The Buzz: This Week in Africa
At the close of this week Brent Crude is trading at $49.36 per barrel, WTI at $46.47 per barrel and natural gas at $3.24 per million BTU (beginning of day 05 May 2017). Here are AOP’s top five stories from the last seven days.
Fortuna FLNG project in Equatorial Guinea reaches umbrella agreement
The partners of the Fortuna FLNG project and the government of Equatorial Guinea reached an umbrella agreement this week on the Fortuna FLNG project, which provides the full legal and fiscal framework for the project, according to a company press release.
The key milestone sets the project up for a financial investment decision by mid-2017, one of only two such projects expected to reach FID in 2017. The agreement sets the participation of the national oil company GEPetrol at 20 percent in the upstream phase of the project, and offers a potential ownership of the 30 percent in the FLNG vessel in the future to GEPetrol, the government of Equatorial Guinea or another state-owned company.
The partners — Ophir Holdings & Ventures Ltd., a subsidiary of Ophir Energy; OneLNG SA and GEPetrol — confirmed the project is expected to reach first gas in mid-2020. The project is expected to cost $2 billion to reach first gas.
Ghana power project set for construction
The 400MW Bridge Power project planned for Tema, Ghana is slated for construction, with the first phase of the project expected to come online by the end of 2017. GE, which is supplying the equipment for the project, announced that the first phase will include five gas turbines and one steam turbine with a capacity of 200MW of power generation.
The second phase of the project will see another 200MW of power generation capacity added to the plant. The EPL Consortium, comprised of GE Power, Endeavor Energy and Sage, is funding the project, according to ESI Africa. The plant will be able to operate on LPG, natural gas or diesel fuel.
Total to build LNG Terminal project in Cote d’Ivoire
Total and its partners plan to start construction on a $130.6 million, 36 million MMBtu capacity-LNG terminal in Cote d’Ivoire in mid-2017, according to Reuters.
The project consortium, which includes Total, Shell, Golar LNG, Endeavor Energy, Azeri SOCAR Trading and state-owned companies Petroci and CI Energies, plans to make the processing facility a natural gas hub for the neighboring countries. The facility could increase its capacity to 100 MMBtu.
Africa Oil Corp. announces successful Kenyan wells
Africa Oil Corp. followed up with its January 2017 success in Kenya with two more successful wells, and a plan to extend the exploration campaign by three more wells.
The company announced the success of the Erut-1 well in Block 13T in January, and continued its exploration campaign by drilling two appraisal wells — the Amosing-6, which encountered 35 meters of net gas and oil pay, and Ngamia-10, which encountered 65 meters of net oil pay, in Block 10BB, according to Oil Review Africa.
Now, the company plans extend the appraisal campaign with an additional three wells.
Uganda oil refinery moves forward
Uganda’s plans to build an oil refinery has taken another step forward, with the government announcing it has narrowed the bidding round to construct the $4.27 billion refinery to four companies, and plans to select the winner within the month, according to The Monitor.
Plans to build the refinery stalled last year, when a Russian company, RT Global Resources of Russia, pulled out at the last minute, according to Minister of Energy Irene Muloni.