In The Spotlight
Wildcat Petroleum has signed an MOU with the Ministry of Petroleum (MOP) covering the following:
To establish a collaboration agreement to form a Production Sharing Service Agreement (PSSA) between the MOP and WCAT to work together to advance the development and commercial exploitation of the hydrocarbon assets in selected fields in the Republic of South Sudan.
A working party made up of members of both WCAT and MOP will be established to select suitable fields for development and agree suitable terms and conditions.
The MOU is valid to 31 May and recognises the current status of existing exploration and production contracts in South Sudan including pre-emption rights. It can be terminated on 30 days' notice by either party.
Chairman Mandhir Singh said, "It was very disappointing that the Company was unable to secure the Bamboo field in Sudan (North), however the Company hopes to make up for this disappointment by concentrating on South Sudan."
Yinson Production is pleased to announce the successful closing of the limited recourse term loan facility of up to US$1.3bn for the pre- and post-delivery financing of the Agogo FPSO.
The financing is provided by a consortium of 13 lenders, including international banks and institutional investors, and will be utilised over the course of the construction of the FPSO. The financing comprises three pari-passu secured tranches with staggered maturities of up to 10 years post-delivery of the FPSO. Subject to satisfaction of certain conditions, the financing will become non-recourse post-delivery of the FPSO. Standard Chartered Bank (Singapore) Ltd. acted as Global Coordinating Bank for the financing.
Yinson Production entered into a firm contract for the provision, operation and maintenance of the Agogo FPSO with Azule Energy, a 50/50 joint venture between BP and Eni, Angola’s largest independent oil and gas producer, in February 2023. The contract has a firm operation period of 15 years, with additional optional periods of up to 5 years and a total contract value of up to approximately USD 5.7 billion. The Agogo FPSO will have a production capacity of 120,000 barrels of oil per day. Once construction is completed, the Agogo FPSO will be deployed to the Agogo Integrated West Hub Development Project located in the West Hub of Block 15/06 offshore Angola.
The Agogo FPSO is designed with a comprehensive suite of carbon emission reduction technologies, including the first-ever carbon capture technology onboard an FPSO. With an estimated reduction of carbon emissions of 27% compared to a conventional design, the Agogo FPSO also incorporates other technologies to reduce emissions including closed flare system, hydrocarbon blanketing, combined cycle technology, automated process controls and all electric drives systems. These features are integral to Yinson Production’s transition towards achieving carbon neutral by 2030 and net zero by 2050.
Commenting on the successful closing of the financing, Yinson Production’s chief financial officer, Markus Wenker said, “This transaction is a significant milestone for Yinson Production. It not only is our single largest financing to date, but the commercial multi-tranche structure – the first of its kind in the industry – significantly increases the efficiency of the financing compared to traditional structures, whilst diversifying the funding base by combining different lender groups in a single transaction. We thank all our lenders for their trust in us and support in passionately delivering this powerful financing solution for the Agogo FPSO.”
bp-Eni joint venture Azule Energy and private exploration company Rhino Resources Namibia have executed a farm-in agreement in regards to the highly prospective Orange Basin offshore Namibia
Air Products, a provider of liquefied natural gas (LNG) technology and equipment has announced its dual mixed refrigerant LNG Process technology (AP-DMR) and equipment, which has been deployed at the Coral South floating liquefied natural gas (FLNG) plant in Mozambique, Africa, has successfully passed its performance test achieving LNG production above 3.4 mn tons per year.
Air Products’ proprietary AP-DMR LNG Process was selected because of its high efficiency, reliable operation, and compact footprint. AP-DMR’s superior process efficiency combined with the use of aeroderivative machinery translates to a lower carbon intensity than all other LNG processes in floating service.
Coral South FLNG is Mozambique’s first operating LNG project, and the first deep-water FLNG project for Africa. It is the second largest FLNG facility in the world. Air Products’ involvement with this project started in 2013 with conceptual work, resulting in the selection of the AP-DMR LNG process technology and equipment, including the supply of two proprietary coil-wound main cryogenic heat exchangers (CWHEs), one for precooling and one for liquefaction within the facility.
The CWHEs for the Coral South project were fabricated at Air Products’ LNG equipment manufacturing facility in Port Manatee, Florida. Additionally, Air Products provided expert, technical advisory services for the installation, commissioning, start-up, and performance testing.
“Having been selected to participate in this landmark project is a significant achievement and the first project to leverage our very efficient AP-DMR LNG process. Our supplied equipment having successfully completed performance testing is the direct result of the expertise and experience of our team, from all areas of the LNG business, working in close collaboration and in support of TP JGC Coral France (the EPC joint venture of Technip Energies France SAS and JGC Corporation) executing the project and Coral FLNG S.A. (the owner/operator),” said Dr. John Palamara, general manager – LNG at Air Products.
Air Products’ AP-DMR LNG Process has also been selected for the Energía Costa Azul LNG land-based project in Mexico which is currently under construction.
PGS has announced that early-out data is now available for the EGY23 Merneith & Luxor MultiClient programme
Aberdeen-based Deep Casing Tools has won a King’s Award for Enterprise in the International Trade category.
The firm, a provider of innovative solutions for the global oil and gas industry, has been recognised for its robust international trade growth strategy, which has successfully driven an increased footprint in the Middle East, Asia Pacific and Latin America. In response to increasing demand for its technology, the company recruited an additional seven people last year, including three strategic appointments in Saudia Arabia and the United Arab Emirates, increasing the total number of employees globally to 25.
David Stephenson, Deep Casing Tools CEO said, “We have significantly increased our overseas footprint in recent years by entering new territories, and it is fantastic to see our efforts recognised with a King’s Award for Enterprise. By diversifying our business internationally, prioritising markets with the highest growth potential and building strategic alliances, we have built a strong track record across the regions we operate.
“Our global growth strategy has been led by a combination of robust research and development with in-depth market knowledge to identify opportunities for expansion and development, whilst continuing to deliver a personal, bespoke service to each of our customers. I am delighted for our team, this award is a testament to their continued hard work and dedication and I look forward to building on this success in the coming years.”
Deep Casing Tool’s suite of technology includes the TurboCaser, TurboRunner, MechLOK and Rubblizer. All were deployed around the world in 2023, delivering a total of 64 projects, with the TurboCaser accounting for 73% of its global commerce.
The high-speed, turbine-powered casing running system helps drilling teams to land casings and intermediate liners at target depth in even the most complex wells. It’s 75% faster than conventional technology and can save up to three days per project, delivering significant efficiencies.
The company has experienced significant demand for the solution, particularly in Saudia Arabia and the United Arab Emirates. During a recent project offshore Abu Dhabi, the application of the TurboCaser enabled a major operator to save more than 1,500 rig time hours, US$13.7mn in operational costs and 4,247 MT in CO2 emissions when compared to traditional methods.
Technology group Wärtsilä has signed a 10-year Operations and Maintenance (O&M) Agreement for a captive power plant providing the energy for a Nigerian cement producing facility.
The new cement plant is owned by Mangal Industries and is located in Kogi State, Nigeria. The order was booked by Wärtsilä in Q2, 2024.
The power plant is critical to the facility’s cement production since the site is remotely located with limited access to the electricity grid. It operates with five Wärtsilä 34DF dual-fuel engines delivering an output of 50 MW. The O&M agreement is designed to ensure that the facility can reliably maintain its cement production target of three million metric tons per year.
“We are reliant on the power plant for our operations. This is why we have opted to take advantage of Wärtsilä’s depth of experience and know-how to run and maintain the power plant. Not only will the agreement provide the assured reliability we need, but it also gives us cost predictability,” said Fahad Mangal, Managing Director, Mangal Industries Limited.
The ten-year agreement starts immediately as the facility commences operations in Q2, 2024, running on liquid fuel initially. The facility will switch to natural gas operation when the natural gas pipeline will be commissioned. The power plant’s dual-fuel engines can be operated both on liquid fuel and natural gas and could be converted to operate with future low- or zero-carbon fuels when they become available.
“Wärtsilä now has more than 400 MW of installed capacity for the cement industry in Nigeria, and we are operating three captive power plants in three different states. This successful track record clearly indicates our capabilities and highlights the added value we can deliver to our customers through our experience and expertise in supporting their operations,” comments Patrick Borstner, Director, Operations Africa at Wärtsilä Energy.
Nigeria has an increasing demand for cement for its many infrastructure projects, and there has been a domestic supply gap. With this new plant, Mangal will partly address this issue.
The US$20bn, 650,000-bpd Dangote Refinery in Nigeria has completed its first shipment of diesel and jet fuel to the local market since it started production in January
Africa's prominent upstream and energy event, AOW 2024 is set to run from 7-10 October at the Cape Town International Convention Centre (CTICC)