SEPLAT Activates Investigation Team on Okpe, Sapele Incident

adding that the remaining countries after the screening vary from six to 16 countries per company.

It further stated that the results of the study indicate a number of potential deals among major players buying portfolios from each other to boost their position in a key country.

“Rystad Energy’s study shows that all the Majors+ companies are likely to keep a presence in the US, and most of them may also remain in Australia and Canada. On the other end of the scale we see quite a few countries with only one oil major present, including Argentina (BP), Ghana (Eni), Thailand (Chevron) and Guyana (ExxonMobil). In some of these countries it could be tempting for others to stay or increase their presence as the competition may be more limited. At the same time, these countries could also be growth targets for other companies than the Majors+.”

The company explained: “For example, BP, Eni and ConocoPhillips could consider acquiring the Indonesian portfolios of ExxonMobil, Total and Shell. Shell’s and Total’s portfolios

By Ikenna Omeje

could be of interest to BP if the UKbased company wants to enlarge its Indonesian LNG asset base and take on a new growth asset.

“A further analysis of other parameters of the portfolios, like hydrocarbon type, supply segment, size and asset location, will help identify the best acquisition target for each region. Indonesia is clearly a place to stay for gas assets, with a mixture of onshore, offshore shelf and deepwater assets across all lifecycles – but a company’s portfolio needs to be material over the longer term.

“In recent months we have seen that the Majors+ are already putting larger portfolios up for sale, like ExxonMobil, which is planning several country exits including the UK, Romania and Indonesia, and Shell which was trying to exit a key LNG asset in Indonesia in 2019. This shows that the Majors+ are well aware of the need to focus their portfolios to improve cashflow, efficiency and competitiveness as the energy transition accelerates – but so far, the steps may be too small.

“The current market situation means that the cash available for acquisitions could be limited, and price volatility could make it difficult for buyers and sellers to agree on a valuation. An alternative way for the Majors+ companies to exit some countries and grow in others could be to do swaps between country portfolios. This could include two or more countries to align values and reduce the cash element of a deal.

“We see several such opportunities: For instance, BP could swap its position in Algeria for Eni’s holdings in Australia. As BP’s Algerian portfolio is valued at around $320 million and Eni’s Australian portfolio at about $466 million, the companies would have to find additional conditions to even out a swap. Another example could be Shell swapping its assets in Norway for Total’s portfolio in Oman.

“We also expect that the Majors+ will divest assets with high emission intensity to meet long-term targets for reducing emissions, however this consideration

....no oil seepage, spill traced to its facilitie

is not included in this study.”

Following a complaint from five households recently at Okpe and Sapele in Delta State, indicating the presence of hydrocarbons in their respective dug shallow water wells, Nigerian energy giant, Seplat, immediately activated an emergency response, the company said in a statement signed by its General Manager, External Affairs and Communications, Dr. Chioma Nwachuku, on Wednesday.

According the statement… “an investigation team comprising the Department of Petroleum Resources (DPR), the National Oil Spill Detection and Response Agency (NOSDRA), and Delta State Ministry of Environment conducted a joint investigation visit, alongside the Seplat emergency response team” in the area.

The company expressed its commitment to the safety of residents of the areas of its operation, stating that it will continue to support the investigation and provide support to the affected households.

Seplat also appreciated the affected households for their co-operation and peaceful approach and reassured them and the communities that it is “expediently investigating the root cause of the incident.”

“Seplat prioritized the safety of the residents of the affected area by providing potable water and secured the water wells from access. We will continue to support the investigation and provide palliative support to the households in line with the company’s firm commitment to its robust Health, Safety and Environment culture in all areas of its operations.

“Seplat has carried out checks of other water boreholes in the same vicinity and have drilled additional test boreholes. None of them has any signs of hydrocarbon in the water. No oil leaks or seepage has been traced back to the Seplat operated facilities.”

“We wish to thank the affected households for their co-operation and peaceful approach and to reassure them and the communities that we are expediently investigating the root cause of the incident,” the company stated.

Seplat, which has a 45 percent working interest in OMLs 4, 38 and 41, located in Edo and Delta States onshore Nigeria, is the operator of the three blocks on behalf of the NPDC/Seplat Joint Venture.

“Seplat has built strong partnerships with its vital local communities, promoting trust and confidence amongst its various stakeholders, ultimately resulting in a stable operating environment that facilitates the creation of shared value,” the statement added.

Energy Transition: Total Investing More Than 500 Million Euros to Convert its Grandpuits Refinery Into a Zero-Crude

By Ikenna Omeje

Within the framework of its net zero strategy, French energy giant, Total, will convert its Grandpuits refinery (Seine-et-Marne) into a zero-crude platform for biofuels and bioplastics, a release by the company said recently.

The company disclosed that by 2024, following an investment totaling more than €500 million, the platform will focus on four new industrial activities, which it stated to include: Production of renewable diesel primarily intended for the aviation industry; production of bioplastics; plastics recycling; and operation of two photovoltaic solar power plants.

“Meanwhile, crude oil refining at the platform will be discontinued in the first quarter of 2021 and storage of petroleum products will end in late 2023. Operations at service stations and airports in the Greater Paris region will not be affected: they will be supplied by the refineries at Donges— currently undergoing a €450 million modernization — and Normandy. “This decision to end its oil refining comes in the wake of an audit conducted over several months on the 260-kilometer Ilede-France pipeline (PLIF), which carries crude oil from the Port of Le Havre to the Grandpuits refinery,” it said.

The company explained that “the refinery was forced to shut down for more than five months in 2019 when a leak appeared on the PLIF, following an earlier leak near Le Havre in 2014. With the approval of government officials, the PLIF’s maximum working pressure was reduced to ensure safe operation. As a result, the refinery could operate at only 70% of its capacity, threatening its long-term financial viability.

“The audit found that normal operations at the refinery could be restored only by replacing the PLIF, at a cost of nearly €600 million. Given France’s plans for the energy transition up to 2040, therefore, Total has decided to end its oil refining at Grandpuits and embark on an industrial transformation of the site, backed by a major investment plan.”