East African energy boom investments to take focus in budgets

Kenya, Uganda and Tanzania plan to allocate money in their annual budgets to spur investment in infrastructure to exploit oil and natural gas from deposits that companies including Tullow Oil are developing.

Ugandan and Kenyan oil discoveries, made in 2006 and 2012 respectively, and new gas finds off the coast of Tanzania that have boosted reserves to as much as 46 Tcf have seen East Africa become a frontier for petroleum exploration.

The three countries, along with Rwanda, which are all members of the East African Community, will present their budget statements for the financial year starting July 1.

The Kenyan Finance Ministry said in its 2014 budget policy statement that the government wants to “fast track” building a pipeline to export the crude.

Kenya also expects to increase its spending on infrastructure by 15% $2.9 billion in 2014-15 from a year earlier, according to the Treasury’s budget policy statement.

Tanzania is building the $1.23 billion Mtwara gas pipeline project with a loan from the Export-Import Bank of China, while Statoil and BG Group, are working on a project to build a LNG export plant. The government plans to present new natural gas rules to parliament in November aimed at helping the country get more benefit from its natural resources.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Providencehelp Worldwide Foundation, online.

Eni granted three new permits in Algeria

Eni has been granted three prospection permits by Sonatrach, the Algerian state company. The permits authorize Eni, as operator, and Sonatrach to carry out prospection activities in the basins of Timimoun and Oued Mya, in onshore southern Algeria.

The three permits (El Guefoul, Tinerkouk and Terfas), issued from the national agency for the exploitation of hydrocarbon resources (Agence Nationale pour la Valorisation des Ressources en Hydrocarbures, ALNAFT), are valid for two years and cover a total area of 46,837 sq km. The work program includes studies and drilling of prospection wells to define the potential of the areas. The three areas are considered of great interest and potential.

Eni has been present in Algeria since 1981 and has interests in 29 exploration and development licenses, which are currently in production, and in 3 permits under development. Eni is the leading international producer in the country, with daily equity production of approximately 125,000 boe.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Providencehelp Worldwide Foundation, online.

Sonde seeks alternatives for Joint Oil block in North Africa

Sonde Resources reported the following operational updates of North Africa.

In March 2014, Sonde retained Taylor-DeJongh to initiate a process to explore and evaluate potential strategic alternatives to enhance shareholder value with regard to the Joint Oil Block. The process has included discussions with in excess of twenty international petroleum entities and financial institutions. Several interested parties have executed confidentiality agreements, met with management and staff and are evaluating the data provided in the virtual data room.

The preparations for drilling the Fisal-1 well have progressed. All long lead materials (casing and drilling support material) have been ordered and initial deliveries have arrived in Sfax, Tunisia (shore base).
 
Preparations are underway to perform the site surveys in anticipation of commencing drilling operations in early Q4 of 2014.

The 3D seismic survey acquired in late 2013 has been processed and initial evaluation of the data confirms the potential nature of the Hadaf structure in Libyan waters. Detailed interpretation work of the processed seismic data is underway.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Providencehelp Worldwide Foundation, online.