Page 12 - AfrOil Week 48 2019

AfrOil
NEWS IN BRIEF
AfrOil
uncertainties associated with the pre-financial investment decision (FID) status of the project. The valuation has been determined to be within a range, with a mid-point of $150mn, resulting in an impairment provision of $62mn against the group’s carrying value of Etinde.
Corporate: Decision to make payment to shareholders equivalent of 15 pence per ordi- nary share. Group cash balance at 30 June 2019 of $11mn with no debt. No outstanding work programme commitments. Investment of $4mn in publicly traded limited partnership interests and debt. Under the Etinde transaction, access to $25mn at FID. Ongoing control over general and administration (G&A) cost.
Key objectives are to deliver on our revised strategy in FY2020 which includes: Work- ing with our partners on Etinde development options with the aim of Etinde project FID in FY2020, having due consideration of the risk of the Etinde licence potentially expiring in January 2021. Disciplined capital management to secure progress towards FID and thereafter explore funding options regarding development capex.
Eli Chahin, Chief Executive Officer of Bowleven, said: “Our focus in 2020 will be to work with all of our stakeholders to ensure FID is underpinned by a compelling development plan, which is suitably robust to secure future capex funding during the financial year. This combined with a disciplined approach to capital, manage- ment will ensure that we are able to deliver max- imum value for our shareholders.”
Bowleven, November 29 2019
SERVICES
TGS acquires Gambia A2/A5 3D survey
TGS has announced that it has added a further 1,500 square km of 3D seismic data offshore The Gambia. This dataset will further expand TGS’
existing 3D multi-client library in the MSGBC Basin, which now totals over 40,000 square km, as well as strengthening its strong footprint in the region.
The survey falls over Blocks A2/A5, where sub-surface structures have been identified as being on-trend with the SNE discovery imme- diately north in Senegal. The dataset will be reprocessed and pre-stack merged into the Jaan program, a 29,000 square km 3D covering the prospective paleo-shelf edge.
Graham Mayhew, VP-Africa, Mediterranean and Middle East at TGS, stated: “This important data addition aligns with our strategy of invest- ing in frontier and emerging basins. We expect to see further discoveries made in this basin and believe our 3D data will be critical in provid- ing exploration companies the ability to invest further.”
TGS, December 01 2019
PERFORMANCE
Africa to double natural gas production by 2040, global consumption to double by 2050
Natural gas growth prospects were outlined during the 2nd Gas Exporting Countries Forum (GECF) International Gas Seminar on Wednesday. Opening addresses were delivered by Yury Sentyurin, Secretary General of the GECF; Gabriel Mbaga Obiang Lima, Minis- ter of Mines and Hydrocarbons of Equatorial Guinea; and María Coloma Edjang Mbengono, Mayor of Malabo, followed by a ministerial panel discussion.
The Seminar aims to facilitate knowledge transfer, foster regional cooperation and create a dialogue on global gas matters among the world’s
leading gas producers.
At the opening of the 2nd International Gas
Seminar of the Gas Exporting Countries Forum (GECF) on Wednesday, global natural gas use was slated to double by 2050; replacing more traditional fossil fuels and facilitating an energy transition towards sustainable development.
According to the GECF’s Global Gas Outlook Model, natural gas will be the only hydrocarbon source to increase its share in the global energy mix, remaining the fastest-growing fossil fuel. GECF member countries currently represent 71% of natural gas reserves, 44% of marketed gas production, 55% of pipeline gas trade and 53% of LNG trade globally.
“Our main message is that natural gas is the destination fuel and will play a central role in energy transitions. We continue and will con- tinue to defend the position of the Forum on benchmark prices, stressing that oil indexation is still the optimum choice for buyers and sellers of gas,” Yury Sentyurin, Secretary General of the GECF, said during the Seminar on Wednesday.
The African continent is set to increase its presence in the global energy sphere, more than doubling its natural gas production by 2040 and altering the global energy supply mix in the pro- cess. Africa will contribute as much as 9.2% to global natural gas production by 2040, resulting in an expansion from 255 bcm to more than 505 bcm and corresponding to a compound average annual growth rate of 3.4%.
“Natural gas will continue to be in demand and will help us meet the objectives of sustain- able development and the energy transition for our country, for Africa and for the world,” noted Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea. “We are working on the gradual implementation and exploration of various gas fields. All of the work that we are doing is in line with the policies that the international community is asking us to have for fossil fuels. We want to protect the environ- ment and provide for the needs of remote com- munities in rural Africa.”
Following the keynote addresses, a panel discussion was held on the geopolitical context of natural gas development, focusing on the necessity of infrastructure, cost competitive- ness, environmental sustainability and regional integration in capitalising on global gas reserves.
“Natural gas is growing to become the fuel of choice globally,” stated Mohammed Hossein Adeli, head of the Iranian Delegation. “The share of gas in the energy mix used to be 18%. Cur- rently, it is 23% and has the prospect to increase to 26% in the next couple of decades. Gas is replacing coal and oil. Coal represents 26% and will be down to 17-18%. Oil is now dominating at 32% and is going to be down to 25-26%. This goes mostly to gas and renewables.”
Africa Oil & Power, November 27 2019
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Week 48 04•December•2019