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Friday, 24 May 2013

Industry Conferences, Summits, Conventions 2013

The following are some exciting events on the oil, gas and energy scene in Eastern Africa and beyond. These are events I would recommend you attend if you are to get a better picture of what is going on in the region, as regards to energy.  They bring together stakeholders to discuss the latest trends, policy and activities in the energy industry. My favourite conferences in no particular order are:

The Ugandan Energy & Mining Conference
28th – 30th May 2013
Serena Hotel, Kampala, Uganda

The 2nd East Africa Oil & Gas Summit (EAOGS)
29th – 30th October 2013
The Hotel Intercontinental 
Nairobi, Kenya

The 4th Eastern Africa Oil, Gas & Energy Conference + Strategy Briefing
18th – 20th June 2013
The Hotel Intercontinental 
Nairobi, Kenya

The 2nd Tanzania Mining, Energy/Oil & Gas and Infrastructure Indaba.
2nd – 4th October 2013
Dar es Salam, Tanzania

East African Power Industry Convention
10th – 11th September 2013
Nairobi, Kenya

20th Africa Oil Week
25th – 29th November 2013
Cape Town, South Africa

Oil & Gas Summit Africa
18th – 20th August 2013
Maputo, Mozambique

Monday, 20 May 2013

Rwanda, Burundi power project gets financial boost

East African Power Pool to get a boost.

The construction of power interconnection between Rwanda and Burundi could soon begin after the two countries acquired a major financial boost from the European Union.

The two are planning a transmission line that will cover 62 kilometres in Rwanda and 81 kilometres into Burundi, in three years’ time. The Rwanda–Burundi 220 kV Interconnector is part of a larger ongoing multinational project to interconnect Kenya, Uganda, Rwanda, Burundi and the Democratic Republic of Congo.

The project will cost of €37,7-million (US 44.7-million dollars) with the EU providing €16-million through the European Development Fund. It entails construction of a 143-kilometre 220 kV transmission line from Kigoma (Rwanda) to Gitega (Burundi) via Huye (Rwanda) and Ngozi (Burundi).

Sunday, 19 May 2013

Essar's Kenya refinery upgrade plan faces closure threat

Next week, a meeting between the Kenyan Government and Essar Energy will decide the fate of the 50-year-old refinery.

* Essar Energy plans to pump in nearly $1 billion for upgrading KPRL

* Next week, a meeting between the shareholders, the government and Essar Energy will decide the fate of the 50-year-old refinery
* The Mombasa refinery is the only refinery in Eastern Africa
* It produces LPG, gasoline, diesel, kerosene, and fuel oil
* KPRL last week, reportedly warned that it may soon be unable to refine petroleum products owing to severe financial constraints
* Kenya's Energy Regulatory Commission (ERC) has said that operations of the refinery are hurting the ordinary consumer.
* Essar Energy said decisions on the next step will depend on the board of KPRL

Even as Essar Energy plans to pump in $1 billion for upgrading its Mombasa-based Kenya Petroleum Refineries Ltd (KPRL), the future of the refinery is said to be under threat. Next week, a meeting between the two shareholders, the Kenyan Government and Essar Energy, would decide the fate of the 50-year-old refinery, with a closure on the cards.

The Mombasa refinery is the only one in Eastern Africa and the first international one acquired by any Indian company. At present, it produces liquefied petroleum gas (LPG), petrol, diesel, kerosene, and fuel oil. The refinery is planned to be upgraded by adding secondary units at a project cost of $400-450 million.

Last week, KPRL reportedly warned it might soon be unable to refine petroleum products, owing to severe financial constraints. Kenya’s Energy Regulatory Commission said operations of the refinery were hurting the ordinary consumer.

“The KPRL refinery is continuing to operate as normal. We can’t comment on speculation appearing in the media,” Essar Energy said in a statement. Extensive studies had been carried out by external consultants into the technical, economic and funding elements of any potential upgrade. “The two shareholders, Essar Energy and the Kenyan Government, continue to work together and decisions on the next step will depend on the board of KPRL,” an Essar Energy spokesperson said.

As part of its global expansion plans, Essar Energy had, in 2009, acquired 50 per cent stake in KPRL from Royal Dutch Shell, BP and Chevron. The government of Kenya owns the rest.
The refinery processes crude oil imported from the Persian Gulf region for marketing companies. KPRL’s primary products include LPG, unleaded premium gasoline, regular petrol, automotive gas oil, industrial diesel, fuel oil and special products like bitumen and grease.
KPRL’s products are sold in the Kenyan market and exported to neighbouring countries, including Tanzania, Uganda, Burundi, Rwanda, South Sudan & Eastern DR Congo.

In June 2012, KPRL signed a financing agreement with Standard Chartered Bank to help the refinery roll out its business transformation plan. The agreement would enable KPRL to access $250 million and transform the toll refinery to a merchant refinery. “This facility would be utilised for our working capital requirements. We will now be able to procure oil, process it and sell the petroleum products to marketing companies,” Brij Mohan Bansal, chief executive, KPRL had said.

At present, KPRL gets crude oil from oil marketing companies. A merchant refinery would enable KPRL to purchase its own crude oil. The refinery processes 1.6 million tonnes of crude oil a year. After the transition, it would process Murban crude from the United Arab Emirates. It would also be able to handle crude oil from cheaper sources. The refinery would continue to focus on servicing the main Kenyan market, the most dominant in the region. Kenya has a demand of about four million cubic metres per year.

Closure of the refinery would be the best commercial decision according to industry analysts and insiders, but a very wrong geostrategic move for the Kenyan Government and East African region as a whole. I foresee a tug of war between the Kenyan government wanting the refinery to be kept running at all costs, while Essar insisting that it can only remain open under certain very tight terms and conditions. Terms off course in favour of Essar, considering they are the ones who will be putting money into the refinery..

Thursday, 9 May 2013

BP ups its stake in southern Africa

British Petroleum (BP) says it will invest R5-billion (about US 558-million dollars) in South Africa and Mozambique over the next five years in new and on going infrastructure upgrade projects to improve business efficiency, and to help government objectives to enhance energy security and enable the transition to cleaner fuels.

Refining and marketing chief executive Iain Conn told press R800-million will be invested in Mozambique, and R4,7-billion in South Africa on various projects including refinery, terminal and retail network assets. About half will be spent in upgrading and modernising the refinery infrastructure at Sapref in KwaZulu-Natal, a joint venture with Shell. 

The infrastructure upgrade will primarily be to comply with South Africa’s proposed clean fuels requirements.

Over R1-billion is to be invested in terminals in South Africa and Mozambique, with the balance of the investment in the retail network.

India funds Uganda power project

The Indian government is to finance the construction of the 180 megawatt (MW) Isimba hydro power project with a US 450-million dollar loan to boost Uganda's power generation.

Isimba will be the fourth largest hydro power project in Uganda. Other projects are 

1. the 600 MW Karuma dam, 
2. the 600 MW Ayago power station and 
3. the 250 MW Bujagali power project, which was switched on last year.

On Karuma Dam also read:

Wednesday, 8 May 2013

Anadarko finds new gas field off Mozambique

Anadarko Petroleum says it has discovered a new natural gas field within Offshore Area 1 of the Rovuma Basin, Mozambique.

Bob Daniels, senior vice-president of Anadrako’s worldwide exploration, says the company is designing a two-well appraisal programme to define Area 1’s extent of the Orca field, which will start immediately after drilling the Linguado and Espadarte exploration wells. Orca is a single, large Paleocene column and its proximity to shore provides additional options for potential future development. The corporation drilled Orca-1 exploration well to a depth of  4,996 m in water depths of 1,061 m.

Anadarko is the operator in the Offshore Area 1 with a 36.5% working interest. Co-owners include Mitsui E&P Mozambique Area 1 Limited (20%), BPRL Ventures Mozambique BV (10%), Videocon Mozambique Rovuma 1 Limited (10%) and PTT Exploration & Production Plc (8.5%). Empresa Nacional de Hidrocarbonetos EP’s 15% interest is carried through the exploration phase

Somalia to sign off oil exploration contracts

The head of Somalia’s state-owned Somalia Petroleum Corporation has said that the country plans to sign 30 oil and gas production-sharing contracts this year.

Three of the international companies operating in Somalia in the 1980s – Royal Dutch Shell, Eni and ConocoPhillips – are reportedly saying they are ready to operate again in Somalia.

BP is also said to indicate interest. The government in Mogadishu is reviewing legislation to manage oil and gas exploration and exploitation.

Monday, 6 May 2013

Anadarko Hits A Dry well Offshore Kenya, But..

American independent Anadarko has completed drilling its Kubwa well in the L-07 Block offshore Kenya, which encountered non-commercial oil shows in reservoir-quality sands.

It’s the company’s first probe of Kenya’s deepwater, and the second well in the terrain in eight months. The Mbawa South well in Block 8, drilled in third quarter 2012 by Apache Corp., another American independent, encountered 53metre net gas pay, making it the first hydrocarbon discovery offshore Kenya, but Apache itself is not particularly excited. The company’s carefully worded statement simply says: “We have a 50-percent interest in the block and continue to analyze the well data to determine future exploration activities”.

Anardako, however, is more forthcoming in its announcement of the result of Kubwa, even though the hydrocarbon found is non-commercial and the footage is not even disclosed. “We are very encouraged with our first test of Kenya’s previously unexplored deepwater basin, in which mudlog and well-site evaluation of core data indicates the presence of a working petroleum system with reservoir-quality sands,” said the company’s Sr. Vice President, Worldwide Exploration Bob Daniels. “The Kubwa well tested multiple play concepts and provided useful data regarding the prospectivity of our six-million-acre position offshore Kenya. The rig will now mobilize south to drill the Kiboko well.”

Anadarko operates the L-07 Block with a 50-percent working interest. Co-venturers in the L-07 Block include Total E&P Kenya B.V. (40 percent) and PTT Exploration & Production Plc (10 percent).

Friday, 3 May 2013

Rwanda: World Bank Boosts Energy Programme With U.S. $60 Million

The World Bank recently signed a financing agreement with Rwanda, which will see the global bank boosting the country's energy rollout programme with $60 million (approx Rwf38bn).

The money is an additional financing loan agreement under the International Development Association (IDA) and will go to the Electricity Access Roll-out Programme (EARP).
The 30-year loan agreement was signed between the Minister of Finance and Economic Planning, Amb. Claver Gatete and Carolyn Turk, the World Bank country manager.
"The agreement will avail the $60 million to bridge the financing required to maintain EARP's momentum as the Government of Rwanda continues to mobilise additional resources to scale up household connections," said Gatete.

Government plans to have connected at least 70 per cent of the country's households to the national power grid.

About $45 million of the World Bank grant is allocated for improving the general national grid roll-out while $5m will go to green connections, which involves supporting a range of activities to scale up affordability for consumers, and promote energy efficiency and productive use, according to a statement from the ministry.

The remaining $10m is dedicated to enhancing technical assistance during the implementation of the programme.

"We appreciate the brave steps the Rwandan government has continued to take in providing reliable and affordable energy to its people and this is what has encouraged us to continue partnering with it," Turk pointed out.

The programme will be implemented by Energy, Water and Sanitation Authority (EWSA) and will build on the EARP phase 1 and provide connections to an additional 48,000 households over the next three and half years.

The original programme supported by several partners, particularly the World Bank, saw USD 357 million mobilised for the phase 1 programme.

EARP is a multi-donor programme that has mobilised a total of US$348.2 million for the initiative since 2009.

By Ivan Ngoboka, The New Times

Thursday, 2 May 2013

2nd East Africa Oil and Gas Summit (EAOGS) - 29-30 October 2013 in Nairobi

Sponsors and supporters sign up en mass for The 2nd East Africa Oil and Gas Summit (EAOGS) taking place 29-30 October 2013 in Nairobi

The 2nd East Africa Oil and Gas Summit (EAOGS) announces a host of new sponsors and supporters for the Summit taking place in 6 months’ time at the Intercontinental in Nairobi.  Afren and Ernst and Young have signed up as Platinum Sponsors, Africa Oil and ABS as Gold Sponsors, Aggreko and Simba Energy as Bronze Sponsors and Afex Group as Associate Sponsor. EAOGS is also supported by leading industry and government associations including The Eastern Africa Chambers of Commerce, UKTI, Delegation of German Industry and Commerce in Kenya  and the US Commercial Service.

‘We’re delighted by the response from sponsors and supporters for this year’s EAOGS and it’s clear that the event has really made its mark as the most prestigious Oil & Gas Summit for the East Africa region’ said Danny Grogan from the organisers Global Event Partners (K) Ltd. ‘We had excellent feedback from the EAOGS 2012 participants and we’ve had a lot of interest from international and local companies, so the Summit is set to be a huge success’ added Grogan.

The EAOGS 2013 conference will bring together regional National Oil Companies, Ministries, IOC's, independent oil companies, service companies, legal advisors and investors to debate the oil and gas road map for the region. The Speaker line-up so far features Hon Stephen Dhieu Dau, Minister of Petroleum and Mining, South Sudan, Elly Karuhanga, Chairman of Uganda Chamber of Mines & Petroleum, Galib Virani, Director, Afren East Africa Exploration, Keith Hill, CEO, Africa Oil and Lex Huurdeman, Senior Expert, Oil, Gas and Mining Policy Unit, SEGOM - World Bank. The full list of confirmed speakers and the latest programme and 2013 brochure are available to view on the website.

EAOGS 2013 will build on the success of the 2012 Summit which was co-hosted by the Ministry of Energy, Kenya and Global Event Partners (K) and was a resounding success welcoming 326 delegates from over 170 regional and international companies attended with delegates coming from 29 countries.

Press contact
Rosie Topp, Global Event Partners
UK Direct line: +44 20 3488 1193
UK Mobile: +44 7581 130130

UK Direct line: +44 20 3488 1193 UK Mobile: +44 7581 130130

EAOGS is organised by Global Event Partners (K) Ltd and is part of Global Event Partners Ltd headquartered in London. Global Event Partners Ltd has more than 40 years’ experience of delivering events of the highest quality and at the highest level for the oil & gas industry, specifically working in Africa for the past 12 years.

Corporate website :            Event website