BW Energy has generously responded to the offering. (Image source; Adobe Stock)

Ahead of the Kavango West 1X well excavation offshore Namibia, Reconnaissance Energy Africa Ltd has issued a public offering of its units following an agreement with Research Capital Corporation as the lead underwriter and sole bookrunner

BW Energy Limited, and directors and management members of ReconAfrica, among other investors, have generously responded to the offering. While BW Energy has already been on a strategic partnership with ReconAF, its fresh batch of investments in the company represents approximately 20% of the offering, increasing its share ownership position in ReconAfrica to around 7.6%. 

The net proceeds from the offering will drive exploration activities -- mainly the Kavango West 1X well -- working capital and general corporate purposes. Work on the access road and drill site is currently being completed while the company awaits receipt of the remaining requisite permits. The rig move to the Kavango West 1X well drilling location is scheduled later this month, with drilling to begin thereafter.

Brian Reinsborough, president and CEO of ReconAfrica said, "We are excited to spud one of the Company's largest and most attractive prospects, Kavango West 1X. The results of the Naingopo exploration well announced in January 2025 increased our confidence in the potential for this well. Our teams remain very engaged with local communities and authorities to ensure a safe and efficient operation of this well."

Carl K Arnet, BW Energy CEO, said, "Our technical and operational teams at BW Energy are delighted to be participating in the high potential Kavango West 1X exploration well. BW Energy is well positioned in this strategically important energy region and further our position as a leader in Namibia's development towards energy independence. The data and insights gained through ReconAfrica's exploration campaign will further our understanding of the geology and petroleum system in Namibia and help de-risk planned exploration and development of our Kudu licence."

The agreement remains subject to relevant approvals. (Image source: Adobe Stock)

Deepwater ocean-infrastructure designer, SBM Offshore, has signed a share purchase agreement for the full divestment of the company’s equity interest in the lease and operating entities of the FPSO Aseng to GEPetrol

SBM Offshore’s exit from Equatorial Guinea will take place following a 12-month- long operational transition phase.

SBM Offshore’s sale of its participation in the unit in Equatorial Guinea is in line with its strategy to rationalise its Lease & Operate portfolio, as per other recent transactions.

The agreement remains subject to several conditions precedent and approvals.

Through the design, construction, installation, and operation of offshore floating facilities, SBM Offshore endeavours to advance just transition, ensuring cleaner, more efficient energy production. 

The MOU includes approval to drill up to 20 additional wells in the Jubilee field. (Image source: Adobe Stock)

The Government of Ghana, Tullow Oil, Kosmos Energy, PetroSA, Ghana National Petroleum Corporation and Explorco have entered into a Memorandum of Understanding to extend the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licences to 2040, which cover the Jubilee and TEN fields in Ghana

The MOU includes approval to drill up to 20 additional wells in the Jubilee field, representing investment of up to US$2bn in Ghana over the life of the licences. As a result of the extension the JV partnership expects to realise a material increase in gross 2P reserves.

The MOU reinforces to increase in the supply of gas from the Jubilee and TEN fields to c.130 mmscf/d, achieve reduced gas price for Jubilee associated gas, guaranteed reimbursement mechanism for gas sales, investment in GNPC and the Petroleum Commission’s capacity with a focus on the use of advanced technology, among others.

The next steps, following this MOU, are the submission for approval of a Jubilee Plan of Development (PoD) Addendum, entering into new fully termed gas sales agreements (GSA), and the submission for parliamentary approval of the payment security mechanism and licence extensions planned before the end of the third quarter of 2025.

John Abdulai Jinapor, Ghana’s Minister for Energy and Green Transition, said, “This Memorandum of Understanding between the Republic of Ghana and the DWT and WCTP partners marks a significant step forward in our nation's energy sector. Extending the licenses to 2040 demonstrates our commitment to fostering a stable and attractive investment climate. This MOU will not only ensure the continued production of oil, supporting our economic growth, but also allow us to further develop our infrastructure and create more job opportunities for our citizens. We are dedicated to responsible resource management and look forward to a prosperous future fuelled by sustainable energy practices.”

Richard Miller, chief financial officer and interim chief executive officer of Tullow, said, “This is a valuable step forward for the Government of Ghana, Tullow and our JV partners, highlighting the collaborative and constructive relationship we all have in reaching our shared goal of building a better future for the people of Ghana, through responsible oil and gas development. This extension and the fiscal stability of our contracts emphasizes the opportunity Ghana represents to deliver additional value through production and reserves additions, providing greater long-term optionality and materiality to these core assets.”

Andy G. Inglis, chairman and CEO of Kosmos, said, "This memorandum of understanding recognizes the importance of oil and gas in Ghana and the desire of the new administration to create an attractive environment for new investment in the sector. Extending the Ghana production licenses is highly accretive, adding material reserves and enabling the partnership to continue investing in the country for the long-term. This investment is expected to maximize the value of the fields for the benefit of the country’s economic development and Kosmos’ shareholders. We look forward to working with President Mahama and his government to invest in and advance Ghana’s energy sector."

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.