Saturday, 6 December 2014

Sub-Saharan Africa - newsflow update



Gabon Deepwater - Leopard discovery

  • Leopard-1 was drilled on licence BCD10
  • Shell 75%*, CNOOC 25%
  • Encountered substantial gas column with 200m net gas pay
  • Further appraisal required
  • FLNG? 3-4 tcf may be required, although economics of sales into Europe are marginal
  • Government is also keen to grow domestic gas market

Congo Offshore - Eni/NewAge - follow up discovery in Marine XII
  • Minsala Marine discovery
  • Estimated 1bnboe in place, of which 80% oil
  • In same shallow water block as the Litchendjili and Nene Marine fields, both of which are currently undergoing development

Angola - first discovery in Kwanza Basin
  • Pre-salt offshore Kwanza Basin - oil discovery made by Repsol
  • Will evaluate commerciality of the Locosso oil field
  • Located in Block 22, immediately to south of Cobalt's Block 21 which contains the play opening Cameia field
  • Given remote location and water depth, Wood Mackenzie estimates will require 300mmbbl to be commercial on standalone basis

Liberia, Cote d'Ivoire - Anadarko's non-commercial wells

Nigeria - NNPC pre-empts sale of OML25
  • NNPC has pre-empted on the sale of OML25
  • Post transaction, NNPC will own 100% and likely transfer the interest to NPDC
  • NPDC's portfolio is already overstretched and future investment will be heavily constrained
  • The winning bidder of the Shell, Eni, Total process was Crestar Integrated Natural Resources Limited
  • It is believed that the pre-emption, a decision made by the Minster of Energy, is due to Crestar's Chairman being  Osten Olorunsola
    • The Minister of Energy had fired Osten Olorunsola as Director of Petroleum Resources in June 2013
  • http://africaoilgasreport.com/2014/11/farm-in-farm-out/nnpc-in-desperate-search-for-funds-to-pay-for-oml-25/
South Sudan - fighting likely to intensify around fields
  • Government and rebels now re-arming following end of rainy season
  • Sudan is providing South Sudanese Machar-led rebels with weapons and intelligence
  • Rebels likely to set-up bases where they can attack oil fields
  • Local self defence militia are guarding fields bolstered by Chinese peacekeepers
    • Should prevent rebels gaining control of fields, but fighting likely to intensify
East African export pipeline
  • World bank has pledged USD600mm funding towards Ugandan/Kenyan export pipeline
  • Total cost estimated to be >USD4bn
  • Project still remains in early stages - commercial structure, construction, ownership and operations all yet to be determined
  • FEED contracts expected to be awarded end of 2014

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