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Status of oil and gas exploration projects Namibia
Business | 2016-07-08Page no: 22

GABRIEL WIMMERTH

IS IT possible and necessary to construct an oil and gas refinery in Namibia? Twenty-six years after independence, Namibia does not have its own oil and gas refinery.

Too many EPL's on oil and gas have been dished out by the government. The ministry of mines and energy and some Namibians benefited from these EPL's by selling them to the next investor, who then claimed to have all the necessary technological and engineering capabilities, but to date nothing has happened. What is going on?

There are private oil and gas companies along our western coastline, exploring and drilling by applying different types of technologies, but they have been unsuccessful for more than 20 years, and it does not make any sense.
Namibia currently has managed to find gas off its southern coastline, the Kudu Gas Field.

This field is now lying idle, without anything being carried out. Ministers in this industry come and go, and each and everyone is telling us another good story, that in the next two to five years the project will kick off. I really have doubts about the Kudu Gas Field. The porosity of this gas field is around 12%.

Then we had private companies like HRT, Chariot Oil and Gas, Chevron, Sasol, Norsk Hydro and also the Russians, Sintezneftegas Namiiba, Arcadia, Enigma, Pancontinental, Ranger, Sasol, Shell, BHP, Petrobras, BP (now Puma), trying their luck to find oil in Namibia since the tenure of former Presidents Sam Nujoma and Hifikepunye Pohamba, but without any success.

The HRT got hold of indications of hydrocarbons, a teaspoon sample of hydrocarbons, which positively indicated the presence of crude oil. Here again, quick bucks were made by certain individuals, and nothing happened to date.

There are several other companies continuously exploring and drilling along the western coastline for oil and gas. But they do not get any samples of oil or gas. The ministry of energy can provide us with companies, which have been busy along our coastline trying to explore for oil or gas for the past 20 years, and if they have not been successful, give them a red ticket. Let them pack up and go. I also believe the EPL's have a time limit. A non-performer must be disqualified immediately.

It has been stated that the age-equivalent sedimentary rock make-up on the Namibian side is thinner than that on the Brazilian side. On the Namibian side, the upper cretaceous sequences are very thick, which suggest an early maturation for the lower cretaceous rocks as compared to the Brazilian side. The continental rift developed asymmetrically between Brazil and Namibia as the Pelotas Basin is characterised by proximal rifts in shallow water, and a wide and very thick rift in deep waters on the African side. There must be oil and gas in Namibia too.

The construction of an oil and gas refinery will cost N$75 billion for a 50 000 to 100 00 barrels-a-day refinery. Does Namibia as a country have such financial capacity? Not at all.

Namibia as a country is strategically located, and Walvis Bay is one of the leading ports in the world, known for its economical and safety performance. Yes, this is the best location, for an oil and gas refinery, for the southern African region.

POLITICS

This is sometimes the critical factor, which plays a vital role in any decision-making. Let us communicate regionally with Angola, as it possesses crude oil. So, the best thing will be to construct a refinery close to the Angolan border or coastline.

So, the question is: Why still selling or providing EPL's in this industry? Stop them all, and let us concentrate on Angola. Namibia might fork out US$5 billion from the national budget, or private companies and local businessmen will grab the opportunity. We are going to rely on investors and international companies on this project.

There are 13 refineries in Brazil, a country with 210 million people, compared to SADC, which has a population of 277 million people. South Africa has the majority of 55 million inhabitants, and the country has six oil and gas refineries. Does Namibia, with a population of 2,4 million people, need to construct a refinery? I guess the answer to this is: Yes, we do need to construct a refinery, as this will elevate us on the industrial scale, on par with the rest of Africa and the world.

http://www.namibian.com.na/Status-of-oil-and-gas-exploration-projects/42744/read
 
October 6 2016 - 5:42AM
Mark Shenk

http://www.theage.com.au/business/e...es-fall-for-a-fifth-week-20161005-grvwel.html

Oil rallies as US inventories fall for a fifth week

Oil climbed, approaching $US50 a barrel in New York, after government data showed that US crude stockpiles dropped last week.

Inventories slipped 2.98 million barrels in the week ended September 30, according to the Energy Information Administration. That contrasts with the 1.5 million barrel increase forecast by analysts surveyed by Bloomberg and a 7.6 million decrease reported on Tuesday by the industry-funded American Petroleum Institute. Production and imports slipped for a second week as refineries idled units for seasonal maintenance.

US crude supplies fell to 499.7 million in the week ended September 30, the lowest level since January, according to EIA data.

"This is the fifth-straight weekly decline in crude supplies, which is very supportive," said Chip Hodge, who oversees a $US12 billion natural-resource bond portfolio as senior managing director at John Hancock in Boston. "It's good to see crude supplies come off, especially given how high they've been recently."

Oil has advanced more than 10 per cent since the Organisation of Petroleum Exporting Countries agreed last week to cut production for the first time in eight years. OPEC, which pumped at a record in September, will decide on quotas for the group's members at an official meeting in Vienna on November 30. Hurricane Matthew is heading for the US and may disrupt East Coast fuel shipments.

West Texas Intermediate for November delivery rose $US1.14, or 2.3 per cent, to $US49.83 a barrel at 1.54pm on the New York Mercantile Exchange. Prices reached $US49.95, the highest since June 29. Total volume traded was 17 per cent above the 100-day average.

Brent for December settlement increased $US1.03, or 2 per cent, to $US51.90 a barrel on the London-based ICE Futures Europe exchange. The contract reached $US52.09, the highest since June 10. The global benchmark was at a $US1.50 premium to WTI for December delivery.

US crude supplies fell to 499.7 million in the week ended September 30, the lowest level since January, according to EIA data. Inventories reached 543.4 million barrels in the week ended April 29, the highest since 1929. Stockpiles remain at the highest seasonal level in more than 20 years.

Crude imports slipped by 1.6 per cent to 7.71 million barrels a day last week. Production decreased 0.4 per cent to 8.47 million barrels a day.

Refineries cut operating rates by 1.8 percentage point to 88.3 per cent of capacity, the lowest level since April. Plants usually cut back on operations in September and October after the peak-demand driving season comes to an end.

Stockpiles of distillate fuel, a category that includes diesel and heating oil, dropped 2.36 million barrels, the biggest decline since May. Gasoline supplies rose 222,0000 barrels to 227.4 million.

Diesel futures for November delivery advanced 2 per cent to $US1.5856 a gallon after touching $US1.5923, the highest since October 2015.

An agreement among OPEC and non-OPEC states to limit oil production could slash global supply by 1.2 million barrels a day and add as much as $US15 to prices, said Venezuelan Oil Minister Eulogio Del Pino. OPEC would collectively cut output by 700,000 barrels a day under the accord hashed out last week in Algiers, while non-OPEC states would reduce production by another 500,000 barrels a day, he said in an emailed statement on Tuesday.


http://www.theage.com.au/business/e...es-fall-for-a-fifth-week-20161005-grvwel.html
 
http://www.theage.com.au/business/e...n-on-russia-saudi-pledge-20161010-grz9lt.html

Oil reaches year high in London on Russia, Saudi pledge

Nayla Razzouk, Grant Smith and Elena Mazneva
October 11 2016 - 5:55AM

Saudi Arabia and Russia, the world's two largest crude oil producers, said they're ready to cooperate to limit output, helping send prices to a one-year high in London.

Russia is willing to join OPEC's efforts to stabilise the market, which would require either a freeze or a cut, President Vladimir Putin said on Monday at the World Energy Congress in Istanbul. Many producers outside the group have expressed a willingness to cooperate on output caps, said Saudi Arabia's Energy and Industry Minister Khalid Al-Falih, who added that he was "optimistic" there'll be a deal that could lift prices as high as $US60 by year-end.

Brent prices reached a one-year high of $US53.73 a barrel in London. Both Saudi Arabia's Al-Falih and BP chief Bob Dudley said that oil prices of about $US60 a barrel by year-end are possible.

Coordinated output curbs by Russia and the Organisation of Petroleum Exporting Countries, who together pump about half the world's oil, could boost fuel prices for consumers and revive the fortunes of a battered energy industry. While Putin's comments are the firmest indication yet that such an agreement is possible, Russia is still pumping at record levels and has stopped short of a commitment to pull back. OPEC members also have many hurdles to overcome before implementing their first cuts in eight years.

"It's a little bit early to start celebrating an agreement," Tord Lien, Norway's Petroleum and Energy Minister, said in an interview with Bloomberg TV on Monday. "They have made great progress, and this could end up in an agreement that will materialise around Christmas and the first quarter of next year."

Ministers from some of the largest oil-producing nations are gathering in Turkey this week to discuss ways to end a two-year supply glut. With benchmark Brent crude trading at about $US53 a barrel - less than half its price in mid-2014 - countries including Saudi Arabia remain under severe economic pressure, prompting last month's surprise reversal of its policy of pumping without constraints.

OPEC agreed in principle on September 28 in Algiers to limit output to a range of 32.5 million to 33 million barrels a day, compared with production last month of about 33.75 million. While the deal has helped lift crude prices by about 15 per cent, precise details of who would make the cuts or whether producers outside the group would join weren't finalised.

An OPEC committee will work on the details of how to share the burden of cuts and present its proposals at a formal November 30 meeting in Vienna. Ministers from some group members, including Saudi Arabia and Algeria, will meet with non-OPEC nations including Russia and Azerbaijan in Istanbul on Wednesday to discuss wider cooperation.

"Russia is ready to join in joint measures to limit output and calls on other oil exporters to do the same," Putin said. "In the current situation, we think that a freeze or even a cut in oil production is probably the only proper decision to preserve stability in the global energy market."

So far this month, Russia has pumped crude and and a light oil called condensate at a rate of 11.2 million barrels a day, according to preliminary data from the Energy Ministry's CDU-TEK unit. If that continued for the whole month, it would set a post-Soviet record, beating September's 11.1 million barrels a day. Russia would prefer to freeze its output at current levels rather than make reductions, Energy Minister Alexander Novak said earlier on Monday in Istanbul.

For the Algiers production deal to work, Saudi Arabia would need to make some cuts. The kingdom pumped 10.58 million barrels of crude a day in September, just shy of its July record of 10.66 million, according to data compiled by Bloomberg.

Brent prices reached a one-year high of $US53.73 a barrel in London. Both Saudi Arabia's Al-Falih and Bob Dudley, the chief executive officer of BP, said that oil prices of about $US60 a barrel by year-end are possible.

While traders have clearly welcomed the comments from Saudi Arabia and Russia, "caution may be the best practice", Naeem Aslam, chief market analyst at ThinkMarkets UK Ltd, said by email. "If history tells us anything, it is that these major oil players also have the habit to not respect the agreed agreement."

http://www.theage.com.au/business/e...n-on-russia-saudi-pledge-20161010-grz9lt.html
 
Are Drillers going back to Work ?, we can only hope so.....
A bit of action in PCL Share trading this week as well......
It may take a bit more to get the deep water guys going again though.

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http://www.rigzone.com/news/oil_gas...l_Rig_Count_Extends_Recovery_Amid_Crude_Rally

Baker Hughes: US Oil Rig Count Extends Recovery Amid Crude Rally

by Reuters
Friday, October 07, 2016

The number of rigs drilling for oil in the United States rose this week, extending one of its best recoveries with no cuts for 15 straight weeks, with analysts expecting more additions after crude prices climbed back over $50 a barrel.

Drillers added three oil rigs in the week to Oct. 7, bringing the total count up to 428, the most since February, but still below the 605 rigs seen a year ago, according to energy services firm Baker Hughes Inc on Friday.

That 15-week streak of not cutting rigs was the third longest since 1987, following 19 weeks in 2011 and 17 weeks in ended in 2010.

The oil rig count plunged from a record high of 1,609 in October 2014 to a six-year low of 316 in May after crude collapsed from over $107 a barrel in June 2014 to near $26 in Feb. 2016 in the biggest price rout in a generation due to a global oil glut.

But after crude briefly climbed over $50 a barrel in June, drillers have added 112 oil rigs. Analysts said prices over $50 would prompt energy firms to return to the well pad.

U.S. crude futures this week climbed over $50 a barrel to four-month highs, spurred by ongoing talks of an OPEC production cut. Prices on Friday eased to just below $50 on profit-taking from the nearly 15-percent rally since the group announced plans to reduce output on Sept. 28.

Looking ahead, analysts forecast the rig count would jump higher in 2017 and 2018 when prices were expected to rise with publicly-traded energy firms planning to spend more on drilling to increase production.

Futures for calendar 2017 were trading at about $53 a barrel, while calendar 2018 was around $54.

Analysts at Simmons & Co, energy specialists at U.S. investment bank Piper Jaffray, this week forecast total oil and natural gas rig count would average 498 in 2016, 656 in 2017 and 866 in 2018.

That compares with an average of 482 oil and gas rigs active so far this year, according to Baker Hughes data. That compares with an average of 978 oil and gas rigs active in 2015.

(Reporting by Scott DiSavino; Editing by Marguerita Choy)

http://www.rigzone.com/news/oil_gas...l_Rig_Count_Extends_Recovery_Amid_Crude_Rally

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http://www.bbc.com/news/business-37610287

Oil price lifted by Russia backing Opec production freeze

10 October 2016

Russia has said it will support a proposal by Opec to freeze oil production in order to reverse the slump in global prices.

The move lifted the price of oil, with Brent crude hitting a one-year high. "Russia is ready to accede to joint measures to reduce [oil] production, and is calling on other oil exporters to do so," said Russian President Vladimir Putin.

"We support the recent Opec initiative to set production limits," he added.

In late afternoon Brent Crude oil was trading up by 2.5% at $53.21 a barrel, just off the $53.73 high hit earlier on Monday.

Speaking at the World Energy Congress in Istanbul, Mr Putin said that oil prices had "more than halved" in two years due to surplus production, provoking a "cycle of decreasing investment".

He said that if the trends persisted, they would give way to oil shortages and "new, unpredictable price hikes".

He expects to reach an agreement to support a cut at Opec's next meeting in November, he said.

"Of course, this will also cool down speculative activities and help avoid new price fluctuations," he said.

In September, members of the The Organisation of the Petroleum Exporting Countries (Opec) voted to cut production for the first time in eight years.

The group's 14 members produce about a third of the world's oil and have been hit hard by falling prices, as has Russia.

Opec aims to agree to cut around 700,000 barrels per day at its policy meeting on 30 November in Vienna, bringing its output to 32.5-33 million barrels per day.

In September, Opec ministers agreed to cut oil production for the first time in eight years but some analysts have questioned whether all of its members will stick to the agreement.

Differences between Iran and its regional rival, Saudi Arabia, have thwarted efforts to reach a deal in the past, and Russia's latest intervention may have little impact, said John Hall, chairman at Alfaenergy group

"Russia and Opec have not worked well in the past, and while Vladimir Putin promising joint measures is welcome, whether he sticks to it is another matter," he said.

"You've also got to see the wider context: Saudi Arabia and Iran are in a proxy war in Yemen. It is still very doubtful they can come to an agreement whether Russia supports a cut or not."

However, John Kilduff, partner at New York energy hedge fund Again Capital, told the Reuters News Agency: "Putin coming out to say Russia will be part of the initiative has added another layer of credence to the speculation there will be a coordinated cut.

"At some point, the market will call them on it and say 'show us the cuts'."

In his speech Mr Putin also criticised unilateral sanctions, suggesting the US had blocked the expansion of more oil pipelines from Russia to Europe.

"The authorities in certain countries have been telling businesses to close profitable projects, refuse to buy fuel supplied via the shortest possible routes and at attractive prices," he said.

"Such actions do nothing to increase the stability of global energy system and also of the global economy as a whole."

http://www.bbc.com/news/business-37610287
 
Becoming a Substantial Holder

See : http://pancon.com.au/

See : LATEST NEWS

***********************************************
Share Price up 25% today to $ 0:005, then back down to $ 0:004 on the close.

10,960,001 shares changing hands in 28 trades for the day.
Looks like that there is a bit of life in the stock again. Its been a while.
 
Tullow, partners assess offshore Namibia drilling prospects

10/31/2016

WEST PERTH, Australia – Tullow Oil has completed much of the agreed work program for the EL 0037 permit in the Walvis basin offshore Namibia, according to partner Pancontinental Oil & Gas.

This included acquiring 3,000 sq km (1,158 sq mi) of 3D seismic; 1,000 km (621 mi) of 2D seismic; processing, interpretation, and mapping.

The partners are now determining which prospects will be high graded for a drilling campaign. The main prospects mapped on 3D data are Cormorant, Albatross, Seagull and Gannet North and South, all in the northern blocks of the license and on trend to Namibia’s first offshore oil discovery.

Combined prospective resources are 915 MMbbl of oil recoverable.

There may be additional potential in three leads and extensive not yet covered by 3D seismic.

http://www.offshore-mag.com/article...sess-offshore-namibia-drilling-prospects.html
 
Namibia due to award four offshore exploration licences
14 Oct 2016 00:00 GMT Updated 12 Oct 2016 07:31 GMT

NAMIBIA is set to award four offshore exploration licences before the end of the year, with a trio of players set to share the spoils, writes Eoin O’Cinneide.

A further two licences are under a process of evaluation. The southern African nation is also gearing up for a 2D onshore survey and a 3D offshore survey, with a 3D multi-client survey likely to be announced by the end of the year.

State player Namcor is keeping the lid on expected winners of fresh acreage, but it is understood that one player is set to be awarded two blocks, with two others getting one each.

The exploration terms would be four years, with one commitment well and a requirement to shoot 3D seismic.

No exploration wells are planned off Namibia before the end of the year. Anglo-Irish independent Tullow Oil is set to drill a wildcat on its licence PEL 37, perhaps next year.

http://www.upstreamonline.com/hardc...e-to-award-four-offshore-exploration-licences
 
Kenya pins prosperity hopes on oil

Release date: 9 December 2016

Kenya is eager to make its entry into the oil export business in 2017. It plans to start on a small scale, producing almost a million barrels over a period of two years.

There is concern, however, that plans are premature and profits will be hard to come by.

The promise of petrodollars has generated high expectations, especially in Turkana - the arid north-western region of Kenya where the oil was discovered.

The BBC's Nancy Kacungira went to Turkana to find out more for Africa Business Report.

http://www.bbc.co.uk/programmes/p04kscdj
 
Appointment of Executive Director
9 Dec 2016

Pancontinental Oil & Gas NL (ASX:pCL) is pleased to announce that its Company Secretary and Accountant, Mrs Vesna Petrovic has been appointed to the Board as Executive Director, effective today.

Mrs Petrovic joined Pancontinental in 2008 and has been Company Secretary since 2010. During her professional career she has had public listed company experience in numerous companies, particularly those who hold interests in Africa.

The current Pancontinental Board has a good mix of technical, operations, commercial, strategic and governance skills, which place the Company in a strong position to deliver on its strategic plan going forward.

Yours sincerely for and on behalf of
Pancontinental Oil & Gas NL

Ernie Myers
Executive Finance Director
www.pancon.com.au

Head Office – Level 1, 10 Ord Street, West Perth, Western Australia 6005
Postal Address - PO Box 1154, West Perth, Western Australia 6872
Telephone +61 8 6363 7090 Facsimile +61 8 6363 7099
ACN 003 029 543
 
On 16 December, Pancontinental Namibia (‘Pancontinental’) received a purported cash call from Tullow in the amount of US $552,897 claiming to represent 35% of the following costs allegedly incurred by Tullow in the 2014, 2015 and 2016 calendar years:

See More;

See Latest News :

19th. Dec 2016 - Namibia PEL 37

http://pancon.com.au/
 
Pancontinental challenges Tullow’s PEL 37 cash call
Monday, 19 December 2016 - 11:09

(Ecofin Agency) - Pancontinental Namibia on Monday announced that it has received a cash call claim in the amount of $552,897 from Tullow Oil. The claim, which was received on Friday, December 16, 2016, arises from alleged costs sustained by Tullow during the operatorship of the Namibian licence, PEL 37.

Tullow claims the amount which stands at $552,897 represents 35% of operatorship costs supposedly incurred by the company during the 2014, 2015 and 2016 calendar years. The costs includes common exploration costs, exploration licence management, Tullow’s local office costs, and non-project general exploration costs, Offshore Energy Today reports.

According to Pancontinental, the claim by Tullow was made in line with an amendment to the joint venture accounts, stemming from an internal review of costs sustained since 2014. Pancontinental added that it would seek full and complete details from Tullow concerning the issue.

The Namibian licence PEL 37 has the potential for joint prospective resources of over 900 million barrels of oil recoverable. Tullow operates the licence, with a drilling campaign required to commence by March 27, 2017.

Anita Fatunji

http://www.ecofinagency.com/compani...tinental-challenges-tullow-s-pel-37-cash-call
 
Freeze output at 32.5 million barrels per day
Friday, 23 December 2016 - 10:46

A committee set up by the Organization of Petroleum Exporting Countries (OPEC) to monitor the compliance of members and non-OPEC members with the global pact to cut oil output, are to meet at the beginning or in H1 of January, according to Kuwait's oil minister.

“We will meet in January with OPEC and non-OPEC countries and we will coordinate over the method in which (compliance with) the cut will be implemented. I personally think that the announcements coming from Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Iraq, and Russia are all encouraging signs that they will abide by the cut and hopefully other countries will follow suit,” Essam Abdul Mohsen Al-Marzouq, Kuwait’s oil minister, told Reuters on the sidelines of a meeting of the Organization of Arab Petroleum Exporting Countries (OAPEC) in Cairo.

The monitoring committee includes Algeria, Kuwait, Venezuela, and two participating non-OPEC countries, chaired by Kuwait and assisted by the OPEC Secretariat, is to closely monitor the implementation of and compliance with this Agreement and reports to the Conference.

OPEC at the end of November, in Vienna decided to reduce oil production by 1.2 million barrels per day and freeze output at 32.5 million barrels per day.

http://www.ecofinagency.com/public-...t-first-half-of-january-kuwait-s-oil-minister

The decision was supported by 11 non-OPEC countries, including Russia, which concluded their first deal since 2001 on December 10, 2016, with the organization to reduce their production by about 558,000 barrels per day from January 1, 2016 so as to ease a global oversupply after over two years of low prices.

Anita Fatunji
 
See an Up-date on ;
Namibia PEL 37


In December 2016, Pancontinental Oil & Gas NL on behalf of its subsidiary Pancontinental
Namibia Pty Ltd (“Pancontinental”, “the Company”) announced that it had received a cash
call from Tullow Oil (“Tullow”) in the amount of US $552,897

Go to;

http://pancon.com.au/

See Latest News.
 
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