Earth Finds

Earth Finds

Sudan Sudan Official Advises Uganda To Explore For More Oil

Dr Chol Deng Thong Abel, chief executive officer Nile Petroleum Corporation has urged Ugandans to take bold steps in joining oil and gas exploration and production in-order to learn.

Dr Deng said like in South Sudan, Ugandans have to create joint operating companies (JOC) with international oil companies. He explained that JOC should have president who is foreign, human resource, health safety and environment positions should be taken by locals

“Money has to be fund government’s share in the JOC. When they go for stratigraphic studies led by the expatriates, the nationals will walk with them and learn and grow”, Dr. Dengl said.

Uganda National Oil Company (UNOC) Ltd and China National Offshore Oil Company (CNOOC) signed a Memorandum of Understanding (MoU) to open a partnership in exploration in the Albertine Graben.

The function took place on 5th September 2018, Beijing, China. The MoU which was signed by Dr. Josephine Wapakabulo, CEO UNOC and Fang Zhi, the Chairman of CNOOC international and was witnessed by President Yoweri Kaguta Museveni, Mr. Sam Kuteesa, Minister of Foreign Affairs and Mr. William Byaruhanga, Attorney General.

Government of Uganda is in the process of commercializing the crude oil discoveries made in the country, currently estimated at 6.5 billion barrels, of which 1.2 – 1.7 billion barrels is recoverable. The commercialization options include development of a refinery, a crude oil export pipeline and crude for power generation.

The MoU indicated that UNOC and CNOOC will work together to develop a block in the Albertine Graben in Western Uganda. This implies that more crude oil  shall be discovered to support the projected production profile of already discovered resources that are under development as well as to create an avenue for UNOC to grow its exploration capabilities and begin its journey towards a fully-fledged oil company able to perform operatorship roles.

UNOC and CNOOC will kick-start the process of applying for the identified block and start exploration activities as soon as the Ministry of Energy and Mineral Development grants them a license. This partnership is expected to further open up opportunities within and outside of Uganda.

UNOC hopes to rely on CNOOC’s experience as a national oil company to grow its capabilities and expertise. However unclear funding sources to this activity by Government might delay the progress.

The former executive secretary of the Nigerian Content Development and Monitoring Board Dr Ernest Nwapa recently urged Uganda to ensure that substantial activities in the oil and gas sector are done within the country to promote local participation that enables the growth of local industries, employment creation and value addition.

Dr. Nwapa in a key note address at a local content stakeholder dialogue held at Hotel Africana said Uganda should promote and put into regulations the principle of domiciliation. Domiciliation is the act of making a particular country the legal place of business for companies.

“We want the oil companies to domicile activities in Uganda, when you allow work to be done outside your country you deprive people opportunities to innovate to get jobs; you create those same opportunities for others. How will you train your mechanical engineers if they do not get experience on the shop floor,” Dr. Nwapa said.

Dr. Nwapa noted that when the idea of domiciliation was mooted there was an outcry that businesses would be frustrated and that there was no local capacity. He said nearly all activities in the oil and gas sector can moved from abroad and done locally whether it is welding, fabrication, engineering designs and maintenance.

He said Uganda has made a case for local content and strong government support for implementation is very important. Investing in local content is not just good for nationalist favour but it is good for business. He added that a key principle in promoting local content was domiciliation.

He asked Ugandans to look at the history of Nigeria where he said since 1956 when commercial oil exploration commenced in Nigeria, until early 2000, the Nigerian oil and gas industry had not made a substantial trickle- down effect on its economy, especially in its contribution to GDP.

“The industry was inundated with a number of factors which prevented it from having the desired impact on Nigerians and the Nigerian economy. Materials and equipment were sourced from foreign countries, fabrication of key components were done abroad, engineering design were carried out abroad, there was little local value addition, no job creation and core skills resided with foreigners,” Dr. Nwapa said.

Securing The Smart Energy Revolution In Africa

The potential of the Internet of Things (IOT) to make consumers' lives more convenient is well-documented. One area in which it can deliver immediate benefits and significantly change how a household or company in Africa manages and keeps track of its energy use is smart metering. 

Rather than rely on estimated energy use to calculate bills, or physically visit customers' homes to take meter readings, a smart meter allows energy suppliers to have a real-time view of a household's or business' energy consumption – resulting in more accurate billing.

Smart metering systems also open up opportunities for better management of the demand and supply of energy. Utilities can track energy which is stored and available for purchase for other players who are in demand. Today's systems no longer rely on just fossil fuels, but also on renewable energy, that more and more parties produce and sell, when not using it for their own consumption. 

Africa and the Middle East are now seen as the next frontier for the implementation of this technology. Africa, in particular, is experiencing massive population growth combined with growing economies in many countries. Electrification is obviously a key driver in this kind of development and, as with other technological implementations, Africa is in a position to adopt new technologies immediately because it has few legacies. 

Figures from ABI Research support the view that Africa is beginning to leap onto the smart metering bandwagon. Figures show that smart meter shipments to the Africa/ Middle East region are predicted to grow at a compound annual growth rate of 36.6 percent between 2011 and 2022. Revenues of companies involved in smart metering are set to grow by an equivalent 35.4 percent over the same period. 

The installed base of smart meters with cellular connections will grow by 29.1 percent (GSM/ GPRS) and 71.2 percent (WCDKA), but off a very low base. As with any connected device, there are security considerations with smart metering. And since energy grids are critical national infrastructure, robust protection is paramount. 

A highly-motivated cyber target

National energy infrastructure is a prime target for cyberattacks, and the consequences can be devastating.  Black outs across entire countries, access to personal data and even to nuclear power plants make the smart energy ecosystem very attractive to cyber actors.

Smart meters and smart grids present many potential routes of attack for criminals, which must be protected. This is why governments around the world are responding with initiatives that mandate specific protection protocols for smart grid deployments. Non-compliance could prevent access to the marketplace or lead to costly fines. 

Smart meters have a long product lifecycle

Smart meters are not just installed for a couple of years and then updated – the intention is for them to last as long as 10-15 years. This means that advanced security processes need to be in place to replace ageing keys and to enable remote credential management, along with strong encryption and authentication tools to ensure that only authorized parties can access the energy assets and their data. 

Smart meters can also be very difficult to access. Deployments are very wide – spread out over an entire country or even further – while the devices themselves are put into walls, behind locked doors or in physically remote locations such as mines or offshore sites.

These make regular maintenance visits difficult, time consuming and costly. For these reasons, the ability to remotely monitor smart meters appear as crucial, to continuously protect the ecosystem in the long-run. 

A dynamic market

Lastly, the energy market changes quickly. New entrants join the market frequently, while others disappear. The smart meter ecosystem has thus to be configured so that only authorized organizations and applications have access to metering data, and that changes to access can be applied instantaneously, whenever needed. As smart meter manufacturers might not be IoT security experts, partnering with digital security specialist firms can avoid putting AMIs (Advanced Metering Infrastructures) at risk. 

It's clear that the smart meter market is set to grow significantly across Africa in the near term. There are several market drivers behind this, such as theft and revenue protection, rising urbanization rates, improved operations among others.

With this rise, comes the need for governments to understand end-to-end security of the smart energy ecosystem and the dedicated solutions available that provide encrypted keys and hardened key storage into smart meters – right from the manufacturing steps, as well as throughout the lifecycle of the smart meters.

  • Published in Energy
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CNOOC To Miss 2018 Capital Expenditure Target

China National Offshore Oil Corporation (CNOOC) reveals that it is set to miss this year’s capital expenditure target of $11bn for 2018 due to the deferral of some projects, the companies Chief Finance Officer Mr. Xie Weizhi said during a third quarter results briefing in China, according to Chinese media outlets.

There was good news for CNOOC though; in the third quarter of 2018 - the Company's capital expenditure increased by 29.6 percent Year on Year to approximately $2.1bn, mainly due to the increase in development and production workload.

Mr. Weizhi said that with plentiful cash in hand, CNOOC would instead focus more on the development of existing assets in domestic and overseas markets than acquiring new assets. "Projects, such as the Uganda one, are unlikely to be pushed forward this year," Mr. Weizhi said.

In Uganda, CNOOC has interest in each of the EA 1, EA 2 and EA 3A licenses in the Lake Albert Basin. CNOOC in 2017 completed the front end engineering design or FEED for ground construction and drilling as the operator of EA 3A.

CNOOC reportedly spent $5.22bn over January-September, accounting for only around 50% of the target, although that expenditure was up 9.2% Year on Year.

Mr. Neil Beveridge at Bernstein, a global research company, told S&P Global news agency that CNOOC was expected to start a multi-year growth cycle in 2019, with over 30 projects in the pipeline in both domestic and overseas markets.

CNOOC in a statement said they achieved a total net production of 113.8 million barrels of oil equivalent (BOE) for the third quarter of 2018, representing a decrease of 2.1 percent year over year.

Production from offshore China reached 73.7 million BOE, almost flat from the same period last year. Overseas production decreased 5.4% YoY to 40.1 million BOE, mainly due to the lower production efficiency in the UK North Sea as a result of the preparation work for infill drilling program.

During the period, the Company made four new discoveries and drilled fourteen successful appraisal wells. The new discovery of Luda 4-3 made in offshore China was preliminarily evaluated as a mid-sized oil and gas structure. Successful drilling of Longtail Structure and Hammerhead Structure at the Stabroek block in Guyana further enhanced the asset value and laid a high-quality resource foundation for future development.

On development and production, three out of five new projects planned for this year have commenced production. Dongfang 13-2 gas fields and Wenchang 9-2/9-3/10-3 gas fields are under installation and commissioning, and expected to commence production within the year.

Electricity Kills Hoima Teen Catching Nsenene

By Busiinge George

Peter Talemwa, 16, of Lusaka Middle Kahoora division, Hoima municipality, in Hoima district was Friday killed while catching grasshoppers when he got in contact with naked electricity wires that electrocuted him to death.

Talemwa left home at 11PM in company of his young brother to go and catch the delicious insects without the company and guide of an adult. And when he was electrocuted, his little brother couldn’t help him but rather went and called an adult for help.

Residents told police that Umeme didn’t respond in time when electricity company was informed of the incident. It took the intervention of police for Umeme to switch off electricity. Talemwa’s body was late taken to the municipality mortuary.

Julius Tomanya, the leader of grasshopper traders said many children are chased from the practice but sneak back. Parents.

The chairperson of Lusaka middle zone, Man Swalleh, said condmned Umeme forbeing negligent. He asked parents to be responsible and keep their kids away. Last year, another child in Kiryateete village was killed in a similar manner.

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