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

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


  1. République Islamique de Mauritanie Ministère du Pétrole, de l’Energie et des Mines Direction Générale des Hydrocarbures Developing the Oil & Gas market Mauritania as a destination for Oil and Gas majors Moustapha BECHIR Director General Of Hydrocabons October 2019

  2. Summary ❑ Why invest in Mauritania ? ❑ What potential does Mauritania have ? ❑ What are the Recent developments ? Direction Générale des Hydrocarbures

  3. W HY INVEST IN M AURITANIA ? Legal Framework  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 ; 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. Direction Générale des Hydrocarbures

  4. W HY INVEST IN M AURITANIA ? Legal Framework  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 once 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). Direction Générale des Hydrocarbures

  5. W HY INVEST IN M AURITANIA ? Legal Framework  Blocks awarding process 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 Direction Générale des Hydrocarbures

  6. W HY INVEST IN M AURITANIA ?  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 Direction Générale des Hydrocarbures

  7. W HAT P OTENTIAL D OES M AURITANIA HAVE ? Geological Framework Four main geological units Direction Générale des Hydrocarbures

  8. W HAT P OTENTIAL D OES M AURITANIA HAVE ? ▪ Taoudenni Basin ▪ 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 Direction Générale des Hydrocarbures

  9. W HAT P OTENTIAL D OES M AURITANIA HAVE ? ▪ Taoudenni Basin Two main reservoirs(up to 20% porosity) Two petroleum systems(Infracambrian et Silurian) Direction Générale des Hydrocarbures

  10. W HAT P OTENTIAL D OES M AURITANIA HAVE ? ▪ Taoudenni Basin Two main reservoirs(up to 20% porosity) Two petroleum systems(Infracambrian et Silurian) Direction Générale des Hydrocarbures

  11. W HAT P OTENTIAL D OES M AURITANIA HAVE ? ▪ Coastal Basin Proven Probable Possible s s Source-reservoir pairing s Direction Générale des Hydrocarbures

  12. W HAT P OTENTIAL D OES M AURITANIA HAVE ? ▪ Coastal Basin Direction Générale des Hydrocarbures

  13. W HAT P OTENTIAL D OES M AURITANIA HAVE ? ▪ Coastal Basin Sand Supply / Depositional Fairways Toundou Besset -1 (Onshore Senegal River Depo-Center) Guembeul-1A P a l e o g e n e (Offshore Senegal River Depo-Center) Gamma Ray Resistivity 4100 Late Cretaceous a 4200 1170m Late Cretaceous 4300 Camp - Maas Fregate-1 V-1 OCT-2 4400 OCT-1B 4500 Ceno - Sant LDM-1 850m 4600 MTO-2 Marsouin-1 TB-1 C13 4700 Faucon-1 Albian Autruche-1 2 5 5 0 Tortue-1 4800 Senegal 950m Guembeul-1A 4900 Apto / Albian Teranga-1 Albian - Ceno 5000 Present-Day Drainage Systems 5100 500m Reservoir Depth in Meters Gas Direction Générale des Hydrocarbures

  14. W HAT P OTENTIAL D OES M AURITANIA HAVE ? ▪ Coastal Basin ▪ Activities undertaken 4 Majors present ❑ 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 Direction Générale des Hydrocarbures

  15. W HAT P OTENTIAL D OES M AURITANIA HAVE ? ▪ Coastal Basin ▪ Discoveries ❑ 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 Direction Générale des Hydrocarbures

  16. W HAT P OTENTIAL D OES M AURITANIA HAVE ? ▪ Coastal Basin ▪ Discoveries in C10 area (Excluded from block C10) Walata Banda Tevet Distance / 90 Km 61 Km 90 Km shore (km) WD 2000 m 290 m 500 m 0.9 TCF Reserves 400 MMSTB 1.2 TCF 120MMSTB STOIIP RR 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… Direction Générale des Hydrocarbures

  17. R ECENT D EVELOPMENTS OF THE SECTOR AND V ISION Thanks to the clarity and the transparency of the contractual framework  Attracting new players (Majors)  Intensifying exploration activities  Maximizing the synergies between players 3rd Step: Diversifying the economy 2 nd Step: Developing power sector First step: Establishing an LNG Hub 2022-2025 2030 2022 Direction Générale des Hydrocarbures

  18. G REATER T ORTUE A HMEYIM GTA  505 mmscfd  Discovered in 2015 3: FPSO  10 000 bpd condenstae  Resources of 15Tcf Breakwater and the FLNG Subsea wells and Production system  2.3 Mtpa LNG  125, 000 m3 storage  LNG carriers sized between 125,000 m3 and 215, 000 m3 Direction Générale des Hydrocarbures

  19. G REATER T ORTUE A HMEYIM GTA FPSO Direction Générale des Hydrocarbures

  20. G REATER T ORTUE A HMEYIM GTA Breakwater Direction Générale des Hydrocarbures

  21. G REATER T ORTUE A HMEYIM GTA Local content Nouakchott port material • • El-Asma Quarry 130km offloading facility - upgrade to NW of Nouakchott - 26 Ha operate in SIMOPS with existing port including offices, roads, traffic explosives warehouses, • Logistics base and offices to manage laydown areas operations – 5000/te per day of rock • local personnel Rock stockpile yard (12Ha) to • 7000cm rock blasted • provide vessel loadout. 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 Direction Générale des Hydrocarbures

  22. G REATER T ORTUE A HMEYIM GTA Milestones • 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 Direction Générale des Hydrocarbures

  23. G REATER T ORTUE A HMEYIM GTA ▪ GTA phases 2 & 3 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 2019 2020 2021 2022 2023 2024 2025 Phase 1 Execute (Construction / Conversion) Phase 1 Production Phases 2 / 3 Execute for Phases 2 / 3 Production Production Concept Define Development Commencement of First Gas First Gas FID Optimize Commercial Operations Phase 2 Phase 3 Phases 2/3 Direction Générale des Hydrocarbures

  24. 2020 AND BEYOND OUTLOOK  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 Direction Générale des Hydrocarbures

  25. C ONCLUSION  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 Direction Générale des Hydrocarbures

  26. Thank you for your attention

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