Prelude FLNG Facility – Shell’s Largest Facility to Produce Gas

Prelude FLNG Facility is the world’s largest floating liquefied natural gas platform as well as the largest offshore facility ever constructed

What is the history of FLNG?

Experimental development of offshore LNG production began in the mid-1990s. Mobil developed a FLNG production concept based on a square structure with a moon pool in the center, known as ’The Doughnut‘, in 1997. Following that, major projects conducted by the EU and major oil and gas companies made great progress in steel concrete hull design, topside development and LNG transfer systems. The first completed FLNG production facility was the PFLNG Satu, off the shore of Sarawak in Malaysia.

Since the mid-1990s, Shell has been working on its own FLNG technology. This includes engineering and the optimization of project developments in Namibia, Timor Leste/Australia, and Nigeria. In July 2009, Royal Dutch Shell signed an agreement with Technip and Samsung allowing for the design, construction and installation of multiple Shell FLNG facilities.

Shell’s Prelude facility is set to be the biggest one ever.

Prelude – What is the future of FLNG?

Launched in 2013, Prelude is Shell’s first FLNG facility. She recently reached a significant milestone when gas was introduced onboard for the first time. The Gallina, an LNG Carrier from Singapore, shipped the gas to the facility and utilities can now switch to run on gas rather than diesel.

Prelude is now on location, 475km (295 miles) north-north east of Broome, Western Australia, in around 250 metres of water. Once operating, Prelude FLNG facility will produce and liquefy natural gas from the Browse Basin. Once fully operational, the project will deliver LNG to Shell’s customers around the world while creating significant economic and social benefits for Australia. They include hundreds of jobs, tax revenues, businesses opportunities for local companies, and community programmes.

Prelude’s hull is 488 metres long (1,600 feet). Despite its large proportions, the FLNG facility will take up just a quarter of the footprint of an equivalent land-based LNG plant. She is designed to remain at sea for around 25 years in severe weather conditions and even withstand a category five cyclone. FLNG facilities can then be re-deployed to develop new gas fields.

FLNG technology offers countries a more environmentally-sensitive way to develop natural gas resources. Prelude will have a much smaller environmental footprint than land-based LNG plants, which require major infrastructure works. It also eliminates the need to build long pipelines to the mainland.

Conclusion

In conclusion, it is worth noting that over the lifespan of Prelude FLNG facility, the project is expected to add billions of revenue to Australia’s economy, create hundreds of direct and indirect jobs, spend billions on Australian goods and services and improve the country’s balance of trade through export of LNG, LPG and condensate.

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Introduction to Oil and Gas Industry – Uncovering the oil and gas industry

Oil and gas industry is considered being the biggest sector in the world in terms of dollar value. Therefore, introduction to the oil and gas industry allows you to understand a global powerhouse sector. The industry is using hundreds of thousands of workers worldwide and generating hundreds of billions of dollars globally each year.

In regions which house the major NOCs, these oil and gas companies are so vital they often contribute a significant amount towards national GDP.

In this introduction to the oil and gas industry, we provide a snapshot of the petroleum sector.

Introduction to Oil and Gas Industry -3 Sub Sectors 

The energy sector has three key areas: Upstream, midstream and downstream.

What is upstream?

Upstream is E&P (exploration and exploration). This involves the search for underwater and underground natural gas fields or crude oil fields and the drilling of exploration wells and drilling into established wells to recover oil and gas.

What is midstream? 

Midstream entails the transportation, storage, and processing of oil and gas. Once resources are recovered, it has to be transported to a refinery, which is often in a completely different geographic region compared to the oil and gas reserves.  Transportation can include anything from tanker ships to pipelines and trucking fleets. 

What is downstream?

Downstream refers to the filtering of the raw materials obtained during the upstream phase. This means refining crude oil and purifying natural gas. The marketing and commercial distribution of these products to consumers and end users in a number of forms including natural gas, diesel oil, petrol, gasoline, lubricants, kerosene, jet fuel, asphalt, heating oil, LPG (liquefied petroleum gas) as well as a number of other types of petrochemicals.

What are the largest volume products? 

The largest volumes of products of the oil and gas industry are fuel oil and gasoline (petrol). Petroleum is the primary material for a multitude of chemical products, including pharmaceuticals, fertilisers, solvents and plastics. Petroleum is therefore integral to many industries and is of critical importance to many nations as the foundation of their industries.

Introduction to Oil and gas industry: 2020 Outlook

In consideration of industry low’s, such as the price collapse in 2013 and major environmental disasters such as the Deepwater Horizon Gulf Of Mexico Oil Spill in 2014, the oil & gas sector has now recovered. 

The world’s dependence on oil and gas is increasing as global economies and infrastructure continue to rely heavily on petroleum-based products. Discussions of when world oil and gas production will peak seem to be on the periphery, even amid a weakened global economy and the shrinking availability of oil.

The oil and gas industry continues to wield incredible influence in international economics and politics – especially in consideration of employment levels in the sector, with the U.S. oil and gas industry supporting at least 10 million jobs.

OPEC and non-OPEC Agreement

The recovery occurred for several reasons, but the chief among them is the success of the production restraint agreement between OPEC and non-OPEC nations. In addition, developing nations such as China, Brazil and Russia are increasing exploration and production efforts. However, geopolitical considerations such as the ongoing troubles in Venezuela, Iran, and Qatar’s exit from OPEC will influence oil and gas supply. 

The trend towards renewable and alternative energy is another threat to traditional oil and gas companies. Coupled with the rise in pro-eco legislation and governmental pressure has meant the industry is under more scrutiny than ever.

Generating electricity from solar power systems and offshore wind is becoming increasingly cheaper and cost-effective. According to IRENA, over 80 percent of newly commissioned renewable energy will be cheaper than new oil & natural gas sources. 

More recently, there has been a resurgence of confidence in the industry as it enters its fourth year of recovery. Growth is increasing at a remarkable rate, as increased upstream production continues to have a positive knock-on effect for midstream businesses.

Price of Crude Oil

The price of crude has also stabilised – steadying at around $50 per barrel. In addition, 110,000 jobs are expected to be created in 2020 and the number of active drilling rigs in the U.S. has increased to 780+ compared to 591 from a year ago. 

The UK continental shelf also appears to be back, with the potential to unlock dozens of undeveloped discoveries with drilling prospects on the horizon. Additionally, we can expect an improved outlook for UK upstream production.

The UK offshore sector is expected to improve after historical lows in the past few years as there are 16 planned greenfield projects with identified development plans and 29 announced greenfield projects forecast to start production between 2019 and 2025.

Introduction to Oil and Gas Industry – Conclusion

In conclusion, it is estimated that 30 billion barrels are consumed globally each year, primarily by developed nations. Oil also accounts for a significant percentage of energy consumption regionally from 32% for Europe and Asia, 40% for North America, 41% for Africa, 44% for South and 53% for the Middle East.

In this introduction to the oil and gas industry resource, you will find Upstream Award’s top-rated oil and gas industry content including articles, videos, webinars, podcasts and in-depth reports. You can find the latest content in the sidebar on the right.

Upstream Awards website is an online portal dedicated to providing the latest intelligence for the oil and gas community from across the world. We explore oil and gas industry developments and facilitate the continued learning of oil and gas professionals.

Our online oil and gas content offers a slew of technical and strategic oil and gas industry conferences across Africa.

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Golf Tournament Food Guide – 3 Key Meals You Should Eat During Upstream Golf Tournament

Eating healthy food during or before a golf tournament is important to you as a golfer. This golf tournament food guide is important to help you know what to take for breakfast, lunch and dinner. It ensures that they take the right food and at the right time. This is key especially during a golf tournament.

Anybody who has been involved with either running or organizing a golf tournament knows that the actual golf is a very small part of a larger event.

Many times, more people attend the dinner and awards reception than those who actually play in the tournament. Why? Because not everybody plays golf, but everybody eats!

In this article, we go over the dos and do not’s of arranging your tournament’s food & beverage order.

Breakfast Golf Tournament Food Guide

The most important meal of the day, right? Right! As a golfer, set yourself up for success with arranging a breakfast prior to tee off. The beauty of breakfast is that your options are open, it’s easy to find something that fits perfectly with what you want to do.

Another beauty of a golfing breakfast? It’s usually one of the most cost effective options to add value to your tournament. To keep things simple, a continental breakfast will keep everybody happy with only standard continental breakfast items and coffee/ juice varieties.

You can also have a classic breakfast buffet with scrambled eggs and the regular breakfast favourites.

Lunch – Golf Tournament Food Guide

As with breakfast, you have so many options with lunch, you can tailor your choice to fit exactly what you want. If you were going to include lunch prior or during play, your two best options are: either a classic box lunch or a BBQ lunch at the turn.

The box lunch standard includes: a deli sandwich, bag of chips, cookie, and bottled water. Vegetarians or tuna sandwiches are often add-ons… typically box lunches are split between ham and turkey. The box lunch is a great way for you as a players to have a portable option that you can pick up and put away as they like.

BBQ Lunch

A BBQ lunch at the turn is something easily done, as long as it is coordinated well with the golf course staff. Many courses have BBQ grills that can be set up in high traffic areas of the course.

You will get a lunch ticket for the BBQ station, and the player can pick up a hamburger/chicken burger, any sides provided, and something to wash it all down. For something a little more formal, arrange a buffet lunch for prior to or following the tournament.

Buffet options will typically range from a BBQ-style buffet similar to what is mentioned above, to a ‘Build-Your-Own’-style taco and fajita buffet, a classic American buffet with roasted tri-tip and marinated chicken, or even a trip through Italy with your choice of pasta and chicken parmigiana.

The golf course will usually be more than happy to work with you on a specialized lunch tailored to your needs. Lunch is an important part of golf tournament food guide. When ordering a buffet, be sure to clarify with the golf course on what food items are/are not subject to an extra sales tax or service charge. To save yourself from any surprises on the day of, just ask your tournament manager to include all taxes and service fees within the overall price per guest.

Upstream Golf – Dinner After Playing

You made it! You have had a long day and I can bet that you are starving. Don’t miss out on a great opportunity to network with other guests and have a great reception.

As mentioned previously, golf is only a small part of the upstream tournament day. It is best to think of the tournament as a full event and not just a ‘golf tournament.’

You’ll be surprised at how many people show up for the dinner who did not actually play in the tournament, and knowing this, the dinner and awards ceremony are another opportunity to network, fundraise, and get to know more people. 

Appetizers at tournament reception dinners are typically served buffet-style unless servers are pre-arranged with the food and beverage team. You will also enjoy a full dinner meal as well as drinks.

The golf awards and reception dinner is the highlight of the upstream golf event. This is where everyone gathers to enjoy the food, the prize awards ceremony, the raffle, and announcements.

It marks the end of months of planning and hard work for our team. We take this opportunity to thank you for coming together to make the 2020 edition of upstream golf tournament a success.

We celebrate the conclusion of another great event and wish to remind you to save the date for next year! It will be held on Friday, 19th February, 2021at Sigona Golf Club.

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Project Oil Kenya – Are Tullow Oil & Total Bailing Out of Kenya?

The progress and development of Project Oil Kenya is being thrown into headwinds. This is with the intention by Tullow Oil to sell the entire stake in the Lokichar oil blocks.

This is a move that could present major challenges for the country. Kenya expected to start the commercial phase of the project later this year, leading to first oil in 2022.

Reports indicate the firm, which has been steering development of the Project Oil Kenya as the operator of the blocks, could be selling its entire stake in the blocks. This may throw a major curve ball for the country’s ambition to commercially produce oil.

Project Oil Kenya -JV Partners in South Lokichar Basin

According to reports, Tullow Oil the operator of blocks  Blocks 10 BA, 10 BB and 13T in the South Lokichar Basin wants to sell. The company together with its JV partner Total seeking for a partial or total equity change in their acreage sending mixed messages in the Kenyan nascent oil and gas industry.

The reports further indicate that the company was seeking to offload this equity by Q2 2020. This would throw in the wind the much anticipated final investment decision (FID) by the end of 2020.

It is understood the two partners have hired French bank Natixis to officiate the transaction of blocks. Tullow Oil, the Irish explorer having offered to sell 100 percent of its shares to a willing buyer unlike Total’s 50 percent share sale.

This is unlike the earlier expected to 20% of its 50% stake in the blocks with losses in Guyana and Ghana. Tullow has hinted that it would focus on the investment plans for each of the Group’s major assets in its second phase review having already restructured its executive management team.

The Kenyan Government has however downplayed the announcement saying it was only aware of the earlier intended farm-out and not the total exit.

“The Kenyan government is aware of Tullow’s plan, which is not expected to delay investment in production or the proposed pipeline,” Petroleum Principal Secretary Andrew Kamau

Tullow Oil & Total in East Africa

Tullow and Total continue to be major players in the East African Upstream Sector namely Uganda where they have discovered contingent resources are estimated to be around 1.7 billion barrels of oil.

In Kenya, Tullow estimates that the South Lokichar basin contains a recoverable resource range of 240 – 560 – 1,230 mmbo (1C–2C–3C).

In 2018 Tullow exited Block 12A after an unsuccessful Cheptuket well in the Kerio Valley leaving Delonex Energy as the operator.

Africa Oil is the other JV partner in the three blocks.

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Uganda Oil Exploration Licenses – Oranto Petroleum & Armour Energy Licenses Renewed

As part of Uganda oil exploration licensing process, the country’s Ministry of Energy and Mineral Resources has renewed exploration licenses for Nigeria’s Oranto Petroleum Ltd (OPL) and Australia’s Armour Energy. This is after the two licensees fulfilled the work programme for the first phase of the four years license.

Uganda Exploration Licensing – Armour Energy

According to Armour Energy, during the first two years starting 2017 it accomplished various commitments. These includes: desk top hydrocarbon studies, purchase of previously gathered seismic data and reprocessing of same as well as soil sampling for geo-chemical analysis.

The company has in the second year of operations also was in the process of acquiring just over 100 kms of 2D seismic according to its Review of operations and activities for the year ended 30 June 2019 report.

According to the company, the second phase will provide a further 2 year exploration period. During this period, it is planned that an oil well will be drilled subject to the outcome of the current 2D seismic program and funding.

DGR met the tenement expenditure and work program commitments for the first two year period and indemnify Armour for these costs.

Oranto Petroleum Extension

For Oranto, the first exploration phase carried a minimum work program which included undertaking 2D and 3D seismic shooting and reprocessing and amplitude versus offset (AVO) studies.

Following the first of it’s Uganda oil exploration licensing period, Oranto has the option to renew the agreement and commence a second exploration period consisting of additional seismic data acquisition, the drilling of one exploration well and the drilling of one appraisal well contingent upon the success of the first well.

The first two years for Armour ended in June 2019 while Oranto ended in October 2019.

“The first two years period ended in October and they fulfilled the work programme which includes technical studies and using 2 Dimension technology. The minister renewed their licences for the second two years period where they are expected to drill wells,” Gloria Sebikari, spokesperson for the Petroleum Authority of Uganda.

Uganda’s SME’s will benefit from the ongoing exploration work in the country. There are efforts towards ensuring they are ready and have capacity to engage in upstream business.

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Uganda Oil and Gas – SMEs to Benefit from $100 Million Funding

The Uganda oil and gas industry is going to benefit from a facility marked to improve the skills of the small and medium-sized enterprises in the upstream industry.

The Skills Development Facility (SDF)  is part of the US$100 million Uganda Skills Development Project (USDP). This facility provides an opportunity for Small and Medium Enterprises (SMEs) interested and/or engaged in the Oil & Gas business. The SMEs can use the facility to skill the workforce and enhance their competitiveness.

SDF is a Government of Uganda Project funded by the World Bank and implemented by the Private Sector Foundation Uganda (PSFU).

The facility aims at promoting employer-led short-term training in order to address prevailing skills imbalances and shortages in Uganda.

The Oil & Gas Industrial Baseline Survey (IBS) has identified the skills demand and supply in Oil & Gas related sectors that need to be enhanced for the competitiveness of local companies.

The Workforce Skills Development Strategy & Plan for the Oil & Gas sector in Uganda forecasts that there will be a very rapid demand for labour at Basic Skills & Entry, Trades & Crafts and Technician Levels, particularly in construction, logistics & transport and catering and camp management services.

The Uganda Oil and Gas Funding

PSFU is inviting eligible enterprises to apply for the SDF Window 1 (Skills shortages in the formal sector).

The Facility is focusing on six priority areas, including Agriculture, Construction, Manufacturing /auto mechanics. Transport & Logistics, Information & Communication Technology (ICT) and Tourism& Hospitality.

Funding Windows

PSFU invites applications for the SDF grants https://www.sdfuganda.org/sites/default/files/PSFU%20SDF%20100120%20-HP.pdf.

Activities in Window 1 includes practical & technical training programs, apprenticeship & internship, voucher scheme for industries with mobility of workers for those intending to participate in it.

In terms of grant contribution from PFSU, the ceiling is $250,000 covering a range of up to 80% for (Medium companies), up to 50% for the (Large companies) up to 90% for (Voucher Scheme) and up to 100% (Internship).

An important element of the initiative is to facilitate collaboration between training providers and industry to promote demand-driven skills development with special attention to innovative modes of training.

Paying back?

SDF is a grant and not a loan. Support provided under SDF is not required to be paid back. Beneficiary companies will have to contribute a percentage of 20%-50% depending on their scale of operation.

How to Apply for Uganda Oil and Gas SME Facility

Visit the Private Sector Foundation Uganda (PSFU) website: www.psfuganda.org./opportunities or www.sdfuganda.org/ funding windows/window1

Click; apply now, carefully study the requirements, fill the application and submit.

Timeframe

The deadline for submission of applications will be Wednesday, 14th February 2020 at 12 O’clock. Late submission will not be accepted.

About SDF – Uganda Oil and Gas

The facility is a 5-year project implemented through a Grant Facility mechanism that will be co-financed by the private sector through a matching grant contribution, and support training activities that lead to improved productivity and competitiveness in the formal and informal sectors.

This requires strategic partnerships between firms, service providers and industry associations.

The focus will be on short-term, practical and technical training of employees (including business skills for the informal sector) ranging from few days to not more than six months

FYI; We shall be hosting the upstream awards in Uganda on the month of September, 2020. Watch out for this!

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