Country: Equatorial Guinea

President Teodoro Obiang Nguema Mbasogo of Equatorial Guinea and President Paul Biya of Cameroon have signed a cooperation agreement on the development of oil & gas reserves at their maritime border in the Gulf of Guinea. The agreement was signed in Yaoundé on the sideline of the 15th Ordinary Session of the Conference of Heads of State of the Central African Economic and Monetary Community (CEMAC) on March 17th. While details on the agreement have not been revealed, it is expected to facilitate the development of gas discoveries on both side of the maritime border between Equatorial Guinea and Cameroon. An Offshore Gas Megahub in the Making Equatorial Guinea already produces oil and gas from Alen on Block O and Aseng on Block I, both operated by Chevron Energy since its acquisition of Noble Energy in 2020. The blocks contain the undeveloped Felicita and Yolanda gas discoveries. Last year, Chevron produced some 56,000 bpd of oil equivalent (net) from Equatorial Guinea, including 12,000 bopd of oil, 7,000 bpd of natural gas liquids and 223 MMscf/d of natural gas. Just across the maritime border, Chevron also operates the YoYo Block in Cameroon’s Douala Basin which contains the undeveloped YoYo gas discovery. The development of the Yolanda and YoYo gas discoveries could be easily executed by utilizing Equatorial Guinea’s existing infrastructure and processing gas on Punta Europa, where Equatorial Guinea has gas processing infrastructure, including an LNG terminal, a methanol plant, and an LPG plant. The country has long ambitioned to position its gas infrastructure as a processing hub for stranded gas fields and discoveries in the Gulf of Guinea. In 2021, it completed the Alen Gas Monetisation project that enabled the production of gas from the Alen unit and its transportation by pipeline to Punta Europa where it serves as feedstock for EG LNG and the Alba LPG plant. Future monetization plans include the processing of stranded gas both from Cameroon and Nigeria’s offshore fields. A Regional Gas Future? Unlocking the potential of regional gas cooperation in the Gulf of Guinea requires several multi-party, multi-governmental commercial and legal agreements that have so far delayed projects. While the deal signed in Yaounde this week sends positive signals, its nature remains unknown.   In addition, the joint-development of Yolanda and YoYo would require additional agreements with the operator Chevron. The long-term presence of the major in the region remains uncertain. In December 2021, Chevron signed a Production Sharing Contract (PSC) for exploration block EG-09, just south of its Blocks O and I. But a few months later, Reuters reported that the major had hired investment bank Jefferies to sell its assets in the country. Meanwhile, other operators in Cameroon could seek to use Equatorial Guinea’s processing infrastructure for their own ventures. This is the case of partners on the Etinde Gas Project offshore Cameroon, who are exploring the option of sending wet gas from the undeveloped Etinde field to Punta Europa before reimporting dry gas into Cameroon via a new 50km pipeline linking both countries.

Equatorial Guinea has awarded offshore exploration blocks to Panoro Energy and Africa Oil Corp. as it seeks to unlock additional reserves and reverse production decline. Earlier this month, the country appointed the former head of its national oil company, Antonio Oburu Ondo, to replace Gabriel Obiang Lima as Minister of Mines and Hydrocarbons. Infrastructure-led exploration Amongst the newly awarded blocks are Block EG-01 and Block EG-31 that are located next to producing and processing infrastructure. The shallow water Block EG-01 has been awarded to Panoro Energy (operator, 56%) with partners Kosmos Energy (24%) and national oil company GEPetrol (20%). The block is located next to the Ceiba and Okume fields, two fields operated by Trident Energy via the 160,000 bpd Sendje Ceiba FPSO. Output currently stands at some 30,000 bpd. Panoro Energy and Kosmos Energy are already partners of Trident Energy on the Ceiba and Okume complex and hold interest in the exploration Block S where a well is planned for 2024. “The partners have been awarded block EG-01 for an initial period of three years during which they will conduct subsurface studies based on existing seismic data to further define and evaluate the prospectivity of the block. Following this, the partners will have the option to enter into a further two-year period, during which they will undertake to drill one exploration well,” Panoro Energy said in a statement.   On the other side, Africa Oil Corp. has been awarded shallow water Block EG-31 as operator with an 80% interest while GEPetrol holds the remaining 20%. The block is located next to the Marathon Oil Corp-operated Alba gas field and the onshore Punta Europa gas hub that houses the EG LNG export terminal. “Potential future discoveries could present low-cost, low-risk gas development opportunities targeting international LNG markets,” Africa Oil Corp. said in a statement. Rio Muni exploration Finally, Africa Oil Corp. has been awarded Block EG-18, which it had already secured during EG Ronda 2019. The award marks an evolution of the company’s acquisition strategy which had so far focused mostly on cash flowing producing assets. “In Block EG-18 the Company has identified a potentially large and highly prospective basin floor fan prospect of Cretaceous age, that is similar to those within the Company’s exploration portfolio in Namibia and South Africa,” Africa Oil Corp. added. All PSCs for the blocks are yet to be ratified by the Government and there minimum work programmes do not include drilling commitments. However, their awards to reputable E&P investors send strong signals on the appetite for upstream activity in the Gulf of Guinea.  

On April 5th, the Angolan National Oil, Gas and Biofuels Agency (ANPG) opened a tender for eight oil blocks in the Lower Congo and Kwanza offshore basins. These include Blocks 16/21, 31/21, 32/21, 33/21 and 34/21 in the Lower Congo and Blocks 7/21, 8/21 and 9/21 in the Kwanza Basin. In the presence of Minister of Mineral Resources, Petroleum and Gas, Diamantino Pedro Azevedo and Secretary of State for Oil and Gas José Barroso, the round of offshore blocks piqued the interest of several global oil majors operating in the country. Eni Angola notably submitted a bid for Block 31/21, as operator with a 50% interest, in partnership with Equinor (50%). On its side, TotalEnergies presented a bid proposal for Block 16/21, with a 100% stake. “Knowing that the basins in the bidding have been studied and the investors have been able to prove that our business environment is recommended – and that investors recognise it – and that the ANPG guarantees  dialogue and continuous work with operators and with partners who trust Angola, it is something that shows us that we are on the right path and that we must commit more to boost our oil & gas sector and its contribution to the national economy,” commented  Paulino Jerónimo, CEO of the ANPG. The bidding round was notably launched a month before the 8th African Petroleum Congress and Exhibition (CAPE VIII), set to take place in Luanda from May 16th-19th. The congress is sponsored by SONANGOL, TOTAL ENERGIES, EXXONMOBIL, CHEVRON, EQUINOR, TRAFIGURA, SOMOIL, SINOPEC, BFA, SNH, BRIMONT, SHEARWATER and is supported by PETAN, OGTAN, AECIPA. Headline topics include, among others, ANPG’s latest bid round, the energy transition, and opportunities and challenges under the new geopolitical paradigm shift. The congress is organized by the African Petroleum Producers Organization (APPO), the government of the Republic of Angola (for the first time), the Angolan National Oil, Gas and Biofuels Agency (ANPG) and AME Trade Ltd. The three-day event will be centered around the theme of “Energy Transition: Challenges and Opportunities in the African Oil and Gas Industry,” and assemble experts from the national, regional, and international energy and oil and gas industries to deliberate the challenges and opportunities of the energy transition and the future of the oil and gas industry in Africa. The congress will be the ideal platform for Africa’s leading oil and gas producers to confront the foregoing challenges and engender solutions to maximize its oil and gas resources. Amid the drive by developed economies towards decarbonization and net-zero policies, attending energy stakeholders will have the opportunity to reinforce the case for regional integrated supply chains and pooling resources to leverage the catalytic power of hydrocarbons in a sustainable manner. Supported by countless multinationals across the energy value chain and national oil companies, CAPE VIII will feature illuminating insight from a range of illustrious keynote speakers, who will position to influence the future landscape of energy in Africa and beyond. Confirmed Keynote speakers notably include: H.E. Diamantino Pedro Azevedo, Minister of Mineral and Petroleum Resources of Angola, President of APPO; H.E. Mahamane Sani Mahamadou Issoufou, Minister of Petroleum, Energy and Renewable Energy Republic of Niger; H.E Gabriel Obiang Lima, Minister of Industry, Mines and Energy of Equatorial Guinea; H.E. Samson Gwede Mantashe, Minister of Mineral Resources and Energy, South Africa; H.E. Dr Matthew Opoku Prempeh, Minister of Energy, Ghana; H.E. Thomas Camara, Minister of Mines, Petroleum and Energy, Ivory Coast; H.E. Didier Budimbu Ntubuanga, Minister of Hydrocarbons, Democratic Republic of Congo; H.E. Mohamed Arkab, Minister of Energy and Mines, Algeria; H.E. Bruno Jean Richard Itoua, Minister of Hydrocarbons, Congo; H.E Vincent de Paul Massassa, Minister of Petroleum, Gas and Mines, Republic of Gabon; Toufik HEKKAR, CEO of Sonatrach, Algeria; Jianqiang Zhang, President, Sinopec Angola; Dr. Omar Farouk Ibrahim, Secretary General, African Petroleum Producers Association (APPO); Ms. Cany Jobe, Director of Exploration and Production, Gambia National Petroleum Corporation; Immanuel Mulunga, Managing Director, Namcor; Edson R Dos Santosi, CEO, SOMOIL ; Dr. Ibrahim Mamane, Directeur Général, SONIDEP ; Osam Iyahen, Vice President, Oil & Gas, Africa Finance Corporation; Bráulio de Brito, Chairman, Angola O&G Service Companies Association (AECIPA); Zakaria Dosso, Managing Director, AEICORP; Matthieu Milandri, Head of Upstream Finance, Trafigura; Yann Pierre Albert Livulibutt Yangari, Independent Consultant; Dr. Babafemi Oyewole, the CEO of Energy Synergy Partners; Tim Dixon, Director and General Manager, IEA Greenhouse Gas R&D Programme. The congress will notably welcome the participation of several African national oil companies (NOCS), including Sonangol (Angola), SNH (Cameroon), SHT (Chad), PETROCI (Côte d’Ivoire), SNPC (Congo), NNPC (Nigeria), Sonatrach (Algeria), GE Petrol and Sonagas (Equatorial Guinea), and SONIDEP (Niger). In this crucial period for the development of the industry in Africa & globally, CAPE VIII presents a unique opportunity to connect with key stakeholders from Africa’s petroleum producing countries. 

Unlocking Africa’s oil and gas potential is now imperative against the backdrop of the war in Ukraine and the resulting crude, diesel, and gas supply crunch. This has rendered European dependence on Russian energy untenable, creating a major opportunity for Africa to position itself as a crucial option to increase the supply to the global energy markets. However, significant challenges remain for the continent’s hydrocarbon producers to suddenly ramp up their production due to infrastructure, finance, and technology deficits. Countries with major LNG resources, such as Nigeria, Angola, Libya, and Algeria, suffer from limited and underdeveloped pipeline networks, refineries, jetties, terminals, and ports. Additionally, incentivizing foreign investment is often problematized by a host of risk factors, including political instability, local insecurity issues and financial institutions shifting investments from fossil fuels to renewables. Finally, securing the latest technology to facilitate local content development has proven cost prohibitive given the reliance on foreign intellectual property and the continual brain drain of key local human capital. All the above issues will be discussed at the 8th Africa Petroleum Congress and Exhibition (CAPE VIII) taking place from 16-19 May 2022 in Luanda, Angola.  The congress is organized by the African Petroleum Producers Organization (APPO), the government of the Republic of Angola (for the first time), and AME Trade Ltd. The three-day event will be centered around the theme of “Energy Transition: Challenges and Opportunities in the African Oil and Gas Industry,” and assemble experts from the national, regional, and international energy and oil and gas industries to deliberate the challenges and opportunities of the energy transition and the future of the oil and gas industry in Africa. CAPE VIII will unfold against the recession of the global pandemic that exacerbated record production declines across African hydrocarbon producing countries from 2020 to 2021. The annus horribilis was compounded by under-investment in exploration activities, leaving several of the continent’s biggest energy players struggling to cope with the post-lockdown surge in demand for hydrocarbons. Fortunately, APPO’s ambition to establish the continent as an energy hub regained significant headwind with a stellar upstream development outlook for 2022 and beyond. The congress will be the ideal platform for Africa’s leading oil and gas producers to confront the foregoing challenges and engender solutions to maximize its oil and gas resources. Amid the drive by developed economies towards decarbonization and net-zero policies, attending energy stakeholders will have the opportunity to reinforce the case for regional integrated supply chains and pooling resources to leverage the catalytic power of hydrocarbons in a sustainable manner. Supported by countless multinationals across the energy value chain and national oil companies, CAPE VIII will feature illuminating insight from a range of illustrious keynote speakers, who will mold the future landscape of energy in Africa and beyond. Keynote speakers at the conference will include: H.E. Diamantino Pedro Azevedo, Minister of Mineral and Petroleum Resources of Angola, President of APPO H.E. Mahamane Sani Mahamadou Issoufou, Minister of Petroleum, Energy and Renewable Energy Republic of Niger H.E. Samson Gwede Mantashe, Minister of Mineral Resources and Energy, South Africa H.E. Dr Matthew Opoku Prempeh, Minister of Energy, Ghana, H.E. Thomas Camara, Minister of Mines, Petroleum and Energy, Ivory Coast Dr. Omar Farouk Ibrahim, Secretary General, African Petroleum Producers Association (APPO) Ms.  Cany Jobe, Director of Exploration and Production , Gambia National Petroleum Corporation Mr. Edson R Dos Santosi, CEO, SOMOIL Dr. Ibrahim Mamane, Directeur Général, SONIDEP Mr. Osam Iyahen , Vice President, Oil & Gas, Africa Finance Corporation Mr. Bráulio de Brito, Chairman, Angola O&G Service Companies Association (AECIPA) Mr. Zakaria Dosso, Managing Director, AEICORP Mr. Matthieu Milandri, Head of Upstream Finance, Trafigura Mr. Yann Pierre Albert Livulibutt Yangari, Independent Consultant Mr. Dr. Babafemi Oyewole, the CEO of Energy Synergy Partners Tim Dixon, Director and General Manager, IEA Greenhouse Gas R&D Programme Confirmed National Oil Companies at CAPE VIII include. SONANGOL, Angola SNH, Cameroon SHT, Chad Petroci, Cote d’Ivoire SNPC, Congo NNPC, Nigeria Sonagol, Angola GE Petrol, Equatorial Guinea Sonagas, Equatorial Guinea CAPE VIII is sponsored by the continent’s leading oil and gas players including: SONANGOL, TOTAL ENERGIES, EXXONMOBIL, CHEVRON, EQUINOR, TRAFIGURA, SOMOIL, BRIMONT, SHEARWATER. Hawilti is a proud Communication Partner of Cape VIII.

VAALCO Energy, the independent company operating oil & gas projects offshore Central Africa, has just reported a strong net income of $31.7m for Q3 2021. The company sold 741,000 barrels of oil this past quarter, up 15% from Q2 this year, and benefited from a realised crude oil price of $73.02/bbl. As a result, VAALCO Energy’s shares were up almost +7% today and +75% since early January. VAALCO Energy’s stock is currently trading at $3.46/share. The company is listed on the New York Stock Exchange and completed a dual listing on the London Stock Exchange in September 2019, in a bid to access additional sources of capital. Source: Yahoo Finance The company’s shares passed the $3 threshold in February this year, a level they had not reached since July 2018. They are now trading at a new 5-year high that confirms its solid performance after it doubled its net interest production this year. VAALCO Energy’s flagship asset is its Etame Marin permit offshore Gabon, where it has been producing oil since September 2002. To keep developing the fields, it recently consolidated its interests in the licence by acquiring Sasol’s 27.8% working interest, concretely doubling its total net production and reserves in the process. Source: VAALCO Energy Bringing Gabonese Operations to the Next Level VAALCO Energy is currently engaged in significant expansion of its operations at Etame offshore Gabon. Following the completion of a 3D seismic acquisition in December 2020, it is starting a new drilling campaign on the block. The 2021/2022 campaign will target at least two development wells and two appraisal wells to add anywhere between 7,000 and 8,000 bopd of additional production. The Etame 8HST, the first well of the 2021/2022 drilling program, should be spudded in early December 2021. Meanwhile, VAALCO is expected to replace the FPSO Petroleo Nautipa, whose contract expires in September 2022, by a floating, storage and offloading (FSO) unit to cut costs and maximise operations. The company is also betting on additional exploration potential around Etame and provisionally secured a 37.5% non-operated interest in blocks G12-13 and H12-13 during Gabon’s 12th Licensing Bid Round that concluded in 2021. Both blocks’ areas surround the Etame complex and are now operated by BW Energy. Achieving First Oil in Equatorial Guinea VAALCO Energy has also completed the drilling feasibility study for a standalone development of the Venus discovery on Block P offshore Equatorial Guinea and is currently proceeding to a field development concept. The project is expected to rely on a floating, storage and offloading (FSO) unit with a platform on the shelf (jack-up production unit). The PSC for Block P provides for a development and production period of 25 years from the date of approval of a development and production plan. An indicative timeline given by VAALCO in 2021 notably expects development drilling at Venus to start in October 2024 to achieved first oil in January 2025. Full details on VAALCO Energy’s operational and financial performances along with the company’s projects offshore Gabon and Equatorial Guinea are available in the “Companies” and “Projects” section within your Hawilti+ research terminal.

Trident Energy’s ongoing offshore campaign in Equatorial Guinea continues to progress with the successful installation this month of a new gas lift distribution unit (GLDU) at Ceiba. This notably follows the successful completion on the field of a deep offshore hot tapping operation in April this year, and the start of a three-well drilling campaign last June. The installation of a new GLDU was necessary in order to replace the existing one where gas leaks were detected on the seabed four years ago when Trident Energy and Kosmos Energy acquired The Ceiba & Okume complex on Block G from Hess. Ceiba and Okume are two of the Gulf of Guinea’s most attractive brownfield assets. Earlier this year, Panoro Energy completed its acquisition of Tullow Oil EG, securing in the process a 14.25% non-operated working interest in Block G.   Ceiba relied on 16 production wells and 10 water injectors as of 2020 and its contract expires in 2029. On the other side, Okume relies on 32 production wells and 12 water injectors and its contract expires in 2034. Source: Kosmos Energy The 2021 drilling campaign focused on three new wells: Elon-C, Elon-A and Elon-D. Moving forward, production over 2023-25 could then be further increased if driven by facility upgrades, well workovers, perforation of behind pipe zones and infill drilling. Full details on the Ceiba & Okume Fields Development (Block G) are available in the “Projects” section within your Hawilti+ research terminal.

VAALCO Energy has announced that it has completed the feasibility study for the development of the Venus discovery offshore Equatorial Guinea’s mainland. The discovery was made back in 2005 and is located within Block P, where VAALCO farmed in in 2012. The block’s estimated ultimate recovery (EUR) is of over 20 million barrels of oil equivalent. The company has negotiated a new amendment to the 2012 production sharing agreement and now expects to see its working interest increase to 45.9% upon approval of the Ministry of Mines and Hydrocarbons “The company is now proceeding to a field development concept and will work closely with the other joint venture owners to complete this over the coming months,” VAALCO Energy said in a statement last month. Once the development and production plan is approved, the PSC over Block P provides for a development and production period of 25 years. The announcement of a new standalone development project offshore Equatorial Guinea should be good news for a country that has struggled to reverse declining output in recent years. Equatorial Guinea currently produces about 110,000 barrels of oil per day (bopd) down from 160,000 bopd in 2016 according to OPEC data. Source: OPEC secondary sources

Authorities in three Central African countries of Cameroon, Gabon and Equatorial Guinea, officially launched the annual CEMAC Cross-Border Fair (FOTRAC) In August with the aim of stimulating economic activities in a region hard hit by the Covid-19 pandemic. Spread over ten days, the fair in the CEMAC zone is organized in the Cameroonian city of Kyé-Ossi, which shares borders with the three countries. The activities of the fair take place under the theme “Relaunching intra-regional trade for peace, the socio-economic and cultural development of Africa despite the Covid-19”. “This is the post-Covid-19 edition of the show. We closed our borders when the pandemic was at its peak and it did affect cross-border trade. We hope that this edition of the fair will significantly revive economic activities now that the borders are open,” Félix Nguelle Nguelle, governor of the southern region of Cameroon hosting the event, told reporters. For the organizer of the event, Danielle Nlate, also president of the Network of Active Women of the Economic and Monetary Community of Central Africa (REFAC), the fair will strengthen sub-regional integration within the framework of the free movement of people and property in the area. Note this year the presence of all 11 ECCAS countries, the Economic Community of Central African States: Angola, Burundi, Cameroon, Central African Republic, Congo, DRC, Gabon, Guinea Equatorial, Rwanda, Sao Tome and Principe, and Chad, in addition to Senegal.