Statoil makes another high-impact gas discovery offshore Tanzania

The discovery in the Piri Prospect is Statoil and co-venturer ExxonMobil’s sixth discovery and the fifth high-impact discovery in Block 2 offshore Tanzania. The discovery of an additional two to three trillion cubic feet (tcf*) of natural gas in place in the Piri-1 well brings the total of in-place volumes up to approx. 20 tcf in Block 2.

‘Since 2012 we have had a 100% success rate in Tanzania and the area has become a core exploration area in a very short period of time. We quickly went from drilling one well to a multi-well programme, and with Piri-1 we are continuing the success,’ says Nick Maden, senior vice president for Statoil’s exploration activities in the Western Hemisphere.

The new gas discovery was made in the same Lower Cretaceous sandstones as the gas discovery in the Zafarani-1 well drilled in 2012.

The Piri-1 discovery is the venture’s sixth discovery in Block 2. It was preceded by the high-impact gas discoveries Zafarani-1, Lavani-1, Tangawizi-1 and Mronge-1, and a discovery in Lavani-2. Piri-1 was drilled by the drillship Discoverer Americas. The well location is two kilometres southwest of the Lavani-1 well at 2,360-metre water depth. The Discoverer Americas has now moved location and is currently drilling the Binzari Prospect in Block 2.

‘Additional prospectivity has been mapped and will be tested throughout 2014 and 2015. We expect to drill several additional exploration and appraisal wells and hope that the results from these wells will continue to add gas volumes for a future large-scale gas infrastructure development,’ says Maden.

Statoil operates the licence on Block 2 on behalf of Tanzania Petroleum Development Corporation (TPDC) and has a 65% working interest. ExxonMobil Exploration and Production Tanzania holds the remaining 35%. Statoil has been in Tanzania since 2007, when it was awarded the operatorship for Block 2.

Total’s ‘ disappointment’ with Angola LNG adds to output gap

Angola LNG, a $10 billion LNG plant halted in April due to a leak, has proved to be a disappointment for Total.

“The real concern is that we are at least one year late and even much more than that in terms of start of production,” Yves-Louis Darricarrere, head of upstream, said in an interview.

Angola LNG, which produces the super-chilled fuel for spot deliveries to destinations from South Korea to Brazil, is expected to restart in the middle of next year. The plant has experienced halts since production started last June after an 18 month delay caused by several fires and accidents.

Total, with a 13.6% stake, is “missing” about 25,000 boepd in natural gas due to the halt, Darricarrere said. “It’s a disappointment, but at the same time for us it’s marginal.” The French company has sent experts to the site, he said.

The halt adds to output gaps this year for Total at Kashagan in Kazakhstan, where leaky pipelines must be replaced, and the loss of a concession in Abu Dhabi. The company targets increased production over the coming years, a goal that will be helped by the start of production at the Clov field off Angola in June, 2014.

Angola LNG was running at about 50% of planned capacity before the latest incident because the composition of the plant’s associated gas supply required additional equipment, Chevron, the operator and largest shareholder, has said.

The April incident took place during the commissioning and testing phase as part of a ramp up to full LNG production.

Chevron holds 36.4% of the project, with Sonangol EP owning 22.8%. Total, BP and Eni each hold 13.6%, according to Angola LNG’s website.

Algeria delays oil bids until September, contracts in Oct

Algeria has welcomed a proposal by foreign energy companies to delay by a month the opening of bids for its new oil and gas round initially planned for August this year, the head of the energy agency handling bids said on Monday.

In January it launched an energy bidding round with 31 fields on offer, setting bids opening for August 6. Winning firms were due to sign contracts on September 5.

“Some foreign firms asked us for more time to assess the potential of all perimeters. We have accepted their request,” said Sid Ali Betata, president of Algeria’s national hydrocarbons agency ALNAFT.

“Bids will opened in September. This decision means contracts are due in October,” he added, speaking at in a panel debate at a conference.

Russia’s Lukoil in talks with Hess over Ghana project

Lukoil is in talks with U.S. oil firm Hess Corp to buy a stake in its offshore project in Ghana, two sources close to the talks said, as part of its strategy to look beyond a closed Russian market. Lukoil, a private company that is struggling to get a foothold in new major domestic fields largely taken by state firms, has the most foreign interests of any Russian energy company.

‘Lukoil is interested in the Deepwater Tano/Cape Three Points project operated by Hess,’ one of the sources said. The project, located about 44 miles (70 km) offshore Ghana, is 90 percent owned by Hess, and the rest belongs to Ghana National Petroleum Company. Hess started pre-development studies on the block after finishing drilling its seventh well last year.

The other source said Lukoil was considering buying a significant stake but not a majority stake. Lukoil declined to comment. Hess did not immediately respond to a request for a comment.

Swala Energy requests trading halt ahead of Kenya farmout announcement

ASX-listed Swala Energy has requested a trading halt be implemented in respect of all Swala securities quoted on the ASX, pending an announcement from the Company in relation to an update of the farm-out agreement for a 25% working interest in Block 12B in Kenya, pursuant to the Company’s ASX announcement on the 10th March 2014.

The Company expects the trading halt to last until an announcement is made which it expects to occur before the commencement of normal trading on Monday 23rd June 2014.

CNOOC to drill in E. Guinea using Atwood Hunter semi

Atwood Oceanics, Inc. has been awarded a drilling services contract by CNOOC Africa Limited for the semi-submersible rig Atwood Hunter.

The contract will be performed offshore Equatorial Guinea, specifies a day rate of $337,000 for a minimum term of 90 days and includes an option for one additional well. To the extent the term exceeds 90 days the day rate for days 91 to 180 shall be $330,000. Any term in excess of 181 days shall have a day rate of $325,000. The Atwood Hunter is expected to commence the contract mid-August 2014.

In connection with this contract, an Atwood subsidiary and Guinea Ecuatorial de Petroleos 

(“GEPetrol”) mutually agreed to terminate the parties’ previously announced contract for the Atwood Hunter provided certain conditions are met.

Contractors give ExxonMobil 14 days to address alleged discriminatory contract awards

Indigenous contractors working for ExxonMobil Unlimited in Eket, Akwa Ibom, on Thursday gave the company 14 days to address lingering issue of discrimination against them in the award of contracts.  

The News Agency of Nigeria (NAN) reported that the contractors are indigenes of Eket, Esit-Eket, Onna and Ibeno local government areas, which constitute the host communities of the oil company.

The ultimatum by the contractors operating under the aegis of “Joint Core Communities Contractors Association” was contained in a letter dated June 17, 2014, to the management of ExxonMobil
In the letter by the contractors’ Chairman, Chief Friday Ebong and Secretary, Mr Godwin Eleazar, which was made available to NAN in Eket, they described ExxonMobil’s attitude toward them “as disdainful and retrogressive.”

They accused the company of oppressing local contractors in spite of their competence.
“We are competent to handle major contracts both onshore and offshore, but over the years, no meaningful contract had been given to our members.

“In line with the local content policy of the Federal Government, we, as stakeholders, deserve a better deal and partnership with the oil company,” the contractors said.

They threatened to explore every legitimate means to compel the oil company to address the “injustice” if it failed to act before the expiration of the deadline which began on Tuesday.

“ExxonMobil has the responsibility to develop and patronise indigenous contractors with quality contracts, so that they can compete with other contractors nationally and internationally,” they stated.

They alleged that the company had been evading dialogue on “mutual working relationship” with the association.

Minister appeals to labour unions over PIB

The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has urged trade unions and other critics of the Petroleum Industry Bill to prepare for the changes that will be brought about when it is eventually passed.

The minister, who was represented by Mr. Jonathan Okehs, expressed optimism that the PIB, which is currently under consideration by the National Assembly, would come with changes that would bring about the reformation of the petroleum sector.

She spoke during a workshop organised by Unite Consult in collaboration with the Nigeria Labour Congress, Lagos Branch, in Lagos on Thursday.

Among the unions present at the workshop were the Trade Union Congress, NLC, Nigeria Union of Petroleum and Natural Gas Workers, and the Petroleum and Natural Gas Senior Staff Association of Nigeria.

She said, “Today, Nigeria is on the way to assessing capital investors in a sector that hitherto has been without prospects due to policies that make investments uneconomic to pursue. It is my firm belief that the PIB embodies the essential reforms that will put the petroleum sector on the path of robust growth.

“Adhering to the transformation principles advocated in the bill, Nigeria fully expects to be a significant hub in the African region for petroleum activities.

“The global economy is changing and Nigeria must adapt to these changes in order to grow sustainable economy in the future. As a nation, we need to wean ourselves from the dependence on natural resources and to diversify the economy to other important sectors. It is, therefore, my hope that the labour movement will adapt even as Nigeria adapts to global economic realities.”

The Vice President, NLC, Mr. Issa Aremu, described the PIB as one of the most important legislation in the history of the country, adding that the bill must address seven critical issues.

He explained that the PIB must recognise and uphold the interests and welfare of the organised labour and workers.

Aremu said, “The bill must ensure that all companies operating in the Nigerian oil and gas industry comply with all international labour conventions that have been ratified by Nigeria; ensure the mandatory recognition of the right to freedom of association and effective collective bargaining by all companies operating or doing business in the Nigeria oil and gas industry irrespective of where they are located.

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