Page 15 - AfrOil Week 11 2020

AfrOil
NEWS IN BRIEF
AfrOil
This LNG production facility will be the first onshore LNG project in the Republic of Mozam- bique in south-east Africa.
Under the agreement with EPC contrac- tor CCS JV, Air Products will provide two of its proprietary coil wound main cryogenic heat exchangers (MCHE) for the Project. The MCHEs will operate at the site as part of two separate LNG production trains designed to pro- duce approximately 13mn tonnes per year 9tpy) of LNG in total from the Golfinho/Atum natural gas fields in Mozambique.
“Air Products’ expertise in LNG is well regarded by the industry, and we are pleased to have been selected for this project. Our LNG heat exchangers are in operation around the world, and when this project goes on stream, we can add Mozambique to the growing list of countries where we play a key role in meeting the world’s clean energy needs through the pro- duction of LNG. Our LNG business is encour- aged by the activity in the market and customers should know that Air Products’ expanded man- ufacturing facility is capable of addressing their LNG technological needs anywhere in the world,” said Samir Serhan, executive vice pres- ident at Air Products.
Roberto Uberti, CCS JV Chairman, com- mented: “We have been tasked with building the first onshore LNG export facility in Mozam- bique and one of the most efficient facilities in the LNG space. We are carefully selecting reli- able and experienced technology providers and under this perspective the benefits of Air Prod- ucts involvement are clearly consistent.”
Air Products is also involved with the Coral South floating LNG (FLNG) project, the first offshore FLNG project in Mozambique, which is expected to begin production in 2022.
CCS JV is the consortium contracted by Total E&P Mozambique Area 1 for Engineering, Pro- curement and Construction of Mozambique LNG project, a natural gas liquefaction facility
on the Afungi peninsula in Cabo Delgado prov- ince, Mozambique, bound to become a future leader in the global LNG industry. CCS JV is a limited liability company incorporated under the laws of Italy and formed by a joint venture comprised of affiliates of Saipem, McDermott and Chiyoda. CCS JV partners have completed contracts for more than 40% of the world’s LNG production projects. For more information, visit: www.ccsjv.com.
Air Products, March 12 2020
INVESTMENT
Petronas and Exxon
working with advisers on
a proposed sale of their
stakes in Chad project
Osaka Matsui Management analysts have reported that oil giants Petronas and ExxonMo- bil are both working with advisers on a proposed sale of their stakes in the Chad project, expected to be worth more than $1bn. The project includes oil fields in southern Chad and a major pipeline transporting crude oil to a marine terminal for exportation in Cameroon.
“Malaysia’s state-owned oil giant Petronas is working with an adviser on the potential dis- posal of its 35% stake in the Chad project, with Exxon working with another adviser to sell their 40% stake as well,” reported Michael Carter, Head of Global Equities at Osaka Matsui Man- agement. “The combined holdings of both oil companies could be worth over $1bn,” added Michael Carter.
“A deal could come due to Petronas shift- ing its focus on Americas to beef up reserves and maintain production rates which Chief
Executive Officer Wan Zulkiflee Wan Ariffin advised in an interview last year,” commented Osaka Matsui Management’s Alistair Richmond, Director of Corporate Trading.
Completed in 2003, the Chad project was a “pioneering initiative” between International Finance Corp. (IFC) and the World Bank to prove that large-scale oil projects can signifi- cantly improve sustainable long-term growth opportunities, with designs that ensure effi- ciency and successful environmental and social mitigation, according to the IFC website.
ExxonMobil is the operator of the Chad-Cameroon pipeline, and the other inves- tor in the scheme, apart from Petronas, is the government of Chad, which in 2014 purchased the remaining 24% stake from Chevron.
In Chad in 2016, ExxonMobil was ordered to pay a $74bn fine for underpaid royalties in the central African nation.
At the time, the penalty was about five times more than Chad’s gross domestic product (GDP). The oil giant managed to settle with Chad and avoided the hefty fine, whereas Exx- onMobil retained its exploration licence in the country through to 2050.
“At present, sale deliberations are still pre- liminary, and the recent drop in oil prices could add volatility to any agreement made, so in the meantime, Petronas will continue to operate in Chad,” further commented Alistair Richmond of Osaka Matsui Management.
Osaka Matsui Management, March 16 2020
Zenith Energy
announces update
on acquisitions
Zenith Energy has provided an update in view of the recent volatility in oil prices and financial markets.
As announced to the market, Zenith has cen- tred its strategic focus on pursuing large-scale, revenue generating oil production and develop- ment opportunities in Africa.
Zenith is in the process of finalising the fol- lowing, publicly announced acquisitions: acqui- sition of an 80% interest in Anglo African Oil & Gas (AAOGC), operator of the potentially trans- formational Tilapia oilfield in the Republic of the Congo with a 56% interest. Completion of the acquisition of AAOGC remains conditional on certain regulatory requirements in the Republic of the Congo which the Company is expecting to achieve imminently.
Final stage negotiations with a national authority in West Africa for an oil production asset, formerly operated by a major interna- tional oil company, which last produced at a rate in excess of 1,000 barrels per day (bpd) of oil.
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