petro africa june-issue2011

J u n e 2 0 1 1

ISSN 1757-1383

D e p a r t m e n t s

CONTENTSVOL. 9 ISSUE 4

J U N E2 0 1 1

O n t h e C o v e r

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Combating Pipeline Corrosion

Downstream Focus25

7th Annual Independents Survey & AwardsMonthly Focus

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South Sudan Rallies Displaced

Local Impact39

Technology And SolutionsA Look Ahead at Fracking54Oil SecuritySudan Peace Still in Jeopardy58Book ReviewDancing in the Glory of Monsters60

New Products & ServicesDownhole Monitoring Easier via Emerson

Atlas Copco Introduces One-Piece Retrieval System

Subsea 7: First Commercial Autonomous Inspection Vehicle

Baker Hughes Debuts Next Gen Reservoir Modeling Software

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Mooring installations evolveto increase efficiency

Cote d’Ivoire Overview

Pre-set Mooring Installation

Tunisia Overview

African Focus41

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Petroleum Africa MagazineJune 20112

S a s o l h a s n a m e dDavid Constable thereplacement for formerchief executive PatDavies. Constable is chiefexecutive designate as ofJune 6 and joins Sasolfrom Fluor Corp. wherehe is currently grouppresident, operations.

TransAtlantic Petroleum Ltd. announced thatits board of directors has appointed its chairman,N. Malone Mitchell, III, to serve as thecompany’s CEO effective immediately. Mitchellreplaces Matthew McCann who tendered hisresignation as CEO.

Transocean Ltd.’s board of directors electedJ. Michael Talbert as chairman of the Board ofDirectors, replacing Robert E. Rose, who retiredfollowing the 2011 Annual General Meeting.Victor E. Grijalva also retired after the meeting.Shareholders approved the election of Jagjeet S.Bindra and Martin B. McNamara and Ian C.Strachan as Class III Directors.

OMV has named Gülsüm Azeri as its new CEOfor Petrol Ofisi, its Turkish operation. Azerireplaces Melih Turker who is leaving thecompany. The change is effective from July 1.

Jonathan Lindsay has joined Jee’s managementteam. Lindsey will head up the Aberdeenoffice and be responsible for operations andperformance. Jee has also selected Paul Job forthe position of engineering manager at theAberdeen office.

Sonde Resources appointed Kurt Nelson as itsnew CFO. Nelson has held a number of seniorpositions with oil and gas firms includingAnadarko Petroleum Corp.

Xmos, a JV between Xodus Group and MosBaker, had a number of new appointments.Sam Unuigbe owner of Mos Baker will takeon the role of chairman and his son, OhiozeUnuigbe, will be managing director. Rod McInneshas been appointed operations director of Xmos.

Paradigm has appointed Bruce P. Koch asthe company’s CFO. Koch previously served asexecutive VP and CFO for Cal-DiveInternational.

Bradley Hirst has joinedFerguson Modular Ltd.as the new Middle Eastbusiness developmentmanager. Hirst has yearsof business developmentexperience, primarily inthe Middle East and AsiaPacific regions.

McDermott International shareholders re-elected John F. Bookout III, Roger A. Brown,Stephen G. Hanks, D. Bradley McWilliams,Thomas C. Schievelbein, and David A. Trice,and elected Stephen M. Johnson and Mary L.Shafer-Malicki to the board of directors. Thecompany also reported that Ronald C. Cambreretired from the board. Additionally, McDermottannounced that the board of directors appointedStephen M. Johnson as chairman of the boardand D. Bradley McWilliams as its lead director.

TGS NOPEC appointedRod Starr senior VPAfrica, Middle East, andAsia Pacific. Starr hasbeen with TGS for morethan 10 years and hash e l d a v a r i e t y o fleadership positions inboth the geophysical andgeological businesses.

Foster Wheeler AG has promoted Jon Nield toVP, Project Risk Management Group (PRMG),effective immediately. Nield has been with FosterWheeler for 25 years and succeeds DavidWardlaw who retired May 1.

Circle Oil has appointed Dr. MohamedEl Mostaine as operations manager for CircleOil Maroc Ltd. Prior to joining Circle,El Mostaine was director of petroleumexploration for Morocco’s state-run oil firmONHYM..

John Derbyshire has been appointed presidentof KBR’s Technology business unit. Derbyshiresucceeds Tim Challand who has led the businessunit since its inception in 2007 and is retiringafter 23 years of service to KBR.

Helix Energy Solutions Group, Inc. haspromoted Cliff Chamblee to executive VP ofContracting Services.

Terry Jbeili has joined MicroSeismic as itsexecutive VP of operations. Jbeili has over 30years of experience in international operations,including some time in North Africa.

Charles O. Boamah, a Ghanaian, has beenappointed as a vice president of the AfricanDevelopment Bank Group (AfDB). Boamahhas been with the AfDB since 1996. Hisimmediate past position with the bank was asdirector and controller.

Jean Huby has been appointed executive VPof the AREVA group of company’s OffshoreWind business. Huby previously served asAREVA’s deputy senior VP of the RenewableEnergies Business Group.

Moving On

To include a corporate personnel announcement in Moving On, write to [email protected]. Preferencewill be given to Africa-specific appointments and to those companies who have interests within the continent;

all others will be included on a space available basis.

Pat Davies

Bradley Hirst

Rod Starr

Paul Tyree

Paul Tyree has beenpromoted to COO ofTotal Safety . Tyreejoined Total Safety in1996 and has served inv a r i o u s s a l e s a n doperations roles.

Philip Tracy, engineeringand operations director atCairn Energy, has beenappointed a non-executivedirector of West Africa-focused Bowleven, withimmediate effect.

Philip Tracy

Recruitment

CA. Oil & Gas

Position: Projeteur Tuyauterie PIILocation: CamerounPosition description: Etude de tuyauterie etencadrement de l'équipe locale. Etudes manuellesà mener sur plans existants.Experience & Education: 10-15 ans- Senior avec expérience de mission dans des

pays africains- Faculté d’encadrement- Grande expérience en révamp d’unité- Maitrise de l’anglais souhaitable.- Excellente lecture des plans de tuyauterie- Connaissance Microstation V8 serait un plusContact: Sébastien Roger, CA Oil & GasTel: +27 21 551 5340 Email: [email protected]

CA. Oil & Gas

Position: Operations Manager - Chemical salesLocation: Congo, Pointe NoirePosition description: Our client is currentlyseeking to employ an Operations Manager fortheir Chemical sales division selling to oil & gascompanies.Experience & Education: 10 years relevantexperience in the chemical Oil & Gas industry.Contact: Eugenio Maggi, CA Oil & GasTel: +27 21 551 5340Email: [email protected]

CA. Oil & Gas

Posição: Tecnico de Recursos HumanosLocation: AngolaDiscrição: O nosso cliente pretende recrutar umTecnico de Recursos Humanos para as suasoperações em Angola. Posição será baseada emAngolaExperiência & Qualificação: 3-8 5.Licenciatura. Bons conhecimentos da lei detrabalho de Angola.Contact: Moises Padre, CA Oil & GasTel: +27 21 551 5340Email: [email protected]

CA. Oil & Gas

Position: Solid Control EngineersLocation: Equatorial GuineaPosition description: Our client is currentlylooking for a Solid Controls Engineer for theirDrilling Waste Management (DWM) department.The position is live-in OR rotational.Experience & Education: 5 years minexperience with relevant qualifications, includingexperience on cuttings/centrifuges.Contact: Eugenio Maggi, CA Oil & GasTel: +27 21 551 5340 Email: [email protected]

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Perhaps you were hoping that I would change the subject to something other than natural gas in thisissue. Good news, I am, but not entirely. I had occasion to attend the World LNG Series, AmericasSummit put on by the CWC Group from May 23-26 where I found a significant amount of attentiondedicated to shale gas, the industry’s new ‘rock star’ as more than one speaker termed it. While itis not surprising that shale gas would receive this focus at a North American conference, it wasthought provoking as regards to how the entire energy trade picture is going to look in the future.

The world’s total shale resources, both gas and oil, are not yet known, but it is clear that the reservesare abundant with some analysts putting current US “technically recoverable” reserves aloneanywhere from 800 Tcf to 2,000 Tcf, and global reserves at 6,500 to 8,500 Tcf. This is clearly agame changer for the future of global oil and gas trade, even at the lower end of the reserves range.How much? Where? How fast will they be developed? These are all questions of imminent importanceand currently the focus of many an analyst discussion. Looking at the proven shale reserves alreadyunder development in the US including Barnett, Eagle Ford, and Marcellus just to name a few, onewould not be off the mark to assume that more development will come pretty darn quick if recentproject timelines are an indicator. This true especially with US interest groups looking to deferdrilling for oil and gas in environmentally sensitive areas like Alaska and with deep water drillingin the Gulf of Mexico all but ground to a halt since the BP GoM disaster. But perhaps the mostimportant driver will be the US consumer’s appetite for fuel to power their fondness for larger, lesseconomic vehicles. For many, the current $4 per gallon gasoline price tag just doesn’t sit right anda transition to shale resources to keep those prices from climbing higher could be the most appetizingthing on the menu since apple pie and ice cream for the Americans; despite the environmentaldevelopment challenges.

More important to Petroleum Africa readers is just where will African resources go with the US(and world) shale boom? Will American companies still invest? What future oil and natural gasprices can be relied upon when looking to further new developments? For the first two questions Ibelieve the answer is fairly obvious, the third not so obvious. There will not be a shortage of buyersfor African oil or gas. There exists huge demand from China and other countries in the East forAfrica’s resources, not to mention the EU, all of which are already competing for African energy.What is most exciting, from my point of view, is that America ‘could’ become a net exporter of gas,potentially giving energy hungry economies an alternate supplier of gas. The EU probably sees thisas a great opportunity to remove the Russian gas noose from around its neck and the East alwaysappreciates greater access to energy. There’s little doubt that established energy trade patterns willchange as the US ramps up its shale production and supplies more of its domestic energy needs,freeing up some previously allocated resources.

And the answer to the next two questions. Yes, of course US companies will still invest ‘when fiscalregimes are attractive and political stability holds course’, they are in the business to make moneyand secure a return for their shareholders. Now for the barrel price; I see it stabilizing somewhatand even beginning a small to moderate decline in relative terms as more of these resourcescome online in the future. Those are my thoughts folks, I would love to hear yours, so please dodrop me a line.

Inside this issue you will hear a bit more about shale gas in our Hydraulic Fracturing feature in theTechnology & Solutions section, but more so about the tremendous progress this technology ismaking to reduce its footprint. The African Focus section features the most recent goings on fromCote d’Ivoire and Tunisia while Oil Security and Local Impact both look at the situation from SouthSudan. And finally, our signature piece of the year, the 7th Annual Independents Survey & Awardsfeatures in the Monthly Focus section; congratulations to this year’s winners! As always, yourcomments are appreciated and can be sent to [email protected].

Message from the Editor

Dianne SutherlandChief Editor

Deputy EditorJennifer Nickle

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Associate EditorLeAnne Graves

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Senior CorrespondentMark Pabst

ContributorsChikezie Nwaoha

Guy BrownLeo Ochira

Operations ManagerAlan Younes

Art DirectorMario Saad

Events CoordinatorBasma Awdan

Circulation ManagerSilvia Rafaat

Circulation CoordinatorAmira A. Wahab

Senior AccountantSaid Adly

Advertising/SalesJina Sellers

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IT and WebsiteJacob M. Sellers

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Petroceltic Spies Gasat AT-5z, Secures RigPetroceltic International completed the drillingof the AT-5z well in Algeria. The well was drilledon Petroceltic’s Isarene Permit and reached atotal depth of 2,421 meters.

The horizontal section of the well, which totaled376.5 meters in the main Ordovician reservoir,will be evaluated by drillpipe conveyed loggingtools. The company said that good gas showswere encountered throughout the reservoir section.A multi-stage completion will be run oncompletion of the logging. The company expectsto suspend the well for testing, with test resultsexpected in June.

Besides the completion of the AT-5z the companysecured a rig for its appraisal campaign on theIsarene Permit. Petroceltic said that it has signeda contract with KCA Deutag for a second drillingrig, a Nomad class drilling rig. The rig known asDeutag T-211 will work alongside the existingDalma Rig LR-12 on the Ain Tsila Field appraisalprogram. The T-211 rig contract period is for upto three wells and, in conjunction with the existingrig, will allow the enlarged program of aminimum of six appraisal wells to be completedbefore the end of 2011, allowing sufficient timefor the submittal of the Final DiscoveryReporton the Isarene Permit to the Algerianauthorities.

The T-211 rig recently completed a program inAlgeria for another operator in the Illizi basinand is expected to commence mobilizing tothe first well location in June 2011, withdrilling operations likely to commence inJuly 2011.

The company also reported that it has signed twocontracts for studies in support of the FinalDiscovery Report. The contracts are with G3BaxiPartnership for field development conceptualstudies and with Ove Arup & Partners for ageotechnical study. Petroceltic believes thesestudies will assist with initial concept selectionand the location of the facilities, infrastructure,and pipelines for the Final Discovery Report.

JGC Wins $213 MillionIn Amenas ContractPartners on the In Amenas gas fields – Sonatrach,BP, and Statoil – awarded Japan’s JGC a contractworth $213 million to aid in maintainingproduction levels on the gas fields.

Under the contract JGC will constructcompression plants at In Amenas aiming to keepproduction at a level of 30 Mmcm/d for the next12 years. Work on the project started in earlyMay and is expected to be completed in Q3 2013.

Total’s Canna-1 Adds to Oil BountyBlock 17/06 offshore Angola produced anotherdiscovery with the drilling of the Canna-1 well.Total reported that its subsidiary, TEPA (Block17/06) Ltd., and partner Sonangol E&P hithydrocarbons in the north-eastern portion of theblock. The Canna-1 was drilled in a water depthof 445 meters and produced at more than 5,000bpd during testing.

Sonangol is the concessionaire of Block 17/06while TEPA is the operator with a 30% stake.Total’s partners on the block are SonangolPesquisa e Producao S.A. (30%), SonangolSinopec International (SSI) Seventeen Ltd.(27.5%), ACREP Bloco 17 S.A. (5%), FalconOil Holding Angola S.A. (5%), and Partex Oiland Gas (Holdings) Corp. (2.5%).

Cobalt Readies to Drill Offshore AngolaCobalt Energy International will be drillingoffshore Angola very soon after plans wereapproved by Sonangol for Block 21. The companywill drill the Cameia-1 and Bicuar-1 pre-saltexploratory wells on the block.

The company said that given the proximity ofthe well locations, it plans to drill the surfacehole of Bicuar-1, move the rig to Cameia-1 todrill and evaluate the prospect, then return toBicuar-1 to drill the well to total depth. Cobaltanticipates drilling operations to commence inQ2 using the Ocean Confidence rig.

Cobalt said that it also expected to receive theformal award of its 40% working interestand operatorship of Block 20 offshoreAngola soon.

ROC Oil Bows out of AngolaROC Oil has sold the remaining 10% stake in itsblock onshore Angola, with effect from April 1.The company’s subsidiary, Lacula Oil Co. Ltd.,agreed to sell its remaining 10% interest in theCabinda Onshore South Block to PluspetrolAngola Corp.

Under the sale agreement Pluspetrol will payROC $5 million subject to working capitaladjustments. The agreement is subject to normal

industry terms and conditions, including thenotification of the joint venture and receipt ofrelevant government approvals.

Dana G Makes FirstGas Discovery of 2011Dana Gas made its first gas discovery of the yearin Egypt. The company announced that the SouthAbu El Naga-2 well on the West El ManzalaConcession, drilled as an appraisal of the SouthAbu El Naga Field, encountered 16.6 meters ofnet pay in the Abu Madi formation, thus extendingthe field.

The company said that in addition to thehydrocarbons encountered in the Abu Madi italso encountered 4.8 meters of net pay in a goodquality sandstone reservoir in the El Wastaniformation, representing a new pool discovery.

On test, the well produced 14.1 Mmcf/d of gaswith 718 barrels of condensate from the AbuMadi Formation, and 5.9 Mmcf/d of dry gas fromthe El Wastani Formation.

RWE Scores Gas Offshore EgyptAnother natural gas discovery was recorded onthe North El Amriya concession offshore thecoast of Egypt on May 6. German firm RWE Deasaid it hit with the drilling of the NEA 4x,confirming the discovery made in January withthe drilling of the NEA 3x well.

The NEA 4x was drilled to a final depth of 3,320meters and hit a gas reservoir in the Miocenelayer in the Abu Maadi formation with a thicknessof 58 meters. A production test was successfullycarried out with production volumes of up to25,000 Mscf/d.

Geyad-3 Well Flows from Shagar SandsCircle Oil issued an update on its Geyad-3appraisal/development well and developmentplans for the NW Gemsa Concession where itholds a 40% stake.

The company said that the Geyad-3 was drilledto 5,635 ft measured depth in the Upper Rudeis.The main objective for this well was to appraiseand bring into production the oil bearing Shagarand Rahmi sandstones of the Kareem Formation.The Shagar sands were encountered from5,333 to 5,347 ft MD with 14 ft of net oil pay.

The well’s Shagar interval was tested at a sustainedrate of 1,316 bpd of oil and 1.26 Mmcf/d of gas.

Africa’s Big Five

ANGOLA

ALGERIA

EGYPT

Petroleum Africa MagazineJune 2011 7

The well will be completed for production. Circledid say however that the underlying Rahmi sandswere encountered but were found to be of poorreservoir quality and as such, not tested. Asecondary objective of the Belayim sands in theGeyad-3 well was also encountered with 5 ft ofcalculated net pay, but it was decided not to testthis interval.

The next well proposed for the Geyad field is awesterly peripheral injector to be drilled later in2011. The well is currently rigging down and therig is preparing to mobilize to drill the injectorwell Al Amir SE-8X, located on the south-westflank of the Al Amir SE field.

ZZ-4 Drilling Ahead on the Abu SennanBeach Energy reported that the ZZ-4 well on theAbu Sennan Concession in Egypt is drilling aheadin the Jurassic Khatatba Formation.

The well is an appraisal of the Cretaceous GPZZOil Field and was deepened to target hydrocarbonexploration potential in the older Jurassicsequence. Current depth is 4,661 meters with aprognosed total depth of 4,884 meters.

The ZZ-4 is the first in a multi-well drillingprogram designed to test several play conceptswithin the Abu Sennan concession.

Apache Plans UnconventionalHunt in the Western DesertApache Corp. is going unconventional in Egyptwith plans to explore deeply buried rockformations, including shales, in the country’sWestern Desert for oil and natural gas beginninglater this year.

The company believes that its East Bahariyaproperty holds a shale formation that containsbetween 700 million and 2.2 billion barrels ofoil. Thomas Voytovich, who heads Apache’sEgyptian business, said during the company’sannual investor meeting: “We have two wellsplanned to test the idea here later this year. It’sa step-change for us.”

Melrose Updates Concession ActivityMelrose Resources completed a new 2D and 3Dseismic data acquisition program on the SouthEast Mansoura concession in late-2010 with theresults confirming the presence of a number ofrobust structural prospects in the main playfairway. Melrose is finalizing the seismicinterpretation with a view to providing an updateon the play potential and further details on theprospect selected for drilling in Q3.

The 2D seismic survey over the Mesahaexploration concession in southern Upper Egyptis ongoing and the data acquired to date(approximately 750 km) has significantlyimproved the sedimentary basin definition. Basedon the encouraging results, the size of the plannedsurvey has been increased to around 1,600 kmand the acquisition program should be completedby late-June.

The North East Abu Zahra-1 gas production wellexperienced water breakthrough in Decemberand subsequently the well rate declined rapidlyuntil it ceased to flow in April. The company nowplans to drill a replacement production well inthe field at the crest of the structure (the originalwell was located down-dip on the flank of thereservoir) after completing the current WestDikirnis horizontal well. This will result in thedeferral of production but has no implicationswith respect to the field reserves.

Melrose said that based on operationalconsiderations, it was reducing its 2011 productionguidance from 44.0 mboepd to 40.5 mboepd ona working interest basis. This is primarily dueto the recent North East Abu Zahra-1 wellperformance and the impact of the decision toinitially complete the latest West Dikirnishorizontal producer as a vertical well, coupledwith other minor production variances.

Status on NW Gemsa and Kom OmboSea Dragon Energy reported that the Al Amir SENo 8 well on the NW Gemsa Concession wasspud on May 20. The well at press time wasdrilling ahead at 3,000 ft. The well is targetingthe western edge of the field to be completed asa peripheral water injector.

The company said that water injection isexpected to commence in late-June and marksthe beginning of the water flood project whichwill result in a significant increase inrecoverable reserves and production levelsfrom the field.

Sea Dragon also said that geological,geophysical, and engineering work and studiesare continuing and this work includes aremapping of the Al Baraka field andexploratory prospects on the Kom OmboConcession in Upper Egypt. This work will becomplemented by the results of other geotechnicalstudies now underway to firm up locations forthe two exploratory wells and the AB-17, AB-18, and AB-19 development wells planned forQ4 2011.

Production from the Al Baraka field isapproximately 800 bpd of oil, 400 bpd net toSea Dragon.

Sea Dragon has a 50% working interest and isjoint operator of the Kom Ombo Concession withDana Gas owning the remaining 50%.Commenting on the latest developments on thecompany’s operations in Egypt, chairman andCEO Said Arrata stated: “The success of ourdevelopment drilling and delineation work inboth Al Amir SE and Geyad fields in our NWGemsa Concession is most gratifying. We arelooking forward to the commencement of thewater flood project and the resulting increase inproduction. In Kom Ombo, detailed geotechnicalwork is well underway in preparation for the falldrilling season.”

Libyan Rebels putExports on Back BurnerExports of Libyan crude from production centersheld by the rebels will not resume any timesoon, according to a statement from Ali Torhoniwho is in charge of the economy and energyportfolio under the rebel administration.Torhoni said that the group’s main focusnow was to ensure that oil installationsremained secure against incursions fromloyalist fighters.

The rebels sent out a few cargos of crude and theUS government gave the go ahead for US firmsto conduct business with the rebels.

Where Has Ghanem Gone?Austrian leaders said there is no evidence tosupport claims that Shokri Ghanem, National OilCorp. (NOC) head and acting oil minister is inthe European country, despite his name appearingon the passenger list for a flight that arrived inVienna on May 19.

In mid-May Libyan rebel spokesman,Mohammed al-Menaifi claimed Ghanem defectedthrough Tunisia although Tripoli officials havedenied rumors.

An Austrian Interior Ministry spokesman saidthat although the minister’s name appeared onthe boarding list, it was unclear if Ghanem hadactually taken the flight. The oil minister has avalid Schengen visa, affording him the ability totravel within the Schengen zone that includes25 European countries without being checkedand his arrival registered. However, if Ghanem

LIBYA

Africa’s Big Five

arrived from a non-Schengen country, he wouldhave to be checked even if a visa holder.

Sources have also told Petroleum Africa thatother ministers from Qaddafi’s regime, includingthe Minister of Information, Culture, andTourism, have also been reported missingsince protests escalated. His family found theirway to Egypt and then fled to an undisclosedlocation.

BME’s SMART Tagged for Bonga FieldBME UK was awarded a contract for the provisionof its Specialized Machinery and Reduced FlowTechnology (SMART) on Nigeria’s Bonga field.Scot Borland, director of BME UK commented,“Seven people from Aberdeen will travel toNigeria to install and operate the SMARTequipment. Training provision also forms part ofthe contract scope and six West African nationalswill receive on-site training.”

NNPC Tells ExxonSign Now or Lose OMLsVarious wire reports have it that Nigeria’s NNPC,as well as the government, gave US supermajorExxonMobil until May 19 to express its interestin three large licenses. ExxonMobil on its partsays that it already has access to these threelicenses as a result of a deal entered into in 2009,giving it a long-term renewal on the acreage.

According to a report in Nigerian daily THISDAY,petroleum minister Diezani Alison-Madueke, ina letter on March 4, 2011, informed Exxon thatthe leases remained valid till March 10, 2011,and as such “were not subject to renewal” onNovember 25, 2009, when the former ministerof State for Petroleum, Odein Ajumogobia,executed the contract for their renewal.

In the letter, she advised the company thatshould the federal government give considerationto renewing the leases, the effective datewould be March 11, 2011. The licenses in questionare OML 67, OML 68, and OML 70, which

ExxonMobil operates as part of a JV with state-run NNPC.

By May 23 Nigerian officials reported thatExxonMobil had since expressed a new interestin acquiring leases for these blocks and the issuewas on its way to being resolved.

Shell Puts NigerianAssets on Auction BlockShell is looking to unload some of its Nigerianassets and reports have it that two of the fouronshore oil blocks in the Niger Delta that thecompany put up on offer have been sold.

A consortium formed by Kulczyk Oil Venturesand a Nigerian local community won the bid tobuy into the OML 42 in the Niger Delta for about$600 million.

Another consortium made up of Niger Delta E&Pand Petrolin are hoping to become the winnersof OML 34 which has oil reserves of around 200million barrels. In addition, OML 40 went toElcrest, a JV between independent firm ElandOil and local company Starcrest.

Mart & Partner Highon UMU-7 Test ResultsMart Resources, on behalf of its partners,Midwestern Oil and Gas Company Plc (operatorof the license) and Suntrust Oil Company Ltd.reported that flow tests were conducted on thefour targeted sands: the XIIc, XIV, X, and XVIasands on the UMU-7 well located in theUmusadege field.

The UMU-7 well flowed at a stabilized combinedcumulative rate of 10,373 bpd of oil from thefour sands tested on choke sizes ranging between20/64 to 36/64 inches with API gravity rangingfrom 39° to 47°.

Following the completion of testing, the wellwas placed on long-term production fromthe X and XIV sands at an aggregate initialrate of 3,352 bopd. Mart said that thisproduction rate is not necessarily indicative of

future production levels as work is still ongoingto stabilize and optimize long term productionrates from the well.

Sirius Gets Seriouswith Nigerian Acquisition HuntFollowing its admission to London’s AIM inlate-March, Sirius Petroleum is once againfocusing on an acquisition with a minimum of20 million barrels in recoverable reserves ofNigerian oil and gas assets.

The company said that while it will continue toassess other opportunities if they meet its strictinvestment criteria, it has already identifiedseveral attractive opportunities with valid licensesheld by a number of oil majors in relation topotential marginal oil field opportunitiesin Nigeria.

Sirius’ board of directors is confident that atleast one of the fields under consideration willprove to be suitable for it and looks forwardto commencing discussions and updatingshareholders on progress at the appropriatetime. Further announcements will be madewhen warranted.

Gasol Strides towardNigerian Gas MonetizationGasol entered into an exclusive Project OptionAgreement with Moni Pulo in respect of all ofthe gas contained in Nigeria’s OML 114. Duringthe exclusivity period, Gasol will have anopportunity to make a proposal to Moni Puloregarding the development of OML 114,including exploration, development, and offtake.If Moni Pulo accepts the proposal from Gasol, itis then the intention of the parties to worktogether to conclude definitive gas purchaseagreements for development and sale of all ofthe gas to Gasol.

Gasol has commissioned initial pre-feasibilityreports which indicate that the available gas couldsupport LNG production of over 800,000 tonsper annum for 10 years or fuel a 500 MW powerstation for 20 years.

NIGERIA


Kenya to See Action from ApacheUS independent explorer Apache Corp. maylaunch its exploration program in Kenya soon.According to the company’s COO RodneyEichler, Kenya is one of two areas that thecompany is pushing for oil and gas exploration.Apache plans to begin drilling in 2012 in whatwill be the American E&P company’s first forayinto sub-Saharan Africa.

Eichler said during the company’s annual investorday that the Kenyan Block 8 in the Lamu Basinis believed to hold heavy oil and called it “anatural extension” of discoveries made recentlyby other companies off Madagascar. And Kenya,he said, offers “good fiscal terms” to producers.

Cameroon’s Sapele-2 Hits for BowlevenBowleven’s Sapele-2 well offshore Cameroon’sDouala Basin, encountered around 35 meters ofindependently log evaluated net pay in theOmicron objectives, based on the results of drillingand conventional wireline logs. The companyexpects to launch a testing program, subject toattaining various approvals, on completion of thelogging program.

Moving forward Bowleven said that a detailedanalysis, including test data, will be required toassess the implications of both the Sapele-2 andSapele-1ST wells on current resource estimates.A testing program is currently underway onSapele-1ST and the results are expected soon.An update on the Sapele-2 testing program isexpected by mid-June.

Gazprom Bails onNamibia’s Kudu ProjectThe long-delayed Kudu development in Namibiahas taken another hit as the company that wasseen as the force needed to push it forward,Russia’s Gazprom, bailed out on the project.

The Kudu gas field has an estimated 2 Tcf of gasand was seen as a way of boosting the country’sextremely beleaguered power generationcapacity. The exit of the Russian firm came withlittle fan fare, with Mines and Energy ministerIsak Katali recently confirming Gazprom’s exitwith Namibia’s New Era. Katali said, “…wereceived a letter saying they are not interestedbecause the project did not pass their high-levelapproval.”

Gazprom’s exit is just one of many setbacks theKudu project has had since the field wasdiscovered in the early 1970s, although someprogress was made in recent years. Tullow Oilbecame involved in Kudu when it acquired Energy

Africa and was eager to get the ball rolling onthe project as far back as 2004. Over the pasteight years the project received passing interestfrom companies however, nothing really everpanned out.

Terms of a new Kudu Petroleum Agreement wereagreed to recently with the Ministry of Minesand Energy and a revised 25-year productionlicense was expected to be issued at any time,but with the pull out of Gazprom, this couldbe delayed as a scramble for a new partnerwill likely take place.

The partners had already completed the study forthe offshore development and were entering intotechnical integration discussions with NamPowerto optimize design concepts of both the offshoredevelopment and the Kudu Power Station. Inparallel, discussions were underway withNamPower on the gas supply agreements and forthe power plant. Tullow recently said that itexpected to initiate detailed design of the offshoredevelopment in Q2.

“There was a restructuring process at Gazproma month or two ago and this process led to thedecision to withdraw from theproject,” Katali said. “I amcurrently arranging to go talkto the higher authority here tosee what the way forwardwould be,” Katali stated, addingthat Namcor is currently insearch of a new partner forKudu. Justifying its suddenwithdrawal from the project,Gazprom told the Namibiangovernment that there waschange of management at thecompany and the new ownersdid not deem it fit to continueits involvement in Kudu.Gazprom’s departure leaves a54% interest in the project available.

Oranto Scores Block in STP’s EEZOranto Petroleum, a Nigerian firm, was the bigwinner in the Sao Tome and Principe (STP)Exclusive Economic Zone (EEZ) licensing round.STP’s National Petroleum Agency (ANP) saidthat the company was awarded Block 3 whichcovers an area of 4,228 sq km.

Oranto’s award came following the evaluationof all applications submitted, including allnecessary due diligence. Within the frameworkof petroleum legislation in place, a productionsharing contract will be negotiated and

carried out for the exploration activities onthe block.

Anadarko Ready for 3D Offshore KenyaKenya is set to see 3D seismic conducted off itscoast as results from a 2D seismic survey provepromising. Anadarko Petroleum Corp., operatorof five blocks in the East African country, said itis progressing to a 3D survey after “encouraging”2D seismic testing results on the blocks.

Anadarko has access to L5, L7, L11A, L11B,and L12 in the Lamu Basin and is partneredwith Cove Energy and Dynamic AdvisorsKenya Ltd.

Nyuni on Fast Track to First GasAminex plc has set a tentative schedule for firstgas production from its Nyuni offshore block inTanzania by early Q1 2012. Production will comefrom the Kiliwani North development license, tothe southeast of the Songo Songo gas field. MikeRego, exploration director for Aminex, toldPetroleum Africa that while the well itself islocated at the southern tip of the Songo SongoIsland, the development license encompasses amuch larger area.

Rego said “Essentially we would like it as soonas possible, it is scheduled for 2012, but we areplanning to bring our gas to the market ahead ofthe Songas Plant expansion.”

The company is hoping to construct a pipelineto the Songas Plant. Engineering studies and talksfor commercial sales of the produced gas arecurrently underway. Additionally, contracts forthe pipeline construction are in the works.

Production from the development, slated to beabout 20 Mmscf/d dependent on infrastructurecapacity, will be used for both power generationto the national grid and for industrial users. The

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company is in ongoing negotiations for thecommercial sale of the gas.

The Kiliwani North field was discovered in 2008and tested at a rate of 40 Mmscf/d and while thecompany is looking at a rate of 20 mmscf/d onceproduction begins, Rego said its test rate is “anindication of what the well is capable of flowing.”

Harvest Spuds Well on Dussafu PSCHarvest Natural Resources began drilling on theRuche Marin-A exploration well offshore Gabonon the Dussafu PSC area. This exploration wellis being drilled by the Transocean Sedneth 701semi-submersible drilling unit, and was expectedto take about 28 days, finishing up in late May.

The Ruche Marin-A well will be drilled in a waterdepth of 380 ft to test multiple stacked pre-salttargets to a planned total measured depth ofapproximately 10,100 ft.

Canadian Overseas Jumps into LiberiaCanadian Overseas Petroleum Ltd. (COPL) signeda deal to acquire an exploration block off thecoast of Liberia. The company purchased a 100%stake in Block LB-13 from Peppercoast Petroleumplc for an estimated $85 million.

Besides the agreed purchase price, COPL haslent $15 million on a secured basis in order forPeppercoast to satisfy an account payable toTGS-Nopec Geophysical. The funds pay forthe acquisition and processing of the 3Dseismic survey and should also satisfyPeppercoast’s work obligations under the firstphase of the production sharing contract forthe block.

In addition COPL will also acquire 2,200 sq kmof 3D seismic data that was shot for Peppercoastin Q1 2010. The company says the purchaseprice will include between $45 million and$50 million in cash and the remainder in COPLcommon shares, to be issued directly to thePeppercoast shareholders, and priced at$0.5473 cents per share.

Dominion Petroleumthe Latest to Land in KenyaDominion Petroleum expanded its position inEast Africa, picking up a stake in Kenya’s offshoreBlock L9 in the Lamu Basin. The company signeda PSC with the government for a 60% operatedstake in the block and is partnered with AvanaPetroleum and Flow Energy.

Under the PSC’s initial two-year explorationperiod, Dominion will reprocess 2,500 km of 2D

seismic data, carry out block-wide G&G studies,and acquire 500 sq km of 3D seismic data. Thiswill result in a minimum gross expenditure of$6.15 million. Following this initial two-yearperiod, the company can enter the second two-year period by committing to drill a singleexploration well.

Ethiopia Preparesto Close Ogaden TenderThe Ethiopian government said that it expectsseven international and domestic companies tobid for oil and natural gas concessions in therestive Ogaden Basin that were previously heldby Malaysian firm Petronas.

The tender for the concessions closed in mid-May and the results are expected to be announcedby early June, Ketsela Tadesse, head of petroleumlicensing and administration in the Mines Ministrysaid, during a Bloomberg interview. One of theeight blocks on offer has proven gas deposits of2.7 Tcf, according to Ketsela.

Anadarko Sells Stake in Sierra LeoneAnadarko Petroleum Corp. announced during aconference call that it farmed-down a stake inBlock SL-7B-10 offshore Sierra Leone. The USindependent sold 10% of its 65% controllingstake to Mitsubishi Corp.

The block makeup is now Anadarko as operatorwith a 55% stake, Repsol YPF with 25%, TullowOil with 10%, and Mitsubishi with theremaining 10%.

East Africa DrillingPlanned by Africa Oil and PartnersAfrica Oil Corp. told attendees at an industryevent in Nairobi that it was planning to drill upto eight wells across East Africa in its upcomingdrilling campaign set to begin in September.James Phillips, Africa Oil’s COO, said he had a$43 million budget for the drilling program.

Tower Firms Up Leadsin Namibia and UgandaTower Resources issued its annual report givingan overview of its assets in Namibia and Ugandaover the 2010 period. The company was busy inNamibia to good effect as an independentCompetent Persons Report (CPR) in mid-2010confirmed a huge resource potential based on2D seismic acquired. The company has alsocompleted the interpretation of 3D seismic sincethe end of 2010 which confirmed clear structuralclosure, sustained reservoir thickness, and directhydrocarbon indicators at the main Maastrichtian

prospect level. Tower said that a recently identifiedAlbian age reservoir may also be significant.

Tower is working on fine tuning the 3D AVOinterpretation which is almost complete. Thecompany said that a CPR update incorporatingfull 3D interpretation is underway and due forcompletion by the end of June.

In Uganda the prospectivity of Block EA5 hasbeen enhanced by the results of an aero gravitygradiometry survey and a probable oil generationkitchen has been identified. The company hasalso indentified a large high structural areawhere reservoir quality may be productive.A seismic survey is ready to launch anddrilling is expected to take place before the endof the year.

BG Group Moving Offshore KenyaBG Group announced that it signed PSCs withthe Kenyan government for two offshoreexploration blocks – L10A and L10B.

BG Group will be operator on both blocks andwill hold a 40% equity interest in block L10Aand a 45% interest in block L10B. The workprogram consists of a commitment to acquireseismic data during an initial exploration periodof two years.

Blocks L10A and L10B together cover an areaof more than 10,400 sq km in the southern portionof the Lamu Basin, offshore Kenya. The blocksare located in water depths ranging from around200 meters to in excess of 1,900 meters.

Champion ScoresEquatorial Guinea ContractChampion Technologies secured its firstdeepwater chemical management services contractin West Africa with an eight-figure deal over thefive-year life of the agreement. Under the contractChampion will provide a full suite of chemicalsand associated support services for NobleEnergy’s Aseng Field Development project inEquatorial Guinea.

The company plans to build a base in Luba’sFreeport Zone which will include office space,a fit-for-purpose laboratory, warehouse, and ablending facility. Champion Technologies willassist Noble Energy in tackling the challengesfaced in producing, storing, and transportingcrude oil that has a high pour point, utilizingsome key products from its Flow Assuranceportfolio. The project will also involve the useof a deepwater FPSO which is currently locatedin Singapore and will be heading to Equatorial


Africa at Large

Guinea for production due to commence duringH1 2012.

ADX Gets Extra Time at ChorbaneADX Energy Ltd. received an extension on thecurrent exploration period for the Chorbane Permitfrom Tunisian authorities. The permit wasextended for one year taking ADX’s explorationperiod into July 2012.

Tunisian authorities informed the company duringrecent meetings in Tunis that the drilling of theSidi Dhaher well is a priority and the requiredlevel of government authority supervision toensure safe mobilization and efficient drillingoperations will be provided. ADX anticipatesthat the appropriate measures for roadclearance, traffic control, and road safety will beavailable shortly.

ADX will continue to prepare for the drilling ofthe Sidi Dhaher well and provide a further updatewhen a scheduled mobilization date is determined.

Logbaba DevelopmentReceives Presidential DecreeVictoria Oil & Gas (VOG) received the awardof an Exploitation License for the developmentof the Logbaba gas and gas condensate fieldonshore Cameroon. The award came followingextensive due diligence carried out by the stateoil and gas company Societe National desHydrocarbures, (SNH), the Ministry of Industry,Mines & Technology, and the Offices of thePresident of Cameroon.

The exploitation rights cover the entire 20 sq kmdevelopment area applied for by VOG and extendits rights for 25 years with an option to add afurther 10 years. In addition, under the terms ofthe Logbaba Concession Agreement signed inMay 2001, SNH will exercise its right toparticipate in the Logbaba Concession, and willpay its share of development costs.

The partnership make up of the LogbabaConcession is now VOG with 57%, RSMProduction Corp. 38%, and SNH with 5%.

SOCO Plans Action in the CongosSOCO International issued its interimmanagement statement which included anupdate on the company’s activities in the Republicof Congo (ROC) and Democratic Republic ofCongo (DRC).

SOCO said that preparations are underway todrill up to three exploration wells offshoreROC, with the first well expected to spud inearly-September. The initial well will drill for apre-salt target on the Marine XI Block withestimated pre-drill unrisked mean recoverableresources of 165 million barrels, and should takeapproximately 45 days to reach TD. The companyhas secured a rig and it is currently undergoingrefurbishment in dry dock. SOCO said that if thefirst well is successful, an appraisal well isexpected to be drilled on the pre-salt target.If not, the final well in this explorationprogram will be drilled on a Miocene targetin the Marine XI Block with 70 million barrelsof pre-drill mean unrisked recoverableresources.

In the DRC the security review over Block V inthe Albertine Rift is ongoing. A final environmentalimpact assessment (EIA) was submitted to theGroupe d’Etudes Environnementales du Congo inMay. SOCO said that the Block V project can beprogressed into the seismic acquisition stage overLake Edward once approval of the EIA report bythe government is received. The companyanticipates the review of the EIA report to beconcluded prior to the beginning of Q3.

The company also said that further evaluation ofthe Nganzi Block, onshore DRC, is beingundertaken, incorporating information gatheredin its 2010 drilling program to better understand

the block’s prospectivity. Remapping of theseismic is underway, focusing on the Chelaformation. The exercise will be concludedduring Q3 in order to determine the forwardprogram prior to the end of the initialexploration period.

DRC: Lotshi Resource Report InEnerGulf Resources Inc. received an assessmentof the Prospective Resources on its Lotshi Blockin the Democratic Republic of Congo (DRC)from DeGolyer and MacNaughton (D&M). Thereport concluded that the prospective resourcesin seven oil prospects, as of December 31, 2010had a mean estimate of 313,176 10³ bbls(thousands of barrels). The D&M report did notinclude the potential resource contribution fromany reservoirs above the Loeme Salt, or from theChela dolomite.

The Chela dolomite is the main reservoir in thegiant Rabi-Kounga field in Gabon and in smallerfields nearby in Cabinda. There have also beenshows reported in the Chela in other wells nearthe Lotshi Block, but the stratigraphic positionof the Chela directly underneath the Loeme Saltmake it a difficult target to map seismically.

JDZ Block 2 Extensionfor Sinopec and PartnersERHC reported that the Nigeria-São Tomé &Príncipe Joint Development Authority (JDA)approved a 12-month extension to ExplorationPhase I Joint Development Zone (JDZ) Block 2.The JDA approval of extension is subject to finalapproval by the Nigeria-São Tomé & PríncipeJoint Ministerial Council.

Negotiations on the exploration program in JDZBlocks 3 and 4 continue between the JDA andthe contracting parties, led by Addax Petroleum.ERHC holds a 10% working interest in JDZBlock 3 and a 19.5% working interest in JDZBlock 4.

Around the World

Production Starts for Shell in CanadaShell announced the start of production from itsScotford Upgrader Expansion project in Canada,producing 255,000 bpd of heavy oil from theAthabasca oil sands. The 100,000 bpd expansionallows engineers to focus on improving operatingefficiencies and adding capacity throughdebottlenecking.

Shell Canada Energy is 60% owner and operatorof the Athabasca Oil Sands Project (AOSP) alongwith Chevron Canada Ltd. (20%), andMarathon Oil Corp. (20%). The AOSP includesthe Muskeg River Mine, Jackpine Mine, andScotford Upgrader.

Quest CompletesDeepest Shale Wireline in USCanadian company Quest Coring completed thefirst 90-ft wireline in a shale gas reservoir in theUS using its QuickCore technology, reducingthe amount of time it takes to cut core by morethan half.

The tool is designed to bridge the gap between90-ft conventional coring and 30-ft wireline coringtools that are generally inefficient for shale gasenvironments. The technology has been used in15 projects spanning across the US and Canadaand the company plans to further its prowess intothe UK, European, Middle Eastern, and AsianPacific markets.

BP Gets 10 E&P Blocks in BrazilBP received final approval to purchase 10exploration and production blocks in Brazil fromDevon Energy.

The blocks acquired will give BP a diverse andbroad deepwater exploration acreage positionoffshore Brazil with interests in eight licenseblocks in the Campos and Camamu-Almadabasins in water depths ranging from 330 ft to9,100 ft. The company will also pick up twoonshore licenses in the Parnaiba basin.

Chevron Acquiresmore Shale Acreage in the USChevron Corp. has acquired oil and gas assets inthe Marcellus Shale, located in the US state ofPennsylvania, from Chief Oil & Gas LLC andTug Hill, Inc.

Terms of the transaction have not been disclosed,but the 228,000 net leasehold acres will help thecompany expand its shale gas portfolio giving it

“additional high-quality resources with stronggrowth potential,” according to Chevron NorthAmerica Exploration and Production Co. presidentGary Luquette.

Brazilian FPSOGets Siemens Topside SolutionsSiemens Energy was awarded several contractsfrom Singapore-based Jurong Shipyard Pte Ltd.and Wasco subsidiary, Gas Services InternationalPte Ltd., to supply topside solutions coveringpower generation, water injection, and powerdistribution packages for a FPSO in Brazil.

The FPSO will also be equipped with waterinjection facilities in order to boost oil recoveryfrom the reservoirs. Siemens will supply the keyelements for this system in skid format, includingthe sulfate removal membrane, SRU feed pumps,chemical cleaning, and reverse osmosis. Thewater injection system will be designed tohandle 638 cubic meters per hour. The FPSOCidade de Itajai will have a production capacityof 80,000 bpd of oil and a storage capacity ofapproximately 650,000 barrels. The FPSO isexpected to be in operation by summer 2012,producing from the Tiro and Sidon fields locatedin the south Santos basin.

BP to InvestMajor Money in IndonesiaBP will invest $10 billion in Indonesia over thenext 10 years, according to the country’sinvestment agency chief Gita Wirjawan.

The group will begin to explore the Kalimantanto bring its coal bed methane resources online,as well as continue its development of the TangguhLNG project. The Kalimantan’s main hydrocarbonarea is in the east with the Kutei Basin and theTarakan Basin, where its first commercialdiscovery was made in 1971. The Tangguh LNGis the third LNG hub in Indonesia which includessix fields to extract combined proven reserves ofaround 14.4 Tcf.

Beach Energy to Flow ShaleBeach Energy Ltd. will commence flowstimulation of its Holdfast-1 shale well in earlyJune, which will be followed immediately by theflow stimulation of the Encounter-1 shale well.

In preparation for flow stimulation, theHoldfast-1 well has been successfully completedand the Encounter-1 well’s completion wasexpected shortly thereafter. The flow stimulationprocess may take up to two weeks for each well,

after which they will be flow tested in preparationfor a resource booking in July/August 2011.

Both Holdfast-1 and Encounter-1 are datagathering wells and as such are not designed toflow at levels expected of a production well. Thedesign of pilot production wells will be based oninformation gathered from the flow stimulationof, and earlier core samples retrieved from,Holdfast-1 and Encounter-1. The timing of thesepilot production wells will be primarily drivenby equipment availability, and as such, it isanticipated that the pilot production program willnow commence early in 2012.

CGGVeritas Completes Brunei SeismicCGGVeritas completed a BroadSeis seismicsurvey in Brunei Darussalam for Brunei ShellPetroleum Company Sdn. Bhd. (BSP). BroadSeis,the new CGGVeritas broadband marine solution,combines Sercel Sentinel solid streamers, a uniquevariable-depth towing configuration and aproprietary deghosting, and imaging algorithm.

The program comprised a number of 2D lineslocated in deepwater and combined BroadSeistechnology with a bigger source array and a longstreamer. CGGVeritas acquired the survey on theblock operated by BSP and in cooperation withTotal E&P Deep Offshore Borneo B.V.

Tap Oil Divests in Western AustraliaTap Oil Ltd. will sell a 25% interest in itsWA-351-P exploration permit in WesternAustralia’s Carnarvon Basin. Japan AustraliaLNG Pty Ltd. will acquire the stake for about$30 million with Tap expecting to net $26 million.In addition, Japan Australia will pay Tap’s 20%share of the next exploration well in the permitup to a cap of $10 million.

Tap is reducing its holding in the explorationpermit from 45% to 20% with operatorBHP Billiton Petroleum Pty Ltd. retaining a55% interest.

Exile Resources HasCertain Licenses in Turkey RevokedExile Resources Inc. was notified that AladdinMiddle East Ltd.’s (AME) five Rubai explorationlicenses (2759, 2598, 2599, 2600, and 2601) insoutheast Turkey were cancelled by the GeneralDirectorate of Petroleum Affairs of the Republicof Turkey as a result of missing drilling deadlines.

Exile farmed-in to the Rubai Licenses with thecompany expected to earn its 35% equity by

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mid-2011. The company had spudded theBostanci-1 well on April 24 on License 2600, butwith recent events, drilling was suspended andthe well is in the process of being temporarilyabandoned. At the time of press, there were noupdates but Exile executives were said to be indiscussions with the Turkish government toresolve the issue.

Azerbaijan Ratifies PSAbetween BP and SOCARAzerbaijan ratified the new PSA between BP andSOCAR for joint exploration and developmentof the Shafag-Asiman structure in the Azerbaijansector of the Caspian Sea.

Under the PSA, which is for 30 years, BPExploration (Azerbaijan) Ltd. will be the operatorwith a 50% interest while SOCAR will hold theremaining 50% equity.

Tullow Ups Dutch Ops with Nuon E&PTullow Oil plc entered into an agreement toacquire Nuon Exploration & Production for €300million from the Vattenfall Group.

The acquisition of Nuon E&P, expected to becomplete by July, will significantly enhanceTullow’s North Sea business adding aportfolio of 25 licenses that include over 30producing fields, numerous development, andexploration opportunities and ownership of keyinfrastructure. This portfolio will increase theGroup’s North Sea gas production by 9,000 boepdto approximately 23,000 boepd and add reservesand resources of 28 mmboe.

Wartsila Wins NorwegianContract from Kleven MaritimeKleven Maritime has contracted Wartsila to designa new LNG-powered platform supply vessel(PSV) for Norwegian operator Rem Offshore.The contract includes the propulsion machinery,automation, and other vessel equipment.

Rem Offshore’s new LNG-powered PSV, the firstsuch vessel for its fleet, will be a Wartsila ShipDesign VS499 LNG PSV. Wartsila’s scope ofsupply for the new PSV includes the dual-fuel

main engines and generating sets, the electricalpower and propulsion systems, integratedautomation, and the power management system.The selection of Wärtsilä’s dual-fuel (DF)technology enables operation on marine dieseloil if required.

TWMA, Total Extend North Sea DealEnvironmental waste management contractorTWMA was awarded a $6.4-million contractextension for two additional years by Total E&PUK Ltd. for continued drilling-waste managementservices in the UK North Sea.

The N-class newbuild drill unit will commencea two-well UK offshore drill program fordevelopment drilling in the Elgin field, followedby the planned drilling of the Corfe prospect,south of Elgin. Under the extended deal, TWMA’sTCC RotoMill thermal processing technologywill process and recycle cuttings alongsidethe firm’s Cuttings Containment andDistribution System.

Gulf Keystone SpudsKurd Appraisal WellGulf Keystone said that the Shaikan-4 deepappraisal well was spudded on the Shaikan blockin the Kurdistan region of Iraq. It is the seconddeep appraisal well to be drilled after thecompany’s significant Shaikan-1 discovery.

Shaikan-4 is being drilled 6-km to the north-westof the Shaikan-1 discovery well and is targetedto drill to the top of the permian to reach theplanned TD of approximately 3,760 meters. GulfKeystone is the operator of the block with aworking interest of 75%, and partnered with TexasKeystone Inc. and Kalegran Ltd.

Ahmadinejad Takesover Iran’s Oil MinistryIranian president Mahmoud Ahmadinejad madesignificant changes to his cabinet in mid-May,merging some ministerial positions, dismissingother ministers, and taking on the management

of the country’s oil ministry. Ahmadinejad reducedthe number of ministries from 21 to 17, andaccording to the leader in an interview to localnews stations, it was based on a “legal duty” and“structural obligation.”

The Iranian leader will also forego attending theOrganization of Petroleum Exporting Countries(OPEC) meeting on June 8 in Vienna. An Iranianoil ministry official, Shojaeddin Bazargani, toldnews sources that Ahmadinejad would assignsomeone to represent the country to attend OPEC’sjoint session with the EU.

Bahrain Looks to Invest$20 Billion in HydrocarbonsBahrain is geared to infuse $20 billion into its oiland gas sector over the next 20 years with themajority used for potential wells and upgradingthe Bapco refinery, according to energy ministerDr. Abdulhussain Mirza.

Tatweer Petroleum will receive $15 billion todrill 3,600 new oil wells while $6 billion will beearmarked for the Bapco refinery. Mirza saidthat a plan was also set to dig deeper than “everbefore for natural gas” and a $420-million lubebase oil project between National Oil andGas Authority, Bapco, and Finland’s NesteOil was almost complete and set to beginoperations.

Jordan Signs MoUwith Russian Firm for E&PThe Jordanian government signed a MoU withstate-owned Russian oil and gas joint stockcompany Zarubezhneft for oil exploration inJordan’s Jafr region.

The agreement has the Russian firm conductinga study of the available technical, geological, andgeophysical data over 10,416 sq km beforesubmitting a report to the government about thepotential for oil. The six-month agreement, whichcan be extended for another three months, wassigned by the director general of Jordan’s NaturalResources Authority, Maher Henazine, andZarubezhneft deputy director general VictorGorshenev.

MIDDLE EAST

Around the World


Downstream News

Connecting Ugandan Crudeto Rwanda and BurundiPlans are in the works to connect Rwanda andBurundi with Uganda by pipeline in an effort toboost the energy security of the two central Africancountries. The plans for the pipeline were revealedby Patrick Nyoike, Kenya’s energy ministrypermanent secretary in a statement.

Nyoike said in the statement that the East AfricaCommunity (EAC) had obtained a $600,000 grantfrom the African Development Bank to financea feasibility study on the proposed pipelinebetween Kigali and Bujumbura. The pipeline willbe a boon to both countries once Uganda bringsits oil production online.

Uganda has said it will construct a refinery as apublic-private project to process its crude andwill need about $2 billion to finance the facility.“The plan is to link Kigali by a pipeline fromKampala, which will allow petroleum productsto be accessed from the planned refinery inKampala as well as the existing refinery inMombasa and international markets,” Nyoikesaid. The planned pipeline between Kampala andKigali would then be extended to the Burundiancapital, Bujumbura.

Sinai Pipeline Explodes AgainA second act of sabotage took place in Egypt onthe natural gas pipeline that ships gas to countriessuch as Jordan and Israel. According to localofficials the pipeline exploded on April 25.

Sinai governor Abdul Wahab Mabrouk told stateTV that the explosion was an “act of sabotage”and stressed there were no reported casualties.The fire was extinguished after the gas flow intothe pipe was stopped.

The explosion is the second the pipeline hassuffered since Egypt’s revolution took place overlate-January and early-February.

FID in on Shell’s FLNG ProjectShell has taken the final investment decision(FID) on the Prelude Floating LiquefiedNatural Gas (FLNG) Project offshore Australia.The decision means that Shell is now ready tostart detailed design and construction in a shipyard in South Korea, of what the companysays will be the world’s largest floatingoffshore facility.

From bow to stern, Shell’s FLNG facility will be488 meters long, and will be the largest floatingoffshore facility in the world – longer than foursoccer fields laid end to end. When fully equipped

and with its storage tanks full, it will weigh around600,000 tons.

Shell will progress the Prelude FLNG project ata rapid pace, with first production of LNG someten years after the gas was discovered, expectedonline in 2017. Once operational, the FLNG willtap into about 3 Tcf equivalent of resourcescontained in the Prelude gas field. Some 110,000boepd of expected production from Prelude shouldenable the vessel to process at least 5.3 milliontons per annum (mtpa) of liquids, comprising 3.6mtpa of LNG, 1.3 mtpa of condensate, and 0.4mtpa of liquefied petroleum gas.

“Our innovative FLNG technology will allow usto develop offshore gas fields that otherwisewould be too costly to develop,” said MalcolmBrinded, Shell’s executive director, UpstreamInternational. “Our decision to go ahead with thisproject is a true breakthrough for the LNGindustry, giving it a significant boost to help meetthe world’s growing demand for the cleanest-burning fossil fuel.”

The FLNG facility will stay permanently mooredat the Prelude gas field for 25 years, and in laterdevelopment phases should produce from otherfields in the area where Shell has an interest.

JX Nippon Enters SPA for Gorgon LNGChevron Corp.’s Australian subsidiary has signeda Sales and Purchase Agreement (SPA) with JXNippon Oil and Energy Corp. to take a portionof the US major’s offtake of LNG from theGorgon Project.

Under the agreement, JX Nippon will receive 0.3mtpa of LNG from the Gorgon Project for 15years. The initial Gorgon Project development,situated in northwestern Australia, will includea three-train, 15 mtpa LNG facility, and a domesticgas plant.

Medgaz to Run at Half CapacityCepsa reported that the Medgaz pipeline out ofAlgeria will most likely run at half-capacity forthe next few years due to the reduced consumptionof natural gas in Spain.

Antonio Melcon, supply manager at Cepsa,speaking at the FLAME gas conference inAmsterdam said that the reduction in natural gasuse came from the industrial sector. Melcón alsopredicted that Medgaz would help with thecreation of a traded Spanish market.

“We think Medgaz will favor the creation of asecondary traded market in Spain – a hub,” he

said. The secondary traded market could becomea reality if it is supported by internationalinterconnection.

The muted demand from the industrial sector isa result of the recession, while in the generationsector, the fuel has been marginalized by increasedwind generation and now by the government-mandated minimum stake in the mix for Spanishcoal, finally implemented in March.

Reports Vary onLibyan Rebel Crude ExportsAt the beginning of May, a statement by AliTorhoni who is in charge of Libya’s economyand energy portfolio under the oppositionadministration, said exports of Libyan crude fromproduction centers held by the rebels will notresume any time soon. Torhoni said that thegroup’s main focus now was to ensure that oilinstallations remained secure against incursionsfrom loyalist fighters.

“I’m waiting for an assessment on all of the oilinstallations (in rebel-held territory),” he said.“The top priority is to protect the installations,not to produce.”

Meanwhile, the opposition are reported to havesent out a few cargos of crude and the USgovernment gave the go ahead for US firms toconduct business with the rebels. In mid-Mayreports surfaced that the Libyan opposition hadmade a deal with oil trader Vitol which had thecompany lifting a cargo of naptha from the rebel-held Tobruk port. According to wire reports, thecargo was loaded at the end of April. Vitol declinedto confirm the report.

Foster Wheeler toSupply CFBs to Chinese ProjectA subsidiary of Foster Wheeler’s Global PowerGroup has been awarded a contract by ZhejiangJiahua Industrial Park Investment & DevelopmentCo. for the design and supply of three circulatingfluidized-bed (CFB) steam generators to meetrapidly increasing steam demand at ChinaChemical and New Material Park (Jiaxing) ineast China’s Jiaxing city, Zhejiang Province.

Foster Wheeler will design and supply three100 MWe (gross megawatt electric) CFB steamgenerators plus auxiliary equipment and providesite advisory services for the project. The CFBsteam generators will be designed to burn coalwhile meeting all environmental requirements.The company has already received a full noticeto proceed on this contract. The terms of theagreement were not disclosed, however the

contract value will be included in FosterWheeler’s Q2 bookings. Commercial operationof the new steam generators is scheduledfor Q4.

HIMA to Aid BP with Refinery SafetyHIMA has entered into a five-year agreementwith BP Products North America, Inc. to provideits Safety Instrumented Systems (SIS) andFunctional Safety Services to BP’s five NorthAmerican refineries.

The agreement is based on HIMA’s TÜV-certified HIMax safety platform, its SILworXconfiguration, programming, and diagnosticsoftware suite and associated FunctionalSafety and Engineering services, which underthe agreement will be available to all five of BP’sNorth American refineries.

The HIMA safety systems will allow BP tostandardize safety design, implementationmethodology, and compliance documentation,which will help to enhance its safety infrastructureby creating an efficient model that can be easilyreplicated.

FID for Brass LNGAs the date for the inauguration of Nigerianpresident Goodluck Jonathan closes in, keyprojects in the downstream sector are set tosee some action. Jonathan was to officiallytake the oath of office in his first full term aspresident on May 29, however, before thatone of the LNG projects on Nigeria’sbooks should see a significant decision pushedthrough.

On the sidelines of CWC Group’s World LNGSeries, Americas Summit an official from Nigeriatold Petroleum Africa that the Brass LNG facilitywould see its FID taken prior to the new regimetaking office on May 29. Brass LNG has beenon the books for some time but has floundered abit over the years, until recently that is. In Q4 itwas reported that the FID would be made in Q1of this year and while it is a month or so late itmay finally be made.

The $8 billion plus LNG facility will be built atBrass in Bayelsa state’s Niger River delta. Thestate-owned Nigeria National Petroleum Corp.has a 49% stake in Brass LNG and is partneredwith Total, ENI, and ConocoPhillips who eachhold 17% stakes. In December the Nigeriangovernment announced plans to cede a 10% stakein the project to the local community as part ofits plan to bring host communities in on thedevelopment of projects.

Sasol Selects EPCm Contractorfor Tetramerization Plant in USSasol has selected S&B Engineers andConstructors for the EPCm contractor to constructits ethylene Tetramerization plant at Lake Charles,Louisiana. The plant will utilize Sasol’s proprietarytechnology to convert ethylene to 1-octene and1-hexene, a process developed in the company’sR&D laboratories in South Africa.

The process selectively produces alpha olefinsrequired for the high growth polymer markets.Engineers and scientists from Sasol North America(SNA) participated with an international team todesign the unit, which will utilize the newtechnology on an industrial manufacturing scale.

LNG Train 2 Expected for Equa GSerapio Sima Ntutumu, deputy director generalof Equatorial Guinea’s Sonagas, took the stageat the World LNG Series, Americas Summitput on by the CWC Group in San Antonio,TX, giving an overview on the WestAfrican country’s plans for its significantnatural gas assets and its role as a global supplierof LNG.

Ntutumu said that a memorandum ofunderstanding was signed in May to alignupstream and downstream operators to buildTrain 2 at the Equatorial Guinea LNG (EGLNG)facility. He added that the final investment decisionis expected in 2012 and first productionenvisioned for 2016. Train 2 is expected to havea 4.4 mtpa capacity.

Equatorial Guinea’s first shipment of LNG hitthe high seas in May 2007 headed for the US.Since start up of the first train, EquatorialGuinea’s LNG promised to play an increasinglyimportant role in meeting the growing energyneeds of not only the Atlantic Basin, but the restof the world.

The Train 1 facility operated at 95% reliabilityin 2009 and this high level of reliability, coupledwith innovative debottlenecking, increasedproduction to 3.9 mtpa of LNG in 2009. Therehas been on and off talk of a second train sincethe start of production, with feedstock potentiallycoming from Cameroon and Nigeria. Since thenthe country has made a number of discoverieswith deputy minister of Mines and Energy GabrielLima saying that the country’s reserves haddoubled in October 2009. “We have the goodproblem of having more gas in EquatorialGuinea than we thought,” Lima said. “We havehad to go back and redo all the figures in themaster plan.”

Malta: Connecting North Africato the EU via Electricity CableMalta has put itself in the running to become the hub for the cable thatwould transport electricity between North Africa and the European Unionas part of the Desertec Industrial Initiative (DII).

The country’s minister of Finance, Economy, and Investment TonioFenech made the proposal at the 8th Euromed Ministerial Conference onIndustrial Cooperation. “Malta is uniquely positioned to share its technicalexperience since such agreements were specifically designed for Maltaprior to EU membership,” the Minister indicated.

Malta has been ramping up its renewable energy efforts and has evenexplored other investment opportunities in North African countries likeTunisia. The EU-member archipelago is situated 93 km south of Sicilyand 288 km east of Tunisia, so its strategic location and RE initiativesmake it a viable option to become the meeting point of the Saharasolar scheme transmission cable from North Africa to the mainland EUmember states.

Fast Tracking the Rusumo Hydropower ProjectOfficials from Rwanda, Burundi, and Tanzania met in Kigali to discussthe fast track implementation of the Rusumo hydroelectric power projectwhich will add 90 MW to the three countries’ power generation capacity.The project is expected to come online in 2012.

The transmission lines will span from Rusumo to Gitega in Burundi,Kigali to Kabarondo, and Biharamuro in Tanzania. “Rusumo powerproject is one of the priority energy projects that will benefit the peoplein the region by providing them with cheap energy,” Adam Malima,Tanzania’s minister of Energy and Minerals, said.

Egypt’s Power Sector Overshadowed by CorruptionAs Egypt struggles to meet its growing power generation needs with theuse of natural gas, its biggest natural resource for power is being threatenedby corruption. The country has vast natural gas deposits, which couldfuel its development through export dollars; however, its growing domesticconsumption has led to a halt in new exports.

The country has huge potential in the alternative energy department suchas solar and wind power, but the corruption taint could slow Egypt’sclean power generation capacity growth. Despite the recent change inleadership in the North African country, Egypt still has a long way toovercome corruption which could threaten its energy sector, according

to Transparency International (TI). The corruption watchdog groupreleased a new study, “Global Corruption: Climate Change,” that suggeststhe country’s national strategy to incorporate 20% of renewable energysources into its total energy generation will be more difficult.

The report includes a section pertaining to solar and wind energy in NorthAfrica, saying that dubious actions could be discouraging much neededprivate investment. “[Foreign] investment often does not occur becauseof complex and lengthy bureaucratic procedures and uncertainty as towhether public officials will expect bribes,” says the chapter, authoredby Nadejda Komendantova and Anthony Patt.

The World Bank noted in 2008 that 45% of the companies involved inforeign direct investment (FDI) in Egypt found the levels of corruptionto be a major deterrent. On April 17, Egypt’s former prime minister andtwo other cabinet members were charged with corruption in the country’slatest campaign to bring officials from the Mubarak regime to justice.The ex-prime minister and cabinet members are accused of giving aGerman businessman a deal to sell license plates without allowing apublic tender as required by law. Prior to this allegation, Hosni Mubarakand his sons were detained for a 15-day period under an investigationon corruption charges and deaths of hundreds of protestors.

However, the TI study notes that the dishonest practices affect all sectorsincluding renewable energy. “A failure to address corruption will resultin higher quantities of investment being required for concentrated solarpower (CSP) deployment in North Africa... Another [result] is thatinvestors will simply seek other regions for investment,” the chapterconcluded.

Egypt had hoped to obtain $110 billion of investment to be allocatedtoward its energy sector by 2027 with ambitions of reaching 7,200 MWof wind energy capacity by 2020. However, with a new leader on thehorizon as elections are scheduled for later this year, many are optimisticthat the depth of this problem will be minimized, in comparison to theprevious ruling party. It is going to take longer than a few months torestore faith in Egypt’s markets and undoubtedly, investors are going towatch initial investment enticements with caution before jumping intothe mix.

US Firm Buys Tanzania Power PlantSymbion Power acquired a 120-MW thermal power plant in Tanzania.The Ubungo plant has been sitting idle for roughly three years, despitethe continuous struggle the country faces keeping the lights on. The plantwas previously owned by Dowans Tanzania Ltd.

Power & Alternatives

Paul Hinks, CEO of the company said “The negotiations with the formerowner have been challenging and, as a consequence of past reports, wehave undertaken extensive due diligence. This due diligence alsoencompassed the thorough examination and testing of the equipment toensure that it is in excellent condition. The results have been positive;the plant has been very well maintained.”

Hinks went on to say, “It gives me great pleasure to be able to move tothe next phase which is to offer electricity to TANESCO and to the peopleof Tanzania at a time when load shedding and disruption to consumersis worsening. The 120 MW that this plant can deliver would have asignificant impact on the power situation in Tanzania.” Hinks continued,“We want to keep the plant in Tanzania, but if TANESCO does not wishto utilize our services, we have other opportunities for its use overseas.This is a mobile plant that can be moved easily.”

The company has extensive electrification contracts in Tanzaniathat are funded by the US government through the MillenniumChallenge Corp. Symbion’s work encompasses the constructionof 3,000 km of overhead power lines and 26 substations in eightregions across Tanzania and Zanzibar.

Joburg Nears First Production from Waste-to-EnergyReports from Johannesburg have it that the city’s first project toproduce electricity from landfill gas was expected to be fullyoperational by the end of May. In addition, four other sites areplanned to follow which would give a substantial boost to SouthAfrica’s job market.

The first plant will generate about 19 MW of electricity for 15years, and will also help Johannesburg earn carbon credits throughthe UN’s clean development mechanism (CDM) process.

Energy Storage Products Coming to SAUS-based company Powin Corp. has formed a JV with a Chinesemanufacturer, Shandong RealForce Enterprises Co. Ltd., to marketand distribute a line of energy storage products across North Americaand South Africa.

Powin Corp., started by Chinese-American Joseph Lu, said its newJV could add 10% to the company’s annual revenue this year. TheJV, dubbed RealForce-Powin LLC, will be based in Tigard, Oregonmanufacturing lithium-ion batteries, storage batteries, energy storagepower plants, solar cells, and other related products across the US,Canada, Mexico, and South Africa.

Cairo Electrified by KoreaThe closing ceremony for the project for developing and automatingthe electricity distribution system in north Cairo was held the firstweek in May as part of the South Korean government’s developmentcooperation program for Egypt.

The Asian nation has been working with the Egyptian governmentover a two-year period to help improve the quality of Egypt’s powergeneration in one of the most congested areas in Cairo. The powerscheme includes a pilot distribution automation system that canautomatically detect faults and remotely operate field devices.The South Korean ambassador to Egypt, Yoon Jong-Kon, said that

he hoped this project would lead to further collaboration in the energysector through its Korea International Cooperation Agency (KOICA).

Aggreko Debuts New Short-Term Power GeneratorAggreko has introduced a new 1,300-kW natural gas generator into itsNorth American fleet, which will allow companies an option for short-term power generation. The new addition to Aggreko’s power generationequipment uses a smokeless output and a save-all containment base toreduce the risk of fluid leakage.

A modular design, standardized in 20 ft ISO containers, allows for easytransportation and flexible installation. Units can be installed in amatter of days, often hours, without the need for large capitalexpenditures.


Kosmos Goes PublicKosmos Energy has priced its IPO of 33 millionshares at $18.00 per share. The company’scommon shares began trading on the NYSE onMay 11 under the ticker symbol KOS. Kosmosholds stakes in acreage in Cameroon, Ghana,and Morocco.

The underwriters of the IPO have the option topurchase from Kosmos Energy up to anadditional 4.95 million common shares, onthe same terms and conditions, to cover over-allotments, if any. Citi, Barclays Capital andCredit Suisse are acting as joint bookrunningmanagers of the offering.

The company is just now seeing income fromits efforts in Africa with the start of productionfrom the Jubilee Field offshore Ghana. Its assetportfolio in Ghana consists of seven discoveriesincluding the Jubilee Field, which was one ofthe largest oil discoveries worldwide in 2007and the largest find offshore West Africa in thelast decade.

Africa Oil Creates Puntland PetroleumAfrica Oil has entered into a LoI with DenovoCapital Corp. for the creation of a new Puntland-focused oil exploration company to be aptlynamed Puntland Petroleum Corp. The new

company will be created as a result of the transferof Africa Oil’s interest in its oil and gas propertiesin Puntland, Somalia to Denovo.

Under the terms of the LoI, Africa Oil andDenovo will negotiate and enter into a definitiveagreement pursuant to which Africa Oil willtransfer to Denovo all of the issued andoutstanding shares of its subsidiary holding

Market Movers

E&P COMPANIESTop Performers

Gasol

Europa Oil and gas

Madalena Ventures

Maurel et Prom

El Paso Corp.

Symbol Exchange Currency 52-Week Range1 Month % ChangePrice as of May 24Company

GAS.L

EGO.L

MVN.V

MAU.PA

EP

LSE

LSE

CDNX

Paris

NYSE

GBP

GBP

CAD

EUR

USD

1.20

23.50

0.67

15.05

20.22

33.3

23.6

21.8

6.0

4.8

0.70 - 1.70

10.00 - 42.50

0.19 - 1.12

8.51 - 16.85

10.60 - 21.54

Worst Performers

Premier Oil

Groundstar Resources

Mediterranean Oil & Gas

Bounty Oil

WHL Energy


PMO.L

GSA.V

MOG.L

BUY.AX

WHN.AX

LSE

CDNX

LSE

ASX

ASX

GBP

CAD

GBP

AUD

AUD

467.40

0.27

10.63

0.03

0.03

-76.6

34.1

26.9

-25.0

-25.0

248.75 - 535.50

0.23 - 0.75

8.00 - 37.00

0.03 - 0.13

0.01 - 0.05

The companies making it to the Top Performers list were the top five out of only seven E&Pcompanies to post on the positive side for the period, of those that we track. Gasol came in as thenumber one performer, with its shares rising steadily over the period. Europa Oil & Gas and MadalenaVentures both climbed their way off the bottom of the Worst Performers list to come in second andthird respectively. There were two newcomers to make the top chart this period – Maurel et Promand El Paso Corp. On the losing side, the company coming in as the Worst Perfomer, Bounty Oil,posted a 76.6% drop though the negative can be atributed to a 4-1 stock split. Prior to the stock splitthe company was only down a few percentage points. Groundstar Resources maintains its stay onthe bottom of the charts, extending its loss from last period. The list was rounded out with Australianfirms Bounty Oil and WHL Energy, who both posted a 25% loss.

MAJOR E&P COMPANIES

Top Performers

BP

Chevron

Gaz de France


BP.L

CVX

GSZ.PA

LSE

NYSE

Paris

USD

USD

EUR

456.40

102.27

25.67

-0.9

-5.4

-5.4

296.00 - 658.20

66.83 - 107.01

22.64 - 30.05

Worst Performers

BG Group

ConocoPhillips

Royal Dutch Shell


BG.L

COP

RDSA.L

LSE

NYSE

LSE

GBP

USD

GBP

1,376.50

71.91

2,119.00

-10.0

-10.0

-6.4

995.20 - 1,741.50

41.06 - 81.80

1,621.00 - 2,377.00

There were no majors on the positive side of the charts although the losses for the most part (as inthe other categories) can be attributed to dividends paid during the period. Coming in at the top ofthe list, which for this period means the least drop in share price, is BP. The company saw its sharesdrop a miniscule 0.9% for the month. Both BG Group and ConocoPhillips came in 10% down, withRoyal Dutch Shell rounding out the bottom with a 6.4% loss.

companies which have participating interests inthe Dharoor Valley and Nugaal Valley productionsharing agreements (PSAs) in Puntland. AfricaOil will receive, in consideration of the transfer,27,777,778 common shares of Denovo.

As a result of the transaction, the Puntlandsubsidiaries will become wholly ownedsubsidiaries of Denovo, which will change itsname to Puntland Petroleum Corp. The definitiveagreement will contain representations andwarranties between the parties that are customaryfor transactions of a similar nature.

Currently Africa Oil holds a 45% participatinginterest in the Puntland PSAs. Upon completionof the Lion Energy Corp. acquisition, AfricaOils participating interest will be increased,directly or indirectly, to 60%. It is anticipatedthat the entire 60% participating interest will betransferred to Denovo.

Africa Oil is currently in the process of planninga two-well exploratory drilling campaign inPuntland, with the first well planned to spud inQ3 2011. Drilling locations have been selectedand a LoI has been signed with a drillingsubcontractor.

Keith Hill, president of Africa Oil Corp., said“The creation of Puntland Petroleum allowsAfrica Oil Corp. to keep a large working interestin a highly prospective exploration project andalso provides the necessary capital to pursue anaggressive drilling program. We are in advancedplanning stages of a two well drilling programwhich will drill the first well in a basin thatappears to be directly analogous to the rift basins


in Southern Yemen that have yieldedmulti-billion barrels of reserves.”

Petroceltic Confirms Stake SalePetroceltic International confirmed the sale ofan 18.375% interest in Algeria’s Isarene PSC toENEL Trade S.p.A. The amendment of the PSCwas signed by Petroceltic, ENEL, and Sonatrachat an official signing ceremony in Algiers onApril 28. The only regulatory condition nowremaining relates to the approval of theamendment by executive decree and subsequentpublication of this decree in the Official Gazetteof the Algerian government.

Petroceltic said that this is an administrativeprocess and does not confer any rights of pre-emption or challenge or involve any additionalscrutiny of the terms of the transaction. The firstpayment under the agreement, which will be inexcess of $55 million, is due 30 days followingthis publication.

Brian O’Cathain, chief executive of Petrocelticcommented: “We are delighted to have concludedthe signing of the Amendment to the PSC in anefficient and timely fashion with the activesupport of Sonatrach and ENEL. Petroceltic hasalready commenced planning for the enlargementof the Isarene appraisal campaign andintroduction of our new partner. We look forward

to the results from the continuation of this drillingcampaign and are confident that ENEL’s inputwill also make a significant contribution topre-development and gas commercializationplanning when this commences in themonths ahead.”

Madagascar Oil Begins ArbitrationMadagascar Oil reported that arbitrationproceedings have begun against the Malagasygovernment and the state-run OMNIS regardingBlocks 3104, 3105, 3106, and 3107.

The arbitration claims were formally submittedto the International Chamber of Commerce (ICC)in accordance with the requirements of the PSCs.Madagascar Oil’s filing seeks declaration thatthe PSCs are valid and that OMNIS proceedwith the approval process of the work programsand related extensions as contemplated underthe PSCs.

Madagascar also submitted a notice of disputeto the government under the rules of theInternational Center for Settlement of InvestmentDisputes (ICSID) with regard to its threatenedexpropriation of its assets. While the arbitrationprocess under the ICC rules begins immediately,the notice sent by the company under ICSIDtriggers a nine-month cooling off period designedto stimulate negotiations between the parties.

Market Movers

DRILLING & SERVICE COMPANIESTop Performers

Newpark Resources

CGGVeritas

Petrofac

Bronco Drilling

Subsea 7


NR

GA.PA

PFC.L

BRNC

SUBC.OL

NYSE

Paris

LSE

NYSE

Oslo

USD

EURO

GBP

USD

KNR

8.77

25.00

1,528

10.99

138.45

20.4

5.6

0.6

-0.2

-0.7

5.12 - 10.00

12.93 - 27.79

1,101 - 1,697

3.25 - 11.63

88.55 - 163.80

Worst Performers

Global Industries

ION Geophysical

Cal Dive

Wilbros Group

Nabors Industries


GLBL

IO

DVR

WG

NBR

NYSE

NYSE

NYSE

NYSE

NYSE

USD

EURO

USD

USD

USD

5.90

9.00

6.26

8.82

26.97

-39.6

-27.5

-21.7

-17.8

-15.5

4.05 - 10.23

3.26 - 13.92

4.48 - 8.15

6.80 - 12.55

15.54 - 32.47

Drilling and services companies had a lackluster performance over the period to say the least,although the timing of quarterly reporting and the issuance of dividends could have contributed tothe rash of negative performances. Newpark Resources was the Top Performer for the period, andone of only three companies to come in with a positive performance. CGGVeritas pulled itself offthe bottom of the charts reversing its loss last period to see a gain of 5.6%. Petrofac was the last ofthe companies to see a gain, although it was only a negligible 0.6%. Cal Dive was another companythat reversed its position from last month’s rankings, dropping off the top of the chart to come inwith a 21.7% loss.

Heritage Launches Arbitrationagainst Ugandan GovernmentHeritage Oil & Gas said that it initiatedarbitration against the Ugandan government forthe release of, among other things, the $405million currently held by the Ugandan RevenueAuthority (URA) in escrow with StandardChartered Bank following the company’s saleof its interests in Blocks 1 and 3A in Ugandaon July 26, 2010.

On completion of the sale of its interests inBlock 1 and Block 3A, Heritage received andretained $1.045 billion. An additional $405million (approximately) of the purchase price,was in part deposited with the URA and in anescrow account pending resolution of a taxdispute with the URA. The company says itwants the money released based on advicereceived from tax experts around the world,including Uganda, as the sale of its stakes shouldnot be taxable in Uganda.

Accordingly, the arbitration proceedings concernits claims that the Ugandan governmentwrongfully or unreasonably withheld consentto the sale by Heritage of the rights under thePSAs for the two blocks, including making thisconsent conditional upon the payment of a sumalleged to be a tax liability.

The arbitration proceedings will be held inLondon in accordance with the provisionsof the PSAs in relation to Block 1 andBlock 3A.

SKANA/MENAReverse Take-over UpdateStockholders of SKANA Capital Corp. andMENA Hydrocarbons Inc. have been mailedproxy-related materials for special meetings ofthe shareholders of the two companies toconsider and approve, among other things,the proposed reverse take-over of SKANAby MENA.

The special meeting of SKANA shareholderswill be held in Vancouver and a special meetingof MENA shareholders will be held Calgary.Subject to the approval of the TSX VentureExchange, the transaction was completedon May 25.

Mart Execs Blocked from TradingMart Resources’ CEO and CFO have beenbanned by the Alberta Securities Commission(ASC) from trading in the stock of the company.Mart chairman and CEO Wade Cherwayko and

CFO Angela Clark have had their trading abilityput on hold due to a delay in the issuance of thecompany’s 2010 financial reports.

In accordance with its guidelines, the ASC hasissued a management cease trade order thatprohibits effective immediately, all trading ofthe securities of the company by Cherwaykoand Clark.

Mart said May 31 was the earliest the statementswere likely to be filed.

Global Works on Conditionsfor Jupiter Petroleum AcquisitionGlobal Petroleum reported that the requisitedocuments needed to obtain approval from theNamibian Competition Committee to acquireJupiter Petroleum have been submitted. The deal,once it goes through, will give Global access toJupiter’s holdings in Namibia and offshoreJuan de Nova, a French dependency in theMozambique Channel.

The sale and purchase agreement to acquireJupiter was conditional on the satisfaction of anumber of conditions precedent, including duediligence investigations, obtaining necessaryconsents from governmental authorities, a reportfrom an independent expert that the transactionis fair and reasonable to Global shareholders,and shareholder approval at a General Meeting.Global is continuing to work towards satisfyingthe conditions precedent as soon as possible. Inorder to allow sufficient time to meet the

conditions precedent for completion, the partiesto the sale and purchase agreement have agreedto extend the end date for satisfaction of theconditions precedent from June 30, 2011 toAugust 31, 2011.

Global is in the process of preparing the Noticeof Meeting seeking shareholder approval for theJupiter transaction. The Notice of Meeting willinclude the independent expert report. Allowingfor the completion and dispatch of the Notice ofMeeting, the company now expects the meetingto be held by late-July.

Tullow on Buying SpreeTullow Oil entered into an agreement to acquirethe interests of EO Group Ltd. (EO) offshoreGhana. Under the conditional agreement Tullowwill spend $305 million in a combined share andcash consideration. The company will issue10,137,196 ordinary shares of 10p each in theshare capital of the company to EO to satisfyapproximately $216 million of the consideration.The balance, which will include certain workingcapital adjustments, will be paid in cash. Thenumber of shares has been determined using anaverage of the closing share prices and exchangerates for the five business days up to andincluding May 24, 2011.

The Irish independent also entered into anagreement to acquire Nuon Exploration andProduction (Nuon E&P) for a cash considerationof €300 million from the Vattenfall Group.The acquisition of Nuon E&P will significantly

enhance Tullow’s North Sea business adding aportfolio of 25 licenses that include over30 producing fields, numerous development andexploration opportunities, and ownership of keyinfrastructure. This portfolio will increasethe Group’s North Sea gas production by9,000 boepd to approximately 23,000 boepdand add reserves and resources of 28 mmboe.The Nuon E&P transaction has an effective dateof January 1, 2011 and is expected to completeby July 2011.

DMTI Forms New DivisionDelta Marine Technologies (DMTI) has entereda new marketplace adding more technical supportto the industry with its newly formed IntegrityManagement Division. DMTI acquired theservices of Les Colter to head-up its newlyformed Integrity Management Division locatedin its corporate offices in Montgomery, TX.

In the coming months, DMTI will be completingthe necessary equipment purchases and hiringstaff, which will be trained and certified to meetcurrent challenges being thrust upon facilitiesand pipeline operators in the United States. And,if the trend follows previous patterns, DMTIwill be solving the same issues worldwide.The move from a “reactive” operator to a“proactive” operator is necessary to meet theproper risk management philosophy in whichsystems are required to have addressed allpossible threats to the structure’s integrity,whether they be above grade facilities, buriedor subsea pipelines.

Sudan’s BashirSeizes Disputed Abyei AreaThe Khartoum government, led by Omar al Bashir,has taken control of the disputed oil-rich territoryof Abyei. The region straddles the boundarybetween the north and south and was actually leftout of the equation when the borders weredemarcated so that the two sides could come toan amicable agreement over the region.

The UN estimates that 30,000 people have beendisplaced after continuous fighting between thenorth and south. However, a local official saidthat up to 80,000 South Sudanese may have fledtheir homes after northern forces seized Abyei.The region is claimed by both sides with Sudanesepresident, Omar al Bashir saying at a rally inApril, “Abyei is located in north Sudan and willremain in north Sudan.”

On May 28, northern and southern Sudaneserepresentatives met to defuse tensions over Abyei.Analysts worry that the northern takeover ofAbyei could spark another civil war which wouldovershadow the newly gained independence ofthe south. Salva Kiir, president of South Sudan,said that there would not be a war over theincursion and that it would not derailindependence.

Tunisian Elections Could be DelayedThe planned July 24 election to decide on Tunisia’snext leader may be postponed until mid-October,according to the head of the country’s independentelection committee, Kamel Jandoubi.

The country’s current prime minister Beji CaidEssebsi said on May 27 that while the poll hadyet to be delayed, he would support the decisionof the electoral commission. Jandoubi followedby saying, “The High Independent Panel chargedwith preparing elections has prepared a calendarthat sets October 16 as the date of the electionfor the constituent assembly.”

Jandoubi said the need to change the date wasfor operational purposes though some oppositionparties claims it is political. The July electionschedule will only have given the interim

government in Tunisia just over six months toput the necessary infrastucture in place for freeand fair elections.

The political parties are divided on thepostponement of the election, with most arguingthat a delay could lead to instability and otherssaying that the postponement will provide timefor a proper campaign.

Crisis in Libya ContinuesThe battle between Libyan ruler MuammarQaddafi and opposition forces continues to wageon with a new round of NATO air strikes in thecountry’s capital of Tripoli that began on May23. International opposition to Qaddafi is growing.Russian president Dmitry Medvedev offered tomediate the longtime leader’s exit, saying thatQaddafi had “forfeited legitimacy.”

Previous attempts at an exit strategy for Qaddafihave been undertaken by the African Union,Turkey, and the UN, but to no avail. Russia’sremarks indicate a turning point it had previouslycriticized NATO’s involvement in the NorthAfrican country.

Meanwhile, Italy has set up a group of governmentrepresentatives and companies to secure dealswith Libyan rebels. A source was quoted in aReuters report as saying: “The group’s aim is toset up relations with rebels and revive trade.Operations are being coordinated by the[foreign office].”

Sierra Leone Holds Special Courtover Former Liberian PresidentSierra Leone judges have issued two separatecontempt proceedings to be held in a specialcourt regarding allegations that severalindividuals associated with former presidentCharles Taylor as well as members of the ArmedForces Revolutionary Council (AFRC) haveattempted to bribe witnesses.

The former Liberian president is being held forwar crimes and other serious charges committedin Sierra Leone from November 1996 to January2002. The first contempt allegation has it that

people acting on behalf of the defense for Taylor,attempted to bribe several prosecution witnessesto recant their statements.

The trial chamber judges granted the prosecution’srequest and on March 18 ordered the Registrarof the Court to appoint an independent counselto investigate the allegations. On April 21, thecounsel concluded that there was sufficientevidence on the bribery charges. Four peoplehave been indicted for contempt.

Sudan, Chad, and CARJoin for Border ProtectionSudan, Chad, and the Central African Republic(CAR) have agreed to renew an agreement toestablish joint forces to protect their borders. Thepresidents of the three countries met in Khartoumon May 23, issuing a final communiqué thatestablishes a consultative mechanism to ramp upsecurity forces.

Sudan and Chad had previously signed a jointsecurity protocol which created joint forces tocombat opposition groups from crossing borders.Chadian president Idriss Deby said: “The standingsecurity coordination among the three countriesdoes not target a particular party, but it is anexpression of the common will in facing standingchallenges. It is based on the charter governingthe work of the African organizations and it isopen for any party willing to join.”

Suspected SeparatistRebel Attack in SenegalReports have armed men, presumed to beseparatist rebels, attacking Senegal’s Djinbanarvillage on May 28. Allegations have themembers as part of the Casamance Movement ofDemocratic Forces (MFDC) – a rebel group thathas been fighting for independence from Senegalsince 1982.

Locals told news sources that one man was killedwhile eight shops were looted. The conflict isconsidered one of Africa’s longest, and a revivalof the fighting came at the end of 2010 with atleast 19 Senegalese soldiers killed.

African Politics

Alternative Energy AfricaThe Authoritywww.AE-Africa.com


Downstream Focus

By Chikezie NwaohaDownstream Correspondent

BACK TO BASICS

ipeline corrosion is an inevitable concern in the oil and gasindustry, and is mainly due to the reservoir fluids tapped duringthe exploration, production and/or processing operations. These

constituents, one or all of them, may be present in varying compositions.Each one of the component in the fluid has an influence on the corrosivityof the fluid and will determine the performance of the pipeline materialsin contact. This phenomenon is cost effective in terms of pipelinefailure and repair, contaminated product, human safety, environmentaldamage, and downtime resulting in lost production. Some of thecorrosive mechanisms generally observed in the oil and gas industry,control mechanisms and management, are briefly discussed in thefollowing sections.

Types of CorrosionCO2 Corrosion (Sweet Corrosion)CO2 is one of the main corroding agents in oil and gas productionsystems. CO2 will mix with the water forming Carbonic acid makingthe fluid acidic (reducing the pH value). CO2 corrosion is influenced bytemperature and an increase in pH value. At elevated temperatures ironcarbide (Siderite) scale will form on the material as a protective scaleand the corrosion rate is reduced as a result. The metal starts corrodingunder these conditions and results in the ringworm form of corrosion.

CO2 corrosion is enhanced in the presence of oxygen and organic acidswhich dissolve the protective iron carbide scale and prevent furtherscale formation.

Galvanic CorrosionThis type of corrosion occurs when two metallic materials with differentelectrochemical potential (nobility) are in contact and are exposed toan electrolytic environment. In this scenario the metal with the leastor most negative potential becomes anode and starts corroding. Theleading type of galvanic corrosion occurs in a coupling between stainlesssteel or nickel alloys with carbon or low alloy steels in a de-aeratedenvironment.

Hydrogen EmbrittlementHydrogen Embrittlement is simply the reduction of metal ductility, ortoughness, due to the presence or absorption of atomic hydrogen. Thisembrittlement may occur during fabrication or through hydrogenabsorption from its environment. Hydrogen embrittlement in itself isnot detrimental to the integrity of the pipe but may lead to cracking,blistering, and weakening of the metal.

Microbial Influenced Corrosion (MIC)This form of corrosion is induced due to the presence of sulfate reducingbacterium which grows in anaerobic conditions. The formation of thesecolonies are promoted by neutral water, especially when stagnant. Theyare most commonly found in cooling water systems.

Stress Corrosion Cracking (SCC)This type of corrosion is aggravated by the presence of chlorides inthe media. The presence of chlorides in the process media can attackthe material through the de-passivation effect induced by chloride ions.With SCC, stress in the metal initiates the corrosion process and leadsto cracking. The hydrogen produced from this form of corrosion canaggravate the condition further. Stress Corrosion Cracking can bedetrimental to the integrity of the pipe network.

Corrosion MonitoringThere are various monitoring techniques and strategies applied in themodern day industry. Below are classifications on the basis of intrusive,inline inspection, non-intrusive and laboratory test. Some are appliedalone while some are applied in conjunction with others to get thedesired corrosion level.

IntrusiveThis type is time consuming and requires the operation to cease beforeinstallation.

Weight-Loss Coupons This method directly monitors corrosion by way of placing a metal

PPipeline Corrosion Monitoring, Control and Management

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Downstream Focus

coupon inside the pipe for a period of time, say at least six months,and then removes it. The only inference one can make is that theweight loss occurred linearly over that time.

Advantages: Simplest method for direct corrosion monitoring; longtrack record of use; equipment is inexpensive; highly versatile.

Limitations: Pipe must be shut down to install and retrieve data andis labor intensive to repeat; data not real-time; impractical to use inremote areas due to labor required to collect data; intrusive style ofmonitoring; a reactive, not proactive corrosion monitor.

Electrical Resistance Probes (ER)These are introduced into the product stream and provide a measureof metal loss based on increases in electrical resistance as the metalcorrodes. The devices can remain in-situ, connected to a SCADAsystem like any other sensor.

Advantage: May be used as a continuous monitor; may be categorizedas a proactive monitor if it is hooked up directly; data is not affectedby temperature changes.

Limitations: Pipe must be shut down to install; data not real-time;pigging can not be performed while ER probe is installed; ER probescan only be used in liquid phase environments, therefore they can’tdetect corrosion in the gas phases; scaling on the surface of theelectrical probes can cause incorrect readings.

Inline Inspection/Intelligent or Smart PigsMagnetic Flux (MFL)In an MFL tool, a magnetic detector is placed between the poles ofthe magnet to detect the leakage field. When the tool passes a locationwhere the amount of metal in the pipe wall has been decreased bya corrosion or pitting corrosion , a leakage of magnetic flux takesplace. Figure shows the principle of MFL for pipeline inspection.

Ultrasonic PigsIn ultrasonic pigs, the sound energy is introduced and propagatesthrough the materials in the form of waves. When there is adiscontinuity (such as a crack) in the wave path, part of the energywill be reflected back from the flaw surface. The reflected wavesignal is transformed into an electrical signal by the transducer andis displayed on a screen.

Non-IntrusiveThis type of monitoring technique does not gain access to the mediato be measured. It does not require any form of shut down.

Clamp-On Ultrasonic Intelligent SensorThis has the same ultrasonic technology, but the difference is thatit is clamp-on.

Advantages: Can locate exact location of wall loss; non-intrusive.

Limitations: Can not be used for continuous corrosion or processmonitoring; labor intensive to repeat.

Field Signature Method (FSM)The field signature method measures corrosion or erosion by detectingsmall changes in current flow due to metal loss. This is achieved viasensing pins which are distributed over the areas to be monitoredand detect changes in the electrical field pattern. FSM can operateat pipe temperatures of up to 500°C.

Laboratory Analysis of Process MediaAnother method is the laboratory analysis of process media. Laboratoryanalysis of process gas samples can detect impurities and otherchemicals that promote or signal corrosion. Labs often measure pH,dissolved gas (02, CO2, H2S, etc.), metal ion count (Fe2 and Fe3 ), andmicrobiological organisms.

Pipeline Corrosion ManagementEffective corrosion management programs start in the equipment designby selecting corrosion-resistant materials appropriate for the particularpurpose. Other programs include changing corrosive media whenpresent, and applying the appropriate coating.

Corrosion-Resistant Materials (Cathodic Protection)When it is observed that the existing material of construction isprone to corrosive attack, it is normally decided to change thematerials of construction and select alternate material to suit thespecific need.

Change of Corrosive Media and/or EnvironmentHere “inhibitors” are applicable to reduce the aggressiveness of themedia. The inhibitors are normally chromates, phosphates, or silicatesadded as per the recommendations of the manufacturer. Also removalof the oxygen from the fluid media improves the chances of corrosionresistance of materials in contact.

Application of CoatingsToday, four main coating systems are commonly used for pipelines:

3LPE (Three layer PE)Suitable for protection for small and large diameter pipelines, withbroad operating temperature range (from -45°C to + 85°C) and abilityto withstand very rough handling and installation practices withoutdamage to the coating. It has three coatings, the first is the fusionbonded epoxy, the second represents copolymer adhesive, and thethird represents polyethelene.

Figure 2: ER Probes

(3LPP) Three layer PP3LPP is good for improved impact and abrasion resistance comparedto 3LPE and is suitable with operation temperatures of morethan 110ºC.

They are recognized for elevated operating temperature (0°C to+140°C) and extreme mechanical stress on the pipes. This also hasthree coatings, the first is the fusion bonded epoxy, the secondrepresents copolymer adhesive, and the third representspolypropylene.

(FBE or Dual FBE) Fusion bonded epoxyDual FBE cost has become quite competitive after increases in coaltar prices. Dual Layer Abrasion Resistant FBE Systems provideexcellent properties for a variety of service applications whichmay include directional drilling and anti-abrasion for road andriver crossings. This type has two coatings, the first is the anti-corrosion coating, and the second represents abrasion resistantovercoat.

(CTE) Coal Tar Enamel and Asphalt EnamelFor many refineries which have their own pipelines, coal tar is the

cheapest coating option, being their own product. Asphalt Enamelis a plant applied, durable coating based on modified bitumen(asphalt). Both systems are declining and suffer from health andenvironmental concerns.

ConclusionIt is imperative to understand corrosion mechanisms before taking intodue consideration the various material options for the applications.Conversely it should be well known that no precise material is a singlebest bet to alleviate corrosion. Proper considerations, taking in allnecessary factors, must precede material selection.

About the AuthorChikezie Nwaoha, AMIMechE is a petroleum engineer (with specialty in processengineering) covering flow systems design, with added focus on natural gasprocessing and distribution. He received his bachelor’s degree at the FederalUniversity of Technology, Owerri. His technical career started with Port HarcourtRefining Company (PHRC) in 2005 and in 2007 as an industrial trainee. Hehas authored several technical articles in leading international journals andis a member of SPE, IMechE, ICE, IGEM, and the Nigerian Gas Association.He is currently the Hon. Secretary of IMechE Young Member Section in Nigeria.He can be reached via [email protected].

References1) Corbin, Darryl and Willson, Elfriede (2007), “New Technology for Real-Time Corrosion Detection” Proceedings of the Tri-Service Corrosion Conference.2) McElroy, Michael I., ‘Q&A: Corrosion Monitoring & Control’, Flow Control, Volume XVI, No. 10 , 2010

3) Nwaoha, Chikezie (2011),“Pipeline Corrosion Monitoring, Detection and Management: Back to Basics” Proceedings of the 11th Technical Meeting of Pipeline Professionals’ Association of Nigeria (PLAN) March 24, Novotel Hotel, Port Harcourt.


Monthly Focus

Annual Independents Survey & Awards

2010 EXAMINED

7th

Exploration and production opportunities within the African continent still attract the interest of Independents of every size from all cornersof the globe, leaving the continent’s landscape heavily dotted with their presence. This year’s Annual Independents Survey & Awards wasas exciting as ever for our Survey Committee to judge with all the new entrants and developments over the year. As opposed to the 2009Survey when the activity of the mid- and small-size independents’ was notably slower because of the financial crunch, 2010 saw thoseindependents make a rebound of sorts. Operators enjoyed higher oil prices over 2010 and thus those with production were not under theconstraints of 2009. However, both strategy and luck made the difference for more than a few, whether producers or pure explorationists.

This year’s line-up features many of the mainstays in the continent and newcomers to both our semi-finalist and finalist rosters that did abang-up job, and also features a couple of independents for the last time as they have been acquired by larger companies. While many ofthe finalists from last year still stand in these categories, the small and mid-size categories saw a number of new companies, and there wereothers still that did not make the 2010 final cut. We look forward to potentially seeing them again in our next Annual Survey.

Assisting us once again in this Survey were many companies who actively participated by providing us accurate operational and financialinformation. A sincere thank you goes out to top management along with those in communications and investor relations who took thetime to answer all of our questions.

Decision-making Process and CriteriaAs with each year, the 7th Annual Independents Survey & Awards wasundertaken by grouping companies according to their marketcapitalizations to ensure that the fairest possible comparison was made.For each group there is a winner. To qualify for any award, over 2010the oil company must have held at least one operated property(or technical operator status) within Africa, and had a marketcapitalization that did not exceed $35 billion at the end of December2010. And to be considered an indigenous oil company, ownershipfrom African capital must have exceeded 50%. Non-publicly tradedcompanies were included and categorized based on information eitherprovided by the companies themselves, or through documents ofpublic record. In this year’s survey we evaluated over 120 independentsof all sizes from around the globe, listed and private. The process ofelimination brought the number of companies up for serious award

consideration down to 28. From this list the final cut was made at 20companies competing within our four market capitalization categories.Included herein is a list of semifinalists who deserve recognition, alongwith a brief operational summary highlighting the accomplishments ofthose companies who made the final contenders list in each category.

The complete scope of activities over 2010 was analyzed includingacreage and corporate acquisitions, the entire upstream spectrum frompre-exploration all the way up to production, through transport todownstream facilities. The criteria taken under consideration duringthe judging phase is specific to African operations and included totalacreage, number of discoveries, total production, year-end exit reserves,technical achievements, and milestones. While a number of companiesoperating in Africa have made notable achievements since the turn ofthe year, only 2010 data were analyzed.

7th

Semi-finalists – Anadarko Petroleum, Apache Corp., Hess Corp.,Marathon Oil, Noble Energy, Sasol Petroleum, and Tullow Oil

The Super Independents turned in fantastic performances over 2010with each realizing at least one major accomplishment in additionto their already busy work programs, making this category arguablythe most difficult to select a winner from. Four of our five finalistsmake a repeat appearance from last year while Sasol returns to the

line-up after a few-year absence. And the finalists are…

AnadarkoAnadarko Petroleum Corp. built on the progress it made in 2009 andturned 2010 into one of the most successful it has had in Africa. As anequity participant in the Jubilee Field offshore Ghana, the companyadded West African production to its portfolio in December. Anadarkoalso added another West African success to its discovery belt and talliedup more frontier offshore discoveries on the other side of the continent.

Anadarko saw three of the largest discoveries in all of Africa during2010 with the Windjammer, Barquentine, and Lagosta wells offshoreMozambique, with the three wells hitting 555, 416, and 550 net feetof natural gas respectively. The company also began drilling the Collierprospect. The well encountered pore pressure issues at the top of thepredicted reservoir and was suspended in a manner which would allowre-entry of the wellbore at a later date, pending analysis of all relevantwell data. On the other three wells Anadarko, based on the expectedresource potential of these discoveries, began moving forward withappraisal and commercialization plans for the natural gas discovered.Perhaps the most exciting event for Anadarko offshore Mozambiquecame with the drilling of the Ironclad-1 well which encountered bothoil and gas. The oil encountered in the Ironclad well is the firstdocumented occurrence of liquid hydrocarbons in deepwater offshoreEast Africa. It should be noted that the parties involved are cautiouslyoptimistic and not many details have been released on the well.

Algeria, traditionally Anadarko’s African bread and butter, accountedfor over half of its daily production totals worldwide during 2010,about 55,000 boepd, compared to its worldwide average of about87,500 boepd. Anadarko continued work on the El Merk development

on Block 208, including construction of the Central Processing Facilityand associated infrastructure. The project was 65% complete as ofDecember 31 and is scheduled to come online during 2012. Anadarkoalso drilled around 22 wells during 2010 in Algeria.

In November Anadarko added Sierra Leone to its packet of successeswhen the Mercury-1 well encountered hydrocarbons of good quality andquantity. Light crude oil was encountered at 15,950 feet, in water depthsof 5,250 feet, encountering 135 net feet of oil. In Kenya’s Lamu Basin,blocks L5, L7, L11A, L11B, and L12, the company continued planningfor a 3D seismic program. Elsewhere in West Africa, Cote d’Ivoirespecifically, the company acquired a 460 sq mile 3D seismic survey overits operated CI-105 license and initiated a 425 sq mile 3D survey overCI-103 where it has a non-operated interest. Anadarko also holds aninterest in the Kosmos Energy and Tullow Oil blocks that house theJubilee Field and where new field discoveries were made in 2010.

Apache Corp.US-based Apache Corp. could be considered a one trick pony in Africa– until recently only holding African acreage in Egypt – but what apony it is. The company is one of the most active on the continent andis the number one independent producer in Egypt. Apache holds over11 million acres in Egypt with proved reserves of 307 million boe.

2010 was a goal-achieving year for the company. In late 2005Apache set a bold goal to double production from its Egyptian assetsin five years, increasing gross production to more than 326,000 boepd.June 2010 brought the realization of that goal when Apache not onlymet, but exceeded the goal hitting the 330,000 boepd mark. By the endof 2010 the company had increased production even further bringingit up to 350,000 boepd.

Apache is one of the busiest drillers in Africa, whether it be exploration,appraisal, workovers, or recompletions. During 2010 the companydrilled 204 wells, with 177 of those being productive. The companyadded to its Egyptian acreage over the year when it purchased fourleases “under-development” and one exploration concession from BPin November. Apache announced the West Kalabsha I-1X discoveryin the Faghur Basin of Egypt’s Western desert in March. The well,located about 10 miles southwest of the Phiops field, test-flowed at arate of 4,554 bopd and 10.1 Mmcf/d of natural gas from 105 feet ofnet pay in the Jurassic Safa formation.

The company also completed waterflood programs in the Qarun JointVenture, commissioning and improving oil and gas processing to handleincreased hydrocarbon volumes.

Super IndependentsSuper Independents

Market Capitalization: $10 billion-$35 billion

Last Year’s Independent Award Winners

Anadarko Petroleum

Addax Petroleum Circle Oil

Oando Plc

Melrose Resources

Maurel et Prom


Monthly Focus

Hess Corp.Hess Corp. returns to the survey and awards lineup once again. Thecompany holds acreage positions in North and West Africa where itsholdings account for 224 million barrels of oil equivalent (boe) of itsproved developed reserves and 56 million boe of its proved undevelopedreserves. Hess produced on average a total of 113,000 net bopd fromAfrica, with the majority of the contribution coming out of EquatorialGuinea and Libya. During 2010, 37% of its crude oil and natural gasliquids production was from African operations. At the end of 2010,18% of the corporation’s total proved reserves were located in Africa(Libya 11%, Equatorial Guinea 6%, and Algeria 1%).

Over 2010 the company made three wildcat discoveries in Libya as apartner in the Waha Group. The first discovery, the 6R1-59 wildcatexploration well, was drilled to a total depth of 11,400 feet. Initialtesting of the well flowed from the Lidam at an average rate of 1,321bpd of crude and 1.2 Mmcf/d of gas. The next discovery was with thedrilling of the 6P1-59 new field wildcat well; this well was drilled toa total depth of 12,450 feet and initial production testing from the Girestablished an oil flow rate of 637 bpd. The third discovery made camewith the drilling of the UU1-71 new field wildcat well which flowed ata rate of 765 bopd. The company also operates independently in Libyaholding title to Area 54 in the Sirte Basin where last year it was givena five-year extension to the license.

Egypt is home to the West Mediterranean Block 1 concessionwhere Hess holds a 55% stake. The company also has an interest inBlock 1 offshore Egypt in the north Red Sea where a well was spudin December. Hess entered a farm-out agreement with Premier Oil inlate-2010 to farm down its stake in the block to 80%.

In Algeria Hess has a 49% interest in a venture with Sonatrach wherethe partners redeveloped three oil fields – the El Agreb, El Gassi, andthe Zotti. The company also has an interest in Bir El Msana (BMS)Block 401C. Additionally, Hess is in West Africa’s new hot spot, Ghana.The company holds a 100% interest in the Deepwater Tano Cape ThreePoints License. In 2010 it acquired additional 3D seismic data andplans were laid out to drill a second exploration well on the block.

Equatorial Guinea is home to the majority of Hess’ production numbersin Africa. It is the operator and owns an 85% interest in Block G whichcontains the Ceiba Field and Okume Complex. In 2010, the companyacquired a 4D seismic survey covering the Okume Complex and theCeiba Field.

SasolSasol, or the Sasol group of companies, is the largest independent onthe continent. With operations that span upstream, downstream, mining,refining, petrochemicals and beyond, the company realized successover 2010 on all fronts, domestically and internationally.

On the domestic front, in Mozambique where Sasol produces gas andcondensate from the Pande and Temane onshore gas fields, the companymaintained steady output in 2010, despite reduced demand as a resultof the global economic slowdown. In 2010, Sasol and its partners –

Companhia Moçambicana de Hidrocarbonetos and the InternationalFinance Corporation – produced and sold 107.4 M GJ of natural gas,compared with 106.8 M GJ in 2009. Work continued on the$300 million expansion of its onshore gas production facilities at Pandeand Temane to increase production capacity, aimed to supplyadditional gas to customers in Mozambique and in South Africa. Thecompany also completed the construction of a new compressor stationat Komatipoort, close to the Mozambican border. The new stationincreases the export capacity for natural gas deliveries along the865-km pipeline by about 20%.

Further in Mozambique, the exploration drilling campaign in offshoreblocks 16 and 19 discovered gas, though because of reservoir complexitySasol does not expect to develop the wells in the near future. However,the company acquired exploration rights in the adjacent Sofala andM-10 blocks and success in either of these two new blocks couldpossibly allow for blocks 16 and 19 to be developed. Sasol and Petronasacquired the offshore M-10 Block on an equal 50% equity basis withSasol subsidiary SPI as operator. SPI acquired 100% equity in theSofala Block. Subsequently, 15% in each permit was offered to statecompany ENH, resulting in an equity distribution of 42.5% each forSPI and Petronas in the M-10 Block. In September the company signedan agreement to explore in concession Area A, covering approximately8,370 sq km onshore Mozambique, also adjacent to the Pande andTemane gas fields. Sasol holds a 90% operated interest.

On its home turf, near the end of 2010 Sasol and partners Chesapeakeand Statoil were awarded a petroleum technical cooperation permit(TCP) to assess and quantify the prospective shale gas resource in theonshore Karoo Basin in South Africa. The partners plan to evaluateexisting and available geological information within the area to determinethe potential for shale gas.

In Gabon’s Etame field Sasol is partnered with operator Vaalco Energy.Over 2010 two new wells in the satellite Ebouri field were broughtinto production, and the partners laid plans for drilling an explorationwell in the southeast of the Etame field. These activities are aimed atsustaining production levels and extending asset life. The partnersrecently renewed their exploration rights for the permit area offshoreGabon until 2014 and extended the production licenses for the satelliteAvoumi field through 2025 and Ebouri through 2026.

TullowTullow, as always, had another banner year as an independent operatorin Africa. The company saw its working interest production average58,100 bpd and its three year reserves replacement ratio hit 250%.Tullow’s exploration success ratio reached 83% for the year findinghydrocarbons in 24 out of 29 wells. The company also increased itsholdings in Africa and brought one development online.

In what will probably become known as the company’s signatureproject in Africa, Tullow brought the Jubilee Field in Ghana online inDecember, just 40 months after first discovery. The company and itspartners worked at a feverish pace to bring this subsea developmentonline, on time and within budget. Also in Ghana the company continued


with its exploration program over 2010 drilling six exploration andappraisal wells, with a 67% success rate. Tullow’s four successful wellsnetted the company a total of 143 meters of net pay and established anew oil zone offshore Ghana with the success of the Owo-1 well andthe Owo-1ST, now the Enyenra.

The Jubilee Field Development in Ghana is just one of over a dozenprojects around the continent for Tullow who has holdings in 15 Africannations. The company also has operator status in at least one propertyin 11 of those countries.

In Cote d’Ivoire Tullow holds stakes in four properties, one of themoperated. Over 2010 the firm realized 3,850 boepd on an averageworking interest production basis in the country. Across the continentin Uganda, activity was slowed due to tax issues beyond Tullow’scontrol emanating from its purchase of former partner Heritage Oil’sstakes in Blocks 1 and 3A, which led to a whole other set of issuesbetween the Ugandan government and Tullow. Despite this the companywas able to complete the acquisition in July 2010 and negotiate theremainder of the year with farm-in partners Total and CNOOC, bringingmajor players into Uganda in early 2011. Even with all the upheavaland negotiating in Uganda, Tullow still drilled 10 exploration andappraisal wells with a 100% success rate on the Ugandan properties.

Tullow expanded its position in the continent as well. In September,it acquired a 50% operated interest in six adjacent licenses from AfricaOil, covering the East African Rift Basins of Kenya and Ethiopia overan area of 97,000 sq km, expanding on the farm-in to Block 10BAfrom Centric Energy announced in August. Tullow now holds newinterests in five licenses – Blocks 10BB, 10A, 12A, and 13T in Kenyaand the South Omo Block in Ethiopia.

Major accomplishments in Tullow’s non-operated properties include itsparticipation in yet another frontier discovery with the drilling ofthe Mercury-1 well offshore Sierra Leone with operator Anadarko.The company had a participating interest in the Block 2 Cormoran-1well offshore Mauritania which resulted in a decent natural gasdiscovery at a constrained flow rate. The operator Dana Petroleum(KNOC), believes the gas discovery has further potential and may bere-entered later.

Semi-finalists – Afren plc, Dana Gas, Dana Petroleum, Kosmos Energy,Maurel et Prom, PA Resources, and TransGlobe Energy

The Large Independents once again turned in outstandingperformances, but like last year, we noted that this market cap

category continues to shrink, with companies either being snappedup by a larger firm or organic growth moving them up to the SuperIndependent category. This will be the last appearance for Dana

Petroleum who is now part of the Korea National Oil Corp. Now on to the finalists…

AfrenAfren amassed a significant amount of acreage across the continent,increased its production, made some key acquistions, and looks as if itmight grow to be Tullowesque in stature. At the close of 2010 thecompany had a market cap of roughly $2 billion and held 29 assets in11 different African countries. Known as a West African explorer withholdings from Nigeria to South Africa, during the year the companybroadened its horizons and journeyed across the continent to East Africawith a key aquisition. The company is now present in Nigeria, Ghana,Côte d’Ivoire, Nigeria and São Tomé & Príncipe JDZ, Republic of Congo,South Africa, Ethiopia, Kenya, Madagascar, the Seychelles, and Tanzania.

Afren has massive tracts of acreage and net production totaling14,333 boepd from a portion of its assets, including in Nigeria whereit holds nine interests in both onshore and offshore blocks. Afrendrilled the offshore Ebok Deep well on OML 67 to a total depth of11,375 feet, intersecting two sandstone intervals of 370 feet combinedthickness in the targeted Biafra and Isongo formations. The PhaseI development of the Ebok Field began and included production testingon three of the five horizontal production wells, all of which led to thestart of production in 2011. At the Okoro field, during November workcommenced on the Okoro-11 and Okoro-12 infill production wells.

The company, through its 45% stake in First Hydrocarbon Nigeria(FHN), added to its onshore portfolio and upped its production flowswhen FHN acquired a stake in OML 26. In January Afren also pickedup a stake in OML 115 in the eastern Niger Delta, which surroundsthe Okwok field and extends to within around 2 km of the Ebok field.The company expanded its interest later in the year when it acquiredthe remainder of Energy Equity Resources’ stake in the field. Afrenbegan an exploration and appraisal drilling campaign on OML 115which included the August spud of the Okwok-9 appraisal well whichwas drilled to 8,053 feet and completed over a 35 ft interval, flowing31° API crude oil. Afren expects to be able to deliver significantproduction and operational synergies between the three Nigerian fields.

In Cote d’Ivoire, home to Afren’s other producing assets, the companysaw an average production rate of 5,088 boepd from Block CI-11.Afren conducted a wireline workover program during the year toremove wellbore wax build up and obtain down hole pressure data.Afren is the sole owner of the Lion Gas Plant, which processes gasfrom the CI-11 and adjacent CI-26 and CI-40 blocks operated byCanadian Natural Resources. 2010 NGL production was 721 boepd.

Afren holds a stake in Ghana’s Keta Block where the Cuda-1X wasdrilled but not tested in 2009 due to pressure issues. In-depth subsurfacestudies were undertaken over the year to gain further understanding ofthe broader prospectivity of the block, and several large prospects wereidentified. The block saw its estimate of gross unrisked prospectiveresources more than double as a result of the studies.

In June 2010 Afren picked up the East Africa acquisition gauntlet andacquired Black Marlin Energy Holdings for an estimated $101 million.The purchase of Black Marlin gave Afren assets in several East Africancountries through its subsidiary East African Exploration Ltd. (EAX),including Kenya, Ethiopia, Madagascar, and Seychelles. Afren completeda 551-km 2D seismic survey in 2010 over its Ethiopian acreage.

Large IndependentsLarge Independents

Market Capitalization: $1 billion-$9.99 billion


Monthly Focus

Dana GasDana Gas holds three concessions in Egypt and is 100% operator oftwo of those concessions. The company produces from 11 fields in theNile Delta and is a 50% joint operator of one exploration concession,and also produces from one field in Upper Egypt. In 2010 the companywas awarded another four development leases, two of which arecontiguous and sizeable. Over the year the company saw its total provedreserves in Egypt increase by 90% to 89 Mmboe and proved plusprobable reserves by 15% to 152 Mmboe, and its production increasedby 20% bringing it to 42,300 boepd. Its Nile Delta assests were reviewedby Gaffney Cline & Associates over the period and put Dana’s riskedresources at 1.8 Tcf of gas.

The production increase was achieved as a result of five discoveriesmade over the period on the Qantara and West El Manzala concessions.These discoveries – the Sama, the Orchid, the Sharabas, the Faraskur,and the South Faraskur – were all brought onstream over the year. TheSouth Abu El Naga-1ST well in the West El Manzala encountered 7.2and 12.6 meters of net pay in the Abu Madi Upper and Lower formationrespectively, and 4.8 meters in the Kafr El Sheikh formation. Thecompany said that it carried out a multi-rate test on the 12-meter intervalin the Abu Madi Lower reservoir. The interval flowed at a rate of 19.4Mmcf/d of gas and 1,160 bpd of condensate. The discovery’s highliquid yield resulted in higher revenues based on international marketprices for natural gas liquids.

Dana Gas was particularly busy in Upper Egypt (southern Egypt) onits Kom Ombo Concession. Several wells were drilled over the courseof the year and put on production. The company continued with itswork plan to increase the productivity of the Abu Ballas formationutilizing a fracture program. Also during 2010, 480 km of 2D seismicwas acquired and processed, and the Memphis-1 exploration wellcommenced drilling in December.

Dana PetroleumDana Petroleum makes it as a finalist once again, however this will bethe company’s last appearance as it was acquired in a semi-hostiletakeover by the Korea National Oil Corp. (KNOC) in 2010, effectivelyremoving another large independent from the African scene.

Despite the wrangling that went on between Dana Petroleum andKNOC over the year, the UK-based company was able to make goodon its work program during its last three quarters as an independent.Dana also acquired new acreage in North and West Africa, settled asuit with a former partner over East African acreage, and participatedin a number of wells across its acreage portfolio.

Besides battling KNOC, on the corporate front the company startedout the beginning of 2010 closing a deal with Hyperdynamics that gaveit access to some acreage with high potential off the coast of Guinea.The company acquired a 23% participating interest in Hyperdynamics’PSC with the government of Guinea. In August the company settledits contractual dispute with Woodside Energy over the Kenyan acreage,sharing in a lump sum payment of $12 million with partner GlobalPetroleum. Dana Petroleum also expanded its position in Egypt with

the addition of a 50% interest in the El Manzala Offshore AreaConcession partnered with UK major BG.

Operationally the company participated in the drilling of more than afew wells and the acquisition of seismic in Morocco and Guinea. Thecompany recorded two discoveries in June, one with the drilling of theLorcan-1x well on its 100% operated North Zeit Bay PSC in Egypt’sGulf of Suez and the other onshore the East Beni Suef with the drillingof the Fayoum-2x well. The Lorcan-1x encountered good quality oilbearing sands and tested at a rate of 4,714 bopd. The Fayoum-2x wellhit oil in the Upper Bahariya formation, with net pay of 64 feet, andin the A/R G-20 sands, with net pay of 10 feet. Test data indicates thatthe well should be capable of flowing at rates of approximately 600boepd. In July the company discovered a new oil field in Egypt, alsoon the North Zeit Bay property, with the drilling of the Fin-1x wellwhich tested at a rate of 1,049 bopd on a 52/64” choke. Dana reportedthat the flow rate was restricted by the temporary flow testingfacilities and the requirements to truck the produced oil from thedesert location.

The company hit once again in Egypt near the end of the year with theNefertiti Prospect on the South October Concession in the Gulf ofSuez. The well was technically challenging being highly deviated anddrilled from an onshore location. It was drilled to 14,150 feet MD andencountered 65 feet of oil bearing sands. The reservoir was moderatelypressure depleted and the flow test was completed using an ESP. Danaexpects to secure 3.9-6.5 million barrels of resources from the well.The company also had a participating interest in the Bamboo prospectdrilled by GDF Suez in the Nile Delta.

As operator of Block 7 in Mauritania, Dana spud the Cormoran-1 wellwhich resulted in a gas discovery at the end of 2010. The wellencountered four separate gas columns and flowed at a rate of around23 Mmcf/d from the 33 meter Lower Pelican Group interval. Danasaid the flow rate was constrained due to the need to avoid sandproduction and that substantially higher flow rates could have beenachieved were it not for this operational constraint.

Maurel et PromMaurel et Prom holds considerable acreage in East and West Africa,operating in five African countries. Over the course of 2010 the Frenchfirm focused on two major growth areas in Africa; Gabon and Nigeria.The company ramped up production in Gabon, developing the OMBGand OMGW fields rapidly and at a low cost, following the receipt of theExclusive Exploitation Authorization from the government. TheOMGW-102, OMGW-103, and the OMGW-201 wells were drilledduring the period and brought onstream through the Onal field’sproduction center.

The company also discovered the OMOC-North field over the yearand began its development shortly thereafter. Appraisal drilling on theOMOC-North began in July. The OMOC-N-301 and OMOC-N-302were connected to the evacuation pipeline from the Onal platforms inDecember. Maurel et Prom’s average production rate over 2010 inGabon was 14,618 bpd.


In somewhat of a surprise move, the company officially sealed adeal in 2010 giving it access to Nigerian production acreage when it tooka 45% stake in indigenous company Seplat Petroleum. Through its sharein Seplat, Maurel et Prom gained rights to Nigeria’s OMLs 4, 38, and41. Production was integrated progressively during H2 2010. Based onthe 128 production days in 2010, the fields produced 17,632 bpd ofwhich Maurel et Prom’s share was 3,570 bpd.

In Tanzania the company holds stakes of 35% or better in five permitsand is operator of four of those permits. One of its permits, the Mafia-Deep was evaluated as having between 1.97 and 4.15 Tcf of gas. Thecompany is looking for a farm-in partner to fund the studies necessaryto determine how much of this gas is commercially viable. Over the yearMaurel et Prom drilled the Kianika-1 exploration well on its operatedMandawa exploration permit. The well achieved all of the plannedobjectives and showed good reservoir characteristics, confirming theregion’s potential. Despite the positives of the well, no hydrocarbonswere detected and the well was abandoned.

The company drilled a few wells in the ROC during the year;unfortunately they were less than successful. Both the NGoumba-1Dand the M’Bafou exploration wells were drilled on the Marine IIIpermit and both were subsequently plugged and abandoned. Maurelet Prom also drilled the Tié-Tié-NE-1 well on its operated La Noumbipermit. The well was a bit more successful, but not by much. Duringdrilling a silty sandstone zone was encountered that showed hydrocarbonindicators. Measurements indicated that production (mainly naturalgas) would not be commercially viable because of the distance to anypotential market.

TransGlobe EnergyTransGlobe Energy had a banner year. The company holds workinginterests in four concessions in Egypt, three with a 50% stake or better.TransGlobe recorded substantial growth in reserves and productionover the year with its operated concessions in Egypt being primarycontributors to those increases. The company’s Egyptian 1P reservesgrew 16% over 2009 numbers, representing a production replacementof 181%. Accordingly, its 2P and 3P year-over-year increases representeda production replacement of 369% and 558% respectively.

The most significant reserves additions for 2010 came from theexploration and appraisal drilling on the Arta/East Arta in West Ghariband the Safwa discovery in East Ghazalat. The discovery of the Nukhuloil pools in the Arta and East Arta leases resulted in significant reservesgrowth. In January 2010, TransGlobe farmed-in for a 50% interest inthe 858 sq km Western Desert East Ghazalat exploration concession,which it hopes will contribute to future reserves increases.

Operationally the company had a hugely busy year, drilling numerouswells and overcoming some challenges. The main challenge met byTransGlobe was faced at West Gharib in early 2010 where the Nukhulreservoirs have variable reservoir quality and low permeability sandsthat required fracture stimulation to improve production and oil recoveryrates. The company improved flows in the first four fracture stimulationsand then rapidly confirmed the success of this technique by drilling 18

new wells, increasing Arta/East Arta production from 140 bopd to over3,000 bopd. The company accelerated the development program bybringing a second rig into the Arta/East Arta fields in mid-2010.

Overall the company drilled 31 wells, resulting in 24 successes (fourat Hana, six at Arta, five at East Arta, two at North Hoshia, one at eachof Hana West, Hoshia and South Rahmi, and four at East Ghazalat).All in all the company saw a good success rate in its 2010 drillingprogram and by the end of the year was producing from Egypt about8,000 bopd net, up from Q1 production of around 6,800 bopd.

Semi-finalists – Bowleven plc, Melrose Resources, Ophir Energy,Petroceltic International, Vaalco Energy, and Vanco Energy

The mid-size independents rebounded during 2010, outshining their2009 performances that were hindered with budget and funding

constraints. All of our 2010 finalists made remarkable progress oneither the corporate or technical front, some on both fronts. Over2010 they pushed through their delayed agendas and edged out a

tough field of competitors. Now on to the finalists…

Melrose ResourcesMelrose Resources is a staple in our Annual Survey and Awards. Thecompany holds three concessions in Egypt with a 100% operatedinterest and holds a 40% operated interest in a frontier explorationblock in Upper Egypt, the Mesaha. A good majority of its productionis generated from these concessions. The company’s average productionon a working interest basis in 2010 from its Egyptian holdings was189.6 Mmcf/d of gas and 6,251 bpd of oil, condensate, and LPG. Netentitlement production averaged 76.2 Mmcf/d of gas and 2,587 bpdof hydrocarbon liquids. Total global average production for the yearreached a record level of 38,944 boepd on a working interest basis,representing an increase of 4.6% over the previous year.

Melrose undertook an active exploration campaign during the period,completed the expansion of field facilities, and added a furtherdevelopment to its portfolio. The company drilled four explorationwells during 2010 with one success – the 26 Bcf South Damas discoveryin February – and placed it on production in four months. The companysaw Phase II of the expansion of the West Dikirnis field facilitiescompleted during Q2 of the year. This included the installation of afractionation plant to recover LPG from the field’s associated gasproduction and gas re-injection facilities to maximize the recovery ofoil, condensate, and LPG from the field.

The company also acquired additional 2D and 3D seismic data in theunder-explored South East Mansoura Concession. The program wasdesigned to evaluate a new oil exploration play in the Cretaceous andJurassic formation. In the Mesaha Concession, a 1,047 km 2D seismicacquisition program was completed in early 2010 which provided

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further insight into the basin’s architecture and sufficient encouragementto justify an infill seismic survey in 2011.

Melrose continued with its active reservoir management program tooptimize individual well withdrawal rates in the West Dikirnis field toprevent premature water breakthrough and minimize gas productionvolumes. In 2010 the field produced from six wells. The company alsorecompleted the Salaka Field on the Mansoura Concession to tap theKafr El Sheik reservoir.

Ophir EnergyOphir Energy’s portfolio boasts 19 concessions spread over eightAfrican countries and the company serves as operator on all but oneof those concessions. Ophir’s acreage covers Senegal, the AGC,Equatorial Guinea, Republic of Congo, and Gabon in West Africa;Western Sahara in North Africa; and Tanzania, Madagascar, andSomaliland in East Africa. As of December 31 the company was oneof the top five holders of deepwater exploration acreage in Africa interms of net acreage, according to IHS Energy. Ophir negotiated dealsaplenty across the continent that have added value to the company andresulted in a number of successes, including in its drilling program.

The company brought BG Group onboard its assets in Tanzania whereit realized two gas discoveries over 2010. The Pweza-1 well drilled onBlock 4 in the Mafia Basin encountered a natural gas column of nearly60 meters. The well was followed up by the Chewa-1 well, its seconddiscovery. As operator of the block, Ophir entered into gascommercialization agreements with the government of Tanzania. Itshould be noted that despite BG taking a majority interest in the blocks,Ophir remained operator of the acreage, although BG has the optionto take on operatorship once the initial work program is complete.

In Equatorial Guinea the company interpreted new 3D seismic dataand completed the conceptual field design project for Block R, andentered into the two-year first extension period for the block. Ophirentered into an agreement with FAR to earn the right to acquire a 25%interest in its Senegal license areas covering an area of 7,490 sq km.The deal also enabled FAR to immediately acquire a 10% interest inOphir’s AGC Profond PSC offshore Senegal and Guinea Bissau. A rigwas contracted to drill the AGC Profond’s Kora Prospect. Ophir alsotook the decision to exit Block 3 in the Nigeria/Sao Tome and PrincipeJoint Development Zone after a sub-commercial discovery.

In July Ophir expanded its East African position with the acquisitionof an 80% interest and operatorship of the Marovoay Block 2102 PSC,onshore Madagascar. The block lies in the coastal area of northwestMadagascar covering an area in excess of 12,000 sq km. The companyconducted an airborne gradiometry and magnetic survey over Block2102. In Gabon, where Ophir has four blocks, it undertook marinegradiometry surveys and also entered into negotiations to farm-outstakes in its Mbeli and Ntsina blocks.

Petroceltic plcIrish independent Petroceltic International makes it to the finals againthis year based on its operations in North Africa. The company holds

stakes in Algeria and Tunisia with the former providing it with asignificant resource base. In H1 the company successfully raised cashto fund an appraisal program on Algeria’s Isarene Permit, began theprocess of finding a partner to aid in bringing its resources onstream,and extended its stay in Algeria.

Petroceltic is the operator of the Ksar Hadada Permit in southeasternTunisia. The company completed a 2D seismic survey and subsequentprocessing on the acreage in early 2010, followed by the commencementof a two-well drilling campaign in July 2010. The first explorationwell, the Oryx-1, reached its total depth at 1,140 meters. The wellencountered oil shows in both the upper and lower Ordovician reservoirunits however, the well was not tested. The Sidi Toui-4 was spud inAugust and drilled to a total depth of 1,603 meters. The two wells didnot produce the results Petroceltic was looking for and both wereplugged and abandoned. Under a farm-out agreement entered into in2009 both the wells were drilled with little cost to Petroceltic.

The company was busy on the Isarene Permit, starting off the year withthe completion of its five-well drilling program, begun in 2009, thatresulted in the discovery of the Ain Tsila gas condensate field. TheFebruary testing program confirmed the Ain Tsila as a major new gascondensate discovery. According to the company’s internal estimatesthe most likely gas initially in place is 6 Tcf. Petroceltic also saw twodiscoveries with the drilling of the INE-2 and INW-2 wells in the earlypart of the year. In April the company signed an Addendum to PSC forthe Isarene Block giving it a two-year extension to carry out appraisalwork on the four discovery areas on the block, namely Ain Tsila, IsareneNorth East, Isarene North West, and Hassi Tabtab. The appraisal periodbegan in late-April 2010.

In July a significant step toward launching its 2010 drilling programtook place when the company secured the services of Dalma Energy’sland rig No. 12, leading to the spud of the AT-4 well in November. Thewell was a success encountering a gross gas column of 155 meterswith no gas-water contact observed. Additionally, static reservoirpressure readings indicated that the main Ordovician gas reservoir inthis area is in the same pressure regime as that encountered at wellsAT-1, AT-2, and AT-3.

VAALCO EnergyVAALCO Energy makes it to the finals once again based on itsperformance in Gabon. The company was able to fund its productionand development operations, and its exploration program from cashflows, which included drilling more than a few wells. The companyalso holds a stake in Angola’s Block 5.

The company operates on the producing Etame Marin Concessionoffshore Gabon and the onshore Mutamba Iroru Concession. VAALCOproduced a total of 7.3 million barrels over the course of 2010 fromthe Etame Marin Concession and reached an agreement with TotalGabon to establish a joint operation on the Mutamba Iroru, securinga second extension of the exploration period until May 2012. VAALCO’syear in Gabon consisted of three new wells being brought online, therecompletion of another well, and a new discovery.


The company launched an aggressive drilling program at the start ofthe year, planning four wells on the Etame Marin Concession andexpanding the program to six before the year was over. The companydrilled a development well, the Ebouri 4H, from the Ebouri platformwhich began producing oil in May. A successful workover of the Ebouri3-H well to replace submersible pumps was completed, as well as anexploration well with two sidetracks in the Southeast Etame Field,which resulted in an oil discovery in the Gamba reservoir.

The Etame 7H development well, a subsea completion, began addingto the company’s production totals in December when it was successfullyhooked-up by undersea connections. VAALCO also drilled adevelopment well on the South Tchibala field, the South Tchibala 2H,which was tied-in and began producing oil in November. Well numbersix was on the Omangou prospect which was water-bearing in theobjective reservoir and subsequently abandoned.

Steps were taken in 2010 to get back on track in Angola, working withthe government to rectify the situation of the non-performing partner,leading to the partner being removed late in the year. VAALCO remainscommitted to the project despite the delay and as such opened a dataroom for prospective partners in an effort to move exploration forward.

Vanco EnergyVanco Energy is one of the first independents to see the potential ofWest Africa’s frontier deepwater acreage and holds stakes in three WestAfrican countries – Cote d’Ivoire, Equatorial Guinea, and West Africa’snewest sweet spot Ghana. The company was busy over the year firmingup leads, conducting seismic, and drilling wells.

The company added to its seismic portfolio in Ghana with the acquisitionof more than 1,600 sq km of new 3D data on the Cape Three PointsDeep Water Block. In February 2010, Vanco Ghana Ltd. as operator,drilled the first well ever on its Ghanaian block. At that time, the wellwas not only the first drilled on the block but also the deepest-waterexploration well drilled to date in the Ghanaian Tano Basin. Vancodrilled the well to a depth of 4,433 meters, using the Sedco 702 andat 3,653 meters encountered a gross hydrocarbon column of 94 meterswith 25 meters of net stacked oil and gas pay. The primary reservoirsandstone between the depths of 3,663 and 3,690 meters contains gasand light oil. Volatile black oil was also recovered from a zone between3,701 and 3,709 meters.

In April the first well on Cote d’Ivoire’s Block CI-401 was drilled, theOrca-1X bis. The well was drilled to a total depth of 4,015 metersbelow sea level in a water depth of 1,868 meters, encountering thinoil-bearing sandstone reservoirs. Oil samples were recovered fromCampanian and Turonian sandstones during the course of drillingoperations. The Orca-1X bis well was plugged and temporarilyabandoned, having confirmed the availability of an active petroleumsystem for future exploration.

In Equatorial Guinea the company signed a signed a Contract ofParticipation in Hydrocarbon Production for Block K, offshore Corisco

Bay in southeast Equatorial Guinea. The block covers an area of5,460 sq km and contains numerous high-potential Tertiary andCretaceous prospective features. The contract became effective uponpresidential ratification on September 3.

Semi-finalists – ADX Energy, Africa Oil Corp., Circle Oil,Cooper Energy, Energulf Resources, Orca Exploration,Sea Dragon Energy, and Vanoil Energy

The small independents struggled a bit over the past year and manythat traditionally make it through to our later judging rounds didnot move on. Despite the tough year, a number of independents

made the cut to our semi-finals for the first time and also dominatethe final roster, having achieved impressive results. And now on to

the small cap finalists…

ADX EnergyMaking it to the show for the first time is ADX Energy (formerlyAudax Energy). The company had a very busy year on its assets inTunisia. The company has an operated interest in the Kerkouane andPantelleria Licenses in the Sicily Channel offshore Tunisia; thesepermits are contiguous across the Tunisian-Italian border with a totalarea of 4,504 sq km. The company also has an operated interest inTunisia’s Chorbane License. Over the period the company had anumber of accomplishments on these assets, from maturing aprospect to securing the right rig for drilling, to farming out stakes, notonce or twice, but three times. The company also saw a discoveryin Tunisia.

In early 2010 ADX reached an agreement for Gulfsands Petroleum tofarm-in on the Chorbane and Kerkouane Permits. ADX and GulfKeystone expanded the farm-in agreement in June giving Gulf a totalof 30% in the permits. The company also entered into agreements withBombora Energy and PharmAust. Bombora will earn a 10% interestin the Chorbane by paying 20% of the first exploration well, andPharmAust will earn 10% in the Chorbane and Kerkouane.

During the year the company matured the Lambouka (offshore Tunisia)and Sidi Daher (onshore Tunisia) prospects for drilling. The companyacquired 3D over the Sicily Channel permits, including the Lamboukaprospect. The seismic was completed one week ahead of scheduledespite the challenging weather faced in the Sicily Channel. ADX sawa significant increase in the resource potential at its Dougga gascondensate discovery, made in the 1980s, on the Kerkouane. Thecompany came to the resource increase conclusion based on the resultsof a remapping using its leading edge dual sensor 3D seismic dataacquired earlier in the year. The company secured the use of the AtwoodSouthern Cross for drilling, leading to the Lambouka-1 discovery well.ADX reported that the analysis of the final suite of wire line logs on

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the well showed at least two hydrocarbon bearing zones present in theAbiod Formation, intersecting a gas column of approximately 25 meters.

ADX saw its stay extended on the Chorbane permit in March. Thecompany also issued tenders for drilling services for the drilling of theSidi Daher Prospect in September with an eye toward spudding a wellon the Chorbane in December. Technical work on the Sidi DaherProspect over the year identified a Direct Hydrocarbon Indicator in theEocene-age Metlaoui Formation strata that significantly enhanced theexpectation of success and upgraded the prospect to a ready to drillstatus. In December ADX Energy reported that the rig tender evaluationwas approved by ETAP, giving the company the choice of four compliantand technically capable onshore rigs.

Africa Oil Corp.Africa Oil Corp. graduated from being a semi-finalist in last year’sawards to being a finalist this year. Based on its activities over 2010and early 2011 this will be the last year that the company qualifies asa Small Independent, look to see the company in the mid-size categoryin the next round of awards.

A host of acquisitions, farm-ins, and farm-outs put Africa Oil incontention for an award this year. The company increased its holdingsin East Africa, now holding stakes in three East African countries andone West African country. The company over 2010 achieved significantcorporate accomplishments adding interests in five blocks in the EastAfrican Tertiary Rift System and two blocks in the Central AfricanRift Trend to its portfolio. Africa Oil also had the savvy to bring in aheavy hitter to aid it in its exploration endeavors.

During August the company completed a farm-in transaction, acquiringan 80% participating interest and operatorship of the South Omo Blockin Ethiopia and then turned around and farmed out a stake to EastAfrican success magnet Tullow Oil. During September Africa Oilcompleted the assignment of a 100% interest in Blocks 12A and 13Tin Kenya and based on negotiations over 2010, Tullow will be joiningthe company on these blocks also. The company launched negotiationsin 2010 to acquire two firms, Centric Energy and Lion Energy. Whilethese deals did not close in 2010 they did pave the way for the entranceof Tullow Oil into Africa Oil’s exploration acreage, at least in the caseof the Lion Energy acquisition.

Africa Oil also farmed out stakes in its Ethiopian acreage in June toRed Emperor Resources. Under the terms of the agreement, RedEmperor will earn a 10% interest in both the Dharoor and NugaalValley Blocks and is committed to paying a disproportionate shareof costs related to the one-well drilling commitment includedin the first exploration period of both the Dharoor and NugaalValley PSAs.

Operationally the company participated in the drilling of theBoghal-1 well on Kenya’s Block 9. While the well was spud in 2009a majority of drilling as well as testing took place in 2010. At the outsetof drilling the Boghal-1 well the operator of the block was China’sCNOOC however, the Chinese firm bowed out of the project and AfricaOil took on the role of operator.

The company also stayed busy with seismic over the period in oneform or another. In Kenya a tender for the acquisition of 600 km onBlock 10BB was completed. On Block 10BA the company reprocessedall available seismic data. In Ethiopia it processed the data from its2009 2D acquisition over 500 km in the Adigala Area and initiatedseismic in the Ogaden Area. In Puntland the company completed acomprehensive interpretation of 2D seismic data over the DharoorBlock, and on the Nugaal Bock the re-interpretation of the existing 2Dseismic data was completed.

Circle OilFor the third year in a row Circle Oil makes it to the finals as a smallindependent. The company holds stakes in three North African countries;Egypt, Morocco, and Tunisia. In Morocco, where the company holdsthe status of operator, its drilling program in 2009 led to an extendedproduction test on the Sebou Permit’s KSR-8 well in early-2010 andthe eventual start up of production from the well in H1 2010. Circlealso expanded its acreage position in Morocco during the year whenit was awarded the Lalla Mimouna area. The petroleum agreementcovers the Lalla Mimouna Nord and Lalla Mimouna Sud Explorationpermits in the Rharb Basin.

While the company’s 2010 drilling program in Morocco was held upby flooding in the early part of the year, it did manage to make adiscovery with the drilling of the KAB-1 exploration well in H2.The well was drilled to a total depth of 1,400 meters in the Guebbasunit and significant gas shows were observed at expected levelsduring drilling and wireline logging and pressure sampling toolswere prepared for formation evaluation. The KAB-1 well wasfollowed by the CFD-11 well. This well was drilled to 1,171 metersMD and encountered multiple significant gas shows atfour levels.

As a non-operating partner on various concessions in Egypt, Circle Oilrealized positive results. In February, the Geyad-2X ST1 well commencedproduction in the onshore NW Gemsa Concession. The well initiallyproduced at a rate of approximately 2,100 bpd, bringing the overalladjusted daily production from the Al Amir Development Lease andthe Geyad wells to over 9,200 bpd. Also on the NW Gemsa the AlAmir SE-6X well was reported a success in June, testing a hydrocarbonbearing interval over a pay zone of approximately eight feet in thicknessin the Lower Rudeis within the 13,776 to 13,784 ft interval. A drillstem test flowed oil at a sustained average rate of 66 bpd and 1.1Mmcf/d of gas using a 32/64-inch choke.

In November the Al Ola-1X well added more success on the NWGemsa for the partners. The Kareem Rahmi formation sandstonesflowed 42° API oil at an average rate of 1,575 bopd and 1.65 Mmscf/dof gas on a 32/64-inch choke from the lower of the two identifiedpay zones.

The company also holds a stake in Tunisia’s Grombalia Permit. Whileno drilling took place on the permit in 2010, Circle did initiate plansfor drilling, ordering long-lead time drilling materials well in advance.In late-2010 Circle was in the process of finalizing technical studiesto decide on the optimum drilling location.

Vanoil EnergyVanoil Energy makes it to the final line-up for the first time this year.Formerly mining company Vangold, the company split in late 2009,reinventing itself into a pure E&P company. Under the Vanoil bannerit has undertaken a concerted effort to explored Rwanda’s frontieracreage and added Kenyan acreage to its portfolio. Over 2010 thecompany continued with its geophysical work over a large swathe ofvirgin territory.

The company started the year off with a successful rights offering inJanuary. By February Vanoil had completed its Rights Offering, issuingover eight million common shares. In September Vanoil began a cashraising exercise which closed in December, and with an extensionnetted the company over $3.4 million.

Operationally the company was very busy in Kenya where it holds24,960 sq km in Block 3A and 3B. In March Vanoil submitted itsenvironmental impact assessment (EIA) for Block 3A and Block 3Bin northeast Kenya which included an environmental management andmonitoring plan for its upcoming 2010 seismic program on the blocks.The final reports were also submitted to the EIA coordinatingauthority and the Kenya National Environment ManagementAuthority. In September Vanoil launched a comprehensive 2D seismicprogram on Block 3A. By October approximately 409 line-km of new2D seismic on five structural leads in the Anza Graben was completed.The company acquired an additional 38 line-km in Block 3B, whichsurveyed a structural lead in the Lamu Embayment Basin.

Vanoil was also busy in Rwanda where it holds a production sharingagreement covering 1,631 sq km in the East Kivu Graben, part of theEast African Rift System. In November Vanoil commenced a 300 kmhigh resolution, low impact seismic and magnetic survey over LakeKivu. The high-resolution seismic reflection survey was the fourth partof an EIA survey undertaken by Vanoil earlier in 2010.

The results of the first part of the EIA supported the view that the well-known methane gas of Lake Kivu has a mixed biogenic and thermogenic

origin following the laboratory work conducted by GH GeuchemLaboratory UK. The objective of the second part of the EIA programwas to determine by laboratory modeling the energy required toexcite dissolved gases from Lake Kivu waters while the third part ofthe EIA was to determine an optimal seismic source from asafety perspective.

Victoria Oil & GasVictoria Oil & Gas Plc (VOG) returns to our Survey for the secondyear running. The company is active in Cameroon on the onshoreLogbaba concession which is a project aimed at bringing previouslydiscovered natural gas reserves, once thought to be non-commercialby the majors, online.

VOG started off the year nearing total depth on its La-105 well. Thewell reached a total depth of 8,920 feet and showed a gross pay inexcess of 300 feet. Multiple gas-bearing sands were encountered atvirgin pressures at depths between 6,017 feet and 8,330 feet, whichVOG said can be correlated to those found and tested in the nearbyLa-103 well. Over the testing period, various zones of La-105 flowedat rates between 11-56 Mmcf/d of natural gas and 210-1,000 bpd ofcondensate. In February the La-106, a deviated well, spud fromthe same well-pad as La-105. The well was designed to twinthe LA-101 well drilled by Elf in the 1950s. The La-106 wasdeemed a success flowing at 22 Mmscf/d. Both wells were completedas producers.

VOG also interpeted the passive seismic spectroscopy survey whichindicated potential hydrocarbon accumulations. The survey findingsare in line with the geological understanding of the Logbaba reservoirsands and correlate well with data from four older wells and theLa-105 well. The data was the first new geophysical information to beacquired over Logbaba since the discovery was made in the 1950s.On the corporate front VOG continued to secure gas sales agreementswith industrial end-users, undertook capital raising exercises, andworked with the authorities toward receiving its exploitation authorizationand domestic transport authorization licenses.


Year after year Ophir Energy hasplugged away on the corporatefront, growing an African portfoliothat even Tullow could admire. Ophir’s efforts have begun to payoff overthe past few years resulting in deep-pocket partners joining the game andimpressive drilling programs offshore the east and west coasts. Over 2010the company exercised corporate savvy, reducing its risk in the AGC Profondwhile gaining access to acreage in Senegal on reasonable terms, andbringing BG Group into its deepwater East African acreage. Ophir wasno slouch on the technical side either, completing conceptual field studies,a 3D seismic interpretation program, and drilling two deepwater discoveries.It is for these accomplishments that Ophir Energy is Petroleum Africa’s2010 Mid-size Independent award winner. Congratulations Ophir!

And the winners are…….

It will come as no surprise tothose who are familiar withAfrican E&P operations thatAnadarko undertook a jam-packed work program with tremendous success last year. Anadarko realizedsuccess with the drill bit, adeptly drilling several deepwater discoveriesand opening up new plays in the offshore frontier of East Africa,Mozambique specifically. It also proved up its 2009 West Africa discoverywith another 2010 strike on its Sierra Leone acreage and progressed itsEl Merk development and related CPF facilities in Algeria. These feats,among others, are impressive and have earned the company the nod fromour Survey Committee once again. Petroleum Africa gladly names AnadarkoPetroleum Corp. its 2010 Super Independent award winner.

Super Independent

Mid-Size Independent

While many of our finalists in allcategories had significantdiscoveries in their own right,there was no doubt by our Survey Committee that Anadarko’s three naturalgas discoveries offshore Mozambique earned it the Discovery of the Yearaward. Not only were each of the discoveries significant in size, but alsoproved up a new hydrocarbon province for future industry exploration.And if indeed the fourth discovery, the Ironclad, is confirmed to havefound oil, the game will have changed for exploration offshore the entirecoast of East Africa. Congratulations to Anadarko for becoming a twofoldwinner in this year’s Survey & Awards!

AnadarkoDiscovery of the Year

“We are the World”, or at least “We are Africa” could have been Tullow’s catch-phrase over 2010. The companyhas taken itself from coast to coast in Africa over the year working deals, drilling wells, and making discoveries.In Uganda, the company managed to negotiate itself out of a difficult situation, bring in new partners, and drill10 wells. The company also wheeled and dealed itself into more than one block in Kenya and some frontieracreage in Ethiopia. All of this combined with bringing Ghana’s sophisticated subsea development online just 40 odd months after discovery whileadding more discoveries off the country’s coast, earns Tullow Petroleum Africa’s Operator of the Year Award. Congratulations on another brilliant year!

Tullow Oil

Operator of the Year

This year the run for the SmallIndependent award was tight, anda clear consensus by the surveycommittee was not reached,leaving no choice but to award co-winners. This year the award is sharedbetween Circle Oil and ADX Energy. Circle Oil, for the third year running,makes it to the winner’s ‘circle’. The company added to Morocco’s gasreserve totals through its drilling program and added to its acreageposition. Circle also had a participating interest in major drilling programsin Egypt, adding to its production totals over the year. In Tunisia Circlefirmed up work plans and finalized technical studies for drilling. ADXEnergy, the co-winner, managed to wheel and deal its way into drillingin Tunisia with little or no cost to the company. Its deal making abilitybrought in partners on its assets which led to a discovery with the drillingof the deep offshore Lambouka-1 well. ADX also extended its stay inTunisia and conducted technical studies on the Chorbane Permit, maturingleads for its drilling program this year, and significantly upgraded itsreserves totals on the offshore Dougga discovery. Congratulations toCircle Oil and ADX Energy for taking the Small Indpendent award!

Small Independent

While not winning the SuperIndependent award where it is afinalist, Sasol is well deservingof the 2010 Indigenous Independent Award for its aggressive expansionprogram to bring Mozambican gas south, which included facilitiesexpansion and a drilling program. It also added a license for the Karooshale hunt, and showed moxy in further expanding its exploration portfoliointernationally, picking up Block AC/P 52 in Australia. Congratulationsto Sasol, Petroleum Africa’s 2010 Indidgenous Independent Award winner!

Indigenous Independentof the Year

Sasol

While all of our finalists in thiscategory had a fantastic run over2010, we felt Afren had the edge.The company undertook anaggressive and successful development program in Nigeria geared tomore than double its production this year. The additional revenue willserve Afren well in funding upcoming exploration in highly prospectiveEast African acreage following its purchase of Black Marlin Energy andsubsidiaries. In addition to this, Afren conducted a workover programin Cote d’Ivoire and upgraded its prospects in Ethiopia and Ghanatoward drill status. It is for these accomplishments that Petroleum Africafinds Afren deserving of its 2010 Large Independent award.Congratulations, well done Afren!

Large Independent

Monthly Focus

Afren plc

ADX EnergyOphir Energy

Circle Oil

Co-winners

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AnadarkoPetroleum Corp.


Local Impact

“We have the longest boarder to be controlled militarily but the(Republic of South Sudan) RoSS will always work with the northerncounterpart to maintain security in the region,” said Major GeneralGier Chuang Aluong, Minister of Interior, Government of South Sudan.– April 29, 2011.

Just about a month ago when the Minister made this statement whileaddressing a cheerful crowd in Cairo, Egypt many South Sudanesewere concerned over Abyei issues being unresolved before July 9. ButAluong tried to allay their fears. “The Government of South Sudan(GoSS) under leadership of the SPLA and its president Salva Kiir hasno intention to go back to war with the north,” Aluong said. However,he also expressed concern and warned that Abyei could possiblypush the south back to war with the north. The Minister said he wishedthe north would not continue its ongoing campaign of sponsoringinsurgency.

Aluong said the military build up in the region was real, resonatingreports by Hollywood actor and Sudan activist George Clooney’smonitoring agents. He also said the massive military machines ofKhartoum were just 20 miles away from the boarder waiting to occupyAbyei and to occupy the rest of South Sudan. He went on to say thatnobody should be surprised if the two sides plunged back to war afterJuly 9, because of Khartoum’s provocative attitude. Examples ofprovocation include ignoring the international ruling in The Hagueregarding Abyei, its support of the Lords Resistance Army, extendingits boarder into western Bar el Ghazal, and bombing southern territoryas witnessed during the referendum voting in January.

By May 23, the northern Army had rolled into the town of Abyei andis still occupying it. The president of the Republic of Sudan [the north]gave the green light to his general in Abyei to attack any element thatposed a threat to his forces without his concurrence. In some circlesthis sounds like a declaration of war from the side of the north, not astate that is still a peace partner with South Sudan.

However, the president of SouthSudan has called upon his peacecounterpart in the north towithdraw his forces from Abyeiunconditionally. Khartoum hassaid they are willing to negotiateover Abyei, but their military willstay put for the meantime.

Minister Aluong responded tomany questions raised by differentgroups representating chiefs and women to youth and students. Aluongalso briefed his audience on the general security situation in SouthSudan. He said out of the ten states of the RoSS, Jongolei is the statethat experiences the most trouble due to cattle rustling and childabduction among the tribal communities. Regarding renegade formerSPLA commander George Athor who is from the same district as theminister, and those who followed his example like David Gadet, Aluongsays they continue to receive support from Khartoum whose aim is todestabilize GoSS. He said Khartoum is responsible for most of thetroubles in the South by providing weapons and ammunition even tothose tribes that raid cattle from others. There is more than enoughevidence he said, pointing to aircraft captured by SPLA forces last yearwhile it was airlifting George’s followers to a training location. Thecraft was registered to Khartoum Aviation Service. He said “we canconfirm that by tracing back the aircraft to the manufacturer to findout who has purchased it in the first place.”

In regard to the question of corruption in the RoSS, the Ministerresponded by saying that corruption is not an institution in SouthSudan’s governing system, but an individual choice of some governmentofficials in the system and GoSS is trying to get rid of them. “Thereis no one who is above the law in the RoSS,” Aluong said.The Minister cheered up the crowd with some positive answers regardingtheir questions and concerns, including allegations by the UN about

By Leo OchiraSouth Sudan Contributor

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Minister Aluong

recruits abused in the UN-sponsored police academy in Rajaf. He saidthose stories were either untrue or isolated incidents, and those whoclaimed to have been victimized had the right to come forward andfile a complaint against those abusive officials. He went on to say thattraining must be tough in order to build a solid and disciplined policeforce in South Sudan. Those who do not measure up to the standardmust step aside and look for other employment opportunities insteadof making up stories. He also said the UN threat to withdraw fundsfrom the Police Academy is even more inhuman than an alleged abusein the center.

Aluong is widely respected by his fellow government officials as wellas international agencies, for his role in improving security in the capitalof Juba, especially during the referendum. He designed a program thatreined in idle young men and women from the streets of Juba and otherSouth Sudan state capitals, and trained them in security and to eventuallybecome special police forces tasked with keeping order in all of theSouth during the referendum vote in January. He is also known fordisguising himself and driving civilian vehicles around Juba at nightto catch his officers off guard. His philosophy is to get firsthandinformation about police officers on duty and the security in the city.Regarding the press restriction, Aluong said South Sudan boasts themost liberal and free press in the region. He said even those who are

insulting our president and general are free and protected, in responseto a question I put to him regarding an alleged January raid of TheCitizen Juba, the local newspaper, by intelligence officers. Aluong saidthose responsible might have been some criminal elements that carriedout the raid.

Aluong assured the South Sudanese group in Cairo that new ID cardsand passports would be provided to all citizens, including thosechildren who were born of South Sudanese mothers but abandoned bytheir foreign fathers. And he promised to discuss the securitysituation of the South Sudanese with his counterpart in the Egyptiangovernment. Aluong also encouraged the South Sudanese in Cairo toestablish partnerships with Egyptian businessmen in order tobring business to South Sudan instead of waiting for governmentemployment.

Aluong was on an international tour just two months ahead of theofficial scheduled July independence date for the Republic of SouthSudan (RoSS). The purpose of this tour according to the Minister wasto address some of the many questions the citizens of RoSS put forwardto him. “Issues of new passports and national identity cards forSouth Sudanese living in diaspora have been in the plans of the RoSS,”he concluded.

Local Impact

African Focus

ith over 60 ethnic groups present, Cote d’Ivoire boasts adiverse cultural background going back to the first Frenchsettlers in the 17th century. Over five million non-Ivoirian

Africans reside in the West African nation with one-third fromneighboring Burkina Faso while the rest originate from Ghana, Guinea,Mali, Nigeria, Benin, Senegal, Liberia, and Mauritania.

Cote d’Ivoire officially became a French colony in 1893 after beingunder the European nation’s protection following the 18th centuryinvasion from present-day Ghana. Prior to 1946, the country, considereda part of the Federation of French West Africa, was under French rulebut without the rights of citizenship or representation in Africa orFrance. However, the French government made extensive reforms in1946 to reward African loyalty during World War II including grantingFrench citizenship and abolishing slavery. And 10 years later the 1956Overseas Reform Act transferred a number of powers from Paris to anelected territorial government.

Independence was granted on August 7, 1960 with Felix Houphouet-Boigny elected as the first president of the republic; he ruled until hisdeath in 1993. The president helped Cote d’Ivoire become one of themost stable and prosperous countries on the continent during his overthree-decade reign. That prosperity, however, came to a halt withHouphouet-Boigny’s successor, Henri Konan Bédié.

Cote d’Ivoire suffered during the Bédié years as world market pricesfell for the country’s primary exports – cocoa and coffee. Corruptionand misappropriation of funds led to steep reductions in foreign aid in1998 and 1999, resulting in the nation’s first coup in December 1999which ended Bédié’s presidency.

The bloodless coup, led by General Robert Guei, saw the creation ofa national unity government and a new constitution in 2000. However,mounting tensions between the north and south along religious andethnic lines grew. Elections were originally scheduled for the fall of2000, but the General’s Supreme Court disqualified all of the candidatesfrom the two major parties, Houphouet-Boigny’s Parti Democratiquede la Cote d’Ivoire (PDCI) and Rassemblement des Republicaines(RDR), leading to only two candidates: Guei and Front PopulaireIvoirien (FPI) candidate Laurent Gbagbo. The interim leader disbandedthe election commission after early polls showed Gbagbo as the

frontrunner. Guei declared himself the winner, but a popular uprisingwhich included defected soldiers forced the General to flee. A coupattempt occurred in 2001, but was laid to rest as local municipalelections were accomplished a few weeks later without incident andthe full participation of all political parties.

Although Gbagbo formed a de facto government of national unity thatincluded the RDR party in August 2002, the next month saw anothercoup attempt with exiled military personnel and other conspiratorsattacking government ministers and facilities. The government-oustingplot was foiled, but the attacks resulted in the deaths of Emile BogaDoudou, then Minister of Interior, and several high-ranking militaryofficers. The government launched an aggressive security mission thatdemolished a number of immigrant and Ivoirian shantytowns, displacingover 12,000 people.

Trouble continued for Cote d’Ivoire as the failed coup attempt evolvedinto a civil war with rebel group Patriotic Movement of Cote d’Ivoire(MPCI) controlling the north. Then two new rebel groups – the IvoirianPopular Movement for the Great West (MPIGO) and the Movement

By LeAnne GravesAssociate Editor

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Politics and Economy

President: Alassane Ouattara(December 4, 2010)Independence: August 7, 1960 (France)Population: 21,504,162GDP (purchasing power parity):37.8 billion (2010 est.)Real GDP Growth Rate: 3.6% (2010 est.)Per Capita GDP: $1,800 (2010 est.)Minister of Mines and Energy: Adama ToungaraOil Production: 58,950 bpd (2009 est.)Oil Consumption: 24,000 bpd (2009 est.)Proven Oil Reserves: 250 million barrels (January 2010)Natural Gas Production: 57 Bcf (2008 est.)Natural Gas Consumption: 57 Bcf (2008 est.)Natural Gas Exports: N/AProven Natural Gas Reserves: 1 Tcf (2008 est.)

Source: CIA World Factbook April 26, 2011 and EIA July 14, 2010

COTE D’IVOIRE



for Justice and Peace (MJP) – formed in the western part of the nation,allying with the MPCI. In 2003, the Economic Community of WestAfrican States (ECOWAS) sent approximately 1,500 peacekeepingtroops from five neighboring countries to help France’s 4,000-memberpeacekeeping force. The troops maintained the east-west ceasefire line,known as the Zone of Confidence, dividing the country.

Although tensions remained, the country had begun seeing signs ofrehabilitation. According to the US State Department, non-Africanexpatriates constituted roughly 10,000 French and possibly 60,000Lebanese. The government website said, “As of mid-November 2004,thousands of expatriates, African and non-African, had fled fromthe violence in Cote d’Ivoire. However, many expatriates areslowly returning.”

The country’s first presidential election since its civil war was scheduledfor October 2005, and delayed six times. Finally in 2010 the long-awaited democratic vote became a reality. Gbagbo faced 13 challengerswith the most popular opposition candidate being from the pro-rebelnorth, Alassane Ouattara. The UN deployed 9,000 peacekeepers, andin the month prior to elections Gbagbo passed the final 5.7 millionperson voter roll with the government handing out millions of identitycards. It was said that an estimated $400 million was spent on the state-of-the-art biometric IDs with some observers saying that it was themost expensive election in the world.

The November 28 election saw Ouattara win the popular vote forpresident, but Gbagbo refused to recognize the results. It wasn’t untilOuattara loyalists backed by French and UN troops forced Gbagbofrom power on April 11 this year, that Gbabgo was removed, endinga four-month power struggle that resulted in thousands of deaths.However, fighting has continued between Ouattara’s supporters tryingto overtake forces in pro-Gbagbo areas of the capital Abidjan and otherareas in the Yopougon district. The new president promised to launcha South African-style truth and reconciliation process with some ofGbagbo’s supporters disarming. Ouattara launched a criminal probeagainst the ousted leader, his wife, and 100 other close associatesalleging human rights abuses, including the attacks led by Gbagbo’ssecurity forces on opposition protestors after the election.

Ouattara assured that a new unity government, including members ofGbagbo’s party, would be formed by the end of May with hopes ofrestoring full security to the country by June. However, the new presidentalso faces human rights allegations with Human Rights Watch releasing

a report on April 9 that said Ouattara’s loyalists killed hundreds ofcivilians, raped over 20 Gbagbo supporters, and burned at least 10villages. Ouattara’s envoy to the UN rejected the allegations, but thepresident said that justice must be applied across the board for all thoseguilty of atrocities.

The bloody political crisis has left the world’s top cocoa producer’seconomy paralyzed. Although the West African country is an oilproducer, the economy remains tied to its agricultural sector which isresponsible for 24% of its GDP, according to the US State Department.Its major crops beside cocoa include coffee, timber, rubber, corn, rice,and tropical foods. Petroleum was discovered in 1977 and productionbegan in 1980. The exports of crude oil and refined oil products totaled$2.97 billion in 2008.

Cote d’Ivoire’s export numbers totaled about $10.9 billion in 2008.Most of the country’s exports hit its top trading partners includingGermany, Nigeria, the Netherlands, France, and the US. For its importmarket, Nigeria, France, and China make up the bulk supplying itemslike fuel, consumer goods, and capital goods.

However, because of the most recent instability within the country, theeconomy came to a halt with exports frozen briefly in late-January.The quality of living had seen a sharp decline in the 1980s and 1990sas a result of an increase in the population and an economic decline.A majority of residents depend on small landholder cash crop productionwith between 60% and 70% of Ivoirians working in agriculture.

Abidjan was formerly West Africa’s economic capital, and it is attemptingto achieve an economic rebound. The end of April saw a large numberof international companies resume operations signaling a quickerrecovery after more than a decade of conflict. Local and internationalfinanciers have restarted trade, to an extent, with authorities reportingthat all banks within the country had reopened.

The most significant sign is the African Development Bank(AfDB)discussing its move back into the country after leaving itsAbidjan headquarters in 2003. The AfDB said in a statement thatrelocating its temporary headquarters from Tunis back to Abidjan waspossible with recent positive developments, which it felt would in duecourse “lead to improved security, permitting AfDB to return to itsheadquarters.” While markets are temporarily on the uptick, the country’seconomic stability hinging on the government’s ability to provideconsistency and security.

Cote d’Ivoire Upstream

African Focus

Despite a civil war that erupted in 1999, Cote d’Ivoire saw its petroleumindustry take off in 2001. Six years later, oil exports came in with 28%of the government’s export revenues, edging out the country’s traditionalexport commodities of cocoa and coffee. And in May 2006, the WestAfrican nation announced its endorsement of the Extractive IndustriesTransparency Initiative (EITI) which gave it two years to becomecompliant with the organization’s criteria which was seen as a way tofurther boost foreign investment in the hydrocarbon sector. On July 1,

2010, the EITI board agreed to grant Cote d’Ivoire a deadline extensionto November 12, 2010 to complete validation. The country submittedits final Validation Report on November 11, 2011.

O&G BeginningsCote d’Ivoire’s proven recoverable oil reserves have been estimatedat 250 million barrels according to the CIA World Factbook as of

Viking Moorings Addressing Cote d’Ivoire’s

Mooring Challenges

African operators today are facing significant challenges and pressuresin their mooring operations as they look to maximize the use of semi-submersible drilling rigs in exploratory drilling activities and ensurethe greatest possible returns from their target fields.

Such challenges include the increased focus in Africa on deepwaterdiscoveries – often in hostile and remote operating conditions – andthe sometimes variable water depths rigs must operate in, the complexityof today’s subsea production systems that mooring providers must workaround, and the all important need to manage costs. There is a need formooring providers to move rigs as quickly and seamlessly as possiblewhile, at the same time, ensuring that the integrity of assets and safetyaren’t compromised.

Against this context, pre-set mooring installations have becomeincreasingly popular in African mooring operations.

Establishing the mooring infrastructure in advance of the rig’s arrivalensures greater precision and control over the positioning of the mooringsolutions around existing infrastructure and improved safety as mooringsolutions can be put in place months in advance. The result is a morestrategic and flexible approach to supporting offshore installations andthe maximizing of the use and value of the rigs.

January 1, 2010. The country also has recoverable gas reserves of about1.1 Tcf. The country’s oil resources were discovered in the 1970s withUS-based international oil companies (IOCs) like Exxon and Phillipsjumping in to secure licenses to develop several Ivorian fields. Thisresulted in a production increase that enabled Cote d’Ivoire to nearlymeet domestic oil demand; however, these companies terminated theiroperations as a result of rising production costs and unprofitable profitsharing agreements; paving the way for the entrance of a host ofindependent firms.

The country’s status as an oil producer advanced with the technologiesof the day; prior to the mid-1990s the economic viability of Coted’Ivoire’s reserves was not thought significant, but that changed whentechnologies in extraction advanced. However, by that time the majorityof larger oil companies had pulled out of the country paving the wayfor the entrance of independent oil and gas firms. Today the country’sproduction is due in fact to a few well placed independent firms.

Shortly after the Ivorian oil boom, the country established a state-runoil and gas firm, the Societe National d’Operations Petrolieres de laCote d’Ivoire (Petroci), to oversee operations in 1975. In 1998 thegovernment restructured Petroci by dividing it into four entities whichincluded Petroci Holding which was state-owned and responsible forthe state’s portfolio management in the oil sector and the threesubsidiaries: Petroci Exploration-Production (upstream hydrocarbonactivities), Petroci-Gaz (natural gas), and Petroci Industries-Services(miscellaneous related services). However, the restructuring wasunsuccessful resulting in another shuffle in 2000 that more closelyresembled Petroci’s original setup. Petroci’s role now includes thedevelopment and maintenance of the main database on the country’s oilassets and the assumption of minority participation (generally between5% and 15%) in offshore operations with international companies.

E&P TodayBefore being ousted, Laurent Gbagbo’s administration had an ambitioustarget to more than double crude production to 200,000 barrels per day(bpd). Although offshore resources are typically more costly to developcompared to onshore resources, Cote d’Ivoire is a special case. Offshoreoil fields limit IOC exposure to political volatility and the civilwar that exploded in 1999 did not have an effect on the country’soil production.

With recent oil discoveries along the Gulf of Guinea, including Ghana’sJubilee field, IOCs are landing in droves to reevaluate West Africa’spotential, Cote d’Ivoire included. Ghanaian Jubilee field operatorTullow Oil plc came full throttle into the Ivoirian scene with its mid-October 2009 announcement that its findings on the South GrandLahou-1 wildcat well offshore Cote d’Ivoire would provide valuableproprietary insights into the ongoing prioritization of the numerousJubilee-type prospects in the Equatorial Atlantic inventory. Tullow’sexploration director Angus McCoss said: “The South Grand Lahou-1wildcat follows a remarkable opening run of 10 successful exploratorywells in our Equatorial Atlantic licenses. This well found the reservoirsto be water-bearing at this location, but provides critical knowledge toguide the forward program which targets a number of Jubilee-likeprospects in this exciting play fairway.”


Viking Moorings, a provider of total mooring solutions to the offshoreoil and gas industry, recently installed a pre-laid mooring solution forNoble Drilling’s Homer Ferrington semi-submersible drilling rig whichwas to be moored at the Baobab oil field, off the Ivory Coast.

The Baobab field, operated by Canadian Natural Resources (CNR),began production in late 2005 with initial production averaging 48,000bpd. These production rates later declined, however, due to sand controlproblems. Part of the brief of the Homer Ferrington rig was to repaira number of these wells affected by sand.

For the site in question, there were two separate drilling locations 1,000meters apart which would have required two completely separatemooring systems if CNR was to adopt a conventional mooring strategy.

Other challenges included significant differences in water depthsbetween the shallowest and deepest anchors (600 meters), positive andnegative seabed slopes, and an uneven depth in soft soil at each anchorlocation. This had led to previous problems in deploying conventionaldrag embedment mooring systems, resulting in considerablerig downtime.

Viking developed a pre-set mooring solution so that the rig could skidbetween the two drill centers. A taut leg mooring system, using muchshorter synthetic fiber ropes and with a more compact footprint thanthe more common catenary mooring systems, was deployed.

Allowing both drill centers to be accessed from a single mooring patternled to significantly reduced rig move time and improved mooringsystem performance with less riser downtime, less interruption to thedrilling, and the optimization of drilling services using batch drilling.With careful management of the riser (due to the depth variationsbetween drill centers), it was also possible to skid the rig with theblowout preventer (BOP) deployed.

The mooring solution also only required Vertical Load Anchors (VLA)to be deployed once with no delays encountered and a reduction inAnchor Handling Tugs (AHT) investment.

With the Homer Ferrington rig available for a fixed 365-day period,the operator’s original plan was to repair five wells which were failingdue to sand production. With the time efficiencies made by employinga pre-lay mooring strategy, the operator was able to deliver four entirelynew wells. The project was regarded as very successful with costsavings estimated by CNR to be in the region of $75 million.

While Cote d’Ivoire could be riding on Ghana’s Jubilee coattails, thetwo countries have encountered disputes over Ghana’s maritimeboundary including Ghana’s Dzata-1 drilled by Vanco Energy andLukoil. Cote d’Ivoire claims that part of Ghana’s maritime area is underIvorian rule as the Gulf of Guinea border has never been formallydemarcated although neighbors had respected a “median line,” accordingto Ghana’s Lands and Natural Resources minister Collins Dauda onan independent radio station Citi FM. Both countries have submittedproposals on their sea boundary to the UN, which would be calledupon to mediate if talks break down.

The country’s main producer, Canadian Natural Resources (CNR),operator of the Espoir and Baobab, saw production slow a bit over2010. The company said that its Q2 2010 production was impacted bya shut down planned at Espoir for installation of facilities upgrades.While the shut down impacted production totals for Q2 the completionof upgrades resulted in increased volumes for CNR. Production in thefollowing quarter was within the company’s issued guidance of 32,000bpd to 35,000 bpd.

And only 80 km west ofthe Jubilee offshorediscovery is BlockCI-202 which saw RialtoEnergy Ltd. entering intoa Heads of Agreement toacquire a 75% interest inC+L Natural Resources,the holder of an 85%participating interest in Block CI-202. Rialto recently acquired theremaining 25% stake in C+L Resources, solidifying its position on theblock even further.

The block is a highly prospective petroleum exploration license thatcontains multiple pre-existing un-appraised oil and gas discoveries.While the company was anxious to get started with its explorationprogram on the block, the country’s civil strife put things on hold justa bit; however, Rialto did not remain idle during the downtime. During

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African Focus

the period the company was able to further enhance its technicalunderstanding of the acreage and to evaluate various drilling anddevelopment scenarios. The company said that this has resulted inmanageable delays in respect of the implementation of the work programof approximately 3-4 months, with drilling now planned for Q2 2012.Rialto said that the mapping of drilling candidates in the Gazelle andHippo areas is well advanced. In addition, ongoing subsurface workhas allowed the identification of further substantial exploration upside.It is anticipated that the CI-202 Field Development Plan (FDP) will beready for submission to authorities the early part of Q3.

US independentVanco Energy andRussian firm Lukoilare investing asubstantial amounton their assets inCote d’Ivoire. OverJune-September2009, Vanco Côted'Ivoire Ltd. asoperator, togetherwith Lukoil andstate oil companyPetroci Holding,

completed the acquisition of more than 2,000 sq km of 3D seismicdata in Blocks CI-401 and CI-101 Currently, the location of the firstexploration well in Block CI-101 is being defined, with the well plannedto be drilled in 2011. The pair have already drilled in Cote d’Ivoirewith some success. Drillingbegan on Block CI-401 withthe Orca-1X-bis well beingcompleted in H1 2010. Thewell penetrated the targetedobjectives and discoveredthin sandstone reservoirs. Thewell was drilled to a totaldepth of 4,015 meters belowsea level in a water depth of1,868 meters using theDeepwater Pathfinder.

Afren also contributes to the country’s production totals and sawproduction rates of about 5,088 boepd from Block CI-11. The company

conducted a wireline workover program during the year to removewellbore wax build up and obtain down hole pressure data. Afren isalso the sole owner of the Lion Gas Plant, which processes gas fromthe CI-11 and adjacent CI-26 and CI-40 blocks operated by the previouslymentioned CNR. NGL production at the plant in 2010 was 721 boepd.Not to be left behind, Total signed an agreement with Yam’s Petroleumto acquire a 60% interest in the CI-100 offshore license, allowing theFrench major to become the project operator. The block covers almost2,000 sq km in water depths ranging from 1,500 to 3,100 meters.An initial 3D seismic survey was already carried out by Yam’sPetroleum. Exploration work will include a new 1,000 sq km 3D seismicsurvey, which will complete coverage of the block and drilling ofthe first well is expected in 2012. Marc Blaizot, senior vice president,said: “This is a promising area whose geological objectives aresimilar to that of major discoveries that have been made in neighboringGhana.”

DisruptionsWhile many companies see great hydrocarbon potential in the country,some have been forced to stop operations after continued fightingfollowing presidential elections. US independent Anadarko PetroleumCorp. declared a force majeure in Cote d’Ivoire. With interest in twoblocks off the coast – the CI-105 where it is operator with a 55% stake,and the CI-103 block where it holds a 40% stake – the company saidthat it was uncertain when it would resume operations.

However, Anadarko was not the only company to shut-in operationswith Vanco Energy and Lukoil Overseas’ concessions also grinding toa halt. The companies declared a force majeure in April in accordancewith the provisions of the PSCs for Blocks CI-101 andCI-401.Vanco said that the partners were determined to resume active workon the blocks as soon as it was feasible and once the situation inCote d’Ivoire stabilized.

OutlookWith structural similarities to its neighbor’s Jubilee Field, Cote d’Ivoire’sbasins have been viewed as a promising option for future oil and gasdiscoveries. The gas reserves discovered in the 1980s have started tobe developed and utilized, with the main producing fields being Panthere,Kudu, Eland, Ibex, Gazelle, and Foxtrot. The country was poised tobecome a regional hydrocarbon exporter at an earlier stage, howeverthe overall instability within its borders (currently and in the past) leftits position as a regional supplier in limbo.

African Focus

Vanco Energy’s assets in Cote d’Ivoire

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Deepwater Pathfinder was used in thedrilling of the Orca-1X-bis


Although the country is a modest oil producer, Cote d’Ivoire is animportant regional refiner, or it would be if it could keep its one refinerysupplied with enough feedstock, and see the lifting of sanctions imposedby Western governments following the outbreak of violence due toelection results last year.

The nation’s one refinery, the Societe Ivoirienne de Raffinage (SIR),is located at Abidjan and has an adjacent bitumen plant. The 80,000bpd refinery processes oil production from the Lion and Panthere fields.It also receives crude oil from other countries in the West Africa regionand then exports products back to those neighboring countries. Thestate owns 47.3% of SIR with other partners including Burkina Faso,Total, Shell, ExxonMobil, and Chevron. Exports are sent to Mali,Burkina Faso, Niger, and Chad and other fuel depots are located atBouake and Yamoussoukro.

In February the refinery began facing problems, operating at minimumcapacity, struggling to secure crude oil due to sanctions imposedfollowing incumbent president Laurent Gbagbo’s refusal to step downfrom power after losing the country’s presidential election. Continuedfighting has placed persistent strains on the country’s refining capacityand Petroleum Africa.com reported on March 31 that the country’sonly refinery may have to close completely. News sources quoted SIRmanaging director Joel Dervain as saying, “By mid-April if we haveno crude, the whole refinery will be shut down.” He continued, “Wehave no financial means to purchase the crude oil because all the assetswere frozen. We have been under sanctions. We have filed legalproceedings. We are waiting for the results.”

At the end of March, the plant was operating at a rate of 25,000 to30,000 bpd and was fast running out of crude. At the time of press, nofurther updates were given on the SIR situation, but on April 5 theAfrican Union’s chairperson of the Commission on the Situation inCote d’Ivoire Jean Ping instructed the Ministry of Energy and Minesto reactivate the SIR refinery for the supply of butane gas and fuel.The Commission also asked that sanctions be lifted while France andthe European Union have agreed to provide a line of credit for€400 million and €200 million, respectively.

Other projects possibly in the works include a second refinery dubbedthe Cote d’Ivoire Peace Refinery. The project has been in the worksfor awhile and could potentially process 100,000 bpd of West Africancrude oil. Petroci Holding and Houston-based WCW InternationalHolding Co. agreed to jointly develop the $2.8 billion project. Thecompanies debuted a new website in June 2008 to promote the secondrefinery, but no information has been posted on the website since then.

In August 2009, Petroleum Africa reported that the refinery was alreadyin jeopardy before breaking ground with sources claiming the governmentcontinuously stalled on crucial financial decisions. While Peace

Refinery’s site claims that it would be the “largest and mosttechnologically advanced refinery operating in the region once it goesonline in 2012,” the progress of the project remains a mystery.

Power and AlternativesThe Commission also directed the nation to promptly repair water andelectricity networks. The majority of Cote d’Ivoire’s electricity isgenerated through natural gas-powered stations with hydropoweraccounting for 20% of its energy generation. The International EnergyAssociation said that more than half of the country’s domestic energyneeds are met through the use of combustible renewables and waste.

The resources from the Foxtrot offshore gas field, as well as the Pantheregas and condensate field are used for local power generation with theexcess being sold to neighboring Ghana. The use of gas-fired electricityplants turned the country into a regional exporter of electricity and theformer Gbagbo-led government made rural electrification a mainpriority. The government’s ambitious plan was to connect 200 ruraldistricts to the national grid every year as less than 15% of the populationresiding in rural areas had access to electricity compared with 77% inurban areas.

Cote d’Ivoire’s electricity supply is a monopoly dominated by CompagnieIvoirienne d’Electricite and renewable energy is not promoted as widelyas conventional forms of power generation. A report released byRenewable Energy in Developing Countries (RECIPES) said that in1979, the gross theoretical hydropower potential in the West Africancountry was estimated at 46,000 GW per year while the economicallyfeasible potential was 12,400 GW. However, of a total 973 MW ofpower plant capacity in existence, only 614 MW of hydropower is inoperation. Yet Cote d’Ivoire was making a push for privatization ofthe energy and water sectors with an increased emphasis on thermalproduction.

Waste-to-energy projects are cropping up in sub-Saharan Africa likethat started by Abidjan-based company Biokala. The firm establishedpartnerships with agro-industrial groups in Africa in hopes of becomingthe largest continental green electricity producer. ecosur Afrique ishelping to coordinate the CDM process and to structure the carboncredits forward sale. The project involves the installation of a 60-MWbiomass power plant that will have a forward sale of 2.1 million CERsover the next seven years.

Biokala plans to use 400,000 tons of byproducts recovered throughlogging campaigns of oil palm plantations – meaning trunks and leavesfrom pruning. This will fuel the power plant with 60 MW of installedpower capacity, and the electricity generated will be exported to thenational grid. The annual greenhouse gas emissions reductions areestimated at 300,000 tons of carbon dioxide equivalent.

Cote d’Ivoire Downstream


African Focus

unisia has been long considered an important location as itis home of the ancient city of Carthage. It was a pivotal playerin the Mediterranean that had many historical figures including

the Romans, Arabs, and Ottoman Turks using it as a vital shippingroute because of its strategic location in North Africa. Following suit,a rivalry was created between Italy and France during the 1800s forthe territory with France edging out its neighbor, making Tunisia aprotectorate in 1881.

After years of struggling for independence following World War I,Tunisia was granted independence in 1956. The country’s first presidentHabib Bourguiba led negotiations with France, dominating Tunisianpolitics for over three decades. Bourguiba was ousted in a bloodlesscoup in 1980 by Zine el Abidine Ben Ali, although doctors declaredBourguiba unfit to govern because of senility.

Ben Ali was born in 1936 in Hammam Sousse and was Tunisia’sambassador in Warsaw in 1980. He became prime minister in October1987 before being sworn in as president. Ben Ali maintained controlby changing the constitution twice which allowed him to remain inoffice for up to five terms. The constitution changed in July 2008 tolower the voting age to 18 and permitted the head of any political partyto submit their candidacy for president. The president, from the rulingConstitutional Democratic Rally (RCD), was set to retire in 2004, butchanges to the constitution allowed him to run for two more terms.Although the October 2009 elections had Ben Ali winning by anoverwhelming majority, the country, previously viewed as stable, beganseeing civil disturbances in December 2010.

Street protests erupted in January over high unemployment rates,corruption, and poverty spawned by a university graduate turned fruitand vegetable vendor that set himself on fire. Food prices began tosoar which led to the outbreak of riots and hundreds of deaths. Ben Alidismissed the government and the same day fled to Saudi Arabia withTunisia declaring a state of emergency on January 14. Exiled Ben Ali’sprime minister Mohammed Ghannouchi formed a unity governmentwhich included some opposition figures, but angered protestors andsome of his new cabinet after picking several members from Ben Ali’stroop. Ghannouchi resigned and the North African country swore inits interim president Fouad Mebazza, former head of the lower houseof Parliament. Mebazaa has said that the interim government would

manage the transition to democracy until a representative council iselected to rewrite the constitution. Presidential elections were scheduledto be held in July but have since been postponed until mid-October.

The UN has said that some 300 people died in the Tunisian uprisingwith 700 injured between December 17 and January 14. The countryremains in limbo today. Protests continue, many Tunisians are fleeingto Europe, and the country is struggling to handle Libyan evacuees.Over the past few months several hundred thousand Libyans havecrossed over into Tunisia to escape fighting between Muammar Qaddafi’sregime and opposition forces.

And while unrest is still present, risk mitigation firm AKE Ltd. saidthat the country continues to present a good opportunity for businesses“wise enough to assess the situation properly.” Tunisia’s real GDPgrowth rate began stabilizing after the global economic crisis saw itdecrease to 0.3% in 2009 compared to the almost 5% in 2008. However,2010 levels reached 3.4%, showing positive signs of recovery.

The North African country’s economy is diverse with importance lyingin its agricultural, mining, tourism, and manufacturing sectors. Over

By Jennifer Nickle, Deputy EditorLeAnne Graves, Associate Editor

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Politics and Economy

Interim President: Fouad Mebazaa(since January 15, 2011)Independence: March 20, 1956Population: 10,629,186GDP (purchasing power parity):$100.3 billion (2010 est.)Real GDP Growth Rate:3.4% (2010 est.)Per Capita GDP: $9,500 (2010 est.)Oil Production: 91,380 bpd (2009 est.)Oil Consumption: 89,000 (2009 est.)Proven Oil Reserves: 425 million bbls (2010 est.)Natural Gas Production: 2.97 Bcm (2008 est.)Natural Gas Consumption: 4.22 Bcm (2008 est.)Natural Gas Exports: N/AProven Natural Gas Reserves: 65.13 Bcm (2010 est.)

Source: CIA World Factbook April 26, 2011 and EIA July 14, 2010

TUNISIA


the past decade, the government has relaxed its grip and increasedprivatization. Tunisia was hurt during the economic crisis as itseconomy is heavily hinged on its largest export market, Europe.It was able to mitigate some risk from declining exports byfocusing on its non-textile manufacturing sector and increasing itsservices sector.

The manufacturing sector accounts for a great deal of the Tunisianeconomy covering various sectors like textiles, food processing,mechanical and electrical industries, construction materials, andchemicals. Yet the recent political crisis has impacted all of the NorthAfrican country’s economic drivers.

Tunisia’s central bank said on May 26 that while agriculture andmanufacturing for export were showing signs of improvement, tourism,transportation, and its chemical sector were continuing to dip. One ofthe biggest determinants to its economy is tourism, expected to represent8.9% of its GDP in 2011, and directly support 246,000 jobs, according

to the World Travel and Tourism Council’s 2011 Tunisia report. TheCouncil also expects the number of international visitors to reach almost6.7 million in 2011.

Foreign direct investment will continue to play a large role, but fearsover stability could deter companies. AKE said that international firmswill need to stimulate the Tunisian job market saying that it will takemore than a “replacement of leaders to boost the economy.” Thecompany’s senior risk consultant John Drake said, “If foreign investorsdo not return soon, the new government will face the same problemsas the old one.”

Tunisia Upstream

Important Tunisian tourist destinations include thehistoric site of Carthage and the many locations inthe desert where the film Star Wars was shot.

Tunisia has one of the smallest production bases on the continentalthough its production totals belie the amount of activity in the countryas its oil and gas industry happens to be one of the most bustling inAfrica. The country sees companies exiting on a regular basis, with nonegative impact on the industry as there are many more lined up toenter Tunisia’s petroleum scene to take their place.

While not the power house producer that neighboring Algeria andLibya are, Tunisia still manages to draw the interest of explorationfirms from far and wide. The country continually attracts interest fromindependent and major firms alike. Companies ranging from majorslike British Gas (BG) and Italy’s ENI to smaller independent firms likeChinook Energy and Candax Energy. There are roughly just under 60companies operating in the country; this number has remained justabout the same over the past few years, although the line up of companieshas changed.

The country’s oil and gas industry is run by state-owned oil and gascompany Entreprise Tunisienne d’Activitiés Pétroliéres, or ETAP. Thefirm’s ability to promote its hydrocarbon potential with excellent resultsyear after year, and attract new investment into its relatively smallacreage area is highly laudable. The state-run firm actively participatesin the development of many of the licenses as partner and/or operator,and as a result has enhanced its technical capabilities enabling it tobe a competent technical partner inside or outside of the country.The company also assists the government with bid rounds andfarm-in negotiations.

Tunisia’s production, currently sitting at around 95,000 bpd, is producedfrom six main fields with the remaining production coming from29 smaller concessions. The major producing fields are the El Borma,Ashtart, Ouedna, Adam, Didon, and Miskar; these fields contribute to

over 75% of Tunisia’s production capacity. The country, besides beingblessed with oil reserves, also has natural gas reserves and producesabout 6 Mmcm/d, which comes mainly from the offshore Miskar gasfield and other small fields, namely El Franig/Baguel/Tarfa gas fieldsand Oued Zar/Hammouda, Adam, El Borma, Djebel Grouz, and Sabriaoil fields (associated gas).

BG Group is the largest producer of natural gas in Tunisia, supplyingapproximately 50% of the domestic gas demand from the Miskar field.BG’s net production in Tunisia during 2009 was 12.7 Mmboe. Thecompany saw production of gas and condensate from the Miskar fieldand gas from Hasdrubal. BG drilled five successful wells as part of theMiskar infill drilling campaign between 2007 and 2009. The wellsfurther extended the field production plateau and contributed to increasedproduction levels over 2009. BG brought the Hasdrubal onstream inDecember 2009. The company saw its production increase over 2010due to the ramping up of production from the Hasdrubal. In Q3 thecompany shut down the gas processing facility for design modifications;the facility had an anticipated restart date in H1 2011. BG also drilledthe Miskar A19 development well over the past year. BG is operatorand joint permit holder of the 1, 016 sq km Amilcar exploration permit,offshore Sfax in the Gulf of Gabès. In 2009, the company was granteda new extension to this permit, which now expires in December 2011.

Pioneer Natural Resources drilled on the Cherouq and Anaquid blocksover the period with good success. The company drilled the ElBadr-3 and the Cherouq-2 wells, located in the Cherouq Concession,and the Mona-1 well, located in the Anaguid Exploration Permit. Thewells are expected to add an initial gross production rate of approximately10,000 boepd from the Silurian sandstone intervals. The Mona well isa significant Silurian discovery in the Anaguid Permit and opens upa number of new exploration opportunities in this area. At the start of

COUNTRY FACTOID


2011 Pioneer announced that it had sold its Tunisian unit to Austria’sOMV. The $866 million deal closed in mid-February.

The acquisition of Pioneer’s assets in Tunisia added to OMV’s portfolioin the country, but it was not the only achievement that the companysaw. Four gas-condensate discoveries were made in the OMV-operatedNawara production concession in 2010. The four discoveries in 2010bring OMV’s success total up to nine consecutive hits. The companysaid that these successes are both commercially and strategicallyimportant as they increase the chance of making further commerciallyviable discoveries. Moreover, the drilling campaign proved-up enoughresources to justify the start of the South Tunisian Gas Pipeline (STGP)project. While the company made new discoveries over the year it alsosaw its production decline to 6,500 boepd, mainly due to the naturaldecline in the mature Ashtart and TPS fields.

PA Resources holds stakes in 10 licenses in Tunisia, including one ofthe country’s largest producing fields – the Didon Field. Productionfrom the offshore Didon Field, was temporarily interrupted due to thesituation in Libya. The restart of production on the remote-controlledplatform was delayed due to bad weather combined with flight restrictionsin the area; however, it is now operating normally. The onshore JeneinCenter license saw the Jenein Centre-1 exploration well drilled duringPA’s 2010 program. The well was suspended due to an unsuccessfulcompletion attempt on the first formation tested. PA said that the wellwill be re-entered at a later date to complete the secondary target ofthe well – the Ordovician formation. Chinook Energy’s subsidiaryStorm Energy is the operator of the well with a 65% interest and PAResources holds 35%.

Candax Energy holds a few permits in Tunisia and is the operator ofthe Ezzaouia Field and the El Bibane. In April 2010 the companyreported that its work-over intended to reconnect the parted tubing onthe El Bibane 3 (EBB-3) well was completed. The work-over commencedon March 19 and the jack-up barge was released on April 2. After thecompletion the company turned its energies to Phase 2 of the EBB-3and EBB-4 well interventions. Phase 2 will see a rig-based interventionthat is expected to commence mid-year. Until the well interventionsare undertaken, wells EBB-3 and EBB-4 will remain shut-in. On theEzzaouia field the workover program began and included two sidetracksto existing, but non-producing wells, as well as contingent workoverson two further wells.

Candax’s Robbana field is located in southern Tunisia on the island ofD’Jerba. Following the identification of a three million barrel ContingentResource by Ryder Scott and the confirmation by a reservoir studyconducted by Petroleum Insights, Candax intends to resume productionfrom the existing Robbana-1 well where pressure has built up duringthe 20-month shut-in. Candax will also drill a new producer well onRobbana during 2011. Candax believes there is substantial upsidepotential at Robbana and, concurrent to the new well Candax intendsto implement a focused forward work program comprising 3D seismicand a pilot water injection well.

ADX Energy, formerly AuDAX Resources, has acreage in Tunisia aswell as acreage in the Sicily Channel between Tunisia and Italy. Thecompany saw the Southern Cross rig arrive on site for drilling in

mid-2010, with the spud of the Lambouka-1 well occurring shortlythereafter. Drilling hit a snag in August when bad weather preventedthe installation of the Blow Out Preventer (BOP) on the well headlocated on the sea floor. The company experienced further difficultieswhen trying to latch the BOP onto the wellhead. Modifications of theBOP to wellhead connection were necessary. The BOP stack wassubsequently reinstalled and successfully pressure tested. Although thecompany experienced a few snags along the way, the well was declareda discovery in September.

A D X f o l l o w e d t h eLambouka-1 with theissuance of a drilling tenderfor a well on the ChorbanePermit. Once the rig wasselected the company madeplans to drill the SidiDhaher-1 but the poorsecurity situation in thecountry at the time led to adrilling delay. In mid Maydrilling had still not taken place though the Tunisian authorities toldthe company that the drilling of the Sidi Dhaher well is a priority andthe required level of government authority supervision to ensure safemobilization and efficient drilling operations would be provided. Thegovernment also granted ADX an extension on the current explorationperiod for the Chorbane Permit. The permit was extended for one yeartaking ADX’s exploration period into July 2012.

Winstar Resources has a number of operated concessions in Tunisia.The Chouech Essaida, where it holds a 100% operated interest, producesat a rate of about 1,400 boepd from seven producing wells. The companydrilled the Chouech Essaida 8S (CS No. 8S) and after 42 hours thewell flowed at a stable rate of 1,625 bpd of oil (2,200 boepd of totalhydrocarbons) commingled from two zones in the Triassic reservoir.In November the company reported that the testing of the next well,the CS #13 well, was unsuccessful in establishing production and thewell has been suspended. Testing on the Chouech Essaida Silurian #1well began earlier this year. The company tested five intervals withinthe Tannezuft and Acacus Silurian formations The company said testingdemonstrated that commercial quantities of crude oil, condensate, andnatural gas are possible within Silurian age sandstones on the ChouechEssaida and Ech Chouech Concessions. The well tested at a combinedrate from all five intervals of 3,379 boepd.

Storm Ventures (a Chinook Energy subsidiary), Cooper Energy, andRAK Petroleum saw resources on the Hammamet Offshore Licenseincrease 37% over the past year. The increase came following theinterpretation of the high resolution 3D. Cooper said that the increasein resources confirmed the attractiveness of undertaking further appraisalwork on the oil field. The resources on the field increased even furtherearlier this year following additional specialized processing on theHammamet 3D seismic dataset, further examination of the petrophysicallog data, and a detailed review of the Hammamet West-2 productionwell tests. The base case Hammamet West Oil Field contingentresource estimate for the Abiod Formation reservoir has grown from57 to 101 million barrels of oil (P50 proved oil-down-to scenario).

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Cooper also holds the Bargou Permit, which is contiguous with theHammamet, with a 100% interest. In April 2009 the company completeda 46 km seismic survey on the permit. The company farmed out 15%of its stake in the permit to Jacka Resources who will pay a proportionof back costs and proportionate costs for the drilling and testing of theplanned Menzel Horr-1 and Hammamet West-3 wells. The total valueof the transaction is estimated to be about $12 million. The partnersspud the Menzel Horr-1 well in January. The well reached total depthin March, but was not a success and was subsequently plugged andabandoned. Cooper said that despite not encountering any hydrocarbonsthe geological data obtained in the well will be used to further developthe company’s regional understanding of the distribution of potentialreservoir formations.

The Ksar Hadada Permit sees action from Petroceltic International,Independent Resources, and PetroAsian Energy Holdings Ltd. Thepartners drilled the Sidi Toui-4 well (ST-4) following seismic acquisitionin late 2009. Drilling, using the CTF Rig 06, reached total depth 1,603meters in October. The well was designed and successfully drilled asa deviated wellbore through the Upper Ordovician, penetrating 364meters of the objective Bir Ben Tartar Formation. Unfortunately thewell was not a success. While oil and gas shows were encountered inthe Bir Ben Tartar reservoir unit, evaluation of the extensive loggingsuite acquired in the Ordovician section indicated that the oil saturationand reservoir fracturation was insufficient to justify fracture stimulationand testing of the well bore. The well was plugged and abandoned.

Chinook Energy, through its indirect wholly-owned subsidiary, StormVentures International mentioned previously and partnered with CygamEnergy, completed drilling of the TT3 exploration well on the SudRemada Permit in December. The well was drilled to a total depth of1,555 meters with the primary target being the Ordovician Jeffara, andBir Ben Tartar reservoirs. The drilling of the TT3 fulfilled all of theexploration requirements on the permit. The TT3 was followed by theTT4 development well. Cygam reported that the fracturing programon the TT wells was complete and the rig was in the process of equippingthe wells for production which is expected to commence around mid-June. The fracture program involved the fracture stimulation of thetight Ordovician reservoir in the Jeffara (Upper and Lower) and Lower

Bir Ben Tartar formations in the TT2, TT3, and TT4 wells, the completionof the better quality Upper Bir Ben Tartar in TT3, and an experimentalcompletion in the Tannezuft shale in the TT3 well. According to thepartners the results as a whole were encouraging and in line withexpectations, but Chinook said that it clearly is at the very early stagesof understanding the reservoir distribution, productive capability, andpotential recoveries.

On its Adam project the company continued to see oil productioncurtailed as gas oil ratios increased. The sanctioning of the STGP willaid the company in increasing oil production and the commencementof production of non-associated natural gas from the Acacus and theOrdovician. Chinook also participated in the drilling of an explorationwell on the Bochra prospect on the Borj El Khadra block in March2011, operated by OMV, which led to a discovery in the Acacus andOrdovician. The company said that it expects the operator to submita concession application on a large portion of the permit before theend of 2011. The Tannezuft hot shale was cored in this well and acompletion decision will be made following a full petrophysicaland core evaluation. Chinook also plans to propose a workover ofthe Acacus and completion of the Ordovician zones for late-2011 orearly-2012 at Jenein dependent on service rig availability.

Petrofac, through its Energy Developments has a 45% operating interestin the Chergui field and the Chergui gas plant. The company tied athird production well into the plant in July 2010 and increased gasrecovery. The development program for 2011 includes the commitmentto drill two to three wells to increase reserves, and to explore theproduction of oil, as well as gas, from the field.

Sonde Resources plans to spend time this year evaluating the commercialdevelopment potential of the feature associated with the Zarat-1 Northappraisal well on the 7th of November Block, offshore Tunisia/Libya.The company announced the success of the well in January of thisyear. The Zarat-1 North encountered 240 net ft of pay in the EoceneEl Gueria limestone. The well was cased to total depth and threeproduction tests were performed with all three flowing at substantialquantities of gas and condensate. The company also plans on discussingunitization options with owners of an adjacent concession based onthe results of the Zarat-1 North and evaluating the recoverablereserve scenarios, development options, and cost estimates for thefield’s development.

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Tunisia Downstream

Tunisia’s downstream sector is on par with its upstream sector, notlarge but not inconsequential. The country is a hub for its neighbor’soil and gas exports to the European Union and other Western destinations.From gas processing facilities to pipelines to export terminals Tunisia’sdownstream sector is not explosive but it is steady.

The political upheaval that has been taking place since the beginningof the year has not upset gas sales or exports to date. According toCygam Energy the trucking of production from Sud Remada and salesfrom the La Skira terminal have not been interrupted and are expectedto continue unimpeded though the partners are monitoring thesituation closely.

Petrofac, discussed previously, produces gas that is sold to the nationalgas company, Societe Tunisienne de Lelectricite et du Gaz (STEG),under a gas pricing formula fixed by existing law. Its Chergui gas plantproduced an average of 27.77 Mmscf/d of gas over 2010. In December2010 the company recorded its highest rate since the start-up of thegas plant in June 2008. Unlike some others on the downstream endPetrofac’s plant has seen some short unplanned shut-ins of production,but generally the plant operated normally.

In June 2009 it was reported that Petrofac was considering constructinga refinery in Tunisia. The company would build and operate the Skhiraoil refinery project. According to rough estimates investment costscould hit around $1 billion. Qatar Petroleum was involved in thepotential project however it pulled out leaving Petrofac to carry on.Petrofac has launched fresh studies for an eventual partnership withTunisia for the building of the Skhira oil refinery which should havea capacity of 120,000 bpd. If the project moves forward it will not bePetrofac’s first downstream undertaking in Tunisia, the company wasalso involved in the Chergui gas plant. The plant takes gas from theChergui field, of which Petrofac is the operator, and processes to besold on the domestic market.

BG plays a big role in Tunisia’s downstream sector as the country’slargest gas producer. Gas from the Miskar field is processed at the BGGroup-operated Hannibal plant and sold into the Tunisian gas system.The company has a gas sales contract with STEG which gives it theright to supply up to 230 Mmscf/d from Miskar on a long-term basis.In addition to Hannibal the company has the Hasdrubal onshore gasprocessing facility and LPG production facility adjacent to the Hannibalplant. Gas from the Hasdrubal is also sold to STEG, while liquids andLPG are exported or sold on the local market. A LPG storageterminal has been constructed in Gabès to receive and export butaneand propane.

BG saw a bit of drama recently at its Hasdrubal plant as members ofsurrounding communities launched a sit-in at the plant. While at thetime BG said that it might be forced to shut-in natural gas productionthe protestors were eventually removed, alleviating the need to

do so. The sit-in took place after a disagreement between communitiesand BG officials over the execution of an agreement entered into byboth sides providing for the employment of a number of citizens andthe granting of micro-credits to create sources of income for others.

Tunisia’s role as a transit point forneighboring Algeria’s productionthrough the Transmed pipelinecontinues, although export flowsslowed some this year. In mid-Januaryit was reported that gas flows throughthe pipeline have nearly halved sincethe start of the year. Flows of Algeriangas via the Transmed pipeline havefell from around 3.3 Bcf/d in earlyJanuary to just 1.8 Bcf/d. Pipelineoperator Snam Rete Gas said at thetime that the pipeline was not having any technical problems and itwas unclear why the drop had occurred. Despite the drop in flow thereare plans in the works to expand capacity.

Power and AlternativesThe Societe D’Electricite D’El Bibane (SEEB) Electric GeneratingPower Plant is a flagship, independent power producer (IPP) for Tunisia,as it utilizes gas that was previously being flared and is one of the firstIPPs to provide a low cost source of electricity for the country. Candaxshares a 50/50 ownership in the SEEB power facility with its partnerCaterpillar Power Ventures Inc. The SEEB power plant is a 27 MW,single cycle operation located at the El Bibane central processingfacility and the majority of its gas supply originates from theEl Bibane field. SEEB utilizes up to 7 Mmcf/d of gas sourced fromboth the El Bibane and Ezzaouia oil fields, and supplies electricityto STEG.

In December the European Investment Bank (EIB) reported that itwould fund a power project in Tunisia. The EU’s financing arm willprovide a €194 million loan to Tunisia for an electricity project. Theloan will be used to construct an electric generator with natural gas inSousse City. The total project cost is estimated at €388 million. TheEIB also has possible funding for the STEG GAZ III project underappraisal. The project forms part of STEG’s long-term program forexpanding the national gas transmission and distribution networks.The project focuses on the first phase of this program to be implementedover 2010-2014. It involves about 1,400 km of gas transmission pipelinesand five new compressor stations, 28 MW in total, to be located mainlyin Northern Tunisia.

Despite being mostly reliant on its hydrocarbon sector, Tunisia is slowlyintegrating renewable energy into its power sector. The North Africancountry is a part of the UN-backed Kyoto Protocol, but has no emissionreduction targets currently in place. The government’s attempts at

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upscaling its renewable energy sector resulted in a financingmechanism, Fonds National de Maîtrise de l’Energie (National EnergySavings Fund), which was created in 2005 to encourage businesses toimplement renewable energy. The country plans to continue innovativefunding mechanisms in the field of energy efficiency with plans tolaunch a four-year energy-saving program to reduce energy demandby 20% by 2011. The National Energy Control Agency director generalBen Aissa Ayadi said that Tunisia planned to increase its renewableenergy generation from 0.8% in 2009 to 4.3% by 2014.

Tunisia is onboard the Desertec Industrial Initiative (DII) which aimsto acquire solar power from the Sahara desert for transport to Europeand energy generation in North Africa. In April, the DII announcedthat it would open an office in Tunisia to increase its developmentplans in the region. CEO Paul van Son said, “A close JV with theTunisian government will play a decisive role towards the implementationof the Desertec vision.”

And while the DII is in the pipeline, others have begun noticing Tunisia’ssolar potential. The British Foreign Office minister for the MENAregion, Alistair Burt, confirmed that the UK would invest in Tunisia’ssolar sector. Italy had already struck a deal with Tunisia to establisha technological platform to spread renewable energy connecting theEuropean electrical connection network through the underwater electricconnection between Tunisia and Sicily. Japan has also taken an interestin Tunisia, helping to establish a solar power generation projectthat would host research by Japan’s New Energy and IndustrialTechnology Development Organization as well as operating as a powergeneration facility.

The country has its own plans too; construction of its Zarzis DjerbaSolar Eco-Village is near completion. The village is aimed atincreasing employment, helping to meet renewable energy targets, andgenerate sustainable revenues via projects like organic farmingand desalination.


ydraulic fracturing [fracking or fraccing] has been used fordecades, but it has only come to the fore in the last five yearsdue to the marriage of technological developments such as

directional drilling and high gas prices. The surge has coincided withthe enactment of the 2005 US Energy Policy Act, which exemptedfracking wells from federal regulation under the Safe Drinking Act.

Fracking is now used in 90% of natural gas wells in the United States.At a time when conventional oil and gas reserves are dwindling andenergy demand is inexorably rising, fracking offers a solution byunlocking massive shale reserves. UK daily The Telegraph noted onMay 6 that some supporters of fracking estimate the United States hasnatural gas deposits equivalent to two Saudi Arabia’s-worth of oil,which would be sufficient to supply the US with gas for heating,electricity generation, and car fuel for up to 100 years.

Until recently, fracking was uneconomical due to high production costsand relatively low gas prices. “While hydraulic fracturing has beenaround in the United States since 1947, drilling and fracturing a wellis a costly, labor-intensive endeavor,” said Robin Millican, policyassociate at the Institute for Energy Research. “With previous technology,it simply wasn’t economical to use it on a scale that would have asignificant impact on our [United States] domestic supply, even thoughwe knew shale formations held abundant amounts of fossil fuels.However, the outlook completely changed when industry developeda method to combine hydraulic fracturing with directional drilling toaccess more area in the underground shale formations.”

Energy demand has spurred on innovation. With high gas prices anda lack of domestic supply in the United States there was a real impetusfor a “technological breakthrough,” which Millican said occurred inthe States. “Before the oil spike in 2008, we had a natural gas pricecrisis. However, after industry started using the new fracturing method,the wellhead price of natural gas in 2008 dropped from nearly $8 perthousand cubic feet to $3.67 per thousand cubic feet.”

Making shale gas reserves recoverable will be enormously advantageousto the oil and gas industry, Millican continues. “The largest knowngas field in the US – the Marcellus Shale – is estimated to contain

$1 trillion in recoverable natural gas. This is only a tenth of the naturalgas we think it contains. Globally, the potential is just as great.”

Accordingly other energy hungry regions and countries eyeing lucrativegas export opportunities are looking to capitalize on fracking advances.“As global energy consumption rises, countries will be looking morethan ever to fulfill their need with domestic production – hydraulicfracturing is one obvious outgrowth of that,” said Millican.

AfricaOil and gas producers in Africa are looking to exploit their own shalegas reserves. “Africa fares very well in the game – BP’s Review ofWorld Energy puts the continent’s current proven natural gas reservesat 521 trillion cubic feet (Tcf),” said Millican.

Reflecting these opportunities, on March 9 Algeria announced that itwas looking to develop natural gas trapped in shale rock more than3,280 ft below the surface. Algerian minister of Energy and MinesYoucef Yousfi told the CERAWeek conference in Houston that theyestimate his country’s reserves as high as 1,000 Tcf. “The preliminaryresults of our evaluation of shale gas potential indicate that the potentialis at least comparable to the major plays known in the United States,”he said. Pilot tests will start in 2012.

Given the advanced technologies required, African nations are activelyseeking international partners. “We are already talking with somecompanies,” Yousfi said.

Further east, Weatherford is marketing its fracking services in Egypt,and in 2010 the company completed a hydraulic fracturing job in thecountry, in an area “known for tight formations, low permeability, andrelatively high fracture gradients,” the company reported.

Technology and Solutions

FRACKING FUTURE

By Guy BrownTechnical Correspondent

H

There has been a dramatic increase in hydraulic fracturing in the United States in the last five years, brought onby high gas prices and enabled by rapid technological advances. This has in turn drawn the interest of countries

around the world seeking to exploit the tremendous potential of shale formations.

“The largest known gas field in the US – the Marcellus Shale– is estimated to contain $1 trillion in recoverable naturalgas. This is only a tenth of the natural gas we think it contains.Globally, the potential is just as great.” – Robin Millican,policy associate at the Institute for Energy Research


While seeking to replicate the success of the United States in frackingshale formations, the continent will be keen to avoid environmentalcontroversy that has bubbled up around the activity recently. SouthAfrica is already experiencing a fracking backlash. [See Box 1]

Technological AdvancesTechnology is playing a vital role in making the development ofshale gas reserves possible. Ted Lafferty, Schlumberger’s vicepresident of stimulation services, has said that “advances in fracturingtechnology have contributed to making some of the key activity areastoday viable that would not have been economically viable even10 years ago.”

Millican singled out “the coupling of hydraulic fracturing withdirectional drilling” as the most important development. “Now, six toeight horizontal wells drilled from only one well pad can produce thesame volume as sixteen vertical wells, dramatically reducing theproduction costs for the operator. Operators can even go back tovertical wells that have already been drilled and played out anddirectionally drill, a re-use which has both economic andenvironmental benefits.

“New well stimulation methods have also come along as deeper andless conventional wells are drilled. Multi-stage fracturing and stimulationalong horizontal wellbores has enabled operators to place fractures atspecific places in the wellbore according to where production potentialis the greatest, thereby increasing the cumulative production in a shortertime frame. This can be carried out in a day, as opposed to weeks aswas previously the case.

“Another development has been the injection of high-pressure hydraulicfracturing fluids with propping agents like sand, glass beads, epoxy,or silica sand to expand fissures and keep them open, enabling thehydrocarbons to flow more freely.”

Seismic PrecisionMicroseismic is also playing a part. It is being used to measure theorientation and size of a fracture with greater precision and in real time.The approximate geometry of the fracture can be inferred by mappingthe location of small seismic events associated with it. In providinginformation about the changing stress of a reservoir, Schlumbergernotes that it can enhance reservoir development.

Schlumberger’s StimMAP services for hydraulic fracture monitoringrecord microseismic activity in real time during the fracturing process.The software provides modeling, survey design, microseismicdetection and location, uncertainty analysis, data integration, andvisualization for interpretation. Computer imagery is used to monitorthe activity in 3D space relative to the location of the fracturingtreatment. Then the monitored activities are animated to showprogressive fracture growth and the subsurface response topumping variations.

The StimMAP service uses Petrel seismic-to-simulation software toprovide accurate characterization of the locations, geometry, anddimensions of a hydraulic fracture system. Advanced processing

Contentious Issue of Groundwater

Environmental concerns regarding hydraulic fracturing are being debatedat the local and national levels in the United States, and South Africa.

“When talking about fossil fuels, even one as abundant and cleanburning as natural gas, you are always going to have your share ofnaysayers that will do anything to stop our use of them,” said RobinMillican, policy associate at the Institute for Energy Research. “Thatsaid, much of it can be attributed to the fact that production has increasedso dramatically and there has been a lot of press. Notably, the 2010movie Gasland featured a man lighting his tap water on fire andclaiming it was because of hydraulic fracturing nearby, never mind thatthe flammable gases lie in shale formations thousands of feet belowthe water table. Sensationalism works – but in this case, is far fromthe truth.”

Nevertheless, the US Environmental Protection Agency (EPA) haslaunched a study looking into the effects of hydraulic fracturing on thewater supply. The research will examine the full scope of the waterpathway as it moves through the fracturing process, including waterthat is used for the construction of the wells, the fracturing mixture,and subsequent removal and disposal. The Scientific Advisory Boardreviewed the study plan in early March, with research to be completedby the end of 2012. The EPA’s Hydraulic Fracturing Report is expectedto be completed in 2014.

Despite the sensationalism, a few recent incidents are leading governmentsand regulatory bodies to more closely scrutinize hydraulic fracturing.

In the United States in April, a spokesman for the Bradford CountyEmergency Management Agency in Pennsylvania said that ChesapeakeEnergy Corp. was trying to regain control of a natural-gas well in thevicinity, which was reportedly spilling chemically treated water into acreek. The spill happened at the same time fracking was taking placein a well near Leroy Township. News agencies reported Chesapeakeas saying that the accident was caused by an equipment failure and that“completion fluids” were spilled.

A spokeswoman for the Pennsylvania Department of EnvironmentalProtection said the spill occurred while the well was undergoing fracking.Chesapeake said Boots & Coots International Well Control was mobilizedto respond if necessary. From available information, it appears the spillresulted from a surface equipment failure, and not as a result of fracking.

Justified or not, fracking is raising public concerns in Africa too. OnApril 21, South Africa’s cabinet endorsed the Department of MineralResources’ decision to declare a moratorium on natural-gas drilling inthe Karoo basin region, halting plans by Royal Dutch Shell. Shell hadapplied for permission to drill about 24 wells in an area of about 90,000sq km (34,749 square miles). The Karoo is an arid sheep and gamefarming region. Government spokesman Jimmy Manyi said theDepartment of Mineral Resources will lead an investigation into theimplications of fracking.

A Shell spokesperson responded that the company will “support localresearch efforts into hydraulic fracturing as this will provide clarity andan improved understanding of the technology,” and asserted itscommitment to supporting “the development of best-in-class regulatorystandards for hydraulic fracturing in South Africa.”


Technology and Solutions

techniques provide fracture characterization that enhances fracturemodels and reservoir characterization for production simulation.

Improving Clean-UpAdvances are also being made in the chemicals used in fracking, whichmay play an important role in allaying public and government concernsover the perceived environmental risk of the activity.

Halliburton has come up with the CleanSuite™ production enhancementtechnologies CleanWave™, CleanStream® and CleanStim™[See Box 2]. They help to clean-up and reuse fracture flow back andproduced water. According to Halliburton, for every barrel of oilproduced, approximately three barrels of water are produced. And,between 10% and 40% of the fluid volume used in fracturing operationsflows back during the subsequent clean-up. The flow back andproduced water may contain hydrocarbons, solids, bacteria, or heavymetals. Halliburton notes the challenge in “managing and disposing ofthis produced water,” and that cleaning and reusing it is preferable.Halliburton announced in May that the three CleanSuitetechnologies were used together for the first time by El Paso at a wellin North Louisiana.

Marc Edwards, Halliburton senior vice president, Completion andProduction Division commented that “in order for these [CleanSuite]technologies to be commercial and truly transform our industry,we need operators who are willing to take that first step and helpprove these new technologies,” and credited El Paso for taking thatpioneering step.

John Jensen, senior vice president, Operations, El Paso Exploration &Production, said the use of the CleanSuite system is “consistent withour long-standing approach to conduct our hydraulic fracturing operationsin an environmentally sensitive manner.”

Future FrackingHigh demand for domestic gas production in the United Statescreates a powerful driver for further technological development inhydraulic fracturing.

Steven Ingram, Halliburton technology manager, speakingin May at the Energy Summit, an initiative by The Houston Club, said:“How we frac today will look completely different in two years,” givingthe example of a 35% on location personnel reduction. Halliburtonsaid they had an average of nine pump trucks at each fracking locationin 2008, but by 2010/11 that had grown to 20 pump trucks. Serviceproviders are making “tremendous investments,” Ingram said, withone Halliburton location alone having $85 million worth of equipment.Ingram added that operating with all this equipment and personnel is“unsustainable.”

And in some drilling locations – such as mountainous or environmentallysensitive areas – it is simply impractical to have all this equipment,and rig up/rig down is too complex. “We have to reinvent,” says Ingram.What does this mean? Vertical storage with no tractors or trailers, andalternative options to driving high pressure injection as diesel isexpensive. And in a patented advance, Halliburton is applying

Halliburton CleanSuite™

CleanSuite includes three production enhancement technologies:CleanWave™, CleanStream® and CleanStim™

CleanWave Water Treatment SystemEnables recycling of flow back and produced water at the wellsite. Itfeatures a mobile electrocoagulation component that uses electricity totreat flowback and produced water at rates of up to 26,000 bpd.CleanWave enables operators to generate water for reuse in fracturingfluids or reuse in other drilling and production processes. This minimizesfresh water consumption and the costs associated with procurementand disposal.

The CleanWave system destabilizes andcoagulates the suspended colloidal matterin water. When contaminated water passesthrough the electrocoagulation cells, theanodic process releases positively chargedions, which bind onto the negativelycharged colloidal particles in waterresulting in coagulation. At the same time:gas bubbles, produced at the cathode, attachto the coagulated matter causing it to floatto the surface where it is removed by asurface skimmer. Heavier coagulants sinkto the bottom, leaving clear water, suitablefor use in drilling and productionoperations.

CleanStim Hydraulic Fracturing Fluid SystemUses a new fracturing fluid formulation made with ingredients sourcedfrom the food industry. The CleanStim fluid system components includea gelling agent, crosslinker/buffer, breakers and a surfactant. Beforeuse, the CleanStim formulation is mixed at the job site with the waterprovided by the operator.

The CleanStim fluid system provides excellent performance in termsof pumpability, proppant transport and retained conductivity. Laboratorytests showed over 90% retained conductivity after 24 hr of flow. Thesystem is applicable over a broad temperature range providing up to30 minutes pumping time at 225°F (107°C).

The CleanStim fluid system can be crosslinked and used for conventionalgelled fracturing treatments. In addition, the components can be usedto provide friction reduction for water frac treatments commonly usedin shale reservoirs.

CleanStreamTraditional methods for treating bacteria in fresh water employ chemicalbiocides. These methods involve a greater degree of HSE risk withrespect to spills and surface handling. CleanStream uses ultraviolet(UV) light to control bacteria. According to Halliburton, it reduces –and in some cases eliminates – the need for chemical biocides and helpsto maintain frac fluid integrity and performance. It is similar to UVtreatments used in hospitals, food processing and water treatment plants.

offshore rig technology to onshore truck technology for rigup/rig down.

Ingram continuedsaying that the newfootprint for a fraclocation will bereduced by 45%with increasedprofitability andsustainability. Anew high tech plug-in pump truck willreduce the number

of trucks required back down to around eight. 40 of these new vehiclesare available now, with four in the field today. The trucks can pumpmore in less time, but with a 50% reduced footprint. In a further advancethat reduces environmental impact, sand storage devices will be poweredby solar panels.

Another area that technology is leading transformation is in downholecompletions. Increased complexity has seen average well completiontimes increase from 25 hours 10 years ago to 94.2 hours today.Halliburton has said its new rapid fracturing REO system will dropthat down to 36 hours. The REO system eliminates wireline intervention,

and dramatically reduces water requirements. With technologiesincluding Delta Stim® initiator sleeves, Swellpacker®, VersaFlexexpandable hangar liner, activation fluid inserted into the annulus forswell system, and no intervention by coil or jointed tubing to perforate,completion cycle times will improve. Getting down to 30-40 hours isa “tremendous step change,” said Ingram. With around 3,200 to3,600 wells in North America inventory waiting to be fractured, whichare mostly shale/unconventional, Ingram said the industry is not keepingup with the demand for equipment.

Ingram also said there is a need for better understanding of the complexityof hydraulic fracturing, which he said no model today can do. “Weneed to better understand this as an industry,” he said, adding thatcurrently money is thrown away because of the lack of complexunderstanding.

The acceleration and complexity of fracking activity looks set to demandfurther technological advances.

“Although I’m not privy to what the industry has in the works forfuture technological developments, it’s reasonable to assume that we’llsee improvements in how far we can drill horizontally, and withwell stimulation technologies,” said Millican. “Companies are alwaysexperimenting with what additives work best within what types offormations. We’ll just have to wait and see.”

Halliburton’s new high tech plug-in pump truck

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Oil Security

ack in August 2009 the United States Institute of Peace (USIP)published a report called “Scenarios for Sudan: AvoidingPolitical Violence through 2011”. The report outlined several

likely scenarios that could develop both prior to and immediatelyfollowing the referendum on South Sudan’s independence and includedsteps that needed to be taken by the international community to avoidthe worst scenarios. Chief among the USIP’s concerns was the potentialfor the relationship between the two countries to devolve into a stateof war. Of course USIP was not the only group to caution the internationalcommunity about the potential for violence following the referendum,but it was among the most vocal in its insistence that the internationalcommunity put pressure on both the Republic of Sudan in the northand South Sudan to deal with the many outstanding issues that couldresult in the breakdown of social order. Specifically, the report calledon the international community to pressure both sides to stamp outmilitia activity along the north-south border, come to a real agreementover land tenure in the contentious regions of Southern Kordofan, BlueNile, and Abyei, and work out specifics regarding control of Sudan’soil resources. While some progress was made regarding all these issues,recent events suggest that tensions between north and south havereached a point where a single spark could reignite a wider war.

The fighting in Abyei has reminded the world just how precariousSudan’s north-south peace remains. While Abyei was supposed to votein the referendum on South Sudan’s independence back in January, thepoll was put on hold indefinitely because of a dispute over who waseligible to participate in the election. Since then violence flaredsporadically in Abyei, but took a turn for the worse in late April whenSudanese president Omar al-Bashir threatened to withhold officialrecognition of the state of South Sudan if the south maintained its claimto Abyei. For its part, southern officials prepared a draft version ofSouth Sudan’s interim constitution that explicitly claimed Abyei aspart of its own.

Both sides have allies in Abyei, with the Arab Misseriya nomads backedby the north and the Ngok Dinka casting their lot with the south. Thetwo groups have clashed frequently in recent months, allegedly with

the support of their respective backers in Khartoum and Juba. Thesituation began looking better as recently as early May, when bothsides inked a UN-brokered agreement to remove their forces from thetroubled province. However, less than a week after the two sides reachedthe pact, UN peacekeepers patrolling the region came under attack.Although the identity of the attackers remains unclear, the incidentimmediately sparked further violence. While the Misseriya and NgokDinka engaged in firefights across the region, the northern and thesouthern armies exchanged artillery fire. Ultimately, the north cameout ahead in the military engagement, with the UN confirming in lateMay that troops loyal to Khartoum were in control of Abyei town,located on the border between the north and the south.

The violence also spurred a flurry of political activity. Juba announcedthat it saw the seizure of Abyei town as an “act of war,” and a southernminister in Khartoum’s national unity government resigned his post inprotest over the north’s “war crimes” in Abyei. The violence was alsoroundly criticized abroad; UK foreign secretary William Hague calledfor “all unauthorized forces (to) be withdrawn from the entire area ofAbyei in accordance with past agreements,” a reference to the multipleagreements both sides have made in the past regarding security inAbyei. The unrest also prompted a stern warning from the UnitedStates, with Washington threatening to cancel billions of dollars ofdebt relief promised to Khartoum if the north does not remove itssoldiers from the region. Perhaps more importantly the violence inAbyei threatens to hijack the removal of Sudan from Washington’s listof state sponsors of terrorism. The United States had long been expectedto remove Sudan from the list and normalize relations with Khartoumif independence for the south went ahead without violence.

The deterioration of the security situation in Abyei has certainly forcedthe international community into meaningful action. In addition to astrong condemnation of the violence by major players in the internationalcommunity, the UN Security Council sent a delegation to the regionin late May to help resolve the issue. However, while control of Abyeiis an important source of tension between north and south, it is farfrom the only speed bump on the road to peace between the two sides.

By Mark PabstSenior Correspondent

B

Recent violence in the Abyei region, located on the border between north and South Sudan,has many observers worried that the area may provide the spark that sets off a wider conflictbetween the two countries. While the situation in Abyei is certainly serious, it may also helpfocus attention from the international community on the many things that still need to bedone to ensure lasting security in the region.

RAGESUDAN’S TINDERBOX

Even as tensions were ramping up over Abyei, elements in the south’sruling party, the SPLM, accused Khartoum of rigging the vote forgovernor of the oil rich Southern Kordofan state to elect Ahmed Haroun,an al-Bashir loyalist who has been indicted by the International CriminalCourt for alleged war crimes committed in Darfur.

However, not all of the recent instability in the region can be directlyattributed to tensions between north and south. While the problems inAbyei have attracted most of the attention recently, violence betweendifferent ethnic groups in the south continues to claim lives and sowinstability. According to the UN about 1,000 people have been killedin clashes between rebels or local armed groups and the southern armyin the first four months of the year. Much of the violence has beendriven by local militia’s operating within the south’s borders, andseveral southern army officers have turned against the Juba governmentin recent months. While the south routinely blames Khartoum forfanning the flames of this instability, many security experts claim thatethnic violence in the south would exist without any action from thenorth. In fact, while the USIP report released back in 2009 warnedabout the potential for a shooting war between north and south, it alsoacknowledged that it would be equally plausible for South Sudan todevolve into violence without any prompting. Doubts about Juba’sability to build sufficient infrastructure and guarantee proper distributionof food, water, and power have some wondering whether the government

in the south can provide enough services to avoid widespread unrest.These doubts have been amplified by recent shortages of goods in theparts of the south that border north Sudan.

Obviously all of these developments are extremely concerning forthose who depend on Sudanese oil as a source of energy or a sourceof income. Widespread insecurity, either in the form of a north-southwar or widespread lawlessness in the south have the potential to wreakhavoc on oil production. Therefore, those with a vested interest inSudanese oil are undoubtedly hoping that the UN and other majorinternational players can bring an end to the current crisis in Abyei.However, since South Sudan’s problems run far deeper than Abyei,the real concern should be whether the situation in Abyei will forcethe international community to help address the multiple problemsfaced by both north and south. There are indications that someinternational players are beginning to recognize that the crisis in Abyeiis simply the most urgent manifestation of a problem that has beenallowed to fester in recent years. In his statement following the north’stakeover of Abyei Hague not only “urge(d) the parties to theComprehensive Peace Agreement to respect their commitments underit,” but also asked the two sides “to negotiate a peaceful and durableresolution of all outstanding issues.” The recognition that there aremany outstanding issues is essential. The next step is for internationalplayers to force both sides to address these issues.


Book Review

he Democratic Republic of Congo (DRC) is often held up asan example of everything that is wrong with Africa. The headydays that immediately followed the end of colonialism rapidly

devolved into political crisis and then dictatorship. Its own governmententhusiastically offered the country up as a pawn in the Cold War.Gross economic mismanagement and a deeply entrenched culture ofcorruption enriched a few elites to the detriment of the average citizen.

The DRC has also become another African archetype; the resourcerich country that is unable to translate its natural resources into nationalprosperity. Blessed with deposits of copper, tin, cobalt, manganese,and other minerals, the country remains woefully underdeveloped, withan infrastructure in tatters and an abysmal security situation. Currentestimates put the DRC’s oil reserves at 180 million barrels and naturalgas reserves at 991.1 million cubic meters, but fresh oil discoveriesalong the border in neighboring Uganda have many hopeful that thecountry’s reserves are actually much higher than currently estimated.Despite the excitement about the DRC’s oil potential, the eastern partof the country remains wracked by violence, with the UN expressingits concern about ongoing insecurity in North Kivu as recently as May.

Of course, much of the Democratic Republic of Congo’s plight,especially the ongoing violence in the east and its continuing lack ofeconomic development, can only truly be explained in light of thedevastating war that engulfed the country beginning in 1996 andspawned the violence that continues to simmer to this day. At its heightnearly a decade ago, the war directly involved nine African countriesand 25 distinct armed groups. By almost every measure the war waseasily the largest conflict in modern African history. Now the DRC ispoised to emerge from the conflict’s aftermath, investors are looking

to cash in on its natural resources, and policy experts are trying to gleanlessons from the war and its fallout. Fortunately for all theseparties a steady stream of books about the DRC and the war haveappeared recently.

The latest of these books is Jason Stearns’ Dancing in the Glory ofMonsters: The Collapse of the Congo and the Great War of Africa.Stearns has followed the DRC both up close and from afar in variousprofessional capacities, including as the coordinator of the UnitedNations Group of Experts on the Congo and as part of the InternationalCrisis Group. Stearns, who is currently pursuing a PhD at Yale University,brings a studiousness and seriousness to his account of the conflict.This is especially refreshing, not because there are no good academicaccounts of the war, but because many of the recent accounts havefocused on the authors’ exploits “in-country,” exploits that invariablydescribe the savagery of the conflict, the backwardness of the country,and the suffering of the populace.

Of course, to deny the brutality of the war or dismiss the suffering ofthe Congolese would be foolish, but many of the books that choose tomake these things the central aspect of their narratives often reinforcethe idea that the DRC is symbolic of the continent’s problems; that theDRC is somehow Africa to the extreme. By contrast, in Dancing inthe Glory of Monsters Stearns largely leaves his own experiences outof the narrative and instead paints a complex but complete picture ofa complicated war.

There have certainly been some fine scholarly accounts of theCongolese War (Gerard Prunier’s Africa’s World War: Congo, theRwandan Genocide, and the Making of Continental Catastrophe,

Reviewed by Mark PabstSenior Correspondent

T

Dancing in the Glory of Monsters: The Collapse of theCongo and the Great War of AfricaBy: Jason StearnsPublic Affairs2011

DANCING IN THE GLORYOF MONSTERS

“There is no Hitler, Mussolini or Stalin. Instead, it is a war of the ordinary person.”– Jason Stearns on the war in the Democratic Republic of Congo

previously reviewed in this magazine, comes to mind). However, whileStearns’ account of the war is well researched and rich with details, itis set apart by his ability to profile both the major and minor actors inthe war with a journalist’s flair. Yet he does not fall into the warcorrespondent clichés or lazy stereotypes that have characterizedsome of the reporting on the Congo. While popular accounts havedescribed the war as some sort of irrational orgy of killing, Stearns’probes for reasons behind the violence, and generally finds thatsome form of cold calculation lies behind many of the war’s mosthorrific acts.

Given the brutality that Stearns’ describes, it is difficult to believe thatDancing in the Glory of Monsters is not a story about good guys andbad guys. Certainly any narrative that describes a war in which somemilitiamen thought nothing of strangling hundreds of people to deathon any given day should be a portrait of evil. Instead, the book is reallyan account of human frailty. He shows how universal humanshortcomings like pride, greed, fear, and a desire for revenge all playeda role in turning the Congo into Africa’s battleground. Stearns’ laysout a precise chronology of the war, and describes how the violencemarched on due to the humanness (though not the humanity) of majorpolitical and military players.

The danger of playing the tribal card is also a recurring theme. Notonly did the attempted genocide of Tutsis in Rwanda play a major partin starting the Congolese War, but Congo’s longtime dictator MobutuSese Seko regularly used mistrust of “foreigners” like the Banyamulenge,a Congolese Tutsi community, to maintain his hold on power. In thisclimate of fear, the fear of the annihilation of one’s entire ethnic group,can anyone wonder why certain actors fought so viciously in the war?

So, in the end, if one chooses to see Congo as Africa at its most“African”, then Stearns’ makes a profound argument in his book thatAfrica is far more complicated, far more rational, and far more interestingthan most people believe. As Stearns’ himself has recently pointed out,the host of books released about the war in the Congo coincide witha rediscovery of the country by the American and European public.“Grassroots activists – from soccer moms to college students – havefinally broken this apathy (about the Congo),” he wrote recently inForeign Policy Magazine. “But now it is up to politicians and diplomatsto turn awareness into intelligent policy.” Books about the brutality ofthe war have already helped break the apathy about the Congo. Nowbooks that go beyond sensationalism to look at the true reasons behindthe war, books like Dancing in the Glory of Monsters, are necessaryto tell us just how we might help fix the DRC.

New Products & Services

Emerson Process Management has launched the Roxar Downhole WirelessPT Sensor System – Annulus B. The new instrument will measure onlineand in real-time previously inaccessible pressure and temperatureinformation behind the casing in subsea production wells, providingoperators with an important new tool for well integrity monitoring.The annulus of an oil well is the space between two concentric objects,such as between the wellbore and casing or between casing and tubing,where fluid can flow. In a completed well, there are normally at leasttwo annuli. The A annulus is the space between the production tubingand the smallest casing string with the B annulus located between differentcasing strings.

Cement seals behind the wellbore casing provide a barrier against thehigh pressures encountered deeper in the well. Poor or deterioratingcement sealing or casing collapse (the casing will heat up and thermallyexpand due to the production flow), however, can lead to a loss in casingintegrity, allowing oil or gas to migrate vertically towards the surfacealong the outside of the casing. This can result in potentially hazardoussituations, especially during workover operations, where uncontrolledgas may escape at the surface. In the worst case scenarios, a shallow gasblow out might evolve due to the failed barriers in the casing systems.With online pressure monitoring, the Roxar Downhole Wireless PTSensor System – Annulus B can provide positive confirmation of thepressure barrier’s integrity. The tool will also negate the sometimesexcessive and expensive over dimensioning of casings that can take placeto compensate for worst case scenarios and will also potentially provideoperators with significant cost savings previously incurred in shuttingin wells, due to their lack of ability to verify barrier integrity. The newwireless PT Sensor System and its permanent monitoring capabilitieswill give added certainty to the well integrity monitoring process as wellas valuable input during well trouble-shooting.

The Roxar Downhole Wireless PT Sensor System monitors the B Annuluspressure and temperature without any degradation to the original barrier

element consisting of the A casing system and can be retrofitted to themonitoring system design of current subsea systems.

The system consists of an Integrated Downhole Network (IDN) systemto carry signals from the wellbore to the customer monitoring systemwith a Downhole Network Controller Card (DHNC) placed in the subseastructure and connected to a ¼” electrical cable coupled to a tubing hangerpenetrator and a series of up to 32 sensors distributed throughout thecompletion string. Other key components of the system include a wirelessreader, a wireless PT Transponder and antennae to monitor activity inthe B Annulus, and a transponder and reader carrier. The system has anaccuracy of +- 2.5 psi - +- 0.18° F.

The system is qualified to last for a minimum of 20 years at temperaturesof up to 302° F and pressures up to 10,000 psi. The system is also basedon an electronic wireless system, where the signals and power aretransmitted wirelessly, ensuring a long life.

Emerson Launches New Wireless Downhole Tool

Roxar Downhole Wireless PT Sensor System

The new Secoroc one-piece retrieval systemby Atlas Copco simplifies and improves onits predecessor by eliminating the retainingring and dowel pin, resulting in a more robustsystem for the oil and gas market. Insteadof a retaining ring and dowel pin, the newdesign is comprised of a dual four-lug systemon the retrieval sleeve. These lugs correspondwith grooves in the bit head. Once the lugsand grooves are in alignment, the sleeve isrotated to lock it into place.

“The retrieval system decreases the amountof time spent tripping the hole should a bit shank, and in gas drilling timeis of the essence,” said Mike Millsaps with Atlas Copco DTH equipment.

“By simplifying the design and eliminatingparts, there are fewer issues that can arisewith it, making it a better system all the wayaround.”

The system is available in Q6, Q8, T9 andQ12 shanks with two different retrievalsleeves to accommodate the QL/TD80hammers or TD85/90 hammers. The bitnumber indicates which sleeve is packagedwith the bit. Current QL and TD retrievalhammers or standard hammers can beconverted to use the new one-piece system

by simply changing the chuck body. All Atlas Copco shank sizes cannow be equipped with this one-piece retrieval system.

Atlas Copco Introduces New One-Piece Retrieval System

Detailed view of the one-piece Secoroc Bit Retrieval System


Subsea 7 Readies First CommercialAutonomous Inspection Vehicle (AIV)

Subsea 7 announced that it has completed the design and build of thefirst commercial Autonomous Inspection Vehicle (AIV), a technologywhich has the potential to revolutionize Life-of-Field projects. Thecompany plans to develop a series of AIVs, initially capable of generalvisual inspection, through to fully capable work-class sized interventionvehicles. A combined project team comprising hardware developersand operational personnel from Subsea 7 and Seebyte, a Scottish basedsoftware developer for the autonomous robotics market, has been workingtogether to deliver the first vehicle.

The design and build of the vehicle is complete and successful progressthrough in-water trials and commissioning phase is underway. Followingcompletion of extensive in-water testing and capability development, thefirst commercial AIV is expected to be available in late 2011.

Through the development process, many technical challenges wereovercome such as the shape of the vehicle changing from the originaldesign concept due to the significant work done using the latest

Computational Fluid Dynamics Modeling to optimize the vehicle’s shapewith regard to stability and maneuverability, while conserving the onboardpower resources.

The vehicle is fully autonomous and can operate for a 24-hour period ona single charge of its lithium-ion batteries, which are housed in pressurevessels within the hull. These batteries have been specificallydesigned for the vehicle and provide a more cost-effective solution topressure tolerant batteries, with a lower capital cost and much improvedcycle lives.

The sensor package has been developed to cover the requirements ofgeneral visual inspection; it comprises the latest sonar technology coupledwith high quality video cameras and low power LED lighting.A significant software integration and development project has beenrunning in parallel with the hardware development and this too hasused the most advanced techniques to manage, debug and control thedevelopment.

Baker Hughes Introduces Next-Generation Reservoir Modeling Software

Baker Hughes introduced the next generation of its JewelSuite™ reservoirmodeling software. JewelSuite 2011 is an integrated reservoir modelingtool that uses patented 3D gridding technology to build accuratereservoir models for fields with complex geology. The JewelSuiteplatform also provides connectivity between its generated models andreservoir simulators – a capability designed to further improve overallsimulation accuracy.

JewelSuite 2011 includes several breakthrough technologies that extendthe scope of the software and the associated subsurface 3D modelingworkflows. These technologies include: a new approach to earth modelingcollaboration; linked software platforms to enhance workflows; morepowerful processing via multithreading and multicore functionality; andenhanced workflows for modeling unconventional reservoirs.

New collaboration functionality built into JewelSuite 2011 allows teammembers to share pertinent information with or without a traditionalhub-and-spoke database approach. Knowledge workers can beproductive, regardless of location or connectivity to the Internet. Newaudit trail, object-tracking and baseline modeling functionality enablesteam members and management to track and control the quality ofsubsurface models; i.e, how they were built and the assumptions anddecisions used in their construction.

Multithreading and multicore functionality, along with workflowautomation, allow users to make faster decisions with the advantageof modern multiple core processor architecture(s), which lets themprocess scenarios on two cores while simultaneously evaluating orbuilding new, alternative scenarios on additional cores. Workflowautomation allows customers to batch process property modeling,gridding steps or parameters with one click, saving time andreducing the potential for errors in evaluating structural and reservoirproperty uncertainties.

JewelSuite 2011 also includes microseismic visualization capabilities,which, together with the program's ability to easily create differentscenarios to test flow rates based on orientation of fractures and horizontalwell placement, further improves the workflow for development ofunconventional reservoirs.

Through Baker Hughes’ participation in the Seismic to Simulation (STS)Alliance with Seismic Micro Technology (SMT) and Computer ModelingGroup (CMG), JewelSuite users can complete workflows from seismicto reservoir modeling and flow simulation in a familiar, easy-to-useMicrosoft Windows operating system environment. Direct communicationamong JewelSuite, SMT, and CMG software platforms supports read/write,versioning, and audit capabilities.



Facts and Figures

A F RI CA N RI G CO U N T

Apr-2011 Prior Month Change

Rig Counts

ThroughApr-2011 Prior Year

YTD AverageCountry

Sour

ce: S

chlu

mbe

rger

Change fromPrior Year (%)

660

-1000000

500

100000000

-38-56

008

-27-67

0-67

000

-100-100

00

-1350

000000

-1000

-100000

-40-40-50

000

1000

100000

100100

0000000

21-1564

00000000

-23-23

-100-50

-100100

000

-2925

-100000

676702021700021100044013946652156060001101082303000101000525020000001101010000002413110000000022221220000743110

71710182170003120004408446656112020000001073303000000000313010001011102110000002911180000000017170101000550110

110-10-1000-1-10000000-10-1-4-2-2000000000101000000000000

-14-13-1000000000-1-10000000-10-100000000-4-40000000110110

7171018117000523000440734655411202000000972404000000000141310000001102110000002911180000000020200101000440110

72720171160004130004406336152920200000010734040000000000000000001101010000002811170000000016160101000550220

ALGERIALandOffshore

ANGOLALandOffshore

BENINLandOffshore

CAMEROONLandOffshore

CENTRAL AFRICAN REPUBLICLandOffshore

CHADLandOffshore

CONGOLandOffshore

EGYPTLandOffshore

EQUATORIAL GUINEALandOffshore

ERITREALandOffshore

ETHIOPIALandOffshore

GABONLandOffshore

GHANALandOffshore

GUINEA BISSAULandOffshore

IVORY COASTLandOffshore

KENYALandOffshore

LIBYALandOffshore

MADAGASCARLandOffshore

MAURITANIALandOffshore

MOROCCOLandOffshore

MOZAMBIQUELandOffshore

NAMIBIALandOffshore

NIGERLandOffshore

NIGERIALandOffshore

SENEGALLandOffshore

SIERRA LEONELandOffshore

SOUTH AFRICAOffshore

SUDANLandOffshore

TANZANIALandOffshore

TOGOLandOffshore

TUNISIALandOffshore

UGANDALandOffshore

TOTAL AFRICA 234 257 -23 273 298 -8


WO RLD RI G CO U N T

Apr-2011 Prior Month Change

Rig Counts

ThroughApr-2011 Prior Year

YTD AverageRegion Change from

Prior Year (%)

234

391

189

169

626

471

1221

1925

257

388

507

169

598

467

1170

1875

-23

3

-318

0

28

4

51

50

273

384

440

171

604

469

1185

1854

298

368

335

166

563

367

1003

1525

-8

4

31

3

7

28

18

22

O I L P RI C ES$

G A S P RI C ES$

119.90126.64114.04

116.96121.55109.73

104.40113.6997.77

111.35115.6698.77

107.79113.7297.85

107.88113.2098.93

107.30112.5299.59

OPEC Basket Brent Crude Nymex

4.764.71

4.35

4.53

4.32

4.454.52

4.374.27

4.05

4.25

4.094.19

4.24

3.0

3.5

4.0

4.5

5.04.244.52

4.194.45

4.094.32

4.254.53

4.054.35

4.274.71

4.374.76

Henry Hub New York

MAY 2OPEC BasketBrent CrudeNymex







MAY 6Henry HubNew York







Sour

ce: S

chlu

mbe

rger

Africa

Asia Pacific

Canada

Europe

Latin America

Middle East

Russia and Caspian

US

Global Total 5226 5431 -205 5380 4625 16

9596979899100101102103104105106107108109110111112113114115116117118119120121122123124125126127128129130

112.52113.20113.72

115.66

113.69

121.55

126.64

99.5998.93

97.8598.77

97.77

109.73

114.04

107.30107.88107.79

111.35

104.40

116.96

119.90

Facts and Figures

Production of Natural Gas Plant Liquids(Thousand Barrels/Day)

Algeria

Angola

Congo (Brazzaville)

Egypt

Equatorial Guinea

Libya

South Africa

Tunisia

Total Africa

Total World

350

53

7

145

24

140

5

4

728

8,634.07

350

53

7

145

24

140

5

4

728

8,587.79

350

53

7

145

24

140

5

4

728

8558.265

350

53

6

143

24

135

5

4

720

8,425.68

OPEC Production of Crude Oil(including Lease Condensate, Thousand Barrels/Day)

Ecuador

Iran

Iraq

Kuwait

Qatar

Saudi Arabia

United Arab Emirates

Venezuela

Total OPEC Less African Members

Total OPEC With African Members

509.96

4060

2375

2350

1235

8640

2415

2140

23724.96

34937.651

499.333

4068

2525

2350

1235

8940

2415

2140

24172.333

35367.048

500.437

4076

2625

2350

1235

9140

2515

2240

246814.37

32439.44

508.898

4084

2525

2350

1280

9140

2516

2240

24643.898

32064.898

**For OPEC’s African members' individual production see Africa chart.

Africa Production of Crude Oil(including Lease Condensate, Thousand Barrels/Day)

Algeria

Angola

Cameroon

Chad

Congo (Brazzaville)

Congo (Kinshasa)

Cote dIvoire (IvoryCoast)

Egypt

Equatorial Guinea

Gabon

Ghana

Libya

Mauritania

Morocco

Nigeria

South Africa

Sudan

Tunisia

Total Africa

2010DEC JAN FEBNOV

1808

1790

70

125

290

21

43

525

284

225

6

1650

8

0.5

2510

13

505

76

1728

1790

70

125

290

21

43

525

282

225

20

1650

8

0.5

2490

13

505

76

1728

1790

65

125

285

21

40

522

289

225

50

1650

8

0.5

2590

13

505

76

1731

1790

65

125

285

21

40

521

287

220

55

1340

8

0.5

2560

13

490

76

OECD Production of Crude Oil(including Lease Condensate, Thousand Barrels/Day)

*All other OECD countries with production include Austria, Chile, Czech Republic,France, Greece, Hungary, Italy, Japan, New Zealand, Poland, Slovakia, Spain, andTurkey

Australia

Canada

Denmark

Germany

Germany (Offshore)

Mexico

Netherlands

Netherlands (Offshore)

Norway

United Kingdom

United Kingdom (Offshore)

United States

Total OECD

All other OECD*

424

2933.364

258.49

27

20

2512

12

12

1868

11

1237

5594.733

15200.95

291.363

371

2850.068

255

28

21

2574

12

11

1886

3

1205

5624

15171.08

331.012

341

2850.068

241

18

29

2584

12

10

1905

5

1295

5482.548

15045.82

273.204

333

2791.46

241

29

21

2556

12

10

1861

11

1074

5611.679

14818.34

267.201

Sour

ce: E

IASo

urce

: EIA

Sour

ce: E

IASo

urce

: EIA

2011 2010NOV DEC JAN

2011

2010NOV DEC JAN

2011 2010NOV DEC JAN

2011

9949.5 9861.5 9982.5 9627.5

FEB FEB

FEB


Conferences

July

Africa Mining Congress 201119-22 Johannesburg, South Africa www.terrapinn.com

December

20th World Petroleum Congress4-8 Doha, Qatar www.20wpc.com

June

Nigeria Oil and Gas Technology (NOG Tech)7-9 Lagos, Nigeria www.cwcnogtech.com

Petro.T.ex 20117-9 Johannesburg, South Africa www.fairconsultants.com

11th World XTL Summit7-8 London, UK www.cwcxtl.com

1st Zambian International Mining & EnergyConference & Exhibition (ZIMEC 2011)

15-17 Lusaka, Zambia www.zimeczambia.com

World National Oil Companies Congress 201120-24 London, UK www.terrapinn.com

China International LNG Conference28-Jul 1 Beijing, China www.lngchina.org

8th MidEast-North Africa Upstream 2011 Conference13-14 Geneva, Switzerland www.petro21.com

Global Catalysts Technology Forum & Exhibition(Cat-Tech 2011)

13-14 Dubrovnik, Croatia www.europetro.com

IFRS for Oil and Gas Industry Workshop13-15 Dubai, UAE www.infocusinternational.com

International Bottom of the Barrel TechnologyConference & Exhibition (BBTC 2011)

15-16 Dubrovnik, Croatia www.europetro.com

LNG Value Chain15-16 Rotterdam, The Netherlands www.acius.net

Green Refining & Petrochemicals Forum & Exhibition(Green Forum 2011)17-17 Dubrovnik, Croatia www.europetro.com

Upstream & Downstream Oil and Gas Exhibition & Conference21-23 Abuja, Nigeria www.expowestafrica.com

August

Mining and Mineral Processing Optimization11-12 Johannesburg, South Africa www.salvoglobal.com

Nigeria Economic Forum 201117-18 Johannesburg, South Africa www.petro21.com

September

International Gas Technology Conference & Exhibition(IGTC 2011)

19-20 Moscow, Russia www.europetro.com

21st World Upstream 2011 Conference20-21 Geneva, Switzerland www.petro21.com

Africa Energy Week20-23 Accra, Ghana www.cwcaew.com

Gulf of Guinea Oil and Gas Conference (GOG14)20-23 Accra, Ghana www.cwcaew.com

Offshore Europe, Conference & Exhibition6-8 Aberdeen, UK www.offshore-europe.co.uk

November

15th Africa OILGASMINE Trade and Finance,Conference & Exhibition

7-11 Brazzaville, Republic of Congo www.ogtfafrica.com

October

Chad International Oil, Mining and Energy Conference andShowcase/Exhibition (CIOME 2011)

11-13 N’Djamena, Chad www.ciome-chad.com

Africa Petroleum Storage and Transport Conference andShowcase/Exhibition (APESTRANS 2011)

12-13 N’Djamena, Chad www.cubicglobe.com

Offshore Energy 2011 Exhibition & Conference11-12 Amsterdam, Netherlands www.offshore-energy.biz

Middle East Drilling Technology Conference & Exhibition24-26 Muscat, Oman www.spe.org

1st Congo International Oil and Gas Conference (CIEHC)4-6 Brazzaville, Republic of Congo www.ciehc.com

TMECE, Tanzanian Mining and Energy Conference & Exhibition19-20 Arusha, Tanzania www.tanzaniaminingenergy.com

2nd German-African ICT Forum26-27 Nairobi, Kenya www.ict-conference.de

18th Africa Oil Week31 - Nov 4 Cape Town, South Africa www.petro21.com


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[email protected] visit www.petroleumafrica.com

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* While all the hype on shale may come from Russia and North America, Africa hostssignificant shale resources of its own including the world’s #3 reserve holder.

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Industry R&D Initiatives

45

5

3

59

27

17

IFC

21, 53

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9

40

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61

15

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IBC, 57

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Cudd Energy Services

Energyimages.com

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