JOHANNESBURG, February 6, 2024 – According to the oil & gas sector analysts, 2024 will be a critical year for Africa’s oil & gas sector with several key projects reaching commissioning stage while others could see their final investment decision [FID] taken. Here are the top 10 picks for the year!
Greater Tortue Ahmeyim [GTA] LNG hub, Mauritania/Senegal
The development of the giant Greater Tortue-Ahmeyim [GTA] gas field into an offshore liquefied natural gas (LNG) export hub is Africa’s biggest cross-border gas project and will be commissioned this year. Despite delays, first gas is expected in Q3 2024 – almost five years after FID and 28 months behind its original schedule – and will make Senegal and Mauritania new exporters of liquefied natural gas [LNG]. The new 2.3 millions of tonnes per annum [mtpa] hub includes a new Floating production storage and offloading [FPSO] and floating LNG [FLNG] unit located at the maritime border between both West African countries.
The project’s partners bp, Kosmos Energy, Petrosen and SMHPM are also expected to make progress on Phase 2, whose final investment decision [FID] could be announced in 2024. It will rely on a gravity-based structure and a static seabed connection providing up to 3 mtpa of additional LNG capacity.
Sangomar Offshore Oil Project, Senegal
Woodside Energy’s US$5 billion Sangomar Field Development Phase 1 is also being commissioned in 2024 and will make Senegal a new offshore oil producer and put the country on the list of medium-sized African oil producers.
The Léopold Sédar Senghor FPSO left Singapore at the end of 2023 and will support a new offshore production hub where First Oil is expected in mid-2024. The field’s production is expected to peak at some 100,000 barrels per day.
Coral Norte, Mozambique
Eni could take an FID in 2024 on the Coral Norte FLNG, a replica of the 3.4 mtpa Coral Sul FLNG which started gas production in mid-2022. The Italian major has been in discussions with its partners and contractors over the past months to finalise the project’s details and was on the hunt last year to secure a drilling rig to carry out drilling and well testing operations onsite. By focusing on a duplicate of its existing project, Eni can leverage on its experience developing an FLNG for Mozambique to propose an offshore solution that scales up LNG capacity and maximises reserves quicker while avoiding onshore security risks around Cabo Delgado.
Pecan Field Development, Ghana
After its acquisition by the Africa Finance Corporation, Pecan Energies could make strides on developing the offshore Pecan Field within block DWT/CTP in Ghana. Initially operated by Aker Energy, the project was expected to rely on a 110,000 barrels of oil per day [bopd] FPSO but suffered from repeated challenges and delays since the COVID-19 pandemic.
A new plan of development was submitted in April 2023 proposing the development of Pecan as a firm phase one before considering the development of nearby discoveries in the block. The project has become a necessity if Ghana wants to mitigate declining output from its three producing offshore fields and get closer to the 300,000 bopd threshold.
Cameia and Golfinho Fields Development, Angola
TotalEnergies could take FID in 2024 for the development of the Cameia and Golfinho fields within Blocks 20 and 21 in the Kwanza Basin offshore Angola. Heads of Agreement were signed last year between the operator, the Agência Nacional de Petróleo, Gás e Biocombustíveis [ANPG] and Sonangol with a production target of 70,000 bopd.
TotalEnergies will deploy a seventh FPSO in the country to support fields development operations and promote a lower carbon intensity footprint by using electricity generation from a combined cycle turbine and a zero-flaring concept. The project is supported by recent appraisal and exploratory drilling, with a discovery reportedly made on the Grenadier-1 NFW well west of Golfinho last year.
Nigeria LNG T7 feeders
Nigeria is expected a flurry of FIDs this year, especially on upstream gas projects that will ensure feedstock supply to Nigeria LNG – Africa’s biggest LNG export terminal. Chief amongst them is the development of the onshore Ubeta Field by TotalEnergies on OML 58, and the development of the shallow water HI Field by Sunlink Energies and Shell on OML 144.
Ubeta will include a cluster development to develop five major reservoirs and a pipeline to the Obite gas treatment plant, with commissioning expected in December 2026. The development concept for HI has also matured – although official announcements are yet to be made by Sunlink Energies and Shell on the onshore and offshore components of the project.
Baleine Field Development, Côte d’Ivoire
After commissioning the development of Côte d’Ivoire’s largest hydrocarbons discovery in 2023, Eni will continue with the subsequent phases of its Baleine project. Developing the field is a priority for Eni in West Africa, with phase 1 commissioned only two years after discovery and representing Africa’s first emissions-free [Scope 1 & 2] production project.
The field’s infrastructure, including its FPSO, are currently able to handle up to 15,000 bopd and 25 million standard cubic feet per day [MMscf/d] of gas. Phase 2 should be achieved this year and bring capacity to 50,000 bopd and 70 MMscf/d of gas. A third phase will follow to ramp up production to 150,000 bopd and 200 Mmscf/d of gas over the next couple of years. All associated gas is delivered to the domestic market to generate power.
Agogo Field Development, Angola
Offshore Angola, Azule Energy continues to progress its Agogo integrated west hub development project in Block 15/06, where it already has two FPSOs. In early 2023, contracts were awarded to Yinson, Baker Hughes, Aker Solutions, Saipem and Subsea 7. The project comprises 36 new wells, one converted FPSO able to produce 120,000 bopd and 230 MMscf/d, and will rely on some 100km of rigid flowlines, 100k of flexible flowlines and 100km of umbilicals. The new hub will develop reserves from the Agogo and Ndungu Fields with commissioning expected in mid-2026.
PAJ Fields Development, Angola
2024 could tell whether Azule Energy’s plans to develop the Palas, Astraea and Juno [PAJ] Fields within Block 31 offshore Angola will go ahead or not. Tenders were issued last year for the flowlines, subsea production system, umbilical service provision, project management services and maritime inspection services. bp Exploration [Angola] also has an exclusivity agreement with Yinson for the FPSO Nganhurr which could be deployed as part of the project.
South Lokichar Basin Development, Kenya
Will 2024 offer a way forward for Tullow Oil to develop its onshore discoveries in Kenya? In 2022, minority partners TotalEnergies and Africa Oil Corp. issued notices of withdrawal to exit from Blocks 10BB, 13T and 10BA, leaving Tullow Oil with 100 percent working interest. The company successfully produced a few barrels in 2019 under a pilot scheme, but a final investment decision [FID] on the 120,000 bopd project is yet to be taken. Finding solutions around equity participation and local regulations would open up a new petroleum province in East Africa and lead to the emergence of a brand new industry in Kenya.
https://thecooperator.news/president-akufo-addo-commissions-chinese-built-oil-refinery/
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