Page 17 - AfrOil Week 38 2022

AfrOil NEWS IN BRIEF AfrOil

business new africa bna/IntelliNews

POLICY has been trying to secure energy needs to offset For Angola, high production levels can
the Russian gas it usually depends on, in light of largely be attributed to the stability and security
Egypt joins the ranks the Russia-Ukraine war. Algeria was a priority of the sector.
Stability Supports Output: In August 2022,
choice for Italy in that regard.
of nations racing to bna/IntelliNews, September 19 2022 the Organization of Petroleum Exporting Coun-
tries estimated the country’s average output to
pick up Russian oil PROJECTS & COMPANIES measure 1.17mn bpd, compared to Nigeria’s
1.13mn bpd during the same period. While
Egypt is joining the ranks of nations racing to Nigeria’s output has been significantly impacted
pick up Russian oil on the cheap, with shipments Drilling activity starts at by high levels of crude oil theft and pipeline van-
of oil jumping up from one in August 2021 to dalism – with the Nigerian Upstream Petroleum
51 in August 2022, media sources including ASH-4 development well Regulatory Commission (NUPRC) estimating
Bloomberg reported. that production more likely measured 972,000
Bloomberg floated a highly speculative report at Abu Sennan licence in bpd in August 2022 – Angola’s sector security has
in August that Russia was shipping oil to the El translated into strong production.
Hamra oil terminal on the North Coast, which is onshore Egypt Despite production declines from 1.18mn
able to store 1.5mn barrels of crude. Around the bpd to 1.16mn bpd from April to May this
same time, the Petroleum Ministry announced a Drilling activity started at the ASH-4 develop- year, security across the Angolan hydrocarbons
large-scale expansion of the terminal that would ment well in the Abu Sennan licence onshore industry has ensured the country’s output has
more than triple storage capacity to 5.3mn Egypt, in which United Oil & Gas (UOG) not only been resilient but has actually increased,
barrels. company holds a 22% working interest, UOG now measuring 1.17mn bpd .
Russia is a strategic partner for Egypt, with announced in a press release. The concession is New Developments Offer Promising
Russian President Vladimir Putin touting Cairo operated by Kuwait Energy Egypt. Returns: With improved production represent-
as Moscow’s most important partner in Africa The ASH-4 development well is the fourth ing a top objective for Angola, a series of explo-
and Middle East. Bilateral trade between Russia well in the 2022 drilling programme at Abu ration campaigns have been launched in recent
and Egypt includes the latter exporting to Rus- Sennan. The well will be drilled as a vertical hole months to bring new reserves online. This year,
sia over $500mn of fresh vegetables annually, targeting the prolific Alam El Bueib reservoir. It the National Agency of Petroleum, Gas and
while Russian tourist arrivals to Egypt currently is expected to take 55 days to drill and complete Biofuel (ANPG) opened proposals for the latest
exceed 1mn per year and their importance will and is fully funded from operational cashflow. licensing round for offshore blocks in the Lower
only grow by time. The well is targeting 2.2mn barrels of oil Congo and Kwanza Basins in April 2022; French
bna/IntelliNews, September 22 2022 equivalent (boe) of gross recoverable oil in what energy major, TotalEnergies, announced that a
has been to date a highly productive area of the final investment decision (FID) has been made
Algeria’s Sonatrach licence. On completion of drilling, ASH-4 is for the Begonia field – the first development of
Block17/06 offshore Angola; Eni and bp estab-
expected to be rapidly brought into production.
reportedly not able to successfully encountered 7 metres of net pay in venture, Azule Energy, thereby combining the
Separately, the company said the AJ-14 well lished the country’s largest independent joint
provide agreed gas the primary Abu Roash-C (ARC) target in line majors’ Angolan businesses; and London-listed
with the higher end of the pre-drill estimates. Afentra purchases interests in two shallow-water
quantities to Italy The well-recorded indications of hydrocar- offshore blocks in Angola. As such, the future is
bon-bearing reservoir in the deeper Abu Roash bright for Angola’s production industry.
The Algerian oil group Sonatrach has been G reservoir. Due to technical difficulties whilst
struggling to supply 9bn cubic metres of addi- running the logging tools, a full logging suite was
tional natural gas to Italy, threatening the earlier not acquired over this secondary target. Further
agreement of the two countries, Algerian news issues with the borehole were encountered in the
portal Algerie Part reported on Sunday, Septem- deeper section of the well, and the decision was
ber 18. made to complete the well solely in the ARC.
Sonatrach will be reportedly providing bna/IntelliNews, September 19 2022
Italy with up to 4 bcm of gas only, Algerie Part
reported citing a Sonatrach internal audit. Angola tops Nigeria as the
In July, Algeria and Italy signed an agreement
that includes Algeria providing its European biggest oil producer for the
partner with 9 bcm of gas from November 2022
until December 2023, in addition to the previ- fourth month in a row
ously agreed quantities.
To be able to fulfil its commitment, Algeria Angola is officially the biggest oil producer in
will need to mobilise all the existing transport Africa, with the oil-rich nation producing the
capacities of the TransMed gas pipeline and highest output on the continent for the fourth
gradually increase production, but Sonatrach month in a row.
will not be able to do that, as it uses part of its Since overtaking in May 2022, Angola has
network capacity to produce much-needed managed to maintain its output, with new devel-
LNG, which has witnessed surging prices. opments currently underway set to increase pro-
Italy, like many other European countries, duction figures even further.

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