Preliminary evaluation indicated rise in Hibiscus gross recoverable reserves. (Image source: Adobe Stock)

BW Energy announced a substantial oil discovery on the northern flank of the Hibiscus field, post conclusion of the drilling and logging of the DHIBM-7P pilot well

The oil is with good reservoir quality and a material uplift to the Hibiscus area. 

Preliminary evaluation indicated rise in Hibiscus gross recoverable reserves (mid-case) of approximately 8-12 mn bopd. Gross production from the Dussafu licence is approximately 23,200 barrels of oil per day, amounting to a total gross production of approximately 2.14 mn barrels of oil. 

The well will be completed as a development well later in 2024.

First Gamba-Dentale accumulation in Hibiscus 

The DHIBM-7P development adds to BW Energy's previous find in DHBSM-2P pilot well which too revealed good prospects. 

The DHIBM-7P pilot was drilled from the MaBoMo production platform to a total depth of 3,941 metres.

Drilled by the Borr Norve jack-up rig the target area is located approximately 1.5 kms north-northwest of the MaBoMo. 

Notably, the hydrocarbon column extends across the boundary between the Gamba and the underlying Dentale formation.

This is the first example of a common Gamba-Dentale hydrocarbon accumulation in Hibiscus Field.

The current operation in Dussafu is to complete the development well (DHBSM-2H) in the northern flank of the Hibiscus South field that was recently successfully appraised.

The acquisition increases Afentra's interest in Block 3/05 to 30%, and that in Block 3/05A to 21.33%. (Image source: Adobe Stock)

Afentra has completed the Azule acquisition offshore Angola with a 12% non-operating interest in Block 3/05, and 16% non-operating interest in Block 3/05A

This increases Afentra's interest in Block 3/05 to 30%, and that in Block 3/05A to 21.33%.

Well on schedule post government approval, this is a major development for the company since the sale and purchase agreement between Azule Energy Angola Production B.V. and Afentra (Angola) Ltd was announced last year on 19 July.

The acquisition makes Afentra the owner of a total 480,000 bbls of crude oil stock. 

Combined gross production for the first four months of 2024 has averaged 23,000bopd (Net: ~6,800, bopd).

With 45 interventions planned over two campaigns, Afentra will continue its light well intervention programme that began during 2023, continues into 2024. 

The next sale of crude oil cargo (~450,000 bbls) is planned in June.

Focus on production optimisation

Afentra CEO Paul McDade, who has always appreciated the investment environment of Angola, said, “The completion of the Azule Acquisition is the final step in the complex process of acquiring a material equity position in both Block 3/05 (30%) and Block 3/05A (21.33%) through three separate transactions. We have now achieved our first goal of having significant exposure to these world-class production and near-term development assets. The next step, working closely with our Joint Venture partners, is to deliver the full potential of these assets for the benefit of all of our stakeholders while also reducing the carbon footprint of the assets. As with the previous two transactions the acquisition structure ensures that Afentra benefits from the net cash flow from the assets while working through the completion process, significantly reducing the cash payment at completion. I would like to thank Azule, ANPG and all the other parties involved for their pragmatism and support through this complex process. The Block 3/05 asset continues to perform strongly following the successful implementation of an ongoing work programme designed to optimise production from the existing wells. The completion of this transaction presents a strong growth platform for Afentra to capitalise on further compelling opportunities in Angola as well as in target markets in West Africa as we seek to build Afentra into a leading African focused independent.”

Signed at the NNPC Ltd's corporate headquarters in Abuja, the agreement was reached to boost upstream operations. (Image source: NNPC Ltd)

In an opportunity for value acceleration, NNPC Energy Services Limited (EnServ) has entered a technical partnership agreement with Schlumberger (SLB) 

Signed at the NNPC Ltd's corporate headquarters in Abuja, the agreement was reached to boost upstream operations.

As the 70-year NNPC-SLB relationship continues to grow strong, the oilfield services company is keen on investing in local talents and building capacity through technology and performance. Mele Kyari, Group CEO, NNPC Ltd said, “We are counting on Schlumberger (SLB) as our partners of 70 years. We are in business; we see the opportunities and strategic need to work with you and ultimately, we will create value for our country." 

With a definite plan around well drilling activities and associated operations in the next few years, Kyari believes that the partnership can potentially result in heightened activity and more drilling campaigns. “Quite a number of reforms are unfolding, and at the back of it is a potential release of investment that we are seeing in a very short term. Our physical environment is excellent today; contracting processes have been reviewed by virtue of the clear reforms Mr. President has put in place; and ultimately, we are already seeing substantial energy going into unlocking opportunities of today,” he said.

From plans to introduce a rig share platform to increased gas utilisation, NNPC has all hands on deck to raise crude oil production. In April, along with its joint venture partner in the field, Newcross Exploration and Production Ltd, NNPC resumed production from the Abowa unit field which is capable of hitting 12000 bopd every month. 

Achieving exploration and production targets

“We are here to celebrate the strategic partnership that we signed with EnServ as a technical partner. This agreement is geared towards unlocking the capacities of EnServ for Nigeria, which potentially will help NNPC Ltd to achieve its exploration and production targets. We look forward to using this technical partnership as a springboard to accelerate the vision that the industry needs.

“We are pleased to be at the center of this transition and are in a position where we can bring our technical capability, technology, and capacity to the country so as to support the operations of NNPC Ltd,” said Olivier Le Peuch, CEO, Schlumberger (SLB). 

SLB is committed to promoting energy innovation and decarbonisation in Nigeria, especially since the company opened a West Africa regional office in Lagos early last year. 

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.”