Page 22 - AfrOil Week 01 2021

AfrOil NEWS IN BRIEF AfrOil

the Gas Off-taker pursuant to the HoT has pro-
gressed well over recent months; however, given
the inherent linkage between the Project Con-
tract envisaged to be entered into with Italflluid
and the suite of definitive agreements planned to
be entered into with the Gas Off-taker, the Com-
pany has agreed to extend the period of Exclu-
sivity with the Gas Off-taker under the HoT to
March 31, 2021, coincident with the period of
exclusivity now granted to Italfluid. Synchronis-
ing the timing of these respective negotiations
provides a clearer and de-risked pathway to tak-
United holds a 22% working interest in the Company’s wholly owned subsidiary, has ing a final investment decision together with the
Licence, which is operated by Kuwait Energy entered into a letter of exclusivity (LoE) with Concession joint venture partners on or before
Egypt. Italfluid Geoenergy, pursuant to which the par- March 31, 2021.
The ASH gas pipeline, which links the ASH ties have agreed to use their reasonable endeav- Sound Energy, December 23 2020
Field to the existing gas processing facilities at ours to negotiate and enter into a binding project
El Salmiya, within the Abu Sennan Licence, was contract which will on entry commit Italfluid to
completed safely, on time and under budget design, construct, commission, operate, main- SERVICES
in December and was successfully brought tain and let to SEMEL a mLNG Plant which can
onstream on 27th December 2020. Over the last produce LNG. The mLNG Plant, which will also BW Offshore signs contract
two days, the pipeline has delivered an average of treat and process raw gas from the Phase 1 Devel-
5.45 mcf per day of gas (1,090 boepd) on a gross opment prior to liquefaction, is a substantial part extension agreement for
basis, equating to an additional 1.2 mcf per day of the surface facilities required to be built and
(240 boepd) net to United’s working interest). operated as part of the Phase 1 Development. Abo FPSO
These initial flow rates are in line with United’s Under the LoE, the Group has granted a
expectations. period of exclusivity to Italfluid until 31 March BW Offshore has signed an extension agreement
The delivery of the ASH Gas pipeline has not 2021 during which time the parties have agreed for the Abo FPSO with Nigerian Agip Explora-
only increased the environmental efficiency of to use their reasonable endeavours to seek to tion, a subsidiary of Eni, until end Q4-2021, with
the Abu Sennan Licence but has also increased conclude and enter into the Project Contract on options until Q2-2023.
gas recovery rates across the licence. the basis of key commercial terms set out under The Abo FPSO has been operating at the Abo
Further, with the gas pipeline online ahead the LoE and as summarised below: The mLNG field in Nigeria since 2003.
of the completion of the ASH-3 well, any gas Plant shall be designed, constructed, commis- BW Offshore, January 04 2021
produced from that well can now be monetised sioned, operated and maintained by Italfluid for
more efficiently. SEMEL in consideration for the Initial Payments
United CEO Brian Larkin commented: “Since and the Daily Rental Payments; The term of the INVESTMENT
United entered the Abu Sennan licence, the joint Project Contract shall be five (5) years; An initial
venture partners have made excellent progress in Payment of $5mn due from SEMEL to Italfluid Panoro Energy announces
increasing production, not just through drilling within 30 days of issuance of the notice to pro-
activity but also through low capital expendi- ceed with the Phase 1 Development and $2mn extension of long stop date
ture on infrastructure development. We look due from SEMEL to Italfluid within 30 days of
forward to further progress in 2021 with the notification from the SEMEL to Italfluid of the for sale of Aje
recommencement of drilling activities, starting successful commissioning (including produc-
with the ASH-3 development well.” tion build-up) of the mLNG Plant; During each Panoro Energy is pleased to announce that
United Oil & Gas, December 30 2020 day of each contract year in which Italfluid has PetroNor E&P and Panoro have reached an
evidenced to the satisfaction of SEMEL, that the agreement to extend the completion long stop
mLNG Plant can deliver a guaranteed daily vol- date for the previously announced sale of its
LNG ume, a daily rental payment of $36,000 per day fully-owned subsidiaries that hold 100% of the
shall be payable to Italfluid from SEMEL. shares in Pan Petroleum Aje. The original long
Sound Energy enters into 2020, that it had entered into a heads of terms by which authorisation of the Nigerian Depart-
The Company had announced on June 29, stop date was December 31, 2020, being the date
letter of exclusivity for (HoT) with a Moroccan conglomerate (the Gas ment of Petroleum Resources (DPR) and the
Off-taker) pursuant to which the Company had consent of the Nigerian Minister of Petroleum
Tendrara Phase 1 agreed to commence exclusive discussions with Resources were required to have been received.
The amended long stop date to complete the
the Gas Off-taker in order to enter into agree-
Sound Energy has provided an update in rela- ments for both the purchase of LNG to be pro- Transaction is now June 30, 2021.
tion to the Company’s proposed micro-LNG duced from the Phase 1 Development, as well The regulatory approval process in Nige-
(mLNG) Phase 1 Development project for the as the partial financing thereof. Under the HoT, ria is well underway but has been delayed by
TE-5 Horst at the Tendrara Production Conces- Exclusivity was granted to the Gas Off-taker the COVID 19 pandemic. The process is in
sion, onshore Morocco. until December 31, 2020. an advanced stage and is expected to resume
The Company has announced that Sound The Company is pleased to announce that following the holiday period and to complete
Energy Morocco East Ltd (SEMEL), the negotiation of the definitive agreements with afterward.

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