Page 7 - AfrOil Week 27
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AfrOil PiPElinEs & tRansPoRt AfrOil
Lagos pipeline explodes
niGERia
AN explosion in a Lagos suburb at a pipeline has le at least eight people dead. A product pipeline in the Ijegun area, to the north of Lagos, spilled and then ignited on July 4. A similar accident occurred in 2008 in the same area and this fol- lows a tanker re in Benu State on July 1.
e News Agency of Nigeria (NAN) quoted the National Emergency Management Agency (NEMA) as saying the Ijegun pipeline re last week had taken 17 hours to extinguish. Punch put the number of dead at eight, while there seems to have also been substantial property damage. The fire started at around 5 am and engulfed a number of homes.
Statements from the Lagos State govern- ment said the fire was near the Ijegun tank farm. e state blamed vandals for bunker- ing fuel from the pipeline. e bunkerers had moved a rst load into a tanker and were start- ing on a second when security agents appeared.
e thieves tried to ee and in so doing some fuel was spilled.
“The vandals were alleged to have set the spilled fuel on re in a bid to prevent the secu- rity agencies from apprehending them,” the state said, with the re spreading back to the pipeline that the product had been taken from. Other reports have suggested the re may have been caused by a motorist starting his engine.
At the beginning of July, a tanker exploded in the Gwer local government area of Benue, with the death toll estimated at 50, with another 70 said to be injured. e tanker appears to have broken down and villagers gathered in order to take fuel. It is unclear what sparked the re.
e 2008 pipeline explosion also damaged homes and a school, with the death toll uncer- tain. O cial sources have put the gure at 10, but others have put it higher, with the Nigerian Red Cross claiming at least 100 had died.
invEstmEnt
Africa Oil strikes South Africa entry
soutH afRiCa
AFRICA Oil has struck a deal with Azinam to take a 20% stake in Block 3B/4B, o shore South Africa, and the role of operator. Announcing the farm-out on July 3, Africa Oil said Azinam would keep a 20% stake, down from 40%, while Ricocure would retain its 60%.
e block is in the Orange Basin, covering 17,581 square km, in water depths ranging from 300 to 2,500 metres. A 3D seismic survey cov- ers 10,020 square km of the licence, which has provided information on a number of leads and prospects. BhP Billiton had previously held the area and acquired the seismic in 2012.
During the rst three years, the partners will review existing seismic, geological and engi- neering data, perhaps with some reprocessing of the 3D information. is will provide it with exploration prospects and drive the plan for the following renewal periods.
The block is on trend with an emerging Mid-Cretaceous oil play, the company said. Around the area “several key wells will be drilled by industry in the coming year”, said Africa Oil’s CEO, Keith hill. “To the north and along trend, both Total and Shell plan to drill potential play openers and at the same time are increasing their positions in other blocks adjacent to Block 3B/4B.”
e executive went on to say there were a number of prospects apparent from the 3D seis- mic that were similar to those targeted by the majors.
Azinam completed its entry into Block 3B/4B in May. e company is backed by Seacrest Cap- ital. Ricocure’s application for the licence was accepted by the Petroleum Agency of South Africa (PASA) in December 2018. Azinam and Ricocure agreed the deal in September 2018.
Africa Oil’s most important asset is its stake in the proposed Kenya development, with Tullow Oil and Total. In October 2018 it struck a deal to buy a stake in a major o shore project in Nigeria, with the intention of using this as a cash stream. Unusually, it has taken stakes in other junior explorers in order to access potential new dis- coveries, with stakes in Impact Oil and Gas, Eco (Atlantic) Oil and Gas and Africa Energy.
As part of this programme of investing in other companies, Africa Oil has gained access to the Brulpadda discovery, made by Total in South Africa, and is also involved in the upcom- ing Venus well in Namibia.
Week 27 09•July•2019
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