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Equatorial Guinea to Build its First Modular Refinery in Punta Europe
Gabriel Mbega Obiang Lima during the presentation of the Punta Europa Modular Refinery project at Hotel Colinas in Malabo explained in reference to the delay that meant that Equatorial Guinea had its own national refinery. “The scenario of equipping the country with its own refinery had not yet been handled since the exploitation of hydrocarbons began, due to viability issues, costs and the financing involved,” To date, it uses the international ones.
For the mining department, the start-up of the aforementioned refinery, among the objectives it pursues, is the avoidance of stock breaks and the supply of refined products to national consumers, taking into account the strategic role of the national economy .
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According to technical feasibility study, the project will consist of two phases; The first, the installation of a CDU unit and its auxiliary equipment will be carried out, within a completion period of 20 to 24 months, while the second, the reformer for gasoline production
will be installed, with the period of 30 to 36 months.
According to the technicians of the oil company, Marathon GE and the Ministry of Mines, two scenarios are being considered for the implementation of this project. On the other hand, with a refining capacity of 10,000 barrels / day, more than 200 million US dollars would be needed, with an estimated income in the first year of 67.6 M $ and amortization in 34 months; and the other refinement scenario of about 5,000 barrels per day, which they project at the best, more than $ 147M will be needed, while it is estimated that around $ 13M can be raised with a repayment plan of 60 months.
The raw material that will be used in the facilities will be the condensate produced in the Alba and Alén fields, which is expected to produce up to a total of five crude derivatives, such as gasoline, kerosene, diesel, Jet Fuel and the Naptha in light and heavy state, whose work will be carried out by VFUELS OIL & GAS COMPANY. One of the points that are still uncertain in this project, Ministry of Mines and Hydrocarbons claims, is the question of financing shareholders. As Mbega Obiang Lima pointed out, Equatorial Guinea will only have a minimum percentage of participation, which today is estimated at 20%, while 80% would be distributed in private sector investment companies.
The possible economic results that the ministry of Mines and Hydrocarbons presented seem very optimistic, with the price of condensate projected at $ 55 a barrel, which implies a discount from Brent, although it has not been determined whether the price of fuel that is now being Paid in the country will be reduced taking into account that the State will have to stop incentivizing the price as it continues to do to date, but with total security, the ordeal of fuel shortages, especially gasoline, will be history in the country, since the main target market will be domestic consumption, although it is not ruled out that it will be sold abroad in the event of a surplus.
India’s African Oil Imports Hit 10-Month High in August
India’s oil imports from Africa jumped to their highest in 10 months in August as refiners switched out more expensive crude from the Middle East, shipping data provided by trade sources showed.
The world’s third biggest oil importer shipped in about 3.95 million barrels per day (bpd) of oil in August, the highest volume since April, with African nations accounting for about 17.5per cent, or an eleven month high of 688,000 bpd, the data showed.
“Spot prices of west African oil versus Brent were down in the most part of July compared with June. That along with lower freight offered an opportunity to buy Nigerian oil,” said Ehsan Ul Haq, analyst with Refinitiv.
He said in order to raise revenue, Nigeria was supplying more oil in July than it pledged under a production cut agreement between OPEC and its allies, while Angola was scouting for a new market after the Chinese cut purchases.
“And the new home was India.”
An internal OPEC report showed Iraq and Nigeria were the least compliant over the May-July period.
Strengthening diesel cracks also prompted Indian refiners to buy African grades, while an increase in official selling prices by key gulf producers including Saudi Arabia deterred them, Haq said.
India also shipped in Venezuelan oil in August after a gap of two months as Reliance Industries obtained permission from the US to swap diesel for oil.
Higher intake of Nigerian and Venezuelan oil lifted the share of OPEC’s oil in India’s overall August imports to 77.6per cent, the highest since January, from 67.2per cent last month, the data showed.
OPEC’s share was, however, at a record low over the April-August period, the first five months of the fiscal year.
The share of Middle Eastern oil shrank to 62.4per cent, the lowest in three months, from 71.3per cent last month, while that of Latin America rose to 9.7per cent from 6.3per cent.
During the month Iraq remained the top oil supplier to India followed by Saudi Arabia and United Arab Emirates. Nigeria, which was the 8th largest supplier to India in July, rose to No.4, pushing the US to fifth position.
Kuwait stayed at No. 6 while Venezuela, replaced Colombia, as the seventh top supplier.
Angola 2020 Onshore Bid Round will officially open in January 2021 and bids must be submitted by March 10th 2021.
Nine blocks are on offer, in the Lower Congo and Kwanza Basins.
The country’s International Competitive Bid Round for oil gas licenses, announced last year, is a scheduled offering for onshore and offshore, in the period 2019-2025.
Last year, Angola’s National Agency of Petroleum, Gas and Biofuels (ANPG), awarded three blocks: 27, 28, and 29, offshore in the deepwater Namibe Basin.
This year, the bidding plans have been disrupted by COVID-19 complications.
The blocks on offer are CON1, CON 5, CON 6, KON 5, KON 6, KON 8, KON 9, KON 17 & KON 20 (See map here), located in the Lower Congo Basin and the Terrestrial Kwanza Basin.
Data available includes 2D seismic coverage of the Lower Congo Basin, a recently updated Geological Map and Database of the Onshore Kwanza Basin and a compilation of recent aeromagnetic data covering the Transition Zone and Shallow Waters of the Lower Congo and Kwanza Basins.
Africa’s Natural Gas Projects Are Crucial for Global Energy Transition – NLNG GM
Africa’s natural gas projects are crucial to the energy transition and economic development in the region and can be used to power industrialisation while reducing the emissions released into the atmosphere, said Leye Falade, General Manager of Production at Nigeria LNG (NLNG) at ADIPEC Energy Dialogue held recently.
Natural gas is an integral part of the global energy story accounting for 25% of the global energy that is consumed. With a total proven natural gas resource estimated to be about 600 trillion CFT (ft3), the opportunities for natural gas in Africa are enormous.
Falade highlighted that gas is cheaper, cleaner, and more available than the traditional oil forms, and it can support realistic transitioning to the new energy world order.
Speaking about NLNG’s latest expansion programme – the Train-7 Project – which will increase the company’s production capacity by 35% from the current 22 million tonnes per annum (mtpa) to 30mtpa, Falade pressed upon the importance of the project to all stakeholders as it is expected to increase Foreign Direct Investment (FDI) inflow into Nigeria by more than US$7bn over the next five years.
With the addition of Train-7 and the increase in production capacity, NLNG will stand a chance to maintain its position as the sixth major supplier of LNG, globally. The project is anticipated to create more than 12,000 new jobs directly, and more than 40,000 indirectly, particularly during the construction stage.
According to Falade, while COVID-19 has the potential to limit some of the project activities that can be carried out for a period of time, this is not expected to affect the overall cost of the project significantly. He also said that the Engineering, Procurement, and Construction (EPC) contract for Train-7 is progressing well under the approved COVID-19 restricted contractor’s decision strategy and various stakeholder engagements have been initiated to ensure that any possible unforeseen risks are mitigated.
Meanwhile, when it comes to the volatility in global oil and gas prices, Falade believes that with lower oil prices, there are also opportunities. “As 2020 has become a year of survival, and companies started operating in crisis mode, this has enabled us to have more control of our costs and make prudent calls to keep the business afloat,” he explained.
“Ultimately, no-one in the industry can run away from the impact of COVID-19. Now is the time for companies to showcase whether they have the ability to stay in the game during the ‘lower-for-longer’ cycle in the industry by remaining profitable while not compromising their ability for sustained existence,” he added.
Addressing the opportunities for international industry stakeholders in the Nigerian gas market, Falade said that they now have the opportunity to participate in the areas of service and manufacturing by partnering with local Nigerian companies and service providers. They can also support Nigerian companies wanting to utilise LNG as an alternative clean energy source, as well as financing the needs of the partner company when it is required.
The ADIPEC Energy Dialogue is a series of weekly online thought leadership events created by DMG events, organisers of the annual Abu Dhabi International Exhibition and Conference. Featuring key stakeholders and decision-makers in the oil and gas industry, the dialogues focus on how the industry is evolving and transforming in response to the rapidly changing energy market.
With this year’s in-person ADIPEC exhibition and conference postponed to November 2021, the ADIPEC Energy Dialogue, along with insightful webinars, podcasts, and online panels continue to connect the oil and gas industry, with the challenges and opportunities shaping energy markets in the run-up to and following, a planned four-day livestream virtual ADIPEC conference taking place from 9-12 November
