The Buzz: This Week in Africa
At the beginning of this week Brent Crude is trading at $63.36 per barrel, WTI at $57.18 per barrel and natural gas at $2.81 per million BTU (beginning of day 11 December 2017). Here are AOP’s top five stories from the last seven days.
Tullow Oil’s Uganda Farm-Down Expected Next Year
Tullow Oil has submitted the necessary paperwork to the government of Uganda to complete its proposed farm-down of Lake Albert assets, and expects approval by June of next year, according to Oil in Uganda.
Total and CNOOC, partners in the Lake Albert Development project, will each have a 44.11 percent stake after the farm-down is complete. Total will be left with 11.76% interest in the upstream and pipeline, which will reduce to 10% when the Government of Uganda formally exercises its right to back-in.
Ivory Coast, Morocco Power Projects Get a Boost
The African Development Bank has committed $324 million in loans to back renewable power projects planned in Morocco and the Ivory Coast, with $265 supporting two solar plants in Morocco, the NOORM I and NOORM II, and the remainder going toward a hydro power project in the Ivory Coast.
The solar plants in Morocco are expected to have a total capacity of 800 MW and the hydro project is expected to generate 44MW of capacity, according to ESI Africa.
Nigeria Nets New Refinery
Petrolex Oil & Gas Ltd. has announced plans to build a 250,000-barrels-per-day-capacity refinery in Nigeria, a project valued at $3.6 billion, according to Blomberg. The FEED is currently underway and the construction is expected to be complete by 2021. The Nigerian company has already built a storage tank farm in Ibefun, Ogun state, where the refinery will also be locoated.
Mozambique Conducts Seismic Surveys
Mozambique’s Institute of National Petroleum has hired Spectrum to begin 2D seismic studies offshore Mozambique, in an effort to better understand the carbon potential between the Southern Rovuma Basin and the Zambezi Delta. The data will be used for future licensing rounds planned by INP, according to Rigzone.
Initial results are expected in the first quarter of 2018.
Total Signs New Agreements with Angola
Total and Angola’s state-owned oil firm Sonangol have signed new agreements in both the upstream and downstream sectors, including the contract terms for the continued development of Zinia Phase 2 and to jointly explore Block 48 according to Offshore Technology.
The agreements should allow Zinia Phase 2 to progress to a final investment decision.