Page 11 - AfrOil Week 26

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AfrOil
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Arbitration under way on East Ghazalat
In Egypt, the Company’s interest in the East Ghazalat eld is the subject of an arbitration process which is expected to be concluded in the second half of 2019.
e asset has scope for increased production through workovers of existing wells, drilling new exploration and development wells, and development of the South Dabaa gas discovery. ere is a dispute regarding the Joint Operating Agreement that is currently going through an arbitration process held at the London Court of International Arbitration. A hearing was held in May, with conclusion anticipated during the second half of 2019.
nostRa tERRa oIl and gas, july 1, 2019
Tunisian field on track for Serinus
e reopening of the Chouech Es Saida
eld in southern Tunisia is progressing as expected. Following the extensive clearing of sand from the road and surface facilities, the Company started the rst well workover on the CS-3 well on 27 June 2019. is workover is expected to take two weeks and includes the installation of a new electrical submersible pump. Once completed, the CS-3 well will be brought onto production and the workovers of the other three wells will be performed sequentially. e Company anticipates that all Chouech wells will be on production by the end of August 2019.
e Sabria eld continues to perform in line with management expectations and an
operational and production update will be given at the time of the H1 results in August. sERInUs EnERgy, july 1, 2019
WEst afRICa
Angola defers VAT plan
Angola’s revenue squeeze – partly as a result of diminished oil production and revenues – has led the country to institute VAT. is was due to start on July 1, CAJ News reported, but has been pushed back to October. ere have been disagreements about which sectors and goods may be exempt.
e rate is set at 14% and will apply to all subjects. e head of the Industrial Association of Angola has criticised the imposition of this levy on education and health.
Portugal is providing technical and training assistance for Angola.
GDC’s second quarter update
Victoria Oil & Gas, whose wholly-owned subsidiary, Gaz du Cameroun (GDC), the fully integrated onshore gas producer and distributor with operations located in the port city of Douala, Cameroon, is pleased to provide an update on the Group’s operations prior to the Annual General Meeting. is update covers the period from 1 April to 25 June 2019 inclusive.
Average gas production during the second quarter was 9.72mn cfd, from 10.10mn cfd
in the rst quarter. During the period, ENEO Cameroun’s gas consumption was consistently over 5.1mn cfd, while gross gas sales were
838mn cf, down from 903mn cf in the rst quarter.
GDC and ENEO are nalising a fully termed agreement and payment guarantee to supplement the existing binding term sheet.
Ahmet Dik, Chief Executive O cer
of VOG commented: “ e Company has continued to perform well over the past Quarter, delivering consistent production gures following the resumption of the ENEO contract whilst reducing operating costs. We have been pleased to receive the January payment from ENEO. We continue to diversify our client base as we pursue material opportunities with other Independent Power Producers in the region that are recognizing the increasing demand for power in Douala. We remain con dent about the long-term future of this business and are focused rmly on the development and expansion of our operations.”
vICtoRIa oIl & gas, june 27, 2019
Glencore counts up government payments
Glencore paid US$45.67mn to Equatorial Guinea in 2018. e largest share of this was in production entitlements, which accounted for US$21.4mn, while royalties reached US$14.3mn.
e royalties are made up of 203,000 barrels li ed at market price. Royalties represent a percentage of production paid in kind to the government of Equatorial Guinea. Under the respective production sharing contracts, production entitlements and royalties are calculated on a produced volume basis. However, since payments are tied to li ed volumes, the split of total li ed volumes between li ed production and li ed royalties has been approximated.
e Aseng project, in Block I, accounted for US$32.3mn, while Alen in Block O was US$13.4mn.
Glencore also paid Chad US$96.6mn.
Of this amount, US$61mn was production entitlement, while royalties were US$32.7mn.
Production entitlement was made up
of 897,000 barrels li ed at market price. Production entitlement, which is paid in kind, includes all streams of production payments to the state and state NOC for volumes li ed, excluding royalties. Under the respective production sharing contracts, production entitlements and royalties are calculated on a produced volume basis. Payments are tied to li ed volumes, the split of total li ed volumes between li ed production entitlements and li ed royalties has been approximated.
Royalties were made up of 465,000 barrels.
Week 26 02•July•2019
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