Page 13 - AfrOil Week 27 2021

AfrOil POLICY AfrOil

Joanne Bate, the COO of IDC, also expressed industry. We are looking forward to working
optimism. “The development of the hydrogen together with Sasol in identifying and co-devel-
industry is a key enabler in South Africa’s just oping such catalytic projects. Our involvement
transition to a decarbonised future,” she com- in the development of the hydrogen industry
mented. “Hydrogen has the potential to decar- also provides opportunities to fulfil our devel-
bonise various industrial sectors. IDC intends opment mandate, which entails job creation
on getting involved in the development of those and opportunities to involve previously disad-
catalytic projects needed to develop this new vantaged entities.” ™

PROJECTS & COMPANIES
Slight delay for first gas from GTA

MAURITANIA/SENEGAL BP (UK) has pushed the target date for starting progress during the quarter, with key mile-
production at Grand Tortue/Ahmeyim, an off- stones achieved across all major workstreams,”
shore natural gas-bearing block that straddles commented Andrew G Inglis, the chairman
the maritime border between Mauritania and and CEO of Kosmos. “However, we are seeing
Senegal, back to the third quarter of 2023. cost inflation and supplier delays in the current
US-based Kosmos Energy, a non-operating environment together with some scope growth,
partner in the project, announced the delay ear- and as a result, we are updating our estimates,
lier this week. In a statement, it said that BP had with first gas now expected in the third quarter
changed the schedule in line with information of 2023.”
from TechnipFMC, the international oilfield GTA is an ultra-deepwater block that lies
services provider that is serving as the engineer- athwart the maritime border between Maurita-
ing, procurement, construction, installation and nia and Senegal. It was discovered by US-based
commissioning (EPCIC) contractor at GTA. Kosmos Energy in 2015 and is believed to hold
TechnipFMC explained the need for delay some 15 trillion cubic feet (425bn cubic metres)
by pointing out that the Chinese shipyard that of natural gas. BP joined the project in 2016,
is building a floating production, storage and and the two companies made a final investment
off-loading (FPSO) vessel for installation at the decision (FID) on first-phase production in late
block had fallen behind schedule, Kosmos said. 2018.
The shipyard, which is owned by a division of The partners intend to use gas from the
China Ocean Shipping Co. (COSCO), is report- licence area to support an LNG project. To this
edly experiencing labour shortages because of end, they have contracted Bermuda-registered
the uptick in economic activity that has followed Golar LNG to convert the Gimi LNG tanker into
the ebbing of the coronavirus (COVID-19) pan- a floating LNG (FLNG) plant with a production
demic. As a result, it will not be able to deliver capacity of 2.5mn tonnes per year (tpy). The
the FPSO by the previously agreed deadline, FLNG unit will process gas delivered via pipe-
and BP and Kosmos will have to wait to start line from the FPSO. ™
production.
These developments are not expected to
cause major delays. GTA should begin yielding
gas only about three months later than antici-
pated, Kosmos said. The company also noted,
though, that the change of schedule would cause
the cost of the project to rise. The budget for the
first phase of work at the block is on track to go
up by $100mn, it stated.
In the meantime, BP and Kosmos are mak-
ing progress in other areas. They are on track to
close the FPSO sale and lease-back transaction
before the end of September 2021 and will then
focus on efforts to refinance the loans that the
national oil companies (NOCs) of Senegal and
Mauritania took out to finance their share of
project costs. Additionally, they are working to
draw up plans for the second phase of the project
and hope to make a final investment decision
(FID) in late 2022, as previously announced.
“In Mauritania and Senegal, the Grand Tor-
tue/Ahmeyim project continued to make steady GTA contains 425 bcm of gas (Image: Kosmos Energy)

Week 27 07•July•2021 www. NEWSBASE .com P13