Exploration

Tlou Energy to refocus on downstream production

The past year has been highly productive for Tlou. (Image source: Adobe Stock)

Tlou Energy Limited has announced the company's annual report and consolidated financial statements for the year ended 30 June 2024

The transmission line connecting Tlou's Lesedi project directly to both Botswana's power grid and the Southern African Power Pool is effectively complete.

Connection to Serowe substation achieved - Tlou's power project is no longer isolated from primary Botswana electricity market.

The Lesedi substation is about 75% complete and due for completion later this year.

Lesedi production wells continue to produce gas with a focus now on stabilising surging gas flows.

Advanced discussions are being held with a Tier 1 generator supplier.

Additional drilling has been planned to provide sufficient gas for the first megawatt of power.

The power station is anticipated to be commissioned in 2025.

The Company is waiting on the funding to complete grid connection, drill additional wells and commence sale of electricity.

Tlou's managing director, Tony Gilby said, "The past year has been highly productive. We focused on development of the upstream process including substations, transmission line and generation, bringing us closer to our target of grid connection.

"The coming months we will refocus on downstream production, including drilling and dewatering wells aimed at providing sustained gas flow rates ahead of first power generation. Selling electricity into the grid can serve as a catalyst for significant near-term growth, unlocking the potential for further development and expansion.

"I would like to extend my thanks to everyone who has contributed to our progress, and especially to our shareholders, whose support has been instrumental in reaching this stage."

Chariot announces results from Anchois-3 well offshore Morocco

Anchois-3ST has been drilled to a total measured depth of 3,045 m. (Image source: Adobe Stock)

Africa-focused transitional energy group, Chariot Limited, has announced preliminary results from the Anchois-3 well drilling campaign at the Anchois gas project in the Lixus Offshore licence offshore Morocco

The Anchois-3 Main Hole (Anchois-3ST) has been safely and efficiently drilled to a total measured depth of 3,045 m by the Stena Forth drillship in 349m of water.

Preliminary interpretation indicates multiple good quality gas bearing reservoirs were found in the B sand appraisal interval as anticipated, but the associated gas pays are now interpreted to be lower than the pre-drill geological model. Other target reservoirs beneath the B sands were also encountered but were water wet. The appraisal target reservoirs of the C and M sand were drilled deeper than the gas bearing sands in the Anchois-2 well and into the water-leg at this down-dip location.

The Anchois North Flank exploration prospect was found to have well-developed O sand reservoirs, with associated gas shows, but also water wet. The Main Hole has now been plugged and abandoned, without flow testing, and the drillship is being demobilised. Further detailed work by the partnership will be done to define the next steps for the project.

Adonis Pouroulis, CEO of Chariot, said, “The Anchois East drilling campaign has evaluated all of the pre-drill reservoir targets, however results have not delivered as anticipated or in line with the excellent results of the previously drilled Anchois 2 well. The primary exploration objectives were unsuccessful however, we did demonstrate the extension of gas bearing reservoirs in the main appraisal B sands albeit with thinner columns than estimated and data acquired from the other reservoirs will be useful for our understanding of the field. We will now work with our joint venture partners to determine the forward plan.”

Energean enjoys 45% share in the Lixus offshore licence as operator, while Chariot holds 30% and ONHYM 25%.

Chevron Nigeria, NNPC convert five assets into PIA terms

NNPC and CNL sign asset conversion to PIA

Mele Kyari and Michelle Pflueger, director of deepwater and PSC, CNL, sign documents. (Image source: NNPC Ltd)

Chevron Nigeria (CNL) and Nigerian National Petroleum Corporation have concluded the conversion of five of its joint venture (JV) assets into the Petroleum Industry Act (PIA) 2021 terms to leverage its investor-friendly approach over the erstwhile petroleum profit tax

The oil major opted voluntary conversion that is applicable for oil prospecting licenses (OPL) and oil mining leases (OML) holders under the old regime.

As for existing OPLs and OMLs nearing expiration, the new PIA regime automatically recognises them as petroleum prospecting licenses (PPLs) and petroleum mining leases (PMLs) upon their expiration.

The conversion of five OMLs into four PPLs and 26 PMLs as per the new PIA terms not only benefits Chevron but also boosts Nigeria's domestic gas market while expanding its global presence.

The PIA has been a major driver of NNPC's exceptional net profit of N3.297 trillion that comprised its 2023 audited financial statement.

Long-term partner

“Over the years, Chevron has been a partner of choice that has not contemplated completely divesting/exiting (oil production in) the shallow water and we are proud of them,” said Mele Kyari, group CEO of NNPC, defining Chevron Nigeria as a reliable partner of the corporation.

The partners are aiming to reach a production target of 165,000 barrels of oil per day (bopd) by the end of the year, revealed Bala Wunti, chief upstream investment officer, NNPC. He acknowledged Chevron Nigeria's commitment to maintaining network stability and facilitating gas supply especially to the domestic market.

The Dangote Fertiliser Plant that opened in 2022 runs on natural gas supply from Chevron that was ensured by a gas sale and aggregation agreement signed in 2019.