Reconnaissance Energy Africa Ltd. (ReconAfrica) has provided an update on its operations regarding Petroleum Exploration Licence 073 (PEL 73) in onshore Namibia

Brian Reinsborough, president and CEO of Reconnaissance Energy Africa, commented, "We continue to make progress on the drilling of the Naingopo exploration well on PEL 73 onshore Namibia. We have set our last casing point prior to drilling into the Otavi reservoir section. We encountered slower drilling rates in the deeper section of the Mulden formation and experienced tight hole conditions while setting casing, which has caused delays to our original schedule. As part of the planned drilling program, we are switching out the blowout preventer to 10,000 psi ahead of drilling deeper intervals. Drilling will commence in the coming days and we expect soon thereafter to penetrate the primary objective of the Damara Fold Belt play, the Otavi carbonate reservoir. We plan to be drilling through October before reaching total depth and will disclose well results after thorough analysis of the logs and any obtained fluids. Construction operations are proceeding on schedule to spud the Kambundu exploration well (Prospect P). This well is expected to spud following the completion of the Naingopo exploration well."

Exploration activities 

The Naingopo well targets 181 million barrels of unrisked prospective light/medium oil resources or 937 billion cubic feet of natural gas resources, based on the latest estimates from Netherland, Sewell & Associates, Inc. (NSAI). The well will be drilled to a depth of approximately 3,800 metres (12,500 feet) and is expected to encounter five Otavi reservoir intervals targeting both oil and gas. Success could unlock further drilling opportunities and potentially access multiple drill-ready prospects.

Construction of the access road and well pad for the second Damara Fold Belt exploration well, Kambundu (Prospect P), is progressing as planned, with drilling expected to begin in late November or early December 2024.

The Kambundu well (Prospect P) is also targeting significant resources, with estimates of 309 million barrels of unrisked prospective light/medium oil or 1.6 trillion cubic feet of natural gas, based on NSAI's report.

There is no guarantee that any resources will be discovered, and if they are, there is no certainty that they will be commercially viable. Prospective resources refer to the estimated recoverable quantities from undiscovered accumulations, and both discovery and development carry inherent risks.

In addition, the company has recently obtained an Environmental Clearance Certificate (ECC) to conduct a 3D seismic survey on PEL 73. The seismic program, targeting the Kavango Rift Basin play, is slated to begin in the first quarter of 2025.

Onshore seismic solutions provider, STRYDE, has secured six new contracts with leading academic institutions to provide its solutions, including its newest offering, STRYDE Mini System, across the United States, Europe and Africa

These institutions are leveraging STRYDE’s cutting-edge technology to advance a variety of subsurface research initiatives in 2024, including geothermal well monitoring, geohazard identification for civil engineering, agritech, and mine development.

STRYDE’s new Mini System is a complete nodal seismic system specifically designed to enable small-scale seismic projects, including research projects for the academic sector. The company is known for providing the 'world’s smallest and lightest nodal seismic imaging system'.

High-density seismic capabilities

Mike Popham, STRYDE CEO, said, “Our agile and lightweight seismic system offers a rapid, cost-effective solution for seismic data acquisition.

“At STRYDE, we understand that high costs can hinder fundamental research and development, and I am proud that by further miniaturising our system, we’ve removed this barrier to innovation and can fulfil our mission of delivering high-density seismic capabilities across various industries. This advancement supports the next generation of geoscientists by equipping them with essential tools for conducting crucial research.”

A STRYDE user at Rice University said, "This survey was the highest in density and channel count ever conducted by our team. Achieving our desired trace density within our time and labour constraints would not have been possible without STRYDE's agile nodes.

“The lightweight nature of these nodes marked a significant advancement for us, allowing for high-density deployments on foot, even in rough terrain.”

STRYDE’s technology has been deployed on a global scale, where over 760,000 unique nodes have been delivered to the market, supporting over 260 projects, in over 50 different countries, across multiple sectors, including oil and gas, mining, civil engineering, and emerging renewables markets. One of the company's latest offerings include STRYDE Lens, an integrated in-field data processing service, which offers expedited access to interpretation-ready onshore subsurface images.

According to the International Energy Agency (IEA), while investment and projects in low-emissions hydrogen are increasing, policies to stimulate demand in key sectors are required to accelerate deployment

These are the findings published in the organisation’s Global Hydrogen Review 2024, an annual publication that tracks production and demand worldwide in a bid to inform energy stakeholders on the status and future prospects of low-emissions hydrogen.

The research shows that a wave of new projects indicates the growing momentum around low-emissions hydrogen despite challenges such as regulatory uncertainties, persistent cost pressures, and a lack of incentives to accelerate demand from potential consumers. In the last 12 months, the number of projects that have reached final investment decision has doubled – this would increase today’s global production of low-emissions hydrogen fivefold by 2030. The total electrolyser capacity has reached final investment decision now stands at 20GW globally.

However, the IEA reports hesitancy from developers due to a lack of clarity on government support before making investments. As a result, most potential projects are still in planning or early-stage development, and some larger projects face delays or cancellations.

“The growth in new projects suggests strong investor interest in developing low-emissions hydrogen production, which could play a critical role in reducing emissions from industrial sectors such as steel, refining and chemicals,” remarked IEA executive director Fatih Birol. “But for these projects to be a success, low-emissions hydrogen producers need buyers. Policymakers and developers must look carefully at the tools for supporting demand creation while also reducing costs and ensuring clear regulations are in place that will support further investment in the sector.”

Hydrogen demand against production

Further key findings from the report include a notable gap between government goals for production and demand. According to the research, production targets set by governments add up to as much as 43mn tonnes per year by 2030, but demand targets only total 11mn tonnes by 2030. While some government policies are already in place to stimulate demand, the progress made in the hydrogen sector so far is not sufficient to meet climate goals.

Moreover, as a nascent sector, low-emissions hydrogen still faces technology and production cost pressures, with electrolysers in particular slipping back on some of their past progress due to higher prices and tight supply chains. A continuation of cost reductions relies on technology development, but also optimising deployment processes and moving to mass manufacturing to achieve economies of scale.
Cost reductions will benefit all projects, but the impact on the competitiveness of individual projects will vary. Industrial hubs – where low-emissions hydrogen could replace the existing large demand for hydrogen that is currently met by production from unabated fossil fuels – remain an important untapped opportunity by governments to stimulate demand, according to the IEA.

Hydrogen potential in emerging markets

Regarding emerging markets and developing economies (EMDEs), the report notes that such regions (particularly Africa and Latin America) hold significant potential for low-cost, low-emissions hydrogen production.

To unlock this potential, the IEA advises, governments of advanced economies and multilateral development banks should look to provide targeted support such as grants and concessional financing in order to address key challenges that are inhibiting project developers in these countries – most notably, around financing. Developing these projects, the research reports, can help cover domestic needs, reduce import dependencies and potentially enable the export of hydrogen or hydrogen-based products.

Chevron is set to supply 600 million standard cubic feet of gas per day to the Angola LNG (ALNG) facility by the end of this year

This follows the progress of the Sanha-Lean Gas Connection (SLGC) Project, developed by Chevron’s local subsidiary, which aims to deliver lean gas to the ALNG onshore plant and is on track for first production in Q4 2024.

Billy Lacobie, managing director of Chevron’s Southern Africa strategic business unit, made the announcement during an “In Conversation with” session at the Angola Oil & Gas conference in Luanda on Wednesday.

“As we move forward, the opportunities in gas are immense and very exciting,” Lacobie said. “When you talk about energy security, [gas] is one of the key enablers.”

Lacobie explained that the anticipated increase in Chevron’s gas production will result from the installation and tie-in of the SLGC Project to the existing Sanha Condensate Complex, which includes pipelines linking Chevron-operated Blocks 0 and 14 to ALNG.

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.

Libya is all geared up to present to Italy its robust oil & gas plan at a half-day strategic programme called the Libya-Italy Roundtable and VIP Networking Evening in Rome

As a primary importer from a top oil-reserve holder, Italy's relationship with Libya dates back to 1959, when Eni first started its operations in the region. With natural gas demand currently fuelling the market as the cleaner alternative to oil, Libya has set off a robust gas monetisation plan. The latest development of Eni's partnership with Libya’s National Oil Corporation (NOC) includes the initiation of supervision and the subsea intervention services of the GreenStream pipeline that has been put on place to direct gas from the Bahr Essalam and Bouri fields to be delivered to European markets. Defined as the GreenStream BV, the partnership has entrusted Saipem with an extensive contract scope ranging from integrating survey data and critical spares, specialised engineering services related to asset integrity and readiness services for repair interventions in case of a wide range of damage scenarios. 

The Bahr Essalam and Bouri offshore fields, along with onshore fields in the Sirte Basin, are operated by Mellitah Oil & Gas – a joint venture between Eni and the NOC. A prime source for its gas market, Italy is heavily invested in the development of the one-billion-dollar, offshore subsea Bouri Gas Utilisation Project, which aims to capture associated gas from two offshore platforms at the Bouri field development. The ejected gas will then be transported to the Mellitah Complex – a major hub for gas production, processing and export – and delivered to European markets once production begins in 2026. 

With a plan to increase the utilisation of pipeline capacity up from 25%, the partners have further signed an US$8bn gas production deal to develop two offshore gas fields – Structures A and E – set to produce 750 mn cu/ft of gas per day by 2026. Signed last year, this has been designed to serve not only the international, but also the domestic market.

Decarbonisation of the sector remains crucial for Libya, as the country is aiming 12 new projects to reduce and convert flared gas to green ammonia and power for export. To bring this alive, however, requires an estimated US$4bn in local infrastructure improvements as reported by Wood Mackenzie.

Licensing round in 2025

To further exploration activities, Libya is preparing to open an oil and gas licensing round early-2025, targeting concessions in the Murzuq, Ghadames and Sirte basins. The country's newly appointed Minister of Oil & Gas, Khalifa Abdulsadek, is eyeing international events such as African Energy Week after Gastech for its promotion. “We are open for business and looking for investors,” he said. 

This comes at a time when the region is already garnering investor interests as expressed by more than 30 companies in its marginal assets alone. With an aim to produce 2 mn boe and 4 bn cu/ft of natural gas per day within the next three to five years, the NOC has ramped up maintenance work, targeting enhanced production from at least 36 wells, and kickstarted a US$17-US$18bn initiative for the identification of 45 greenfield and brownfield projects to meet production goals. A recent gas discovery has also been reported by Sirte Oil. 

A consortium comprising Eni, TotalEnergies and Abu Dhabi National Oil Company is also developing and exploring oil and gas fields in the NC-7 block in the Ghadames Basin, targeting 2.7 trillion cu/ft of gas to boost domestic production. In May this year, US$1.23bn was allocated to develop the NC-7 block – operated by a consortium led by Italian multinational energy company Eni – with a view to monetising 2.7 trillion cu/ft of gas in the Ghadames Basin.