Page 7 - AfrOil Week 45 2019
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The field then came on stream in 2005. At its peak, it was yielding about 225,000 barrels per day (bpd) of crude oil and 1.55bn cubic metres per year of natural gas.
OML 118 is believed to hold around 6bn barrels of oil and also contains sizeable gas reserves. Equity in the project is split 55% to Royal Dutch Shell (UK/Netherlands), 20% to ExxonMobil (US) and 12.5% to Total and Eni (Italy). Shell and ExxonMobil are serving as joint operators of the field.
Earlier this year, Nigeria’s national oil com- pany (NOC) said it had invited several poten- tial investors to submit bids for an adjacent deepwater field known as Bonga South West/ Aparao. This site is set to see oil production reach a peak of 225,000 bpd in 2022. Nigerian National Petroleum Corp. (NNPC) will lead the project, which is likely to see output peak at 225,000 bpd, jointly with Shell.
OML 118 is also known as the Bonga field (Image: Total)
PetroSA, Rosgeologia continue talks on offshore Blocks 9 and 11A
SOUTH AFRICA
SOUTH Africa’s national oil company (NOC) PetroSA is reportedly still in talks with Rosgeo- logia, Russia’s state geological concern, on par- ticipation in the development of two offshore blocks.
Sources told Reuters last week that the par- ties were discussing a farm-in deal that would let Rosgeologia acquire a stake in Block 9 and 11A. They did not say when PetroSA expected to finalise negotiations, but one source inside PetroSA indicated that the Russian enterprise was particularly interest in carrying out more exploration work.
“There are certain parts of the block that are unexplored, so Rosgeo made an offer,” said the source, who spoke on condition of anonymity. He did not elaborate.
PetroSA and the Russian company first announced plans to work together in 2017 but have been slow to sign a final agreement. According to Reuters, PetroSA said in a pres- entation to the South African parliament’s portfolio committee on mineral resources and energy last month that it now hoped to wrap up talks before the end of this year.
This would represent a departure from ear- lier plans. A source inside Rosgeologia told Reu- ters last week that the parties had not been able to realise their hopes of reaching agreement in October, during the first Russia-Africa Summit. He did not say whether they had set a deadline for negotiations, but he did say that Russian side was drawing up a series of proposals on the implementation of the project and would sub- mit its ideas to the South African NOC.
The parties are reportedly discussing a plan
that provides for Rosgeologia to pay $359mn for a stake in Block 9 and 11B. They have not decided yet how much equity the Russian firm will be able to acquire, but they have said the deal lays the groundwork for an extensive exploration campaign involving geochemical studies, geophysical surveys and the spudding of six appraisal and exploration wells. Additionally, they have indicated that Rosgeologia intends to finance its share of expenses through loans.
If the parties reach agreement, PetroSA will need to secure approval from its board of direc- tors and from the South African government.
Blocks 9 and 11A lie offshore South Africa (Image: PetroSA)
Week 45 13•November•2019 w w w . N E W S B A S E . c o m P7
