Page 9 - AfrOil Week 22 2022

AfrOil PERFORMANCE AfrOil

“These monies could have otherwise been avail- state-owned Nigerian National Petroleum Co.
able for developmental projects such as building Ltd (NNPC Ltd) submitted a report to the Fed-
of hospitals, schools, roads, provision of elec- eral Account Allocation Committee (FAAC)
tricity and portable water, etc,” he said. “More on the oil and gas sector’s performance in the
saddening and undesirable is the fact that sabo- month of April.
tage of oil and gas facilities results in additional According to that report, Vanguard stated,
remediation cost to the government as well as Nigeria extracted 1.354mn bpd of oil, equivalent
environmental degradation, soil and water to just 78% of its OPEC production quota.
contamination, threat to human life, source of The report also noted that Nigeria had
livelihood, wildlife and marine life (fishes) [and] exported some 8.8mn barrels of oil in April,
crops resulting from spills.” down by around 10% on the March figure of
The NUPRC chief was speaking shortly after 9.77mn barrels, Vanguard noted. ™

Golar LNG: Hilli Episeyo FLNG boosts

production capacity to 1.4mn tpy

CAMEROON BERMUDA-REGISTERED Golar LNG reports each of which has a capacity of 1.2mn tpy.
that the Hilli Episeyo, its floating LNG (FLNG) Golar LNG arranged to have the volume
vessel operating offshore Cameroon, has suc- of gas delivered to the FLNG increased last
cessfully raised production levels to the equiv- year under an agreement with Perenco (UK/
alent of 1.4mn tonnes per year (tpy). France) and Société Nationale des Hydrocarbu-
Golar LNG said in a statement on May 26 res (SNH), the national oil company (NOC) of
that the FLNG had succeeded in bringing out- Cameroon. Under that agreement, Perenco and
put up from the equivalent of 1.2mn tpy. It also SNH were supposed to drill and appraise two or
noted that the vessel had preserved its four-year three new incremental wells in 2021 and then
record of operating at 100% uptime, without upgrade upstream production facilities in 2022
any stoppages for accidents, in the first quarter so that they could sustain higher output levels
of 2022. into 2023 and beyond.
The statement also noted that Golar LNG The Hilli Episeyo is the first vessel in the
had earned a total of $64mn from sales of the world to be converted to an FLNG unit. Accord-
LNG produced by the Hilli Episeyo in the Jan- ing to previous reports, the ship began its life as
uary-March period. Some $15.6mn of this sum one of Golar LNG’s 125,000-cubic metre tankers
came from the Brent crude-linked portion of the and was converted to an FLNG unit at the Kep-
LNG tariff, which applied to the bulk of sales, pel shipyards in Singapore at a cost of $1.2bn. It
while another $22.6mn derived from a tariff is anchored near the Cameroonian port of Kribi
linked to Dutch TTF market rates net of com- and has been in operation since May 2018.
modity swaps, which applied to the incremental The vessel liquefies gas from the Sanaga
rise in production, it said. field, which is being developed by Perenco and
All of the LNG that the Hilli Episeyo FLNG SNH. The partners pipe gas from the field to an
vessel produces goes to Russia’s Gazprom under onshore treatment facility for processing before
a long-term off-take agreement. That agreement delivering it to the FLNG vessel, which operates
gives the state-owned Russian giant access to under an agreement that generates about $40mn
one of the unit’s two active production trains, per quarter in tolling revenues. ™

The Hilli Episeyo FLNG vessel has been operating since May 2018 (Image: Golar

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