Page 10 - AfrOil Week 09 2020

AfrOil POLICY AfrOil
 In turn, Somalia’s federal government has dis- tributed this sum among the country’s member states, in accordance with the revenue-sharing provisions of the Petroleum Law.
In its statement, the ministry reiterated the federal government’s commitment to ensuring that all of Somalia’s member states benefitted from investment by IOCs. “The processing and distribution of this sum among the member states demonstrate the strength of Somalia’s rev- enue-sharing agreement and provide a model for future treatment of funds arising from petro- leum exploration and production,” it asserted.
It also indicated that it hoped other IOCs would follow the example of Shell and Exxon- Mobil. “The Ministry is committed to creating an attractive fiscal and regulatory environment for independent and international oil compa- nies to enter offshore Somalia,” it said.
Meanwhile, Petroleum and Natural Resources Minister Abdirashid Mohamed Ahmed described the move towards resolu- tion of the agreements signed 30 years ago as a positive development in Somalia’s campaign to attract investment in oil and gas projects.
“This gives us confidence in our ability to
explore any offshore hydrocarbon potential further. We have a long relationship with the Shell/Exxon joint venture and look forward to this continuing as we seek to provide the build- ing blocks we need to grow our economy,” he commented.
ExxonMobil and Shell obtained rights to five blocks in Somalia – M3, M4, M5, M6 and M7 – in 1990. So far, they have yet to begin work there. ™
Somalia has collected seismic data from the offshore zone (Image: Spectrum Geo)
PROJECTS & COMPANIES
Egypt’s GASCO to expand gas processing complex
EGYPT
EGYPT’S Natural Gas Co. (GASCO) has hired two local companies to expand its Western Desert gas processing plant near Alexandria.
Engineering Co. for Petroleum and Chemi- cal Industries (ENPPI) and Petroleum Projects & Technical Consultation Co. (Petrojet) were jointly awarded a contract for engineering, pro- curement and construction (EPC) services for a fourth train at the Western Desert complex, the pair said on social media.
The train will handle up to 6.2bn cubic metres per year of gas, raising the plant’s overall capacity to 15.5 bcm.
The complex will also produce more ethane-propane mix as a result of the expan- sion, providing extra feedstock for Egypt’s pet- rochemical producers. These include Egyptian Ethylene & Derivatives Co.’s (Ethydco’s) 460,000 tonne per year ethylene plant, and Sidi Kerir Petrochemicals Co.’s (Sidpec)’s 300,000 tpy facility, both in Alexandria. The project will raise production of LPG and condensate for domestic sale as well.
Furthermore, the contractors said the expan- sion would enable the complex to turn out more commercial propane, for use as feedstock at Sid- pec’s 450,000 tpy polypropylene plant, currently
under construction.
Neither ENPPI nor Petrojet disclosed how
much the expansion would cost, or a timeframe for its completion, and GASCO has not com- mented on the project either. GASCO’s share- holders include state-owned Egyptian Natural Gas Holding (EGAS) with 70%, Egypt Gas with 15% and Petrojet with 15%.
The Western Desert complex receives gas from the Badr El-Din Petroleum’s Al-Obayed and Khalda Petroleum’s Salam, Tarek and El-Qaser fields. Commissioned in 2000, it was Egypt’s first plant to produce ethane-propane as a feedstock,
Egypt is on a drive to expand its petrochem- icals sector to cover demand in a fast-growing domestic market. Earlier this month state-run Egyptian Petrochemicals (ECHEM) signed a co-operation agreement with US engineering group Bechtel, outlining plans for a $6.7bn refining and petrochemical complex in the Suez Canal Economic Zone (SCZone).
ECHEM has begun preparing a feasibil- ity study for the project with an international consultant, while Bechtel is to discuss funding with potential financiers, according to Egyptian authorities. ™
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w w w . N E W S B A S E . c o m Week 09 04•March•2020