Page 14 - AfrOil Week 20 2021

AfrOil PROJECTS & COMPANIES AfrOil

Wabote also said that he expected the Train 7 tonnes per year to 30mn tpy. It provides for the
scheme to attract as much as $10bn worth of construction of a seventh train that will turn
investment into the Nigerian economy. The out 4.2mn tpy, as well as the debottlenecking of
project itself is anticipated to cost $5bn to imple- existing trains, which will add another 3.4mn
ment, and another $5bn will have to be spent on tpy of capacity.
upstream and midstream operations to support The NLNG consortium includes Nigerian
Train 7, he commented. National Petroleum Corp. (NNPC), with 49%;
“[In addition to] the $5bn for the Train 7 Royal Dutch Shell (UK/Netherlands), with
project, there is another $5bn out there for the 25.6%; Total (France), with 15%, and Eni (Italy),
upstream opportunity,” he explained. “So in the with 10.4%. The partners own a gas liquefac-
whole process, you see that we’ve been able to tion plant with six production trains on Bonny
lock almost about $10bn only on the Train 7 Island. They brought the first train on stream
project.” in 1999 and made a final investment decision
The Train 7 project is designed to raise (FID) on the construction of a seventh train last
NLNG’s total production capacity from 22.5mn year. ™

Africa Oil waiting for FDP to invest

money in South Lokichar project

KENYA CANADA’S Africa Oil has put its plans for licence for Block 10BA to incorporate the work
investing in an upstream project in Kenya on programme for the site with the FDP for Block
hold, citing the need to firm up plans for com- 10BB and 13T, it said.
mercial development. Africa Oil has 25% stakes in three blocks,
The company made a statement to this effect while its partners Tullow Oil (the operator)
last week in a report on its first-quarter results. and Total have 50% and 25% respectively. Both
It explained in the report that it did not yet have Tullow and Africa Oil sought last year to with-
enough capital to cover its share of development draw from the South Lokichar basin, citing
expenses and would not seek to access the neces- concerns about the project’s viability in the face
sary financing until certain conditions were met. of lower oil prices, but they did not do so in the
On the one hand, Africa Oil said it was wait- end. ™
ing to secure approval for a field development
plan (FDP) and other key documents. “Regard-
ing the South Lokichar basin development,
the company will continue to minimise capital
investment until a field development and finan-
cial plan is approved,” it said. “The company’s
current working capital position may not pro-
vide it with sufficient capital resources to com-
plete development activities being considered in
the South Lokichar basin (Kenya).”
On the other hand, it also said it intended
to wait until the three partners in the project –
Africa Oil, Tullow Oil (UK/Ireland) and Total
(France) – had secured long-term licences for
their assets in the South Lokichar basin. The
Kenyan government has already extended the
group’s licences for Blocks 10BB and 13T until
the end of December 2021 and its licence for
Block 10BA until April 26, 2022, but the par-
ties have not yet settled all their outstanding
differences.
In the meantime, the statement said, Africa
Oil, Tullow and Total are working to finalise the
FDP. They hope to submit the plan to the Ken-
yan government before the end of the year and
will continue talks on renewal of their licences,
it noted. Additionally, they hope to take advan-
tage of the extra time before the expiration of the Blocks 10BA, 10BB and 13T are in western Kenya (Image: Tullow Oil)

P14 www. NEWSBASE .com Week 20 19•May•2021