Page 8 - AfrOil Week 19 2022

AfrOil INVESTMENT AfrOil

The UK-based company had hoped to use the
proceeds of this transaction to cover the costs of
drilling NJOM-3.
Now, though, Tower has determined that the
farm-out deal is no longer necessary, the state-
ment said. This is partly because MINMIDT has
agreed, with the support of Cameroon’s Presi-
dent Paul Biya, to push the expiration date of the
production-sharing contract (PSC) covering
the Thali block back to May 11, 2023 and partly
because other financing options have emerged,
the statement explained.
“In particular, the company has been in
discussion with local banks in Cameroon, and
the company now believes that debt financing
may be available to cover a significant portion
of the well cost,” Tower said. “This should allow
a restructured transaction [that] would require
less of the equity in the project to be given up in
return for the well funding, to the advantage of NJOM-3 will be drilled in thr fourth quarter of the year (Image: Tower Resources)
all parties.”
Under these circumstances, the company transaction sometime in the third quarter of the
has opted not to continue seeking approval for year, the statement said.
the farm-out agreement in its current form. The In the meantime, Tower is also on track to
restructured transaction will not require gov- sign a letter of intent (LoI) in the near future with
ernment approval, but Tower will continue talks Shelf Drilling (UAE) for the use of the Trident
with the banks with which it has been negotiat- VIII jack-up rig to drill the NJOM-3 well. The
ing, as well as with Beluga and other interested company expects to spud, drill and test the well
parties, with the aim of concluding a revised in the fourth quarter of 2022. ™

PERFORMANCE
Modular refineries struggling for supplies

NIGERIA NIGERIA’S modular refiners are struggling to
keep their facilities running, amid accusations
that the state oil firm is failing to provide their
meagre feedstock requirements as it maintains
export levels.
Local media outlet ThisDay quoted several
sources who wished to remain anonymous as
saying that two of the country’s three “active”
modular refineries – the 10,000 barrel per day
(bpd) OPAC Refineries unit in Delta, the 5,000
bpd Waltersmith Oilman unit in Imo and the
6,000 bpd Edo Refinery and Petrochemical Co,
unit in Edo – have all had the same issue with the
Nigerian National Petroleum Corp. (NNPC).
The government-run company had previously
given assurances it would ensure the plants’
“seamless” operations. First stage of modular refinery at Ibigwe oilfield (Image: Waltersmith Oilman)
No mention was made of the 1,000 bpd Niger
Delta Petroleum Resources (Train 3) unit in to the supply issues.
Rivers State, which is understood to have been While the facilities require just 16,000 bpd
operational in recent months. of crude, NNPC continues to export around
The report found that the OPAC unit has 1.3mn bpd.
exhausted its supplies and is sitting dormant, One source told ThisDay: “NNPC will tell
while Waltersmith has only been able to pur- you that they are doing direct sales, direct pur-
chase feedstock from private firm Seplat. The chase (DSDP) deals, and give traders that don’t
Edo plant was completed several months ago, even have refineries the needed cr1ude, but they
but its commissioning has been delayed, owing fail to give local refineries the commodity.”

P8 www. NEWSBASE .com Week 19 11•May•2022