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Scatec ASA has reached financial close for one of Africa’s first and largest standalone dispatchable battery energy storage system (BESS) called the Mogobe facility near Kathu, Northern Cape, which is close to high power demand centres

With an estimated capacity of 103 MW / 412 MWh, final preparations are ongoing before the beginning of its construction. Worth US$170mn of capex, the project's engineering, procurement, and construction (EPC) contracts that will be covered by Scatec, accounts for approximately 83%. Scatec will also provide operations & maintenance (O&M) as well as asset management (AM) services. 

Scatec will own 51% of the equity in the project with Perpetua Mogobe owning 46.5% and a holding company of the Mogobe Local Community Trust 2.5%. 

“This marks a new milestone for Scatec in South Africa and for the renewable energy transition in the country. The Mogobe BESS project is a first of a kind and reaffirms our standing as a leading renewable energy player in South Africa. We continue to see attractive growth opportunities in the market based on the need for growth in power generation, our strong position in the country and our strong and competent local team,” said Scatec CEO Terje Pilskog.

“We are showing and supporting that dispatchable energy and grid infrastructure are cornerstones to the sustainability of South Africa’s current and future energy system. By unlocking more grid capacity, we are enabling further electricity access, as well as enabling more renewable energy grid connections in years to come,” said Roar Haugland, executive vice-president, sub-Saharan Africa, Scatec.

Financing innovative energy solutions

Mogobe BESS was awarded a 15-year power purchase agreement (PPA) under the first bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) in South Africa. As part of the PPA, Scatec will receive payments for making the storage capacity available for the National Transmission Company of South Africa (NTCSA) which will utilise the capacity to balance the grid.

The project will be financed by US$154mn of non-recourse project debt, with the Standard Bank of South Africa as mandated lead arranger, and the remaining by equity from the owners.

“Standard Bank is proud to continue our long-standing partnership with Scatec as the lead arranger for the groundbreaking Mogobe BESS project. This facility represents a significant step forward in South Africa’s energy transition, building on our successful collaboration on projects like Kenhardt. We’re committed to financing innovative energy solutions that drive sustainable development and economic growth in South Africa and across the continent,” said Rentia van Tonder, head of power - corporate and investment banking, Standard Bank of South Africa. 

Incidentally, South Africa remains one of the nine pilot countries – impacted by climate policies – which the European Investment Bank Global will support with its just resilience approach launched during the COP28. 

Shearwater Geoservices Holding AS has signed an ocean bottom node (OBN) project contract with TotalEnergies in Angola

The deepwater OBN survey will be conducted by the dual remotely operated vehicle (ROV)-equipped SW Tasman, the fit-for-purpose seismic node laying vessel which was converted in 2023, and SW Gallien as source vessel. A three-month-long operation approximately, the survey will commence in January 2025, with Shearwater deploying its compact high-endurance Pearl node in Block 32 over the Louro and Mostarda fields. The company has previously completed a 4D streamer survey in the region for TotalEnergies. 

TotalEnergies keeps cementing its presence in Angola as the major reached a US$6bn final investment decision (FID) on the Kaminho Deepwater Development in May, marking the first major deepwater development in the Kwanza Basin.

Introducing deepwater OBN

Shearwater CEO, Irene Waage Basili, said, "We are very satisfied with the performance of our SW Tasman/Pearl OBN platform which has been in continuous operation since its introduction last year. We are pleased to see one more key client use this unique platform to introduce deepwater OBN to new areas of their operations." 

Last month, the company has also secured a 4D seismic monitoring contract for the Jubilee field in Ghana, operated by Tullow Ghana Ltd.

TAQA, an international company offering leading well solutions for the energy industry, has revealed the next-generation inflow control system

The M4 Inflow Control System dictates the flow of undesired fluid (such as water and gas) and avoids any binary (open/close) effect that can result in instability or even stop production. Enabling operators to optimise their reservoir performance while sustainability managing fluid production, the new system excels in controlling water in ultra-light and light applications and enhances gas production control, providing stability and flexibility in diverse reservoir conditions.

Supercharging reservoir performance

“With the largest portfolio of inflow control systems more than 20 years of inflow control devices expertise, the M4 Inflow Control System represents the pinnacle of our innovation so far,” remarked Mojtaba Moradi, subsurface engineering manager of TAQA. “This new generation offers water control by gradually reducing inflow as water production increases, avoiding premature well shut in.
“Its main benefit is precision control based on reservoir production. The device allows operators to maximise output without risking shutting wells in, so they can manage production continuously and efficiently, which translates into obvious financial benefits.”

According to TAQA, the M4 Inflow Control System technology incorporates an advanced pilot control system that is super sensitive to density, making it suitable for a wide range of oil types, including ultra-light, light, medium, and heavy oils. It also features advanced multi-phase control, allowing the device to perform independently of its orientation in the wellbore.

TAQA also offers a ‘plug and play’ integration with its full portfolio of inflow systems and has been built to optimise performance in all types of wells in all reservoir types. Additional operational features such as last-minute capacity change, and the ability to circulate to the bottom have also been incorporated into the design.

Although not limited to any oil viscosity, so far, the system has demonstrated excellent performance with oil viscosities as low as 0.5cP tested together with water to define the operating and control points at various water cuts. A full qualification matrix of debris, erosion and cycle testing has also been completed.

At AOW: Investing in African Energy held in Cape Town form 7-10 October, a dedicated panel discussion considered how the continent can secure its future in a changing landscape

Specifically, the session was dedicated to the role of gas, with the pipeline of associated projects in the continent never being stronger. However, if Africa is to be competitive in a dynamic international gas market, it must ensure that it offers value. This means shaping an offer that meets the financial and environmental sustainability of stakeholders; gas investment propositions must be relevant and future-proof or global capital will not be forthcoming.

“Natural gas is at the centre of what we are doing in Africa,” commented Mario Bello, head of sub-Saharan Africa region at Eni. “It’s the cleanest fossil fuel, producing fewer emissions than coal, so it plays an important role as we transition to renewables… Floating LNG is the key to unlocking the region’s gas potential, making it easier and faster to develop offshore resources.”

A stable investment environment

Meanwhile, Paul Eardley-Taylor, head of oil & gas, southern Africa at Standard Bank, considered the financing challenge that remains a significant hurdle for projects. He emphasised the need for bankable projects that address investor concerns, particularly around sovereign risk. He also drew attention to the transformative potential of large-scale LNG projects and smaller, domestically-focused gas ventures, labelling the impact they could have in African markets “incalculable”.

Stressing the importance of a stable investment climate to attract international capital, Equinor’s senior vice president for Africa, Nina Birgitte Koch, said, “CO2 is the key criteria. It’s not just a ‘nice to have’ any more. I don’t think it’s possible to get capital to a big LNG project unless it’s highly competitive when it comes to CO2."

Tshepo Mokoka, Group COO of South Africa’s Central Energy Fund (CEF), raised the call for government intervention to address market failures and unlock investment. He outlined CEF's role in enabling critical gas infrastructure projects, such as the Romp pipeline and LNG import terminals. “We need to solve the market failure,” Mokoka surmised, highlighting the need for government-backed gas offtake agreements and risk-sharing mechanisms to attract private capital.

ExxonMobil’s executive director global, LNG marketing, Deri Irawan, emphasised the importance of a holistic approach to project development, considering not just the technical and economic aspects but also the social and political landscape. He commented on the need for strong partnerships and stakeholder engagement to ensure long-term project success. “It is insufficient to just bring a commodity to the doorstep. You also need to unlock that value chain.”

Gianluca Ciricugno, Africa director, enterprise customer solution at Baker Hughes, took the opportunity to stress the need for a long-term vision and collaboration between governments, investors, and technology providers. He urged, “It requires a broader vision, probably government and all the people around the table, with a long-term approach… and not just four-year terms.”

TotalEnergies and the Nigerian National Petroleum Corporation Ltd has reached a final investment decision (FID) for the development of the Ubeta gas field 

Located about 80 km northwest of Port Harcourt in Rivers state, the Ubeta gas field falls under OML 58 onshore license which is operated by TotalEnergies with a 40% interest while NNPC holds the other 60%. 

The development plan includes the installation of a 11 km buried pipeline to connect Ubeta's new six-well cluster to the existing Obite facilities, thus allowing emissions reduction and cost efficiency. A 5 MW solar plant is currently under construction at Obite to further alleviate carbon intensity. A completely electrified drilling rig will be deployed for production which is due to start in 2027.

During COP28, TotalEnergies signed an agreement with NNPCL among other African oil companies to deploy its advanced drone-based technology AUSEA on oil & gas facilities in Nigeria, and soon after, an inspection of OML 100 field in south-eastern Niger Delta confirmed that their joint venture has achieved zero routine gas flaring across all its assets, including OML 58. 

Favourable government initiatives

While things are looking up in terms of sustainable practices, Nigeria is also focusing on production optimisation, and its recent collaboration with SLB testifies this approach. 

The Ubeta field capacity is expected at approximately 70,000 bopd including condensates. The Obagi oil field and the Ibewa gas and condensate field that also belong within OML 58 are currently in production. The gas yield is processed in the Obite treatment centre for supply to the Nigerian domestic gas market as well as Nigeria LNG (NLNG) plant. 

TotalEnergies owns a 15% interest in NLNG, which is a liquefaction plant in Bonny Island, with an on-going capacity expansion from 22-30 Mtpa. 

With more than 90% of manhours to be worked locally, the major, along with NNPCL, is aiming to enhance local content.

“Ubeta is the latest in a series of projects developed by TotalEnergies in Nigeria, most recently Ikike and Akpo West. I am pleased that we can launch this new gas project which has been made possible by the Government’s recent incentives for non-associated gas developments. Ubeta fits perfectly with our strategy of developing low-cost and low-emission projects, and will contribute to the Nigerian economy through higher NLNG exports,” said Mike Sangster, senior vice president - Africa, exploration and production at TotalEnergies.

Artificial intelligence solutions providers AIQ and Inception have signed an agreement to drive technology innovation and transformation in the energy sector

Announced at GITEX Global 2024 in Dubai, the partnership will aim to enhance efficiency, improve safety and sustainability, and reduce costs through revolutionary near-real time data processing, advanced multi-modal insights, and AI-assisted automation across the entire energy value chain.

“Joining forces with Inception in this strategic partnership will see AIQ unlock new opportunities for growth and transformation in the Energy sector, pushing the boundaries of AI innovation and driving real, impactful change,” said Magzhan Kenesbai, acting managing director at AIQ. “This collaboration is testament to our commitment to enhancing productivity and sustainability, while reinforcing the UAE’s position as a global hub for technological excellence.”

Ashish Koshy, chief operating officer of Inception, said, “Our partnership with AIQ marks a defining moment in how artificial intelligence combined with domain expertise can accelerate innovation in the Energy sector. By combining our expertise in large language and advanced AI models with AIQ’s industry expertise and proven track record in the Energy sector, we are confident that together we will deliver solutions that will set new standards for operational excellence, efficiency, and sustainability. Our partnership with AIQ marks a defining moment in how artificial intelligence can accelerate innovation in the energy sector.”

The collaboration will focus on leveraging advanced technologies that enable faster decision-making and improve real-time data processing capabilities, empowering the energy sector to navigate the complexities and demands of operations with greater intelligence and agility. As part of the agreement, both companies will also explore opportunities to enhance AI models and accelerate the deployment of AI solutions across the energy value chain.