By Roseline Okere

exploration wellsDEEPWATER project investments in West Africa have recorded a ten-fold increase from $1.5 billion, recorded in 2000, to $15.6 billion in 2010.
In the near future, investments are expected to rise even further, as new projects are being developed, such as Bosi in Nigeria, CLOV in Angola and the wider Jubilee area in Ghana.
The Chairman and Managing Director of Mobil Producing Nigeria, Mark Ward, who made this disclosure at the Nigerian Association of Petroleum Explorationists’ third Regional Deepwater Offshore West Africa Conference (DOWAC) in Abuja recently, stated that West Africa was clearly at early stages of deepwater investments.
According to him, throughout 2010, only 250 exploration wells were drilled in comparison to 1000 wells in deepwater Gulf of Mexico.  “Effective exploitation of the West African deepwater hydrocarbon endowment will largely depend on industry’s ability to continuously innovate and utilise technology coupled with the right investment incentives to extend the life of existing plays while also finding new players”.
Ward, who is also the Lead Country Manager, ExxonMobil affiliates in Nigeria, added that over $25 billion of oil equivalent barrels have been discovered in deepwater West Africa since the early nineties.
Nigeria and Angola in particular enjoyed tremendous deepwater exploration success in the 1990s with notable discoveries such as Erha, Bonga, Bosi and Agbami in Nigeria, while Angola had Girassol, Daila, Kissanga and Kizomba.  Many of the early discoveries are currently producing with over 12 world-class floating production storage offloading facilities in the West African region”.
Speaking on the success stories of deepwater production in West Africa, he hinted that from 85,000 barrels of oil per day in 2000, production has risen steadily to 2.5 million barrels of oil per day in 2010, a 30-fold increase.

Source: guardiannewsngr.com      Image: newsone.com

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Recent explorations have indicated that Sierra Leone could become a major exporter of oil and gas in the near future, making the energy sector a key area of growth.

Investment opportunities

oilRehabilitation and expansion of the Sierra Leone Petroleum Refining Company

The government is actively seeking a strategic partner with extensive experience in operations and management to rehabilitate and expand the moribund Sierra Leone Petroleum Refining Company (SLPRC).

Established in 1970 as a joint venture with major international oil companies, SLPRC ceased production ten years ago. However, the site has attracted significant interest based on its proximity to an operational oil jetty and the existing infrastructure.

The refinery had the capacity to produce 450 000 tonnes of crude oil per year. The refined products included premium motor spirit, domestic purpose kerosene, aviation turbine kerosene, automotive gas oil, bunker gas oil, fuel oil, bunker fuel oil, lead-free naphtha, liquid petroleum gas, marine diesel oil, and special distillate.

When rehabilitated, the refinery would be exceptionally well positioned to capitalize on the discovery of an exploitable hydrocarbon resource off the coast of Sierra Leone.

Interested investors will benefit from the following;

• Location: Sierra Leone is uniquely positioned to supply markets in US, Europe and the rest of Africa. The project is close to a sheltered deepwater harbour and international shipping lanes.

• Stock: Potential investors would have access to multiple oil producers in the Gulf of Guinea and South America, and possibly in Sierra Leone. Recent hydrocarbon discovery by petroleum company Anadarko in offshore Venus prospect indicate the likelihood of major oilfields in the country.

• The US and other nations provide a guaranteed market because they are encouraging the exploitation of oil resources in West Africa, with a view of reducing dependence on supplies from the Middle East.

Source: TradeInvestAfrica      Image: constructionweekonline

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CAPE TOWN (Reuters) – The World Bank is planning to coordinate funding for 30 gigawatts (GW) of new power generation in Africa over the next five years, a senior official said on Monday.

power“We are not going to finance everything ourselves, but how we can help leverage financing for that 30 gigawatts of additional capacity,” Reynold Duncan, the bank’s Africa energy specialist, told reporters on the sidelines of power conference.

All potential projects, including the mammoth Inga hydropower scheme on the Congo river in Democratic Republic of Congo, would be considered, Duncan added, but gave no details of specific project funding.

In a major report last year, the World Bank said sub-Saharan Africa needed to double its infrastructure spending to $93 billion a year, 15 percent of regional output, to drag its road, water and power networks into the 21st century.

The region needs an extra 7,000 megawatts of capacity a year to meet the demand of its 800 million people, who currently have access to the same amount of power as Spain, with a population of just 45 million.

Source: Reuters   Image: Reuters

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