3rd IndaiAfrica Hydrocarbon Conference

Ministry of Petroleum & Natural Gas
Government of India
2nd India-Africa
Hydrocarbons conference
3rd India Africa

Knowledge associate
December 7-8, 2009

New Delhi
Knowlegde Associate
December 9 -10, 2011

New Delhi
Foreword
One of the most-often quoted stories of the 21st century is the emergence of India and China on the global
economy landscape. These emerging economies have provided much required calmness amidst global
economic turbulence. However the flip side of the story is their growing appetite for energy and
commodities. This increase in energy consumption - a key driver of growth in these countries, has added
volumes to already stretched global energy demand. So much so that the centre of energy demand is
shifting from the OECD countries to Asia.
India, the 4th largest economy in the world, is also home to one-sixth of global population. At this pace of
growth in the economy (8.5 per cent in 2010-11) and subsequent increase in purchasing power, the energy
needs of a vast population and growing industry can be quite demanding for policy-makers. The primary
energy consumption of India, which is 4.4 per cent of global consumption in 2010, was hardly 1.55 per cent
of global consumption in 1980, a not so distant past in the historical perspective.
As we all know, fossil fuels are a depleting resource. To run the wheels of economy, nations and large
energy companies of the world are in a constant search for another longstanding and reliable source of fuel.
In the current scenario, Africa provides the much required comfort with its vast hydrocarbon resource and
potential.
Africa, where oil was first discovered in the 1950s in Nigeria, is a relatively new phenomenon on the oil and
gas world map. The continents vast landmass and geological similarity with other oil-producing regions or
continents of the world are optimists delight and has attracted the top companies of the world. The regional
diversity of oil-producers within this continent and discoveries at regular intervals has given hope of more
potential. The newer prospects have further fuelled expectations that there may be more under- or
unexplored regions within Africa.
Currently Africa produces 12.2 per cent of global oil quantum, while it has a relatively lower share in global
oil reserves at 9.5 per cent. This indicates increasing dependence of global economy on African oil and gas.
Indias trade and human ties with Africa have a long standing history. It can be blithely stated that the
groundwork was already done by earlier generations of both regions. We just need to strengthen it, in view
of our contemporary needs and respective competencies, with more interaction and collaboration. In an era
of global interdependence, India and Africa are best placed geographically to take necessary advantage
from each other and take current ties to newer heights.
3rd India Africa Hydrocarbons Conference | 1
Contents
List of Charts
List of tables
India
Basic information
Overview of energy sector
Oil sector
Natural gas sector
12
City gas distribution in India: An overview
18
Exploration and production
21
Licensing regime
22
Shale Gas
24
Coal Bed Methane (CBM)
25
E&P Ventures by Indian Companies in Africa
26
Refinery sector
27
Import and export of petroleum and oil products
29
Pipelines in India
30
Sector organization
34
Policy and regulatory overview
35
Petroleum, Chemical Petrochemical

Investment Region (PCPIR)
39
Coal gasification in India
41
Africa hydrocarbon sector
45
Oil
46
Exploration & Licensing rounds in Africa
50
Refineries
53
Natural gas
54
Country Profile
Algeria
57
Angola
63
Benin
68
Cameroon
70
Chad
73
Democratic Republic of Congo
75
Republic of Congo
79
Cote D' Ivoire
83
Egypt
86
2 | 3rd India Africa Hydrocarbons Conference
Equatorial Guinea
90
Ethiopia
94
Gabon
98
Ghana
102
Kenya
105
Liberia
109
Libya
113
Malawi
119
Mauritius
120
Mozambique
122
Namibia
126
Niger
129
Nigeria
132
Senegal
139
Sierra Leone
144
South Africa
146
Republic of South Sudan
151
Sudan
155
Tanzania
158
Uganda
161
Appendix
164
Glossary
164
Conversion Table
169
List of Charts
Indian Primary Energy Mix (2010)
Balance Recoverable Oil Reserves, Production and Consumption
10
India - Ultimate Oil Reserves (MMT)
10
Share of India Oil Production by Companies (2010-11)
11
India - Oil Supply Projections XII plan (2012-17)
12
Share of India Gas Production by Companies (2010-11)
13
India - Gas Demand Estimate (2012-17)
14
Recoverable Gas Reserve, Production and Consumption
14
India - Ultimate Gas Reserves (BCM)
15
India - Gas Supply Projections XII plan (2012-17)
15
Status of Exploration in the Indian sedimentary basins in 2010-11
21
Acreage Portfolio of the Indian sedimentary basins
21
Blocks Awarded under NELP I - NELP VIII Rounds in India
22
Acreage Portfolio under License (NELP I VIII) in India
23
Acreage Portfolio Awarded in NELP VIII Round in India
24
Refining Throughput of Major Players in India
27
India - Current Refining Capacity (MMtpa) and Companies

Share in Refining Capacity (%) in 2010
28
Net Product Export in India (Thousand metric ton)
29
World Energy Consumption (Mtoe)
45
World Primary Energy Supply (Mtoe)
46
World Proven Oil Reserves (2010)
47
Africa Oil Reserves (1995-2010)
47
World Oil Production (2010)
48
Africa Oil Production (1995-2010)
48
World Oil Consumption (2010)
49
Africa Oil Consumption (1995-2010)
49
World Refining Capacity (2010)
53
Africa Primary Refining Capacity (2010)
53
World Natural Gas Reserves (2010)
54
Africa Natural Gas Reserves (1995-2010)
54
World Gas Production (2010)
55
Africa Natural Gas Production (1995-2010)
55
World Gas Consumption (2010)
56
Algeria - Oil Reserves, Consumption and Production
58
Algeria - Gas Reserves, Production and Consumption
59
Algeria - Natural Gas International Trade in 2010 (in billion cubic metres)
61
Angola - Oil Reserves, Production and Consumption
64
Angola - Gas Reserves, Production and Consumption
66
Benin - Oil Reserves and Consumption
69
Cameroon - Oil Reserves, Production and Consumption Global
71
Cameroon - Gas Reserves, Production and

Consumption (Y-axis right hand side scale unit)
72
Chad - Oil Reserves and Production
74
Democratic Republic of Congo - Oil Reserves, Production and Consumption
76
Democratic Republic of Congo - Gas Reserves, Production and Consumption
76
Republic of Congo - Oil Reserves, Production and Consumption
80
Republic of Congo -Gas Reserves, Production and Consumption
81
CTE D' IVOIRE - Oil Reserves, Production and Consumption
84
CTE D' IVOIRE - Gas Reserves, Production and Consumption
85
Egypt - Oil Reserves, Production and Consumption
87
Egypt - Gas Reserves, Production and Consumption
89
Equatorial Guinea - Oil Reserves and Production
91
Equatorial Guinea - Gas Reserves
92
Ethiopia - Oil Reserves, Production and Consumption
95
Gabon - Oil Reserves, Production and Consumption
99
Gabon - Gas Reserves, Production and Consumption
100
Ghana - Oil Reserves, Production and Consumption
103
Ghana - Oil Production and Consumption (Forecast)
103
Kenya - Oil Consumption
107
Liberia - Consumption of Petroleum Products
110
Libya - Oil Reserves, Production and Consumption
114
Libya - Gas Reserves, Production and Consumption
115
Mozambique - Oil Consumption
123
Mozambique - Gas Reserves, Production and Consumption
123
Niger - Oil Consumption
130
Niger - Petroleum Products Consumption Breakup 2010
131
Nigeria - Oil Reserves, Production and Consumption
133
Nigeria - Gas Reserves, Production and Consumption
134
Senegal - Oil Reserves, Production and Consumption
140
Senegal - Gas Reserves, Production and Consumption
140
South Africa - Oil Reserves, Production and Consumption
147
South Africa - Gas Reserves, Production and Consumption
147
Sudan - Oil Reserves, Production and Consumption
156
Tanzania - Oil Consumption, Imports
158
Tanzania - Gas Reserves, Production and Consumption
159
List of tables
Total Primary Energy and Oil Consumption of

Top five countries in Mmtoe (2010)
Per Capita Energy Consumption (kgoe) 2007-2009
Existing sources of gas supply in India
13
LNG import projections during XII Plan
16
Winners of first and second round of bidding for CGD Network Projects
19
3rd round of bidding for CGD Network Projects
19
Acceptance of Central Government Authorization for

CGD Entitities: under Regulation 17
20
26
India's current refineries with capacity
28
Crude oil pipeline network
30
Petroleum pipeline network
31
Natural gas pipeline network
32
GAILs new upcoming pipelines
32
Foreign Direct Investment (FDI) guidelines
36
Recent and planned licensing round in Africa
50
Announced Discoveries in Africa
50
Major Farm-in activities in Africa during 2010
51
Ongoing/upcoming upstream projects in Angola
65
Block-wise winners of recent Angolan licensing round, 2011
67
Operational / proposed LNG projects in Egypt
89
Summary of Deep Wells Drilled in Kenya
106
Main production units of the Monrovia refinery in Liberia
110
Foreign Companies oil production in Libya
114
Upstream Projects under implementation in Libya
115
Natural gas uses break up in Libya
116
Oil refineries in Libya
116
Mozambique fourth onshore licensing round results
125
Existing / proposed LNG projects in Nigeria
136
India
Basic information
Population:
1,189,172,906 (July 2011 est.)
Currency:
Indian Rupee (` or INR)
Exchange rate:
1US$ = ` 45.798 (Quarterly avg, July-September 2011)
GDP (PPP):
US$ 4.06 trillion (2010 est.)
GDP-real growth rate:
8.5 per cent (2010-11)
GDP-per capita:
US$ 3,500 (2010 est.)
Head of State:
H.E. Smt. Pratibha Devisingh Patil, President (since 25 July, 2007)
Head of Government:
Dr. Manmohan Singh, Prime Minister (since 22 May, 2004)
Overview of energy sector

India, the world's largest democracy, is the fourth largest economy in terms of Gross Domestic Product
(GDP) in Purchasing Power Parity (PPP) terms after USA, China and Japan. Strong average GDP growth
rate of 8.2 per cent in first four year of XI five year plan (2007-11) and initially projected 9.0 per cent in 2011
(now expected about 8.0 per cent) have resulted in a surging demand for energy and hydrocarbon sources.
Since 2010 India is the fourth largest primary energy consumer, after China, USA and Russia. Total primary
energy consumption in 2010 was 524.2 million ton oil equivalent (MMtoe) or 4.37 per cent of total global
primary energy consumption. . The energy demand has been increasing at a compounded annual average
growth of 6.5 per cent during the last five years and at 9.2 per cent in 2010 over the previous year.
In 2010, oil and gas accounted for over 40 per cent of India's total primary energy consumption, next only to
coal, which accounts for ~53 per cent.
Total Primary Energy and Oil Consumption of Top five countries in Mmtoe (2010)
Primary Energy
Consumption
Oil
Consumption
As per cent of World Primary

Energy
China
2432.3
428.6
20.3
US
2285.7
850.0
19.0
Russia Federation
690.9
147.6
5.8
India
524.2
155.5
4.4
Japan
500.9
201.6
4.2
Country
Source: BP Statistical Review, 2011
Indian Primary Energy Mix (2010)
53%
Oil
Natural Gas
1%
5%
Coal
Nuclear Energy
Hydro electricity
10%
30%
Renew- ables
Renewables
1%
Source: BP Statistical Review 2011
With one-sixth of the world population, India's per capita energy consumption was 585 kilograms of oil
equivalent (kgoe) in 2009, significantly lower than the global average of 1,839 kgoe. As per Planning
Commission of India, the primary commercial energy requirement would reach to 738.07 Mtoe by 2016-17
of which approximately 38 per cent would be met through imports. With expected growth rate of more than
8% in the near future, India's per capita energy consumption is expected to more than double to about
1,124 kgoe by 2031-32, however it will still continue to be significantly lower than the 2009 world average of
1,797 kgoe.
Per Capita Energy Consumption (kgoe) 2007-2009
Select Countries
2007
2008
2009
United States
7,748
7,503
7,034
Russian Federation
4,733
4,838
4,559
Japan
4,033
3,883
3,707
United Kingdom
3,444
3,395
3,184
China
1,489
1,598
1,698
Brazil
1,240
1,298
1,240
India
529
545
585
World
1,821
1,839
1,797
Source: IEA Key World Statistics 2011
Oil sector
As reported by BP Statistical Review 2011, at 9.04 billion barrels of oil equivalent (boe), India's proven
balance recoverable oil reserves are a meager 0.65 per cent of total world's reserve placing India at 19th
position in the world. More than 50 per cent of India's proven oil reserves are located in the western
offshore Mumbai High and in the onshore northeast of the country. Substantial undeveloped reserves are
located in the offshore Bay of Bengal Krishna Godavari basin and in onshore Rajasthan.
Balance recoverable oil reserves (Left axis), production and consumption (Right axis)
Oilreserves(millionbarrels)
9,000
3,000
8,000
2,500
7,000
6,000
2,000
5,000
1,500
4,000
3,000
1,000
2,000
500
1,000
Production&Cosnumption('000BPD)
3,500
10,000
0
2005
2006
2007
OilReserves
2008
OilProduction
2009
2010
OilConsumption
With Reserves to Production (R/P) ratio of 30 years, India's existing domestic production of about 826,000
barrels of oil per day (bopd) is only about 25% of its current consumption of 3,319,000 bopd, creating a
wide gap to be met through imports. As a result, the volume of crude oil imports has been increasing
steadily in India nearing about 75 per cent of its total crude requirement in 2010.
According to DGH, the ultimate oil recoverable reserves i.e. total oil recoverable reserves is as per the chart
given below.
Ultimate Oil Reserves (MMT)
1700
1688
1646
1600
1544
1500
1400
1300
1200
1100
1000
2008
2009
2010
Source: Directorate General of Hydrocarbons, India
Crude oil is one of the significant commodities in the import bill. As per Directorate General of Commercial
Intelligence and Statistics, India (DGCI&S), crude oil and refined products made up over 28 per cent of
India's import of principal commodities in 2010-11 resulting in Indias outflow for importing these
commodities to about US$103 bn in 2010-11, compared to US$ 86 bn in 2009-10, an increase of about 20
per cent. However, in terms of quantity, India imported 24% less crude oil and refined products in 2010-11
over the previous year, i.e. 173.53 million tons in 2010-11 versus 177.85 million tons in 2009-10. According
to the Petroleum Planning & Analysis Cell (PPAC), during first six months of the current financial year
(March Sept, 2011), India imported 84.13 million tons of crude oil and 7.92 million tons of refined products
while during the same period India exported about 31.19 million tons of refined products.
The gap between crude oil requirement and domestic production is expected to widen further as a result of
India's forecast GDP growth rate of 9 per cent per annum over the next five years as per the draft approach
paper on the XII five year plan (2012-17). As per assumptions made by the Working group on energy sector
for the Twelfth Plan, the country requires energy supply to grow by 6.5 per cent to maintain the growth rate
of 9 per cent over the next five years. It is projected that the oil and gas requirement by the terminal year of
the XII plan would reach 204.80 Mtoe and 87.22 Mtoe respectively. This demand for oil and gas would be
fulfilled by import of 164.8 Mtoe (or 80.5%) crude oil and 24.8 Mtoe (28.4%) natural gas in 2016-17.
During the XII plan, import dependence on crude oil is expected to increase from 76 per cent in 2010-11 to
80 per cent in 2016-17, and for natural gas it is projected to increase from 19 per cent in 2010-11 to 28.4
per cent in 2016-17 (end of the Twelfth Plan).
In addition to importing greater quantities of crude oil, the Government of India has increased its focus on
enhancing reserves and production through increased domestic exploration activity as well as securing
equity oil overseas. Besides, upstream companies are emphasising on secondary and tertiary recovery of
hydrocarbons from the fields where production is in significant decline.
Domestic oil production is currently dominated by the state-owned exploration companies ONGC and OIL,
which together accounted for ~ 74 per cent of India's crude oil production in 2010-11. Crude oil production
has increased by 12.5% to 37.68 MMT in 2010-11 from 33.50 MMT in 2009-10 due to contribution of over 6
MMT from Barmer, Rajsthan and KG Basin.
Share of India Oil Production by Companies (2010-11)
25.7%
ONGC
OIL
9.5%
Pvt / JV Companies
64.8%
Source: Ministry of Petroleum and Natural Gas, Government of India (Economic Editors Conference Report, October 2011)
It is expected that in near future, production from Cairn Indias Rajasthan fields is set to increase, as they
are yet to realize the full potential.In addition, ONGC and OIL India are already working on increasing
production through Enhanced Oil recovery (EOR) in their respective fields.
Oil supply projections XII plan (2012-17)
30
25
MMTPA
20
15
10
5
0
2012-13
2013-14
ONGC
2014-15
OIL
2015-16
2016-17
Pvt./JV
Source: Ministry of Petroleum and Natural Gas, Government of India
The contribution of crude oil production by the NOCs, ONGC and OIL, is expected to be about 68 per cent
in 2012 while the balance 32 per cent is to come from private sector and JV companies. In the terminal year
of the XII plan (2016-17) oil production from NOCs is expected to rise to 72 per cent with the remaining 28
per cent be contributed by private sector and JV companies
Natural gas sector

According to BP Statistical Review 2011, natural gas is currently approximately 10 per cent of India's total
primary energy basket, which is well below the world average of 23.8 per cent in 2010. India's proven gas
reserves currently stand at 1.45 trillion cubic meters, which are 0.77 per cent of the world's total proven gas
reserves. This ranks India at 22nd in the world in terms of proven gas reserves. At existing production levels
of 50.9 bcm per year, the country has a Gas R/P ratio of about 28.5 years.
Gas production and supply

At present, gas supply is approximately 140 MMscmd against an estimated demand of approximately 262
MMscmd in 2010 (and 279 MMscmd in 2011 as per XI five year plan). India meets three-fourth of its current
gas consumption from its own production with the balance being fed by Liquefied Natural Gas (LNG)
imports. In 2010, India imported 12.15 bcm (33.3 MMscmd) of LNG, mainly from Qatar and small quantities
from Trinidad & Tobago, Nigeria, Yemen, Egypt and Equatorial Guinea.
Share of India Gas Production by Companies (2010-11)
44.2%
ONGC
OIL
51.3%
Pvt / JV Companies
4.5%
Source: Ministry of Petroleum and Natural Gas, Government of India (Report: Economic Editors Conference, October 2011)
The bulk of domestic gas production is by the state-owned companies, ONGC and OIL, which currently
contribute ~49 per cent of production volumes. The balance share of gas production is from private/JV
companies. RIL from KG Offshore and consortium of BG-RIL-ONGC from Mumbai Offshore were the
largest contributors to the countrys gas production volumes after NOCs during year 2010-11.
The production from Reliance KG D-6 field has commenced with producting at around 50 MMSCMD it
accounts for ~36 per cent of Indias natural gas production. The gas production is expected to increase
further as RIL has formed a JV with BP for technological assistance across the gas value chain in India.
Existing sources of gas supply

Supply Sources (MMscmd)
FY2010
Domestic Supply
ONGC
63.3
OIL
7.0
Pvt/JV
73.4
LNG Imports
Petronet LNG
- Long term supply
(From RasGas)
- Spot / short term (for Dahej)
26.25
- Spot / short term (for Kochi)

Spot / short term by Shell Hazira
Spot / term by RGPPL
Grand Total
179.3
Source: Ministry of Petroleum and Natural Gas, Government of India (Economic Editors Conference Report, October
2011)/ Infraline
Gas consumption
As per the projections made in Report of Working Group on Petroleum and Natural Gas for XII Plan, power
and fertilizer sectors are expected to remain the major consumers of natural gas in India. Gas consumption
is expected to increase significantly in the future, as all the sectors are expected to witness healthy growth.
For instance, in CGD alone, PNGRB has plans to expand to about 300 cities overall in India, which may
require 100-120 mmscmd gas, estimated to be ~20-24% of the total gas demand estimates of ~473
mmscmd in 2016-17 as per the 12th plan.
Gas Demand Estimate (2012-17)

500
473
446
Gas demand estimate (MMSCMD)
450
405
400
371
350
293
300
250
194
200
150
100
50
0
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
Source: Ministry of Petroleum and Natural Gas, Government of India (12th Plan Working Group Report)
According to the BP Statistical review 2011, natural gas reserves reached 1.45 tcm in 2010 and gas
production and consumption reached 62 bcm and 50.8 bcm respectively. It is observed that the gas
production increased by 29 per cent in last two years while gas consumption increased by over 22 per cent.
1,600
70,000
1,400
60,000
Reserves(Bcm)
1,200
50,000
1,000
40,000
800
30,000
600
20,000
400
10,000
200
Production&Cosnumption(Mcm)
Recoverable gas reserve (Left axis), production and consumption (Right axis)
0
2005
2006
Gasreserves
2007
2008
GasProduction
2009
2010
GasConsumption
According to DGH, the ultimate gas recoverable reserves i.e. total gas recoverable reserves is as per the
chart given below.
Ultimate Gas Reserves (BCM)
2160
2200
2000
1763
1800
1713
1600
1400
1200
1000
2008
2009
2010
Gas supply projections XII plan (2012-17)
120
100
MMscmd
80
60
40
20
0
2012-13
2013-14
ONGC
2014-15
OIL
2015-16
2016-17
Pvt./JV
Source: Ministry of Petroleum and Natural Gas, Government of India (Report of the Working Group on Petroleum & Natural Gas
Sector- 12th Plan)
It is expected that the contribution of natural gas production by ONGC and OIL, the NOCs would reduce
from 54 per cent in 2012 to 51 per cent by end of XII plan (2016-17) despite growth in ONGC production.
This is due to fact that the balance production coming from private sector and JV companies is growing at
higher rate. As per the XII plan demand-supply estimates, it is concluded that over 50% of the natural gas
requirement would be met through imports in 2016-17.
The table below gives the estimates of LNG imports as per the current and ongoing LNG terminals. With a
slew of LNG terminals in planning stage, by various companies in India, the actual status may be quite
different from current forecasts.
LNG import projections during XII Plan

LNG Import Projections (MMscmd)
FY2012f
FY2013f
FY2014f
FY2015f
FY2116f
Dahej
35.0
43.8
43.8
52.5
52.5
HLPL Hazira
12.6
17.5
17.5
26.3
35.0
Dabhol
4.2
17.5
17.5
17.5
17.5
Kochi
LNLNGLNG Terminal terminalG

Imports
17.5
17.5
17.5
17.5
17.5
Ennore
17.5
17.5
Mundra
17.5
East Coast terminal (3)
17.5
17.5
69.3
96.3
96.3
148.8
Total Capacity
175.0
Source: Draft Report on Gas for XII Five Year Plan

f: Forecast
Gas imports: LNG and transnational pipelines

Despite the likely increase in gas supply from domestic resources, the rapidly increasing demand
necessitates imports in the form of LNG and through transnational pipelines.
LNG imports
Geographically, India is strategically located and is flanked by countries holding large proven gas reserves
both to its east and to its west. The country's large natural gas market is a major attraction to the LNG
exporting countries and in order to encourage LNG imports, the Government of India has kept import of
LNG under the Open General License (OGL) category and has permitted 100 per cent FDI in LNG
terminals.
Currently, India has two operational LNG import terminals:
Dahej LNG Terminal (10 Mmtpa): India started receiving LNG shipments in January 2004 with the
commissioning of Dahej terminal in Gujarat state. Petronet LNG, which owns this terminal, is promoted
by a consortium of ONGC, GAIL, IOCL, BPCL (total holding 50 per cent), Gaz de France International
(GDFI) (10 per cent), ADB (5.2 per cent), and with balance 34.8 per cent held by public. Petronet LNG
(PLL) has long term contracts with Ras Gas of Qatar for uninterrupted gas supply of 7.5 MMTPA and
has back to back sales arrangement with GAIL, IOCL & BPCL. PLL is also sourcing LNG through spot
and short term contracts from the international market for sale to other off-takers and bulk buyers.
Dahej terminal commenced operations in 2004 with the nameplate capacity of 5.0 Mmtpa and it was
expanded to 10.0 Mmtpa in July, 2009. The company has proposed to expand the capacity to 15 Mmtpa
by 2012.
The existing marine facilities of PLL are adequate for handling 10.5 to11.0 Mmtpa of LNG and it is
developing a second LNG Jetty to enhance the capacity of the terminal. The new jetty will help in
mitigating the risk of operating on a single Berth, facilitating berthing of tankers up to 260,000 cubic
metre (Q-Max). The project cost is estimated at US$ 200 million and is scheduled to be commissioned
by 3rd quarter of 2013.
Hazira LNG Terminal (3.5 Mmtpa): India's second LNG terminal started operations in April 2005 in
Gujarat state. The facility is owned by Hazira LNG, a joint venture of Shell and Total. Though supplies
for the terminal have not yet been secured on long term basis, Shell has been importing shipments of
spot LNG to operate the terminal. The terminal has operated at throughput capacity of 2.5 Mmtpa,
which can be expanded to 5 Mmtpa with marginal incremental investments in equipment. The Hazira
Terminal is expected to achieve a capacity to 10 Mmtpa as the gas market expands in India.
In addition to the above two running LNG terminals there are a number of projects in the pipeline in line with
the future potential demand for gas in India, both from a domestic as well as industrial requirement.
The third LNG terminal Ratnagiri Gas and Power Private Limited (RGPPL) is promoted by NTPC Limited
and GAIL (India) Limited. Both these PSU hold 30.17 per cent equity each while 17.9 per cent is with MSEB
Holding Company Limited and the remaining 21.77 per cent is with financial institutions. The plant has
throughput capacity of 5 Mmtpa out of which 2.1 Mmtpa is dedicated for RGPPLpower plant while
remaining 2.9 Mmtpa is for merchant sale.
Petronet LNG is building its second LNG receiving terminal at Kochi (the countrys fourth), which would
have a capacity of 5.0 Mmtpa with 1.44 Mmtpa LNG supply tied from Exxon Mobils Gorgon Venture in
Australia for 20 years. It is planned to be commissioned by third quarter of 2012.
PLL is exploring the feasibility of developing one more LNG terminal on the East Coast of India to cater to
regional specific demand. PLL has completed market feasibility, demand assessment along with price
sensitivity studies.
Petronet LNG has signed a long term contract for supply of 7.5 MMTPA of LNG with RasGas, Qatar.It
accounts for ~86 per cent of total Indias total LNG imports. In addition, feasibility of importing LNG from
other source countries like Algeria, Indonesia, Trinidad & Tobago, Australia and Malaysia is also being
pursued.
IOCL in partnership with Tamil Nadu Development Corporation Ltd. (TIDCO) is planning to set up 2.5
Mmtpa LNG regasification project expandable to 5.0 Mmtpa, which will fulfil the gas requirements of the
surrounding region. The project will be situated at Ennore near Chennai. The company will also install a gas
based power plant at Kattupalli. The LNG terminal at Ennore is expected to cost approximately Rs. 10,000
crore.
GAIL is planning an LNG floating storage and regasification unit (FSRU) in Eastern India which could
require an investment of about Rs 3,000 crore. IOCL is also planning to set up an LNG import and
regasification facility in Dhamra.
Hiranandani Group, a large private construction/real estate company has planned to set up an 8 Mmtpa
terminal at Dighi port in Maharashtra for captive use for upcoming power plants and to supply gas to power
and fertiliser players.
Adani and GSPC plan to build a 5 Mmtpa LNG regasification terminal in Mundra on countrys western
coast. Both the partners will have equal stakes in the Mundra LNG terminal.
Reliance Industries Limited (RIL) and BP formed a JV, India Gas Solutions, which also plans to develop
infrastructure for transportation and marketing natural gas in India and pursue opportunities including import
of LNG. The JV could build an LNG terminal and pipelines if it did not find capacity at Indias existing LNG
regasification facilities.
Transnational pipelines
From a geographical perspective, India is well placed to meet its natural gas requirement through
transnational pipelines. It is surrounded in the East, West and the North by major gas-surplus countries, in
terms of their proven gas reserves. Currently, two import pipelines projects are being explored from the
North (Daulatabad, Turkmenistan) and West (Iran):
Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline: The 1,680 km, US$ 7.2 billion pipeline
project sponsored by the Asian Development Bank, will transport natural gas from Turkmenistan
through Afghanistan and Pakistan to India. India, Pakistan and Afghanistan have signed a framework
agreement to buy natural gas from Turkmenistan in April 2008. A Special Purpose Vehicle (SPV) will
be floated for the project, and the pipeline will be built and operated by a consortium of companies from
the participating countries.
Iran-Pakistan-India (IPI) pipeline: A 2,775 km natural gas pipeline from Iran to India via Pakistan was
conceptualized in 1989, to cater to the growing Indian energy need. The Joint Working Group (JWG) of
the three countries was formed to discuss the price formula, transportation tariff and transit fee. India
and Pakistan have agreed to pay US$ 4.93 per million British thermal units; however some details
relating to price adjustment are pending for approval from the countries.
Iran and Pakistan signed the deal in June 2010 and target to export 21.5 MMscmd (or 8.7 bcm per year)
of Iranian natural gas to Pakistan. According to Pakistan's minister of oil and natural resources, Iran-
Pakistan natural gas pipeline will be completed before the end of 2013 one year ahead of the original
schedule. Out of the total US$ 7.6 billion dollars cost of the project, Pakistan is expected to spend
US$ 1.65 billion dollars. Due to hefty transit fee demanded by Pakistan, India has backed out of the
project at this stage.
In addition, there is potential for at least two import pipelines to be developed from the eastern side:
Myanmar-India pipeline
Bangladesh-India pipeline
Efforts have been made at the highest level for these projects, however, the decision remains delayed due
to regional geo-politics.
Technical and commercial feasibility studies were undertaken by INTECSEA in 2008, for a sub-sea pipeline
from Oman, costing US$ 10 billion.If implemented, the pipelines will reach a maximum depth of 3,500m with
a total length of about 1,000km.
City gas distribution in India: An overview

India saw the modern CGD sector taking its shape in early 1980s with entry of Gujarat Gas and GAIL.
Despite this, development of CGD lagged due to lack of reach of gas transmission infrastructure and proper
regulatory framework. However, with the proposed development of pipelines connecting Southern and
Eastern India to the gas sources and formation of a downstream regulator, namely, Petroleum and Natural
Gas Regulatory Board (PNGRB) in 2006, the ball has been set rolling.
Currently CGD map is limited to approximately 70 cities, with an available transportation network of 6500
km and 380+ CNG stations catering to 600 thousand domestic, 25 thousand commercial and 700+
industrial connections. An estimated investment of Rs. 400 billion is planned during XIth five year plan
(2007-12) in gas sector, 75% of which is for transmission pipelines and CGD distribution infrastructure
combined.
Policy decisions to grant infrastructure status to common-carrier gas pipeline projects, entry of private
playerssuch as Reliance, permission of 100% FDI in LNG imports etc are the required triggers for the
sector. With fructification of all or some of these measures, CGD is expected to include 70 more cities in the
near future.
Another initiative of MoPNG is the Gas Utilization Policy, which deals with priority for use of natural gas.
According to this policy, CGD is fourth in priority after fertilizer, LPG extraction and power plants. As natural
gas availability is a major concern for growth of the CGD sector, this policy may affect the transportation
industry, a major beneficiary of CGD expansion in the country on account of expected replacement of
existing polluting liquid fuels by natural gas.
Some of the players in CGD include GAIL and its subsidiaries with regional players and other PSUs,
Reliance Gas, GSPC Gas Co. Ltd., Lanco Infratech Ltd, Adani Energy, GGCL, GEECL, DSM Infratech, LMJ
Energy Infralogistics Ltd etc.
PNGRB has held three rounds of bidding for city gas distribution. The results of first and second
rounds are given in the chart. The third round, results of which are still pending, has attracted 51
bids for seven city-areas.
Winners of first and second round of bidding for CGD Network Projects
First Round
Second Round
Cities
Won by
Cities
Kakinada
(Andhra Pradesh)
Bhagyanagar Gas
Allahabad
Dewas
(Madhya Pradesh)
GAIL Gas
Chandigarh
Meerut
(Uttar Pradesh)
GAIL Gas
Ghaziabad
Sonepat (Haryana)
GAIL Gas
Jhansi
Kota
(Rajasthan)
GAIL Gas
Rajahmundry
Mathura
(Uttar Pradesh)
JV of M/s DSM Infratech

Pvt. Ltd. & M/s Saumya
Mining Pvt. Ltd.
Shahdol
Won by
IOCL+Adani JV
IOCL+Adani JV
IOCL+Adani JV
GAIL Gas
IOCL+Adani JV
Reliance Gas
Yanam
Reliance Gas
3rd round of bidding for CGD Network Projects

Cities
No. of bids received
Bidders
Asansol-Durgapur(WB)
Hindustan Petroleum Corpn.Ltd., Great Eastern

Energy City Gas Pvt. Ltd., GAIL Gas Ltd., Essar
Projects (India) Ltd., Lanco Infratech Ltd., Rohan
Builders (India) Pvt. Ltd., and LMJ Energy
Infralogistics Ltd.
Ludhiana(Punjab)
16
Hindustan Petroleum Corpn Ltd., Indraprastha Gas

Ltd., JPM Gas Ltd., GAIL Gas Ltd., Indian OilAdani Gas, Welspun Infratech Ltd., Siti Energy
Ltd., Ambience Limited, GSPL GSPC Gas, Jay
Madhok Energy Pvt. Ltd., HCC Infrastructure Co.
Ltd., Everest Kanto Cylinder Ltd., LMJ Energy
Infralogistics Ltd., BPCL, ONGC & Oil India Ltd.,
Rohan Builders (India) Pvt.Ltd., and Lanco
Infratech Ltd.
Jalandhar(Punjab)
12
Hindustan Petroleum Corpn.Ltd., Indraprastha Gas

Ltd., Indian Oil-Adani Gas, Siti Energy Ltd.,
Ambience Ltd., BPCL, ONGC & Oil India Ltd.,
Lanco Infratech Ltd., Consortium of GSPL-GSPC
Gas, HCC Infrastructure Co. Ltd., LMJ Energy
Infralogistics Ltd., Jay Madhok Energy Pvt. Ltd.,
and GAIL Gas Ltd.
Panipat(Haryana)
Deferred
Jamnagar(Gujarat)
GSPC Gas Co. Ltd. and Lanco Infratech Ltd.
Bhavnagar(Gujarat)
Gujarat Gas Co. Ltd. and GSPC Gas Co.Ltd.
Kutch-East(Gujarat)
Hindustan Petroleum Corpn. Ltd., GAIL Gas Ltd.,

GSPC Gas Co. Ltd., Indian Oil-Adani Gas, Onelife
Gas Energy & Infrastructure Ltd., PSL Gas
Distribution Pvt. Ltd., Everest Kanto Cylinder Ltd.,
and Jay Madhok Energy Pvt. Ltd.
Deferred
Cities
No. of bids received
Kutch-West(Gujarat)
Bidders
GSPC Gas Co. Ltd., JSIW Infrastructure Pvt. Ltd.,
Indian Oil-Adani Gas and PSL Gas Distribution
Pvt. Ltd.
Regulation 17 is notified by PNGRB for existing entities, which were authorized to operate in cities on
acceptance by the Central Government. It is applicable for the CGD entities authorized by the Central
Government before the appointed date (1st October, 2007) of PNGRB. The entities and cities are
mentioned as below:
Acceptance of Central Government Authorization for CGD Entities: under Regulation 17
Name of the CGD Network
Area Covered
Agra CGD Network
Agra
Green Gas Limited
Hyderabad CGD Network
Hyderabad
Bhagyanagar Gas Limited
Indore CGD Network
Indore including Ujjain
Aavantika Gas Limited
Ghandhinagar Mehsana
Sabarkantha CGD Network
Ghandhinagar Mehsana
Sabarkantha
Sabarmati Gas Limited
Pune City including Pimpri

Chichwad CGD Network
Pune City including

Pimpri Chiechwad and
along with adjoining
contiguous areas of
Hinjewadi,
Chakan & Talegaon GA
Maharashtra Natural Gas Limited
Kanpur CGD Network
Kanpur GA
Central U.P. Gas Limited
Bareilly CGD Network
Bareilly GA
Central U.P. Gas Limited
Delhi CGD Network
National Capital Territory

of Delhi
Indraprastha Gas Limited
Mumbai CGD Network
Mumbai & Greater

Mumbai
Mahanagar Gas Limited
Vijaywada CGD Network
Vijaywada GA
Bhagyanagar Gas Limited
Entity Authorized
Exploration and production

India has 26 sedimentary basins covering 3.14 million sq. km of area. Of these 26 basins, 22 basins fall in
the three categories of being prospective, having identified prospectivity and proven to be commercially
productive. Of the total area of 3.14 million sq. km only 22 per cent has been moderately to well explored.
Exploration efforts have been initiated in 44 per cent of the area and 34 percent remains poorly to
completely unexplored. Currently, 1.06 million sq. km area is under active petroleum Exploration Licenses
in 18 basins and a total of 35,601 sq. km area is under Mining Lease. Out of the total 597 concessions in
operations 259 are under Petroleum Exploration License (PEL) and 338 are under Mining Lease (ML).
Status of Exploration in the Indian sedimentary basins in 2010-11
22%
22%
Poorly Explored
Exploration Initiated
Unexlpored
12%
44%
Moderately to Well
Explored
About 44 per cent of Indias total sedimentary basin area is in the onshore zone, covering an area of 1.39
million sq. km, and balance 56 per cent covering 1.75 million sq. km is in offshore zones, including
deepwater offshore zone of 1.35 million sq.km.
Acreage Portfolio of the Indian sedimentary basins
Onshore
(1.39 mn sq
km)
44%
Shallow Water
Deep Water
Deep Water
(1.35 mn sq
km)
43%
Onshore
Shallow Water
(0.4 mn sq km)
13%
Earlier concerns of the prospectively of India's sedimentary basins have been offset by large discoveries in
the eastern offshore Krishna Godavari (KG) basin by Reliance in 2003 and GSPC in 2006. As a result, the
KG basin is now viewed as one of the most exciting exploration provinces in the world and is becoming the
hub of exploration activity in India. Though there are some concerns on gas production in KG D6, the recent
alliance of RIL and BP Plc, seems to add the required technological impetus to the Indian E&P story, and
open avenue for more deepwater offshore exploration.
The hydrocarbon bearing potential of India's onshore acreage is also underlined by Cairn Energy's
Rajasthan oil discovery in 2004, which has yielded proven oil reserves of more than 1 billion barrels.
Participation by foreign exploration companies has increased since the first NELP-I bidding round in 1999
and in 2006, the number of foreign companies exceeded the domestic companies bidding under NELP VI.
The recent NELP-IX round has attracted 29 Indian companies and 8 foreign companies for 34 blocks on
offer.
Blocks awarded under NELP I - NELP VIII Rounds
200
12.0
180
140
8.0
Nos.
120
100
6.0
80
% of
Total
Sediment
ary Basin
10.0
160
4.0
60
40
2.0
20
0.0
0
NELP I NELP II NELP III NELP IV NELP V NELP VI NELP VII NELP
VIII
No. of Blocks Offered
No. of Blocks Bid For
Licensing regime
Pre-New Exploration Licensing Policy (NELP) exploration
India's Exploration and Production (E&P) sector was largely dominated by ONGC and Oil India Limited until
the 1990s. With the initiation of the liberalization process in 1991, the upstream sector was opened up with
annual exploration bidding rounds for small and medium size fields for development by private companies
and JVs. In 1992 and 1993, two rounds of bidding for small and medium size fields were held.
Since 1993, the Government of India has signed Production Sharing Contracts (PSCs) for 28 exploration
blocks under Pre-NELP rounds, 11 of which have already been relinquished or surrendered. At present,
there are 16 exploration blocks under operation.
Major hydrocarbon discoveries made in the pre-NELP blocks are in the Gulf of Cambay by Cairn Energy,
Gujarat State Petroleum Corporation (GSPC) and Essar; and, in the Rajasthan Basin by Cairn Energy.
New Exploration Licensing Policy (NELP)

The New Exploration Licensing Policy (NELP) was introduced in 1997-98 by the Government of India to
boost hydrocarbon exploration in the country. The Directorate General of Hydrocarbon (DGH) has held nine
rounds of bidding under NELP I to NELP IX to date.
Some of the salient features of the NELP regime are:
Award of licenses through international competitive bidding. No acreage is to be awarded on nomination
basis and India's NOCs are to participate on competitive basis with other bidders.
An internationally competitive fiscal regime and no signature, discovery or production bonus. Contract
assures fiscal stability and full repatriation of profits abroad.
Participation through unincorporated JVs and no oil industry development cess or custom duty.
Up to 100 per cent cost recovery (biddable).
Low to moderate royalty rates between 5 to 12.5 per cent and special concessions for deepwater
blocks.
Option to amortize exploration and drilling expenditure over a period of 10 years from the date of
commercial production.
Under the NELP I-VIII rounds, the DGH has awarded 235 blocks covering a total area of 1,468,511 sq. km.
Acreage Portfolio under License (NELP I VIII)
17%
Deep water
Onland,
16.8%
Onland
Shallow water
66%
The NELP VIII Licensing Round attracted a total of 76 bids for 36 blocks, out of 70 blocks on offer. Of the
24 deepwater blocks and eight onshore blocks on offer, single bids were placed for eight deepwater blocks
and two bids for onshore blocks. Out of the 28 shallow offshore blocks on offer, 13 blocks received bids,
with four blocks receiving multiple bids. On the other hand, all 10 Type-S (area not exceeding 200 sq.km.)
blocks received bids, with nine blocks receiving multiple bids. ONGC was the highest winner, totaling 17
blocks - 14 as operator, and 3 as non-operator. A total of 62 companies comprising of 10 foreign companies
and 52 Indian companies have bid either on their own or as a part of consortia.
Total 32 (8 deep water, 11 shallow water and 13 in onland areas) blocks were awarded and contracts have
been signed for all the blocks. Oil and Natural Gas Corporation (ONGC) won 14 blocks and along-with its
partners, BHP Billiton-GVK Power and Esveergee Steel (for the first time) won 3 blocks each, OIL, Cairn
India, Jubilant Oil & Gas and Harish Chandra won 2 blocks each. According to MOP&NG, investments of
approximately USD 1.1billion have been committed in this round.
Acreage Portfolio Awarded in NELP VIII Round
9%
Deep water
31%
Onland
Shallow water
60%
NELP IX Licensing Round 2010

The NELP-IX bidding round was announced by the DGH in October 2010 with submission deadline of
March 18, 2011. Total 34 exploration blocks including 19 new blocks and 15 relinquished blocks in 10
sedimentary basins covering an area of about 88,807 Sq. Kms were offered. Out of the 34 blocks, 19
onland blocks (out of which 8 type S blocks in most prolific producing basins), 8 deep water and 7 shallow
water blocks were offered. In NELP IX, an area of 58,336 Sq. Km (65.69%) covering 19 new blocks was
offered for the first time. In the remaining 15 blocks on offer, newly acquired data based on new concepts
for hydrocarbon exploration and frontier areas was available.
Open Acreage Licensing Policy (OALP)

So far 9 NELP rounds have been conducted; although foreign companies participation for exploration of
acreage has increased considerably. In order to seek more participation from international bidders, GoI is in
the process of introducing new policy for bidding under which oil and gas acreages will be available round
the year instead of cyclic bidding rounds launched under New Exploration Licensing policy (NELP).
One of the pre-requisite/ challenges for the formulation of OALP is to establish a data repository center to
provide quality and reliable geo-scientific data for evaluation to E&P companies. DGH has initiated the
process of establishing a National Data Repository (NDR) for gathering all the available geo-scientific data
available in India under one roof so that it is easily available to all the agencies that require it, such as, E&P
companies, research institutes and academia.
In OALP, data for any block would be made available to bidders through the NDR and it will enable bidders
to bid for any oil & gas block throughout the year. This concept of bidding would be implemented in India in
near future.
Shale Gas
Shale gas is high on the agenda all the fronts in India, including Government, PSUs and private majors in
India. After the success of shale gas in US, India is seeing shale gas as the significant option to address our
energy security concerns. During the last decade, US shale gas production has increased from merely ~
2% to ~ 17% of the total natural gas production based on advances in horizontal drilling and hydraulic
fracturing technologies.
It is estimated that a number of sedimentary basins (Gangetic plain, Gujarat, Rajasthan, Andhra Pradesh &
other coastal areas) in India, including the hydrocarbon bearing ones Cambay, Assam-Arkana, &
Damodar have large shale deposits. Though all the shale deposits are not ideal for shale gas exploration,
substantial potential for gas is expected from these basins.
India has plans to start licensing rounds for shale gas during XVII plan (2012-17), after assessment of
resource is done.GoI has signed MoU with US Geological Survey, Department of State in November 2010
to obtain technical assistance for characterization and assessment of shale gas resources, carrying out of
technical studies and training of manpower. Assessment of shale gas resources will help India to open up
the shale gas exploration acreages for bidding. The Directorate General of Hydrocarbons (DGH) is also
preparing for the auction of shale blocks in near future. In this regard, DGH has constituted a Multi
Organization Team (MOT) for the purpose of coordinating the National Oil Shale Program and has identified
five (5) sedimentary basins for detailed resource evaluation. Also, DGH is working on shale gas policy to
create favourable environment for investments.
To understand the technologies and to gain experience for participation in shale gas bidding round in India,
Indian oil & gas companies have taken certain initiatives, some of those include:
ONGC, in association with Schlumberger drilled first R&D well in the Damodar Valley for exploring shale
gas deposits and encountered about 800 meters of shale. Test results are encouraging for the presence
of shale gas, however, detailed evaluation the shale is being carried out by ONGC through a US based
laboratory. ONGC is planning to drill three more such wells in the Gondwana basins for shale gas
exploration after this success.
In 2010, RIL acquired 40% stake in Atlas Energys Marcellus acreage, 45% stake in Pioneer Natural
Resources Eagleford Shale core acreage and a 60% stake in Carizzo Oil & Gas Marcellus Shale
acreage. Participation in the development of shale plays in the US will give RIL experience in shale gas
development and extraction.
OIL has started seismic studies in the Assam-Arakan basin
In recent months, a number of Indian oil & gas companies have attempted to acquire shale gas assets
abroad, particularly in North America and Canada. These include OIL, IOCL, BPCL and others which
indicate their keenness to better understand and absorb the techniques for shale gas extraction in
collaboration with experienced players.
Bharat Petro Resources Ltd. (BPRL) acquired shale gas acreages from Australias Norwest energy to
pick up 50% and 27.80% P.I. in TP-15 and EP-413 blocks in Perth Basin.
In September, GAIL acquired 20% stake in one of Carrizo Oil & Gas Incs shale gas assets in the US.
Coal Bed Methane (CBM)

DGH has estimated prognosticated CBM resources at 4.6 Tcm spread over twelve Indian states covering
an area of 35,400 sq.kms. CBM exploration activities have already been initiated in 54 per cent of the area,
which is located in Indias major coal and Lignite bearing basins in the central and eastern parts of India.
Four CBM rounds have been completed till now and GoI have offered 36 blocks covering 18,600 sq KM
area out of which 34 blocks have been awarded including three blocks on nomination basis (two on
nomination and one through Foreign Investment Promotion Board route).
In CBM IVth round, GoI invited bids for 10 CBM blocks located in the different coal/lignite fields, covering an
area of about 5,000 sq.kms. In CBM IVth round, GoI invited bids for 10 CBM blocks located in the different
coal/lignite fields, covering an area of about 5,000 sq.kms. Total 26 bids were received for 8 blocks (out of
10 blocks) on offer. Government of India has awarded 7 CBM Blocks, however, bid for 8th block was
rejected due to non-submission of required bid documents by the sole bidder. The contracts for these 7
blocks were signed in July 2010. The awarded blocks covering an area of 3727 sq.km. are located in the
states of Assam (1), Jharkhand (1), Orissa (2), Madhya Pradesh (1), Madhya Pradesh & Chhattisgarh (1)
and Tamil Nadu (1). The estimated CBM resources of these 7 Blocks is about 330 BCM with expected
production potential of 9 MMSCMD.
Currently, CBM is commercially produced from five blocks in India, including Raniganj East, Raniganj
South, Jharia, Sohagpur West and Sohagpur East. Current CBM Production is about 0.15 MMSCMD that is
to likely to reach about 7.4 MMSCMD by 2013.
Key terms and conditions offered under the CBM rounds of licensing are as follows:
No signature bonus
10 per cent royalty
Biddable Production Level Payment, payable on every incremental production of 0.5 mmscmd
Freedom to market gas in domestic market at market determined prices.
Fiscal stability provision in the contract
No customs duty on imports required for CBM operations
One time lump sum commercial Bonus of US$ 0.3 million, following declaration of commerciality
Seven year tax holiday period

In order to enhance energy supply security and augment domestic exploration efforts, India's NOCs are
seeking overseas oil equity through acquisition of E&P assets. ONGC Videsh Limited (OVL), the overseas
arm of ONGC, has formed a number of JVs with foreign companies. As of 31st March 2011, OVL has a
presence in 33 projects in 14 countries spanning Africa, Asia, Latin America, and the Middle East.
In Africa, OVL, OIL, IOCL, BPRL, HPCL, Essar Energy and Videocon Group are actively pursuing E&P
activities. The major E&P projects in Africa where Indian Companies have a participating interest are as
follows:
S.No
Country
Block
Participating Interest and Partners
Libya
Block 86
OIL (50% Operator) and IOCL (50%)
102/4
OIL (50% Operator) and IOCL (50% )
Area 95/96
OIL (25%), IOCL (25%) and SIPEX (50%)
Contract Area 43
OVL (100%)
GNOP Block 1, 2 & 4
OVL (25%), CNPC (40%), Petronas (30%),

Sudapet (5%) Joint Operatorship
Block 5A
OVL (24.125%), Petronas (67.875%),

Sudapet (8%), Petronas and Sudapet
areJoint Operators.
Pipeline Project
OVL (90%), OIL (10%)
OPL 279 & OPL 285
OVL holds PI through its JV ONGC Mittal

Energy Limited (OMEL), which is the operator
of these two offshore blocks. Other partners
are Total and EMO
Sudan
Nigeria
OPL-279: OMEL (45.5%), EMO (40%), Total

(14.5%)
OPL-285: OMEL (64.33%) ,EMO (10%),Total(25.67%)
Egypt
Gabon
OPL 205 (Onshore)
OIL has signed SPA and SHA for acquiring

25% equity of Suntera Nigeria 205 Limited,
which is a Nigerian company having 70%
interest in Exploration Block OPL 205
OPL-226
Essar Energy (100%)
Block 3 & 4, Offshore, Egypt
Block 3 (South Quseir) is located in Red Sea

area and Block 4 (South Sinai) at the junction
of Gulf of Suez & Red Sea. GSPC led
consortium was awarded these two blocks in
GANOPE International Bid Round 2008.
GSPC (50% Operator), OIL (25%), HPCL
(25%)- PSA not signed
Shakthi
OIL (45% Operator), IOC (45%) Marvis Pte

Ltd (10%)
S.No
Country
Block
Participating Interest and Partners
Mozambique
Offshore Area 1
Anadarko (36.5% Operator), Mitsui E&P

Mozambique Area 1 (20 %), BPRL Ventures
Mozambique BV (10 %), Videocon
Mozambique Rovuma 1 (10 %) and Cove
Energy Mozambique Rovuma Offshore (8.5
%), Empresa Nacional de Hidrocarbonetos,
E.P. (15%)
Madagascar
2 onshore blocks in the

Morondava basin
Essar Energy (100%)
Refinery sector
In the last few years, Indias refinery sector has witnessed continuous capacity addition. As on April 2011,
India had a total capacity of 193.398 Mmtpa, growing by approximately 8.0 per cent in last 5 years.
According to BP Statistical Review 2011, Indias refining capacity utilization was highest in the world in 2010
which stood over 105 per cent while developed countries such as US, Canada and Japan manage 84 per
cent, 95 per cent and 81 per cent respectively. Even China was also unable to match the refinery capacity
utilization with India which was able to reach only 85 per cent in 2010. In last five years Indias refining
throughput has increased by a CAGR of over 23 per cent.
Refining throughput of major players

200,000
180,000
160,000
'000MT
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
200506
IOCL
200607
BPCL
200708
HPCL
200809
ONGC(MRPL)
200910
201011
Reliance
Essar
Source: PPAC
India has the largest refining capacity at single location at Jamnagar owned by, RIL with 60 MMtpa refining
capacity. RIL has 2 refineries and holds 31 per cent of Indias refining capacity. IOCL is the largest refining
player in the country operating 10 refineries at different parts of the country with capacity of 65.7 MMtpa and
has 34 per cent share. BPCL operates 4 refineries with aggregate refining capacity of 30.5 MMtpa and
contributes 15.8 per cent to the refining capacity of the country. HPCL is the fourth largest company in
terms of refining capacity with 14.8 MMtpa capacity and holds 7.7 per cent share of refining capacity and
owns two refineries. ONGC with its subsidiary MRPL operates two refineries with total capacity of 11.9
MMtpa and contributes 6.2%. Essar Oil has 10.5 MMtpa refining capacity, operates only one refinery with
5.4 per cent share in refining capacity.
India accommodates refineries with refining capacity as low as 0.078 MMtpa to as high as 33.0 MMtpa. This
smallest refinery is being run by ONGC at Tatipaka while the largest refinery is owned and operated by RIL
at Jamnagar SEZ.
Current refining capacity (MMtpa) and companies share in refining capacity (%) in 2010
IOCL
31.0%
34.0%
BPCL
HPCL
ONGC (MRPL)
Essar
Essar, 10.5,
5.4%
ONGC
(MRPL), 11.9,
6.2%
Reliance
15.8%
HPCL,
14.8, 7.7%
Source: PPAC (As on 1st April, 2011)
India's current refineries with capacity

Company Name
Location
Digboi
Indian Oil Corporation Limited
IOCL Subsidiary
Bharat Petroleum Corporation Limited
BPCL Subsidiary
Hindustan Petroleum Corporation Limited
Oil and Natural Gas Corporation

Reliance Industries Limited
Essar Oil Limited
Total Capacity
Total Capacity (Mmtpa)

0.65
Guwahati
1.00
Barauni
6.00
Koyali
13.70
Haldia
7.50
Mathura
8.00
Panipat
15.00
Chennai (CPCL)
10.50
Narimanam (CPCL)
1.00
Bongaigaon (BRPL)
2.35
Mumbai
12.00
Kochi
9.50
Bina (BORL)
6.00
Numaligarh (NRL)
3.00
Mumbai
5.50
Vizag
7.50
Tatipaka
0.08
Mangalore
11.82
Jamnagar
27.00
Jamnagar (SEZ)
33.00
Vadinar
10.50
193.39
Source: PPAC (As on 1st April, 2011)
Currently there are three refineries, under different stages of construction HMEL refinery at Bhatinda
(Punjab),IOCL refinery at Paradip, and Nagarjuna Oil Corporation Limited (NOCL) at Cuddalore
HPCL-Mittal Energy Limited (HMEL), a 49 per cent each-JV promoted by HPCL and steel conglomerate LN
Mittal Group Company, Mittal Energy Investment Pte Ltd, Singapore is constructing an oil refinery at
Bhatinda with a capacity of 9.0 MMtpa. It is designed to process wide variety of crude oil including heavy,
sour and acidic crudes. The project is expected to be commissioned by first quarter of 2012.
Indian Oil Corporation Limited (IOCL) is setting up a grassroot refinery at Paradip, Orissa with a refining
capacity of 15 MMtpa. This refinery would be the most modern refinery in India with a nil-residue
production, and the refined products would meet stringent specifications. Paradip refinery project cost is
estimated at Rs. 29,777 crore (~US$ 6 bn) and the project is expected to be commissioned by April-June,
2013.
Nagarjuna Oil Corporation Limited (NOCL), a subsidiary of Nagarjuna Fertilizers and Chemicals Limited is
setting up an oil refinery in Cuddalore, Tamil Nadu of 6.0 MMtpa in first phase which would be expanded to
15.0 MMtpa in future. The refinery would be state of the art with high complexity index designed to allow
processing various grades of crude oil (High Sulphur-high residue to Low Sulphur- low residue). The
refinery will produce auto fuels that will meet Indian as well as international specifications of Euro IV and
Euro V. Cuddalore refinery is expected to be commissioned by end of March 2012.
HPCL plans a US$6.7bn refinery of capacity 360,000b/d (19.5 MMtpa) refinery in Maharashtra in western
India. This will increase its refinery capacity by more than 500,000b/d (25.0 MMtpa) by 2017, which is
significantly higher than its current capacity of 280,000b/d (14.8 MMtpa). by 2017. This was necessitated by
HPCL's current retail expansion, which forced the company to buy products from other refiners.
BPCL is also planning to increase its refining capacity by expanding two of its existing plants or setting up a
greenfield refinery. Cals Refineries, with which BPCL has a fuel-offtake agreement, is also working on a
long delayed project to reconstruct Germany's Ingolstadt refinery in India.
India has one of the largest talent pools working in refineries in the world having hands on experience on
different technologies operations and this might be the opportunity for Africa to make partnership to improve
refinery efficiency, debottlenecking, capacity enhancement, process optimization, supply chain
management etc.
Import and export of petroleum and oil products

Net Product Export (Thousand metric ton)
45,000
41,796
Netproductexport('000MT)
40,000
36,311
35,000
30,000
25,000
18,318
20,000
20,377
15,964
15,000
10,018
10,000
5,000
0
200506
200607
200708
200809
200910
201011(P)
Source: PPAC
According to the Petroleum Planning & Analysis Cell (PPAC), India is net exporter of Naphtha, Petrol, ATF,
Kerosene and Diesel since last few years. In last five years the net export of petroleum products increased
to four folds and this quantity is expected to increase further as India is expected to have export potential of
approximately 93 MMtpa refined products by 2013, when the expected refining capacity should be 241,
subsequent to completion of new projects and expansion of existing plants.
The Government has increased Foreign Direct Investment (FDI) into the refining sector. In 2007, approval
was granted for HPCL's refinery-cum-petrochemical complex in Bhatinda, Punjab with the partnership of
Mittal Investments. The FDI was increased from 26 per cent to 49 per cent in oil refining. This can be
viewed as a major step towards the involvement of international oil companies in green-field refinery
projects in India.
Pipelines in India
India has wide network of crude oil, petroleum products, natural gas as well as LPG pipeline. During 196063, Oil India Limited laid the first trunk crude oil pipeline, 1156 km long from Naharkatiya and Moran oil
fields to the Refineries at Guwahati and Barauni. Crude oil pipelines are installed to transport crude to
refineries across the country. The first cross country product pipeline was laid by IOCL during 1962-64 to
transport products from Guwahati Refinery to Siliguri. Refined products pipelines are to carry products from
refineries to demand centres as well as to port locations for export purpose. Natural gas pipelines are the
largest network in India and two main pipelines HVJ and EWPL are the cross country pipelines to transport
gas to power, fertlizer, petrochemical plants, other industries and for CGD. LPG pipeline from Jamnagar to
Loni is the longest LPG pipeline in the world.
Crude oil pipeline networks:
As on March 1st 2011, India has over 13,459 kms of product and 7,837 kms of crude oil pipeline network,
with a capacity of 76.23 MMTPA and 106.1 MMTPA repectively.
ONGC has total 27,830 km long pipelines in India including 6,946 km of offshore pipeline.Oil India Limited
(OIL) owns and operates 1,432 km of cross-country crude oil pipelines. The state-of-the-art pipeline can
transport over 8.0 MMtpa of crude oil, feeding 4 PSU refineries Numaligarh, Guwahati, Digboi, Bongaigaon
and Barauni in Assam and Bihar state.
Cairn Indias The Mangala Development Pipeline (MDP) is the worlds longest continuously heated and
insulated pipeline. This is 670 km pipleine originates from Mangala Processing Terminal (MPT) in the
Mangala Field (Rajasthan) and end at the coastal location of Bhogat near Jamnagar on the western coast
of India.
Crude oil pipeine network
Pipeline
Owned and operated by
Length (kms)
Bombay High-Uran
Heera-Uran
Ahmedabad-Koyali
Ankleshwar-Koyali
Kalol-Nawagam-Koyali
Nahorkatiya-Digboi
Nahorkatiya-GuwahatiBongaigaon-Barauni
Salaya-Mathura Pipeline (SMPL)
Paradip-Haldia-Barauni Pipeline
(PHBPL)
Mundra - Panipat Pipeline (MPPL)
ONGC
ONGC
ONGC
ONGC
ONGC
OIL
203
81
77
94
127
48
OIL
1157
IOCL
1870
IOCL
1302
IOCL
1194
Mundra Bhatinda Pipeline
HPCL-Mittal
1100
Vadinar-Bina
BPCL
950
Mangala Development Pipeline
Cairn
674
Source: ONGC, OIL, ICL, HPCL, BPCL, Cairn
Petroleum pipeline network:

IOCL operates a network of 10,899 km long crude oil, petroleum product and gas pipelines with a capacity
of 75.26 MMtpa of oil and 10 mmscmd of gas. This is around 75 per cent of the countrys total domestic oil
pipeline network. IOCL is installing one more large product pipeline Paradip-Sambalpur-Raipur-Ranchi
which would be 1065 km long.
Pipeline
Owned and operated by
Length (kms)
Guwahati-Siliguri Pipeline (GSPL)
IOCL
435
Koyali - Ahmedabad Pipeline (KAPL)
IOCL
116
Haldia - Barauni Pipeline (HBPL)
IOCL
525
Barauni - Kanpur Pipeline (BKPL)
IOCL
745
Haldia-Mourigram-Rajbandh Pipeline
(HMRPL)
IOCL
277
Mathura-Delhi Pipeline (MDPL)
IOCL
147
Panipat-Ambala-Jalandhar Pipeline
(PAJPL)
IOCL
268
Panipat-Delhi Pipeline (PDPL)
IOCL
105
Mathura-Tundla Pipeline (MTPL)
IOCL
55
Panipat-Rewari Pipeline (PRPL)
IOCL
155
Panipat-Bhatinda Pipeline (PBPL)
IOCL
219
Koyali- Sanganer Pipeline (KSPL)
IOCL
1056
Chennai Trichy - Madurai Product

Pipeline (CTMPL)
IOCL
526
Madurai Sankari (Branch pipeline)
IOCL
157
Koyali - Dahej Product Pipeline

(KDPL)
IOCL
103
Manali - Chennai ATF Pipeline
IOCL
95
Koyali-Ratlam Product Pipeline
IOCL
265
Chennai-Bangalore Pipeline
IOCL
290
Bijwasan-Panipat Naphtha Pipeline
IOCL
111
Branch Pipeline to Hazira from

Koyali-Dahej Pipeline
IOCL
94
Mathura-Bharatpur spur Pipeline
IOCL
132
Mumbai-Pune pipeline
HPCL
161
Visakh-Vijayawada-Secunderabad
Pipe Line (VVSPL):
HPCL
571
Mundra-Delhi Pipe Line (MDPL)
HPCL
1056
Mumbai-Manglya-Piyala
BPCL
875
Bina - Kota Pipeline
BPCL
257
Kota-Jobner Pipeline
BPCL
210
Numaligarh-Siliguri Pipeline
OIL
660
Source: IOCL, BPCL, EIL, HPCL
Natural gas pipeline network:

India has more than 11,900 km long natural gas pipeline networks out of that about 2,500 km of pipeline
commissioned over the past 2-3 years and total gas transportation design capacity is about 283 mmscmd.
GAIL has the largest natral gas pipeline network in India with over 8,000 km long (including spurlines), with
capacity of approx. 170 mmscmd. GSPL Gujarat has 2,000 km network mainly in Gujarat with handling
capacity of 40 mmscmd. Assam Gas / Oil India has 571 km gas pipeline network with 8 mmscmd handling
capacity. RILs subsidiary RGTIL owns and operates East-West pipeline (EWPL) of 1,400 km long and has
80 mmscmd capacity.
Pipeline network
/ section
Pipeline
HVJ Network
Dahej Dabhol
Other networks
Owned and
operated by
Length
(km)
Capacity
(mmscmd)
HVJ / GREP (Gas Rehabilitation

and Expansion Project)
GAIL
3397
33
Dahej Vijaipur pipeline
GAIL
770
35
Vijaipur Dadri
GAIL
458
60
Chainsa - Sultanpur Neemrana
GAIL
218
35
Dadri - Bawana
GAIL
96
35
Dahej Uran pipeline
GAIL
474
12
Dabhol Panvel Pipeline
GAIL
327
12
Gujarat & Rajasthan
GAIL
1000
20
Maharashtra
GAIL
140
25
16
KG basin
GAIL
835
Cauvery Basin
GAIL
256
Others
GAIL
424
10
EWPL
East West Pipeline
RGTIL
1400
80
GSPL pipeline
network in
Gujarat
Gujarat network
GSPL
1874
40
OIL / Assam Gas
North East
OIL / AGCL
571
Dadri-Panipat
Dadri-Panipat R-LNG Spur

Pipeline
IOCL
132
Source: MoPNG Annual Report 2009-10, GAIL, GSPL, RIL, OIL
In order to increase reach of gas,especially to southern and eastern India, GAIL has aggressive plans of
laying pipelines. It had approved investment of Rs. 8000 crore in 2010 for laying new pipelines and
augmenting existing pipelines. GAILs new upcoming pipelines:
Pipeline
Length
(km)
Capacity
(mmscmd)
Expected
commissioning
Dadri Bawana Nangal (Completed till Bawana in Ph-I)
610
31
2011-12
Chainsa Jhajjar Hissar (Completed till Sultanpur in Ph-I)
300
35
2011-12
Jagdishpur Haldia
2000
32
2013-14
Dabhol Bangalore
1386
16
2011-12
Kochi Kanjirikkod Bangalore
860
16
2012-13
TOTAL
5156
130
Source: GAIL
After completion of above mentioned upcoming pipelines which are expected to be commissioned by 201314, the capacity of GAIL pipeline network is expected to increase from 157 MMSCMD at present to over
300 MMSCMD and overall length would be 14,000 Kms.
LPG Pipeline:
GAIL is the first company in India to own and operate LPG transmission pipeline and owns a cross country
Jamnagar-Loni LPG pipeline . It has 2,038 km LPG pipeline network 1,415 km of which connects the
western and northern parts of India and 623 km of networks is in the southern part of the country
connecting Eastern Coast. The LPG transmission network has a capacity to transport 3.8 MMTPA of LPG.
IOCL and BPCL also operate LPG pipleines. IOCL owns Panipat-Jalandhar LPG Pipeline (PJPL) which is
274 kms long while BPCLs LPG pipeline is to transport LPG from Mumabi refinery to Uran.
Natural Gas Pipelines in India- Existing and Proposed
Source: PNGRB, India
New major pipeline projects approved during 2009-10

Focus Energy to RRVUNL Pipeline (10"x90 Km.), project cost of Rs.99 crore
Dabhol-Bangalore Pipeline (30"/18"/10"/8"x1389 km), project cost of Rs 4543 crore.
Kochi-Kootanad-Bangalore Pipeline (24"/12"8" x 1114 km.), project cost of Rs. 3032 crore.
Jagdishpur-Haldia Pipeline (36"/30"/24"18"/ 12x2050 km.), project cost of Rs. 7596 crore.
Muradabad-Kashipur-Rudrapur Pipeline (12"/105km., 8"x54km.), project cost of Rs. 252 crore.
Capacity Augmentation of Agra-Ferozabad Pipeline (12"/10"/x65 km.), project cost of Rs. 119 crore.
Vijaipur-Borari, Spur Pipeline to Bhaiwara & Chittorgarh (18"16"/12"x290 km.), project cost of Rs. 463
crore.
Spur Pipeline to Jalandhar and Consumer Network to Ludhiana & Jalandhar (24"/4"x85 km.) and Spur
Pipeline from Saharnpur to Hariwar-Roorkee-Rishikesh-Dehradun (16"/10"/8"/4"x176), project cost of
Rs.540 crore.
IOCL has planned for 2,000 km new pipeline projects with estimated investments of Rs. 2000 crore for
expanding the infrastructure for transporting crude oil and petroleum products. These include the 700 km
Paradip-Haldia-Budge Budge-Kalyani-Durgapur LPG Pipeline, 295 km Sanganer-Bijwasan Naphtha
Pipeline, 270 km branch pipeline from Patna to Motihari and Baitalpur, 120 km Cauvery Basin Refinery to
Trichy Pipeline and 400 km Ennore-Trichy-Pondicherry LPG Pipeline.
Gujarat State Petronet Ltd, (GSPL) won a contract from PNGRB for laying three cross- country gas
distribution pipelines which include Mallavaram-Bhilwara (1611 km), Mehasana-Bhatinda (1688 km) and
Bhatinda-Jammu (512 km) pipelines. The estimated cost of the project would be Rs 12,500 crore. These
pipelines will have gas transportation capacity of 95 mmscmd. GSPL has 52 per cent stake in the
consortium, IOC has 26 per cent stake, BPCL and HPCL have 11 per cent stake each.
GAIL also won the rights to lay Surat-Paradip Pipeline of 1,550 km long natural gas pipeline from Surat in
Gujarat to Paradip in Orissa, which will connect west to east coast. This pipeline would be bi-directional with
a capacity to carry up to 60 mmscmd of gas. The pipeline will have 36-inch diameter and estimated cost of
the project would be Rs 5,500 crore. This will be the first pipeline in the country which will be originating
and terminating at a port - originate from Mora in Gujarat (a major node/terminal of GSPL gas grid pipeline
network) and end at the IOCLs Paradip refinery.
Sector organization
Oil sector companies
The Indian oil sector is dominated by state-owned enterprises. In the upstream segment, state-owned Oil
and Natural Gas Corporation (ONGC) is the largest player and accounted for roughly three-fourths of the
country's oil output in 2009-2010.
ONGC also holds overseas E&P interests through its subsidiary, ONGC Videsh Ltd. (OVL). The key
business of OVL is to prospect for oil and gas acreages abroad including acquisition of oil and gas fields,
exploration, development, production, transportation and export of oil and gas. OVL has made major
investments in Vietnam, Russia, Brazil, Venezuela and Sudan, and is currently engaged in
exploration/production in Libya, Egypt, Syria, Nigeria, Congo, Colombia, Cuba, Iraq, Iran, Qatar,
Kazakhstan and Myanmar. OVLs international oil and gas operations produced 9.45 MMT of O+OEG in
2010-11.
Oil India Limited (OIL), second largest national oil and gas company in India, has presence mainly in North
East, East Coast and Rajasthan in India. It also has international presence from acquisition of E&P assets
and holds interest in seventeen blocks, spread across seven countries, namely Libya, Egypt, Iran, Gabon,
Nigeria, Venezuela, Sudan, Timor Leste, and Yemen. It has domestic acreage of 127,260 sq. km and
International acreage of 38,605 sq. km. It operates 40 blocks and has significant participating interests in 21
non-operating blocks.
Post liberalization, the upstream sector has witnessed a number of new foreign and domestic entrants, such
as, Reliance, Cairn, BG, Niko, HOEC, Hardy Oil, ENI, Santos, etc. Many of the companies entered Indian
E&P sector after introduction of NELP in India which provides level playing field to the upstream companies.
Recently, RIL has made an historic alliance with BP in the E&P, gas marketing and distribution sector. This
is the biggest FDI investment in Indian oil and gas sector. Also, Vedanta Resources Plc acquired
controlling stake in Cairn India, GoI consent for the deal is underway.
In the midstream refining segment, over 63 per cent of refining capacity is held by the state owned refining
companies, with the largest share of capacity (34 per cent) being held by IOCL. BPCL and HPCL together
hold 23.5 per cent share of the capacity, while ONGC holds 6.2 per cent of total refining capacity in India
(including MRPL, acquired by ONGC in 2002-2003).
The balance 36.4 per cent of refining capacity is held by private players Reliance and Essar. Reliance's
Jamnagar refineries have the worlds largest refining capacity at a single location in the world. Reliance is
the second largest refiner in the country with 31 per cent refining capacity in the India
Gas sector companies

While upstream gas production is dominated by ONGC, RIL, and OIL, transmission, distribution and
marketing of gas in India is currently dominated by GAIL India Limited (GAIL), GSPL and RIL. GAIL owns
and operates gas transmission and distribution infrastructure of over 8,500 km of pipelines with a capacity
to carry over 170 MMSCMD of natural gas across the country. The Company is also implementing 5 new
pipelines and in addition, augmenting capacity of two existing pipelines. This will lead to doubling of pipeline
length and transmission capacity in the next 3 to 4 years. GAIL accounts for 75% of Indias natural gas
transmission. In addition, GAIL has 7 LPG plants in the Country and 2,038 KM of LPG transmission pipeline
network with a capacity to transport 3.8 MMTPA of LPG. It has produced over 1,068 TMT of LPG in 201011. GAIL also owns and operates a gas based petrochemical plant at Pata (UP) with a capacity to produce
410,000 TPA Polyethylene (HDPE & LLDPE), which is further being expanded to produce 900,000 TPA of
polymers.. In addition, GAIL is implementing a petrochemical project in Assam to produce 280,000 TPA of
polymers through its subsidiary Brahmaputra Cracker & Polymer Ltd. (BCPL). GAIL is also a co-promoter in
ONGC Petro-additions Limited (OPaL) being set up at Dahej which is implementing a petrochemical project
to produce 1.4 MMTPA of polymers.
GAIL has implemented city gas distribution projects in major Indian cities through its 8 JV companies to
supply gas to domestic and transport sector. The company has also floated a wholly owned subsidiary
GAIL Gas Limited for the smooth implementation of city gas distribution projects.
Petronet LNG Limited (PLL) is promoted by ONGC, GAIL, IOCL and BPCL to import LNG and to set up an
LNG re-gasification plant at Dahej in Gujarat State. Petronet LNG has signed a long term contract for
supply of 7.5 MMTPA of LNG with RasGas, Qatar. In August 2009, Petronet LNG signed a 20 year contract
with ExxonMobil to bring 1.5 mmtpa of LNG for its upcoming terminal in Kochi. PLL also sources spot
cargoes from the international market and has expanded its Dahej terminal to 10 Mmtpa.
In February 2011, RIL and BP announced a transformational partnership in India, According to this, BP has
acquired 30% stake in 23 Oil and Gas production sharing contracts that Reliance operates in India,
including the producing KG-D6 block, and also incorporated a 50:50 joint venture called India Gas Solutions
Pvt. Ltd in November this year. This JV Company will focus on global sourcing and marketing of natural gas
in India and it will also develop infrastructure to accelerate transportation and marketing of natural gas in
India. This partnership will combine BPs world class deep water exploration and development capabilities
with Reliances project management and operations expertise and would help RIL to ramp up the falling
production from KG-D6.
Other main players in Indian gas sector are Shell Hazira LNG, Gujarat Gas, Indraprastha Gas Limited,
Mahanagar Gas Limited, GSPL, Adani Gas etc.
Policy and regulatory overview

Foreign Direct Investment (FDI) guidelines
In order to promote investments in the Oil and Gas sector, Government of India has approved Foreign
Petroleum Industry Structure in India

Upstream
(Exploration &
Production)
Industry Bodies/
Regulatory Bodies/
Others
Downstream & EPC
ONGC
IOCL
GAIL
CPCL, BRPL
ONGC Videsh Ltd
HPCL
Oil India Ltd.
RIL, Essar Oil,

Nagarjuna Oil
Company Ltd.
Engineers India Ltd.

Prize Petroleum
BPCL
Bharat Petro Resources
KRL, NRL, BORL
RIL, BP, Cairn, Essar Oil
MRPL (ONGC
Subsidiary)
Other companies:
BHP Billiton, Jubilant
Energy, HOEC, BG Niko,
Videocon, etc.
Petroleum & Natural Gas

Regulatory Board (PNGRB)
Petroleum Planning &
Analysis Cell (PPAC)
Guru Gobind Singh

Refinery
GSPC
Directorate General of
Hydrocarbons (DGH)
CGD Companies:
IGL, MGL, Avantika
Gas, BGL, MNGL,
TNGCL, Green Gas,
Adani Gas etc.
Centre for High Technology

(CHT)
Petroleum Conservation
Research Association
(PCRA)
Oil Industry Safety Directorate
(OISD)
Petronet LNG
Oil Industry Development Board
Shell India
GSPL
Direct Investment (FDI) and equity participation for different activities within the sector as follows:
FDI Cap allowed
Sector
Approval route
Permissible subject to
100%
Petroleum product
marketing
Automatic
Existing sectoral policy and

regulatory framework in the
oil marketing sector
100%
Exploration activities in oil

& gas
Automatic
Under the policy of the

Government on
foreign/private participation
in exploration and
production
100%
Petroleum product
Pipelines
Automatic
Under the Government

Policy and regulations
thereof
100%
Natural gas/LNG pipelines
With prior Government

approval
100%
All activities other than

refining, and including
market study and
formulation;
investment/financing;
setting up infrastructure
for marketing in the
petroleum and natural gas
sector
Automatic
Sectoral regulations issued

by the Ministry of Petroleum
& Natural Gas; and in case
of actual trading and
marketing of petroleum
products, divestment of
26% equity in favor of the
Indian partner/public within
5 years
49%
Refining sector in the case

of Public sector
Undertakings
Through Foreign
Investment Promotion
Board (FIPB)
Sectoral Policy
100%
Refining sector in the case

of Private companies
Automatic
Source: Ministry of Finance, Government of India
Other policy initiatives taken by the Government of India to facilitate the inflow of foreign capital and to
encourage entrepreneurs to invest in the country include:
Rupee convertibility on the current account
Deregulation and de-licensing of various petroleum products in the country
Gradual relaxation of controls on pricing and distribution
Freedom to form JV Companies for the development of infrastructure and for marketing and refining
activities.
Directorate General of Hydrocarbons (DGH)

DGH was set up in 1993 with the objective of promoting and managing India's petroleum and natural gas
resources. The organization is responsible for:
Opening up of new/unexplored or poorly explored areas for future exploration
Identification of blocks for offer under NELP and CBM rounds
Preparation of all data packages and basin dockets for blocks
Review of reservoir performance of major fields
Contract management of various exploration blocks and discovered fields awarded to NOCs, private
and JV Companies under production sharing contracts (currently 149 contracts).
Petroleum and Natural Gas Regulatory Board (PNGRB)

The PNGRB Act 2006 provides for the establishment of a regulatory Board to regulate the activities of
companies related to refining, processing, storage, transportation, distribution, marketing and sale of
petroleum, petroleum products and natural gas.
The Act, in order to protect consumers' interest, empowers the Board, inter alia, to grant registration to
companies desirous of marketing natural gas and establishing and operating LNG terminals and storage
facilities for natural gas in the country. The Board has also been empowered to authorize companies to lay,
build, operate or expand natural gas pipelines on both open access and firm contract basis. Companies
desirous of laying, building, operating or expanding city gas distribution network will also have to take
requisite authorization from the Board.
The Board has been mandated to regulate the refining, processing, storage, transportation, distribution,
marketing and sale of petroleum, petroleum products and natural gas excluding production of crude oil and
natural gas so as and to ensure uninterrupted and adequate supply of petroleum, petroleum products and
natural gas in all parts of the country and to promote competitive market.
Main objectives of the Board are to:
Promote competition among entities
Avoid unprofitable investments
Maintain or increase supplies
Secure equitable distribution and
Ensure adequate availability of petroleum, petroleum products and natural gas throughout the country.
Natural Gas Pipeline Policy

On December 20, 2006, the Government notified the policy for development of natural gas pipelines and
city or local natural gas distribution networks in India. The objective of the policy are to:
Promote investment from the public and private sectors in natural gas transmission and city or local
natural gas distribution networks,
Facilitate open access for all players to the pipeline network on a non-discriminatory basis,
Promote competition among entities thereby avoiding any abuse of the dominant position by any entity,
and
Secure consumer interests in terms of gas availability and reasonable tariff for natural gas transmission
pipelines and city or local natural gas distribution networks.
Major highlights of the natural gas pipeline and city gas distribution network policy include:
Authorization to entity laying gas pipeline will be given only if the design capacity of the proposed
pipeline capacity is at least 33 per cent more than the capacity requirements of the concerned entity
plus the firmed-up contracted capacity (termed as total capacity). The extra 33 percent capacity will be
available for use on common carrier basis by any third party on open access and non-discriminatory
basis at transportation rates laid down by the Board.
The Board has been empowered to decide on the period of exclusivity to lay, build, operate or expand a
city or local natural gas distribution network in accordance with its regulations.
Unbundling of transportation and gas marketing or city gas distribution network operations.
An Affiliate Code of Conduct between the authorized entity and related entities or between the gas
pipeline activity and other activities of the authorized entity, as formulated by the Board under the
regulations will have to be followed.
The transportation tariffs of the common or contract carrier transmission pipe-lines or city gas
distribution network as also the manner of determining such tariffs will be laid down by the Board as per
the provisions under the Act and the regulations.
Gas Transportation Tariff
The Board regulates the transportation tariffs for common carriers, contract carriers or city/local gas
distribution networks. The Board while determining such tariffs would be guided, inter alia, by the
following:
Factors which may encourage competition, efficiency, economic use of resources, good performance
and optimum investments;
Safeguarding the consumer interest and at the same time allow for reasonable recovery of cost of
transportation;
Principles rewarding efficiency in performance;
Requisite infrastructure compressors, pumps, metering units, storage, etc. connected to the common
carriers or contract carriers;
Benchmarking against a reference tariff calculated based on cost of service, internal rate of return, net
present value or alternate mode of transport;
Policy of the Central Government applicable to the common carrier, contract carrier, and city/local gas
distribution networks.
Gas utilization policy

In view of scarcity of natural gas in the country, priority for the commercial utilization of domestic gas was
decided by Government of India, to make its most optimal use. The priority for utilization of gas produced
from APM fields i.e. gas produced by NOCs- ONGC and Oil India, for the fields awarded on nomination
basis prior to the PSC regime and for the natural gas produced by NELP contractors including RIL's KG D6
field was decided by GoI. The guidelines for the gas sell from NELP fields were issued by Empowered
Group of Ministers (EGoM) in May 2008. APM gas is mainly allocated to existing power and fertilizer plants.
NELP Contractors have the freedom to sell its entitlement of natural gas according to the marketing
priorities determined by the Government.
The order of priority has been laid down to give first priority to the existing plants to ensure utilisation of
capacities already created and to obtain faster monetization of natural gas. The second preference is given
to substitute liquid fuels in energy-intensive industries and the third preference to plants in easing
bottlenecks and expansion.
The order of priority is as below:
Order of priority for customers with existing units:
Fertilizer plants
LPG and petrochemical plants
Power plants
CGD (PNG + CNG) networks
Refineries
Other industries (like steel, ceramic)
The guidelines further elaborates that once the gas demand from existing units has been satisfied, the gas
should be utilized in the order prescribed for green-field projects.
Order of priority for green-field projects:
Fertilizer plants
Petrochemical plants
CGD (PNG + CNG) networks
Refineries
Power plants
This priority list does not imply 'quota', and thus the customer next in order becomes naturally eligible for
consideration, once the customer in the priority list is not in position to buy the gas. The customers
connected to the existing pipeline-network can be considered for this priority list and pricing remains unaffected in the priority. The policy-guidelines are to be reviewed every five-years in view of demand-supply
position of gas.
Petroleum, Chemical Petrochemical Investment Region (PCPIR)

Indias petrochemical sector offers significant opportunities for players as the country has a major
unexploited market with immense growth potential. India's current per capita consumption of polyester is
approximately 1.4 kg, whereas China's and global per capita consumption is five times and three times
higher respectively.The government of India is keen to develop the petrochemical sector by providing
facilities and level-playing field. To this end, it has put in place a national policy on petrochemicals and has
initiated steps to create mega integrated complexes called petroleum, chemicals and petrochemicals
investment regions (PCPIRs). Implementation of these plans requires huge investment, new infrastructure
and new R&D centers. The government has already identified the locations to set up giant PCPIRs, i.e.,
Haldia-Nayachar (West Bengal), Dahej (Gujarat), Visakhapatnam (Andhra Pradesh), Mangalore
(Karnataka), Cuddalore-Nagapattinam (Tamil Nadu) and Paradip (Orissa). These PCPIRs will be set up in a
2,000 sq km area with an estimated investment of $280 billion. As 100% FDI is permissible in chemical
industry, this should provide a boost to the sector.
Domestic petrochemical sector will double its production capacity in the next four-five years, considering the
current trend in capacity addition. Also, through the PCPIR route, India is going to invest several billion
dollars to increase petrochemical production capacities, leading to improved trading of feedstock,
intermediates, and final products both inside and outside the country. It will also provide considerable
opportunities to players in the field of equipment designing, manufacturing, EPC, industrial automation,
project and programme management. Indias revenues from the chemicals & petrochemicals sector,
currently at $65 billion, could reach $200 billion by 2020, according to estimates made by the Indian
Chemical Council.
MNCs that have shown interest in participating in the development of PCPIRs in India are Total, Saudi
Aramco, Shell, ExxonMobil Chemicals, Borealis and Itochu Singapore.

Standalone petrochemical plants sometimes face feedstock supply risk which can be overcome by
integrating the plants with oil refineries, the main source of feedstock or setting up of these units in the
vicinity of natural gas pipelines or LNG terminals. India might become a petrochemical hub in the near
future by capitalizing on its refining capacity. Also, as per XI five year plan (2007-12), the projected surplus
quantity of naphtha at the end of 2011-12 would be around 7.23 million ton from the existing and new
refineries. They might be forced to sell naphtha at much lower prices in the international market. To avoid
this situation in future, refiners can add value to naphtha by utilizing it as feedstock for the production of
petrochemicals domestically.
The development of clusters of small & medium industrial units for processing industries in the vicinity of
integrated units will definitely align the upstream and downstream petrochemical companies due to better
availability of raw material. Clustering of processing units would be very helpful to reduce the cost of and
risks associated with transportation raw material.
The minimum processing area for the PCPIR will be about 40% of the total delineated area, i.e., around 100
Sq Kms. The PCPIR may include one or more SEZs, industrial parks, free trade and warehousing zones,
export oriented units or growth centres, duly notified under the relevant central or state legislation or policy.
Gujarat PCPIR (GPCPIR): ONGC is keen to develop a PCPIR in the Gujarat state which will be located in
Dahej, Bharuch District. Estimated employment in GPCPIR is expected to be approximately 800,000 at fullfledged operation stage. ONGC Petro Additions Ltd (OPaL), a JV Company promoted by ONGC and GSPC
is the anchor unit for the PCPIR. OPaL is setting up 1.1 MMTPA multi-feed petrochemical cracker at an
estimated investment of Rs 13,000 crore. ONGC is also setting up C2/C3 Extraction Plant at Dahej at an
investment of Rs 3,400 crore. A petrochemical SEZ has also been planned in this PCPIR called Dahej SEZ
Limited, a joint venture company of ONGC and GIDC. All infrastructure for the Petrochemical Complex of
OPaL will be provided by Dahej SEZ.
West Bengal PCPIR (WBPCPIR): IOCL was identified as anchor tenant in West Bengal PCPIR while
another anchor tenant would be CALS Refinery (2 x 5 MMTPA grassroot refinery) in Nayachar . PCRCPL is
the proposed developer of PCPIR project is a JV company incorporated between West Bengal Industrial
Development Corporation (WBIDC) and New Kolkata International Development (NKID). The targeted
investment in the PCPIR is expected to be Rs. 93,180 crore (US$18.6 bn), of which Rs. 48,180 crore
(US$ 9.6 bn) is committed. It is also expected that the WBPCPIR would be able to generate employment to
about 1 million people directly and indirectly.
Andhra Pradesh PCPIR (Visakhapatnam Kakinada Corridor): HPCL and ONGC are the anchor
investors in this project. HPCL would set up an integrated refinery-cum-petrochemical complex with
estimated investment of about US$8 bn. The planned refinery is proposed with a capacity of 15 MMtpa and
to produce 1 MMTPA of petrochemicals like olefins and aromatics. ONGC received approval from MoPNG
to develop refinery of 15 MMtpa at Kakinada and signed MoU with GoAP, IL&FS, and KSPL to promote
Kakinada SEZ. It is expected that ONGC would invest Rs. 26,000 crores (US$ 6.5 billion) for 15 MMtpa
refinery and Rs. 5,000 crores for Polypropylene unit (450,000 MTPA). GMR would also be one of the major
investors in this project.
Paradip (Orissa) PCPIR: The PCPIR will come up in Jagatsinghpur and Kendrapara districts of Orissa with
a proposed investment of Rs 2,77,734 crore. IOCL will be the anchor tenant for the project and its upcoming
refinery will also include in the PCPIR. Deepak Fertilizers will also set up a greenfield ammonium nitrate
plant in the PCPIR. Tata Steel and the South Africa-based Sasol have expressed interest in setting up a
coal-to-liquid (CTL) project under the PCPIR. The project is likely to come up by 2018 and will produce
80,000 bpd of liquid fuel from coal.
Tamil Nadu PCPIR: This project would be set up at Cuddalore and Nagapattinam in Tamil Nadu state. The
estimated investment in this PCPIR would be to the tune of Rs 99,750 crore
Mangalore PCPIR: This project was proposed by Karnataka government in 2006 with total investment in
Mangalore PCPIR expected to be around Rs 2,31,000 crore. The centre has cleared the proposal of
Mangalore PCPIR with an investment of Rs 30,000 crore. Mangalore Refineries and Petrochemicals Ltd
would be the major investor in this project.
PCPIR is the flagship scheme of the Ministry of Chemicals and Fertilisers, with approved investments worth
Rs 1,54,512 crore in Gujarat, Andhra Pradesh, West Bengal, Orissa and Tamil Nadu till June 2011.
Government has already approved AP PCPIR, WB PCPIR, GPCPIR, TN PCPIR and Orissa PCPIR and
expected that it would also approve Karnataka PCPIR at Mangalore.
Coal gasification in India
Indias experience with gasification of liquid feedstock dates back to the sixties, when it was utilized for
production of hydrogen from naphtha fuel oil for fertilizer plants (ammonia and urea).To date at least
eleven plants have been installed in the country. The first gasification plant was started in 1962. Today
some of the older plants have been replaced by modern steam reforming plants. Two of these plants
were based on GE technology; rest were based on Shell technology. As per US DOE list of gasification
projects in India, out of such eleven projects only five gasification projects were in operations till 2009
which include Nangal ammonia plant of Fertiliser Corporation of India (FCI), Narmada ammonia plant of
Gujarat Narmada Valley Fertiliser Corporation Ltd. (GNVFC), Panipat and Bhatinda ammonia plants of
National Fertilisers Ltd. (NFL)- Feedstock changeover from fuel oil to R-LNG in progress for both plants,
and Neyveli syngas plant of Neyveli Lignite Corporation Ltd. (NLC).
In India, few companies have shown interest in the field of coal gasification including surface coal
gasification and underground coal gasification. For surface gasification, lot of discussion is going on
among various stakeholders for the improvement in technology to handle high ash Indian coal.
Technology licensors are rushing and showcasing the technological features to players who foresee
coal gasification as the next big thing to happen in near future.
CTL projects in India

The ministry of coal has awarded two coal blocks to Jindal Steel and Power Company Ltd (JSPL) and
Strategic Energy Technology Systems Pvt. Ltd. (SETSPL: 50:50 joint venture between Tata Group and
Sasol Synfuel International of South Africa) for setting up countrys first two coal-to-liquid-petroleum
projects. Both the projects are estimated to cost ~$10bn each with an estimated annual production of four
million tonnes of petroleum products, premium quality diesel and cracker grade naphtha, based on the daily
production of 80,000 barrels of crude oil. JSPL CTL project will be based in Angul, Orissa.
JSPL has signed an agreement with Lurgi Sasol Technology Company, South Africa, for providing
technology for coal gasification. SETSPL will use Sasols expertise for the production of liquid fuels. The
process involves the gasification of coal to produce synthetic gas, which is then converted to crude through
different technologies. Given the quality of Indian coal, crude from this process is estimated to cost ~ $5560 a barrel. The process also involves the washing of coal, and the waste thus produced will be used to
produce power. Expected generation capacity of JSPL plant is 1,350MW of power. JSPL mentioned that
diesel produced from coal is expected to be low in sulphur, high on cetane number and would emit less HC,
CO, NOx, particulates compared to conventional diesel.
Surface coal gasification projects in India
JSPL is also setting up few more projects using surface coal gasification technology, details are as below:
Coal gasification unit for its upcoming steel plant in Angul using the Sasol-Lurgi fixed bed dry bottom
(FBDB) coal gasification technology to produce 6 million tons of steel and 810 MW of captive power
plant. The Coal gasification route to manufacture direct reduced iron (DRI) is being used for the first
time in the world. The plant capacity is 225,000 Nm3/hr which will be enhanced to 350,000 NM3/hr in
future.
JSPL has commissioned coal gasification project at Barbil, Orissa using two Circulating Fluidised Bed
(CFB) gasifiers based on Envirotherm technology for production of producer gas for pellet plant. Details
of this project are as follows:
Feedstock: Indian hard coal, 27% ash, 8% moisture, 23t/h per gasifier
Producer gas production: 49,000 Nm3/hr per gasifier
Status: Gas production successfully started in 4th Quarter of 2010, optimization is being carried out
Shriram EPC has technology tie-up with Envirotherm GmbH of Germany for gasifier unit. In this
arrangement, Shriram EPC has provided engineering services as well as the gasifier unit whereas
Envirotherm provided basic engineering for Gasifier Island, commissioning assistance, and process
performance guarantees for this project.
Shriram EPC has technology tie-up with Envirotherm GmbH of Germany for gasifier unit provided the
engineering services as well as the gasifier unit whereas Envirotherm provided basic engineering for
Gasifier Island, commissioning assistance, and process performance guarantees for this project.
Shriram EPC Ltd. is setting up a coal gasification plant for Syngas production to produce synthetic
ammonia at Dhamra, Orissa, India. Details of the projects are as follows:
Feedstock: High ash domestic hard coal (132 t/h, 3,200 t/d) to produce 150.000 Nm/h of raw gas
Features: Two BGL gasifiers, one relocated from Germany, second gasifier built identically to
relocated one
Start-up (expected): 4th Quarter of 2013
Status: Basic engineering completed in the 4th quarter of 2010. Also, existing BGL Gasifier has been
transported to India in September 2010
RCF is exploring potential of proposed surface coal gasification project at Talcher to evaluate its
potential for the fertilizer industry jointly with GAIL and CIL. It has proposed to set up a brownfield
fertilizer complex based on coal gasification to produce ammonia, urea, nitric acid and ammonium
nitrate with associated facilities at Talcher.
RIL is setting up a petcoke gasification plant at Jamnagar refinery and petrochemical complex with the
objective of making its both the refineries bottomless. RIL has 18,000 TPD petcoke available coming
from its both the refineries. The main business drivers for the gasification project are as follows:
Transform Jamnagar refinery into bottomless refinery
Exploit price delta between natural gas and petcoke/coal by making syngas
Supplement petcoke with coal to meet internal energy demands
Insulate the Jamnagar refinery from future energy cost escalation
Exploit mega petcoke production capacity by putting mega scale projects
Pursue reduction in GHG through possible CO2 capture and sequestration or effective utilization
RILs gasification project status: Product slate determination has already been done by RIL and the
identified products are H2, power, SNG and some downstream chemicals.
Underground coal gasification projects in India

A working group on UCG was constituted with the approval of the Principal Scientific Adviser to the
Government of India, on 12th February 2007. The prime objective of that group was to prepare a road map
to develop the UCG technology in the country for various applications (such as power generation,
manufacture of pesticides & chemicals, etc.). The working group assessed the on-going efforts and future
plans of different organizations, both in the public as well as the private sector, on UCG technology
including ONGC, DGH, Essar Oils Ltd., ISM, RIL, Singareni Collieries Company Ltd., BHEL, CIL, Neyveli
Lignite Corp. Ltd., Mineral exploration Corp. Ltd., CIMFR and CMPDIL. But, not much progress happened
based on the future plans suggested by Working Group.
Major work in the field of UCG was done by ONGC; details of the same are as follows:
Company has signed an agreement with Skochinsky Institute of Mining (SIM), Moscow, on the 29th of
November, 2004. According to the agreement, SIM was to provide assistance in selection of suitable
sites for UCG, identify and assist in collection of required data and thereafter undertake the actual UCG
operations including well design, surface handling systems and techno-economic analysis.
ONGC signed MoUs with Gujarat Mineral Development Corporation Ltd (GMDC), Neyveli Lignite
Corporation Ltd. (NLC), Gujarat Industries Power Company Ltd (GIPCL), Coal India Ltd. (CIL) and
Singareni Collieries Company Ltd (SCCL) for cooperation in the area of UCG.
Based on the available data, a total of 11 sites were suggested to SIM for detailed studies. Out of those
11 sites, five were found not suitable either because of roof and floor characteristics or aquifer problem.
Out of the remaining six, five sites required additional data and further analysis. Ultimately, as a first
step, one site near Surat, Gujarat, belonging to GIPCL, was selected for UCG trials.
Vastan site was found most suitable for UCG pilot as it does not have aquifer in the vicinity of gasifier
and as per the study conducted by ISM and CIMFR, this site was found with minimal impact of surface
subsidence because of strong overburden above the seam. The site has been characterised in detail
through geological, geophysical, geo-mechanical and hydro-geological studies. Also detailed
engineering design of the pilot has been completed.
ONGC carried out for the first time a high resolution seismic survey to map the shallow lignite seams for
the pilot at Vastan in Gujarat. The company could remap the pilot with the help of shallow seismic
survey. ONGC has obtained environmental clearance for Vastan project. GIPCL, the companys partner
in this project had applied to the Ministry of Coal (MoC) for the award of mining lease for Vastan block in
December 2008, but its allocation is still awaited.
GAIL is exploring the possibility of prospecting insitu coal/ lignite gasification at Barmer, in Rajasthan
using UCG technology. Future plan of action is to conduct pre-feasibility studies involving site selection
and characterization for UCG pilot plant establishment with M/s Uzbek Coal. For technology absorption,
adaptation and innovation a prefeasibility study and pilot plant for underground coal/ lignite gasification
at Barmer, Rajasthan is also being planned by company with M/s Uzbek Coal.
Few other players who have shown interest in UCG in India are:
Abhijeet Group has tied-up with a Canadian company named Ergo Exergy for underground coal
gasification technology. Ergo Exergy has undertaken several underground coal gasification projects
across the world under different geological conditions with different regulatory environments.
Recently, Essar Oil Ltd. has signed a pact with Clean Global Energy Ltd. to diversify into UCG. The
company has entered into a binding heads of agreement with Essar, to provide its UCG technology and
expertise, under a Technology Licence Agreement (TLA). Under the TLA, Clean Global Energy will
hand over operations of the plant to Essar Oil within three years of commissioning. The TLA is triggered
if Essar is granted a UCG block by Coal India Ltd. or its subsidiary company CMPDIL. Final bidding
approvals are yet to be completed for this agreement.
Similarly in 2010, Clean Global Energy has proposed a MOU with Nagarjuna Fertilisers and Chemicals
Ltd, after receiving an invitation from the company to work with it to develop UCG projects in India. The
MOU formalizes a relationship with Nagarjuna to procure UCG blocks to develop, construct,
commission and operate a UCG plant to produce Syngas as feedstock for power generation and other
uses. CGE's primary role would be to deliver and operate a pilot and subsequent commercial UCG
Plant.
Under the MOU, CGE would work with Nagarjuna, which includes a licensing agreement if one or more
of the UCG blocks are granted to Nagarjuna or its nominees, to submit a bid to Rajasthan State
Petroleum Corporation Ltd for off-take of UCG Syngas.
Adani Group has signed a Memorandum of Understanding (MoU) with an Australia-based firm Carbon
Energy to form a joint venture to pursue Underground Coal Gasification (UCG) projects in India. The
two firms have signed a MoU for a strategic joint venture, where they shall jointly be bidding in tendering
process for UGC projects likely to be announced on tenements of Coal India Limited. The MoU is for a
period of 18 months during which it is anticipated that Adani group and Carbon Energy will jointly submit
bids for establishing UCG project on the Coal India tenements in India.
Rajasthan State Petroleum Corporation Limited (RSPCL) a subsidiary of Rajasthan State Mines &
Minerals Limited (RSMML) has recently invited the expression of interest for strategic tie-up for
underground coal gasification and city gas distribution network. RSMML at present is operating two
lignite mines one at Giral in district Barmer and another at Kasnau-Matasukh in district Nagaur.
RSPCL has received expression of interests (EoI) from 13 companies for underground coal gasification
(UCG) programs in the lignite deposits of Barmer-Sanchore and Bikaner-Nagpur basins in western
Rajasthan. RSPCL will form a joint venture with two-three selected bidders and seek lignite blocks from
the Government for undertaking UCG projects in the 1,100 sq km area in two basins. Among the
prominent bidders are Adani Power, Tata Power, Essar, Shiv-Vani, Abhijeet group, JSW Energy and
Simon India Ltd (a wholly-owned project management subsidiary of Zuari Industries of the K K Birla
group).
Shiv Vani signed MoU with Linc Energy for Indian UCG/GTL projects in June 2007.
Allocation of coal blocks for UCG and coal-to-liquid projects
Central Mine Planning and Design Institute (CMPDI) along with GSI, SCCL, and NLC have developed
the preliminary criteria for selection of suitable coal reserves for UCG application in line with the
decision taken by MoC. CMPDI has also been entrusted with identification of suitable coal / lignite
blocks in consultation with GSI, SCCL and NLC, which can be offered for public/private participation for
development of UCG.
CMPDI has identified seven blocks (5 lignite and 2 coal) for the development of UCG. Two coal blocks
within CIL command area have also been identified for development of UCG so far.
The following initiatives taken by CMPDI for UCG development:
CIL ONGC collaborative project in Kasta UCG block:
Consequent to signing of MoU between CIL & ONGC in Nov.2006 for taking up pilot scale studies for
UCG, CMPDI prepared data packages for 5 prospective UCG sites. Out of the five sites, one Kasta
block in Raniganj coalfield was identified by SIM for generation of additional data for examining
possibility of taking up pilot scale UCG project. The assessment of data has been undertaken.
EoI for commercial development: EoI for commercial development of UCG in 2 blocks (Kaitha blocksRamgarh Coalfield of CCL and Thesgora C block in Pench-Kanhan Coalfield of WCL) within CIL
command area has been floated on 30/11/09.
Aditya Birla Group, Essar Oil, Adani Enterprises and Lanco Infratech are among the few companies
responded to the EoI. According to the Central Mine Planning and Design Institute Ltd (CMPDIL), a
subsidiary of Coal India and the nodal agency conducting the bidding process for the project, eight
companies have put in bids. Most of the Indian players have bid with foreign partners. Adani Enterprises
tied up with Australias Carbon Energy, Essar Oil has partnered with Clean Global Energy of Australian.
Other companies which have submitted bids are Abhijeet Group, Aryan Coal, Sainik Mining and
Australia-based Global UCG.
Allocation for Coal to liquid project: The ministry of coal has awarded two coal blocks to JSPL and
SETSPL for setting up countrys first two coal-to-liquid-petroleum projects. The allotted blocks include
Ramchandi block to JSPL with estimated reserves of 1500 million tons and the north Arkhapal, Talcher
block to SETSPL.
To keep the pace of Indias economic growth, India needs to pursue the coal gasification projects for its
energy security and exploitation of its coal resources in environment friendly manner, and produce
fertilisers, chemicals, power and other applications. The viability of coal gasification projects in India will
be entirely governed by the following factors:
Proper characterisation of the coal available for gasification
Optimum mix of downstream products using syngas produced from coal
Need for selection of proper gasification technology with regard to coal feedstock and proper R&D
infrastructure
Need for transparent governmental pricing policies and regulatory framework
Proper outlook on risk perception by financial institutions (reduce financing costs)
Africa hydrocarbon sector
Africa is the world's second-largest and second most-populous continent, after Asia. However it has gained
importance worldwide recently due to numerous hydrocarbon discoveries, especially in the Gulf of Guinea,
few discoveries in the frontier countries of Sierra Leone, Liberia, Cte dIvoire, Ghana, Togo and Benin
during their comparatively limited exploration histories. This combined with low domestic consumption has
made Africa an ideal destination as a hydrocarbon source.
In 2009, Africa's total energy consumption was ~501 million tons of oil equivalent (Mmtoe). Although this
has grown more than 190 per cent from ~173 Mmtoe in 1973, its share of the world's total energy
consumption increased only marginally over the same period, from 3.7 per cent to 6.0 per cent.
World Energy Consumption (Mtoe)

Latin America
1973
Asia
4% 4% 4%
China
6%
2%
8%
12%
Non OECD
Europe
Former Soviet
Union
Middle East
OECD
60%
1%
Africa
World Marine
Bunkers
2009
Asia
4%
6%
Latin America
China
5%
12%
Non OECD Europe

and Eurasia
17%
Middle East
OECD
43%
8%
5%
Africa
Bunkers
Source: International Energy Agency Key World Energy Statistics 2011
As per the IEA's Key World Energy Statistics 2011, Africa's total primary energy supply (Tpes) per unit of
GDP for year 2009 is as high as 0.26, lower than only the Mideast (0.41) and the non-OECD and Eurasia
region (0.37), but higher than the world average 0.19. For the same year, the continent's total primary
energy supply (TPES) stood at approximately 673 Mmtoe, which is 5.53 per cent of the world's total.
World Primary Energy Supply (Mtoe)
Latin America
1973
Asia
3% 3% 4%
China
6%
7%
1%
14%
Non OECD
Europe
Former Soviet
Union
Middle East
OECD
61%
1%
Africa
World Marine
Bunkers
2009
Latin America
Asia
3%
5%
China
4%
12%
Non OECD
Europe
Middle East
19%
OECD
43%
Africa
9%
5%
Bunkers
Source: International Energy Agency Key World Energy Statistics 2011
Oil
Oil reserves
As of January 2011, Africa held proven oil reserves of approximately 132.1 billion barrels, representing
approximately 9.5 per cent of the total world oil reserves. Africa's contribution to world reserves has
increased significantly from ~7.0 per cent in 1995 to approximately 9.5 per cent in 2010, fuelled primarily by
the growing reserves in Libya, Nigeria and Angola. This trend is likely to continue in view of newer
discoveries announced in Ghana, Egypt, Algeria, Libya, Tunisia, Mozambique, and Uganda in 2010.
World Proven Oil Reserves (2010)
Europe & Eurasia
10%
Latin America
North America
17%
Asia Pacific
55%
5%
10%
Africa
Middle East
3%
Currently, six countries Libya, Nigeria, Algeria, Angola, Sudan, and Egypt, together hold approximately 91
per cent of total oil reserves in Africa as per BP Statistical Review 2011.
Africa Oil Reserves (1995-2010)
140
120
Billion Barrels
100
80
60
40
20
0
1995
Algeria
2000
Angola
Libya
2005
Nigeria
Sudan
2010
Egypt
Oil production
Africa stands fourth amongst all regions with its crude oil production of approximately 10.1 million bopd or
12.2 per cent of world production in 2010, after the Middle East, Americas and Europe (including Russia).
The share has increased from 10.4 per cent in 1998 to 12.2 per cent in 2010 with Nigeria, Algeria, Libya
and Angola being the primary contributors to production growth.
World Oil Production (2010)
9%
Latin America
30%
North America
17%
Asia Pacific
Africa
10%
Europe & Eurasia

22%
Middle East
12%
In 2010, Nigeria, Algeria, Libya, Angola, Egypt and Sudan accounted for approximately 89 per cent of
Africa's total oil production
Africa Oil Production (1995-2010)
10000
9000
Thousand bopd
8000
7000
6000
5000
4000
3000
2000
1000
0
1995
Libya
Nigeria
2000
Algeria
2005
Angola
Sudan
2010
Egypt
Oil consumption
In 2010, Africa's total consumption was 3,291 thousand bopd or 3.9 per cent of the world's total
consumption. The continent's share of world consumption has remained more-or-less consistent at the 33.9 per cent level for over a decade.
World Oil Consumption (2010)
9%
7%
Latin America
North America
26%
23%
Asia Pacific
Africa
Europe & Eurasia
4%
Middle East
31%
Out of this total, six countries Egypt, South Africa, Algeria, Libya, Morocco and Nigeria, together account for
approximately 71 per cent of Africa's total oil consumption.
Africa Oil Consumption (1995-2010)

3500
Thousand bopd
3000
2500
2000
1500
1000
500
0
1995
2000
Algeria
Egypt
2005
South Africa
2010
Others
Exploration & Licensing rounds in Africa

Recent and planned licensing round in Africa
Country
Round
Launch
Date
Blocks on
Offer
Sq Km on
Offer
Blocks
Awarded
Closing
Date
Algeria
3rd Alnaft
round
September
2010
10 areas
64,329
March 2011
Angola
2010*
May 2010
11
62,028
11
2010
Cameroon
2011
April 2011**
Egypt
GPC
October
2010
344
February
2011
Egypt
Ganope
November
2010
60,500
January
2011
Gabon
1oth
June 2010
2 zones
(>40
blocks)
118,000
Cancelled#
Liberia
III
August 2009
15,162
January
2010##
Mozambique
IV onshore
November
2009
7 areas
146,030
1 area
April 2010
Sao Tome &

Principe Eez
March 2010
17
127,900
November
2010
Somaliland
February
2009
95,845
December
2010
Tanzania
4th deep
offshore
April 2011**
13
W. Sahara
II
February
2008
192,569
March 2009
Zambia
II
December
2009
23
130,691
June 2010
*Unofficial round; ** Anticipated start date; # Govt has entered into direct negotiations with interested
parties; ## Awards process frozen by Liberian Cabinet
Source: Deloitte PSG
Announced Discoveries
Country
2007
2008
2009
2010
Egypt
16
31
28
41
Algeria
20
17
16
29#
Libya
16
12
11
Tunisia
10
Angola
6#
Mozambique
Gabon
Ghana
Morocco
Nigeria
Tanzania
Cameroon
Country
2007
2008
2009
2010
Mauritania
Sierra Leone
Uganada
NG/ST JDZ
Republic of Congo
Equatorial Guinea
Sudan
South Africa
# as announced by Sonatrach; 9 discoveries in the press

Major Farm-in activities in Africa during 2010

S. No.
Block/Region
Country
Companies
Involved
Period
Remada Sud
Tunisia
Storm-Madalena
Ventures
March 2010
Kerkouane
Tunisia
Gulfsands-Audax
May 2010
Hammamet
Tunisia
Rak Gas-Storm
May 2010
LB-11, LB-12, LB-14
Liberia
Chevron-Oranto
September 2010
CI-100
Cote dIvoire
Total-Yams
Petroleum
October 2010
DE7 & Nziembou
Gabon
Total-Perenco
November 2010
Mutamba-Iroru
Gabon
Total-Vaalco
November 2010
Blocks 1 & 3A
Uganda
Tullow-Heritage
July 2010
Blocks 1,3 &4
Tanzania
BG group-Ophir
May 2010
10
L5, L7, L11A, L11B & L12
Kenya
Cove EnergyDepco
July 2010
11
10BA
Kenya
Tullow-Centric
August 2010
12
Ogaden 3, 4, 11, 12, 15, 16,

17 & 20
Ethiopia
Southwest EPetronas
October 2010
13
East Ghazalet
Egypt
TransGlobe-Vegas
January 2010
14
Alam El Shawish
Egypt
Shell-GDF
January 2010
Suez/Vegas
15
Komombo 2
Egypt
Sea Dragon-Dana
Gas
January 2010
16
East Megawish
Egypt
Aegean-Thani
Emirates
April 2010
17
West Komombo
Egypt
Energean-
May 2010
S. No.
Block/Region
Country
Companies
Involved
Period
Groundstar
18
EL Manzala
Egypt
Dana PetroleumBG
July 2010
19
Bargou
Egypt
Jacka Re-Cooper
En
September 2010
20
Burg EL Arab
Egypt
East west
Petroleum-Kuwait
Energy
December 2010
21
Nugaal & Dharoor Valley
Somalia
Red Emperor-Africa
Oil Corporation
December 2010
In one of the major deals in the recent past has been Korea National Oil Corp. (KNOC) acquisition of Dana
Petroleum Ltd. in September 2010. The total transaction value of the deal was given at US$ 3.74 billion.
Refineries
The first refineries in Africa were set up in 1954 in Algiers, Algeria and Durban, South Africa. In 2010, there
were total 45 refineries in Africa with a total primary refining capacity of 3.29 million bopd or 3.60 per cent of
world refining capacity. With a utilization of ~74.5 per cent, this translated to a total refinery throughput of
approximately 2.45 million bopd in the same year. (Source: Eni/BP)
World Refining Capacity (2010)
8.61% 7.31%
Latin America
North America
22.82%
26.73%
Asia Pacific
Africa
Europe & Eurasia
Middle East
30.93%
3.60%
Northern African region, with exceptions of South Africa and Nigeria, plays a significant role in African oil
refining sector, mainly due to abundant availability of crude oil and proximity to the European market.
However some of these countries have a booming domestic demand as well. Two thirds of the continent's
refining capacity is concentrated in just five countries Algeria, Egypt, Libya,South Africa and Nigeria. A
number of oil refinery projects across the continent, especially the North Africa region, are planned with
assistance from either multilateral agencies or foreign partners, which are bound to increase the refining
capacity in the near future.
Africa Primary Refining Capacity (2010)
3500
Thousand bopd
3000
2500
2000
1500
1000
500
0
1995
Algeria
Egypt
2000
Libya
Nigeria
2005
2010
South Africa
Others Africa
Source: ENI World Oil and Gas Review 2011
Natural gas
Gas reserves
As of January 2011, Africa held proven gas reserves of approximately 14,727 Bcm, representing 7.9 per
cent of the world's total proven gas reserves, and R/P ratio of ~70 years.
World Natural Gas Reserves (2010)
4.0%
5.3%
Latin America
8.7%
North America
40.5%
7.9%
Asia Pacific
Africa
Europe & Eurasia
Middle East
33.7%
These reserves are currently concentrated in the four major gas bearing countries of Nigeria, Algeria,
Egypt, and Libya, which together hold 92 per cent of Africa's total gas reserves.
Africa Natural Gas Reserves (1995-2010)
16000
14000
12000
Bcm
10000
8000
6000
4000
2000
0
1995
Algeria
2000
Egypt
Libya
2005
Nigeria
Other Africa
2010
Gas production
Gas production has more than doubled over the last ten years, from 107.2 Bcm in 1998 to 209.0 Bcm in
2010. Currently, Africa contributes ~6.5 per cent of the world's total gas production.
World Gas Production (2010)
5.0%
14.4%
Latin America
North America
26.0%
Asia Pacific
Africa
32.6%
Europe & Eurasia

Middle East
15.4%
6.5%
Algeria, Egypt, Nigeria, and Libya are the largest natural gas producing countries in Africa, contributing up
to 91.5 per cent of the continent's total gas production. In 2010, Algeria was the largest gas producer in the
continent, contributing 80.4 Bcm or 2.5 per cent of the world's total gas production, most of which is
exported.
Africa Natural Gas Production (1995-2010)
250.0
200.0
Bcm
150.0
100.0
50.0
0.0
1995
Algeria
2000
Egypt
Libya
2005
Nigeria
2010
Other Africa
Gas consumption
Keeping in pace with the natural gas production, which has almost doubled during 1998-2010, gas
consumption has also started gaining momentum in recent years. Over the same period, it registered a
growth of about 112 per cent, from 49.5 Bcm in 1998 to 105.0 Bcm in 2010. Despite this growth, the total
consumption of African continent has been only 3.3 per cent of the world's total gas consumption, lowest
amongst all regions. In 2010, Egypt and Algeria accounted for ~70.5 per cent of total African consumption,
while other major consumers were Nigeria, Libya and Tunisia.
Africa exported approximately 113 Bcm gas to other countries in 2010, with Algeria, Nigeria and Egypt
contributing ~84 per cent of the total.
World Gas Consumption (2010)
4.7%
11.5%
Latin America
26.8%
North America
Asia Pacific
Africa
35.8%
Europe & Eurasia

17.9%
Middle East
3.3%
LNG capacity
Currently, Nine LNG liquefaction terminals are located across Africa in Algeria, Libya, Egypt, Equatorial
Guinea, and Nigeria. Algeria, Egypt, and Nigeria were the top three African LNG producers in 2009,
accounting for a combined 90 percent of the regions total LNG output. Approximately 18 additional LNG
liquefaction terminal projects are proposed or under construction in these countries. Some of the other
countries considering LNG liquefaction plants are Angola, Equatorial Guinea, Morocco, Namibia, and
Mauritania.
Some of the prominent liquefaction terminals include:
Nigeria LNG Limited, Bonny Island, Nigeria: Total six trains with a total capacity of ~21 mmtpa
Sonatrach plant, Skikda, Algeria (under repair to replace lost trains): Total capacity 7.68 mmtpa
Bethouia (Bettioua), Algeria: Total twelve trains with a capacity of 16.2 mmtpa
Mjarsa Al-Brega, Libya: Total four with a capacity of 3.2 mmtpa
ELNG, Idku, Egypt: Total 2 trains with a capacity of 7.2 mmtpa
Damietta LNG, Egypt: Total capacity of ~5.0 mmtpa
EG LNG, Malabo, Bioko Island, Equatorial Guinea: Capacity of 3.4 mmtpa
(Source: Energy.ca.gov)
There are no existing LNG regasification marine terminals on the African continent, although four are
proposed, one in Kenya, one in South Africa and two in the Canary Islands (Islas Canarias), an island
territory of Spain.
Algeria
Basic information
Population:
34,994,937 (July 2011)
Currency:
Algerian Dinar (DZD)
Exchange rates:
1 US$ = 72.44455 DZD (Quarterly Avg. July-September 2011)
GDP (PPP):
US$ 251.1 billion (2010 est.)
3.3per cent (2010 est.)
GDP-per capita:
US$ 7,300
Head of State:
H.E. Mr. Abdelaziz Bouteflika, President
Head of Government:
H.E. Mr. Abdelaziz Bouteflika, President
Overview
The Algerian economy is dominated by its oil and gas resources, which account to 98 per cent of the
countrys total exports. The hydrocarbon sector represents 45 per cent of total GDP and about two-thirds of
the budget revenues. The Algerian state has a predominant role in its economy, where the countrys
hydrocarbon company is state owned through its NOC, Sonatrach.
The countrys macroeconomic performance over the past decade has been significant due to relatively high
oil prices combined with prudent macroeconomic policies. It has also been able to accumulate large
external reserves and budget resources in an oil stabilization fund, which helped to shield the country from
the decline in international hydrocarbon prices in 2009.
Algeria is an important exporter of oil and natural gas and is a member of the Organization of the Petroleum
Exporting Countries (OPEC). In 2010, Algeria produced over 1,809 thousand barrels per day (bpd) of crude
oil equalling to 16.4 per cent of total African share and 2.0 per cent of worlds total oil production, and was
the third largest crude oil producer in Africa after Nigeria (2401.61 thousand bpd) and Angola (1851.02
thousand bpd). Hence, the countrys economy is heavily reliant on its hydrocarbons sector.
Algeria has the eighth-largest reserves of natural gas in the world and is the fourth-largest gas exporter. It
ranks 16th in oil reserves and has R/P ratio of 18.5 at current production levels. To add to its strong
hydrocarbon revenues, Algeria has a cushion of $150 billion in foreign currency reserves and a large
hydrocarbon stabilization fund.
In 2010, Algeria began a five-year, US$286 billion development program to update and improve the
country's infrastructure and create cross-employment opportunities. The program is aimed to boost the
countrys overall economy.
Algerian Oil and Gas Industry: A Snapshot

Organization
Sonatrach State-owned company for exploration, transport and

marketing of petroleum, natural gas and related products; Naftec
Operates and manages all refineries; Naftel Domestic product
distribution; Cogiz Produces natural gas by-products.
Sonatrach is NOC of Algeria.
Major Oil/Gas Ports
Arzew (Algerias largest crude oil export port), Skikda, Algiers, Annaba,
Oran, Bejaia, and Tunisian facility of La Skhirra.
Foreign Company Involvement
Agip, Anadarko, BHP Billiton, BP, Cepsa, Eni, Gaz de France, Gulf
Keystone, Maersk, Petronas, Repsol, Rosneft, Statoil, Talisman, and
Total.
Major Oil Fields
Hassi Messaoud, Hassi Berkine, Ourhoud, Bir Hebaa, Gassi El

Agreb/Zotti, and Menzel Ledjmet
Major Natural Gas Fields
Hassi RMel, Rhourde Nouss, Rourde Nouss Sud-Est, Rhourde Adra,

Rhourde Chouff,and Rhourde Hamra fields.
Major Crude Oil Export

Pipelines
498-mile and 511-mile parallel lines Haoud el Hamra-Arzew; 415-mile

Haoud el Hamra-Bejaia; 482-mile In Amenas-La Skhirra, Tunisia; and
400-mile Haoud el Hamra- Skikda.
Major Refineries (capacity,

bbl/d)
Naftec-Skikda (300,000), Naftec-Algiers (60,000), Naftec-Arzew

(60,000), and Naftec-Hassi Messaoud (30,000).
Source: EIA
Oil reserves, consumption and production
14,000
2,500
12,000
10,000
1,500
8,000
6,000
1,000
4,000
500
2,000
0
0
1998
2000
2005
Oil proved reserve
2007
2008
Oil production
2009
2010
Oil consumption
Source: ENI World Oil & Gas Review
Most of the Algeria's oil and gas reserves are located in two basinsthe Erg Oriental-Berkine basin and the
Erg Occidental-Ahnet basin. The former accounts for the country's most liquid reserves, which includes total
6.4 trillion barrels (tbl) with the Hassi Messaoud field holding about 52 per cent of the country's total oil
reserves. While, the Erg Occidental-Ahnet basin accounts for the country's most gas reserves including 3
trillion cubic metres (tcm), with the Hassi R'mel field holding more than 60 per cent of the country's total gas
reserves.
To add, with the recent oil discoveries, additional plans for further exploration drilling, improved data on
existing fields, and use of enhanced oil recovery schemes, the country's reserves (proven oil and gas)
landscape is likely to change in the next decade. With better exploration success rate, it is estimated that
recoverable oil reserves may be as high as 12.3 billion barrels by 2015.(Source: BMI) While in the case of
Thousand (bpd)
Reserves (mb)
2,000
gas, studies evaluating the reserves estimate of 4,500 billion cubic metres (bcm) in 2011 indicate an
expected rise to 4,800 bcm by 2014. (The 2010 US Energy Information Administration)
With Algeria's total oil production of 77.7 million tonnes in 2010, it further plans to increase the exports from
55 bcm to 85 bcm per year by 2012. Most of the country's output comes from the Hassi Messaoud oil field
and the Hassi R'Mel field. In 2000, Algeria was exporting over 1,170 thousand bpd, which further rose to
around 1,280 thousand bpd in 2010 or an increase of around 1.1 per cent through a decade. (SP Statistical
Review, 2011; ENI World Oil & Gas Review) Algeria needs to improve its reserves further by adding new
reserves and enhanced oil recovery techniques to increase its R/P ratio from current level of about 19
years.
Several projects are expected to take place in the next decade that includes Bir El M'Sama, Menzel Ledjmet
Est, El Merk, enhanced production at Hassi Messaoud, Bir Seba, Gassi Touil-Rhourde, Nouss and Tesselit
North. The cumulative target peak production capacity of all these projects is said to amount to a maximum
additional production of 365,000 barrels per day (b/d). The most ambitious of these projects is Anadarko
Petroleum's 105,000 b/d El Merk, which the company announced is on schedule with production due to
start in late-2011.
Gas reserves, production and consumption

Algeria's proven natural gas reserves were 4.5 tcm in the beginning of 2011, currently making it the eighth
largest natural gas producer in the world and largest among African countries. Its key oil and gas customers
are Italy, Germany, France, the Netherlands, Spain, the United Kingdom, and, the United States.
Algeria's largest gas field is the super-giant Hassi R'Mel, discovered in 1956 and holding proven reserves of
about 2,400 bcm. This reserve accounts for about a quarter of Algeria's total dry natural gas production.
The remaining natural gas reserves occur in both associated and non-associated fields in the south and
southeast regions of Algeria. In south eastern Algeria, the Rhourde Nouss and In-Amenas regions
respectively hold 370 bcm and 280 bcm of proven gas reserves, and in southern Algeria, the In-Salah
region holds smaller, less-developed reserves of 140-280 bcm.
Algeria Gas Reserves, Production and Consumption
100,000
90,000
80,000
Reserves (bcm)
4,000
70,000
3,000
60,000
50,000
40,000
2,000
30,000
1,000
20,000
10,000
0
0
1998
2000
Gas reserve
2005
2007
2008
Gas production
2009
2010
Gas consumption
In 2010, the EIA estimated that total gas production of Algeria was 82 bcm, while its estimated consumption
of around 30.5 bcm in 2010 is expected to further rise to 38.7 bcm by the end of 2011. Though with the goal
to export around 85 bcm in 2010, analyses suggest that this target is mere feasible until 2018 due to
several delays in major projects. Sonatrach, however, is expected a planned 31 per cent increase in
pipeline and LNG supplies by 2012, rather than the original 2010 start date.
Producstion/Consumption (mcm)
5,000
Nevertheless, Algeria is a major gas exporter, sending abroad 33.8 bcm of gas through its pipelines in
2009, with another 20.9 bcm exported in the form of liquefied natural gas (LNG). Currently, the country has
two operational gas export pipelines from the Hassi R'Mel gas field: one to Spain and one to Italy. The 12
bcm Maghreb-Europe gas pipeline (MEG, also known as the Pedro Duran Farrell pipeline) came on-stream
in 1996, linking Hassi R'Mel to the southern Spanish city of Cordoba. The Trans-Mediterranean pipeline
(TransMed, aka Enrico Mattei pipeline) runs via Tunisia to Sicily and hence to mainland Italy, with an
extension taking it on to Slovenia. TransMed currently has a capacity of 24 bcm, with plans to increase this
to 35 bcm by 2012.
Exploration and licensing

Exploration has proven to be quite successful in recent years in Algeria where the hydrocarbons mining
domain, being very wide, covers an approximate area of 1.5 million square kilometer (km2), representing
almost 60 per cent of the national territory. As confirmed by Sonatrach together with its foreign partners, it is
a very rich and diversified field containing the highest oil potential in the area. However, except few basins
where significant hydrocarbon deposits have already been discovered, this domain still remains unexplored.
Further, with most of the country's reserves located in mature fields and high production targets in place,
only discovering new explorations/basins (or significant fields in mature basins) could well peak the total
reserve ratio in the country. Therefore, Sonatrach is actively booting promotion campaigns at the
international level and organizing data rooms for foreign oil companies wishing to invest in Algeria in its
upstream sector.
Hence, Sonatrach plays a significant role in the Algerian economy. Total 16 oil and gas discoveries were
made in 2009 in Algeria, nine of which were by Sonatrach alone. Balance seven discoveries were made in
partnerships. In 2010, total 29 discoveries were made, out of which 27 were by Sonatrach alone and
balance two in partnerships. (Source: sonatrach-dz.com)
Algeria has now seen just nine of 36 licence areas auctioned since 2008 attract winning bids. Algeria's
seventh and eighth licensing rounds, held in December 2008 and December 2009, resulted in only seven
block awards from the 26 on offer. In the eighth round, a consortium led by China National Offshore Oil
Corporation (CNOOC) was awarded the Hassi Bir Rekaiz permit, while a Total -led consortium received the
Ahnet permit and a Repsol YPF -led group was granted the South-East Illizi permit. The seventh round's
award winners were BG Group (Guern el Guesa Block), Germany's E.ON Ruhrgas (Rhorde Yacoub Block),
Gazprom (El Assel Block) and Eni (Kerza Block).
Algeria's National Agency for the Valorisation of Hydrocarbon Resources - ALNAFT, the government
agency which is responsible for bidding rounds, came out with Algeria's 3rd National and International Bid
Round in September 2010, offering 10 oil and gas areas for contract. In the previous two bidding rounds,
many of the contract areas on offer did not receive bids and went unclaimed, with some international energy
firms mentioning that the fiscal terms were too tough and the prospects were not attractive enough.
Algeria awarded only two out of 10 oil and gas permits on offer in 3rd licensing round in March, 2011. The
winning bidders were Spain's Cepsa and Algerian NOC Sonatrach. Cepsa won the Rhourde Rouni area,
and Sonatrach was awarded the Rhourde Fares contract area. Both are in the Berkine basin in the Sahara
desert, where Russia's largest gas company Gazprom announced discovery of oil and gas reserves year on
its contract area.
With less investment going into gas exploration and production than expected, it is seen an increasing
downside risk to Algeria's long-term production and reserves outlook. However, the forecast gas production
in the country is likely to rise steadily towards the end of the decade, from 85 bcm in 2011 to 118 bcm in
2015. However, failure to raise volumes is certain to pose a threat to Algerias ambitious export expansion
plans.
Oil Refining
Algeria is a major refining centre with five refineries. According to the Algeria Report 2011, the capacity in
Algeria jumped significantly from 2007 through 2009, from 457,000 bpd in 2007 to 523,000 bpd in 2008 and
652,000 bpd in 2009. The country holds about 14 per cent of the total refinery capacity in Africa and is also
the country's largest exporter of refined products. The five main refineries are:
El Harrach Algiers refinery: built in 1964 by CFP/Total to supply the domestic market, has a capacity of
60 thousand bpd. The refinery processes local Hassi Messaoud Crude Oil, which is supplied by
pipeline.
Arzew refinery: built in 1973 by Sonatrach as an export refinery, has a capacity of 60 thousand bpd. It
processes Saharan Crude Oil piped to it along the Haoud El Hamra/Arzew pipeline.
Skikda refinery: built in 1980 by Sonatrach as an export refinery and petrochemical complex; and,
expanded in 1993, has a capacity of 300 thousand bpd.
Hassi Messaoud: built in 1960 and expanded in 1979, has a capacity of 30 thousand bpd.
Soralchin Adrar: started its operation as the fifth refinery in Algeria in 2007. Situated in southern Algeria
and catering to the country's four southern provinces, the refinery is jointly funded by China National
Petroleum Corporation (CNPC) and the Ministry of Energy and Mines of Algeria. Domestic crude oil
from the Touat oilfield is dedicated to process in this refinery which is delivered via a 82.5 kilometres of
crude oil pipeline.
Algerian refineries are undergoing major revamping and expansions, aimed at improving fuel specifications
in line with the 2009 European regulation. The government is developing a US$ 15 billion downstream
investment program, including the construction of a new 300 thousand bopd refinery and petrochemical
plants. Plans for the Arzew port area, which handles about 40 per cent of Algeria's total hydrocarbon
exports, include the construction of a petrochemicals complex, a condensate refinery and a desalination
plant. One more reefing project is underway at Tiaret in Algeria.
Liquefied natural gas

With total exports of 19.31 bcm during 2010, Algeria was the world's seventh largest exporter of LNG to the
world mainly to Western Europe, especially France, Spain and Turkey. Algeria has four LNG terminals;
three in Arzew and one in Skikda, with a total liquefaction capacity of 44 bcm of LNG per year.
There are two major projects of natural gas liquefaction underway in Algeria; LNG terminal in Skikda with a
capacity of 4,7 million tons and in Arzew with a capacity of 4,5 million tons.
Out of 55.8 bcm natural gas export by Algeria in 2010, it exported about 35per cent gas in LNG form while
rest 65per cent gas was exported through pipeline mainly to European countries.
Natural Gas International Trade in 2010 (in billion cubic metres)
30.0
27.560
25.0
BCM
20.0
15.0
12.050
10.0
6.270
6.038
3.874
5.0
0.0
France
Italy
Spain
Turkey
Others
Pipeline transportation
Sonatrach, the NOC of Algeria is responsible for hydrocarbon (crude oil, natural gas, LPG and condensate)
transportation through pipeline and has a pipeline network of about 16,200 Km long. This oil and gas
pipelines network has capacity of transportation of 24.5 million tons oil equivalent (Mtoe). The Pipeline
transportation network comprises 12 gas pipelines which are 7,460 Km long, and have a hydrocarbon
carrying capacity of 131 billion m3 per year, 39 bcm of which is dedicated for set for export purpose. Since
the start-up of the two transcontinental gas pipelines, Enrico Matei which links between Algeria and Italy via
Tunisia, and Pedro Duran Farrel which links between Algerian and Spain via Morocco new gas pipelines
projects are underway primarily to meet the increasing demand of the European market. Following are the
gas pipeline projects underway in Algeria.
Medgaz project: It is a natural gas pipeline project in which pipeline will pass through the Mediterranean
Sea linking Algeria with Europe via Spain. Departing from Beni-Saf near Arzew, The pipeline crosses the
Mediterranean Sea on about 200 Km at a depth of 2,160 meters.
Galsi project: This is a 1,470 Km natural gas pipeline project to carry gas from Hassi Rmel to Castglionne
Della Pescaia, Northern Rome (Italy). Algerias offshore field links El Kala (Algerian Coast) with Italy via
Sardaigne. It has an initial capacity worth 8 billion cubic meters per year. Also, it can supply gas to other
parts of Europe like Southern France and European countries Northern Alps.
TSGP project: It is transnational gas pipeline project with total length of 4,200 Km long, of which 2310 Km
on the Algerian territory and 1037 on the Nigerian territory. It links the terminal of Warri in Nigeria with the
terminal on the Algerian coasts and would allow transporting a volume of gas estimated at 18 to 20 bcm per
annum.
Angola
Basic information
Population:
13,338,541 (July 2011 est.)
Currency (code):
Angolan kwanza (AOA)
Exchange rates:
1 US$ = 93.350 AOA (Quarterly Avg. July-September 2011)
GDP (PPP):
GDP real growth rate:
1.6 % (2010 est.)
GDP per capita (PPP):
US$ 8,200 (2010 est.)
Head of State:
H.E. Mr. Jose Eduardo Dos Santos, President
Head of Government:
H.E. Mr. Jose Eduardo Dos Santos, President
Overview
Angola, an OPEC member since 2007, is the second largest oil producing country in Africa after Nigeria,
and a significant supplier to both China and the United States. In 2010, Angola produced over 90.7 million
tonnes of oil, second only to Nigeria which tops the Africa-list with 115.2 million tonnes. Angolas impressive
economic growth rate is primarily being driven by its oil sector with oil production and its supporting
activities contributing about half of the nations gross domestic product and 90 % of total exports. Angolas
current per capita consumption of oil is 1.35 barrels, slightly higher than Africas average per capita oil
consumption oil at 1.3 barrels.
According to the Economist, Africa during the last decade had six out of ten fastest growing countries in the
world, with Angola growing the fastest, and being the richest amongst all. To add, the Economist
Intelligence Unit's (EIU) forecasts the Angola economy after its real GDP growing by an estimated 6.1 % in
2011, is further expected to expand by 9.9 % in 2012 and 7.1 % in 2013.
The Angolan oil sector is being looked after by its petroleum ministry -Ministrio dos Petrleos, with
Sonangol- Sociedade Nacional de Combustveis de Angola as the concessionaire, in its oil sector.
Sonangol, E.P. the national oil company (NOC) is the regulator or sole concessionaire for exploration of
oil and gas within the country, and is responsible for the exploration, production, manufacturing,
transportation and marketing of hydrocarbons in Angola. Sonangol, together with ExxonMobil and its coventurers have declared a total of 58 discoveries in Angola with a recoverable resource potential of about
13.5-14 billion oil-equivalent barrels.
Angola has three major sedimentary basins; proven - Lower Congo and Kwanza basins while identified Namibe basin. Out of these three, only the Congo and Kwanza basins have yielded oil in commercial
quantities. Much of Angola's deep and ultra-deep water areas are considered to be highly prospective and
remain to be explored. Recent discoveries have also led to increased interest in the country's offshore
exploration blocks.
The countrys offshore is divided into 51 concessions blocks, with 24 licensed (8 deepwater, 4 ultradeepwater and 12 shallow water) and 27 open. So far, Angola has made about 90 commercial discoveries
in blocks 14, 15, 16, 17, 18, 31, 32 and 33 with an exploration success rate of 56 per cent.
At present, Angolas overall macroeconomic prospects look more encouraging, as the economy is relying
principally on the expected growth in oil, gas and mining output. The EIU expects a continual substantial
investment in the energy sector to drive up Angolas oil production to over 2.1 million barrels per day (bpd)
by 2015.
Oil reserves, production and consumption

By the end of 2010, Angola had proven oil reserves of 13.5 billion barrels, which constitute 1% of the
world's proven oil reserves. The country's current oil R/P ratio is 20 years while production to consumption
ratio is greater than 26. Almost all of these reserves are located in Angola's offshore regions with more than
80% in the deepwater and ultra deepwater zones. (BP Statistical Review, 2011)
16,000
2,000
14,000
1,800
1,600
12,000
1,400
10,000
1,200
8,000
1,000
6,000
800
600
4,000
400
2,000
200
Production & Cosnumption ('000 BPD)
Oil reserves (million barrels)
Angola Oil Reserves, Production and Consumption)
0
1995
2000
Oil Reserves
2005
2008
Oil Production
2009
2010
Oil Consumption
Source: BP Statistical Review, 2011, ENI World Oil & Gas Review
Crude oil production has increased more than 2.5-fold, over the last decade, from 746 thousand bpd in
2000 to 1851 thousand bpd in 2010. Production from new deepwater fields is expected to result in a sharp
increase in the country's crude production.
Domestic oil consumption in Angola is very low in comparison to its production and amounted to 70
thousand bpd in 2010 or 3.8 % of domestic production. Approximately 90 % of production is exported, with
the bulk of exports going to China and the United States. Other major importers of Angolan crude include
France, Chile and Taiwan. While China is the key importer of Angolan crude, with 790 million barrels during
year 2010 (second largest supplier to China after Saudi Arabia, which supplied 890 million barrels). The
United States was the second major importer of Angolan oil, importing approximately 400 million barrels.
Four offshore blocks currently contribute 90.75 % of Angola's total oil production:
Block Zero: It is located in the offshore Cabinda province and it is divided into Areas A and B with 21 fields
together, whose total production in 2010 was 365,000 barrels per day. Chevrons subsidiary, Cabinda Gulf
Oil Company (CABGOC) is the operator of this block since 1955 and has a 39.2 % participating interest in
the JV. CABGOC's other partners are Total, Eni and Sonangol.
Block 14: The block has undergone an aggressive exploration program that has resulted in 11 discoveries
since 1995, when its exploration license was first awarded. CABGOC is the operator with 31 % participating
interest. Its other JV partners are Total, Eni, Sonangol and Petrogal. The Block produced 197,000 barrels
per day in 2010 from the Benguela Belize-Lobito Tomboco (BBLT), Kuito and Tombua-Landana fields since
1995, when the exploration license was first awarded.
Block 15: The deepwater block is Angola's largest producing block, with recoverable hydrocarbon reserves
of 5 billion barrels. It accounts for 36.7 % of Angola's total production of crude oil. ExxonMobil affiliate Esso
Exploration Angola (Block 15) Limited (Esso Angola) operates the block 15 with 40 % participating interest.
Its JV partners are BP, Eni, and Statoil.
First oil was produced in 2003 from the Xikomba field, from Kizomba A in 2004, Kizomba B in 2005, and
from Kizomba C in 2008. The block surpassed one billion barrels of cumulative production in September
2009. As a latest development, Esso Angola is considering adding an additional 100,000 bpd from its fields
to this Block. The development of two of the remaining fields is progressing, and production is expected to
start in 2011. According to Jornal de Angola, the company is likely to position 18 new oil fields into
operation by second quarter of 2012.
Block 17: The block produces 16.75 % of Angola's total crude oil production. By 2012, average production
is expected to reach 850 thousand bpd. Total is the operator with a 40 % share. Other shareholders include
BP, Statoil, ExxonMobil and Norsk Hydro.
Ongoing/upcoming upstream projects in Angola
Est. Year
Est. Gross
Onstream
addition (kb/d)
TOTAL
2011
220
BP
2011
150
Kizomba Satellites
Esso
2012
85
Block 17 CLOV complex
TOTAL
2014
160
BP
2014
150
Chevron
2015
40
TOTAL
2015
120
BP
2016
150
Project/Field Name
Operator
Pazflor
Block 31 NE (Plutao,
Satumo, Venus, Urano)
BLOCK 31 (Palas, Juno,

Astrea, Urano)
Negage
Block 32 (Gindungo,
Canela, Gengibre)
BLOCK 31 West (Hebe,
Ceres, Titania)
Source: OPEC
Gas Reserves, production and consumption

As of January 2011, Angola's proven natural gas reserves are 353 bcm. Angola produces about 670 million
cu. meters of gas but due to the absence of a commercially viable domestic gas market, the majority of
natural gas produced in Angola is currently flared (more than 75 %), with the remaining production being reinjected to enhance oil recovery or processed for the production of liquefied petroleum gas (LPG).
800
350
Reserves (bcm)
300
600
250
200
400
150
100
200
50
0
0
1995
2000
Gas reserve
2005
2008
Gas production
2009
Producstion/Consumption (mcm)
Angola Gas Reserves, Production and Consumption
2010
Gas consumption
Angola is considering improving its gas production which is expected to increase to 8.25 bcm by 2015 and
development of gas market within the country and LNG liquefaction plant to export gas up to 6.8 bcm per
annum. Gas consumption is expected to reach to about 1.45 bcm by 2015. It would certainly reduce the
flaring and save the environment.
Refining
Angola currently has one crude oil refinery with a capacity of 60,000 bpd in Luanda. The refinery is
partnered by Petrofinas Fina Petroleos de Angola (64.1%), Sonangol (34%) and the rest by other private
shareholders. The refinery was built in the 1950s, now processing local crudes, mainly from Kwanza and
Palanca. This refinery has not been producing enough gasoline to meet the countrys demand and currently
has to import almost its entire gasoline requirement. Angola annually imports about 250 million dollars of
petroleum products.
With this, the country currently has an on-going new construction refinery approved by the government in
1997 in the coastal city of Lobito called SonaRef, also owned by Sonangol. The Lobito refinery is said to
have a post-project capacity of 200,000 bpd of oil, likely to be completed by 2015.
Further, in July 2011, the Ministry of Petroleum announced that the country is likely to build a new refinery
in the Zaire province, primarily to meet its domestic demand for oil derivatives. This prospective refinery,
along with the currently advancing refinery in Lobito demonstrates the governments focus on reducing
current imports of oil derivatives in the country.
Liquefied Natural Gas (LNG)

The Angola LNG project, initiated in November 2008 is an integrated gas utilization scheme, comprising
both offshore and onshore operations to commercialize gas resources from the country's offshore blocks
and boost the development of a future natural gas based industry. Sonangol and Chevron are planning to
build an LNG plant with a capacity of 5.2 Mmtpa for export to Atlantic basin markets. Consuming around
one billion cubic feet of gas a day, the plant has a projected lifespan of 30 years and with a cost of $4
billion. The first production is expected in the first quarter of 2012. Chevron is the lead partner through its
subsidiary, Cabinda Gulf Oil Company, owning a 36.4% share. While, the other consortium members are
Sonangol as Sonagas with 22.8%, Eni with 13.6%, and BP with Total holding 13.6% share each.
The primary customer of Angola LNG is expected to be the Gulf LNG Terminal in Mississippi, which is also
to be the natural gas supply point in the southern states of America. It is anticipated that the LNG plant,
which is Angola's first natural gas based project, will create new job opportunities and lay the foundation for
the country's natural gas-based industrial development. This LNG plant is also said to produce propane,
butane for LPG, and process condensate as well. In this, the gas liquefaction facility will process gas from
offshore blocks 0, 1, 2, 14, 15, 17 and 18, which is being built in north western Angola, near the town of
Soyo.
However, as per the Angolan Petroleum Ministry, the project is tightened with the cost burden, from the
initial US$4 billion to US$9.2 billion.

Out of Angola's three main sedimentary basins of Kwanza, Congo and Namibe, the Congo and Kwanza
basins have yielded oil in commercial quantities. Much of Angola's deep and ultra-deep water areas are
considered to be highly prospective and remain to be explored. Recent discoveries have also led to
increased interest in the country's offshore exploration blocks. To add, the country expects to spend
approximately US$ 40-50 billion in next ten years in hydrocarbon sector-upstream, downstream, LNG etc.
More than fifty blocks were awarded by Sonangol between 1995 and 2005. Licensing rounds were
announced/held in 2005 (seven offshore blocks), in 2006 (12 blocks on offer, including eight offshore and
four onshore), and in 2007 , which was further postponed.
BP, Total and ENI are successful bidders for some of the ultra-deep water blocks in a new bidding round in
January 2011. The government offered 10 blocks, including the onshore Cabinda Centro, onshore Kwanza
blocks KON 11 and 12, Block 9 in shallow water, deepwater blocks 19, 20, and 21 in the Kwanza Basin,
and newly designated ultra-deepwater blocks 46, 47, and 48 in the Lower Congo Basin.
Some of the block-wise winners of recent Angolan licensing round, 2011:
Block
Operator
Joint Ventures (Interests in %)
(Interests in %)
Offshore Block 0
Chevron (39.2%)
(Areas A and B)
Block 1/06
Sonangol
Total (10%)
Eni (9.8%)
Prodoil (20%)
Force (10%)
Somoil (9.3%)
Kotoil
(41%)
Tullow (50%)
Sonangol
(20%)
Block 2/85
Chevron (20%)
Petrobras
(27.5%)
Poliedro (9.1%)
(9.1%)
Block 2/05
Sonangol (70%)
Somoil (30%)
Block 3
Sonangol
(Canuku field)
(100%)
Block 3/85
Sonangol
Eni
Ajoco
Svenska
(Cobo field)
(56.25%)
(15%)
(12.5%)
Petroleum
Ina (5%)
Naftagas
(5%)
(6.25%)
Block 3/85
Sonangol
Total
Eni
Ajoco
Svenska
Ina
Nafta
(Pambe field)
(6.25%)
(50%)
(15%)
(12.5%)
Petroleum
(5%)
gas
(6.25%)
(5%)
Source: Petroleum Economist
Benin
Basic information
Population:
9,325,032 (July 2011 est.)
Currency:
CFA Franc BCEAO.XOF
Exchange rates:
1 US$ = CFA 454.264 (BCEAO. XOF) (Quarterly avg. July Sep, 2011)
GDP (PPP):
GDP real growth:
2.5% (2010 est.)
US$ $1,500 (2010 est.)
Head of State:
H.E. Dr Thomas Yayi Boni , President
Head of Government:
H.E. Dr Thomas Yayi Boni , President
Overview
Benin is primarily dependent on subsistence agriculture, cotton production, and its regional trade. Its growth
rate in real output had averaged about 4 per cent before the global recession, but fell to 2.7 per cent in 2009
and 3 per cent in 2010. The countrys inflation has subsided over the past several years, therefore,
continues its plan to attract more foreign investments with more emphasis on tourism, encourage new
information and communication technology. And develop new food processing systems and improve
agricultural products.
The 2001 privatization policy continues to apply in the telecommunication, water, electricity, and agriculture
sectors. With such reforms, Benin has significantly become one of the most competitive countries in the
West Africa, according to the World Economic Forum. However, an insufficient electrical supply continues
to adversely affect Benin's economic growth though the government recently has taken steps to increase
domestic power production.
Countrys per capita oil consumption in 2010 was 0.97 barrel lower than the Africas average per capita oil
consumption at 1.3 barrel. It does not produce oil even it has very marginal oil reserves of about 8 million
barrels. Country is completely depends on imported petroleum products from nearby countries to fulfil its
energy requirements.
Socit Nationale de Commercialisation des Produits Ptroliers (SONACOP) is responsible to supply
petroleum and gas products in Benin. SONACOP was established in December 1974 as a state owned
company after nationalization and merger of Beninese subsidiaries of companies of BP, Total S.A., Agip,
Texaco, Shell, Mobil and DEPP. Since July 1994 SONACOP is a joint stock company.

Benin lies between Nigeria and Ghana, two oil exporting countries and therefore expected to have oil as
well. Benin coastal sedimentary basin belongs to geological formation called Bay of Dahomey and extends
from Keta (Ghana) to Mount Okitipupa (Nigeria). In width it extends to over 470 kms, of which
approximately 100 kms is the continental shelf of area 55,000 square kms.
Petroleum was, indeed, discovered offshore of Porto-Novo in 1968, but quantities being small, were not
deemed commercially viable. Exploitation of the Sm oilfield along Nigeria-Benin border led to beginning
of oil production in 1982. The production ended in 1998, when reserves were exhausted.
35
30
30
25
25
20
20
15
15
10
10
Cosnumption('000BPD)
Oil reserves and consumption
5
0
0
1995
2000
2005
OilReserves
2008
2009
2010
OilConsumption
However, following increase in oil prices Global and technological advances, some companies have shown
renewed interest, and oil exploration resumed in 2002. The increase in international oil prices has also
encouraged exploration for new reserves. Currently, Benin has about 8 million barrels of proved oil reserves
and it is expected that the country would be able to add more reserves due to the further interest and
investment in upstream sector.
In February 2011, the Brazilian state-run oil producer, Petrobras, acquired a 50 per cent interest in Benin's
offshore Block 4, highlighting its sustained interest in West Africa's offshore oil potential. The deal was
aligned from Compagnie Bninoise des Hydrocarbures (CBH), a subsidiary of Lusitania Petroleum, which
holds the remaining 50 per cent of the stake. Petrobras' choice of Benin was relatively upfront. According to
a 2000 US Geological Survey (USGS) report, Benin's waters have mean undiscovered resources of 70
million barrels of oil and about 20 billion cubic metres (bcm) of natural gas.
Benin currently imports all its oil requirements, which are estimated at 41,000 bpd in 2010. The national oil
distribution company, Socit nationale de commercialisation des produits ptroliers (Sonacop), was partprivatized in 1999 when a 55% stake was sold to a local firm, Continentale des ptroles et dinvestissement
(CPI). However, in January 2008, following a series of fuel shortages and a ruling that CPI had not made
the required payments to the state, the government reclaimed the stake it had sold. Hence, Sonacop is
currently 90% owned by Government of Benin. Meanwhile, in order to temper local price increases, the
government has suspended the automatic price-setting mechanism for oil products and reduced petrol
taxes.
Benin is an agreed beneficiary of 678 km long 760 mm diameter West Africa Pipeline Project, initiated in
early 1982, also referred to as West African Gas Pipeline (WAGP). The pipeline operator, West African
Pipeline Company (WAPCo) is a consortium of Chevron (38%), Nigerian National Petroleum Corporation
(NNPC; 25%), Royal Dutch Shell (17%), Takoradi Power Company (16%), Socit Togolaise de Gaz
(SoToGaz; 2%) and Socit Beninoise de Gaz (SoBeGaz; 2%).
WAGP was seen as a way to transport clean, reliable and cheap natural gas from Nigeria to Togo, Benin
and Ghana, with Ghana's Takoradi power plant as the main user. When the pipeline was initially agreed, it
was said that it would initially carry 4.2 million cubic metres per day (mmscmd) of natural gas (an
annualized 1.6 bcm). WAGP finally began its commercial operations in April 2010, after nearly 30 years of
planning. The pipeline is likely to transport up to 4 bcm of gas per year from Nigerian fields to power plants
in Benin, Togo and Ghana, helping these countries to reduce their dependence on oil for electricity
generation.
The pipeline is considered as an important step towards economic integration of the region and as a
platform to attract future investments. Further, it is analyzed that the pipeline could be further extended to
Cote d'Ivoire and to Senegal as well.
Cameroon
Basic information
Population:
19,711,291 (July 2011 est.)
Currency:
Communaute Financiere Africanine Franc (CFA Fr.)
Exchange rates:
1 US$ = 454.2 CFA Fr1. (Quarterly Avg. July-September 2011),
GDP (PPP):
US$ 43.33 billion (2010)
3 per cent (2010)
GDP-per capita:
US$ 2,300 (2010)
Head of State:
H.E. Mr. Paul Biya, President
Head of Government:
H.E. Mr. Philemon Yang, Prime Minister
Overview
Oil exploration in Cameroon began with the issue of the country's first exploration license in 1952. A number
of discoveries were made in the 1970s, with the offshore Kole field producing Cameroon's first oil in 1977.
Although fresh exploration in the early 1980s also resulted in the discovery of small oil and gas/condensate
fields, production in Cameroon has been in decline since it achieved its peak production of 173,000 bopd in
1986. At present it is now limited to a number of marginal fields. Despite falling production, the country
remains a net exporter of crude oil.
Oil revenues have been able to maintain their 7.5 per cent share of the country's GDP over the last 10 to 15
years, since declining production has been offset by both favourable exchange rate changes and higher
crude prices. The Chad-Cameroon pipeline has also been a significant source of revenue for the country
since its completion in 2003.
In 1980, Cameroon's national oil company, Societe Nationale des Hydrocarbures (SNH) was established
with the purpose of promoting and developing all hydrocarbon activities, managing the state's interest in
petroleum sector; and, to market the state's share of crude oil in the international market. SNH is marginally
involved in oil production, as it exploits jointly with Perenco an oil field that accounted for 1 percent of the
countrys output in 2004. It holds a 20 percent stake in Total, Pecten, and Perenco and other stakes in
companies involved in oil sector downstream activities and in non-oil-related activities.
Largely, new exploration is being undertaken by independent players in the market, whose share of
contribution though relatively small forms the backbone of the exploration sector in Cameroon. Major
foreign companies operating in Cameroon are Total, Shell, Perenco, Bowleven, Kosmos Energy, Noble,
Victoria Oil & Gas (VOG), ExxonMobil and GDF Suez.

As of December 2010, Cameroon had proven oil reserves of 200 million barrels as per the Oil and Gas
Journal (OGJ) survey and the US-based Energy Information Administration (EIA), bringing its reserves-toproduction ratio (RPR) to around 9. Taking into consideration some of the exploration activities that are
going on, Cameroon has the potential to reach a significant reserve base of 250 million barrels by 2013/14.
At present the country consumes 30 thousand bopd and exports the balance.
Main offshore oil producing fields are in the offshore Rio del Rey Basin of the Niger Delta, the onshore
Douala/Kribi-Camp basins on Cameroon's western coast; and, the onshore Logone-Birni basin in the
northern part of the country. Also some notable oil fields include Bayo Asoma oil field, Bao bakassi oilfield,
Ekoundou Oil Field, KF Oil field, Kita Edem oil field, Kole Marine oil field, Kribi oil field and Lipenja oil field.
Cameroon Oil Reserves, Production and Consumption Global

140
450
400
120
100
300
250
80
200
60
150
40
Thousand (bopd)
Reserves (Mb)
350
100
20
50
0
2000
2005
Oil proved reserve
2008
2009
Oil production
2010
Oil consumption
Source: ENI World Oil & Gas Review 2011/BP Statistics

As of January 2011, Cameroon had 157 Bcm of proven gas reserves, with almost all of these reserves
located in the Rio del Rey, Douala, and Kribi-Campo basins. The ultimate potential however, is expected to
be around 500 Bcm, and out of this nearly 300 Bcm is likely to be proved by 2016.
Looking to explore the long-term reserves potential in the country GDF Suez signed an MoU in 2008 to
develop LNG export projects in Cameroon. Following which, the company recently tied up with Foster
Wheeler AG to carry out the pre-front-end engineering design (pre-FEED) for its LNG project. The project
would involve development of an onshore LNG plant with production capacity of around 3.5 million tons per
annum along with a gas gathering system with pipelines to the offshore production systems
With the increasing demand for power and declining crude oil production, SNH plans to start gas production
in the country. Along with its partner Perenco, SNH is developing the Sanaga Sud field in the Douala-Kribi
basin. Both Perenco and SNH plan to invest US$50 million in the project. It will provide the gas feedstock
for the proposed 150MW gas to plant being developed by AES-SONEL subsidiary KPDC, Cameroons first
independent power plant company. Gas production from the field is planned to be supplied to a new gasbased power plant in Kribi.
Presently there are two gas fields in Cameroon, Cameroon Sanaga Sud field and Sandy Gaz field.
Victoria Oil and Gas (VOG) has been working towards natural gas production in Cameroon with access to
the onshore Logbaba block, one of the richest reserves of natural gas in the region. The Logbaba Gas Field
in Douala is well known for its natural gas reserves discovered in the 1950s by The French Company, ELF
when Cameroon was still a French colony. In October 2010 the company reported a signigicant rise in its
reserves and resource potential for Logbaba. Capitalizing on Cameroons strategic location and rising
demand for energy, VOG is now preparing to sell its natural gas production to industrial customers around
Douala.
Another important player, Total has been operating in Cameroon since 1977. The company contributes a
large portion to the countrys total oil and gas production.
180
400
160
350
140
300
120
250
100
200
80
150
60
40
100
20
50
0
0
2000
2005
2008
Gas proved reserve
2009
2010
Procuction & Consumption (mcm)
Reserves (Bcm)
Cameroon Gas Reserves, Production and Consumption (Y-axis right hand side scale unit)
2011
Gas production & consumption

Cameroon's hydrocarbon exploration potential remains highly underexplored, largely due to political
instability from the country's long-standing border dispute with Nigeria.
In 2006, SNH put six new blocks in the unexplored Rio Del Rey basin up for bidding after an agreement
was reached between Cameroon and Nigeria over the Bakassi peninsula. The offshore area west of the
Bakassi peninsula is reported to contain both oil and gas reserves and with the dispute with Nigeria now
settled, has the potential to yield significant discoveries. In 2007, a Joint Cameroon-Nigeria Commission
also managed to reach agreement in Abuja on a maritime boundary between the two countries. The
Logone-Birni and Doula basins also have potential of yielding more than their current reserves and are
beginning to attract the attention of global oil companies. In the meantime, exploration work is on at the
Etinde permit in the Douala basin and onshore on the Kombe NSepe block.
The recent discoveries reported by Victoria Oil & Gas in the Douala region and by Bowleven in the MLHP-7
Block have raised hopes of new offshore hydrocarbon reserves being found. Following which, Bowleven
proclaimed having boosted its reserves estimate from 65mn bbl in January this year to a volumetric range
of 430mn bbl at the offshore Douala Basin Deep Omicron field.
Refineries/downstream
Cameroon has one state-owned refinery in the city of Limbe. It is operated by Societe Nationale de
Raffinage (SONARA) and has a capacity of 42 thousand bopd. In 2006, Sonara announced an investment
program of US$ 383 million to double the capacity of the plant and upgrade the existing facilities to enable
the refining of Cameroon's domestically produced heavy crude oil. Total, Exxon and Chevron are currently
involved in the marketing of refined products in the country.
The completion of an 85-MW, oil fired plant at Limbe, in August 2004, marked the first step in the electricity
network improvements.
Chad
Basic information
Population:
10,758,945 (July 2011 est.)
Currency:
Exchange rates:
1 US$ = 454.2 CFA Fr. (Quarterly Avg. July-September 2011)
GDP (PPP):
5.1 per cent (2010 est.)
GDP-per capita:
US$ 1,600 (2010 est.)
Head of State:
H.E. Mr. Idriss Deby Itno, President (since 4 December 1990)
Head of Government:
Emmanuel Nadingar , Prime Minister (since 5 March 2010)
Overview
Although the first oil discovery in Chad was made in the 1970s in the Doba basin, it was only in 2003 that
Chad joined the community of African oil producing nations with the completion of the Chad-Cameroon
crude oil transmission pipeline. The pipeline project is one of Africa's largest public-private partnership
projects and has heavily influenced the country's economic development
Administration and control of Chad's upstream hydrocarbon sector comes under the Ministry of Mines,
Energy and Petroleum. Due to the sector's significance to the country's economy, the President of Chad
also exercises control over policies related to the sector. In July 2006, Chad's Parliament approved the
establishment of Chad's National Oil Company, Societe des Hydrocarbures du Tchad (SHT), to give the
country greater control over its energy assets.
Chad being one of sub-Saharan Africas significant producers of crude oil, started oil production in 2003 and
began exporting in 2004. Lately, a lot of companies have made significant investments to develop oil
reserves and expand oil exploration in Chad. Currently, the foreign companies active in Chad include
Exxon-Mobil, Chevron, Petronas, CNPC, Energem Petroleum Corporation, KNM, CPC Corp., ERHC and
Griffiths.

As of January 2011, Chad had proven oil reserves of 1500 million barrels and studies reveal the possibility
of there being many more discoveries. The country produced approximately 130 thousand bopd in 2010
and in the same year its reserves-to-production ratio (RPR) stood at 32. Oil production began in 2003 with
the Doba Oil project coming onstream, and in 2004 other oil fields forming part of the Doba Oil project,
namely Bolobo, Kome and Miandoun also started production. These fields hold more than 95 per cent of
Chad's proven oil reserves, with the remainder being held by the Sedigui field. The Doba Oil project is also
at the centre of Chads oil production, with an average daily production of 122,500 bopd in 2010.
In 2009, Chads state-run oil and gas firm Societe Des Hydrocarbures Du Tchad SA (SHT) entered into an
agreement with KNM Process Systems to set up a 60/40 JV operating company to develop, operate, and
maintain the Sedigi oilfield facilities under a 5 year concession. This entailed developing a production plant,
oil and gas pipelines, liquid petroleum gas processing and bottling plant, and a 30-megawatt gas power
plant.
PetroChina, through its CNPC unit, has been engaged in progressive oil exploration activities in Chad since
2003. In 2010, a high-yield oil discovery was made on Chads Block H which laid the foundation for further
expansion in this area and an expected increase in oil reserves.
CPC also made one of its most successful discoveries in many years of international exploration when it
recently found new oil and gas reserves from the Benoy-1 well on Block I. This and other such discoveries
confirm that Chad has immense potential for oil exploration which given the governments support will help
in the countrys economic development.
In September, 2011, Griffiths entered into a production sharing contract ("PSC") with the Government of
Chad for a prospective crude oil reserve. The newly acquired DOH (N'Donambo) block that falls within the
Doba basin seems to be rich in resources containing significant amounts of commercially viable
undeveloped oil reserves.
1600
180
1400
160
1200
140
120
1000
100
800
80
600
60
400
40
200
20
Thousand (bopd)
Reserves (Mb)
Chad Oil Reserves and ProductionGlobal
0
2000
2005
2008
Oil proved reserve
2009
2010
2011
Oil production
Downstream and refining

Chad currently does not have any refinery and is dependent on imports of refined petroleum products from
neighboring Nigeria and Cameroon. Construction of Chads first refinery, N'Djamena being developed by
the Chinese firm CNPC, jointly owned by Chads Ministry of Petroleum has been completed. The refinery
became operational this year and is expected to process around 2.5 million tons of crude from Zone H of
the Sedigui oil field. Completed in a span of two years this Crude Oil Pipeline will not only provide the
country with its first important energy channel running from north to south, but also significantly promote
Chad's economic development and the friendship between the two countries.
The Chad-Cameroon pipeline, a landmark for the country's economic history, was completed in 2003 at a
cost of US$ 3.7 billion. Two joint-venture companies, consisting of shareholders ExxonMobil, Chevron,
Petronas, Chad and Cameroon governments, own and operate the 1067 kilometre long pipeline starting
from the Doba oil field to the Atlantic Ocean port of Kribi in Cameroon, as well as the marine terminal and
pipeline to a floating storage vessel.

Chad consists of six main sedimentary basins, which cover more than 50 per cent of the country's land area
of 1.3 million square kilometres. These basins are: the Doba basin, Bongor basin, Doseo basin, Salamat
basin, Lake Chad basin and Al Kufra basin. Whilst early discoveries were made in the Lake Chad Basin and
the Doba Basin, all six basins remain largely unexplored and are considered to hold attractive exploration
potential.
Although the country has not yet held licensing rounds, licenses are issued by the Ministry of Mines, Energy
and Petroleum on a negotiated basis. Up to now, companies undertaking exploration in Chad have had the
option of signing either PSCs or Concession agreements. Both arrangements provide for state participation
of up to 10 per cent.
In July 2011 the government of Chad formally awarded and signed contracts with ERHC to initiate
exploration and development activities in three oil blocks, namely Block BDS 2008, Manga and Chari-Ouest
Block 3. Spanning over a period of 8 years, this oil exploration program that includes a two-well
commitment will be phased out in 3 stages involving technical study and data analysis to assist acual
drilling activities.
Basic information
Population:
71,712,867 (July 2011 est.)
Currency:
Congolese Francs (CDF)
Exchange rates:
1 US$ = 912.700 CDF (Quarterly Avg - July - Sept 2011)
GDP (PPP):
GDP-per capita:
US$ 300 (2010 est)
Head of State:
H.E. Mr. Joseph Kabila, President (Since 17 January, 2001)
Head of Government:
H.E. Mr. Adolphe Muzito, Prime Minister (Since 10 October, 2008)
Overview
The Democratic Republic of Congo is a country well-endowed with natural resources. Exploration for oil in
the country began in the 1960s and offshore production commenced in 1975. Oil production reached its
peak in 1984 with an output of 27, 000 bpod. Onshore oil production began in 1980 and peaked in 1986
with eight fields in production.
The Democratic Republic of Congos oil and gas industry is controlled by its Mines and Energy ministry
through its Department of Energy. Though the countrys has an established oil industry, it is not fully
advanced. One of the many reasons for the oil industry not being fully developed is because of the fact that
more importance is given to the exploitation of other available natural resources.
There are few companies that are involved in the oil and gas sector in the Democratic republic of Congo.
The Commission Nationale de lEnergie, which is owned by the government deals with the regulation of oil
and gas in the country. The companies that are involved in the production, supply and exportation of oil
include Galaxy Moriah Oil, Jovenna Zaire SPRL, Total, Sacoil, DIG oil, EnerGulf resources, Dominion
Petroleum and Soco international.
Oil Reserves, production and consumption

The Democratic Republic of Congo had proven natural oil reserves of 180 million barrels of oil as reported
in January 2011. The country today produces approximately 21,000 bopd while oil consumption was 14,000
bopd in 2010.
188
30
186
25
184
20
182
15
180
10
178
176
Production & Consumption

('000 bopd)
Reserves (Mb)
Democratic Republic of Congo Oil Reserves, Production and Consumption
0
1995
2000
2005
2008
Oil proved reserve
2009
Oil production
2010
2011
Oil consumption
* Source: ENI World Oil & Gas Review 2011
Some of the major oil fields in the Democratic Republic of Congo are the Muanda-Banana field, the
Liawenda-Kinkasi field and the East Mibale field. Conversely, the most prolific of all the oil fields in the
republic is the Mibale oil field.
As of 2010, the Democratic Republic of Congo had an Oil R/ P of 23 years and an oil production to
consumption ratio of 1.57 years. Also, country has lowest per capita oil consumption of 0.07 barrels in
African continent.
There were four exploration drilling announced in 2010 in the country and also three asset level deals were
reported.

Democratic Republic of Congo has about 1 bcm of proved gas reserves but negligible production.
1.2
12
10
0.8
0.6
0.4
0.2
0
2000
2005
2008
Gas proved reserve
* Source: ENI World Oil & Gas Review/BP Statistics 2011
2009
2010
Gas production
2011
Consumption (Mcm)
Reserves (Bcm)
Democratic Republic of Congo Gas Reserves, Production and Consumption
DRC do not have any developed gas facilities in the country and needs to explore gas fields further and
develop local infrastructure to use domestic gas to reduce dependence on imported fuel.
Gas reserves, production and consumption is negligible.

The oil and gas exploration in Ethiopia started 50 years ago along the country's 22 km Atlantic Ocean
coastline. This prospective area (estuary of Congo River) lies in between between the offshore producing
region of northern Angola and oil-rich enclave of Cabinda.
DRC primarily exploit its hydrocarbon resources from offshore fields. Two large projects for three-year
period were started back in 2001; one by Finarep (TotalFinaElf) to increase production levels to double on
onshore while offshore project was with Chevron Oil Congo (DRC) together with its stakeholder, to improve
the production by about 40%.in 2002.
Democratic Republic of Congo developed one of its offshore fields and became an oil producer in 1976.
The entire oil produced in the country is exported as the domesitc refinery SOCIR is incompatible to handle
local heavy crude.
There are several foreign upstream companies operating in partnership with the government in the oil
sector E&P. One of the importatnt consortium operating the offshore concessions which includes Congo
Gulf Oil (Chevron ), 50%, Teikoku Oil of Japan (Congo Petroleum Company) (32%) and Union Oil of
California (Unocal) (18%). Onshore concession in the Congo River estuary is a JV called CongoP (Socit
de Recherche et d'Exploitation des Ptroles au Congo) which, until 1999, included Petrofina and Shell. In
1999, Shell farmed out in 1999 and sold its stake in three onshore production concessions to Ocelot
International.
The Japan National Oil Company (JNOC) has also been involved in exploration activities in DRC. It is
expected that local government will try to promote foreign interest in the onshore Lemba Trough,
Tanganyika Graben blocks and Cuvette Centrale.
The Ministry of Energy have petroleum legislature to supervise, monitor and control the awarding of
exploration permits and production concessions.Acreage is licensed under a concession system in the
country.
In 2010, SOCO acquired the services of the onshore drilling rig, Caroil 1 which is owned by CAROIL SAS,
for its exploration drilling project in the Nganzi Block, onshore the Democratic Republic of Congo. This
contract signed between the two companies was for 2 firm and 2 contingent wells.
In recent developments, it has been stated that the Democratic Republic of Congo can offer up to 10 blocks
in a fresh onshore hydrocarbon proposition in the coming year. Furthermore, it has also been reported that
the Kenyan fuel dealer KenolKobil has attained an oil terminal in the Democratic Republic of Congo in a
preliminary step towards full-fledged operations in the nation. Likewise, the government of DRC is
reportedly said to be working with the administration of Angola to encourage joint oil developments,
precisely in the Lower Congo Basin.
Oil Refining
The Socit Congo-Italienne de Raffinage (SOCIR) refinery is situated at Kinlao on the coast near Muanda
of Democratic Republic of Congo. It is a simple refinery with distillation capacity of about 15,000 bpd. The
refinery was started in 1963 and is owned by the local government (50%) and Agip (50%). The refinery was
having tolling arrangements for third party processing agreement with Chevron.
SOCIR refinery was designed to process sweet crude from Iran and cannot handle the heavier domestic
crude produced from nearby oil fields. Finally it was started processing Nigerian crudes, Bonny, Escravos
and Pennington.
Due to uncertainty in the country, AgipPetroli sold Agip Congo SARL its 50% interest in Societ CongoItalienne de Raffinage SARL (SOCIR).
This was one of the African oil refineries identified by World Bank for closure. The DRC government is
looking to upgrade the refinery to a capacity of 50,000 bpd. It would need investment of approximately
US$ 150 million for the project.

DRC has 350 km refined product pipeline (except fuel oil) which were used to pump about 350 km by
pipeline to 3 Kinshasa depots from refinery site.
According to sources, SOCIR refinery is now non-operational. Now petroleum products are being imported
to satisfy DRCs demand.
Republic of Congo
Basic information
Population:
4,243,929 (July 2011 est.)
Currency (code):
Communaute Financiere Africaine franc (XAF)
Exchange rates:
GDP (purchasing power parity):
US$17.11 billion (2010 est.)
US$ 4,100 (2010 est.)
Head of State:
H.E. Mr. Denis Sassou-Nguesso, President
Overview
Congo began developing its oil sector in the late 1950s, which has become today the countrys primary
source of economic growth. The hydrocarbon sector accounts for approximately 65 per cent of Congo's
Gross Domestic Product (GDP) with oil exports alone accounting for about 90 per cent of the country's total
export revenues.
According to the projection made by IMF, The Republic of Congo is the only African country to have doubledigit growth in 2010, and its 2011 forecast is second only to Ghana.
Oil dominates Congo's energy mix, accounting for about 78 per cent of energy consumption, while the
balance 22 per cent is met by hydroelectricity. Congo is a net exporter of crude oil since its domestic
consumption is very low as compared to its total production.
Congo's hydrocarbon sector falls under the administrative purview of the Ministry of Oil. However, the
national oil company of Congo, Socit Nationale des Ptroles du Congo (SNPC), handles the operating
responsibilities for the regulation of all oil exploration and production activities in the country. SNPC is also
the titleholder of all exploration licenses and signs PSCs with interested companies to undertake exploration
and production activities on its behalf and ensure a constant minimum flow of revenue to the government.
In order to pave the way for greater cooperation in the field of oil exploration, officials from the the two
conuntries Uganda and Congo came together in December 2010 to sign a memorandum of understanding
(MoU), agreeing to jointly explore the oil-rich Lake Albert Rift Basin located along their common border.
Following this in July 2011, Angola and the Republic of Congo also agreed to carry out joint oil exploration
in 2013 in the Lianzi Unitisation Zone as part of the agreements signed by the two countries in September
2001 and March 2002 towards the unitization zone of 696 sq km. These efforts would certainly go a long
way in promoting oil exploration in the Republic of Congo and help in the economic development of the
country.
Congos oil industry is primarily run by foreign oil companies. The Industry is centred mainly on the coastal
city of Pointe Noire. Foreign oil companies currently active in Congo's oil sector include: Total, ENI, Maurel
and Prom, Perenco, Soco International, Chevron, P.A. Resources and Murphy Oil.

As of January 2011, Congo had proven oil reserves of 1,600 million barrels. The country produced 292,000
bopd in 2010, which made it the fifth largest crude oil producer in Sub-Saharan Africa after Nigeria, Algeria,
Angola, Sudan and Egypt and Libya. At the existing production rate, its Oil R/P ratio is 15 years. Per capita
consumption of oil in Congo was 1.15 barrels which is lower than the average per capita oil consumption of
Africa.
Republic of Congo Oil Reserves, Production and Consumption
1,600
300
Reserves (Mb)
1,580
250
1,560
1,540
200
1,520
150
1,500
100
1,480
50
1,460

('000 bpd)
350
1,620
1,440
2000
2005
Oil proved reserve
2008
2009
Oil production
2010
2011
Oil consumption
Source: ENI World Oil & Gas Review 2011
Congo's oil production is expected to peak in 2011 near 370,000 bpd due to new output from fields. The
majority of reserves in Congo are located offshore, where approximately 80 percent of the oil is produced.
In 2006, Total and Eni were the country's major oil producers accounting for 47 per cent and 22 per cent of
Congo's total crude oil production respectively. The other major oil producers in Congo accounting for the
balance 31 per cent were Perenco and Maurel & Prom.
Based on geological data, undiscovered reserves are estimated at 5.8 billion barrels on a risk-weighted
basis.
Congos crude production quadrupled, from 65,000 barrels per day in 1980 to an average of 263,000
barrels per day in 2000. Since then, production started falling, largely due to a decline in production at
mature fields and delays in bringing several new fields online. Crude oil production fell from an average of
275,000 barrels per day in 2001 to 254,000 barrels per day in 2005. However, with new fields coming
online, the situation has steadily improved, from a dip in 2008 where the oil production stood at a low
241,000 barrels it rose to 292,000 barrels in 2010. Approximately 35 to 50 percent of the oil production goes
directly to the government and is mostly sold by the national oil company, the SNPC, on the states behalf.
The rest goes to the international oil partners, based on bilateral oil sharing contracts. Congos oil sector is
experiencing a period of stable growth.
The Azurite field was discovered in 2005 and came online in August 2009. It is located at 1,372 meter of
water depth. Murphy Oil is the operator of this field and it is Murphy Oil's first operatorship in West Africa. It
is also known as the first oil project of its kind globally which employ a floating production, storage and
offloading (FPSO) vessel that also has drilling capability. The processing capacity of FPSO is 40,000 bpd of
oil and has storage capacity for 1.3 million barrels. Gross reserves of the Azurite field are expected to have
75 million barrls of oil.
In 2010 there were about 21 developed oil fields in the Republic of Congo. The major oil fields being
Antromede Marin field, Djambala field, Djambala Marin field, Emeraude field, and Ikalou field. Some of the
other oil fields include the Ikalou Sud field, the Kitina field, the kitina Sud oil field, the Kombi field, the
Kouakouala oil field, the Kouilou field, the Libondo field, the Likalala field and the Likouala field.
The Italian oil firm ENI is leading an oil sands project in the Republic of Congo, which is expected to kick off
in 2012. In an effort to explore the true potential of the countrys oil reserves, this project aims at targeting
an estimated 500 million to 2.5 billion barrels reserves of recoverable oil sands.
In 2008, Eni declared the discovery of a large oil sands deposit in Congo. It might be Africa's first large
unconventional oil development. Eni signed an energy package with Congo in April 2008, which includes
the rights to the oil sands licence. Eni may build five upgradation plants required to process the heavy oil to
make it marketable so it can be sold in international markets. Each upgradation plant is estimated to cost
around US$1.5bn and has a capacity of 40,000 bpd, with a peak production could be up to 200,000 bpd.
Natural gas reserves, production and consumption

As of January 2011, Congo had proven natural gas reserves of 130 Bcm. The majority of Congo's natural
gas reserves are in associated fields with only a small percentage occurring in non-associated fields
(offshore Banga Marine and Litchendjili Marine fields). Congo's reserves constitute the fourth largest found
in Sub-Saharan Africa behind Nigeria, Mozambique and Cameroon.
135
70
130
60
Production & Consumption (Mcm)
Reserves (Mb)
Republic of Congo Gas Reserves, Production and Consumption
50
125
40
120
30
115
20
110
10
0
105
2000
2005
Gas proved reserve
2008
2009
Gas production
2010
2011
Gas consumption
Currently, most of the natural gas output in Congo is vented or flared due to a lack of infrastructure; the
government plans to reduce the vented and flared natural gas by utilizing it for electric power production in
the future. On 31 May 2007, the Congolese government issued decree 2007-294 which established the
rules for the use and monetization of the gas and requires oil companies to propose solutions to reduce gas
flaring (target: zero flaring by 2012).
Following this decree, in April 2011 ABB won the US$ 151 million contract from ENI for a gas compression
station in the Republic of Congo. ABB will engineer, build and commission the new station and treatment
plant at the onshore M'Boundi oil field near the Atlantic coast and provide gas to power the turbines at two
nearby power plants in Djeno.
Refineries
Congo has only one refinery, Point Noire refinery operated by Congolaise de Raffinage (CORAF), with a
crude refining capacity of 21,000 bopd. CORAF is owned jointly by SNPC (60 per cent) and oil major Total
(40 per cent). The refinery has been operating at less than half its rated capacity for the last few years.
Crude oil producers have an obligation to supply the refinery's crude oil requirement, according to their prorata contribution to total domestic crude production.
In 2002, Congo's state owned downstream oil marketing company, Hydro-Congo, which had been operating
for the last 25 years with a monopoly over the sale and distribution of oil products in Congo formed the
Socit Commune de Logistique Petroliere (SCLOG) along with Chevron, Total and Tacoma/Puma-Energy
(U.K.) to transport oil products throughout the country. All four companies hold a 25 per cent stake each in
SCLOG. SCLOG has approximately 100 service and filling stations located throughout the country and
provides bottled liquefied petroleum gas (LPG), petrol, kerosene and automotive diesel.

In 1994, Congo enacted the New Hydrocarbon Code under which PSCs were introduced for the first time in
the country. In addition, the new code converted all existing upstream licenses from royalty regimes to
PSCs.
SNPC does not hold any licensing rounds and PSCs are negotiated separately with SNPC as the titleholder
of the license. Foreign companies signing PSCs with SNPC are allowed to carry out exploration and
development for a period of 10 and 20 years respectively. Congo's government receives approximately onethird of the oil produced in the country, which is sold by SNPC on behalf of the Government.
Off late a lot of oil exploration and development activities in the Repubic of Congo have resulted in a couple
of discoveries being made on the Moho-Bilondo License. Early 2011, Chevron Corp. reported some
success finding oil with the drilling of the Bilondo Marine 2 and 3 wells. These discoveries demonstrate the
immense potential of the Congo region in the field of oil exploration.
Keeping in mind the future of petroleum exploration and development in the Republic of Congo, Frances
Total is investing in a new project which is expected to start around 2015. In an effort to explore the
countrys hydrocarbon reserves, the company is planning to invest US$ 10 billion to develop the Republic of
Congos Moho Bilondo Nord which is expected to hold reserves of 300 million barrels of oil.
Congo has huge reseves of oil and gas which still need to be exploited. There is also ongoing exploration in
the Marine XIV and Mer Profonde Sud blocks in the country. This and other such exploration activities form
the basis of the countrys economic development and future growth.
Also, if country provide the level playing field for all the interested companies to enter into the countrys
hydrocarbon sector and maintain transparency, it would certainly improve the chances of more success in
terms of data acquisition, discoveries and attracting best in class experience and technologies available in
this industry globally.
Cote D' Ivoire
Basic information
Population:
21.5 million (July, 2011 est.)
Currency:
Communaute Financiere Africanine Franc (CFA Franc)
Exchange rates:
1 US$ = 454.264 CFA Fr. (Quarterly Avg. - July to Sept 2011)
GDP (PPP):
US$ 37. 02 billion (2010 est.)
GDP-per capita:
US$ 1,800 (2010 est)
Head of State:
H.E. Mr. Alassane Ouattara, President (Since 4 December, 2010)
Head of Government:
H.E. Mr. Guillaume Kigbafori Soro, Prime Minister (Since 4 April, 2007)
Overview
The presence of oil and gas was discovered in the 1970s and 80s in Cte d'Ivoire. Oil production continued
consequently, however, gas production started only from 2004. Of late, for the first time, in 2006 revenue
from hydracarbon exports, US$ 1.3 billion surpassed the revenue from agricultural exports which formed
the majority of the states earnings.
In 1975, the National Oil Operating Company of Cte d' Ivoire, Socit Nationale d'Operations Ptrolires
de la Cte d'Ivoire (Petroci) was set up with the primary mission of researching the exploitation of
hydrocarbons in the country. In 1998, Petroci was reorganized and four new bodies were created, with a
holding company PETROCI Holding a 100% State owned company responsible for the State's portfolio
management in the whole oil sector and three subsidiaries, PETROCI Exploration-Production, PETROCI
Gas and PETROCI Industry Services, where the private sector could invest up to 49% of the capital.
Petroci s role at present comprises of the expansion and conservation of the main database on Cote
d'Ivoire's oil assets, and the assumption of minority participation - usually between 5% and 15% - in the
offshore undertakings operated by global enterprises.
The majority of oil is found offshore in shallow marine areas and in deep offshore waters. The country also
has a reasonable upstream oil industry. Around 11 international companies are engaged in hydrocarbon
sector in Cote dIvoire, including CNR, Dana Petroleum (U.K.), Afren, Oil India, Pluspetrol (Argentina),
Sinopec (China), and Tullow Oil. However only 3 companies are currently engaged in production, in 4
blocks. They are: Afren (a US-based company, which acquired Devon Energy Corporations interests in
Sep. 2008), the Canadian Natural Resources (CNR), and Foxtrot. Afren has CI-11 block; the CNR has CI26 and CI-40, and Foxtrot CI-27.

As of January 2010, Cte d Ivoire had proven oil reserves of 100 million barrels. The West African States
Bank noted that crude oil production increased from 56 thousand bopd in 2005 to 89 thousand bopd in
2006. However, production since then has been plummeting and is in the range of ~50 thousand bopd
currently.
120
60
100
50
80
40
60
30
40
20
20
10
0
0
1995
2000
Oil Reserves
2005
2008
Oil Production
2009
CTE D' IVOIRE Oil Reserves, Production and Consumption
2010
Oil Consumption
The countrys oil production comes mainly from four fields: Espoir (31,000 bopd), Lion, Panthere, and
Baobab (32,000 bopd) fields. While Canadian Natural is operator of Espoir and Baobab oilfields, U.K.based Afren is operator for Lion and Panthere oilfields (earlier Devon).
Oil production in Cte d Ivoire rose from 45, 000 odd barrels per day in 2008 to 50, 000 odd barrels per day
in 2009 (representing a 12.7% increase). However, oil production decreased in the year 2010 to 39, 000
odd barrels per day. More than 80 per cent of crude oil produced is heavy and sweet.
Cte d Ivoire exported 90,000 bpd and imported 71,000 bpd of crude and non-conventional oil, natural gas
liquids, feedstocks and products in 2010.
Cte d Ivoires per capita oil consumption was a mere 0.48 barrel which is one of the lowest in the African
continent. In Year 2010, the reserve to production ratio was only 7 years and analysts opine that it needs to
improve in order for the country to survive on its own resources

As of January 2010, Cte d Ivoire had 20 Bcm of proven gas reserves. It produced approximately 1.58 Bcm
natural gas in 2010. Cte d Ivoires largest natural gas producing field is the Foxtrot field in offshore Block
CI-27, which contains more than 80 percent of total natural gas reserves in the country. The Block is
operated by Foxtrot International (24 percent interest) and partners include Petroci (40 percent), SECI; a
member of the Bouygues group of France (24 percent), and Energie de Cte d'Ivoire (Enerci); a joint
venture of Gaz de France and EdF Group (12 percent).
CTE D' IVOIRE Gas Reserves, Production and Consumption

35
1,600
30
Reserves (Bcm)
1,400
25
1,200
20
1,000
15
800
600
10
400
5
200
Production & Cosnumption (Mcm)
1,800
0
1995
2000
2005
Gas reserves
2008
2009
2010
Production and Consumption

Note: Gas production and consumption are same.
CNR operates the Espoir field, which is located offshore in Block CI-26. CNR estimates Espoir's proven
natural gas reserves to be 5 Bcm. CNR announced that development of the West Espoir field began in mid2005, with first production online in July 2006. CNR holds 58.7 percent interest in the block and is joined
with partners Tullow Oil (21.3 percent) and Petrosi (20 percent).
At current levels of production, the country has 13 years as reserves to production ratio and it needs to
replace reserves apace to improve its R/P ratio. Additionally, it also needs EOR techniques to improve its
production from its existing fields.
Oil Refining
Cte d'Ivoire's sole refinery, the SIR (Societe Ivoirienne de Raffinage) is a simple refinery and, has a
refining capacity of 8, 0000 bbl/d. The government owns approximately 47.3 percent (Socit Nationale
d'Operations Ptrolires de la Cte d'Ivoire) with the other major shareholders being, Total (25.4 percent),
Shell International (10.3 percent), ExxonMobil Cote d'Ivoire (8.0 per cent), the government of Burkina Faso
(5.4 percent), and ChevronTexaco (3.7 percent). An oil pipeline connects the SIR refinery to the Lion and
Panther fields. A petroleum products depot, adjacent to SIR, stores petroleum products for domestic use as
well as for export. The depot is owned by the Socit de Gestion des Stocks Petroliers de Cte d'Ivoire
(Gestoci) and supplies products to Mali, Burkina Faso, Niger and Chad. Gestoci also operates fuel depots
in Bouake and Yamoussoukro.
Egypt
Basic information
Population:
82,079,636 (July 2011 est.)
Currency (code):
Egyptian pound (EGP)
Exchange rates:
EGP per US dollar 5.395 (Quarterly Avg. July-September 2011)
GDP-per capita (PPP):
US$ 6,200 (2010 est.)
Head of State:
President (vacant)
Head of Government:
H.E Essam Abdel Aziz SHARAF, Prime Minister
Overview
The oil and gas industry is a significant contributor to Egypts economy, contributing approx 15% of GDP
and representing one of the countrys four main sources of foreign exchange and accounting for over 50%
of total export revenues in 2008 (source: afdb.org). Egypt holds the third largest gas reserves in Africa and
is currently the continent's second largest gas producer after Algeria. The country began its exports of LNG
in 2005, with the commissioning of its first export terminal at Damietta.
Though the first oil was found in 1869, the large scale production gained momentum only by 1962, with
formation of Egyptian General Petroleum Corporation (EGPC), the national oil company. It became the
major operator through JVs with foreign companies. It has total control in all areas of the Egyptian
petroleum sector undertaking activities such as exploration, oil and gas production, refinement,
transportation and construction of new plants. The General Petroleum Company, the exploration subsidiary
of EGPC, Egyptian Natural Gas Holding Company (EGAS) and Ganoub El Wadi Petroleum Holding
Company (Ganope) (www.ganope.com) conduct bid rounds to offers oil and gas exploration blocks. In
October 2010, GPC launched its first round with five onshore blocks and two offshore blocks on offer. In
the same year, Ganope in its seventh round of bidding invited bids for seven onshore blocks. Recently,
EGPC launched international bid round 2011 for 15 exploration blocks in the Gulf of Suez, Eastern Desert,
Western Desert and Sinai sedimentary basins with the acreage encompasses more than 18,000 square
kilometres. Bid closing date for the same is 30th January 2012.
Egypt's petroleum sector attracted ~ US$ 4.67 billion foreign direct inflows in the fiscal year 2009-10
(source: African economic outlook 2011). In FY 2010-11, exports of petroleum increased by ~ 18% year-onyear to US$ 12.14 billion while imports increased by ~15% to reach US$ 5.9 billion.
In 2001, the Egyptian government formed a new state-owned entity to manage the natural gas sector,
Egyptian Natural Gas Holding Company (EGAS), by separating EGPC's gas assets and transferring them
to EGAS.
In addition to its significance as a major gas producer, Egypt has strategic importance because of its
operation of the Suez Canal and Sumed (Suez-Mediterranean) pipeline, two routes for export of Persian
Gulf oil. The 320-kilometre long pipeline transports oil from the Persian Gulf region to the Mediterranean
and has a capacity of 2.4 million bopd. It is owned by the Arab Petroleum Pipeline Company (APP), a JV
between Egypt (50 %), Saudi Arabia (15 %), Kuwait (15 %), the U.A.E. (15 %), and Qatar (5 %).

As of January 2011, Egypt's proven oil reserves stood at 4500 million barrels, or 0.3 per cent of world
reserves. With an average crude oil production rate of 736 thousand bopd in 2010, with country's Oil R:P
ratio at ~17 years, not even meeting the average consumption of 757 thousands bopd for the same year.
Egyptian oil production comes from five main areas: the Gulf of Suez, the Nile Delta, the Western Desert,
the Eastern Desert, and the Mediterranean Sea.
Reserves (Mb)
Egypt Oil Reserves, Production and Consumption

1600
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
1400
1200
1000
800
600
400
200
0
2001
2002
2003
2004
2005
Oil proved reserve (Mb)

Oil consumption (Thousand/bopd)
2006
2007
2008
2009
2010
Oil Production (Thousand/bopd)
Source: ENI World Oil & Gas Review/BP Statistical Review 2011
Egypt's largest oil producer is the Gulf of Suez Petroleum Company (Gupco), a JV between BP and EGPC.
Production from the Gupco fields, with most wells in operation since the 1960s and 1970s, has fallen in
recent years. Gupco is attempting to slow the natural decline in its fields through significant investments in
enhanced oil recovery (EOR) as well as increased exploration.
Egypt's second largest oil producer is Petrobel, which is a JV between EGPC and Eni. Petrobel operates
the Belayim fields near the Gulf of Suez and is also undertaking an EOR program to stem declining
production.
Other major crude oil producers in Egypt include Badr el-Din Petroleum Company (EGPC and Shell), Suez
Oil Company (EGPC and Deminex), and El Zaafarana Oil Company (EGPC and BG Group).
Exploration and Licensing

Gas exploration activities started in Egypt in early sixties in the Mediterranean, Nile Delta and Western
Desert areas. The major discoveries include Abu Madi field- the first onshore gas discovery in the Nile Delta
in 1967, the Abu Qir field- the first Offshore Gas Discovery in the Mediterranean in 1969. Later the
exploration activities were carried out in the Onshore Delta, Offshore Mediterranean and the Western
Desert areas. The intensive exploration campaign started in 1995 in the Mediterranean Sea and the Nile
Delta areas, as a result there was substantial increase in the discovered gas reserves in the country.
Since the establishment of EGAS in August 2001, 26 agreements were signed with 30 international
petroleum companies. The minimum financial expenditure planned is USD 2,537 Million with a total of 132
wells to be drilled until 2018 and the total acreage area is 76200 Km 2.
In FY 2008-09, Ganope signed five concession agreements with international companies, bringing total
number of signed agreements to 15. In addition to this, Ganope is jointly supervising (7 EGPC) concession
agreements, bringing the total number of concession agreements to 22. Out of five agreements signed
three were signed with Gujarat State Petroleum Corporation, India for the three offshore blocks.
In October 2011, BP Egypt announced the Salmon gas discovery, its third gas discovery in the North El
Burg Offshore Concession, Nile Delta. This discovery highlights the great potential of the shallow reservoirs
within the Nile Delta. Also, in the same year, following majors had announced the hydrocarbon discoveries
in Egypt including Apache corporation in Western Desert, Kuwait Energy Company in Western Desert,
EGAS in Nile Delta and Mediterranean, RWE Dea Egypt in North El Amriya concession and Dana Gas in
Nile Delta.
Refineries
Egypt's ten refineries have a combined crude oil processing capacity of 975,000 bopd, making it the largest
holder of refining capacity in Africa. The largest refinery is the 146,300 bopd El-Nasr refinery at Suez, which
is owned by EGPC and operated by its subsidiary, the El Nasr Petroleum Company. (source: EIA)
El Mex refinery in Alexandria is operated by the Alexandria Petroleum Company. It has a capacity of
100,000 b/d, and 22,500 b/d of vacuum distillation capacity. In addition it has a Lube Baseoil
manufacturing plant and a Bitumen unit.
Cairo Petroleum Refining Company in Mostorod, near Cairo. This refinery has a capacity of 160,000b/d.
The El-Nasr Petroleum Company near Suez has a capacity of 146,300 b/d. It has a 35,000 b/d
Hydrocracker and a Bitumen unit.
The Amiriyah Petroleum Refining Company in Alexandria has a capacity of 78,000 b/d, and a 15,000
b/d vacuum distillation unit. It has a 9,000 b/d Alkylation unit, and a 2,000 b/d lube baseoil
manufacturing unit.
The Suez Petroleum Processing Company near Suez has a capacity of 66,400 b/d, and a 9,500 b/d
vacuum distillation unit. It has a 16,400 b/d Delayed Coker, and a 1,000 b/d Lube Baseoil unit.
The Asyut Petroleum Refining Company near the center of Egypt has a capacity of 90,000 b/d with two
atmospheric distillation columns of 2.5 mmtpa and 2.0 mmtpa capacities. This simple refinery has a
small Naphtha Reformer, and is designed to supply product to the central and southern regions.
The Tanta refinery near Port Said is operated by the Cairo Petroleum Refining Company. It has a
capacity of 40,000 b/d. Other than a small Hydrotreating unit it has no upgrading capacity.
The El-Nasr Petroleum Company operates the small Wadi Feran refinery on the Red Sea in the Gulf of
Suez. It has capacity of 10,000 b/d, and was designed to service operations related to the Suez Canal.
The Middle East Oil Refinery (MIDOR) was completed in 2002 in the Amiriyah Free Zone, Alexandria. It
has a capacity of 100,000 b/d, and has a 35,000 b/d Hydrocracker, a 22,800 b/d Coker, and a 10,700
b/d Isomerisation unit. This is the only privately owned refinery in Egypt. It was originally a joint
Egyptian/Israeli venture, but the Israeli shareholders sold out to the Egyptian National Bank in 2001.
Egypt's refining sector is set to increase significantly, with the government planning to increase production
lighter products, petrochemicals, and higher octane gasoline through expansion expansion of refining
capacity by over 600,000 bbl/d by 2016 and upgradation of existing facilities, with at least three new
projects being planned at present, including a new fuel oil cocking complex at Suez of 2.75 mmtpa capacity
for the production of petroleum products. Other major projects by GANOPE company include a refinery of
2.4 mmtpa capacity to transform fuel oil surplus into high valued distiller at Asyut, Gahdam and a modular
refinery project of small capacity at North of Aswan Governorate.

As of January 2011, Egypt had proven gas reserves of 2200 Bcm, or roughly 1.2 per cent of the world's
total gas reserves. It produced 61.3 Bcm, and consumed 45.1 Bcm of natural gas in 2010. The country's
gas R:P ratio was ~36 years. To increase the investments in the deepwater offshore, Egyptian Govt has
revised the pricing policies so as to benefit the producers incurring high cost of production in these areas.
The price negotiations for the exported natural gas with Israel and Jordan is underway, the new prices will
benefit the Egyptian economy.
In March 2011, BP President met Egyptian prime Minister to study the possibility of erecting a mega natural
gas project in Egypt with total investments reaching $11 billion, over 5 years time period.
Egypt Gas Reserves, Production and Consumption
Chart:2500
Egypt Gas Reserves, Production and Consumption
120000
100000
Reserves Bcm
2000
80000
1500
60000
1000
40000
500
20000
0
2001
2002
2003
Gas proved reserve (Bcm)
2004
2005
2006
2007
2008
Gas Production (Mcm/year)
2009
2010
Gas consumption (Mcm/year)
Egypt's gas sector has expanded rapidly in the last decade, with production increasing over 143 per cent
between 2001 and 2010. It is the third largest producer of natural gas in Africa after Nigeria and Algeria.
Pipeline exports
Egypt's first exports of natural gas commenced in July 2003, with commissioning of the Arab Gas Pipeline
project. The pipeline has a capacity of 10 Bcm/year and it exports Egyptian natural gas to Jordan, Syria
and Lebanon, In future it is expected to be extended to Europe, in a phased manner.
Natural gas exports to Israel, which had been under discussion since the mid-1990s, were finally agreed in
2005 with the signing of an agreement to establish the East Mediterranean Gas Company (a consortium of
EGPC, Merhav of Israel and Egyptian businessman Hussein Salem). The Arish-Ashkelon gas pipeline to
Israel became operational in 2008.
LNG
Egypt is the sixth largest LNG producer in the world. Currently, there are three operational LNG trains in the
country with a combined capacity of 16.8 Bcm/year. Union Fenosa's Train 1 liquefaction facility at Damietta
was the first LNG export plant to come on stream, with the first cargo shipped in January 2005. The second
LNG export project at Idku, called Egyptian LNG (ELNG), was built by BG in partnership with Petronas and
began production in March 2005. ELNG's Train 2 became operational in September 2005. Train 2 of
Damietta, with a capacity of 6.8 Bcm/year, is still in the planning stage.
Project
Export Capacity
(Bcm/year)
Idku Train 1 (ELNG)
Idku Train 2 (ELNG)
Damietta Train 1
6.8
Damietta Train 2
Total
Proposed Expansion
(Bcm/year)
6.8
16.8
6.8
Source: Petroleum Economist
Domestic demand for gas has also grown rapidly in Egypt, driven mainly by increased demand form thermal
power plants. With the development of gas transmission and distribution infrastructure, the outlook for an
increase in domestic consumption from both the City Gas Distribution and automobile segments is also
buoyant.
Equatorial Guinea
Basic information
Population:
668,225 (July 2011 est.)
Currency:
Exchange rates:
GDP (PPP):
- 0.8% (2010 est.)
GDP-per capita:
US$ 36,600 (2010 est.)
Head of State:
H.E. Brig. Gen. (Ret.) Teodoro Obiang Nguema Mbasogo, President
Head of Government:
H.E. Mr. Ignacio Milam Tang, Prime Minister
Overview
The hydrocarbon sector is the key to the economy of Equatorial Guinea and contributes approximately 90
per cent of the country's government revenue and 98 per cent of total merchandise exports. Currently
Equatorial Guinea is the fifth-largest producer of crude oil in sub-Saharan Africa..
Equatorial Guinea's oil reserves are located mainly in the hydrocarbon-rich Gulf of Guinea..The discovery of
the Zafiro field in 1995 by USbased ExxonMobil marked the real beginning of the countrys transformation.
Production at Zafiro peaked at 260,000 bopd in 2005. Oil is also exploited in two other fields operated by a
US oil company, Hess Corporation: the Ceiba oilfield, which came on stream in 2001, and the Okum
complex, where production started in 2007. Oil production peaked at an estimated 290,000 bopd in 2005,
but despite the coming on stream of the Okum complex, it declined to an estimated 268,000 bopd in 2006
07 owing to a fall in production at the Zafiro field. With reserves estimated at 1.1 bn barrels, Equatorial
Guinea could produce at current levels for another 11 years.
Regulatory and administrative control of the oil and gas sector is with the Ministry of Mines and Energy. A
Presidential Decree in 2001 created Equatorial Guinea's national oil company, GEPetrol. Following the
establishment of GEPetrol, all Production Sharing Contracts have a provision for state participation through
a GEPetrol carry in the exploration stage. GEPetrol is also responsible for the administration and promotion
of Equatorial Guinea's unlicensed acreage.
Sociedad Nacional de Gas de Guinea Ecuatorial (Sonagas) is the national gas company of Equatorial
Guinea. It was created in 2005 and has exclusive responsibility for the State's interest in all existing and
future gas related projects in the country. Sonagas' existing gas projects include a 25 per cent stake in the
US$ 1.4 billion Equatorial Guinea Liquefied Natural Gas (EGLNG) plant and a 10 per cent stake in both the
Bioko Methanol Plant and the Punta Europa LPG Plant.
According to the Oil and Gas Insight, Equatorial Guinea expects its oil production to increase by more than
100,000 bpd in 2012, followed by launching series of offshore projects.

As of January 2011, Equatorial Guinea's total proven oil reserves were estimated at 1,100 million barrels.
Average oil production in the same year was 274 thousand bpd, with R/P ratio of 11 years. Most of the oil
produced is exported, as it has very insignificant oil consumption. Majority of its production is exported to
North American, European, and Asian markets, with major destinations of US, Spain, China, France, and
Italy. In 2009, according to the EIA, the United States imported around 90,000 bpd (more than 30 per cent
of entire production) of crude and products. While, its domestic consumption is maintained by importing
refined products. In 2010, the country imported around 6,000 bpd, a thousand higher than in 2009. We see
Equatoguinean production depleting while consumption is rising substantially in the years. Country requires
improving oil production from the existing fields and through new field development. The majority of oil and
gas of the country is confined to three oil fields in the country.
Equatorial Guinea Oil Reserves and Production

1220
400
1200
350
300
1160
250
1140
200
1120
150
1100
Thousand (bpd)
Reserves (mb)
1180
100
1080
50
1060
1040
0
1995
2000
2005
Oil proved reserve
2008
2009
2010
Oil production
To add, according to the EIA's Short-Term Energy Outlook, the countrys oil production is estimated to
remain fairly similar through 2012. However, new field developments are on its outline but no major
production is expected before 2013.
The countrys oil production originates almost entirely from the Zafiro, Ceiba, and Okume fields, while
condensate production originates from the Alba field.
Zafiro: The Zafiro oil-field, operated by ExxonMobil (71.25 per cent), contributes 73 per cent of the country's
oil production. In 2006, Zafiro produced approximately 260 thousand bopd. Other shareholders in the field
are Devon (23.75 per cent), and GEPetrol (5 per cent). ExxonMobil is continuing efforts to increase the
field's production capacity and a drilling program is currently underway. Oil produced from Zafiro is low in
sulphur content with an API ranging between 3438.
Alba: Equatorial Guinea's third largest producing field is located in Bioko shelf and currently produces oil
and gas at the rate of 95 thousand boepd. Efforts are on to increase oil production by pumping gas back
into the field.
Ceiba and Okume Complex: The country's second largest oil-field is in Block G located in the Rio Muni
shelf. Ceiba is operated by Amerada Hess, with Tullow Oil and GEPetrol as partners. Current production
rate from the field is about 40 thousand bpd.
In late-2006, first oil production from Equatorial Guinea's fourth development area in the Okume Complex
was also achieved. The four-field development plan for the complex was expected to peak at a production
rate of 60 thousand bpd by 2008, which was likely to increase total production in the country to 420
thousand bpd.
Equatoguinean Oil and Gas Industry: A Snapshot

Organization
GEPetrol; Sonagas (NOCs)
Major Oil/Gas Ports
Luba Port and Malabo Port
Foreign Company Involvement
Hess, Marathon Oil, ExxonMobil, Noble Energy
Major Oil Fields
Zafiro, Okume Complex, Ceiba (40,000 bbl/d), Alba (70,000 bbl/d

of condensates)
Major Natural Gas Fields
Alba
Source: EIA/Oil and Gas Insight

As of January 2010, Equatorial Guinea had proven gas reserves of 130 bcm. Its gas production started in
1991 with the commencement of oil production from the Alba field. Initially, most of the gas was being flared
or re-injected in the absence of any commercial application. Following the completion of a methanol and
power plant at Alba in 2001, about 3.5 MMscmd was being consumed for methanol and power production.
The gas production has picked up after 2006, and is presently estimated at 6.6 bcm, compared to 1.3 bcm
in 2005 and 28 mcm in 2001.
Equatorial Guinea Gas Reserves
140
Gas Reserves (bcm)
120
100
80
60
40
20
0
1995
2000
2005
2008
2009
2010
According to the BMI, is expected that Equatorial Guineas gas production will reach to 6.8 bcm in 2015 and
7.5 bcm in 2020 while gas consumption would be 2.1 bcm and 2.6 bcm in 2015 and 2020 respectively.

Although awards of acreage have taken place on the basis of license bidding rounds, a number of awards
in Equatorial Guinea have also been granted on negotiated basis. A deepwater license round was held in
1998, with the Ministry of Mines and Energy announcing the first award of acreage in 2000. This was
followed by the award of two licenses in 2004. In 2006, GEPetrol launched another license round which
closed in July 2007 with invitations being issued to six companies to negotiate PSCs for seven blocks,
including two offshore blocks to ONGC Videsh limited (OVL). The award of these blocks is subject to the
successful conclusion of PSC negotiations and the ratification of the PSC by the Government of Equatorial
Guinea.
Blocks were awarded to Indias Oil and Natural Gas Corporation, the Nigerian National Petroleum
Corporation, and other independent producers. Prior to the licensing round, PetroSA, the South African
state oil company was offered three blocks.
Oil Refining
Equatorial Guinea has a small downstream oil industry that uses imported products. Getotal, owned equally
by Total and Equatorial Guinea, is primarily responsible for the distribution of petroleum products, and the
sole player in the industry. In 2010, it was announced the plans for a low complexity modular refinery of
20,000 bpd to be located in Rio Muni. However, the project has still been instilled at its design phase. In
September 2011, Eq. Guinea has announced its intention of going ahead with this refinery and it is
expected that the construction will start soon. Mbini Refinery Project would be owned by The Ministry of
Mines, Industry and Energy of the Republic of Equatorial Guinea. KBR is providing a conceptual study and
associated project management services for this refinery.
LNG
In May 2007, gas production tripled to about 10.5 MMscmd with Train 1 of the Equatorial Guinea LNG
(EGLNG) plant coming on stream. The commissioning of the LNG plant, operated by Marathon at Punta
Europa, has been a welcome step towards commercialization of the country's gas reserves.
Train 1 of EGLNG has a capacity of 3.8 MMTPA. Gas for the project is sourced from the Alba field, which is
also operated by Marathon. Although the beginning of LNG exports is a major step towards transforming
the country into a regional gas hub, the decision on whether to double the capacity of the plant by installing
Train 2 will not be taken until 2008, when the Joint Venture is expected to have tied up the necessary
regional gas supplies, primarily from Nigeria and Cameroon to supplement existing Equatorial Guinea gas
sources.
Equatorial Guinea exports LNG to Brazil, Chile, Greece, Italy, China, India, Japan, Taiwan and South
Korea. In 2010, country exported 5.16 bcm of LNG, out of that about 36 per cent to South Korea.
With this level of gas reserves and production, Equatorial Guinea is planning second LNG export train,
where the construction will start by 2016.
Ethiopia
Basic information
Population:
83,000,000 (July 2011 est.)
Currency:
Ethiopian Birr (ETB)
Exchange rates:
1 US$ = 16.8954 ETB (Quarterly Avg. - July to September 2011)
GDP (PPP):
8% (2010 est.)
GDP-per capita:
US$ 1,000 (2010 est.)
Head of State:
President Girma Woldegiorgis (since 8 October 2001)
Head of Government:
Prime Minister Meles Zenawi (since August 1995)
Overview
Ethiopia shares similar paleogeography and geology with the Arabian Penensula to the northeast and
eastern and with the Sudan to the west. Petroleum exploration in Ethiopia started during 1950s which was
by and large irregular and faced risks such as global fluctuations in prices and government instability in
Ethiopia.
The Government of Ethiopia (GoE), through the Ministry of Mines and Energy, is actively seeking
investment and exploration in the oil and gas sector. Exploration is taking place in several areas of the
country with favourable geology. Ethiopia is gifted with energy resources such as coal, biomass, solar
energy, wind energy and natural gas and is not a big consumer of petroleum fuels because major portion of
its population lives in rural areas. So if any oil or gas is discovered in future, it would mainly be for exports.
Such exports would have a positive impact on Ethiopias economy as it will provide foreign exchange
revenue to the Government of Ethiopia (GoE). Even licensing and exploration will have a positive monetary
impact through signature bonuses and other fees. This will contribute to the economic development of the
country.
There is a possibility of significant oil and natural gas resources in six sedimentary basins throughout the
country: Mekele Basin (Tigray); Ogaden Basin (Somali State); Abay Basin (northern Oromo and southern
Amhara); Metema Basin (Amhara); Gambella Basin (Gambella); and the Ethiopia Rift Valley. The GoE has
undertaken various geothermal, hydroelectric energy, wind energy and biofuel projects which would reduce
the countrys dependence on petroleum fuels.
Some of the Companies in the upstream petroleum sector in Ethiopia are as follows;
Pexco East Africa B. V
Africa Oil Corporation
PetroTrans Company Limited
SouthWest Energy
Calvalley Petroleum
Afar Exploration
Epsilon Energy
Tullow Oil Company
Falcon Petroleum
Some of the Companies in the downstream sector in Ethiopia are as follows:
National Oil Company (NOC)
Total Ethiopia
Oil Libya Ethiopia
Yetebaberut Biherawi Petroleum Company (BP)
Dalol Oil
Nile Petroleum
Gion Gas

60
50
'000 BPD
40
30
20
10
0
1995
2000
2005
Oil Imports
2008
2009
2010
Oil Consumption
Source: World Oil and Gas Review 2011
The oil consumption stood at 54 thousand barrels per day in the year 2010 and figure of imports in the
same year were 47 thousand barrels per day. Per Capita oil consumption of the country in the year 2010
was 0.23 barrels whereas it was 1.30 barrels for the entire Africa during the same year. There has been a
continuous rise of both imports and consumption of oil on an year-on-year basis since 2008.

At present, the country has 13.31 billion cubic meters (bcm) of Natural Gas Reserves.
Oil Refining
Ethiopia had one refinery at Assab and it used to import crude oil and refine it at Assab until 1998.
However, due to the high service charge Ethiopia closed the refinery and totally relied on imports to meet its
petroleum requirements. With the development of oil in Sudan, Ethiopia started importing oil from Sudan in
January 2003 which, under COMESA, was not subject to tariffs. The GoE is planning to build an oil refinery
in eastern part of Ethiopia.
Ethiopia annually imports more than 1.5 million tons of petroleum at a cost of US$ 2 billion.

In the 1972, US company Tenneco performed geologic survey and drilling work and made two discoveries
of gas in the Ogaden and left Ethiopia after the Communist revolution. Then Soviet Petroleum Exploration
Expedition (SPEE) entered the Ogaden and drilled several wells, especially in the Calub and Hilala fields
and departed Ethiopia in 1991. In the early 1990s, two US companies, Hunt Oil and Maxus Energy entered
the Ogaden Basin. Maxis departed after two years. Hunt stayed for about 8 years and drilled one well
which resulted in gas show.
In 1990, the GoE changed the way they partnered with oil and gas companies. Instead of conducting
exploration activities by the government, the exploration companies started entering into production sharing
agreements and joint study agreements.
In June 2003, the Ethiopian government signed an oil exploration agreement with Petronas for 15,800
square kilometre area in Gambela block, in the western part of the country. Petronas and GoE, also
collaborated on studies in the Ogaden, and Petronas was granted 8 blocks, including the Calub and Hilala
natural gas discoveries.
Lundin Petroleum AB in the year 2006 signed a production sharing contract (PSC) for Blocks 2 and 6 in
Federal Democratic Republic of Ethiopia. Lundin Petroleum signed the PSC with the Minister of Mines and
Energy of the Federal Democratic Republic of Ethiopia in Addis Ababa. The PSC covers Blocks 2 and 6
located in the onshore Ogaden Basin.
In November 2009 Ethiopian government announced that it will offer 14 O&G exploration permits over the
next three years which is from 2010 to 2012.
Latest/ongoing exploration projects:
Companies currently prospecting for oil ang gas in the country include Oklahoma-based Afar Exploration
Co.; Ontario-based Epsilon Energy Ltd.; Calgary-based Calvalley Petroleums Inc.; UK-based Falcon Oil &
Gas Ltd.; Malaysia- based Pexco Inc.; Hong Kong based SouthWest Energy Ltd.; Vancouver-based
Africa Oil Corp.; and London-registered Tullow Oil Inc.
Adigala Area: Africa Oil completed 500 km of 2D seismic acquisition in the Adigala area during the fourth
quarter of 2009.
Africa Oil Corp. signed a definitive agreement with the Government of Ethiopia to jointly study the Main
Central Ethiopian Rift Valley Block in November 2010.
Africa Oil Corp. signed a Farmout Agreement and Joint Venture Agreement with Agriterra Ltd. (formerly
White Nile Ltd.) to acquire an 80% participating interest and operatorship of the South Omo Block in
Ethiopia in June 2010.
As of July 2011 Ethiopia signed agreements with nine international companies that are exploring and will
explore for gas and oil deposits across the country. The Ministry of Mines signed 15 petroleum production
sharing agreements and one joint survey agreement with the eight companies. As a result of previous
exploration by the ministry fand international oil companies natural gas discoveries in Calub and Hilala were
made in the eastern part of the country, other deposits of natural gas was discovered recently in the
Genale region.
Ogaden gas fields:
The Ministry of Mines awarded the Calub and Hilala natural gas fields and eight exploration blocks found in
the Ogaden basin to a Chinese oil and gas company, PetroTrans Company in July 2011 which were
previously held by the Malaysian oil and gas giant Petronas.
Ministry of Mines and PetroTrans signed a petroleum development agreement and four exploration and
production sharing agreements at the Sheraton Addis. The petroleum development agreement will enable
PetroTrans to develop the natural gas reserves in the Calub and Hilala localities found in the Somali
Regional State. The gas fields, which have an estimated reserve of four TCF (trillion cubic feet), are found
1200 km south east of Addis Ababa. The total area of the exploration blocks is 93,000 sq.km while the
Calub and Hilala gasfileds cover 283 sq.km.
According to the ministry, the company will pay the Ethiopian government USD 130 million in a moratorium
basis and will invest up to US$ 4 billion dollars on the gas development project. PetroTrans will pay to the
government 30 per cent income tax.
The company hopes to finalise the project within 36 months. A study has to be undertaken to determine
where to build the gas treatment plant. The company also plans to conduct a survey to identify the route of
the pipeline. PetroTrans has been working with two renowned Chinese oil companies - SinoPec
International and CNPC.
Regulatory framework
The upstream sector of oil and gas industry in Ethiopia is regulated by the Ministry of Mines of the Federal
Democratic Republic of Ehiopia. The downstream sector is under the Ministry of Water and Energy. License
is ratified by the Council of Ministers. The Ministry of Mines represents the Government of Federal
Democratic Republic of Ethiopia to sign Petroleum Production Sharing Agreements (PPPSAs) and
administer regulatory activities.
Gabon
Basic information
Population:
1,576,665 (July 2011 est)
Currency:
Communaute Financiere Afrocaine Francs (CFA Franc)
Exchange rates:
1 CFA Franc = US$ 454.212 (Quarterly Avg. - July to Sept 2011)
GDP (PPP):
GDP-per capita:
US$ 14,500 (2010 est.)
Head of State:
H.E. Mr. Ali Ben Bongo Ondimba, President (Since 16 October, 2009)
Head of Government:
H.E. Mr. Paul Biyoghe Mba, Prime Minister (Since 15 July, 2009)
Overview
Gabon has a significantly higher per capita GDP than other countries in the sub-Saharan region. Oil plays
an important role in the country's economy, contributing 80 per cent of export revenues, 65 per cent of
government budget, 50 per cent of GDP and 75% of its export earnings.
Gabon's Oil Ministry, The Ministre des Mines, de l'nergie et du Ptrole regulates the country's upstream
oil and gas industry. The day-to-day responsibility for the upstream sector is with the Direction Gnrale
des Hydrocarbures (DGH). Although the country has a national oil company, Socit Nationale Petrolire
Gabonaise (SNPG), SNPG is not actively involved in development projects.
In addition to providing investment incentives, Gabon has been striving towards greater transparency within
its oil industry. In 2004, Gabon created an online oil databank enabling users to obtain energy information
dating back to thirty years. Government officials anticipate that the databank will lead to greater
transparency in the oil sector. Additionally, Gabon joined the Extractive Industries Transparency Initiative
(EITI) to increase transparency in oil and mining payments received from companies.
Though the discovery of hydrocarbon reserves were made in early the 20th century, the first commercial oil
discovery in Gabon was made in 1956 by Elf and for the next twelve years, production centered on the Elf
onshore fields near Port Gentil. In later years, Elf and Shell operated on different onshore and offshore
fields in Gamba, Anguille, Torpille, and Grondin.
In 2010, Gabons per capita oil consumption was second highest in Africa at 5.74 barrels (after Libya) which
is more than four times than the average per capita oil consumption of Africa continent. Countrys per capita
consumption of natural gas was at 119 cu. Meters, slightly higher than the average per capita gas
consumption of Africa at 112 cu. meters.

As of January 2011, Gabon had proven oil reserves of 2000 million barrels, which makes it the country with
the sixth largest oil reserves in sub-Saharan Africa. In 2007, it produced an average of 233 thousand bopd
with an Oil R/P ratio of 37 years. Oil production in 2006 was 37 per cent lower than its OPEC quota of 371
thousand bopd due to the declining profile of the country's maturing fields and also because of lack of new
fields coming online. As of 2010, Gabon had an Oil R/P of 22 years and an Oil Production: Consumption
ratio of 10.34.
Gabon Oil Reserves, Production and Consumption

3,000
350
2,500
Reserves (Mb)
300
2,000
250
1,500
200
150
1,000
100
500
50

('000 bopd)
400
0
1995
2000
2005
Oil proved reserve
2008
2009
Oil production
2010
2011
Oil consumption
The Rabi-Kounga field is Gabon's largest oil-field and has proven oil reserves of 440 million barrels, which
is about 20 per cent of the country's total proven oil reserves. It is operated by Shell and produces 150
thousand bopd. The second largest field is the Shell operated Gamba-Ivinga with an average production of
10-15 thousand bopd. Additional reserves are located in the offshore Tchatamba Marin and Etame fields.
With internal consumption of only 24 thousand bopd, Gabon exports the majority of its crude oil to the
United States, with the remaining exports going to Western Europe and Asia, especially China and Japan.
Most of this crude oil has gravities in the 300 to 350 API range, with a small amount of heavier, 250 API
output. Gabon's primary crude exports are the Rabi Light (340 API) and Mandji Blend (300 API and 1.1 %
sulphur) streams.
According to BMI forecasts, it is expected that Gabons oil production would decline to 217,000 bpd after
reaching 250,000 in 2013.
Gabons proven oil reserves sharply declined from about 2,500 million barrels in year 2005 to 2,000 million
barrels in 2011. It is required to replace reserve quickly to improve its R/P ratio and also use secondary and
tertiary technologies to improve the production from fields where production has declined.

As of January 2011, Gabon had proven natural gas reserves of 29 bcm, which was lower from 33 bcm in
year 2000. The gas production was 0.18 bcm during the 2010 and Gas R/P ratio of about 161 years.
Currently, about 20 per cent of production is being re-injected to support oil production and about 75 per
cent is being flared. The balance 5 per cent is supplied to a handful of consumers in the Port Gentil area,
including the Sogara refinery.
Gabon Gas Reserves, Production and Consumption
180
Reserves (Bcm)
30
160
25
140
20
120
100
15
80
10
60
40
20
Production & Cosnumption

('000 Mcm)
200
35
0
1995
2000
2005
Gas proved reserve
2008
2009
Gas production
2010
2011
Gas consumption
Note: Gas production and consumption are same
In an effort to start proper gas production facility, the Gabonese government awarded Total Gabon the
country's first natural gas exploration license under a PSA in 2004. The exploration area is located between
the capital, Libreville and Port Gentil. Any natural gas discovered will be used to enhance oilfield
performance or for electricity production at Port Gentil.
Recent Developments
Reclamation was based on a 3.4% growth in oil production in 2010 with the opening of new oilfields, a
13.5% increase in oil export prices and ongoing efforts to extract borderline deposits. The Anglo-Dutch
company Shell in the last quarter of 2010 brought into production an oilfield at Koula with projected reserves
of 64 million barrels, which is anticipated to enhance the domestic output by about 10%.
Gabon has to look into developing its gas fields and concentrate on its monetization and also find the ways
to reduce gas flaring it so that environment can be saved.
Oil Refining
The Sogara refinery at Port Gentil is Gabon's only refinery and has a crude distillation capacity of 25,000
bbl/d. Satrted in 1967, the refinery is a simple refinery with a low complexity.The refinery is designed to use
Mandji Crude Oil which is being supplied to the refinery through pipeline from the largest oil production field
in Gabon.
Societe Gabonaise de Raffinage, Gabons sole oil refiner, increased production to more than 925,000
metric tons in 2010 from 580,000 tons in 2009, registering a jump of about 60 per cent. It is expected that
the refinery would become profitable soon, which recorded loss of about US$ 67 million in 2009.
Sogara is jointly owned by the Gabonese government (25 per cent) and a number of international firms, led
by oil major Total (44 per cent) and Shell (17 per cent). The rest is owned by fuel distributor Petro Gabon,
Italys Eni SpA and Portofino Assets Corp.
It is expected that the refining capacity of Gabon would reach to 30,000 bpd in 2014 as forecasted by BMI.
Gabon has offered a number of exploration blocks to international oil companies. In the initial years, the
country focused on smaller independent companies and in later years, also awarded blocks to bigger oil
players, especially Shell and Total.
In 2002, Gabon's Oil Ministry awarded the following PSAs:
Akoum Permit to Energy Africa Gabon SA (EAGSA)
Oguevi block to Perenco
Baudroie/Merou oilfields to Total
In 2003, a PSC was signed with Tullow Oil for the Kiarsseny Marin Area. In 2004, CNPC signed an
exploration agreement and in the latest licensing round held in 2007, Gabon offered oil blocks to Shell,
Total and others to tap unexplored acreage in deep and ultradeep waters.
In 2007, Total Gabon, a JV between Total (58 per cent) and Gabon (25 per cent), was allowed to extend its
concessions, operating licenses and crude oil transport installations, which were due to expire on June
2007, for a further 25 years.
Gabon launched 10th Licensing Round in 2010, the first round to focus on some of the country's key deep
water acreage. CGGVeritas worked directly with the Ministry and has acquired over 13,000km of seismic
data to help realize the potential of this under-explored region. There were 42 deep and ultra deepwater
offshore blocks were on offer in this round.
However,Gabon's 10th Licensing Round was cancelled, and after that blocks were offered through direct
negotiations.This round was to offer 42 offshore blocks covering approximately 118,000 square kilometres,
with a focus on prospective deepwater pre-salt plays. However, in mid-October it was announced that the
Licensing Round had been postponed indefinitely citing the need for 'security and environmental
guarantees' in response to the Deepwater Horizon disaster in the Gulf of Mexico. The Licensing Round had
created considerable interest as it was seen as a rare opportunity to participate in a highly prospective yet
under-explored region, with the deepwater pre-salt plays thought to be analogous to discoveries in Brazil.
In addition, to environmental concerns, the new legislation is in response to trade union demands for a limit
on the number of foreign workers in Gabons oil sector. The Government agreed in October to a 10% cap
on oil sector workers and a requirement for all executive posts to be held by Gabonese nationals.
Legislation is expected to include a two year period to allow oil companies to adjust to the 10% limit and a
six month period for the adjustment of executive positions.
In order to initiate negotiations, interested parties must first purchase data on the offered block and send a
letter expressing interest to the Minister of Oil. In addition companies will be required to demonstrate the
financial and technical capacity to explore in deepwater areas. Data is available from CCG Veritas who,
working with the ministry, has acquired over 13,000 kilometres of new seismic as well as gravity data and
seismic reprocessing covering the offered acreage.
Ghana
Basic information
Population:
23.83 million
Currency:
Ghanian Cedi (GH))
Exchange rates:
1 US$ = GH 1.43
GDP (PPP):
7.3 per cent (2008)
GDP-per capita:
US$ 1,500
Head of State:
H.E. Mr. John Evans Atta Mills, President
Head of Government:
H.E. Mr. John Evans Atta Mills, President
Overview
Hydrocarbon sector in Ghana is quite new, despite its proximity to Nigeria, one of the largest oil-producer in
Africa. The earlier efforts to extract oil and gas, in 1970s and 1980s did not bear fruit commercially and
hence despite potential, the country could not achieve significant success.
Primarily with an agricultural and gold based industry, Ghana announced its first major success as late as in
June and September 2007, when a consortium of companies comprising Kosmos Energy Ghana, Tullow
Ghana Limited, in conjunction with EO Group and GNPC announced significant discoveries in offshore
deepwater Tano/Cape Three point basins, and known as Jubilee Fields.
The Minister of Energy in Ghana has formally approved the Jubilee field Phase 1 Development Plan and
Unitisation Agreement on behalf of the Government of Ghana. The Jubilee oil fields total reserves are
estimated at between 500-1,500 million barrels and the potential for future government revenues is
estimated at around 1-1.5 billion annually. Given that oil revenues will therefore add around 30 per cent to
government income and constitute between 6-9 per cent of GDP.
Ghana Natural Petroleum Company is the Ghanaian NOC and plays a leading role in commercialization of
available Jubilee field, the key objectives for GNPC are:
GNPC hired Morgan Stanley, the investment bank, to advise on how to develop its resources most
effectively.
Ghana is certain to witness a distinct improvement in its macroeconomic fundamentals, after domestic oil
production starts in late 2010 and can replace the costly oil imports. It is estimated that by 2011, real GDP
growth could exceed 10% and deficits on the current account and fiscal account will narrow markedly.

The Jubilee Field was discovered in July 2007 with the Mahogany 1 well in the West Cape Three Points
Block operated by Kosmos Energy Ghana HC. Two month later, the discovery was appraised with the
Hyedua 1 well in the Deepwater Tano Block which is operated by Tullow Oil Ghana Limited. The Jubilee
Field is located offshore in the western region of Ghana. It straddles two blocks, the West Cape Three
Points block and the Deepwater Tano block. The field is 75 km south-southeast of the Cote DIvoire and
Ghana border and is 132 km southwest of the port city of Takoradi. Water depth ranges from 1,000m to
1,700m within the Jubilee Unit Area.
Appraisal of Jubilee field has indicated the reserves of approximately 800 million barrels with an upside
potential of 3 billion barrels, however the country has official proven oil reserve of only 15 million barrels.
The new field will be developed via a Floating, Production, Storage and Offtake vessel FPSO) and will
deliver a plateau oil rate of 120,000 BOPD, with water injection capacity of 230,000 BWPD and gas export
and injection capacity of up to 4.53 MMscmd (160 mmscfd).
The operators of Jubilee field say that there are 1.2 billion barrels of oil in that field alone. Along with the
Jubilee field the West Cape Three Points block consists of: Mahogany east, Odum, Banda and Banda
deep. The Cape three points block consists of Ntome, Tweneboa and Enyenra. Within these producing
blocks there are also a number of prospects. In addition there are other blocks (i.e. the Keta block)
undergoing exploration.
700
70
600
60
500
50
400
40
300
30
200
20
100
10
Production&Cosnumption('000BPD)
0
1995
2000
2005
OilReserves
2008
2009
OilProduction
2010
2011
OilConsumption
Current consumption of petroleum products is in the region of 950,000 tons per annum. Increasing power
demands by industry and domestic consumption and a need to reduce the reliance on hydroelectric power
is not only fuelling the search for oil and gas but also has set in motion projects relating to the importation of
gas via pipeline from Nigeria and Cote d'Ivoire. On the other hand, oil production
Oil production and consumption (Forecast)

300
250
'000BPD
200
150
100
50
0
2013
2014
2015
2016
OilProduction
2017
2018
2019
2020
OilConsumption
Source: BMI
According to the forecast by BMI, Ghana is expected to produce 120,000 bpd crude oil which would peak in
2016 at 250,000 bpd and further decline to 120,000 bpd by 2020. Oil consumption in Ghana is projected to
reach 82,000 bpd in 2013 and 118,000 bpd in 2020 at the CAGR of 5.3%.
Ghanas energy sector is emerging and is likely to grow continually. Initial production is at 120,000 barrels
per day and is slated to grow to over 200,000 barrels per day over the next two years.
Refinery
Ghana has one state-owned refinery in the city of Tema, near Accra. The Tema refinery is operated by the
Tema Oil Refinery Corporation. (TOR) has an operating capacity of 45,000 barrels per day running on
crude imported from Nigeria.
With the discovery of oil and gas in Ghana, TOR is planning to expand and improve its existing
infrastructure with the construction of a 120,000 barrels a day stand-alone Crude Distillation Unit. The
expansion project will ensure reliability and security of petroleum products of the countrys oil market and
also for export to the ECOWAS Sub region. TOR also proposes to explore the opportunities in
petrochemical sector.
According to BMI, by 2016, the refining capacity of Ghana is expected to increase to 245,000 bpd from the
current levels of 45,000 bpd.
Kenya
Basic information
Population:
41,070,934 (July 2011 est.)
Currency:
Kenyan Shilling KES
Exchange rates:
1 US$ = 98.36 KES
GDP (PPP):
5 per cent (2010 est.)
GDP-per capita:
US$ 1600 (2010 est.)
Head of State:
H.E. Mr. Mwai Kibaki, President (since 30 December 2002)
Head of Government:
H.E. Mr. Mwai Kibaki, President (since 30 December 2002)
Overview
Kenya is not an oil and gas producing country, though recent surveys have shown some potential. The
petroleum exploration in Kenya started in 1950s, when BP and Shell began exploring in the Lamu
Embayment and drilled ten wells. To date more than 30 wells have been drilled, though without any
commercial success.
Ministry of Energy (MoE) in Kenya was formed in 1979 to look after energy sector and to participate in the
economic development of the country. One more primary reason to setup MoE was that the two oil price
escalations of 1973/74 and 1979, which were resulted in the country spending relatively more foreign
exchange to import oil. Main functions of MoE includes development of energy policy and exploration and
development of oil and other fossil fuels.
National Oil Corporation of Kenya Limited (NOCK) was incorporated in April, 1981 under the Companies
Act (Cap 486). The company's main objective then was to coordinate oil exploration (upstream) activities
under the guidance of MoE. In 1988 the company was mandated on behalf of the government to supply
30% of the country's crude oil requirements that would in turn be sold to oil marketing companies for
refining and onward sale to consumers.
In 1994, Kenyan oil industry was de-regulated and NOCK lost that mandate and it had to formulate new
strategies to survival and company entered into downstream operations.
Oil production and consumption

Kenya has 34 oil exploration blocks, 22 of them have been licensed to various companies. Offshore blocks
are situated in the Lamu basin and onshore blocks are distributed across the Mochesa basin, the Mandera
Logh basin, the Lake Turkana rift basin and the Anza Graben. The Mbawa prospect within the Lamu
Some of the companies involved in energy exploration activities in Kenya,include, Afren, Apache, Lion
petroleum, Origin, Tullow, Sahara energy, and Vanoil. The first production offshore Kenya is scheduled to
start in the second quarter of 2012.
The main four petroleum prospective areas in Kenya are:
1)
Onshore:
a. Anza Graben - 94, 220 sq. km, The deepest well drilled in this basin to date reached a total depth
of 4,392m
b. ManderaBasin - 51,920 sq. km, 2,233 km of seismic data recorded
c. Tertiary Rift - 100,00 sq km, The Basin has a total of 7,652 km of seismic data, aeromagnetic more
than 151,198 km and 12,313 gravity stations. Tertiary rift has five sub-Basins namely Lotikipi Sub,
Turkana Sub, Kerio Trough, Nyanza Trough and Magadi Trough
2)
Offshore/Onshore:
a. Lamu Basin - The basin covers both onshore and offshore with an aerial extent of 132,720 sq km
and sediments thickness ranging from 3 km (onshore) to 13 km (offshore).
Summary of Deep Wells Drilled in Kenya
Well
Operator
total depth
WALU1
BP/SHELL
1,768
PANDANGUA1
BP/SHELL
1,982
MERI
BP/SHELL
1,941
MARARANI
BP/SHELL
1,991
RIAKALUI
MEHTA&CO.
1,537
WALU2
BP/SHELL
3,729
DODORI
BP/SHELL
4,311
WALMERER
BP/SHELL
3,794
GARISSA
BP/SHELL
1,240
10
PATE
BP/SHELL
4,188
11
KIPINI
BP/SHELL
3,663
12
HAGARSO
TEXAS PACIF.
3,092
13
ANZA
CHEVRON
3,662
14
BAHATI
CHEVRON
3,420
15
SIMBA (offshore)
TOTAL
3,604
16
MARIDADI 1B (offshore)
CITIES
4,196
17
KOFIA (offshore)
UNION
3,628
18
KENCAN
PETRO-CANADA
3,863
19
ELGAL1
AMOCO
1,280
20
ELGAL2
AMOCO
1,908
21
NDOVU
TOTAL
4,269
22
SIRIUS
AMOCO
2,638
23
BELLATRIX
AMOCO
3,479
24
DUMA
TOTAL
3,337
25
HOTHORI
AMOCO
4,394
26
CHALBI3
AMOCO
3,643
27
ENDELA
WALTER
2,780
28
KAISUT
TOTAL
1,450
29
LOPEROT1
SHELL
2,950
30
ELIYE SPRINGS-1
SHELL
2,964
Source: National Oil Corporation of Kenya Limited
In 1991, NOCK started investigating Lamu Basin for evaluating existing geological, geophysical and
geochemical data relating to the sedimentary basins in Kenya. Based on the above report (completed in
1995), Kenya subdivided the Lamu embayment (both onshore and offshore) into10 exploration blocks, each
with a specific exploration play. Two more exploration blocks have been created since the year 2001.
As a result of these efforts, seven Production Sharing Contracts (PSCs) were signed in the offshore Lamu
Basin - namely blocks L5, L6, L7, L8, L9, L10 and L11- between 2000 and 2002. Between August and
October 2003, a total of 7,884 km of 2D seismic data covering Blocks L5, L6, L7, L8, L9, L10, L11 and L12
was acquired offshore Lamu Basin by Woodside. (Source: NOCK website)
The Kenya Petroleum Refineries Limited, Kenya Pipeline Company Limited, National Oil Corporation of
Kenya and Kenya Railways Corporation represent the governments presence in the petroleum industry.
The Kenya Pipeline Company Limited, Kenya Railways Corporation and private transporters are involved in
transportation of petroleum products from Mombasa to other parts of the country and neighbouring
countries.
Oil consumption
80
70
60
'000Bpd
50
40
30
20
10
0
1995
2000
2005
2008
2009
2010
Above chart depicts the oil consumption in Kenya which shows CAGR of slightly higher than 3 per cent in
last 10 years between 2000 and 2010. At the end of year 2010, oil consumption in Kenya was 72,000 bpd.
Some of the prominent oil and gas players in Kenya (with their market share) include Total Kenya (28%),
Kenolkobil (19%), Kenya Shell (16%), Libya Oil (12%), and Gapco Kenya (6%). NOCK holds 4-5% share in
the domestic market.
Oil Refining
Domestic demand for various petroleum products on average stood at ~72 thousand bpd in 2010, all of it
imported from the Mideast or major oil producing African countries, either as crude oil for processing at the
Kenya Petroleum Refineries Limited or as refined petroleum products.
The government regulates the industry by requiring that at least 1.6 million tons (referred to as Base Load
Volume) of crude oil be refined at the Mombasa refinery annually. This represents less than 50 per cent of
Kenya petroleum requirements. The balance of about 50 per cent is imported as refined products.
Kenya liberalized the hydrocarbon sector in October 1994, as part of Structural Adjustment Programs
(SAPs) for the energy sector, with an aim to bring structural changes, and facilitate competition by removing
behavioural and structural barriers to entry.
Prior to liberalization, government of Kenya was directly involved in the sector. Few marketing and
distribution companies were responsible for procuring and importing their own oil. The government through
the National Oil Corporation of Kenya (NOCK) was mandated to supply 30 per cent of the countrys crude
oil requirements.
The Kenya Petroleum Refineries Limited (KPRL) operates the only refinery, with a capacity of 80,000 bopd.
It was initially owned on a 50:50 equity holding between the Kenyan government and three oil companies
namely Caltex (Chevron -15.77 per cent), BP (17.11 per cent), and Shell (17.11 per cent). However, Indias
second largest oil firm Essar recently acquired the 50 per cent held by the private players in KPRL and the
rest 50 per cent shareholding is owned by Kenyan Government. .
KPRL planning construction of a Thermal Gasoil Unit (TGU) that will be used to converts fuel oil into lighter
petroleum products. This investment also includes facilities for reducing sulphur in gas oil and treating
emissions to be released into atmosphere and surface water.
KPRL is also developing a project for the construction of a 6700 Tons LPG storage facility with an import
and export line extending to the Kilindini harbour. The Company is in discussions with other potential
investors to jointly invest in the LPG project.
Pipelines
The Kenya Pipeline Company Limited operates the pipeline that runs from Mombasa to Nairobi, Kisumu
and Eldoret.
Kenya have 896 km long pipeline network. It has three sections of pipelines i.e. Mombasa-Nairobi (Line-I) 450 kms long with 14 inch diameter; Nairobi Eldoret (Line-II) - 325 kms long with 8 and 6 inch diameter in
two sub sections and Sinendet-Kisumu (Line-III) - 121 kms long with 6 inch diameter.
When started in 1978, the quantity of petroleum products transported through the pipeline system at
commissioning of Mombasa-Nairobi Line-I was 879,776 m3 and at the end of 2009 the volume has
increased to 4.326 million m3
Kenya pipeline system serves domestic as well as the neighbouring countries i.e. Uganda, Rwanda,
Eastern Democratic Republic of Congo, Northern Tanzania, Burundi and Southern Sudan.
The Mombasa Nairobi pipeline system: Prior to 2008, the capacity of pipeline was 440m3 per hour (or
able to transport 3.85 billion litres per year of petroleum products) and has the margin to expand the
capacity up to 880m3 per hr.
As the petroleum market developed, the pipeline capacity was also enhanced in November 2008 and also
the extension of Western Kenya pipeline came to existence.
The Western Kenya Pipeline Extension (WKPE) is 446 kilometre, 8-inch and 6 inch diameter pipelines. At
the time of commissioning in 1994, WKPEs combined capacity was 160m3 per hr and later on it was
increased to 220m3 per hr in 2004. Now KPC is enhancing the capacity of the WKPE through installation of
a parallel 14-inch diameter multi-product pipeline from Nairobi to Eldoret and after start-up of this pipeline,
the aggregate capacity to Western Kenya would reach by additional 378 m3 per hr. Finally, the new 14-inch
diameter parallel pipeline will be able to attain capacity of 757 m3 per hr through phased installation of
additional accessories.
Liberia
Basic information
Population:
37.86 million (July 2011 est.)
Currency:
Liberian Dollars (LRD)
Exchange rates:
1 US$ = LRD 71.899 (Quarterly avg of July-Sept, 2011)
GDP (PPP):
GDP-per capita:
US$ 500 (2010 est.)
Head of State:
H.E. Ellen Johnson Sirleaf, President
Head of Government:
H.E. Ellen Johnson Sirleaf, President
Overview
Liberia has no proven oil or gas reserves; however there are ongoing and expanding exploration activities
both onshore and offshore in the Liberian basin. It,currently, has 17 offshore exploration blocks and plans to
create 13 more deep-water blocks. According to the operator of Block LB-09 (African Petroleum), the Apalis
prospect within the block contains an estimated 500 million barrels of oil. Other potential significant deposits
include the Montserrado prospect.
The newest and most active entrants into the Liberian hydrocarbons sector are Anadarko, Chevron, and
African Petroleum. They are working with the National Oil Company of Liberia (NOCAL) to develop the
countrys oil and gas sector. Relative to the Hydrocarbon/energy sector, interest in Liberia's offshore
petroleum potential has been on the rise due to the Venus discovery in Sierra Leone during September
2009, which when correlated with the Jubilee Oil Fields in Ghana, could confirm a new oil frontier.
NOCAL is positively working on reform in the nations oil sector to safeguard the Liberian citizens benefit
from the sector in a transparent and equitable manner. Energy Governance Capacity Initiative (EGCI) from
US is one of the organizations working with NOCAL to make reforms in oil sector in Liberia, especially with
capacity building and review of Petroleum Reform Law. NOCAL is also working with the Norwegians
companies to help in setting up an oil revenue management framework.
Some of the strategic objectives of NOCAL are review the petroleum law and the NOCAL Act, draft a new
petroleum law and amend the act establishing NOCAL, training of people and capacity development
strategy, merger of Liberia Petroleum Refining Company (LPRC) with NOCAL and institutional reform of
exploration department.
However, NOCAL is facing some challenges, which mainly include talent crisis and infrastructural capacity
of NOC, data sharing and data availability, environmental concerns and zero emission technologies and
anti-gas flaring.
Oil and gas exploration and production

Liberia does not have a well-developed upstream oil industry. No viable oil and gas discoveries have been
made and there is therefore no production or field development.
Hydrocarbon exploration started in the late 1960s with Frontier, Chevron and Union Carbide being active.
Exploration activity was interrupted in 1972; however till then four wells were drilled and abandoned as dry.
A promotion of the offshore acreage attracted Amoco to the country. Amoco conducted seismic surveys and
drilled three more wells, all of which were reported as dry.
The Liberian offshore can be considered underexplored. In 1998, Socit Petroleum Oceanique and
Golden Gate Resources Ltd signed a Technical Cooperation Agreement (TCA) for offshore Block C.
Xpronet also held a TCA for offshore Blocks E, F, G and H but this has now lapsed and these blocks are
believed to be on offer.
In mid-1999, Australian companies, Daytona Energy Corporation and Fusion Oil and Gas signed a joint
venture agreement for the exploration of offshore Block A. Fusion, having taken over as operator from
Daytona, has completed an initial review of Block A and is seeking to convert the Technical Cooperation
Agreement (TCA) into a Production Sharing Contract (PSC). It is also seeking to extend its lease area.
Consumption of petroleum products
5
4.5
4
'000Bpd
3.5
3
2.5
2
1.5
1
0.5
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
Source: EIA
Petroleum product consumtion in Liberia increased by CAGR of about 5.3 per cent in last eight years during
2001 and 2009 and it is expected to grow further.
Oil Refining
Liberia has one simple oil refinery in Monrovia. The refinery at Monrovia, Liberia, is a topping and reforming
refinery with a nameplate distillation capacity of 750 kilo tons per annum (15,000 bpd). It is owned by the
Liberian government through LPRC. The refinery was mothballed in 1984 and all petroleum products are
imported from neighboring countries.
The Monrovia refinery had the following main production units:
Refinery Units
Capacity (000bpd)
Crude unit
15
Vacuum unit
Catalytic reformer
Distillate hydrotreater
2.3
Source: mbendi

Liberia developed the New Petroleum Law of Liberia in 2000 and prepared the Model Production Sharing
Contract (PSC) used as a basis for negotiation of Petroleum Agreements. In 2000, Liberia contracted TGSNOPEC, a geophysical company based in Houston, Texas, to conduct a non-exclusive 2-D seismic survey
and based on the TGS-NOPEC 2D seismic data, offshore Liberia was divided into seventeen (17) Offshore
Blocks. Liberia later on conducted bid rounds for the licensing of these 17 Blocks.
In January 2005 Woodside West Africa Pty Ltd, a wholly owned subsidiary of Woodside Petroleum Ltd.,
announced that it had successfully bid for 100% of an offshore exploration block in Liberia. The area, known
as Block 15, adjoins Blocks 16 and 17 which were won 100% by Repsol Exploracion SA in what was
Liberia's first offshore licensing round. Repsol and Woodside each holds a 50% interest in two blocks
immediately west of Liberia in neighboring Sierra Leone (SL-6 and SL-7) and the two companies now have
interests in five adjoining blocks across Sierra Leone and Liberia.
In February 2005 Regal Petroleum and European Hydrocarbons Limited (jointly forming the Liberia
consortium) were awarded two contiguous exploration concessions (Blocks 8 and 9) for an initial period of
three years, with a right to extend for a further four years. In accordance with the terms of the bid
application the consortium acquired a license to a substantial 2D seismic data package at a cost to the
Liberia consortium of US$960,000. Regal and EHL have 25% and 75% participating interests respectively
in the Liberia consortium.
In 2004 Repsol YPF was awarded, the rights to Block 17. In January 2005 Repsol YPF announced that it
had won the rights for the exploration and development of Block 16 offshore Liberia, in the first tender run
by the Liberian government ever to accept international bids. These two Liberian blocks are next to two
other offshore blocks (Block 6 and Block 7) pertaining to Sierra Leone, for which Repsol YPF has an
agreement with the Sierra Leone government.
Liberia's Ministry of Lands, Mines and Energy (MLME) and the National Oil Company of Liberia (NOCAL)
announced the opening of their Third Offshore Petroleum Licensing Round on 27 August 2009. Five of
Liberia's open blocks, LR-01, LR-02, LR-03, LR-04 and LR-05 were on offer for bid in the round which will
ran from 1 September 2009 until 30 November 2009.
2D seismic data and shallow water logs, covering the blocks on offer, were made available from TGS
NOPEC offices in London and Houston. The purchase of data packages was made a pre-requisite for
companies looking to successfully bid for the licenses, with a non-refundable application fee of US$30,000.
The blocks on offer were located offshore, approximately 300 kilometers south-west of the Liberian capital
of Monrovia, and reach water depths of up to 3,500 meters. These five blocks were the only remaining open
blocks in Liberia, the rest of which have been licensed in previous rounds.
Liberia sits between Sierra Leone, to the north-west, and Cte d'Ivoire, to the south-east. Liberia's offshore
coastal region incorporates two main basins; the Sierra Leone-Liberia Basin spans most of offshore Liberia
to the west, and the remaining offshore coast to the east falls within the Cte d'Ivoire's Ivoirian Basin. The
blocks on offer span both of these basins.
The discovery of the Jubilee field in Ghana, and more recently the positive results from Sierra Leone's first
deep water well in the Sierra Leone-Liberia Basin, has rapidly opened up this region as a significant
prospective play. Liberia's Third Bid Round seems to have come at the right time as interest in this frontier
region continues to grow.
Unfortunately no awards have been made in this round. Now, selected licensees will begin their drilling
program in 2011 and 2012
There is a large database of non-exclusive geophysical data available for use in the evaluation of the
prospectivity of offshore Liberia. Following data have been acquired between the years 2000 and 2010.
(Source: NOCAL website)
2D seismic data: 24,773 km
2D gravity and magnetic data: 24,408 km
3D seismic data: 18,345 km2
Well data
Interpretation report etc.
As per the NOCAL, status of Near Shore Block ownership:
Ten blocks have contractual agreements (LB8-LB17)
Two blocks (LB6 & LB7) are under contract negotiation
Five blocks in the Harper basin have been through a third bid round. No awards have been made
One block, previously awarded, (LB13) is up for mandatory sale
Ultra Deepwater Offshore Blocks status:
NOCAL acquired 2D seismic data over the ultra deep water of offshore Liberia through an agreement
with TGS-NOPEC in 2009
Above data expands 2D seismic coverage out to water depths up to 4.5 km
Additional 13 offshore blocks (LB18-LB30) have been outlined based on this data and these 13 offshore
blocks will be available for licensing in the coming years.
Liberia Onshore Regions under consideration
Proof of oil seeps in onshore regions through geological survey
Confirmation of sedimentary basins of about 5km thick through gravity and magnetic data
SimbaEnergy and few other companies have expressed interest, negotiations start shortly with
SimbaEnergy
Libya
Basic information
Population:
6,597,960 (July 2011 est.)
Currency:
Libyan Dinar (LYD)
Exchange rates:
1 US$ = 1.195 LYD (Quarterly Avg. July-September 2011)
GDP (PPP):
GDP Per Capita:
US$ 14,000 (2010 est.)
GDP Growth:
4.2 per cent (2010)
Head of State:
There is no official head of state. Mustafa Abdel-Jalil is the chairman of the

NTC (National Transitional Council)
Overview
Libya is the 16th largest country in the world in terms of land mass, comprising more than 1.7 million square
kilometres. Libya is a member of Organization of petroleum Exporting Countries (OPEC) joined in 1962
after two years of establishment of OPEC in 1960.
The oil and gas sector is the most important sector of the Libyan economy as the sector accounts for over
half of its GDP. Oil sector contributes about 95 per cent of export earnings, and 60 per cent of public sector
wages. Significant revenue from the energy sector, for a relatively small population, gives Libya one of the
highest per capita GDPs in Africa. The sector is likely to undergo fundamental change as the new
transitional authorities have already expressed a desire to review existing production sharing contracts.
Libya first minerals laws were passed in 1953 and 1955.Under these laws multiple concessions were
granted to Esso, Mobil, Texas Gulf and others, resulting in major oil discoveries by 1959.By 1969
production from the Sirte Basin had reached 3 million bpd.In 1973 Libya nationalized its oil industry
Libya's first productive oil well was struck in 1959 at Amal and Zelten, now known as Nasser. The country
began exporting oil in 1961.
Libya has the largest oil reserves on the African continent, the fourth largest oil producer in Africa, the
second largest gas supplier through pipeline in Africa after Algeria and the fourth largest overall gas
supplier (including LNG) in Africa. Current Libyan reserves are estimated to last for about 80 years (at preconflict production levels i.e. 1.6 million barrels per day). In the wake of the collapse of the old regime, the
National Transitional Councils (NTC) Arabian Gulf Oil Company (AGOCO) has overtaken the National Oil
Company (NOC), which was responsible for the oil sector under the old regime
In the Fugro Robertson's 2009 International New Ventures Survey, Libya placed at 5th position while Egypt
was able to manage the 2nd place after UK at first. It gives confidence to the investors to invest in the Libyan
oil sector.

Libya has the largest oil reserves in Africa. According to the ENIs World Oil and Gas Review 2011, proven
oil reserves in Libya were about 46.4 billion barrels as on January 2011 while, as per the Annual Statistical
Bulletin 2010-11, issued by OPEC, Libya held crude oil reserves of 47.10 billion barrels at the end of 2010.
The crude oil production was at an average of 1.661 thousand barrels per day.
In 1969 and 1970 oil production in Libya peaked over 3 million barrels which declined to 1 million barrels in
1987 and again reached to 1.8 million barrels of oil in 2007 and 2008.
50,000
2,000
45,000
1,800
40,000
1,600
35,000
1,400
30,000
1,200
25,000
1,000
20,000
800
15,000
600
10,000
400
5,000
200
0
1995
2000
Oil Reserves
2005
2008
2009
Oil Production
2010
2011
Oil Consumption
With domestic consumption of about 241,000 bbls per day in 2010, Libyas net exports (including all liquids)
were slightly over 1.15 million bbl per day. According to the IEA the majority (around 85 percent) of Libyan
oil is exported to European countries namely Italy, Germany, France, and Spain and to Asia mainly China.
Italys ENI is the largest foreign oil company in Libya and is reported to have been producing just less than
300,000 barrels of oil per day prior to the conflict. Other stakeholders included China National Petroleum
Corporation (CNPC) and China National Offshore Oil Corporation (CNOOC). Other companies involved in
Libyas oil and gas sector include oil majors i.e. Royal Dutch Shell, Total, BP, Statoil and OMV.
Foreign Partners
Fields
ConocoPhillips, Marathon, Hess
Es Sider
345
Repsol-YPF, Total, OMV, Statoil
Sharara
340
Eni, Gazprom, KNOC
Mellitah
150
Wintershall, Suncor, Gazprom
Amna
140
Eni
Bu Attifel
100
Eni
Bouri
45
Occidental, OMV
Zueitina
65
Total, Wintershall
Al-Jurf
30
NOC subsidiaries
Sarir, Messla, Brega, Sirtica
330
Total
Production (000 b/d)
1,545
Source: Argus Media Ltd.
The countrys consumption of petroleum products was a reported 241,000 barrels per day for 2010.
According to the BMI forecast, the oil production and consumption in Libya is expected to reach to
2,250,000 bpd and 405,000 bpd respectively by year 2020.
The Libyan government invested in Eni in 2009, through the countrys sovereign wealth funds, Libya has
been looking for additional energy investments in Europe and Africa.
Upstream Projects under implementation

Project / Field
Name
Operator
Block 47 (Phase
1)
Verenex Energy Ltd
Projected year
onstream
Estimated addition
Product
2012
50
Crude
(000 b/d)
NC041-E
Eni Oil BV
2012
Block 47 (Later
phases)
Verenex Energy Ltd
2013
50
Crude
NC186-J-001
Akakus Oil
Operations
2013
30
Crude
NC186-K-001
Akakus Oil
Operations
2013
Crude
Nafoora
expansion
2013
65
Crude
Zuetina
expansion
2013
50
Crude
2014
50
Crude
Al Farigh
expansion
LNOC
Crude
Gialo expansion
70
Crude
NC 98
80
Condensate
Source: OPEC
Gas Reserves, Production and Consumption

Libya holds Africa's fourth-largest gas reserves, 1,558 bcm, according to ENI World Oil and Gas Review
2011. Libyan NOC hopes to increase natural gas production as an input for power generation and to
increase exports to Europe, where demand is expected to expand rapidly. Libyan gas production was 15.5
bcm in 2009 and ascended to 16.8 bcm for 2010. Increases in gas production are most likely to come from
new discoveries, and an effort has been made to increase exploration in gas-prone areas.
1,600
18,000
1,550
16,000
1,500
14,000
1,450
12,000
1,400
10,000
1,350
8,000
1,300
6,000
1,250
4,000
1,200
2,000
1,150
Reserves(Bcm)
0
1995
2000
2005
Gasreserves
2008
2009
Production
2010
2011
Consumption
In 2008 BP and NOC signed an agreement for exploration in gas-rich areas. There are large investments
commitments for seismic surveys and drilling that are expected to total US$1.2bn. Of the 17 wells that BP is
required to drill; five will be offshore, where drilling began in the second half of 2009. The production share,
should commercial discoveries be made, has been agreed at 20.3%.
As per OPEC annual statistical bulletin 2010-11, Libyas natural gas exports for 2010 amounted to 9.97 bcm
for 2010 and about 95% of gas was transported to Italy via pipeline and rest was exported to Spain in the
form of LNG. Natural gas is supplied from the Wafa concession and the offshore Bahr es Salam fields to
Melitah, where it is treated for export.
Natural gas uses break up in Libya
Production (Bcm)
2006
2007
2008
2009
2010
%change
Marketed production
13,195
15,280
15,900
15,900
16,814
5.7
Flaring
2,980
2,909
3,940
3,261
3,483
6.8
Reinjection
3,634
3,366
3,526
3,570
3,400
4.8
Shrinkage
7,255
7,664
6,944
6,557
6,560
--
Source: OPEC Annual Statistical Bulletin 2010 - 11
Oil Refining
There are five existing refineries in Libya. All of the refineries are at least 20 years old, and there are a
number of plans for upgradation with the involvement of foreign companies. Libya's total nameplate refining
capacity is 380,000 b/d, but refineries run below capacity and total throughput is around 320,000 b/d. The
largest is an export-oriented refinery at Ras Lanuf on the Gulf of Sirte, which has a capacity of 220,000 b/d,
where there are plans for US$2.5bn of upgrades, which would take capacity to 240,000 b/d. NOC has
signed a contract with the Trusta Consortium of the UAE to carry out the work at Ras Lanuf. The other large
refinery in the country is at Az zawiya in the north-west, which has a refining capacity of 120,000 b/d.
In addition, there is a new refinery planned for construction at Sebha, with a capacity of 20,000 b/d, which
will supply the domestic market, and plans for a large new refinery at Misurta, which will have a capacity of
200,000 b/d and supply export markets. If all the planned projects for new refineries and upgrades were
completed, Libya's total refining capacity would be increased to over 725,000 b/d by 2015 as per BMI
forecasts.
Oil refineries in Libya
Refinery
Location
Capacity b/d
Az Zawiya Oil Refining
Az Zawiya & Benghazi
120,000
Ras Lanuf Oil & Gas Processing
Ras Lanuf
220,000
Sarir Refining
Sarir
10,000
Sirte Oil
Marsah El Brega
10,000
Tobruk Refining
Tobruk
20,000
Total refining capacity
380,000
Source: IEA
Tamoil is the Libyan overseas oil retail company, and is a direct producer and distributor of refined products
in Italy, Germany, Switzerland, and Egypt.
LNG and Pipelines

After Algeria, Libya developed LNG plant and became the second country in the world in 1971 to export
LNG. Even after good reserve base and production Libya's LNG exports have remained low, mainly due to
technical limitations. Libya's only LNG plant, at Marsa El Brega, was built in the late 1960s by Esso and has
a capacity of about 3.54 bcm per year (125 Bcf per year or 2.6 mmtpa). Due to U.S. sanctions on Libya, it
was unable to get the required technology to separate out LPG from the natural gas, thus limiting the plant's
output by over half of capacity. In 2010, LNG exports were merely 0.34 bcm (12 bcf) all of which was
exported to Spain.
Libya has 30 crude oil pipelines with aggregate length of about 9,000 km and 500 million ton per annum
handling capacity and diameter ranging from 10 inch to 42 inch. Pipeline Asharara/Az-Zawiyah and
Asharara/Mellitah are the longest pipelines in Libya with 1,165 km each and 30 inch in diameter and owned
and operated by Akakus and Mellitha Oil and Gas respectively. Intisar (A103)/Azzuwaytinah is the biggest
pipeline which handles 49.8 mmtpa crude, it is 220 km long pipeline with 40 inch in diameter and operated
by Zuetina
There are five petroleum product pipelines in Libya with total length of about 480 km and with aggregate
handling capacity of about 80 mmtpa refined products. The longest product pipeline in Libya is
Azzawya/Elwettia owned and operated by Elbrega Company which is about 145 km long and has
petroleum products handling capacity of approximately 21 mmtpa.
Libya also has 21 natural gas pipelines with combined gas handling capacity of over 331 bcm. The total
pipeline length is over 5620 kms. Intesar-Brega gas pipeline, which is owned and operated by Zueitina. is
330 km long, 42 inch diameter pipeline with highest gas-handling capacity of about 42.5 bcm. The longest
gas pipeline in Libya is 1030 km-long Brega/Khoms pipeline, owned by Sirte oil, and with annual gas
handling capacity of about 11.6 bcm.
Libyas natural gas exports to Europe, mainly to Italy, have grown significantly over the past few years
through the 595 km "Greenstream" underwater natural gas pipeline from Melitah to Gela in Sicily and
thence to the Italian mainland. The Greenstream pipeline came onstream in October 2004 and is operated
by Eni in partnership with NOC.
There are plans to expand the network, although in many cases they are facing delays. AGOC (NOC and
EGPC JV) plan to construct two pipelines to transport Egyptian gas to Libya for power generation and
export, and Libyan oil to Alexandria for refining and consumption. Another pipeline of a 2 bcm per year is
planned to supply gas to Gabes, an industrial city in Tunisia.

Following are the main basins in Libya.
Sirte basin: It was discovered in 1958 by the Oasis Group (A-001-032). It covers an area of 600,000 km2.
Libyas 80% reserves lies in this basis while approximately 2/3 of oil is produced from this basin only. It has
estimated recoverable reserves of about 33.2 billion bbls of oil and about 1 tcm of gas. It also has estimated
remaining undiscovered in place reserves of approximately 50 billion barrels of oil equivalent (bboe). Sirte
basin has drilling density of about 3 wells per 100 km2 (a third of North Sea). Offshore area of Libya is
largely unexplored which would certainly replace more reserves in the country. It consists of 16 giant fields
including Sarir, Messlah, Bu Attifel, and MasrabSirte-Zelten
In December 2008, In Libya, well A1-54/01, encountered a gross hydrocarbon section of approximately 500
feet at various intervals. Hess holds a 12.4 per cent share and the NOC holds the remaining 87.6 per cent.
The well is is located about 60 km offshore in the Sirte Basin and was drilled to a depth of 3,375 meter and
in 855 meter of water.
Ghadames basin: This basin was discovered in 1957 by EssoStandard (B-001-001). It covers an area of
350,000 km2. It has estimated recoverable reserves of more than 3 billion barrels of oil while estimated
remaining undiscovered in place reserves of 11 billion boe. There is one giant field, Al Wafa which was
discovered 1991 (operated by ENI) lies in Ghadames basin.
In December 2008, NOC announced an oil discovery in the Ghadames basin made by the state-owned oil
company Arabian Gulf Oil Company (AGOCO). The well is situated approximately 500 km south of Tripoli.
The initial production testing established an oil rate of 5,000 bpd, and a gas rate of 4.25 MMscmd.
Australian company Woodside made oil and gas discovery in Libya, an exploratory well drilled by Woodside
in the Ghadames Basin, 900 km South of Tripoli, produced oil and gas during testing. The well, F1-NC210,
is the fourth discovery drilled by Woodside Energy in the contract area NC210, awarded by the NOC in May
2003. In the contract, Woodside has a 37 per cent participating interest and rest 63% is hold by the NOC.
Murzuk basin: Murzuk basin was discovered in 1978 by the NOC (A-001-NC058). It has area of 320,000
km2. The estimated recoverable reserves in this basin are of over 2 billion bbls of oil while estimated
remaining undiscovered in place reserves are of 35 billion boe. About 25% of oil is being produced from this
basin. Companies like ENI, OMV, Repsol, TOTAL, StatOilHydro, Occidental, Chevron are working in this
basin. It has one giant field, Elephant which was discovered in 1997 and being operated by ENI.
In 2003 the UN lifted its sanctions, followed by the US in 2004.US companies commenced re-entry into
Libya. In 2005 Occidental reached a deal with NOC to resume operations, followed by the Oasis Group who
also reached a deal in late 2005.Since the sanctions there have been 4 bid rounds, the first held in 2005. A
number of bilateral deals have been signed outside of the bid rounds, and in 2007 NOC re-negotiated
contracts with existing companies to bring them in line with the Exploration and Production Sharing
Agreements (EPSA) IV model.NOC currently plans to increase oil production to 3 million bpd by 2013 by
attracting investment of around US$ 30 billion.It is also a priority for NOC to expand natural gas production
for domestic power generation and to increase exports, with a target of 7 bcm by 2013.
Post-sanction licensing rounds: EPSA bid round 1
Under EPSA bid round 1, blocks were awarded in January 2005. There were 15 areas on offer and 163
companies registered while 63 were approved to bid. There were 9 onshore and 6 offshore permits
awarded. US companies were awarded 11 out of 15 permits, 9 to OXY alone while European companies
were not awarded any blocks in this round. In this licensing round, winning bids had low production share
and large signature bonuses
In EPSA bid round 2, blocks were awarded in October 2005. There were 26 areas on offer and received 48
companies bids. Almost all blocks were awarded to European or Asian companies. New entrants in Libyas
oil and gas E&P sector were Statoil, BG, Nippon and Japex. Libyas strategic partner Eni and Japans
Mitsubishi gained 3 areas each.
In December 2006, blocks were awarded under EPSA bid round 3. There were 14 areas on offer in onshore
and offshore across all main basins. Total 47 companies qualified to bid and 10 contracts were awarded in
this round. The winning companies included Gazprom, CNPC, Tatneft, Petro-Canada, Wintershall,
ExxonMobil and ONGC Videsh.
Post-sanction licensing rounds: EPSA IV bid round
It was awarded in December 2007 and the focus was entirely on gas fields. There were 12 areas on offer
and 54 foreign companies pre-qualified to bid, 34 as operators. There were 13 bidders bid for the blocks on
offer. Five of the six companies that were awarded licenses (Shell, Sonatrach, Gazprom, Occidental and
RWE) were already engaged in Libya. There was only 50% award rate observed in IV round in contrast to
the past 3 rounds which had a success rate of 87%.
The transitional authorities in Libya have not yet formally announced their new oil and gas policy.
Malawi
Basic information
Population:
15,879,252 (July 2011 est.)
Currency:
Malawian Kwacha (MWK)
Exchange rates:
1 US$ = 156.81 MWK (Quarterly Avg. July-September 2011)
GDP (PPP):
GDP-per capita:
US$ 800
Head of State:
H.E. Bingu wa MUTHARIKA, President
Head of Government:
H.E. Bingu wa MUTHARIKA, President
Overview
Malawi is a small country in south-eastern part of Africa, neighbouring Zambia and Mozambique. The
country has no significant presence in oil and gas map, and is dependent on agriculture and services for its
economy. Malawi is producer of several minerals, including uranium and several rare earth metals.
Malawi is not an oil and gas producing country.. The petroleum consumption in Malawi has gone up steadily
from ~5,000 bopd in 1999 to ~8000 bopd in 2010. The country does not have a refinery and hence is
entirely dependent on imports of refined products.
Full-scale hydrocarbon exploration is still a far dream. According to current information, the area under Lake
Malawi is the only prospective area. The first research on oil and gas on Lake Malawi was conducted in
1981 by Duke University of America. The survey revealed that thick sequences of up to three km of
sedimentary rocks were present under wide areas of the lakebed, raising the status of the lake as a target
for hydrocarbon exploration.
The Ministry of Natural Resources and Energy is the governing body for oil and gas. Some of the
companies operating in the country include BP (through its 50 per cent JV in Oilcom), Mobil, Caltex, and
Total, which operate in the fuel retailing.
Malavi Government is in the process of geological remapping and in this regard sought technical assistance
from Iran in 2010 for oil & gas exploration in the Lake Malawi, Shire Valley and Ngana areas, in the north of
the country. In preparation for the remapping project, Malawi government engaged the British Geological
Survey to conduct review of the old maps and for the review of existing literature.
In November 2011, Malawi has offered six licences to foreign firms for exploration of petroleum and gas
reserves in Lake Malawi, the Shire river, and the lower states. Surestream, a British oil exploration firm won
the exploration licence for Lake Malawi.
Mauritius
Basic information
Population:
1,303,717 (July 2011 est.)
Currency:
Mauritian Rupee
Exchange rates:
1 US$ = 27.172 Mauritian Rupee (Quarterly avg. July-September 2011)
GDP (PPP):
US$ 18.06 Billion (2010 est.)
GDP-per capita:
US$ 14,000 (2010 est.)
Head of State:
H.E. Sir. Anerood Jugnauth, President
Head of Government:
H.E. Dr. Navinchandra Ramgoolam, Prime Minister
Overview
Mauritius is a small island nation off the coast of the Africa continent in the southwest Indian Ocean, about
900 kilometres east of Madagascar. Mauritius includes the Islands of Mauritius, Rodrigues, Agalega,
Tromelin, Cargados Caragos and the Chagos Archipelago, including Diego Garcia, and the maritime zones
of Mauritius. Since independence in 1968, Mauritius has developed from a low-income, agriculturally based
economy to a middle-income diversified economy with growing industrial, financial, and tourist sectors. For
most of the period, annual growth has been in the order of 5% to 6%.
The economy of Mauritius is mainly dependent on sugarcane cultivation, tourism, textiles, and services, but
other sectors are rapidly developing as well. Sugarcane is grown on about 90% of the cultivated land area
and accounts for 15% of export earnings. Mauritius possesses few mineral resources and no known oil or
gas reserves. Therefore no upstream oil industry exists in the country. Similarly country does not have its
own refinery and mainly depends on imports of petroleum products from India, Africa and Europe. It does
have a significant quantity of renewable energy resources in the form of hydro-electricity, biogases from the
sugar cane industry, woody biomass and solar energy.
Mauritius imports the majority of its primary energy requirements. Commercial energy is derived from
electricity (10.5%), coal (5.4%) and oil-derived products which supplies 84.1% of the island's energy needs.
The downstream oil industry is thus key to the economy. The State Trading Corporation (STC) was set up
by an Act of Parliament on the 24th October 1982 to regulate and rationalize trade, particularly in relation to
essential commodities. It was to operate as the trading arm of the Government on sound commercial
principles. The Board members are appointed from both the public and private sectors.
From an International Development Association (IDA) supported monocrop economy, predominantly
dependent on sugar, and caught in the Malthusian nightmare of overpopulation and massive
unemployment, Mauritius has successfully diversified its economic activities by carving out special niches in
textile, tourism and financial services. Over the past five years the country registered an annual average
real growth rate of 5.1%, balance of payments surpluses leading to a comfortable external reserves
position, and a single digit inflation on average. With a per capita income of US$ 5,078 (for Jan to Oct
2004), Mauritius is now classified as a middle income country and ranks, on the basis of the Human
Development Index report 2011 187 countries, 77th globally, 40th among developing countries and second
in Africa. Sustaining the growth momentum well into the future is a major challenge because of international
pressures such as globalization and liberalization. Furthermore, reforms are required domestically to arrest
fiscal decline, achieve growth in labour and total factor productivity and address the issues of pockets of
poverty and an ageing population.
Major Oil Companies

Although Mauritius does not have national oil company on its own, its State Trading Corporation (STC),
handles imports of petroleum products. STC is responsible for the importation of all the countrys
requirements of petroleum products. These products are sold to and stocked either individually or jointly by
the local oil companies. The products are then being marketed and distributed to the retailers and end
users. The local major oil companies are represented by:
Shell (Mauritius) Ltd
Total Mauritius Ltd
Caltex Oil (Mauritius) Ltd
Indian Oil (Mauritius) Ltd
Petroleum Oil Demand

The Current demand of petroleum products in the country is 23,000 bpd and the entire demand is met by
imports
Mozambique
Basic information
Population:
22,948,858 (July 2011 est. )
Currency (code):
Mozambican Metical (MZM) or Mozambican New Metical (MZN)
Exchange rates:
1 US$ = 27069.0217 MZM = 27.069 MZN (Quarterly avg. JulySeptember 2011)
US$ 1000
Head of State:
H.E. Mr. Armando Guebuza, President (since 2 February 2005)
Head of Government:
H.E. Mr. Aires Bonifacio Ali, Prime Minister (since 16 January 2010)
Overview
The first hydrocarbon discoveries in Mozambique were of natural gas, made by Gulf Oil in 1961 and 1962 in
the country's onshore Pande and Bunze areas respectively. From 1970 to 1980 there have only been drilled
six wildcat wells in Mozambique three of them offshore. An extensive drilling campaign conducted by
Sasol in 2003 which included exploration and production wells in the Pande/Temane Block allowed the
expansion of gas reserves and the discovery of Inhassoro Gas Field In 2003, two more gas discoveries
were made in the Temane east and Inhassoro onshore sedimentary basins of Mozambique. This was
followed by first commercial natural gas production in 2004.
Till now, there have been no oil discoveries made in Mozambique and the country is dependent on imports
of oil for its entire domestic consumption. The country's average per capita oil consumption is one of the
lowest in the continent and has 0.23 barrels against Africa's average of 1.30 barrels in 2010.
The Institute of National Petroleum is the regulatory authority for the petroleum sector (explorations,
productions and transport of hydrocarbons) in Mozambique. Empresa Nacional de Hidrocarbonetos (ENH
or National Hydrocarbon Corporation) is the national oil company of Mozambique and was established in
1981. The country's petroleum laws provide for state participation through a carried interest by ENH in the
exploration period as well as a stake in the development stage.
A new modern and competitive Petroleum Law enacted on February 2001 provides for three kinds of
concession contracts:
Pipeline Contract: Period depends on the project
Reconnaissance Contract: Maximum two years exclusivity
Exploration and Production Contract: Exploration period maximum 8 years and production period
maximum 30 years

Mozambique does not have known oil reserves and meets its entire petroleum products requirement
through imports from other countries. At the end of year 2010, the country's oil consumption was 14,000
bpd which was increased by approximately at CAGR of 4.3% in last 10 years during 2000 and 2010.
Oil consumption
16
14
12
'000Bpd
10
8
6
4
2
0
1995
2000
2005
2008
2009
2010

At the end of 2010, Mozambique have 57 bcm of proven gas reserves and 3.4 bcm of gas production. At
the current rate of gas production, countrys R/P ratio is 17 years. In the same year, per capita consumption
of gas in Mozambique was 2 cu. meters as against the average per capita consumption of gas in Africa at
112 cu. meters. According to BP Statistical Review 2011, Mozambique exported 3.04 bcm of natural gas
produced in the country to South Africa through pipeline in 2010 and it is only the gas supplier to South
Africa via pipeline.
63
4,000
62
3,500
Reserves(Bcm)
61
3,000
60
2,500
59
2,000
58
1,500
57
1,000
56
500
55
54
1995
2000
2005
Gasreserves
2008
2009
Production
2010
2011
Consumption
Source : World Oil and Gas Review 2011
There are two main sedimentary basins in Mozambique; the Rovuma basin and the Mozambique basin.
The Rovuma basin is located in the north east, where most of the hydrocarbons discoveries were made.
This basin is 400 km in length and about 160 km in breadth.
There are four proven gas fields in Mozambique:
Pande (discovered in 1961 by Gulf Oil, reserves 2.7 tcf)
Temane (discovered in 1967, reserves 1.0 tcf)
Buzi (discovered in 1962)
Inhassoro
A total of 97 wells were drilled to date in Mozambique. There were three gas discoveries reported in year
2010. The gas discoveries offshore Mozambique have been a result of frontier drilling in the offshore
Rovuma. Windjammer was the first deepwater well in Mozambique spudded by Anadarko in December
2009 and announced as a discovery in February 2010. Logasta was the third natural gas field to be
discovered on the block by Anadarko. The discovery was announced in November 2010 and proved the
gas province offshore Mozambique. The latest discovery in Feb 2011, Tubarao, opens up a new play
fariway, and offers new oportunities offshore Area 1. These discoveries are reported to hold enough
reserves to justify a multi-train LNG development which, if realized, would have a sustantial impact on the
economy of Mozambique.
One oil discovery was also reported in Aiugust 2010 known as Ironclad, it was at the depth of 17,402 feet
but it was plugged and abandoned as sands had low porosity and permeability.
Eni also announced a giant natural gas discovery recently in offshore Mozambique at the Mamba South 1
prospect in offshore Area 4. The discovery well found 212 m of continuous gas play in Oligocene sands.
Mamba South 1 is in 1,585 m of water about 40 km off Cabo Delgado. Eni is the operator of Offshore Area
4 with a 70% participating interest. Other shareholders in the prospect are Galp Energia (10%), KOGAS
(10%), and ENH (10%). Eni hopes that this discovery could be of at least 15 tcf of gas in place in the
Mamba South Area.
Anadarko is the operator with 36.5 per cent participating interest for offshore Area1. The company has
plans to drill 6 wells in year 2012. Other stakeholders include Mitsui E&P Mozambique Area 1, Limited (20
per cent), BPRL Ventures Mozambique B.V. (10 per cent), Videocon Mozambique Rovuma 1 Limited (10
per cent) and Cove Energy Mozambique Rovuma Offshore, Ltd. (8.5 per cent). Empresa Nacional de
Hidrocarbonetos, E.P.'s (15 per cent).
Onshore Rovuma block is operated by Anadarko (37.5%). Other participants in this block are Maurel &
Prom (24%), Wentworth Resources Ltd (15.3%), Cove Energy Plc (10%) and ENH (15%).
Buzi Block is an onshore block is operated by Energi Mega Persada (75%) and other shareholder is ENH
(25%). The Buzi block is within the central part of the Mozambique Basin and covers approximately 10,300
km2 and lies immediately to the North of the Pande, Temane and Inhassoro Gas fields.
Inhaminga Block is being operated by DNO International (34%) and other participants are New Age Ltd
(41%), Harmattan Uruguay S.A., and the Mozambique government (20%).
Blocks 2 & 5 are located in the Rovuma basin offshore northern Mozambique. It is operated by Statoil
(90%) with other partner ENH (10%).
Oil Refining
Mozambique has no crude oil refining facility and currently imports refined petroleum products from other
countries to meet its domestic requirements. In September 2007, the Mozambican Council of Ministers
approved the construction of an oil refinery in the northern province of Nampula. Valued earlier at more than
US$ 1.3 billion, the project is led by American company Ayr Logistics, in partnership with three South
African investors, and one from Mozambique. The capacity of proposed refinery was enhanced and the
proposed refinery will have an installed capacity of about 300,000 bopd, and the project cost will be about
US$ 5 billion. After fulfilling the countrys internal requirements, most of the product will be exported to
Malawi, Zimbabwe, and Zambia. The consortium implementing the project will also be the responsible for
ensuring that the distribution of refined products to the Mozambican market equals 15 per cent of its
production capacity.
Mozambican government has also approved the construction of another oil refinery in southern Maputo, at
capacity of 350,000 bopd, once it is operational by 2015. With this US$ 8 billion deal with Oilmoz, it is
expected that the domestic product constraints will be eased.
Pipelines and LNG

Mozambique has gas pipeline of 918 km which is 26 in diameter. In 1998, Sasol of South Africa proposed
Mozambique to transport gas from Temane and Pande fields to their petrochemical plants in South Africa.
This transnational gas pipeline is 531 km on Mozambican side and rest is on South Africa side to supply
gas to Sasols coal to liquid plant at Secunda.
Mozambique also has a refined products pipeline of 278 km to supply petroleum products to demand
centers in the domestic market.
Anadarko gave contract to Technip and KBR for pre-front-end engineering and design (FEED) studies for
an LNG facility near the border with Tanzania. It would be a large multi train LNG liquefaction plant with a
capacity of 10 million tonnes per year of natural gas.
Exploration Licensing Rounds

Mozambique Fourth Onshore Licensing Round
The Instituto Nacional de Petroleos (Institute of National Petroleum, INP) announced the results of the
Fourth Onshore Licensing Round on 12 October 2010. The Fourth Round was launched on 4 November
2009 and closed on 15 June 2010. Seven areas were offered in the round covering a total of 146,000 sq.
Km.
Bids were received for all seven areas by six companies including Aguia Energy Lda, CH-SwissOil Holdings
International Ltd, Spotswood Petroleum Ltd, DNO International ASA, NewAge (African Global Energy) Ltd,
Sasol Petroleum International (Pty) Ltd and Touchstone Oil & Gas Ltd. Only one application, for the Lower
Zambezi area from DNO International ASA (DNO), met all the evaluation criteria. DNO have now been
invited to begin negotiations for an Exploration Production Concession Contract (EPCC) over the Lower
Zambezi Graben area.
Mozambique fourth onshore licensing round results
Areas offered for bid in the Fourth Mozambique Onshore Licensing Round
Area name
Sq kms
Bidders
Awarded
Bahine Area
36,058
NewAge (Africa Global Energy) Ltd,

Sasol Petroleum International
Mazenga Graben
22,812
CH-SwissOil Holdings International,

Spotswood Petroleum,
Sasol Petroleum International,
Touchstone Oil & Gas
Limpopo Graben
17,600
CH-SwissOil Holdings International,

Spotswood Petroleum
Palmeiras Graben
10,917
NewAge (Africa Global Energy) Ltd
Lower Zambezi Graben
19,181
Aguia Energy Lda,

DNO International ASA
DNO International
ASA
Middle Zambezi Graben
30,095
Aguia Energy Lda
Maniamba
9,367
Aguia Energy Lda
Namibia
Basic information
Population:
2,147,585 (July 2011 estimate)
Currency:
Namibia Dollar N$
Exchange rates:
1 US$ = 7.0167 N$ (Quarterly average July-Sep 2011)
GDP (PPP) :
4.4 per cent (2010 estimate)
GDP-per capita:
US$ 6900 (2010 estimate)
Head of State:
H.E. Mr. Hifikepunye Pohamba, President
Head of Government:
H.E. Mr. Nahas Angula, Prime Minister
Overview
Namibia is a country with a population of about 2 million, located in South West Africa. It does not have a
significant history of oil or gas production, but is believed to hold a great deal of potential, as located
immediately to the North is Angola, a major oil producer.
Namibia is endowed with abundant mineral resources however emergence as a hydrocarbon holding
country is a recent phenomenon. It has significant natural gas resources and unconfirmed potential of oil in
the offshore as well. The country also has a relatively decent downstream infrastructure. The upstream oil
and gas industry is yet to start any production.
Due to a geological similarity with Brazil and Angola, Namibia is attracting the international oil giants. The
Namibian offshore basins are located in the south-eastern part of the south Atlantic margin (on the West
Africa side) and extend from land out to the 3,000 metre iso-bath. These basins are directly related to the
rifting of the African and the South American plates during the Lower Cretaceous period.
Location of drillable targets has been possible with intensive data acquisition in the oil and gas exploration
operations. Namibia as a country is expecting that about 6-8 wells will be drilled in the next 18 months. This
will be the highest number of wells for drilling, in the history of Namibia, with the whole country currently
only having a total of 14 well, of which 8 are all concentrated in the Kudu Gas Field.
Namibia has no refinery and is dependent on imports from South Africa and Cote dIvoire. The Petroleum
Products and Energy Act, 1990 controls activities in the downstream sector.
The state-owned National Petroleum Corporation of Namibia (NAMCOR) is the national oil company. This
functions as a part of the Ministry and works with it to promote the countrys acreage. It also acts as an
advisor on national petroleum policy and has the capacity to act on behalf of the state as its commercial
arm. The Ministry of Mines and Energy (MME) regulates the Namibian oil industry. NAMCOR looks at the
downstream sector with renewed vision for future growth and has the overall objective to build the company
into an integrated oil company that can compete on an equal footing on the international stage. The future
for the downstream sector in Namibia foresees ownership of storage facilities, penetration of commercial
and retail markets and expansion into the export market in the sub-region.
Though the offshore exploration started in the late 1960s to the early 1970s, the real work started only
after the country became independent in 1990. In 1987-1988 Swakor, the predecessor company of the
present National Oil Company, NAMCOR, drilled a further 2 wells in the Kudu field. The Kudu-3 proved the
existence of a major gas field.
Oil and Gas reserves, demand and consumption

There is no proven oil reserves in Namibia (source O&G Journal), however recently the Namibian
governemnt and Chariot Oil owned Enigma Oil and Gas Exploration Pvt Limited have announced a major
discovery with reserves of 11 billion barrels, in the southern coast. Namibia has natural gas reserves of 70
BCM as of 01st Jan 2011.
Exploration licensing rounds

The exploration licensing round started in 1991-1992 with five licenses being awarded at this time. The
main operators were Norsk Hydro, Ranger, Sasol, Chevron and Shell. The second round in 1995 resulted in
2 new licences being awarded, both to Shell. One of these was an extension to the existing license that
Shell had over the Kudu field. The Third Licensing Round in 1998-99 resulted in no applications being
received, partly because of the low oil price at the time as well as the numerous international company
mergers that were ongoing. The mini-4th Round in 2004 eventually resulted in the award of 2 blocks to
BHP-Billiton west and south of Kudu.
All together 14 wells have been drilled off shore Namibia, including 7 in the Kudu gas field.In June 2000 a
license was awarded in northern Namibia to Vanco Energy. This license and the license over Kudu are the
only current full exploration licenses in Namibia. In 2002 Shell withdrew from the Kudu Block and the
license was taken over by the then partners, ChevronTexaco and Energy Africa. Recently many other
licences have been awarded for exploration both onshore and offshore Namibia.
The frontier regions available in the Fourth Offshore Licensing Round offer companies the opportunity to
further explore the oil and gas potential in South Africa. The OrangeBasin boasts the Kudu gas discovery
on the other side of the international boundary in Namibia, and some success has already been proven in
the basin within South Africa. The Petroleum Agency SA are offering this deepwater region of the Orange
Basin covering an area of 43,000 square kilometres off the west coast of South Africa and bounded to the
north by the Namibia/South Africa international border.
The area of activity is located offshore in the Atlantic Ocean. Offshore Namibia can be considered relatively
under-explored. Only 14 exploration wells have been drilled so far in an area that covers more than 500,000
km. Five of the wells are located in the Kudu gas field which has 1.4 TCF of proven reserves and an upside
of 20 TCF. Kudu is the only commercial hydrocarbon discovery in Namibia up to now.
Active Companies
Tullow Oil has development activities in Production Licence 001 which includes the Kudu gas field
located 170 km offshore the south-west coast of Namibia. Tullow, which acquired the licence as part of
the Energy Africa acquisition, is the operator of the 4,567 sq km licence and the current focus is on
evaluating the development options for the Kudu field.
Chariot Oil and Gas Limited is an independent oil and gas exploration company with interests in
Namibia.
Four licences covering eight offshore blocks in Namibia
Large block allocation - one of largest holding in Namibia - 38,725 km2
8.5 billion barrels of gross unrisked mean prospective resources
3 geologically distinctive basins - well positioned across Namibian South Atlantic margin
Universal Power Corp is a small Canadian company that owns the following oil and gas concessions
located offshore Namibia, Africa.
2.7% carried interest in Block 1711
90% working interest in Blocks 2713A, 2713B, 2815, 2816 and 2915
40% working interest in Blocks 2813A, 2814B and 2914A
Energulf meanwhile owns 10% of Block 1711, situated in the Namibe basin off the northern coast of
Namibia along the international boundary with Angola. 70% belongs to Nakor Investments Ltd. (an
affiliate of Sintez Group)
BHP Billiton were awarded two licences in 2005
Tower Resources is an AIM listed company with interests in Blocks 1910A, 1911 and 2011A covering
an area of approximately 22,000 sq km offshore Namibia, in water depths ranging from 200 to 3,000
metres.
HRT is the operator of five exploration blocks in the Namibian offshore, covering an area of 26,815 km2
(6.6 million acres). The Company holds a 100% participating interest in two blocks in the Walvis Subbasin, or the Walvis Blocks, and a 40% participating interest in three blocks in the Orange Sub-basin, or
the Orange Blocks, in association with UNX Energy Corp, and Acarus Investments (Pty) Ltd, a private
Namibian company.
Downstream
Namibia does not have any refinery or LNG terminals
Regulation
In June 1999 the Namibian Cabinet approved the adoption of an open petroleum licensing system in
Namibia. Namibia accepts bids both onshore and offshore at any time. Namibia offers a streamlined and
attractive fiscal package, with some important new incentives, for petroleum exploration, development and
production operations.
The relevant oil and gas legislations are:
The Petroleum (Exploration and Production) Act, 1991 Sets out the Royalty
The Petroleum (Taxation) Act, 1991 Sets out the PIT (Petroleum Income Tax) and APT (Additional
Profits Tax)
Petroleum (Exploration and Production) Amendment Act 1993 (Act 2 of 1993): As amendment the
Petroleum (Exploration and Production) Act, 1991, so as to provide for agreements to be concluded
between the Minister of Mines and Energy and license holders relating to training programmes and
contributions to the Petroleum Training and Education Fund
The Petroleum Laws Amendment Act, 1998 Introduces a number of specific new incentives for Third
Round licensees.
Petroleum Act 1991: Regulations Related to HSE
Niger
Basic information
Population:
16,468,886 (July 2011)
Currency:
Communaut Financiaire Africaine Franc (CFA Franc)
Exchange rates:
1 US$ = 454.26416 XOF (Quarterly Avg. July-September 2011)
GDP (PPP):
GDP-per capita:
US$ 700
Head of State:
H.E. Issoufou Mahamadou, President (since 7 April 2011)
Head of Government:
H.E. Brigi Rafini, Prime Minister (since 7 April 2011)
Overview
Niger offers an unexplored opportunity for oil and gas industry. Up till now, the country is 100 per cent
dependent on oil and gas imports for domestic consumption. However, it has recently garnered interest of
oil production giants and is soon expected to commence production of oil and gas in 2012.
The current estimation of reserves of oil and gas is estimated at about 324 million barrels. About 60 per
cent of the reserves are expected to be used for domestic consumption while the remaining 40 per cent
shall be exported to international markets.
Socit Nigrienne de Dpt dEssence et de Ptrole (SONIDEP) is the national oil company of Niger and
responsible to buy refined oil products and to commercialise them in the country. SONIDEP is in charge of
providing the country, gas and oil products and managing the stocks of petroleum resources is necessary
for the energetic needs of the country.
China National Petroleum Corporation (CNPC), the Chinese NOC, operates two exploration and
development projects in Niger namely Block Bilma and Block Tenere since 2003, with a holding of 100%
and 80% respectively. Block Bilma and Block Tenere cover an area of 60,884 square kilometers and 71,155
kilometers respectively. 2D seismic data acquisition and integrated studies on Block Tenere started in 2005.
On October 30, 2006, the first exploration well, Saha-1 in the Block Tenere commenced drilling and
favorable rocks were found.
Niger government signed an integrated upstream and downstream deal with CNPC in the year 2008 for
US$ 5 billion. As per the contract terms, CNPC shall explore and produce petroleum in the Agadem Block
covering 261 square kilometers in the Diffa region of the north east of Niger and construct a 2,000 kilometer
pipeline in the country to facilitate export-shipment of oil to other countries. Government estimated reserves
of approximately 324 million barrels (51,500,000 m3) in the area. As a part of the first phase of construction,
CNPC started building a refinery in Zinder which was expected to be completed in 2011. But till April 2011,
only 72 per cent of work was completed and it is now expected that the refinery would be commissioned in
2012 only. The refinery, when completed shall have a capacity of 20,000 bpd per day or 1 million tons/per
annum. Government estimates the Agadem oilfield to increase Nigers export revenue by 40 per cent post
its oil production in 2012.
CNPC also provides oilfield services in Niger including well drilling, geophysical prospecting and logging.
CNPC had one seismic crew, one drilling crew and 6 logging and testing crews operating in Niger in 2007.
Niger Oil and Gas Industry: A Snapshot

Organisation
SONIDEP State-owned company for importing, transporting,

storage, refining and marketing of petroleum products in Niger.
Primary port for imports
Cotonou
Key oil and gas products
Diesel, gasoline, jet, kerosene, bitumen etc.
Oil block location
27,660 square kilometer tract in the Termit Trough, Chad Basin
Oil reserves
324 million barrels
Major oil pipeline
2000 kilometer pipeline
Interested bidders
CNPC, Petronas, Sonatrach, Burren Energy, South Africa

Energetic, ATI Petroleum, Tullow and TransAfrican Energy.
Award of oil block
CNPC signed an agreement with Niger in June 2008 for US$ 5

billion to drill 18 exploration wells over a span of next eight years
out of which 11 to be constructed in next four years.
Major Refinery (capacity, bbl/d)
Zinder which is expected to be completed in 2011 (20,000), till April,

2011 more than 72% per cent work has been completed
Oil consumption and imports

Niger Oil Consumption (Petroleum products volume sold in Niger)
400000
350000
SalesVolume M3
300000
250000
200000
150000
100000
50000
0
2005
2006
2007
2008
2009
2010
Source: SONIDEP
The above chart depicts the historical consumption of oil from 2001 till 2009. The oil consumption grew by
approximately 2 per cent in the last eight years.
Oil is a major commodity for import, and accounted for approximately 12 per cent of the countrys total
import (by value) in 2010. The key product categories in demand for domestic consumption in oil products
are gasoline, diesel, kerosene and LPG, which are imported from Persian Gulf Countries and Nigeria.
Petroleum products consumption breakup - 2010
1%
3%
6%
4%
30%
SKO
Gas Oil
Gasoline
Fuel Oil
Jet Fuel
Otehrs
56%
Source: SONIDEP
Gas oil and SKO are the major petroleum products being consumed in Niger which were 56 per cent and 30
per cent respectively in 2010.
Nigeria
Basic information
Population:
Currency:
Nigerian Naira (NGN)
Exchange rates:
1 US$ = 152.182 NGN (Quarterly avg. July-Sept 2011)
GDP (PPP):
GDP Per Capita:
US$ 2500 (2010 est.)
GDP Growth:
Head of State:
H.E. Mr. Goodluck Jonathan, President (Since 5 May 2010, acting since 9
February 2010
Head of Government:
H.E. Mr. Goodluck Jonathan, President
Overview
Nigeria, an OPEC member since 1971, is the largest oil producer in Africa and tenth largest producer in the
world. According to the ENI World Oil and Gas Review 2011, the country was the fifth largest exporter of
crude oil in the world in 2010, after Saudi Arabia, Russia Iran and Canada. Nigerias export partners are
chiefly the US (37.4%), India (10.5%), Brazil (7.8%),Spain (6.9%), and China.
Oil is the country's most important resource and generates over 95 per cent of export revenues (total export
revenue of US$ 82.54 billion in 2010) , 85 per cent of government revenue and approximately 40 per cent of
GDP. Nigeria's hydrocarbon sector is regulated by the Ministry of Petroleum Resources. The government
retains close control over the hydrocarbon sector and the activities of the country's NOC, the Nigerian
National Petroleum Corporation (NNPC), which was created in 1977. At that time, NNPC's primary function
was to oversee the regulation of the Nigerian oil industry, with secondary responsibilities for upstream and
downstream developments. In addition to its exploration activities, the Corporation was given powers and
operational interests in refining, petrochemicals and products transportation as well as marketing. In 1988,
the Nigerian government divided the NNPC into 12 subsidiary companies in order to better manage the
country's oil industry.
The majority of Nigeria's major oil and natural gas projects are funded through joint ventures (JVs), with the
NNPC holding a 55-60 per cent stake in the JV. The largest JV is operated by Shell Petroleum
Development Company (SPDC). Other foreign companies operating in JVs with the NNPC include most of
the oil majors like ExxonMobil, Chevron, ConocoPhillips, Total and other companies like Agip and Addax
Petroleum. The remaining JVs are comprised of PSCs, which are mostly confined to Nigeria's offshore
deepwater development program. China has made good investment in recent years in all sector, specially
hydrocarbon, through its NOCs and private companies.
In April 2000, the Nigerian government set up a new committee on oil and gas reform to deal with the
deregulation and privatization of NNPC. Seven subsidiaries of NNPC are due to be sold including the three
refineries, the Eleme Petrochemicals Company Ltd, the Nigerian Petroleum Development Company and the
partially owned oil marketing firm, Hyson Nigeria Ltd.

As of January 2011, Nigeria had 37.2 billion barrels of proven oil reserves (~2.7% of proven global
reserves), making it the holder of the second largest oil reserves in Africa after Libya (~3.4%). In 2010, the
country's crude oil production averaged 2.436 million bpd, a 16 per cent increase from 2009 production of
2.098 million bpd. Nigeria contributed over 23 per cent of total Africas oil production in 2010. At the current
production levels, countrys oil R/ P ratio is approximately 42 years. In recent years, Nigeria achieved
highest oil production at the levels of 2.518 miilion bpd in 2005.
Nigerias per capita oil consumption is 0.64 barrels which is almost half of the Africas average per capita oil
consumption at 1.30 barrels.
Nigeria Oil Reserves, Production and Consumption
40,000
35,000
2518
2,500
Oil Reserves (Mb)
30,000
2,000
25,000
20,000
1,500
15,000
1,000
10,000
500
5,000

('000 bpd)
3,000
0
1995
2000
Oil proved reserves
2005
2008
Oil Production
2009
2010
Oil consumption
Majority of production and reserves of Nigeria are in Niger River delta, Bight of Benin, Bight of Bonny, and
Gulf of Guinea. The country's main oil producing fields are Bonga, Gbaran/Ubie field, Yoho, Agbami,
Amenam, Akpo, Usan and Bolia. Nigeria has six export terminals including Forcados and Bonny (operated
by Shell); Escravos and Pennington (Chevron); Qua Iboe (ExxonMobil) and Brass (Agip). Nigeria's export
blends are light and sweet crudes, with gravities ranging from API 29 to 36 degrees and low sulphur
contents of 0.05 to 0.2 per cent. The country's Bonny light and Forcados blends are considered amongst
the best gasoline producing blends in the world.
Nigerian oil sector has attracted the top International Oil Companies (IOCs) and National Oil companies
(NOCs), some of them are Shell, ChevronTexaco, ExxonMobil, Total, ENI (Agip), ConocoPhillips, Statoil,
Addax, Petrobras, Devon Energy, Nexen, SINOPEC, ONGC and CNOOC.
Nigeria has also come up with the new novel digital reservoir monitoring technology to scan mature oil
wells by identifying zones of by-passed hydrocarbons in an old oil well for one of the major international oil
companies.

Nigeria holds over 34 per cent of proven gas reserves of Africas total reserves. As of January 2011,
Nigeria held the largest proven gas reserves in Africa and the eighth largest in the world with 5.34 Tcm. In
2010, the country produced 32.06 Bcm of gas, giving it a Gas R/P ratio of ~165 years. The majority of the
country's gas reserves are located in the prolific Niger Delta.
6,000
35,000
5,000
30,000
25,000
4,000
20,000
3,000
15,000
2,000
10,000
1,000
5,000
0
1995
2000
Gas proved reserves(Bcm)
2005
2008
Gas Production(Mcm)
2009
Production & Consumption (Mcm)
Gas reserves (Bcm)
Nigeria Gas Reserves, Production and Consumption
2010
Gas consumption(Mcm)
Source: ENI World Oil & Gas Review/BP Statistics
Nigeria has come up with the new gas investment plan. This project is to bring to an end speculation about
the governments sincerity to attract the needed investments to the sector. According to the Gas Master
Plan Agenda, the project is targeted at generating US$25 bn worth of investments in gas processing,
transmission and downstream utilisation. Also expected to rejuvenate the sector is foreign direct investment
worth US$ 10 bn in the next 3 years. Its potentials are immense.
The objective of the gas master plan at the conceptual stage was to end gas flaring in the Niger Delta
region where communities for almost 5 decades had been victims of unprecedented gassing. This is a very
vital issue because the activities of gas production impact negatively on the environment, health and
economy of the local communities who suffer the toxic flames resulting from gas flares.
Another issue closely related to the problem is that Nigeria loses about US$ 2.5 bn annually from the failure
of companies to either utilise or re-inject associated gas. By the year 2014, the gas revolution would
position Nigeria firmly as the regional hub for gas based industries such as fertilizers, petrochemicals, and
menthol and other downstream chemicals and petrochemicals.
Oil Refining
Nigeria has three refineries, all owned by NNPC with total refining capacity of 450 thousand bopd. These
three refineries are located in Warn, Kaduna, and Port Harcourt.
The Warii refinery came on-stream in 1978 and has a nameplate capacity of 125,000 bpd (19,900 m3 per
day). It is operated by the Warri Refining and Petrochemical Company (WRPC), an NNPC subsidiary. The
refinery is jointly managed with a petrochemicals plant which produces 13,000 tonnes per year of
polypropylene and 18,000 tonnes per year of carbon black.
The Kaduna refinery in northern Nigeria has capacity of 110,000 bpd (17,000 m3 per day). The refinery is
operated by an NNPC subsidiary company, The Kaduna Refining and Petrochemical Company (KRPC).
The Port Harcourt I and II refinery (PHRC) has a capacity of 210,000 bpd (33,000 m3 per day) (Port
Harcourt I 60,000 bpd and Port Harcourt II 150,000 bpd).
All these three refineries have been operating at significantly below their respective installed capacity due to
various reasons, including operational inefficiency and lack of maintenance, necessitating Nigeria to import
85 per cent of its petroleum product, requirement prices of which make them vulnerable to the crude oil
prices. According to ENI World Oil and Gas Review 2011, Nigerian refinery utilization was merely 36 per
cent in year 2010, a sharp decline from 55 per cent in year 2005, and well below the Africas average
current refining capacity utilization at 74 per cent .
To increase refining capacity, the Nigerian government is planning to revive the privatization of domestic oil
refineries, granting permits to build several independently-owned refineries. Oando, a leading petroleummarketing company in Nigeria, is considering a two-phased construction of a refinery in Lekki free trade
zone in Lagos. The just-concluded feasibility study into the proposed 240,000 bopd greenfield oil refinery
has raised hope in the downstream sector. The proposed second phase capacity would be 360,000 bopd.
Nigeria is in considering privatizing state entities by selling NNPC's three oil refineries, petrochemicals
plants, and its Pipelines and Products Marketing Company (PPMC). Although IOCs have shown little
interest in investing in the country's refinery privatization the Nigerian government has started talking to
many foreign prospective investors.
Nigeria signed a deal of US$8bn deal to construct the first of the refineries by the China State Construction
Engineering Corporation (CSCEC) in July 2010.
Chinese investors and NNPC signed a MoU in May 2011, under which it was agreed to build three
refineries and one petrochemicals complex in Nigeria. The refineries will be located in Lekki (Lagos state),
Brass (Bayelsa state) and Lokoja (Kogi state). These three refineries would save Nigeria about US$10bn a
year in petroleum products import costs and the country would be in a position of exporting petroleum
products. It is expected that these refineries would be completed by 2015.
Zamfara State in Nigeria is planning to build a 200,000 bpd refinery that would reduce refined products
transportation cost from the southern and central part of the country to north. The state has allocated
US$1.92bn to build this refinery. Feasibility report of the refinery project had been submitted to NNPC for its
review and now NNPC would study the report and establish the project's economic practicability and if
found feasible would give clearance to the project.
Currently, regulated retail prices of petroleum products in Nigeria discourage refineries from increasing
throughput and encourage the resale of refined products on the black market. Moreover, low domestic fuel
prices make it more profitable for oil companies to export crude output rather than feed local refineries. To
overcome with these problems, Nigeria's Petroleum Industry Bill aims among other things to deregulate the
downstream segment, helping to restore profitability.
NNPC recently has signed two new yearly contracts to swap its crude for refined products imports. The new
contracts account for around half Nigeria's products demand and one or two similar deals are likely to be
struck shortly to account for the remainder. However these contracts offer a temporary solution to make
product supplies more stable and predictable, Nigeria's fuels supply and distribution problems will only be
resolved through massive investment in its downstream and transport infrastructure.
The first swap deal provides for NNPC to sell 60,000 bpd of crude to European oil trader Trafigura in
exchange for refined products of equivalent value. The deal is worth around US$1.7bn. Deliveries from
Trafigura will amount to around 200,000 tonnes (about five or six standard gasoline cargoes per month).
Under the second swap deal, NNPC has committed to providing 30,000b/d of crude to Cte d'Ivoire's
national refiner Socit Ivorienne de Raffinage (SIR) in return for refined products from the Abidjan refinery.
Products volumes are likely to be 100,000 tonnes a month (equivalent to two or three cargoes), with the
deal worth around US$850mn assuming US$80 per barrel Brent.
LNG projects
Nigeria's US$3.8bn LNG plant on Bonny Island was completed in September 1999. Companies involved in
this project include NNPC, Shell, Total, and Agip (Eni). The fourth and fifth trains were commissioned in
2005 and later on sixth LNG train of 5.5 bcm per annum capacity was started aggregating total LNG
capacity to 31 bcm per annum (22 mtpa). Presently gas is being supplied from dedicated gas fields.
However, it is expected that half of the gas would be supplied as associated gas from the Akri/Oguta,
Otumara, Utapate and offshore blocks where currently gas is being flared. A seventh train is currently under
construction, with a capacity of 8.4 mtpa, and is expected to come online 2016 or beyond, which was earlier
expected to be completed by 2012. When onstream, it would help make Nigeria the world's second largest
LNG exporter after Qatar. Three more LNG projects, namely OK LNG (4 trains), Brass LNG (2 trains),
Progress LNG (1 train) are under development in Nigeria in addition to the Bonny plant. .
Project
Existing Capacity (Mmtpa)
Nigeria LNG (Train 1 and 2)
5.90
Nigeria LNG (Train 3)
2.95
Nigeria LNG (Train 4 and 5)
8.20
Nigeria LNG (Train 6)
4.00
Brass LNG
SevenPlus
4.10
10.00
8.40
Olokola LNG
Total
Proposed (Mmtpa)
22.00
20.95
44.50
Source: mbendi
These projects are at various stages of development and investment decisions will depend primarily on
security, world LNG markets, and the final outcome of the Petroleum Industry Bill. Availability of natural gas
for these projects will also depend on countrys efforts to expand the use of natural gas for domestic
electricity generation efforts that are included in both the Gas Master Plan and the PIB.
The main companies involved in the development of the country's LNG facilities are NNPC (49 per cent
stake in each LNG project), Shell, Total, Agip, Chevron, ConocoPhilips and BG.
In 2009, the Nigerian government developed a Gas Master Plan that would promote new gas-fired power
plants to help reduce gas flaring and provide much-needed electricity generation. The Gas Master Plan
aims to create a fully liberalized gas market within five years by creating infrastructure and
commercialization of domestic market complimenting with other regional and export LNG markets.
Pipelines
Nigeria has 15 pipelines to transport crude for export a well as to its refineries with aggregate length of
about 1,000 miles with varying diameter from 10.75 to 48 inch. The longest crude pipeline Escravos/ Wari/
Kaduna in the country is 420.94 miles long and 24 and 16 inch in diameter operated by NNPC/ Pipeline and
Products Marketing Company (PPMC).
Nigeria also has 16 petroleum products pipelines with aggregate length of 3,890 miles, all are being owned
and operated by NNPC/PPMC.
Also, Nigeria has 21 gas pipelines with total length of about 1,230 miles with aggregate carrying capacity of
99.5 bcm/year but most of the pipelines are poorly utilized. These gas pipelines are being operated by
Nigerian Gas Company, Nig LNG Limited, Shell PDC Limited, Nig Agip Oil Co Limited and Total EPNG
Limited individually.
Nigeria started exporting part of its natural gas via the West African Gas Pipeline (WAGP) in 2010. This
transnational pipeline is 420-mile long and carries natural gas from Nigeria to Ghana via Togo and Benin.
Initially gas is expected to reach to a capacity of 170 million cubic feet per day (MMcf/d) and further plans
are in place to expand the capacity to 450 MMcf/d and might extend the pipeline further to Cote dIvoire.
There is a possibility of Trans-Saharan Gas Pipeline (TSGP) in future in which Nigeria and Algeria shown
interest. If it is successful, it would be a 2,500-mile pipeline which would carry natural gas from oil fields in
Nigerias Delta region to Algerias Beni Saf export terminal on the Mediterranean. In 2009 the NNPC and
Algerian NOC Sonatrach signed a MoU in order to proceed with plans to develop the pipeline. Several
national and international companies have shown interest in the TSGP project including Total and
Gazprom. The main reasons of delaying this trunk pipeline project are security concerns along the entire
pipeline route, costs escalations and unrest in few of the countries in Africa including Nigeria.
Exploration and Licensing Rounds

Though the Nigerian petroleum industry dates back to 1908, the first oil discovery happened in 1956 in
Oloibiri field by Shell DArcy. During 1950-60, oil giants like Mobil (in 1955), Texaco, Chevron (both in
1961), Elf and Agip (in1962) entered the country. Subsequent to Nigerian entry in OPEC in 1971, the
concessions were evolved into JVs of foreign companies with NNPC, where costs and revenues are split on
equity basis.
In 1991, the government of Nigeria offered 137 blocks in the Niger Delta for bidding as part of its program to
boost the countrys crude oil reserves and increase production capacity. The blocks attracted bids from a
number of major oil companies. Some of the successful bidders included Statoil, Amoco, Exxon, and
Conoco. A number of small domestic companies were also awarded concessions based on PSCs. A
number of major discoveries were made in the deepwater blocks after 1996, totalling about 7 billion barrels
of oil and 540 bcm of gas. This included the Bonga field, containing up to 1 billion barrels of proven oil
reserves and operated by Shell Nigeria, which began production in October 2005.
In 2005, the Nigerian government put up 61 blocks for bidding, which included 12 deepwater blocks.
Another 14 blocks, which had been withdrawn from a number of multinational operators, including Shell,
Chevron and Total, were subsequently added to the 60 blocks put up for bidding. The purpose of listing the
additional 14 blocks was to encourage investors to develop power plants and LNG project in Nigeria. In
addition, a number of these blocks were offered as part of a deal for the Kaduna Refinery privatization, The
blocks put up for bidding in the 2005 round included blocks in the Joint Development Zone (JDZ), shared by
Nigeria and neighbouring Sao Tome and Principe (STP). The JDZ could potentially hold up to 14 billion
barrels of oil reserves. In 2006, PSCs were signed for three of the blocks, from which revenues are to split
between Nigeria and STP on a ratio of 60:40 basis respectively.
Nigeria was expected to launch a new licensing round in 2010, however it has got postponed to end-2011,
awaiting government approval.
Oil major Total announced in November, 2011, that its subsidiary Total E&P Nigeria (TEPNG) has made a
new oil discovery in the south-eastern corner of Oil Mining Lease (OML) 102 in Nigeria. The discovery is
situated 65 kms off the southe-astern coast of the country, about 15 kms south-east of the Ofon field. OML
102 is operated by TEPNG with a 40% participating interest while Nigerian NOC-NNPC holds the remaining
60% in the JV.
Joint Development Zone (JDZ)

The first licensing round for the JDZ was announced in April 2003; the Joint Development Authority (JDA)
supervised the JDZ and put up nine blocks for tender. Only one block i.e. Block 1, for which the first
Production Sharing Contract (PSC) was signed in February 2005. ChevronTexaco, ExxonMobil and Energy
Equity Resources were awarded Block 1 with ChevronTexaco as Operator with 51 per cent participating
interest, other shareholders are ExxonMobil 40 per cent and Energy Equity Resources of Norway 9 per
cent. In November 2004, out of the remaining blocks in JDZ, six blocks i.e. Block 2, Block 3, Block 4, Block
5 and Block 6 were offered for tendering. The blocks were awarded to various consortia of local companies
and IOCs. Addax Petroleum farmed-in later as operator in Block 3 and Block 4, whereas Sinopec was
granted operatorship in Block 2. ONGC Videsh holds 13.5 per cent participating interest in Block 2 where
drilling activities started in September 2009.
Addax Petroleum's holdings in Joint Development Zone
Block
Net Acres
Working
Operator
interest %
Partners
Interest
Carried
Block 1: It is located approx. 300 km

offshore Nigeria and it covers an area of
69,600
42.37%
Total
0.00
24,500
14.33%
Sinopec
7.33
174,000 acres (704.5 km ). The water

depth ranges from approx. 1,600 m to
1,900 m.
Block 2: It covers an area of 171,300 acres
(693.5 km2). The water depth ranges from
approx. 1,300 m to 1,900 m.
Block
Net Acres
Working
Operator
interest %
Partners
Interest
Carried
Block 3: It covers an area of 164,700 acres

(667 km2). The water depth ranges from
108,700
66.00%
approx. 1,700 m to 2,100 m.

Block 4: It covers an area of approx.
211,700 acres (857 km2). The water depth
Addax
10.00
Petroleum
96,300
45.50%
Addax
19.50
Petroleum
ranges from approximately 1,800 m to

2,200 m.
Source: Addax Petroleum
The second licensing round for the JDZ was announced in November 2004 which made an additional 5
blocks available.
In the bid round of 2006, most of the pre-qualified companies were given the rights of first refusal in return
for downstream and infrastructure commitments. Eleven blocks were allotted. The winning bidders included
ONGC Mittal Energy Ltd (2 blocks), BG (one block) and CNPC (2 blocks). In April 2007, 41 blocks covering
56,118 sq. km were up for bid for the 2007 bidding round. It comprised exploration acreage in Nigerias
onshore, continental shelf and deepwater sectors. Similar to two previous rounds, companies were offered
the First right of refusal in exchange for an agreed commitment to invest in downstream and infrastructure
projects in Nigeria. Nigerian companies like Dangote, Conoil, along-with two Indian companies made an
entry in the bidding process.
Senegal
Basic information
Population:
12,643,799 (July 2011 est.)
Currency:
CFA Franc BCEAO (XOF)
Exchange rates:
1 US$ = 454.264 CFA-XOF (Quarterly Avg. - July to September 2011)
GDP (PPP):
4.2% (2010 est.)
GDP-per capita:
US$ 1,900 (2010 est.)
Head of State:
President Abdoulaye Wade (since 1st April 2000)
Head of Government:
Prime Minister Soulayemane Ndene Ndiaye (since 1st May 2009)
Overview
Petroleum exploration in Senegal began 60 years ago in 1952 with first exploration well being drilled in
1953. Since that time, nearly 150 wells have been drilled in the search for hydrocarbons. During the 1950s
petroleum prospecting started and in the 1960s and 1970s, a number of small fields were discovered, but
most of them were not exploited.
Senegal has a limited upstream oil industry, though it is gradually gaining importance in its economy. The
downstream industry is important, with Senegal being one of the four refining countries in West Africa.
During the period 1996 to 1998, Senegal undertook an aggressive economic reform programme including a
privatisation drive which affected the energy sector, in particular the downstream industry.
In 2010, daily consumption in Senegal was about 41,000 barrels, which is small in comparison of other
countries in the world. It grew at a CAGR of 2.8% in last 10 years between 2000 and 2010. The limited
sized consumption explains the challenges it faces in establishing an efficient and competitive downstream
petroleum sector.
National Oil Company of Senegal is PETROSEN, which came in existence in May 1981 to serve as the
implementing tool for the State's petroleum policy.
50
45
40
'000 BPD
35
30
25
20
15
10
5
0
1995
2000
2005
Oil Imports
2008
2009
2010
Oil Consumption
Currently, the demand of oil is purely met through imports. Per capita consumption of oil in the country was
1.17 barrels in 2010, which is lower than the average per capita consumption of 1.30 barrels in the same
year taking Africa as a whole. The exports stood at 1,000 barrels per day in the year 2010.
12
70
10
60
50
40
6
30
4
20
10
Production & Cosnumption (Mcm)
Reserves (Bcm)
0
1995
2000
Gas Reserves
2005
2008
Gas Production
2009
2010
2011
Gas Consumption
At present, the country has 10 billion cubic meters of gas reserves. Both production and consumption of gas
stood at 20 million cubic meters in the year 2010. The per capita consumption of the country in 2010 stood
at 1 cubic meter which is consistent since 2008, against 112 cubic meters for entire Africa. The production
consumption ratio of the country was 0.94 in the year 2010 and 1.00 in 2008 and 2009 whereas it was 2.02,
taking Africa as a whole in the year 2010.
Fortesa, a private US company, initiated natural gas production in Senegal with an output of approximately
3,50,000 cu. meters per day by the end of 2008, all of which is sold to Senelec, which is Senegals only
commercial gas setup. Senegal does not have big provisions and most of the hydrocarbons are in
stratigraphic plates. Thus it becomes difficult for private companies to explore in the areas where there is no
identified production as it takes lot of research and time and a huge amount of monetary investment is
required in the offshore segment.
Oil Refining
Senegal's sole oil refinery, Societe Africaine de Raffinage (SAR), produces 1.35 million tonnes of fuel per
year (27,000 barrels per day), accounting for two-thirds of Senegal's 1.8 million tonnes of demand for
refined products. Senegal purchases crude for SAR through a state-to-state deal with Nigeria where the
price is negotiated every three months and the government of Senegal pays the bill. Senegal does not have
sufficient facilities to store imported crude oil and refined products for its own requirements.
The SAR refinery is at Mbao, 23 Km from Dakar. It was built in 1963 and in 2006 Shell sold its 23.6% stake
in the refinery. The refinery was originally built with a capacity of 0.9 million tonnes/yr but was recently been
expanded to 1.35 million tonnes/yr. As there is very little local hydrocarbon production in Senegal and
almost all the electricity is produced from oil. Senelec, the state power company, is a large buyer of fuel
from both SAR and the Senegalese marketers.
SAR refinery has accumulated a huge debt and is finding it difficult to be financially sustainable. There is a
cost to the economy in providing protection to it. Currently gasoline, kerosene, and diesel are levied a fee
amounting to some $0.07 per liter to help amortize the debt owed by the refinery. Also, SAR plant does not
have a hydro-desulphurization unit (HDS), which means it can refine crude with low sulphur content, which
is more costly in the international market. Apart from additional refining capacity, SAR also needs much
bigger crude storage facilities if it aims to keep prices down.
In 2010, SAR secured 194 billion CFA in loans to cover the cost of a year's worth of feedstock. With this
amount, it secured a full year of supply. UBA Bank had provided SAR with a 153 billion CFA loan and
Ecobank with a 41 billion CFA loan. Saudi Binladin Group has a 34 percent stake in SAR, while French oil
company Total has 20 percent. The remaining stake is controlled by the Senegalese state. The SAR
management is imagining to eventually expanding its capacity from 1.2 million to 3 or even 4 million tonnes.
Senegal has big LPG market. SAR cannot meet the local LPG demand, and imports large quantities by half
yearly tender. Subsidized LPG is sold in small cylinders to promote its use by households as a cooking fuel
and thus kerosene consumption is almost absent in Senegal. Senegal has a need to improve the
infrastructure for the import and storage of LPG. The estimated cost is in the range of US$3035 million.
Gas pipeline
A network of pipelines relates the Gadiaga field (32 km pipeline of 4.5 inch diameter) and Diamniadio fields
(9 km double pipelines of 3 inch diameter each) to the Kabor gas terminal, which in turn is connected to the
Cap des Biches power plant through a 10 km pipeline of 6 inch diameter.

So far, 142 exploratory wells have been drilled in the Senegal Sedimentary Basin, most of them
concentrated in the locality of Cap-Vert Peninsula, and in Casamance offshore, with more than 67 % of the
total wells drilled. The Senegal Basin outside these two zones remains quite underexplored. Most of the
boreholes were shallow with depths less than 1,200 meters and many of them were poorly located. Lesser
than 30 wells are really important from a petroleum point of view, which related to the 225,000 sq km of
surface basin area estimated to the 200 meters bathymetric shape, represents an average explored surface
of 7,500 sq km per well.
Exploration is under the control of national exploration company, Petrosen. Petrosen is under the
supervision of the Ministry in charge of the Energy sector, which through its Department of Energy ensures
the control and follow-up of petroleum operations based on the Petroleum Code. Petrosen, in collaboration
with the Department of Energy, prepares and negotiates all petroleum conventions and contracts.
Conventions and Production Sharing Contracts (PSC) are signed between the Minister of Energy and the
petroleum companies, while Petrosen signs a Joint Operating Agreement (JOA).
List of some exploration blocks in Senegal is as follows:
The shallow-water Offshore blocks
The Casamance offshore shallow blocks
The Northern offshore shallow blocks
The Dome Flore Block
The deep-water offshore blocks
The Deep Offshore North
The Casamance deep offshore block
The Onshore blocks
The Casamance onshore blocks
The Diourbel - Saloum blocks
The Louga block
The Senegal East block
The Sebikhotane block
The Thies block
The major exploration companies involved in Senegal include Vanco Energy, Roc Oil Company, Fusion Oil
and Gas and Benton Oil and Gas.
Projects in the past:
In December 1997, Benton signed a memorandum of understanding with Petrosen for a 45 % interest
and operation of the onshore Thies block. Benton also acquired from Petrosen the exclusive rights to
evaluate and reprocess geophysical data for Senegal's shallow near-offshore acreage, and to choose
certain blocks for further data acquisition and exploration drilling.
Vanco Energy, the Texas-based oil venture, signed a production sharing agreement (PSA) with the
government of Senegal in October 1999.
Australia's Roc Oil signed a PSC with Senegal's Ministry of Energy and Mines in October 1999. The
PSC gave Roc and Petrosen exclusive rights to explore the Casamance Offshore Blocks I, II and III for
an initial period of three years, renewable for up to an additional four years.
Latest exploration projects:
Five onshore and eight offshore blocks of the Senegal Sedimentary Basin including AGC Dome Flore
blocks are presently opened and offered for tender. The Diam Niadio and Gadiaga gas fields, the Dome
Flore heavy and light oil accumulations as well as the new potential in Deep water sections and the
plays in the Paleozoic basin, should provide incentives to the future search for hydrocarbon in this
underexplored petroleum province.
Three Exploration and Production Sharing Contracts have been signed between ORANTO Petroleum
Ltd, a Nigerian based company and the State of Senegal, on December 3rd 2009 for the following
blocks: Cayar Offshore, Saloum and Senegal Onshore South.
Rufisque Offshore, Sangomar Offshore & Offshore Deep License (First Australian Resources and
Petrosen): Six turbiditic and carbonated prospects have been cartographied from the processed 3D
seismic data acquired in 2007. Therefore, a CSEM (Seabed Logging) acquisition on the turbiditic
prospects is planned for 2009.
Saint-Louis License (Tullow Oil, Dana Petroleum & Petrosen): A survey of 3D seismic data for 650 sq
km acquired over Ibis and Flamengo leads between April and May 2008. An additional acquisition of
1700 km of 2D seismic in 2009.
Tamna License: In 2008, the Association Fortesa and Petrosen initiated a drilling campaign for three
exploration wells, which led to an evaluation of approximately 1bn cubic meter of gas reserves for the
Sadiaratou wells.
E&P companies operating in Senegal will drill three offshore wells in the year 2012 according to the stateowned oil company, Petrosen. Senegal government held talks with more than 10 oil companies this year in
attempts to lure investors to its energy industry. Seismic studies show one block, under exploration by First
Australian Resources Ltd., may contain as much as 1 billion barrels of crude. The Subiaco, Australia-based
company is also planning to drill a second site that may hold another 200 million barrels.
The oil industry in Senegal is regulated by the Ministry of Energy, Mines and Industries and its national oil
company is Petrosen. Hydrocarbon exploration and production in Senegal is governed by Law N0 98-05
enacted on January 5, 1998.
Petroleum operations in Senegal are governed by Law N 98-05 establishing the Petroleum Code.
The amount of petroleum products that need to be imported is assessed every 15 days by a committee
comprising representatives of the Comit National des Hydrocarbures (National Hydrocarbon Committee), a
consultative body reporting to the Ministry of Energy; SAR; and all the licensed importerswhich allocates
the import entitlement to one or more operators.
The 1998 Petroleum Code offers a stimulating juridical and fiscal environment, and introduces the
possibility of signing an Exploration Production Sharing Contract within the framework of a service contract,
in addition to the Concession Agreement.
Legal and contractual documents:
Law N 98-05 of January 08, 1998 stating the Petroleum Code
Decree N 98-810 of October 06 1988, establishing the conditions of the application of the Petroleum
Code
The 1998 model Concession Agreement
The 1998 model of Exploration Production Sharing Agreement
The 1998 model of Joint Operating Agreement with Petrosen
Sierra Leone
Basic information
Population:
Currency:
Leones (SLL)
Exchange rates:
1 USD = 4338.924 SLL (Quarterly Avg. July-September 2011)
GDP (PPP):
GDP-per capita:
US$ 900 (2010 est.)
Head of State:
H.E. Mr. Ernest Bai KOROMA, President
Head of Government:
H. E. Mr. Ernest Bai KOROMA, Prime Minister (note - the president is both the
chief of state and head of government)
Overview
Sierra Leone has significant untapped oil & gas resources and it is strategically located along the west
coast of Africa, where it is positioned to be a supply market in the US, Europe and Africa. The government
is taking several initiatives to encourage investment in the oil & gas sector and to encourage regional and
international co-operation in all the aspects of upstream activities.
The petroleum exploration and production sector in Sierra Leone is regulated by the Petroleum Exploration
and Protection Act, 2001. This act provides the terms and conditions of petroleum exploration and
production agreements and for other related matters. The Petroleum Resources Unit under the authority of
President is headed by a Director General. This unit represent the State exclusively in negotiations with
interested parties for the exploration, development or production of petroleum, to act on behalf of the State
in petroleum agreements and to regulate the petroleum industry in Sierra Leone.
Currently, the foreign companies active in Sierra Leone include Anadarko, Repsol YPF, Tullow Oil, The
Addax and Oryx Group, African Petroleum, Lukoil, Tradiron SA, Woodside Petroleum Limited, and
Unipetrol.

The first bid round by Sierra Leone took place in April 2002 for which approximately 5,700 line kilometres of
2D seismic data was acquired off the southern coast of the country. The offshore area of Sierra Leone has
been divided into seven blocks each between 3,500 km2 and 5,500 km2 in area, so as to include both
shelftal and deep water plays. In first licensing round four blocks were awarded.
In 2009, Anadarko along with it JV partners Tullow Oil and Repsol made the countrys first discovery in
Venus exploration well in the deep-water section of block SL-06/07. Anadarkos exploration activities in
Sierra Leone are located in blocks six and seven in the Liberian basin. Further in November 2010, second
discovery was announced by Anadarko in Mercury prospect. This discovery highlights the potential of a
relatively unexplored area of Sierra Leones offshore region. Anadarko has planned for drilling exploration
wells in its Jupiter prospect in H2 2011.
Recently, TGS commenced the acquisition of a new multi-client 3D seismic survey offshore Sierra Leone.
This survey will add 1,038 km2 to the existing TGS data library and make it over 6,200 km2 of multi-client
3D data offshore Sierra Leone. The seismic data is being acquired by the M/V GeoCarribean and data
processing will be done by TGS. It is scheduled to complete during Q4 2011. The new 3D seismic will
provide important data in the region where recent discoveries were made.
Downstream and refining

Sierra Leone National Petroleum Company Ltd (SLNPC) was privatised in 1996. Since then it is owned by
Leonoil and is the current market leader in the petroleum industry. It has more than 50% market share of
AGO (Diesel fuel), PMS (Premium motor spirit), KERO (Kerosene) and MFO (Motor fuel oil) and over 90%
of market share of Liquefied Petroleum Gas (LPG). SLNP operates 12 retail outlets in Freetown and 16
outlets in the Provinces, located in major towns and it supplies fuel in the remote locations through
independent distributors and satellite stations.
Sierra Leone has to import all its petroleum products and there is no restriction on the direct importation of
products. Product is stored in tanks owned by the three major oil companies. The facilities of Petrol Leone
(a joint venture between Oryx Oil and Leonoil) are situated within the hydrocarbon terminal of the SLNPC at
Kissy, Freetown. The actual storage capacity of the depot is 60,000 m3 of gasoil, fuel oil and gasoline.
Government of Sierra Leone and Oryx Oil is constructing a new jetty at Kissy with multiproduct
loading/unloading facilities and ability to handle large capacity tankers of 40,000 dwt. This will help in
maintaining the imports on a stable basis and for other future projects such as LPG.
The Sierra Leone Petroleum Refining Company had shut the refining operations in 1992, it was a joint
venture between the government of Sierra Leone (50% stake) and other major international oil companies
like BP, Mobil, Texaco and Shell. It was having refining capacity of 10,000 bopd and its product portfolio
included premium motor spirit, domestic purpose kerosene, aviation turbine kerosene, automotive gas oil,
bunker gas oil, fuel oil, bunker fuel oil, lead-free naphtha, liquid petroleum gas, marine diesel oil, and
special distillate.
The government of Sierra Leone is exploring a potential joint venture to rehabilitate and upgrade the
refinery to reach a capacity of up to 100,000 barrels per day.
South Africa
Basic information
Population:
49,004,031 (July 2011 est.)
Currency (code):
Rand (ZAR)
Exchange rates:
1 US$ = 7.096 ZAR (Quarterly avg July-Sept, 2011)
GDP (PPP):
US$ 10,700 (2010 est.)
Head of State:
H.E. Mr. Jacob Zuma, President (since 9 May 2009)
Head of Government:
H.E. Mr. Jacob Zuma, President (since 9 May 2009)
Overview
South Africa mainly depends on its large scale mining industry, though energy sector plays vital role in its
economy. The energy sector contributes close to 15 percent of the countrys GDP. A significant
contribution, about 73.4 per cent of countrys primary energy mix, is from coal, which is used to produce
synthetic fuels while oil is contributed about 21% in 2010. Exports amounted to 24% of South Africas GDP
in 2010, with export income of $85.8 billion, mostly from minerals and metals, motor vehicles and parts, and
agricultural products. South Africa's major trading partners include China, Germany, the United States,
Japan, and the United Kingdom.
South Africa primarily uses its huge coal deposits to satisfy its energy requirements as has only small
deposits of conventional oil and gas. It generates high carbon emission due to coal uses. Country is the
leader in synthetic fuels which uses coal as raw material or feedstock and converts it to useful value added
products like gasoline, diesel and synthetic gases which further uses as feedstock for petrochemical and
fertilizer industry and fuel for power generation.
South Africa's own deposits of oil and gas are small, though its refining and downstream oil sector is
developing fast due to growing demand. It imports its oil and gas requirement from Mid-East and other
African oil and gas producing countries. However the country is ideal for oil-related services including
design engineering, fabrication, logistics and shipping to the growing West African oil and gas industry.
In 2010, South Africa's total primary energy consumption was 120.9 Mmtoe, where hydrocarbon
contribution was only 23.8 per cent. In 2010, South Africa's per capita oil consumption was 3.56 barrels
against Africas average per capita oil consumption of 1.3 barrels while per capita natural gas consumption
was 99 cubic meters much below then the average African per capita gas consumption of 112 cu. meter.
In 2005, The National Energy Regulator South Africa (NERSA) was formed which is responsible to regulate
countrys entire energy industry and also responsible for executing South Africa's energy plans.
Oil and gas exploration and production are governed by the Mineral and Petroleum Resources
Development Act, 2002 (the MPRDA). Exploration in South Africa is managed by the Petroleum Agency of
South Africa (PetroSA), the national oil company, which is responsible for managing and promoting the
licensing of oil and natural gas exploration in the country.
The foreign oil companies currently involved in South Africa's upstream oil sector are Anschutz
International, BHP Billiton, Forest Oil International, and Pioneer Natural Resources.

As of January 2011, South Africa had proven oil reserves of 15 million barrels located mainly in the offshore
Bredasdorp basin. In 2010, South Africas crude oil production averaged 199,000 bopd, a merely1.53%
increase from 2009 production of 196,000 bopd.
35
600
30
500
25
400
20
300
15
200
10
100
Production / Consumption ('000 bpd)
Oil reserves (Mb)
South Africa Oil Reserves, Production and Consumption
0
1995
2000
2005
2008
Oil proved reserves
2009
Oil Production
2010
Oil consumption
In 2010, the South Africa's domestic oil production/consumption ratio was 0.41. Net exports of petroleum
and petroleum products have increased to 68,0000 from 40,000 bopd while net imports have increased to
532,000 from 501,000 bopd. South Africa is heavily reliant on coal-to-gas and coal-to-liquids and uses
domestically produced synthetic fuels.

As of January 2009, South Africa had 9 Bcm of proven natural gas reserves. In 2005, South Africa
produced 2.13 Bcm of gas which came down drastically to 0.93 Bcm in 2010, lower by about 57% in last
five years.
30
6,000
25
5,000
20
4,000
15
3,000
10
2,000
1,000
Production/ Consumption (Mcm)
Gas reserves (Bcm)
South Africa Gas Reserves, Production and Consumption
0
1995
2000
Gas proved reserves(Bcm)
2005
2008
Gas Production(Mcm)
2009
2010
Gas consumption(Mcm)
Source: ENI World Oil & Gas Review/BP Statistics
In 2010, the country's domestic gas consumption was 4.94 Bcm. To meet this requirement, South Africa
has natural gas supply agreements in place with Mozambique and Namibia. From Mozambique, gas is
supplied via an 860 kilometre long transnational pipeline from Mozambique's Pande and Temane gas fields,
which is jointly owned by the Governments of Mozambique and South Africa. The pipeline has a peak
transmission capacity of 15 MMscmd of natural gas. In addition, plans for a proposed natural gas pipeline
from Namibia's Kudu field, which has estimated proven reserves of 36 Bcm, is also being developed.
PetroSA is instrumental in monetizing and optimizing natural gas resources, especially in Sabe and its
adjacent fields. In June 2008, PetroSA announced that it had discovered a new gas well off the southern
Cape coast. In 2010, South Africa PetroSA has approved a $1 bn offshore gas project. The offshore gas
field, called "FO" was located off the south coast and has gas reserves in the region of 1 tcf, with an upside
of 2-3 tcf size. The first gas is anticipated in the first quarter of 2013. Apart from South Africa, NOC PetroSA
holds exploration acreage in Gabon, Equatorial Guinea, Egypt, Namibia and Mozambique.
South Africa halts gas fracking plan. It has terminated the plans by the oil firm Shell to extract natural gas
from the Karoo desert by using a method known as fracking.

South Africa's Petroleum Agency for the Promotion of Petroleum Exploration and Exploitation included two
unexplored areas for the bid in Fourth Offshore Licensing Round in March 2009. Two previously unexplored
areas were available for bid.
The Orange Basin Deep Water Licence covers an area of 43,000 square kilometres off the west coast of
South Africa; and the Tugela licence area covers 48,798 square kilometres off South Africa's east coast.
The Orange Basin and Tugela areas have been divided into smaller quarter degree blocks and partial
blocks. The minimum bid was for one quarter degree block, but may extend to any area or shape providing
that the blocks are contiguous within the bid regions.
The frontier regions which were available in the Fourth Offshore Licensing Round offered companies the
opportunity to further explore the oil and gas potential in South Africa. The Orange Basin boasts the Kudu
gas discovery on the other side of the international boundary in Namibia, and some success has already
been proven in the basin within South Africa. Previous wells drilled in the Tugela licence area have
confirmed the presence of numerous leads and a working hydrocarbon system, and existing infrastructure
in nearby Durban adds to the attraction to this region. The Petroleum Agency SA hopes that this licensing
round would contribute to increasing and sustaining South Africa's current oil and gas production with a
view to increasing the country's level of self-sufficiency and economic development.
Orange Basin Deep Water Licence Area: Covers an area of 43,000 square kilometres off the west coast of
South Africa and bounded to the north by the Namibia/South Africa international border. There have been
no wells drilled in the licence area on offer; however, 40 wells have been drilled in the Orange Basin.
Tugela Licence Area: Covers 48,798 square kilometres offshore the east South African coast ranging in
water depths between 0 to 3,000 metres. The Petroleum Agency SA is offering for bid 14 quarter degree
blocks and eight partial blocks covering the Durban and Zululand Basins.
Refineries
As of January 2010, South Africa held the third largest refining capacity in Africa (520,000 bopd) behind
Egypt (793,000 bopd) and Algeria (597,000 bopd) considering crude oil as feedstock and if taken into
account its coal-to-liquid (CTL) and gas-to-liquid (GTL) refineries, the country would be second largest
refining capacity holder after Egypt. The country operates its refineries at average 69% capacity utilization
only and it needs to improve the refining throughput to reduce the production cost and improve the
utilization which would certainly reduce the coal uses in the country and further would help in reducing
carbon emissions. South Africa's refined products are sold in the local market and also exported to other
countries in Southern Africa and in the Indian and Atlantic Basins.
South Africa has four crude oil refineries in operation:
Sapref Durban Refinery (Shell/BP) 180,000 bopd
Engen Durban Refinery (Petronas) 125,000 bopd
Caltex Capetown Refinery (Caltex/Chevron) 100,000 bopd

Natref Sasolburg Refinery (Sasol/Total) 108,000 bopd
South Africa has well developed synthetic fuels (or synfuel) industry, producing liquid fuels from coal and
natural gas. Sasol is the world's largest manufacturer of liquid fuels from coal and uses CTL technology to
make synthetic gas from low-grade coal at liquefaction plants located at the Secunda and Sasolburg
refineries. The synthetic gas is then converted into pipeline gas and liquid fuels, which include LPG, jet fuel,
kerosene and petrochemicals.
Aprt from Sasol, PetroSA is also plays in synthetic fuels from using GTL technologies. There are two
refineries based on coal-to-liquid fuels and gas-to-liquid fuels owned by Sasol and PetroSA with capacity of
150,000 bpd and 45,000 bpd (crude oil equivalent) respectively. PetroSA refinery is situated at Mossel Bay
in the Western Cape and operating the world's largest commercial natural gas-to-liquids plant. The plant
converts natural gas from the FA, EM, and EBF fields in Mossel Bay into a variety of liquid fuels, which
include motor gasoline, distillates, kerosene, alcohols and LPG.
Sasol formed a JV with Indias leading industry house Tata group and plans to invest $10 billion in a coal-toliquid project in Orissa by 2018 with a capacity of 80,000 barrels per day of oil product. Sasol also partnered
in China and has launched a study into the feasibility of building a coal-to-liquids plant with a potential
capacity of around 80 000 barrels per day.
Sasol has proprietary technology for GTL Fischer-Tropsch (FT) technology. It started Oryx GTL in Qatar
and now Sasol now operates three proprietary and distinct types of FT processes, like Low temperature
cobalt, for Oryx GTL fuels production; Low temperature iron, for Sasolburg wax and chemicals production;
and High temperature iron, for Secunda fuels and chemicals production.
South Africa is required to invest about US$ 4bn to upgrade refineries to produce cleaner fuels. As this
investment would almost provide no return to investors hence government of South Africa should consider a
cost-recovery mechanism, as well as incentives such as lower fuel taxes or higher fuel retail prices to
provide some relief.
South African refining industry is facing two key issues; the first is a need to upgrade capacity to cope with
increasing fuel standards. The country already phased out lead from fuel in 2006 and is currently in talks for
introducing Euro-4 or Euro-5 fuel standards with South African Petroleum Industry Association (SAPIA). All
four refineries of South African are almost attained an average of over 50 years, major investment will be
needed to make this move feasible. The other problem is that of total fuels output of South Africa which is
unable to meet domestic fuel demand and makes country a net importer of refined products. Currently
South Africas average import is 51,697b/d which the government do want to continue and planned two
refineries.
Drako Oil and Energy is building a refinery with a refining capacity of 300,000 bopd. The refinery will be
located at Richards Bay in the KwaZulu-Natal province and will source its crude oil requirement from Algeria
or the UAE. PetroSA is also developing a new greenfield refinery with a capacity of 400,000 bbl/d in the
Eastern Cape to cater fast growing refined product demand and to reduce import dependence. This refinery
would have flexibility to process heavy, sour and waxy crudes and the project is expected to be launched in
2012.
The main domestic petroleum marketing companies are Naledi Petroleum and Afric Oil. International oil
companies operating in South Africa's downstream sector are BP, Chevron, Caltex, Petronas, Engen, Shell,
and Total.
LNG and Pipelines

South Africa currently has no LNG import terminals. Experts have stated possibility of an offshore LNG
floating, storage and regasification unit (FSRU) in the country.
Golar LNG partnered with Dutch services company Bluewater Energy in a bid to win a tender to provide an
offshore FSRU to PetroSA. Golar and Bluewater will have 50:50 partnership in a JV formed as an SPV. JV
Company has already acquired a vessel that would be converted for use as an offshore FSRU. Also,
PetroSA has announced plans to build an LNG regasification terminal costing about US$1.7bn. The
proposed location of the LNG terminal is along with its proposed new oil refinery, in Coega, on the country's
Eastern Cape.
US-based Excelerate Energy also in discussion with PetroSA about building an LNG import facility in South
Africa.
South Africa imports natural gas from Mozambique via 860 km (535 miles) long transnational pipeline which
is owned by Sasol, the South African government, and the government of Mozambique through a JV. The
pipeline has a peak capacity of 15 MMscmd (524 MMcf/d) of natural gas and was part of a $1.2-billion
natural gas project started in 2004. It is designed eventually to be able to transport double its current
capacity. The imported gas is destined for the Mossel Bay GTL facility. This transnational gas pipeline is
330 km on South African territory and rest is on Mozambican territory.
Transnet is the custodian of pipeline assets in South Africa and handles yearly average throughput of about
16 billion litres of liquid fuel and more than 450 million cubic metres of gases. The liquid products include
crude oil, diesel, petrol and aviation turbine fuels.
Transnet operated gas pipeline, which was converted from liquid hydrocarbon to gas pipeline, runs from
Secuda to Durban via Empangeni. It has take-off points at Newcastle and Richards Bay as well as along
the route between Empangeni and Durban.
Transnet is developing a multi-product pipeline between Johannesburg and Durban. When completed it
would be the largest of its kind in the world. This pipeline is the single biggest project in Transnet's US$ 13
billion five-year capital expenditure programme, is expected to be onstream by December 2013. This would
replace the existing Durban to Johannesburg pipeline that nearing the end of its lifespan and also unable to
cater for rising demand.
Republic of South Sudan
Basic information
Population:
8,260,490 (2008)
(According to disputed 2008 census; actual number may be as high
as 9.28 million)
Currency (code):
NA
Exchange rates:
NA
NA
NA
NA
Head of State:
H.E. Salva Kiir Mayardit, President (since 9 July 2011)
Head of Government:
H.E. Salva Kiir Mayardit, President (since 9 July 2011)
Overview
South Sudan became independent on 9 July 2011, breaking away from Sudan following a peace deal that
was signed in 2005, thus bringing an end to Africa's longest-running civil war. South Sudan has gained the
status of being the worlds newest country, formed as a result of an overwhelming majority of votes given by
South Sudanese in a January 2011 referendum to become Africa's first new country.
Having separated from Sudan, the new nation stands at an advantage of inheriting the bulk of Sudan's oil
wealth, but as a new state it also faces many challenges like lack of economic development and continuing
disputes with Khartoum which it needs to address. Although, following an agreement between the two
countries, oil revenue will be split between Sudan and South Sudan, it will nevertheless continue to be a
huge asset for the new Republic of South Sudan. In order to secure its future stability and growth, South
Sudan needs to negotiate a new oil revenue sharing deal with its northern counterpart, the Republic of
Sudan.
South Sudan's economy is now highly dependent on oil. The government of South Sudan is expected to
earn about 98 per cent of its income from oil revenues, making it the most oil-dependent country in the
world. But it is this revenue earned from oil production that enables the government to invest in nation
building activities like social and infrastructure development in the country and also lay a strong foundation
for posterity.
In an effort to promote economic growth and diversification of the economy, the ministry of finance and
economic planning in South Sudan organized a three day workshop in October this year to discuss ways of
effective management of oil revenues.. Experts from foreign countries were invited for this workshop to
share their experiences of managing the oil sector.
The newly-formed Republic of South Sudan, with it immense oil wealth, still continues to be one of Africa's
least developed countries. However, things have changed condiderably following the 2005 peace accord
which ushered in economic revival and paved the way for new investment opportunities in the country.
After gaining independence South Sudan has become Africas sixth largest oil producer and figures second
in Sub-Saharan Africa. Following its separation from Sudan, the country has received 75 per cent of
Sudans oil production as its territory now holds the major bulk of oil producing blocks and proved oil
reserves.
Nilepet is the South Sudans national oil company; its roles and activity are expected to be determined in
near future. Newly formed country did not make any changes in old production sharing agreements,
contract terms, or oil sector policies till now.
Foreign oil companies currently active in South Sudan's oil sector include: CNPC, Petronas, ONGC, Total,
Sudapet, Sinopec, Citadel Capital, Zaver Petroleum, KUFPEC, and Star Petroleum S.A.
Oil plays a very important role in the economy of both Sudan and South Sudan. As per the International
Monetary Fund, the economy of South Sudan thrives on its oil revenues that represent 98 per cent of its
total revenue. Under the CPA in January 2011, South Sudan gained some amount of independence from
the North but revenues earned from oil production in the South had to be shared equally amongst both
regions.
As of January 2011, undivided Sudan had 5 billion barrels of proved oil reserves (ENI World Oil and Gas
Review 2011), compared to the 2006 figure of 563 million barrels. Though, post independence most of
Sudans oil is now produced in South Sudan (about 75 per cent, based on specific field allocations); South
Sudan remains dependent on its Northern neighbour to export its crude as the entire pipeline, refining and
export infrastructure is in Sudan. For this South Sudan needs to pay a transit fee to Sudan for using its
pipeline, but there is no clarity on the amount of fees to be paid, or the revenue sum that needs to be
shared. The two countries are yet to come to an agreement on this, a matter which needs to be addressed
immediately.
The North was asking for transit fee of about US$23-33 per barrel and trying to balance its losses of 50%
share of the South Sudans revenue due to separation. While the South Sudan was ready to sell oil at
discounted price to North and seeking transit fee below US$ 1 per barrel which is in line with international
standards to export oil from South Sudan to other countries via North.
Seeking to explore the opportunity of creating an export pipeline through Kenya, South Sudan also engaged
in discussion with interested companies. However, this would take around 3 years to build and its
development will largely rest on the terms agreed to by all the stakeholders involved, the governments of
South Sudan and Kenya, as well as interested companies.
The major bulk of oil reserves are located in the Muglad and Melut basins. However, following the civil
conflict, oil exploration remained restricted mainly to the central and south-central regions of the country.
Refineries
Post independence, while an estimated 75 per cent of all the former Sudan's oil reserves became part of
the newly formed South Sudan, the refineries and the pipeline to the Red Sea continue to remain in Sudan.
However, in an effort to strengthen the oil industry and further the economic development of this infant
nation, the government of South Sudan recently announced its plans to build additional refining capacity in
the South. Following this, it has held discussions to set up a 3,600 km pipeline from the South to Kenyas
port in Lamu.
Natural gas
According to ENI World Oil and Gas Review 2011, undivided Sudan has 86 bcm of natural gas proven
reserves in 2010. Large quantity of associated natural gas produced with oil is largely flared or re-injected
into the oil wells. In 2009, there was news regarding some natural gas discoveries made in Sudan.
However, these are not yet determined as commercially viable. But now with the separation of South Sudan
from the former Sudan, it needs to be seen how these discoveries will impact this new nation and its
economy. South Sudan should consider gas monetization and set up infrastructure to utilize gas.

South Sudan produces about 300,000 bpd but due to inefficient technology much of the pumped oil gets
lost. In an effort to boost oil production in the country the government of South Sudan is engaging with
foreign firms to bring in better technology and is exploring options of making new discoveries. South Sudan
recently held talks with U.S. firm Halliburton to boost recovery rates from its oil wells, from a current 23-25
per cent to up to 40 per cent.
As per the International Monetary Fund (IMF) South Sudan's oil production could come down by 50 per cent
by 2020 unless new oil discoveries are made. Therefore, it is essential that oil companies in the South work
on increasing the production from current blocks and explore new areas at the same time.
Petrodar, a consortium of CNPC (41 per cent), Petronas (40 per cent), Sudapet (10 per cent), Sinopec (3
percent), and Tri-Ocean Energy of Kuwait (3 per cent) operates the two Blocks 3 and 7 in the Melut Basin in
South Sudan.
In April 2005, the government of Sudan had signed an agreement with White Nile Petroleum Operating
Company, a consortium of companies, which include Petronas (69 percent), ONGC (24 percent) and
Sudapet (7 percent), to develop the Thar Jath and Mala fields on Block 5a. In June 2006 this block started
producing oil at an initial rate of 38,000 bbl/d. The field continued to produce oil between 20,000 and 30,000
bbl/d in 2010, much lower than its full capacity which was initially estimated at 60,000 bbl/d. Oil from this
field is carried to Port Sudan through a 110-mile pipeline via North.
Block 5B is situated in the southern Muglad Basin and it was initially being explored by ONGC Videsh (23.5
percent) and Lundin (Sweden 24.5 percent) in partnership with Sudapet (13 percent), and Petronas (39
percent). In early 2009, ONGC Videsh and Lundin farmed out their stake after undesirable drilling results. In
August 2009, the National Petroleum Commission approved the participation of Ascom (Moldovan firm) in
block 5B.
Total holds the license for carrying out oil exploration in Block B. Facing some problems regarding licensing
and the conflict in the area, the existing consortium still seeks a third partner to replace Marathon Oil, a U.S.
company that pulled out of its 32.5 per cent interest following U.S. sanctions.
Block EA that lies close to the Muglad Basin is a relatively new block. Star Petroleum (Luxembourg) was
awarded an exploration and production-sharing agreement in August 2010 for Block E, wherein Star
Petroleum holds a major stake of 75 per cent along with Sudapet that holds 20 per cent, and Hamla
(Norway) the remaining 5 per cent.
South Sudan has a lot of untapped potential. The government is making serious efforts towards regulating
and streamlining oil production in the country. More than the lack of petroleum resources, South Sudan
faces issues like lack of technically trained human capital in the petroleum industry. According to United
State Geological Survey, Muglad and Melut basin though geologically complex and diverse, have been
identified as large basins holding huge reservoirs of significant volume. However, in order to recover all
reserves, it is essential that experienced and innovative companies be called in to properly manage these
reservoirs and regulate the oil production rate.
For South Sudan to really benefit from its immense wealth of oil reserves, it needs to put in place well
defined laws and regulations to put a stop to unprincipled production by foreign companies which if left
unchecked could lead to early petroleum peaks and declines for the nation. As analysts fear with volumes
of oil production currently soaring in South Sudan, this key source of export revenue will deplete over time if
not managed well. However, with technological improvements, oil extraction in the existing fields could be
regulated and made more efficient, and new sources of oil might be discovered. This being a long-term
proposition, the government of South Sudan is also actively exploring and developing new, non-oil sources
of revenue.
Map of Sudan and South Sudan
Sudan
Basic information
Population:
36,787,012(July 2011 est.)
Currency:
Sudanese Pounds (SDG)
Exchange rates:
1 US$ = 2.6488 SDG (Quarterly avg. July-Sept 2011)
GDP (PPP):
US$ 100 billion (2010 est.)
5.1% (2010 est.)
GDP-per capita (PPP):
US$ 2,300 (2010 est.)
Head of State:
H.E. Omar Hassan Ahmad al-Bashir, President (since 16 October 1993)
Head of Government:
H.E. Omar Hassan Ahmad al-Bashir, President (since 16 October 1993)
Overview
Sudan, the largest and one of the most geographically diverse states in Africa, is today divided into two
countries- Sudan and the Republic of South Sudan, after southern part of the country decided for
independence in July 2011.
The oil industry plays a vital role in the economy of the country. According to the International Monetary
Fund (IMF), oil production for North represented over half of the governments revenue and 90 per cent of
export income. About 75 per cent of Sudans oil is produced in what is now South Sudan, however, major
pipelines, refineries and export infrastructures are based in the North, controlled by the government in
Khartoum, also known as Port Sudan. Thus, due to such strategic complications, both countries remain
inter-reliant, and share revenues in the oil industry.
Analysts are expecting the government in Khartoum to encourage exploration in the North in order to
compensate the loss of its fields in the South. On the other hand, the country is also stressing to enhance
its foreign exchange reserves, mobilize non-oil revenue, and tighten its monetary policy for stability and
sustainable growth.
The Sudan National Petroleum Corporation (Sudapet) is the state-controlled company responsible for the
countrys oil exploration and production. However, due to its limited technical and financial resources,
Sudapet often enters into joint ventures (JVs) with international companies, and proportionately remains a
marginal shareholder. Major share of foreign JV companies are primarily from Asia, particularly led by the
China National Petroleum Corporation (CNPC) - one of the largest investor in Sudan, Indias ONGC Videsh,
and Malaysias Petronas.

According to the ENI World Oil and Gas Review 2011, undivided Sudan1 had five billion barrels of proved oil
reserves in January 2011, up from an estimated 563 million barrels in 2005. In 2010, It is fifth largest oil
reserve holder in Africa after Libya, Nigeria, Algeria and Angola. Sudan produced just over 480,000 bpd and
consumed around 104,000 bpd with reserve/production (R/P) ratio of around 28 years for the same year.
The majority of oil reserves are located in the in the Muglad and Melut basins in South Sudan.
Sudans per capita oil consumption was 0.88 barrel in 2010 lower than Africa average per capita
consumption at 1.30 barrels.
Both North and South Sudan
6,000
600
5,000
500
4,000
400
3,000
300
2,000
200
1,000
100
Production & Cosnumption

('000 bpd)
Reserves (mb)
Sudan Oil Reserves, Production and Consumption
0
1995
2000
Oil proved reserve
2005
2008
Oil production
2009
2010
Oil consumption
* Figures include both North and South Sudan,

North Sudan produces two major oil blends the Nile and the Dar Blends. The Nile is medium, sweet crude
with an American Petroleum Index (API) gravity of 34o. The blocks here are collectively operated by the
Greater Nile Petroleum Operating Company (GNPOC), a consortium of CNPC (40 per cent), with partners
Petronas (30 per cent), ONGC Videsh (25 per cent) and Sudapet (5 per cent). On the other hand, the Dar
blend is a heavy and sour crude stream. This oil blend is mostly exported to the Asian markets, and is
traded at a discounted rate to the Indonesian Minas and the Asian benchmark crude. Majority of oil
reserves are located in the Muglad and Melut basisn in South Sudan.
According to the ISI Emerging Markets, oil production in the country was seen to have steadily risen since
the July 1999 completion of an export pipeline that runs from central Sudan to Port Sudan. The country
further intends to increase its crude oil production from the existing fields within its region. To add, North
Sudan is also planning to carry out a licensing round for the existing blocks in its northern and western part
of the country.

For now, Sudan does not operate widely in the gas sector, though there are efforts made by the
government for serious exploration and development. According to the ENI World Oil and Gas Review
2011, gas reserves in undivided Sudan have amounted to be consistent over the decades with around 86
billion cubic meters from 1995 till 2010.

Blocks 1, 2, and 4 falls in the conflicted area that overlaps the North, South, and Abyei region. In 2009, the
Permanent Court of Arbitration in the Hague ruled on a dispute that put two of Sudans oilfields from this
block (Heglig and Bamboo) in the North rather than as part of Abyei. Block 2 (Heglig)/Block 4 (Kailkang):
The blocks are collectively operated by the Greater Nile Petroleum Operating Company (GNPOC), a
consortium of CNPC (40 per cent), with partners Petronas (30 per cent), ONGC (25 per cent) and Sudapet
(5 per cent). These two blocks along with Block 1 covers the areas of North and South Sudan with parts of
the Abyei region. Production in these blocks started in 1996 with the development of the Heglig and Unity
Fields, and by September same year, the first cargo of its crude left the export terminal. In 2010, the
combined production from Blocks 1, 2, and 4, including Abyei, was estimated to be around 150,000 bpd of
Nile blend, reflecting a decline from a 2006 peak of over 270,000 bpd.
Block 6 (Fula): The current output on the block is over 40,000 bpd of highly acidic crude, and is expected to
increase slightly over the year. In November 2004, CNPC brought online its Fula field on Block 6 at a rate of
10,000 bpd. The company has constructed a pipeline that links the Fula field to the Khartoum refinery
where it is processed predominately for domestic use.
Blocks
Oil and Gas Concession Holders
2 (Heglig)
Talisman Energy Inc. (Canada)
4 (Kailkang)
6 (Fula)
Petronas Carigali (Malaysia), Sudapet (Sudan), and China National

Petroleum Corporation (CNPC)
China National Petroleum Corporation (CNPC)
Source: USAID
Oil Refining
At present, Sudan has three refineries located in Khartoum, Port Sudan, and El-Obeid. The Khartoum
refinery was expanded in 2006 from a capacity of 50,000 bpd to 100,000 bpd. The expansion allowed for
the processing of both Nile and Fula blends of crude for domestic consumption and for exports. The Port
Sudan facility is located near the Red Sea and has a refining capacity of 21,700 bpd, while, the El-Obeid
refinery is the smallest one with a capacity of 15,000 bpd.
The North Sudan along with Sudapet is aiming to complete a capacity expansion project from its current
100,000 bpd to 200,000 bpd, at the Khartoum refinery by 2011. The project is an equal joint venture
between Sudapet and CNPC.
While in September 2005, a contract was awarded to Petronas (Malaysia's state-controlled) to build a new
refinery at Port Sudan, which has been on hold at present. The refinery was designed to process Dar blend
crude found in Sudan's Melut Basin and planned a capacity of 100,000b/d, however has not been
completed due to rising cost of the project.
BMI has forecasted the countrys refined products exports capacity to rise from an estimated 11,000 bpd in
2008 to 89,000 bpd by 2011. However due to increasing consumption and constant refining capacity, being
constant, the product export has not been increasing as planned.
Tanzania
Basic information
Population:
42,746,620 (July 2011 est.)
Currency:
Tanzanian Shilling TZS
Exchange rates:
1 US$ = 1587.4 TZS
GDP (PPP):
GDP-per capita:
US$ 1400 (2010 est.)
Head of State:
H.E. Mr. Jakaya Kikwete, President
Head of Government:
H.E. Mr. Jakaya Kikwete, President
Overview
At present Tanzania is producing no oil and little gas (0.77 Bcm as in 2010), though experts suggest of
good potential. Subsequent to discovery of oil in the area of Ugandas Lake Albert, the western branch of
the East Africa Rift Valley, which extends from Uganda to the Lake Rukwa basin through Lake Tanganyika,
has been attracting various exploration companies.
Tanzania Petroleum Development Corporation (TPDC) is the Tanzanian NOC, which was formed in 1969 to
oversee the operations of AGIP, the only concession holder then working in the country. Currently it is
engaged in the exploration and production of oil and gas from hydrocarbon prospects, import and marketing
the petroleum products and distribution of the same in Tanzania. It is operating through its three
subsidiaries which include BP Tanzania Limited (divested and sold assets to Puma Energy in September
2011), TAZAMA Pipeline Limited and Mafuta House Investment Company Limited.
Oil and gas reserves, production and consumption

Tanzania does not produce any oil and hence its entire consumption of 36,000 bpd is met through imports.
Its consumption has been doubled from 18,000 bpd in 1995 to 36,000 bpd in 2010 to the current
consumption,and so has the imports.
40
40
35
35
30
30
25
25
20
20
15
15
10
10
0
1995
2000
2005
Imports
2008
2009
Oil Consumption
2010
Oil Consumption (Thousand

barrel/ day)
Imports (Thousand barrel/ day)
Tanzania Oil Consumption, Imports
As of Dec 2010, Tanzania had gas reserves of 35 bcm. The production, though increasing consistently,
from 0.40 bcm in 2005 to 0.77 bcm in 2011, is enough to meet only the domestic consumption. In 2010,
Tanzanias Reserves/ Production ratio was 46 years.
40
0.9
35
0.8
30
0.7
0.6
25
0.5
20
0.4
15
0.3
10
0.2
0.1
Production/ Consumption (Bcm)
Reserves (Bcm)
Tanzania Gas Reserves, Production and Consumption
0
1995
2000
Gas Reserves
2005
2008
Gas Production
2009
2010
Gas Comsumption
Exploration and Licensing

Tanzania has been intermittently explored since early 1950s, with total of 35 exploration and development
wells. The two significant discoveries are, Songo Songo and Mnazi Bay, both gas fields. Gas produced from
Songosongo field is used mainly to generate electricity, and a small portion is also supplied directly to a
number of industrial units. Several oil shows have been earmarked. The known oil seeps of Tazania are
located at Tundaua on the west coast of Pembe Island, Wingayongo and at Msimbati near Mnazi Bay and
in the Interior Rift Basins. Songo Songo wells yielded small amounts of oil, which are low in sulphur with
33E 47E API. The cumulative seismic coverage in public domain is approximately 52,000 km; 28,000 km
offshore and 24,000 km onshore, including the interior rift basins. There is an additional 11,000 km of
modern non-exclusive geophysical data acquired in the year 1999/2000.
The first licensing round took place in 2001, when it called bids for six areas covering 6700 sq.km in Mafia
South. The Lake Tanganyika South acreage was awarded to Beach Energy Limited in the 2007 Onshore
Bid Round, where Beach signed the PSA in June 2010.
In April 2011, Tanzania Petroleum Development Corporation (TPDC), invited companies to bid for a
Production Sharing Agreement (PSA) covering the Lake Tanganyika North exploration area. This was later
postponed and is expected to be held in 2012. Tullow Oil previously entered into negotiations for a PSA
covering the Lake Tanganyika North area in 2007 but an agreement was not concluded.
The offered block covers an area of approximately 10,000 square kilometres on the Tanzanian side of Lake
Tanganyika, which is located inland, in the west of the country along the border with the Democratic
Republic of the Congo. Lake Tanganyika is one of the lakes created by the Albertine Rift, as part of the
East African Rift and the larger Great Rift Valley. The Albertine Rift extends from the southern end of Lake
Tanganyika to the northern end of Lake Albert in Uganda, which has seen great exploration success.
BG Group has announced that its second Tanzanian exploration well, Chewa-1, has also discovered gas.
The well, located in Block 4 approximately 80 kilometers offshore southern Tanzania in a water depth of
around 1 300 meters, is some eight kilometres north-west of BG Group's Pweza-1 gas discovery.
Heritage Oil, a UK-based company,with exploration sites in the Tanzania, Malta, Uganda, the DRC,
Kurdistan, and Pakistan, has been awarded a production sharing contract (PSA) with 100% interest in
almost the entire Rukwa Rift basin in Tanzania. The Rukwa PSA covers an area of 18920 square
kilometres and has been split into two separate areas.
TPDC has signed two PSAs worth $141 million for the exploration for oil and gas reserves. The agreements
involve Ndovu Resources, a subsidiary company of Aminex and Heritage Oil.
The three regulations governing the petroleum sector are:
Petroleum (Exploration and Production) Act, 1980: The act vests title to petroleum deposits within
Tanzania and is designed to create a favourable legal environment for exploration by oil companies.
Income Tax Act 2004
The Model Production Sharing Agreement (MPSA) between the Government, the TPDC and the Oil
Company, 2004/2008
Downstream/Refinery
Petroleum products form only 7% of fuel sources. Most of it is imported though TPDC, which procures the
oil, refines it in the Tiper refinery and then delivers the product to the marketing companies. Refined
products are also imported as the refinery does not process enough to supply the demand in Tanzania.
U.S.-based Noor Oil & Industrial Technology Inc. is planning to construct a 200,000 barrels a day refinery
and an oil pipeline in Tanzania to supply refined fuel products to the domestic and regional markets. The
company has already got funding for the US$ 3.5 billion project which includes plans to run a pipeline from
the coastal port of Dar Es Salaam to Mwanza on the shores of Lake Victoria and Kigoma on Lake
Tangayika, in northern Tanzania.
Crude oil and petroleum products are procured in bulk by international competitive bidding. The national oil
company, TPDC, is the sole importer of both crude oil and white products for national consumption.
Distribution and marketing of fuels and lubricants is carried out by Addax, Mobil, Total, BP, GapCo, GapOil
and Engen. BP holds approximately 44% of the overall petroleum product market, 36% of the retail or
service station sector, almost 50% of the commercial sector and nearly 70% of the aviation sector.
T.P.D.C. is initiating the formation of a publicly owned oil marketing company COPEC that will undertake
the importation and distribution of petroleum products as a national indigenous company. TPDC is also
undertaking marketing of natural gas to industries in Dar es Salaam jointly with PanAfrica Energy. So far
gas sales agreements have been concluded with Tanzania Breweries Ltd, Kioo Limited, Nida Textile Mills
and Bora Industries.
The gas produced in Songasongo field is transported through a 25km 12-inch pipeline from Songosongo to
Somanga Funga, and from Somanga Funga through a 207km 16-inch pipeline to Ubungo Dar es Salaam
where natural gas has replaced liquid fuel as feedstock in the generation of up to 115MW of electricity for
the national grid. A 16km 8-in pipe line has been extended northwards to provide natural gas to the Wazo
Hill cement plant where has replaced fuel oil as feedstock in the manufacture of cement.
Tanzanias government has signed a loan agreement for more than $1 billion with the Chinese government
to construct a natural gas pipeline from Mnazi Bay in Mtwara Region and Songo Songo in Kilwa district to
the capital Dar es Salaam. The loan will be used to exploit Tanzanias southern coastal natural gas
reserves. Construction of the 330 mile-long natural gas pipeline is expected to get completed by March
2013. In addition to the natural gas pipeline the loan will also finance the construction of two gas processing
plants
Uganda
Basic information
Population:
34,612,250 (July 2011 est.)
Currency:
Uganda Shilling (UGX)
Exchange rates:
1 US$ = 2681.564 UGX (Quarterly Avg. - July to September 2011)
GDP (PPP):
USD 42.15 billion (2010 est.)
5.2% (2010 est.)
GDP-per capita:
US$ 1300 (2010 est.)
Head of State:
President, Lt. Gen. Yoweri Kaguta Museveni
Head of Government:
President, Lt. Gen. Yoweri Kaguta Museveni
Overview
Uganda discovered its first oil in 1920, and drilled its first well in 1938. Only by 1980s and 1990s, the
aeromagnetic surveys were able to ascertain the existence of hydrocarbon potential. Subsequently five
sedimentary basins were identified, namely, the Albertine Graben, Lake Kyoga basin, Hoima basin, Lake
Wamala basin and the Moroto-Kadam basin. The further detailed surveys confirmed the Albertine Graben
with greatest hydrocarbon potential.
It is the year 2006 that saw the first commercial discovery of oil in Uganda. The Albertine Graben (AG) has
been confirmed to contain commercial oil and gas resources. The Graben (entire western border of
Uganda), which is a rift basin, stretches from south-western Uganda at Lakes Edward and George to West
Nile, a distance of about 500 kilometres. The AG is shared between Uganda and the Democratic Republic
of Congo, but on the Ugandan side it averages a width of 45 kilometers.
The drilling success rate of Oil and Gas exploration activities in the country has been a whopping 90%, with
58 of the 64 exploration and appraisal wells drilled in the country so far. Twenty oil and/or gas discoveries
have been made in the country and the in-place volume of petroleum in the country is currently estimated at
over 2.5 billion barrels of oil equivalent, with about 1 billion barrels recoverable. This represents a significant
development for the country as the production of oil can now be undertaken commercially. Since 1998,
investments in this sector have been over US$1.5 billion and even bigger funds have been anticipated to be
used for the exploration activities in the future.
The National Oil and Gas Policy for Uganda were approved by Cabinet in January 2008, after a
comprehensive review process, and are currently being implemented. In July 2009, a new five-year
programme was started which is Strengthening the Management of the Oil and Gas Sector in Uganda.
The objective (Goal) of the programme is to use the countrys oil and gas resources in such a manner so
that it contributes to eradication of poverty very soon and create long-term value to the general public. The
support for the new programme covers three broad areas of Resource, Revenue and Environment
Management through the Ministries of Water and Environment (MWE), Finance Planning and Economic
Development (MFPED) and Ministry of Energy and Mineral Development (MEMD).
Currently Uganda is an importer of petroleum products, mainly from Kenya (from Mombasa refinery).
Reserves- As per World Oil and Gas Review (WOGR) 2011, Uganda has 1,000 million barrels of oil
reserves as on 1st January, 2011.
Production- Nil
Consumption- 13,000 bpd (2009) and 14,000 bpd (2010), all imported
The oil companies recently licensed in the country are: Neptune Petroleum Uganda Limited, Tullow Uganda
Limited and Dominion Petroleum Limited. However, Tullow Uganda Limited is in the process of farmingdown some of its interests to Total E&P Uganda B.V. and China National Offshore Oil Corporation
(CNOOC) Uganda Limited.
Gas reserves, production and consumption:
Reserves- 14.16 billion cu m (01 January, 2011 est.)
Production - Nil
Consumption - Nil

About 80 companies had so far applied for oil exploration in Uganda but their requests are on halt until a
new regulatory framework is in place. This was revealed at Parliament very recently by Ernest N.T.
Rubando, the Commissioner for Petroleum exploration and Production department in the energy ministry.
Any new exploration license has not been issued since 2008 until an enabling law is in place.
There is a halt in licensing of new acreage to allow for competitive bidding that would be guided by the new
Petroleum Resource Management Law that will replace the current Petroleum act 1985. Ever since the halt,
over 10,000 square kilometers of acreage in the Albertine Graben have been returned to government
through expiry of licenses as required in the Production Sharing Agreements.
Latest exploration projects
Avivi-1 Exploration Well in Exploration Area 5 ("EA5"): Tower Resources announces rig contracted for
Avivi-1
Ngaji-1 Well on Exploration Area Block 4B (EA4B): Dominion Petroleum Announces Issue of Official
Drilling Permit for Uganda
Block 2 - Albertine Rift Development Phase 1 - Kasamene, Mputa, Ngassa, Waraga, Ngege, Taitai,
Kigogole, Ngara and Nzizi Prospects - Kaiso-Tonya Lake Albert Acreage: Tullow Oil announces
success of Kasamene-2 appraisal well
Block 3A - Kingfisher Oil Field - Kaiso-Tonya Lake Albert: Uganda Government Repossesses Kingfisher
Oil Field
Block 1 - Warthog & Jobi-Rii (Formerly Buffalo-Giraffe) Fields: Plans for further exploration drilling on
Block EA-1 are currently being assessed
Block 5 - Iti Prospect - Albertine Graben: Proposals from rig contractors and service providers being
finalized
Oil Refining
The discoveries made in the country so far can support production of over 100,000 barrels of oil per day
(bpd) for twenty years and are therefore sufficient to implement large scale refining in the country. While
Government is focusing on the Early Production Scheme in the short term to alleviate the current acute
power shortfall through the utilization of gas reserves, in the medium term, the focus is to conduct refining of
oil on a large scale, (i.e. more than 100,000 bpd). Uganda can save over $ 1-bn annually if it were to build
its own oil refinery, and the economy would gain from the refining processes through the creation of
employment opportunities and taxes while ripple effects would result in the mushrooming of secondary
industrial activities.
Hoima Refinery: Government has commenced planning for large scale refining by undertaking a feasibility
study for this refining in the country. The refinery will be based in Hoima in western Uganda. Countries such
as China, Libya and Iran have expressed an interest in partnering Uganda in the construction of the facility.
Between 2012 and 2016, the development of the refinery will be phased. Initially, the production will be
limited to satisfy in-house market demand and going forward it will be raised to satisfy the international
market. The estimated Ugandan demand is at 20,000 to 25,000 bpd and the refinery would later be
upgraded for export, producing 200,000 bpd.
Natural gas pipelines

The East African Community (EAC) secretariat has planned to construct a natural gas and oil products
pipeline from Uganda to Rwanda, to link energy systems in the region and improve supply of oil to the
landlocked countries of Rwanda and Burundi by cutting transport costs. The EAC member states are
Kenya, Tanzania, Uganda, Rwanda and Burundi. In this regard, the African Development Bank has granted
$600,000, for a feasibility study to determine the viability of linking Rwanda and Burundi from the Kenyan
coast of Mombasa to Uganda. The plan is to link Kigali (in Rwanda) by a pipeline from Kampala (Uganda),
which will allow the delivery of petroleum products from the planned refinery in Uganda, as well as the
existing refinery in Mombasa (on the Kenyan coast) and international markets.
Kenya-Uganda Pipeline Extension (KUPLE): The new Kenya-Uganda Pipeline Extension (KUPLE) is set to
be completed in 2011. The purpose is to deliver fuel to Uganda from Kenya (Mombasa) terminals via a
pipeline instead of by road as this will provide a more secure supply while reducing road congestion and
associated safety hazards of transporting fuel by road tanker. The new pipeline has been tied-in to the
existing 14" multi-fuel delivery pipeline at Eldoret in Kenya and pump batches of petrol, diesel, kerosene
and jet A1 aircraft fuel 354 kilometers to a new storage depot to be built at Kampala in Uganda. The project
includes installation of pipeline along with construction of pumping stations, storage tanks and road tanker
loading facilities at the new depot. The project value is anticipated to be in excess of US$200 million.
Ministry of Energy and Mineral Development is the governing ministry supervising all petroleum-related
activities. The different acts/policies regarding to this sector are:
Petroleum Supply Sub Sector:
Petroleum Supply Act, 2003: To provide for supervision and monitoring, the importation, exportation,
transportation, processing, supply, storage, distribution and marketing of petroleum products.
The Petroleum Supply (General) Regulations 2009: to provide for the licensing and control of activities
and installations for the safety and protection of public health and the environment in petroleum supply
operations.
Petroleum Exploration and Production Sub Sector:
Petroleum Act 1985: Main law governing the exploration of oil in Uganda. The act focuses on so-called
upstream elements of petroleum production, i.e. the exploration and extraction of oil.
The Petroleum (Exploration and Production) Regulations, 1993: To conduct exploration operations.
The Petroleum (Marking & Quality Control) Regulations,09: These regulations apply to petroleum
marking related activities and petroleum quality monitoring.
National Oil and Gas Policy for Uganda: To use the countrys oil and gas resources in such a manner so
that it contributes to eradication of poverty very soon and create long-term value to the general public.
Appendix
Glossary of terms
Abbreviation
Expansion
ADB
Asian Development Bank
AGCL
Assam Gas Company Ltd.
AGOCO
Arabian Gulf Oil Company
APM
Administered Price Mechanism
ATF
Aviation Turbine Fuel
Bcf
Billion cubic feet
Bcm
Billion cubic meters
BG
British Gas
BGL
Bhagyanagar Gas Ltd.
BHEL
Bharat Heavy Electricals Ltd.
bopd
Barrels of oil per day
BORL
Bharat Oman Refineries Limited
BPCL
Bharat Petroleum Corporation Limited
Bpd
Barrels per day
BPRL
Bharat Petro Resources Ltd.
BRPL
Bongaigaon Refinery & Petrochemicals Ltd.
CAGR
Compound Annual Growth Rate
CBM
Coal Bed Methane
CCL
Central Coalfields Ltd.
CGD
City gas distribution
CGE
Clean Global Energy
CIL
Coal India Ltd.
CIMFR
Central Institute of Mining and Fuel Research
CMPDIL
The Central Mine Planning and Design Institute
CNG
Compressed natural gas
CNOOC
China National Offshore Oil Corporation
CNPC
China National Petroleum Corporation
CNR
Canadian Natural Resources
CO
Carbon monoxide
CPCL
Chennai Petroleum Corporation Limited
Abbreviation
Expansion
CPI
Continentale des ptroles et dinvestissement
CTL
Coal-to-liquid
DGCI&S
Directorate General of Commercial Intelligence and Statistics
DGH
Directorate General of Hydrocarbons
DRC
E&P
Exploration and Production
EGAS
Egyptian Natural Gas Holding Company
EGLNG
Equatorial Guinea LNG
EGoM
Empowered Group of Ministers
EGPC
Egyptian General Petroleum Corporation
EIA
Energy Information Administration
EIU
Economist Intelligence Unit
ELNG
Egyptian LNG
ENH
Empresa Nacional de Hidrocarbonetos (National Hydrocarbon

Company)
EOR
Enhanced Oil recovery
EPC
Engineering, Procurement and Construction
EPSA
Exploration and Production Sharing Agreements
EWPL
East West Gas Pipeline
FIPB
Foreign Investment Promotion Board
FSRU
Floating storage and regasification unit
GA
Geographical Area
GAIL
Gail India Ltd.
GANOPE
Ganoub El-Wadi Petroleum Holding Company
GDFI
Gaz de France International
GEECL
Great Eastern Energy Corporation Ltd
GGCL
Gujarat Gas Company Limited
GHG
Greenhouse Gas
GIDC
Gujarat Industrial Development Corporation
GIPCL
Gujarat Industries Power Company Ltd
GNPC
Ghana Natural Petroleum Company
GoAP
Government of Andhra Pradesh
GoE
Government of Ethiopia
GPC
General Petroleum Company
GSI
Geological Survey of India
GSPC
Gujarat State Petroleum Corporation
GTL
Gas-to-liquid
HC
Hydro Carbon
HDPE
High density polyethylene
HOEC
Hindustan Oil Exploration Company Limited
HPCL
Hindustan Petroleum Corporation Limited
HVJ
Hazira-Vijaipur-Jagdishpur
Abbreviation
Expansion
IGL
Indraprastha Gas Ltd.
IL&FS
Infrastructure Leasing & Financial Services Limited
INR
Indian Rupee
IOCL
Indian Oil Corporation Ltd
IPI
Iran-Pakistan-India
ISM
Indian School of Mines
JSPL
Jindal Steel and Power Company Ltd
JV
Joint Venture
JWG
Joint Working Group
KG
Krishna Godavari
kgoe
kilograms of oil equivalent
KOGAS
Korea Gas Corporation
KPRL
The Kenya Petroleum Refineries Limited
KSPL
Kakinada Seaports Ltd
KUFPEC
The Kuwait Foreign Petroleum Exploration Company
LLDPE
Linear low-density polyethylene
LNG
Liquefied Natural Gas
LPG
Liquefied petroleum gas
MGL
Mahanagar Gas Ltd.
ML
Mining Lease
MMcm
Million cubic meters
MMscmd
Million standard cubic meters per day
Mmt
Million Metric Tonnes
Mmtoe
Million tones oil equivalent
Mmtpa
Million tonnes per annum
MNGL
Maharashtra Natural Gas Limited
MoPNG
Ministry of Petroleum and Natural Gas, Government of India
MOT
Multi Organization Team
MRPL
Mangalore Refinery and Petrochemicals Limited
NAMCOR
National Petroleum Corporation of Namibia
NDR
National Data Repository
NELP
New Exploration and Licensing Policy
NLC
Neyveli Lignite Corporation Ltd.
NNPC
Nigerian National Petroleum Corporation
NOCAL
National Oil Company of Liberia
NOCK
National Oil Corporation of Kenya Limited
NOCL
Nagarjuna Oil Corporation Limited
NOCs
National Oil Companies
NOx
Nitrogen oxides
NRL
Numaligarh Refinery Limited
OALP
Open Acreage Licensing Policy
OECD
Organization for Economic Cooperation and Development
Abbreviation
Expansion
OGL
Open General License
OIL
Oil India Limited
OMEL
ONGC Mittal Energy Limited
ONGC
Oil and Natural Gas Corporation
OPEC
Organization for Petroleum Exporting Countries
OPL
Oranto Petroleum Limited
OVL
ONGC Videsh Limited
PCPIR
Petroleum, Chemical Petrochemical Investment Region
PEL
Petroleum Exploration License
PLL
Petronet LNG Limited
PNG
Piped Natural Gas
PNGRB
Petroleum & Natural Gas Regulatory Board
PPAC
Petroleum Planning & Analysis Cell
PPMC
Pipeline and Products Marketing Company
PSC
Production Sharing Contract
PSUs
Public Sector Undertakings
R:P
Reserves:Production
RCF
Rashtriya Chemicals and Fertilizers Ltd.
RGPPL
Ratnagiri Gas and Power Private Limited
RGTIL
Reliance Gas Transportation India Ltd
RIL
Reliance Industries Limited
RRVUNL
Rajasthan Rajya Vidyut Utpadan Nigam Ltd
RSMML
Rajasthan State Mines & Minerals Limited
RSPCL
Rajasthan State Petroleum Corporation Limited
SCCL
Singareni Collieries Company Ltd.
SETSPL
Strategic Energy Technology Systems Pvt. Ltd.
SEZ
Special Economic Zone
SIM
Skochinsky Institute of Mining
SIPEX
Sonatrach International Petroleum Exploration and Production

Corporation
SLNPC
Sierra Leone National Petroleum Company Ltd
SNG
Synthetic natural gas
SNH
Societe Nationale des Hydrocarbures
SNPC
Socit Nationale des Ptroles du Congo
SONACOP
Socit Nationale de Commercialisation des Produits Ptroliers
SONIDEP
Socit Nigrienne de Dpt dEssence et de Ptrole
SPV
Special Purpose Vehicle
TAPI
Turkmenistan-Afghanistan-Pakistan-India pipeline
TIDCO
Tamil Nadu Development Corporation Ltd.
TLA
Technology Licence Agreement
TMT
Thousand metric tonne
TNGCL
Tripura Natural Gas Company Limited
Abbreviation
Expansion
TOR
Tema Oil Refinery Corporation
TPA
Tonnes per annum
TPD
Tonnes per day
TPDC
Tanzania Petroleum Development Corporation
TPES
Total primary energy supply
TSGP
Trans-Saharan Gas Pipeline
US DOE
U.S. Department of Energy
US$
US Dollar
VOG
Victoria Oil and Gas
WKPE
The Western Kenya Pipeline Extension
Conversion table
Bcm of
Natural
Gas
Bcf of
Natural
Gas
Mn tonnes
Crude Oil
Mn tonnes
LNG
Mn barrels oil
equivalent
1 Bcm Natural
Gas
35.3
0.9
0.73
6.29
1 Bcf Natural
Gas
0.028
0.026
0.021
.18
1 Mn Tonnes
Crude Oil
1.111
39.2
0.805
7.33
1 Mn Tonne
LNG
1.38
48.7
1.23
8.68
Notes
Notes
Contacts
V Namasivayam
Energy and Resources Leader
Tel: +91 80 6612 6112
Email: vnamasivayam@
deloitte.com
Ahmedabad
Heritage, 3rd Floor, Near
Gujarat Vidhyapith
Ahmedabad 380 014, India
Phone: +91 (079) 6607 3100
Kalpana Jain
Financial Advisory
Tel: +91 124 679 2266
Email: kajain@deloitte.com
Bangalore
Deloitte Centre, Anchorage
II, 100/2, Richmond Road,
Bangalore 560025, India
Phone: +91 (080) 6627 6000
Sameer Bhatia
Consulting
Tel: +91 22 6619 8610
Email: sambhatia@deloitte.
com
Baroda
31, Nutan Bharat Society,
Alkapuri
Baroda 390007, India
Phone : +91 (0265) 2333 776
Subrata Bagchi
Enterprise Risk Services
Tel: +91 40 4031 2600
Email: bsubrata@deloitte.com
Chennai
Ol No. 37th, New No: 52,
7th Floor,
ASV N Ramana Towers,
Venkatnarayana Road,
T Nbagar, Chennai 600 017,
India
Phone: +91 (044) 66885000
Coimbatore
Shanmuga Mandaram,
41 Race Course
Coimbatore 641018, India
Phone: +91 (0422) 24392801
NCR
7th Floor, Building 10 Tower B,
DLF Cyber Ciity Complex,
DLF City Phase II,
Gurgaon 122002, India
Phone: +91 (0124) 679-2000
Kolkata
1st floor, BlockEP & GP,
SectorV,
Salt Lake Electronics Complex
Kolkata 700 091, India
Phone : +91 (033) 6612 1000
Goa
5th floor, Suyash Complex,
Panaji, Goa 403 001, India
Phone: +91 (0832) 2431821
Mumbai
12, Dr. Annie Besant Road,
Opp. Shiv Sagar
Estate, Worli, Mumbai 400
018, India
Phone : +91 (022) 6667 9000
Hyderabad
1-8-384 & 385,
3rd Floor, Gora Grand,
S.P. Road,
Begumpet,
Hyderabad 500 003, India
Phone : +91 (040) 40312600
Pune
706, B - Wing, 7th floor,
ICC Trade Tower
Senapati Bapat Marg,
Pune 411 016, India
Phone : +91 (020) 6624 4600
Jamshedpur
8-B ,Circuit House Area,
North-East
Road No.11,
Jamshedpur 831 001, India
Phone : +91 (0657) 2225883
Kochi
First Floor, Wilmont Park,
Business Centre
Warriam Road, Kochi 682 016,
India
Phone: +91 (0484) 2354305
Disclaimer
This backgrounder is prepared by our Knowledge Associate - Deloitte Touche Tohmatsu India Pvt. Ltd.
This backgrounder has been prepared based on material information available in the public domain. We have taken utmost care in collecting
data from the secondary sources. However, its authenticity and accuracy need to be verified in case of any further interaction planned with
respective countries or companies in respective countries.
The objective of the paper is to facilitate discussion on the subject of cooperation in the hydrocarbon sector between India and Africa.
Ministry of Petroleum and Natural Gas

Ministry of Petroleum & Natural Gas deals with exploration and production of oil and gas, (including import of Liqufied
Natural Gas), refining, distribution & marketing, import, export and conservation of petroleum products. The institutional
infrastructure of the Ministry includes Petroleum & Natural Gas Regulatory Board, Oil Industry Development Board,
Petroleum Conservation Research Association, Petroleum Planning & Analysis Cell, Oil Industry Safety Directorate, Centre
for High Technology and Directorate General of Hydroacabons.
Government of India
The public sector companies under the administrative control of the Ministry include Fortnue-500 cmpanies such as Oil and
Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL), Hindustan Petroelum Corporation Limited
(HPCL) and Bharat Petroleum Corporation Limited (BPCL) and other major companies such as GAIL (India) Limited, Oil
India Limited (OIL) and Engineers India Limited (EIL).
To achieve the goal of Energy Security, there is a massive programme of exploration, not only in India through the New
Exploration Licensing Policy, but also aborad through various public sector companies, in particular ONGC-Videsh Limited,
Oil India Limited, Indian Oil Corporation Limited and Bharat Petro Resources Limited. The specific interest being pursued
abroad are equity participation in developed oil and gas fields, exploration and production contracts in new fields of oil &
natural gas, participation in mid-stream and down-stream projects and participation in transnational oil and gas pipelines
projects, export of refined petroleum products from India.
2nd India-Africa
Federation of Indian Chambers of Commerce & Industry (FICCI)

Established in 1927, FICCI is the largest and oldest apex business organisation in India. Its history is closely interwoven
with India's struggle for independence and its subsequent emergence as one of the most rapidly growing economies
globally. FICCI plays a leading role in policy debates that are at the forefront of social, economic and political change.
Through its 400 professionals, FICCI is active in 53 sectors of the economy. FICCI's stand on policy issues is sought out
by think tanks, governments and academia. Its publications are widely read for their in-depth research and policy prescriptions. FICCI has joint business councils with 75 countries around the world. A non-government, not-for-profit organisation,
FICCI is the voice of India's business and industry. FICCI has direct membership from the private as well as public sectors,
including SMEs and MNCs, and an indirect membership of over 3,00,000 companies from regional chambers of commerce.
FICCI works closely with the government on policy issues, enhancing efficiency, competitiveness and expanding business
opportunities for industry through a range of specialised services and global linkages. It also provides a platform for sector
specific consensus building and networking. Partnerships with countries across the world carry forward our initiatives in
inclusive development, which encompass health, education, livelihood, governance, skill development, etc. FICCI serves as
the first port of call for Indian industry and the international business community.
Deloitte Touche Tohmatsu India Private Limited
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its
network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about
for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte's more than 182,000 professionals are
committed to becoming the standard of excellence.
In India, Deloitte is spread across 13 locations and its 18,000 professionals take pride in their ability to deliver to clients the
right combination of local insight and international expertise. Deloitte has extensive experience in handling assignments in
areas of mergers & acquisition, joint ventures, fund raising, valuation, due diligence, feasibility, bid-advisory, entry strategy,
restructuring, enterprise risk services and related advisory services. Our clients in India includes Government and regulatory bodies, public sector companies, multinational corporations, large and medium Indian private business groups. Deloitte
refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of
member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed
description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
December 7-8, 2009

New Delhi
This material and the information contained herein prepared by Deloitte Touche Tohmatsu India Private Limited (DTTIPL)
is intended to provide general information on a particular subject or subjects and is not an exhaustive treatment of such
subject(s). None of DTTIPL, Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the
Knowledge associate
Deloitte Network) is, by means of this material, rendering professional advice or services. The information is not intended
to be relied upon as the sole basis for any decision which may affect you or your business. Before making any decision or
taking any action that might affect your personal finances or business, you should consult a qualified professional adviser.
No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this
material.
2011 Deloitte Touche Tohmatsu India Private Limited. Member of Deloitte Touche Tohmatsu Limited

3rd IndaiAfrica Hydrocarbon Conference

Încărcat de

Informații document

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

3rd IndaiAfrica Hydrocarbon Conference

Încărcat de

Drepturi de autor:

Formate disponibile

Ministry of Petroleum & Natural Gas

3rd India Africa

December 7-8, 2009

December 9 -10, 2011

3rd India Africa Hydrocarbons Conference | 1

Overview of energy sector

Natural gas sector

City gas distribution in India: An overview

Exploration and production

Coal Bed Methane (CBM)

E&P Ventures by Indian Companies in Africa

Import and export of petroleum and oil products

Policy and regulatory overview

Petroleum, Chemical Petrochemical

Coal gasification in India

Africa hydrocarbon sector

Exploration & Licensing rounds in Africa

Democratic Republic of Congo

Cote D' Ivoire

2 | 3rd India Africa Hydrocarbons Conference

Republic of South Sudan

3rd India Africa Hydrocarbons Conference | 3

Indian Primary Energy Mix (2010)

Balance Recoverable Oil Reserves, Production and Consumption

India - Ultimate Oil Reserves (MMT)

Share of India Oil Production by Companies (2010-11)

India - Oil Supply Projections XII plan (2012-17)

Share of India Gas Production by Companies (2010-11)

India - Gas Demand Estimate (2012-17)

Recoverable Gas Reserve, Production and Consumption

India - Ultimate Gas Reserves (BCM)

India - Gas Supply Projections XII plan (2012-17)

Status of Exploration in the Indian sedimentary basins in 2010-11

Acreage Portfolio of the Indian sedimentary basins

Blocks Awarded under NELP I - NELP VIII Rounds in India

Acreage Portfolio under License (NELP I VIII) in India

Acreage Portfolio Awarded in NELP VIII Round in India

Refining Throughput of Major Players in India

India - Current Refining Capacity (MMtpa) and Companies

Net Product Export in India (Thousand metric ton)

World Energy Consumption (Mtoe)

World Primary Energy Supply (Mtoe)

World Proven Oil Reserves (2010)

Africa Oil Reserves (1995-2010)

World Oil Production (2010)

Africa Oil Production (1995-2010)

World Oil Consumption (2010)

Africa Oil Consumption (1995-2010)

World Refining Capacity (2010)

Africa Primary Refining Capacity (2010)

World Natural Gas Reserves (2010)

Africa Natural Gas Reserves (1995-2010)

World Gas Production (2010)

Africa Natural Gas Production (1995-2010)

4 | 3rd India Africa Hydrocarbons Conference

World Gas Consumption (2010)

Algeria - Oil Reserves, Consumption and Production

Algeria - Gas Reserves, Production and Consumption

Angola - Oil Reserves, Production and Consumption

Angola - Gas Reserves, Production and Consumption

Benin - Oil Reserves and Consumption

Cameroon - Oil Reserves, Production and Consumption Global

Cameroon - Gas Reserves, Production and

Chad - Oil Reserves and Production