The Buzz: This Week In Africa

At the beginning of the week, Brent Crude is trading at $ 71.45, WTI at $66.43 and natural gas at $2.75 per million BTU (at 11:37, 16 April 2018, South Africa). Here are AOP’s top five stories from the last seven days.

SDX Energy: Gas Discovery in Egypt

North Africa focused E&P company SDX Energy has made its second gas discovery at its Ibn Yunus-1X exploration well at South Disouq in Egypt.

The exploration well was drilled to a total depth of 2,764 meters and encountered 30.7 meters of net conventional gas pay in the Abu Madi horizon, which had an average porosity in the pay section of 28.5%.

SDX Energy has a 55 percent working interest in the discovery well and will act as operator in the development.

US$4bn Oil Refinery for Uganda

Uganda has signed agreements to build a $4 billion oil refinery in the Holma district.

The project will be a joint venture between the Ministry of Energy and Mineral Development and the Uganda National Oil Company, and the Albertine Graben Refinery Consortium (composed of General Electric Oil and Gas, YAATRA Ventures LLC, Intracontinental Asset Holdings Ltd and Saipem SpA). Financing will be supported by the African Legal Support Facility.

The refinery will have a capacity of 60,000 barrels per day.

Kenya: National Oil and Schlumberger Sign Field Development Agreement

The National Oil Company of Kenya (NOCK) and oilfield services company Schlumberger have signed a memorandum of understanding to finalize a field development plan to explore new oil blocks in Kenya.

Having discovered commercial oil reserves in the Lokichar basin in 2012, the NOCK aims to boost the country’s oil and gas industry through this agreement.

In a statement seen by Reuters , the NOCK said the “FDP (Field Development Pan) will provide the government with an independent view of the development of the Lokichar oil discoveries, which will be useful in supporting the government in evaluating work already being done by investors Tullow, Africa Oil and Maersk.”

The NOCK handles the government’s interest in upstream and downstream activities. This MoU was signed on the government’s behalf.

TechnipFMC gets FEED Contract for Tortue/Ahmeyim FPSO

BP has awarded UK-based TechnipFMC a front-end engineering design contract (FEED) for the floating production storage and offloading (FPSO) unit for the Tortue/Ahmeyim Field Development on the border of Mauritania and Senegal.

TechnipFMC will work on the technology and equipment of this major LNG project and as per the agreement by both companies, transition the contract to an engineering, procurement, construction and installation contract.

BP holds a 60 percent interest in the the Tortue/Ahmeyim field and is the operator.

Shell Cuts Back on Karoo Fracking

Shell is cutting back on its exploration efforts in South Africa’s eastern, western and northern Cape Karoo citing low oil prices, legislation and regulatory frameworks among its reasons.

Shell spokeswoman, Dineo Pooe told HeraldLive “should exploration rights be awarded and a clear and supportive legislative and regulatory framework as well as competitive commercial terms be in place, the Karoo project could compete favourably within Shell’s global portfolio.”

Shell’s fracking exploration in the Karoo has been at the center of environmental and property rights debates since before licenses were issued.

September 5-7, 2018 Cape Town International Convention Centre