the previous speaker’s view,adding that Chevron moved its specialists around the world and that its Russian professionals were greatly benefitting from this,as was Russia itself. Didier Baudrand noted the huge benefits of a highly educated people,but suggested there remains a lack of accountability and leadership,and that there is a need to change the Russian mindset. Torbjorn Becker pointed out that


many Russian entrepreneurs went to the US because it was difficult to commer- cialise products in Russia. He said Russian financiers and other financial backers in the country were very risk averse,terri- fied of finding out that they had backed a‘Skolvoka’,or white elephant. Chris Weafer then went on to comment that the perception of corruption in Russia might actually be worse than the reality, noting that simplification of rules and regulations can reduce opportunities for corruption. In terms of safety proce- dures,people will follow orders slavishly but the need was to change mindsets. Cordry concluded by stating that devel- oping a safety culture takes time. You need to get to the point where people can stop an unsafe process without fear of repercussions,he said.


African E&P developments Running parallel to the Russian pro- gramme,was a conference focusing on the Middle East (see Petroleum Review, March 2011) and another focused on Africa. Angus McCoss,Exploration Director,


Tullow Oil,began the Africa conference with an overview of Tullow’s latest developments in the region,claiming an 83% global exploration success rate for the company in 2010,with a number of successes already in 2011, including Tweneboa-3 and Teak-1,off- shore Ghana. Africa is a core continent of activity for Tullow. It is a prolific,yet under explored continent,with a rich diversity of basins with established hydrocarbon systems running through the whole geological interval,he said. Looking at the history of E&P in


Africa,he noted how there has been an increasing number of drilling successes since the 1960s,mainly due to advances in technology capability. However, between 2003 and 2009,African suc- cesses declined,despite a 50% increase in drilling activity. ‘What appears to have happened here is that we have only been drilling at the “low hanging fruit” in Egypt,Nigeria, Algeria, Libya, Congo and Angola,’ McCoss explained. Although there is still a lot more to find in these areas and some exciting oppor- tunities still exist – ‘it does now herald the dawn of a new era for exploration in new,under explored African plays


PETROLEUMREVIEW APRIL 2011


and basins,’ he noted. Tullow aims to open up these new


basins and will be focusing on the Equatorial Atlantic West Africa region, the East African rift basins and the East African transform margin. The undrilled Liberian basin offshore of West Africa looks geologically favourable. Tullow’s database now includes 10,000 sq km of 3D seismic data in the region. McCoss highlighted the Cobalt prospect in par- ticular – ‘remarkably similar to Jubilee on seismic’ – which will be drilled later this year.Meanwhile,the Ghana drilling programme continues with an active programme for 2011. Ghana’s gross resource potential is 4bn barrels,he said. Elsewhere,the East African Rift


system consists of arrays of Tertiary age rift basins with individual rift basins equivalent in size to the South Viking Graben. Various aged lacustrine type source rocks have been encountered throughout the system,with oil seeps found in some basins. However,not all of these basins are prospective,and it will be a major challenge to find exactly the right combination of geological factors. ‘Not all will be a Lake Albert, which really is in a “Goldilocks” zone,’ McCoss explained. Tullow has had a remarkable run of success in Uganda, which has an additional 1bn barrel potential upside,according to esti- mates. The company now hopes to replicate its Ugandan success in Kenya and Ethopia. In the East Africa Transform Margin – a region well known for its gas plays and heavy oil – Tullow’s extensive regional geological studies are instead focused on finding the ‘more elusive’ light oil play.


Local partnerships Next to speak was Galib Virani, Associate Director,Afren. Afren is a rel- atively new company,having been established in 2004 with the aim of focusing on partnering with local indigenous companies and national governments. A team with a strong African contingent has been put together,with the company recog- nising that over time,ownership will become increasingly idigenous. Afren aims to act as a bridge to asset owner- ship,working as a partner to bring capital and capacity to the local com- munity. The company has a diversified portfolio,with 27 assets across African countries producing about 16,500 gross b/d. A major development in Nigeria will be coming onstream soon,which is expected to increase production to 55,000 b/d. Noting that independent E&P com-


panies can be a key driver for continued economic and industrial growth in maturing basins,Virani gave


some examples of Afren’s partnerships and how they work,with a focus on Nigeria. Since the 1960s,the major oil companies have dominated E&P in the country,but have discovered a number of fields which haven’t yet been devel- oped. In Nigeria there is now a secondary market,where a company like Afren,having invested billions of dollars of capital,can reactivate fields. In 2006,Afren signed a financing and production sharing and technical ser- vices agreement with Amni,an established indigenous oil and gas company,for participation in the devel- opment of the Okoru Setu field, offshore south-east Nigeria. First oil was achieved in two years from entry. An important part of Afren’s model is


a high emphasis on community devel- opment. ‘This,to some extent, does mitigate some of the problems seen on the Delta,’ Virani noted. Afren tries to engage with the communities in a way that other operators in Nigeria haven’t done so,with a high emphasis on staff being employed from the local commu- nity. Partnership models like these will be key in countries like Nigeria in the future,he concluded.


Political instabilities Natznet Tesfay,Head of Africa Forecasting,Exclusive Analysis, focused on how likely changes in government are going to affect the regulatory and operating environments for the energy sector in three African states – Sudan, Nigeria and Uganda. Sudan is to be split in July into two


countries,the North and South, fol- lowing a vote that took place in February. Oil is Sudan’s main foreign currency earner,and the country exports almost all of its 500,000 b/d


Natznet Tesfay, Head of Africa Forecasting, Exclusive Analysis, speaking at the Africa conference


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