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Minutes of the Council of Ministers of Friday, June 17, 2022
I/- Ministry of Hydrocarbons
Invited by the President of the Republic to speak, Mr. Bruno Jean Richard ITOUA, Minister of Hydrocarbons, presented thirty (30) bills approving permits operated by various oil companies. It shows that the oil sector has experienced a decline in activity in recent years due to the economic, financial and then health crisis caused by the Covid-19 pandemic. The adoption of the new Hydrocarbons Code on October 12, 2016, as well as the repeal of establishment agreements from which certain oil companies benefited, generated numerous disputes which had the effect of aggravating the reduction in investments induced by the triple crisis with as a corollary a significant decline in production.
The objective of the amendments in question is to define a tax and customs framework and an incentive exchange regime for a resumption and even an acceleration of investments in the liquid and gaseous hydrocarbons sector, in strict compliance with the rules for the preservation of the environment.
It is not only a question of stopping the downward trend in production but of increasing it, in order to generate additional and new resources to support the financing of the PND 2022-2026.
These amendments relate in particular to the following topics:
Amendment No. 7 to the “Haute Mer” production sharing contract operated by TotalEnergies EP Congo: extension of the validity period of the NKOSSA permit by 20 years;
Amendments made by Perenco/Congorep: adjustment of production levels associated with taxation. These include:
Amendment No. 1 to the Yombo-Masseko production sharing contract;
Amendment No. 2 to the Tchendo II production sharing contract;
Amendment No. 2 to the Tchibeli-Litanzi II production sharing contract;
Amendment No. 2 to the Tchibouela II production sharing contract.
The list of all 30 amendments, which concern the companies TotalEnergies EP Congo, ENI Congo SA and Perenco Congo/Congorep, is appended to this report of the Council of Ministers.
These amendments should allow foreign direct investments of more than 2 billion US dollars in the Congolese oil industry, in addition to the investments being implemented or scheduled under the production sharing contracts not concerned by the amendments submitted. consideration of today's Council of Ministers meeting.
Finally, Minister ITOUA noted that in addition to these investments, the payment of bonuses is planned, after adoption by Parliament of the amendments submitted today for the approval of the Council of Ministers.
After discussion, the Council of Ministers ratified the bills approving the thirty (30) amendments to the production sharing contracts submitted for its examination. These bills will be submitted to Parliament for consideration and adoption.
https://gouvernement.cg/compte-rendu-du-conseil-des-ministres-du-vendredi-17-juin-2022/
Take a look at the 'Republic of the Congo 2019 EITI Report'
On EITI.org that report is dated 1.dec.2021
Look at table, page 216,- There, clearly Tilapia II is listed, all that is missing is start/end dates for the license. AAOGC as operator 56%, SNPC as 'holder' with 44%
https://eiti.org/sites/default/files/attachments/itie_congo_2019_version_finale.pdf
? June 8, 2022
"Zenith Energy secured a 25-year license to continue operating the Tilapia oilfield in 2021"
https://energycapitalpower.com/biggest-oil-producer-in-africa-in-2022/
I guess Rob-1 is just where ZEN is showing off their operational excellence as an operator
@AGEOS
You are aware that the award was 14.12.21?
Décret n° 2021-539 du 14 décembre 2021
sgg.cg/JO/2021/congo-jo-2021-51.pdf
@Callit
If my suspicions are correct, the warrants will never be purchased by this particular "financial institution". :-) )
Oil: Trident OGX will exploit the MKB II field
Wednesday, May 18, 2022 - 5:30 p.m.
The American company managed to take operator status on the MKB concession ( Mengo, Kundji and Bindi), operated until then by the National Petroleum Company of Congo (SNPC). The process of transferring the MKB II permit from SNPC to Trident OGX was launched on May 17 in Brazzaville, bringing together all parties involved.
Negotiations for the transfer of the MKB II concession involve the company Trident OGX, Orion Oil LTD, SNPC and the Congolese government. They aim, according to the parties, to strengthen the collection of data with a view to increasing the production of the oil field. The operating permit was granted to the American company by decree no. 2021-539 of December 14, 2021, for a period of twenty years.
The launch of the transfer of the operating license of MKB II to Trident is an important step in the development of the oil block, estimated the managing director of Trident OGX, John W. Chisholm. " It's about seeing how we are going to work together in the spirit of collaboration and partnership and to mobilize experts in order to strengthen the capacities of the SNPC, to share and analyze block data, to maximize production ,” said John W. Chisholm.
A study conducted by the SNPC for the reassessment of the hydrocarbon potential and the implementation of the development plan on the MKB II field revealed the existence of areas of interest not yet exploited, as well as the need to use new technologies better suited to the characteristics of the fields, with a view to boosting production. The results of the seismic reprocessing and reinterpretation are very interesting and confirm the potential of the block.
The deposits of the MKB field were discovered in the 1980s, the site is composed of three deposits (Mengo, Kundji and Bindi) located respectively 15, 20 and 25 km from the Djeno oil terminal. The MKB II production sharing contract was signed in June 2018 by the State, SNPC (60%) and Orion Oil LTD (40%). SNPC took over these fields and carried out two 3D seismic surveys, over a total area of ??240 km². It has drilled and brought into production eight wells, which produced 1,437,440 barrels, on the Kundji field alone.
https://www.adiac-congo.com/content/petrole-la-societe-trident-ogx-va-exploiter-le-champ-mkb-ii-137877
Robbana Conventional Oil Field, Tunisia
By Carmen
Carmen is a robot, or rather an algorithmic journalist, who creates valuable automated content for our audiences.
https://www.offshore-technology.com/marketdata/robbana-conventional-oil-field-tunisia/
According to this, ZENs plans are to reach 20 000 BOD within 18 months. You don't get there with excuses; (PS you can test your vacation language skills in this, or use settings to change from spanish to english text)
https://www.youtube.com/watch?v=vPwLu-tia7U&t=8s
I had a discussion going with MG regarding the possibilities they actually have....According to their RNSs they should have been close to 1000BOD on just Robbana & El Bibane, but that has not happened? In any of the cases, they would had to lease competence, but for income of $3mill pr month in today's price environment would have given ZEN leverage in both cash and showing competence.
Well, as AC said "However, in the interests of a clear strategic vision and the avoidance of protracted delays........." :-))
It already looks like he has started on his 40 years in the desert
Q is whether this court date is set to affirm case merit or if case is confirmed and will be initiated from here?
ADME RNS;
"Further to the announcement of 17 January 2022, the Company has been advised that the Court has further adjourned this matter until 5 May 2022."
Maybe a change in 'modus operandi'
It remains to be seen...........
I think the share price easily could have exceeded 3P by now, with a little EITI compliance.
This is after all 2022
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@investverysmart
The sale of oil should be pretty much straight forward, but the interesting question is what where the cash will be spent,- 'working capital' out in the sand or investment in oil producing assets?
The amount and price is bob-bob known as in the excess of $10M
From a strategic point, one should expect a lot to happen, with such amount of cash at hand?
But, what are they negotiating and how far are they in?? It has been awfully quiet from HQ lately.
Tilapia may not be far away now.......
From Viking_I, Norwegian forum:
Report Dated 17th March for Bondholders.
https://wp-zenith-2020.s3.eu-west-2.amazonaws.com/media/2022/03/315-033-Prospectus-2022-final-approved.pdf
Look like there is understanding between Congolese Government and Zenith, Work already started towards drilling campaign as Zenith invested an initial GBP 250,000 out of USD 2.2 Million from Zenith + ($5.7million loan) required to complete the well.
Page - 52
Action required in the Republic of the Congo:
1. Collection of the outstanding amount of USD 5.7 million from SNPC by AAOG Congo. The Issuer and SNPC are in discussions in order to settle this issue and all capital expenditure will be deferred until the proceeds are received.
2. Upon the award of the Congo Licence II: completion of the drilling of the Tilapia II well. The previous owner of the Tilapia II oilfield completed the drilling well at 80 per cent. Geological studies affirmed that by expanding the completion level to 100 per cent a considerable additional oil production can be expected. The respective costs amount to a total of approximately USD 5 million.
The Group intends to invest an additional amount of USD 2.2 million to increase the level of completion of the drilling, i.e. a total of USD 7.2 Million. This expenditure is at the discretion of the Group, is not contracted, and will be conditional on receipt of the receivable set out in item 1 above.
3. The net requirement is therefore approximately USD 1.9 million. An initial GBP 250,000 of which has been allocated from the subscription of new common shares issued on 2 November 2021.
4. The Issuer estimates that the production from the developed well will stand at 2,000 to 2,500 barrels of oil per day.
The value of the pledged shares is currently below 10% of, only, the first “Drawdown” from the loan.......unless something exempt from *the public* has been signed?