Page 17 - AfrOil Week 11 2023

AfrOil NEWS IN BRIEF AfrOil

business new africa bna/IntelliNews

Commenting, Graham Lyon (Executive Chair- therefore not be carried out, without following by Eroton and with no financial support from
man), said: “The Phase 2 senior debt process is the process provided in the JOA. its partners.
continuing to move forward favourably. It is a Eroton has issued a notice of arbitration to Eroton further states that the allegations
significant and complex undertaking for all par- NNPC and Sahara in accordance with the terms of improper actions by it are baseless and
ties involved, and I am pleased that the level of contained in the JOA to defend its legal rights. unfounded and categorically denies any fraud-
engagement that we have with Attijariwafa Bank Furthermore, Eroton has received a legal opin- ulent acts as stated in the in certain press reports.
and our respective legal, tax and technical advi- ion that it continues to remain as operator pend- San Leon Energy, 13 March 2023
sors is very collaborative and positive. I am sure ing such resolution and that this will be upheld
all stakeholders support the construction of a by the courts of Nigeria. Eroton further notes
robust, well structured financing arrangement. that the action taken by NNPC and Sahara sets POLICY
We look forward to providing further updates as a damaging precedent in the oil and gas indus-
the process moves forward.” try in Nigeria because due process has not been Egypt and Germany activate
Sound Energy, 15 March 2023 followed.
Eroton took over operatorship of OML 18 green energy co-operation
San Leon Energy comments in 2015 with a production of 6,000 bpd and agreement
increased production to over 50,000 bpd of
on operatorship of OML 18 dry crude (75,000 bpd of gross liquids) in less
than 24 months. Eroton was also recognised by Egyptian Petroleum Minister Tarek El Molla and
San Leon, the independent oil and gas produc- NNPCL as being one of the two operators with German Deputy Minister of Economic Affairs
tion, development and exploration company the lowest technical cost per barrel in the indus- and Climate Action for Parliamentary Affairs
focused on Nigeria, notes the press release try over that time period. This performance con- Stefan Wenzel heading a large delegation of
published in Nigeria by Eroton Exploration & tinued until the wider industry became severely German companies for green energies, technol-
Production Co. on March 13, 2023, about its impacted firstly by COVID-19, and then by the ogy and infrastructure held the first meeting of
ongoing operation of Oil Mining License (OML) unprecedented level of crude theft and sabotage Higher Committee for Energy Cooperation in
18. This press release is in response to press spec- plaguing the Niger Delta area since 2020. Cairo.
ulation in Nigeria last week. San Leon’s economic Since Q4 2021, the Government of Nigeria The two sides are having extensive dis-
interest in OML 18 is not impacted by a possible has received virtually zero crude oil from any cussions on steps on activating co-operation
change of operatorship of OML 18. company utilising the Nembe Creek Trunk Line between them in the fields of LNG, hydrogen
In its press release, Eroton has emphasised (NCTL), a pipeline that is partially owned by and green energies in light of the memorandum
that it remains the operator of OML 18 in line NNPCL, owing to the force majeure declared by of understanding (MoU) signed between the
with the provisions of the Joint Operating Agree- the NCTL operator and the widespread vandal- two sides last November.
ment governing OML 18 and has made the fol- ism and crude oil theft recorded in the region. Germany earlier pledged €285mn ($304mn)
lowing points: These criminal activities in the Niger Delta are to Egypt’s Nexus of Water, Food and Energy
The purported attempt by the non-operators well known and continue to adversely affect the (NWFE) programme to establish a virtual dis-
of OML 18; NNPC Ltd (NNPCL) and Sahara entire region. For example, Eroton’s crude oil tribution corridor for green energy across Egypt.
Field Production Ltd (Sahara) (now known as receipts dropped steadily in 2021, culminating This approach allows for the utilisation of green
OML 18 Energy Resource Ltd) to appoint NNPC in zero receipt in November 2021 at Bonny Ter- electricity produced in various regions of Egypt,
Eighteen Operating Ltd as operator of OML 18 minal. This was despite efficient wellhead pro- such as Upper Egypt, to facilitate the production
is a breach of the JOA as any dispute whatsoever duction data showing produced volumes of over of green hydrogen in the Red Sea area.
between the parties must be addressed by the 500,000 barrels of oil for the same month. Con- During the meeting with his German coun-
dispute resolution provisions of the JOA. There sequently, and in agreement with its partners in terpart, El Molla noted that Egypt is in the
can be no removal of an operator without follow- OML 18, Eroton shut in the wells. process of announcing its national strategy for
ing these procedures and the process is designed Eroton subsequently undertook an alter- hydrogen production in the near future.
in such a way that notice requirements cannot be native means of evacuating its crude oil from bna/IntelliNews, 14 March 2023
waived, and the removal of an operatorship can OML 18 using barges, a project funded entirely
Nigeria’s oil sector calls for

fuel subsidy removal and

industry deregulation

Nigeria’s downstream sector operators have
called on the West African country’s next presi-
dent, Bola Ahmed Tinubu, to remove fuel subsi-
dies and deregulation.
The Major Oil Marketers Association of
Nigeria (MOMAN), Petroleum Retail Outlet
Owners Association of Nigeria (PETROAN)
and Independent Petroleum Marketers Asso-
ciation of Nigeria (IPMAN) also urged Tinubu
to take steps to attract more investment into the
sector.

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