Already a key exporter to Europe, Algeria has upped its game to widen reach in the international gas market. (Image source: Adobe Stock)

ExxonMobil has signed a deal with Sonatrach to develop two major gas fields in Ahnet and Gourara basins in southern Algeria

Signed by Sonatrach’s chief executive Rachid Hachichi and ExxonMobil’s head of exploration John Ardill, the deal highlights technological advancements and sustainability. 

Already a key exporter to Europe, Algeria has upped its game to widen reach in the international gas market. 

It is extensively collaborating with international oil companies, and continuously looking at ways to boost production. In a latest development, Sonatrach onboarded energy tech company Baker Hughes to stimulate production from the country's largest gas field, Hassi R’ Mel. 

In line with its US$50bn oil and gas investment plan that extends till 2027, Sonatrach recently initiated phase two of the southwest gas project, launching three key fields – Hassi Ba Hamou, Hassi Tidjerane, and Tinerkouk. 

Hydrocarbon Law drawing oil majors

Post introduction of the Hydrocarbon Law in 2019, Algeria has been showered with exceptional gas yeild which broke all records last year at 136 bn cu/m. Natural gas contributed two-thirds of its total oil equivalent production.

The flexible fiscal terms of the Hydrocarbon Law drew majors such as Chevron, Pertamina and TotalEnergies to name a few. 

While Chevron is eyeing Algeria’s gas-rich Ahnet, Gourara and Berkine basins, Pertamina anticipates drilling 12 oil wells in Block 405a. The Indonesian company has plans to invest over US$800mn in the Menzel Lejmat Nord block.

Last year, TotalEnergies signed an MoU with Sonatrach to develop gas resources in the North-East Timimoun region. 

140,000 bopd accounts for approximately a half of Congo's oil production. (Image source: Adobe Stock)

TotalEnergies will be investing US$600mn for exploration and production upkeep of Moho Nord field in the Congolese deepwaters

At roughly 140,000 barrels of oil per day, the Moho Nord field accounts for approximately half of oil production from Congo.

With four reservoirs spanning across 320 sq km in water depths of 750m to 1,200m, TotalEnergies is working towards ensuring an additional production of 40,000 bpd, taking the country's yeild count to 267,000 bpd.

Following an acquisition agreement with Trident Energy, TotalEnergies will enjoy majority operational stake in the Moho permit with 63.5%. Trident set up shop in Congo this April following its acquisition of the entire issued share capital of Chevron Overseas (Congo) Limited.

Besides work in Moho Nord, this year TotalEnergies is expecting production from offshore Marine XX permit. 

Two drilling rigs have already arrived to start production from almost 2,000m water depths in an area of 3,285.8 sq km.

Gas Master Plan

The Republic of Congo's national policy game is going strong with its proposed Gas Master Plan and a strategic partnership with Algeria. The partnership will enable the respective national oil companies, Sonatrach and SNPC to share downstream expertise. They have also plans to develop an African Energy Bank to invest in oil and gas projects across the continent.

The concept of Gas Master Plan was introduced by Congo’s Ministry of Hydrocarbons and passed with heightened enthusiasm during the Invest in African Energy 2024 summit in Paris. To facilitate a more streamlined approach in leveraging the country's gas assets, Eni sold its participation interests in several upstream permits in Congo to Perenco, early this year. 

A collaboration between SNPC and Wood Mackenzie, the Gas Master Plan is currently in its final stages. Once operational, it will not only incentivise the development of the national gas sector by encouraging commercialisation of stranded assets and flared natural gas, but also serve as roadmap to harness gas resources for domestic consumption and export. It will establish a new gas code, making current fiscal terms more flexible, especially for small-scale projects.

SNPC CEO Raoul Ominga has been working closely with the Ministry to get final approval on the Gas Master Plan, which is expected this month. 

Launching of the Kaminho project. (Image source: TotalEnergies)

The final investment decision (FID) for the potentially 70,000bopd-Kaminho deepwater project offshore Angola has been closed by Patrick Pouyanné, chairman and CEO of TotalEnergies; João Lourenço, President of Angola; Diamantino Azevedo, Minister of Mineral Resources, Oil & Gas (MIREMPET); Paulino Jerónimo, chairman and CEO of ANPG, and Gaspar Martins, chairman and CEO of Sonangol 

“Building on our pioneering spirit and our long-term partnership with Angola, we are pleased to launch the Kaminho project along with our strategic partners, Sonangol and Petronas, and the strong support and confidence of the Angolan authorities. This project, which leverages innovation to fit with our investment criteria - breakeven under 30 $/b and carbon intensity of 16 kg CO2e/boe - will become our seventh FPSO in the country and the first-ever development in the Kwanza basin," said Pouyanné. 

The Block 20/11 site that includes Cameia and Golfinho fields is situated 100 km off the coast of Angola by 1,700 m water-depth, and is the first large deepwater development in the Kwanza basin. Its shareholders are TotalEnergies (40%), Petronas (40%) and Sonangol (20%). 

The FID will support the conversion of a very large crude carrier (VLCC) to a floating production storage and offloading (FPSO) unit. Connected to a subsea production network, the unit will be distinguished in its all-electric, sustainable feature. It will have the capacity to minimise greenhouse gas emissions, with scope for a full gas reinjection into the reservoirs to eliminate routine flaring. Bulk of the work will be delivered for TotalEnergies by Saipem under contracts worth US$3.7bn.

MoU to advance oil and gas decarbonisation

Sonangol EP is planning the Sumbe Reasearch and Development Centre to advance the decarbonisation of oil and gas industry, with a strong focus on methane emissions reduction and renewable energies. It has tied up with TotalEnergies on the project through a memorandum of understanding (MoU), whereby it will support the Sonangol research and technology teams with skill development on reservoir geology, process electrification and photovoltaics.

“We look forward to joining forces with Sonangol in technology to promote innovation and low-carbon technologies for the energy industry in Angola, in particular to slash methane emissions and contribute to the diversification of Angola's energy mix,” Pouyanné said. 

With offshore operations and construction at local yards, the Kaminho project will involve more than 10 mn man-hours in Angola. 

“This partnership is for us of extreme importance, as it creates a joint operating entity between Sonangol and TotalEnergies in production phase. It is also relevant that the contracts signed today include national companies and contribute to local content with more than 10 million hours of work to be performed by local companies,”said de Azevedo.

Production start-up is expected in 2028.

Located approximately 100 km off the coast of Angola, the Kaminho project involves the development of the Cameia and Golfinho oil fields. (Image source: Adobe Stock)

Development of the Kaminho project in Angola is off to a good start with Saipem bagging three contracts from TotalEnergies-subsidiary, TotalEnergies EP Angola Block 20

Located approximately 100 km off the coast of Angola, the Kaminho project involves the development of the Cameia and Golfinho oil fields. 

An integrated business model that offers offshore and plant project management and engineering services, combined with a state-of-the-art fleet and local fabrication capacity, makes Saipem well-equiped to deliver the US$3.7bn contracts with diverse scopes of work.

SURF, FPSO and O&M contracts

The first contract is for engineering, procurement, construction, transportation and commissioning services of the Kaminho floating production storage and offloading (FPSO) vessel.

The second contract outlines the operation and maintenance (O&M) of the Kaminho FPSO vessel for a firm period of 12 years with a potential eight-year extension. These services will draw on the expertise acquired from three other FPSOs that are currently deployed in Angola.

The third contract involves the engineering, procurement, construction, installation, pre-commissioning and assistance for the commissioning and start-up of a subsea, umbilicals, risers and flowlines (SURF) package, which is made up of approximately 30 km of 8” and 10" subsea flowlines and risers, and umbilicals.

The associated structures will be fabricated in Saipem’s local yard in Ambriz.

For the offshore campaign, and specifically for the J-lay vessel, Saipem will deploy its FDS majorly through local supply chain for logistics and fabrication activities. 

The project adds to the 'resurgence of activity offshore Angola', as Chris Dyer of Oceaneering put it, while commenting on another TotalEnergies EP Angola initiative, the GIR FLEX'resurgence of activity offshore Angola', as Chris Dyer of Oceaneering put it, while commenting on another TotalEnergies EP Angola initiative, the GIR FLEX.