 LATEST MAGAZINE ISSUE
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Welcome to our 94th issue. We are pleased to announce the online publication of our latest magazine issue, the Local Content Edition. Please click on the link in the left side bar to read it online. We will have it printed and ready for distribution at relevant conferences within the next two weeks or so.
Our next magazine issue will focus on Technology. Do make sure you get in touch if you have any new technology for the Nigerian oil and gas industry as we will be devoting extensive editorial space to coverage of technology that is available in-country.
Should you want more dedicated coverage then email us as soon as possible to secure your space and reach thousands of industry executives who want to know about your product or service. Do get in touch quickly as advertising space is always highly sought after in our magazines. We have a limited number of spaces and once they're gone they're gone.If you are involved in the offshore world then you must attend the FPSO Africa Conference taking place from the 9th to the 11th of June at Eko Hotel. I will be speaking on Day 2 of the Conference. Contact details are in our Events Section below. We now have a section on our website for listing of Training. There is no payment for listing in our Training section if you are the organiser of the training. Please email info@NOGintelligence.com to request more information on listing your training programme.
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Afren's Q1 Output Lower than Target
London Stock Exchange listed Afren Plc has provided an operational update for Q1 of 2014. Although the company says that its Q1 production output of 35,465 barrels per day (bpd) was inline with expectations, it is nevertheless well below its target of achieving 40,000 bpd this year.
The company said in the statement that installation of the Central Fault Block (CFB) extension platform has started on Ebok and is expected to be completed by the end of Q2 2014, with development drilling planned for Q3 2014 targeting additional reservoirs in the CFB. Batch drilling has started on the North Fault Block (NFB) from the West Fault Block (WFB) platform with production to the existing MOPU.
The Okoro field continued to perform well with gross production at the field averaging 15,648 bopd in the period, incorporating planned downtime. The Field Development Plans (FDP) for the Okoro Further Field Development and Okwok were have been approved by the regulatory agencies. The Okwok wellhead jacket has been fabricated and is currently in transit to the Okwok field area, with platform installation to be completed in Q2 2014 prior to development drilling planned for Q3 2014. On OML 26 we expect the rig to arrive in June with a view to drilling three wells in 2H 2014 (two producers and one water injector).
Following the play-opening Ogo discovery, offshore Lagos, Afren completed the fast track 2,716 km2 marine 3D seismic programme across OPL 310 and OML 113 to establish the full extent of the syn-rift play and further dip-closed structures to the north and east of the Ogo discovery. Processing of the data is expected to commence shortly.
At Ebok, preparations are ongoing for a step-out exploration well, Ebok Deep, planned for Q4 2014. In Côte d'Ivoire, having negotiated additional acreage in two new blocks in 2013, CI-523 and CI-525, Afren is planning an extensive 3D seismic programme in 2014.
The financial picture for the period was a mixed bag. The company's revenue from continuing operations fell to $269 million from $386 million a year earlier. Profit however, rose to $73 million compared with $28 million in the same period last year. A finalisation of the tax situation on Ebok boosted the company's profit after it won a 5-year tax exemption.
The company nevertheless expects to gross oil production to rise to 62,000bpd in 2014 with the additional output from the three fields and from onshore Oil Mining Lease (OML) 26, which Afren and its joint-venture partners bought from Shell in 2012. A drilling rig will arrive at OML 26 in June to drill three wells in the second half of this year.
Commenting, Osman Shahenshah, Chief Executive of Afren plc, said: "Afren continues to deliver operationally on all fronts with revenues in Q1 2014 of US$269 million and operating cash flow of US$169 million. We are moving forward with the play opening Ogo discovery and elsewhere development drilling is on track. Our focus remains on allocating our capital to the highest return projects, which we expect to provide significant production and cash flow growth, while we continue to de-risk our unprecedented exploration opportunity set."
In another development, the company said it was now an Extractive Industries Transparency Initiative ("EITI") supporting company. The EITI is a global coalition of governments, companies and civil society working together to improve openness and accountable management of revenues from natural resources. It provides a robust methodology for monitoring and reconciling company payments and government revenues at the country level. NEITI is the Nigerian agency that executes the initiatives of EITI in Nigeria.
Afren said it decided to become a supporting company as it operates in a number of countries around the world that appear in in the lower half of Transparency International's Corruption Perception Index.
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Seplat AGM Postponed
Seplat has announced the postponement of its Annual General Meeting (AGM), the first after its simultaneous listing on the London and Nigerian stock exchanges. The AGM, which had been scheduled to take place on the 22nd of May, will now hold on the 30th of June at 11am. The venue is the Civic Centre in Lagos. The AGM was postponed to enable the company to comply with London Stock Exchange rules for the notice period to be given to shareholders before an AGM.
The company's accounts for the year ended 31st December 2013 will be presented at the AGM. Highlights of the accounts show that the company's revenue rose 41 per cent from N96,973 million in 2012 to N136,611 million in 2013. Profit before tax rose 56 per cent from N45,906 million in 2012 to N71,008 million in 2013.
Items on the ordinary business agenda for the AGM include the re-appoint auditors, authorization of directors to fix remuneration of the auditors, re-election of directors of the company eligible for retirement by rotation. Matters to be discussed as part of the special business agenda includes authorization of the board to fix the remuneration of directors. The company is also planning to confirm interim dividend paid for 2013 as the full and final dividend to that year.
The register of members will close on Monday 23rd June 2014 so anyone wishing to attend the AGM who is not a member has only three weeks to purchase their shares and get on the Members' Register. The 2013 Annual Report and Accounts as well as proxy forms can be found on the company website, www.seplatpetroleum.com.
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Caverton Logistics Contract With Total Extended
Recently listed Caverton Offshore Group has won a 2-year extension of its 3-year support services contract with Total Exploration and Production. The company, which listed on the Nigerian Stock Exchange in May as the first oil services company to do so, said the contract which it won in 2011 is for the operation of 4 helicopters in Total's offshore fields.
News of the contract extension, which comes just a week after the company's listing, demonstrates the positive effects of listing, which tends to boost confidence in a company's capabilities. Olabode Makanjuola, Caverton's Chief Executive Officer, said "We are pleased to continue rendering offshore and onshore oil field logistics to TOTAL. This contract extension demonstrates Caverton's service reliability and our commitment to provide safe and efficient services to our clientele. We are confident that this will positively impact our revenue over the next few years".
Even as the news of the contract extension broke, Caverton's planned expansion, following its market listing, had already begun. The company announced that it is to take delivery of a brand new AW139 helicopter, the 7th in its fleet of Agusta Westland helicopters, which will be detailed to a Shell contract won in 2010 when it commences operations before the end of the year. With this addition to its fleet, Caverton will have the largest fleet in sub-Saharan Africa.
The good news keeps coming for Caverton. The company's full year 2013 results reveal that revenue increased by 16% to N18.7 billion from N16.1 billion in the previous year. EarningsA went up by 32% to N5.9 billion from N4.5 billion in Dec 2012 while the company's net income rose by 40% to N1.9 billion from N1.4billion the previous year.
A leading provider of marine, aviation and logistics services company, Caverton listed on the NSE on the 20th of May with a market capitalisation of just under $32 billion (about N196 million) after an initial offering 3.35 billion shares of 50 kobo each.
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Obijackson Group Awaits Delivery of Nigeria's First Floating Dry Dock
The Obijackson Group, parent company of successful oil services company Nestoil, has announced that it is awaiting the delivery of a floating dry dock facility. The indigenous company says it decided to order the facility, which will be the first in Nigeria, to stem capital flight due to the necessity to take vessels out of Nigeria whenever a dry dock is needed. Most Nigerian-waters operated vessels requiring dry docking will usually go to Angola, Ghana and Abidjan.
A dry dock is a floating structure that can be partially submerged to enable vessels to be raised for repair particularly when access to the areas of the vessels below the water line is required. Floating dry docks will usually have a platform or ramp supported by pontoons, and cranes and other equipment for raising and repairing vessels. Hull repair is a very important part of the services of a dry dock facility.
Group Managing Director, Dr. Ernest Azudialu, said: "We want to bring such a facility here where all kinds and classes of vessels can be handled here in Nigeria. You know the water in Nigeria is salty and so every two years you have to raise the vessel to clean her bottom and try to coat it with epoxy and all that."
The dry dock is expected to be in operation in Nigeria by the end of 2014.
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OPEC Daily Basket Price Stood at $106.45 a Barrel Thursday, 29 May 2014
The price of OPEC basket of twelve crude is maintaining its high as it stood at $106.45 a barrel on Thursday, compared with $106.35 the previous day, according to OPEC Secretariat calculations. It reached $107.00 on 22 May.
Meanwhile OPEC's oil output rose to a three-month high in May according to a Reuters, following increased supplies from Angola and Iraq and in spite of the unrest in Libya. OPEC output averaged 30.02 million barrels per day (bpd), up from 29.68 million bpd in April the survey revealed. Nigerian output remained unchanged in spite of the lifting of the force majeure on Forcados grade.
OPEC oil ministers who are meeting on 11 June will have to decide whether to leave output at 30 million per day or increase supply following the International Energy Agency forecast of growing world demand for oil.
Introduced on 16 June 2005, is currently made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
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Preliminary Reports of Senate Investigation Find "Missing" $49.8 Billion Accounted For
A leaked preliminary report of the Senate investigation into the allegations by former Central Bank Governor, Sanusi Lamido Sanusi that the Nigerian National Petroleum Corporation (NNPC) had failed to remit $49.8 billion to the Federation Account over a 19-month period has found that the missing funds have been accounted for. Also alleged by Sanusi to be missing was an amount of $20 billion or more.
The preliminary report of the Senate Committee of Finance found that the Central Bank of Nigeria, Ministry of Finance, Ministry of Petroleum Resources and NNPC had reconciled the accounts and that the funds alleged to be missing were accounted for.
Two former governors, Ahmed Makarfi (former governor of Kaduna State) and Bukola Saraki (former governor of Kwara State) and members of the Committee are distancing themselves from the reports of the findings after saying that saying that this may not be the final report. Saraki is adamant that the report did not clear NNPC as has been widely reported in the media. He urged the public to await the release of the official report.
For Makarfi, the emphasis should be to find out where the allegedly missing sums are. The question of whether $20 billion is missing or not, he said, is not the issue. Even if found not to be missing the question is whether it is in the proper account that it should be in. However, he declined to comment further, in view of the ongoing forensic audit of the NNPC's accounts.
The preliminary report of the committee has instructed that some sums of money in NNPC accounts, which are the subject of disputes with other parties, should be remitted to the Revenue Account. Among these sums are sums for liftings by NNPC on behalf of its exploration and production arm, the Nigeria Petroleum Development Company (NPDC), expenses which NNPC says it incurred for strategic reserves and pipelines maintenance as well as subsidy for kerosene imports. These sums amount to billions of dollars.
In the report the committee was critical of the various government agencies for lack of a coordinated approach towards record keeping and reconciliation of accounts.
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NNPC Denies MEND Claim for Responsibility for Okrika Jetty Explosion
The Nigerian National Petroleum Corporation (NNPC) has been quick to deny the claims of the militant group, Movement for the Emancipation of the Niger Delta (MEND) that it was responsible for an explosion at a jetty near the Alesa Eleme refinery, which injured more than 10 people. NNPC has also dismissed claims that the refinery burnt down in the ensuing fire.
NNPC said in a statement that the initial investigation by the refinery has revealed that the explosion occurred by the jetty during an attempt by oil thieves to siphon petroleum products from pipelines near the jetty of the refinery. The two speedboats involved in the illegal operation collided which each other and caught fire. Those on the boats died in the ensuing inferno. However, refinery operations were said to have been unaffected by the fire. The jetty used by the Pipelines and Product Marketing Company (PPMC) for evacuation of products was also able to carry as normal according to the refinery.
In the statement, NNPC said: "We wish to implore community leaders in Okrika and its environs to appeal to their wards to refrain from product theft and hacking of pipelines."
NNPC confirmed that a team of engineers was being sent to the scene of the explosion for a proper evaluation. MEND however continued to claim that the explosion was due to a bomb it planted and that investigations would reveal that fragments from the bomb were similar to that used in the explosion at the Warri Refinery in October last year.
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Funso Lawal Takes over from Uduimo Itsueli as Petroleum Club Chairman
The Petroleum Club has a new Chairman. Otunba Funso Lawal was elected to the office at the Annual General Meeting (AGM) on 27th May, taking over from Dr Uduimo Itsueli, OON. The group was founded by some of today's most well known and accomplished industry figures in 2006 in an effort spearheaded by Dr G.S. Ihetu. The premises of the organisation was commissioned by then Vice President, Jonathan Gooduluck in March 2009. The Federal Government made a promise to the industry organisation that it would be consulted on serious issues concerning the Petroleum Industry. In his speech, outgoing chairman, Itsueli mentioned some of its contributions to industry agenda. The organisation was part of the Federal Government delegation to the 21st Commonwealth Heads of Government Meeting in Trinidad and Tobago in November 2009. The organisation has also been asked to make contributions to petroleum industry policy making, including the Petroleum Industry Bill. Itsueli said: We have engaged serious and committed stakeholders in the economy and we have collaborated with advocacy groups." "It is time for us to re-invigorate the Petroleum Club. It is time to strengthen our Club; it is time to rejuvenate the Club," he urged the packed AGM. Incoming Chairman spoke excitedly about his new role: ''I am honoured to be the new chairman of the Petroleum Club Lagos. I express my gratitude to members for the confidence they have in me. I promise to ensure that the Petroleum Club speaks with one voice as regards issues in the Industry." The keynote speech at the AGM was by Mutiu Sunmonu, Country Chair of Shell Companies in Nigeria, who spoke about divestments. He kept his talk general, whilst avoiding the issue on every body's mind, the ongoing Shell divestments. He did however point out that divestment by the IOCs is a private contractual matter and there is no regulatory requirement to consult the government. However, they do as a matter of course keep the government informed of any planned divestment.
Other retirees from the Board of Directors are: Egbert Imomoh and Sola Oyinlola. Other newly elected officers are: Dr. G. S. Ihetu - 1st Vice chairman, Chief Femi Adesanya - 2nd vice chairman, Chief Sena Anthony - Member, Board of Directors, Mr. Austin Avuru - Member, Board of Directors, Chief Tunde Afolabi - Member, Board of Directors and Mr. Akin Aruwajoye - Treasurer.
The Petroleum Club is now trying to boost its membership in order to be more representative of the industry. Enquiries about membership should be directed to Maureen Leonard and her email address is: maureenleonard14@gmail.com
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LATEST TENDERS
Star Deep Water Petroleum Limited: Provision of Sand Control and Simulation Services The closing date for this opportunity is 3rd June 2014. Shell: Provision of Oguta Lease Compressors Maintenance Services Closing date: 6st June 2014. Chevron: Provision of Diving Support Vessel Closing date: 9th June 2014. Chevron: Provision of Export Terminal Tugs Closing date: 9th June 2014. Chevron: Provision of Platform Supply Vessel Closing date: 9th June 2014. NAOC: Provision of ICT Spares and Consumables Closing date: 9th June 2014. NAOC: Provision of Tetra IP Network Infrastructure Closing date: 9th June 2014. Shell: Provision of Drilling Waste Management (Skips Provision and Transportation) Closing date: is 11th June 2014. NAOC: Provision of Software Solution Services Closing date: 12th June 2014. NAOC: Provision of Fibre Optics Link Services Closing date:13th June 2014. NAOC: Provision of VDC Infrastructure and Support Services Closing date: 13th June 2014. TOTAL - Provision of Helicopter Transportation Services Closing date: 13th June 2014. TOTAL - Provision of Platform Supply Vessel Transport Services for (OML99) Closing date: 13th June 2014. TOTAL - Provision of Platform Supply Vessel Transport Services for (OML 102) Closing date: 13th June 2014. SPDC - Sale of Six Helicopters Closing date: 2pm on 13th June 2014.
SNEPCo - Provision of Wellheads, Accessories and Services Closing date: 18th June. NPDC - Provision of Civil Construction and Survey Services Closing date: 20th June 2014. NPDC - Provision of Fabrication and Pipeline Repair Services Closing date: 20th June 2014. NPDC - Provision of Engineering Consultancy Services Closing date: 20th June 2014 NPDC - Provision of Facilities MaintenanceServices Closing date: 20th June 2014. NPDC - Provision of HSE Services Closing date: 20th June 2014. NPDC - Provision of Instrument and Electrical Maintenance Services Closing date: 20th June 2014. |
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Mr. Austin Avuru, MD/CEO of SEPLAT to Speak at Lagos Oil Club Event
The next Lagos Oil Club Question + Answer Session June Edition will take place on Monday, 30th June 2014 at the Oriental Hotel. The Guest Speaker at the event will be Mr. Austin Avuru, Managing Director/Chief Executive Officer (CEO), SEPLAT Petroleum Plc who will be speaking on "The Journey of SEPLAT to Global IPO Listing."
SEPLAT Petroleum Development Company PLC recently floated its shares on the London Stock Exchange (LSE) and Nigeria Stock Exchange (NSE). The dual listing is significant in many respects: the first Nigerian company to have its shares listed on both the main trading platforms of LSE and NSE and the first such listing by a foreign company on the London Stock Exchange in a decade. SEPLAT's global IPO listing signposts a new era in the Nigeria E & P market and sets the company apart as a veritable national champion.
Mr. Austin Avuru, Managing Director/Chief Executive Officer, SEPLAT Petroleum PLC has led the company to become a leading indigenous oil and gas operator in Nigeria. Under his leadership, SEPLAT has increased its production and reserves year-on-year, rising from a gross operated oil production of 14,000 barrels per day at inception to current daily production of around 60,000 barrels per day. Its three producing assets (OMLs 4, 38 and 41) have a combined proven and probable reserve in excess of 500million barrels of liquid hydrocarbon and gas reserves in excess of 1.6TCF.
The Lagos Oil Club is a network of oil and gas executives of a multi-disciplinary nature. President of the Club, Humphry Onyeukwu says: "We act to connect corporate and state players, and facilitate critical industry interests and deal flow in the global upstream, by providing unique networking forums and allied social programs for companies, governments and national oil companies within the industry and across the value chain."
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LATEST EVENTS
11th African Independents Forum
London, England
2-3 June 2014 http://www.petro21.com/events Oil and Gas Strategic Recruitment Forum Aberdeen, UK 03 June 2014 http://www.oghr.co.uk/events/recruitment Somalia Oil and Gas Somalia 9 June 2014 http://www.somalia-oil-gas.com FPSO Africa
Lagos, Nigeria
9-11 June
East Africa Oil and Gas Summit London, UK 10-12 June http://eastafrica-oil-gas.com
Refining Technology Africa
23-26 June 2014 Cape Town, South Africa http://www.refiningtechnologyafrica.com
4th Downstream Oil and Gas Expo Abuja, Nigeria 26-28 August 2014 www.oilandgasexpos.com
3rd International Downstream Conference/Exhibition on Gas, Petroleum Refining, Petrochemicals and Fertilisers
Port Harcourt, Nigeria 27th -28th August 2014 www.cgrpng.org
2nd Africa Oil & Gas, Finance and Investment Forum |
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LATEST JOBS:
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TRAINING:
Samsung Heavy Industries Intensive: Technical Training Programme
University of Port Harcourt Offshore Training Institute: M.Sc. Pipeline Engineering and M.Sc. Offshore Engineering
More details on our website
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Don't forget to join our mailing list if you haven't done so already. Remember, you won't have to look anywhere else for your weekly Nigerian oil industry updates, and it's free to join.
Best wishes 
Remi Aiyela
Editor-in-Chief
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