Business Enquirer Issue 123 | AMMAT | March 2024

FUELLING THE FUTURE OF AFRICA

FUELLING THE FUTURE OF AFRICA

Located in the offshore fields of Loango and Zatchi, approximately 70 km off the coast of Pointe Noire in the Republic of Congo, Ammat is an independent hydrocarbon producer.

Serving the entire value chain, the business embraces all of the upstream stages of natural gas and oil production: from obtaining exploitation rights to exploration and production, including appraisal, development and decommissioning of the field.

Its operations are anchored in a sophisticated, data-driven strategy tailored for optimised reservoir management. This approach underscores its commitment to enhancing hydrocarbon production while prioritising environmental sustainability.

AMMAT PROJECT DIRECTED BY: JAIE WAITE

ARTICLE WRITTEN BY:

LAURA WATLING

Encouraged by the concept of the circular economy, Ammat considers each asset as precious and every resource as something to be nurtured.

“Sustainability is at the core of Ammat’s operations, aligning with our vision for Environment, Social, and Governance,” he continued, “We actively dedicate ourselves to implementing solutions aimed at reducing gas consumption and the resulting emissions into the atmosphere to minimise our environmental impact,” explained Massimiliano Mignacca, Ammat’s General Manager.

Additionally, Ammat prioritises creating value for local communities through meaningful initiatives that foster development opportunities.

The business is dedicated to advancing the UN’s Sustainable Development Goals, with social initiatives developed in collaboration with the government and local communities, creating shared value and opportunities for growth.

“We concentrate our efforts on education, health, and well-being through training programs and infrastructure projects in partnership with SNPC,” said Massimiliano, “Our goal is to serve as a positive force for change in the upstream sector while upholding ESG principles,”.

Passionate about its people, Ammat’s culture is propelled by a passion for collaboration and inclusivity, empowering employees and cherishing diversity.

“Nurturing innovation, open communication, and a collective commitment to excellence, our people form the bedrock of our success. At Ammat, our strategic focus revolves around People, particularly young talent,” Massimiliano explained.

Enabling development, Ammat has implemented a training model for young people, incorporating mentoring programs and fostering growth in both human and technical values to ensure an excellent level of performance.

Combined Commitment to Excellence

As of July 1st, 2023, Ammat initiated production in the offshore fields of Loango and Zatchi through a strategic partnership (“Strategic Plan”) with SNPC.

“We take great pride in being entrusted with the Permis Zatchi III and Permis Loango III by the Republic of Congo for a 20-year duration, extendable for an additional 5 years,” shared Massimiliano.

This acknowledgment underscores the value of Ammat’s Strategic Plan and the proposed investments aimed at enhancing the fields.

“The partnership between Ammat and SNPC is characterised by mutual trust and a shared commitment to excellence in the petroleum sector, reflecting a robust and collaborative alliance,” he continued.

In its Strategic Plan, Ammat has outlined a series of targeted investments aimed at achieving priority objectives of integrity and security for its people, as well as ambitious operational, economic, and sustainability goals.

The business’ aim is to double current production levels while simultaneously enhancing operational safety. To achieve these outcomes, it has developed a comprehensive plan involving the structural revamping and asset integrity of the operational platforms in both fields, along with a well workover plan. This plan includes a maintenance and replacement program for key components.

“All interventions are focused on stabilising and regulating production flows, thereby reducing operational risks, and optimising activities,” said Massimiliano.

In the first few months of implementation, the Strategic Plan has seen an increase in production capacity by 75%, rising from approximately 4,000 to around 7,000 barrels per day.

“This accomplishment is a result of a pioneering data-driven approach, leveraging the profound expertise of our production managers, and goal-oriented SMART collaborations with leading global companies for engineering and efficiency studies in the oil industry,” added Massimiliano.

To optimise the efficiency and productivity of the Loango and Zatchi fields, considering evolving reservoir conditions and extended well downtime, Ammat initiated assessments and analysis aimed at partially restoring asset integrity. Substantial investments, estimated at around $250 million, have been meticulously planned to strategically support these initiatives.

And the future?

Ammat believes that, soon, the oil and gas sector will grapple with evolving market dynamics, technological advancements, regulatory shifts, and a growing environmental consciousness linked to the necessary energy transition. With that in mind, exciting opportunities lie in harnessing artificial intelligence to bolster operational efficiency and cut costs, as well as repurposing existing reservoirs for renewable energy production.

“The primary challenge facing the industry is the imperative to reduce greenhouse gas emissions, a critical aspect of contributing effectively to the energy transition. For Ammat, this represents both a challenge and an ethical duty, compelling us to enhance the sustainability of our production and explore innovative solutions to meet increasingly ambitious targets” closted Massimiliano.

www.ammatgr.com