Page 70 - Vol 28 Issue 29 2019

oil investment

A new decade rich in promise for

African oil & gas is dawning

In no particular order, here are some of the industry stories that have caught our eye recently!

1. South Africa’s Brulpadda field continent, particularly in the Southeast, in the gas-rich Rovuma basin.
development & further South potentially powering Africa towards gas Mozambique is seen as particularly
African gas exploration giant status. low-risk for investors, as much of the
“Brulpadda was one of Total’s biggest 2. US & other international end product has already been sold via
contracts to buyers in Asia and Europe,
exploration targets for 2019,” said Dr investment in Mozambique LNG effectively bank rolling the project.
Andrew Latham, Vice President of Global While Brulpadda is a very important find,
Exploration at Wood Mackenzie. “Even it’s currently Mozambique and its gas ExxonMobil, alongside partners Eni, Korea
though the well isn’t an oil Gas Corp, and CNPC, is also developing a
discovery, if Brulpadda proves to $30bn LNG project to capitalise
be anywhere near as big as the on Mozambique’s gas reserves.
estimates suggest, it will still be a The project will have a capacity
game-changer for South Africa.” of more than 15m tons per year.
Africa Energy President and It sits alongside two other
CEO Garrett Soden said: “This developments which are poised
discovery opens a new world- to turn Mozambique, one of
class oil & gas play with significant the poorest nations on Earth,
follow-on potential. The success into a major gas supplier. The
at Brulpadda significantly de- others include Anadarko’s, now
risks four other similar prospects Total’s, $25bn 13mpta facility,
already identified on existing 2D and an $8bn 3.4 FLNG platform
seismic data.” spearheaded by Eni.
The field’s ongoing development Estimates forecast that
signals a new era for South Mozambique can generate up
Africa’s energy future. Its to $95bn in revenues from gas
recoverable gas reserves stand production and exports by 2045.
at 1bn barrels of gas condensate, Not only will this spur on better
which will add extensive value to economic performance for the
the South African economy with country, it will also provide
proper oversight. international majors with solid
revenue and production streams
More exploration work will into the next decade.
commence in key blocks this year.
Africa Energy, Total’s partners in 3. Total swoops in on
the deepwater Block 11B/12B Occidental’s African assets
located 40km north of Brulpadda, has resources that are really powering African after Anadarko acquisition
stated that further exploration activity will gas development.
take place in 2020, with Total expected to A wave of US-based investment in Occidental Petroleum closed its $38bn
drill three further exploration wells. acquisition of Anadarko and its assets in
development of the Southeast African
Also offshore SA, the Luiperd-1 exploration nation is coming. The Export-Import Bank August 2019, giving the company in-roads
well is also forecast to spud using the of the United States (EXIM) approved a into Africa’s oil & gas industry.
Odfjell Deepsea Stavanger rig in Q1 $5bn loan to support the export of US As mentioned above, Anadarko was
2020. Could it yield further recoverable goods and services for development and one of the key investors in developing
resources? construction of an integrated LNG project Mozambique LNG, and Occidental,
Such activity folds into a wider African gas in Mozambique in September 2019. This through its acquisition, has assumed this
narrative. Natural gas has been discovered will supply the Mozambique LNG project, mantle. Or rather, it had, until it came to
in huge quantities in blocks around the a one of a kind asset, developing resources sell $8.8bn worth of African hydrocarbon
assets to Total. This divestment effectively

70 | AFRICAN POWER Mining & Oil Review Vol 28, Issue 29, 2019 Celebrating 10 years of excellence