Page 10 - AfrOil Week 18 2021

AfrOil INVESTMENT AfrOil

“We are delighted to complete our investment competent person’s report (CPR) on the Barra-
and acquire a controlling interest in a risk-shar- cuda field within the next few months.
ing agreement for the development of the Barra- Once this report is ready and more techni-
cuda field,” he said. “The expectation is for [the] cal appraisal work has been done, the partners
Barracuda field to come on stream later this will launch a drilling programme and build a
year, following the drilling of a new well, which, pipeline.
if successful, should give ADM a considerable The drilling campaign, which calls for six
increase in production volumes and cashflows. more wells to be drilled at the field by 2026, will
With the potential for several new wells in the raise production to 23,000 bpd, while the pipe-
coming years, we believe this investment and the line project will reduce operating costs from
Barracuda field represent a compelling opportu- $20 per barrel to $12 per barrel by establishing
nity to add significant value to ADM.” a 12-km conduit between Barracuda and the
The Nigerian company went on to say that Brass Export Terminal, an offshore facility in
shareholders in the project expected to receive a the Niger River Delta. ™

Egypt’s IPR Wastani will take Dana Gas

to arbitration for cancelling asset sales

EGYPT EGYPT’S IPR Wastani Petroleum, part of Tex- decided to maintain and operate the onshore
as-based IPR Energy Group, is taking Dana Gas assets in Egypt by itself, alongside the offshore
of the UAE to arbitration for the cancellation of a Block 6 concession.
sale and purchase agreement (SPA) that covered IPR Wastani Petroleum’s request for arbitra-
the latter company’s onshore oil and gas assets tion disputes Dana Gas’ right to scrap the SPA
in Egypt. both sides reached last year.
The deal, which was worth $236mn, was not However, the UAE-registered is claiming it
completed by April 14, the deadline stated in the was in a legal position to cancel the sale. It has
SPA. Dana Gas said last week that a number of said that it is “very confident” of its legal posi-
conditions needed to close the deal could not be tion and of its right to cancel the SPA and would
completed by that date. As a result, it said had defend itself during the proceedings. ™

PERFORMANCE
NOC to get $233mn for service payments

LIBYA LIBYA’S National Unity Government has allo- after lifting force majeure status on the Hariga
cated LYD1bn ($233mn) to enable National Oil oil export terminal, which has a throughput
Corp. (NOC), the national oil concern, and its capacity of 120,000 barrels per day (bpd). This
subsidiaries to pay for arrears owed to contrac- move should pave the way for operating com-
tors in an effort to restore unproductive oilfields panies located in the eastern of the country to
and associated transport and export infrastruc- resume production and exports and generat-
ture back to operational status. ing the money needed to make payments to
The government is keen to bring the coun- contractors.
try’s oil production and export facilities back on Lastly, NOC was asked to select a specialised
stream to replenish the treasury. However, it is global oil services company to audit the status of
also giving priority to covering the payments all oil facilities, including surface facilities, wells
owed to Libyan service companies. and reservoirs, to preserve national assets.
Last week, NOC was instructed to list the Libya’s provisional National Unity Govern-
obligations that all of its production units had ment was formed on 10 March, 2021 to unify the
accumulated to service providers, especially rival Government of National Accord (GNA)
Arabian Gulf Oil Company (AGOCO), Sirte Oil based in Tripoli and the second Al-Thani cab-
Co. (SOC) and Ras Lanuf Oil and Gas Process- inet based in Tobruk. It has a mandate until
ing Co. (RASCO), in preparation for making a December 24, when presidential and legislative
payments schedule within two months. It did so elections are expected to be held. ™

P10 www. NEWSBASE .com Week 18 05•May•2021