustic data links, removing theneed for direct ROV or diver support interventionin order to gather attitude measurements.

Ashtead utilized a range of communication andpositioning tools to enhance the accuracy of datacollected and to ensure maximum performanceof the subsea structure once in place. Accordingto the firm, this new approach to the installationand integrity management of subsea systems wasdeveloped by Ashtead Technology as part of itsrange of value-added services to significantlyreduce risk and cost in subsea operations.

Iran to Invite Bids in OctoberIran plans to invite international oil companiesto submit bids in October under the long-awaitednew contract model for industry investment. Thetender comes as the country looks for newinvestment to boost its output.

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The government will invite companies to bid todevelop the South Azadegan field on Iran’ssouthwestern border with Iraq. The invitation tobid will take place during the week of October14-20 according to state news agency IRNA. Thecompany expects to sign three contracts worth atotal of $10 billion by March 2017.

Apache Declares Huge Find in TexasApache has made what it says is a huge discoveryon its Alpine High acreage in the Delaware Basinof Texas. The company said that after more thantwo years of extensive geologic and geophysicalwork, methodical acreage accumulation, andstrategic testing and delineation drilling, it couldconfirm the discovery of a significant newresource play, the “Alpine High.”

Apache estimateshydrocarbons inplace on its acreageposition are 75 Tcfof rich gas and 3billion barrels of oilin the Barnett andWoodford formations alone. Apache also seessignificant oil potential in the shallowerPennsylvanian, Bone Springs, and Wolfcampformations.

Apache has drilled 19 wells in the play, with ninecurrently producing in limited quantities due toinfrastructure constraints. This includes six wellsin the Woodford, one well in the Barnett and onewell each in the shallower Wolfcamp and BoneSprings oil formations. The Alpine High playcontains a large inventory of repeatable, high-value drilling opportunities with thousands oflow-risk locations in the Woodford and Barnettformations alone.

D3 Awarded DecommissioningJob in the North SeaD3 Consulting was awarded a six figure contractwith an unnamed major operator, following thesuccessful completion of a decommissioningproject with another operator.The eight-monthcontract started in April 2016 and involves thepreparation of materials inventories for 21platforms in the southern North Sea, with eightassociated subsea installations and pipelines.

The work scope includes the quantification ofassets with subsequent characterization andclassification of the waste and materials.

The company will uti l ize i ts uniqueDecommissioning Assurance through WasteKnowledge (DAWN) system, the world’s only

information management system for preparingmaterials inventories and managing wastethroughout the decommissioning process. Martincontinued: “As market leaders in offshoredecommissioning materials inventories, we aretypically engaged at the front end planning andengineering phase of decommissioningoperations.”

Polyard’s PhilippinesWell Completes TestingPolyard Petroleum’s Polyard-3 well completedoil testing on August 25 on the SC49 Block inthe Philippines. The company said that testingindicates that the main target intervals attainsteady oil production of 235.3 bpd and gasproduction of 9,022 cubic meters/d.

The Polyard-3 well will be converted into aproduction well and will commence productionin the short term.

The well had a planned depth of 1,508 meters,although the actual depth was 2,118 meters. Thewell was drilled to appraise the potential of theupper Maingit Sandstone and lower MaingitLimestone in the Alegria Anticline, with the aimof acquiring key hydrocarbon reservoir parameterswhich will provide a reliable basis for futuredevelopment plan and oil production.

PDVSA and ENIAgree on Campo Cardon IVDuring a meeting between Venezuela’s state-runPDVSA and Italian firm ENI, the necessaryconditions to develop infrastructure to producegas and condensate from Campo Cardon IV wereagreed upon. The Campo Cardon IV, located inthe Gulf of Venezuela, currently produces at arate of 500 Mmcf/d and 15,000 bpd of condensatein its Phase 1.

PDVSA said that “joint actions defined by bothoil companies will determine the resources tocommit in the development of this project in itsPhase 2, whose construction contracts will besigned after all terms have been established.”

As part of the meeting the two companiesdiscussed strategic elements of the project, tradeaspects related to supply contract, internal marketrequirements and export mechanisms related toinitiatives of energy integration in Latin-Americaand the Caribbean, among other prominent issues.

Well Plugged andAbandoned Offshore ItalyZenith Energy completed the plug andabandonment of a platform well located offshore

Italy. The company provided well engineeringand project management services to RockhopperExploration, successfully completing P&A of theOmbrina Mare development well.

Utilizing its experienced well engineeringpersonnel, well delivery process and HSEQmanagement systems, Zenith Energy completedthe project safely and within AFE, using theAtwood Beacon jack up MODU.

The operation involved re-entry to the existingwell situated on an unmanned platform,bullheading operations, removal of completion,casing and wellhead equipment, and the settingof permanent barrier cement plugs.

Halladale/Speculant ProjectBrought Online by Origin EnergyOrigin Energy revealed that it has brought its100% owned offshore Halladale/Speculantfields in the Otway Basin online. TheHalladale/Speculant project is expected to boostproduction at the Otway Gas Plant by up to 80TJ/d.

The project involved drilling from a land basesite to access offshore reservoirs locationsfive km off the coast in the Otway Basin, thecnstruction of the new 33-km Halladale/Speculantpipeline, connecting the well site to the OtwayGas Plant.

Keppel On Trackto Deliver Armada KrakenKeppel Offshore & Marine reported that it is ontrack to deliver a FPSO vessel to Armada Kraken,a wholly-owned subsidiary of Bumi Armada. Thenaming ceremony of the FPSO, Armada Kraken,was held at Keppel Shipyard.

Armada Kraken is a harsh-environment FPSOunit that is designed for operations in the NorthSea under a stringent regulatory regime. TheFPSO vessel, which has a design life of 25 yearswithout dry-docking, will be deployed to producethe heavy oil (14° API) found in the Kraken fieldin the UK sector of the North Sea.

Keppel Shipyard’s work scope for theArmada Kraken project includes refurbishmentand life extension works, upgrading of livingquarters to accommodate 90 personnel,installation of an internal turret mooring systemas well as the installation and integration of topsideprocess modules.

Armada Kraken is able to handle a peak fluidrate of 460,000 bpd of crude, 20 Mmcf/d of gasand has a storage capacity of 600,000 bpd.

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No Confidence Vote for Essid in TunisiaTunisia’s Prime Minister Habib Essid receiveda vote of no-confidence from the parliament.Essid has not made a lot of progress in seeingTunisia’s financial reforms put into action. Hehas also been unable to create growth or generateemployment opportunities during his two yearsin office.

Out of thosemembers thatvoted, only threevoted to supportEssid and 118voted to oust theprime minister.

It is expected that a new premier will be namedafter negotiations within the ruling coalition offour major parties; this may include a change incabinet with a new prime minister.

Sao Tome & PrincipeVote Carvalho in as PresidentThe citizens of Sao Tome and Principe (STP)have elected former prime minister EvaristoCarvalho in as president during the runoff electionafter incumbent Manuel Pinto da Costa droppedout of the race citing voting irregularities in thefirst round.

Carvalho won 42,058 votes in the August 7 pollaccording to the National Electoral Commission(CEN). Only 46% of voters cast their ballots andof those, nearly 20% turned in blank or invalidballots, said CEN chairman Alberto Pereira.

Libya Round-UpJust when there is some positive news out ofLibya, such as the oil export terminals reopening,the country gets hit with something else. OnAugust 2 a car bomb targeting security forces inBenghazi killed 22 people and wounded anadditional 20.

According to reports from the beleaguered NorthAfrican country, the blast occurred in a residentialarea in the Guwarsha district, the scene of fightingbetween security forces loyal to Libya’s easterngovernment and Islamists.

Earlier that same week, airstrikes ordered by USPresident Barack Obama against Daesh (ISIS)targets in Libya were launched. The airstrikecame at the request of Libya’s Government ofNational Accord (GNA) to help push the militantsfrom the city of Sirte.

Prime Minster Fayez Seraj said on state TV thatthe Presidential Council of the GNA had decided

to “activate” its participation in the internationalcoalition against Daesh and “requested the USto carry out targeted air strikes on Daesh.”

“I want to assure you that these operations arelimited to a specific timetable and do not exceedSirte and its suburbs,” he said, adding thatinternational support on the ground would belimited to technical and logistical help. Theairstrikes targeted a specific tank locationand two militant vehicles that posed a threat toGNA forces.

Egyptians Need to Preparefor Tough Economic MeasuresSpeaking at a young leadership conferenceEgypt’s president, Abdel Fattah al-Sisi, warnedthat tough measures would be needed to turn thecountry’s economy around. Sisi’s words were abid to prepare Egyptians for a series of measures,including the ever unpopular subsidy cut, toweather the country’s current economic storm.“The problem is whether public opinion isprepared to accept the measures which could betough or harsh,” he told young people at theconference. “Egyptians love their country andare able to face hardship but they are too busywith their daily lives and thus must be affordedthe correct information regarding the measures.”

Currently the government is negotiating a$12-billion loan program with the IMF. It hopesto finalize the IMF deal before the end of August.

Nigerian Air Force Bombs MilitantsIn late July Nigerian troops began a build up inthe Niger Delta in preparation to use force againstmilitants if peace talks failed. Most Nigeriangovernment officials maintain that force cannotbe ruled out if negotiations do not pan out.

The Nigerian Air Force (NAF) began an aerialassault against militants in the Arepo area ofOgun state. The air assault started on July 28,with another taking place on July 30. Accordingto reports from residents in the area, the first airassault was carried out by a NAF helicopterwhich released four rockets towards the militants’base located on a large island behind the area.Residents could also hear the sound of heavymachine gun fire. The helicopter operationwas followed by a jet dropping bombs on themilitant camp.

Cote d’Ivoire to HoldReferendum on New ConstitutionCote d’Ivoire’s parliament voted to hold areferendum on a new constitution. The motionto hold a referendum was approved in the National

Assembly with 233 votes in favor and six against.Seven lawmakers abstained.

Among other measures that would be removedfrom the constitution is the controversialnationality clause. The clause states thatpresidential candidates must prove that bothparents are natural born Ivoirians. It also statesthat they must have never claimed citizenship ofanother country.

Through the referendum, President AlassaneOuattara is looking to create the new post ofvice-president to take over and completethe president’s term if he were incapacitated ordied in office. As it stands now, the speaker ofparliament is second in line to the presidency.

Congolese Take to Streets Against KabilaIn the DRC capital of Kinshasa, tens of thousandsof Congolese took to the streets demanding JosephKabila step down as president in November.Kabila has been in power since his father,Laurent-Désiré Kabila, was assassinated in 2001.The younger Kabila has been under extremepressure to step aside and call elections to choosea successor.

Kabila’s government has said logistical problemsare likely to delay the poll and his supportershave suggested a referendum scrapping termlimits so he can run again, as several otherAfrican leadershave done. Heretains a solidlevel of support.His opponents,however, suspectKabila is simplytrying to clingto power.

“We’re sick of Kabila,” Philippe Lukusa anunemployed demonstrator was cited as sayingin a Reuters report. The people in the streetswant opposition leader Etienne Tshisekedi astheir leader. A favorite of the citizens of theDRC, Tshisekedi’s supporters lined thestreets for miles when he returned homeafter almost two years in Belgium formedical treatment.

Ethiopia Denies UN Observer RequestProtests raged in Ethiopia during early August,leading to scores of protesters dying at the handsof security forces. During the anti-governmentprotests in the regions of Oromia and Amhara atleast 90 were killed. In light of the anti-government protesters’ deaths, the UN asked tosend international observers to investigate but

African Politics

Habib Essid

UN

Pho

to #

6467

30

Joseph Kabila

UN

Pho

to #

5627

46

the Horn of Africa nation’s government deniedthe UN’s pleas.

According to Getachew Reda, a governmentspokesman in an Al Jazeera report, the UN wasentitled to its opinion but the government ofEthiopia was responsible for the safety of its ownpeople. Zeid Raad Al Hussein, the UN HighCommissioner for Human Rights, said allegationsof excessive use of force must be investigatedand that his office was in discussions withEthiopian authorities.

Kiir Replaces MacharThere is a good chance that South Sudancould see more fighting betweengovernment troops and rebel troops loyalto Riek Machar. Salva Kiir, South Sudan’spresident, replaced his VP and rival Macharon July 25.

Machar was sworn in as first vice presidentin April in an attempt to end the fightingbetween Kiir’s government troops andMachar’s rebel troops; however, the rivalrybetween the men led to violence eruptingonce again between the two factions.

Machar left Juba with his troops, sayinghe would only return when an internationalbody had set up a buffer force between hisfighters and those supporting Kiir. On hispart the president issued Machar anultimatum demanding that he contact himand return to Juba or face replacement;apparently Machar chose to be replaced.Kiir issued a decree on July 25 “for theappointment of the first vice president ofthe republic of South Sudan” namingGeneral Tabal Deng Gai to the post.

At a meeting held in the Ethiopian capitalof Addis Ababa on August 6, the leadersfrom the Intergovernmental Authority onDevelopment (IGAD) recommended boththat Machar be reinstated and that aregional peacekeeping force should bedeployed to protect civilians as part of aneffort to ensure the full implementationof last year’s peace accord signed byPresident Kiir and Machar.

TICADVI SummitResults in Nairobi DeclarationThe TICADVI summit attracted over 30heads of state from Africa and 100 chiefexecutive officers from Japan representingtop Japanese companies. The summit wasanchored on the theme of “Advancing

Africa’s Sustainable Development Agenda and,“Partnership for Prosperity.”

Following the successful summit, the NairobiDeclaration and its Implementation Plan wereadopted unanimously. The Nairobi Declarationcontains the blueprint for the continuedpartnership between Africa and Japan and willguide the delivery of the agreements reachedduring the talks. It is also designed to contributeto the improvement of infrastructure, clean energy

generation and distribution, modernization ofagriculture and health. The deal is also expectedto usher in greater economic integration of Africaand will also boost empowerment of womenand youth.

Ugandan President Yoweri Museveni and hostPresident Uhuru Kenyatta also had the chanceto meet at Safari Park Hotel in Nairobi followingthe Summit. The two leaders discussed mattersof mutual interest between Uganda and Kenya.


WorleyParsons RSA is powering ahead on theLake Turkana Wind Power Project in MarsabitCounty in northern Kenya, with an average ofone wind turbine erected per day. Thecompany is now more than half-way through the32-month project.

When the Turkana Wind Power Project iscomplete it will be the largest wind farm of itskind in sub-Saharan Africa. Completion isscheduled for mid-2017.

The project is one of Kenya’s top three capexprojects, ultimately aiming to supply 310 MWof reliable, low-cost wind turbine generatorcapacity to the Kenyan national power grid.Tim Gaskell, Power Business Unit Manager forWorleyParsons RSA, says that the LakeTurkana Wind Power Project spans an area of160 sq km and the scope includes 365 windturbines of 850 kW each, an electric gridcollection system and a high voltage substation,upgrades to 210 km of existing road, aninternal site road network and a 160-man self-contained permanent village. The company’sproject management services include overseeingthe total schedule, cost and quality of work aswell as supervising and coordinating thefive main contractors on the project.Although each contractor is taking responsibilityfor its own logistics, WorleyParsons is overseeingthe process in terms of facility inspections,quality checks and testing, and deliveryschedules.

Gaskell says that major delivery milestonesachieved to date include the upgrading of the210 km access road, with the road maintenanceregime fully implemented and runningeffectively, while the internal road infrastructureproviding access to the wind turbines is

approximately 90% complete. Upfront works onthe housing village have also reachedcompletion with the village providing bank,shops, medical and recreational facilities, andaccommodation.

Logistical complications were anticipated asbeing one of the biggest challenges to the projectowing to the high volume of componentsrequiring transportation from the Port ofMombasa to the project site, approximately 1,200km away.

“We are pleased to report that no major logisticalchallenges have arisen regarding transportation,so delivery of the turbines is running on schedule.Construction of the high voltage substation isalso well underway and proceeding according toschedule,” says Gaskell.

“Manufacturing is on schedule across all activitiesrelating to the production of the turbines and

ocean freight is also within schedule with 153turbine sets having arrived in Mombasa by theend of June,” says Gaskell. “A total of 92 turbineshave been completely installed as at 12 July 2016and the third large crane has arrived on site andis currently in operation,” he adds.

There are a total of four cranes being used forthe various stages of the wind turbine erection,with lifting capacities of 90, 200, 250 and 350tonnes. The company says targets to reach aReady for Energization (RFE) status were recentlyreconfirmed with contractors to ensure 120turbines and supporting systems are availableQ4 2016.

The Kenyan government has undertaken tofinance and construct a 428-km transmission lineto the wind farm that will link into the nationalgrid at Nairobi. The project is part of the Kenyangovernment’s drive to generate 5,000 MW ofpower for the country by 2017.

Power & Alternatives

WorleyParsons Powers Ahead at Kenyan Wind Farm

Cennergi Sees TsitsikammaReach Commercial OpsCennergi, the 50/50 JV between ExxaroResources and Tata Power, achieved commercialoperations at its Tsitsikamma Community WindFarm (TCWF) Project in South Africa on August17. The 95-MW project came about whenCennergi was selected as the preferred bidderfor two wind projects under South Africa’ssecond REIPPP.

This is the second of Cennergi’s wind farmprojects to achieve commercial operations in lessthan 30 days. Near the end of July the companyalso brought the 134.4-MW Amakhala Emoyeniwind farm online.

“The commissioning of the Tsitsikamma windfarm fulfils Exxaro’s vision of extending itsposition in the energy value chain beyond coal.In addition, it is a tangible commitment to ourenvironmental stewardship to reduce theimpacts of carbon emissions in the medium-to-long term, while addressing the country’sshort-term electricity needs,” said Exxaro CEOMxolisi Mgojo.

Cennergi CEO Thomas Garner said that thecommissioning was a culmination of many yearsof hard work and dedication from the Cennergiteam in partnership with its stakeholders. He alsopaid tribute to the late Mike Mcebisi Msizi andTsitsikamma Mfengu for bringing the opportunity

to Exxaro in 2009. “It is a privilege to havecommunity partners that will assist Cennergi andits shareholders to write a new narrative fordevelopment in South Africa. We will assist andsupport the community to use this project tofurther determine its ideal future.”

Garner further stated: “It marks the company’sstart in growing its vision to be a leader in cleanerenergy in Africa, thereby creating value for itsstakeholders.”

New Capital Power Plant 30% CompleteFrom Egypt, construction on New Capital’s powerplant is now 30% complete. The power plant,estimated to cost $2 billion, is one of several


planned plants that will boost Egypt’s beleagueredpower generation capacity.

Siemens has supplied the project with the firstround of turbines, with a capacity of 400 MW,and a 4,800-MW electricity generator, Al MalNews reported.

Solar Lighting Northern Mali TownSolar is lighting up northern Mali thanks to aproject recently introduced in the region. Anestimated 1,500 households in Kidal now havepower due to a $50,000 project funded by theU.N, Multidimensional Integrated StabilizationMission in Mali (MINUSMA).

A local NGO, AFORD or Association forTraining, Research and Development, wasselected to implement the six-month long lightingproject. They distributed solar kits to populationsin need to allow people to light their homes.More of the population of Mali will benefit fromsolar power as the government is building twolarge-scale solar power plants to feed into thenational grid.

Liberia LaunchesProgram to Power CountryLiberia’s Ministry of Lands, Mines and Energylaunched a development program aimed athelping Liberia Electricity Corporation (LEC)deliver power to a widespread area. The program,Growing the National Grid Program (GTG), hasbeen able to generate $550 million to date.

The funds will allow for Liberia to bring powerto 164,000 homes during the first phase of thethree-phase project.

In addition, this investment will contributetowards 100 MW of renewable-generatedpower that will be fed directly back into thenational grid.

Nigerian Banks Turn to REAs a way to cut costs at its branches acrossNigeria, Deposit Money Banks (DMB) areturning to renewable energy technologies topower the branches. Some branches have enteredthe pilot stage, using solar panels to power theiroperations.

In addition to solar panels to power the branches,the banks have begun using the renewabletechnology to run their ATMs. According toleadership, Sterling Bank recently commencedthe pilot scheme, while Fidelity Bank has adoptedthe use of UPS’ and inverters to power its ATMsand major operations.

Winch Installs First RPUin Mauritanian VillageThe Mauritanian village of Nimjat saw theinstallation of a Remote Power Unit (RPU) byWinch Energy. The company is an energydeveloper focused on off grid and island gridprojects in Africa using its proprietary technology,the RPU.

The RPU is a containerized hybrid solar PVsolution equipped with battery storage, designedfor power delivery in off-grid locations on a 24-hour, seven days per week basis.

The first RPU in Nimjat produces enoughelectricity to power 20 houses as well as theschool and LED street lighting in the village. Italso powers the mosque and dispensary. Inaddition, the solar power produced will replacesome of the coal and kerosene used for lightingand cooking with cheaper and cleaner energy.

The company, in its blog, said it learned a lot oflessons from the Nimjat. “We learned a hugeamount being here and installing the RPU. Thiswill help us do it quicker and better next time.We want every member of the Winch team toparticipate in at least one installation over thenext 12 months. You cannot truly understandwhat Winch does until you see the socio economicimpact of the RPU in a village which today hasnothing. It not only brings electricity, waterand communications but hope and belief inthe future.”

“The future is looking very bright: our innovativeand profitable technology will forever changethe lives of the people most in need. It is veryclear that bringing access to electricity, waterand communications for remote Africancommunities equates to better and moreprosperous lives. This is a mission, not a joband I feel very privileged to be on this journey,”company CEO Nicholas Wrigley was quoted onthe company website.

The company also entered into a MoU with theMauritanian government’s Ministry of Petroleum,Energy and Mines to provide up to 100 off-gridvillages in Mauritania with electricity, water andWi-Fi connectivity, through its RPUs, mini grids,and smart meters.

Touba Raises Fundsfor Solar Home Systems in SenegalTouba Solar Rama out of Senegal raised €32,000through the crowdfunding platform TRINE.Touba produces different types of solar homesystems to meet the energy needs of rural, off-grid homes and communities.

The funds the company raised on thecrowdfunding platform will allow for Touba topurchase and distribute 185 systems in the regionof Kédougou, southeast Senegal, providing over800 people with solar-powered lighting andphone charging.

“The social and economic impacts of this projecthave proven to be so high that we now aim todeploy over 500 systems throughout the countryby end of its first year,” Touba said.

maxx-solar Academy Expands into KZNmaxx-solar is expanding its training program inSouth Africa. The company already hosts trainingin Johannesburg and Cape Town and now it isexpanding into KwaZulu-Natal (KZN).Theacademy has a new partner in Andre Kauerauffrom Real Solutions who is making it possible tooffer training in the eastern part of South Africa.

The first course will be a Sunrise Intermediatecourse, maxx-solar’s 2-day beginners course. Atthe venue, Kauerauf has a Tesla Powerwallinstalled being one of the cutting edgetechnologies implemented for showcase. HisPowerwall system is the first in the KZN midlandsand available for participants to have a close lookat this technology.

Ethiopia Looks to Lead RE in AfricaEthiopia’s Environment and Climate ChangeMinister, Dr. Shiferaw Teklemariam, said at theopening of the International Conference andExhibition on Renewable Energy that his countrylooks to lead the continent in planning andconstructing large renewable energy projects.

The Minister said by the end of 2020, Ethiopiaplanned to generate about 17,000 MW of energyfrom renewable energy sources.

Dr. Shiferaw also said that there has been a needto collaborate with countries facing similarchallenges in environmental issues and inmeeting energy demands. Public and privatejoint vision to power Africa must be the basis ofall development cooperation, he stressed.According to Dr. Shiferaw, Africa 2063 Agendaand SDG 2030 can be realized by powering Africawith renewable energy sources.

Power & Alternatives

Aggreko Wins Benin Power BidAggreko won a bid to supply 100 MW ofADDGAS-generated power to Benin. The oneyear contract will support the country’s nationalgrid with energy generated from ADDGAS, anadd-on technology, which substitutes a significantportion of diesel fuel with natural gas.

Aggreko’s award of the contract was the result ofits response to the public tender process, Aggreko’sbid was the only one to include an ADDGASoption. The company said in a release that bymaximizing available fuel types, significant savingsover the duration of the contract will be made asa result of the flexible ADDGAS solution.

Aggreko is also installing specialist high voltageequipment as part of its turn-key offering.

Engie to Construct Solar Plant in SenegalEngie is constructing a solar power plant in thesemi-desert region of Santhiou-Mekhe, Senegal.The plant, which will use PV technology andhave a capacity of 30 MW, will be implementedby Engie’s solar branch Solairedirect.

The project will consist of 92,000 PV modulesand be manufactured and installed by OptimumTracker. The construction of the facility, expectedto be the largest in the country, will start in Q3.The energy produced will be sold to the NationalElectricity Company of Senegal (SENELEC).

The establishment of this center is the result ofa public private partnership between thesovereign Strategic Investment Fund (FONSIS)and PROPARCO, a subsidiary of the FrenchDevelopment Agency specialized in private sectorfinancing.

Niger Awarded AfDB GrantNiger was awarded a $994,270 grant from theAfrican Development Bank-hosted SustainableEnergy Fund for Africa (SEFA) to promote greenmini-grids (GMGs). The project is aimed atsupporting the Niger government’s efforts toprovide at least 15% rural access to energythrough off-grid and mini-grid solutions by 2020.The program is expected to contribute to at least$10 million in funding raised for renewableenergy projects by 2018.

“Niger has high and reliable solar irradiationintensity,” stated Kurt Lonsway, AfDB’sManager for Environment and Climate Change,“and a significant opportunity for GMGs to playa major role in increasing electricity access,which is one of the lowest in the region,”he added.

Stortemelk HydropowerPlant Starts Commercial OperationsRenewable Energy Holdings Ltd. out of SouthAfrica saw commercial operations of its 4.5-MWStortemelk hydropower plant commence. The

$14.3-million project, located on the Ash River,uses the outflow from the Lesotho HighlandsWater Project.

Stortemelk’s civil works were performed byEigenbau Pty Ltd., with Aurecon South AfricaPty Ltd. serving as contractor, and AndritzHydro and Indar Electrical SL providingequipment. Work on the project took 18 monthsto complete.

The small hydro plant was recognized by SouthAfrica’s REIPPP and will be operated by REHOperations & Maintenance Pty Ltd.

Egypt to See FirstSolar Power Plant Start UpEgypt will see the start of production at its firstsolar power plant before the end of Septemberaccording to reports. The power produced fromthe solar farm will be sold to an Egyptian beverageand yogurt company, Juhayna.

The LE14 million solar farm was financedthrough the Social Fund for Development andinternal investments from the company itself.

As the first solar energy producing power plantin Egypt, Karm Solar’s facility will save 600,000liters of diesel each year, and reduce the country’scarbon footprint by 1,620t annually, reports fromlocal media state.


Sour

ce: B

aker

Hug

hes

Inte

rnat

iona

l

*Data not available

Country

ALGERIAANGOLABENINCAMEROONCHADCONGOCONGO, DRCCOTE D’IVOIREEGYPTEQUATORIAL GUINEAETHIOPIAGABONGHANAKENYALIBERIALIBYAMAURITANIAMOROCCOMOZAMBIQUENAMIBIANIGERIASENEGALSIERRA LEONESOUTH AFRICASUDAN*

TANZANIATOGOTUNISIAUGANDA

African Rig Count

World Rig Count

Land OffshoreCountry

Total Land Offshore Total Land Offshore Total

Variance From

Last Month

July 2016 July 2015June 2016

1535270

33998

42992

1,233

3342125188202

248

1869482

39018644994

1,481

83-514

323174

1789187

38918241763

1,407

2596069

342124835179

1,868

31310894

391212866183

2,167

LATIN AMERICAEUROPEAFRICAMIDDLE EAST*

ASIA PACIFICUNITED STATESCANADAWOLRDWIDE Total

*The Middle East rig count excludes rigs in Syria for January 2014 and December 2013.

1475268

34196

39663

1,163

3139194886210

244

Facts and Figures

AfricaAlgeriaAngolaCameroonChadCongo (Brazzaville)Congo (Kinshasa)Cote d’Ivoire (Ivory Coast)EgyptEquatorial GuineaGabonGhanaLibyaMauritaniaMoroccoNiger NigeriaSouth AfricaSudan and South SudanTunisia So

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ourc

es in

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ing

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and

OPE

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Country

Africa Productionof Crude Oil

(including Lease Condensate, Thousand Barrels/Day)

Sour

ce: B

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Hug

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Production of Natural GasPlant Liquids

(Thousand Barrels/Day)

AlgeriaAngolaCongo (Brazzaville)EgyptEquatorial GuineaLibyaSouth AfricaTunisiaTotal Africa

Country

Sour

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ourc

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*Data not available

6675.510741788

7599

2352032

64023522033

3456

0.520

16373

15558

April

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3095517

191202854

629

April

2016

559010201

300011

110100006101

N/A*0000

April2016

559010102

280011

11010100610100000

May2016

599000202

260011

11010110500000000

June2016

5448254988314

299

6411.510801773

7498

2372031

64123522041

2966

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14243

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May

3085517

193202854

630

May

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July2016

6562.510851773

7598

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3326

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15355

June

3105517

195192954

634

June

555453525150494847464544434241403938373635


Aug 8Henry HubNew York







2.852.77

2.702.60

2.752.65

2.672.61

2.752.79

2.892.88

2.972.89

* Contract 2 Dollars per BTU

Dat

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Americas¹CanadaChileMexicoUnited StatesAsia Oceania²AustraliaOthersEurope³NorwayUKOthersTotal OECDTotal Non OECD

Country

Sour

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Mar

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18.783.740.012.51

12.520.420.340.083.311.821.040.45

22.5128.86

June

18.93.790.012.49

12.620.410.330.083.441.941.050.45

22.7628.63

Q2 2016

¹As of the August 2012 OMR, includes Chile²As of the August 2012 OMR, includes Estonia and Slovenia.³ As of the August 2012 OMR, includes Israel.

World Oil Production(million barrels per day)

Aug 8OPEC BasketBrent CrudeNymex







$41.1043.2443.76

40.6244.2344.23

45.0348.2747.22

46.8249.3949.11

45.3448.7048.10

45.2849.2547.33

45.4449.6646.98

OPEC Basket Brent Crude Nymex

Oil Prices

Gas PricesSpot Price Futures Price*

2.50

3.25

2.25

2.75

Aug

16

Aug

19

Aug

25

Aug

29

Aug

23

2016

3.00

Aug

8

Aug

11

OPEC Oil Production(Thousand Barrels/Day*)

* Based on secondary sources

AlgeriaAngolaEcuadorGabonIndonesiaIran, I.R.IraqKuwaitLibyaNigeriaQatarSaudi ArabiaUAEVenezuelaTOTAL OPECOPEC exluding Iraq

Country

Sour

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PEC

2016

10801773549215740

356242812740296

1424659

1024128262188

3236128080

May

10741788547215731

345143542640345

1637669

1012527802298

3243928085

April

10851773550214740

364442172800332

1523662

1030829142095

3285828641

June

18.553.530.012.48

12.660.430.320.083.431.961.010.46

22.4128.79

May

Aug

16

Aug

19

Aug

25

Aug

29

Aug

23

Aug

8

Aug

11

Aug

16

Aug

19

Aug

25

Aug

29

Aug

23

Aug

8

Aug

11

Aug

16

Aug

19

Aug

25

Aug

29

Aug

23

Aug

8

Aug

11

Aug

16

Aug

19

Aug

25

Aug

29

Aug

23

Aug

8

Aug

11


Conferences

October 20163-5 Cape Town, South Africa www.energynet.co.ukThe South Africa Gas Options

11-13 Nouakchott, Mauritania www.mauritanides-mr.com4th Mauritanian Mining and Oil and GasConference & Exhibition (MAURITANIDES 2016)

November 2016

22-24 Amman, Jordan www.osh-forum.comThe 1st International Jordanian Forum For OccupationalSafety and Health 2016

December 2016

6-7 Abu Dhabi, UAE www.opex.bizOpEx MENA 2016 – Operational Excellencein Oil, Gas & Petrochemicals

June 20176-8 Lagos, Nigeria www.offshorewestafrica.comOffshore West Africa

February 2017

14-16 Cairo, Egypt www.egyptpetroleumshow.comEGYPS 2017

20-21 Dubai, UAE www.europetro.comIGTC 2017 – 8th International Gas Technology Conference

21-23 Dubai, UAE www.me-tech.bizME-TECH 2017 – 7th Middle East Technology Forumfor Refining & Petrochemicals

March 20176-8 Abu Dhabi, UAE www.pvpcexpo.aePVPC Expo

8 Abu Dhabi, UAE www.greenforum.aeGreen Forum – Green Solutions for the Downstream Industry

12-14 London, UK www.amiplastics.comOil & Gas Non-Metallics 2016

12-13 London, UK www.gas-to-liquids.co.ukGas to Liquids

24-26 Lagos, Nigeria www.salvoglobal.comPumps Reliability & Efficiency

26-27 Manama, Bahrain www.bbtc-mena.bizBBTC Middle East & Africa 2016 –Bottom of the Barrel Technology Conference

30-31 Doha, Qatar www.gulfsafetyforum.comGSF 2016 – Gulf Safety Forum

31- Nov 4 Cape Town, South Africa www.africa-oilweek.com23rd Africa Oil Week 2016

21-22 London, UK www.smi-online.co.ukProject Financing in Oil & Gas

15-17 Nairobi, Kenya www.eaogs.comThe 4th East Africa Oil and Gas Summit & Exhibition (EAOGS)

17-18 Rotterdam, The Netherlands www.gssummit.orgInternational Green Shipping Summit

24 Maputo, Mozambique www.africaninfex.comInfra-Gas Projects Mozambique 2016

24-26 Dubai, UAE www.argusmedia.com7th Argus Middle East Gulf & Indian Ocean Oil ProductsConference (AMGIO 2016)

14-16 Dubai, UAE www.cmtevents.com11th LPGTrade Summit 2016

21-23 Dar es Salaam, Tanzania www.africa.getenergyevent.comGetenergy VTEC Africa 2016

22-24 Abuja, Nigeria www.cwcpnc.comThe 6th Practical Nigerian Content Forum (PNC)

23-24 Dakar, Senegal www.msgbc.theenergyexchange.co.uk1st Annual MSGBC Basin Summit and Exhibition

28-29 Nice, France www.gassummit.orgInternational Gas Summit

30-Dec 2 Maputo, Mozambique www.mozambique-gas-summit.comMozambique Gas Summit & Exhibition

5-7 Abu Dhabi, UAE www.mena.getenergyevent.comGetenergy VTEC MENA 2016

January 201726-27 Milan, Italy www.nas.theenergyexchange.co.ukNorth Africa Summit

26-27 Milan, Italy www.nads.wraconferences.comNorth Africa Downstream Summit

13-14 London, UK www.floating-lng.co.ukFloating LNG 2017

23-24 Texas, US lng-usa.comLNG Summit United States

Word Search

BONUS

Ironically, the is partially due to Bongo’s desire to be seen as a legitimate leader. (Oil Security)

What matters is one’s satisfaction and ability to impact positively on the country’s socio-economic aspirations. (Women in Energy)

The Oil-in-Water Analyzer will also be particularly suited to challenging fields that host separation from different tie-backs withvarious oil types in the same produced water. (New Products)

Answers listed on page 60

(Find the answers in the magazine and then find them within the Puzzle)

Fayez Seraj

Uganda

Metering

Libya

PFG

Sirte

Gabon

CNOOC

Polarcus

Albertine Graben

Ramform

Cennergi

Sariel Etwire

Ali Bongo

Murzuq Basin

Sperry Drilling

Gas to Power

Frank Tumwebaze

O T X M E T E R I N G N P C C E M S QD D C U O Z Q T J A H F N V V N D B FR E W O P O T S A G G O H M C M Q N RS Q F A Z I R J P P O L A R C U S O AP Z N B L K A T J C K A N O S V I B NE W I S S B L L M O W B F X K V X A KR N S I S E E P I G R E N N E C U G TR S A S B I R R R B W E W P E Z F C UY U B I T S R I T I O J R X T Z B L MD U Q R M I J T W I I N I H R Y O F WR T U C R B C O E T N A G N P W R Q EI K Z J O R C Y B T E E D O J M F Z BL I R K F A S R F A P L G N R P J D AL W U F M A S D U J Y O E R A T K N ZI R M Q A V A X N K P B T I A G U Y EN A J A R E S Z E Y A F I K R B U C DG Q T Y N I S Z P N Z N K L S A E M QH Z M A X V Q O M Z I Y C V G E S N TL Q I W O I Q Q E C Q Q B S Q D D V R


Position: General Manager – Oil & GasLocation: Various locations in the SSA RegionPosition Description: CA Oïl and Gas are currently seeking General Manager with experience in the Oilfield Services industry.Experience & Education: Minimum 15 years’ varied experience within the Oilfield Services sector.

Contact: Zade-Leo Stafford, CA Oil & Gas Tel: +27 21 659 9200 Email: [email protected]

CA Oil & Gas

Position: HR ManagerLocation: Pemba, MozambiquePosition Description: CA Oïl and Gas arecurrently seeking an HR Manager to bebased in Pemba, Mozambique.Experience & Education: Relevantqualification. Minimum 5 – 8 years’experience

Contact: Nico Viljoen, CA Oil & GasTel: +27 21 659 9200Email: [email protected]

CA Oil & Gas

Position: Electrical Technician –Luanda, AngolaLocation: Tete, MozambiquePosition Description: CA Oïl and Gas arecurrently seeking experienced ElectricalTechnicians to be based in Luanda, AngolaExperience & Education: Minimum 6years’ varied experience within Electricalsector in Angola.

CA Oil & Gas

Contact: Zade-Leo Stafford, CA Oil & GasTel: +27 21 659 9200 Email: [email protected]

Position: Project DirectorLocation: Cape Town, South AfricaPosition Description: CA Oil & Gas arecurrently seeking an experienced ProjectDirector to be based in Cape Town, SouthAfrica.Experience & Education: 10 years’experience needed with good knowledge inthe upstream & downstream industry.

CA Oil & Gas

Contact: Zade-Leo Stafford, CA Oil & GasTel: +27 21 659 9200Email: [email protected]

Recruitment

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