Sonatrach Hits Oil and Gas in Libya

Algeria’s state-run firm Sonatrach has knocked out a new discovery in Libya. NOC, Libya’s state-run firm reported that Sonatrach hit both oil and gas while drilling in the region of Ghadamech in southeastern Libya.

NOC reported that the field is expected to yield about 8,200 bpd of oil and 1.7 Mcm of gas per day once development gets underway.

No time frame was announced for the Sonatrach development.

Tullow Looks to Sell a Piece of TEN

Companies looking to get in on a sure thing in West Africa should take a look at Tullow Oil’s TEN development. The Irish independent is said to be looking at selling a piece of its stake in the project, located on Ghana’s Deepwater Tano Block, once government approval is received on the plan of development (PoD).

Tullow chief executive Aidan Heavey told Dow Jones Newswire that the company had already been approached by buyers for TEN, he declined to name those potential buyers however.

"It's a sellers market, we have a lot of interest, but we're very well financed so we have no pressure and no target date," he said in a telephone interview.

The TEN development, made up of the Tweneboa, Enyenra, and the Ntomme discoveries, culminated in the Declaration of Commerciality and the PoD being submitted to the Minister of Energy in November 2012. The current estimated capex cost for the base development plan, which includes around 23 injection and production wells, and excludes FPSO lease costs, is around $4.5 billion. First production is expected within 36 months.

The proceeds from the sale of part of Tullow's 50% stake will help to fund the company’s exploration in projects in Africa and elsewhere.

Kosmos Energy, Anadarko Petroleum Corp., South Africa's Petro SA and Ghana National Petroleum Corp. are also partners in the TEN project.

Tanzania to Award Acreage to Total

French oil and gas explorer Total should be adding to its East African acreage within the next few months. Tanzania’s Energy and Minerals Minister Sospeter Muhongo said the country is set to award the French firm acreage soon.

Muhongo told Bloomberg that Total had approached them and “we are going to issue licenses to Total” to explore in Lake Tanganyika, on the border with DRC. The permits will be issued in the “next few months,” the minister said.

The energy minister also commented on the delayed licensing round, which is expected to take place once Tanzania has its gas policy and legislation in place. The licensing round was expected to launch last September however TPDC was ordered to delay the offering of the nine blocks until legislation was in place.

“We have emphasized in this document that natural gas has to be of benefit to the citizens of this country,” Muhongo said. “Secondly, that the resources will be used wisely for today and for future generations and that the gas economy will be integrated in the national economy.”

Among the benefits Tanzania hopes to draw from its natural gas wealth is to more than double electricity production to 3,000 MW by 2015.

Kenyan Acreage Coming Up for Grabs

The for oil and gas exploration Kenya has been dangling in front of investors should be officially on the auction block before the end of Q1, possibly as soon as the end of February. According to Patrick Nyoike of the Energy Ministry as many as nine oil and gas exploration licenses will be up available.

Chevron and ENI are said to be interested in investing in some of the blocks Nyoike told reporters. Some of the acreage was relinquished by operators in the country, while others are being repackaged for sale.

The licenses will be offered “as soon as we get the coordinates right,” he said. “I am talking about this month. Many companies have showed interest.”

Source for articles above: Petroleum Africa