Page 17 - AfrOil Week 22a 2020

AfrOil
NEWS IN BRIEF
AfrOil
INVESTMENT
Angola delays launch of
onshore licensing round but
releases data package
The Angola National Agency of Oil, Gas, and Biofuels (ANPG), as the national concession- aire for the exploration and production (E&P) of liquid and gaseous hydrocarbons in Angola, has announced that the Data Package referring to the blocks for oil exploration in the Onshore Basins of the Lower Congo (CON1, CON5 and CON6) and the Kwanza (KON5, KON6, KON8, KON9, KON17 and KON20) is now available to all companies.
The interested parties in consulting the data of the above-mentioned basins and other availa- ble, as well as participating in a Data Show Room to be carried out by the national concessionaire, should express their interest via the ANPG web- site (www. anpg.co.ao).
Additionally, the ANPG informs that, as per schedule, the 2020 Bidding Process had all the conditions prepared to announce the intention to launch a public tender until the end of May under the terms of Presidential Decree 86/18 of April 2.
However, due to the current constraints caused by the COVID-19 pandemic, ANPG believes that will be necessary to make some adjustments.
It is important to note, nevertheless, that despite this moment of adversity, the objec- tives have not changed in relation to the previ- ously announced bidding schedules. The need to streamline and continue oil operations in the country remains valid, with the particular emphasis on exploration activities.
The national concessionaire will notify, through announcements on the ANPG website (www.anpg.co.ao) and in national and interna- tional media, the relevant developments regard- ing this bidding, as well as any announcements of the intention to launch a public tender, pursu- ant to Presidential Decree No. 86/18 of April 2nd for the above-mentioned blocks on the Onshore Basins of the Lower Congo and Kwanza.
ANPG, June 01 2020
MelbanaEnergyannounces
Block 9 farm-in agreement
with Sonangol
Melbana Energy has entered into a farm-in agreement (FIA) with Sonangol with regards to its Block 9 production-sharing contract (PSC) onshore Cuba. Sonangol is the national oil
company of the Republic of Angola. It produces over 2mn barrels of oil per day and is Africa’s sec- ond largest producer.
Subject to Sonangol’s interest in Block 9 PSC receiving Cuban regulatory approval (which we are advised has been received and is now in the process of being formally documented), the FIA provides for: Sonangol to fund 85% of all costs associated with the completion of the drilling of Melbana’s two highest ranked and high impact targets (Alameda and Zapato) to earn a 70% par- ticipating interest in Block 9 PSC, with the first well expected to commence drilling in Q4-2020; and Sonangol to pay Melbana approximately $5mn to cover its expenditure to date related to Block 9 PSC.
All other conditions have been confirmed by Sonangol as having been satisfied.
In parallel with negotiating the FIA, Melbana has been working with drilling contractors and service providers to generate updated proposals to support the drilling of these two wells. The preferred entities all have an established pres- ence in Cuba and significant experience there in the oil and gas sector. Further announcements are expected to be made in due course once these agreements are finalised.
All necessary permitting for these two wells is either already in place, in the process of being renewed or extended (as applicable) or need only be sought once all agreements for rigs and services are in place and drilling is ready to commence.
Drilling operations are currently forecast to commence in Q4-2020, subject to currently unknown timing and movement implications due to COVID-19 management practices that Cuba and other relevant countries may con- tinue to employ in the months ahead. A contin- gency is currently built into the project schedule which is hoped would be sufficient to absorb
any prolonged impact of this pandemic. Mel- bana notes that mills in China and Europe for the manufacture of tubulars and accessories (to supplement existing inventories) have been either working without interruption or have had their operations normalised after being slightly affected in Q1 of this year.
Melbana Energy’s Executive Chairman Andrew Purcell said: “It has been a challenging period in which to advance formal agreements and well planning, but we are fortunate and appreciative to have had the experience and commitment of Sonangol and CUPET to assist us.
“We are pleased, too, by the commitment being shown to the drilling of these two wells by the various contractors we are in discussions with. These are difficult times for the energy sector, but it does mean there is a lot of avail- able capacity and inventory for this drilling programme.
“We look forward to commencing this drill- ing program later this year, subject to the impacts of COVID-19 on the movement of people and materials abating in a timely manner.”
Melbana Energy, May 27 2020
FINANCIAL
Zenith Energy announces delisting from TSX-V
Zenith Energy, the international oil and gas pro- duction company focused on African develop- ment opportunities, has announced that the TSX Venture Exchange (TSX-V) has confirmed that effective at the close of business Friday, May 29, 2020, the common shares of the Company will be delisted from the TSX-V at Zenith’s request.
Week 22 03•June•2020
w w w . N E W S B A S E . c o m
P17