OGR July - August Edition 2020

Expert calls on Nigerian oil firms to explore opportunities
in Equatorial Guinea, Mozambique, others
Af r i c a n E n e r g y C h a m b e r
E x e c u t i v e C h a i r m a n , N J
Ayuk, has called on Nigerian oil
and gas services firms to take
advantage of opportunities in
Equatorial Guinea, Mozambique and
other Africa countries post COVID-19.
Ayuk made the call during Majorwaves
Energy Report webinar, which focused
on the topic,”Optimising Local Content
through Regional Integration in a post
COVID-19 Africa.”
The webinar focused on identifying
opportunities across Africa for built
capacity and capabilities; the flow of
capital, formation of JV towards big
ticket projects; practical solutions to
challenges with integrating businesses
across national boundaries; optimising
bi-lateral and multilateral trade
agreements across regions, leveraging
technology in a post Covid-19 era
across the continent; and comparing
National Content legislation of
individual countries and provisions for
African Energy Chamber Executive Chairman,
NJ Ayuk
MAJORWAVES WEBINAR
By Ndubuisi Micheal Obineme
collaboration and dispute resolutions.
While speaking about the importance of
regional integration in a post COVID-19 Africa,
he said that the African Continental Free Trade
Agreement (AfCFTA) would be pivotal in this
regard, but lament Evy Maffini on the difficulty it will face if
the local content laws of participating countries
were not harmonised.
He gave example using Nigeria, which has
competent services firms, who cannot operate
in fellow African countries because of local
content laws; and asked Nigeria to lead the
campaign for regional content law.
According to him,”In the last two years, there
has not been any major project in Africa.” He
then called on Africa oil producers to make their
fiscals competitive, so as to attract big projects.
The AEC Chairman, who noted that equity
investment will not be in the best interest of
African countries in the oil and gas industry post
COVID-19, also lauded the Nigerian Liquefied
Natural Gas (NLNG), describing it as one of the
most successful LNG in the world.
Uganda’s Albertine Graben Open for Investment - Peninah
Peninah Aheebwa, Director of Technical
Support Services Petroleum Authority,
Uganda, has said that the Albertine
Graben is open for investment and there are
currently three active exploration licenses
given to Armour Energy and Oranto Petroleum.
By Ndubuisi Micheal Obineme
projects. They are ready for Final Investment
Decision but what is holding it is a few
commercial issues which we are discussing with
the IOCs. As soon as we have finalised on that,
the FIDs will be taken anytime soon.
She disclosed this during an extensive
discussion at Majorwaves First Webinar Series
titled: "Optimising Local Content through
Regional Integration in a Post COVID-19 Africa,"
held on June 10, 2020.
Peninah noted that Albertine Graben is
Uganda's most prospective basin and only 10%
license has been issued while 90% is
unlicensed. She further explained that before
the COVID-19 Pandemic, Uganda has been
doing very well in terms of its economy growth
which stood at 6.5% and the country's GDP
stood at $34 billion in 2019.
According to her, there are about 21 oil and gas
discoveries in Uganda's oil and gas industry
with an unprecedented drilling tax rate of about
88% and a resource base of around 6 billion
barrels of oil in place.
She continued: "Uganda have issued over 14
licenses to CINOOC, Total, Tullow among
others. While the country is estimated to have
about 1.4 billion barrels of recoverable
resources.
Peninah Aheebwa, Director of Technical Support
Services Petroleum Authority, Uganda
“There is an ongoing licensing round in Uganda
for up to 5 blocks that was launched in 2019 till
September 30th, 2020.
"The blocks are attractive as we currently have
up to 6 investors that have shown interest. But,
we are encouraging investors out there to take
advantage of these blocks.
"Some of our projects that have moved into the
development phase are Tilenga, Kingfsher
"Again, we have another categories of projects
which is the monetisation project. We will be
using some of our crudeoil that will be refined incountry
to add value, meet the energy needs of
our country and region at large.
"The refining project was conceived in East
Africa Community (EAC). It was a collective
agreement within the region for the
establishment of a Mega Refinery and Uganda
was identified as an area where the refinery
should be built because of the proximity of
discoveries we have in the region.
"There is work in progress in the refinery such as
the FEED development. And, within the next 12
- 24 months we should be seeing the FIDS for
the refinery as well.
"For the East African Crudeoil Pipeline, it is
going to be the longest crudeoil pipeline in the
world. It is unprecedented and the technical
work is done and soon we will make FID.
"Generally, these are the projects we have Post
COVID-19. And, the estimated CAPEX is $7 to
$10 billion within 3 - 5 years."
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OIL AND GAS REPUBLIC I SPECIAL EDITION