Page 18 - AfrOil Week 03 2021

AfrOil POLICY AfrOil

He also asserted that he had the right to enter call for revenues to be split 85% to Senegal and
into negotiations and sign agreements with the 15% to Guinea-Bissau, he noted.
Senegalese government, with or without prior The two countries are not yet actively
authorisation from Guinea-Bissau’s Parliament. engaged in the exploration or development
Additionally, he said he expected the two of any blocks that cross the maritime border.
sides to reach an agreement in the near future. “I However, both of their offshore zones lie within
want to clarify this matter: I will sign this agree- the Mauritania-Senegal-The Gambia-Guin-
ment these days, by the way,” he remarked. ea-Bissau (MSGGB) basin, which is home to a
Embalo did not divulge many details of his number of sizeable oil and gas fields. Industry
discussions with Sall. He did indicate, however, experts have said they expect the boundary to
that he expected the agreement to be more cross other deposits that may contain commer-
favourable to Guinea-Bissau than existing cially viable reserves.
arrangements. Guinea-Bissau has already made at least one
The new accord, he said, will include provi- find in its own offshore zone. In 2004, Premier
sions that divide revenues from offshore crude Oil reported that it had found light crude oil in
oil and natural gas discoveries proportionally, in Sinapa-2, a well drilled to assess the potential of
accordance with the share of acreage within each the Sinapa salt dome. To date, the site has not
country’s maritime zone. Current arrangements progressed to commercial development. ™

PROJECTS & COMPANIES
Shell, NNPC subsidiaries

in domestic gas supply deal

NIGERIA SHELL Nigeria Gas (SNG), an affiliate of Royal
Dutch Shell (UK/Netherlands) involved in
downstream natural gas distribution, has signed
a 20-year domestic supply agreement with a
subsidiary of Nigerian National Petroleum
Corp. (NNPC).
SNG confirmed the signing at the weekend,
saying it had agreed to work with Nigerian
Gas Marketing Corp. (NGMC) to deliver gas
to industrial consumers and manufacturing
facilities in Nigeria. It did not reveal the value
of the deal or the volumes involved, or name
any future buyers. However, it did say that the
gas would go to customers in Ogun and Lagos The Shell subsidiary is already active in several Nigerian states (Photo: SNG)
states. The shipments are expected to support
industrialisation efforts in the Ota, Igbesa and major industrial users in Nigeria in line with the
Agbara districts of Ogun while also extending vision of the federal government of Nigeria and
SNG’s distribution network to Badagry, a town the [strategy] of the group managing director of
in Lagos, it noted. Nigerian National Petroleum Corp.,” he said.
Ed Ubong, the company’s managing director, Osagie Okunbor, the country chairman
stressed these points, saying: “This agreement of Shell companies in Nigeria, also struck an
will enable local industries to thrive and create upbeat note, asserting that the agreement
employment opportunities for Nigerians. We between SNG and NGMC would benefit the
look forward to continuing to grow domestic national economy. “Shell companies in Nige-
gas distribution to industries and manufactur- ria will continue to turn Nigeria’s domestic gas
ing plants in Ogun State and other parts of Nige- opportunities into reality through our strategic
ria while unleashing the industrial potential of intent to develop enough gas to meet our cur-
Badagry.” rent commitments and future growth plans,” he
Faruk Usman, NGMC’s managing director, commented.
pointed out that the deal with SNG was in line SNG is already active in Nigeria’s domestic
with the Nigerian government’s plans for boost- gas sector. It is working with partners and local
ing domestic gas consumption. “We continue stakeholders to deliver gas to industrial and
to work with credible partners to accelerate the commercial consumers in Abia, Bayelsa, Lagos,
marketing and distribution of natural gas to Ogun, Oyo and Rivers states. ™

P18 www. NEWSBASE .com Week 03 20•January•2021