West Africa's Oil and Gas Development by OIL AND GAS REPUBLIC

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OIL GAS WEST AFRICA'S OIL AND GAS DEVELOPMENT: Experience Innovation and Proven Solutions

CONFRENCE HIGHLIGHTS, INTERVIEWS AND INDUSTRY NEWS

Featuring: - Offshore West Africa 2015 Highlights - RGU PhD Student Looks To Establish Offshore Renewables In Developing Countries - Some Big Discoveries in Offshore West African Region - Nigeria Moves Closer to Oil Find in Lake Chad Basin - Exclusive Interviews with Industry Experts

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Contents Table of Contents Offshore West Africa 2015 Highlights Photo Galleries Exclusive Interviews Articles Featured Contents Industry News

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Official Media Partner

Welcome Dear Industry Colleagues, On behalf of OIL AND GAS REPUBLIC PUBLICATION, I am pleased to announce that we are an official media partner at the 20th Annual Offshore West Africa Conference & Exhibition, 26 - 28 January 2016 at The Eko Hotel & Suites, Lagos - Nigeria. Offshore West Africa Conference & Exhibition, owned and produced by PennWell Corporation. Offshore West Africa has been at the forefront of brining together the industries high-level players and promoting the latest technological advances as well as important regional innovations, networking and business opportunities for over 20 years. Offshore West Africa features an interactive sessions for the sharing of experiences and challenges from the recent field development, subsea technology, exploration and production, oil discoveries, well intervention, corrosion control and much more. Offshore West Africa also features a forum for panel discussion featuring Government officials and industry professionals who discussed pressing issues, including the challenges of implementing regulatory reform, social responsibility, investment opportunities, managing and growing local capacities. As a media partner, we are committed to providing latest updates to unlock the opportunities in this industry and to continuing to be part of the development of Offshore operations in the region. Our strength in servicing this industry comes from our highly developed teams with an extensive experience and the strong connection we maintain across our global network. We welcome you to this our publication and hope you have an enjoyable and productive time. Should you have any inquiries, please feel free to contact us with the contact details below. Kind regards, Micheal Obineme, Publisher & CEO OIL AND GAS REPUBLIC PUBLICATION info@oilandgasrepublic.com +2349098095532

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Photo Galleries

Official Opening Ceremony at Offshore West Africa Conference & Exhibition 2015

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Photo Galleries

A snap shot of Visitors and Delegates at the Registration Desk, Offshore West Africa 2015

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Photo Galleries

Snap shot of Visitors and Delegates at the Conference Centre, Offshore West Africa 2015

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Photo Galleries

High Level Delegates at Offshore West Africa 2015

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Photo Galleries A snap shot of the award winners at Offshore West Africa Conference & Exhibition 2015

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Exclusive Interviews

Offshore West Africa is focused on Upstream, Offshore, Oil and Gas Operations Exclusive Interview with David Paganie , Chief Editor, Offshore Magazine and Conference Director, Offshore West Africa. Offshore West Africa is the only conference and exhibition dedicated to the offshore oil & gas industry in the region. Offshore West Africa 2015 brought together over 2,373 Attendees from 35 countries, a record-breaking attendance of oil & gas professionals, creating a vibrant networking experience, generating new business ventures and initiating further learning opportunities. By Micheal Obineme 1. Can we get to meet your sir? Am David Paganie - Chief Editor of O ff s h o r e M a g a z i n e a n d t h e Conference Director, Offshore West Africa. 2. What is Offshore West Africa all about? Offshore West Africa is focused on upstream, offshore, oil and gas operations and everything from drilling, production, oil discoveries, field development and local content. 3. What is the benefit of Offshore West Africa to the African region? Offshore West Africa is about developing the communities and giving the young engineers the opportunity to attend the conference which enables them to learn, build their knowledge, listen to technical process and network with some oil companies for opportunities within the oil and gas industry. 4. What are your views on the challenges of Offshore Operations in West Africa? In this moment, the challenges is managing the Low Oil Price and it is not really the technical areas because there is enough expertise in Nigeria to develop the oilfields. It is about managing the assets properly and financially.

5. What are the prospect for Investors and what do they stand to benefit from Offshore West Africa? Well, i think there is a level of technical expertise for international companies to partner with local companies to help develop some of the Offshore resources. The sector is very mature but you can always learn new ways of doing things and right now, it is more important to be efficient due to the Low Oil Price.

prospect Offshore East Africa. South Africa, there are still not much activities there but it is primarily on the West and East African side but there are still more opportunities.

It is believed that some of the Pre-Salt Offshore in West Africa transform in marginal region could be analogous to some big discoveries Offshore Brazil. So lots of companies believes if they keep going further West they might be able to learn some of the entrance discoveries to some worth 6. Please can you list one or two towards Offshsore Brazil. opportunities to learn? Yes, i would say probably in the 8. Where do you see Offshore West deepwater sector. It is still been Africa in the next 2 years? developed and there are lots of Offshore West Africa will definitely opportunities out there. There are still grow because there are so many some opportunities in the field opportunities in the industry and i development area, subsea technology also talk to people about these which you heard from the previous enormous opportunities around the speakers but perhaps there are still world which will continue to grow. opportunities in the subsea area that can be integrated in Offshore Nigeria. 7. What is your vision for Offshore West Africa? It is interesting because in the past it is primarily been focused Offshore West Africa but East Africa is very marginal in Offshore Mozambique, Tanzania but there is some significant natural gas discoveries and it is quit a bit of international global interest in the

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Exclusive Interview

UKTI Works with Businesses based in the UK to Assist their Success in International Markets Exclusive Interview with Patricia Kenneth Divine, Trade Development Manager in charge of the Energy Sector for UK Trade & Investment (UKTI) UK Trade & Investment is a UK Government department working with businesses based in the United Kingdom to assist their success in international markets. We encourage and support overseas companies to look at the UK as the best place to set up or expand their business.

By Micheal Obineme

4. What is the partnership between UKTI and Offshore West Africa? Offshore West Africa is a UK company based on that we are giving them our support and in giving them the support we held a networking reception at the British residence here in Lagos and we also held a press 2. What is UKTI all about? UKTI stands for UK Trade and conference with stakeholders in the Investment. UKTI is a commercial Nigerian oil and gas industry. department of the British Deputy H i g h C o m m i s s i o n a n d o u r 5. Apart from Offshore West responsibility is to support british Africa, which other sectors UKTI companies who are looking at doing covers? business in Nigeria, we help them to UKTI actually covers lots of other sectors from energy, ICT, Health come into Nigeria. sector and more...but our priority is to 3. Do UKTI work with UK see the business succeed and in doing that we prefer an identified Companies only? Yes, we are specific to UK companies partnerships that are valuable to the but as well as drawing relationship UK companies. We also have some with Nigerian companies. It is a ongoing projects which the supply relationship between UK companies chain programs is among our project and Nigerian companies and our and another way we support them is priorities is to help the british helping them meet with stakeholders companies come into Nigeria to in the industry either through networking events, specified and doing business. 1. Can we get to meet you? My name is Patricia Kenneth Divine, am the Trade Development Manager in charge of the energy sector for UK Trade & Investment (UKTI), Nigeria.

tailored business meeting in the cause of doing that, we also help them get closer to the businesses within Nigeria. 6. What are the success story so far for UKTI? Yes, i will talk about the Shell Supply Chain Program. The Shell Supply Chain Program has lasted for over 5 years and so far we have been able to generate over 50 partnerships, we have also done successful projects between UK companies and Nigerian companies which has also generated lots of revenue for both the UK companies and the Nigerian companies. So the Supply Chain Program put together by Shell and UKTI has been really very successful.

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Articles

Investment Opportunities in Africa's Offshore Operations Nigeria: West Africa's oil giant at a crossroads Nigeria has long been an energy titan in Africa, leading the continent in oil production and attracting exploration companies to increasingly move into deepwater blocks. The country's Egina deepwater field, a co-development between Total, CNOOC, Petrobras and South Atlantic Petroleum which is due to start production in 2017, is a flagship project for Nigeria's deepwater ambitions.

By Tobi Owoyimika African oil and gas hotspots are becoming increasingly attractive to global investors and exploration companies. While trends are generally on the up in terms of interest in the continent’s established and emerging oil and gas regions, what are the factors driving the flow of investment? Three national case studies – Nigeria, Ivory Coast and Mozambique – offer an insight into the pitfalls and possibilities for overseas investors looking for opportunities in Africa’s burgeoning oil and gas sector. For years, Africa's abundant natural resources have been playing a central part in the economic development of many of its constituent nations. Increased exploration activity by the global oil and gas sector has generated a raft of major hydrocarbon discoveries both offshore and onshore. Since the International Energy Agency's figures confirm that almost a third of all oil and gas discoveries in the last five years were made in sub-Saharan Africa, this is a trend that looks set to continue for the foreseeable future. The growth of resource exploration and production in Africa has also been the largest single magnet for much-needed foreign direct investment (FDI) in Africa over the last decade or more, with coal, oil and gas projects accounting for 40% of FDI capital between 2003 and 2010, according to Ernst & Young. A more recent encouraging sign for the attractiveness of Africa to oil and gas investors comes in the form of a November 2014 report by emerging market-focused law firm Berwin

Leighton Paisner (BLP), which found that almost half of the $1bn raised in London's mid-market oil and gas sector in the last year has been destined for projects in Africa. Attracting investment This is a reflection of an investment shift in the industry - including majors but especially mid-level frontier exploration companies - to gradually disengage from mature markets with strict regimes and move towards high-potential emerging resource regions in the hopes of making a big find. Perhaps the clearest exemplar of this trend is Tullow Oil, which in January 2015 was considering cutting its presence in the North Sea as it continues to push its investment in Africa.

Mauritania: West Africa's offshore wildcard Still, challenges and risks still exist in Africa, especially in the form of regulatory uncertainty as countries, some of which are new entrants to the oil and gas sector, work to establish regimes that will attract foreign money while also spreading a fair share of the economic benefits to people at a local and national level. Country by country, examples have emerged that provide insight into what to expect for overseas investors looking for opportunities in Africa's burgeoning oil and gas sector. The field, which according to Total will have a production capacity of 200,000 barrels of oil per day (b/d), will employ an advanced subsea production system and a floating production, storage and offloading (FPSO) vessel in what should be a demonstration to potential future investors of the country's rapidly

developing offshore industry and capability to tap resources more than 100km from the coast and in water Steadily rising foreign investment in depths of 1,750m. African offshore is a reassuring indication that geographical risk on the continent is becoming less of an issue for many investors and exploration companies. BLP's report noted that all of London's mid- market fundraising for South American oil and gas projects was carried out at greater than a 10% discount, a clear concession to perceptions of heightened geographical risk, while only half of fundraising efforts for African projects required the same discount. Companies offering a smaller discount on shares during fundraising rounds seem to suggest the market has increasingly come to accept offshore Africa as a less risky and more lucrative option than many of its emerging market counterparts.

Despite the impressive accomplishments being made offshore Nigeria, now is a crucial and arguably precarious time for the nation's oil sector. The controversial, long-gestating and oft-delayed Petroleum Industry Bill (PIB) reflects Nigeria's desire to create a more modern, reliable and stringent set of regulations for oil producers. Certainly, a stable regulatory framework can help reduce the uncertainty of potential investors, but the PIB has proven a sticking point for industry players. Although the bill incorporates tax incentives to encourage onshore and shallow water projects, increased tax

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Articles rates for deepwater projects could drive investors away. The exact form that the PIB takes whenever it emerges could have a decisive influence on Nigeria's prospects as an oil and gas investment hotspot, especially as onshore and shallow water projects - those set to receive a boost under the PIB - are most vulnerable to security threats like oil theft and output disruption, which have cost the industry billions in lost revenue in 2013 alone.

future, and aims to rival neighbouring Ghana (the success of which may make Ivory Coast a more attractive proposition to oil and gas investors) by increasing production to 200,000b/d by 2019. "We have about 50 oil blocks of which half have been awarded," said Ivory Coast Prime Minister Daniel Kablan Duncan at the outset of 2014. "We expect to add at least five wells a year.”

Duncan joined a high-profile Ivorian delegation to Houston, US in October 2014 to promote its deepwater licences, Ivory Coast: a true up-and-comer? "Interest and investment has been which could push the country's offshore picking up in East Africa over the last 10 industry into a new league, as long as Ivory Coast's newfound period of peace years.” and prosperity can continue Nigeria is facing increased oil and gas uninterrupted. competition in West Africa, from established and well-developed rivals Future outlook: the offshore oil & gas like Angola and Ghana to offshore industry in 2015 wildcards like Mauritania and Sierra "These are exciting times," said Leone, all of which (especially the Drillinginfo's Africa manager Andrew former two examples) hold significant Hayman in November 2014. "Côte d'Ivoire has been a modest oil producer investment potential. since Espoir started in 1980; later, Ivory Coast, nestled between Liberia and production stepped out Ghana on Africa's western coastline, stands as an example of the increased What can the offshore oil and gas stability and economic productivity that industry expect in terms of CAPEX has characterised many African nations spending, regional hotspots, oil prices and potential challenges in 2015? in recent years. Racked by post-election civil war as recently as 2011, Ivory Coast has sustained peace and steady economic growth rates that have been approaching 10% in the years since the conflict.

off the shelf with Baobab. Now the country is on the cusp of deeper-water commercial success on a bigger scale, maybe even in both the Ivorian Basin and the (western) San Pedro margin.”

In common with the likes of Kenya and others, Ivory Coast is looking to diversify its primarily agricultural economy by further exploiting its offshore oil resources. The country was producing around 60,000b/d at its peak in 2008, although technical issues have reportedly reduced this figure to 30,000b/d in early 2014. Nevertheless, the country's waters are busy with exploration activities and significant discoveries have been made by companies such as Russia's Lukoil and French supermajor Total, which made a "very promising find" at its deepwater (2,300m) Saphir-1XB exploration well in April 2014. The Ivorian government is confident about the nation's hydrocarbon

Mozambique leads East Africa's gas discoveries Hydrocarbon development has generally been slower in East Africa, which doesn't share its western counterpart's beneficial geology and its similarities to hydrocarbon-bearing formations in South America. Nevertheless, interest and investment has been picking up in East Africa over the last 10 years, with major offshore gas discoveries putting the region on the map. Alongside news of considerable gas discoveries in Tanzania and Kenya, Mozambique has emerged as the star

of East African offshore gas. Major discoveries by Italian multinational Eni at its Agulha and Coral 1 exploration projects in the Area 4 licence offshore Mozambique were rated as the industry's biggest oil and gas discovery in 2013 at 700 million barrels of oil equivalent each, and taken alongside the previouslydiscovered Mamba complex, Area 4 as a whole has provided an astonishing level of success. Almost certainly as a result of the richness of discoveries like these, there has been a surge of interest in Mozambique's upcoming Fifth Licensing Round, which will make new exploration acreage available. The country's National Petroleum Institute announced in January 2015 that the deadline for bids has been extended from 20 January to 30 April 2015, reportedly due to the high level of interest and to allow companies more time to consider their bids. The round incorporates 15 new exploration blocks comprising more than 70,000km², 11 of which are deepwater blocks. There is no doubt that oil and gas potential in Africa, and global awareness of that potential, is at an all-time high. But resource potential is only half the story in these developing and sometimes unpredictable markets, especially during a period of historically low oil prices. Countries that can achieve both wellbalanced regulatory regimes and stable security environments are likely to attract the lion's share of investment and capital expenditure. "Although finding oil and gas in Africa can still be low cost, developing it needs deep financial investment and long-term commitment," wrote Chatham House's Africa programme head, Alex Vines, in a September 2014 article for CNN. "African governments that manage better their regulatory and business environment are more likely to attract this type of investment that is needed to unlock their natural resource endowments, which in turn can generate revenue."He concluded. Great future holds for Africa nations with huge offshore potentials.

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Featured Contents 300 Nigerian Youth to be Engaged at Offshore West Africa Conference & Exhibition 2016 R e l a t e d Aw a r e n e s s a n d E m p o w e r m e n t Wo r k s h o p s . Participation in the YEP Programme is free for attendees.

16 November 2015; PennWell is delighted to announce the continued inclusion of the Youth Empowerment Programme as part of Offshore West Africa 2016. Working in conjunction with The Energy Instituteâ&#x20AC;&#x2122;s Young Professionals Network (YPN) and Lonadek, the Youth Empowerment Programme will take place on the 26th-28th January 2016. T h e Yo u t h E m p o w e r m e n t Programme a key CSR (Corporate Social Responsibility) initiative of PennWell, is an integral part of the Offshore West Africa 2016 schedule and is available for a maximum of 300 youths/students by invitation only. All participating undergraduate students from Ghana and Nigeria will undergo the Continuing Professional Development (CPD) program and also receive complimentary membership of the Energy Institute through its Young Professionals Network. PennWell is therefore delighted to invite young professionals and undergraduate students to the Offshore West Africa 20th Anniversary event and the Continuing Professional Development programme for the s e c o n d c o n s e c u t i v e y e a r. Registrations are now open for the YEP Programme and potential attendees are encouraged to visit www.lonadek.com/owa in order to register their interest.

As part of the YEP initiative, attendees will be given the chance to visit the Offshore West Africa Exhibition, plus access to all conference sessions over the three-day event. Following the success of the OWA 2015 one-day YEP programme, the OWA 2016 YEP programme now spans the three days for the OWA event; this is to enable attendees gain exposure from the programme, the conference By Lee Catania proceedings and networking sessions PennWell recognises that todayâ&#x20AC;&#x2122;s as much as possible. undergraduates and youths are the leaders of the future whom when Taking place on 26-28 January 2016 given the right exposure, would excel at the Eko Hotel & Suites, Lagos, in their chosen professions; the Youth Nigeria, Offshore West Africa will E m p o w e r m e n t P r o g r a m m e build on therefore, is a holistic means of the success of the 2015 event, which education, enlightenment and also took place in Lagos, which engagement. Careers in the energy a t t r a c t e d a r e c o r d b r e a k i n g industry are dynamic due to the international audience of almost variable energy source types, rapid 2,400 leading oil and gas industry t e c h n o l o g i c a l a d v a n c e m e n t , professionals from more than 30 fast-changing consumer needs and countries worldwide. continuously changing work Offshore West Africa will continue to environments. feature a technical and strategic Organisations are paying more conference program developed by an attention to skills and competencies Advisory Board comprised of that are required to optimise and leading industry experts, as well as an utilise natural resources for energy exhibition showcasing products, and power. Emphasis is being laid technologies and services from more on learning and development global and regional oil & gas with continuous professional companies, held concurrently, development being viewed as a major bringing together exhibitors and success driver in human capital attendees from around the world for development. Creating awareness of three days of education, networking the personal, professional and career and new business development. development paths in readiness for fruitful and rewarding careers is the Offshore West Africa is a truly West primary purpose of the PennWell African event and addresses key technology and development issues Youth Empowerment Programme. The Programme includes welcome for the West African offshore oil and and introductory speeches plus gas market, through a comprehensive various presentations from Lonadek, educational program and three-day the Energy Institute, International Oil exhibition and conference, with the Companies (IOCs) as well as the 2016 event focusing on Positioning PennWell Corporation; it will also for a Sustainable Future as the core feature Career Counselling, Industry theme.

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Featured Contents

RGU PhD Student Looks To Establish Offshore Renewables In Developing Countries “If it is viable for oil and gas companies in Nigeria to use renewable energy to offset their CO2 output, they will do it. We are starting to see people in Aberdeen who are looking into this too.” Victor has developed a model to assist in the renewable energy transition process which is composed of four key elements - Decentralised Energy Systems; Renewable Energy; Local Context; and Stakeholder Engagement. Victor said: “The fundamental principles of the model, which is By Ross Anderson currently being applied to a case study in Bayelsa State, are A PhD student from Robert Gordon which would be used for a potential community participation and University (RGU) is working with three years offshore renewable ownership. Bayelsa State Government in Nigeria energy development in Bayelsa state. to investigate the best way to establish a viable offshore renewable Victor said: “What I’m doing is “The potential benefits of the model energy industry in the country. l o o k i n g a t t h e p o t e n t i a l o f are exponential and virtually endless. implementing or developing offshore The fact that the model focuses on Victor Osu, who is originally from renewable energy in Nigeria. It is not creating an enabling environment for Delta State, has focused his research just as simple as telling a community sustainable energy access and on how best to foster the transition to or a country that there is this development due to its emphasis on offshore renewable energy in technology and they should use it – adaptability and flexibility means developing economies, using there needs to be a focus on the wider that it is easily replicated in a variety Bayelsa State as a case study working socio-economic factors that will of different locations.” and alongside RGU colleagues Dr actually make it feasible for it to be Joanneke Kruijsen and Dr Ebun sustainable and the key stakeholders By empowering communities to need to be brought together in order d r i v e f o r w a r d t h e i r o w n Akinsete. development, Victor sees the impact to discuss that transition process. of sustainable energy access as being He is set to embark on a visit to transformational. Nigeria, during which he will spend “That is important to ensure that they time in both Lagos and Abuya, don’t repeat mistakes that have been meeting with a range of stakeholders made in trying to implement “It could impact on all the elements including representatives of the renewable technology elsewhere. Oil of sustainable development,” he said. Nigeria Institute of Oceanography and gas companies are some of the “From lighting for homes and and Marine Research, United most important stakeholders in this schools, cleaner indoor air, better Kingdom Trade and Investment process as they have the resources to equipped health facilities, electricity (UKTI), the Energy Commission of be able to facilitate the transition for agricultural pumps and sanitation, Nigeria and the Nigeria National process and while renewables and oil to the creation of more small- and and gas may seem to be at odds, they medium-sized enterprises and more Petroleum Corporation. income-generating opportunities, are actually quite complementary. improving education and attaining Victor will also meet with the United Nation Industrial Development “If oil and gas companies can use environmental sustainability. Organisation to further firm up a renewable energy to cut their CO2 potential funding grant of $100,000 emissions that then benefits their “I am very much looking forward to for project preparatory activities in reputation – sustainability is discussing how we can take my work something that is really on the agenda forward in a practical way during my Bayelsa state. in Nigeria and CO2 reduction is visit to Nigeria this month.” It is anticipated this funding will give going to be a big issue in the future. rise to more funding once the preparatory activity is over,

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Corporate Profile

Simon Harding is the Founder and Chairman of the Chronos Group, a company that provides recruitment, RPO , sof twar e and tec hno log y services worldwide with operations in over 70 countries. In this interview, the Chairman of Chronos Group speaks of their interest to invest in Africa. By Micheal Obineme

â&#x20AC;&#x153;We are interested to invest in Energy, Mining, What are the major achievements for Chronos Group of Companies? IT/Telecom and Agribusiness recruiting We have managed to grow almost every year since 1999 and in 2006 had a services, RPO and BPO in Africaâ&#x20AC;? successful divestiture of 4 of our businesses to a NYSE listed company. - Simon Harding What is Chronos Group all about? The Chronos Group is a US based organisation that has recruiting, RPO, software, technology and entertainment interests worldwide. What is your position in the company? I am the Founder and Chairman of the Chronos Group. How long have you been doing this business? I started the business by buying out distressed companies and turning them around into profit. The first Chronos businesses were set up in 1999. We have also opened new businesses in the market and our clients demanded. What kind of recruitment services do you provide to companies? We provide the full range of recruitment services including retained and contingent search and selection, RPO and BPO services. We work with mainly Fortune 1000 companies but also increasingly

medium sized companies and start ups. How many candidates do you have on your database and what is your client base presently like? We have well over 200,000 candidates in our database. Our client base consists mainly of large and medium sized companies in the oil, gas, renewable, IT, Telecom,retail and FMCG sectors worldwide. Do you have international recruiting and outsourcing locations? Yes, we are able to work in almost any location globally. We have actual bricks and mortar offices in USA, Canada, Mexico, Costa Rica, Argentina, UK, Germany, Spain, Sweden, Poland, Hungary, Romania, Turkey, Russia, Latvia, Lithuania, Estonia, Nigeria, Israel. Apart from your website, do you have other means to reach out to candidates? Mainly via LinkedIn and Facebook

We have also been able to take over part of an ASX listed recruiter in 2009 and in 2010 we were able to expand both organically and by acquisition. We are able to provide a timely and cost effective set of solutions for our clients and delivery is our major achievement. We have many clients that have worked with us every month for the last 15 years and to me that is a major achievement. Will you be interested to invest in Africa? Yes, we are interested to investing in Africa If you are to invest, which industries will you be investing? We would be investing in Energy, Mining, IT/Telecom and Agribusiness recruiting services, RPO and BPO. Which countries are your target market for investment in Africa? Nigeria, Kenya, Uganda but open to most countries with the right people and opportunity.

www.chronosconsulting.com

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Industry News

Nigeria Indigenous Petroleum Company Wins 2015 Global Gas Flare Reduction Excellence Award

By Micheal Obineme

The World Bank Group, the Global Gas Flaring Reduction Partnership (GGFR), and the government of Khanty-Mansiysk Autonomous Okrug – Yugra (KMAO), Russian Federation have recently selected Niger Delta Petroleum Resources Limited (NDPR) as the winner of an international award – “2015 Global Gas Flare Reduction Excellence Award. NDPR Ogbele Gas Development Project was recognized for its significant contributions towards global gas flaring reduction. NDPR is the 1st indigenous company with fully integrated oil & gas operations across the entire value chain of the Nigerian oil & gas sector to recieve the award. In a message acknowledging the receipt of the award notification by the Managing Director of NDPR, Dr. ‘Layi Fatona, he included for recognition, Niger Delta Exploration & Production Plc. (The parent company),

The Department of Petroleum Resources (D.P.R.), The Nigerian Liquefied & Natural Gas Ltd. (NLNG) and Skye Bank Plc. as other institutions who were instrumental to the successful implementation of the project. The department of petroleum resources also expressed with great pride the recognition of an indigenous company as the winner of this international award, and stated that this achievement further testifies to Nigeria’s progress in its efforts to strengthen indigenous capacity in adhering to international best practices. It further commended the Management and staff of NDPR in assuring gas flare reduction in the Ogeble field project in line with the Governments flare down policy.

respective assets in line with global standards, as this will ensure a positive economic growth in Nigeria and sustainable development in the sector. We commend the relentless efforts of the Management and staff of Niger Delta Petroleum Resources Limited in ensuring gas flare reduction in their Ogbele Gas Field Project, in line with Government’s flare down policy, which has led to this global recognition. We rejoice with them and acknowledge their excellent achievements as being the first indigenous company with a fully integrated oil & gas operation across the entire value chain of the Nigerian oil & gas sector.

DPR also assured their continued support and guidance to all operators in an effort to encourage optimal productivity of their

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Industry News

Nigeria on the Verge of a Significant Oil Discovery in the Lake Chad Area in North East

By Micheal Obineme The Group Managing Director of the Nigerian National Petroleum C o r p o r a t i o n , N N P C D r. I b e Kachikwu has indicated that the country may well be on the verge of a significant oil find in the lake Chad area in North East Nigeria based on analysis of recent seismic 3D data generated from the Chad Basin.

Dr. Kachikwu noted that in driving and developing Nigeria’s oil and gas sector, certain key areas of urgent intervention have been identified thus : running production acreages with transparent and profitable partnerships to bridge capacity and funding gaps; encourage investment inflow into to Nigeria’s oil and gas industry; engagement with local communities and driving regulation to develop the sector income- via encouragement of the fast track PIB to clarify direction and encourage long-term investment in the industry.

In a presentation to the Petroleum Club, Lagos, over the weekend, titled: Ongoing Reforms in the Oil Industry: Impact of NNPC Reforms on the Nigerian Economy, Dr. Kachikwu stated that the Corporation is injecting a lot of energy into the P r o v i d i n g s p e c i f i c s o n t h e effort to ensure success in this regard. intervention targets, Dr. Kachikwu stated that the NNPC is projecting the inflow of USD 20 billion in 2016 to "There are signs from the latest 3D enable the Corporation fund major seismic studies that oil may well be projects and improve its bottom line very close to being found now in going forward. Lake Chad after very many years of He described 2016 as a crucial year trials. I think that this is very key. It is key both for the geographical for the NNPC as it is expected to balancing of oil production and it is t r a n s i t f r o m h i s t o r i c l o s s also very key for the purpose of environment to profit making Refinery placement in the North in domain. terms of access to crude. I am optimistic that by the end of the year In the area of engagement with host we should be able to announce communities, Kachikwu stated that something major on this, ’’ the GMD in the years ahead, the NNPC as the said.

senior partner in various Joint Venture arrangements must take leadership in fostering a healthy and symbiotic host community engagement outlook which must focus in what he termed ``What the communities want us to do for them and not what we want to do’’. Commenting on the Petroleum Industry Bill, PIB, the NNPC GMD noted that to achieve quick passage of the bill, it is crucial to isolate the fiscal regime from the current draft and move quickly to work on other pressing aspects of the proposed oil reform legislation. He re-iterated that the Corporation under his watch is rigorously executing “20 Fixes” project which identified 20 critical issues that need to be addressed in order to re-position the 37 years old Corporation on the track of efficiency and profitability.

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Anadarko Achieves New Mozambique LNG Milestones The natural gas will be provided at pricing that is fair to all parties and supports local natural gas development, and the concessionaires are prepared to sell up to 300 MMcf/d of additional volumes into the domestic market in future years as projects are matured and commercial terms agreed.

By Micheal Obineme Anadarko Petroleum Corporation has officially announced that, along with the concessionaires of Offshore Area 1 (operated by Anadarko Mozambique Area 1 Ltd. (AMA1)) and Offshore Area 4 (operated by Eni East Africa (EEA)), it has signed a Unitization and Unit Operating Agreement (UUOA) for the development of the massive natural gas resources that straddle the two blocks. "We appreciate the cooperation of the Government of Mozambique, Eni and our co-venturers in Offshore Area 1 for their collaborative efforts in achieving this UUOA, which is fair, equitable and consistent with best industry practices," said Mitch Ingram, Anadarko Executive Vice President, Global LNG. â&#x20AC;&#x153;We have already made tremendous progress advancing the natural gas resources in the Golfinho and Atum fields that are fully contained within our block, and with this UUOA, we can also expect to move the Prosperidade and Mamba straddling reservoirs forward more efficiently, while capitalizing on greater economies of scale."

Under the terms of the UUOA and previously announced Decree Law, the Prosperidade and Mamba straddling natural gas reservoirs, which comprise the Unit, will be developed in a separate but coordinated manner by the two operators until 24 trillion cubic feet (Tcf) of natural gas reserves (12 Tcf from each Area) have been developed. All subsequent development of the Unit will be pursued jointly by the Area 1 and Area 4 concessionaires through a joint-venture operator (50:50 Anadarko and Eni). The UUOA is subject to final approval by the Government of Mozambique.

"Signing this MOU is an important step," added Ingram. "We look forward to continuing to work with the Government of Mozambique to finalize the legal and contractual framework that will enable us to deliver natural gas for domestic projects and LNG cargoes for export to premium markets around the world, both of which will benefit Mozambique through a reliable source of cleaner energy and significant revenue generation.â&#x20AC;?

OFFSHORE AREA 1 Anadarko is the operator of the Offshore Area 1 Block with a 26.5percent working interest. Coventurers include the National Oil Company Empresa Nacional de Hidrocarbonetos, E.P. (ENH) (15 percent), Mitsui E&P Mozambique Area 1 Limited (20 percent), Beas Rovuma Energy Mozambique Limited (10 percent), BPRL Ventures Mozambique B.V. (10 percent), ONGC Videsh Limited (10 percent), and PTTEP Mozambique Area 1 DOMESTIC NATURAL GAS Limited (8.5 percent). In addition, Anadarko reached a Memorandum of Understanding (MOU) with the Government of OFFSHORE AREA 4 Mozambique to provide natural gas Eni operates Area 4 with a 50-percent f r o m i t s M o z a m b i q u e L N G indirect interest owned through Eni East Africa (EEA), which holds 70 development for domestic use. percent of Area 4. The other partners are Galp Rovuma (10 percent), Under the terms of the MOU, KOGAS Mozambique (10 percent) Offshore Area 1 will provide initial and ENH (10 percent). CNODC volumes of approximately 50 million o w n s a 2 0-percent indirect cubic feet of natural gas per day participation in Area 4 through Eni (MMcf/d) per train (100 MMcf/d) for East Africa. domestic use in Mozambique.

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Gabon Launches its 11th Deepwater Licensing Round on Five Prospective Blocks including offshore hydrocarbon seeps and a full geological prospectivity report will be available. Jean-Georges Malcor, CEO, CGG, said: “Ever since we acquired our first geophysical survey there in 1932, CGG has actively supported Gabon’s development of its natural resources. We are delighted to continue our fruitful cooperation

The Gabonese Republic’s Ministry of Petroleum and Hydrocarbons has appointed CGG as technical consultant to help with the promotion of its 11th Licensing Round focusing on five highly prospective deepwater blocks. The round was formally opened on 27th October 2015 by His Excellency, Minister for Petroleum and Hydrocarbons, Mr. Etienne Dieudonné Ngoubou, at this week’s 22nd Africa Oil Week conference in Cape Town South Africa. The round will then be promoted by a series of road shows starting in Libreville on 24th November, followed by Paris on 26th November, Singapore on 30th November and Houston on 3rd December 2015. A delegation from the Direction Generale des Hydrocarbures (DGH) as well as a technical team from CGG will be attending to answer any questions. The round will be open for five months starting on 27 October 2015 and bids can be submitted from 15

with the Gabonese Republic by offering our full portfolio of Geoscience expertise to help promote the 11th Licensing Round. Given the high quality of the intermediate results we have seen so far from our recent BroadSeis survey, we expect the final results to be a significant resource for clients to deBy Micheal Obineme risk this promising exploration arena. We are pleased to announce that February 2016 onwards and by no several companies have already prelater than 31st March 2016. committed to the dataset.” Prequalification for the bid round will require the purchase of a Facts about CGG minimum amount of seismic data. CGG (www.cgg.com) is a fully integrated Geoscience company The deep water of Gabon has providing leading geological, significant unexplored potential g e o p h y s i c a l a n d r e s e r v o i r within a structurally complex setting, capabilities to its broad base of particularly in the pre-salt section. In customers primarily from the global r e s p o n s e t o t h e e x p l o r a t i o n oil and gas industry. Through its three challenges, CGG has been appointed complementary business divisions of to advise the Gabonese Republic on E q u i p m e n t , A c q u i s i t i o n a n d the promotion of the 11th Licensing Geology, Geophysics & Reservoir Round and has worked directly with (GGR), CGG brings value across all the Ministry to acquire over 25,000 a s p e c t s o f n a t u r a l r e s o u r c e km2 of new 3D BroadSeisTM multi- exploration and exploitation. client seismic data as part of an integrated geoscience program to CGG employs over 7,500 people support it. around the world, all with a Passion for Geoscience and working together The new survey will enable better to deliver the best solutions to its imaging of this exciting and customers. underexplored area, and covers areas downdip and adjacent to recent pre- CGG is listed on the Euronext Paris Aptian salt discoveries, such as SA (ISIN: 0000120164) and the New Leopard, Diaman, Ruche and Tortue. York Stock Exchange (in the form of It will benefit from integrated gravity American Depositary Shares. NYSE: and magnetic interpretation to CGG). enhance the pre-salt imaging and additional, complementary datasets

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Eni Makes a New Discovery of Gas Offshore Congo

By Micheal Obineme

Eni made a new discovery of gas and condensates offshore Congo, in the exploration prospect of Nkala Marine, located in Marine XII block, about 20 kilometers from the coast and 3 kilometers from the Nene Marine field, already in production.

Meantime, together with the joint venture partners, the company will start studies for its commercial development which is framed in a context of optimized exploitation of the oil and gas discoveries in the Marine XII permit.

The finding, realized through the Nkala Marine 1 well, is expected to have a potential of 250-350 million barrels of oil equivalent in place. During the production test, the well provided over 300,000 standard cubic meters per day (sm3d) of gas and associated condensates. The well, drilled in a water depth of 38 meters, encountered a major gas and condensates buildup in the pre-salt clastic geological sequence of lower Cretaceous age, crossing a hydrocarbon column of 240 meters.

The exploration of the pre-salt sequences continues to deliver new discoveries all along the West Africa’s margin and confirms Eni’s exploration technologies effectiveness, given the technical complexity of these plays. Eni estimates the resources in place of oil and gas discoveries made in the presalt Marine XII block to be approximately 5.8 billion barrels of oil equivalent (bboe). The production of the block, begun last December, is increasing and it currently stands at around 15,000 boe per day.

Eni will be starting the evaluation of Nkala Marine through new delineation wells.

Eni, through its subsidiary Eni Congo, is the operator of Marine XII block with a 65% stake. The other partners are New Age, with 25% stake, and the Congolese state company Societé Nationale des Pétroles du Congo (SNPC), with 10% stake. Eni has been present in Congo since 1968 and its current production in the country is about 110,000 barrels of oil equivalent per day. Eni has also been present in Sub Saharan Africa since the '60s and has been operating in exploration and production projects in Angola, Congo, Ghana, Gabon, Mozambique, Nigeria, the Republic of Congo, Kenya, Liberia, Ivory Coast and South Africa. The Sub-Saharan area, where Eni currently produces about 450,000 barrels of oil equivalent per day, is characterized by an organic growth as a result of numerous exploration successes.

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Chevron Begins First Oil and Gas Production From Lianzi Field Offshore Congo and Angola In the News Chevron recently achieved a technological feat in the depths of one of the world's largest underwater canyons. With vital right-of-way permits approved by the governments of the Democratic Republic of the Congo and Angola, Chevron has completed the drilling of a well intersection conduit beneath the Congo River submarine canyon, part of the Congo River Canyon Crossing pipeline project.

Chevron Corporation has officially announced that its subsidiary, Chevron Overseas (Congo) Limited, has commenced oil and gas production from the Lianzi Field, located in a unitized offshore zone between the Republic of Congo and the Republic of Angola. Located 65 miles (105 km) offshore in approximately 3,000 feet (900 meters) of water, Lianzi is Chevron's first operated asset in the Republic of Congo and the first cross-border oil development project offshore Central Africa. The project is expected to produce an average of 40,000 barrels of crude oil per day.

The Congo River crossing is C h e v r o n ' s l a rg e s t - e v e r w e l l intersection and it is the most technically challenging aspect of the pipeline project. The well intersection provided the most secure method of crossing the canyon and By Micheal Obineme connecting to the pipeline at the platforms located on each side of the cooperative approach to share canyon. offshore resources and may serve as a model for the development of similar Several innovative technologies and cross-border fields between two processes were employed during the countries," said Ali Moshiri, drilling of the well intersection. For president of Chevron Africa and example, an active magnet ranging Latin America Exploration and technology was used to direct the Production Company. drilling assembly so that the

The field, discovered in 2004, includes a subsea production system and a 27 mile (43 km) electrically heated flowline system, the first of its kind at this water depth. The system transports the oil from the field to the Benguela Belizeâ&#x20AC;&#x201C;Lobito Tomboco platform in Angola's Block 14 and utilizes a Direct Electrical Heating "This milestone demonstrates that we (DEH) system to ensure fluid flow continue to make steady progress on under a wide range of conditions. delivering major development projects," said Jay Johnson, Chevron Overseas (Congo) Limited executive vice president Upstream, is operator of the Lianzi Field and has Chevron Corporation. "We have the a 15.75 percent interest, along with industry's strongest queue of major its affiliate Cabinda Gulf Oil capital projects that are expected Company Limited (15.5 percent), deliver significant value and Total E&P Congo (26.75 percent), Angola Block 14 BV (10 percent), production growth." Eni (10 percent), Sonangol P&P (10 "As the first offshore energy percent), SNPC (the Republic of development spanning national Congo National Oil Company â&#x20AC;&#x201C; 7.5 boundaries in the Central Africa percent), and GALP (4.5 percent). region, Lianzi represents a unique

wellbores merged precisely on a target roughly the size of a basketball. This involved a magnetic sensor in the drill string on one side and a powerful magnet, located behind the drill bit, on the other side. An additional challenge for the project team was to install the two offshore platforms in an area close to the mouth of the Congo River where there are strong currents. The pipeline will transport natural gas from Angola's offshore Blocks 0 and 14 to the Angola Liquefied Natural Gas (LNG) Plant, the country's first LNG project. When completed, the pipeline will be approximately 87 miles (140 km) in length and initially transport up to 250 million cubic feet of natural gas per day.

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Statoil to Explore Offshore Mozambique The Eni led partnership will subsequently enter into negotiations with the authorities. The A5-A block is located in the Northern Zambesi basin in the Angoche area about 1,500km north of the capital Maputo. The block covers an area of 5,145 square kilometres in water depths ranging from 200 to 1800 meters. Eni is the operator of the Joint Venture with 34% participating interest. Partners are Statoil and Sasol with 25,5% each and ENH with 15%.

“The Angoche area is a very promising frontier basin with significant oil potential and builds on Statoil’s exploration strategy of access at scale,” says Nick Maden, senior vice president for Statoil’s exploration activities in the Western Hemisphere. “The position strengthens and develops our global exploration portfolio. We are enthusiastic about this opportunity and look forward to working with Eni, Sasol and ENH to explore for hydrocarbons offshore Mozambique.” says Maden.

By Micheal Obineme The minimum work program includes seismic and three Statoil has together with partners submitted a commitment wells. winning bid on the A5-A block offshore Mozambique in the fifth competitive bidding round.

Statoil to Explore Offshore South Africa It is located offshore eastern South “This opportunity is in line with Statoil’s exploration strategy of access at scale. It represents access into a frontier basin where we believe we see indications of an active petroleum system and which has impact potential,” says Nick Maden, senior vice president for Statoil’s exploration activities in the Western Hemisphere.

By Micheal Obineme Statoil has completed a farm-in transaction with ExxonMobil Exploration and Production South Africa Limited (ExxonMobil), acquiring a 35 percent interest in the ER 12/3/154 Tugela South Exploration Right. The remaining interests are held by the operator ExxonMobil (40%) and co-venturer Impact Africa Limited (Impact Africa) (25%).

“The position strengthens and increases the optionality in Statoil’s long-term international portfolio. We look forward to working with ExxonMobil, Impact Africa and the South African government to explore for oil and gas in this new area for Statoil,” says Maden.

Africa in water depths up to 1,800 metres. The farm-in represents a country entry for Statoil into South Africa. Statoil enters in an early exploration phase with a step-wise exploration programme. Work commitments between 2015 and 2017 include the acquisition of 1,000 square kilometres of 3D seismic data and geology and geophysics (G&G) studies. There are no commitment wells during this exploration period. The information obtained from the initial studies and seismic survey will form the decision basis for the co-venturers’ next steps in the Exploration Right.

The Tugela South Exploration Right covers an area of approximately 9,054 square kilometres.

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Rosneft, ExxonMobil Secures Three Offshore Mozambique Blocks

By Micheal Obineme RN-Exploration (Rosneft subsidiary) and ExxonMobil Exploration and Production Mozambique Offshore Limited were declared winners for 3 blocks in the fifth license round organized by the Republic of Mozambique Institute of National Petroleum (Instituto Nacional de Petróleo).

The INP evaluated 23 proposals and decided to award Rosneft and ExxonMobil the following 3 contract areas: A5-B in the Angoche Basin and Z5-C and Z5-D in the Zambezi Delta.

The prospectivity assessment for the exploration on these contract areas was confirmed within the The global partnership of Rosneft cooperation of both Companies’ and ExxonMobil is of a strategic geological analysis. nature, the companies have a proven track record of highly successful Upon receiving the award the cooperation internationally and at the c o m p a n i e s w i l l c o m m e n c e negotiations with the Government of Sakhalin-1 project in Russia. the Republic of Mozambique and This result marks a serious INP on the detailed terms of achievement for Rosneft and participation. Once completed ExxonMobil – the consortium’s bid ExxonMobil will become the was awarded the blocks despite operator. facing strong competition from other global supermajors.

The participation in exploration and development projects in Mozambique is a new focus area of Rosneft’s international strategy: the Company promotes its positioning in regions of significant hydrocarbon potential. These projects allow Rosneft to obtain access to highquality assets, while minimizing the risks in the implementation of frontier exploration projects by partnering with global industry leaders.

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DONG Energy to Build the World’s Biggest Offshore Wind Farm

By Micheal Obineme DONG Energy to construct the 660MW Walney Extension Offshore Wind Farm, located in the Irish Sea, approximately 19 km off the west coast of Britain. The final investment decision has been made after securing all necessary consents from authorities, completing site assessments and having signed the majority of the contracts for supply and installation to build the project. Walney Extension is expected to be fully commissioned in 2018, at which time it will be the biggest offshore wind farm in the world, surpassing the 630MW London Array Offshore Wind Farm which was commissioned in 2014 by DONG Energy and its partners. The wind farm will be constructed and operated under the UK’s EMR FID-enabling regime with a fixed price for the first 15 years of production.

Samuel Leupold, Executive Vice President at DONG Energy, said: “Walney Extension will deliver clean electricity to more than 460,000 UK homes and I’m very pleased that we can now start construction of what will be the worlDONG Energy to Build the World’s Biggest Offshore Wind Farmd’s biggest offshore wind farm when completed. Building this offshore wind farm will bring us significantly closer to realising our strategy of having 6.5GW of installed capacity online by 2020.” DONG Energy has decided to apply two different turbines: 40 8MW turbines from MHI Vestas Offshore Wind and 47 Siemens 7MW offshore turbines.

eventually can compete on costs with other energy technologies. Building Walney Extension will bring us one step closer to that target, and I’m satisfied to see that we keep bringing costs down, while continuing to expand the UK supply chain. I’m also excited about the fact that turbine blades, part of the foundations and cable installation will come from UK manufacturing facilities and vessels and create local jobs.” C u r r e n t l y D O N G E n e rg y i s constructing 2,080MW in the UK and Germany. When these projects, including Walney Extension, are completed, DONG Energy has built a total of 5,089MW, corresponding to the annual consumption of electricity of more than 12.5 million Europeans.

Samuel Leupold continued: “British offshore wind has seen phenomenal growth in recent years. A prerequisite for long term growth in the industry is, that offshore wind

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Industry News The World Biggest Ship Under Construction in South Korea It’s called Prelude. More than 530 yards long and 80 yards wide, It was constructed with 260,000 metric tons of steel, and it’s expected to displace 600,000 metric tons of water, or as much as six aircraft carriers.

By Micheal Obineme

(F.L.N.G. stands for floating liquefied natural gas.) Then again, even the executives slip up once in a while and call it a ship, because the Prelude does in fact move, just a little, when it has to. In the finished sketches, it looks like a gigantic Shell Oil, which has the biggest stake unfinished cruise ship, a 30-story in the project, describes Prelude as Carnival Cruise Lines boat, built more environmentally friendly than with an Erector set. an onshore site. There are no estuaries under threat, no shorelines to run pipe Prelude is designed to take advantage across and reduced risks to population of inaccessible or “stranded” naturalcenters, given the explosiveness of gas deposits, stranded because until natural gas. And it is designed to ride recently they cost too much to make out extreme weather, thanks to three their capture worthwhile. In North giant 6,700-horsepower thrusters that Dakota, for example, most natural gas can turn it into the wind and waves. released from oil drilling is burned off because of infrastructural limitations Most big vessels dry-dock every five and the expense of recovering it. years for a new coat, but Prelude’s paint is supposed to last 25 years. It “A project like this wasn’t an will produce more natural gas than economical prospect for decades, but Hong Kong needs in a year. now things are changing,” says Francis O’Sullivan, the director of Prelude is not a ship or a boat: research at M.I.T.'s Energy Initiative. The Shell executives refer to their l o n g e r- t h a n - t h e - E m p i r e - S t a t e - Owing to shifts in oil prices and a Building-is-tall contraption as a change in the climate of energy facility. “Prelude F.L.N.G.,” they arbitrage, a vast amount of usable might say, is “the largest offshore natural gas an estimated three trillion floating facility ever built.” ight now it is under construction in a South Korean shipyard on Geoje, the island where Samsung Heavy Industries makes large ships and drilling platforms.

cubic feet of it is now profitable and waiting to be tapped within an area called Browse Basin, under the Indian Ocean, roughly 125 miles northwest of Australia. That’s where Prelude will soon be towed, then fixed to what “The Biogeography of the Australian North West Shelf” describes as “the relatively featureless sedimentary sea floor plains.” For anchors, Prelude uses four groups of mooring chains, each link of which is more than three feet long and was cast in the Basque region of Spain. On the days Prelude was photographed, the turret, which will be as big as the Statue of Liberty, had not been installed yet. It will go underneath the circular aperture, visible at the far right of the last image, and be the point through which the natural gas will be piped up into the facility and around which Prelude will rotate on the water. In the shipyard, this spot is known as the moon pool.