Page 8 - AfrElec Week 37 2021

AfrElec GENERATION AfrElec

NNPC sells electricity from

Kaduna, Warri refineries

NIGERIA NIGERIA National Petroleum Corp. (NNPC) months as refinery utilisation remained at 0%.
sold $1.1mn worth of electricity from its refin- The losses fluctuated between NGN5bn and
eries at Kaduna and Warri in 2020 despite its full NGN10bn ($12-24mn) per month to give a total
refining slate having been offline throughout the loss of $253mn, with the firm highlighting that it
year. had continued to pay operating expenses for the
The company has not processed any crude inactive facilities.
since mid-2019, but the Kaduna and Warri units In a press release, the company said: “The
remain capable of utilising their generation declining operational performance is attrib-
capacity of 179 MW. utable to ongoing revamping of the refineries,
In addition to its refining throughput capac- which is expected to further enhance capacity
ity of 125,000 barrels per day (bpd), the Warri utilisation once completed.” However, work to
Refining and Petrochemical Co. (WRPC) can rehabilitate the refineries was only kicked off
generate 125 MW of electricity from three gas after the 12-month period ended.
turbine generators and three steam turbogen- NNPC said in July that work on Port Har-
erators, while Kaduna Refining and Petro- court by Italy’s Maire Tecnimont was in full
chemical Co. (KRPC) has four 14-MW steam swing, noting that the first refined products
turbines, giving it a total capacity of 56 MW in following the repairs are expected to be deliv-
addition to refining 110,000 bpd of crude. ered by September next year. It will come back
According to NNPC documents, KRPC on stream in stages, with the full $1.5bn project
earned $70,000 from electricity sales in 2020, up not anticipated to be completed until late 2024,
from zero the year before, while WRPC earned when it should reach 90% of its 210,000 bpd
$1.05mn last year, down 6% year on year. nameplate capacity.
In August, NNPC provided its financial The following month, fellow Italian com-
statements for the 13 months to February 2021, pany Saipem was awarded another $1.5bn deal
which showed that it made a loss in each of those to rehabilitate Kaduna and Warri.™

Kinetiko Energy begins CBM drilling

SOOUTH AFRICA AUSTRALIA’S Kinetiko Energy is set to begin production scheme. It did not name the investor
work on a three-well drilling programme in the but said that the parties had already successfully
vicinity of the Amersfoort coal-bed methane concluded the due diligence process. “[A] deci-
(CBM) collection terminal south-east of Johan- sion to invest has been made, and formal docu-
nesburg early in the fourth quarter of 2021. mentation is now being produced,” it said in the
In a statement published last week, Kinetiko statement.
reported that it had selected the three drilling The company also reported that it was gear-
sites and named them as KA-03PT7, KA-03PT8 ing up to launch the fourth high-resolution
and KA-03PT9. It also said it had started prepar- aero-magnetic survey of its acreage. The survey
ing the drilling pads that will be used to sink the will cover 13,479 line km over an area measur-
new wells. All three of the wells will be within 400 ing 564 square km within the ER 270 and ER
metres of the Amersfoort terminal, which will 272 blocks before the end of October, it noted.
handle CBM from the ER 38 and ER 56 blocks. (ER 270 lies directly to the south of ER 38, while
As of press time, the Australian company had ER 272 will be north-west of the Amersfoort
not yet named its drilling contractor. It stated, terminal.)
though, that it was in negotiations with several Kinetiko went on to say that it had recently
Botswana and South Africa-based companies. applied for production rights at a newly con-
Additionally, it said it had “sourced casing for solidated block known as ER 271. It stated that
three well sections per borehole, with a qualified securing this licence would help streamline
threading supplier ready to fabricate connec- its development plans by eliminating the need
tions,” and was “contracting a specialist cement- to submit multiple applications for produc-
ing supplier to ensure 100% well integrity.” tion rights. (The newly consolidated block lies
In the meantime, Kinetiko is also making between ER 38 and ER 56, serving as a “land
progress in negotiations with a South African bridge” between the two blocks, according to
institutional investor on funding for a pilot CBM information posted on the company’s website.

P8 www. NEWSBASE .com Week 37 16•September•2021