Angola’s Onshore Bid Round Attracts Global Interest With Multiple Bids
Angola’s oil and gas regulator, the National Oil, Gas and Biofuel’s Agency (ANPG) achieved an important milestone earlier this week, when it opened bids for its 2020 onshore licensing round. All of the nine oil and gas onshore blocks in the Lower Congo and Kwanza basins received bids from a variety of oil and gas operators, a rare result in an increasingly competitive and investment-shy global environment. Forty-five proposals from fifteen different companies were submitted to the national petroleum agency, totaling a proposed investment sum of over USD 1 billion for Angola’s oil and gas sector.
This initial bid round result demonstrates Angola´s potential to continually attract interest from investors into its oil and gas sector. The ANPG, backed by promising data about its onshore acreage, is seeking to replicate past success borne by Angola’s prolific offshore fields. The onshore sedimentary basins on offer, – namely, the Lower Congo and Kwanza – have long been home to world-class hydrocarbon discoveries. Naturally, the expectation is that Angola’s prolific offshore basins hold petroleum systems with corresponding onshore counterparts; indeed, early onshore exploration activities in Angola have led to the discovery of approximately 13 commercial-sized oil fields and one natural gas field, with reserves ranging in size between 5 and 40 million barrels of oil. Significant upside potential remains by tapping into deeper targets in both the rift and transitional phase reservoirs. The ability to unlock onshore acreage via advanced seismic and drilling technologies is what the ANPG expects will be the outcome of onshore exploration activity.
“From the initial data at our disposal, we believe strongly in the potential of the 9 blocks on offer. We look forward to finding the right partners for exploring them at the end of this process. It is our fervent hope that these blocks will play an important role in increasing Angola’s oil output in the future,” said Ms. Natacha Massano, Executive Director and board member at the petroleum Agency in charge of negotiations. The agency’s efforts in streamlining bidding requirements and cutting entry barriers by eliminating the one-million-dollar entry fee for companies wanting to bid, can be partially credited for the large turn-out.
Now, all proposals will be scrutinized by ANPG’s technical teams. Final official results are expected to be announced on August 25th, 2021.
“These promising early results are a good indication that the reforms made earlier to improve the operating environment in the Angolan oil and gas sector are bearing fruit” said Verner Ayukegba, Senior Vice President of the African Energy Chamber. “The ANPG has only been around for just under three years, and yet, they have been able to organize a bid round during a challenging pandemic. This is a testament of the commitment of the agency under the leadership of experienced oil veteran HE Paulino Jeronimo to stem the tide of declining production in Angola”, Mr. Ayukegba continued.
The proposals also included considerable commitments to the development of social and community projects, and the implementation of environmental protection measures to the tune of over several millions of dollars proposed commitments. These commitments are in reflection of the importance placed by the Agency to promote socially responsible and environmentally friendly exploration in Angola.
This tender is only yet another licensing round in line with Presidential Decree 52/19, which foresees yearly bid rounds until 2025. Angola’s regulator, the ANPG, is intent on attracting interest far beyond the traditional players in Angola’s oil and gas sector. Special attention has been given to attract mid-sized explorers to new exploration acreage Angola.
Oando Clean Energy Partners with Lagos State to Launch Electric Mass Transit Buses
Oando Clean Energy Limited has partnered with the Lagos State Government to launch electric mass transit buses in the city. The partnership aims to provide sustainable transportation options for commuters and reduce carbon emissions in the city.
The electric buses, produced in partnership with Yutong Bus Co Limited, are equipped with air conditioning and Wi-Fi for passenger comfort. Oando Clean Energy has also provided charging stations and spare parts to ensure the effective operation of the buses.
The partnership was formalized through a Memorandum of Understanding (MoU) signed between Oando Clean Energy and the Lagos Metropolitan Area Transport Authority (LAMATA). LAMATA is responsible for planning, implementing, regulating, and franchising sustainable integrated public transport in Lagos.
According to the MoU, the electric buses will be deployed as part of a larger Electric Vehicle (EV) Infrastructure Ecosystem that includes charging stations and other supporting infrastructure. This initiative is aimed at attaining a sustainable road transport system in Lagos State and bridging the gap in the current mass transit bus system for the increasing number of Lagos commuters.
Oando Clean Energy’s strategic vision is to decarbonize the transport system in Nigeria and strengthen the socio-economic impact of transportation within the country. The company aims to transition the current combustion mass transit buses to electric over the next seven years, starting in Lagos State and eventually across the country.
The launch of the electric buses in Lagos State is aligned with the Nigeria Energy Transition Plan (NETP) and supports the Government’s roadmap for EV implementation across Nigeria. The partnership also aims to boost local capacity in the medium term through the construction of EV assembly plants.
Apart from reducing carbon emissions and providing sustainable transportation options, the initiative is expected to lead to improved air quality, enhanced public health, and the employment of at least 3,000 new drivers and an additional 2,000 workers to support bus maintenance, depot management, etc. The initiative is also expected to result in estimated economic cost savings of US$2.6bn (3.6% of Lagos’s GDP).
The launch of the electric mass transit buses is a significant step towards achieving a sustainable transport system in Lagos State and Nigeria as a whole. It is expected to serve as a model for other African countries seeking to transition to sustainable transportation systems.
AKK Gas Pipeline: NNPC Ltd Invests Over $1bn in One of Nigeria’s Largest Projects
The Nigerian National Petroleum Company Limited (NNPC Ltd) has invested over $1 billion in the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project. This project is one of the largest projects undertaken by NNPC Ltd in recent years.
The AKK gas pipeline project is a 614-kilometer pipeline that will transport natural gas from Ajaokuta in Kogi State to Kaduna and Kano states.
Mele Kyari, the Group Chief Executive Officer of NNPC Ltd, announced that the project has not stopped for a single day since its commencement, despite the lack of third-party financing.
He added that NNPC Ltd has continued to fund the project, and the company has so far spent over $1.1 billion on the project from its cash flow.
Kyari stated that the AKK gas pipeline project is one of the most massive projects undertaken by NNPC Ltd, and it is of immense value to the country and the socio-economic growth of Nigeria.
He assured the Nigerian public that NNPC Ltd would deliver the project as planned. According to him, the project will create employment opportunities and boost the economy of Nigeria.
Kyari disclosed that NNPC Ltd currently owes no single dollar to its contractors, and the company has paid all their invoices.
He said that there are over 30 sites that are active today in the AKK gas pipeline project, and NNPC Ltd is optimistic that it will deliver the project.
The Vice President of Nigeria, Prof. Yemi Osinbajo, said that the AKK gas pipeline project was 43% completed last week. Osinbajo spoke through the Secretary to the Government of the Federation at a function in Abuja, where he reiterated that the project was a major project of the regime of President Muhammadu Buhari.
President Buhari inaugurated the AKK gas pipeline project in July 2020. During the inauguration, it was announced that the Bank of China and Sinosure, a Chinese export and credit insurance corporation, were to fund the $2.8 billion facility. However, NNPC Ltd has continued to fund the project without third-party financing.
Unauthorized Meter Use by Electricity Consumers Causing IBEDC an Average Loss of N130 Million Monthly
Unauthorized meter use by some electricity consumers in Ibadan is causing the Ibadan Electricity Distribution Company (IBEDC) an average loss of N130 million monthly.
This was disclosed by the commission after it lamented that illegal meters of about 15,000 existing in its network across the state have caused heavy revenue loss.
Investors King understands that these unauthorized meters used by some residents of the state are reported to consume energy, meanwhile, the IBEDC does not generate any revenue from it.
Commenting on the issue, the IBEDC regional head for Osun. Engr. Oluwatoyin Akinyosoye while speaking at a town hall stakeholder meeting in Osogbo, stated that in a bid to curb this menace, the company has stopped the installation of the illegal meters which use cards to load electricity since 2013.
In his words,
“To us as a company, this is a huge loss in our revenue because these illicit meters consume energy on our network, but the revenue is not coming to us. If we can curb these illicit meters, we know that we can plunge back the revenue to our purse to serve our customers better. These illicit meters were gotten through the backdoor, unknown to us till now. Most of these meters are the ones that you have to use a card for before you can load.
“As a company, we stop the installation of these types of meters since 2013. So, any other one installed between 2013 till now are illicit meters”.
Mr. Akinyosoye further urged those still using the unauthorized meter to report at the company’s office to address the issue, warning that those who fail to do so, would have their supply disconnected and be prosecuted.
It is however interesting to note that the Ibadan Electricity Distribution Company (IBEDC) is the largest electricity distribution company in Nigeria. Since it began operations in 2013, it has delivered electricity to millions of Nigerians across several states which include Oyo, Ogun, Osun, Kwara, and parts of Niger, Ekiti, and Kogi.
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