Block 1 spans 19,929 sq km. (Image source: Adobe Stock)

With the formal approval from the South Africa Department of Mineral and Petroleum Resources for both the Exploration Right and Section 11 transfer, Eco Atlantic Oil & Gas Ltd's 75% Working Interest and full Operatorship of Block 1 offshore South Africa is now official

This acquisition, completed through Eco's wholly owned subsidiary Azinam South Africa Limited, significantly expands the Company's Southern African Orange Basin footprint and positions it as a key operator. The remaining 25% interest is held by Tosaco.

Block 1, which spans a vast 19,929 sq km, straddles the border between South Africa and Namibia. It offers full margin transect coverage from the shoreline to deepwater (shore to 263km offshore, in water depths up to 1,000m), encompassing both shallow and deepwater exploration potential.

Gil Holzman, co-founder and CEO of Eco Atlantic, said, "As the Orange Basin continues to demonstrate its world-class hydrocarbon proof and potential, Eco's executive team has worked relentlessly over the past 18 months to secure a premier asset on the South African side of the basin. With the successful approval and execution of the Exploration Right and 75% Working Interest award, we are proud to have secured one of the largest and prospective blocks in the entire basin with a known hydrocarbon footprint - Block 1 - located directly on the South Africa-Namibia maritime border. Block 1 adds to our portfolio in the Orange basin which also includes Block 3B/4B operated by TotalEnergies.

"We are grateful for the productive collaboration with the Government of South Africa and its key agencies, particularly our valued partners at the Petroleum Agency South Africa ("PASA"). I was honoured to attend the signing ceremony yesterday at PASA's offices in Cape Town. This milestone reflects the dedication and strategic focus of our leadership team in securing an asset with existing hydrocarbon evidence and significant upside potential and aligning with our strategy to partner directly with governments to secure agreements in high potential secure jurisdictions and to lay groundwork for future partnerships.

"Our technical team has already begun analysing the extensive, high-quality 2D and 3D seismic, and well logs data, which materially accelerates our path to drilling while reducing early-stage exploration costs and timelines. The block's prior discoveries, including tested gas flows and oil shows, confirm the presence of an active petroleum system.

"Initial interpretation is underway, and we are in the process of delineating early leads to develop the exploration strategy. We are already seeing significant inbound interests from international oil companies and mid-tier partners. As a result, we anticipate launching a formal farm-out process in August with further updates to follow in due course."

Algeria's multi-year licensing strategy targets international oil companies. (Image source: Adobe Stock)

The National Agency for the Valorization of Hydrocarbon Resources in Algeria (ALNAFT) will host its bid opening ceremony for its 2024 Bid Round on 17 June this year

Last November's bid round which had offered six onshore blocks drew interest from 41 operators. These blocks are backed by extensive geological and geophysical insights for interested parties to refer to.

Building on the success of the first round, the country is planning to launch its 2025 Bid Round towards the year-end.

According to Mourad Beldjehem, chairman of the Board of Directors of ALNAFT, Algeria's multi-year licensing strategy has been put in place to especially target international oil companies (IOC). 

He was speaking in a webinar hosted in partnership with the African Energy Chamber (AEC) and Wood Mackenzie.

“Algeria’s five-year plan features multiple licensing rounds, focusing on high-potential geological zones, combining greenfield and low-risk brownfield assets to attract a spectrum of industry players. Bid Round 2024 is underway, with 41 companies expressing interest. We received interest from IOCs from all over the world, including North America, Asia and more. We are optimistic that we will award five out of six blocks, at least. The next bid round, we will select the same type of blocks, featuring both exploration and development [opportunities],” said Beldjehem.

“Gas has become particularly important in the world. We have seen an increase in African gas production, specifically Algeria. The country is located close to a large consumer market in Europe and it is a text book example of how you can improve fiscals to attract significant amounts of investments,” said Verner Ayukegba, senior vice president, AEC.

Algeria’s oil and gas production uptick was possible with robust regulatory reforms. Martijn Murphy, principal analyst, Wood Mackenzie, reinforced that the country's new Hydrocarbon Law (2019) allowed project incentives that played a major role in turning around the country's declining production trajectory.

“New fiscal terms are beginning to yield foreign investment. In 2019, the country introduced a new Hydrocarbon Law, which we consider a marked improvement from the 2013 terms. Production so far this year has rebounded. Our outlook excludes contributions from yet-to-find discoveries – which we expect to be made following licenses awarded this year - and unconventionals. Algeria is also starting to look serious about shale gas development, following MoUs signed last year,” he said.

Besides strengthening the local market, this production rebound couldn't have been better timed as Europe is currently looking to its neighbours to meet its growing gas demand. With Algeria seeking to increase annual gas production to 200 billion cubic meters over the next five years, the country is expected to play a much larger role in supporting European demand.

Eni's Deep Value Driller has arrived offshore Ghana for drilling activities. (Image source: Adobe Stock)

Eni Ghana has unleashed the Sankofa development plan, which will commence with drilling operations around 60 nautical miles off Ghana’s coast adjacent to the John Agyekum Kufour FPSO

Along with its Offshore Cape Three Points (OCTP) partners, Vitol Upstream Ghana Ltd and Ghana National Petroleum Corporation, the major has begun the Sankofa East 1X Side Track 2.

After concluding operations in Cote d'Ivoire, the company's high-end drillship called the Deep Value Driller (DVD) has arrived offshore Ghana to support exploration activities with its advanced automated technology, ensuring world class operational performance and safety.

The OCTP block partners have made sure to uphold transperency for all stakeholders and communities involved as they embrace sustainable production and advance energy security for Ghana.

Eni has been present in Ghana since 2009 with offshore hydrocarbon exploration and production activities, with an equity production of about 34,000 barrels of oil equivalent per day. The company is the operator of the OCTP project with a 44.4% share, in partnership with Vitol (35.6%) and GNPC (20%). The joint venture’s portfolio of projects also includes initiatives in the areas of training, economic diversification, access to water and sanitation, and access to energy.

The entity is a merger between iGas, PetroSA and the SFF. (Image source: Adobe Stock)

The South African National Petroleum Company (SANPC) was unveiled at The Maslow Hotel in Sandton

The state-owned entity is the result of a merger between iGas, PetroSA and the Strategic Fuel Fund (SFF), aiming to secure South Africa's energy future with the revitalisation of strategic infrastructure.

During the launch event, SANPC chairperson, Sipho Mkhize, defined the company as a "national asset" that has been the brainchild of the President Cyril Ramaphosa-led government. He informed that strategic discussions are underway with the Ministers of Transport, Mineral Resources and Energy, and Forestry, Fisheries and the Environment to convert the single buoy mooring (SBM) in Durban into a more flexible multi-buoy mooring (MBM). 

This will reduce dependency on international oil companies while ensuring supply, making SANPC an independent terminal operator with equal berth access and robust system integrity.

The Minister of Mineral Resources and Energy, Gwede Mantashe, said, “This launch is a strategic intervention – SANPC will drive industrialisation, job creation and inclusive growth. It will manage our strategic oil reserves, rebuild our refining capacity, and ensure energy sovereignty while contributing to regional energy security.” 

He emphasised the urgency of restoring South Africa’s refining capabilities and reiterated government’s support for SANPC’s efforts to restart the PetroSA GTL plant in Mossel Bay and revive the SAPREF Refinery in Durban.

CEO Godfrey Moagi acknowledged the majority state-owned Brazilian oil and gas company, Petrobras, as an inspiration behind SANPC’s vision while "tailoring our approach to reflect South Africa’s realities and aspirations”.

“SANPC is open for business. We invite partners to join us in building integrated, innovative, and sustainable energy systems across South Africa and the continent,” said Mkhize.