Page 18 - AfrOil Week 10 2021

AfrOil NEWS IN BRIEF AfrOil

Other opportunities include technical and busi- resilient, and has helped transform the country’s hydrocarbon split towards gas.
ness performance improvement capacity pro- oil and gas sector into a global success story, Transaction Highlights: Adds working inter-
grammes, collaboration with critical industry while building a reputation as Africa’s leading est 2P reserves of 113mn boe as at 31 Decem-
stakeholders for participation in relevant global national oil company. ber 2020. Adds low-cost 2021 forecast working
oil and gas events, R&D collaboration, opportu- The Minister of Mineral Resources, Petro- interest production of between 33,000-38,000
nity to benefit from the $50m Nigerian Content leum and Gas, Diamantino Azevedo, stated that boepd with an opex per barrel of less than $6
R&D Fund and opportunity to access the $350m Sonangol has contributed to the growth and per boe, with significant potential to increase
NCI Fund, particularly the $30mn Working sustainability of the country’s petroleum indus- production levels in future years. Two-thirds
Capital Product, for qualified organisations. try – thereby guaranteeing a greater return for of production from the Assets is gas weighted,
The NCDMB head gave a scorecard of the state – and has supported the participation adjusting Cairn’s current hydrocarbon split
the implementation of Project 100 so far. He of companies and national staff in the sector’s towards gas. Significant Cashflow from Opera-
reported that the first 60 Beneficiaries have ben- activities. Sonangol has been a major contributor tions (CFFO) contribution: average CFFO1 for
efitted from key interventions, one of which is to the socio-economic development of Angola. previous three reported years (2017-2019) was
the successful inclusion of 46 beneficiaries in the More recent achievements include the imple- approximately $140mn net to the interests being
supplier data base of Nigerian LNG (NLNG) and mentation of a series of reforms intended to acquired by Cairn. Enhances near-term growth
collaboration with a beneficiary on the setup of further boost sectoral success and focus Sonan- opportunities with 2C contingent resources
a technology solution Centre for Refinery and gol’s activities on its specific value chain. By working interest of 49mn boe as at December
Petrochemicals. restructuring both Sonangol and the sector and 31, 2020 to Cairn and significant exploration
The General Manager, Research, Statistics transferring the concessionary function to the potential remaining. Cairn, together with Chei-
and Development of NCDMB, Abdulmalik Hal- National Oil, Gas and Biofuels Agency (ANPG), ron, plans to finance the Acquisition with a new
ilu, confirmed that the new 40 beneficiaries were Sonangol was able to become more profita- joint acquisition reserve-based lending facility
selected through a transparent process run in ble and efficient. Sonangol’s board of directors of up to $350mn, joint junior debt facility of
two phases. He said the firms are wholly owned recently announced that the company saved, in $100mn and existing cash on balance sheet. The
by Nigerians without international affiliations 2020, $1.441bn, in which the restructuring was economic effective date of the Acquisition is 1
except for technical partnerships. a key determinant, allowing the country to sig- January 2020. Production for the assets being
The primary service areas of the beneficiar- nificantly reduce fuel imports. acquired averaged 83,000 boepd (Cairn working
ies are fabrication and construction, well and As the African continent emerges from the interest of 41,500 boepd) in 2020
drilling services, installation, hookup and com- impacts of the COVID-19 pandemic, and oil Simon Thomson, CEO of Cairn, said: “The
missioning, marine operations and logistics prices stabilise, Sonangol is prioritising produc- proposed acquisition of Shell’s Western Desert
services and materials and procurement. Other tion capacity increases, boosting international assets in Egypt is an important step in our stra-
areas of their operation are inspection, testing involvement in the hydrocarbons sector, and tegic ambition to expand and diversify our pro-
and certification, feed, detailed engineering and reinforcing its central role in the national pro- ducing asset base, bringing material reserve and
other engineering services, Health, Safety and duction of hydrocarbons. production additions and offering significant
Environment and Surveying and Positioning Africa Oil & Power, March 08 2021 exploration potential. We are delighted to be
Services. entering a country that has significant oil and gas
Chairman of the Petroleum Technology growth opportunities where the Government
Association of Nigeria (PETAN), Nik Odinuwe, INVESTMENT has created an attractive environment for inward
commended NCDMB for sustaining the Pro- investment. Our Joint Venture with established
ject 100, describing it as noble initiative that can Cairn Energy announces Egyptian operator Cheiron creates a strong part-
accelerate Local Content aspirations of govern- nership with extensive experience and comple-
ment and other stakeholders. He appealed to proposed acquisition of mentary strengths across the upstream value
the Board and other stakeholders to challenge, chain.”
engage and expose the selected companies with assets in Western Desert Cairn Energy, March 09 2021
real growth opportunities to ensure the success
of the initiative. He also requested the Board to Cairn, together with Cheiron (its consortium
collaborate closely with PETAN in the imple- partner), has announced the proposed acquisi-
mentation of Project 100. tion of a portfolio of upstream oil and gas pro-
NCDMB, March 03 2021 duction, development and exploration interests
from Shell Egypt and Shell Austria in the West-
ern Desert, onshore The Arab Republic of Egypt
COMPANIES for a purchase price of $646mn ($323mn net to
Cairn), with additional contingent consideration
Sonangol celebrates 45 of up to $280mn ($140mn net to Cairn) if certain
requirements are met. Capricorn Egypt, a wholly
years in service of Angola owned subsidiary of Cairn, will acquire 50% of
the Assets, with the remaining 50% acquired by
Africa Oil & Power would like to congratulate Cheiron. The Acquisition is in line with Cairn’s
Sonangol on reaching the impressive milestone strategy of seeking to grow, diversify and extend
of 45 years in operation. The Angolan state- its production base. The portfolio offers low cost
owned oil company has been operating since production, near-term development and explo-
1976, and despite experiencing political and eco- ration potential, provides immediate operating
nomic challenges, the company has remained cashflow contribution and adjusts our overall

P18 www. NEWSBASE .com Week 10 10•March•2021