Exploration

The combined Vivo Energy Group now has more than 3,900 service stations. (Image source: Engen)

Engen becomes part of Vivo Energy as the latter acquired 74% Engen share from PETRONAS

The transaction which began in February last year, came to a close with the securing of regulatory approvals and fulfilment of conditions precedent across the seven markets where Engen operates. 

With B-BBEE shareholder Phembani Group continuing to hold 21% interests in Engen, and expansion of another 5% employee share ownership programme for historically disadvantaged persons, the new strategic partnership results in pan-African energy championship. “Having been invested in Engen since 1999, we are excited to continue our involvement, partnering in a strategic relationship with Vivo Energy in the next phase of Engen’s growth as a key player in South Africa’s economy,” said Phuthuma Nhleko, chairman and co-founder of Phembani Group.

The combined Vivo Energy Group now has more than 3,900 service stations, and beyond 2 billion litres of storage capacity across 28 African markets. Business will go on as usual with the objective of delivering added value and benefits for customers and stakeholders.

Growing operations in South Africa

In a joint statement, Stan Mittelman, CEO of the Vivo Energy Group, and Seelan Naidoo, managing director and CEO of Engen, said, “We are delighted to conclude the transaction, and will now work together to take the ‘best of both’ from Engen and Vivo Energy, positioning the combined organisation well for growth and success in the years to come.”

Mittelman and Naidoo said, “As part of the transaction, Vivo Energy has committed to invest a significant amount of capital expenditure to maintain and grow Engen’s operations in South Africa, ensuring a modern and efficient business, for the benefit of the South African population. We have also committed to major investments in renewable solar power generation projects to help transform the economy, while supporting a just energy transition for the country.”

Chris Bake, chairman of Vivo Energy, said, “I would like to thank PETRONAS for its stewardship of Engen over the last 25+ years. Together with the Phembani Group, they have grown Engen into a valuable corporate citizen. The combination of Vivo Energy and Engen to create a pan-African champion not only benefits customers in South Africa and across the continent, but also sets up the new Group to achieve its vision to be Africa’s leading and most respected energy business.”

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.