The Buzz: This Week in Africa
At the close of this week Brent Crude is trading at $47.69 per barrel, WTI at $45.13 per barrel and natural gas at $3.02 per million BTU (beginning of day 30 June 2017). Here are AOP’s top five stories from the last seven days.
Total Plans Power Plant in Uganda
Total plans to build a 146MW thermal power plant in Uganda’s Buliisa District, according to the Africa Oil + Gas Report. Total has already applied for the license from the Uganda Electricity Regulatory Authority, outlining plans for a $117.4 million plant, with construction expected to start in 2019 if the project receives approval.
The power plant will be used to boost power generation for oil production at Uganda’s Lake Albert oil project, but will also sell a portion of power produced to the Uganda Electricity Transmission Company Limited (UETCL).
Kenya’s Plan to Truck Oil to Coast Delayed
The Kenyan government will not begin crude oil production until the government passes updated regulations outlining how oil revenues will be shared between the national and country governments, as well as local communities, according to Reuters.
Kenya initially planned to begin small-scale production this summer by trucking 2,000 barrels per day to the coast for exports (the country has yet to build an export pipeline). However, the government has delayed production until after the new amendments are passed, hopefully by late September.
NNPC Creates Joint Venture to Explore Niger Delta
The Nigerian National Petroleum Corporation has agreed to create a joint venture with local energy firm First Exploration and Petroleum Development Company, as well as international firm Schlumberger to develop the Anyala and Madu fields in the Niger Delta, according to the Premium Times.
Under the deal, Schlumberger is expected to provide over $700 million to develop the fields — Oil Mining License 83 and OML 85 offshore Nigeria — in a bid to increase exploration in the oil-prolific region. Overall, Nigeria has seen its oil reserves in place drop to 37.2 billion barrels. The country aims to increase the reserves in place to 40 billion barrels by 2020.
Tanzania Alarms Investors with Proposed Energy Laws
The Government of Tanzania has proposed three bills that would, among other things, allow the government to force mining and energy companies to renegotiate or dissolve their current contracts, according to Reuters.
It is not yet known if the bills would impact the massive $30 billion LNG project, which is still awaiting FID. The bills are aimed at increasing transparency, said the government of President John Magufuli, but critics say the laws, which are expected to be fast-tracked through parliament, are yet another strike against investors in the country.
GE & Aker Solutions win Coral South Awards
Aker Solutions was awarded the contract to supply subsea umbilicals to Mozambique’s Coral South project, while GE Oil & Gas will supply the subsea equipment for the Coral South LNG project, according to Upstream Online.
Aker Solutions is set to supply three steel tube umbilicals and associated equipment, which will connect the FLNG vessel to the production system. GE will deliver three two-slot manifolds, seven subsea wellheads, a topside control system and additional equipment to develop the field.
The Coral FLNG project, spearheaded by Eni, reached FID in June.