Nigeria’s Niger Delta E&P, Business and Future Opportunities · tancy and power plant operation...

Our ActiveJoint Ventures

PO Box 390 l Plot 496, Block 3K, off Airport-Ministries Road Thong Ping Area l Juba, South Sudan

www.nilepet.com

Nile Delta, a joint venture with Nigeria’s Niger Delta E&P, operates a pilot gas-to-power project and implements brownfield technology on our mature oilfields.

SIPET Engineering & Consultancy Services provides project consul-tancy and power plant operation and maintenance services.

Nile Drilling & Services is South Sudan’s first locally owned and operated oil and gas drilling company, and is due to begin operations in 2017.

NILEPETBusiness and

FutureOpportunities

Presented by: Santo Martino LakuDirector General for Exploration & Production ( E & P)www.nilepet.com

NATIONALPARTNERFOR PROGRESSAND PROSPERITY

Copyright © 2017 NILEPET. All Rights Reserved. www.nilepet.com

NILE PETROLEUM CORPORATIONThe Nation Oil and Gas Corporation of South Sudan Outline

Part III Business

Opportunities

Part I Corporation

Highlights

ProfileMission and Vision

OrganogramPetroleum Resources

Part II NILEPET

Core of Business

UpstreamDownstreamJoint Ventures


NILE PETROLEUM CORPORATIONThe Nation Oil and Gas Corporation of South Sudan

Corporation Highlights

Part 1



2003Established under the Civil Authority for New Sudan (CANS)

The company has ventured into Oil Upstream Activities and Downstream Activities

2011 to present

The vibrantNational Oil Company of South Sudanwith three active Joint Ventures

2009Incorporated under the New (South) Sudan Companies Act 2003

>

Technical & Commercial arm of RSS

Holds shares in JOCs (DPOC, GPOC and SPOC) on EPSA basis

Major supplier of fuel in the country

Corporation Highlight



Vision

To be a leading and competitive integrated oil and gas corporation, operating with focus on profitability and environmental and social responsibility.

Mission / We aim to:

Explore, develop, produce, add value and manage resources in an efficient and environmentally sound manner.

Promote the sustainability and growth of the national oil industry, safeguard the national oil interest and guarantee higher returns for the nation.

Develop capable and competent management and technical workforce. Be a socially responsible and environmentally-friendly business entity.

Corporation Highlight



Legal FrameworkWorking understrong legal framework:Transitional Constitution 2011Petroleum Act 2012Companies Act 2012 EPSA/TA 2012Over 500 employees

BOD

MD

Legal A D Security D

HSE D Int. Audit D

E&P D DS D JV D P. Econ. D Adm. & F D

Training & HD D

Nile Petroleum CorporationOrganogram



NILEPET Petroleum Resources in all blocks as per Jan. 2016 (MMstb)

PIIP = Petroleum initially in place / RF= Recovery factor / UR = Ultimate recovery / CR= Contingent resources / NP = Total production update

No Projects Client Contract Mode

Contract Duration Contract Status

1 Provision of Service Rigs DPOC Split Award 2 years + 1 On going

2 Provision of Drilling, Workover and Construction Manpower

DPOC Split Award

2 years + 1 On going

3 Provision of Line pipes DPOC Purchase and supply order

On going

4 Supply of production chemicals DPOC 2 years On going

5 Provision of drilling fluid and Engineering Services

DPOC 2 years On going

6 Provision of drilling Waste Treatment Services

DPOC Split Award

2 years On going

7 General Supply (Vehicles and office supply)

DPOC Purchase and supply order

On going

NILEPET Petroleum Resources



NILEPET Core of Business

Part 2



Upstream Master Plan

2012 – 2018

Petroleum Service Business

Joint Ventures initiationNationals Capacity Building

2011 – 2014

E&P BusinessJOCs ParticipationNationals Capacity Building

2012-2022

Stand aloneOperator




JOCspartnershipsHold shares in concessions

Monitor and evaluate JOCs

JOCs operational support

Maintain assets & facilities

Promote NILEPET to be astandalone operating company of South Sudan

Exploration and Production

National capacity buildingEstablishing Training and Excellency centers

Competency and career path building

Sector nationalization watch and monitoring

JOCs and JV secondment

Supportinggovernment Technical support of MOP

Safeguard national interest in JOCs

Environment and Communities protection

ServicedeliveryCreate vibrant JVs

Promote and retain competitive and transparent market

OJT and specialization building for national cadres

Revenue generation




Producing Blocks

DPOC / BLOCKS 3 AND 7 CNPC 41%, PETRONAS 40%, NILEPET (8+2)% SINOPEC 6%, TRIOCEAN (5-2)%

GPOC / BLOCKS 1,2 AND 4 CNPC 40% PETRONAS 30% ONGC 25% NILEPET 5%

Currently in Shutdown Mode

SPOC / BLOCK 5A PETRONAS 67.8%, ONGC 24.2% NILEPET 8%

Currently in Shutdown Mode

South Sudan Oil Concession Map


A3: Relinquished Area

DPOC: Development and production phase

B1: Exploration Phase

SPOC

ASCOM

GPOC



10 fuel stations(2,180,000 liters)

2 fuel storage depots(2,200,000 liters)

Regional fuel storage depots (3,000,000 liters)

LPG plant(5,200,000 scf)

Five year master planto cover the whole country

Downstream


Manage petrochemical products and infrastructure

Build and manage petrochemical products infrastructure in the country

Secure local consumption for fuel(900 million liters in 2015)

Establishing fuel and LPG retail outlets

Establishing fuel and LPG strategy depots storage

Set products quality assurance and laboratories

Aspire to supply aviation industry in the country



Expansion plan tocover states andregions of the country

34 Fuel stations

3 Strategic RegionalFuel Storage Depots

5 Operational Refineries

3 Regional LPG Plants

Downstream5 Year Master Plan




S/N JV Name Nilepet (%)

Other Partner (%)

Work Scope Establishment Date

Remarks

1

Dietsmann

51

South A. Co ( 49 )

Manpower provision

Operational

2 SIPET 51 QDC. ( 49 ) Ops & Maint. 2012 Operational

3 Nile Delta

51 Niger Delta ( 49 ) Gas Dev. + Prod opt.

2013 Operational

4 Nile Drilling

51 Kerui+Triton ( 49 ) Drilling & Services

2014 Operational

5 NLSC (Moloko)

51 SA + J. State ( 49 ) Multipurpose Semi-Opret.

6 East Pet 51 E. A O S ( 49 ) T. Studies. Suspended

Joint Ventures




BUSINESS MANDATE

GAS UTILIZATION & MONETIZATION“To propose solutions towards the elimination of gas flaring and the commercialization of gas through the implementation of gas production, processing, distribution, and sale projects in South Sudan”

CRUDE OIL OPTIMIZATION“To propose solutions designed to achieve the reduction of produced water, maintenance of reservoir pressure, and ultimately increase the volume of net crude oil production”


Joint Venture – Nile Delta


NILE PETROLEUM CORPORATIONThe Nation Oil and Gas Corporation of South Sudan SERVICE OFFERING

SUPPORT SERVICES

MANPOWERTechnical Service SupportField Service Representation

RISK MANAGEMENTEnterprise Risk Management

WASTE MANAGEMENTSkipsMud Cuttings Treatment

ARTIFICIAL LIFTESP, PCP supplyand maintenance

ENGINEERING

WELL ENGINEERINGDrilling, Completion, and Well Intervention Oil Field ChemicalsSand Control Drilling Fluid

PRODUCTIONCorrosion monitoringMetering

SUBSURFACE STUDIES

DATA MANAGEMENTData RepositoryGeosciences EvaluationSeismic InterpretationFDP Review and StudiesReservoir Surveillance and ManagementInfill Well Placement

WATER MANAGEMENTWater Source EvaluationEconomics

DOWNSTREAM

GAS DEVELOPMENTGas Flare-out SolutionsLPG Bulk Procurement and Distribution Strategy‘New’ Market Initiation

MODULAR REFINERYOptimal Product SlateContracting StrategyEPIC

HSE

ISO CERTIFICATIONISO 14000ISO 9000OHSAS 18000

HSE MANAGEMENTHSE Management Systems and CasesHSE TrainingHAZID/HAZOPEIADROPS Survey



PROVISION OF RIGS

PROVISION OF RIGSDrilling Rig1st 1000 HP ring in 2018

SERVICES RIGS1st 750 HP ring in 20171st 650 HP ring in 2018

EQUIPMENT SUPPLY

DRILLING EQUIPMENTDrilling BitsDrilling Jars

SUPPLY OF TUBULAR Supply of casingSupply of tubingSupply of line pipe

WELL HEAD AND X MASS TREES

MANPOWER SUPPLY

RIGS SUPERVISION AND MANAGEMENTDrilling SupervisorsWorkover SupervisorsDrilling and workover Superintendents

ENGINEERINGQuality ConsultantsEngineering Consultancy

SERVICE DELIVERY

PROVISION OF WELLS CEMENTING SERVICES

WELL STIMULATION AND INTERVENTION

DRILLING FLUID AND ADDITIVES

FIELD MACHINE SHOP


Joint Venture – SERVICE OFFERING



No Projects Client Contract Mode

Contract Duration Contract Status

1 Provision of Service Rigs DPOC Split Award 2 years + 1 On going

2 Provision of Drilling, Workover and Construction Manpower

DPOC Split Award

2 years + 1 On going

3 Provision of Line pipes DPOC Purchase and supply order

On going

4 Supply of production chemicals DPOC 2 years On going

5 Provision of drilling fluid and Engineering Services


6 Provision of drilling Waste Treatment Services

DPOC Split Award

2 years On going

7 General Supply (Vehicles and office supply)

DPOC Purchase and supply order

On going


Joint Venture – CURRENT PROJECTS


NILE PETROLEUM CORPORATIONThe Nation Oil and Gas Corporation of South Sudan NILEPET Core of Business

Joint Venture – SIPET

AREAS OF BUSINESS

THE COMPANY COVERS THREE MAIN AREAS OF BUSINESS:Operation & Maintenance Service (O&M)

Engineering, Procurement, Construction and Commissioning (EPCC)

Project Management Consultancy (PMC) Services



Joint Venture – SIPET EPCC Current Projects

Provides engineering services and support to various oil operating companies and EPCC contractors

Various engineering disciplines with expertise of multinational expatriates

Envisioned to expand into regional and international market

No Projects Client Contract Dura2on Contract status

1 EPCC for Field Surface Facili2es Contracts


2 Overhead HV Power Transmission Line (2014 – 2015)


3 BLOCK 3 & 7 FIELD IMPROVEMENT & NEW FACILITIES




Joint Venture – SIPET O&M Current Projects

O&M SUPERVISORS

O&M TECHNICIAN

SIPET is the major manpower suppliers to the Operating Companies in South Sudan.

Over USD 1 million contracting value to various clients

Clear Nationalization Plan

No. Contracts Undertaken Name & Address of Client

Contract Location / Country

Contract status

1 Provision of Operation & Maintenance (O&M) For Transmission System Power Plant - - Paloch

DPOC Melut Basin, Block 3/7 On going

2 Operation & Maintenance of Power Plant - Unity GPOC Unity Power Plant On hold due

to shut down 3 Operation & Maintenance of Juba

Power Plant SSEC Juba, Power Station On going

62%

38%

O & M Supervisor

Na5onals Expats

86%

14%

O & M Technician

Na5onals Expats

62%

38%

O & M Supervisor

Na5onals Expats

86%

14%

O & M Technician

Na5onals Expats

Nationals Expats

Nationals Expats



Business Opportunities

Part 3


NILE PETROLEUM CORPORATIONThe Nation Oil and Gas Corporation of South Sudan Business Opportunities

NILEPET Business Opportuni3es

! Relinquished and new blocks

! Produced Water

management

! Produc3on Technology and

Facili3es

! PE and G&G Studies

! Expansion on current JVs

scope of work

! Ini3a3ng new JVs

! Regional Foot Print

Partnership in implemen3ng 5

years master plan:

! Construc3on of Refineries

! Marke3ng of Petroleum

Products

! Construc3on of Depots

! Construc3on of LPG Plants

!  Construc3on of JET A1 Plants

Upstream Business Downstream Business Petroleum Services Business



Exploration StageBLOCK B1, B2 & B3? (TOTAL)

TOTAL 32.5%, KUFPEC 25% NILEPET ?

BLOCK 5B (ASOC)

ASCOM 95% NILEPET 5%

BLOCK E1?, E2

Star Petroleum 75%, HEMLA 5 %, NILEPET 20%

Relinquished Blocks

Block A3 (C) Block A4 Block A5 Block A6 Block DC & 7S

Blocks under negotiation Blocks E1 & E2 Blocks B1 & B2 Blocks A4 & DC

Concessions

Business Opportunities

24


NILE PETROLEUM CORPORATIONThe Nation Oil and Gas Corporation of South Sudan Challenges

Low oil Prices (new reality)

Tight budget

Limit investment on latest technologies

Severe scale down on studies and

improvement initiatives

Geography of the country (Land Locked)

Logistics difficulties (long hauling for

materials and equipments supply)

Lack of major infrastructures

(interstate roads and blocked riverlines)

Effectof 2013 Crisis Shut down of oilfields

Hindering and delaying

corporation progress (Major project & Capacity building)

Limiting of investors

Despite progress there are tremendous amount of challenges:



Progressing toward its vision(stand alone operator)

Retaining and developing its regional and international

partnerships

Building nationals’ technical knowhow in oil sector

Developing its downstream products and infrastructures

Conclusion

Despite current challenges, NILEPET is:

THANK YOU

www.nilepet.com

NATIONALPARTNERFOR PROGRESSAND PROSPERITY

Nigeria’s Niger Delta E&P, Business and Future Opportunities · tancy and power plant operation...

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Transcript of Nigeria’s Niger Delta E&P, Business and Future Opportunities · tancy and power plant operation...