Page 11 - AfrOil Week 37 2019

AfrOil
NEWS IN BRIEF
AfrOil
Today in Abuja, the general manager of the NNPC Group’s Public Affairs Division, Ndu Ughamadu, stated that Musa Sarkin-Adar, the chairman of the House Committee on Petro- leum, Upstream, had made this known on Wednesday while touring the NNPC Pavilion at the ongoing 24th World Energy Conference in Abu Dhabi, United Arab Emirates.
Sarkin-Adar, who said it was important for the legislature to lend support to the national oil company (NOC) in the overall interest of Nige- rians, also pointed out that there was need for efficient collaboration to satisfy citizens’ expec- tations. “Nigerians are desirous of getting better performance and service delivery, and all we are yearning for is to get higher productivity from oil exploration to grow revenue towards meeting the energy needs of Nigerians,” he stated.
Speaking further, the lawmaker noted that for Nigeria to catch up in the technologi- cal advancement witnessed in the oil and gas industry, NNPC would need the support of all stakeholders. He stated that his committee was determined to deploy result-oriented strategies in handling the challenges facing the energy industry in Nigeria.
Describing the current leadership in the NNPC as visionary, Sarkin-Adar described the transparency initiative implemented by Mallam Mele Kyari, the general managing director, as a positive sign for the corporation. “I am delighted with the GMD’s Transparency, Accountability and Performance Excellence (TAPE) agenda to drive the oil and gas industry. I am encouraged that we are having somebody with foresight and somebody who is ready to move the corporation from where it is to the next level,” he said.
In a similar development, Dr Matar Alneyadi, the chairman of the organising committee of the 24th World Energy Congress (WEC), com- mended Nigeria for its active participation at the triennial conference, stressing that the country remained an important player in the oil and gas business at both continental and global level. NNPC, September 13 2019
Chad is teaching a lesson about oil
Chad’s rig count has been surprisingly high for a year now, in a country that produces only about 100,000 bpd. With seven rigs deployed on its ter- ritory since September 2018 according to Baker Hughes GE, Chad counts more rigs than most African petroleum provinces. It is more than Angola, sub-Saharan Africa’s second largest producer of oil. It is almost more than Congo, sub-Saharan Africa’s third largest producer. The list continues: It is more than Gabon, Cameroon or even Equatorial Guinea.
The reason: Chad is drilling. In efforts to
expand exploration and boost domestic pro- duction, the land-locked Central African nation is proving that focusing on basics is a recipe for success. Drilling efforts have translated into increased production and oil revenues, despite several industry setbacks.
The recovery of Chad’s economy and petro- leum sector after the recent plunge in oil prices has not been a smooth journey, to say the least. Chad has Africa’s 10th largest proven oil reserves, but its output has been slipping in recent years due to maturing fields and disruptions caused by the conflict with Boko Haram in the southwest. Lower commodity prices have added another layer of complexity to an already very intricate situation and have put the economy in jeopardy. Hopes brought by the renegotiation of the coun- try’s debt with Glencore and the rebound in oil prices were short-lived. In 2019, both Exxon- Mobil, which produces a fourth of the country’s oil, and Glencore, which represents about 9% of Chad’s production, announced plans to sell their assets in the country.
But as two of its biggest operators prepared their exit, Chad welcomed new ones and did not lose focus on bringing out what former minis- ter Me Béchir Madit had then called a “second golden age of oil between the end of 2019 and 2025.” To ensure the growth of its industry, Chad launched the construction of the mini Rig-Rig refinery in 2017 to address the domestic short- age of petroleum products, granted several new fields to the CNPCIC in the Bongor Basin, wel- comed new operator United Hydrocarbons and renegotiated its debt with commodity trading giant Glencore in 2018.
As oil prices started rebounding, good news came along. Taiwan’s Overseas Petroleum and Investment Corporation completed its exploita- tion platform and connection pipeline to the Kome centre, while Petrochad developed its Krim-Krim wells. The Société des Hydrocar- bures du Tchad (SHT), the country’s national oil company, also made progress on the devel- opment of its Sedigui field by signing a contract with a Sino-British consortium for the construc- tion of a gas pipeline, gas treatment facility and gas terminal in Djarmaya.
In just two months, between July 2018 and September 2018, the number of rigs deployed in Chad went up from only one to seven, accord- ing to Baker Hughes GE. That’s a considerable jump in such a short time, especially since most of its neighbours were still dealing with a drilling shortage.
For a year now, Chad has had more rigs deployed on its territory than most other Afri- can markets, revealing sustained drilling activity that has now translated into numbers. As drilling activity has picked up, production has increased, and so have revenues.
According to the latest reports of the Ministry
of Finance and Budget, Chad’s oil production and oil revenues have witnessed considerable increases in 2019 so far. In the first quarter, oil revenues rose by over 64% compared to the same period last year, led by an increase in production by over 18%, most of it due to the CNPCIC, and thanks to a better foreign exchange rate. The second quarter confirmed the trend. During this period, oil revenues increased by another 38.6%, while oil production went up by 23%, again led by the CNPCIC, which has witnessed a growth of production by over 45% this year so far. Between January 2019 and June 2019, Chad produced 22,791,749 barrels. On a daily basis, that’s an average of 126,000 bpd, a very healthy figure for a state where 70% of revenues come from oil exports.
The improved situation in Chad explains why the acquisition of ExxonMobil’s 40% stake in the Doba Basin has become a source of intense bid- ding and negotiations. It also explains why the country’s economic forecast are bright. In 2019, the IMG predicts Chad’s economy to grow by 4.5%, well above the world’s average of 3.3%. When many African oil nations struggle with a slow recovery, Chad reminds us that a successful energy strategy is a no-brainer, and drilling must beapartofit.
Africa Energy Week, September 13 2019
SERVICES
ION announces new 2D
multi-client program
offshore West Africa
ION Geophysical today announced a new 2D multi-client program offshore West Africa. The industry-supported NamibeSPAN program cov- ers the underexplored Namibe basin offshore southern Angola. The dataset integrates ION BasinSPAN programmes in the area, forming a contiguous regional exploration framework in excess of 65,000 km along the West African coast.
The programme is the conjugate tie with off- shore Brazil. The extension of the programme into the Namibe basin provides valuable insight along both margins and is a framework to iden- tify known discoveries as potential exploration analogues. ION expects acquisition to begin imminently, with initial deliverables available for the upcoming license round later this year.
“Angola passed several petroleum laws in 2018 to make the legislative and fiscal terms more favourable for investment and to prevent an anticipated decline in oil production,” said Joe Gagliardi, senior vice president of ION’s Ventures group.
Week 37 17•September•2019
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