Page 12 - AfrOil Week 49 2019

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NEWS IN BRIEF
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Libya: Agreement between NOC and Total endorsing group’s entry into Waha concessions
Total and National Oil Corp. (NOC), with the agreement of the government of Libya, signed today an agreement to implement Total’s par- ticipation in the Waha concessions, located in the Sirte Basin in Libya. Under the terms of this agreement, Total commits to:
Assist NOC in accelerating the development of the Waha concessions by providing its tech- nologies and expertise; by developing the North Gialo and NC 98 fields, which are expected to add production of 180,000 barrels of oil equiva- lent per day; and by supporting social responsi- bility programs carried out by NOC in the areas adjacent to oil operations. To that end, Total will finance contributions of $70mn at the outset, $30mn when North Gialo will come on stream and $30mn when NC 98 will come on stream.
Carry out by itself local economic develop- ment programs, for a global amount of $20mn, over a 4 year period.
“Total is satisfied to sign this agreement with NOC, with the agreement of the government of Libya, which definitively endorses our entry into the Waha concessions,” stated Patrick Pouy- anné, Chairman and CEO of Total. “We will engage resolutely with NOC and Waha Oil Co. in order to invest, optimise the infrastructure and develop new reserves for the benefit of all parties and notably Libya and the Libyans. The agree- ment, which further extends our close co-oper- ation with NOC, is yet another milestone in our 60-year history in the country.”
On March 1, 2018, Total acquired a 16.33% working interest in the six Waha concessions by the purchase of Marathon Oil Libya Lim- ited (MOLL), a wholly owned affiliate of the US-based Marathon Oil Corporation. The Waha concessions currently produce about 350,000 barrels of oil equivalent per day (boepd).
The acquisition gives Total access to reserves and resources in excess of 500mn barrels of oil equivalent and a significant exploration potential across the 53,000 square km area covered by the concessions.
NOC (59.18%), Total (16.33%), ConocoPhil- lips (16.33%) and Hess (8.16%) jointly own the Waha concessions. Waha Oil Co., wholly owned by NOC, operates the asset.
Total has been present in Libya since 1954. In 2018, the Group’s production in the country averaged 63,000 barrels of oil equivalent per day, from the offshore Al Jurf field (37.5%), the
onshore El Sharara area (15% in former Block NC 115 and 12% in former Block NC 186), and the onshore Waha concessions (16.33%).
Total, December 10 2019
Gabon: Panoro Energy completes Dussafu DTM-4H production well offshore Senegal
Panoro Energy has announced the successful completion of the DTM-4H well, the first of the phase 2 Tortue development wells.
The well was drilled with the Borr Norve jackup drilling rig in 116-metre water depth as a horizontal production well in the Gamba res- ervoir. A long horizontal section of good quality oil saturated Gamba sands was drilled and com- pleted and the subsea tree installed ready for hook up early next year. The rig has now moved to the DTM-5H well location, the second of the four phase 2 production wells, and the DTM-5H well was recently spudded.
First production from the phase 2 Tortue wells is planned for March 2020 with all four phase 2 wells expected to be online by June 2020. Panoro Energy, December 10 2019
PetroNor: execution
of investment and
shareholders agreement
for Aje field (OML 113)
Further to the announcement dated October 21, 2019, PetroNor is pleased to announce that it has now finalised and entered into the separate investment and shareholders agreement with the OML 113 operator, Yinka Folawiyo Petroleum (YFP). The purpose of the YFP Agreement is to form a partnership and a jointly owned special purpose vehicle (SPV) named Aje Petroleum to focus on the revitalisation and further develop- ment of OML 113 and the Aje oil and gas field offshore Nigeria.
The YFP Agreement sets out the contribution by YFP and YFP Deep Water (YFPDW) of their shareholding in the companies holding the YFP and YFPDW participating and economic inter- est in OML 113 to the partnership and the SPV. Similarly, PetroNor will contribute its sharehold- ing in companies holding its participating and economic interest in OML 113, which is being acquired from Panoro Energy.
Following completion, Aje Petroleum will hold a 75.5% participating interest and an aver- age economic interest in the order of 38.7% in
OML 113, with an initial 29% economic inter- est at the onset of the transaction. Additional details on licence interests are provided in the attached appendix. The ownership of Aje Petro- leum is to be shared between YFP and PetroNor on the basis of a 55% and 45% shareholding respectively.
Governance is established via a board con- sisting of five directors with two nominated by each of YFP and PetroNor and one independent director. One of YFP’s nominated directors will be the Chairman.
YFP, as the operator of OML 113, will engage Aje Petroleum as a technical service company. A joint project management team will be estab- lished by the Aje Board and be led by a member nominated by PetroNor. An early deliverable will be the agreement of a work plan and budget in relation to the operations of OML 113. The completion of the YFP Agreement is subject to authorisation of the Nigerian Department of Petroleum Resources and consent of the Minis- ter of Petroleum Resources.
Jens Pace, Chief Executive Officer of Petro- Nor said: “This agreement is a key step in estab- lishing a means to create partner alignment around our proposed concepts for the future development of the Aje field. It builds on Petro- Nor’s successful business development track record of gaining access to opportunities by pre- senting commercial and technical solutions to asset owners in order to enhance value. In this case, it has led to the creation of a special pur- pose vehicle with majority local content that is focused on realising the value of OML 113. Fol- lowing government approvals, the company will advance plans for increasing liquids production, and developing the discovered gas resources.”
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Week 48 11•December•2019