are being adopted, new seismic data collection techniques and
petroleum data management tools are being designed. The
trend is also helping the industrial and manufacturing sectors
to save cost and address the logistical and power challenges of
operating on the continent. We see international technology
providers investing and collaborating with African companies
to drive efficiency and environmentally friendly production
methods in 2020 and beyond.
6. Security concerns over the safety of Africa’s energy assets
and infrastructure will continue rising
We are likely to see an increase in African governments and
oil companies doing more to protect the security of energy
infrastructure and assets on the continent. Oil and gas resources
and commodities are prone to security risks – leaving countries
victims to energy theft, vandalism, piracy. Such acts cost Africa’s
oil and gas sector several billion dollars a year in losses and
reparations. With insecurity now spreading to East Africa, the
industry has taken as a responsibility to seriously address the issue.
7. Regulatory reforms will be pursued to remain competitive
With hundreds of blocks and acreages up for grabs in 2020
and a widening energy infrastructure gap, sub-Saharan African
countries are increasingly competing for investments and
technology. Countries like Senegal, Benin, Gabon, Algeria and
Cameroon have already implemented structural and regulatory
reforms in 2018/19 to attract new investment. Several others
are still restructuring their energy policies to provide more
incentives to develop domestic oil & gas reserves (associated
and non-associated), fuel for thermal generation and both
expand and diversify their energy infrastructure.
The project will be under Build-Own-Operate-Transfer terms.
The company is also in talks with the Ministry of the Interior
to obtain rights for the pipeline through a long-term lease
agreement for a 50m wide corridor along the entire 120km
length. Upon completion the gas project is projected to meet
30% of the country’s oil demands.
MINISTER VISITS WALTERSMITH
Equatorial Guinea’s Minister of Mines and Hydrocarbons,
Gabriel Mbaga Obiang Lima recently visited the Watersmith
Modular Refinery in southeastern Nigeria. The refinery is being
developed by Waltersmith Petroman Oil in partnership with
the Nigerian Content Development and Monitoring Board. The
modular refinery embodies Africa’s efforts to generate local
value by refining its own oil at home. The refinery is on schedule
for inauguration in May 2020, when its phase 2 will start to
boost refining capacity from 5 000 bopd to 30 000 bopd.
SUDAN CALLS FOR AUDIT OF
ITS OILFIELDS
The Republic of Sudan has invited foreign companies to bid for a
tender to conduct a comprehensive environmental audit of the
country’s oilfields.
Contributed by NJ Ayuk – CEO of Centurion Law Group The Ministry of Petroleum made prequalification documents
available to interested companies from its Juba headquarters,
and its website.
MOROCCO TO CONSTRUCT
GAS PIPELINE The Petroleum Act of 2012, which governs the oil sector
in South Sudan, aims to improve management of the
environmental impact of the sector after years of neglect
prior to independence. The civil war also prevented proper
management of the environment.
A 120-km natural gas pipeline is set to be constructed in
Morocco. This is after the nation’s Ministry of Energy gave
British industrial company Sound Energy approval for the
project development. According to a statement released by the
company, the project passed environmental impact assessment
(EIA) done by the ministry and is only waiting to proceed
pending negotiations with the Ministry of the Interior.
The pipeline project dubbed Tendrara Export Pipeline will cross
the Matarka village in the province of Figuig in eastern Morocco
and Jerada. It is expected connect the proposed gas treatment
plant and compression station (CPF) to the Gazoduc Maghreb
Europe pipeline (GME). The Maghreb Europe pipeline runs from
western Algeria, through Morocco, to southern Spain.
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President Salva Kiir has made it clear that the country needs
to implement proper environmental standards and guidelines
“to safeguard the exploration and exploitation in the extractive
industry that has led to pollution in the oilfields and in the
surrounding areas.”
According to the Sudanese Minister of Petroleum, Awow Daniel
Chuang, understanding the pollution damage will allow the
country to put systems in place to prevent further damage as
the country increases oil production.
An international independent organisation will be appointed to
conduct the audit, suggest best practices for new exploration,
and propose methods to repair historical environmental
damage in South Sudan.
African Mining
African Mining March 2020
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