LNG

Kosmos Energy, the Dallas-based company with LNG interests in the West African nations of Senegal and Mauritania and a specialist company for offshore Atlantic Margins exploration and production, has made a successful start-up of oil production at the Winterfell development in the Green Canyon area of the US Gulf of Mexico.

Côte d'Ivoire President Alassane Ouattara has outlined plans to boost oil and natural gas output three-fold in the West African nation by 2027 when it would become a major regional energy hub.

President Ouattara told a joint session of Parliament in a major speech that more than $15 billion was expected to be invested in the country's oil and gas sector, adding that output would grow to about 200,000 barrels per day (bpd) by 2027 from 60,000 at the moment.

He said that resources had been boosted by recent oil and gas discoveries including the Baleine and Calao offshore fields and Italy and others and nations would lead the investment to help the nation on the path to economic success.

“It will be a spectacular leap,” Ouattara declared to the legislature.

The Baleine field was discovered by Italian major Eni in 2021 and production started in 2023.

National resources

The Baleine oil and gas project alone will help ensure that the population has access to energy for daily living and the surplus would strengthens the Côte d'Ivoire's position as a regional energy hub.

The Côte d'Ivoire’s regional neighbours to the North, Senegal and Mauritania, are currently developing floating LNG projects and Senegal is starting its first offshore oil project backed by Australian LNG operator Woodside Energy.

Among Côte d'Ivoire’s southern neighbours, Nigeria is an established world-scale LNG and oil exporting nation.

Ouattara said that $10 billion would be invested in developing the Baleine field and this spending was taking place in three phases through 2027.

Certified reserves of the Baleine field, discovered by the Italian energy group in 2021, are estimated at 2.5 billion barrels of oil and 3.3 trillion cubic feet of natural gas.

Eni additionally announced in March 2024 that the Calao field had been discovered with preliminary assessments indicating potential resources ranging between 1 billion barrels of oil to 1.5 billion barrels of oil. 

Another neighbour Cameroon has a small FLNG project in operation, Ghana plans LNG imports and Angola is a major oil and gas nation.

Most recently, the Eni-led FLNG project in the Republic of Congo shipped its first cargo to Italy.

African Investment surge

The Côte d'Ivoire’s mainly oil production has varied significantly over the past two decades as existing fields have become depleted, closed for maintenance or development works and as new discoveries have been made but have needed further investment and development.

Eni’s partner in the Baleine project and other ventures in Côte d'Ivoire is the nation's state energy company, Société Nationale d'Opérations Pétrolières de la Côte d'Ivoire (Petroci).

In addition to the CI-101 block, Eni owns stakes in four other blocks in the Ivorian deepwater.

They are CI-205, CI-501, CI-504 and CI-802, all with the same partner Petroci.

Baleine's initial gas production is destined to boost the domestic market, strengthening access to energy for the people of Côte d'Ivoire. 

Côte d’Ivoire President Alassane Ouattara and head of Italy’s Eni announced a major offshore discovery of oil, natural and condensate with many development options for the resources.

The large discovery in block CI-205 has been named the Calao field and is the West African nation’s second-largest ever.

Eni added that only the Baleine field discovered by Eni in September 2021 was bigger.

Côte d’Ivoire President Ouattara and Eni Chief Executive Claudio Descalzi met in the capital Abidjan on March 7 to discuss the successful results of the exploration well called Murene 1X in the Calao find.

The Prime Minister of Côte d’Ivoire, Robert Beugré Mambé, and the Minister of Mines, Petroleum, and Energy, Mamadou Sangafowa-Coulibaly, also participated in the meeting.

Resource boost

The Côte d’Ivoire’s mainly oil production has varied significantly over the past two decades as existing fields have become depleted, closed for maintenance or development works and as new discoveries have been made but have needed further investment and development.

The nation’s regional neighbours to the north, Senegal and Mauritania, are currently developing floating LNG projects, while among its southern neighbours, Nigeria is an established world-scale LNG and oil exporting nation, while Cameroon has a small FLNG project in operation.

Additionally, Eni itself has just brought onstream an FLNG project in the Republic of Congo and the first cargo was shipped to Italy.

The countries of Africa intend to develop their oil and natural gas resources for the benefit of their citizens as Western nations have done for more than 100 years despite opposition to African hydrocarbon projects from environmental elites in the developed countries of Europe and North America.

The Calao discovery was described by Eni as a “very significant” one for the country.

Drilling operations took place about 45 kilometres (28 miles) offshore in block CI-205, reaching a depth of 5,000 metres in water depths of around 2,200 metres.

Analysis

“The well encountered light oil, gas, and condensates in various intervals of Cenomanian age characterized by good to excellent permeability values,” said Eni.

“Preliminary assessments indicate potential resources ranging between 1.0 billion and 1.5 billion barrels of oil equivalent,” said the Milan-based company.

Eni operates the block in partnership with the Société Nationale d'Opérations Pétrolières de la Côte d'Ivoire, also known as Petroci.

President Ouattara and Eni CEO Descalzi discussed the appraisal and development plans for the discovery, including Eni’s commitment to meet the country’s domestic needs.

Eni has operated in the Côte d’Ivoire since 2015. In addition to block CI-205, Eni holds participating interests in five other blocks in Ivorian deep waters: CI-101, CI-401, CI-501, CI-801, and CI-802, all in partnership with Petroci .

Eni currently has an equity production of hydrocarbons totalling about 22,000 barrels of oil equivalent per day from the Baleine field, which started production in August 2023. 

The Republic of the Congo in West Africa has become an LNG exporter under a project developed by Italian major Eni and the first shipment is heading for the Italian floating LNG import terminal at Piombino in Tuscany.

The President of the Republic of the Congo, Denis Sassou-N'Guesso, and the Chairman of Eni Giuseppe Zafarana and Chief Executive Claudio Descalzi celebrated the start-up at an event held the Congolese port of Pointe Noire.

“With the first cargo, the Republic of the Congo enters the group of LNG exporting countries, opening up opportunities for economic growth while contributing to the global energy balance,” said a joint statement.

The loading of the first cargo offshore the Congo makes the nation the third FLNG producer after Cameroon, located further North, and Mozambique in southeast Africa.

FLNG configuration

The “Tango FLNG” facility has a liquefaction capacity of about 1 billion cubic metres per annum and is moored alongside the “Excalibur” floating storage unit (FSU) to use a production and loading configuration called “split mooring” and implemented for the first time in an FLNG project.

Natural gas had been introduced into the system in December 2023, which was a record 12 months after the final investment decision on the project was taken in December 2022.

“The Congo LNG project encompasses the adoption of new technologies and a strong synergy with existing producing assets,” Eni explained.

Following completion of the commissioning phase, the “Tango FLNG” barge succeeded in producing the first cargo on schedule in the first quarter of 2024.

The FLNG hub is located within the Marine XII natural gas field permit area with plateau gas liquefaction capacity of around 4.5 billion cubic metres per annum.

The volumes will be marketed by Eni, strengthening and expanding the company’s LNG portfolio. 

Eni is the only international energy company active in the development of the nation’s natural gas resources, supplying pipeline gas from offshore to the Centrale Électrique du Congo, which provides 70 percent of the country's power generation capacity.

Second plant

Eni has said that a second FLNG vessel with a capacity of about 3.5 Bcm of gas was under construction and would be deployed in 2025.

The Congo FLNG project is the third venture operating in Africa after Cameroon FLNG, Mozambique FLNG and with other ventures being developed in several other nations including Nigeria.

Two more FLNG facilities are additionally being developed in joint projects for Senegal and Mauritania in West Africa and involving UK major BP and Dallas, Texas-based Kosmos Energy.

The first Senegal-Mauritania LNG shipment is scheduled to be produced by the end of 2024.

The “Tango FLNG” hull first operated in Argentina and underwent some conversion in Singapore before being sent to Africa.

The previous owner of the “Tango FLNG”, the Belgian shipping company Exmar, sold the production barge in 2022 to Eni as part of a deal valued at around $646 million

Côte d'Ivoire has celebrated the ramp-up of the Baleine oil and gas field as part of a world-class hub of oil, pipeline natural gas and LNG exports and imports being built out to improve economic prosperity in West Africa from Mauritania in the North to Angola in the South.

The President of the Republic of Côte d'Ivoire, Alassane Ouattara, and Claudio Descalzi, the Chief Executive of Italian major Eni, met in the African nation’s economic capital, Abidjan, to mark the production ramp-up at the Baleine field.

The Baleine project is offshore block CI-101 and is believed to hold up to 2.0 billion barrels of oil in place and 2.4 trillion cubic feet of associated gas located at water depth of 1,200 metres.

Largest discovery

Baleine was discovered in 2021 as the largest commercial discovery in the country in the last 20 years and is now set to contribute substantially to energy production in the Côte d'Ivoire after starting production in September.

The Côte d'Ivoire’s regional neighbours to the North, Senegal and Mauritania, are currently developing floating LNG projects, while among its southern neighbours, Nigeria is an established world-scale LNG and oil exporting nation, while Cameroon has a small FLNG project in operation, Ghana plans LNG imports and Angola is a major oil and gas nation.

The Côte d'Ivoire’s mainly oil production has varied significantly over the past two decades as existing fields have become depleted, closed for maintenance or development works and as new discoveries have been made but have needed further investment and development.

Eni’s partner in the Baleine project and other ventures is the African nation's state energy company, Société Nationale d'Opérations Pétrolières de la Côte d'Ivoire (Petroci).

In addition to the CI-101 block, Eni owns stakes in four other blocks in the Ivorian deepwater. They are CI-205, CI-501, CI-504 and CI-802, all with the same partner Petroci.

Output

“Oil production from Baleine stands at 20,000 barrels per day, far exceeding the initial anticipated 12,000 barrels per day,” Eni explained.

“The project is set to reach its plateau of 50,000 barrels of oil per day by the end of 2024. Upon completion of the second development phase and full field development it is then  expected to enable the production of up to 150,000 barrels per day,” Eni added.

“Baleine's gas production is entirely destined for the domestic market, strengthening access to energy in Côte d'Ivoire,” stated the Milan-based company.

Eni said that the meeting between President Ouattara and CEO Descalzi covered other initiatives that Eni is carrying out to advance economic diversification in addition to contributing to the country's energy needs and prosperity.

Bio-refineries

“Among these, it is worth mentioning the production of vegetable oil to supply Eni’s bio-refineries, an operation that recently began in Côte d'Ivoire and which leverages waste from rubber production,” CEO Descalzi explained.

“This project will feed our bio-refineries with sustainable feedstock, while at the same time integrating Côte d'Ivoire in the value chain of biofuels, generating a positive impact for the families of local farmers with whom we collaborate through long-term agreements,” Descalzi stated.

“This initiative offers additional income for 100,000 families that have already joined the program,” he added.

The Republic of the Congo and Italian energy major and liquefied natural gas projectdeveloper Eni have witnessed the sail away from Dubai in the United Arab Emirates of two vessels that will comprise the African nation’s first floating LNG production venture.

The two vessels left Dubai at a ceremony attended by Bruno Jean Richard Itoua, Minister of Hydrocarbons of the Republic of the Congo, Maixent Raoul Ominga, Managing Director of state energy company Societe National des Petroles du Congo (SNPC) and Guido Brusco, Chief Operating Officer for Natural Resources for FLNG developer Eni.

Eni said that the “Tango” FLNG vessel that formerly operated in Argentina is now on its way to the West Coast of Africa along with the “Excalibur” floating storage unit (FSU).

“The milestone aligns with the timeline of the Congo LNG project, whose first phase will start-up in December 2023,” said Eni.

FLNG surge

When Congo FLNG starts it will be the third project operating in Africa after Cameroon FLNG, Mozambique FLNG and with other ventures being developed in nations like Nigeria.

Two more FLNG facilities are being developed in joint projects for Senegal and Mauritania in West Africa and involving UK major BP and Dallas, Texas-based Kosmos Energy.

The “Tango” FLNG production hull has a liquefaction capacity of around 1 billion cubic metres per annum of gas.

It will be moored about three kilometres offshore along with the “Excalibur” FSU upon their arrival in Congo territorial waters.

“The Congo LNG project leverages Marine XII natural gas resources and existing production facilities in a new, phased approach that will be allowed to reach approximately 4.5 Bcm a year of gas liquefaction capacity at plateau, as well as zero routine gas flaring,” Eni explained.

The Milan-based company added that a second FLNG vessel with a capacity of about 3.5 Bcm of gas is under construction and will be deployed in 2025.

“The project will help the Republic of the Congo meet its energy needs while seizing the opportunity to exploit surplus gas through LNG production, allowing the country to join the group of global exporters of LNG in record time,” stated Eni.

“According to the agreements recently signed, all LNG produced will be marketed by Eni,” the company added. 

French major TotalEnergies, a shareholder in the Angola LNG export plant, has finalized the sale for $400 million to a unit of Malaysian energy company Petronas of a stake in Block 20 in the Kwanza Basin offshore the Angolan coast.

Exmar NV, the supplier of floating liquefied natural gas import facilities and an FLNG production unit to the Netherlands and the Republic of Congo respectively, has issued clarification to a letter sent to shareholders on the voluntary public takeover bid launched by Saverex NV for Exmar and open for acceptance until September 15.

The moves over the takeover process begun in June 2023 and involving Saverex, the holding company of the family of Exmar Executive Chairman Nicolas Saverys, came as Exmar also reported its first-half earnings.

Exmar revenues jumped to $200.2 million in the first six months of 2023 compared with $57.1M in the same period of 2022.

Proft returns

The Antwerp, Belgium-based company’s net profits amounted to $2M versus a loss of $8.5M in last year’s first half.

In regard to its latest letter to shareholders, the company said this may have “created the impression with certain shareholders that they are under an obligation to sell” their shares.

“This certainly was not the company’s intention and we, therefore, ask you to disregard this Letter and we hereby rectify that each shareholder is free to either tender or not to tender their shares to Saverex,” explained the company

“In the event shareholders have already tendered their shares in this second acceptance period, they also have the right to retract their tender,” it added.

“Certain shareholders have allegedly been approached in the name of the company, to convince or induce them to tender their shares to Saverex. The company takes the opportunity to underline that it has not taken such initiative and it would not support any such actions,” it declared.

FLNG progress

In the earnings report, Exmar, said that the “FSRU Eemshaven LNG” chartered to an affiliate of Dutch utility Gasunie has been running steadily at 300 million standard cubic feet per day of capacity.

Exmar added that progress was being made on the Congo export project involving the conventional LNG carrier “Excalibur”, which is undergoing conversion to a floating storage unit (FSU).

The “Excalibur” will be used alongside the “Tango FLNG” production vessel in a project being developed by Italian oil and gas major Eni.

Exmar retains an extensive fleet of other vessels, including three Vary Large Gas Carriers, 17 mid-sized liquefied petroleum gas carriers, two newbuilds and 10 pressurised carriers.

“The three VLGCs continue under their current employment. The VLGC market continues to perform well and prospects for the remainder of 2023 are positive,” stated Exmar.

“In the Midsize Gas Carriers (MGC) market, 2022 was an eventful year for LPG and ammonia with increased freight and higher ton-mile, while 2023 has seen a correction with reduced ammonia shipping demand, while LPG trade remained robust,” the company added.

“Owners managed to keep MGC hire rates at good levels despite recent newbuilding deliveries,” Exmar said.

Baker Hughes, the US energy technology company and LNG equipment supplier, has been awarded a major contract in the Côte d'Ivoire in West Africa where the Baleine project for offshore oil and associated gas is currently moving forward to maintain the country's status as an African energy hub.

Baker Hughes was chosen for the contract by Italian oil and gas company Eni and the African nation's state energy company, Société Nationale d'Opérations Pétrolières de la Côte d'Ivoire (Petroci).

Eni and Petroci are initiating Africa’s first Scope 1 and 2 carbon-dioxide emissions reduction plan as part of the Baleine oil and gas field Phase 2 development.

The Baleine field, taking its name from the French word for “whale”, was discovered in 2021 as the largest commercial discovery in the country in the last 20 years and set to contribute substantially to boosting energy production in Côte d'Ivoire.

The Côte d'Ivoire’s mainly oil production has varied significantly over the past two decades as existing fields have become depleted, closed for maintenance or development works and as new discoveries have been made but have needed further investment.

Deep water trees

“This award, which includes eight deep water trees, three Aptara™ manifolds, the relevant subsea production control system, and flexible risers and jumpers, strengthens Baker Hughes’ presence in West Africa and unlocks considerable growth potential in the country,” explained the Houston, Texas-based company.

“Baker Hughes will deliver a configured-to-order product portfolio across subsea production and flexible pipe systems, designed for optimum cost effectiveness, installation and life-of-field value,” added the company.

Baker Hughes said that these deepwater trees and manifolds, supplemented with subsea production controls and flexible pipe systems, are aimed at providing efficiency and cost-effectiveness under demanding conditions.

“This collaboration between Baker Hughes and Eni is Africa’s first development project with clear Scope 1 and 2 carbon reduction goals and will deliver innovative technology that will enhance the energy security in Ivory Coast,” said Maria Claudia Borras, executive vice president for Oilfield Services & Equipment at Baker Hughes.

“Ensuring that energy is locally available is an increasingly profound challenge, and we applaud the efforts of Eni and companies like it to shape an abundant energy future for Africa. We are proud of the confidence placed in us to accelerate the execution of this important project,” Borras added.

LNG orders

Baker Hughes is additionally a key player in the LNG equipment supply sector and its most recent contract award was in April 2023 to supply two main refrigerant compressors (MRCs) for the North Field South (NFS) LNG expansion project in Qatar.

The Ivorian Baleine project is offshore block CI-101 and is forecast to hold up to 2.0 billion barrels of oil in place and 2.4 trillion cubic feet of associated gas located at water depth of 1,200 metres.

In addition to the CI-101 block, Eni owns stakes in four other blocks in the Ivorian deepwater.

They are CI-205, CI-501, CI-504 and CI-802, all with the same partner Petroci.

The Côte d'Ivoire’s regional neighbours to the north, Senegal and Mauritania, are currently developing floating LNG projects, while among its southern neighbours, Nigeria is an established world-scale LNG and oil exporting nation and Cameroon has a small FLNG project in operation.

May 9 (LNGJ) - Kosmos Energy, the developer with UK major BP of the Mauritania and Senegal floating LNG project and natural gas hub, said phase one of the venture called the Greater Tortue Ahmeyim project continued to make good progress. “First gas is targeted at the end of 2023 with continued progress across the four major work streams,” said Dallas, Texas-based Kosmos.

   “Hub construction work is complete and activity is focused on progressing the final commissioning for handover to operations around the end of the second quarter of 2023,” Kosmos explained. “The laying of the deepwater section of the pipeline from the field to the FPSO is currently underway. This will be followed by the installation of the infield flowlines and subsea structures. Timely execution of this subsea work scope is the critical path to first gas by the end of the year,” stated Kosmos.