MOROCCO: What is going on in Morocco?

In Africa generally, a lot of petroleum exploration has been ongoing, especially in the west coast. In Ghana, Gabon and Namibia, there's been frenetic activities lately, not to mention ongoing work in stalwart producing nations like Nigeria. But the northern end of the coast, off Morocco - where the Atlantic meets the Mediterranean at the Straits of Gibraltar, little is known about the rocks or the oil pools. Recently, there seems to be a convergence of oil majors in this "secret coast". Why could this be?

Some high-profile players are betting that a lack of historic work could mean big discoveries are still lurking there. In January, Chevron (NYSE: CVX) bought up to three offshore blocks in Moroccan waters. And just last week, BP (NYSE: BP) said it will farm into three offshore licences there held by Kosmos Energy (NYSE: KOS)

The statistics back up their enthusiasm: estimates are that up to 10 exploration wells could be drilled off the secret coast over the next 12 to 18 months, more than all the wells drilled there since 1990. Soon, this "secret coast" may end up making the headlines like the hitherto unknown shale formations in the US.

MOROCCO: BP Takes Non-operating Interest in Moroccan Blocks

With a much anticipated drilling programme set to test Morocco's offshore potential, BP has taken a non-operating interest in the adjacent Essaouira offshore, Foum Assaka offshore and Tarhazoute Offshore blocks, and will fund Kosmos' share of the cost of a well in each of them. Tarhazoute was recently converted from a reconnaissance contract. Kosmos described the Agadir Basin as "one of the last remaining underexploited salt basins along the Atlantic Margin".

BP has taken stakes in Kosmos' acreage offshore fromAgadir, but not in its Cap Boujdour Offshore Block, which is within the disputed territory of Western Sahara. Foum Assaka was licensed in 2011 to Kosmos and Pathfinder Hydrocarbon Ventures, now part of Fastnet Oil and Gas, lde by John Craven, whose Cove Energy was a highly successful early mover in Mozambique.

SOUTH AFRICA: Government Publishes Fracking Reglations

Determined to frack its way into the future, the South African government has gazetted regulations for petroleum exploration and exploitation, the majority of which deal with hydraulic fracturing in the country, providing guidelines for environmental impact assessment, detailing equipment standards to ensure safe drilling and  specifying that all operators must obtain a water licence before starting work.

Interested parties have until 14 November to submit comments on the proposals, then the government will make any adjustments and the regulations will be promulgated. Three companies, Royal Dutch Shell, Challenger and Falcon, filed applications for exploration in the Karoo Basiin before the government placed a moratorium on licensing in February 2011.

DR Congo hears call for new approach to settle sea border with Angola

Democratic Republic of Congo's latest national conference has heard a call for a new push to settle the maritime border dispute with Angola and enable the country to take a potential share of the region's offshore oil. The 'Concertations Nationalés' held from 7th September to 5th October in Kinshasa, gathered MPs, Senators and Civil Society organisations to discuss the country's political and economic future. Kinshasa University geologist Professor Ezequiel Kasongo Numbi Kashemukunda, a former MP of President Joseph Kabila's Alliance de la Majorité Présidentielle and former diplomat, called the government to stop wasting time and energy in trying to secure the recognition of its claims over the continental shelf beyond the 200 nautical mile limit.

CONGO: CNOOC Makes Oil and Gas Discovery

Operator CNOOC has made an oil and gas discovery with the E-1 exploration well on the Elephant prospect in Haute Mer A licence area. Partner Oryx Petroleum said the discovery would be tested in early 2014 as part of a multi-well drilling and testing programme on the block. "Reservoir quality, crude quality and viscosity appear to be better than originally anticipated while the areal extent of the reservoir appears to be slightly smaller than expected", said Oryx chief operating officer Henry Legarre. "Although subject to testing, the discovery gives us confidence that there is further upside potential and opportunity to expand the prospect inventory in the licence area".

GHANA: FMC Technologies wins multi-million dollar contract

Tullow Ghana has given FMC Technologies a $340 million contract to supply subsea systems for the Tweneboa-Enyenra-Ntomme development. FMC will supply subsea trees, manifolds, tooling and associated subsea control systems. It has been operating in Ghana since 2008 and has recently completed the assembly and testing of the first Ghananian-built subsea trees at its support base in Takoradi.

Sierra Leone: Oil shows for Lukoil

Lukoil and Oranto petroleum have completed their first well offshore Sierra Leone and found an "oil-saturated reservoir" with its first exploration well offshore Sierra Leone. The well on the Savannah structure on Block SL-5-11 was drilled to more than 4,700 metres in water depths of more than 2,000 metres using semi-submersible Ocean Rig Eirik Raude.

In a statement issued late Monday, the government congratulated Lukoil and said full appraisal of the amount of potential oil would be completed by the end of the year. Lukoil who farmed into the block in mid-2011, has a 49% stake in Block SL-5-11 partnered with Oranto. The block is located in a basin where multiple sizeable oil fields have recently been discovered.

Tanzania ready to launch fourth licensing round

Tanzania is set to launch its fourth licensing round on 25th of October, where it would be offering deep-water acreage. Initially, it was said that a precondition for the auction to take place was putting a new gas policy in place. However, the auction would go ahead even though the gas policy is not yet in place.

Interested parties will be invited to bid for eight blocks, seven offshore and one in the north of Lake Tanganyika. The prospect has triggered some excitement in industry circles, not least because the auction has been much delayed, but also because the offshore blocks lie adjacent to big gas discoveries made by BG Group and Statoil, which plan a liquefaction facility to market the gas.

BENIN REPUBLIC: Benin Discovers 87 million Barrels of Oil

Benin said Thursday that it had discovered  87 million barrels of oil off its coast, a tiny amount compared to neighboring Nigeria's reserves, but which could boost the small country's economy.

"We have discovered oil in a significant commercial quantity with Sapetro company which works on Bloc 1 of the sedimentary basin off Seme Podji coast", energy ministers Barthelemy Kassa told AFP.  He further said the discovery would help finance the country's development project. "It is a historic development for our country because this will enable us to finance our development projects", he further stated.

Sapetro is a Nigerian gas exploration and production company. Its chief executive, Daisy Danjuma, wife of a former Nigerian army chief Theophilus Danjuma, said that first commercial oil production will begin in late 2014. 

NIGERIA: Fuel Importation may have been Suspended

The Nigerian National Petroleum Corporation (NNPC) has halted petrol imports as excessive orders has created a petrol glut, Reuters news agency reported on Thursday. Petroleum Pipelines and Product Marketing Company (PPMC), a subsidiary of the NNPC responsible for the supply of petroleum products to the domestic market will not make purchases in November, as it tries to work through a 10.2 million barrel (1.2 million tonnes) surplus petrol waiting offshore.

Traders reportedly hinted it was possible that the suspension may extend until the end of the year, which will hit European refiners that supply the market.

Spokesman of PPMC, Nasir Imodagbe, was quoted as stating he was not aware of any cancellation of orders, but that a decision to suspend imports would be that of the regulator, the Petroleum Product Pricing Regulatory Agency (PPPRA).

NIGERIA: Industry Consultant Allays Shale Fears

An energy law consultant in the Nigerian energy sector has allayed fears of the possibility of global shale development negatively affecting the Nigerian economy, which is largely dependent on revenues from sale of conventional oil and gas.

Speaking at an energy forum, Harrison Declan stated that "Nigeria it is believed, is one of such countries who find themselves in a precarious situation in the face of global shale development. Given the notoriety of such sentiment, one might have no choice but to hold same views. However, when a holistic view is taken of the entire scene, one observes that the future of the Nigerian economy vis-a-vis global shale development is not as bleak as is widely believed. The only market Nigeria has lost is the US market, there are still other markets. Also, shale would not live up to its hype".

NIGERIA: Shell Lifts Force Majeure

The Shell Petroleum Development Company of Nigeria (SPDC) has lifted the force majeure on Bonny Light exports, effective yesterday following the repair of recent spill points on the Trans Niger Pipeline (TNP).

A statement issued yesterday by SPDC spokesperson, Precious Okolobo, noted that the force majeure was declared on October 10 as a result of production deferment from the spills which were recorded on the 24-inch line of the TNP. He stated that "about 2,200 barrels of oil were spilled, of which more than 1,500 barrels have since been recovered. Further remedial measures, clean-up and repairs are continuing".

He said arrangements for payment of compensation were being made in conjunction with the people in Bunu-Tai and Nonwa-Tai, the two communities which the joint investigation confirmed were impacted by the spill.

ANGOLA: Oil Companies to Pay More Taxes

The Angolan government through Executive Decree No. 333/13 is set to increase the taxes payable by oil companies operating in the country.  The decree imposes a consumption tax on petroleum companies that will raise some costs by as much as 10 percent.

The law requires companies to follow a tax schedule that adds five percent to most services and supplies and double that for equipment rentals.. The law is to come into effect with its publication.

Zambia to reissue dormant petroleum exploration licences

Zambia plans to revoke and reissue petroleum exploration licences that have lain dormant since they were granted in 2010. Ministry of Mines, Energy and Water Development permanent secretary, Victor Mutambo said bidders had been selected for ten blocks to be re-licensed later this month. He said exploration had stalled as most of the companies granted licences lacked the necessary skills and were hoping to sell the blocks at a profit. "To some, we have already issued default notices because, if you hold a licence and you do not do anything, it means speculative tendencies and, doing forward, we just have to cancel these licences and re-advertise them", Mutambo told African Energy.

KENYA: Apache to Exit Kenya

Apache Incorporation, a US independent firm, plans to exit its sole asset in Kenya. The company holds a stake in Kenya's offshore Block L8. Apache plans to focus on projects elsewhere around the world.

Apache was part of the partnership comprised of Tullow Oil, Origin Energy, and Pancontinental Oil & Gas, that discovered Kenya's first natural gas offshore the East African country with the drilling of the Mbawa-1 well. The gas find was non-commercial.

According to Patrick Cassidy, a spokesman for Apache, "this move is part of the company's overall re-balancing program announced earlier this year".

LIBYA: ENI Seeks Increase in Production from Bouri Field

ENI is working on plans to increase the production of its Bouri field which is run by the Mellitah Oil & Gas Co, a JV between ENI and NOC. The Bouri field is currently producing almost 40,000 bpd, and the plan, which involves the launching of new drilling technology would add another 15,000 bpd to that within six months.

With the aid of Schlumberger, the JV company is introducing new drilling technology. Within six months, some 12 wells would be upgraded which would boost output by between 12,000 bpd and 15,000 bpd.

NIGERIA: Oil Spill Aftermath:Shell Shuts Down Trans Niger Pipeline

Shell Nigeria has shut down its Trans Niger Pipeline once again due to reports of leaks deferring 150,000 bpd of crude. The shut down comes just 10 days after Shell re-opened the pipeline. In a Reuter's report, Shell Nigeria spokesman Precious Okolobo said "the latest leaks were reported at B-Dere, Nonwa-Tai, and Bodo West, all in Ogoniland. (Shell Nigeria) shut the line as a precautionary measure and has also mobilized a spill response team.

It would be recalled that recently, there were reports of oil spillage in Ogoniland.

MADAGASCAR: Madagascar Oil Seeks Partner

Madagascar Oil is seeking a partner for its assets onshore Madagascar. The company in a recent presentation said it was looking to farm-out a portion of its 100% interests in Blocks 3105 (Manambolo Concession), 3106 (Morondaa Concession) and 3107 (Manandaza Concession).

The company's data consolidation of the exploration licences includes the incorporation of newly acquired seismic and seismic reprocessing that is nearly complete. Madagascar also plans to complete a new seismic interpretation and prospect generation by end of December, 2013. A data room will open in November and the company is targeting farm-out completion by the end of the first quarter of 2014.

SOUTH AFRICA: Oil Spill Response Ltd opens base in South Africa

Oil Spill Response Ltd (OSRL) has opened a new base in Saldanha Bay, South Africa. The base, which houses state-of-the-art well capping equipment designed to shut-in uncontrolled subsea wells was built to support regional and global response. This is surely a giant leap for Africa's capabilities to respond to oil spills.

The Saldanha capping stick is available to oil and gas companies across the industry through OSRL's Subsea Well Intervention Service(SWIS) which provides for swift subsea incident response around the world. The integrated subsea well intervention system includes four capping stacks suitable for international use and two hardware kits for debris clearance, BOP intervention and the subsea application of dispersant at a wellhead. The equipment can be used for the majority of known subsea wells in water depths up to 3,000 meters.

Robert Limb, Chief Executive of OSRL said "SWIS represents a transformational addition to OSRL's portfolio of services, helping our members prepare for and handle potential subsea well control incidents on a global scale. Members benefit from a world-class capping capability, supported by OSRL's industry-leading response and preparedness expertise. Our new facility at Saldanha has strategic significance in that we are now able to deliver advanced service in this region -  a development that is wholly consistent with our mission to enable the most efficient, safe and effective response to oil spills wherever they may occur".

SOUTH AFRICA: Construction Starts on South African LPG Project

Construction has officially started on South Africa's over US$ 130 million Saldanha LPG import and storage terminal, the Sunrise Energy Terminal. The project is aimed at countering LPG shortages in the Western Cape. It also aids in dismantling what Sunrise Energy MD Barthlo Harmse describes as a monopolized LPG supply chain market. Currently, LPG is transported from Secunda or Richards Bay to the Western Cape, which grows increasingly uneconomical.

Barthlo further stated that "the Sunrise Energy Terminal will be an open-access facility, meaning its infrastructure can be accessed by qualifying wholesale distributors, importers, traders or industrial LPG users, breaking the existing cartel and enabling new producers to enter the market".

Market contracts already awarded include the EPCm Jacobs Matasis and the marine engineering contract to consulting engineers PRDW, with Sunrise expecting up to 70% local spend.

NIGERIA: Another Oil Spill Happens in Ogoniland

Emergency response agencies and security operatives have been alerted to intervene in an oil spill that has occurred in Ogoniland, one of the oil producing communities in Southern Nigeria. The spill is reported to have occurred at Bunu-Tai, in Tai Local Government Area of Rivers State. This is happening 22 years after the first oil spill was recorded there.

In a 15 year period from 1976-1991, there were reportedly 2,976 oil spills of about 2.1 million barrels of oil in Ogoniland accounting for about 40% of the total oil spills of Royal Dutch/Shell company worldwide.