Africa Oil & Gas Report - JANUARY 2012

DRILLING UPDATE
FIRST OIL
PROJECT REPORTS
FARM IN FARM OUT
Vol
V
ol 13, No 1, December 2011/January,
y, 2012
y,
www
www.africaoilgasreport.com
report
DEEPWATER
ANNUAL 2012
A TOTAL Push On The
Frontier
INSIDE:
GHANA: Luckiest Of
The Minors
AFRICA IN BUSINESS
How The Chinese Blew It
KICKSTARTER
Why S.A. Will Lose Out In The

Mozambican Sweepstakes
PETROLEUM RIGHTS
Egypt, Sierra Leone In The Market
Vol
V
ol 13, No 1, December 2011/January,
y, 2011
y,
Publisher: TOYIN AKINOSHO

Editor-In-Chief: FRED AKANNI
Editor: MOSES AKIN AREMU
Associate Editor, Abuja: CHRIS P. OTAIGBE
Assistant To The Publisher: STELLA OBAKA
Special Projects: EJIKEME OKEKE
Consultant: FIDELIS AKPOM
Project Assistant: AHMED GAFAR
Reporter/Researcher: SEUN KALE
REGIONAL REPRESENTATIVES
West Africa: DELALI OTCHI/Accra, Ghana
South Africa: Robert Bakre/Cape Town, SA
North Africa: OYELADE ABASS/Cairo, Egypt
HQ(North): DOROTHY YAWE/Abuja
HQ(South): Noah Ajibise/Warri
REGIONAL CORRESPONDENTS
SA'AD BASHIR (Dar es Salaam)
JOHN ANKROMAH (Accra)
SULLY MANOPE (Windhoek)
MOHAMMED JETUTU (Cairo)
FOLUSO OGUNSAN Jr. (Lagos)
DESIGN & EDITORIAL CONSULTANTS
KAZMA CONCEPTS LAGOS
kazmaconcepts@yahoo.com, 234-805-621-2178
INTERNATIONAL ADVISORY BOARD
MAKOJI ADUKU Abuja, AUSTIN AVURU Lagos,
JAHMAN ANIKULAPO Lagos, DEV George Houston,
TAKO KONING Luanda, GERD MEUER Cologne, AKIN
ADESOKAN Indiana, JOANA MOFFAT London
The West -East

Frontier Opening
he deep blue seas off the coast of Africa continue to open up their treasures to explorers. Five
years ago, we were certain the story had changed from exploration to production. As FPSO
after extra large FPSOs were delivered on the waters off Angola and Nigeria, the headline was
now is payback time from a decade of exploration investment. Then, like a bolt out of the
blues, Ghana's large discovery happened, promising close to a billion barrels of oil in reserves. And
just as 'The Gold Coast' itself moved from exploration to production mode, the holler came from the
east: the gas reserves off Mozambique, most of them discovered in 2011, are, by some estimates,
some of the largest discoveries of methane in any single corner of the globe in a long time.
We have been treating these issues as they come up. In the earliest months of every year since 2004,
we devote an edition to deepwater activity on the continent. In it, we interpret as much as possible
the investment opportunity and technical challenges of ongoing deepwater activity. Outside of these
Deepwater Annuals, we take time to engage with whatever else comes up. Our last issue (November
2011)examined, at length, what the new East African (onshore and deepwater) frontier opening
means to explorers, brokers and techies alike. The issue you are holding in your hands focuses on two
different actors: (1)how one European major (TOTAL) has found itself in the lead in the West African
fairway and (2)how one province(Ghana) may avoid the failures of similar minor deepwater basins on
the continent.
As these stories and other articles in this edition show, this magazine is the primer on oil and gas
activity in Africa, providing insight, energy intelligence and insider information to guide everyone
from the prospecting E&P company to the project finance institution. We wish our subscribers a most
profitable 2012.
-Editor
BOOK EXCERPT
Published by: FESTAC NEWS PRESS LTD.

OFFICE ADDRESS
CORA House, 95, Bode Thomas Street,
Surulere, Lagos, Nigeria.
EDITORIAL EMAIL: info@africaoilgasreport.com
WEBSITE: www.africaoilgasreport.com
TEL: 234-1-7365971, 234-8130-733-523
DISPATCHER: Kayode Akinyele
LEGAL CONSULTANTS
OMISORE AND OMISORE
6th Floor, Western House, Broad Street, Lagos
REGIONAL CONTACTS
CAPE TOWN: ROBERT BAKRE
22, Stuartfield Avenue, Upper Trovalto, Wynberg,
Cape Town 7800. Phone: +277-96971531.
Email: robertbakre@gmail.com
ACCRA: DELALI OTCHI
Email: hospitalityghana@gmai.com
Phone: 233-2405-69650.
DANIEL BUDU
Phone: +233-243349209.
RIDGE CHURCH,
Tudu Branch, Accra. Phone: 0243349209.
Email: robertbakre@gmail.com
CAIRO: AL-AHRAM NEWSPAPERS LTD.
Al Galaa Street, -11511, Cairo.
Phone: 5796997, Mobile: 012/2180706
OYELADE ABASS
Email: abbs199@hotmail.com
PORT HARCOURT: MEDIA FRIENDSHIP LTD.
Departure Hall, Port Harcourt Int' Airport,
Nigeria
Mobile: +234-803-341 9-799
SUBSCRIPTION/ADVERT PLACEMENT
SERVICES
Phone: +234-1-7228041, +234-809-9903294,
+234-801-30733523
Email: info@africaoilgaseport.com
They Are All Traitors!
o you have any Egyptian Copts in the

department? There are no Copts in the
histology department. They are in internal
medicine, surgery, and physiology. The Medical Center at
the University of Illinois in Chicago has only seven Copts, all
of whom I know.
Safwat took out of his jacket pocket a folded piece of paper
that he slowly opened and handed over to Danana, who
took it, read it with interest, then looked angry and said,
Obscene lies!
This is one of numerous broadsides that have been
distributed last week. Keep it and read it when you have the
time. The Copts in Exile are getting more and more active to a
worrying degree. They attack Egypt and our revered president
with insolence. Unfortunately the American administration
listens to them
They're all traitors, agents on Israel's payroll.
Safwat Shakir bowed his head for a moment then spoke in a serious tone. Israel has ties
with only one organization. The rest of the Coptic organizations work on their own and raise
their own money. They attack the regime to win gains for the Copts in Egypt:'
That's impossible, sir. Egypt does not give in to blackmail. Besides, seeking support from
abroad is treason.
Danana recited this quickly, as if it were a lesson he had memorized. Safwat nodded then
asked in a serious tone of voice, What do you know about Karam Doss?
He is a heart surgeon, a millionaire who lives in a posh mansion in Oak Park and is one of the
leaders of Copts in Exile.
Write me a detailed report about him.
At your service.
Excerpted from Chicago, a Novel by Alaa Al Aswany
ISSN: 1597-5274
Copyright
2012
FESTAC NEWS PRESS LTD.
AFRIC A OIL + GAS REPORT
DECEMBER 2011/JANUARY, 2012
FROM THE EDITOR
report
K I C K S TA R T E R
Why S.A. Wont reap From

Mozambiques Massive Gas Finds
outh Africa has the opportunity to

benefit from the recent natural gas finds
offshore Mozambique, one of the
world's most significant hydrocarbon
discoveries in the world in the past 10 years.
But Africa's largest economy is more likely to
pass up the chance, because South Africa's
energy policy is not constructed in a way to
take advantage of gas resources next door.
New deepwater discoveries by the Italian giant
ENI, and the American independent Anadarko,
are estimated to boost Mozambican gas
reserves to more than 30Trillion cubic feet.
South Africa is located south of Mozambique
and shares the same Indian Ocean in which
these resources are located.
But the South Africans, who have no large
proven natural gas reserves, don't see natural
gas as a priority energy resource. It's a fuel
that's largely perceived as an expensive
import.
The country's 25 operational power stations
produce a net maximum installed capacity of
40,870 MW, of which more than 85% is
currently coal-fired, with the remainder
comprised of a mix of open cycle gas turbines,
hydro and pumped storage plants, as well as a
1,800MW nuclear power, supplemented by
imports of about 1,520 MW.
The installed open cycle gas turbines currently
generate 1,316MW, or a mere 4% of the
country's nameplate capacity. Two of these
four gas plants-the 588MW Ankerlig plant and
the 438MW Gourikwa plant- were
commissioned only in the last six years. Before
they were built, the country was generating
just 342MW (171MW each) from two plants:
Acacia and Port Rex.
The Integrated Resource Plan (IRP) for South
Africa, published as a government gazette in
May 2011, envisages an addition of 42,
600MW of new build electricity generation
capacity between 2010 and 2030, to all existing
and committed power plants. The plan
assumes a nuclear fleet of 9,600MW;
6,300MW of coal; 17,800 MW of renewables;
and 8,900 MW of other generation sources,
which includes only 2, 400MW of close cycle
gas turbine generated power.
The IRP refers to the co-ordinated schedule for
generation expansion and demand-side
intervention programmes, taking into
consideration multiple criteria to meet
electricity demand. South Africa's power utility
Eskom currently supplies 45% of Africa's power
and 95% of its own country's electricity, mostly
from coal-fired plants. There's limited space
for more private sector generation in the
medium to the long term.
The more I look at it, the more I am convinced
that even the 2,400MW of gas fired electricity,

in a 20 year resource plan envisaging a build of
42, 600MW, is a mere afterthought.
The national conversation around energy
issues in South Africa involves every
conceivable energy source but natural gas. As I
write, the roll out for installation of renewable
energy plants has kicked in; there's a vibrant
discussion of the possibility of scaling up
nuclear power generation in the country, even
if there are more skeptics than optimists; and
the place of coal in the country's energy future
is assured. But no one is, really, discussing gas.
The IRP had extensive input from a wide range
of stakeholders in the energy industry. Read
carefully, the plan looks at Nuclear energy very
favourably, but takes a far more tentative view
on gas utilization.
A key reason for the aversion to gas utilization
in S.A's energy mix is that while the country
doesn't have much gas reserves, it considers
the cost of imported gas as rather too high.
Take this liner in the plan:
The import coal and hydro options are

preferred to local options, but
imported gas is not preferred to local
gas options.
The IRP looks to installing gas fired plants
between 2019 and 2021 and even then, there's
a challenge. The IRP says:
Building gas-driven CCGT power plants
requires the creation of gas infrastructure. In
addition to the CCGT power plants, a LNG
terminal needs to be decided on unless a
suitable domestic supply is developed, and
built together with the associated gas
infrastructure. To trigger these decisions and
investments and to ensure that the first CCGT
capacity is available by 2019, a firm
commitment to building the CCGT power
plants is required, which will create the
necessary demand to ensure appropriate
utilisation of the new gas infrastructure. In
the absence of domestic gas supply, it could
be highly beneficial to develop an anchor
industrial customer (for example petrochemical) for the LNG terminal in order to
facilitate the volumes required to justify the
LNG terminal itself as well as provide gas
supply flexibility to the CCGT plant, which
would otherwise be required to run baseload(or with very high load factors) to warrant
the LNG terminal expense.
If you ask me, this is one drawn out argument
for leaving out natural gas. A whole, 153 word
paragraph has been used to dismiss the
world's cleanest hydrocarbon resource. It just
plays to my theory that South Africans will use
every excuse to jettison the use of natural gas
in the electricity generation fuel mix.
Toyin Akinosho
Which is quite curious, given the availability of

Natural gas around South Africa and the ease
with which it could be imported.
Sasol, the South African synfuel giant, is
currently importing 112.2billion cubic feet of
gas a year from Mozambique through a project
it owns in agreement with the Mozambican
government. This project features a gas
processing plant installed in Mozambique and
an 865km pipeline from Temane in
Mozambique to Secunda in South Africa.
Originally, that gas was partly supplied to
customers and partly used as feedstock for
some of Sasol's fuel and chemical production
in South Africa. Now the use has expanded. In
2011, Sasol brought two gas turbines into
operation in Secunda, producing 200
megawatts of power from the natural gas the
company imports from Mozambique. The
subsequent addition of heat recovery has
further improved energy efficiency, the
company says in its 2011 annual report.
'Another gas-to-power project was recently
approved by the board for Sasolburg. This will
come on stream in 2013, increasing our own
electricity generation capacity from 50% to
60% of our South African requirements.
Sasol's increasing gas fired power plant
capacity provides a compelling example of
how imported natural gas can grow to a
respectable proportion in South Africa's fuelfor-electricity mix. But ideas such as this don't
seem to seep into mainstream policy thinking.
At an oil industry conference in Cape Town in
November 2011, Michael Bagraim, president
of the the city's Chamber of Commerce said
that a complete rethink of South Africa's
energy and electricity plans was essential in
light of the massive new natural gas
discoveries in Mozambique and Tanzania. I
have watched South Africa's energy policy
closely since the grid failure in 2008. My take is
that calls like Mr. Bagraim's are few and far
between.
The more I look at it, the more I

am convinced that even the
2,400MW of gas fired
electricity, in a 20 year resource
plan envisaging a build of 42,
6 0 0 M W,
afterthought.
is
mere
MOVIDO
Ekeh Field
Movido, in partnership with DWC, is in need of funds to construct a
7km pipeline to Chevrons Middleton facility. Movido is one of the
earliest starters among Nigerias 2004 Marginal field awardees; its Ekeh
challenge had been access to Middleton. It had produced the field for
short periods of time and delivered crude to export terminal through
barges but it was expensive; now it wants a more permanent solution.
DEL SIGMA
Ke Field
Operator Del Sigma was on site preparation for
most of 2009, trying to convert a swamp
location into land and move in a rig. Its partner,
Mart Resources, was suffering from severe cash
crunch at the time. The two companies have
since parted ways. In January 2010, Del Sigma
signed a JOA with Sirius Petroleum.
ENERGIA PETROLEUM/OANDO
Obudugwa/Obodeti
Currently producing 1,700BOPD. Constructed a pipeline to Agips facility
for evacuation. Completed installation of a modular Gas processing plant.
GOLAND PETROLEUM
Oriri
Goland and its technical and funding partner are waiting on a
Transocean rig currently being engaged by Afren on the Ebok field.
They could have been drilling since November 2010, but Afren
extended the usage time of the rig by another six months. Goland
was one of the earliest members of the Marginal field class of 2004
to go on a well site. But community disturbances held the
company back, leading to severance of relations with partne Vitriol.
BALYESA OIL
(Technical Partner: Century E&P Ltd)
Atala Field
Century Exploration and Production Limited has farmed into a 35% equity interest and 80% working interest in
Atala Field. The company will finance a review of existing technical data on the field, the re-entry and testing of the
existing well and the drilling of a new one in order to put the field on production as soon as possible. Bayelsa Oil
Company Ltd, a state government company which was awarded the field, has hardly made progress since it was
granted in 2004 and has been accused of using the asset as a vehicle to loot the treasury. The charges never went to
court.
EXCEL E&P
Eremor Field
Excel has dumped the would-be-technical partner and investor it was negotiating with. The
discussions kicked off in May 2011. Now the company is back in the market. Of the 31 companies
awarded 24 marginal fields in 2004, Excel took an early lead; along with technical partners Mart
Resources; re-entered one of the wells and conducted extended production test as far back as
2006. But the partnership broke down and Excel has been with a few other putative partners,
including Afren, since.
SOGENAL
Akepo Field
Oando, the technical and financial partner, has ordered
equipment(for a 16km pipeline and jacket). The company is
close to a financing deal with a local bank for Akepo field
production start up.
BICTA ENERGY
Ogedeh Field
Slow progress. After Afren pulled out, there have been several
suitors, but talks recently broke down between Bicta Energy and
Ofserv, the Houston based firm.
BRITANNIA U
Ajapa Field
Returned to production after a well workover. Current output is ~2,300BOPD.
Brittania-U, in December 2010, bought out Syntroleum, its foreign technical
partner, for $30 million and assumed 100 percent ownership of the
operations. The company has acquired reservoir interpretation facility for own
work and third party use.
GUARANTEE PETROLEUM/OWENA
Ororo Field
Sirius, the AIM listed E&P investor, has entered into a Financial and
Technical Services Agreement with Owena Oil and Gas Limited and
Guarantee Petroleum Company Limited for a proposed investment in
the Ororo field. Sirius may proceed to acquire a 40 per cent interest in
the Ororo Field. In consideration of entering into the Agreement, Sirius
has agreed to pay US$1m in aggregate to Guarantee and Owena.
SAHARA ENERGY FIELDS

Tsekelewu Field
EIA has been performed, but neither a re-entry, nor new
drilling had taken place. This looks like a huge opportunity
overlooked.
PLATFORM PETROLEUM
Egbeoma Field
Plans a 48km gas pipeline to Seplat operated Oben field gas facility, for domestic gas utilisation.
Built a Has completed a gas processing plant a year ago, but negotiations for gas evacuation to Agip
has been drawn out. In crude oil terms, currently producing around 2,600BOPD, up from 1,200BOPD
last November, the result of a successful re-entry. The first company in the Marginal Field class of
2004 to reach first oil, Platform has moved from as high as 1,800BOPD to as low as 600BOPD.
EURAFRIC
Dawes Island
Eurafic is talking to Oilflow Group for a
technical partnership.
NETWORK E&P
Qua Iboe Field
Technical Partner, Mart Resources pulled out after
reporting dire finances. There was a lack of success
with the new well Qua Iboe 3. Network E&P is
looking for a new technical partner.
GREEN ENERGY
Otakikpo Field
Green Energy, a new local E&P company, has been awarded the
Otakikpo field, located in Shell operated Oil Mining Lease(OML)
11. The award is, unusually, outside a bid round and was clinched
through a patronage network. The Beny Steinmetz Group is
technical partner. FOA and FIA are expected to be signed.
FRONTIER OIL
Uquo Field
Frontier Oil is in advanced stage of installing
equipment for the hundred million
standard cubic feet per day (100MMscf/d)
of gas on the Uquo Field in Eket. First gas is
likely to be delivered by March 2012
UNIVERSAL ENERGY
Stubb Creek
Seven Energy anticipates first oil from this field by 4th Quarter
2011. Seven Energy acquired 62% of Universal Energy (holders
of the field), in 2010. Sinopec has been technical partners all
along.
ASSOCIATED O&G/DANSAKI
Tom Shot Bank
Mira Resources, the Canadian operator, has flowed an average of 280 BOPD from a 120 foot section out of the 210 foot
U7 interval in the Lower U7 in Tom Shot Bank (TSB) 1. There was no formation water and a GOR is in the 850 to 950
range. The flow rates were a small fraction of the anticipated flow rate, expected to be in excess of 1500 BOPD on a
32/64" choke. Mira will re-continue the completion as a producer in conjunction with the drilling of TSB 3 in early 2012.
MILLENIUM OIL &GAS

Oza Field
Hardy Oil, technical partner to Millenium Oil&Gas, now has an
Australian Bank as partner. Also in talk with Nigerian banks for a
syndicated loan. Hardy had earlier brought in Emerald Resources
for funding purposes but the company has proven incapable of
raising the funds. Last technical news: On 31 December 2007,
Hardy Oil Nigeria tested, in Oza 4, at flow rates averaging
approximately 600 stbd of oil and average GOR of 5,466 scf/stb.
WALTER SMITH
Ibigwe Field
Walter Smith had a blow out on the rig: the
entire rig went up in flames. The company is
tackling the challenge head on. It is currently
drilling a relief well to keep the reservoir fluid
pressure in check.
report
Copyright 2012,
AFRICA OIL+GAS REPORT
2012 BID ROUND PENDING

Nigeria Grants M/Fields In Patronage Circumstances
he Department of Petroleum Resources is finalizing the
arrangements for 2012 Marginal Field and Acreage Bid Round.
Meanwhile, the authorities have awarded two marginal fields to
brand new local E&P companies, outside the process of a bid round. The
Otakikpo Field was awarded to Green Energy while the Ubima Creek field
was awarded to All Grace. Otakikpo and Ubima are located in Shell
operated Oil Mining Leases(OMLs) 11 and 17respectively. The awards
appear to have been effected through a patronage network. It's
instructive that the same company: The Beny Steinmetz Group (BSG) is
technical partner for both companies, which are alleged to be linked to
former President Olusegun Obasanjo.
PRIME/ENERGY/SUFFOLK
Assaramatoru Field
Shopping for $40million to kicksyart re-entry and field
development work.
ALL GRACE Ubima Field

All Grace, a new local E&P company, has been awarded the
Ubima field, located in Shell operated Oil Mining Lease(OML)
17. The award is, unusually, outside a bid round and was
clinched through a patronage network. The Beny Steinmetz
Group is technical partner. FOA and FIA are expected to be
signed.
INDEPENDENT
OIL & GAS LTD.
Ofa Field
Well work over done by
Afren. Low API gravity.
Flow not assured. Not
looking good.
PILLAR OIL
Umusati/Igbuku Field
Spudded the Umusati-3 Well in late December 2011. Drilling with Deutag T57. Pillar
was the third company, in the marginal field class of 2004, to reach first oil. But it
has struggled at far below 1,000BOPD. This well is expected to be a turn around.
MIDWESTERN O&G
(Technical Partner: MART RESOURCES)
Umusadege Field
Commenced production 2008. Produces over 8,000 BOPD. Most
sustained steady production of all operators.
CHORUS ENERGY
(Technical Partner: SEPTA ENERGY)
Matsogo/Amoji/Igbolo Field
Drilled a dry hole looking for oil. The field/s have more potential as gas pools.
P+P is estimated to be 160 billion cubic feet of gas.
NIGERIAN MARGINAL FIELDS: STATUS UPDATE

www
Vol 13, No 1, December 2011/January, 2012
CONTENTS
Vol
V
ol 12, No 8, January,
y, 2012
y,
www
report
IN THIS ISSUE
From The Editor
COVER STORY
Kickstarter
28-31
Downstream Refining
A TOTAL
Push On
The Frontier
In The News
Petroleum People
Oil Patch Sahara
03
04
07
11
15
18
Oil Patch Subsahara

Africa In Business
Opinion
Deepwater Annual
Farm In, Farm Out
Last Word
20
22
26
28
33
38
COVER PHOTO: Christophe de Margerie, Chief Executive of TOTAL

CONFERENCES, MEETINGS, EVENTS
16th Offshore West Africa Conference
and Exhibition
January 24-26, 2012, Abuja, Nigeria
CONTACT: Tel: +2348056872630,
Email:q-she@inbox.com
Fax: 00971 0 4 457 3164:

http://www.spe.org/events/natc/
2012/
3rd SPE (Society of Petroleum

Engineers) North Africa Technical
Conference and Exhibition NATC 2012
February 20- 22 February 2012 in
Cairo, Egypt .
Tel: 00971 0 4 457 5800
12th Nigeria Oil & Gas Conference

&Exhibition
February 21-24, 2012, Abuja,
Nigeria
CONTACT: Tel: +442079780083,
email:
tmillard@thecwcgroup.com
Summit Africa
February 28-March 1, 2012
Cape
Town, South Africa
Tel: +44 117 915 4738 Fax: +44 78344
22947
Email: ed.taylor@gdsinternational.com
Website: Click here
6th Africa Economic Forum
March 5-7, 2012
Cape Town, South
Africa
Tel: +31 70 324 6154 Fax:
Email: babette@glopac-partners.com
2nd Annual Shale Gas

Conference
Dates: 06 March 2012 - 09 March
2012
Venue: Convention Dynamics,
Isando, Johannesburg
Email: kfrancis@iir.co.za, Tel:
+27117717000
6th German-African Energy Forum

April 22nd 25th, 2012
Hamburg, Side Programme (April
22nd)
Hamburg, Hotel Grand Elyse (April
23rd 24th)
Hanover, Hanover Fair (April 25th)
Details: www.energyafrica.de
Shale Gas Southern Africa

26th & 27th March 2012 Town
House Hotel &Conference Centre,
Cape Town, South Africa
Email: mark.sales@vitaltraining.co.za
EnerCom's London Oil & Gas

Conference
June 13- June 14, 2012
CONTACT: Tel: +303.296.8834
Email: kgrover@enercominc.com
By Austin Avuru
Deregulation
or
Subsidy Removal?
Equalization Fund (PEF) for a
truck load of PMS is higher
than the value of Cargo itself!
Add to this, the share
nuisance created by these
trucks along this axis.
Clearly, therefore, our entire
strategy for taking petroleum
products to consumers is hinged
on functional refineries tied to a
distribution network of pipelines
and depots which ensure that no
truck travels more than five
hours to pick up products for
distribution to retail outlets.
Due to political pressure and a
very strong advocacy from the
Unions, Petroleum Products
prices have remained regulated.
The result is that at high crude oil
prices, the associated subsidy
which is borne by Government
becomes prohibitive. At nearly $7
billion per annum, with arrears of
payments running over $5 billion,
this subsidy is simply
unsustainable. Besides, all well
run economies around the World
have since moved away from
communist-style subsidies that
neither enhance productivity nor
even truly reach the intended
audience. Infact, diesel which is
the fuel for mass transit vehicles
and electricity generators in
Nigeria has been deregulated for
over five years. No sensible case
can be made for the huge subsidy
on PMS and Kerosene, which
effect does not even get down to
the entire populace.
Deregulation vs Subsidy
Removal
My real worry, however, is that
what is being discussed today as
deregulation is actually subsidy
removal as an end in itself and not
a means to the solution.
Government's broad plans are to
withdraw the subsidy, move to
market prices for Petroleum
products and hope that this
singular action will open up the
downstream to fresh
investments in refining and
distribution. In the process,
Government would save some
$7 billion per year which can
then be applied to fund some
palliatives and win over the
populace.
This will be catastrophic!
As the subsidy is withdrawn (for
this must happen first to catalyse
other actions) the Honourable
Minister must announce a clear
time-table of twenty four to thirty
six months during which the
refining and distribution
bottlenecks would be fully
addressed. The promise,
therefore, would not be the
palliatives but a commitment to
providing a final solution to the
downstream problems such that
the initial pains that the populace
would have to bear would last
only 24 months.
How will the Honorable Minister
deliver on these strong promises?
The refining business is tough
business (high capital outlay and
relatively low margins) which is
why very few new refineries are
being built around the world.

Therefore, the mere removal of
subsidies will not bring Refiners
scampering to Nigerian to invest
in new facilities. The Minister has
to induce the process,
particularly with the short time
frame available to deliver. My
prescriptions are outlined below:
?
Spin off two of the four
refineries to Private
Operators, leaving two with
NNPC to test their ability in a
competitive environment. In
order to take full control of
the process and avoid the
pitfalls of our privatization
bureacracy, I suggest that
the minister invites four of
Nigeria's multinational Joint
V e n t u r e /
P S C
Partners(namely
E x x o n M o b i l , T O TA L ,
Chevron, Shell or Eni) for
negotiations along the
following lines:
A technical audit and
valuation of the
refineries to determine
the value of each of
them as is today. It will
d ete r m i n e w h at i t
would cost to
completely revamp
each refinery and bring
it up to world class
operating standards.
The current value of the
refinery (including land,
buildings etc) will be the
Equity contribution of
NNPC, the Nigerian
state hydrocarbon
c o m p a n y, w h i c h
represents the
government in this
transaction, while the
JV Partner funds the
revamp as their equity
Contribution. Thus the
new refinery would be
owned by NNPC and the
new technical partner in
the equity ratios so
derived while the
technical partner
operates the facility.
Both parties will agree a
firm time-table for
achieving this, bearing
in mind the promise
made to the Nigerian
public. I believe that
between Shell,
Chevron, ExxonMobil,
TOTAL, Eni, Phillips,
DOWNSTREAM, REFINING
he twin issues of
appropriate pricing of
Petroleum products and
the (non) functioning of the
downstream infrastructure
(Refining and Petroleum Products
distribution) have dogged the
path of every Nigerian minister of
Petroleum since 1992.
Infact, the then very influential
Petroleum Minister, Prof. Jibril
Aminu lost his job in June 1992 in
response to public agitations over
Petroleum products scarcity. That
was the first real sign of crises in
the downstream sector. Over the
nearly twenty year period, no
lasting solution has been
implemented.
At the core of the crisis is the state
of the downstream
infrastructure. Our four refineries
as well as the distribution
network (consisting of 19 storage
depots and interconnecting
pipelines) were all built between
1978 and 1988. They ran
efficiently in their first five to ten
years, largely because they were
new facilities. The first signs of
decay arising from a poor
maintenance culture were
noticed, as pointed out earlier, in
1992. Since then, these facilities
have steadily degenerated to the
point of near-zero performance
today.
The consequences are two-fold:
?
The Country has resorted to
massive importation of
petroleum products to
bridge the gap created by the
non-functioning of our
refineries. The logistics
complications associated
with this exercise (freight,
insurance, demurrage, port
charges, etc) probably adds
some 30% to the landed cost
of these products.
?
Because the distribution
infrastructure, which are
largely tied to the four
refineries no longer function,
some 80% of the entire
volume of products
imported into the country is
available to retailers along
the Lagos Mosimi Axis
only. The implication is that
haulage trucks have to travel
for days (or even weeks) and
mass up along this axis to
pick up products for
distribution. In some cases,
the cost to the Petroleum
Photo by: Aderemi Adegbite
DOWNSTREAM, REFINING
Protesters against subsidy removal
Statoil and BP the

minister can pick two
willing partners that can
genuinely commit to
delivering the
rehabilitation
programme. The
Nigerian petroleum
ministry has the tools to
get these companies to
work on this kind of
project. Afterall, there is
always ongoing
negotiation or the
other, which requires
trade-offs by either
party.
This approach will deliver some
250,000bbls of efficient refining
capacity in a very short time
frame and create the market
confidence necessary to spur

further private investments in the
sector.
?
Simultaneously as the above
steps are being
implemented, spin off the
distribution Network as a
private sector run enterprise
with the following ownership
structure:
NNPC
Major Marketers Independent Marketers Refinery Owners Other Investors -
25%
20%
20%
20%
15%
A technical Partner/Operator
would be appointed to run the
facilities on a commercial basis in
a manner similar to the NLNG
arrangement-which is a
profitable Incorporated Joint
Venture. NNPC will capitalize the
existing facilities as their equity
contribution while all other
shareholders will contribute cash
equity which will be utilized to
completely revamp the existing
nineteen depots and pipeline
network as well as receiving
facilities in Lagos, Port Harcourt
and Calabar.
Once this is done, the Petroleum
Equalisation Fund and PPPRA
would be collapsed into one
downstream regulatory agency
that will license and supervise all
downstream operators, ensure
equitable open access to the
distribution network and ensure
a fair market-driven pricing
mechanism.
These steps, though
fairly easy to
implement, would
require a lot of
courage, drive and
political will. You are
likely to be advised
that NNPC can, and
should be allowed to
revamp the refineries
and the distribution
facilities. Their failure
to do so for twenty
years now is not
because they had no
access to the original
manufacturers of the
facilities or because
there are no
knowledgeable
individuals in NNPC.
G o v e r n m e n t
institutions with their
inherent beaurocracy
and political controls
simply do not have the structure,
culture and discipline to run
commercial enterprises. It would
not be the first time NNPC would
embark on fruitless turn-around
maintenance nor a dreamy
promise of turning PPMC into an
efficient, commercial entity. Like
other enterprises before them
(Nigeria Airways, PHCN, NITEL)
they will fail and be eventually
reduced to scrap value. The time
to revamp them and retrieve
optimal value from them is now.
Thank you
Avuru is Chief Executive of Seplat
Petroleum Development Company
Limited and the chairman,
International Advisory Board of this
magazine.
Nigeria's Attempt At Deregulation Is Inconclusive.

By Joshua Ighodalo
he Nigerian government backtracked

from wholesale removal of subsidy on
gasoline prices after a week- long
strike in the second week of January 2012
nearly paralysed the economy.
The government had claimed that the
removal of subsidy would herald the start of
deregulation of the country's petroleum
downstream, expected to usher in
investment into refining and product
distribution. Gasoline is the fuel of
transportation of the global economy. In the
peculiar circumstances of the country,
however, gasoline is also the fuel of millions

of generators, without which most Nigerian
enterprises would not function.
The withdrawal of price control resulted in
an increase of gasoline price from 40 cents
($.4) to 85 cents ($.85),the first such
increase in five years.
The country's organized labour and civil
society groups reacted to the withdrawal of
price control mechanism by alleging that it
was a form of taxation.
In the heated national conversation that
characterized much of the well attended
rallies during the strike, these groups

fingered government corruption and
malfeasance as reasons why the sale of
gasoline below market determined prices
was a burden on the treasury.
The government itself, failing to articulate a
robust investment template, ended up
presenting the removal of subsidy as a
transfer of money from some group of
corrupt elements(businessmen and
unscrupulous civil servants) to another
(governors).
PARADISE 1
Hess announced discovery of
490feet Net Hydrocarbon pay in
Jubilee Plan 1A Submitted

The Jubilee Phase 1A Plan of
Development is awaiting
Government approval and
drilling is scheduled to start in
early 2012 with initial
production commencing in
the second quarter. The
phased approach to field
development will allow these
wells to benefit from the new
completion design
JUBILEE HAS DELIVERED 22 MILLION

BARRELS
The Jubilee Field has produced over 22 million
barrels of oil with 21 oil cargoes safely
exported since production start up in
November 2010, according to Tullow Oil, the
field's operator. The field was producing
around 80,000 barrels of oil per day from eight
wells in early January 2012, with a ninth
production well, J-07, offline while it was
being sidetracked. The six water injection wells
and two gas injection wells are now on line
injecting 230,000barrels of water per
day(BWPD) and 85 million standard cubic feet
per day(mmscf/d) respectively, providing good
pressure support to the field.
Tullow says production rates have been below
expectations due to mechanical issues in
certain wells related to the design of the well
completions. The J-07 sidetrack, currently
under way, will incorporate a new completion
design and is expected to be on stream in early
2012. The operator expects the resolution of
these issues and the contribution of the Phase
1A wells to allow field production to ramp up
KOSMOS EXTENDS THE POOL IN TEAK

Kosmos has confirmed a northern (updip) stratigraphic extension of the Teak
discovery with the Teak-3A well on the West Cape Three Points (WCTP) Block. The
well encountered approximately 35m of hydrocarbons in multiple good quality
reservoirs, i.e. 43feet of 36-39 API oil pay and 72 feet of gas-condensate pay.
ENYENRA / TWENEBOA CLOSE TO COMMERCIAL DEVELOPMENT

Tullow Oil and partners are close to declaring the Enyenra and Tweneboa
development commercial. FEED contracts were awarded for the sub-sea and FPSO
work-scopes and subject to the successful conclusion of this work and the results
from remaining appraisal activity on the fields, submission of a Plan of
Development is targeted for the first half of 2012. Tullow operates the deepwater
with a 49.95% interest. Anadarko holds 18% interest, as does Kosmos Energy.
Sabre Oil & Gas has a 4.05% interest, and the Ghana National Petroleum
Corporation has a 10% carried interest.
AKASA 1
Kosmos penetrated 108feet Net oil
sand in four good quality reservoirs
in August 2011.
TAP OIL
Tap Oil has purchased an additional
5% to add to its operated 40%
participating interest in the
Offshore Accra acreage.
Eni has already begun talks with the

Ministry of Energy and the partner
organisation, GNPC (Ghana National
Petroleum Corporation), aimed at
fast-tracking the development of
Sankofa.
The discovery is located 16 km east of

the Sankofa gas discovery, and
confirms the important role of this
block in the development of nonassociated gas resources in Ghana.
Eni reported encountering significant

thickness of gas and condensate sands
with excellent reservoir characteristics
in Gye Nyame 1 well, located in the
Offshore Cape Three Points block 50
km off the Ghanaian shoreline.. Oil
mineralization was also discovered in
the underlying sands. Its significant
potential will be further assessed
through a delineation programme.
ENI FINDS GAS IN OCTP
AFREN
ENI has farmed in to 35% interest in the Keta Sub
Basin block, and became operator in early 2011,
after Afren sought to divest. Afren Plugged and
Abandoned the Cuda-1 newfield wildcat in 2008
after encountering overpressure. The UK listed
company hasnt gone back to the field since.
report
Copyright 2012,
TULLOW TESTS ENYENRA

Tullow Oil is redrilling the Enyenra-1 (previously known as Owo-1) discovery well, in Deepwater Tano Block.
Plans are to perform a drill stem test at that location. Immediately following operations at Enyenra-1, the
Enyenra-4 appraisal well will be drilled over seven kilometres downdip from Enyenra-2, on the south flank of the
discovery. Results at Enyenra-4 are expected in the first quarter of 2012. An Enyenra-5A appraisal well will later
be drilled north of Enyenra-3A to test the updip extent of the field.
AFTER JUBILEE:
Four additional major discoveries:
Mahogany East
Tweneboa
Enyera
Teak
GHANAs UPSTREAM /MIDSTREAM ACTIVITY MAP

www
NIGERIA's TOP TWENTY INDIGENOUS CRUDE OIL PRODUCING COMPANIES

www
report
Copyright 2012,
an Ocean will be embarking on a major

workover programme in its OML 98, to boost
the sagging production on the lease. Crude oil
output has dropped sharply from about 20,000BOPD
to circa 5,000BOPD in 24 months. About 10 wells are
scheduled for work over in the 2012 programme.
There will be no fresh drilling on the acreage in the
new year. Pan Ocean started the large work over
programme with the well Ologbo-1, utilising the rig

Deutag T76, in November 2011.
The company has invested in the construction of a
65km crude oil pipeline to evacuate its crude.
With the drop in its crude output, it will require third
party oil to fill the pipeline, when it's completed.
Festus Fadeyi, Pan Oceans CEO
Angola Compels Foreign Operators To Pay Local
ngola's parliament has approved a legislation that compels

International Oil Companies(IOCs) to pay their taxes and
other transactions through the country's banking system.
Until now, IOCs were allowed to use overseas banks for their
activities in Angola under a special regime, mainly because Angolan
banking system was considered as still developing and unable to
handle the transactions.
Angolan authorities are now convinced that the national financial
system has developed sufficiently to take an active role processing
the oil industry's transactions.
The new law means oil companies active in Africa's second largest
crude producer will have to pay their taxes and their bills from
overseas sub-contractors and suppliers in dollars through local
banks.
Analysts have said the government has shown determination in
winning its long battle with the oil companies to force them to use
the domestic banks.

Some ten billion dollars may enter the
country's main banks, including the
state-owned Banco Africano de
Investimento and local units of
Portugal's Banco Espirito Santo and
Banco BPI, as a consequence of the
law, every year..
Angola's economy relies heavily on oil
revenues, which make up around 45
percent of gross domestic product
and over 90 percent of export income. Sonangol President, Manuel Vincente
Central bank Governor Jose de Lima Massano says that the new law
will help shore up the country's foreign reserves, an effort seen as
crucial to protect the economy from the risk of shocks from possible
oil price and demand drops.
The Cluster Opens Up The Tap
Mart Resources To Increase Production From 8,000 To 15,000BOPD
igerian Agip
O
i
l
Company
has agreed to
increase the
combined export
capacity for all the
marginal fields in
The Cluster, in the
north west central
Niger Delta by
10,000 barrels of oil
Wade Cherwayko, Mart Resources
per day, bringing the
total export capacity from its current level of
11,000 BOPD to 21,000 BOPD. The fields
include Platform Petroleum operated
Egbeoma(formerly Asuokpu/Umutu) Field.
Energia Resources operated
Obudugwa/Obodeti field and Mart
Resources operated Umusadege field.
The additional export capacity, which is
expected to be implemented in several
phases over the next four months, will be
allocated among the Cluster members on a
pro-rata basis based upon the production

capacity of the fields in the Cluster and other
factors.
The first phase of the export capacity
increase, which was implemented in the last
week of December 2011, has resulted in
Cluster export capacity increasing by
approximately 4,000 BOPD to 15,000 BOPD.
Since the implementation of the export
capacity increase, a majority of increased
cluster export capacity has been allocated to
the Mart Resources-operated Umusadege
field. Once the additional export capacity is
fully implemented, Mart and its coventurers anticipate that the Umusadege
field will continue to be allocated a majority
of the total export capacity available to the
Cluster, according to a statement on Mart
Resources website. Crude oil deliveries into
the export pipeline from the Umusadege
field for the month of November 2011
averaged 7,994 BOPD. The Umusadege field
experienced production downtime of 1.62
days over this period due mainly to
operational shutdowns and export facility

capacity curtailments. By the end of the four
month export capacity increase, the
Umusadege field is expected to be delivering
15,000 BOPD. The operator keeps growing
the field reserves through the drillbit.
Production for Umusadege field by May
2011 averaged 10, 525 BOPD. The field's
gross proved plus probable reserves were
12.9 million as at December 31, 2010,
according to Mart Resources itself. As of May
2011, three years and one month since
commencement of production, the
Umusadege field had produced over
3,000,000 million barrels. Five days to
Christmas in 2011, well logs in the
Umusadege 9, targeting another
culmination to the main Umusadege
producing structure, indicated a cumulative
gross oil pay of approximately 260 feet in the
11 sands encountered by the well to date.
The well had not been tested as of the time
of our going to press.
11
IN THE NEWS
Pan Ocean In Workover Mode In 2012
IN THE NEWS
PGS Loses Out In Mozambique Tender
GS and its arch rival,

CGGVeritas, were the
major losers in the
tender for a vast Multiclient
seismic survey in Mozambique.
The country became the major
exploration hotspot on the
continent after Eni, the Italian

major, described its recent gas
discovery as its largest
hydrocarbon find in history. Ten
geophysical services companies
submitted bids to
Mozambique's National
Petroleum Institute (INP)

between late August and late
September 2011 for the
acquisition of seismic, gravity
and magnetic data. But in its
November 18, 2011
announcement, the Institute
gave the nod to WesternGeco for

Tenders T1, T2 and T3, Geo East
for Tender T4 and ARKeX for
Tenders T5, T6 and T7. Also out of
luck were Fugro, Spec Partners,
Spectrum and Geoex
Aseng Field Comes On Stream
oble Energy operated Aseng Field started production on

November 6, 2011 and was delivering 50,000 barrels of oil
per day, through four subsea wells as of the time of our
going to press two weeks later. First production was achieved less
than 2 years from sanction, some seven months ahead of schedule
and approximately 13 percent below budget. The first tanker of oil
from the Aseng field is expected to be offloaded in December 2011.
developments may be tied back in the future, commencing with the

ongoing Alen field development which is on schedule for first
production in 2013.
Noble Energy operates the field with 38% interest, with Atlas
Petroleum holding 27.55%, Glencore Exploration 23.75% and PA
Resources has 5.7%. The state hydrocarbon company GEPetrol has
5%.
The Aseng infrastructure also provides a hub to which other
Atwood To Spend More Time In The Gulf Of Guinea
merican driller Atwood

Oceanics has been
awa rd e d a d r i l l i n g
services contract by Bowleven
for the Atwood Aurora (350'
ILC). The day rate for work
12
offshore Cameroon will be

approximately $134,000, with
c o n t ra c t c o m m e n c e m e n t
expected in May 2012 in direct
continuation of the current
contract. The award has an
estimated firm duration of

120 days plus a one well
option at the contract day
rate if exercised by December
31, 2011, or at $139,000 if
exercised by March 31, 2012.
With the award of this contract,

the firm contractual
commitments for the Atwood
Aurora are expected to extend
through October 2012.
apan and South Korea are the likeliest destinations of the massive new gas
pools found in deepwater Mozambique.
Eni, the Italian major, puts the
possible size of the reserves in its discoveries at 22.5Trillion cubic feet (TCF).
Anadarko's latest appraisal well has convinced the American independent to
high grade its estimated reserves to around 30Tcf. The

discoveries by these two operators, in accumulations
located near each other, were made between 2010 and
2011.
Eni holds 70% in Mozambique Area-4, with Korea Gas
holding 10% interest. The company has said it plans to
invest $50 billion developing it with a view to exporting
the gas to Asian markets.
Anadarko president Al Walker said resources of this size
and quality are suited for large-scale LNG development,
which is being designed to comprise at least two trains
with the flexibility to expand to six. Anadarko's final
investment decision for its first LNG train offshore
Mozambique is expected in 2013 with initial production
in 2018.
Eni has not announced a firm FID date.
Japan was recently in talks with South Korea on possible
cooperation to obtain lower prices from LNG suppliers.
"Japan and South Korea together represent more than
half of global demand for LNG...it is natural these two
countries seek cooperation" to leverage their
bargaining power, said Hirohide Hirai, the director of
Japan's Ministry of Economy, Trade and Industry's
Petroleum and Natural Gas Division.
Anadarko is the operator of the 2.6-million-acre
Offshore Area-1 with a 36.5% working interest. Among
the co-owners are Mitsui E&P Mozambique with 20%,
Mozambique national oil company Empresa Nacional
de Hidrocarbonetos(ENH) with 15% and Bharat
Petroleum with 10%.
Libya Impacts ENI's 3Q Output
talian major Eni has reported

13.6% decrease in liquids and
gas production, to 1.473
MMBOEPD for the third quarter of
2011, compared with the figures for
third quarter of 2010.
These reflect disruptions in the
Libyan output, as Eni's producing
sites continued to be shut down in
the quarter, with the exception of
the Wafa field which is used to
support local production of

electricity.
Eni resumed activities in Libya
at the end of the quarter by
restarting the Abu-Attifel field.
T h e c o m p a ny s ays t h a t
performance for the quarter
was also negatively impacted
by lower entitlements in the
Company's production sharing
agreements (PSAs) due to
higher oil prices, with an overall

effect of 37, 000BOEPD
compared to the year-earlier
quarter (approximately
35,000BOEPD from the first
nine months of 2010).
These, in addition to the loss of
Libyan output, amounts to an
estimated 200, 000 BOEPD
(down by an estimated 180,000
BOEPD for the first nine
months of 2011). Net of those

effects, production for the
quarter was unchanged from
the third quarter of 2010, while
it was down by 0.8% in the first
nine months of 2011, helped by
production growth achieved in
Norway, Italy and Egypt.
Khartoum Wants $10.5Billion For Five Year Transit
udan and South Sudan have been

negotiating the issue of transit fee for
South Sudan's crude oil export.
At the meeting in Addis Ababa, in November
2011, three options were tabled by the African
Union mediation team.
Former South African president Thabo Mbeki,
leading the mediation team, suggested that a
compromise by which Khartoum gets a
percentage of annual oil exports that would
include the transit fees to help Sudan overcome
the current economic crisis. In return for

that Sudan would facilitate border trade
and open ports for the flow of goods to
South Sudan.
Sudan proposed that the south pay $10.5
billion during the next five years but
Mbeki's team and the International
Monetary Fund (IMF) put the figure at
$7.4 billion. Neither of the numbers was
agreed on. Sudan informed Mbeki that it
cannot keep exporting south's oil
indefinitely without any financial return.

Sudanese state minister of petroleum Ali
Ahmed Osman announced that
Khartoum will no longer allow South
Sudan to transfer its oil all the way to Port
Sudan on the Red Sea until it clears its
financial arrears. Osman claimed that
South Sudan owes $727 million on four
shipments of oil released and transferred
through the oil installations in the north.
13
IN THE NEWS
Mozambican Gas Bound For Asian Markets
IN THE NEWS
Diesel Refinery Gets Licence To Operate
igerian authorities have granted a License To Operate LTO to the

Niger Delta Exploration and Production (NDEP) Plc, in respect of
the Ogbele Topping Plant, a mini refinery located on the Ogbele
fileld in Eastern Nigeria.
The Topping Plant, commissioned in December 2010, has the capacity to
produce 120,000 litres of diesel from 1,000 barrels of crude oil from the
Ogbele field every day. This means that, for every ten days, it can produce
1.2Million litres of diesel, and for every month, can deliver 3.6Million
litres into the Nigerian market.
This License, the first of its kind to be granted to an Independent,
publicly owned Nigerian Company, gives NDPR full authority to operate
its Mini Diesel Refinery (Topping Plant) at the Ogbele Field in old OML 54
(Rivers State), according to Layiwola Fatona, CEO of NDEP.
The LTO will make NDEP's mini diesel refinery the first of such
independently owned and fully operational diesel refinery in Nigeria. The
diesel has been certified by the Department of Petroleum Resources
(DPR), as meeting all the quality controls and specifications, Fatona
explained in a statement.
The Mini Refinery was installed to initially promote self-sufficiency in
NDEP's operations and now the LTO has been granted, NDEP will be able
to contribute to Nigeria's energy production by selling surplus diesel on
to independent marketers, for local consumption. The refinery will
therefore not only benefit NDPR's operations, but will also boost local
capacity and local content.
Fatona describes the building of the plant, as well as the government's
granting of the LTO, as a precedent. 'This is a ground breaking
achievement.'The operation of this mini diesel refinery shows what can
be achieved by a local company, using local staff, financing and expertise'.
With four government refineries delivering sub-optimal performance,
Nigeria has struggled with the prospect of private sector ownership and
running of refineries. In the 10 years, scores of companies applied for
licences, with pledges to invest in refining capacities ranging from as high
Ogbelle Topping Plant
as 100,000BOPD to as low as 6,000BOPD. None of these companies

has come anywhere close to physical installation of a refining plant.
NDEP wasn't part of the rush for licencing and its 1,000BOPD
topping plant is much more modest than any of the proposed
plants, but Small as it is, it is the only privately owned legitimate
hydrocarbon refinery in the country. As Fatona puts it, it's a
seeming little achievement of some sort, but a ground breaking
accomplishment
Tom Shot Bank: Initial Test is Disappointing
ira Resources, the Canadian

operator, has flowed an
average of 280 barrels oil
per day (BOPD) from a 120 foot section
out of the 210 foot U7 interval in the
Lower U7 in Tom Shot Bank (TSB) 1.
There was no formation water and a
GOR is in the 850 to 950 range. The flow
rates were a small fraction of the
prognosis, expected to be in excess of
1500 BOPD on a 32/64" choke. TSB 1
flowed for seven days under different
choke sizes; the flows ranged from 77
barrels oil per day to 512 BOPD. Mira
allowed this lower zone four days

to clean up and then conducted
controlled tests at various choke
sizes for three additional days to
gather the pertinent information.
The anticipated flow rate from the
U 7 wa s m o d e l e d b y M i ra
Resources' independent reservoir
experts incorporating the newly
acquired data. After further
analysis of our production
models, the company however
explains, it has been suggested
that due to near well bore
reservoir damage during the

original drilling of TSB 1 in 1980
when they took a hydrocarbon
kick, additional stimulation
techniques are required to
increase the flow rates. Due to
the variable flow rates it was
estimated it would require an
additional ten days to calculate a
definitive skin and permeability,
therefore the test was terminated.
The company thinks that the
most logical completion scenario
that our independent completion
Tanzania Pumps More Gas Into Power
rca Exploration, the Canadian minnow, has

increased the supply of natural gas to Dar es
Salaam power generation facilities following
the re-rating of gas processing facilities on Songo Songo
Island. This increase in gas availability is helping to
reduce the power shortages that have been impacting
Tanzania following the failure of the rains, Orca said in a
press release. The shortfall in rainfall impacted
Tanzania's hydro generating capacity.
Orca's additional gas sales averaged 57 MMcfd in August
2011, a 40% increase compared with 37 MMcfd in 2010.
Of this, 84% was sold to the Tanzanian power sector (48
14
MMcfd compared with 30 MMcfd in 2010).

Orca staff were instrumental in completing the
technical evaluations that enabled the re-rating
to proceed, the company asserts.
Currently Tanzania is short by approximately
200-300 MWs of power capacity and is
introducing emergency oil fired generation to
alleviate the shortfall. This oil fired generation is
intended to be replaced with gas fired
generation once more gas can be transported to
Dar es Salaam. To accelerate the delivery of
increased gas volumes to Dar es Salaam, the
and testing experts have modeled

is through a comingled flow of the
U4 gas reservoir and the U7
interval. These two intervals have
the ability to deliver in excess of
2 5 0 0 B O P D . A s t h i s i s a
completion and requires
additional equipment, Mira
Resources says it is unable to
complete the well at this time and
has suspended the well and will
re-continue the completion as a
producer in conjunction with the
drilling of TSB 3 in early 2012.
Government of Tanzania has indicated that it will

install a new coastal gas pipeline system financed
by funds from the Chinese Exim Bank. The first
phase of this project is expected to be the
looping of the existing 200 kilometre onshore
pipeline from Songo Songo that will enable 200
MMcfd to be transported to several new power
plants that are currently planned for the Dar es
Salaam area. Orca is committed to invest the
capital in natural gas exploration and
development to ensure that it can deliver the
200 MMcfd from its Songo Songo licence acreage
in parallel with the Government announced
infrastructure developments.
Finish The Job
ugustine Olorunsola's career is ample

evidence for conspiracy theorists who insist
that Nigeria's petroleum ministry is run from
the headquarters of Shell in Lagos.
For the second time in three years, he has left a high
profile job at the Anglo Dutch major, at terribly short
notice, to take up appointment at the highest levels
of government.
In mid November 2011, he was named director of the
Department of Petroleum Resources, the industry's
regulatory agency, by President Goodluck Jonathan.
This is a man who, before returning to Shell as Vice
President Gas and Power for Subsaharan Africa, was
Strategic adviser to the Minister of State for
Petroleum, between 2008 and 2009.
Shell's alumni routinely move to run top level
public sector offices in the Nigerian Petroleum
industry. Edmund Daukoru, who was minister
between 2006 and 2007, was General Manager
Exploration and New Business at Shell when he was
appointed as Group Managing Director of the state
hydrocarbon company, NNPC, in 1992. Tony
Chukwueke, who was Director of DPR during

Dakouru's tenure as minister, was best known in the
industry in the 90s as Shell's Corporate Geophysicist.
Diezani Allison Madueke, the current Minister of
Petroleum, was executive director of public affairs at
Shell when she was appointed minister of
Transportation, in 2007.
Shell has been operating here long before any other
company, Olorunsola says, over vintage white wine
and grilled chicken, at a send forth party for him, held
on the grounds of the official quarters of the chair of
Shell Companies in Nigeria, Mutiu Sunmonu,. So we
have the human resources for government to tap.
He is evidently excited by the new job, seeing it as
something that gives him a rounded experience. I
have been in commercial affairs(his last job), I have
been part of policy making, now I have the chance to
help regulate, he says . Regulatory issues are what
Nigeria desperately needs to get a handle on.
Olorunsola sees himself coming to make a
contribution, in spite of the cynicism surrounding the
job as the least effective of all the top executive
positions in the ministry, and as being subordinated
to the position of the CEO of NNPC, the chronically
inefficient state hydrocarbon company. He would
also need to watch the body language of the DPR
staff, who often prefer directors who have risen from
the ranks of the organization, to those, like
Olorunsola, coming from outside. It depends on
what you're bringing to the table, he enthuses.
When I left my job at Shell it was clear to me what I
would do at DPR, even if all I spend is one year.
At this point the em cee comes to take him away,
saying: Oga(meaning BIG MAN) this event is meant
for you..it's not a working event. Our informal chat
Cees Loses The Bet On Sahara
ees Uijlenhoed, CEO of the

Nigerian independent Sahara
Energy Fields, is a gallant loser if
there was one. I concede I lost the bet,
the Dutch national admits to the same
reporter who'd expressed pessimism
about Sahara's willingness to commence
field development anywhere in the Niger
Delta basin. Back in January 2011,
Uijlenhoed had remarked: come back in
July 2011, and I will take your money. As
of January 1, 2012, six months after the
bet was won and lost, Sahara still isn't
producing a drop of oil.
On the surface, this would seem very
much in character. Sahara, afterall, gives

the impression that it is sitting on acreage,
unwilling to commit the funds to start the
crucial work of field development, even
on assets that are perceived to be low
hanging fruits. Sahara is operator of
Tsekelewu field, an oil pool straddling a
producing field, which the company has
held for seven years without either reentry, nor new drilling. The company is
also operator of the 870km2 onshore Oil
Prospecting Lease(OPL) 274 which has at
least four undeveloped discoveries.
Teskelewu is one of the 24 marginal fields
awarded to Nigerian independents in
2004. Unlike other companies which
finger funding constraints as reason for
inability to proceed on work programme,
Sahara never complains of being cash
strapped. So, yes, it would be easy to
blame Sahara for lack of urgency, but it's
equally true that, for all of the last six
months, the company has been locked in
u n i t i zat i o n ta l ks w i t h t h e state
hydrocarbon company National
Petroleum Development
Company(NPDC), the operating arm of the
NNPC. The Oki/Oziengbe field straddles
Sahara's OPL 274 and NPDC's Oil Mining
Lease(OML ) 111. Sahara Energy Fields
owns 84% of the field and will be operator
in the event of the agreement.
By Fred Akanni, Editor
ends abruptly. But we'd get a proper interview with

him, soon.
Olorunsola is considered as part of a close circle of
select heads to who the minister- Allison Madueketurns when she needs to solve a policy problem. By
having him named head of DPR, some argue, she's
only formalizing that relationship. The new DPR
helmsman is an advocate of the formation of a
Petroleum Inspectorate in the ministry, which
should, apart from being a regulatory clearing house,
also serve as an intellectual resource centre for the
minister. That provision to transform the DPR into
the Petroleum Inspectorate Commission-is part of
the Petroleum Industry Bill, which had been
presented, then withdrawn, at the National
Assembly in Abuja. Will Olorunsola's appointment
help to get the bill re-presented and passed? It is
doubtful.
As strategic adviser his job was to create and lead a
think-tank that supported development of holistic,
integrated strategies and polices for effectively
managing the Nigerian oil and gas sector, in addition
to general support for the Petroleum Ministry.
Olorunsola is of the view that this earlier stint in the
ministry has prepared him for the current job.
A 1979 Geology graduate from the University of
Ilorin, Olorunsola started his career in the 1980s
with Agip-ENI as a Reservoir and Petrophysical
Engineer and later as Production Geologist,
according to a release posted on the DPR website. In
mid 1990's, he moved over to Shell and served in
different capacities where he handled various
assignments in Lagos, Port-Harcourt and the
Netherlands.
PETROSA: Nokwe Is Back In Petroleum
osizwe Nokwe, DirectorGeneral of the province of

Gauteng in South Africa, will
take charge as the new CEO of
PetroSA, from March 1, 2012
Ms Nokwe brings to the
organisation superb understanding
of the industry coupled with
experience of serving at the highest
echelons of the public service, the
government said in a statement.
The new CEO will be central in
steering PetroSA as it makes its
contribution to Energy Security in the
country.
Her appointment ends the 15 month
long vacancy at the top of the South
African state hydrocarbon company,
a situation which came about with
the sacking of former CEO Sipho
Mkhize in August 2010, following a
diciplinary process.
Two acting CEOs , namely Yekani
Tenza and Nkosemntu Nika have, one
after the other, overseen PetroSA 's
affairs since Mkhize's axing.
Nokwe was the Chief Executive
Officer at Mpumalanga Economic
Growth Agency, before she went
over to Gauteng. She had earlier
spent 14years in the oil industry,
honing
her career
at Engen,
where she
w a s
process
engineer
at Engen
ref in er y ;
project
engineer
a n d
Managing Director at Engen in
Mozambique and in Namibia and
eventually General Manager of
Corporate Affairs at Engen's head
office in Thibault Square in Cape
Town. She left Engen as the
company's General Manager Health,
Safety, Environment and Quality.
Nokwe holds an MSc degree in
petrochemical engineering through
the Moscow Institute of Oil and Gas.I
am grateful for the confidence shown
in me by the PetroSA board and the
Minister of Energy. Together with the
PetroSA team, I look forward to
repaying that confidence by ensuring
that our national oil company realises
its full potential, Nokwe said in a
statement.
15
PETROLEUM PEOPLE
Olorunsola Returns To
PETROLEUM PEOPLE
Angolan Minister Fired For Incompetence
ngola's energy and water minister, Emanuela Vieira Lopes, has

been dismissed by President Jos Eduardo dos Santos as a result of
poor development of the country's electricity sector, according to
state news agency Angop. The president has replaced him with Joao
Batista Borges, secretary of state for energy. The country has invested
significantly in its power sector since 2002 in order to reinstate
infrastructure destroyed as a result of a 27-year long civil war, but the
results have been limited. The president added that the performance of
the country's electricity sector has been particularly disappointing in the
last two years.
Ousted: Ms Lopes(left)
Rolls Royce Man Sits On BP's Board
ndrew Shilston, chief financial officer at

Rolls-Royce Holdings, is joining the
Board of British Petroleum as a nonexecutive director with effect from January 1,
2012.Mr. Shilston has been chief financial
officer of Rolls-Royce Holdings plc since 2002.
Prior to that he was Finance Director at
Enterprise Oil plc from 1993 to 2002. He was a

non-executive director at Cairn Energy plc from
2004 to 2008, and is currently a non-executive
director of Circle Holdings plc. He is retired from
Rolls-Royce Holdings plc at the end of 2011.
Mc Cutcheon Joins Petroceltic Board
ugh McCutcheon has been appointed Non-Executive

Director of Petroceltic International plc the Irish company
that is very active in North Africa, precisely Algeria.
The 58 year old former head of corporate finance at Davy, holds an
honours degree in Economics from Trinity College Dublin. He joined
Davy in 1989 after a successful career in PriceWaterhouse, where he
qualified as a chartered Accountant. A Fellow of the Institute of
Chartered Accountants in Ireland, he has been Head of Corporate
Darrel McKenna Is
Kosmos's COO
osmos Energy has named Darrell

McKenna has been named as Chief
Operating Officer. The former role
President of Hess Australia will be responsible
for the Kosmos' global drilling, development,
and production functions, as well as the
company's' health, environment, and safety
programs, beginning January 3, 2012.
McKenna served as Vice President of multiple
functions at Hess Corporation, including Global
Drilling and Completions, Exploration and
Production Technology, as well as the Africa
Business Unit, before he became President,
Hess Australia. Before joining Hess, McKenna
held multiple roles of increasing responsibility
within the oil and gas industry, including 18
years with Mobil Oil Corporation. McKenna
received a Bachelor of Science degree in
Petroleum Engineering from the Montana
School of Mineral Science and Technology.
16
Finance at Davy since 2001 where he was involved in numerous

privatisations, IPOs, other fund raisings, debt raising and debt
restructuring, public takeover bids as well as private M&A
transactions across a large number of sectors. Throughout this
period he has maintained a continuous focus on and interest in the
natural resources sector and has advised oil and gas companies
including Tullow Oil plc, Dragon Oil plc, Providence Resources plc,
Aminex plc and Petroceltic International plc.
Simon Thompson Is New

Chairman of Tullow Oil
ullow Oil plc has appointed Simon

Thompson as its non-executive
Chairman, with effect from 1 January
2012. Mr Thompson, who joined Tullow as an
independent non-executive Director in May
2011, will succeed Mr Pat Plunkett who, after
11 years in the role, announced earlier this
year his intention to stand down as Chairman
as soon as practicable.
Mr Thompson (52) brings extensive
leadership, management, operating and
financial expertise in the natural resources
sector as well as broad international
experience, particularly in Africa and South
America, Tullow said in a release. Thompson
graduated from University College, Oxford
with a degree in Geology in 1981. After four
years in international banking in the Middle
East he spent 10 years in investment banking,
working for N M Rothschild and S G Warburg,
and joined Minorco SA in 1995. In 1999 he
joined Anglo American in South Africa, after it
merged with Minorco, and held a number of
s e n i o r
positions
including
C h i e f
Executive of
the Base
Metals Division, Chairman of the Exploration
Division, Chairman of the Tarmac Group and
Non Executive Director of AngloGold Ashanti.
Mr Thompson became a member of the
Executive Committee of Anglo American plc
in 2003 and an Executive Director in 2005.
Since leaving Anglo American in 2007, Mr
Thompson has served on a number of boards
and is currently a non-executive Director of
Newmont Mining Corporation (USA), one of
the world's largest gold producers; Sandvik
AB (Sweden), a global engineering and
technology group; and Amec plc (UK), a
provider of engineering, project
management and environmental
consultancy services to the oil and gas,
mining and energy industries.
eginald Chika Stanley, appointed by

the Nigerian President, Goodluck
Jonathan as Executive Secretary of
the Petroleum Products Pricing Regulatory
Agency PPPRA in mid November 2011, is
starting his job, in a manner of speaking, in
the eye of the storm. His first major public
pronouncement was to announce the
formal removal of subsidy on Premium
Motor Spirit (PMS), aka Gasoline, in
accordance with the powers conferred on
the agency by the law establishing it, in
compliance with Section 7 of PPPRA Act,
2004.
In a new year statement(January 1, 2012),
Mr Stanley declared: downstream subsector of the petroleum industry is hereby
deregulated for PMS. Service providers in
the sector are now to procure products and
sell same in accordance with the indicative

benchmark price to be published
forthnightly and posted on the PPPRA
website.
Petroleum products marketers are to note
that no one will be paid subsidy on PMS
discharges after 1st January 2012.
The nation was plunged into a massive strike
a week after the announcement.
While much of the criticism of the subsidy
payout had been leveled against the PPRA,
those who support subsidy removal are
wondering why, in the first place, PPPRA still
needs to announce any indicative price in a
post-regulation era. And there are those
who consider PPPRA as essentially dead with
the cap on prices off.
Until his appointment Stanley was Group
General Manager of the Business
A Change Of Baton At NLNG
hima Jonathan Ibeneche has

handed over the job of chief
executive of the Nigerian Liquefied
Natural Gas (NLNG) Ltd to a safe pair of
hands: Babs Jolayemi Omotowa, in the
words of a statement from the company.
Ibeneche, 60, retires on the 31st of
January 2012
Mr. Ibeneche's service has been
outstanding, and it's a mark of his
generosity that he accepted to serve an
Babs Omotowa (Incoming) additional six months at the behest of the
Board of Directors, the statement adds.
Our new CEO is a brilliant administrator. From his days in Federal
Government College, Ilorin, Kwara State, through University of Ilorin
where he studied Industrial Chemistry and Business Administration
to his brief stint as a chemistry and mathematics teacher in Bishop
Smith College, Ilorin, Babs was a shinning star.
He joined SPDC in 1993 as a management trainee and rose rapidly to
Head, Operations Support, Warri, before proceeding on
international assignment with Shell in United Kingdom, Holland and
Norway, serving variously as Production Asset Manager, Shipping
Manager and Business Improvement Manager.
Babs returned to Nigeria in 2006 as General Manager Supply Chain
for SNEPCo and SPDC and was subsequently appointed a Director of
SPDC in 2008. He distinguished himself with his work on contracting
of goods and services to support production operations, major
projects and services across both JV and
PSC operations. He also led the
contractual processes on the EPC for the
Gbaran Ubie gas project.
Until his current appointment as Chief
Executive Officer of Nigeria LNG Limited,
Babs was Vice President, Health, Safety,
Environment, Infrastructure and Logistics
for Shell companies in Sub-Sahara Africa.
Development Division of the Nigerian

National Petroleum Corporation (NNPC). A
statement from the President Jonathan's
office said of him: In his over 32 years in the
industry, Mr. Stanley has served as
Marketing Manager,Nigerian Liquefied
Natural Gas Limited (NLNG); Executive
Director, Duke Oil Company, UK; Executive
Director (Commercial), PPMC; Managing
Director, PPMC; and Managing Director,
Hyson Limited. He replaced Mr. Goody Chike
Egbuji, who had acted very briefly, after
taking over from Abiodun Ibikunle, who was
forced out in the event of a drawn out media
war with Ifeanyi Uba, Chief Executive of the
petroleum marketing company Capital Oil
and Gas Industries.
ankie Mthembi-Mahanyele will assume

the role of Chairperson of South Africa's
Central Energy Fund (CEF) with effect
from February 2012. Ms Sankie MthembiMahanyele brings with her experience of
having served in the highest echelons of
government as a Minister of Housing.
Ms Mthembi-Mahanyele takes the helm as
Chairperson as the implementation of the new
Companies Act looms large for CEF and its
subsidiaries.
Abdelrahman bin Yazza,
New Head Of Libyan Petroleum
bdelrahman bin
Yazza will head
the Libyan oil and
gas ministry. His name
was among the new
cabinet lineup
announced by Libya's
Bin Yazza
interim prime minister
Abdel Rahim al-Kib in
mid November 2011,
after it was approved by
the ruling National
Transitional Council.
Mr bin Yazza was a former official in ENI, the Italian major.
Chima_Ibeneche (Outgoing)
17
PETROLEUM PEOPLE
Stanley Takes Charge In The Eye Of The Storm
O I L PATC H S A H A R A
MOROCCO
Kosmos Plans To Shoot In Agadir Basin
osmos Energy is planning to acquire 5,000 km2 of

three dimensional (3D) seismic, in three blocks:
Foum Assaka, The Essaouira, Tarhazoute, in Agadir
Basin, offshore Morrocco, in early 2012.
First well is prposed for 2013. The targets are in the
Cretaceous and sub-salt targets
Kosmos says that the Agadir basin is an underexplored salt
basin with a variety of exploration plays, including Kosmos'
core play in the late Cretaceous as well as a new pre-salt
play. The acreage has a proven source rock, apparent good
reservoir potential and abundant structuring. Kosmos is
operating the assets with 37.5% working interest. Partners
include Pathfinder Hydrocarbon Ventures Limited, 37.5%
participating interest and the state owned Office National
des Hydrocarbures et des Mines (ONHYM), hose 25%
participating interest is carried through exploration.
TUNISIA
CGGVeritas To Process Nabeul Data
ooper Energy's recently acquired marine 3D seismic survey over the western
portion of the Nabeul Permit will now be processed by CGGVeritas in
Singapore. It is expected that the data will be available for interpretation by
3Q 2012.
The high resolution 3D seismic is expected to enable the Nabeul Permit Joint Venture
to define and accurately locate a well scheduled to be drilled by 2013. "The
completion of the Nabeul 3D seismic survey is a key step in maturing a range of
prospects in the Nabeul Permit in Tunisia for drilling in 2013.", says David Maxwell,
Managing Director of Cooper Energy
The Nabeul Permit Joint Venture comprises Cooper Energy as Operator with 85% and
Dyas B.V. with 15%. Maxwell says that the 600 km2 full fold 3D data acquisition, also
handled by CGGVeritas was completed on time and within budget ($6.5 million).
The objectives of the 3D survey were to mature the Alpha, Gamma and Up-dip La
Marsa leads in the western portion of the Nabeul Permit adjacent to the Birsa and
Oudna (producing) oilfields. The 3D seismic was successfully acquired using the
CGGVeritas BroadSeis technology, a new innovative solution for high-resolution
marine seismic.
The Nabeul permit is named for the town(above).
ALGERIA
Petroceltic Flows 5MMScf/d In AT -7
etroceltic has flowed issued

4.9 MMscf/d of gas after
fracture stimulation in AT-7,
its appraisal well in the Ain Tsilla
Structure. The company is also
excited by the improved reservoir
quality in the AT-9 well. Initial
petrophysical evaluation indicates
that (the reservoir in AT-9) is the
best quality reservoir encountered
in any of the Ain Tsila wells to-date.
The AT-9 extends the presence of
this interval of high quality sand,
successfully tested in AT-1 and AT8, further south into the centre of
the field.
AT-7 and AT-9 are located in the
Isarene permit (Blocks 228 & 229a)
in south eastern Algeria. Petroceltic
18
operates the permit with a

56.625% interest, Sonatrach holds
a 25% interest, and Enel holds an
18.375% interest, pending Algerian
authorities approval.
AT-7..
The AT-7 well, a vertical well, was
drilled approximately 12 km south
of the AT-3 well and 15 km west of
the AT-6 well to appraise the south
western extension of the field. The
well was hydraulically fractured
and successfully produced at a gas
rate of 4.9 MMscf/d on a 48/64"
choke with a well head pressure of
470 psig. Well testing operations
were continuing on a series of
different choke sizes to assist in
characterizing the reservoir in this
southerly part of the field.

AT-9..
The AT-9 well commenced drilling
on September 12 and reached its
total depth of 2494m on October
24. A near horizontal section of
415m was successfully drilled
entirely within the upper part of
the reservoir. Logging results
indicate an uppermost interval of
57m along hole (7.5m vertical
thickness) with an average net
porosity of 10.6% and a maximum
porosity value of 14.5%. There are
good indications of natural
fractures in the remainder of the
horizontal section, the company
says in a release. The main
objective of the AT-9 well is to
assess the productivity associated

with a structural ("pop-up") feature
of a different style to those already
tested at AT-5 and AT-8, and in an
area between two known
productive wells (AT-1 and AT-2).
AT-9 is a horizontal appraisal well
located near the centre of the Ain
Tsila field, 4.3km north east of the
AT-2 appraisal well and 7.8km
south east of the AT-1 discovery
well. It is the 6th and final well in
the current appraisal programme.
The rig will be released from
contract on completion of this well.
Testing with the rigless testing unit
will commence during November
after completion of testing at the
AT-7 well.
Brazillians Get Kicking On Zeta
etrobras was drilling in Zeta 1, located in 1,448m of water in Block 5, off Tanzania as of the time of our going to press. The newfield
wildcat is being drilled with the drillship Ocean Rig Poseidon. Petrobras expects to drill a second well on another acreage, Block 6,
after Zeta 1. The current well will have Lower Cretaceous, Upper Cretaceous and Tertiary sands as objectives.
Orca Spuds Development Well in Songo Songo
anadian independent, Orca Exploration, has spudded the

"SSA" development well with the rig Sakson Rig PR5. It also
proposes to complete remedial work on SS-10. The two are
together, a first part of the commitment to increased gas production
in Tanzania to improve electricity supply. Orca is working on
increasing its gas production capacity from 113 million standard
cubic feet per day to over 250 million standard cubic feet per day in
the coming months. The Company is in discussions to source a jackup rig to drill the Songo Songo West exploration prospect. The target
is to spud this exploration well during Q2 2012. The Government of
Tanzania has indicated that it will install a new coastal gas pipeline
system financed by funds from the Chinese Exim Bank. The first phase
of this project is expected to be the looping of the existing 200
kilometer onshore pipeline from Songo Songo that will enable 200
MMcf/d to be transported to several new power plants that are
currently planned for the Dar es Salaam area. Orca says it is
committed to invest the capital in natural gas exploration and
development to ensure that it can deliver the 200 MMcf/d from its
Songo Songo licence acreage in parallel with the Government's
announced infrastructure developments.
EQUATORIAL GUINEA Noble Makes New Find In Douala Basin
oble Energy has encountered eight metres Net Oil in high-quality Upper Oligocene sands at the Carla prospect in the Douala Basin
Block O. The discovery is believed to have been made during the deepening of a development well on the Alen field. The Carla well
was drilled in 580m of water to a total depth of approximately 3,500m. The company estimates the discovered gross resources at
between 35 and 100 MMBOE of which 80% are liquids. The reservoir in the Alen gas and condensate field consists of Miocene sands. Noble
Energy is the technical operator with a 45% working interest.
KENYA
Tullow Will Test The Miocene In The E A Rift
ullow Oil plans to spud the Ngamia well, the

first well in Kenya's Block 10BB in January,
2012. The probe will test the oil potential in
Miocene age sandstones within a three way dip
closure against the West Lokichar rift fault. Ngamia
is directly analogous to successful oil
accumulations drilled by Tullow and partners early
in the exploration efforts in the Lake Albert graben
of Uganda.
BG Kickstarts Kenyan Campaign
G Group, the UK major, has commenced

acquisition of a large swathe of three
dimensional (3D) seismic data offshore
Kenya. BG is shooting 2,200 sq km over six leads
in the eastern part of
Blocks10A and L-10B in the Lamu Basin. Some
970km of two dimensional (2D) seismic data
will be acquired in the western part of the
acreage to cover, among others, a Miocene reef
trend.
BG is operating L-10A with 40% and has Cove
Energy 25%, Premier Oil 20% Pan Continental

Oil 15% as partners. The company operates L10B with 45% with partners Premier Oil 25%,
Cove Energy 15% and Pan Continental Oil 15%.
The Joint Venture has been pursuing a fast
track exploration programme and BG Group
hasalready mapped ten strong leads and five
diverse play types using existing seismic data.
Most of the leads will be covered by the new
seismic surveying.
Syracuse Helps
Vanoil To Study Lake Kivu
RWANDA
he Syracuse University has received permission from the Rwandan

Ministry of Natural Resources to commence a 2D Seismic study of Lake
Kivu on behalf of Vanoil. This programme will assist in identifying the
areas of greatest hydrocarbon prospectivity in the Lake Kivu Graben.
Additionally, the 2D Seismic study is to demonstrate the similarities between
Lake Albert and Lake Kivu and to establish drill targets in and around Lake Kivu
on Vanoil's concession.
Vanoil's President Dal Brynelsen, says the company is pleased to secure the
technical expertise of the Syracuse University who have provided seismic
data for oil and gas discoveries on Lake Albert and recent exploration
activities on Lake Turkana as well for Vanoil on Lake Kivu in 2010."
19
OIL PATCH SUBSAHARA
TANZANIA
OIL PATCH SUBSAHARA
MOZAMBIQUE
More Than A Hat Trick
he third well on the Barquentine structure has delivered more than a hat trick for operator Anadarko and the petroleum province named
Mozambique. The 662 feet (net) of natural gas pay encountered in Barquentine-3 expands the estimated recoverable resource range to 15 to more
than 30-trillion cubic feet (Tcf) of natural gas."The positive results of each appraisal well that we have drilled and analyzed have continued to
increase our estimate of recoverable resources and natural gas in place on our block," Anadarko CE Jim Hackett said in a statement.
The well is in an exploration block known as Offshore Area 1, close to the border with Tanzania. Anadarko is the operator of the block. Co-owners include
a unit of Japan's Mitsui & Co Ltd and Dublin-based Cove Energy Plc.
GABON
Bowleven Leaves Sapele 3, For Later
owleven has suspended Sapele 3 exploration for later re-entry,

testing and potential use as a development well. Sapele 3 is located in
MLHP-5 block, Etinde permit . It intersected eight(8) metres of net
hydrocarbon pay in deeper reservoirs, in addition to the 11 metres of net pay
within Deep Omicron interval previously announced.
The company says that Reservoir package in Paleocene Epsilon Complex is in
same gross stratigraphic interval encountered in Sapele-1. These results
indicate a significant extension of Epsilon play fairway with potential for
CONGO BRAZAVILLE
Panoro Wraps Up At Kundji
orway based Panoro Energy has completed the Kundji

202 (KUN-202) appraisal/development well in the
Mengo-Kundji-Bindi onshore permit in Congo Brazaville.
The well encountered the top reservoir of the Kundji field on
prognosis at 1,875m depth (1,280m TVD). KUN-202 was drilled to
a TD of 2,366m with the SNPC-Rig-1; the reservoir was cored
over approximately 36m and a 7 casing was installed. The logs
confirm that the reservoir is oil-saturated over a gross vertical
interval of 129m. The state oil company Socit Nationale des
Ptroles du Congo (SNPC) subsequently spudded the third well in
the programme.
GHANA
Soco Gets Onto Makouala

London listed Soco Plc has spudded the Makouala Marine 1 new-field wildcat in
the Marine XIV permit with the Ensco 5003 semi-submersible rig. The well will
target the pre-salt Sendji Formation in the Makouala structure, with an estimated
resource potential of 50 MMbo. Located 5.6km north of Likoufou Marine 1 oil
discovery and 44 southwest of Pointe Noire, Makouala Marine 1 has a planned TD
of 2,700m. Soco is operator with 29.4%. Partners include Lundin Petroleum
(21.55%), Raffia Oil (21.55%), SNPC (15%), PA Resources Congo (12.5%).
Kosmos Extends The Pool In Teak
osmos has confirmed a northern (updip) stratigraphic extension

of the Teak discovery with the Teak-3A well on the West Cape
Three Points (WCTP) Block. The well encountered
approximately 35m of hydrocarbons in multiple good quality
reservoirs, i.e. 13m of 36-39 API oil pay and 22m of gas-condensate
COTE D'IVOIRE
pay. The hydrocarbon-bearing reservoirs are of Campanian and

Turonian age, similar to those found in the discovery well. The Teak-4
appraisal well is scheduled to begin drilling late in the first quarter of
2012.
Vanco Nets A Second In W.A.
anco has made its second discovery in the

deepwater West African transform
margin. The Independance-1X exploration
well, drilled on Block CI-401, off Cote d'Ivoire,
comes nearly two years after the success of Dzata1 exploration well, off Ghana, was announced.
Vanco says that Independance penetrated the
targeted objective and found a series of goodquality sandstones containing light oil. Full
analysis of well results, including wireline logs,
reservoir pressures and fluid samples, confirms
that the well penetrated 8 meters (26 feet) of
hydrocarbon pay in good-quality Turonian-aged
sand package. Hydrocarbon samples recovered
from the Independance-1X well indicate 40
20
better developed sands updip.

The well reached a final TD of 4,480m after the deepening announced on 1
November 2011,in the Paleocene Epsilon Complex where the 8m of net pay
were recorded. Logs suggest that the hydrocarbon is oil. Due to high
temperature in the Epsilon Complex, the interval could not be tested with
the available equipment. The testing of the Omicron and Epsilon intervals
should be undertaken in the 2012-2013 drilling programme.
degrees API gravity. The well will be temporarily

abandoned at a total depth of 4,132 meters.
The Independance-1X was drilled in a water depth
of 1,689 meters, approximately 93 kilometers (58
miles) south southeast of Abidjan, and represents
one of the deepest water exploration wells drilled
to date in the eastern offshore Ivorian Basin. The
well was drilled using the Ocean Rig Olympia
(UDW drillship) - a dynamically positioned sixth
generation deepwater drillship.
The Independance-1X is the second exploration
well to be drilled in the 619 sq km Block CI-401,
located in water depths ranging from 950 to 2,100
meters. Drilling is currently in progress on one
more deepwater exploration well in Block CI-401,
the Albacore-1X, located 33 kilometers (21 miles)

to the east of Independance-1X on a similar large
Turonian deepwater slope channel stratigraphic
trap.
On September 30, 2005, the Government of the
Republic of Cte d'Ivoire signed a Production
Sharing Contract with Vanco Cte d'Ivoire Ltd
covering Block CI-401. LUKOIL Overseas Cte
d'Ivoire Ltd joined the block in 2007. Vanco
(Operator) holds a 28.34% participating interest
with LUKOIL holding a 56.66%. PETROCI Holding,
the state oil company, holds a 5% participating
interest together with a 10% carried.
OML 136/CONOIL & TOTAL

Gas in OML 136 will reach market in 2017,
which is when the Brass LNG project is
scheduled to come on stream. A crucial
reason for farming out 40% of this gas
prone acreage TOTAL is to ride on the back of
the French giant to monetize the gas asset.
PAN OCEAN
Pan Ocean has completed Ologbo 14, a gas
well, in OML 98. The JV commenced supply
of gas to the electricity grid. The release of
50million standard cubic feet of gas from
the companys Ovade-Ogharefe gas
processing plant, through the Nigerian Gas
Company(NGC), kicked off the
implementation of a framework agreement
signed with the state power utility Power
Holding Company of Nigeria
NEW DEVELOPMENT
OPL 2007 CONOIL

is scouting for a 2-18 month drilling
sequence in OPLs 2007, OML 103 and the
swamp part of OML 59.
OML 26/AFREN
First Hydrocarbon, the Nigerian subsidiary
of UK listed Afren has signed a JOA with
the state hydrocarbon company NPDC
which allows the latter to operate the Oil
Mining Lease OML 26.
Afren purchased the 45% stakes
belonging to Shell, Agip and TOTAL on the
acreage, for a total of $147.5MM, but the
NPDC, which took over the 55% belonging
to government, insists it has to operate.
OPL 275/PAN OCEAN

Pan Ocean has completed acquisition of
545sq km of three dimensional(3D)
seismic data over OPL 275. The 156sq
km previously available data constituted
roughly one third of the acreage. The
additional 545 sq km completes a carpet
coverage of the lease.
www
OPL 290/ CONOIL

Conoil is evaluating data,
preparatory to drilling in OPL
OPL 119/NPDC
NPDC has encountered two new pay
zones in Okono Field.
OML 114/MONIPULO
Allied Petroleum has bought PetroSAs 40% interest in the
Monipulo operated OML 114. The deal is worth $50Million.
Prodiction from the Effiat/Abana field has been on the decline
since it averaged 18,500BOPD in 2004, around rhe time of
PetroSAs buy out of Brass Petro. Allieds payment of the $50
million is likely to be in the form of a swap.
OPL 281/TRANSCORP/SACOIL/EER
SacOil reported the signing of a joint venture agreement with the
Nigerian independent Transcorp to develop the oil prospecting
lease OPL 281 in alliance with Energy Equity Resources (EER).
The lease is located onshore in the western delta region of Nigeria
and is adjacent to the widely publicised Shell divestment block
OML 42.
Conoil Dumps OML 30

Femi Otedola Moves In On OML 30
Nigerian petroleum marketer, Femi Otedola is working with the
Israeli company Beny Steinmetz Group(BSG) and two Nigerian
fronts: All Grace and Green Energy, to acquire Shell/TOTAL/Eni's
45% stake in the Oil Mining lease(OML) 30, which is up for sale.
Conoil had won the bid for the three majors' working interest in
the acreage, valued at $1.3Billion, but walked out when the
government insisted it would not be allowed to be operator.
Conoil has operated three acreages in the country for a total of
20 years. Mr Otedola and his friends don't have any track record
as operators.
Ebok field commenced production at

roughly 17,000 Barrels of oil per day
(BOPD) in the last week of May 2011.
The UK listed Afren, often perceived as
Nigerian owned, is the operator.
EBOK/ AFREN
OML115/AFREN &
ORIENTAL
Buoyed by successes of Ebok
and Okwok marginal fields
in eastern OML 67, Afren
has farmed in into the
adjacent acreage OML 115,
OPLs 276 & 283/NEWCROSS

Newcreoss has completed 200 sq/km of 3D seismic
Copyright 2012,
EER Plans A Hub Around Aje Gas Field

Energy Equity Resources(EER)
es(EER) is mulling a gas
gathering and export hub, offshore Badagry, in the
event of its winning the technical operatorship of the
Aje gas field. EER currently holds 10% working
interest in the field and wants Chevron's 18%, which
was offered in a data room opening. Chevron is
evaluating the terms of EER's financial proposition.
report
OGBELLE/NIGER DELTA EXPLORATION & PRODUCTION

Daily output from the field is around 6,500BOPD. NDEP will soon
commission both the topping plant (producing 120,000 litres of diesel
every day) as well as the 65MMsf/d gas processing plant.
OMLs 4, 38 &41/SEPLAT/NPDC
Seplat , currently producing 37,000 BOPD will be drilling two
production wells on Ovhor field, carrying out five workovers on
Sapele field and tieing the two Ovhor wells into existing
facilities. The company targets operated production of
135,000BOPD by 2015. Three appraisal wells are scheduled for
drilling in Orogho, Okporhuru and Okoporo fields, all of which
are undeveloped discoveries.
STATUS QUO ANTE
OML 59/ CONOIL

Conoil encountered 86.2metres Net Oil sands in six
sands in Otuo South(OTS)-2 Redrill, in OML 59. The
thickest pay is the deepest, at 8777metresTVD ss(top) .
OML 98/ PAN OCEAN

Pan Ocean has awarded a contract to Fenog, for bids for the
construction of 65km crude oil pipeline from Amukpe to
Escravos. This will tie in to its existing pipeline running from
Ogharefe field to Amukpe. The award is the clearest statement
yet that the company is changing its crude oil evacuation point
from Shells forcados to Chevrons Escravos terminal. Incessant
attacks on Shells Trans Forcados pipeline have forced Pan
Ocean out of crude oil supply business now and again.
OPL 233/NigDEL
SacOil reported that the JV between it and Energy Equity Resources Ltd.
(EER) has farmed into OPL 233, held by NigDEL. Under the agreement
SacOil acquires a 20% interest in the acreage, where production is expected
to begin during 2013 at a rate of 10,000 BOPD
OML 109/ATLAS PETROLEUM

Atlas Petroleum International may increase production of
Ejulebe field to 1000+BOPD, following completion of the
Ejulebe 8 appraisal/development well in OML 109 as an oil
producer. The deviated hole was drilled in the southern
part of the Ejulebe field, targeting the Q sand series which
had been intersected by an earlier well. The field is
currently producing about 450 BOPD from two wells.
SAPETRO
SAPETRO In Benin Republic
SAPETRO, will take final investment decision on re-development of Seme Field in
shallow water off Benin Republic in 4th Qtr 2011. Planned programme includes four
wells producing to production facilities at the site of existing tank farm. The field has
very little gas. Remaining reserves are about 10MM barrels of oil.
SAPETRO In Juan de Nova(JDN), Mozambican Channel
SAPETRO bought all of Roc Oils 75% interest in JDN in July, 2011. Plans an extensive
2D seismic campaign across the 52,000km2 block by 1st Qtr 2012.
ABURA FIELD/NPDC
NPDC has acquired 67km2 of a planned 250 km2 of 3D seismic
data over Abura field. Operations resumed in November 2010
after a month of flooding recess.
OML 110/CAVENDISH
The Obe field is currently shut
down. Last technical operator,
Transfigura, walked out in 2007.
OML 103/CONOIL
Conoil Producing has fired the commissioning
2
shots, in respect of acquisition of 351 km three
dimensional (3D) 60fold seismic data in OML
103. Contractor is CNPC.
OPL 274/ SAHARA

500 sq km 3D underway.
Sahara Energy fields, the upstream subsidiary of Sahara holdings, has
commenced acquisition of 500 km2 of three dimensional (3D) seismic
data on the Oki/Oziengbe field. The field is the subject of unitization
discussion between Sahara and NPDC, the operating arm of the state
hydrocarbon company NNPC. Sahara holds 84% of the field to NPDC's
16%.
UPDATE ICONS:
NIGERIAN INDEPENDENTS: UPSTREAM ACTIVITY MAP
Vol 13, No 1, December2011/January, 2012
AFRICA IN BUSINESS
report
I N
B U S I N E S S
How China Lost The Six Billion
Segun Adeniyi
n the sidelines of the 33rd G8 summit in

Germany in June 2007, Vladimir Putin
had a brief chat with Umar Musa
Yar'Adua. The Russian president bluntly told his
Nigerian counterpart that Nigerian officials
were denying a level playing field to Gazprom,
which was having difficulties gaining entrance
into the nation's oil and gas industry.
Putin told Mr Yar'adua he had information that
Nigerian government officials, in collaboration
with Shell, were deliberately making it
impossible for Russian and Chinese lOCs to
operate in the country.
This was a serious allegation that could not be
taken lightly.
Upon return from the summit, President
Yar'adua directed Tanimu Yakubu, his economic
adviser, to monitor and provide him with
feedback on (State Hydrocarbon Company)
NNPC's proposed partnership with Gazprom
until appropriate protocols were signed. He
detailed Emmanuel Egbogah, his strategic
adviser on petroleum, with the responsibility of
assessing the Chinese interest. The president
felt that Nigeria needed the competition
between the pre-existing lOCs, of which Shell
was the primus inter pares, and the Chinese
and Russian lOCs then prospecting Nigeria. His
reasons were that if the new global players
were allowed to participate in fresh bid rounds,
The last offer from the Chinese was for

30 per cent equity interest in the NNPCMPN (Mobil Producing Nigeria) Joint
Venture, with a bid of $4.85 billion, since MPN
had paid $600 million for 30 percent and NNPC
was expected to pay $900 million for 40
percent. They also offered a bid for 30 percent
equity interest in the NNPC-SPDC Joint Venture,
for which they were prepared to pay $14.715
billion, with SPDC holding 30 percent
and NNPC 40 percent
22
especially on long term leases held by Shell that

were about to expire, the IOCs would be
compelled to up their bids. While he never
contemplated replacing western IOCs with
Russian and Chinese competitors, he believed
that the new entrants could be used as a bait to
extract value and concessions from the
reluctant western lOCs on the many fronts on
which he thought they could do better for the
nation.
The story of the Chinese interest in the oil and
gas sector began in November 2007 when a
Chinese consortium, led by CNOOC Africa Ltd.
made a proposal to the president, expressing
its desire to acquire a large number of oil and
gas assets estimated to contain six billion
barrels of oil reserves. With a proposed offer of
$50 billion in what they described as
'alternative funding for infrastructural
development in Nigeria', it was very difficult to
resist.
To the president, who was intent on bridging
Nigeria's infrastructural gap, this was a huge
sum that could help, especially in developing
the gas sector, which held huge prospect for the
power and the transport sectors. It was,
however, not until he returned from his state
visit to China in February 2008 that he directed
Rilwan Lukman to explore the idea proposed by
the Chinese consortium.
Lukman would later constitute a committee to
examine the Chinese proposal when he
assumed the office of petroleum minister. That
committee was chaired by Egbogah. Other
members included Mohammed Ibrahim, from
the office of the minister of petroleum; Tim
Okon from the office of the Group Managing
Director(GMD) of the state hydrocarbon
company NNPC; M. K. Amate, director of
Planning and Statistics, office of the permanent
secretary, Department of Petroleum
Resources; and Abiodun Ibikunle of the
Department of Petroleum Resources. Others
were Victor Briggs, National Petroleum
Investment Services (NAPIMS), and. Grace
Taiga, legal director, Ministry of Petroleum
Resources.
The mandate of the committee, as spelt out by
Lukman, included confirming and ascertaining
the availability of uncommitted reserves
between two to three billion barrels and
undertaking negotiations with the Chinese
consortium made up of CNOOC Africa Ltd.,
Sinohydro Corporation and China State
Construction Company over possible sale.
'They were also to determine the appropriate
legal and commercial framework for this
transaction if it was found to be worthy of
consideration. In the first proposal made to
government by the Sunrise Consortium
chairman, Mr. Lap Yen Young, the company was
ready to pay $25 billion for the six billion oil

reserves after which it would further invest
another $25 billion in the execution of
economically viable infrastructural projects in
Nigeria.
Some of the projects identified by the company
included the Mambilla and Zungeru
hydropower projects; 300,000 barrel-per- day
export refinery in Lagos; 100,000 barrelperday refinery in Calabar and Katsina;
construction of an 800,000 metric ton-per- day
compound fertilizer in Sokoto; concession and
construction of five super highways across the
country to include Abuja to Kano, Lagos to
Badagry; and coastal highways from Calabar to
Lagos and Maiduguri to Kebbi.
They also proposed the execution of the
Nigerian gas master plan with $3 billion
provision for gas gathering as well as the LagosKano rail project. These were enticing
propositions to the president.
The identified oil fields were the Oil Mining
Leases(OMLs) 67, 68, and 70, (operated by
ExxonMobil) for which they offered farm-in
fees of $5 per barrel for three billion barrels; $2
per barrel for 49 percent interest in OMLs 11
and 13 (operated by Shell) and $3 per barrel for
49 percent in OMLs 71, 72, 74, 77, 79,(operated
by Shell); OMLs 83, 85, 86, 88, 90, 91,
95(operated by Chevron), as well as OMLs 116,
118, 127, 133, 140, and 326, some of which are
deepwater leases containing huge discoveries.
At a time when the oil companies were already
kicking against the Petroleum Industry Bill, it
was evident they took a lot of interest in the
negotiations with the Chinese consortium,
especially with regard to the availability of the
identified fields, some of which were then
under litigation.
The first task undertaken by the government
was to ascertain the volume of oil and gas in the
reserves under consideration. The NNPC data
and records revealed that they contained about
11.562 billion barrels of oil and 1.082 billion
barrels of condensate, which meant that the
offer made by the Chinese consortium would
then make it technically an offer of $1.8 per
barrel of oil equivalent. Of course, the Chinese
negotiators kept dangling the carrot of their
investible funds in infrastructural projects,
which, given the situation in the country, was
rather tempting. But with negotiations in the
hands of technical people and not politicians,
the Chinese did not make any headway in that
direction as the Egbogah committee decided
on examining the offer using market
benchmarks.
To the government, the absurdity of this
proposition is self- evident: Whereas the
consortium calculated the volumes in the oil
fields it was bidding for as six billion barrels of
because of the pledged investment in not hide its displeasure about the possibility of
infrastructure, yet he believed that given the the involvement of the Chinese in the Nigerian
technical intricacies of the oil industry, the oil industry. Coming after a series of meetings
negotiations were better handled by with the Russian gas company, Gazprom, there
professionals. He was also not interested in any was a feeling that Nigeria 'was going the wrong
under-the-table party 'donation' that would road'.
compromise him and effectively shortchange At an international session, a member of the
the nation.
United States Congress had accosted the
Given that Lukman had from the outset been foreign affairs minister, Chief Ojo Maduekwe,
somewhat disinterested, he drove a hard asking in typical American fashion, Hey, why
bargain, and with the president refusing to take are you guys tending towards China?
the negotiation away from his ministry, the
Maduekwe replied rather jocularly, To make
Chinese offer looked every inch a doomed
America jealous.
venture. By September 2009, the federal
Laughing, the congressman replied, You bet it
government had concluded that it was better
is working!
to renew the lease agreements with the
In spite of the foregoing hearty exchange, the
previous operators who were then requested
fact
about all
to make certain payments. With that, it
the
dealings
became obvious to the Chinese that they were
with
China,
losing out and, eager to turn the situation
which
never
around, they decided to give the deal another
really
worked
shot.
Unfortunately, by the time they came round to outeither in
making a fresh offer to the government, the the oil and gas
president was already on his sick bed in Saudi industry or in
Arabia. The last offer from the Chinese was for the transport
30 per cent equity interest in the NNPC-MPN sectorremai
(Mobil Producing Nigeria) Joint Venture, with a ned that the
bid of $4.85 billion, since MPN had paid $600 president had
million for 30 percent and NNPC was expected not acted with
to pay $900 million for 40 percent. They also the intent to
offered a bid for 30 percent equity interest in rile America,
the NNPC-SPDC Joint Venture, for which they f o r t h a t
were prepared to pay $14.715 billion, with m a t t e r, t o
SPDC holding 30 percent and NNPC 40 percent. p r o v o k e
The last was for 30 percent equity interest in d i p l o m a t i c
the NNPC-CNL (Chevron Nigeria Limited) Joint jealousy. He
Venture, for which they offered $2.25 billion, w a s a l s o
with CNL holding 30 percent and NNPC 40 committed to
percent. For the uncommitted OML 139, they
the passage
offered $125 million.
and subsequent implementation of the PIB
In addition to these proposed cash payments,
notwithstanding the opposition from the JOCs.
they also offered to finance 50 per cent of the
What was important to President Yar'Adua was
cash call cost for exploration and production on
not so much how other -ountries felt about the
behalf of NNPC in the joint venture; finance 70
per cent ($8 billion) of the cost of the choices Nigeria was making as it was about
whether those choices were in the country's
construction of two new 300,000barrel-per-day refineries in Lagos
and Akwa Ibom on behalf of NNPC
The identified oil fields were the Oil Mining
and finance 70 per cent ($7 billion)
Leases(OMLs) 67, 68, and 70, (operated by
of the cost of constructing 4000MW
ExxonMobil) for which they offered farm-in fees
and 1000MW of hydropower in
Mambilla and Zungeru.
of $5 per barrel for three billion barrels; $2 per barrel
Even if there were merits in these
for 49 percent interest in OMLs 11 and 13 (operated by
proposals, the Chinese had left it
Shell) and $3 per barrel for 49 percent in OMLs 71, 72,
too late since by then the president
was in a Saudi Arabia hospital
74, 77, 79,(operated by Shell); OMLs 83, 85, 86, 88, 90,
battling for his life. 'The likely
91, 95(operated by Chevron), as well as OMLs 116,
outcome of that offer in the event
that the Chinese had made them
118, 127, 133, 140, and 326, some of which are
much earlier can only now be a
deepwater leases containing huge discoveries. At a
matter for conjecture. But what was
time when the oil companies were already kicking
never in doubt was that if the offer
was right, the president was ready
against the Petroleum Industry Bill, it was evident they
to do a deal with the Chinese, even
took a lot of interest in the negotiations with
though this had political
the Chinese consortium.
implications.
The United States government did
AFRICA IN BUSINESS
consortium for their valuation was the element

of risk associated with the transaction given the
prevailing volatility of the Niger Delta. But the
government was of the view that the reward far
outweighed the risk.
Even while tempted by the offer of developing
critical infrastructureone of the main items in
Yar'Adua's sevenpoint agendathe
considered wisdom within government was
that the Chinese offer was far too low, and from
the outset. Lukman was dismissive of their
proposal. But the president wanted it explored
to its limits. On three different occasions, the
Chinese indeed improved on their offer, but
they were nonetheless rejected because the
negotiating team was directed that there be no
trade-offs on infrastructure and downstream
commitments.
Four offers later from the Chinese consortium,
the answer remained the same: no deal. The
government now made a counter offer shaped
by the fact that prevailing market conditions
around the world indicated that major resource
holders were not selling equity barrels. The
reasoning was that at a time when the
government was working towards
Incorporated Joint Ventures under the PIB, the
implication of selling equity barrels would be
that they could confer the full potential
reserves in a block without being constrained
by price. This, it was felt, would not be in the
interest of Nigeria. After weighing the Chinese
offer against the price per barrel being paid by
other operators in some OMLs, the government
came to the conclusion that, even with all the
enticing promises about investible funds, the
Chinese proposition was out of the question.
Interestingly, while these negotiations were
ongoing, it was obvious that the local
promoters of the Chinese deal did not want to
leave matters in the hands of the professionals.
Political lobbyists of different hues were
deployed to meet with the president on the
need to allow the transaction to work. 'There
was also pressure on Lukman; minister of state
for petroleum, Odein Ajumogobia; and
Egbogah. The carrot was always the 'investible
funds for infrastructure', especially in
refineries, since Labour had made the building
of local refineries a precondition for supporting
the deregulation of the downstream sector of
the petroleum industry.
There were several other approaches made to
the president by politicians and top
government officials who spoke of a possible
political donation 'running into hundreds of
millions of dollars'. I could not, however,
ascertain whether these emissaries were
working at the behest of the consortium or
whether they were just political undertakers
who were working alone, but there was
enormous pressure on the president to take
the negotiation away from the technocrats and
domicile it in the hands of a team comprising
trusted' politicians and officials, including
those known to have the president's ears. He
rebuffed all the entreaties.
There is no doubt that the president was
interested in working with the Chinese
23
AFRICA IN BUSINESS/KIOSK
Calling, 2011, video still, by Stuart Bird, is one of the works on view at the Goodman Gallery in Cape Town, South Africa, running 19 January 25 February 2012
South Sudan Is The Next Money Vending Machine

A group of twenty Dutch companies visited Juba in December 2011, looking for business opportunities.
In the South Sudanese capital they bumped into a 50-member strong delegation from Japan, who was
there for exactly the same purpose. Meanwhile, the Indians are on their way...
By Arne Doornebal, Juba
t has already been dubbed 'the scramble

for South Sudan.' Investors from all over
the world are flocking into the threemonth old country, looking for investment
opportunities in several sectors of the
economy of the 193rd member of the
United Nations. More than twenty Dutch
companies visited Juba this week in a
mission organized by the NetherlandsAfrican Business Council (NABC).
South Sudan is like a clean sheet for
investors, says Anne Itto, a high profile
politician and farmer from South Sudan.
We have 640 thousand square kilometers
of land which is mostly arable. The
agricultural sector can flourish here.
Changing the mentality
Agriculture, energy, transport and
construction are the main areas of interest
of the Dutch trade mission. This is a very
important moment for Dutch companies to
invest in South Sudan, says former Dutch
Minister for Development Cooperation
Agnes van Ardenne, who leads the Dutch
delegation. After twenty years of war this
24
country needs to develop its economy. It is

time for us to change the mentality of
development aid to a business approach.
Matchmaking instead of PowerPoint
presentations
While the Dutch delegation was in a
meeting with South Sudanese businessmen
in one of Juba's hotels, the room next door
was reserved for a Japanese delegation.
And a trade mission from India is expected
in Juba shortly. Since independence, many
people came to South Sudan for business.
But I am not afraid that we will be looted;
our government will see to it that that won't
happen, says Anne Itto.
In our approach we like to work together
with the local business people, says Van
Ardenne, who knows South Sudan well
from her ministerial days. We prefer
'matchmaking events' over giving glossy
Po we r Po i nt p re s e ntat i o n s to t h e
government, although we acknowledge
that they are crucial in setting the business
climate.
Virgin for investors

Almost all fruit and vegetables in Juba are
being imported from Uganda, says Ed
Swier of the Dutch seed company Bakker
Brothers, while inspecting Juba's Konyo
Konyo market, where most traders are
Ugandans. Swier sees a good opportunity
here to sell seeds to local farmers. I expect
to start working with our local partner and
bring our seeds on the market here very
soon, Swier says.
Delegation leader Van Ardenne has another
success story to report - a renewable energy
project: Two of our companies have found
a local partner who was looking for the
suitable knowledge. Together they will set
up a small facility.
Big Dutch companies trading in cars, lorries
and buses also take part in the trade
mission. South Sudan seems to be
interested in any kind of business, since
many areas of the economy need to be
developed. In the words of the South
Sudanese Agriculture Minister Betty Achan:
South Sudan is a virgin for investors.
JANUARY, 2012
23
OPINION
2011 - Motion Without Movement
011 has been a year of fluctuating

fortunes for the continent's major
hydrocarbon economies. Several
little things happened here and there but
taken together, the picture that emerges from
Angola to Algeria, Egypt, Equatorial Guinea,
Ghana, Libya and Nigeria is one of a
pendulum, swinging intermittently from
positive to negative. That indeed is the story
of the African oil and gas province. There was
hardly any country that was on top of her
game. Several countries struggled with a
combination of policy and regulatory issues.
Even for those, like Angola and Ghana, that
had a relatively good year, the picture is not
completely rosy.
Oil prices were relatively high, in historical
terms, throughout the year. The uprising in
the Middle East, especially Libya, helped
create a supply gap that contributed to a rise
in the price of crude in the international oil
market. By March, the price had gone up to
$104 per barrel and to $114 per barrel by
April. The cessation of hostilities in Libya and
resumption of production helped in
restocking the global market and effecting a
slight downward slide in prices.
26
While Nigeria enacted the Sovereign Wealth

Fund law, the politicians continued to
demonstrate a total lack of respect for
national planning and economic discipline.
There was as yet no clue to the 2012 budget
or national oil and gas aspirations as at the
second week of December 2011.
Ghana has had a relatively active year. In
January, Tullow Oil and its partners lifted the
country's first cargo of crude oil from the
Jubilee field. By the middle of the year, Ghana
turned its attention to gas. It started
discussions with partners for a Gas
Infrastructure Project to transport gas from
the Jubilee Field Floating Production Storage
and Offloading Gas Export termination point
to a gas processing plant at Domunli in the
Western Region of Ghana.
Within the year, Ghana also announced new
developments and new discoveries.
Anadarko announced a discovery at the Teak1 exploration well; Hess announced a
discovery in the Deepwater Tano / Cape Three
Points license, offshore Ghana; Eni as well as
Tullow Oil, among others announced new
discoveries. But Ghana is a small and new
player with limited proven reserves.
Egypt's story
is somewhat
heartwarmi
ng. This is
ironic given
the uprising
i n
t h e
country at
t
h
e
beginning of
the year. The
hostilities
By
did not
Adedayo Ojo
significantly
a ffe c t t h e
country's oil infrastructure. Although there
was a diplomatic row over the supply of gas to
Israel at the beginning of the year, the oil and
gas industry has been rather stable. In
November, Egyptian Petroleum Minister
Abdullah Ghorab reiterated the importance
of maintaining oil production and attracting
more investments as well as signing more
agreements to intensify oil and gas
operations.
Despite the distraction of corruption
investigation by the United States of senior
Nigeria tops the list of countries with no

remarkable achievement in the sector in
2011. The launch of the gas revolution
notwithstanding, there was no major
landmark development commensurate with
the huge potential of the country. Non
passage of the Petroleum Industry Bill (PIB)
and the attendant uncertainties has halted
major new investment in oil and gas
exploration. Though operators continued to
drill production wells and undertake minor
project development activities, the
International Oil Companies (IOC) are not
targeting new prospects.
Nigerian authorities dissipated a lot of energy
focusing on issues with little or no significant
impact. In the process, a lot of opportunity
was lost. Rather than consolidate on the gains
of the widely acclaimed Nigerian Content
Law, policy makers seem to be engaged in a
game of musical chairs.
2011 witnessed severe disruption in oil and
gas activities in Libya as a result of hostilities
in the North African country. Oil and gas
infrastructure suffered damage as a result of
the fighting. Thankfully, the situation began
to return to normal in the last quarter of the
year.
Since the end of the fighting, several
companies have announced plans to return
but many are yet to actualize same. The good
news is that a few have succeeded. For

example, production has restarted at Eni's
largest oilfield in Libya, known as Elephant
because of its size, pumping 40,000 barrels
per day (BOPD). The field was pumping
130,000BOPD before the war.
Despite the emerging picture, all hope is not
lost. The season is here for policy makers to
do deep soul searching and focus on how to
gain lost momentum. In several cases,
existing policies and legislation need to be
reviewed to match the realities of the market.
Ghana must continue to remain focused with
the current strategy of aggressive growth.
The Libyan authorities should accelerate on
rebuilding the industry as quickly as possible
by offering players attractive contracts.
Equatorial Guinea and Chad must strengthen
regulatory environment to maximize benefits
from the industry. Nigeria must wake from
the deep slumber.
Adedayo Ojo is Lead Consultant/Managing

Director of Caritas Communications Limited, a
reputation strategy and communications
consultancy focused on the oil &gas industry.
Caritas is affiliated to Regester Larkin, one of the
pioneers of reputation management specialty in
the oil & gas industry. To learn more about Caritas
& Regester Larkin, please visit: www.caritaspr.com
27
OPINION
government functionaries, Equatorial Guinea

has also fared well this year. In January, The
Ministry of Mines, Industry and Energy, which
represents the interest of the government,
announced the approval of the Alen Plan of
Development, Offshore Bioko Island, an
initial phase of gas recycling and condensate
stripping followed by gas production which
will go to Equatorial Guinea's Integrated Gas
Project.
There was a flurry of activities in Angola, a
highpoint of which is the reported planning
for a third refinery in the Northern Province.
But it won't happen. At least not yet. The
building of the second refinery is not going
forward because of funding constraints. So,
you ask: where will the funds for a third
refinery come from? In Algeria, a few new
agreements with potential to grow volumes
were put in place, but the planned mega
projects to increase gas export are slow in
coming.
The creation of South Sudan has thrown up a
cash crunch situation for Sudan, which finds
itself with less than 50% of the revenue that
used to accrue to it when South Sudan was
still a mere self governing entity. Now there's
so much tension between the two nations
and what should be an opportunity for
business relationship is being wasted in
rhetoric.
D E E P WAT E R A N N UA L
A TOTAL Push In The Deep Blue
French supermajor TOTAL, is the most aggressive explorer and producer of

crude oil and gas, in the deepwater Gulf Of Guinea
By Toyin Akinosho
he Pazflor project offshore Angola is the

stuff of rocket science, says Chistophe de
Margerie, chief executive of TOTAL, the
French supermajor.
He was talking to African Business, the monthly
financial journal published out of London. The
chatty, personable Mr de Margerie didn't
exactly use those words. What he said was
much more expressive: This (project) is true
technical prowess, a world first. The gas is
separated from the liquids (oil and water) in the
seabed at a depth where human intervention
isn't possible. You can compare it to the
complexity of exploration in space.
Pazflor is the latest of a string of Five
(5)deepwater fields on the Gulf Of Guinea, to
be delivered by TOTAL in a time span of seven
years.
Pazflor came on stream in August 2011, ahead
of the initial schedule. Pazflor is not one field; as
some American energy publications put in their
misleading reports. Rather, it is a combination
of fields, which are being produced together as
a cluster. The project started in 2000 when
TOTAL discovered the Perpetua reservoir in
Block 17, its 40% operated deepwater prolific
acreage off Angola. Acacia and Zinia were
uncovered in 2002, followed by Hortensia in
2003. Sonangol , the Angolan state
hydrocarbon company is the concession holder.
Partners include Statoil ASA (23.3%),
ExxonMobil(20%) and BP (16.67%). Pazflor
encompasses all four reservoirs and covers an
area of over 600 square kilometers - six times
larger than Paris - at a water depth of about
1,200 meters. The combined pool lies 150
kilometres off Luanda in and has estimated
proved and probable reserves of 590 million
barrels. It will gradually ramp up to its full
production capacity of 220,000 barrels per day
over the coming months.
Pazflor comprises a vast subsea gathering
network, the most complex ever built in
Angola: 180 kilometres of lines tying in 49
subsea wells, 10,000 metric tons of subsea
equipment and the giant Pazflor floating
production, storage and offloading (FPSO)
vessel. Held in position by 16 subsea mooring
connectors, with its 325 metres long, 62 metres
wide and a weight of more than 120,000 metric
tons, the FPSO is the largest in the world. It can
store up to 1.9 million barrels of oil that is then
exported to tankers via an offloading buoy. The
associated gas is reinjected into the reservoir,
but could also be exported to the Angola LNG
plant once the latter becomes operational.
A key technical challenge was producing two
very different grades of oil from four separate
reservoirs. Producing the heavy, viscous oil
from the three Miocene reservoirs, which
account for two-thirds of the reserves, and the
re l ate d f l o w a s s u ra n c e c o n st ra i n t s ,
represented a major challenge. The gas has to
be separated from the liquids on the seabed so
that the viscous liquids can then be pumped to
the surface. The design and installation of
subsea gas-liquid separation units and pumps
are a world first on this scale. The pumps were
purpose designed and tested for Pazflor.
When output from Pazflor reaches 220,000
barrels per day, it will make TOTAL the leading
oil operator in Angola and the African
deepwater industry, the company said at the

project commissioning in Luanda, in November
2011.
Yet, as Pazflor ramps up to plateau production
volume off Angola, the ambitious French
supermajor is cranking up the production
engine for the Usan field, off Nigeria.
Usan's Floating Production, Storage Offshore
(FPSO) vessel arrived Nigerian waters in
October 2011, and was undergoing intense
activities in preparation for first oil, as of the
Dalia FPSO, off Angola
28
29
time of this report. First oil is expected to gush

into the vessel before March 31, 2012, with
plateau production expected at 180,000BOPD.
It could even be much better: TOTAL's first
deepwater field in Nigeria, Akpo, promised
175,000BOPD at peak. First oil came up in 2009.
However, last December, Guy Maurice, the
company's CEO in the country, told a news
conference that, two years after the
commissioning, the field was gushing more
than the prognosed plateau production.
TOTAL plans to increase its operated floating,
production, storage and offloading (FPSO) units
in the Gulf of Guinea from three to nine, in the
space of seven years.
Between 2010 and 2017, if everything goes
according to plan, TOTAL would have increased
its operated deepwater production by at least
600,000BOPD, baring reservoir optimization
challenges,.
The FPSO for CLOV, another Angolan
deepwater project, would have a production
capacity of 160 000 BOPD and would come into
Construction site of the FPSO for the Moho Bilondo field, off Congo
production in 2014.
TOTAL is at the early stages of development of
been here 40 years, we know everybody and,
though handicapped with a waxy crude and a
three other projects including the 200 000
there's no way we won't recoup. Some of the
location that is in the middle of nowhere, is
BOPD Egina project in Nigeria, Block 32 in
issues that hold up projects like Chevron considered the next big thing in oil production
Angola and the Moho Bilondo project in the
operated
Bonga
South/
Aparo
and
ExxonMobil
on
the continent. Our bankers are asking us:
Congo. Egina is planned to come on production
led
Bosi,
Erha
North
and
Uge
fields
disappear
why
are you always in these tough places?, one
in 2015. But Final Investment Decision hasn't
with TOTAL's Egina, Preowei and other
TOTAL manager confides.
been made.
oncoming projects, the official says.
But this article is supposed to be about
Indeed, if the Usan field makes it to first oil in
In terms of exploration, TOTAL has increased its
deepwater.
2012, TOTAL will be the first IOC in Nigeria to put
number of acreages in Africa by 20% since 2008
As its appetite grows for larger sized assets,
a second, large deepwater oilfield on stream
and is considering other new horizons. Just the
TOTAL is winding down activity in those parts of
within five years of the first. The cumbersome
other
day,
Mauritania
was
added
into
the
West Africa it considers sunset places. It
process of deepwater development in Nigeria
has ensured that
none of the other TOTAL IN AN ACQUISITIVE MODE
operators: Shell, In the last five years, TOTAL has bought into seven deepwater acreages in the African Atlantic
WATER DEPTH RANGE
EQUITY
JURISDICTION
DATE OF ACQUISITION
OPERATOR
ExxonMobil and ACREAGE SIZE
2,500 to 3,500 metres
90%
MAURITANIA
Jan-12
TOTAL
C h e v r o n h a s Block C9 10,000 km
1,500 to 3,000metres
60%
COTE D'IVOIRE
Oct-10
TOTAL
b e e n a b l e t o CI-100 2,000 km
BLOCK 1 700 km
1,600 to 1,800 metres
45.90%
NIGERIA/Sao Tome JDZ
Jul-10
TOTAL
deliver a second,
OPL 279-N1, 125km2
800 to 1,800 metres
14.50%
NIGERIA
Apr-08
OMEL
big ticket
OPL 285 1, 170km2
400 to 900 metres
25.60%
NIGERIA
Apr-08
OMEL
development
OPL 257 372km2
1,600 to 1,800 metres
40%
NIGERIA
Mar-08
CONOIL
after Bonga(Shell
OPL 247 1, 315km2
1,000 to 1,500 metres
36%
NIGERIA
Jul-07
CHEVRON
2 0 0 5 ) ,
Erha(ExxonMobil
basket: Block C 9 covers an area of more than
announced its divestment in Cameroon about
2006) and Agbami(Chevron 2009).
10,000
km,
in
water
depths
ranging
from
2,500
the
time it went to town with talk of aggressive
Nigeria has been particularly challenging for
to
3,000
meters.
TOTAL
will
operate
with
90%.
portfolio
expansion in the region.
large scale projects by major IOCs, who are
SMH, the state hydrocarbon company will hold
TOTAL's June 2010 acquisition of Chevron's
frustrated by the uncertainties surrounding the
the remaining 10%. If that seems quite far
49.5% operated interest in deepwater Block 1,
Petroleum Industry Bill, an omnibus piece of
fetched in terms of prospectivity and the
in the Joint Development Zone(JDZ) between
legislation which combines 16 different
economics of crude oil production, remember
Nigeria and Sao Tome, strategically increases its
Nigerian petroleum laws in what is supposed to
that
the
basket
has
always
had
a
fairly
sorted
cluster
of acreages in the south east offshore
be a single transparent and coherent
collection
of
grains.
TOTAL
has
been
in
a
Niger
Delta,
which includes the developed
document. This bill has been locked down in a
fields
of
Usan
and Akpo and the developing
particularly
acquisitive
mode
in
Nigeria,
where
vicious debate since it was first presented to the
fields of Egina and Preowei. The same general
it has snapped 40% equity in OPL 257, OPL
National Assembly in 2007 and has become the
247(two deepwater leases) and OML 136 (a
area is inhabited by OPLs 247 and 257. With
poster document for the decline in oilfield
shallow water acreage). Nearby, the company
Akpo, Egina, Prewowei and Usan in the general
activity in Nigeria.
acquired
a
60%
interest
in
the
CI-100
license
off
vicinity,
the Obo discovery in Block 1, that
But TOTAL has managed to get its projects
Cte
d'Ivoire.
The
2,000
square
kilometre
seemed
so
expensive for Chevron to develop,
through the cloudy circumstances; the Usan
block,
located
in
water
depths
ranging
from
suddenly
becomes
economic for TOTAL, which
project was approved in 2008 and the company
1,500
to
3,100
metres,
is
adjacent
to
the
prolific
will
simply
flow
the
oil into its existing facility in
is almost sure that Egina will go through. It's a
Deepwater Tano acreage in Ghana.
that corner.
question of their assessment of political risks,
It says something of the company's sense of
Total will be drilling in both Block 1 JDZ and Csays one ranking government official, whereas
adventure that TOTAL is the only western
100 in 2012.
Chevron, or ExxonMobil wants to be sure of
operator
of
its
size
in
landlocked
Uganda
which,
return on investment now, TOTAL says: we've
Ghana Is The Luckiest Of The Minors
he Ghanaian segment of the

African deepwater terrain
has been the most prolific
outside the major petroleum basins
of the Gulf Of Guinea.
To start with, no other oil tank
outside the GOG's two mega basins:
Congo Fan (off Angola and Congo
Brazzaville) and deepwater Niger
Delta (off Nigeria), has promised to
deliver, at inception, as much oil as
Ghana's Jubilee field, with estimates
ranging from 600MM-1.5Billion
barrels of oil equivalent (P+P)
reserves.
Gabon hasn't shown up on the
deepwater map, so its basins:
Oogue Delta and the Gabon coastal
basin, can't even qualify for
consideration.
Neither the Abidjan Margin, nor the
San Pedro basin, off Cote d'Ivoire,
has ever aspired.
ExxonMobil operated Zafiro is
squarely in the Niger Delta, even if
it's located in Equatorial Guinea
territory but Hess operated La
Ceiba, which lies in the Rio Muni
basin, is the only tank which can
aspire to be called a major field in
that basin. And it never promised to
deliver a volume anywhere close to
those figures.
Everyone looked up to Mauritania
when the Chinguetti field was
discovered in 800metres of water by
the Australian operator Woodside
Petroleum in 2001. Coming two
years after the discovery of Le Ceiba,
it heralded the era of Africa's minor
petroleum basins. But the field was
quite modest in size, originally
estimated at 123 million barrels,
though as the first commercial
discovery of oil in the Atlantic edge
of Sahelian Africa, it opened a new
region for offshore petroleum
exploration. Production of 75,000
barrels per day however declined
rapidly after the start of production
due to geological complexity. A
smaller oil field, Tevet, was
discovered in the same area in 2005,
and two larger discoveries, Banda
and Tiof, were also made off the
coast of Mauritania, but none of
these could be considered major
oil fields.
Jubilee has produced 22Million
barrels of oil a day since first oil in
November 2010, a figure (at roughly
80,000BOPD currently) regarded as
suboptimal. The performance is
however, about mechanical issues
relating to well completions, and
not geology..
But more crucially, recent
30
discoveries outside the Jubilee field

have helped Ghana's Tano basin
break another significant rule: that
none of the basins outside the
Congo Fan and Niger Delta can
entertain more than one major oil
field, namely a field of at least
300MMBOE(P+P).
Angola is promoting the deepwater
Kwanza basin as a site of several
major oil fields. The major oil
companies seem to believe so. They
are all foraging for treasure beneath
the salt(carbonates) in water depths
ranging from 1,500 to 4,000 metres.
Will Kwanza break the rule like
Tano? If Kwanza turns out to be a
the basin-opening discoveries on

the continent in the last five years,
l i st s f i ve a d d i t i o n a l m a j o r
discoveries in the Tano basin since
the epochal Mahogany (Jubilee)
discovery of 2007. They are:
Mahogany East, Tweneboa, Enyenra
Teak and Akasa.
On its website, Anadarko allocates
300MMBOE to each of Enyenra and
Tweneboa, which have both
experience extensive appraisal well
drilling and are close to Financial
Investment Decisions.
Still, these are all discoveries in the
Jubilee megatrend. If you want to
find lots of oil, we insist, you have to
By Toyin Akinosho
direct hydrocarbon indicators. The

well encountered red a gross
hydrocarbon column of 94 meters
containing 25 meters of net
hydrocarbon pay in stacked
reservoir sandstones of Albian age.
Fluid samples recovered at the
surface indicate that the pay interval
consists of a volatile black oil
b e a r i n g zo n e b e l o w a ga s condensate bearing zone. The
o p erato rs claimed th at an
Appraisal Plan is currently being
developed for submittal to the
Minister of Energy. It's been two
years already; if Dzata, located in
Accra Keta Basin, was considered a
Anadarko lists three fields offshore Ghana as part of its top 11 new fields from around the world.
locale of major oil fields, Angola

itself will be breaking yet another a
rule: apart from Equatorial Guinea,
no other coastal West African
country hosts more than one prolific
basin.
No, the requirements of a prolific
basin are not that onerous: you only
need to host more than one
>300MMBBO field. Nigeria and
Angola have only the Congo basin
and Niger Delta. No other basin, in
any of these two giant oil producers,
hosts a major oil field. But we are
getting ahead of ourselves.
Anadarko, the American
independent credited with most of
be located within the Jubilee sphere

of influence (See illustration).
So, Ghana's Tano basin has broken
the rule that a basin outside the
Congo Fan and Niger Delta cannot
host more than one major oil field.
But can Ghana itself, as a country,
break the second rule; namely that
no other coastal West African
country, with the exception of
Equatorial Guinea, hosts more than
one prolific basin in the deepwater?
The Lukoil-Vanco partnership, in
February 2010, reported a discovery
in Dzata-1 well, originally drilled to
evaluate an anticline which exhibits
a dramatic "gas cloud" and other
significant discovery, surely, an

appraisal should have been drilled
after the seismic data on the field in
March 2010?
Afren had tried its luck earlier than
Lukoil-Vanco. Its Cuda -1, located in
Keta Block on the Accra Keta basin,
which is farther east, towards the
Ghanaian border with the Republic
of Togo, was not completed. It was
plugged and abandoned, ostensibly
for mecna=hanical reasons. But no
one in Afren is willing to admit that
the well was onto something
significant before the company quit.
Afren has since farmed 35% of the
acreage to Eni, the Italian major.
What is Ghana Playing At?
of our going to press, the field development plan

for Benita (renamed Aseng) had been approved.
The field is expected to produce some
50,000Barrels of oil per day at peak, a few months
after it comes on stream in 2012. Noble will
develop the other fields after Aseng by tieing
them to the main facilities in Benita.
of Sight to Next Development
The Jubilee megatrend..
Courtesy..Anadarko
location and results and sheer common sense.

If there would be any other field of Jubilee size,
outside the Jubilee megastructure,
in Ghanaian deep waters near the size of Jubilee it
would have to happen in another basin.
To explain this, let's take another look at
Equatorial Guinea.
While every company-major and independentcrowded around the vicinity of Le Ceiba in
deepwater Rio Muni
Basin, Noble Energy
Line
v e n t u r e d
northwards, to take a
look at the largely
u n e x p l o r e d
deepwater Douala
Basin. The company
probed Miocene
targets in Douala,
c o n t ra r y t o
Cretaceous age
reservoirs that others
were pursuing in Rio
Muni. In three years
of work,(2005 to
2007), Noble had
encountered
com mercial sized
hydrocarbon pools in
Belinda, Benita,
Yolanda and Diega
prospects in blocks O
and I. As of the time
Courtesy.. Tullow Oil
he discoveries of the last four

years, principally Enyenra
Teak, and Tweneboa, have
basically confirmed the prolificity of
these two acreages. Enyenra and
Tweneboa are located outside the
Jubilee channel, (see map) but they
both reside on the mega structure.
Hess Corporation's dry hole,
Ankobra 1, drilled in 2008, is located
in adjacent Deepwater Tano/Cape
Three Points license, but is off the
Jubilee megastructure. Its Paradise
1, located in the vicinity but off the
megatrend encountered 490feet
Net Hydrocarbon sands in June
2011. Is it possible that prospectivity
decreases southwards, away from
Jubilee and its satellites?
Are we replaying, in Ghana, the experiences of
Equatorial Guinea, Mauritania and Egypt where,
every other operator/partner outside the
flagship field has had much less luck than those
operating the signature field?
Some background: As soon as Triton announced
the discovery of Le Ceiba, in Equatorial Guinea's
deepwater Rio Muni Basin, everybody rushed in.
But while Triton (and latterly Hess) kept
deepening their understanding of La Ceiba and
increasing their take points, every other company
on leases adjacent to La Ceiba was reporting
either sub-commercial finds or outright dry holes.
In Mauritania, there was a host of smaller oil and
gas discoveries, after Woodside's Chinguetti find,
but the commerciality was low and even
Chinguetti's own production headed south rather
quickly.
In Egypt's deepwater, no company has been able
to encounter anything close to the size of the
hydrocarbon accumulation in the West Deep
Delta Marine Concession, the country's signature
deepwater asset, which provides all the gas for
one of Egypt two LNG projects. Shell has
struggled in the past five years to put an LNG
project on the drawing board on the basis of
accumulations in its North East Mediterranean
Deepwater (NEMED) Block, which is adjacent
WDDM. So far, the Anglo Dutch major hasn't
come up with the reserves figure that can justify
such a project.
So, is this the way the marginal (smaller)
provinces of deepwater Africa, outside Nigeria
and Angola, work?
Does this mean that Vanco/Lukoil,
who hold the Cape Three Points Deep
and ENI, which is operator of Cape
Three Points South are far more likely
to encounter dusters, or subcommercial hydrocarbon pools? Eni
made a gas discovery in Gyame 1, near
the Sankofa gas field. Does this mean
much?
The experience with Equatorial
Guinea, Mauritania and Egypt says
Yes. But we are the first to admit that
this analysis is not being made with
any hard technical data. We are not
privy to anything more than well
31
FA R M I N . FA R M O U T
Egypt, Sierra Leone Set Bid Deadline At March 2012
ierra Leone's Petroleum Directorate is putting nine

deepwater blocks up for sale, with March 2012 set as
deadline for participants to have submitted their bids.
Meanwhile the Egyptian General Petroleum Corporation (EGPC)
has postponed the International 2011 Bid Round For Petroleum
Exploration and Exploitation from January 30 to March 29, 2012.
Fifteen (15) Exploration Blocks are on offer, in Gulf of Suez,
Eastern Desert, Western Desert and Sinai Sedimentary Basins.
Sierra Leonean authorities say that the nine blocks cover about
21,242 sq km in acreage. Sierra Leone's 2011/2012 Petroleum Bid
Round offers blocks SL-4A-10, SL-7A-10, SL-7C-10, SL-8A-10, SL8B-10, SL-9A-10, SL-9B-10, SL-10A-10, and SL-10B-10 to
interested bidders. The bid round commenced on December 29
and parties interested in submitting bids must have them in by
March 30, 2012. About 5,800 line km of reprocessed 2D seismic,
3,200 sq km of 3D seismic data covering some of these blocks,
well information, and regional interpretation are available for
purchase from the offices of seismic firm TGS. Other bidding
documents and details of the process and criteria for evaluation
of bids are obtainable from the Petroleum Directorate. Oil
companies are invited to evaluate Sierra Leone's hydrocarbon
potential and bid for a block or blocks. We have a hybrid of
royalty-tax and a carried interest for the National Oil Company
with competitive rates., according to the directorate.
The Sierra Leone government reserves the right to withdraw the
bid round and is not bound to choose the highest bidder
he Egyptian government rules that The main commercial
parameters for winners in the current bid round are that:
1) The Production Sharing model based on production
rates, in which contractor undertakes all risk to explore and
develop both crude oil and gas, will be applied. This model
will be submitted by EGPC.
2). Royalty: EGPC shall bear and pay out of its share, the
entitled royalty.
3) Income Tax: Contractor shall be subject to Egyptian
Income Tax. However, EGPC shall pay the income tax out of
its share on behalf of Contractor in case of such tax is
applied.
4) Contract Period (competitive): The duration of the
Exploration period shall be specified in the offer and
subdivided into phases.
Egyptian authorities say that shorter exploration period is
preferable (with maximum total exploration duration of 7 years),
but the contractor will have the option to withdraw at any phase
provided that contractor has fulfilled commitment of such phase.
The duration of any development lease shall be (20) years from
the date of Minister approval, (in case of Oil or Gas development
lease). This period may be extended up to 5 years Five Years
MAURITANIA
TOTAL Annexes
Two More
OTAL's earliest 2012 Petroleum Rights

statement was to announce it had signed
two exploration licenses with the
Mauritanian government. The agreement grants
the company, as operator, a 90% interest in Block C
9 in ultra deep offshore and Block Ta 29 onshore in
the Taoudeni basin. The National oil company
SMH will hold the remaining 10%.
The block C 9 covers an area of more than 10,000
km, in water depths ranging from 2,500 to 3,000
meters and is located approximately 140
kilometers offshore Western Mauritania, covering
The Block Ta 29 is located in the Saharan desert,
1,000 kilometers east from Nouakchott and north
of the Block Ta 7 in which TOTAL is already
conducting exploration activities. For both blocks,
a seismic acquisition campaign is planned as the
first phase of the exploration programme.
Extension upon EGPC and petroleum Minister's approval and after submission of a
development plan.
Contractor shall deliver regular commercial shipments of Oil or regular commercial
deliveries of Gas within 4 years from the approval date of the Development Lease. Oil and
Gas development lease/s shall be reviewed for the first time after four (4) years from the
date of commencement of commercial production for Oil or from the date of first
deliveries of Gas locally or for export in such Development Lease and then shall be
regularly reviewed every 4 years, for the purpose of relinquishment of any development
block/ blocks not producing or not contributing to production.
If Gas is discovered in a commercial quantity, EGPC and Contractor failed to find a market
for such gas within 6 year period from the approval date of a Gas Development Lease ,
Contractor shall surrender such gas reserves to EGPC.
Companies can contact the Deputy Chief Executive Officer for Agreements Telephone :
(202) 27065358 for further information
NIGER
RWANDA
SENEGAL
TVI Withdraws
from Tenere
Vanoil Extends
TEA In Kivu
AP Corp Shows
Up In Rufisque
VI Pacific has withdrawn from the

second exploration phase of the
Tenere Block in Niger Republic. The
decision leaves the partner China National
Petroleum Corporation International
Tenere (CNPCIT), alone in the acreage. After
analyzing the final well data and reports
from the Facai-1 exploration well drilled in
August 2011, TVI has withdrawn entirely
from the contract area.
TVI earlier announced that it had plugged
and abandoned the third and final
exploration well of a three well carried
programme in the Tenere Block. The Facai-1
exploration well, drilled by operator CNPCIT,
had encountered two small gas shows
during drilling, but wireline logs indicated
there were no zones worth testing.
wandan authorities have granted an

ex te n s i o n to t h e Te c h n i c a l
Evaluation Agreement ("TEA") for
exclusive 1,631 square kilometre oil and
gas license in the Kivu Graben Basin to
Vanoil Energy.
Kivu Graben is on the same rift trend with
the Albertine Graben where Tullow Oil
claims it holds 1.5 billion recoverable
barrels of oil; a significant discovery that
many believe may represent only a small
portion of the enormous potential of the
area. Vanoil's president, Dal Brynelsen,
commented, "Since the first Technical
Evaluation Agreement signed in October of
2007, Vanoil has worked closely with the
Rwandan Government to develop and
enter into a PSA.
enegalese authorities have awarded

two offshore exploration permits,
covering two blocks, to African
Petroleum Corporation Limited. The
acreages are Rufisque Offshore Profond
and Senegal Offshore Sud Profond.
African Petroleum will be the operator with
90% interests in the two blocks covering a
total surface area of 18,277 sq km. The
S o c i t d e s Pt ro l e s d u S n ga l
(Petrosen'') awill have 10% interest.
African Petroleum Senegal's exploration
programme will target deep water Upper
Cretaceous submarine fans in Senegal
which are considered to have similar high
impact potential as discoveries in the
Jubilee field, Ghana and Mercury discovery,
Sierra Leone.
33
FA R M I N . FA R M O U T
THOSE WHO ARE SELLING
NIGERIA
Eni Walks Out Of

OMLs 120 and 121
fter two years of a sharp reduction in

output, operator Eni has taken leave of the
entire deepwater Oil Mining Lease(OML)
120 off Nigeria, in which the Oyo field as the only
producing asset. Eni has divested its 40% working
interest in the lease, as well as the adjacent
acreage, OML 121, to CAMAC Energy Inc, parent
company of Allied Energy, the Nigeria registered
company whose working interest now goes up to
100%.
The Italian major Eni had been concerned about
the rapid production decline of the Oyo field,
months after the big fanfare of first oil in
December 2009.
TUNISIA
P A Pulls Out Of El Bibane
anish independent, PA Resources, has

signed an agreement to divest its working
interest in the Ezzaouia and El Bibane oil
producing fields in Tunisia for $4MM.
The company agreed to divest its 13.6% working
interest in the Ezzaouia Field and 23.9% working
interest in the El Bibane Field, both located in
EGYPY
RWE Dea Hasn't Confirmed

Egyptian Sale
erman operator RWE Dea has yet to

confirm the widely circulated rumour
that it was about to sell its assets in
Egypt. The Financial Times reported, last
November, that the company wanted out of the
North African country in a bid to shore up its
finances as Germany moves to exit nuclear
energy.
RWE Dea took over assets from Deminex in
Egypt in 1999 and made a number of major gas
discoveries and boosted its activities
The field development was the flagship project of

Allied Energy Plc. It was developed in a joint
venture partnership with Nigerian Agip
Exploration, the Nigerian subsidiary of Eni, in
water depths ranging from 200 meters to 500
meters. A Floating Production and Offshore
Loading Vessel (FPSO) with a processing capacity
of 40,000 barrels per day and a storage capacity of
one million barrels of export quality crude oil was
installed for the field.
From as high as 15,000BOPD at inception of
production in December 2009, Oyo 's output had
fallen to 4,000Barrels of Oil Per Day by mid April
2011. The field is being drained by two producers
and two injector(one gas, one water) wells and
there's no clarity as to whether there will be any
further seismic data coverage for better
understanding of the play.
The transaction is subject to customary conditions

for closing and is expected to conclude during the
first quarter of 2012.
In spite of the negative production history, the
press statement from CAMAC, a U.S.-based
company, is upbeat. Allied plans to expedite the
development of Oyo Field by drilling two
additional production wells commencing in 2012.
The company also says that these two wells are
expected to significantly increase oil production
over current levels. It is CAMAC's understanding
that Allied also intends to accelerate exploration
activities in the OMLs to fully exploit potential
outside of Oyo Field, independently. Eni's
goescientists are not convinced of the worth of this
upside potential.
Tunisia, for $4 million (prior to closing

adjustments). The assets are acquired by Candax
Energy Inc., whose subsidiary is a partner as well
operator in both fields. The transaction has an
effective date of 1st January 2012 and is subject to
partner and government approval.
The two fields contributed approximately 100
barrels of oil per day of working interest
production net to PA Resources in the end of 2011.
PA Resources share of the Proven and probable

reserves (2P) at the fields represented
approximately 0.5 million barrels of oil equivalents
as at 31 December 2010.
The divestment of PA Resources' interest in these
two small and non-operated fields is part of the
ongoing effort to focus on our core fields and
licenses, says Bo Askvik, President and CEO at PA
Resources.
considerably with the acquisition of additional

concessions. RWE Dea has a total of 13 onshore
and offshore concessions in Egypt, across a
concession area of about 13,300 square
kilometers in the Nile Delta, Gulf of Suez and
Western Desert. The Financial Times reported
that RWE Dea's oil and gas exploration unit, has
identified Egyptian assets as the "most likely
contenders" to raise cash without affecting
RWE-DEA's otherwise strong results. RWE is
seeking to divest assets to generate $14.65
billion, the newspaper noted, adding that
Bankers expect the Egyptian assets to fetch up
to $2.54 billion. Concessions that had not yet while also allowing it to continue to reap the
been developed were the most likely candidates profits from fully developed oil and gas fields in
for sale as they would save Dea investment costs, Egypt, the report said.
THOSE WHO ARE BUYING

NIGERIA
SOUTH AFRICA
Shell Returns To OPL 245
Afren Buys From

Thombo
hell and Eni have paid

$1.3Billion to the Nigerian
independent, Malabu Oil & Gas,
for the Oil Prospecting Lease(OPL) 245
in deep waters of the southern Niger
Delta. Agip, operator of neighbouring
OPL 244, will be operator of the block
with a 50% interest. Shell will hold the
remaining 50%. The acreage was
revoked from Malabu in 2000 and
awarded to Shell, who paid the
Nigerian government $200Million for
the award in 2001. Then Malabu went
to court. The steep increase in the
price of the acreage is indicative of its
perceived prospectivity by the two
majors.
34
ondon listed Afren has bought

a 25% interest in South African
offshore Block 2B from
Thombo Petroleum Ltd. The change
of interests became effective on 26
October 2011. The tract covers
5,614 sq km in the Orange Subbasin, stretching from the western
coast of South Africa to the eastern
limit of Block 2A in up to 250m of
water. Thombo was granted the
exploration rights on 13 April 2011.
Afren may gain operatorship and a
further 25% working interest upon
completion of a planned 3D seismic
programme.
EGYPT
Sea Dragon Picks Up Three
ea Dragon Energy Inc. has entered into an arm's length share purchase
agreement with Golden Crescent Investments Ltd. (Golden Crescent), whereby
an indirect wholly-owned subsidiary of Sea Dragon will acquire all of the issued and
outstanding shares of National Petroleum Company Egypt Ltd. (NPC Egypt).
As a result of the deal, the company will pick up operated and non-operated stakes in four
Egyptian concessions. The company will pay a consideration of $60,000,000 in cash and
the issuance 350,000,000 common shares of Sea Dragon will be issued to Golden
Crescent at the closing of the acquisition, at a deemed price of $0.25 per share, subject to
any adjustments made in accordance with the terms of the Purchase Agreement.
The SAZ Concession is located offshore in the central eastern part of the Gulf of Suez at
water depths ranging from 30 to 70 meters. The concession contains the Muzhil Field
which is expected to begin production in Q1 2013. The SHM Concession contains the
producing Shukheir Bay Field and the Gamma Field. The company also gained the NEM
Concession and the SR Concession which are purely in the exploration phase.
The EK Concession, which is located offshore along the western side of the southern part
of Gulf of Suez, covers an area of 53 sq km in water depths ranging from 0 to 72 meters.
The EK Concession and related concession agreement has not yet received ratification by
the People's Assembly of Egypt. NPC EK has not yet undertaken any detailed exploration
activities in respect of the EK Concession except for a re-interpretation of existing 2D
seismic data.
ADDAX/OML 137
Addax Plugged and Abandoned
Udele 6 at 2008mTVD
AGIP(ENI)/OML 61
AGIP(ENI)/OML 61Agip was drilling
ahead in Ashaka 4.
CHEVRON/OML 86
Plugged and abandoned Funiwa Deep A
due to hole problems. Relocated to drill
Funiwa Deep1A, with the rig KS Endeavour.
NPDC/OML 65
NPDC is acquiring 250sq km of three
dimensional (3D) seismic data on Abura
South East field in OML 65. An IDSL/UGNL
Joint Venture is the contractor.
NPDC/OML 111
NPDC is acquiring 200 sq km of three
dimensional(3D) seismic data in Oghama
field area. IDSL is the contractor.
ADDAX/OML 126
Addax was drilling Okwori
24 on OML 126.
EXXONMOBIL/OML 70
ExxonMobil completed Usari 48BC as oil
producer.
STATUS QUO ANTE
www
report
Copyright 2012,
TOTAL/OML 100 & 102

Total completed a High Definition 3D seismic programme on blocks OML 100 and
OML 102, in July 2011. The programme consisted in an ocean bottom cable survey
covering 170 sq km over the Nkarika field and a 620 sq km conventional survey over
the Etisong and Emem structures in the southeastern part of OML 102. The data
acquisition started on 5 January 2011.
ADDAX/OML 123
Addax was mobilizing the Jack up rig
Adriatic X for drilling Kita Marine-7PH
TOTAL/OML 100
TOTAL was testing Ime-12 T1
EXXONMOBIL/OML 67
ExxonMobil operated four rigs and drilled six wells;
the Baltic-1 drilled Ubit 168M; Percy Johns batch
drilled Ubit 172K and 173K; Lloyd Noble batch
drilled Ubit 170J&J10. Ed Noble was on wokovers.
STOP PRESS
Chevron was working to contain a fire that ignited on January
17, 2012 aboard the jack-up rig K.S. Endeavor, operated by
FODE Drilling Nigeria Limited. The rig was drilling a natural gas
exploration well, located in the Funiwa Field approximately six
miles (10 kilometers) offshore and in approximately 40 feet
(12 meters) of water. One hundred and fifty-four personnel
were on the rig and an associated barge. Two contractors were
still unaccounted for as of the time of our going to press.
SHELL/OML 23
Shell has recorded 247km2 of a planned, ninety fold, 250 km2 Swamp 3D
Reshoot in the Soku field in OML 23. The contractor is BGP/CNPC crew 9912.
SHELL/OML 17
Agbada 67 in OML 17, was
TOTAL/OML 58
Completed Obagi- 126 in OML
58, as gas producers
ADDAX/OML 124
Addax was drilling Ossu 22P as deviated appraisal well at 2588mTVD
NIGERIA RIG COUNT:

TWENTY EIGHT (28) RIGS ON NIGERIAN SHELF IN NOVEMBER, 2011
Shell was on Five locations with five land rigs while Addax Petroleum was on four locations with four rigs, three of them in
shallow water in November 2011. ExxonMobil and TOTAL utilized three rigs each for drilling, though ExxonMobil had a fourth
for workover. Agip (Eni) deployed two rigs on two land locations. Chevron brought up the rear of the major IOCs with a rig on
one shallow water location. These are all Shelf wells. NPDC and private indigenous operators add the number to 28.
NEW DEVELOPMENT
AGIP(ENI)/OML 61
Agip was completing Oleh-2 in
OML 61, in two reservoirs (dual
completion) at 3728mTVD.
UPDATE ICONS:
NIGERIA/NNPC: INTERNATIONAL OIL COMPANIES(IOCs) ACTIVITY MAP
Vol 13, No 1, December2011/January, 2012
By Alaa Al Aswany
am not so stupid as to fall for this trap. That's all I

need, ending up marrying Shaymaa. I'd be like
someone fasting all day, forgoing all kinds of
delicacies, and then breaking his fast eating an onion!
True, she is an instructor at the College of Medicine, hut
she is still a peasant. I am the son of General Abd alQadir Haseeb, assistant director of Cairo Security; I
grew up in Roxy and went to the Heliopolis Club and
turned down daughters of notables. Do you expect me
to enc up marrying a peasant? Let her get as mad as she
wants to be! To hell with her!
That was what Tariq told himself. True, she was quite
pleasant and her company delightful. True, she looked
after him and cooked for him the dishes he liked. But
that did not mean that he should marry her. She had to
choose: either their friendship goes on as it was, or she
disappears. He would give her some time to come back
to her senses. He wouldn't talk to her. Why should he
talk to her? It was she who did him wrong. She got
angry for no reason and talked to him improperly in a
public place. She had to apologize.
He sat down to study, concentrating his thoughts away
from her. As usual, before he slept, he watched a
wrestling match and enjoyed a pornographic movie
(actually he forced himself to have that pleasure, to
prove that he had not been affected by Shaymaa). In
the morning he went to school and spent the day
between lecture hail and lab. He tried strenuously to
banish her picture from his mind. At about three
o'clock he was walking back to the dorm when he
suddenly stopped and dialed her number on his cell
phone. He was calling her, not to reconcile with her but
to rebuke her. He would explain to her how wrong she
had been. He would tell her clearly and decisively that if
she wanted to go on like that, then he didn't need her.
She could go wherever she wanted.
He glued his ear to the cell phone, preparing the harsh
words that he would unleash on her. But the ringing
went on. She didn't pick up. Maybe she was having her
nap as usual. When she woke up she would find his
number and call him. Tariq ate lunch (prepared by
Shaymaa), had his siesta, and as soon as he awoke he
reached for the cell phone and checked the screen: she
had not called. He rang her number again, and she
didn't answer. When he tried one more time, she hung
up. So, it was obvious. She was playing the role of the
angry paramour. She wanted him to come running after
her, humiliating himself. Impossible! he muttered,
the angle of his mouth forming a vexed smile, and he
began to stare at nothing in exasperation. So long as
she hung up on him, she has chosen the end. He
wouldn't say good-bye but to hell with her. Who did she
think she was? He said to himself: This peasant girl
wants to humiliate me? What a farce. So, she doesn't
know who Tariq Haseeb is. My dignity is more
important than my life. From now on I am going to
delete her from my life as if she has never existed.
38
Before I met her what did I lack? I

was working, eating, sleeping,
enjoying life, and living like a king.
On the contrary, ever since I met
her I've been anxious and tense.
He sat at his desk as usual, took
out his books and notes, and
began to study. He wrote down
the main points of the lesson and
exerted a great effort to stay
focused. Half an hour later,
however, he suddenly got up and
left his apartment. He crossed the
corridor quickly, as if someone
were chasing him or as if he were
afraid to change his mind. He took
the elevator to the seventh floor.
He looked in the mirror: he was
wearing his blue training suit and
his face looked tired and in need of
a shave. He reached her door and
rang the bell several times. Some
time passed before she opened
the door. She was wearing a house
gown. He said with a smile, Peace
upon you.
Peace upon you, Dr. Tariq.
Her formal tone jarred in his ears.
He fixed her with a strong, pensive glance but she
ignored it and said, May it be for the good, God
willing.
Are you still mad at me? he said in a soft voice.
Nho said that?
You left me yesterday and didn't ask about me today,
as you usually do.
She looked at him in silence as if saying, You know why.
Shaymaa, may I come in, please?
She felt awkward for a moment. She never expected
him to ask to come in. Previously, he had never been
beyond the threshold of the apartment door. She
backed away a few steps and made way for him. He
went in quickly, as if he were afraid she would change
her mind. He sat on a seat in the living room. She
realized for the first time that she was still in her house
gown so she took her leave, went inside, and stayed
there for what seemed to him like a long time. Then she
came back with a cup of tea, having put on an elegant
green dress. She sat in the seat far away from him. He
started sipping his tea and said, So, what made you
angry?
Do you really care to find out? she said coquettishly,
putting out a very tender feminine air.
His heart skipped a beat and he said in a passionate
voice, I missed you very much.
Me too, but I am not comfortable with our friendship.
Why?
Every day I get more attached to you, but we've never
talked about the future.
She was surprised by how forward she was being. Was
this the shy Shaymaa, now receiving a man in her home
and talking to him like that?
The future is in God's hands, he said in a soft voice in a
final attempt to avoid the subject.
Please appreciate my position. You are a man and OU
won't be faulted no matter what you do. I am a girl and
my family has strict conventions. Everything we do here
in America will reach people in Egypt, thanks to the
offices of good people who, as you know, are quite
numerous. I don't want to bring shame on my family.
We are not doing anything wrong.
Yes we are. Our relationship flies in the face of
tradition, in the face of the principles I was raised on.
My father, God have mercy on his soul, was an
Untitled, by Victor Ekpuk
LAST WORD
I Won't..I Will
enlightened man who supported women's education

and right to work. But that does not mean I should be
lax and compromise my reputation.
Your reputation is beyond reproach, Shaymaa'
She went on as if she hadn't heard him, Why are we
going out together? Why are you here now? Don't tell
me it's collegiality because collegiality has its bounds.
We have to use our heads and not be driven by
emotions. Listen, Tariq, I am going to ask you a
question, and I hope you'll answer it frankly.
Go ahead'
What am Ito you?
A friend.
Just a friend? she whispered in a soft voice.
His heart shook and he said in a quavering voice, You
are a very dear person to me'
Only that?
I love you, he said quickly, as if it had got away from
him, as if he had been resisting for some time then
suddenly collapsed. The atmosphere changed in an
instant. It was as if he had uttered a magical word that
opened all kinds of doors. She smiled and looked at him
with the utmost tenderness and whispered, Say it
again'
1 love you
They kept looking at each other in disbelief, as if they
were clinging to that unique moment, knowing it
wouldn't last, and not certain what to do once it had
passed. She got up, carried the tray and empty cups,
and then asked him in a voice that was the sweetest he
had heard since he met her, I've made a dish of Umm
Mi, would you like some?
She didn't wait for his answer but headed for the
kitchen, and then came back carrying the plate. She
was moving confidently and coquettishly as if, just now,
she was feeling at the peak of her femininity. Tariq
stood up to take the plate from her, but suddenly he
extended his hand and held her wrist. He pulled her
toward him and got so close to her that his hot, panting
breath chafed her face. She pushed him away with all
her strength and shouted in a choking voice, Tariq! Are
you crazy?
Excerpted from Chicago, a novel by Alaa Al Aswany.

Africa Oil &amp; Gas Report - JANUARY 2012

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

Africa Oil &amp; Gas Report - JANUARY 2012

Încărcat de

Drepturi de autor:

Formate disponibile

DRILLING UPDATE

FARM IN FARM OUT

Why S.A. Will Lose Out In The

Egypt, Sierra Leone In The Market

Publisher: TOYIN AKINOSHO

The West -East

Published by: FESTAC NEWS PRESS LTD.

They Are All Traitors!

o you have any Egyptian Copts in the

FESTAC NEWS PRESS LTD.

AFRIC A OIL + GAS REPORT

DECEMBER 2011/JANUARY, 2012

FROM THE EDITOR

Why S.A. Wont reap From

outh Africa has the opportunity to

that even the 2,400MW of gas fired electricity,

The import coal and hydro options are

DECEMBER 2011/JANUARY, 2012

Which is quite curious, given the availability of

The more I look at it, the more I

AFRIC A OIL + GAS REPORT

SAHARA ENERGY FIELDS

MILLENIUM OIL &GAS

2012 BID ROUND PENDING

ALL GRACE Ubima Field

NIGERIAN MARGINAL FIELDS: STATUS UPDATE

Vol 13, No 1, December 2011/January, 2012

Oil Patch Sahara

Oil Patch Subsahara

COVER PHOTO: Christophe de Margerie, Chief Executive of TOTAL

Fax: 00971 0 4 457 3164:

3rd SPE (Society of Petroleum

12th Nigeria Oil & Gas Conference

DECEMBER 2011/JANUARY, 2012

2nd Annual Shale Gas

6th German-African Energy Forum

Shale Gas Southern Africa

EnerCom's London Oil & Gas

AFRIC A OIL + GAS REPORT

AFRIC A OIL + GAS REPORT

being built around the world.

DECEMBER 2011/JANUARY, 2012

Photo by: Aderemi Adegbite

Protesters against subsidy removal

Statoil and BP the

confidence necessary to spur

Nigeria's Attempt At Deregulation Is Inconclusive.

he Nigerian government backtracked

however, gasoline is also the fuel of millions

DECEMBER 2011/JANUARY, 2012

rallies during the strike, these groups

AFRIC A OIL + GAS REPORT

Jubilee Plan 1A Submitted

JUBILEE HAS DELIVERED 22 MILLION

KOSMOS EXTENDS THE POOL IN TEAK

ENYENRA / TWENEBOA CLOSE TO COMMERCIAL DEVELOPMENT

Eni has already begun talks with the

The discovery is located 16 km east of

Eni reported encountering significant

ENI FINDS GAS IN OCTP

TULLOW TESTS ENYENRA

GHANAs UPSTREAM /MIDSTREAM ACTIVITY MAP

Vol 13, No 1, December 2011/January, 2012

NIGERIA's TOP TWENTY INDIGENOUS CRUDE OIL PRODUCING COMPANIES

Africa Oil & Gas Report - JANUARY 2012

Africa Oil & Gas Report - JANUARY 2012