South Sudan Encourages Refiners, Traders To Take Part In Upcoming Crude Tenders

South Sudan's Minister of Petroleum Ambassador Ezekiel Lol Gatkuoth has announced that the government was inviting more refiners and traders to take part in its upcoming competitive tenders for government-owned crude cargoes.

"Due to efforts by the government, under the leadership of H.E President Salva Kiir to increase current production levels, with the target of reaching previous levels of more than 300,000 bpd, we do expect to put more crude on the market and are seeking to expand our base of buyers," said Minister Gatkuoth.

The minister also said that South Sudan would sell its crude via a competitive and transparent tender process for spot and term buyers. "Prepayments allow the government to access revenue at competitive rates, especially as the government continues to finance the ongoing peace process," the Minister said.

South Sudan has embarked on a peace process under the leadership of H.E President Salva Kiir and H.E First VP Taban Deng Gai which has significantly contributed to a resumption of work on previously abandoned oil fields.

Operating companies nationwide are engaged in preparing for oil production resumption, likely increasing production by the end of 2019 to 200,000bpd. The expected increase in production is already having a significant positive impact on South Sudan's economy, with thousands of young south Sudanese newly employed by oil operators to contribute in the production increase efforts.

"The government continues to be optimistic about the potential of South Sudan and the investment opportunities for energy industry players here," said Minister Gatkuoth.

"Many young South Sudanese look at our oil industry for training, empowerment, innovation, and not just any job but good jobs. The oil industry will continue being the largest investor in the country and therefore has a special responsibility to work with the government and all South Sudanese to ensure that the resources benefits every South Sudanese."

Dangote, Chevron Nigeria Sign Historic Agreement On Gas Supply

Dangote Fertilizer Limited has entered into a long-term agreement with Chevron Nigeria Limited (CNL) for the delivery of Natural Gas from Chevron's supply portfolio to the fertilizer plant, which is poised to start operations soon.

The contract, under the Gas Sale and Aggregation Agreement (GSAA) is part of International Oil Company (IOC)'s gas obligation to the domestic market through the Gas Aggregation Company Limited (GACN).


The signing ceremony, held at the Department of Petroleum Resources (DPR) office in Lagos, was executed on behalf of the parties by Group Executive Director, Strategy, Capital Projects & Portfolio Development, Dangote Industries Limited, Devakumar Edwin; Chairman/Managing Director, Chevron Nigeria Limited (CNL), Jeffrey Ewing; Head, Gas Monitoring & Regulation Division, Department of Petroleum Resources (DPR), Sanya Bajomo; and Managing Director/CEO, Gas Aggregation Company Nigeria Limited (GACN), Engr. Morgan Okwoche.

Dangote Fertilizer Limited, which is ready to be commissioned before the end of this year, will produce 3.0 million metric tonnes per annum (mmtpa) of Urea.

The fertilizer plant consists of twin train, with each single train having a capacity of 1.5 million tonnes per annum of Urea and Ammonia, which makes each of them the largest train available in the world. Hence the total capacity of the plant is 3 million tonnes per annum, and it sits on an area of 500 hectares.


Speaking at the signing ceremony, Group Executive Director, Strategy, Capital Projects & Portfolio Development, DIL, Devakumar Edwin, commended the Managing Director of GACN for his role in the new business relationship between Dangote Fertilizer Limited and Chevron Nigeria Limited.


He said the company is looking forward to having a long-term relationship with Chevron Nigeria Limited as well as synergies in other upstream and wider areas of operations in the oil and gas sector.


Chairman/Managing Director, CNL, Jeffrey Ewing commended GACN, DPR for helping with the signing of the gas supply agreement. He said: "We are looking forward to working with Dangote Fertilizer and maintaining a good relationship with the company. This agreement is very important for the country and Chevron is committed to Nigeria's economic development."


The Managing Director/CEO, GACN, Morgan Okwoche, expressed delight to be part of the domestic gas agreement. "This is the beginning of fruitful relationship between Dangote Fertilizer Limited, Chevron Nigeria Limited and other parties. I am excited that this is happening during my term in office. You cannot imagine my satisfaction in having this contract signed at this time," he said.


Head, Gas Monitoring & Regulation Division, DPR, Sanya Bajomo, said: "I am glad that GACN, Chevron and Dangote have signed this gas supply agreement. I want to say that this gas supply agreement is an issue of national interest and what happened today is going to be transmitted to the presidency. I believe everybody is going to benefit from this agreement when the fertilizer plant starts operation."

Oil & Gas Leaders Unpack South Africa's Massive Gas Discovery

The African Energy Chamber (AEC) hosted senior industry leaders at a breakfast event under the title, "The role of indigenous Oil and Gas resources in Developing South Africa's economy." Participants came from international oil companies, local and internationally operating services companies and the public sector.

Hot topic on the discussion with the Chamber was how Total's recent offshore gas discovery could be best harnessed for the benefit of South Africa's local companies and the economy at large.

Speakers featured Niall Kramer, CEO of the South African Gas Alliance (SAOGA), Petroleum Agency South Africa's Resource Evaluation Manager Dave Van de Spu, the Department of Trade and Industry's Director of Up and Midstream Oil & Gas Kishan Pillay and AEC's Senior Vice President Verner Ayukegba amongst others.

Advising on regulatory framework and oil investment matters, Centurion Law Group CEO and AEC Executive Chairman NJ Ayuk said the natural resources story in Africa doesn't always have to be the same. "South Africa has a great opportunity to get it right and make oil and gas work for everyone. Gas monetisation is key to development and job creation. 

Policy makers have a huge role to play and a lot of good deals will be done for local companies. We hope field development plans will not be delayed and a quick offering of more oil blocks to explorers like ExxonMobil, Eni and others to drill will be good for the industry and the country," he elaborated.

"These changes to the oil industry and opportunities in South Africa will take centre stage at the October 2019 Africa Oil and Power event in Cape Town."

The South African government is currently working on new legislation that will amongst other things separate oil and gas legislature from traditional minerals. This according to SAOGA CEO Niall Kramer is likely to be ratified this year.

"We want predictability and an enabling environment that allows our members to attract investors and supply the industry with the necessary services in demand. We need to be open and accommodating to international skills," he said on the upcoming amended policy regulations.

Amidst the thought-provoking discussions around South Africa's current infrastructure, production forecast, local content policies and regulations, Kishan Pillay, Director: Up and Midstream Oil & Gas (Dti) implored for time to put in the right kind of regulatory framework.

"The word nascent is very important. What we must understand is that places like the USA have developed their gas industry over decades. If we are serious about gas moving forward, we need to make sure it's done properly over the long-term."

South Africa released a new Integrated Resource Plan (IRP 2018) to install an additional 8,100MW of gas-to-power capacity in South Africa by 2030

Oranto Petroleum Increases Education Support In South Sudan

As part of its commitment to the socio-economic development of South Sudan, Oranto Petroleum will be financing an educational programme in conjunction with the Ministry of Petroleum, to provide training to 25 teachers in the most under-privileged parts of the country.

The support from Oranto Petroleum paves the way for 25 teachers to receive quality training that will benefit 60,000 children across 30 villages in Yirol, in South Sudan's Eastern Lakes State. The program will run for a 5-year period and is expected to have a considerable impact on communities in the State, which is amongst the poorest of the country.

It will be implemented by Action for Intervention and Management (AIM), a non-governmental organization that works to provide quality education to the most under-developed parts of South Sudan.

"At Oranto Petroleum, it is our firm belief that supporting teachers in their professional development leads to improved outcomes for learners. Good quality training is an essential part of a teacher's professional life and it is going to help so many children," said Prince Arthur Eze, Executive Chairman of Oranto Petroleum.

"In South Sudan and across Africa, too many children have not had the utmost access to an excellent education. I am happy this program will start addressing this issue and closing the gap especially with young girls. Oranto will continue supporting what catalyzes leadership to make educational equity a reality," added Prince Arthur Eze.

Oranto's support to the programme is in line with the company's policy to significantly engage local capacities in all its activities in South Sudan and promote the development of social infrastructure. The company already awarded last year a contract for the construction of two primary schools in Yirol and Rumbek, at an estimated cost of over $800,000. The construction of the schools is being executed by local construction company Dynamic Supplies and Construction Limited, in line with Oranto's commitment to mobilise local human and material resources in all its activities in the Republic of South Sudan.

"The South Sudanese oil industry can never be at its best without qualified citizens to take up roles across the full value chain. Earning a qualification is not enough for teachers to continue to grow, develop and evolve," declared Ezekiel Lol Gatkuoth, Minister of Petroleum of the Republic of South Sudan.

"For South Sudan to reach its true place in Africa, we have to invest in education and great students are the result of great teachers and it is therefore essential to empower and support teaching professionals throughout this country and I am thankful to Oranto Petroleum and implore on other oil companies in the country to do the same," added the Minister.

Oranto, and its sister company, Atlas Petroleum, comprise Africa's largest privately held, Africa-focused exploration and production group, with 22 licenses in 11 jurisdictions, including producing assets in Nigeria and Equatorial Guinea. In late May, Oranto agreed to work with Rosneft, Russia's largest oil producer, on the development of 21 oil assets in 17 African countries.

Oranto acquired Block B3 South Sudan in March 2017 and has since both engaged in unprecedented fast pace exploration activities on the Block and demonstrated significant interest in delivering oil and gas asset development in South Sudan ahead of schedule and in a most cost-effective manner. Oranto completed data acquisition on Block B3 in the second quarter of 2017 and is currently in the data interpretation stage.

Tanzania Wants Dangote To Invest In Country’s Oil Industry

Tanzania’s High Commissioner to Nigeria, Muhidini Ally-Mboweto, has sought the assistance of the President, Dangote Group, Aliko Dangote, in the development of his country’s oil and gas industry, Nigeria’s Punch Newspaper reported.

Ally-Mboweto led a delegation from Tanzania High Commission and the Tanzania Petroleum Development Corporation on a study tour of the Dangote refinery and fertiliser plants to seek collaboration between Dangote Group and the Tanzanian government in making the country self-sufficient in petroleum products, according to a statement from Dangote.

Ally-Mboweto was quoted as saying, “Tanzania possesses vast natural resources and is endowed with unique comparative advantages, thus offering exceptionally attractive opportunities to investors.”

According to him, Tanzania has gas, gold, diamonds, and gemstones including tanzanite and base metals. He said the country had bilateral trade agreements with eight countries including the Indian Ocean, describing them as potential markets for investors.

Ally-Mboweto said, “Tanzania has a politically stable economy; it is surrounded by eight countries and six are landlocked; so their ports depend on Tanzania. Also, we are a member of the East Africa Community, which include Burundi, Kenya, Rwanda, Tanzania, and Uganda. We are also part of a 16-country member with an average of 400 million people. So, when you invest in Tanzania, you are exposed to this huge potential.

“It is really worth investing in Tanzania because it will expose you to a large market. We want him (Dangote) to expand his investment in other areas of the economy. We have varieties of minerals, diamond, gold and other areas. You can invest in wildlife. We also have a lot of tourist attractions.”

He commended Dangote for helping to reduce the price of cement in Tanzania through his massive investment in the country’s cement industry.

“Dangote Cement is already in Tanzania and the plant is doing very well. So, the Dangote Cement plant has made a huge contribution to our cement demand. Now, the majority of the people in Tanzania can access cement for their building construction,” he added.

Equatorial Guinea Takes Decisive Step Toward Joining EITI

In a significant move toward joining the Extractive Industry Transparency Initiative (EITI), Equatorial Guinea received the official backing of the EITI International Secretariat on Friday.

The endorsement follows a decade of efforts by Equatorial Guinea to join the initiative, which seeks to address key governance issues of transparency and accountability in the extractive sectors.

Support of the country and its efforts to join the EITI was extended in a meeting between the Delegation of the EITI National Commission of Equatorial Guinea and the EITI International Secretariat held on February 15.

Equatorial Guinea made a decisive step toward joining the Extractive Industry Transparency Initiative (EITI) in Oslo, Norway on Friday February 15 2019, receiving the endorsement of the EITI International Secretariat and establishing positive bilateral relations between the two parties.

Having initially applied for membership in the organization in 2008, Equatorial Guinea has since instituted several reforms to take part in the global initiative.

"Membership of the EITI would represent a milestone for the country, and a critical step forward in its path toward greater transparency and improved governance and management of its extractive resources sector."  said H.E. Gabriel Mbaga Obiang Lima, the Minister of Mines and Hydrocarbons.

It continues to be my firm believe that our membership in the EITI will lead to a more attractive investment climate and an increase in foreign direct investment in the energy and non-energy sectors. added Minister Obiang Lima

In a meeting between a delegation from the Extractive Industries Transparency Initiative (EITI) National Commission of Equatorial Guinea and the EITI International Secretariat, the National Commission provided a letter of intent for its membership in the initiative, along with a detailed report on the status of Equatorial Guinea in its process of adhesion to the EITI standards, which outlined all of the improvements and efforts carried out by the country since its last attempt to join the organization.

Equatorial Guinea, through the Minister, reaffirmed the country's commitment to joining the EITI and comply with the requirements of being a member. On behalf of the International Secretariat, its Executive Director Mark Robinson expressed support of Equatorial Guinea and its efforts to become part of the EITI.

Implemented in 52 countries, the EITI serves as a global standard for the responsible governance of oil, gas and mineral resources, and seeks to strengthen key public and corporate governance issues of transparency and accountability by requiring the disclosure of information along the extractive industry value chain.

Deep Petroleum Industry Reforms Set Angola On Path To Growth In 2019

Reforms span from changes in tax law to changes in concession contracts and the opening of marginal fields to African independents.

Key measures include the formation of upstream and downstream taskforces, the privatization of some Sonangol subsidiaries, and the creation of a new regulator to manage concessions. The measures are already attracting interest from investors and establishing confidence in the administration.

Angola's economy is set for recovery in 2019, in large part due to a series of regulatory reforms opening the country to new investment.

Since entering office in 2017, President João Lourenço has focused on cleaning up corruption and implementing aggressive reforms to transform the oil and gas sector and the economy.

The reforms, which span from deep changes in tax law to changes in concession contracts and the opening of marginal fields to African independents, have hit the books just as the oil price is stabilizing, and Angola is already attracting new interest from investors.

Lourenço has made key appointments to shift the trajectory of the oil and gas sector, notably naming Diamantino Azevedo the new Minister of Mineral Resources and Petroleum. The Ministry of Mineral Resources and Petroleum quickly put together a task force comprised of both international and domestic stakeholders, including the Ministry of Finance, the Office of the President, Sonangol, BP, Chevron, ENI, Esso, Equinor, and Total. The task force has proposed improvements in several areas, including: simplifying the oil concessions management process; implementing incentives for investment in marginal fields; and creating a natural gas regulatory framework.

By December 2018, several new laws have been enacted, including:

  • The Natural Gas Regulatory Framework, which establishes policies for the monetization of natural gas (both associated and non-associated gas) in existing and new concessions;
  • Incentives for investments, which vary from tax reforms to contract reforms, to encourage economic exploration and development of natural resources;
  • Improved terms to better allow for exploration within development areas in existing blocks.

Considered one of the most important changes to Angola's oil and gas sector, an independent regulator has been created to manage the country's oil and gas concessions, which were previously handled by the state-owned Sonangol.

The National Oil and Gas Agency is the new granter and manager of concessions in a complete restructuring of the management of Angola's oil and gas industry. The move is designed to improve transparency, attract new investment and increase output.

The reforms have also addressed the downstream sector. The government has created a task force to focus on downstream issues, similar to the upstream task force.

The taskforce teams will focus on what is needed to build a high conversion refinery in the Lobito municipality and a refinery in Cabinda. Eight companies have already been pre-selected for the Lobito refinery and seven selected for the Cabinda refinery. Angola currently imports about 80 percent of its refined petroleum products.

The measures appear to be working — the World Bank's economic outlook for Angola released in December 2018 predicts GDP will grow by 1.7 percent in 2018 and 2.2 percent in 2019 — the first time the country will have seen positive growth since 2014. An improved investor environment is listed as a cause for the improvement.

Mega oil and gas projects have achieved final investment decision since 2018, and several more are headed for FID in 2019 and 2020. A new licensing round is expected to attract new international explorers to the country, as well as promote the participation of Angola's domestic sector by offering incentives for marginal fields.

Centurion Best Oil & Gas Law Firm In Equatorial Guinea

Chambers & Partners has once again ranked Centurion as a Band 1 law firm in Equatorial Guinea. Chambers Global 2019 calls Centurion "a top firm in the market and are very well respected in the oil and gas industry".

Chambers further states that Centurion is "a dominant firm in Equatorial Guinea with a market-leading natural resources practice. The team acts for public and private clients in the oil and gas sector and is involved in a number of the major projects in the country. Interviewees are quick to highlight its broad network of offices across Africa and capability in handling large transactional mandates." 

Centurion is the only independent law firm ranked in Chambers' Band 1 in Equatorial Guinea, recognising the contribution the firm has made to the energy sector and the firm's impressive track record in advising on oil and gas deals.

"It is a great feeling to be acknowledged by local and international peers, in an industry like ours where hard work and getting recognition means everything to our firm's leadership and our clients," commented Anselmo Eworo Milan, Senior Associate Attorney of Centurion Law Group.

"We continue to feel blessed to be the firm of choice to leading oil companies, service companies and the public sector in the country as they continue to seize growing market opportunities in Equatorial Guinea. We are where we are because most of us were trained and developed  by Centurion in some of the best institution in Europe and the USA. It has made a difference in our work ethic and output."

The legal directory also gave the CEO of the firm, NJ Ayuk, a Band 1 ranking. Chambers continues, "Firm CEO NJ Ayuk is a pre-eminent figure in the hydrocarbons sector and writes widely on the industry. He is frequently mandated on oil and gas deals, acting for the government and private clients, and is noted for being "involved in the country's most important transactions." Among other matters, he provides high-level advice on concessions, PSAs, drilling contracts and LNG projects." 

In recent years, Centurion has been involved in Equatorial Guinea's most important energy and business transactions, acting as advisor to the leading operators in the country for the preparation and negotiation of their PSCs, and combining downstream gas monetization strategies for producers looking to increase supply integration.

The firm continues to partner with Equatorial Guinea as it rolls out its Year of Energy 2019, including the upcoming APPO CAPE VII Congress and Exhibition taking place in Malabo, from 2-5 April, and the Gas Exporting Countries Forum, featuring ministers and heads of state from all GECF nations on 26-29 November 2019.

We are in a race with time to unlock Africa's full potential – Akinwumi Adesina

2019 Sunhak Peace Prize Laureate Akinwumi Adesina has pledged to do more to advance Africa's fight against hunger, poverty and youth underemployment.

The President of the African Development Bank, and co-Laureate Waris Dirie, a global champion against Female Genital Mutilation, shared the prestigious US $1million dollar prize at an award ceremony held on 9 February 2019 in Seoul, South Korea.

According to Adesina, "We are in a race with time to unlock the full potential of Africa." Known globally for his dogged determination to reduce global poverty, Adesina declared "My life is only useful to the extent that it helps to lift millions of people out of poverty."

Adesina immediately announced he was donating his $500,000 share of the prize to fighting hunger in Africa.

"There is tremendous suffering going on in the world. While progress is being made, we are not winning the war on global hunger. There cannot be peace in a world that is hungry. Hunger persists in regions and places going through conflicts, wars and fragility. Those who suffer the most are women and children," Adesina said during the award ceremony.

Waris Dirie, has played a leading role in drawling global attention to the fight and against Female Genital Mutilation (FGM), and the need for legislation to ban the practice.

Dirie said, "Female Genital Mutilation scars victims physically, emotionally, and mentally."

The World Health Organisation estimates that more than 200 million girls and women alive today have been cut in 30 countries in Africa, the Middle East and Asia where FGM is carried out on young girls between infancy and the age 15. 

Adesina who believes a peaceful world will be a food secure world, pointed out that only 1% of the world's richest own 50% of global wealth.

"Nothing is more important than ensuring that we feed the world and eliminate hunger and malnutrition. Hunger is an indictment on the human race. Any economy that claims growth without feeding its people is a failed economy. Nobody has to go hungry, white, black, pink, orange or any colour you can think."

The President of the African Development Bank told participants including global leaders:

"There must be accountability to the poor. We must reduce global income inequality. We need wealth, yes, but we need wealth for everyone not just a few. Today, the poor are stuck and only end up eating crumbs, if any at all, that fall from the tables of the rich.

This sense of exclusion and lack of equity or fairness often drives conflicts. We have an opportunity to reverse the situation through sustainable agriculture as a business, and not as an aid program."

More than 1,000 influencers from over the world including current and former heads of state and government, private sector leaders, investors, and development experts, attended the SunHak Peace Prize

and the Peace Summit of Global Leaders. Each year, the SunHak Peace Prize honours  an individual or organisation making significant contributions to global peace and the welfare of mankind.

African Oil Industry Endorses Cape Vii Congress In Malabo

Calls for a pragmatic common-sense approach towards local content. Improved business climate will attract more investment and create sustainable jobs for Africans. The African Energy Chamber is proud to endorse the APPO Cape VII Congress and Exhibition to be held in Malabo on April 2-5, 2019.

Hosted by the African Petroleum Producers Organization under the Auspices of President Obiang Nguema Mbasogo, the summit will include a first-level meeting of oil ministers from the four corners of the continent, at a time when Africa is trying to boost its energy cooperation and promote infrastructural collaboration.

Current APPO President, Nigerian Petroleum Minister Dr. Emmanuel Ibe Kachikwu, announced last month that the organization would mobilize up to $2bn to promote such collaboration across African oil markets.

"The oil industry is proud to support African oil nations as we desperately need to speed up our collaboration efforts and develop joint projects to maximize efficiency across the value-chain.

From transnational pipelines to shared gas development infrastructure, collaboration can play a considerable role in boosting hydrocarbons developments," declared the Chamber's Executive Chairman NJ Ayuk. "We must do everything to improve the business climate by embracing better governance, limited government's role in business activity, low taxes, and regulatory efficiency."

The Congress will also be central in promoting, and advocating for, a stronger African content throughout the value chain. APPO plans to achieve a 30 percent share of local content services provided to the African hydrocarbons industry by 2030, which requires harmonizing local content laws and regulations across oil jurisdictions.

"Local content is at the core of Africa's energy industry future. Without increased dialogue between the oil industry and governments, the regulatory frameworks needed to build local capacities cannot be properly implemented," added NJ Ayuk.

"We congratulate APPO on making such strong commitment to the African content. The oil industry is ready to share with APPO members best practices that have worked and delivered results and opportunities that improved the quality of life of everyday Africans through jobs."

The APPO Cape VII Congress & Exhibition is organized by Africa Oil & Power and is part of Equatorial Guinea's Year of Energy 2019, which will also see the organization of the Gas Exporting Countries Forum's 5th Gas Summit in Malabo next November. The African Energy Chamber is a strategic partner of the APPO Cape VII.

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