Connect with us

Africa

Overcoming the technical challenges facing the future of oil and gas in Africa

Published

on

  It is an exciting time for E amp P projects in Africa but like global developments they face a number of challenges that need to be addressed to deliver the expected results The time it takes to start production the danger of cost overruns and the growing specter of sustainability compliance make it a complex picture A booming moment for Africa The pipeline of new projects on the continent looks strong In C te d Ivoire Eni made the Baleine discovery in deep water at the end of 2021 Following a successful well in July 2022 which confirmed the eastward extension of the field Eni is accelerating development and may sanction Phase 1 before the end of 2022 This will be C te d Ivoire s first significant project in decades In Namibia there were two giant discoveries in early 2022 that seem to be game changers the adjacent Shell s Graff and TotalEnergies Venus finds located deep in the Orange Basin TotalEnergies and Shell are speeding up assessment work a positive sign the two companies wouldn t do this if they didn t think they had something important In Angola Eni s Agogo project indicates that upstream activity is picking up after a few years of stagnation several projects are underway including TotalEnergies FPSO based Cameia Golfinho in Block 21 and a shallow water gas project deep operated by Eni The Italian Major is also moving forward with an innovative FAST LNG project in the shallow waters of Congo Brazzaville But it s not just the Majors that are moving forward with developments Africa focused independents are also key They include companies like Perenco which continues to expand in the region using its brownfields expertise to maximize the value of mature basins in Gabon Congo Cameroon and elsewhere VAALCO has ambitious growth plans focused on Gabon and Equatorial Guinea while BW Energy has been able to demonstrate strong operational capabilities with the Dussafu development in Gabon The company also has plans to replicate its winning strategy with the Kudu gas project off the coast of Namibia Accelerate developments now the industry mantra Delivering new projects on time and on budget is a big focus now for operators Production facilities like FPSOs are critical to achieving short cycle goals Operators like BW Energy have been successful in redeploying existing infrastructure in developments like Dussafu Eni also intends to redeploy an existing FPSO as part of its accelerated plans for Baleine But later phases of Baleine will require much larger FPSOs According to research by Welligence Energy Analytics it has taken an average of 50 months from FID to first oil for developments involving new build hulls on the mainland In the current climate companies are eager to shorten those lead times What we ve seen recently in Guyana is ExxonMobil using standardized FPSOs says Obo Idornigie vice president of sub Saharan Africa research at Welligence Instead of these FPSOs being bespoke vessels they are now standardized and will use hulls that have already been built to reduce the time from FID to first production Laser focus on costs Fast track projects are only part of the story Another major challenge now is the increasing pressure on the supply chain as activity increases During COVID most service providers reduced their workforce now the market is rising again demand is outstripping capacity This is a concern that everyone in the industry is talking about Idornigie added Are the construction of new wells the delivery of new facilities and other activities related to the upstream supply chain achieved without cost pressures In the context of African oil and gas it often revolves around reducing carbon emissions during production primarily the flaring and venting of gas from operations Are there opportunities for independents to work with technology providers to generate value from vacant land while reducing emissions adds Idornigie At the same time there is pressure to increase gas production for domestic consumption With the GOR oil and gas index rising in mature oil fields how do you reuse the gas that is flared into gas that could provide electricity host communities That s where that social license to operate starts to become an issue Find out more at Africa Oil Week A day long technical session at Africa Oil Week will focus on how to overcome the three challenges facing Africa s oil and gas sector Companies like Halliburton Baker Hughes Schlumberger BW Energy and Perenco will join Welligence Energy Analytics to share their experiences and explore the path to a profitable timely and sustainable future The AOW Technical Stream will investigate how industry can harness technology to manage what we call the three Cs cost cycle time and carbon reduction concludes Idornigie How can African projects be delivered efficiently with low costs shorter lead times and in a sustainable manner Africa Oil Week www Africa OilWeek com takes place in the heart of Cape Town at the Cape Town International Convention Center from October 3 7 2022 Book now https bit ly 3AuIn3S to lock in 2022 early bird savings
Overcoming the technical challenges facing the future of oil and gas in Africa

1 It is an exciting time for E&P projects in Africa, but like global developments they face a number of challenges that need to be addressed to deliver the expected results.

naijanewstoday

2 The time it takes to start production, the danger of cost overruns, and the growing specter of sustainability compliance make it a complex picture.

naijanewstoday

3 A booming moment for Africa The pipeline of new projects on the continent looks strong.

naijanewstoday

4 In Côte d’Ivoire, Eni made the Baleine discovery in deep water at the end of 2021.

5 Following a successful well in July 2022, which confirmed the eastward extension of the field, Eni is accelerating development and may sanction Phase 1 before the end of 2022 This will be Côte d’Ivoire’s first significant project in decades.

6 In Namibia, there were two giant discoveries in early 2022 that seem to be game changers: the adjacent Shell’s Graff and TotalEnergies’ Venus finds located deep in the Orange Basin.

7 TotalEnergies and Shell are speeding up assessment work, a positive sign: the two companies wouldn’t do this if they didn’t think they had something important.

8 In Angola, Eni’s Agogo project indicates that upstream activity is picking up after a few years of stagnation: several projects are underway, including TotalEnergies’ FPSO-based Cameia-Golfinho in Block 21 and a shallow-water gas project.

9 deep operated by Eni. The Italian Major is also moving forward with an innovative FAST LNG project in the shallow waters of Congo Brazzaville.

10 But it’s not just the Majors that are moving forward with developments.

11 Africa-focused independents are also key.

12 They include companies like Perenco, which continues to expand in the region, using its brownfields expertise to maximize the value of mature basins in Gabon, Congo, Cameroon and elsewhere.

13 VAALCO has ambitious growth plans focused on Gabon and Equatorial Guinea, while BW Energy has been able to demonstrate strong operational capabilities with the Dussafu development in Gabon.

14 The company also has plans to replicate its winning strategy with the Kudu gas project off the coast of Namibia.

15 Accelerate developments now the industry mantra Delivering new projects on time and on budget is a big focus now for operators.

16 Production facilities like FPSOs are critical to achieving short cycle goals.

17 Operators like BW Energy have been successful in redeploying existing infrastructure in developments like Dussafu.

18 Eni also intends to redeploy an existing FPSO as part of its accelerated plans for Baleine.

19 But later phases of Baleine will require much larger FPSOs. According to research by Welligence Energy Analytics, it has taken an average of 50 months from FID to first oil for developments involving new-build hulls on the mainland.

20 In the current climate, companies are eager to shorten those lead times.

21 “What we’ve seen recently in Guyana is ExxonMobil using standardized FPSOs,” says Obo Idornigie, vice president of sub-Saharan Africa research at Welligence.

22 “Instead of these FPSOs being bespoke vessels, they are now standardized and will use hulls that have already been built to reduce the time from FID to first production.” Laser focus on costs Fast track projects are only part of the story.

23 Another major challenge now is the increasing pressure on the supply chain as activity increases.

24 “During COVID most service providers reduced their workforce, now the market is rising again, demand is outstripping capacity.”

25 This is a concern that everyone in the industry is talking about, Idornigie added.

26 Are the construction of new wells, the delivery of new facilities and other activities related to the upstream supply chain achieved without cost pressures?

27 In the context of African oil and gas, it often revolves around reducing carbon emissions during production, primarily the flaring and venting of gas from operations.

28 Are there opportunities for independents to work with technology providers to generate value from vacant land while reducing emissions?” adds Idornigie.

29 “At the same time, there is pressure to increase gas production for domestic consumption.

30 With the GOR (oil and gas index) rising in mature oil fields, how do you reuse the gas that is flared into gas that could provide electricity?

31 host communities?

32 That’s where that social license to operate starts to become an issue.”

33 Find out more at Africa Oil Week A day-long technical session at Africa Oil Week will focus on how to overcome the three challenges facing Africa’s oil and gas sector.

34 Companies like Halliburton, Baker Hughes, Schlumberger, BW Energy and Perenco will join Welligence Energy Analytics to share their experiences and explore the path to a profitable, timely and sustainable future.

35 “The AOW Technical Stream will investigate how industry can harness technology to manage what we call the three Cs: cost, cycle time, and carbon reduction,” concludes Idornigie.

36 “How can African projects be delivered efficiently, with low costs, shorter lead times and in a sustainable manner?” Africa Oil Week (www.Africa-OilWeek.com) takes place in the heart of Cape Town at the Cape Town International Convention Center from October 3-7, 2022.

37 Book now (https://bit .ly/3AuIn3S) to lock in 2022 early bird savings.

bet9ja pool code for this week