Developing the Oil & Gas market Mauritania as a destination for - - PowerPoint PPT Presentation

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Developing the Oil & Gas market Mauritania as a destination for - - PowerPoint PPT Presentation

Nov 07, 2023 511 likes •789 views

Rpublique Islamique de Mauritanie Ministre du Ptrole, de lEnergie et des Mines Direction Gnrale des Hydrocarbures Developing the Oil & Gas market Mauritania as a destination for Oil and Gas majors Moustapha BECHIR Director

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République Islamique de Mauritanie Ministère du Pétrole, de l’Energie et des Mines Direction Générale des Hydrocarbures

Moustapha BECHIR Director General Of Hydrocabons

Developing the Oil & Gas market

Mauritania as a destination for Oil and Gas majors

October 2019

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Summary

❑ Why invest in Mauritania ? ❑ What potential does Mauritania have ? ❑ What are the Recent developments ?

Direction Générale des Hydrocarbures

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 Hydrocarbons Law : Adopted in 2010 (Loi N°2010-033), amended in 2011 (Loi N°2011-044), and in 2015 (N°2015-016 ). Key new elements : ➢ Approval of PSCs by decree (instead of law) : flexibility; ➢ Possibility for non exclusive reconnaissance authorization; ➢ Operators to adhere to the ITIE; ➢ Clarity on the fiscal regime, treated on the contractual level; ➢ Profit Oil sharing based on R Factor: attractiveness

 Decree for petroleum licensing (N°2011-230);

 Production Sharing Contract model ;

Direction Générale des Hydrocarbures

WHY INVEST IN MAURITANIA?

All Importations of materials and goods necessary for the good execution of the petroleum operations are subject to the VAT either at zero rate, or shall be brought in under the temporary importation procedure which suspends payment of VAT for the property brought in under this particular customs practice.

Legal Framework

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Direction Générale des Hydrocarbures

 Key elements of the PSC

➢ Bonus : Signature/ Production : negotiable; ➢ Training / Promotion budgets : negotiable; ➢ Environmental Commission : negotiable; ➢ NOC Capacity building : negotiable; ➢ Exploration Period : 10 years maximum / 3 phases; ➢ Relinquishment : 25% at each renewal; ➢ Production Period : 25 years (Oil) & 30 years (Gas), renewable

  • nce for 10 years;

➢ Cost Oil : Negotiable, with « cost stop » (60% for Oil / 65% for Gas); ➢ P.O. share : based on “R factor”, Negotiable; ➢ Income Tax : negotiable (common rate: 25% and UP).

WHY INVEST IN MAURITANIA?

Legal Framework

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 Blocks awarding process

Direction Générale des Hydrocarbures

The HC Law set up the principles of a CEP bidding process but allows also for direct negociations (Article 18 of the Law 2011-044)

1 week 1 week 2 weeks

WHY INVEST IN MAURITANIA?

Legal Framework

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Direction Générale des Hydrocarbures

 Attractiveness and modernity of the legal and investment framework  Stability and security  Transparency, Mauritania has been declared in 2017 compliant with the 2016 ITIE standards  Incentives for fiscal treatment for Contractors and subcontractors

WHY INVEST IN MAURITANIA?

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WHAT POTENTIAL DOES MAURITANIA HAVE ?

Direction Générale des Hydrocarbures

Four main geological units

Geological Framework

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Direction Générale des Hydrocarbures

▪ Activities undertaken ❑ Surface: 500 000 km2 ❑ 44 blocs ❑ 2 Operators was present until 2017 ❑ 15 015 km of 2D seismic ❑ 5 wells have been drilled ▪ Taoudenni Basin

WHAT POTENTIAL DOES MAURITANIA HAVE ?

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Direction Générale des Hydrocarbures

▪ Taoudenni Basin Two main reservoirs(up to 20% porosity) Two petroleum systems(Infracambrian et Silurian)

WHAT POTENTIAL DOES MAURITANIA HAVE ?

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Direction Générale des Hydrocarbures

▪ Taoudenni Basin Two main reservoirs(up to 20% porosity) Two petroleum systems(Infracambrian et Silurian)

WHAT POTENTIAL DOES MAURITANIA HAVE ?

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Direction Générale des Hydrocarbures

▪ Coastal Basin

Source-reservoir pairing

Probable

s s

Proven Possible

s

WHAT POTENTIAL DOES MAURITANIA HAVE ?

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Direction Générale des Hydrocarbures

▪ Coastal Basin

WHAT POTENTIAL DOES MAURITANIA HAVE ?

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Direction Générale des Hydrocarbures

▪ Coastal Basin

Gamma Ray Resistivity

Reservoir Gas Depth in Meters

4100 4300 4500 4200 4400 4600 4700 4800 4900 5000 5100

Late Cretaceous Albian

Guembeul-1A

(Offshore Senegal River Depo-Center)

a

P a l e o g e n e

950m 850m

Late Cretaceous

500m

Apto / Albian

2 5 5 0 1170m

OCT-1B MTO-2

Camp - Maas Ceno - Sant

Autruche-1 LDM-1 OCT-2

Albian - Ceno

C13 Faucon-1 Fregate-1 V-1

TB-1

Present-Day Drainage Systems

Senegal Tortue-1 Marsouin-1 Guembeul-1A Teranga-1

Toundou Besset -1

(Onshore Senegal River Depo-Center)

Sand Supply / Depositional Fairways

WHAT POTENTIAL DOES MAURITANIA HAVE ?

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Direction Générale des Hydrocarbures

▪ Activities undertaken ▪ Coastal Basin ❑ Surface: 184 000 km2 ❑ 34 blocs in which (16) under contract ❑ 6 Operators present ❑ 91 659 km of 2D seismic ❑ More than 97 259 km2 of 3D seismic ❑72 wells drilled (44 exploration) ❑ 9 discoveries

4 Majors present

WHAT POTENTIAL DOES MAURITANIA HAVE ?

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Direction Générale des Hydrocarbures

❑ Chinguetti (2001), Zone B ❑ Banda (2002), Zone A ❑ Walata (2003), Zone B ❑ Pélican (2003), C7 ❑ Tevet (2004), Zone B ❑ Labeidna (2005), Zone B ❑ Aigrette (2006), C7 ❑ Ahmeyim (Ex-Tortue) (2015), C8 ❑ Bir Allah (Ex- Marsouin) (2015), C8

▪ Coastal Basin ▪ Discoveries

WHAT POTENTIAL DOES MAURITANIA HAVE ?

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Direction Générale des Hydrocarbures

▪ Coastal Basin ▪ Discoveries in C10 area (Excluded from block C10)

Walata Banda Tevet Distance / shore (km) 90 Km 61 Km 90 Km WD 2000 m 290 m 500 m Reserves 400 MMSTB STOIIP 1.2 TCF RR 0.9 TCF 120MMSTB STOIIP/GIIP

An integrated development can be envisaged to produce Oil/Condensate and Gas for Domestic Market and export Options: Gas To Power, Small Scale LNG, LNG to Power, GTL…

WHAT POTENTIAL DOES MAURITANIA HAVE ?

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RECENT DEVELOPMENTS OF THE SECTOR AND VISION

Direction Générale des Hydrocarbures

Thanks to the clarity and the transparency of the contractual framework

 Attracting new players (Majors)  Intensifying exploration activities  Maximizing the synergies between players

First step: Establishing an LNG Hub 2nd Step: Developing power sector 3rd Step: Diversifying the economy

2022 2022-2025 2030

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GREATER TORTUE AHMEYIM GTA

Direction Générale des Hydrocarbures  Discovered in 2015  Resources of 15Tcf

Subsea wells and Production system Breakwater and the FLNG 3: FPSO

 505 mmscfd  10 000 bpd condenstae  2.3 Mtpa LNG  125, 000 m3 storage  LNG carriers sized between 125,000 m3 and 215, 000 m3

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Direction Générale des Hydrocarbures

GREATER TORTUE AHMEYIM GTA

FPSO

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Direction Générale des Hydrocarbures

GREATER TORTUE AHMEYIM GTA

Breakwater

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Direction Générale des Hydrocarbures

GREATER TORTUE AHMEYIM GTA

  • Nouakchott

port material

  • ffloading

facility

  • upgrade

to

  • perate in SIMOPS with existing port

traffic

  • Logistics base and offices to manage
  • perations – 5000/te per day of rock
  • Rock

stockpile yard (12Ha) to provide vessel loadout.

  • El-Asma

Quarry 130km NW of Nouakchott - 26 Ha including offices, roads, explosives warehouses, laydown areas

  • local personnel
  • 7000cm

rock blasted every day

  • 40 kM by-pass road and upgrades to avoid rock

transportation through Nouakchott city centre

  • 120 locally sourced trucks and drivers to safely deliver of

7,000 tons / day from El-Asma quarry to Nouakchott harbour (130km)

  • Sand from offshore for caisson ballasting (>600 km3)
  • Community relations – N’Diago

Local content

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Direction Générale des Hydrocarbures

GREATER TORTUE AHMEYIM GTA

  • ACI signed in February 2018
  • FID was taken in December 2018
  • Field in development phase
  • Marketing in final process for SPA
  • Financing of the NOCs secured

Milestones

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Direction Générale des Hydrocarbures

GREATER TORTUE AHMEYIM GTA

▪ GTA phases 2 & 3

2019 2020 2021 2022 2023 2024 2025 Phase 1 Phases 2 / 3

Concept Development Optimize Define FID Phases 2/3 First Gas Phase 2 First Gas Phase 3 Commencement of Commercial Operations

Execute for Phases 2 / 3 Production Execute (Construction / Conversion) Phase 1 Production Production

Phase 1 will deliver first gas in 2022, and have an offtake of 2.3 Mtpa Subsequent Phases 2/3 will increase the offtake to ~9.7 Mtpa

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2020 AND BEYOND OUTLOOK

Direction Générale des Hydrocarbures

Acquisition seismic

3D seismic will be done by Shell on block C10 in 2020 2D seismic: Seismic speculative will be done by TGS in 2020

 Wells to be drilled (2020-2023): 13 wells

Total, BP and Tullow in 2020/2021

 Development of GTA (first gas 2021-2022)  Others small fields development  New players, E&P and services  Taoudenni Basin new promotional strategy

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CONCLUSION

Direction Générale des Hydrocarbures

 An attractive and modern legal and investment framework  Transparent procedure of PSC awarding  Security and stability climate  Proactivity and business understanding (Oil Culture)  Basins under-explored and very promising

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Thank you for your attention