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From the Dana annual report (Page 43):
On 14 March 2006, Centurion signed a Production Sharing Contract (“PSC”) and formal granting by the Joint Development
Authority of its 10 percent (gross) equity interest, 9.5 percent (net) in Block 4 of the Nigeria/Sao Tome. Under the PSC
Centurion paid USD 6.8 million being its share of the total signature bonus. Dana Gas was obligated to pay USD 5 million
(net) for its share in the minimum expenditure of USD 53 million for the block which has been paid through 2009. This
commitment is supported by a performance bond issued by BNP Paribas and supported by Export Development Canada.
Dana Gas and another partner have withdrawn from the concession in accordance with the relevant agreements (PSC /
JOA) due to operator’s decision to drill a third well without approval. The operator has disputed our position.
http://danagas.ae.tmp10.mschosting.com/uploads/pdf/2010/04/12/544.pdf
why would SNP dispute their position? Perhaps they are simply disputing that they did not have approval for the 3rd well as a matter of Chinese integrity?
-ach
Strass, I wasn't considering us one of the smaller players, since we have the 2nd biggest % in the JDZ and don't have to spend a nickel. I agree in that we are unique and can wait (for at least a few more years) if our price is not met.
-ach
mz,
I guess that's what we really don't know. Did they give them time to get funds together? Do they have a handshake agreement for a sale right now? Maybe SNP or Total decided to be nice and compensate these guys for their share? I don't know. Negotiations take time. It seems like the Nigerian folks were in this to get some money in the first place and the Chinese propbably still need to make them happy?
-ach
mz,
If this truly ends up being a cross block venture, I guess if I were in SNP or Total's position why would I offer anything knowing that nobody will be interested in the time and dollar investment in picking up a 1 or 2% interest.
I would just say, "go ahead and sell, if you don't, we need your share of the investment by this date" knowing they don't have the money.
All of these smaller players need to be consolidated to make one substantial % in the JDZ.
-ach
If I understand this correctly, I believe privately held Amber Petroleum owns both MoMo and Equinox. I would assume if MoMo is not continuing, it is very possible that Equinox would also be out in Block 3. I don't know this for sure. If anyone has a linkedin account, the link I provided in post number 222282 is for the former CFO of Amber (was CFO as of early 2010). It would be great if someone with a linkedin account could contact him and get some clarity on this.
If MoMo, Equinox and Foby are out, that means that EEL, ERHC and SNP are all that would be left in Block 2 and SNP, ERHC and Ophir are all that are left in Block 3. I know that Ophir has indicated that they are reviewing whether to continue in Block 3. I have a question into them, but she will not be back until tomorrow morning.
If my numbers are correct, 11.5% of the combined total of JDZ 1-4 is up for grabs (as far as we know).
-ach
BB,
I've been doing my own little spreadsheet of who is in/out and what their % is. Do you have anything that specifically says Foby is out?
Thanks,
-ach
I will say in reviewing more about this company, they do not have deep pockets. So another small player bites the dust, 10% more of Block 3 available:
NIGERIA-SAO TOME JDZ
Block 3 (Addax Operator, Pan-Petroleum 10%):
The PSC (Production Sharing Contract) phase 1 continues until 13th September 2010. At this point, Panoro Energy intends to
relinquish the license.
http://www.panoroenergy.com/wp-content/uploads/20100826_Panoro_Q2_report-Final-2.pdf
-ach
Eventually something will happen. I guess our new date, since we love having a date, is November 15 and the EEZ bid round closing.
-ach
I got a response from Prazeres finally. He said no report was disclosed and according to the JDA the phase ii decision is "sine die". Which to my understanding, means a decision on phase II has been adjourned with no specific date in the future set for a decision.
-ach
yes, 2 times. Have not gotten anything back yet. I have found he responds very quickly when he is comfortable with a response. He doesn't seem too eager to answer this one. And he will respond from his phone if he's out, so it's not that. I did notice the last couple of weeks he has been answering e-mails from the office in STP.
-ach
Hey Krom,
I don't have a linkedin account, but as I recall you do. If you want to try to contact this guy, he was a director and CFO at Amber Petroleum (5% interest in Block 2) until January of this year. He may be able to shed some light on Block 2 if you want to shoot him a note.
http://www.linkedin.com/pub/michael-humphries/6/8b1/83a
That goes for anyone else on linkedin.
-ach
Last post regarding percentages.
When did ConOil end up with 25% of Block 4??
http://conoilproducing.com/View/Index/33/JDZ-BLOCK-4
The page says Hercules gets 10%, but as I recall, that is Dana Gas now. But the page isn't old, its got a 2010 date.
-ach
I'm pulling my hair out over here. I want to say that ONGC simply did not want to invest in a multi-block consortium development. But 13.5% is not exactly peanuts. So now the question is, are they shopping that % or are they simply divesting? It seems as though the musical chairs game is still not complete.
-ach
I don't know if this was discussed, but if ONGC is out and they were carrying A & Hatman, that means 16% (13.5% ONGC, 2.5% A&H) of Block 2 needed to be redistributed. Perhaps this was one of the reasons for the delay we've been experiencing.
-ach
Nigeria Sao Tome & Principe, JDZ
Block-2, Nigeria-São Tomé & Principe, JDZ:
Block-2 is a deep water exploration Block located in Nigeria-São Tomé & Principe Joint Development Zone (JDZ) with an area of approx 1,034 sq km. ONGC Narmada Limited (ONL), Company’s 100% subsidiary incorporated in Nigeria, holds 13.5% PI in the Block. Other partners in the Block include Sinopec (28.67% PI), Addex Petroleum (14.33% PI), ERHC Energy Inc. (22% PI), Equator Exploration (9% PI), Amber (5% PI), Foby (5% PI) and A & Hatman (2.5% PI) with Sinopec as the operator. Operator has acquired license of 3D seismic data and interpreted the data. Based on the same, a well was drilled in 2009. Though the well showed presence of hydrocarbons, the volumes were inadequate to warrant a commercial development. The Company has communicated its intention of not continuing the block to the Operator. ONL’s share of investment, inclusive of the carry obligations to A & Hatman, till March, 2010 was approx USD 25 million, which has been written off.
http://www.ongcvidesh.com/Assets.aspx
So Panoro Energy got their 10% Block 3 interest from the merger with Pan Petroleum who a year earlier had bought out EER who was part of the original block 3 award team. Of note, EER (through its subsidary Dangote) also had a 9% stake in Block 1 of which 4.4 is held by Afren.
You've got to love musical chairs in the JDZ
-ach
from what i can gather, panoro energy was created last year when a portion of norse energy merged with pan petroleum. Pan Petroleum originally had the 10% interest in Block 3.
-ach
I don't recall the norwegians (panoro energy) having a 10% share of Block 3. Perhaps it was discussed and I just missed it that day. The page does say that the % is held through a subsidiary.
http://www.panoroenergy.com/?page_id=646
i know, I was just saying I don't remeber CVX trying to make everyone believe Obo was only gas after it was drilled.
-ach
Yes, but I think that article came out only a year or so ago.
here's the 2006 upstream article. please excuse me for using joe's blog as the reference to that article, but I'm being lazy right now.
http://erhc.blogspot.com/2006/06/upstream-online-chevrons-nod-to-block.html
-ach
I believe back in 2006 a CVX official was quoted as saying that Obo-1 discovered oil, but it was not a stand alone commercial find. Also, back in 2006 Upstream reported that Obo-1 found 100 million barrels of oil. I don't recall any mention during that period that it was only gas. The speculation back then seemed to revolve around the pr saying "at least 150' of net pay".
just going from memory.
-ach
The official drilling analysis report from SNP/Addax has not been submitted to STP as of yet per LP. So I guess the expected August 31 date for that was not met.
-ach
I thought he meant are there companies interested in our area (EEZ). If that is what he was asking, I was not implying that at all.
-ach
looks that way
I asked Luis who requested the extension. Also, if Sinopec or Total have expressed interest in the EEZ. His response:
-ach
No american companies; request came from european and asian companies.Total has expressed interest, in fact they have consulted data on last week of June.
Luis Prazeres
Agência Nacional do Petróleo(National Petroleum Agency)
Avenida Nações Unidas,225 - SaoTome,SaoTomé e Principe
Tel:239 2243351
fax:239 226 937
I take all of that to mean he cannot comment on any of this in an email. When/if a comment comes out, it will be to all shareholders in a pr. IMHO
-ach
Doc,
He didn't respond to me. Looking at your dialogue, I would assume, had you not pressed, he would not have responded to your initial e-mail either. I take that lack of an immediate response to mean Dan is still in discussions with management about this situation and was not prepared to comment. The dialogue you did have also seems to point to that.
IMHO
-ach
uggh.
Thanks HP
Has anyone e-mailed Keeney about this? Just wondering and don't want to duplicate efforts.
-ach
I asked Prazeres about his thoughts on this. We'll see what he says.
-ach
From Prazeres regarding the timeframe for announcing the winners of the EEZ Block awards:
More or less two months after the closing date.
-ach
From Prazeres. The first question was in regards to the status of the national oil company. I then asked him if petrobras was interested in participating in the lusophone consortium to explore EEZ, or whether they were even interested in the EEZ at all.
-ach
Dear XXXXX,
This issue is on the slow motion, but it will happen may during the year 2010. Petrobras is not interested anymore in the consortium but they have shown some interest in EEZ,as matter of fact they have already consulted the EEZ seismic data in PGS-London
best rgds
Luis
krom,
as i recall, a chevron rep had quotes in the news a few months after obo-1 was finished stating that it was not commercial on its own and that it was about a 100 million barrel find.
-ach
isn't it funny how all of this started? exxon, devon, pioneer, chevron, anadarko, erhc.
Now here we are, total, sinopec, addax, erhc. It's nice to be the one constant after all of these years.
-ach
fyi - Prazeres comments regarding eez psc's
We are doing our best to sign PSC as soon as possible,bur as you know negotiation is always negotiation,it can take short or longer time.
best rgds
Mr. Prazeres,
It is my understanding that PSC talks our ongoing in regards to both EEL's and ERHC's preferential blocks.
Are you confident that the PSCs will be completed in the near future? If so, what is your anticipated timeframe for signed PSCs on these blocks?
Thank you very much for your time, as I know you are busy.
Regards,
xxxxxxxxx
In a message to me, Seadrill has confirmed that the West Gemini is going to Total.
-ach
If that is true, the Total Clov project is offshore Angola.
-ach
He must have been following this thread for a while to reference a post that occurred over 2,000 posts ago. I'm sure he has nothing better to do with his time. LOL.
Whatever, I could always use some extra shares.
-ach
krom,
you don't think we will get a cash infusion from the eez blocks?
-ach
I asked Luis P about the timeframe for a decision after the EEZ bidding is closed. He was not able to provide any anticipated timeline for when STP will make their decision.
He did note that after the closing of the bid round, STP will post all of the bidders on their website. When awards are made that will be posted as well.
-ach
I don't think RWE is capable of being an operator, but as a partner in a block, they would bring some deep pockets. Would they be interested in bringing stp gas to europe?
-ach