LNG

The state-owned oil and natural gas company in Namibia in southwest Africa has signed an agreement with Chevron Corp. granting the US major an 80 percent operating and working interest in a key offshore block.

The terms of the transaction are that Namibia National Petroleum Corp. (Namcor) and Custos Energy, a Namibian independent oil and gas exploration company focused on attracting investment and expertise to the Namibian offshore industry, will each retain a 10 percent carried interest in Petroleum Exploration Licence 82 located in the Walvis Basin to Chevron Namibia Exploration Limited's majority stake.

Namibia has four oil and gas exploration and production basins north to south, comprising the Namib Basin in the north, then the Walvis Basin in Central Nambia, followed by the Luderitz Basin just to the south of that and then the more prolific so far Orange Basin in the far south near South African waters.

Orange discovery

Galp Energia of Portugal said on April 22, 2024, that its Mopane discovery in the southern Orange Basin could contain 10 billion barrels of oil equivalent or more.

The Namcor-Custos-Chevron deal concerns the Walvis Basin in the middle of the oil and gas resource area and offshore Walvis Bay in Central Namibia.

Namcor said in a statement that this strategic collaboration underscored its dedication to maximizing the exploration potential and development of Namibia's offshore resources, particularly in under-explored basins holding significant promise.

The transaction is pending regulatory approvals from the Namibia Ministry of Mines and Energy.

“Together, we will leverage significant expertise and resources to propel our national interests and economic growth, turning possibilities into prosperity for Namibia,” said Namcor’s Interim Managing Director Ebson Uanguta in a statement.

Namcor added that it anticipated a substantial surge in oil and associated natural gas production estimates following the analysis of existing data.

Ample seismic

Analysts noted that around 70 percent of the total block area is covered by extensive existing seismic data comprising over 3,500 kilometres of 2D and 9,500 kilometres of 3D data.

Previous drilling activity on PEL 82 discovered the Murombe-1 and Wingat-1 wells.

Results confirmed regional extensions and the presence of the Barremian-Aptianoil-prone source rock, known as Kudu Shale.

“We are pleased to announce the continuing expansion of our in-country partnership with Chevron through their entry into PEL 82,” said Knowledge Katti, Chairman and Chief Executive of Custos.

“This is one of the most advanced and interesting opportunities offshore Namibia outside of the Orange Basin.” Katti explained.

“We are pleased to see our efforts over the last decade on PEL 82 result in this important step forward adding further to Namibia’s world-class offshore opportunity,” he stated.

Petronas, the Malaysian state-owned energy company with oil and gas projects and onshore and offshore LNG production plants, reported quarterly net profits down by a third while expecting its cargo portfolio to increase after LNG Canada comes on stream and overall cargo sales and prices to improve.

Angola, a liquefied natural gas exporter in the Atlantic Basin for more than 10 years, said it was leaving the Organization of Petroleum Exporting Countries because membership of the crude oil cartel was not serving its interests.

TechnipFMC, the US oil and gas services company based in Houston, has been awarded a significant contract in Angola by Azule Energy, the joint venture set up by European majors BP and Eni in the Southwest African nation to oversee 16 licences as well as participating in Angola LNG operations.

Liquefied natural gas-producing nation Angola, which has pioneered associated gas use from oil fields to turn into LNG for export, has decided to open up the potential of the southern offshore Kwanza Basin likened in some ways by petroleum engineers to the prolific Santos Basin offshore Brazil.

The TotalEnergies-led Cameia-Golfinho project will be the first deepwater development in the pre-salt Kwanza Basin and is estimated to hold at least 420 million barrels of oil equivalent.

Analysts note that Angola is known to have significant untapped resources as demonstrated by the contrast between its proven and estimated reserves of 9 billion versus 57 billion barrels of oil and 11 trillion versus 27 trillion cubic feet of natural gas.

The pre-salt areas in southern Africa represent frontier acreage with lower exploration risk and higher potential for production.

As part of its efforts to focus on subsea tie-backs, infill drilling and other near-hub projects, French major TotalEnergies is ready for the development of the pre-salt production hub for Blocks 21/09 and 20/11 in the Kwanza Basin.

The company’s Cameia-Golfinho project in Kwanza will be the first deepwater project in the pre-salt area.

FID scheduled

TotalEnergies and Angolan national oil and gas company, Sonangol Exploration & Production, have just signed a heads of agreement with Angola’s energy regulator, the National Oil, Gas and Biofuels Agency (ANPG), related to the development of the Cameia and Golfinho fields in the Kwanza Basin and a final investment decision is expected in 2023.

TotalEnergies said that this future offshore development project in Blocks 20 and 21, located around 150 kilometres (93 miles) southwest of Luanda, will comprise a new floating production, storage and offloading (FPSO) unit, the seventh for TotalEnergies in Angola, connected to a subsea network.

“The design of this new project includes electrical generation from a combined-cycle turbine and a zero-flaring concept, allowing a lower carbon intensity,” said TotalEnergies.

The Chairman of the Board of regulator ANPG, Paulo Jerónimo, said that the accord with the TotalEnergies-Sonangol joint venture should allow the first production in the maritime zone of the Kwanza and may “contribute decisively” to the national production objectives.

“Its potential may generate interest from other operators, including the beginning of other developments on the Kwanza Basin,” Jerónimo explained.

Gaspar Martins, Chairman of the Board at Sonangol, said the company’s main objective is to make the Kwanza project successful.

“For some time now, we have wanted Blocks 20 and 21 to start producing, and we target a final investment decision this year so that the offshore Kwanza Basin soon begins production,” stated Martins.

TotalEnergies is the Blocks 20-21 operator with an 80 percent shareholding while Sonangol owns the remaining 20 percent.

Italian energy major Eni, a global participant in LNG projects, said in its World Energy Review 2022 that natural gas prices were up in all markets, soaring 400 percent in Europe 300 percent in Asia and 90 percent in the US, including a marked uptick in the second half.

Angolan liquefied natural gas project partners, who are also part of the New Gas Consortium (NGC) in the country, have taken a final investment decision for the development of the Quiluma and Maboqueiro fields in the first non-associated natural gas project undertaken in the southwest African nation.

UK major BP has reported its highest profit in eight years in the fourth-quarter earnings statement amid volatile forward natural gas prices during 2021 and said it was “performing while transforming” and investing in only “focused” hydrocarbon ventures like a field recently brought on stream in Angola.

TotalEnergies has signed an agreement to sell, jointly with Inpex Corp. of Japan, interests in the offshore Angola Block 14 to the Angolan Company Somoil, though the French major stressed it would remain a key player LNG and oil and natural gas in the southwest African nation.

Block 14 is located about 100 kilometres offshore from Cabinda in Angola and covers 4,094 square kilometres with a water depth ranging from 200 metres to 1,500 metres.

TotalEnergies said the sale to Somoil was still subject to the approval of the Angolan authorities. The value of the transaction was not disclosed.

The offshore areas in blocks 14 have been producing since 1999. Net production from the Angola Block 14 BV area was 9,000 barrels of oil equivalent per day in 2021.

“By divesting this interest in mature fields, TotalEnergies is implementing its strategy to high-grade its oil portfolio, focusing on assets with low costs and low emissions" said Henri-Max Ndong-Nzue, Senior Vice President Africa for TotalEnergies Exploration and Production.

“TotalEnergies remains the number one energy player in Angola, through its leading operating position in deep-offshore, its interest in Angola LNG and in a first solar power plant project, Quilemba Solar, located in the southwest of the country,” added Ndong-Nzue.

Angola is the second-largest oil producer in Sub-Saharan Africa and uses associated gas to produce LNG as a clean energy source at its liquefaction plant, operated by the main shareholder, the US major Chevron Corp.

The LNG plant is just south of the territory of Cabinda, the nearest land to Block 14.

TotalEnergies is also a shareholder in Angola LNG along with Italy’s Eni, UK major BP and Angolan state energy company Sonangol.

The Angola LNG plant is located 350 kilometres north of the capital Luanda in Soyo, at the mouth of the Congo River, and is one of the world’s most modern LNG processing facilities.

A pipeline network of over 500 kilometres delivers gas from offshore oil fields to the Soyo plant designed to process 1.1 billion cubic feet of natural gas per day and produce 5.2 million tonnes per annum of LNG.

Angola, the southwest African LNG producer and holder for 2021 of the current rotating Presidency of the Organisation of Petroleum Exporting Countries (OPEC), has conducted  a successful oil and gas bidding round and on September 23 will name concession winners.