East Africa ///
Representing the Government of South Sudan, the Ministry of Petroleum has announced that it is welcoming the interest of investors for direct negotiations on oil and gas in Blocks B1 and B2. The announcement comes after negotiations broke down with the French oil and gas company Total E&P, due to irreconcilable differences.
Crude oil brings in the cash to keep South Sudan’s army fighting. That may have made oil workers a target for rebels waging the African nation’s three-year civil war.
Nigeria’s Oranto Petroleum International Ltd. plans to bet half a billion dollars that Africa’s newest nation can end a three-year civil war and create the conditions to revive its oil industry.
Mozambique said Exxon Mobil Corp.’s acquisition of a 25% stake in an offshore gas block from Eni SpA will generate capital gains revenue of $350 million.
Libya’s oil production has climbed to almost match the level before clashes disrupted output three weeks ago and forced the OPEC nation’s two biggest oil ports to halt shipments.
South Sudan and Equatorial Guinea announced an historic partnership today in Juba, setting out the terms for a strong bilateral relationship between the African oil and gas producers.
CNOOC Uganda Limited has notified Tullow that it has exercised its pre-emption rights under the joint operating agreements between Tullow, Total and CNOOC to acquire 50% of the interests being transferred to Total on the same terms and conditions that were agreed between Tullow and Total.
Recovering from a six-year drilling low that was reported last May, African E&P is slowly picking up the pieces. The region has seen numerous setbacks, despite having the potential to become one of the leading oil and gas producers and exporters in the world. Much of East Africa is riddled with severe debt and economic unrest, impeding investment and the development of infrastructure.
Exxon Mobil said it will buy a 25% stake in a project off Mozambique from Italy’s Eni SpA for about $2.8 billion as the U.S. oil giant expands in natural gas.
Oranto Petroleum will invest $500 million to develop South Sudan’s Block B3, launching a comprehensive exploration campaign starting immediately. The Ministry of Petroleum and Oranto Petroleum Company, South Sudan signed the exploration and production sharing agreement for the block today in Juba.
Soma Oil & Gas has announced the resignation of Hassan Khaire, executive director for Africa, so he can accept the honor of serving his country of origin, Somalia, as its Prime Minister.
Fugro has been awarded a contract by Shell/BG Kenya for the execution of a seabed survey to detect natural leakages of hydrocarbons. The seeps survey complements a seismic exploration program that was completed recently offshore Kenya.
South Sudan said it boosted security at oil installations and will source electricity from neighboring Sudan to resume output at two fields in efforts to restore production to levels achieved before the country descended into civil war.
Tullow Oil’s Erut-1 well in Block 13T, northern Kenya, has discovered a gross oil interval of 55 m with 25 m of net oil pay at a depth of 700 m.
Eni has authorized the investment for the first phase of the Coral South project. The Coral discovery lies offshore Mozambique in the deep waters of the Rovuma basin (Area 4).
Output from Ugandan crude deposits being developed by companies including Tullow Oil and Total is unlikely to be exported as soon as the nation expects because of the scale of the infrastructure projects required to transport the fuel out of the country.
Capital investment in the oil and gas industry in Sub-Saharan Africa has been cut by $100 billion over the next five years, according to Wood Mackenzie's latest report on upstream activity in the region. Major oil companies are heavily invested in Sub-Saharan Africa and account for the bulk of cuts.
Shell and its joint venture (JV) partners, Pavilion Energy and Ophir Energy, have started their drilling program offshore Tanzania.
Sasol recently announced the completion of the first-ever 3D onshore seismic program in Mozambique.
Uganda expects three oil companies to invest $8 billion in the East African nation before they start producing oil in 2020, Energy Minister Irene Muloni said.