In The Spotlight
Orange Basin-situated Block 3B/4B offshore South Africa sees further reshuffling of interests as Africa Oil Corporation has acquired 1.0% additional share from partner Azinam Limited, a subsidiary of Eco Atlantic Oil & Gas Limited
Last year, Africa Oil had announced a farm down agreement for Block 3B/4B with TotalEnergies and QatarEnergy, which includes the transfer of operatorship of the Block to TotalEnergies. Total enjoys a 33.00% interest, followed by a 24.00% interest by QatarEnergy, 19.75% interest by Ricocure, 18.00% interest by Africa Oil, and a 5.25% interest by Eco Atlantic.
First drilling
“This transaction is another step in delivering the strategy of increasing direct interest in Africa Oil’s key assets, including our opportunity set in the Orange Basin, a region with high levels of industry interest and activity. We thank Eco Atlantic's management for their collaborative approach in working with us since 2017, and we look forward to further progress towards the drilling of the first exploration well on Block 3B/4B,” said Roger Tucker, CEO, Africa Oil.
While an Environmental Authorisation has been granted by the Department of Mineral Resources and Energy for the Republic of South Africa, the partners are currently awaiting relevant approvals to begin drilling of as many as five exploration wells. Approximately 14,000 sq km of 2D seismic and 10,800 sq km of 3D seismic make up Block 3B/4B, with the greatest prospects lying in an estimated water depth of 1,500m. It is said that the Block holds resources of approximately four billion barrels of oil equivalent.
The much anticipated petroleum exploration license-PEL39 offshore Namibia turned out to be a disappointment for Shell, as the company announced the discovery a write down of approximately US$400mn, reported Reuters
Speaking about the discovery, the British oil major is reported to have said that the resources from the block 'cannot currently be confirmed for commercial development'. According to Shell CEO, Wael Sawan, Namibia's acreage was 'very challenging', with lower permeability of the rock making exploration difficult. The company is said to have faced wide ranging challenges in the technical and geological fronts, topped by high natural gas presence. Experts believe that having to deal with gas presence even before oil could be produced is no mean feat and requires costly engineering solutions. High gas presence at the beginning of production means once it fizzles out, reservoir pressure sees a sharp decline, rendering oil production a dicey job.
'Not a setback'
'While we recognise that extracting the discovered resources presents challenges, the extensive data collected shows that there remain opportunities. Together with our partners, we are continuing to explore potential commercial pathways to development, while actively looking for further exploration opportunities in Namibia', read a statement from the company.
This comes as a discord as PEL39 has been very giving since 2022, when Shell and its partners, QatarEnergy and the National Petroleum Corporation of Namibia-NAMCOR made their first discovery in the region. Several others have followed as Shell drilled nine wells in the licence over the last three years.
Growing global interests from exploration and production companies such as QatarEnergy, Chevron and Galp, to name a few, have set off a whole oil & gas ecosystem in the region, with tech giants Halliburton and Baker Hughes opening facilities, and high stakes logistics contracts coming into effect.
"It is not a setback. We are positive that the remaining potential of PEL39 and other exploration campaigns will translate into commercial developments," said Namibia's Ministry of Mines and Energy in a statement on Shell's decision.
Vantage Drilling International Ltd has created a joint venture entity with TotalEnergies called TEVA Ship Charter LLC
The entity have all definitive agreements executed to acquire the Tungsten Explorer rig, which is currently held under contract for operations in Congo. Once completed, a sale and purchase agreement has been put in place to take over the rig, besides a management agreement that allows Vantage its operation for 10 years with the option to extend for an additional five years.
Offshore drilling collaboration
Ihab Toma, CEO of Vantage Drilling, said, “We are proud to partner with TotalEnergies in this joint venture, marking a significant milestone for both companies. The creation of TEVA and the execution of all definitive agreements reinforce our shared commitment to value creation through collaboration and creative business models in offshore drilling. We look forward to leveraging our expertise to ensure the long-term success of this partnership.”
Chevron has reported to have not found commercial hydrocarbons from the Kapana 1-X exploration well located on Block 2813B under Petroleum Exploration License 90 (PEL 90)
This comes after Shell's write down on PEL39.
Operated by Chevron-subsidiary Harmattan Energy Limited, PEL 90 also includes Custos Energy-subsidiary Trago Energy with a 10% interest.
Valuable geologic insights
Chevron, however, has acknowledged the data acquired from exploration operations as hopeful in terms of future programme on PEL 90. “The geologic insights and improved confidence in the future programme on PEL 90 from these operations provides strong support for continued progress and value in our portfolio in Namibia’s Orange Basin,” said Knowledge Katti, chairman and CEO of Custos.
“We look forward to the many opportunities ahead to further unveil the quality of our unmatched position in the heart of the Orange Basin including the future activity on PEL 90 and the ongoing activity on PEL 83”. added Robert Bose, CEO of Sintana Energy, which enjoys a 49% indirect interest in Custos Energy.
The Mopane 1X well testing operations on PEL83 showed significant oil columns containing light oil in high-quality reservoir sands at two different levels: AVO-1 and AVO-2.
Pancontinental Energy NL has delivered the Seismic License for PEL 87 offshore Namibia to Woodside Energy following relevant approval from the Namibian authority
The Seismic License provides Woodside ongoing rights to the PEL 87 3D seismic data, the acquisition and processing of which was funded by it. While Pancontinental Orange Pty Ltd holds 75% operatorship in the PEL 87 Joint Venture, there is an exclusive scope for Woodside to derive over a 56% participating interest from Pancontinental’s shares.
Pancontinental, on the other hand, has an option over a 1% participating interest to be derived from the 15% share exercised by Custos Investments (Pty) Ltd.
The Seismic License delivery marks the origin of the 180 days-long Long Stop Date which is 18 May 2025, when Woodside Energy may exercise its option to farmin to PEL 87.
Orange Basin
Besides Pancontinental and Custos, the National Petroleum Corporation of Namibia (NAMCOR) owns a 10% interest in the PEL 87 Joint Venture.
PEL 87 belongs in the Orange Basin which keeps giving, with latest light oil discovery reported in March from Mopane in PEL 83.
GlobalData has released its strategic intelligence report, titled, 'Virtual Reality in Oil and Gas' that looks into areas of application of virtual reality in the industry, from rigs and pipelines to refineries
Oil and gas companies are now investing on training modules for the workforce and visualising the asset under consideration for planning and decision making.
Ravindra Puranik, Oil and Gas Analyst at GlobalData, said, "VR enhances the operational safety through immersive training programmes. It can help develop safety procedures at production facilities to address smaller accidents as well as for emergency response."
Companies such as Shell, bp, Chevron, and ExxonMobil, are using VR as a cost-effective option to train as well as aid regular workflows in operations. These sessions usually comprises virtual walk-throughs, away from heavy industrial equipment.
Puranik said, “Industry technicians work in hazardous environments, such as offshore rigs or at a densely packed equipment maze in a refinery. VR can be used to relay important information and instructions to the technician onsite, without the need to fly out experts to that location or carrying detailed instruction manuals for referencing.”
VR plays a key role in the digital twin set up, helping companies recreate scenarios through detailed simulations. During planning and development, the collaborating teams can share information using VR to simulate various scenarios. It is useful in optimizing equipment performance and maximizing the asset life. Digital twins help to design workflows and identify bottlenecks to optimize a plant’s performance. Twins also help to create a 3D visualization of the seismic data using VR simulations.
Puranik concludes: “Various aspects of a production platform can be modeled through VR simulations to enhance the understanding of personnel for on-field tasks. They can simulate the processes using VR before implementing on the operational floor. It thus reduces the scope for human errors during critical operations. Besides, designers and engineers can better visualize the layout under development using VR technology. This can potentially help to improve designs, and carefully plan its execution to optimize the project costs.”
The Sanha Lean Gas Connection (SLGC) project has achieved first gas that is being directed to the Angola LNG Plant (ALNG) via Congo River Crossing Pipeline (CRX)
A project by Chevron-subsidiary Cabinda Gulf Oil Company Limited (CABGOC) and Block 0 partners, around 300 mn st cu/ft of gas is currently being mobilised from the SLGC development before it starts delivering an additional 80 mn st cu/ft. The CRX pipeline will be operating in its full capacity by the time further 220 mn st cu/ft is injected via booster compression module.
To pull off this mega gas supply project from CABGOC base to ALNG, the SLGC facility in Benguela was given a new platform for integration with the existing Sanha facilities and the CRX Pipeline.
"First gas from the Sanha Lean Gas Connection shows CABGOC’s success in maximising value from existing resources in Block 0 while growing capabilities in Angola," said Billy Lacobie, managing director of Chevron's southern Africa Strategic Business Unit. “The Sanha Lean Gas Connection project will help supply gas from Block 0's Sanha field to Soyo power plants and Angola Liquefied Natural Gas (ALNG), serving as a gas hub for CABGOC operations. As a long-term partner, Chevron builds upon a legacy of 70 years of operational excellence in Angola and remains dedicated to continuing to provide reliable, affordable, and lower carbon energy to benefit the people of Angola.”
The Sanha project delivery has largely been in schedule, since Lacobie had explained the company's gas boosting strategies in the region.gas boosting strategies in the region.
The Block 0 concession that lies by the Cabinda coast is operated by CABGOC which has a 39.2% interest. It also enjoys a 31% operated interest in a production-sharing contracts in deepwater Blocks 14, located West of Block 0. CABGOC also holds the largest equity shares at 36.4% in the ALNG project in Soyo, and 31% shares in the Azule Energy-operated New Gas Consortium.
Gas remains an integral part of Angola's asset diversification strategies.
The Nigerian National Petroleum Company (NNPC) Ltd has restreamed the Port Harcourt Refining Company (PHRC), commencing crude oil processing from the plant for the delivery of petroleum products into the market
The NNPC group chief executive officer, Mele Kyari, announced the development, expressing his gratitude to all stakeholders involved, and marked the occasion as an era of energy independence and economic growth for the country.
Products delivered included premium motor spirit (PMS), automotive gas oil (AGO) and household kerosene (HHK), among others.
The PHRC rehabilitation project, is an engineering, procurement, construction, installation and commissioning (EPCIC) project that is aimed at restoring the refinery to full functionality and renewal.
With an aim to leverage a US$10 trillion economic potential, Abu Dhabi Sustainability Week (ADSW) 2025 will bring together 13 heads of state and more than 140 ministers, under the patronage of Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE
With this year's theme being 'The Nexus of Next. Supercharging Sustainable Progress', the role of advanced technologies such as Artificial Intelligence will drive conversations at the ADSW Summit to be held from 14-15 January.
Heads of state participating in the ADSW Summit include Ilham Aliyev, President of Azerbaijan; Kassym-Jomart Tokayev, President of Kazakhstan; William Ruto, President of Kenya; Bola Tinubu, President of Nigeria; Paul Kagame, President of Rwanda; Wavel Ramkalawan, President of Seychelles; Yoweri Museveni, President of Uganda; Shavkat Mirziyoyev, President of Uzbekistan; Edi Rama, Prime Minister of Albania; Petteri Orpo Prime Minister of Finland; Giorgia Meloni, Prime Minister of Italy, and Anwar Ibrahim, Prime Minister of Malaysia.
"Under the theme, ‘The Nexus of Next: Supercharging Sustainable Progress’, ADSW 2025 invites you to discover the unprecedented socioeconomic opportunities that lie on the horizon and stand at the Nexus of Next. ADSW is not just a platform, but a bold call to action to explore and learn how interconnected systems are driving a new era of supercharged progress, unlocking endless possibilities to help build a better tomorrow for all,” said Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar.
"ADSW Summit 2025 comes at a pivotal moment for accelerating global sustainable development, with technological advances providing unprecedented opportunities for social, environmental and economic progress. The ADSW Summit will serve as a foundational platform to drive the systemic change needed to take advantage of those opportunities, amplifying diverse voices to catalyze change through connection and accelerating the transformation to a more sustainable future. By bringing together leaders in policy, business and technology, ADSW Summit 2025 will unite the global community to deliver interconnected solutions for energy, economies, and the environment," said Mohamed Jameel Al Ramahi, Chief Executive Officer, Masdar.