Page 13 - AfrOil Week 37

AfrOil PIPELINES & TRANSPORT AfrOil

Sonatrach has also hired Air Products to provide reduce maintenance costs and make gas use
four of its MCR cryogenic heat exchangers for more efficient, while supporting production
the GL1Z LNG export plant in Arzew, the US levels.
company said on September 9. The exchangers, GL1Z is one of three LNG export plants in
each with a production capacity of 1.3mn tonnes Arzew and can produce up to 7.9mn tpy of the
per year (tpy), will replace four older units Air super-cooled gas. The other two facilities, GL2Z
Products fitted in the late 1970s. and GL3Z, have export capacities of 8.2mn tpy
The new models will serve as part of Air and 4.7mn tpy.
Products’ proprietary AP-C3MR propane pre- Sonatrach has another 4.5mn tpy terminal in
cooled mixed refrigerant liquefaction process Skikda, bringing Algeria’s overall export capac-
at the multi-train facility. Installing them will ity to 25mn tpy. ™

INVESTMENT
Kosmos sells stakes in African,

South American projects to Shell

REGIONAL KOSMOS Energy (US) has arranged to sell fourth quarter of 2020, it added. The transaction
its stakes in four African and South Ameri- will have an effective date of September 1.
can exploration projects to an affiliate of Royal Kosmos has previously said it expected to
Dutch Shell (UK/Netherlands). drill exploration wells in three of the four coun-
In a statement, Kosmos said it had signed an tries listed above in 2021. The Dallas-based
agreement on the sale with Dordtsche Petro- company holds stakes in Blocks 5, 6, 10, 11, 12
leum Maatschappij, a fully-owned subsidiary and 13 offshore São Tomé & Príncipe; in Block
of Shell. The document provides for the latter 39 offshore Namibia; in Northern Cape Ultra-
company to pay up to $200mn for the former’s Deep Block offshore South Africa, and in Blocks
participating interest in blocks located offshore 42 and 45 offshore Suriname.
Suriname, São Tomé & Príncipe, Namibia and According to the statement, the proceeds of
South Africa. the deal with Shell will help the firm reduce its
“The consideration consists of an upfront debt burden and fund exploration work in the
cash payment of approximately $100mn, plus US Gulf of Mexico. “Kosmos plans to use up
contingent payments of $50mn payable upon to one third of the initial proceeds to test two
each commercial discovery from the first four high-quality infrastructure-led exploration
exploration wells drilled across the assets, prospects in the Gulf of Mexico, each offering
capped at $100mn in aggregate,” the firm said. hub-scale potential with a low-cost, lower-car-
The parties hope to finalise the deal in the bon development scheme,” it said.

Kosmos Energy has stakes in six blocks offshore São Tomé & Príncipe (Image: Kosmos Energy)

Week 37 16•September•2020 www. NEWSBASE .com P13