The Buzz: This Week in Africa
At the close of this week Brent Crude is trading at $47.73 per barrel, WTI at $45.52 per barrel and natural gas at $3.04 per million BTU (beginning of day 09 June 2017). Here are AOP’s top five stories from the last seven days.
Mega Lake Turkana Wind Project to Come Online in 2018
Kenya’s Lake Turkana Wind Farm is two months ahead of schedule, but will not come online until 2018 as the government has to install the necessary transmission infrastructure which will connect the generated capacity to end users, according to Reuters.
The wind farm will be Africa’s largest wind-fired power plant, with 131 turbines.
EG Ronda Attracts New Entrants
Six companies are moving forward with negotiations on production sharing contracts after the EG Ronda Licensing Round, launched at Africa Oil & Power 2016, concluded at Africa Oil & Power this week. In addition, ExxonMobil and the Government of Equatorial Guinea have already signed a production sharing contract, augmenting ExxonMobil’s role in the country as one of the top producers and explorers.
Negotiations for the other contracts are expected to begin by June 19 and conclude by the end of the year.
Winners are: Ophir Energy for Block EG-24; Offshore Equator PLC for Block EG-23; Clontarf Energy for Block EG-18; Elenilto for Block EG-09; Taleveras for Block EG-07; and Atlas Petroleum and Strategic Fuel Fund for Block EG-10
Total Approaches S. Sudan on PSC
Total, which formerly walked away from negotiations with South Sudan in April, is back, having approached the Government with interest in Blocks B1 and B2, said H.E. Ezekiel Lol Gatkuoth, Minister of Petroleum at Africa Oil & Power. Also involved in the discussions for B1 and B2 are UK independent Tullow Oil and the Kuwait Foreign Petroleum Exploration Company (KUFPEC)
At the same time, the Minster announced the company is open to direct negotiations, and said they are currently in discussions with companies Holdcorp and Royal Oil and Gas for Block E2 and Royal Oil & Gas for Block A4.
Potential Offtakers Announced for Fortuna FLNG
The Ministry of Mines and Hydrocarbons of Equatorial Guinea has shortlisted the offtakers of the country’s landmark Fortuna floating liquefied natural gas project, H.E. Gabriel Mbaga Obiang Lima announced this week at Africa Oil & Power. The Government is in discussions with Shell, Gunvor and Vitol to sell the 2.2-2.5 million tonnes per annum of LNG. The Fortuna FLNG project is expected to produce first gas by 2020. A final decision on the offtaker is expected this summer, before final investment decision is made.
Nigeria to Raise $1.2 Billion for Refineries
As part of the country’s efforts to reduce its dependence on refined products imports, Nigeria announced this week its plans to to raise $1.2 billion to upgrade its oil refineries. The overall goal is to end the country’s imports of refined products by 2019, according to Reuters. The country’s refining capacity stands at 6 million liters per day, despite a daily consumption of 35 million liters.