 LATEST MAGAZINE ISSUE
Click to read
|
 Click to read
|
|
|
|
|
Welcome to our 101st issue. I would like to extend my thanks to all those who sent congratulatory messages to us for achieving our milestones. Thanks to all of you.
LAST CHANCE!! This is your last opportunity to take out an advert in our next edition, the Technology Edition. We will be devoting extensive editorial and advertorial space to coverage of technology that is available in-country. Do make sure you get in touch if you have any new technology for the Nigerian oil and gas industry
|
Crude Oil Production Averaged 2.26 Million bpd in Q1 2014
Despite the Government's often-touted intention to increase production to 4 million barrels per day, Nigeria's crude oil output in Q1 of 2014 recorded a drop in production over the corresponding period in 2013, according to the National Bureau of Statistics. Production in Q1 of 2014 was 2.26 million barrels per day (bpd) a drop of 30,000 barrels compared to the 2.29 million bpd it achieved in the same period in 2013. The picture has improved from the end of last year, however, when production had dropped to 1.87 million bpd.
As a result, the Bureau said, the growth rate of real GDP was recorded at 6.21% in Q1 2014, higher than 4.45% recorded in the corresponding quarter of 2013.
Back to top
|
Sahara Group Doubles 2P Reserves in OPL 274
The rising success of Nigerian independents continues with the announcement that Sahara Group has completed its third well in onshore Oil Prospecting Licence (OPL) 274 with very encouraging results. The company, which operates OPL 274 through its wholly owned exploration and production subsidiary, Enageed Resources, has completed the third of a three-well drilling programme on the block. After testing, the company says it has now doubled its certified 2P reserves on the block, although the statement failed to confirm the amount. The drilling rig used in the drilling programme, HPEB-187 has now been demobilised. The block is operated under a Production Sharing Contract.
Sahara had already drilled two successful appraisal wells, Oki-Oziengbe South 4 and 5 before its latest Oluegi-1 exploration well on Oki-Oziengbe South Field. Oki-Oziengbe South 4 drilled directionally to TD at 12,520 feet MD 1.1 km SW from the well head, logging 211 feet of net pay in 13 hydrocarbon bearing zones, seven of which were new. The well flowed 43-44° API oil to surface on two tests at rates of 2400 and 3200 barrels of oil per day, with no water, on a one-half inch choke. Oki-Oziengbe South 5 also drilled directionally, to TD at 12,873 feet MD 1 km south of the well-head. It logged 298 feet of net pay in 19 reservoirs, 15 of which were oil-bearing and seven of which were new.
The latest in the trio of wells, the Oluegi-1 exploration well was drilled directionally to a total depth (TD) of 14,887 ft. measured depth (MD) with a horizontal displacement of 2.7 km north of the well head and encountered five hydrocarbon zones, totaling 110 ft. of net pay. The new commercial discovery in Oluegi-1 has doubled the company's 2P reserves.
Sahara's successful drilling program followed a two year-long, two-phase, land-swamp 3D seismic survey in the 871 sq km license. Sahara's seismic and drilling program. The company says it achieved nearly two-million man-hours LTI-free operation.
The company explained that they had managed to drill all three wells back-to-back in just 10 months all of which discovered commercial hydrocarbons and tested first oil at rates in excess of 5600 barrels of oil per day.
Sahara now plans to tie-into existing facilities, allowing them to begin first oil production. Four flow lines from Oki-Oziengbe South 4 and 5 well-heads will take crude to the Oziengbe South flow station for crude processing. When completed and flowing, oil from Oziengbe S will join NPDC's 6 inch pipeline at Oredo and Ogharefe where it will enter the Forcados trunk line.
Sahara's CEO and MD Tonye Cole said of the remarkable achievement: "This portends well, with years of future drilling activity ahead and sustained growth for Sahara's Upstream."
Up till now, Sahara had been known mainly for its downstream footprint as one of the country's largest independent suppliers of petroleum products. Now, as is the case with some other downstream giants, the company is looking to increase its upstream footprint after following an aggressive drilling campaign over the last year. Their efforts seem to be paying off.
Sahara Group also has a 26 per cent interest in deep water OPL 286, a 51 per cent interest in Tskelewu marginal field on oil Mining Lease (OML) 40, and Block 5 in the Nigeria-Sao Tome Join Development Zone.
Back to top
|
Mart Resources Provides Operational Update
Nigeria-focused Toronto Stock Exchange listed Mart Resources, partners to Midwestern Oil and Gas and Suntrust Oil has given an update on its operations in Nigeria. The company, which has interests in the Umusadege onshore marginal field, located within Oil Prospecting License (OPL) 283 is the technical and financial partner of Midwestern Oil and Gas and Suntrust Oil in the operations.
In its July operational update, Mart said the Umusadege field production averaged 6,793 barrels of oil per day ("bopd") during June 2014 based on calendar days while the average field production based on production days was 10,871 bopd during the same period.
Net deliveries into the export line from the field were approximately 203,786 barrels of oil ("bbls") in June 2014 before pipeline losses and approximately 157,433 bbls after deducting pipeline and export facility losses.
Pipeline and export facility losses reported and allocated to Mart and its co-venturers for May were 73,237 bbls, or 22.7% of total crude oil deliveries into the export pipeline whilst aggregate downtime during in June totaled approximately 11.3 days.
Drilling which has been continuing in the UMU-3 side-track horizontal well is now completed and flow testing from the VI sand will begin shortly. The rig is being moved to the UMU-4 location for a horizontal side-track well targeting a completion in the VII sand.
Crude from the Umusadege field is currently being purchased by Ente Nazionale Idrocaburi (ENI) under a Crude Sale and Purchase Agreement and exported through the Brass Terminal. Mart and its co-venturers are however constructing a second independent export pipeline (know as the Umugini Pipeline) to enable to increase capacity. The Umugini pipeline will connect the Umusadege field to the Shell export pipeline, which will deliver Umusadege crude to the Shell Forcados terminal. Negotiations regarding the crude handling agreement with the export pipeline owners and terminal operators are continuing.
Turning to the Umugini pipeline, the company said that the construction and tie-in are nearing completion. Pressure testing of the 23- and 28-kilometer sections of the pipeline is now complete after delays in obtaining work permits and specialty pipeline equipment were resolved. Planning for the commissioning, start-up and operation of the pipeline including finalization of the Crude Handling Agreement is ongoing. Midwestern, which is managing the construction and operation of the pipeline, is targeting a completion date in late July or August 2014.
The Umusadege field is a multiple-horizon hydrocarbon reservoir situated in the North Central area of the Niger Delta basin. The field contains 24 known reservoir sands. Mart Resources farmed into the field in 2006.
|
OPEC Daily Basket Price Stood at $105.04 a Barrel Thursday, 17 July 2014
The price of OPEC basket of twelve rose to $105.04 a barrel on Thursday, compared with $104.44 the previous day, according to OPEC Secretariat calculations. This is the second consecutive day of the basket price rising after the market saw a continuous drop over the last few weeks.
The new Organisation of Petroleum Exporting Countries (OPEC) Reference Basket of Crudes (ORB) is 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).
|
Seplat Net Profit Up 400 Per Cent
Seplat Petroleum Development Company has held its first Annual General Meeting (AGM) since its dual listing in London and Nigeria. The company declared a net profit after tax of $550.3 million for the financial year ended December 31, 2013 compared with $109.1 million in the corresponding period in 2012. This represents an increase of 404 per cent.
The company's increase in profit is underpinned by a tax waiver which saw the company's tax burden go from $95.4 million in 2012 to nil in 2013 after they qualified for a 5-year pioneer status under a Nigerian Investment Promotion Commission incentive scheme. The company's operating profit rose 45 per cent from $329.9 million to $478.7 million in the review period.
The all round performer explained that operated crude oil production had grown from 11.5 million barrels in 2011 to 18.8 million barrels in 2013. Average daily production for 2013 was 51,400 barrels per day while peak production reached 61,700 barrels per day
Speaking at the AGM, Seplat Chairman, Dr. A.B.C. Orjiako said: "Seplat has continued to deliver growth holistically since inception in line with our strategy."
"We shall strive to maintain our leadership position in the indigenous E & P industry in Nigerian and focus on following our growth strategy to seek to ensure delivery of our commitment not only to capital growth but also to remain profitable and dividend-paying," he added, while declaring a dividend of N16.50 per share for the 2013 financial year.
|
New Gas Pricing Framework to Emerge in 3-4 Months
As the power industry continues to grapple with the realisation that there is a missing link in the government's plan for gas to power, the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, has given new hope to the power industry after announcing that a new pricing structure for gas will soon emerge. Speaking at the 1st Bayelsa State Investment and Economic Forum, in Yenagoa she said that the new pricing structure will emerge within 3 to 4 months. The Government's intention for the new Gas Pricing Framework is to ensure that the pricing for gas is made as competitive as possible.
She said: "We are working with the Nigeria Electricity Regulatory Commission (NERC), the Ministry of Power, and the Nigerian Petroleum Development Company (NPDC), in terms of trying to streamline what we are doing to bring gas to power in the very short and medium term. Central to all this will be the right pricing framework which will hopefully be firmly in place within the next four months or so."
The Minister added that they are also working with a number of the multinationals, predominantly Shell who have in their acreage the greatest volumes of Nigeria's gas reserves to ensure that unutilised volumes of gas reserves are made available to the various operators of the independent power plants that have come into play over the last 18 to 24 months.
Whilst the power sector may feel that something is finally being done to address the critical gas shortage, industry watchers are saying that the Minister will have to tread a fine line between keeping the prices high enough to encourage exploration and production companies to explore for and produce gas and at the same time not so expensive as to make the commodity too expensive for the gas dependent independent power plants. Many oil companies are saying that they will not produce more than they are required to under their domestic supply obligations unless the price for supplying the domestic gas market is attractive.
|
Brittania-U's Battle for Chevron Assets Heads for Supreme Court
The battle for Chevron's oil blocks is headed for the Supreme Court as Brittania-U seeks to be declared winner of the blocks, which Chevron put up for sale last year. Brittania-U is asking the Supreme Court to overrule the Court of Appeal, which had ruled against the extension of the interim orders granted to Britannia-U by a Federal High Court.
The dispute in which Brittania-U is claiming specific performance or $10billion damages for wrongful repudiation is over Oil Mining Leases (OMLs) 52, 53 and 55. The Nigerian National Petroleum Corporation (NNPC) and the Minister of Petroleum Resources are joined in the suit against Chevron and Seplat after the Federal High Court in May decided that it had jurisdiction to hear the suit. The judge also found that NNPC and the Minister were necessary parties to the lawsuit.
The dispute arose after US oil giant Chevron put up its 40 per cent share of the three OML's, part of a planned five-asset onshore divestment, for sale. The oil major, which confirmed the auction of the three onshore blocks in June 2013, was reportedly keen to wrap the process up quickly. After an initial invitation to 20 companies, Chevron had to open the process up to more companies as it was inundated with applications.
A preferred shortlist emerged in mid August enabling the preferred bidders to do more in-depth due diligence and finalise their bids. They were then expected to submit their final bids by the 30th of September and to pay 15 per cent of their bids as a deposit.
The three blocks are said to have total oil reserves of around 134 million barrels and five trillion cubic feet of gas, with the combined values of the three blocks being estimated currently at between US$500 million and US$600 million.
It soon became clear that trouble was brewing after conflicting rumours began to circulate of the winners. On the one hand, Brittannia-U was said to have won with a $1.6 billion bid for all three assets. On the other hand, three companies, working in close co-operation were said to have won the bids for the three assets. Seplat, the recently listed company that can seem to do no wrong, was said to have bid for OML 53, while Amni, recently having undergone a boardroom shuffle, was said to have bid for OML 52 and Delta State-owned Belema Oil was said to have bid for OML 55, altogether putting in a reported combined bid of $900 million.
As time went on, Chevron notified the losers, but continued to drag its feet over declaring the winners. According to Brittannia-U, it came to their notice that Chevron was communicating with Seplat. They went to court to ask to be declared winners of the auction after putting in the highest bid.
Brittania-U immediately secured a High Court injunction, preventing Chevron from transferring the assets to Seplat or any other bidder. Chevron had sought to have the case thrown out for lack of jurisdiction on the basis that it was a private commercial matter and further that it should be referred to arbitration on the basis of the confidentiality agreement signed by the parties. The court ruled that there was a triable dispute over which it had jurisdiction.
Chevron, who will no doubt prefer to see Seplat declared the winner, had appealed to the High Court against the interim injunction granted by the Federal High Court. The Court of Appeal ruled in their favour and Britannia-U is now headed for the Supreme Court to overturn the Court of Appeal decision.
|
JTF Reports Successes in Fight Against Oil Theft
The Joint Task Force (JTF), given the task of fighting the seemingly insurmountable oil theft problem in the Niger Delta under the code-name of Operation Pulo Shield has been giving an operational update on its fighting successes.
The JTF reported the arrest of 12 suspected crude oil thieves. Some were arrested whilst siphoning crude oil products from a Nigeria National Petroleum Cooperation (NNPC) pipeline at Okwagbude community in the Okpe Local Government Area of Delta State, while the others were arrested at Aziza also in the Okpe Local Government Area of the State.
In another operation, the JTF seized a barge containing unascertained quantity of crude oil at Mangbiye Creek in Sangana community of Southern Ijaw Local Government Area of Bayelsa State, although the perpetrators managed to escape.
Other troops in Igbematoro in the Southern Ijaw Local Government Area of Bayelsa State are said to have destroyed 23 illegal oil distillery camps, 18 illegal oil dumps, and 34 drums filled with stolen crude.
In another operation, a ship, MV Gare was arrested and three suspects on board handed over to Interpol by the Navy. The ship is alleged to have been used to hijack a bigger ship, MV Karela. The allegation is that in the course of the hijack, the arrested ship was used to siphon about 75 metric tons of Automated Gas Oil (AGO) worth about $10 million from MV Karela, some 200 nautical miles off the coast of Angola.
The case has however turned sour as the arrested men, Takorade Doghor, Captain of the ship, Williams Aseghiecwhen, Engineer and Oakporaye Osagada, Able Seaman have now sued the Nigerian Navy, joining the Attorney General and the Minister of Justice for unwarranted detention without trial. They are demanding N100 million in damages. Their lawyer says they have been in detention by the Navy without trial since they were arrested on the 29th of March.
|
LATEST TENDERS
NPDC - Facilities Maintenance Services (Flow Station Painting) in OML 30 The closing date for this opportunity is 15.30 hours on 21 July 2014. NNPC - Provision of Lubricant Warehouse for NNPC Retail Ltd The closing date for this opportunity is 21st of July. Total - Provision of Medium Size Helicopter Charter Services - Contract Number DW00000754 The closing date for this opportunity is 22nd of July. Total - Provision of Large Size Helicopter Charter Services - Contract Number DW00000770 The closing date for this opportunity is 22nd of July. SNEPCo - Provision of All Risks Construction Insurance Policy for Bonga Southwest/Aparo Field Development The closing date for this opportunity is 24th July 2014. Mobil - Bottom Hole Pressure and Temperature Survey Services The closing date for this opportunity is 25th July 2014.
Shell - Operation and Maintenance of Light Vehicles
The closing date for applications is 31st July 2014. Agip - Supply and Administration of Production/Process/Drilling Chemicals The closing date for this opportunity is 8th august 2014. Clean Associates Ltd - Purchase of Used Boats The closing date for submission of bids is 10th August 2014. Chevron - Provision of Environmental Assessment The closing date for this opportunity is 11th August 2014. |
Programme Committee Calls for Papers for OTC 2015
The Program Committee of the world's largest gathering for the offshore energy industry, the Oil Technology Conference (OTC) is now accepting paper proposals for next year's event, which takes place 4-7 May 2015 in Houston, Texas, USA.
OTC offers the opportunity for networking and knowledge sharing among industry-leading scientist, engineers, companies, and experts. The Committee explained that more than 40 technical categories are available for paper proposals such as subsea processing, remote intervention, flow assurance, and more. They said: "This is the perfect platform to showcase your technical innovations on various energy-related topics."
A complete list of paper proposal categories is available to view at the OTC 2015 website http://2015.otcnet.org/. Those who are selected will present their papers at OTC 2015. The papers will also be added to OnePetro.org a multisociety technical library. The deadline to submit a paper proposal is 9 September 2014.
|
WESGRO Trade Mission to Nigeria: 4-8 August
WESGRO, a South African Government Agency for Investment and Trade promotion in Cape Town, South Africa will be leading a trade mission to Lagos, Nigeria from 4-8 August 2014. The delegation of 25 companies from South Africa is mostly from ICT and Oil and Gas sectors. The aim of the mission is to facilitate partnerships between South African and Nigerian businesses in these sectors.
Members of the oil and gas sector are invited to a business networking session taking place at the Federal Palace Hotel, Victoria Island, Lagos on Tuesday 5th August, at 11am. For further details email Julia.omochere@gmail.com or grandieu@gmail.com.
|
LATEST EVENTS
Lagos Oil Club July Edition
Oriental Hotel, Victoria Island, Lagos
28th July 2014
4th Downstream Oil and Gas Expo
Abuja, Nigeria
26-28 August 2014
www.oilandgasexpos.com
Gas Africa 2014
Gauteng, South Africa
26-27 August 2014
http://www.mcnaughtonevents.co.za
3rd International Downstream Conference/Exhibition on Gas, Petroleum Refining, Petrochemicals and Fertilisers
Port Harcourt, Nigeria
27th -28th August 2014
www.cgrpng.org
10th annual Global Local Content Summit
London, UK 22- 25 September 2014 http://www.localcontentsummit.com/
2nd Africa Oil & Gas, Finance and Investment Forum
West Africa Gas Conference and Exhibition
Abuja, Nigeria
28 October 2014
www. http://west-africa-gas.com Nigeria Oil and Gas Trade and Investment Forum Onne, Nigeria 30-31 October 2014 http://www.nigeriaoilandgasinvest.com/ 21st Africa Oil Week Cape Town, South Africa 3-7 November 2014 http://www.petro21.com/events 32nd Annual International Conference of the Nigerian Association of Petroleum Explorationists Lagos, Nigeria 09-13 November 2014 www.nape.org.ng 15th World LNG Summit and Awards Paris, France 18 November 2014 www.world.cwclng.com Practical Nigerian Content Yenagoa, Nigeria 18-20 November 2014 http://www.ncipnc.com/ Mozambique Gas Summit Maputo, Mozambique 2-5 December 2014 http://www.mozambique-gas-summit.com/ Indigenous Oil & Gas SummitLagos, Nigeria 2 - 4 December 2104 http://www.afrikinternationalnetworks.com/Mozambique Gas Summit Maputo, Mozambique 02 December 2014 http://www.mozambique-gas-summit.com Nigeria Oil and Gas Conference and Exhibition Abuja, Nigeria 02 February 2015 www.cwcnog.com Ghana Summit Conference and Exhibition Accra, Ghana 21 April 2015 www.cwcghana.com Oil, Power and Mining Orlando, Florida, USA 12 - 14 August 2015 www.oilpowermining.com/ |
|
LATEST JOBS:
West African Ventures (WAV) - Vessel Master
- Masters for passenger vessels.
The closing date for this opportunity is 15th of July.
STAY SAFE:
NOGintelligence is aware of the circulation of false recruitment information. Do not fall prey to fraudulent job offers. Always check the company website for more details of the jobs. Most especially, do not make payment towards the processing of job applications. It is most likely a fake job offer if you are being asked to part with money. NOGintelligence does not post 3rd party job offers on its website unless through a vetted partner.
More details about these job opportunities are available on our website www.NOGintelligence.com TRAINING: Fundamentals of Gas Projects Management Eko Hotel, Lagos, Nigeria 22nd and 23rd July 2014 Hassan.Shaba@nlng.com Samsung Heavy Industries Intensive: Technical Training Programme University of Port Harcourt Offshore Training Institute: M.Sc. Pipeline Engineering and M.Sc. Offshore Engineering Centre for Petroleum Geosciences, University of Port Harcourt Applications are invited for admission into the M.Sc Degree Programme in Petroleum Geoscience for the 2014/15 Session.
More details on our website |
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
|
|
|
|
|
