Ophir Energy plc Annual Report and Accounts 2011

04
Ophir Energy plc Annual Report 2011
Chairman’s and Chief Executive Officer’s
Joint Review continued
At the heart of our Company is a small yet dedicated
and extremely professional group of staff and
associates who have consistently delivered
outstanding performance.
In Tanzania, Ophir has continued
to be actively involved in the
development of Mtwara port
(and its attendant services). Ophir
was responsible for the initial
development of this facility in
partnership with the Tanzanian
authorities. In 2011 the port
development scheme expanded
rapidly as more oil and gas operating
companies joined Ophir, resulting
in the transformation of a previously
underutilised port into a thriving
operations base which has
subsequently received ‘Duty Free’
status to underscore its importance
to the development of the Mtwara
region. There has been a large
positive impact in the local economy
as the community shares in this
development through training,
employment and improved
infrastructure. In December 2011,
parts of the main city of Dar es
Salaam suffered severe flooding,
making many citizens homeless.
Ophir assisted relocation efforts
by swiftly donating 30 large water
storage tanks to the victim’s
resettlement site. This initiative
secured adequate sanitation and
was vital to reduce disease risk for
the flood victims whilst in their
temporary accommodation.
In Equatorial Guinea, Ophir continued
its support of a nursery school in
the village of Ebein Yenkeng. The
Group also donated funding for a
training seminar on social content
which was provided to members of
the Ministry of Mines, Minerals
and Energy (“MMIE”) in Malabo. In
addition, Ophir contributes to the
Equatorial Guinean Hydrocarbon
Technological Institute Educational
Programme (“ITNHGE”), a
collaborative educational initiative
run for the benefit of adult
students in Equatorial Guinea.
Outlook
The oil and gas industry’s focus
on African exploration has risen
dramatically in 2011 and early 2012.
The pace of activity on both the
East African offshore gas play and
the West African pre-salt play have
increased as major oil companies
have entered the region and made
significant discoveries. This has
had important implications for
Ophir’s portfolio.
In the East African gas play Anadarko
and ENI are reported to have
discovered more than 40 TCF of gas
in Mozambique with the majority
being found in extensive basin
floor fans. This play has not yet been
tested in Ophir’s Tanzanian acreage
but it is thought to potentially
extend into Block 1 and possibly
Block 3. A new 3D seismic survey is
currently being acquired in Block 1
to test this concept and initial results
are anticipated mid-year.