Global oil demand grew very strongly in the 2nd quarter of 17, by 2.3 mb/d (2.4%), according to the recently released Oil Market Report. Demand growth has continued to be stronger than expected, particularly in Europe and the US. However, hurricanes Harvey and Irma are projected to slow US oil demand growth in the 3rd quarter.
Global oil supply fell by 720 kb/d in August due to unplanned outages and scheduled maintenance, mainly in non-OPEC countries. This cut supply to 97.7 mb/d, the first decline in four months. Compared to a year ago, output was up 1.2 mb/d as non-OPEC continued to show substantial growth. Ten non-OPEC countries cooperating with production cuts achieved more than 100% compliance for the first time.
Technology Focus I Global
United States Energy Secretary Rick Perry has asked an oil advisory council to assist oil drillers to begin exploiting technology that successfully captures carbon emissions from coal-fired power plants, by the injection of carbon dioxide into the ground. CO2 pipelines would be used to move captured carbon from a coal plant to oil fields where the emissions can be pumped into the ground to extract oil. Integrating this technology and deploying CCUS (carbon capture utilization and storage technology) at a large still remains a challenge, and further research will need to be undertaken to go forward with it.
African production is estimated to increase strongly driven by investments in deep water exploration areas. In particular, Nigeria and Angola are set to witness a strong surge in investment in offshore acreage.
Country Focus | Nigeria
Nigeria sees challenges with the stealing of oil transported via pipelines through the Niger River Delta. According to Wood Mackenzie, it is estimated that as much as 30% of the transported oil is stolen. In response, IOCs and their Nigerian partners are using surveillance helicopters equipped with infrared cameras on a daily basis. They’re also experimenting with drones and cages on wellheads rigged with alarms.
Despite hiccups in the industry, progress has been seen. Total’s Egina oil field development remains on track to achieve first production in 2018. The 550-MMbbl project in 5,740 ft of water will eventually produce 200,000 bopd to an FPSO. Once online, Egina could nearly double Total’s Nigerian output.
Canadian Overseas Petroleum (COPL) revealed it has made “encouraging progress” in its bid to secure funding for the development of its OPL 226 exploration license in Nigeria.
Lekoil has increased its current production at the Otakikpo field in oil mining lease (OML) 11 off Nigeria. The Otakikpo field is adjacent to the shoreline in the south-eastern part of the Niger Delta.
An Institute of Petroleum Technology (IPT) has officially been opened, expecting to produce world class professional technicians for offshore, mining, petroleum and related industry. It will provide energy education with special reference to technology. The college had in 2013 signed a tripartite memorandum agreement with the Global Maritime West Africa Ltd. and Society for Underwater Technology.
Country Focus | Angola
Angola’s former Petroleum Minister Jose Maria Botelho de Vasconcelos said that this nation’s economy requires oil prices to rebound to USD $60/bbl this year. IOCs continues to invest in Angola, and tenders for onshore blocks that were suspended earlier this year would be relaunched. A tender for oil blocks in the Namibe basin off southern Angola also may be opened next year to offset declines at older fields. Angola has worked with producers to cut production costs to an average USD $10-12/bbl from about USD $15-20/bbl three years ago.
Angola’s national oil and gas company Sonangol plans to sell the 51% stake it owns in real estate company Kora Angola through its Sonangol Imobiliária e Propriedades (Sonip) subsidiary, under a presidential order published in the official gazette.
Sparrows Group has signed a three year contract with Total in Angola to supply crane maintenance and engineering services at four of Total’s assets.
With the focus of promoting Local Content in the 18-member oil and gas producing countries, Luanda will be host to the 2nd Africa oil & gas Local Content Conference and Exhibition taking place from the 14 – 16 June 2018.
See more info here.
Country Focus | Mozambique
After signing contracts with ENI and Anadarko Petroleum last month to build two separate LNG terminals, Mozambique moves one step closer to seeing its LNG development ambitions come to life. Both these terminals are bringing foreign direct investment into the country, boosting the economy and pushing Mozambique closer to being a major global LNG power house. Mozambique’s total natural gas reserves now rival Nigeria and Algeria, the top gas reserve holders in Africa.
Petroleum Authority of Thailand, has signed an agreement to buy 2.6 million tonnes of natural gas per year to be extracted by Anadarko Petroleum in Area 1 of the Rovuma basin, northern Mozambique.
ENI East Africa has hired RINA Services to certify the quality of the design and production of the underwater structures and equipment to be used in the floating platform to process natural gas extracted at the Coral Sul project in northern Mozambique,
Seismic survey operations to establish the existence of hydrocarbons in commercially-viable quantities are due to begin on the coast of Zambezia and Nampula provinces in Mozambique in early October.
The Government of the Republic of Mozambique & the Ministry of Mineral Resources & Energy, in partnership with AME Trade bring you the 6th Edition of the Mozambique Mining, Oil & Gas and Energy Conference and Exhibition (MMEC 2018).
Request a brochure here.
Country Focus Algeria
Sonatrach plans to boost its annual gas export to Europe by an extra 2 billion cubic metres, reaching 10 billion cubic metres, from its current 8 billion. The Medgaz gas pipeline, connecting Algeria’s largest oil field, Hassi Messaoud, with Spain can produce 10 billion cubic metres of gas. Algeria already exports gas to Spain and Portugal through a second gas pipeline that passed through Morocco, and a third connecting Algeria with Italy through Tunisia, known as the Transmed-Enrico Mattei gas pipeline. Sonatrach also plans to launch three new gas fields during the first quarter of the next year.
Country Focus Ghana
The Ghana National Petroleum Corporation (GNPC) and Gazprom have reached a Liquefied Natural Gas (LNG) sales agreement to construct a re-gasification terminal at Tema, which is expected to add about 1000 MW to Ghana’s power supply. This is expected to play a positive role in Ghana’s economy and will provide a better framework to encourage private sector participation.
Company Focus I Total
Total seeks industry dominance with the expected completion of the East African oil pipeline in 2020 which aims to move Uganda’s oil reserves to the Indian Ocean for export. This pipeline, costing $3.5 billion USD, will cover 898 miles from the oilfields on Lake Albert, down the western side of Lake Victoria and end in Tanzania’s Tanga port.
Total has invested a large amount in the East African region, starting in 2010 by purchasing 1/3 stake in Tullow’s interests in Uganda’s main oil concessions for $2.9 billion USD, and another in Tullow’s remaining stake this year, boosting its upstream assets. Also, this year, it purchased Gulf Africa Petroleum Corporation to boost its downstream position. To fully cement its interest, Total’s most recent purchase consisted of Maersk Oil at a cool $7.5 billion USD.
South American countries have started to see improvements this year after drilling 32% fewer wells last year. Regional oil production slipped 7.5% well oil reserves remained nearly steady. Gas reserves saw a minimal decrease with 0.3%.
Tullow Oil and its partner Eco Atlantic have completed an approximate 2,500 km2 3D seismic survey on the Orinduik Block offshore Guyana. The Orinduik Block is located up dip and just a few kilometres from Exxon’s recent Liza and Payara discoveries confirming, by Exxon’s estimates, between 2.25 and 2.75 billion barrels of recoverable oil
Country Focus Brazil
The reestablishment of the oil & gas sector in Brazil was marked this month with the 14th Bidding Round of blocks for exploration and production of oil and natural gas held by the National Agency of Petroleum, Natural Gas and Biofuels (ANP). This stands as the largest total signature bonus in history – over R$ 3.8 billion – and the two biggest offers for blocks – around R$ 2.24 billion and R$ 1.2 billion. The goodwill was 1,556.05%.
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