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AfrOil PERFORMANCE AfrOil

He also argued that TNOG could resolve this said in a statement at the time that these two
problem by taking “very simple” measures such companies had sold equity stakes of 10% and
as repairing broken equipment and stepping up 5% respectively in OML 17 to TNOG.
drilling campaigns. “To get to 100,000 barrels OML 17 lies in the eastern Niger River Delta
[per day], you have to bring in the drilling rigs,” and is currently yielding around 27,000 barrels
he remarked. of oil equivalent per day (boepd). It holds 1.2bn
Additionally, he stated that TNOG intended barrels of oil equivalent in proven and probable
to use associated gas from OML 17 as feedstock (2P) reserves, and further exploration may raise
for three thermal power plants (TPPs) owned that figure by another 1bn boe. ™
by Transcorp whenever possible. This will allow
the TPPs, which have a combined generating
capacity of 2,000 MW, to serve as part of a wider
network of assets, he said. “The whole idea is
to build that integrated energy system,” he told
Bloomberg.
TNOG Oil & Gas recently completed the
acquisition of its stake in OML 17 with a com-
bination of deals worth a total of $1.1bn. The
largest of these deals involved the acquisition of
SPDC’s 30% stake for $533mn. (The company
said in a statement last month that it had paid
SPDC the sum of $453mn at the closing of the
transaction and would pay the balance of $80mn
“over an agreed period.”)
Two other transactions involved other share-
holders in OML 17 – namely, Total E&P Nige-
ria, a subsidiary of Total (France), and Nigerian
Agip Oil Co., a subsidiary of Eni (Italy). Shell OML 17 is in the eastern Niger River Delta (Image: Heritage Energy)

SNH: Cameroon LNG reached

five new countries in 2020

CAMEROON CAMEROON’S only LNG plant succeeded in It is anchored near the Cameroonian port of
expanding its customer base last year, according Kribi and has been working since May 2018.
to Société Nationale des Hydrocarbures (SNH), The FLNG vessel liquefies gas from the San-
the national oil company (NOC). aga field, which is being developed by Perenco
SNH reported last week that the plant, (UK/France) and SNH. The partners pipe gas
which consists of the Hilli Episeyo floating LNG from the field to an onshore treatment facility
(FLNG) unit, had added several new countries for processing before delivering it to the FLNG
to its list of destinations. It explained that five unit.
countries had received their first-ever shipments The Hilli Episeyo is capable of turning out
of Cameroonian LNG in 2020 – namely Kuwait, 1.2mn tonnes per year from one of its two pro-
Pakistan, South Korea, Thailand and Turkey. duction trains. According to previous reports,
The NOC did not say exactly how many Golar LNG has held talks with Perenco and
cargoes each of these five states had received, SNH on the possibility of activating the Hilli
though it did note that the shipments to Kuwait, Episeyo’s second production train, a move that
South Korea and Turkey had been carried out would double the FLNG’s capacity to 2.4mn tpy.
in the first quarter of last year. It also stated that The vessel began its life as one of Golar LNG’s
the Hilli Epeseyo FLNG vessel had loaded a 125,000-cubic metre tankers. It was converted
total of 16 cargoes with a combined volume of to an FLNG unit at the Keppel shipyards in Sin-
14.198 trillion Btu between January 1, 2020, and gapore at a cost of $1.2bn and is now operating
December 18, 2020. under a tolling agreement.
Prior to last year, most of the LNG exported The FLNG generates about $40mn per quar-
from Cameroon went to China, India and ter in tolling revenues, with Golar LNG receiv-
Taiwan. ing 50% of the total and its NASDAQ-listed
The Hilli Episeyo, owned by Bermuda-regis- affiliate Golar LNG Partners getting the other
tered Golar LNG, is the first vessel in the world 50%, in line with the terms of a drop-down deal
to be converted to a floating LNG (FLNG) unit. finalised in 2018. ™

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