At last, BP Angola spews forth

PRODUCTION has begun at Greater Plutonio the giant offshore Angola oil field. BP Angola is the Operator and production finally started on October 1. Greater Plutonio consists of five distinct fields discovered in 1999-2001 in water depths of up to 1,450 metres and is the first BP-operated asset in Angola. The Greater Plutonio offshore development area is located 160 kilometres northwest of Luanda and is comprised of the Galio, Cromio, Paladio, Plutonio and Cobalto fields in water depths varying from 1200 to 1450 metres. It will contain 43 wells: 20 producers, 20 water injectors, and 3 gas injectors. The development utilizes a floating, production, storage and offloading vessel (FPSO) to process produced fluids and export crude. The FPSO is connected to the wells by a large subsea system. The FPSO is 310 metres in length and has an oil storage capacity of 1.77 million barrels, oil processing of up to 240,000 barrels of oil per day, produced and treated water injection rate of 450,000 barrels per day, and gas handling of up to 400 million standard cubic feet per day. It is held in position by 12 mooring lines connected to anchor piles on the seabed. The heart of the Greater Plutonio subsea system is the longest single riser tower system of its kind in the world. At some 1,258 m, it connects the FPSO to a network of subsea flowline and control systems that include 150 km of flowlines, 9 manifolds and 110 km of instrument and control umbilicals. Many components of the subsea systems, including the riser tower, were constructed and assembled in Angola, including 6 of the subsea manifolds along with the worlds largest CALM (Catenary Anchor Leg Mooring) offloading buoy and the first ever Angolan assembled and tested subsea trees. The Greater Plutonio project involves a strong local content component. Several elements of the project were manufactured in Angola, namely the riser tower and six manifolds, including support structure, tees, flowline termination assemblies, installation and mooring piles and the CALM offloading buoy (SBM) all manufactured at the Sonamet yard in Lobito. Algoa (FMC) manufactured 45 permanent guide bases in Luanda and FMC are now assembling most of the subsea trees from "superkits" manufactured abroad. Some of the umbilicals were manufactured by Angoflex in Lobito and the water injection lines were laid by Technip using the new spoolbase in Dande, Bengo province. BP's involvement with Angola goes back to the mid 1970s. During the 1990s, BP made very substantial investments in Angola's offshore oil and it is now an important part of the company's upstream portfolio. BP has interests in four blocks with operated interests in two. Operatorship of Block 18 was transferred to BP Angola (Block 18) BV in May 1999. BP has non-operated interests in Block 15, operated by Esso (Block 15) Limited (BP 26.67 % equity) and in Block 17 operated by Total (BP 16.67 % equity). BP also has a 13.6 % interest in the Angola LNG project. Sorry to bore you all with this detail, but it does all go to show that while the Greenies were wailing about the world running out of oil, BP was quietly going about its business, developing an oilfield that could well turn out to be bigger that that of the North Sea. All goes to show that technology is the friend of man, not the enemy. Later day Luddites take note.

If Spigot was a Greenie

IF Spigot was a greenie, he would find the recent announcement of the official opening of Eskom's two new open-cycle-gas turbine (OCGT) power stations, which added 1 050 MW to the Western Cape's electricity supply capacity, cause for some concern. Quite apart from the cost (some R3,5-billion of taxpayers' money) he would be concerned at the hand-clapping and general expressions of joy by the oil company that has the contract to supply fuel to these gas guzzlers. For make no mistake these turbines just love petroleum products: 1,8 billion litres a year, some say. If only BPSA shares were quoted on the JSE, hey?

Eskom's socialist dream turns sour

ONE of the most obvious things about socialist enterprises is that they have their own in-built self-destruct mechanisms. Without the profit motive and the demands of shareholders to goad them into efficiency, the creatures we call parastatals ( like Eskom) over time become self sustaining bureaucracies, dedicated not so much to serving the people as to serving themselves. Take the decision to invite private enterprise into the electricity supply business. Ahem, was that not what Eskom was supposed to do? Never mind. As a result. power-generation firm Ipsa has awarded a US$14-million contract to a subsidiary of global technology giant Siemens to overhaul and upgrade four turbines that it bought earlier this year for its Coega plant, which the London-based firm reiterated would be ready for the 2010 soccer World Cup. (What a relief). Ipsa intends to bring its new capacity on stream as fast as possible to meet the desperate need for power in South Africa,” CEO Peter Earl said. Hum. You would think that Eskom managers would have done all this themselves as part of their brief. That is, planning ahead. Nope. Eskom is in business for itself. A self -perpetuating bureacracy. Private enterprise is welcome but note this: any electricity the private sector supplies has to be sold to Eskom first, before it gets to consumers. If that sounds like a good old fashioned monopoly, so be it. It's is a socialist monopoly, so that's all right then.

Told you so

WELL shucks, Ipayipi didn't get its pipeline licence from Nersa ( National Energy Regulator of South Africa). Transnet got it instead. Not really a surprise to anyone who thinks and reads about such things. When the Cabinet says one thing, Nersa says "Ja, baas." Obvious really. Not to that indefatigable master of his own universe,Deyar Natha. Believing in his own ( and others') BS, and no doubt fortified by another re-read of IPayipi's submission to Nersa, Deyar is quoted this week in saying that iPayipi's is planning to "appeal" the Nersa decision. Well, Spigot's flabber has never been so ghasted. I mean, to challenge a Cabinet decision takes some balls Good luck Deyar , old bean, And good luck to all who sail with you on the BS sea.

Trevor throws a mean egg

Spigot usually confines himself to matters pertaining to the oil business but this one had me cheering . Last night on the news, Trevor Manuel pulled no punches when he called for good governance in the sorry saga surrounding the proposed hefty payments to the coterie of venal money grabbers that run the PSL. He was rightly indignant that it was a member of the banking cartel that was intending to shell out 50 million big ones as “fees” What has happened to South African business ethics when a major business no longer realizes that this fee is nothing but a “you give us 10% and we will see you get the sponsorship “ bribe? Such payments are seriously, deeply corrupt. If a major bank can’t see that this is wrong, I am seriously considering moving my money under the mattress. Now the questions: Did Standard Bank not get the sponsorship because it refused to pay these “fees”? Did ABSA leak the “fees” story so that they would not have to pay? Was someone jealous because they were not included in the payola? In this storm of eggs the PSL and ABSA are both covered with sticky yellow muck an inch deep - and ordinary soccer lovers have yet another reason to stay away from the game. Viva Trevor. Down with the money-grabbing lackeys and capitalist running dogs of the PSL!