Page 19 - AfrOil Week 12 2022

AfrOil NEWS IN BRIEF AfrOil

business new africa bna/IntelliNews

IPMAN submits fuel sellers’

reports on contaminated

gasoline shipments to
Nigerian government

Members of the Independent Petroleum Mar-
keters Association of Nigeria (IPMAN) have
submitted to the federal government a collection
of their reports on financial and operational set-
backs they have experienced due to the acciden-
tal import of contaminated petrol.
In the compilation of reports, which IPMAN
delivered to Abuja on March 21, all members Over the weekend, demonstrations became reflect success at this well and as a result we will
of the trade association reported that extensive even more widespread in Khartoum, with be providing updated guidance once the well is
losses and disruptions had followed the discov- crowds protesting against rising food and fuel connected and producing. The three-well cam-
ery that several cargoes of imported petrol had prices, as well as calling for the fall of the military paign aims to further exploit the potential that
contained excessively high levels of methanol. government. we see in the South Disouq area. I look forward
Local media outlet The Punch, citing sections bna/IntelliNews, March 22 2022 to updating the market further on the results of
of the reports, indicated that only a few Nigerian the SD-5X well-test and as the 2022 campaign
filling stations actually sold the contaminated progresses.”
petrol to drivers before it was removed from the PROJECTS & COMPANIES SDX Energy, March 22 2022
market. Nevertheless, it said, nearly all of the
country’s fuel retailers sustained major losses SDX Energy makes SD-5X SDX Energy produces oil
and will be seeking compensation from the fed-
eral government. well discovery at South at MSD-25 well in Egypt
The newspaper also quoted Chief John Keke-
ocha, the national secretary of IPMAN, as saying Disouq concession in Egypt MENA-focused SDX Energy commenced oil
that the accidental import of contaminated pet- production at the MSD-25 infill development
rol had forced some filling stations to suspend AIM-listed SDX Energy, the MENA-focused well on the Meseda field in West Gharib conces-
operations. These temporary shutdowns have energy company, has announced a gas discov- sion in Egypt’s eastern desert, where it holds a
contributed to lingering shortages of fuel in ery at the SD-5X exploration well which targeted 50% working interest.
some areas of the country, he said. the Warda prospect in the South Disouq devel- MSD-25 encountered the primary top Asl
bna/IntelliNews, March 22 2022 opment lease. Formation reservoir at 4,109 feet (1,252 metres)
SD-5X (SDX: 36.85% WI) spudded on March measured depth and reached 4,385 feet (1,337
Sudan raises fuel prices 4 and reached TD at 7,855 feet MD on March metres) total depth on February 22, 2022,
16, which was on time and within budget. The after drilling through 84.8 feet (25.8 metres) of
for second time in March primary basal Kafr El Sheikh target was encoun- good-quality, net oil pay sandstone with an aver-
tered at 6,973 feet MD and discovered 55.5 feet age porosity of 26.1%. The well has now been
The Sudanese authorities have raised local fuel of net pay gas sand with an average porosity of successfully perforated, tied-in to the existing
prices for the second time in March, Reuters 26.3%, all of which were in line with pre-drill facilities and flow tested, SDX said in a press
reports. Petrol prices increased to SDG672 estimates. SD-5X will now be completed, tested release.
($1.51) per litre, up from around SDG542. and tied-in via the existing SD-4X flow-line to MSD-25 is the second well in a fully funded,
Fuel prices have undergone several hikes over the CPF, and it is estimated that the well will be up to 13-well development campaign at the
the past year. Sudan had already embarked on on production in June 2022. An announcement Meseda and Rabul oilfields in the West Gharib
plans to scrap fuel subsidies during the transition concerning the results of the testing of SD-5X concession. The development drilling campaign
process derailed by last October’s military coup. will be made in due course. is aiming to grow gross production to about
The authorities also devalued the local cur- With the completion of SD-5X, the rig will 3,500-4,000 barrels per day (bpd) by early 2023.
rency last week to SDG610 against the US dollar, now move to the second well in the three-well The rig is now in the process of moving to the
worsening living conditions and lowering pur- campaign, SD-12-East on the Sobhi Field next well in the campaign, MSD-20, with spud-
chasing power for the Sudanese working class. (planned spud of mid-April). The third well in ding expected in the next two to three weeks. In
In January this year, the Sudanese authorities the campaign will be the MA-1X well targeting order to take advantage of the high oil price, a
sharply raised electricity prices across sectors, the Mohsen prospect (planned spud of mid-to- second rig will also begin operations to drill the
with households seeing an increase of about late May). MSD-24 well and accelerate the development
500%. Mark Reid, CEO of SDX, commented: “I plan, with a spud date planned for mid-April.
Sudan has been grappling with shortages of am very pleased to announce the success of SDX and its partner plan to continue to assess
basic goods – as well as new taxes and steep price the first well in the South Disouq 2022 drilling the performance of the rigs over the coming
rises for fuel, electricity and food – since army campaign and that the SD-5X well aims to con- months to determine how long both rigs will
leader Abdel Fattah Al-Burhan staged a military tribute to production by June 2022. Our pro- remain operational on the concession.
coup last October. duction guidance issued earlier this year did not bna/IntelliNews, March 20 2022

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