CAMAC Energy Changes Name to Erin Energy

Houston based, sub-Saharan Africa focused CAMAC Energy Inc. has changed its name to Erin Energy Corporation and it will trade under the new ticker symbol "ERN" on both the New York and Johannesburg Stock Exchanges on which it is listed. The company, which has 100 per cent interests in oil mining leases (OMLs) 120 and 121 located offshore has just implemented a reverse stock split of its common stock. Following the split, six of its common shares were converted to one share of common stock. The change of name was done concurrently. Shares of the company's common stock began trading under the new symbol on Thursday 23rd April.  

Commenting on the changes, the company's Nigerian Chairman and Chief Executive Officer, said the rebranding exercise was in line with the company's transformation into a focused, world-class, international exploration and development company. He said: "We are a fundamentally different company than we were a few years ago, and our rebranded company represents the transformation our organization has undergone over time."

Stockholders who hold their shares through a bank, broker, custodian or other nominee were advised to contact that individual or institution for further information about the impact of the reverse stock split on their shares.  

Stockholders whose shares are registered directly with the company's transfer agent (Continental Stock Transfer & Trust Company for shares traded on the NYSE MKT and Link Market Services South Africa (Pty) Limited for shares traded on the JSE) should contact the appropriate transfer agent for further information about the impact of the reverse stock split on their shares. Any fractional shares resulting from the reverse stock split will be settled in cash at a value equal to the respective fractional portions of the closing share price on Wednesday, April 22, 2015.

The new branding comes just in time for production from the Oyo-8 well in the Oyo field located on OML 120. The field is located approximately 75 km (46 miles) from the coast in water depths ranging from 200 to 500 meters. The Oyo Field commenced production in December 2009 and the wells are connected to the Armada Perdana FPSO, a Floating Production, Storage, and Offloading vessel.

CAMAC recently announced that it was ready to commence production from its Oyo-8 well after concluding completion operations. Oyo-8 will produce to Armada Perdana. Commencement of production was however held up for a couple of weeks after the FPSO has had to undergo class certification inspections of the vessel's mooring lines conducted by the American Bureau of Shipping. Production was due to commence immediately following the vessel's class certificate renewal. The FPSO has a capacity of 40,000 barrels of oil per day (bbls/d), with gas treatment and re-injection facilities, and can store up to 1.1 million barrels of crude oil.  

Meanwhile, CAMAC is demobilizing the Sedco Express drilling rig from the Oyo-8 location and the rig will then mobilize to the Oyo-6 well location to continue its planned Oyo field operations.

The Oyo field is located approximately 75 km (46 miles) from the coast in water depths ranging from 200 to 500 meters. The Oyo Field commenced production in December 2009 and the wells are connected to the Armada Perdana FPSO, a Floating Production, Storage, and Offloading vessel.

Commenting further, Kase Lawal, said: "The successful well completion operations on Oyo-8 and our readiness to commence oil production are significant milestones for creating long-term shareholder value."  

He concluded: "It is with great excitement that we look to the future and the significant growth potential of Erin Energy."

The company, which also has exploration licenses offshore Ghana, Kenya, and Gambia, and onshore Kenya, is headquartered in Houston, Texas. The new Company website will be www.erinenergy.com.

Oriental, and JV Partners, Addax, Afren Complete Okwok-13 Flow Test

Investors in London Stock Exchange listed Afren must be relieved to hear some good news for a change after Afren's partners, Oriental Energy Resources, revealed the completion and flow testing of their first development well, on the Okwok Marginal Field. Oriental Energy is the operator of the field in which Addax also has an interest.  

Okwok is located approximately 45 km off the Nigeria coast, due south of Calabar, in water depths ranging between 35 m and 50 m. Okwok lies within ExxonMobil's licence area OML67, immediately to the south of OML123, and covers an area of 22,500 acres (91 km2).

Work started on the Okwok in earnest after the Department of Petroleum Resources (DPR) approved of the Field Development Plan (Okwok FDP) early in 2014. The Okwok-13 development well was drilled in early 2015 to a total measured depth of 9,212ft and was completed with over 1500ft pay.

Following the completion, the well was successfully tested to reconfirm commercial deliverability and reservoir connectivity. The well flowed at 5,400 barrels per day (bpd) with an API of 24.5 degrees.

The test data showed no evidence of depletion and preliminary analysis indicated significant reserves addition. The well is to be suspended while the planned Mobile Offshore Production Unit (MOPU) and the Okwok crude oil sales export pipeline are installed. The Okwok wellhead jacket was installed late 2014 allowing the drilling of this first development well to take place early this year.

The processed crude will be piped to Oriental's Ebok Terminal some 15 kilometres away, once the pipeline is installed.

Oriental's chairman, Muhammadu Indimi, commented:,"I am extremely pleased with the results of the testing of the Okwok-13 well at a rate over 5,000 barrels per day of quality Nigerian crude, as it further confirms the commercial viability of the Okwok field. The company looks forward to bringing Okwok production online within a short time."

Production from Okwok is to be stored for export in the Ebok Terminal Floating Storage and Offloading (FSO) vessel, Veer Prem operated by the Oriental JV.

The Oriental JV also operates the nearby Ebok Field development, which currently produces over 30,000bpd. Having achieved a 100% appraisal drilling success rate and more than quadrupling reserves at the Ebok field, the JV is hoping to replicate its successes and technological innovations on Okwok. They were able to deploy the subsurface knowledge gained from work on the Ebok field to identify Okwok as a high-potential opportunity. They acquired the field after noting many similarities between the two fields. The same reservoirs are present in both fields, as is the relationship of seismic amplitude to reservoir and hydrocarbon distribution. Consequently, they believe there

OPEC Daily Basket Price Stood at $60.95 a Barrel Friday, 24 April 2015

The price of OPEC basket of twelve crudes stood at $60.95 a barrel on Friday, compared with $59.14 the previous day, according to OPEC Secretariat calculations.  

The new 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).

FBN Capital Secures $1.4 Billion Facility for Seplat

FBN Capital has revealed details of the $1.4 billion secured term loan and accordion facilities it obtained for Seplat Petroleum Development Company from a consortium of 5 Nigerian banks. The facility which closed in January, includes a new US$700 million seven year secured term facility which includes an option to upsize the facility by up to an additional US$700 million for qualifying acquisition opportunities.  

The new facility, along with a new US$300 million three year secured revolving credit facility provided concurrently by international banks, refinanced Seplat's existing debt portfolio to ensure a robust capital structure and strategically position the Company for future oil and gas acquisition opportunities in Nigeria. In on the transaction were United Bank for Africa, Zenith Bank, First Bank of Nigeria and Standard Bank and Stanbic IBTC Bank.

Commenting on the transaction, Austin Avuru, Chief Executive Officer of Seplat, noted "We are pleased to have extended our banking relationships with several existing and new lenders, both Nigerian and international. This successful re-financing, which commenced several months ago, significantly enhances our already robust capital structure and underscores the quality of our asset base".

Kayode Akinkugbe, Managing Director of FBN Capital Limited said: "FBN Capital is very proud of the instrumental role it played in assisting Seplat to structure the local financing to optimize its capital structure". He went further to state that the FBN Holdings Group is delighted to assist the growth of indigenous oil & gas companies within the sector and will continue to deploy its extensive debt arranging experience and structuring expertise in executing complex and robust transactions in record time".

Following the structured finance, Seplat wasted no time in its acquisitions. After passing up the opportunity to acquire Afren, the company later went on to close the acquisition of a 40% working interest in OML 53, which is located onshore in Imo State in the north eastern Niger Delta, approximately 60km north of Port Harcourt. It also secured a 22.5% working interest in OML 55, which is located in the swamp to shallow water offshore areas in the South-Eastern Niger Delta in Nigeria. Seplat is the operator of both blocks, which are part of the recent divestment by Chevron. The Nigerian National Petroleum Corporation (NNPC) holds a 60 per cent interest in each of the two blocks.

Seplat Will Pay Dividends to Nigerian Shareholders in Naira not Dollars

Dually listed (Nigeria and London Stock Exchanges) Seplat has confirmed that it will not be paying future dividends to Nigerian shareholders in dollars. The company had come under criticism after it emerged that it had made November 2014 interim dividend payments in dollars. General Counsel for the company, Dr. Mirian Kene Kachikwu, has confirmed in a statement that it was not insisting on paying dividends in dollars to its shareholders.

The company had, it appears, decided as an act of "magnanimity" chosen to pay dividends in dollars to those who had domiciliary accounts. This move, which came under intense criticism, has seen the company backpedal on the idea of paying dividends in dollars.  

In the statement issued by Dr Kachikwu she said: "For the avoidance of doubt, our final dividend for the full year 2014, following shareholder approval, on June 2nd, 2015, will be paid in naira, as applicable, to our Nigerian shareholders on June 10th 2015."

Nwapa out as Jonathan Appoints New Executive Secretary of NCDMB

News has just reached NOGintelligence that President Goodluck Jonathan has replaced Dr Ernest Nwapa as Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB). According to a statement by the President's Special Adviser on Media & Publicity, Reuben Abati, Nwapa who has been in the role since April 2010, will be replaced by Mr. Denzil Amagbe Kentebe. Mr. Kentebe, is an architect and is said to have years of experience in strategic planning and policy management.

Another new appointment by the outgoing President is Mrs Asabe Asmau Ahmed who takes over fromMrs. Sharon Adefunke Kasali, who has been Executive Secretary of PEF since 2007. Mrs Ahmed holds Bachelors and Masters Degrees from Ahmadu Bello University, Zaria and the Nigerian Defence Academy, Kaduna, respectively and is said to have years of experience in public service.

Industry insiders have applauded Nwapa for the dedication and zeal with which he has executed his mandate over the years, taking local content in the oil and gas industry to new heights. It is hoped that the new Executive Secretary will continue to build on the solid foundations laid by Nwapa.

The PwC Audit of NNPC That Never Was

After repeated calls for the release of the Price Waterhouse Coopers (PwC) "Audit" that was said to have vindicated the Nigerian National Petroleum Corporation (NNPC) over allegations of missing funds, the Report has now been released. The forensic audit, which PwC conducted stems from the allegations made by the current Emir of Kano, His Highness Muhammadu Sanusi II, when he was Governor of the Central Bank of Nigeria (CBN), that NNPC had failed to remit the sum of $20 billion to the Federation Account.

Following the allegations, hurried reconciliations were carried out between various government ministries and agencies, including CBN, NNPC, Department of Petroleum Resources (DPR), the Ministry of Petroleum Resources and the Ministry of Finance, and the sum that was unaccounted was reduced to $12 billion or $10.8 billion depending on who your were speaking to. The public appetite for the truth was not to be sated by this hurried reconciliation, as the stench of corruption hung heavy in the air. There was growing demand for a proper audit to be conducted by one of the big 4.

With elections looming close, President Jonathan eventually heeded the call for an audit of the accounts of NNPC in order to get to the bottom of the matter. PwC was engaged on 5th June 2014 and told to delve into the accounts and put the allegations to rest once and for all. How much money was missing and where was the money? Was it actually missing or just sitting in the wrong account?

The initial report

The long awaited report was completed in November 2014 and NNPC claimed it had been vindicated by the report. Details of the findings of the report remained sketchy however. All calls to release the report went unanswered. This was perplexing. If NNPC had been vindicated, why not release the report?

Now, the President's hand has been forced following the leak of the much-guarded report. Things have become much clearer since then. The report reveals that PwC initially submitted its report in November 2014. In view of some highly critical findings more documents were submitted to PwC enabling it to revise the report. PwC says that a significant amount of additional information and "clarification" was provided following the submission of that initial report. As a result PwC says, the revised report has significant changes from the report, although covering the same period.

The revised report

The revised report was submitted on the 2nd of February 2015.   In the new report, PWC found that the sum of $1.48 billion had not been remitted to the Federation Account by NNPC. The Minister of Petroleum Resources, Diezani Alison-Madueke, promptly announced that she had instructed NNPC to begin remitting the funds.

In spite of the jubilatory statement by NNPC that it had been vindicated by the report and that "only" $1.48 billion was due to the Federation Account, on close inspection, there is nothing for the national oil company to celebrate. PwC reported that it was not given access to much of the information it needed to conduct a proper forensic audit. Keen to protect its international reputation, the audit firm issued the following devastating disclaimer at the opening page of the report: "The procedures we performed did not constitute an examination or a review in accordance with generally accepted auditing standards or attestation standards."

The company goes even further, saying: "We provide no opinion, attestation or other form of assurance with respect to our work or the information upon which our work was based."

Of particularly concern is the lack of access to the full accounts and records of the Nigerian Petroleum Development Company (NPDC) the exploration and production subsidiary of NNPC. As a result, PwC had to rely only on information given by the former NPDC Managing Director, Victor Briggs, to a Senate Committee that had been investigating the matter, including the amount of revenue received by NPDC from its activities during the period under review.

Without access to the NPDC accounts, PwC could also not ascertain the amount of costs and expenses that should be applied to the crude oil revenue NPDC received. This meant that PwC could also not determine what should be considered dividend payment by NPDC to NNPC and therefore for ultimate remittance to the Federation Account.

All of this makes the report inherently unreliable and the disclaimer by PwC is therefore not at all surprising. This was not a forensic audit at all. It was the audit that never was.

Read more on our website

Oil Council Names Wale Tinubu African Executive of the Year

The Oil Council is to present its coveted African Executive of the Year award to Wale Tinubu, Group Chief Executive of Oando PLC at its Africa Assembly in Paris. The meeting which will hold from the 23rd to the 25th of June and will culminate in the Award, which last year was given to Dr ABC Orjiakor, chairman of Seplat. Each year, at its Africa Assembly, the Oil Council honours one executive who epitomises the values necessary to be awarded "African Executive of the Year" - Excellence, Integrity, Innovation.

Nigerian Content Development Perception Index Survey 2015

In commemoration of the 5th anniversary of the Nigerian Content Law, Borderless - a Nigerian content advocacy group- has carried out the 'Looking back, looking forward' survey on the progress of Nigerian Content.

The goal of the survey is to raise awareness and promote greater commitment towards  Nigerian Content development. It generated feedback from a cross-section of indigenous oil and gas companies on how the Nigerian Content Act can be better implemented.

Included in the survey is the Nigerian Content Perception Development Index (NCPDI), an annual ranking, of International Oil Companies (IOCs), in order of commitment to Nigerian Content, with 1, representing the most committed IOC and 6, representing the least committed IOC to Nigerian Content Development.

The Result of the 2015 NCPDI is set out as follows:

1. Shell
2. Addax
3. Mobil
4. Total
5. Agip (NAOC)
6. Chevron

Analysis:

In comparison to 2014 results, Shell retained its position as the most committed IOC to Nigerian Content Development. Addax, also, retained its 2nd position. At 3rd place, Mobil moved up a position, while Total dropped a position to 4th place.   Agip (Naoc) retained its position at 5th place. For a second year, Chevron remains the least committed to Nigerian Content Development in the Perception Index.

The 2015 survey did not record any significant change in the commitment by IOCs to value addition - Nigerian Content development.

Outcome of the survey:

A)   Most indigenous still view access to funds as a main challenge, and want greater access to cheap funds. They also want a clearer and less cumbersome process of accessing the Nigerian Content Fund.

B)   International Oil companies are perceived as progressively more committed to Nigerian Content development.

C)   As developmental partners, the Nigerian Content development and Monitoring Board is seen to have performed well in assisting indigenous companies.

D)   As regulators, the Nigerian Content Development and Monitoring Board has failed to effectively and/or sufficiently monitor the activities of IOCs, and/or is lagging behind in its   enforcement role.

E)   Transparency - the Nigerian Content Development and Monitoring Board should readily make information accessible to the public for greater transparency and in ensuring   Nigerian Content compliance by International Oil Companies.

F)    Non-passage of the P.I.B remains a major threat to Nigerian Content development, with the creation of an uncertain investment climate.

Call to action:

2)   Speedy passage of a Nigerian Content-friendly Petroleum Industry Bill.

French oil services company, Bourbon, confirmed that three Nigerian crewmembers were kidnapped after pirates overcame the crewmembers of one of its vessels off Nigerian coast on April 8. The event too place at night on one of the company's speedboats usually used to transport personnel. The company said that its emergency unit based in Nigeria had been immediately activated, although it failed to detail the activities of its emergency unit. At the time of going to press the company had not confirmed whether they had been able to secure the release of the three crewmembers whose names have still not been released.

Bourbon operates a range of offshore marine services, including vessels for integrated support for offshore exploration, development and production.

FMC Technologies Partners with Port Harcourt University to Develop the Next Generation of Subsea Engineers

FMC Technologies, an oil services company which provides over 80% of subsea production systems in country, is to collaborate with the University of Port Harcourt to create the first Master of Science degree in Subsea Engineering to be offered in Nigeria. The program curriculum will be developed in collaboration with industry experts to ensure that students are prepared for work in the offshore oil and gas industry. The University will be accepting enrollment applications for this new program starting in 2015.

Michael Hunt, Country Manager, FMC Technologies said: "FMC Technologies is dedicated to developing its Nigerian workforce so that an ever-increasing number of technical, leadership and management roles in Nigeria can be performed by Nigerians."

"This collaboration represents a major milestone in furthering the development of a highly skilled Nigerian workforce. These students will play a key role in the future of the oil and gas industry in Nigeria."

Vice-Chancellor, Professor Joseph Ajienka, expressed his gratitude and described the event as a major milestone, not only for the University of Port Harcourt, but also for the oil and gas industry in Nigeria. "We are very pleased to cooperate with FMC Technologies in this effort. Given the facilities and experience of FMC Technologies, we are confident that a Master of Science degree in Subsea Engineering will add tremendous value to our services," he said.

Graduates of the programme will have expanded opportunities to work in the energy industry, including potential employment with FMC Technologies in Nigeria.
 

FMC Technologies has been in the country for 16 years and currently employs approximately 250 personnel in country. The global market leader in subsea systems says Nigerian employees have received more than 70,000 training hours since 2012 to expand their skills and increase the number of job functions that can be executed in Nigeria by locals. They employ more than 20,000 people around the world. FMC Technologies, a leading provider of technologies and services to the oil and gas industry, was named by ForbesŪ Magazine as one of the World's Most Innovative Companies in 2013.

SPDC- Provision of Calendars, Diaries and Greeting Cards

Shell Nigeria Exploration and Production Company Limited (SNEPCO) invites interested and registered Nigerian companies to respond to the opportunity for the provision of calendars, diaries and greeting Cards. The scope of services involves the provision of printing of 14 page SPDC calendar (front and back) full colour processing using, calendar size is. 24 x 16 inches paper quality 170 gms matt paper. 4000 gms chipboard backing for calendar, printing of Shell A4 diaries, A5 diaries and pocket diaries with Shell pectin, case bound A4/A5 size desk diary in a folder, executive diary day page per day. Only Tenderers who are registered in the relevant NJQS product/category categories shall be invited to submit technical bids. The closing date for this opportunity is 15th April 2015

Enageed - Provision of Drilling & Completion Services

Enageed Resource Limited (Company) invites interested and registered Nigerian companies to respond to the opportunity for the provision of drilling & completion services. The scope of services involves the drilling and completion of an estimated twelve (12) land wells and two (2) wells on swamp locations. Only Tenderers who are registered under the relevant NJQS Product/Category shall be invited to submit technical bids. The closing date for this opportunity is 20th April 2015.

Agip - Provision of Evacuation, Treatment and Disposal of Weathered Oil/Sludge Services

Nigerian Agip Oil Company Limited (NAOC), invites interested and registered Nigerian companies to respond to the opportunity for the evacuation, treatment and disposal of weathered oil/sludge services. The scope of services involves the mobilization, evacuation/transportation and treatment of relevant personnel and equipment to site for the purpose of executing the service. Only Tenderers who are registered with NJQS product/service categories shall be invited to submit technical bids. The closing date for this opportunity is 22th April 2015.

Star Deep Water Petroleum - Provision of Tubular Inspection Services

Star Deep Water Petroleum invites interested and registered Nigerian companies to respond to the opportunity for the provision of tubular inspection services. The scope of services involves the provision of vendor review of mill test reports, manufacturing and testing schedules, and test procedures and pass / fail criteria for compliance with relevant API specs, support and/or development of quality plan, online quality documentation and manufacturing reviews to support in-mill and in-threaders and in-country non-destructive and destructive testing and inspection, vendor surveillance services at the mill to ensure compliance to company and relevant API specifications, including latest edition of 5CT. Only Tenderers who are registered with NJQS Product/Category 3.07.98 (other inspection services - bop, drill rig, electrical, paint, rotating equipment, structural, tubulars, video, weld) Category A, B, C Or D Shall Be Invited To Submit technical bids. The closing date for this opportunity is 28th April 2015.

Chevron - Provision of Machine Shop Services

Chevron invites interested and registered Nigerian companies to respond to the opportunity for the provision of machine shop services (onsite and offsite). The scope of services involves the provision of all skilled, qualified and certified personnel, supervision, services, transport, testing devices, equipment, tools, and each and every item of expense necessary for the rendering of machine shop services to company. Only tenderers who are registered with the NJQS Product/Category 3.05.23 (machine shop services), Category A shall be invited to submit technical bids. The closing date for this opportunity is 29th April 2015.

Chevron - Provision of Tubing Gravel Pack Services

Chevron invites interested and registered Nigerian companies to respond to the opportunity for the provision of through tubing gravel pack services. The scope of services involves the deployment of different sizes of through tubing sand control (TTSC) screens as needed, proppants placement and other TTSC Services. Only bidders who are registered with NJQS Product/Category A, B, C and D of 3.04.33 (gravel packing services) shall be invited to submit technical bids. The closing date for this opportunity is 30th April 2015.

SPDC - Provision of Onshore Survey Services

Shell Nigeria Exploration and Production Company Limited (SNEPCO) invites interested and registered Nigerian companies to respond to the opportunity for the provision of land and swamp survey services to support hydrocarbon exploration and production in the Niger Delta. The scope of services involves the provision of geodetic control surveys, topographical surveys, positioning of wells and rig moves, preliminary investigation for locations / facilities site and pipeline route selection optimisation and wells location, pipeline routes, and facilities surveys. Only Tenderers who are registered in the NJQS product/service categories shall be invited to submit technical bids. The closing date for this opportunity is 30th April 2015

Total - Provision of Catering Services

Total E & P Nigeria Limited invites interested and registered Nigerian companies to respond to the opportunity for the provision of catering services. The scope of services involves the supply, catering and stewarding of meals in accordance with the stipulated scope. Only Tenderers who are registered with relevant product/service categories shall be invited to submit technical bids. The closing date for this opportunity is 6th May 2015.