Page 17 - AfrOil Week 06 2022

AfrOil NEWS IN BRIEF AfrOil

The report, which was issued by the parliamen-
tary Committee on Tourism, Trade and Indus-
try, noted that fuel prices have continued to go
up in Uganda despite the easing of the border
strike that triggered the crisis. It was referring to
the 10-day strike staged by Kenyan truck drivers
who claimed that authorities at the Malaba bor-
der post were taking too long to clear them to
cross into Uganda.
Since the end of the strike, the average retail
price of gasoline has risen to $1.43 per litre, up
from $1.28 before the strike, the report said.
The ongoing price hikes have sparked con-
cerns about excessive stockpiling, and Mwine
Mpaka, the chairperson of the committee, said
Vivo and Total were the companies most likely to
be hoarding fuel because they had been import- and placed on production the Etame 8H-ST strong revenue which is allowing us to grow our
ing a significant amount of petroleum products. development well with a lateral of 162 metres cash position and fund our capital program with
“With these statistics, it is clear that fuel in high-quality Gamba sands near the top of the cash on hand and cash from operations. We are
is actually getting into the country. But some reservoir. Reported strong initial flow rate of excited about the future for VAALCO with the
fuel-importing companies and fuel stations approximately 5,000 gross barrels per day (bpd) continued development of our interests in off-
are taking advantage of the current situation of oil, 2,560 bpd net revenue interest (NRI) to shore Gabon, upside opportunities in Equatorial
to hoard and sell the fuel expensively,” Mpaka VAALCO, or 2,940 bpd to VAALCO’s working Guinea and the potential to integrate accretive
stated. interest (WI), above VAALCO’s internal expec- acquisitions aimed at further strengthening
The report also accused Uganda’s Ministry of tations. Preparing to spud the next well in the VAALCO and growing shareholder value.”
Energy and Mineral Development of poor plan- drilling program, the Avouma 3H-ST1 develop- VAALCO Energy, February 7 2022
ning, pointing to the country’s lack of adequate ment well, which is also targeting the Gamba res-
fuel reserves. “It is pertinent to note that Uganda ervoir. Reported solid production for Q4-2021 of NLNG hailed for directing
has no fuel reserves. This renders it vulnerable about 7,550 bpd NRI, and full year 2021 produc-
to crises as these, being that the country is land- tion of 7,120 bpd NRI, both above the midpoint all LPG production to
locked. Also, UNOC [Uganda National Oil Co.] of guidance.
has to up its effort to be up to its task, being a state Estimates that revenue for Q4-2021 was domestic market
enterprise; it should jealously guard the interests strong at approximately $57mn and about
of government and Ugandans as a whole,” the $200mn for full year 2021. Continues to main- The Nigeria LP Gas Association (NLPGA) has
report said. tain a debt-free balance sheet and stated that the hailed the Nigeria LNG (NLNG) consortium for
bna/IntelliNews, February 7 2022 cash balance at December 31, 2021, was approx- its decision to direct all of its LPG production to
imately $48.7mn, which did not include the pro- the domestic market.
ceeds from the December lifting of $22.5mn that In a statement, NLPGA president and execu-
PROJECTS & COMPANIES were received in January 2022. Added hedges in tive council head Nuhu Yakubu said he expected
January to lock in strong cash flow generation this move to help ensure Nigerian consumers’
VAALCO Energy says on a portion of expected production to assist access to LPG supplies. “In recent months past,
in funding VAALCO’s capital program and Nigerians have had to pay significantly more to
Etame 8H-ST well has dividend. buy cooking gas owing to supply disruptions,” he
Expects new production from 2021/2022 said. “This supply intervention move by NLNG is
been placed on production drilling campaign along with an increased pric- expected to free up more volumes and have some
ing environment should help to drive additional cushioning effect on the high price of cooking
VAALCO Energy Inc. today announced the suc- cash flow in 2022. Plans to release full 2022 oper- gas, subject, however, to its realistic production
cessful completion of the Etame 8H-ST devel- ational and financial guidance in year-end earn- output, as determined by other factors.”
opment well that was drilled from the Etame ings release in early March. Yakubu noted that NLNG has been allotting
platform in the Etame field offshore Gabon. This George Maxwell, VAALCO’s CEO, com- an increasingly large share of its LPG produc-
sidetrack well targeted existing Gamba hydro- mented: “We continue to execute on our strat- tion to the domestic market since 2007, when
carbons in the field that have not previously been egy and deliver strong operational and financial it apportioned 50,000 tonnes for local use. This
produced by prior wells and is the first well of results, while growing our cash position to fund year, he said, the consortium is set to deliver
VAALCO’s 2021/2022 drilling campaign. The our organic capital expenditures, future strate- 450,000 tonnes, or 100% of its output, to the
rig has now moved to the Avouma platform and gic initiatives and return cash to shareholders domestic market.
will begin drilling the Avouma 3H-ST develop- through our dividend. We brought the Etame NLNG has supported campaigns to promote
ment well, the first of two planned development 8H-ST well online with very strong initial flow the use of LPG as cooking gas and as automobile
wells on this platform. Additionally, VAALCO rates at an opportune time, with Brent selling fuel, as well as petrochemical feedstock and fuel
provided an operational and financial update for near $90 per barrel. We are preparing to drill the for power generation and the agricultural sector,
some key metrics for the fourth quarter and full next well in our 2021/2022 drilling campaign at he added. This is in line with the Nigerian gov-
year 2021. Avouma, another development well targeting ernment’s gasification initiatives, he noted.
Highlights: Successfully drilled, completed the Gamba reservoir. We continue to generate bna/IntelliNews, February 2 2022

Week 06 09•February•2022 www. NEWSBASE .com P17