Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I would guess they simply are targeting or marketing one area for now saving the rest for later. There probably is some old data in the area. "Based on prospectivity, the exploration team has identified focus areas "
This circle oil is a husband wife team, can find anything concrete on them at all.
http://amazoil.co.uk/oil-gas-exploration/
This company has same Chad assets as ERHC?
???? http://amazoil.co.uk/oil-gas-exploration/chad-map/
Notice the cut and paste to http://erhc.com/kenya/ from the previous post
http://www.circleoilandgas.com/kenya-block-11a/
Anyone remember this? http://www.circleoilandgas.com/
Who owns this 4.5%? Crappy Web Site.
Circle has a 4.5% carried interest in Block 11A. The operator of the block and owner of 85.5% of the block is Houston based ERHC Energy Inc. The government of Kenya retains the remaining 10% interest.
Block 11A encompasses 11,950.06 square kilometers or 2.95 million acres (click on map to enlarge). The Block is situated on Kenya’s border with South Sudan to the north, Block 11B and Lake Turkana to the east and near Kenya’s border with Uganda to the west.
Block 11A is in the vicinity of Blocks operated by one of the most prolific oil and gas explorers in Africa. Drilling activity in the area has made international headlines recently. The Eliye Springs well is in the adjacent Block 10BA while the Loperot and Ngamia-1 wells in Block 10BB are also nearby.
The regional geology and structural evolution of Block 11A is dominated by the Cretaceous Central Africa Rift System (CARS) and the Tertiary East Africa Rift System (EARS) with the associated basin depositional trends. The main surface feature of Block 11A is the Lotikipi plain. This broad depression measures approximately 110 km from east to west.
The proximity and in-trend relationship between the Lotikipi plain and the Abu Gabra Rift basins of southern Sudan suggest high oil and gas prospectivity. The southern Sudan basins are established petroleum provinces. Surface exposures of the sedimentary units with potential source and reservoir value, represented by the Cretaceous/Paleogene Lapur Formation of the Turkana Grits, give an indication of the sediments that might be encountered beneath the Lotikipi plain.
Gravity data, acquired earlier in the area, enabled the delineation of a sedimentary basin within the Block 11A area below the Lotikipi plain. The basin-fill is believed to be in excess of 5,000 meters, well above the threshold for sufficiently buried and mature organic matter for oil generation
http://www.circleoilandgas.com/kenya-block-11a/
Be thankful we have dilution or even a hope after the last 14 years of no oil, ERHC is starting all over again, just be glad we have all these very exciting assets to exploit and arent at 0.
Yes, my guess is they will use all the shares available for sale you can bet on it. Perhaps even offer some to CEPSA. CEPSA may just buy us out after the FTG. Everyone had their turn to lessen the dilution in the offering and E. Offor didnt participate as a favor to investors....possibly. Besides he has plenty already.
Exciting times coming, wish it was faster.
Nov 18 59.85% 0.06 0.05 0.06 +20.00% 975,660 1,630,210
Yes, yesterday 59.85% was short volume!!! just keep buying to offset, eventually longs prevail with good news. Shorters will get caught with their pants down. Thats the OTC game we have to endure, because we cant get off this crappy exchange.
TORONTO—Compania Espanola de Petroleos S.A.U. Tuesday said it agreed to acquire Coastal Energy Co. CENJF +27.22% for almost 2.3 billion Canadian dollars ($2.2 billion), expanding the Madrid-based energy company's access to oil and gas reserves in Southeast Asia.
CEPSA is owned by Abu Dhabi state-owned firm International Petroleum Investment Co., which has holdings in oil and gas exploration, shipping, pipelines, petrochemicals and power and utilities in the Middle East, North America, Europe and Asia.
Coastal Energy, which is based in Houston but listed on stock exchanges in Toronto and London, explores for oil and gas mainly in Thailand and Malaysia. In the deal, CEPSA will gain about 149.1 million barrels of oil equivalent of proven and probable reserves, and prospective reserves of more than 500 million barrels of oil equivalent, helping it take advantage of growing energy demand in Asia.
The deal "reflects an important step in increasing CEPSA's E&P capabilities," CEPSA Chief Executive Pedro Miro said in a statement.
CEPSA is paying C$19 a share for Coastal Energy, a 28% premium to its closing price Monday on the Toronto Stock Exchange.
fyi... Total is majority owner in block 5 just north of 11a in South Sudan.
Pipeline runs through 11 a
http://global-atlas.jrc.it/maps/PUBLIC/2191_Sudan_South_Sudan_pipeline.pdf
Tullow predicts record production -was recently valued, by Bank of America/Merrill Lynch analysts, at around $1.15bn.
Thursday, November 14, 2013
By Geoff Percival
Tullow Oil remains on course to reach record oil production levels by the end of this year, management said yesterday.
In its latest trading update, the Irish-founded exploration firm said it continues to make “good progress” across its main areas of operations and is confident of adding 200m barrels of oil equivalent (boe) to its resources this year.
The company said that, with wells in Kenya, Mauritania, Norway, Ethiopia, and Guinea planned for the first half of 2014, “there is much to look forward to” for shareholders.
Regarding Kenya — one of the African-focused company’s largest target areas — Tullow yesterday confirmed what its partners had already recently said; that operations in its two exploration blocks in the north of the country have resumed following recent protests over jobs and benefits.
Tullow has signed a memorandum of understanding with Kenya’s government, regional governors, and community leaders to agree a long-term working deal in the area.
Regarding moves to focus solely on exploration, Tullow said the sale of its North Sea gas assets is “ongoing”, as they are now to be sold as individual assets rather than one package. Additionally, Tullow said the full sale of its non-core Asian-based assets have been agreed, with completion expected “over the coming months”.
Tullow also said it now expects to receive bids for part of its 47% stake in the $5bn (€3.7bn) Tweneboa Enyenra Ntomme oil project off the coast of Ghana later this month, adding the farm-down process “continues to make progress”.
Tullow’s stake in the TEN project — first production from which is expected in around three years — was recently valued, by Bank of America/Merrill Lynch analysts, at around $1.15bn.
Onshore Ghana, Tullow said it expects its Jubilee field to deliver an average 2013 production of around 100,000 barrels of oil a day.
© Irish Examiner Ltd. All rights reserved
Taipan Resources Inc : Premier Oil Commits $30 Million to Taipan’s Block 2B in Kenya
http://www.4-traders.com/TAIPAN-RESOURCES-INC-14234481/news/Taipan-Resources-Inc--Premier-Oil-Commits-30-Million-to-Taipans-Block-2B-in-Kenya-17380849/
imo The 2.95 million acre FTG survey has to be done to make Erhc's case and sell the partners on it, no matter who it is we get approved as partners in Kenya. The better the results of the Full Tensor Gravity Gradiometry (FTG) survey the better the deal we should get. We will have to wait a month to learn about these IF's.
IF the Full Tensor Gravity survey shows amazing results we probably have the option to farm-out to others, not just C.e.p.s.a. is my guess.
In the meantime hopefully there is other good news and progress in EEZ, JDZ and Chad.
Btw- Did we ever see official well drilling reports from any JDZ 2,3 or 4 drilling?
Great news...stock should be 20 cents now.... ERHC Energy Kenya Ltd., has commenced an airborne Full Tensor Gravity Gradiometry (FTG) survey of Block 11A in northwestern Kenya.
So are we to look for ERHC Energy Kenya Ltd. is this a NEW corporate name to separate this region, its accounting and liabilities from other assets?
I received yahoo pr's.
http://www.jobopeningkenya.com/jobs/expression-interest-provision-audit-services-oil-gas-exploration-companies-kenya-2013/
http://www.standardmedia.co.ke/mobile/?articleID=2000097580&story_title=non-turkana-residents-assured-security
http://www.standardmedia.co.ke/mobile/?articleID=2000097583&story_title=desperate-wait-for-food-water-as-drought-bites-turkana-county
The cove demonstration is clearly Peters goal. It is a realistic possibility with ERHC, thats why gamblers like us have been here for 14 years. I'm thinking we will hear Kenyan Gov.approvals in a week or two.
But, (TO DEST_GOLF) the posters that are repeatedly and consistently negative jerks are market makers and/or same as shorters, ( yes they are) please just ignore them and use the ignore feature here on IHUB. Its clear who they are.
NEW MULITPLE PARTNERS
EEZ IS ACTIVE-NEGOTIATING
JDZ LONG TERM POSSIBILITIES
CHAD HOT
KENYA HOT -DONE
Seriously, A one penny pop?! It amazes me how ERHC sp isnt at 40+ cents now. This is indicative of severely battered and beaten shareholders.
Wipe off the dirt and get the word out about the potential gain here folks.
Only because the Chinese were the "darlings at the time", and promised the moon. Id say the saudi backed Cepsa has plenty of capital to play with.
ERHC has concluded a farm-out agreement. Told ya.
http://www.slideshare.net/dpkpr/new-york-presentation-28185584
Action today was cleaning house, MM driven IMO. Run up coming.
Wow, This aint right guys. I guess quiet period Peter was preparing to prepare be remarkable again. This share price says its over.
TULLOW Oil has agreed to implement ten steps between now and March next year to end a frosty relationship between it and local communities in Turkana.
The oil explorer, who was forced to suspend operations at its two blocks in Turkana two weeks ago after locals stormed it, agreed to sign a memorandum of understanding between it and the government and local leaders.
After making the commitment, Tullow announced it will resume operations in the two blocks from today. As a first, Tullow will not make any claims for the time and resources lost during the two weeks and the incitement cases against area Members of Parliament will be dropped.
Among the key commitments is to immediately increase the corporate social responsibility allocations from the current Sh85 million ($1 million) to Sh170 million ($2 million) per year.
On the issue of employment that partly contributed to the demonstrations, Tullow has committed to consult and refine local content and employment programme by December 15. This will include upscaling of training of locals to see them access jobs at the sites. Tullow will also be required to re-look at the way supply contracts are awarded including car hire services.
According to the MOU seen by The Star, the company will also be required to immediately start village to village road shows, radio shows and community bulletins to intensify community education. This will be done in partnership with the ministry of energy.
And by December 31, Tullow shall have opened field information anf liaison offices in Lokichar and Lodwar. Turkana South MP James Lomenen, who had lead the demos, cautioned that Tullow must fulfill all the promises to avoid future confrontations.
"We have had many meetings with Tullow but what was agreed was not followed...we have those doubts," Lomenen said adding that while the local leadership welcomed investors, the grievances of the locals must be listened to.
Energy and Petroleum cabinet secretary Davis ChirChir said the MOU will guide future interactions between the company and locals and help prevent nasty confrontations like the one last month.
Tullow said it now better understands the complex operating environment in Northern Kenya and expressed hope that the MOU will ensure operations can continue without disruption in the future.
"As Tullow's exploration campaign progresses and gathers pace, the number of local employees and local companies involved in our work will continue to grow," the company said.
On its part, the government promised to provide the required security. In addition, the government shall post permanent representatives from the ministries of energy as well as enterprise development, a labour officer and social officer to Lodwar or Lokichar.
And once every four weeks, the government will establish an inter-ministerial round table meeting to be attended by key ministries and the company. If a dispute arises from the MOU, it shall be resolved through mutual consultation between the parties.
Kenya suffers from erratic rainfall exacerbated by climate change, and a lack of natural water resources. The aquifer, dubbed the Lotikipi Basin Aquifer, holds 900 percent more water than Kenya currently has at its disposal. That’s enough water to supply the entire country for 70 years, but since the aquifer is replenished by distant mountains, proper management could mean that the water could provide an unlimited supply for the country. The aquifer sits 900 feet underground in the northern part of Kenya and is about 2,500 square miles in size.
A second, smaller aquifer was also discovered in the Lodwar Basin that could help provide water for the area of Lodwar, which is the capitol of Turkana in Kenya. “The news about these water reserves comes at a time when reliable water supplies are highly needed,” said Judi Wakhungu, Cabinet Secretary of the Ministry of Environment. ”This newly found wealth of water opens a door to a more prosperous future for the people of Turkana and the nation as a whole. We must now work to further explore these resources responsibly and safeguard them for future generations.”
Scientists also believe they have located a few more groundwater supplies, but exploratory drilling is necessary to confirm these finds. They also need to test the newly discovered aquifers for water quality. The government of Kenya is assisting in the process with the launch of an underground water mapping program that would allow local governments to assess and utilize their groundwater resources.
Read more: Huge Underground Water Aquifer Discovered in Drought-Stricken Kenya | Inhabitat - Sustainable Design Innovation, Eco Architecture, Green Building
Plenty of good water now... just discovered..
http://inhabitat.com/huge-underground-water-aquifer-discovered-in-drought-stricken-kenya/
Spot on, CEPSA should promise to drill 15 water wells in the new found underground vast water tables, set up a green belt underground and above irrigation systems, and farming around the aquifers. Fat Kenyans coming.
btw OT Livestock provides food for these people and really shouldnt be joked about. I know many people who have spent 75 bucks to send these starving people a goat, try it ! It can make a difference. Goat Milk is very important. Give a goat. Help provide a family with milk, cheese, yogurt, and more! The USA wild west had lots of goat ranchers too.
http://www.worldvision.org/m/life-changing-christmas-gifts-goat?campaign=10152549&gclid=CJT4_PCi07oCFcs-MgodOywAVg
How about milk eggs and cheese for breakfast before you go to work at the rig all day and night?
http://donate.worldvision.org/OA_HTML/xxwv2ibeCCtpSctDspRte.jsp?section=11080
http://www.heifer.org/gift-catalog/animals-nutrition/gift-of-a-goat-donation.html?msource=KIK2J13051&gclid=CMfOxIyk07oCFctAMgod2y8AhA
On small farms, goats are often the key to a family's survival. Your gift will provide a goat to a family in need, along with training and education in its care.
Each gift of a goat:
Provides milk, cheese and butter for nourishment
Boosts income through sales of extra milk and wool
Encourages better crop yields by creating fertilizer and clearing land
Goats are known for providing delicious milk, which can be used to create chesse that can be sold for income, in turn providing a family's children the opportunity to go to school. Goat milk is more easily digestible, and one animal can produce up to four gallons a day. Goats are ideal for zero grazing, which means very little land is needed to raise them. Their natural curiosity and intelligence also makes them great pets for families with children.
There... I said it.
Read all these conditions for making them enriched, its ridiculous, this is NOT good news for ERHC>. We would be better off with pirates!
These locals are ignorant or deliberately trying to run off oil companies.
NO PROSECUTION-THEY WERE PEACEFUL-SINGING. Sure THATS WHY THEY SHUT DOWN.
ONLY KENYANS WORK THERE - sure 100% skilled workers
COMPLAINT DESK OPEN IN 3 TOWNS - YEAH SURE!, This is so common.
OH AND BTW BUILD A NEW REFINERY .... RIGHT NOW. SO WE GET LOCAL CHEAP FUEL.
CR&P! THE USA CAN'T EVEN BUILD NEW REFINERIES HERE.
http://www.standardmedia.co.ke/?articleID=2000097042&story_title=turkana-outlines-demands-to-be-met-before-tullow-oil-resumes-operations
Make no mistake, IF there is oil there they will find a way to get it out at any cost.
That is one very good reason for a delay. Obviously the Turkana people want some assurances. Gee, can we get these local office in the USA too? That would be great. lol Ridiculous! I can see a ERHC- CEPSA & Tullow Oil fully armed embassy in every Kenyan Oil town.
Thanks Arnim-v-b good find.
Whats he suppose to say to the press? Press comes for the news after the deal is made. Who says we haven't benefited from these conferences.
Conferences are for networking and getting your story out there. They can add credibility too. Networking is exactly what ERHC is TOTALLY about. They sell the assets they aquire to the people/companies they meet at conferences, hopefully. But, you already knew this I am sure.
Perhaps conferences are the reason we have Chad and Kenya? It doesnt matter where they work as long as they are doing their job and that entails selling, then negotiating the best deal they can get for shareholders.
News good or bad will come eventually.
CHAD .. Oil production from the established sub-Saharan producers
Despite high above-ground risks, oil explorers keen to tap into Africa’s new fields - As oil production from the established sub-Saharan producers increases, areas less known for their hydrocarbons potential are receiving more attention, Business Monitor International (BMI) has reported in its October 2013 monthly market intelligence, trend analysis and forecasts for the oil and gas industry across the Middle East and Africa.
“Despite high political risk and difficult business environments, under explored regions of onshore middle Africa are seeing growing exploratory interest,” said the BMI report, which was made available to PANA here Friday.
The report highlights Chad and Ethiopia as countries where the business and political environments remain challenging, yet the below-ground potential for oil and gas exploration and production outweighs the above-ground risks.
Chad is sandwiched between Sudan on the east and Nigeria and Cameroon on the west, all of which are proven oil producers.
Ethiopia has no history of oil production and thus remains an area of particular interest as companies move in to test its potential.
Interest in sub-Saharan Africa is growing as the exploration success in nearby central African countries such as Uganda dissipates throughout the wider central African region.
Oil and gas independents are increasingly carrying out exploration and drilling work in under explored high risk, high reward onshore areas.
BMI’s short term political ratings for Chad saw it struggling against neighbouring central African nations, with a score of 47.3 out of 100; while its overall business environment rated among the worst in the region at just 19.6 out of 100.
“Despite the high above-ground risks present, exploration and production interest in Chad is increasing as small independents take on the higher-risk environment,” BMI noted.
“Oil output from the country has also fallen considerably, over 72,000 barrels per day (b/d) since 2005, and remains a critical source of revenue for the government.
“The majority of recent exploration has taken place in the southeast of the country along the border with Central African Republic and Cameroon, where much of the country's 104,000b/d (2012) of oil is produced,” said the report.
A few small Canadian exploration and production companies hope to survive Chad’s political difficulties.
Caracal Energy recently spud two wells in the Badila field where it hopes to soon bring online 14,000b/d, and also drilled the Krim prospect which is estimated to hold up to 64mn barrels (bbl) of unrisked oil.
The company's next move is to drill in the Bitanda prospect which is considered even more prospective with initial estimates of unrisked resources set between 277mn and 648mn bbl.
In June this year, Simba Energy was awarded production sharing contracts on three separate sites in Chad in the Erdis Basin in the north of the country and Chari Sud Block I and II in the south of the country.
While the political rating of 47.5 and the business environment rating of 32.9 in Ethiopia fared slightly better than that of Chad, there were higher risks due to the unproven nature of the country's oil prospects, the BMI report observed.
After discovering oil in Kenya for the first time in 2012, Tullow Oil has moved its operations cross-border to the South Omo Block in Ethiopia.
With partners Africa Oil and Marathon, the company drilled the Sabisa-1 well earlier in the year, encountering traces of hydrocarbons. Results are still being analysed, though Tullow has announced the area is oil prone.
This area is thought to be a continuation of the oil bearing structures found in Uganda and Kenya, which are also seeing increasing exploration and production activity.
In the Ethiopian region bordering Djibouti, General Energy and New Age (Africa Global Energy Limited) are working in the 27,000sq km Adigala Block.
According to the companies, 2D seismic data reprocessed in 2012 and augmented with a Full Tensor Gravity survey showed evidence of working petroleum systems.
The northern part of the country is thought to be analogous with the producing Jurassic Rift Basins in Yemen.
“The prospects for oil in Ethiopia remain strong and could go some way towards reducing the country's 100 percent reliance on imports. Consumption reached a record 54,100b/d in 2012,” said the BMI study.
The report went on: “While it remains too early to tell the full potential of the oil and gas industry in the country, first mover advantage in this unproven oil producing country will provide high rewards.
“In spite of the high potential in both Chad and Ethiopia, warnings should be heeded from the difficulties nearby Uganda has experienced in tapping its 3.5bn bbl oil reserves.
“The large political influence imposed by President Yoweri Museveni, who is entitled to a final decision before any oil deals are signed, has slowed the development of an export pipeline, a refinery and the start up of oil production.
“Along with allegations of bribery, the deteriorating political environment is now damaging interest in the country.
“Our short-term political rating for Uganda has dropped from 60.4 in 2010, to 51.7 in 2013. This fall in confidence, in one of the better performing countries in the region, further highlights the high risk faced by oil and gas companies.”
Kenya Oil Estimates Now 368 Million Barrels
BY MARYBETH WAMBUGU, 4 SEPTEMBER 2013 old but worth repeating
An oil prospecting firm in Turkana County's Lokichar basin has announced a five-fold increase in its estimates of oil reserves in the area. Africa Oil, a Canadian oil and gas company prospecting together with British explorer Tullow Oil plc, yesterday said results from tests conducted over the past one year showed that the South Lokichar basin contained 368 million barrels of oil, an increase of 557 percent from the previous estimates.
Kampala- Tullow Oil PLC (Uganda) has said that Heritage Oil has completed payments of all monies owed to it, including the interest rates as ordered by court.
The British oil company told this newspaper last week, that Heritage has fully paid back $345 million (about Shs871 billion) of the indemnity claim of $313 million (about Shs790 billion) paid to Uganda.
http://www.monitor.co.ug/Business/Heritage-pays-up-Shs871b-to-Tullow-oil--eyes-appeal/-/688322/2058706/-/5287avz/-/index.html?
Kenya: Tullow to Explore Oil in Kerio Valley
BY MATHEWS NDANYI, 1 NOVEMBER 2013
ELGEYO Marakwet Governor Alex Tolgos has said his government has approved oil exploration in Kerio Valley.Tolgos said they will provide the necessary support to Tullow Oil Company, which is now operating in the region.
"There is no cause for alarm because my administration will work with Tullow and other investors for the benefit of local communities," he said.
His assurance comes in the wake of the company halting its work in Turkana county over security concerns following demonstration by residents who wantobs at various sites under its operations. Tolgos met Tullow officials at his office in Iten town yesterday. He said the county government will provide an enabling environment to all investors interested in the region.
Tolgos however said he will discuss with the company how residents will benefit from tenders, education programmes and other development projects. Tullow was represented by its community engagement boss Fila Elema among others during the meeting.
Tolgos said the Oil firm should advertise their tenders on time so that residents have time to see what they can supply and tender for.
"We have to work on how we will establish a good relationship between investors and the local communities for mutual benefit from the resources we have, "he said.
Tolgos asked the company to increase compensation money for land in the areas where they are carrying out exploration.He said lack of information on how people will benefit from the proceeds of oil in case it is found in Kerio Valley has fuelled increasing cases of land disputes in the area.
Elema said since the oil is a national resource, scholarships for masters degrees in the oil sector are targeting all countie. Elema said the company is offering bursaries in the 8 districts where exploration is going on. She said the amount has been increased from Sh2 million in 2010 to Sh3 million this year.
A Geo-Physicist in the ministry of energy Francis Thiong'o called on the county residents to support the company so that they can realise the full benefits of oil in the area if it is found.
Oil company Cepsa plans $10bn expansion in next five years
Mahmoud Kassem
November 3, 2013 Updated: November 3, 2013 19:16:00
Compania Espanola de Petroleos (Cepsa), the Spanish oil company owned by Abu Dhabi’s International Petroleum Investment Company (Ipic), plans to spend US$10 billion in the next five years to expand its exploration and petrochemical businesses in North Africa, South America and South East Asia, its chief executive said yesterday.
“Since Ipic became the single shareholder of Cepsa in the summer of 2011, the emphasis is on becoming more international through expansion,” said Pedro Miro, who was in Abu Dhabi for yesterday’s Formula One race.
“Expansion into two areas – upstream and concessions, and the second area is petrochemicals.”
Cepsa will focus about 80 per cent of its investment to expanding upstream activities in North Africa, South East Asia and South America, with the balance going to petrochemical production in South East Asia, he said. Upstream is the part of the oil and gas business that focuses on finding wells, drilling into them and extraction.
Ipic, formed by the Abu Dhabi Government in 1984 to invest in energy around the world, made a 10 per cent investment in Cepsa in 1988 and increased its stake to 47 per cent in 2009. It became the sole shareholder of the Madrid-based company in 2011 after buying the stake held by France’s Total for $5.4bn.
Ipic is also building a $4.5bn fuel-processing plant in Fujairah and $3bn on another similar plant in Oman, according to reports. The company is invested in 18 companies across the world, including refining companies in Japan as well as chemical companies in Europe and North America.
The managing director of Ipic, Khadem Abdulla Al Qubaisi, is also the chairman of Cepsa.
Cepsa’s largest production facilities are in Algeria and it would like to invest a further $1bn in that country, where it boasts a long-standing relationship with the government, Mr Miro said.
Cepsa and the state-run Algerian hydrocarbon company Sonatrach teamed up in 2001 in a joint venture called Medgaz to build a pipeline between Algeria and Spain that can transport up to 8 billion cubic metres of gas a year, a project in which Mr Miro, who has been with Cepsa for 37 years, was involved.
“Our focus in terms of expansion, it’s in the countries where we’re in to exploit the synergies,” he said. “This means northern Africa and Latin America and South East Asia. Algeria is where we have the largest production and Colombia is where we have the largest exploration.”
Mr. Miro said Spain’s recession forced Cepsa to look for new types of energy and markets in which to expand.
“We think that the energy world in general these days is changing quite a lot,” Mr. Miro said. “The game changer is the United States. I would say that the arrival of the unconventionals has changed everything, oil and gas. So I suppose that many surprises are going to occur.”
Where once Europe used to export gas to the United States, it is now the other way round and the changing landscape of energy production with non-conventional methods such as fracking is convincing Cepsa to search for ways to adapt and find new sources of energy.
That will not be easy because while the fracking industry is more developed in the US, in other parts of the world it will be held up by political, technical and practical constraints, he said. Renewable energy is still too costly and the subsidies governments grant it put a big burden on tax payers, Mr. Miro said.
“Too fast an introduction is painful,” he said. “We are paying for that.”
Cepsa, which also works in Brazil, Canada, Panama and Peru, is also keen to grow in the field of petrochemicals, where demand from Asia is expected to accelerate. It is building a plant in Shanghai to produce phenol, a petrochemical used in the production of detergents and pharmaceuticals, Mr Miro said.
“Statistically, one in four items of clothing is cleaned with Cepsa detergent,” he added.
Read more: http://www.thenational.ae/business/industry-insights/energy/oil-company-cepsa-plans-10bn-expansion-in-next-five-years#ixzz2jh8gTNv7
Follow us: @TheNationalUAE on Twitter | thenational.ae on Facebook
Thats good, thats exactly what ERHC does i.e negotiate. Thats all they should be doing. Aquire and negotiate farm-ins thats the business model.
Great news King thanks.
Unreal! 57% of the workers on site were LOCALS!! If that isnt enough ..what is?
We (I )really expected a Halloween treat with Peter authenticating this:
- ERHC Energy Inc. is rumored to have selected Compania Espanola de Petroleos SA (CEPSA) as partner for its Block 11A, onshore Kenya. On 6 May 2013, the Houston based company announced that it has signed a letter of intent with an unnamed international oil and gas company for the farm-out of an interest in Block 11A. The tract covers 10,920 sq km in the Lotikipi Basin, south of the border with South Sudan. No well has ever been drilled in the area. A Full Tensor Gravity (FTG) survey is planned for 2013; it will start upon completion of a similar survey over Adamantine Energy Ltd’s Block 11B. ERHC announced the signature of the Production Sharing Contract for Block 11A on 9 July 2012. The current interests are entirely held by ERHC.
Perhaps they havent had time to finalize the partnership or they have multiple offers they are entertaining. Not to mention all the new rules of "engagement" and local employment and enviromental concerns to name a few.