Page 19 - AfrOil Week 50 2020

AfrOil NEWS IN BRIEF AfrOil

The West African Gas Pipeline intersects the the Company has in the past been able to receive markets.
northwest part of the licence. There are currently multiple extensions on outstanding payments Eni has been present since 1981in Algeria,
five partners in the licence: Yinka Folawiyo and remains hopeful of a mutually acceptable where currently operates 32 mining permits and
Petroleum Co. Ltd, New Age Exploration Nige- solution being reached between the Parties. To where its equity production is 80,000 barrels of
ria Ltd, Pan Petroleum Aje Ltd (whose interest finance the appraisal programme, the Company oil equivalent per day (boepd), making it the
was recently acquired by PetroNor ASA), EER has explored and is in constructive discussions most important international company operat-
and ADM. with potential financiers to provide a combi- ing in the country.
In February 2020, ADM entered into a sale nation of cost effective vendor and alternative Eni, December 10 2020
and purchase agreement with EER to acquire, financing solutions. A further update will be
subject to certain conditions, a participating provided to shareholders when appropriate.
interest of 2.25% from EER in the Block. Follow- LEKOIL, December 11 2020 PERFORMANCE
ing the receipt of DPR ministerial consent, these
conditions have now been met and the title can Tanzania: Wentworth
be transferred to the Company subject to admis- COMPANIES
sion of the consideration shares noted below. Resources provides
ADM Energy, December 10 2020 Algerian minister,

Sonatrach CEO meet operational update
FINANCIAL AIM-listed Wentworth Resources, the inde-
pendent, Tanzania-focused natural gas produc-
LEKOIL reports on payments with the head of Eni tion company, has announced an operational
The Algerian Minister of Energy, Abdelmadjid update.
to Optimum Petroleum Attar, met the Chief Executive Officer of Eni, Highlights: The health and safety of our
Claudio Descalzi, today in Algiers to take stock employees is always our priority and robust pre-
Development Co. of the company’s activities in the country, future cautionary measures remain in place to ensure
projects and to discuss the energy transition, the continued safety of our staff; to date, there
LEKOIL, the oil and gas exploration and produc- central to Eni’s new strategy. have been zero reported cases of COVID-19 at
tion company with a focus on Nigeria and West Descalzi also met with the CEO of Sonatrach, Mnazi Bay. Mnazi Bay continues to remain fully
Africa, announces that its wholly owned sub- Toufik Hakkar. During the meeting, an agree- operational with no adverse impact on supply
sidiary Mayfair Assets and Trusts has received a ment was signed detailing the roadmap for a new from the pandemic; 2020 annual production
letter from Optimum Petroleum Development hydrocarbon contract in the southern area of the guidance remains on track to average 60-70mn
Co., the Operator of the OPL 310 Licence, com- Berkine Basin, under the aegis of the new Alge- cubic feet per day (gross). As projected, produc-
municating its enforcement of the default clause rian oil law which came into force in December tion volumes were higher in Q-2020 at 68.8mn
which specifies the conditions for establishing 2019. cubic feet per day (gross) compared to 58.3mn
default contained within the Cost and Revenue The agreement falls within the memorandum cubic feet per day (gross) for H1-2020, due to
Sharing Agreement (CRSA). of understanding aimed at collaboration in the increased demand as a result of the lifting of
Optimum have conveyed its enforcement upstream sector signed last July and has the goal COVID-19 restrictions; production volumes
of the default clause, as payments of $6.6mn, to of creating a new gas and oil development hub have also risen during Q4 2020. Mnazi Bay is
cover the portion of sunk costs and consent fees, in the region through synergies with the existing well-positioned to supply increased gas volumes
have not been received by November 30, 2020. In assets of MLE-CAFC (Block 405b). and support incremental demand growth as
addition to these fees, Optimum highlighted that Hakkar and Descalzi agreed to implement seen in Q4 2020 and expected in 2021, with the
Mayfair, has also not made payments in excess a programme for relaunching exploration and capacity to supply volumes of 100mn cubic feet
of $1.0mn to cover general and administrative development activities in the area through opti- per day (gross)
costs for the year as agreed within the CRSA. mising existing infrastructures and to accelerate Katherine Roe, CEO, commented: “The
Pursuant to the CRSA, the default clause stipu- the speed with which its solutions are brought safety and wellbeing of our employees continues
lates that following a cure period, if a default has to the market by leveraging on the local content, to be our number one priority, and we’re pleased
occurred, Optimum and Mayfair shall jointly replicating the model already adopted success- that Mnazi Bay has remained fully operational
seek and agree on a buyer to whom Mayfair’s fully for the Berkine Nord project. since the pandemic with no COVID-19 cases
17.14% Participating Interest as well as all the Hakkar and Descalzi also reiterated their to date, a safe and healthy crew and no adverse
financial obligations within OPL 310 will be willingness to collaborate in other areas through impact on supply. Our annual production guid-
transferred. staff training, research and development, tech- ance range remains unchanged at 60-70mn
The Company continues to discuss with nology transfer, renewable energy and other cubic feet per day (gross).
Optimum, a deferment of these payments as the fields linked to the gas and petroleum products “We continue to operate a robust and resil-
Company intends to focus its financial and other ient business due to stable production and reli-
resources in support of securing funding for the able cash flows from our long-term fixed gas
second phase of the Otakikpo development as price contracts. We are especially proud of the
well as the Ogo appraisal programme. The Com- strength of the business despite the challenging
pany, working with Optimum, has identified and macroeconomic backdrop, which is reflected
engaged an appropriate rig for the appraisal drill- in our balance sheet, with zero debt and $17mn
ing where the service provider has accepted the cash at the end of October. This has enabled us to
result of the early performed site survey. Due to return capital to shareholders totalling $4.2mn.”
a good working relationship between the Parties, Wentworth Resources, December 09 2020

Week 50 16•December•2020 www. NEWSBASE .com P19