Nigeria must stop using oil as a ‘cash cow’ to buffer economy
Nigeria must stop using its rich oil resources as a 'cash cow' if it is to reform the nation's politics and economy, according to a leading expert.
Africa
Shell Nigeria launches production from Bonga Phase 3 project
Oil major Shell said it has launched the start-up of production from the Bonga Phase 3 project in Nigeria. The Bonga Phase 3 is an expansion of the Bonga Main development, with peak production expected to be some 50,000 barrels of oil and 150 million standard cubic feet of gas per day. The field has been producing oil and gas since 2005 and was Nigeria's first deepwater development in depths more than 1,000 metres.
Former Nigerian oil minister arrested
Nigeria’s former oil minister was arrested in London on Friday, according to reports. Diezani Alison Madueke held the role for five years under the presidency of former leader Goodluck Jonathan. The UK National Crime Agency (NCA) said five people had been arrested across London as part of an investigation into suspected bribery and money laundering offences. It is understood Madueke was granted bail a few hours after being arrested.
Opinion: Oil will make or break the Buhari Presidency in Nigeria
President Muhammadu Buhari’s decision to control Nigeria’s oil industry emphasises the significance that the sector has for the country.
Exclusive: Dolphin Drilling in consultation over jobs across its offshore fleet
Dolphin Drilling is in consultation with staff over potential job reductions across its offshore fleet. The company’s offshore activities, which are controlled from offices in Scotland, Norway and Mozambique, have confirmed the move. A spokeswoman for Dolphin Drilling said talks were being carried out with those likely to be affected.
East Libya to punish oil companies working with rival government
Libya’s internationally recognized government plans to boost oil production five-fold and will punish companies working with a rival cabinet striving to control the divided North African nation’s crude deposits. Oil companies operating in Libya or seeking to do so must register with the National Oil Corp. controlled by the elected government based in the country’s eastern region, Deputy Prime Minister Abdussalam Elbadri said Wednesday at a conference in Valletta, Malta. The NOC will refuse to renew the contracts of any companies that don’t support the elected government, NOC Chairman Nagi Elmagrabi said in an interview in Valletta. The country plans to boost crude output to 2 million barrels a day by 2020, he said.
Aker Solutions strengthens senior team with appointment
Aker Solution has strengthened its team with the appointment of a new regional president for the UK and Africa. David Clark will oversee expansion and support operations in the key markets using more than 30 years of experience in the oilfield services. Clark most recently worked as vice president of production facilities for Schlumberger as well as positions earlier in his career at Wood Group and Technip.
Foreign oil drillers sour on regulation-happy Angola, Total says
Angola risks losing investment from foreign oil companies as costly government regulations and low world prices make the country, vying to be Africa’s largest producer, less attractive to operate in, an industry executive said. A series of measures introduced by Angola’s government in recent years has pushed production costs up as much as $500 million annually, said Jean-Michel Lavergne, general manager for Total E&P Angola, the country’s biggest driller. Oil companies want talks with the Angolan government to press home the threat posed by regulatory costs, Lavergne told reporters on Friday at a monthly business forum in Luanda.
Kenya Power Signs Geothermal, Hydropower Deals for 76 Megawatts
Kenya Power & Lighting Ltd., the East African nation’s sole electricity distributor, will sign two purchase agreements for 76 megawatts of geothermal energy and hydropower. The utility will buy 70 megawatts from Akiira Geothermal Ltd., a project developer, and Marine Power Generation Ltd., its development partner, it said. The distributor will also purchase 6 megawatts from Kleen Energy, a local hydropower producer.
UK probe of Soma focuses on payments to Somali officials
Searching for oil off the coast of one of the world’s most dangerous and corrupt countries was always going to be difficult for Soma Oil and Gas Ltd. Now its work in Somalia is being scrutinized by the UK’s Serious Fraud Office. On July 31, the SFO raided Soma’s London office as part of its investigation into almost $500,000 worth of payments to Somali officials. Soma, funded by Russian billionaire Alexander Djaparidze and headed by former UK Conservative Party leader Michael Howard, says it’s done nothing wrong and is cooperating with the inquiry. Soma has “always conducted its business in a completely lawful and ethical manner” in trying to develop the country’s first oil reserves, it said in a statement Aug. 3. The SFO has confirmed “no suspicion whatsoever attaches to Lord Howard,” Soma said AugUST 1. Djaparidze didn’t respond to Bloomberg requests seeking comment. Soma began working more than two years ago in Somalia, where al-Qaeda-linked militants have waged an insurgency since 2006. The country hasn’t had a functioning central administration since civil war erupted almost a quarter of a century ago. It also ranks alongside North Korea as the world’s most graft-ridden nation, according to Transparency International, the Berlin-based watchdog.
New Suez Canal opens – GNS supplies new charts
Egypt opens the New Suez Canal today and maritime services group, Global Navigation Solutions (GNS), has been named as supplier of all new charts for the waterway.
Global SCS opens new office in Dubai
Oil service company Global SCS has undertaken further expansion.
Oil producer Afren’s board to put company into administration
Oil producer Afren said its board has decided to put the company into administration after failing to secure support for a refinancing and restructuring plan. Afren, whose shares have been suspended since July 15, said talks with bondholders, banks and its partners were scuppered after the London-headquartered company cut its production forecast for the year.
Rosneft and Exxon pair up even as US-Russia relations remain tense
Russia’s largest oil producer and Exxon have submitted joint bids in Mozambique’s fifth licensing round to explore the Angoche Basin and Zambezi Delta.
MX Oil one step closer to first oil in Nigeria
MX Oil is one step closer to securing first oil from its Nigerian prospect.
Global Petroleum pulls out of Mozambique permit
Global Petroleum has chosen to withdraw from Juan De Nova Permit in the Mozambique Channel. The decision was taken as a result of slow progress in approval of an application for an extension two years ago. The company said there had been “no visibility” as to when a formal decision would be taken.
Bowleven drills in Cameroon
Bowleven, the Africa-focused oil and gas exploration group, has confirmed the first of a two-well exploration programme in Cameroon, has been drilled to its planned total depth and logged.
Golar commits to third FLNG vessel conversion
Golar LNG is to develop a third floating liquefaction facility (FLNG), with the conversion of the liquid natural gas carrier Gandria.
Total starts up production from Angolan block
Total has started production from a new development on its deep offshore operated Block 17 off the coast of Angola. Dalia Phase 1A is expected to develop additional reserves of 51Mb (million barrels) and will help contribute 30,000 barrels per day to the block’s production. Arnaud Breuillac, president of exploration and production, said: “The Dalia FPSO came on stream nearly nine years ago and with the addition of Phase 1A will still produce around 200,000 b/d. It is the latest milestone in the success story of Block 17, Total’s most prolific license with cumulative production reaching two billion barrels in May 2015.
Analysis: Reforms needed in Nigeria or oil production could falter
Oil production in Nigeria is forecast to falter due to underinvestment according to analysis from research and consulting firm GlobalData. Despite more than 37 billion barrels remaining in proven reserves the country faces challenges with need for reform and transparency to reverse this trend. However Young Okunna, an upstream analyst covering Sub-Saharan Africa, said Nigeria’s gas sector could be rejuvenated by capitalising on the chance to rebuild investor confidence following the election of President Muhammadu Buhari.
MX Oil chief exec sees promise from new Nigerian asset despite country’s challenges
The boss of MX Oil said the company had secured a share in a “world-class” asset after investing in the OML 113 licence offshore Nigeria. Stefan Olivier said he did not see any challenges from acquiring a 5% share in the near-term producing licence, which includes the Aje Field. The asset has already undergone flow tests with production expected from January 2016.
Savannah Petroleum raises $36million from share placing
Savannah Petroleum has raised $36million after placing more than 61million shares at a value of 38 pence each. The Niger focused oil and gas firm said an estimated 17,136,000 of these placing shares will be subscribed directly within the company. The placing shares represent 47% of the company’s existing ordinary share capital and will be issued in two tranches.
SEPLAT resumes asset negotiations in Nigeria
Negotiations by SEPLAT Petroleum Development to acquire an asset in Nigeria which faced delays has finally restarted. The company said it had reached an agreement to release funds from an account which had been set up with a consortium in a bid to make a potential acquisition. It had been created to look for opportunities to buy assets from oil and gas companies operating in the region. In the latest agreement, SEPLAT has said it will release $408million of the total $453million which is being held in the account.
Independent Resources strikes deal to carry out Tunisia survey work
Independent Resources has struck an exclusive agreement with Scotforth Limited to carry out a remote sensing hydrocarbon survey at its Ksar Hadada permit in Tunisia. The survey is expected to be completed within six weeks.
Ugandan police block politicians from presidential campaigns
Ugandan police blocked opposition leader Kizza Besigye from leaving his home and arrested former Prime Minister Amama Mbabazi as they prepared to start their presidential election campaigns, their parties said. Besigye, who lost three previous elections to President Yoweri Museveni, was detained after attempting to leave his home to attend a rally to campaign as a candidate for the Forum for Democratic Change, his driver Asuman Semakula said by phone. Besigye, 59, is competing against party President Mugisha Muntu to run in the 2016 poll.