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NIGERIA
The Group Managing Director of the Nigerian National Petroleum Corporation, (NNPC) Alhaji Mele Kyari, has said that the Final Investment Decision on the NLNG Train 7 project would be in December. Alhaji Kyari said NNPC would continue to align its business processes with its partners following global best practices for the benefit of the investments and for the good of Nigerians who remained its key shareholders.
The Department of Petroleum Resources has reported a rise of 754 million barrels production capacity, which has pushed oil reserves to 37 billion barrels, including condensate and 199 trillion cubic feet of gas reserves for the year ending 2018. This accounts for an increase of 0.08% year on year from 2017. The report also showed a growth in gas reserves, which have continued to grow at a rate of 1.0% since 2013. The gas utilization initiative by the Federal Government has contributed to this growth as more investors commit to gas projects.
The zero routine gas flaring target for 2020 has also contributed to the push in the growth of the industry. The Domestic Supply Obligation performance stood at 48% and the national capacity performance for 2018 at 80% with an average 1.3bscf/d gas delivery to the domestic market. The export market accounted for 41% in the same year.
The Minister of State for Petroleum, H.E. Timipre Sylva said that the Federal Government will rehabilitate the Warri, Port Harcourt, and Kaduna Refineries to achieve local production of 360,000 MTPA of Liquefied Petroleum Gas by 2023.
GABON
The Dutch oil and gas firm ONE-Dyas has concluded its negotiations with the Gabonese authorities to extend its participation in the Kowe offshore block. Negotiations have concluded with ONE-Dyas holding rights until the end of production in 2036 (under a single tax regime applicable to operations at the Kowe block). The Kowe Block is located approximately 20km offshore Gabon in a water depth of 100m. It contains three fields, Tchatamba Marin, Tchatamba South, and Tchatamba West – the Tchatamba Complex.
Discovered between 1993-1997, production from these Gabon fields started in 1998. It reached its peak production of 43,000 barrels of oil per day (bpd) in 2001. ONE-Dyas B.V. is the largest privately-owned exploration and production operating company in the Netherlands. Its current production is around 35,000 bpd, coming from fields in the North Sea and offshore Gabon.
GHANA
Springfield E&P announced that its Afina-1x well had been drilled to a total depth of 4082 meters in approximately 1030 meters of water “with a very significant discovery.” The exact figure for the size of the discovery was not provided, but it’s said to be bigger than the Jubilee field.
Recently, the Financial Times reported that Springfield would reveal it had made two discoveries offshore Ghana totaling 1.2 billion barrels of crude, with up to 35% recoverable. Springfield is currently the operator and majority interest holder (84%) of West Cape Three Points Block 2, with Ghana National Petroleum Corporation and its exploration company, EXPLORCO, holding the remaining interest. Springfield used the Stena Forth drillship for the operation. The second well (the Oak-1x) drilling will take place in 2020.
GLOBAL
On Thursday 28th November, oil prices traded lower after the U.S. Energy Information Administration (EIA) reported that oil crude inventories rose last week. The U.S. Crude Oil WTI Futures dropped 0.5% to $57.84 by 12:30 AM ET (04:30 GMT), while Brent
Oil Futures fell 0.4% to $62.79. The U.S. EIA weekly report for Wednesday 27th November showed a rise in crude stockpiles by 1.572 million barrels for the week ending November 22, compared with analysts’ expectations for a decline of 418,000 barrels.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia are set to meet on December 5-6, in Vienna to discuss production cuts to support oil prices. Investors are hopeful for a rollover of its current production-cut deal, which is set to expire at the end of March 2020.
As part of the global deal, Russian oil companies offered not to change their output quotas and also excluded the production of gas condensate from their output quotas. Russia has been struggling to meet its supply-reduction targets in recent months, thus putting pressure on OPEC to avoid any major policy change. Bloomberg predicted that OPEC and its allies will agree to a further reduction when they meet next week.
Also, Libya’s National Oil Corp said facilities at the 70,000 bpd El Feel oilfield had suffered only minor damage in fighting over the past two days, thus easing supply concerns and allowing production to restart.
