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Oil & Gas: Dangote Refinery Will Stabilize The Naira – Shettima

The Dangote Refinery, according to Vice President-elect Kashim Shettima, will influence Nigerians’ lives and help stabilize the naira.

At the commissioning of the refinery in Lagos on Monday, Shettima gave this assurance.

According to him, the project has rubbished the stereotyped negative narratives about Nigeria and Africa, as frequently portrayed in the Western Media.

The former governor of Borno State called the inauguration one of the finest days in the nation’s history.

According to Shettima, the project has a great chance of ending Nigeria and Africa’s reliance on petroleum imports.

He expressed hope that the project would receive a lot of attention and that the world would start to develop a new narrative about the continent.

 “Africa is not all about the crisis in Sudan, Africa is not all about poverty, Africa is not all about deprivation and destitution, Africa is not all about insecurity, I hope the CNN, the BBC, and the Sky News of this world will be around to give maximum coverage to this function.”

He praised Nigerian businesspeople who had already started working on projects of a similar nature and stated that the next administration, led by Asiwaju Bola Tinubu, will make every effort to advance and maintain the pace of the refinery project.

Recall that President Muhammadu Buhari earlier today (Monday) commissioned the Dangote Petroleum Refinery and Petrochemical Project, a division of Dangote Industries Limited controlled by Aliko Dangote.

The plant is situated in the Dangote Industries Free Zone in Ibeju-Lekki, Lagos, and it is planned to process crude oil grades from the continents of Africa, Asia, and America. A daily surplus of over 38 million liters of gasoline, diesel, kerosene, and aviation fuel will be sent to Nigeria from this facility.

In addition, the refinery is anticipated to refine 650,000 barrels of crude oil per day, converting it into various petroleum products like diesel, gasoline, jet fuel, and kerosene.

According to the company, the plant was built to process a wide range of crudes, including numerous Middle Eastern, African, and American Light Tight Oil crudes.



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Column: The outlook for African oil in 2023 is promising- NJ Ayuk

Several years ago, the African energy industry was in survival mode. The COVID-19 pandemic had practically eliminated the demand for crude oil, and African exports dropped sharply.

That’s why — though many African states are still feeling the wounds inflicted by COVID — I find it encouraging to learn that Africa’s liquids supply in 2023 has reached nearly 7 million barrels per day (MMbbs/d), more than 430,000 barrels per day (bpd) above Africa’s 2020 lows of about 6.55 MMbbs/d.

This progress is among the topics covered in the African Energy Chamber’s newly released State of African Energy Q1 2023 Report. The report details the emerging trends shaping the world’s oil economy and highlights Africa’s role in meeting global demand.

And the overall outlook for African oil production in 2023 is promising.

Russian energy supplies to Europe continue to decline in the wake of the Ukraine war, Africa is poised to increase its oil and natural gas exports to the continent, and African oil supplies are expected to remain steady throughout 2023 and beyond.

Highlighting Africa’s Role in the Global Oil Economy

The State of African Energy Q1 2023 Report provides several key insights into African oil production for the remainder of this year.

The 2023 global liquids (crude + condensates) month-on-month outlook is expected to stay flat and stable with an annual average of 83.4 million bpd.

Africa’s liquid supply is expected to contribute 8% of the global volume over the year.

The continent’s top five producers—Nigeria, Libya, Algeria, Angola, and Egypt—will contribute to over 80% of Africa’s 2023 liquids output.

While the majority of the production from Nigeria and Angola is from offshore projects, Algeria, Libya, and Egypt’s production comes from their respective onshore fields. Libya is expected to deliver increased 2023 production as its civil war subsides.

New Projects Across the Continent Will Drive 2023 Supply

A number of new projects are expected to drive African supply in 2023.

In Nigeria, Shell’s Bonga North project believed to hold as much as 525 million barrels of crude, could help the country boost its production to pre-pandemic levels. Nigeria’s production is on the rebound, reaching a one-year high of 1.44 million barrels per day in February and accounting for two-thirds of the rise in OPEC’s oil production that month.

With a $10 billion investment from TotalEnergies, Uganda’s Lake Albert development, together with the Tilenga and Kingfisher projects and the 1,500-kilometer East African Crude Oil Pipeline (EACOP), is predicted to produce as much as 230,000 barrels per day.

Ghana stands to double its production to over 400,000 barrels per day with recent discoveries in the Deepwater Tano Cape Three Points Block, operated by Norway’s Aker Energy. Ghana will have a significant role in shaping the region’s outlook this year as it also reopens its 45,000 barrel-per-day Tema oil refinery.

Senegal’s Sangomar Field Development, reported 60% complete as of last September, is expected to yield its first oil this year. The $4.6 billion project, led by Woodside Energy in partnership with Senegal’s national oil firm Petrosen, is expected to yield approximately 231 million barrels of oil in its first phase of development, with total recoverable oil resources estimated at around 500 million barrels over its lifetime.

Angola’s output has soared, reaching 34.29 million barrels in January — an increase of more than 580,000 barrels over the prior month. Its capacity has more than tripled since it completed the rehabilitation and expansion of its 65,000 barrel-per-day Luanda Refinery.

These impressive numbers represent a significant growth trend for Africa as we move further into 2023. With more than 70 oil and gas projects slated to come online by 2025, analysts predict Africa could produce as much as 2.3 million barrels per day of crude by 2025.

Oil Production Boosts Mean New Life for African Economies

The data and forecasts in our State of African Energy Q1 2023 Report paint an encouraging picture of Africa’s energy industry. In a turbulent global oil and gas market, the continent’s oil production is steady and growing. Our oil and gas industry is poised to breathe new life into our economies and create new opportunities for Africans in 2023.

NJ Ayuk, is the Executive Chairman, African Energy Chamber 

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Pirates hijacked oil tanker, held crew hostage in West Africa

Six sailors held hostage by pirates who attacked a Danish tanker remain missing close to two weeks after a hijacking in West Africa.

The Danish company that owns the oil tanker Monjasa Reformer told The National that the sole focus was to secure the safe return of the crew.

The hostage-taking has raised concerns about a revival of piracy that had witnessed a brief lull over the past year.

Pirates attacked and boarded the Liberian-flagged vessel on March 25 when it was southwest of Congo’s Pointe Noir port.

The recent kidnapping of seafarers in the Gulf of Guinea is a sobering reminder that this region is still plagued by piracy
Anne Steffensen, chief executive of Danish Shipping

The tanker had 16 crew of different nationalities on board, according to the French Navy who responded to the distress call and conducted a search in the north-east of the Gulf of Guinea.

Five days after the attack, on March 30, a navy patrol spotted the tanker that was abandoned by the pirates with some crew on board off the small island of Sao Tome and Principe.

The rescued crew is in good health

“The rescued crew members are all in good health and safely located in a secure environment and receiving proper attention following these dreadful events,” said Thorstein Andreasen, communications director for Monjasa.

The company has declined to specify the nationalities of the crew or provide further details, citing security concerns.

Mr Andreasen said everything possible was being done to reunite the missing crew with their families.

“Our thoughts are with the crew members still missing and their families during this stressful period,” the company spokesman said.

“Monjasa will continue working closely with the local authorities to support our seafarers’ safe return to their families.”

No damage was reported to the ship or the cargo of marine gas oil and sulphur fuel oil products it was carrying.

The crew had alerted the management that pirates had boarded the vessel on the night of March 25.

All sailors took refuge in the citadel, a designated safe area within a ship, in keeping with anti-piracy emergency protocols.

The French Navy’s aerial drone located the vessel on March 30 and also recorded the presence of a pirate boat alongside the ship.

When the naval patrol vessel began approaching the ship, another reconnaissance flight showed the pirate ship was no longer alongside the tanker.

“The crew still on board indicates that six of its members were kidnapped by pirates,” the navy said.

The French team, along with a nurse and doctor, were sent on board the Monjasa Reformer, working in co-operation with Nigerian authorities.

The medics treated three minor injuries and the vessel was escorted to the port of Lome by Nigerian patrol vessels.

The French Navy deploys one or two vessels almost permanently in the Gulf of Guinea as part of Operation Corymbe to help fight against pirates in West Africa.

Perils of piracy

The Gulf of Guinea remains a dangerous spot and the abduction has rekindled fears of kidnapping for ransom.

Danish shippers said the problems of piracy in West Africa are far from solved.

“The recent kidnapping of seafarers in the Gulf of Guinea is a sobering reminder that this region is still plagued by piracy,” said Anne Steffensen, chief executive of Danish Shipping that oversees more than 90 ship owners and offshore companies.

“Our hearts go out to the families of the kidnapped seafarers who are left with the uncertainty of their loved ones’ safety.

“This tragic incident highlights the continuing problem of piracy in the Gulf of Guinea, even during periods with fewer attacks.

“We are working closely with the shipping company to ensure that everything possible is being done to secure the safe release of the hostages.”

The United Nations Security Council last year passed a resolution condemning piracy and expressed concern over the “grave and persistent threat” posed in the Gulf of Guinea.

The UN said while there was a decline in the incidents of armed robbery in the region, more needed to be done to stamp out piracy.

The total number of pirate attacks in the Gulf of Guinea was 19, down from 35 in 2021, according to the International Maritime Bureau.

There were 115 piracy attacks and armed robbery globally against ships last year compared to 132 in 2021, according to the IMB’s annual report.

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Equatorial Guinea, Namibia Youth-Focused Local Content, Gas Monetization a Boost for Intra-African Energy Growth

Equatorial Guinea, as one of Africa’s top natural gas producers, and Namibia, as an upcoming hydrocarbon producer, have taken the lead towards positioning Africa as a globally competitive oil and gas producer, leveraging intra-African partnerships and cooperation to scale up the local workforce.

Following sizable oil and gas discoveries made in Namibia in 2022, the two countries forged an agreement during the Namibian International Energy Conference (NIEC) 2022 that saw four Namibian engineers receive training at the Equatorial Guinea Liquefied Natural Gas (EG LNG) facility. This program has been significant, both for Namibia’s future oil and gas industry and for Africa’s energy sector at large, and the African Energy Chamber (AEC) commends both countries on this bold initiative.

During the NIEC 2022, Hon. Tom Alweendo, Namibia’s Minister of Mines and Energy, announced the training partnership with H.E. Gabriel Mbaga Obiang Lima, Equatorial Guinea’s Minister of Mines and Hydrocarbons. Hon. Minister Alweendo visited Equatorial Guinea and worked with his counterpart to kick off the training of Namibians.

To date, four Namibian engineers have received training at EG LNG, owned by Marathon Oil, Chevron and the Equatorial Guinean government. In addition to receiving exploration and production training at the facility, the engineers were trained at the associated Methanol Facility and the Turbo Gas Facility at the Punta Europa Complex.

It is good to see energy companies in Equatorial Guinea taking the lead in the training and development of Namibian youth

The Namibian engineers also received training on various operational matters from British independent Trident Energy, known for operational efficiency and production improvements. Trident is the operator of Block G, which includes the producing Ceiba and Okume Complex fields — made up of six oil fields in the Gulf of Guinea, in shallow and deep water in the Rio Muni basin.

This training has not only signaled a new era of intra-African energy collaboration and partnerships but has opened up significant opportunities for Namibia to position itself as a globally competitive oil producer on the back of south-south cooperation.

With both countries having placed local content at the center of their developmental strategies, this training initiative marks the start of a new era of hydrocarbon growth in Africa on the back of cooperation and collaboration. Long-term, Equatorial Guinea is committed to establishing itself as a regional energy hub, leveraging ambitious local content initiatives to develop a strong and competitive hydrocarbon market in-country. Similarly, Namibia, at the start of its hydrocarbon journey, has recognized the role local content will play in making energy poverty history while kick-starting industrialization and economic prosperity. As such, the country has introduced proactive local content policies, with the Equatorial Guinean training initiative only furthering this agenda.

“It is good to see energy companies in Equatorial Guinea taking the lead in the training and development of Namibian youth. EG LNG, Trident Energy, Chevron, Marathon Oil should be given huge credit, and incentives, and encouraged to do more. It is important for young Africans. Energy companies are our partners, and we must support them as we push for Namibian energy growth,” stated NJ Ayuk, Executive Chairman at the AEC.

The training initiative followed Shell’s Graff-1 discovery and TotalEnergies Venus discovery made merely weeks apart in February 2022, unlocking up to four billion barrels of recoverable reserves combined. The discoveries were significant, with their associated developments set to double Namibia’s GDP by 2040. Shortly thereafter, the country took a proactive approach to get advanced training from U.S. and regional firms, with the government eager to bring these projects online as soon as possible. In this scenario, Equatorial Guinea emerged as the obvious partner, with the country hosting a suite of global energy majors and large-scale hydrocarbon developments alike.

Owing to sizeable domestic oil and gas reserves, as well as an accelerated drive by the government to monetize regional untapped reserves, Equatorial Guinea has put in motion a series of large-scale projects such as the Punta Europa LNG Terminal – comprising Train 1, producing 3.7 million tons per annum (mtpa) of LNG, and Train 2, set to produce up to 4.4 mtpa once completed – the wider Punta Europa Gas Complex – comprising Methanol and Turbo Gas Facilities – and the Central African Pipeline System. These projects have enabled the country to export gas worldwide, with Equatorial Guinea serving as a key supplier of gas to Europe in the ongoing gas crisis. In this scenario, companies such as Marathon Oil, Sonagas, ExxonMobil and Panoro have been key, and offer Namibia unparalleled insight into developing and operating large-scale projects.

“What Minister Alweendo and Obiang Lima have done should be commended. They have demonstrated the role that intra-African energy cooperation will play in Africa’s energy future. Equatorial Guinea, with its expertise as an oil and gas player, offers Namibia the knowledge and training that the country needs to develop a thriving domestic oil and gas industry. Through this training initiative, both countries have prioritized local content, developing the local industry and getting young people ready to lead oil and gas exploration and production. At the AEC, we are proud to see what Namibia and Equatorial Guinea are doing and want to see more African states following suit,” concluded Ayuk.

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Israeli energy firm signs Morocco gas exploration deal

Israel’s NewMed Energy (NWMDp.TA) said on Tuesday it signed a deal with Morocco’s energy and mining ministry and Adarco Energy for offshore natural gas exploration and production in Morocco.

NewMed and Adarco will each have a 37.5% stake in the Boujdour Atlantique licence, NewMed said. The ministry will hold the remaining 25%.

“For a long time now we have recognised a huge potential in Morocco for collaborations in both the natural gas and renewable energy sectors,” NewMed CEO Yossi Abu said.

The Boujdour Atlantique licence is in the southern part of Morocco’s offshore economic zone and was granted for eight years, the company said.

It said the plan is to begin surveys of the prospect and then conduct exploratory drilling after about two and a half years. The deal still requires regulatory approval in Morocco.

NewMed is the main stakeholder in Israel’s huge Leviathan offshore gas field and is looking to merge with Capricorn Energy (CNE.L) to create a gas producer focused on Israel and Egypt.

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OIL & GAS: Europe should Decarbonize while Africa Industrializes

While western nations are calling for the abrupt end to fossil fuel utilization in Africa, countries such as the UK and Norway continue to hold licensing rounds intended to scale-up exploration and production. With Africa’s socioeconomic development hinging on the exploitation of the continent’s oil and gas resources, this hypocrisy could spell a travesty for Africa. As western organizations such as Greenpeace move to end African hydrocarbon investment in the name of climate change, shouldn’t European nations move to decarbonize first?

Europe is well-positioned to decarbonize its high-emitting sectors, owing to the availability of the required technologies; the regulatory frameworks in place; and the financial and economic capacity to do so. Having utilized ‘dirty’ fuels such as coal, oil, and gas for decades, the continent has been able to develop its economies substantially. According to the Eurostat, the EU operates a single market made up of 27 countries; total GDP in 2019 equated to €16.4 trillion; the EU accounted for 15% of the world’s trade in goods, and economic growth is projected to increase by 4% in 2022 and 2.8% in 2023. However, countries in the EU are also responsible for approximately 18% of global carbon dioxide emissions produced since the industrial revolution began. In the third quarter of 2021 alone, the EU’s greenhouse gas emissions t 881 otaledmillion tons of CO² equivalent. Yet, these nations continue to call for the end of African oil and gas development, despite holding licensing rounds to develop their own oil and gas.

On the contrary, despite holding some of the world’s largest oil, gas and coal reserves – estimated at 125.3 billion barrels of crude oil, 620 trillion cubic feet of gas and nearly 16.4 billion short tons of coal -, Africa’s development has been slow, largely due to natural resource exports, refined product imports, the lack of adequate infrastructure and the lack of adequate investment and reinvestment in key sectors. Representing the world’s fastest growing population; the youngest population; and holding some of the world’s fastest growing economies, Africa has the chance to accelerate development across its entire economy, driven by the exploration, production and utilization of its oil and gas reserves.

Having utilized ‘dirty’ fuels such as coal, oil and gas for decades, the continent has been able to develop its economies substantially

Oil and gas will enable Africa to improve access to energy and lift the over 600 million people across the continent out of energy poverty; significantly reduce the continent’s dependence on energy imports; and provide the much-needed revenue which African governments can utilize to fund infrastructure rollout in various sectors including energy, mining, transportation and health which are vital for economic stability.

African hydrocarbon producers should follow in the footsteps of European counterparts including Norway and Britain who have and continue to introduce new exploration licensing rounds to make it easier to drill and to expand production capacity. In January 2022, the Norwegian Ministry of Petroleum and Energy awarded 53 production licenses in mature oil and gas producing areas in a bid to remain western Europe’s largest hydrocarbon producer whilst the British government in its latest Energy Security Strategy announced that it will award licenses for the increased drilling of oil and gas in the North Sea. This is what Africa needs to do: increase its exploration licensing rounds and the use of domestic hydrocarbons resources to end energy poverty rather than leaving these resources in the ground.

Countries across the continent have already made progress in this area with the introduction of licensing rounds in 2020 and 2021. According to the African Energy Chamber’s (AEC) Q1 2022 Outlook, the results of some 14 licensing rounds are expected to be announced this year while other rounds in Ivory Coast, Senegal, Algeria, the Congo, Sudan, South Sudan, Somalia, Uganda and Kenya are expected to be introduced in 2022 and 2023. Despite this progress, more needs to be done. While the introduction of licensing rounds is critical, implementation and execution is often slow and deters investors. In this regard, Africa needs to take a lesson from Europe, fast tracking these rounds and approvals so that the development of oil and gas can be accelerated.

“For years Africa has been told to stop using its oil and gas resources, even if those very resources are the solution to making energy poverty history. Now, faced with their own energy security crisis, Europe is pushing for new oil and gas licensing rounds to increase exploration, production and oil and gas utilization. How is it that Africa must decarbonize while Europe continues to industrialize? It seems that the saying do as I say and not as I do is clear, even in the energy space. But Africa will not do as they say. We deserve to develop our oil and gas to make energy poverty history. In 2022, Africa needs to ramp up its licensing rounds, drive exploration and position itself as the primary supplier for domestic and global markets,” Leoncio Amada Nze, President of African Energy Chamber CEMAC.

African Energy Week (AEW) 2022, Africa’s premier event for the oil and gas sector, which will take place from 18 – 21 October 2022 in Cape Town, remains committed to ensuring Africa develops and benefits from its oil and gas resources. Under the theme “Exploring and Investing in Africa’s Energy Future while Driving an Enabling Environment,” and through a series of panel discussions, investor forums and networking events, AEW 2022 represents the most suitable platform for driving project partnerships and investment deals while kickstarting both Europe’s decarbonization and Africa’s industrialization in 2022 and beyond.

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Oil & Gas

List of African countries with the highest petrol prices

Across Africa, petrol prices are soaring. This problem has worsened by a number of factors, including the increasing scarcity of the commodity.

In Nigeria, petrol has been scarce for about a month now. Some experts have said, the case in Nigeria started after the country inadvertently imported adulterated fuel.

Efforts by the West African country’s state-owned energy company (the NNPC) to clean up the contaminated product from the market inevitably resulted in a shortage. Since then, it is alleged that marketers have been hoarding and profiteering.

Despite the recent price surge in Nigeria, the country is not making it to the list of African countries with the highest fuel prices in Africa, perhaps this is due to the fact that the Nigerian Government heavily subsidises the commodity.

The rising cost of petrol in Sub Saharan Africa has also been attributed to the ongoing Russian invasion of Ukraine. There are fears that as the conflict continues to escalate, it could have an even more negative impact on energy costs in Africa.

Already, global oil prices have surpassed the $100 per barrel mark, which was last recorded in 2014. The commodity is currently trading at $102.6 per barrel, according to benchmark price Brent Crude.

Below is a list showing the top10 African countries with the highest petrol prices as of March 2022, according to data made available by Global Petrol Prices.

  1. Zimbabwe: This Southern African country has the highest petrol cost in Africa. A litre of petrol costs as much as $2.153. Earlier this month, the country’s Energy and Power Development Minister, Zhemu Soda, explained that frequent petrol price hikes were driven by developments in the international oil industry. Zimbabwe is not an oil producer, although there were conflicting reports about crude oil discovery in Northern Zimbabwe in 2018.
  2. Seychelles: This island country has the second most expensive fuel price in Africa, according to data. A litre of petrol in this country is sold for $1.541. The country does not currently produce any oil and gas, although some international oil companies are busy prospecting potential oil deposits off its many coasts.
  3. Malawi: Malawi follows with $1.426 for a litre of petrol. The country is said to have a great prospect of discovering crude oil reserves in Lake Malawi.
  4. South Africa: Here, a litre of petrol costs $1.413. In 2019, Total Energies announced that it had made a major discovery of gas condensates in one of its exploration fields in South Africa. Experts said this could significantly improve the country’s fortunes.
  5. Uganda: In this country, a litre of petrol costs $1.389. The high cost of petrol in Uganda is despite the fact that the country actually produces oil. Checks by Business Insider Africa show that the country’s crude oil reserves, as of 2021, stood at 2.5 billion barrels.
  6. Mauritius: This country has the sixth most expensive petrol price in Africa at $1.381 per litre. Mauritius currently does not produce oil, although experts say there are prospects.
  7. Burundi: In this East African country, a litre of petrol costs $1.340. According to the United Nations Environmental Programme, this country currently does not have any local sources of crude oil or natural gas.
  8. Senegal: In this Francophone West African country, it costs $1.299 to buy a litre of petrol. The country discovered some crude oil deposits between 2014 and 2017, although full-scale exploration has been pushed back till 2023.
  9. Lesotho: In this country, it costs $1.231 to buy a litre of petrol. The country does not have any confirmed oil deposits.
  10. Rwanda: Here, a litre of petrol costs $1.230. This East African country does not produce crude oil.



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Oil and Gas: Nigeria Takes the Lead in Exploration, Production and Regulation in 2022

Nigeria represents one of Africa’s heavyweights when it comes to hydrocarbon exploration and production. With over 36 billion barrels of oil (bbl) and 200 trillion cubic feet of natural gas, the country has managed to position itself as both an attractive upstream market and competitive producer. In its Q1 2022 outlook, The State of African Energy, the African Energy Chamber (AEC) ( contends that Nigeria will maintain its position as one of Africa’s leading crude oil producers as well as one of the continent’s top three gas suppliers between 2022 and 2025, providing an opportunity for the West African country to leverage its energy resources for economic growth while addressing global energy demand.

According to the outlook, Nigeria will produce 1.46 million barrels per day (BPD) of crude oil out of the 6.35 million BPD that Africa as a whole will produce during the year, reaffirming the country’s position as a continental energy hub as production in the West African state peaks in 2023. Production declines in mature oilfields coupled with the country’s reliance on offshore basins – approximately 65% of the crude oil Nigeria currently produces sourced from offshore projects – has highlighted the need for Nigeria to increase oil exploration and production to maintain a secure supply as legacy projects diminish and thereby shrink the country’s production capacity from 2023 onwards. Out of the 36 bbl of oil reserves Nigeria holds, just over 25% is currently produced from deep water projects, underlining a huge opportunity for Nigeria to expand partnerships and investment to ramp up production and increase its role in both the continental and global energy landscape.

“The recent $1.2 billion deal between Nigeria’s Seplat Energy and American energy firm ExxonMobil, in which the multinational will continue with its deep-water projects whilst handing over onshore projects, is an indication of the huge potential the country’s offshore projects have in the near future in addressing energy needs as energy consumption increases. By increasing focus on these projects, accelerating exploration and production in key basins, Nigeria has the ability to unleash its full energy potential,” stated NJ Ayuk, Executive Chairman of the AEC.

By increasing focus on these projects, accelerating exploration and production in key basins, Nigeria has the ability to unleash its full energy potential

In order to consolidate its position as a global producer, the Nigerian government needs to fast-forward the approval process for deep-water projects and put in place policies that reduce taxes for operators, the majority of which are international majors that have partnered with national oil companies, to ensure more projects come online through 2025 for a continued stable supply of crude oil.

More investments are also required within the country’s downstream sector with inadequate infrastructure slowing down oil production and increasing Nigeria’s reliance on fuel imports. Nigeria imports up to 1.25 million metric tons per month of gasoline due to inadequate domestic refining capacity. Accordingly, the $12 billion Dangote refinery project in Lagos, slated to kickstart operations during Q4 of 2022 with a processing capacity of 540,000 barrels per day and partly owned by state-company the Nigerian National Petroleum Corporation, is an example of the willingness of Nigeria to set itself as an oil heavyweight while expanding its oil and gas capabilities to meet domestic, regional and global energy needs.

Meanwhile on the gas front, the AEC outlook shows that Nigeria has also retained its spot amongst Africa’s main gas producers in 2022. An annual production capacity of 1,450 billion cubic feet is expected as the country recovers from 2020 low production levels. Existing gas producing fields, as well as those currently under development, are expected to sustain the country’s gas production through to 2025. Despite factors such as vandalism of infrastructure which are restraining optimal gas and oil exportation, as well as the high costs and emission rates associated with deep-water projects driving majors to diversify their portfolios, greenfield investments in Nigeria and its African counterparts will increase capital expenditure across the continent to $30 billion in 2022, providing an opportunity for new projects to come online and for leading hydrocarbon producers such as Nigeria to modernize and build new infrastructure as well as expand exploration and production.

Nigeria is positioned to lead African investment with proven oil and gas reserves as well as a reformed regulatory landscape making the sector increasingly attractive for foreign capital. The implementation of the Petroleum Industry Bill (PIB) in 2021 by the Nigerian government, for example, provides regulatory clarity on royalties and other issues that have previously made it difficult for oil and gas E&P companies and downstream market players to expand investments within the country’s market. Now, with the implementation of the PIB, Nigeria is better positioned, now more than ever, to attract investments and accelerate development in 2022 and beyond.

The AEC’s annual conference, African Energy Week (AEW), taking place from October 18-21, 2022, in Cape Town, will not only highlight post-PIB opportunities in Nigeria, but will make a strong case for the role the country plays in both the African and global energy landscape. Through a range of investor-specific forums, market-driven panel discussions, and ministerial summits, AEW 2022 will discuss exploration, production and regulation, with dialogue centered around how Africa’s oil and gas sector can make energy poverty history by 2030.

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Oil & Gas

ECP signs Partnership Agreement with Senegal’s Petrosen

Senegal’s national oil and gas company has signed a development and cooperation agreement with Africa’s leading investment platform for the energy sector

  • ECP is responsible for the organization of the MSGBC Oil, Gas & Power Conference & Exhibition, developed under the patronage of H.E. Macky Sall, President of the Republic of Senegal.
  • ECP will, from now on, be integrated in an event committee led by Petrosen, that will allow further collaboration in the organization of the MSGBC Oil, Gas & Power Conference & Exhibition as well as other initiatives.
  • The new agreement will see Energy Capital & Power (ECP) build a deeper relationship with the NOC, participating in a number of initiatives to promote the country’s energy sector throughout the year.

Energy Capital & Power, Africa’s leading investment platform for the energy sector and the organizers of West Africa’s largest energy event, the MSGBC Oil, Gas & Power Conference and Exhibition, has signed a partnership agreement with Senegal’s national oil company, Petrosen, that will see the two entities deepen ties as they collaborate to promote the energy sectors of the country, and the MSGBC Region as a whole.

ECP’s relationship with Petrosen has been nothing short of symbiotic, and I look forward to bringing this success to new highs in the years to come

Following the largely successful first edition of the MSGBC Oil, Gas & Power Conference and Exhibition, organized by ECP, this partnership comes as a milestone for the two entities whose vision is to promote the MSGBC Basin’s attractiveness to international investors at a time when new developments have primed the region as a world-class opportunity for production and exploration.

In the wake of the hugely successful first edition of the MSGBC Oil, Gas & Power Conference and Exhibition in December 2021, ECP has been continuously developing initiatives to promote the development of Senegal, its energy sector, and fundamentally, its people, with the company maintaining its close and fundamental partnership with H.E. President Macky Sall. The growing relationship with Petrosen is only a natural extension of those very efforts.

“We cannot overestimate the importance of this partnership for Senegal in particular and for the MSGBC region as a whole. ECP’s relationship with Petrosen has been nothing short of symbiotic, and I look forward to bringing this success to new highs in the years to come,” says International Conference Director, Sandra Jeque, ECP’s leading name in the Senegalese energy landscape

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Oil & Gas: Turning Africa’s Oil Production Decline Around – Kola Karim

Despite being blessed with abundant oil and gas resources, Africa’s production has been on the decline, representing a challenge for the continent as moves to initiate a COVID-19 economic recovery and address energy poverty. With exploration restricted due to reduced capital for fossil fuel projects and the transition away from hydrocarbons, the continent needs to act now if it is to reap the benefits of its oil and gas.

In an exclusive interview with the African Energy Chamber (AEC), Kola Karim, CEO and Managing Director of Shoreline Energy International and AEC Advisory Board Member provides more clarity on the current situation.

What will this production underperformance in Nigeria and other African countries mean for the continent as a whole?

We need to see additional financing to fix supply chains and allow manufacturing and maintenance inputs to be located nearer to production facilities on the continent

Underperformance will have a direct effect on the ability of countries to fund budgetary spending. There has been a direct linkage for many years between the oil price and the ability to many African governments to balance the books. The massive slow down with have seen due to covid and the significant economic shocks it has produced coupled with production below capacity will certainly create fiscal pressure. We have seen the oil price rise in the last few quarters to a healthy level, however without the production to take advantage of higher prices, expect to see the usual challenges in funding capital spending. Deficit spending will also therefore depend on the view of the markets on how much damage and for how long countries

What do you feel are the primary reasons influencing production decline in Africa?

I don’t think we can take a cookie cutter approach to identifying where the problems lie. For instance, our production challenges on onshore Nigeria are very different to challenges in other countries that may be more constrained by limited investment in infrastructure or more straightforward operational bottlenecks. Beyond these more systemic challenges m I think also that covid has had a significant impact which has still to be worked out of the supply chain and we will continue to see the effect of this through 2022. We would typically expect a natural 4-5% decline in production in the industry. However, Covid has seen those rates double to 10% over the last couple of years. The massive disruptions in global supply chains has also meant that equipment and maintenance activities such as part replacement has been severely disrupted across the industry leading to significant production delays and production shut ins in the worst cases.

What can be done to turn this around?

We are facing some quite significant headwinds. The Systemic and Covid related challenges I alluded to earlier are significantly complicated by the additional variable of de-carbonisation which continues to create a potential financing gap for both local producers and IOC’s looking to invest in new production. Banks are retreating from lending to Oil and Gas projects, and this creates an uphill task with regard to the key cornerstone of any turnaround which is financing. We need to see additional financing to fix supply chains and allow manufacturing and maintenance inputs to be located nearer to production facilities on the continent and we need more investment in opening up additional reserves to close the production gap as consumption returns.

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