Page 13 - AfrOil Week 03 2021

AfrOil PIPELINES & TRANSPORT AfrOil

Despite the setbacks and delays, KPC has In 2019, the company conducted a dry-run
already begun using a specialised ship to trans- test of this route, as well as a wet-run test that
port rail tankers full of fuel across Lake Victoria involved the transfer of petroleum products
to destinations in Tanzania and Uganda. from Kisumu to the Ugandan port of Jinja. ™

INVESTMENT
Sonatrach plans to invest

$40bn over the next 5 years

ALGERIA ALGERIA’S state-owned hydrocarbon major fields of Gassi Touil and Hassi Bir Rekaiz, as well
Sonatrach plans to invest $40bn over the next as the ramp-up of production at Tinrhert and
five years to bring new deposits on stream and the completion of boosting Hassi R’Mel for the
ramp up several others. North zone.
The national oil and gas champion aims to Growing production is expected to serve
increase the local content of its projects, sourc- higher demand for hydrocarbons in Algeria
ing almost half of its requirements from domes- over the next few years, reaching 70mn tonnes
tic suppliers to promote and develop Algerian of oil equivalent (toe) in 2024. The company
businesses and saving the treasury precious for- intends to meet demand growth by adding refin-
eign exchange reserves. ing capacity, via a new plant to be built at Hassi
Sonatrach’s CEO Toufik Hakkar expects pro- Messaoud, and a petrochemical project for
duction and sales to experience growth in 2021 polypropylene production, while maintaining
thanks to the commissioning of the peripheral annual oil and gas exports above 90mn toe. ™

Nigerian company acquires 45%

of OML 17 from Shell, Total, Eni

NIGERIA TNOG Oil & Gas, a company established by
Heirs Holdings and Transnational Corp. of
Nigeria (Transcorp), has completed the acqui-
sition of a 45% equity stake in Oil Mining Lease
17 (OML 17).
The Nigerian firm concluded the purchase
last week with a combination of deals worth a
total of $1.1bn. The largest of these transactions
was its $533mn acquisition of a 30% stake from
Shell Petroleum Development Co. (SPDC),
a Nigeria-based affiliate of Royal Dutch Shell
(UK-Netherlands).
In a statement, Shell explained that SPDC OML 17 is in the eastern Niger River Delta (Image: Heritage Energy)
had transferred its share to TNOG Oil & Gas, a
firm established by Heirs Holdings and Transna- out, though, that SPDC was slated to retain its
tional Corp. of Nigeria (Transcorp), after secur- holdings in the Port Harcourt Industrial and
ing all the necessary approvals from the relevant Residential Areas, both of which lie within the
Nigerian government agencies. TNOG Oil & boundaries of OML 17.
Gas paid the sum of $453mn at the closing of the According to the statement, the Shell sub-
transaction and will pay the balance of $80mn sidiary is committed to transferring the stake in
“over an agreed period,” it noted. OML 17 “in an orderly and responsible manner
Shell also said that the 30% stake sold to the to the new owner, which will help to provide a
Nigerian company included both the licence sustainable long-term plan to unlock its full
area and associated infrastructure. It pointed potential.”

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