Which Satellites Aid Oil Exploration in Africa?
Close observers of the oil industry have been noting for some time now that oil reserves in West Africa are going to play an increasing role in meeting the world’s energy needs in the coming years. That observation is no longer merely predictive; it’s evident in the financial press.
The Financial Times reports that Tullow is expanding its operations in West Africa:
Tullow Oil told investors to prepare for a significant increase in investment and drove the point home by saying it would maintain, rather than increase, the interim dividend.
It has increased its exploration spend to 45 per cent of a forecast 2007 capital expenditure of £415m. Last year exploration accounted for 30 per cent. More than £100m will go towards accelerating appraisal work in Ghana and Uganda.
Earlier this year the company skewed its capital expenditure away from the North Sea and towards Africa, underlining its reputation as an exploration-driven company. Discoveries in Ghana and Uganda each have the potential to double Tullow’s reserve base, according to Aidan Heavey, chief executive.
India’s Bharat is also looking for a stake, according to Reuters:
State-run Bharat Petroleum Corp (BPCL) plans to spend up to 15 billion rupees ($370 million) on exploration over two to three years and is scouting overseas for development or producing fields, its chairman said on Tuesday.
India’s third-largest refiner sees exploration and production as growth drivers and is looking for assets in West Africa, Brazil, South America and Australia, chairman Ashok Sinha told Reuters in an interview.
Offshore, Anadarko has hit paydirt (again) in the waters off Ghana:
Anadarko Petroleum Corporation (NYSE:APC) today announced its second oil discovery offshore the Republic of Ghana. The Hyedua-1 well is located on the Deepwater Tano license in approximately 5,020 feet of water, 3.3 miles southwest and down dip from the Mahogany-1 discovery well, which Anadarko announced in June 2007.
And, of course, China continues to position itself in an attempt to gain access to Africa’s oil reserves:
HONG KONG, Aug 30 (Reuters) – China’s top offshore oil and gas producer CNOOC Ltd (0883.HK: Quote, Profile , Research) has defended its search for new acreage in Africa against critics who say China is desperate to secure oil reserves at any price to fuel its roaring economy…
Chief Financial Officer Yang Hua told Reuters that there was one criterion for investments: "Value. If there’s no value, no deal," he said.
CNOOC is already in Nigeria, Kenya and Equitorial Guinea.
The Nigerian presence includes a 45 percent interest in the OML 130 block operated by Total (TOTF.PA: Quote, Profile , Research), which Yang said had been appraised at 1.2 billion barrels of proved and probable reserves by energy consulting firm Wood Mackenzie.
While there’s no doubt from the news that oil exploration in Africa is booming, how do all these companies connect their new drilling platforms once they enter the extraction stage?
The answer, of course, is satellites. Three birds in particular help bring African crude to the global marketplace: SES’s NSS-10, Intelsat’s IS-1R, and Eutelsat’s W Series.
