Page 8 - AfrOil Week 50 2019
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AfrOil PROJECTS & COMPANIES AfrOil
Nigeria LNG signs gas delivery deal, finds supplies for Train 7
NIGERIA
NIGERIA LNG (NLNG) has signed a sale and purchase agreement (SPA) with Vitol, the inter- national commodities trading giant.
Vitol said in a statement last week that the deal covered remarketed volumes of LNG from NLNG’s first, second and third production trains. The SPA provides for Nigeria LNG to supply 500,000 tonnes per year (tpy) of LNG on a delivered ex-ship basis over a period of 10 years, it explained. Shipments will begin in October 2021, it added.
As of press time, Vitol had not commented on the value of the deal. It did say, though, that the SPA would help Nigeria LNG whilst also reducing global CO2 emissions. “The agree- ment underscores NLNG’s drive ... to deliver LNG on a global scale in a low-carbon world where gas/LNG will continue to be the pre- ferred complementary energy source alongside renewables,” it said.
Reuters, meanwhile, noted that the agree- ment would also help NLNG find a buyer for production from Trains 1, 2 and 3. Several of the supply contracts covering LNG from these trains – including documents signed with Botas (Turkey), Total (France), Naturgy (Spain) and Galp Energia (Portugal) – are due to expire next year or in 2021, it said. These deals call for NLNG to deliver 2.67mn tpy.
In related news, NLNG also said last week that it had signed agreements with three joint ventures on the procurement of natural gas
supplies for the seventh production train of its gas liquefaction plant on Bonny Island. It iden- tified the ventures as Eni’s Nigerian Agip Oil Co. (NAOC), Shell Petroleum Development Co. (SPDC) and Total E&P Nigeria (TEPNG)
The signing of these agreements will help NLNG meet all the conditions for making a final investment decision (FID) in favour of building Train 7 at its gas liquefaction plant on Bonny Island.
Mele Kyari, the head of Nigerian National Petroleum Corp. (NNPC), stressed this point, saying: “NLNG Train 7 is of utmost significance to the country. Delivery [of] gas to Train 7 is key. Gas supply is one of the critical conditions to be delivered, and we can’t build the plant until we have confirmed gas supply.”
Africa Finance Corp. has teamed up with Brahms Oil Refineries (Photo: AFC)
Equatorial Guinea extends ExxonMobil’s licence for two offshore blocks
GHANA
EQUATORIAL Guinea’s Ministry of Mines and Hydrocarbons reported on December 16 that it had extended ExxonMobil’s licence for two off- shore blocks known as EG-11 and EG-06.
In a statement, the ministry said it had granted the extension in order to give the US super-major additional time to determine whether the two blocks could be developed properly. Gabriel Mbaga Obiang Lima, the Minister of Mines and Hydrocarbons, stressed this point, saying: “The resource potential [of] these two blocks is huge, and we want to give the operator enough time to ascertain the full commerciality of these reservoirs.”
ExxonMobil began working at Block EG-06
under a production-sharing contract (PSC) in 2015, taking an 80% stake in the site. It also signed a deal for Block EG-11 in 2017.
The US company has found crude oil in the Avestruz-1 well, which it drilled at the first block at a site around 160km from the capital Malabo. It reported the discovery in October 2017 but has yet to reach a conclusion about the commer- ciality of the licence area.
Despite the long wait, the Equatoguinean government has remained optimistic about the
two blocks. Both EG-06 and EG-11 are close to Zafiro, a legacy oilfield in the northern section
of the country’s offshore zone that lies in waters ranging from 122 to 853 metres.
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w w w . N E W S B A S E . c o m Week 50 18•December•2019
