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A Special Edition focused on the opportunities in Uganda oil and gas industry, as the country has moved into Commercialisation, Oil and Gas Production.

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THE ENERGY

REPUBLIC

Ofcial Magazine of

Special Edition

UGANDA: DRIVING THE FINAL STEPS IN

COMMERCIALISATION, OIL, GAS PRODUCTION

OCTOBER - NOVEMBER EDITION 2021

Shell Unveils New Energy Business Line in Nigeria

AEC Launches ‘The State of African Energy 2022’ Annual Report

CNL Appoints Victor Anyaegbudike as Communica on Manager

Uganda to Amend its Petroleum Policy; Seeks JV

Partner for Oil, Gas Project

Winston Mohammed, Senior

Manager, Projects - The

National Gas Company of Trinidad

& Tobago Limited (NGCTT) - Page 9



EDITOR’S NOTE

Dear Execu ves,

Publisher:

Engr. Idowu Babalola

(MBA, MNSE, MEI)

Managing Editor

Ndubuisi Micheal Obineme

Editor

Tobi Owoyimika

Legal Counsel

Barr. Jackson Olagbaju

Welcome to our October - November edi on 2021. As you may all know that Oil and Gas

Republic has rebranded as The Energy Republic to reposi on our publica on towards cleaner

energy development in support of the Sustainable Development Goals (SDG) and global

energy transi on agenda.

This publica on is a Special Edi on that is focused on the Uganda oil and gas industry, as the

country is accelera ng towards Commercialisa on, Oil and Gas Produc on going forward.

In this edi on, we had some exclusive interviews with industry stakeholders and government

officials as well as featuring the latest industry updates from around the world. As we progress,

we will con nue providing our readers with the latest development in the energy space.

For general inquiries, please email us at: info@theenergyrepublic.com

Thank you for your me.

Correspondents:

Genevieve Aningo

Ifeoma Ofole

Samson Binutiri

Best regards,

Ndubuisi Micheal Obineme

Managing Editor

For: The Energy Republic

The Energy Republic (TER) is published by Ndbest

Marke ng & Consul ng Limited. TER provides an

in-depth analysis about the oil industry, and

opportuni es around clean energy sources such as

Natural Gas, Hydrogen, Ammonia, Solar Energy,

Wind Energy, Hydro Energy, Geothermal Energy,

Biomass Energy, among others.

Email: info@theenergyrepublic.com

oilandgasrepublic@gmail.com

Phone: +2348065187468

Page 4: Energy Advance Events

Page 9: Winston Mohammed NGC Interview

Page 12: African Energy Stories

Page 25: Keseena Chengadu Interview

THE ENERGY

REPUBLIC

UGANDA: DRIVING THE FINAL STEPS IN

COMMERCIALISATION, OIL, GAS PRODUCTION

OCTOBER - NOVEMBER EDITION 2021

Special Edition

Ofcial Magazine of

Page 27: AOW Power List 2021

Page 29: Industry News

Page 34: GECF Special Features

Page 37: Ukraine Energy Minister Interview

Page 40: Nigeria Oil and Gas

Shell Unveils New Energy Business Line in Nigeria

AEC Launches ‘The State of African Energy 2022’ Annual Report

CNL Appoints Victor Anyaegbudike as Communica on Manager

Uganda to Amend its Petroleum Policy; Seeks JV

Partner for Oil, Gas Project

Winston Mohammed, Senior

Manager, Projects - The

National Gas Company of Trinidad

& Tobago Limited (NGCTT) - Page 10

Page 46: Shell Photostory

Page 47: Uganda Top Story

Page 55: Uganda Oil and Gas


ENERGY ADVANCE EVENTS

EAOGS 2021: Fostering African Content

To Harness East Africa's Potential

PETAN'S 6TH SAIPEC: COMES BACK, BIGGER

AND BETTER!

07 05 09

"Trinadad is now entering the journey of

Climate Change and the NGC is a pivotal

player in catalysing it” - Winston

Mohammed, NGC's Project Manager

AECIPA Announces Plan to Empower The Next

Generation of Angolans

The Angolan Oil & Gas Service

Companies Association (AECIPA) has

unveiled its plans to make the

empowerment of Youth a core focal point for

the upcoming 2021 Angola Energy Series

Programme, hosting a special focus day during

the Angola Oil and Gas Service and Technology

Conference (AOTC) in November. This will

feature the involvement of many Angolan

ministries, leading energy sector companies

and organisations, major universities and

special participation from global humanitarian

charity, The HALO Trust and representatives of

its 100 Women in Demining project.

The announcement comes following a hugely

insightful webinar which took place 7th

October entitled ‘Empowering the Next

Generation’ and featuring speakers from

across the sector, including; João Mateus,

Human Resources Consultant, Sonangol,

Kamia Lopes, Subsea Services Manager,

TechnipFMC, Patricia Quirino, Tax Manager,

TotalEnergies, Eng. Francisco Simão, Managing

Counsel/VP Legal Affairs, BP, Elthon Chemane,

President of Local Content, Mozambique

Chamber of Commerce and Founder, Local

Content Platform, Francesca Oliva, Energy

Advisor and Head of Operations, Equatorial

Power and Technical Adviser, AVSI Foundation,

Dr. Ibilola Amao, Principal Consultant and

Lonadek Inc, Jocelyne Machevo, Energy and

DEI Expert, Mozambique and Rui Oliveira, CEO,

BFA Asset Management & Consultant, Food

and Agriculture Organization of the United

Nations (FAO).

Through interactive speaker sessions,

workshops, displays and special ‘come and live

in my shoes’ style showcases, that will be

delivered by a range of individuals working in

the industry and other Angolan sectors, Day

Three at AOTC will explore and support the

Bráulio de Brito, President, AECIPA and Chairman of the Angola Energy Series

notion that investment in the country’s youth is

essential and pivotal to Angola’s long term

growth and success.

The HALO Trust – a humanitarian organisation

that has been saving lives and helping war-torn

communities across the globe recover for over

thirty years – will be demonstrating some of its

work in Angola during the day. Women involved

directly with its 100 Women in Demining

project will be interacting with students and

delegates to give their first-hand experiences of

the work it does. Programme Manager of HALO

Angola, Rob Syfret, explains; “Since 2017, The

HALO Trust has run this unique project in Angola

to train and employ all-female demining teams,

combining women’s empowerment whilst

clearing landmines and making land safe. Over

100 women have already been recruited and

many are now in leadership roles while dozens

have completed additional training as

paramedics and drivers.”

Speaking of the challenges faced he added;

“Angola still has over 1,100 identified

minefields, covering over 70 million square

meters of land. The largest challenge to clearing

mines is funding.

Humanitarian NGOs like HALO work with both

Government donors and companies to raise

funds to clear mines. Bp has been the leading

partner in this new era of companies making

serious investments to help the communities of

the countries where they work. With the

support of bp and their partners in blocks 18

and 31, the British government, ENI and World

Without Mines, our all-female teams will make

a major contribution to clearing Benguela

Province entirely of landmines while

04

OIL AND GAS REPUBLIC I SPECIAL EDITION


learning valuable skills and supporting their

families. HALO needs help from the rest of

the community in order to complete the job

in the remaining contaminated provinces of

Angola.”

Throughout the Angola Energy Series 2021,

host AECIPA has explored many of the issues

that are directly impacting the oil, gas and

energy sectors today, often stagnating its

growth as well as the importance of local

content and the responsibility of companies

to the country in which they operate. This

has included webinars on gender diversity

and the development of youth as part of a

series of four free to attend sessions

preceding the November conference.

Mr Bráulio de Brito, President, AECIPA and

Chairman of the Angola Energy Series

commented; “Equality, empowerment and local

content are all core themes of our event and this

is mirrored directly in the projects and

experiences of our Day Three speakers.

“We are honoured to welcome them all and in

particular to have the opportunity to learn from

them and the groundbreaking work and ethos of

The HALO Trust and 100 Women in Demining

project, creating opportunities for the wider

c o m m u n i t y, s t r e n g t h e n i n g n a t i o n a l

entrepreneurship, developing personal skills and

making life better in Angola.”

He added; “The Angola Energy Series has been

devised to provide a platform for some of the

finest minds of the industry to convene, connect

and put forward solutions towards the

betterment of the sector. At the forefront of this is

engagement and collaboration, and we see this

not just in terms of making business connections

but about taking a holistic view of the sector and

how we can ensure it develops and flourishes.”

The Angola Oil and Gas Service and Technology

Conference will take place on 23 -25 November

2021 in Luanda under the high patronage of the

Ministry of Mineral Resources and Petroleum,

Republic of Angola with the attendance and

participation of H.E. José Barroso, Secretary of

State for Oil and Gas, Angola.

PETAN'S 6TH SAIPEC: COMES BACK, BIGGER AND BETTER!

The 6th Sub-Saharan Africa International

Exhibition and Conference (SAIPEC),

hosted by PETAN, is returning bigger

and better at the Eko Hotel and Convention

Centre by 23 - 25 February 2022. SAIPEC is the

largest gathering of NOCs, IOCs, and the entire

oil and gas value-chain in Sub-Saharan Africa

which attracts over 6000 attendees globally,

with a world-class program and led by H. E. Dr.

Timipre Sylva, the Honorable Minister of State

for Petroleum Resources of the Federal

Republic of Nigeria.

Its content and proceedings are driven by an

esteemed steering committee and speakers,

representing a cross-section of key

s ta ke h o l d e rs a n d t h e m o s t s e n i o r

representatives from the Sub Sarahan Africa oil

and gas industry, delivering high-level strategic

sessions and discussions on game-changing

solutions, combined with an international

exhibition.

SAIPEC brings together the national oil

companies, state regulators, and IOCs from 36

countries, including 20 National Oil Companies

from Mozambique, Nigeria, Côte d'Ivoire,

Senegal, Uganda, Angola, Cameroon, Ghana,

Liberia, Equatorial Guinea, and Gambia, with

thousands of domestic and international

companies across the value chain servicing the

oil and gas industry throughout Sub Sahara

Africa.

According to report, Sub-Saharan Africa has

about 62.6 billion barrels of proven crude

reserves with an estimated 221.6 trillion cubic

feet of natural gas reserves, which has

positioned the region to be the last energy

frontier and global hub.

Working directly with PETAN, the organisers will

draw on their global resources to ensure that

the event delivers to the needs of all

stakeholders throughout the region. SAIPEC

continues to place its emphasis on the future of

the oil and gas industry through Sub-Saharan

Africa with collaboration at the forefront of its

objective.

PETAN created SAIPEC as an awareness

informative platform for the Sub-Saharan Africa

oil and gas industry with a strong focus on

collaboration within the African market.

PETAN is an association of leading Nigeria’s

indigenous technical service providers in the

upstream, midstream, and downstream

sectors of the oil industry.

PETAN has made significant progress in many

areas in the Nigerian oil and gas industry

including human capital development,

reduction for in-country capital flight, and other

key areas.

05

OIL AND GAS REPUBLIC I SPECIAL EDITION



ENERGY ADVANCE EVENTS

EAOGS 2021: Fostering African Content To Harness

Now in its 7th year, EAOGS 2021 will

build on the success of the 2020

Summit which welcomed over 450

delegates from 380 regional and

international companies and 30 different

countries.

With the support of all of the leading

industry associations and Chambers of

Commerce's across East Africa, the EAOGS

conference program is developed by an

expert steering committee of industry and

government experts to provide a cutting

edge agenda and annually welcomes senior

delegations from leading companies across

East Africa and internationally

Throughout EAOGS, an emphasis is placed

on the interaction between all participants

of the event to ensure the best possible

access to everyone who matters to your

business. All participants can take advantage

of the exclusive Business Matching service,

allowing you to pre-arrange virtual meetings

with other attendees through an easy-touse

technology platform.

Making up the program are ministry officials,

senior executives, and industry experts from

NOCs, IOCs, financial institutions,

government authorities, service companies,

and industry associations.

Spread across three days, proceedings are

led directly by a major government, state

companies, and global players in the region

and the issues and areas they highlight of

most importance to those operating in the

region.

Charles Kahuthu, regional coordinator and

CEO of the East African Chamber of

Commerce, Industry and Agriculture

(EACCIA), co-organizers of the event

East Africa's Potential

commented, “The scope, scale and spread of

current and future oil and gas infrastructure

development projects in East Africa is positioning

the region as a hotbed of oil and gas exploration,

investment and development.

“EAOGS is widely established as the largest and

most relevant meeting place for all of the key

players at the heart of this activity, incorporating

major participation from hosts Kenya, alongside

official delegations from Ethiopia, Mozambique,

Somalia, South Sudan, Tanzania, Uganda, and

Zanzibar - all coming together to showcase the

commercial opportunities throughout the

region.”

H.E. Dr. Omar Farouk Ibrahim, Secretary General,

African Petroleum Producers’ Organization said,

"I wish to commend the organisers of the East

Africa Oil and Gas Summit for bringing together

eminent persons and experts to discuss issues

affecting the oil and gas industry in Africa"

The East African oil and gas industry has attracted

substantial investment due to its cost

competitiveness. The discoveries have sparked a

new wave of developments that are likely to

change the face of East Africa as an energy

producer.

East African economies are on the right track.

Laws and policies that govern and maximize incountry

benefits from the Oil & Gas resources are

in place. They provide for: State Participation in

Petroleum activities; Procurement of goods and

services from local entrepreneurs, and

technology transfer; Employment and training

plans, capacity building and succession plans

where there is no immediate local capacity; Given

the lack of sectoral experience, the challenge will

be how to successfully commercialize the

resources, to benefit the citizens.

This year's EAOGS will allow local and

international organizations to network with

everyone they need to meet for their business;

new and existing customers, partners and

product users, and buyers who are all looking for

products and services.

The programme for 2021 will feature a series of

interactive session delivering vital information

regarding:

3Latest exploration and licensing updates

3Progress in moving towards production

3Engaging the community and local content

3Attracting investment and project finance

3Spotlight on emerging markets

3Focus on the role of the service companies

3Powering the East Africa region

3The latest technology

The East Africa Oil & Gas Summit is part of the

energy advance network. energy advance is the

only platform of its kind to bring together the full

scope of the global energy value chain, through

community-based intelligence forums, major

international conferences, exhibitions and

summits, delivering over 30 world-class events

each year across Africa, Middle East, Europe and

the Americas.

The East Africa Oil & Gas Summit & Exhibition

(EAOGS) will hold virtually on 17 - 19 November

2021.

07

OIL AND GAS REPUBLIC I SPECIAL EDITION



NGC INTERVIEW

“Trinadad is now entering the

journey of Climate Change and

the NGC is a pivotal player in

catalysing it” - Winston

Mohammed, NGC's Project

Manager

Recognizing who we are and being a part of NGC

makes me excited to share my experience and

knowledge with my teams.

Also, I am excited to be part of the journey to

see Trinidad & Tobago transition from where we

are to where we need to go.

Winston Mohammed

Interview by: Paul Gilbert, and Ndubuisi Micheal Obineme

Mr. Winston Mohammed is the Senior

Manager, Projects Division of the

National Gas Company (NGC) of Trinidad

and Tobago Limited. NGC is the Associate

partner of the energy advance network.

Mr. Winston Mohammed, joined the NGC

in August 2018, bringing with him over 25

years

experience in the oil and gas industry and

has spent over 10 years leading large

projects from design, procurement,

construction, commissioning, and

handover to operations, including the

Juniper, Mango, and New Oil Export

Pipeline projects in a Programme

approach.

His work experience, prior to NGC,

includes project management and gas

commercial experience at BP Trinidad and

Tobago LLC.

He is accountable for the delivery of all

capital projects in NGC and the

compliance of all capital projects against

the requirements of NGC's Project

Management Methodology (PMM)

across the NGC Group.

TER: Please give us a glance at your career

journey in the oil and gas industry, with

emphasis on your project management

skills which have been very productive at

NGCTT?

Winston: I see my experience in three

buckets. First of all, I spent 10 years as an

engineer. To be a Project Manager, you

need to be a good engineer. I also spent a few

years in my formative career, learning and doing

construction works on small projects such as

platform modification, pipeline modification,

design engineering on facilities, process plants.

I did that for around 10 years which gave me a

strong background in the industry.

Also, BP gave me the opportunity to transition

to commercial projects. I spent five years in

commercial projects where I did an economic

evaluation. I learned business development,

gas contracts as well as planning and strategy. I

developed the element needed for writing a

good business kit. With this, it positioned me to

become a major project leader which made me

manage big projects worth over $500 million

United States Dollars.

I also moved into manufacturing where I

learned Lean Six Sigmal that taught me about

process optimization and I came back into the

oil and gas industry. These working experiences

helped me to function in my role as a project

leader at the National Gas Company of Trinidad

and Tobago Limited (NGCTT).

TER: How would you describe your working

experience at NGCTT?

Winston: Firstly, I started working with BP in

Trinidad but NGCTT has always been part of me.

I have been building platforms and facilities to

provide gas for NGC. NGCTT is a very different

working environment for me and the company

is so important for the economy of Trinidad &

Tobago. NGCTT integrates the entire value

chain of Trinidad's gas sector.

TER: Speaking on the COVID-19 pandemic in

2020 that had a negative impact on the oil and

gas industry. What are NGCTT COVID-19

response strategies; and, what lessons did you

learn from them?

Winston: The COVID-19 pandemic is a critical

moment for us. Prior to the pandemic, our

President put in place a five-year strategy, and

part of his strategy was how we will build the

building blocks of a company that will be

sustainable.

So, we have already entered the journey of

collaboration and business crisis management.

And, when COVID-19 came, we find ourselves

actually prepared as a company to operate

remotely.

As an organization, we launched a business

planning exercise and we put in place

contingency plans which made us maintain

business continuity even when zero staffs were

at the workplace. We are an extremely resilient

company because we have developed the

business model over the years.

For instance, we implemented 'Project Online'

which is a Microsoft-enabled collaborative tool

that makes us see the performance of our

projects such as the project management,

schedules, costs among others, all these were

integrated through the 'Project Online.

And, when COVID-19 came, we were able to run

the project collaboratively online and maintain

continuity not a single plant or system was shut

down because of COVID-19.

TER: What're your analyses on the latest

trends in Trinidad & Tobago energy, oil, gas

industry?

Winston: Trinidad & Tobago oil sector is more

than 100 years old. We are in an energy

transition. In the 1990s through BP and other

companies, we started the journey with NGCTT

09

OIL AND GAS REPUBLIC I SPECIAL EDITION


WOMEN IN ENERGY INTERVIEW

to develop a natural gas economy for Trinidad.

What we have now is a world-class

petrochemical industry in which NGCTT sits as

the aggregator. This industry is over 20 years of

existence, and in the year 2000, we saw the

emergence of Liquefied Natural Gas (NGCTT).

20 years ago, we have enjoyed a strong

economy driven by natural gas. Though the

world is changing based on climate change and

technological innovations are making the

world more efficient, and where we work is

changing due to the impact of climate change.

Trinidad is now entering the journey of climate

change and NGCTT is a pivotal player in

catalyzing it.

We have developed world-class assets in terms

of petrochemical, natural gas, pipelines. But

we now need to join the journey with the rest

of the world in terms of the climate change

agenda.

TER: Talking about the building blocks of

NGCTT. Since you came on board as the Senior

Project Manager, what are some of the

achievements and strategies you have put in

place to diversify and strengthen NGCTT's

business portfolio?

Winston: Change is never easy. It takes a lot of

commitment and passion. This is my third year

at NGCTT. For me, my focus is developing the

building blocks. If you don't have a strong

foundation, you won't have a sustainable

business.

At NGCTT, we have a project management

methodology. What I focused on is taking all

the projects through the project management

methodology process and making sure the

teams have samples on how to work on the

project as well as putting in the processes in

place that allow us to manage and make the

best technical and commercial decisions.

We also developed a partnership with some of

our key partners locally. We signed technical

services contract where we leverage our inhouse

engineering design system to design and

install our new infrastructure to promote

estate development with our partner.

We also worked through government

arrangements with a Ghana company to design

a new pressure regulatory skit that is

undergoing construction in Trinidad. We are

doing it online not in Ghana. This is very

exciting for us at this time.

TER: The global energy industry is seeking

innovative solutions for the decarbonization

of climate change. How is NGCTT accelerating

towards a low carbon future?

Winston: The first approach that we have taken

Winston Mohammed, Senior Manager, Projects

Division of NGC

is measuring where our sources of emissions

are coming from. We have measured it and we

are now working on the process of reducing the

emissions by designing new facilities as well as

going back to the sources to fix and reduce the

emission footprint that we have.

Another thing we are working on is how we can

get a lower carbon molecule in our products

and services. For example, we have kicked off a

small-scale LNG project that will focus on

greener LNG molecules to the Caribbean region

that may be using heavy oil. We are looking for

solutions on how we can replace those dirty

molecules with cleaner natural gas.

We are also moving towards renewable energy

through government policy. NGC Group is

partnering with BP to install a solar plant in

Trinidad and we will be partnering with other

companies for clean energy development.

We want to go beyond selling gas but we want

to look at how we can leverage our skills and

partnership to grow our renewable business.

At NGC, we believe that a green molecule is a

competitive advantage. It is sustainable and

makes sense going forward.

TER: What's NGC main building blocks for

Energy Transition?

Winston: The main building block for NGC in

terms of the Energy Transition is focusing on

natural gas. Natural gas is a clean source of fuel

and we have a strong foundation in natural gas.

From there, we will position towards

renewables.

TER: Going forward, what's your plans to

develop the business model for clean energy

projects?

Winston: My immediate focus will be on

developing small-scale LNG projects. We are

also looking at hydrogen molecules,

Geothermal, Wind Energy, and Solar Energy.

We want to start focusing on the Caribbean

area as other areas in that region are ahead of

us and we can learn from them through

partnership.

TER: What are your action plans in 2021 and

beyond?

Winston: My main strategic focus in 2021 is

developing the skill set of the future. There is a

strong recognition that if you want to transform

10 years from today, you need to invest in the

development of your skillset today.

My big focus this year is developing the

technical competence to enable us to achieve

our vision and become the world leader in

project development. It requires a different

skillset and building a strong partnership which

we are already doing.

I am working on transitioning my organization

towards the skill set of the future.

For 2022, we will be building some new facilities

and it's a pivotal year for us to demonstrate our

innovative actions towards a green economy.

10

OIL AND GAS REPUBLIC I SPECIAL EDITION



AFRICAN ENERGY STORIES

Africa’s Energy Transition Journey May

Look Differently - Christel

Gambia Launches Mini-licensing Round for

Block A1

13 14 15

Somalia to Announce Deadline for Maiden

Licensing Round 'Soon' After Encouraging

Bids from Investors

Tanzania to Commence Negotiations for its $30bn

LNG Project in November 2021

Tanzanian Energy Minister January

M a k a m b a h a s d e c l a r e d t h a t

negotiations would officially start on

November 8 to get the Tanzania LNG project off

the ground, according to Hawilti report.

This statement comes in-line following a

meeting held in Dar es Salaam with Paul

McCafferty, Equinor ’s Vice President

Exploration & Production International –

Africa.

On October 4th, Tanzanian President Samia

Suhulu Hassan and Minister Makamba had also

held a similar meeting, virtually, with Shell’s

CEO Ben van Beurden.

The development of the $30bn Tanzania LNG

project in Lindi, in southern Tanzania, has been

on the table for several years but talks had

been suspended since the end of 2019. Last

January, Equinor had even decided to write

down the value of the project by $982 million,

saying that its current economics did not justify

keeping it on the balance sheet.

But things changed when President John

Magufuli died in March and his Vice President

Samia Hassan took over the country’s top job.

She made a direct mention of the project

during her inauguration speech, giving clear

signals of her intention to revive it. Since then,

the Government of Tanzania has had several

talks and discussions with Equinor and Shell in

order to address pending issues and pave the

way for the project’s development.

Tanzania LNG would monetise almost 50

trillion cubic feet of gas (Tcf) discovered in

offshore blocks 1, 2 and 4. Block 2 is operated

by Equinor (65%) along with its partner

ExxonMobil (35%) while the national oil

company TPDC has the right to

January Makamba, Minister of Energy of Tanzania, met on October 21st with Paul McCafferty,

Senior VP E&P International Africa at Equinor.

participate with a 10% interest. The partners

have drilled a total of 15 exploration wells since

2011, resulting in nine discoveries with an

estimated volume of over 20 Tcf.

On the other side, Blocks 1 and 4 are operated

by Shell (60%) along with Singaporean partner

Pavilion Energy (20%) and Indonesian partner

Medco Energi (20%).

The base case development plan envisages a

two-train onshore facility with a combined

capacity of 10 million tonnes per annum (mtpa).

On the Tanzanian side, hopes are that

construction could start by mid-2023 for a

commissioning by June 2028.

The US$30 billion Tanzania liquefied natural gas

(LNG) project is a proposed gas project that has

been in the cards since 2013 that involves the

construction of an LNG plant at Lindi in

Tanzania. According to Equinor an oil

exploration company in Tanzania, the project is

expected to generate significant long-term

benefits to Tanzania through government

revenues, gas for energy production,

employment and development of the local

economy.

The company says that the Project will be the

first of its kind in Tanzania both in magnitude

and size and could significantly contribute to

the growth of the Tanzanian economy.

The LNG project is the viable solution to secure

the development of the gas resources and

maximize the value of the project for the

government and for the companies responsible

for the exploration and the development

activities.

The company said that following the success of

its exploration campaigns and as the operator

of Block 2, it is preparing for the development of

the gas resources which are located about

100km from the coast of Lindi, at a water depth

of 2500 meters.

12

OIL AND GAS REPUBLIC I SPECIAL EDITION


AFRICAN ENERGY STORIES

Africa’s Energy Transition Journey May Look Different - Christel

Christel Kvalvik, Managing Director,

Equinor Nigeria Limited has said

that Africa’s Energy Transition

journey may look different compared to

Europe and the United States.

Speaking at the virtual Africa Energy Series

2021, organized by Global Event Partners,

Christel noted that the investment climate

in Sub-Saharan Africa will continue to be

important both within the oil, gas, and

renewables.

She said Equinor believes that gas will play

a significant role in Energy Transition in

Africa. But, there are two concerns.

"Gas is more complicated than oil and it

depends on the strong collaboration

b e t w e e n t h e i n d u s t r y a n d t h e

government.

"Gas is used at a different part of the world

and not everyone sees gas as clean energy.

There is a job to do in creating the

understanding that the Energy Transition

journey may look differently in Africa".

She further explained that Equinor is

currently building its business folio around

renewable energy, adding that the

company has launched a new structure for

its international portfolio that includes an

African cluster which will allow Equinor to

build a more holistic and innovative

strategy for the African region.

She added, "As an energy company,

Equinor wants to be at the forefront taking

on these challenges.

"Last year, we launched our ambition of

becoming a net-zero company by 2050.

This includes both emissions from

production and energy use.

"We have developed three pillars to

become a net-zero company by 2050. We

will achieve it by upgrading our portfolios

and focusing on abasement measures.

"In our new climate roadmap, we have also

introduced the ambition to have a carbonneutral

global operation by 2030.

"This means by that time, the remaining

emissions from our oil and gas operations

will be compensated by nature-based

solutions.

"We are working very closely with the

Norwegian government, suppliers, and

with various industry stakeholders. There

are a lot of things going on to reduce our

carbon footprint in our operations".

Christel Kvalvik, Managing Director,

Equinor Nigeria Limited

Equinor is present in more than 30 countries

around the world, including several of the

world’s most important oil and gas provinces.

We operate in North and South America, Africa,

Asia, Europe, Oceania and Norway.

The Angolan continental shelf is one of the

largest contributors to Equinor's oil production

outside Norway, since 1991, when it first

entered the Angolan market. This year, Equinor

is celebrating 30 years in the country, producing

from three blocks - and aiming for more.

Equinor is a partner in eight Angolan offshore

producing fields in the Congo basin on the

Angolan continental shelf totaling an equity

production of around 120,000 barrels of oil

equivalent per day (2020).

Equinor started exploration drilling activities in

Block 2 Offshore Tanzania in 2011.

By Ndubuisi Micheal Obineme

A total of 15 exploration wells have been drilled,

resulting in nine discoveries with estimated

volumes of more than 20 Tcf of gas in place.

Equinor has been in Tanzania since 2007 when

the company signed a Production Sharing

Agreement (PSA) for Block 2 with Tanzania

Petroleum Development Corporation (TPDC).

Equinor Tanzania is the Operator with 65%

participating interest while ExxonMobil is

partner with a 35% working interest. TPDC has

the right to participate with a 10% interest.

Major gas discoveries have been made offshore

Tanzania and the country is emerging as a

potential large gas producer in East Africa.

Equinor started exploration drilling activities in

Block 2 Offshore Tanzania in 2011. A total of 15

exploration wells have been drilled, resulting in

nine discoveries with estimated volumes of

more than 20 Tcf of gas in place.

Capacity Building

Equinor has an ambition wherever possible to

utilise local resources during the different

phases of the project. Equinor have embarked

in several initiatives for capacity-building to

facilitate knowledge building, skills building and

academic qualification.

Stakeholders Seminars

Since June 2015, Equinor Tanzania has been

running a special programme which consists of

seminars for various stakeholders including

government, NGO, CSOs and the private sector.

The aim of this programme has been to build

understanding and raise awareness on the gas

value chain and the proposed LNG project to

our key stakeholders.

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AFRICAN ENERGY STORIES

Fafa Sanyang, Minister of Petroleum and Energy,

The Gambia

Gambia Launches Mini-licensing Round for Block A1

T

he Ministry of Petroleum and

E n e r g y, T h e G a m b i a , h a s

announced that it will be launching

a mini-licensing round for Block A1 at

Africa Oil Week on 8 November 2021. This

follows the success of the licensing round

for drill sites in 2018.

Granted initially to BP in 2019, Block A1

became available in August this year after

the company exited the licence. This is part

of BP's company strategy to pivot from

producing resources to integrating energy.

BP did perform the required work

obligations, including acquiring and

reprocessing 2D and 3D data, conducting

environmental impact assessment,

geohazard, geology and geophysical

studies that matured a number of

prospects into drill-readiness.

"The Government wishes to seize this

opportunity to thank BP for their interest

and strong collaboration during the past

two years that they have worked in the

Gambia and wished them good luck in

their new strategy focus, hoping to work

with them in the future in some other

ways", says the Honourable Fafa Sanyang,

Minister of Petroleum and Energy, The

Gambia.

The Ministry is working with legal,

technical and financial advisors to assist

them in designing the licensing round's

commercial and fiscal framework that

considers the current market environment

and creates value for the people of The

Gambia.

“We are acutely aware of the impact of the

energy transition on frontier oil and gas markets

such as The Gambia. At the end of the well

prepared and fast-tracked licensing round

process, we look to enter a successful

partnership that works for both the

Government and the international partner to

extract the petroleum wealth in our country

with conditions reflective of the changed

reality," says the Honourable Sanyang.

The 2021 licensing round will be based on the

same principles of transparency and legitimacy

established in the 2018 licensing round. But, to

expedite the exploration started by BP, the

Ministry has expressed an interest in closing the

licensing round as soon as possible. Details of

the structure and timelines will be provided

during the Africa Oil Week and related

publications.

"Following our previous success in

implementing the 2018 licensing round, we

believe that launching a mini-licensing round

for A1 will ensure the greatest transparency,

legitimacy and competition. The multidisciplined

government team that was involved

in the first licensing round will also be involved

in this licensing round and has built up huge

capacity over the last few years working closely

alongside BP and our legal, technical and

financial advisors," says The Honourable Jerreh

Barrow, Commissioner for Petroleum, The

Gambia.

"Our key objective in designing the licensing

round is to ensure an attractive fiscal regime

with low entry conditions for bidders,

transparent procurement process and

participation rules, and clear technical and

financial minimum qualification criteria. Our

government team has the necessary

experience and is well prepared to repeat the

success of the 2018 licensing round, and to once

more, start and finish the licensing round within

the timeframe (December 2021 to May/June

2022) announced," says the Permanent

Secretary at the Ministry of Petroleum and

Energy, Lamin Camara, The Gambia.

The Managing Director of the National

Petroleum is confident that the National Oil

Company (NOC) is well placed to partner with

any eventual licensee.

Overview of Tenure Over the A1 Block

32006 Buried Hill signs two licences with GoGT

for the right to explore, develop and produce A1

and A4 blocks.

32010 Buried Hill enters into a farm-in

agreement with African Petroleum whereby

Buried Hill retains 40% participating interest.

32014 GoTG terminates both the licences for

A1 and A4 with Buried Hill and its partners and

then reinstates them.

32016 Africa Petroleum’s licences for blocks

A1 and A4 expire. Africa Petroleum dispute this

November 2017, the GoTG announced its

intention to license up to a six (6) blocks in a

competitive selection process. The Ministry ran

this licensing round with the support of the

African Legal Support Facility (a subsidiary of

the African Development Bank), November

2018 Far drills the Samo 1 dry hole in A2.

3April 2019 The GoTG signed a petroleum

license with BP for the A1 block

3September 2020, Block A4 reinstated to

Petronor (Africa Petroleum) .

32021 BP relinquished the A1 Licence without

drilling its commitment well as a direct result of

a change in corporate strategy.

34Q 2021 Far to drill the Bambo 1 well in A2

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AFRICAN ENERGY STORIES

Somalia to Announce Deadline for Maiden Licensing

Round 'Soon' After Encouraging Bids from Investors

Somalia will announce the deadline to bid

for its first crude oil offshore licensing

round "soon" after receiving interest

from international companies to start

exploration drilling in the country, according to

report from S&P Global Platts.

The country is also seeking investors for

downstream Gasoline imports from UAE,

Oman, as Seven blocks open for licensing.

Mohamed Arabey Hashi Abdi, Director General

of Somalia's Ministry of Petroleum & Mineral

Resources said, "We are encouraged at the

interest so far," Mohamed Arabey Hashi Abdi

said Nov. 10 on the sidelines of the Africa Oil

Week in Dubai. He said interest has also been

expressed in Dubai in the past few days. Oil

production could start for the first time in the

country in two years".

The Somalia Petroleum Authority launched the

country's first-ever offshore round in May 2020

offering seven blocks in the offshore which runs

into the Indian Ocean and Gulf of Aden. At the

time, the round was due to close for bids on

March 12, 2021, but was extended. The

deadline is likely to be next year, Abdi said.

Negotiations with interested companies are

currently underway to decide terms for the

production sharing agreement, he said.

The seven blocks in the licensing round are

Mohamed Arabey Hashi Abdi, Director General of Somalia's Ministry

of Petroleum & Mineral Resources

estimated to hold more than 30 billion

barrels of oil, Abdi said. Somalia

discovered oil in 1950 but the civil war

caused companies including Exxon Mobil

to halt operations. Since 2009, a new

government has brought stability to the

country, Abdi said.

Somalia has more than 200 blocks

offshore that could potentially hold crude

oil, he said. Somalia is also looking into

ways to attract

investors in downstream operations

including refineries as the country currently

imports all of its gasoline from the Middle

East, mostly from the UAE and Oman, Abdi

said.

Somalia established a petroleum law in 2020

that is the framework allowing for

exploration and hydrocarbons production in

the country onshore and offshore.

UK and Zambia Sign Landmark Green Growth Compact Agreement

The UK and Zambia signed a new

landmark partnership to drive

sustainable economic growth and build

on the momentum created by the historic

COP26 climate summit. The Compact was

signed in London by the UK Minister for Africa,

Vicky Ford and Zambian Minister of Foreign

Affairs, Stanley K Kakubo.

The Compact sets targets for delivering billions

of pounds of new investment, doubling trade

volumes between the two countries, and

channelling over £100m of new financial

resources to small and medium sized

enterprises. It will strengthen coordination

between the entire UK business community

and the Zambian Government, as well as

opening up financing opportunities for

Zambian businesses. It provides the framework

for collaboration with UK institutions that are

researching and innovating in renewable

energy, urban planning, trade connectivity and

more.

The signing followed a reception hosted at the

Houses of Parliament by the Prime Minister’s

Trade Envoy to Zambia, Laurence Robertson

MP, attended by UK Parliamentarians and a

wide range of major UK businesses and

investors. The Presidential delegation also held

meetings to discuss new investments with UK-

Government backed investors such as CDC

Group and Private Infrastructure Development

Group (PIDG) and UK Export Finance.

The UK Minister for Africa, Vicky Ford, said: "The

UK and Zambia are partners in growing greener,

more stable economies that create jobs in both

countries and new business opportunities. The

Green Growth Compact is a landmark

agreement that will benefit the UK and Zambia

by boosting UK investment in Zambia by up to

£1 billion, creating thousands of jobs and

supporting green energy production."

Nicholas Woolley, British High Commissioner

said: "This is an extremely exciting time for the

partnership between the UK and Zambia. This

Green Growth Compact enables us to formally

build a stronger trade and investment

relationship, based on sustainability, mutual

prosperity and creating opportunities for

businesses and communities in both our

countries."

Steve Beel, Development Director at the British

High Commission said: "Supporting Zambia to

grow the economy sustainably is at the heart of

our approach to tackling poverty and enabling

the most vulnerable to be financially supported

and have the opportunity to enhance their own

livelihoods."

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AFRICAN ENERGY STORIES

Nigerian Navy Signs Contract For Two New Offshore Patrol Vessels

The Nigerian Navy today signed a contract

with a Turkish company, Messrs Dearsan

Shipyard Limited for the purchase of 2 brand

new Offshore Patrol Vessels. The 2 vessels are

expected to be completed within 37 months.

Speaking at the ceremony, Chief of the Naval Staff,

Vice Admiral Awwal Gambo recalled that Nigerian

Navy has in the last couple of months brought to

bear her dominant status in the region by sustaining

an aggressive presence in the nation’s maritime

environment, leading to drastic reduction in acts of

criminality in the domain.

This development he added has been acknowledged

by the International Maritime Bureau (IMB) in its

Global Piracy Report of 14 July 2021, indicating the

lowest total of piracy and armed attacks against

ships in 27 years.

According to the CNS, this report was corroborated

by the Defence Web maritime security report of 15

October 2021 which noted further decline in

reported cases of piracy and armed attacks against

shipping in the Gulf of Guinea (GoG), a development

he attributed to the impact of NN maritime security

operations efforts.​

Admiral Gambo stated that the contract signing

ceremony was another milestone achievement by

the Nigerian Navy in her fleet renewal effort towards

realizing her 2021-2030 Strategic Plan and

expressed gratitude to the President and

Commander-in-Chief of the Armed Forces, His

Excellency President Muhammadu Buhari for his

continued support and goodwill towards the

Nigerian Navy.

The CNS also recalled that on the directive of the

President and Commander-in-Chief, the Nigerian

Navy hosted the Chief of the Ghana Navy to discuss

collaborative efforts to combat piracy and other

maritime crimes in the GoG and during the meeting,

it was agreed that there was a need to establish a

standing ECOWAS Multinational Task Force in the

GoG.

Equatorial Guinea seeks collaboration

with Nigeria on Oil and Gas

Gabriel Obiang Lima

Pertinently, to sustain the upwards trajectory of the

NN’s operational engagements and actively

participate in the proposed Task Force, the CNS

informed that the President granted approval for the

NN to procure 2 High Endurance Offshore Patrol

Vessels with the capability to carry out maritime

interdiction operations, surveillance and special

forces operations as well as provide naval fire

support to land forces.

”The OPVs will also be capable of conducting search

and rescue operations, anti-piracy, anti-smuggling

and anti-drug trafficking operations and disaster

relief operations among others”.

Admiral Gambo further revealed that the process of

selecting a shipyard capable of constructing the

OPVs began in earnest and Dearsan Shipyard Limited

was selected based on its track record and the

conviction that the shipyard would be able to

construct a platform that could be deployed as an

OPV in peacetime, while having the capability and

flexibility to be quickly outfitted with sensors and

weapons to re-role the platform for warfare and

maritime defence purposes, at a cost effective price.

The Minister of State for

Petroleum Resources, Timipre

Sylva welcomed the Minister of

Mines and Hydrocarbons of the

Republic of Equatorial Guinea, Gabriel

Obiang Lima and his team in his office

at the NNPC Towers in Abuja recently.

The meeting is a follow up to bilateral

issues on energy transition and the

need for African countries to work

together both on bilateral and

multilateral levels also advocated for

the maximization of natural oil and gas

resources in the continent.

The Minister of State for Petroleum

Resources, Sylva used the occasion to

re-echo the need to have African Energy

Bank through African Petroleum

Producers’ Organization (APPO).

Lima who submitted the purpose of the

meeting felicitated with Nigeria on the

achievement over the Petroleum Industry

Act, stated that his country had been

following development in the Oil and Gas

Industry in Nigeria and emphasized the

need for cooperation to boost economic

development in Africa.

The interaction concluded by tasking the

technical team of both countries to

produce a concrete report that will

translate to business opportunities

between the two countries.

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AFRICAN ENERGY STORIES

COP26: Germany Announces €18m Support for Climate

Insurance in Africa

T

he Government of the Federal Republic

of Germany announced, on the margins

of the ongoing United Nations 2021

United Nations Climate Change Conference

(COP26), the sum of €18million to subsidize the

cost of disaster risk insurance for qualifying

African Risk Capacity (ARC) Group Member

States. In her statement, the Parliamentary

State Secretary to the Federal Ministry for

Economic Cooperation and Development

(BMZ), Dr. Maria Flachsbarth, stated that the

commitment will help establish a Premium

Support Facility for African governments and

humanitarian agencies wishing to purchase

climate related insurance.

ARC, an African Union initiative that is led by 35

AU Member States, provides insurance for

droughts and tropical cyclones. The standard

approach to pay for climate disasters is slow

and unpredictable, using humanitarian appeals

or loans arranged after a disaster strikes. ARC

replaces these outdated approaches by

offering governments and humanitarian actors

the opportunity to plan and purchase

insurance that can provide fast payouts, quickly

reaching people who need support. This

prevents humanitarian needs from escalating,

ultimately saving lives, protecting livelihoods

and assets, and safeguarding development

gains.

Since 2014, 62 policies have been signed by

Member States for cumulative insurance

coverage of US$720 million for the protection

of 72 million vulnerable populations in

participating countries.

Given that climate change is threatening to

bring more frequent and severe extreme

weather events, the Premium Support Facility

will be crucial for the most vulnerable African

countries.

Following the Covid-19 pandemic, many

African governments have severely

constrained budgets and humanitarian

agencies are struggling to meet unprecedented

levels of need. This new funding will subsidize

insurance premiums, decreasing in future

years as countries and organisations are able to

take over the costs using their national budgets

and long-term sustainable financing.

Germany’s support will catalyze effective risk

management and help protect the poorest and

most vulnerable people across the continent.

Christian Krämer, Member of the Management

Committee at KfW Development Bank said:

“Germany has been a long-standing supporter

of the African Risk Capacity. Earlier this year,

in Germany we were affected by devastating

floods – we have experienced ourselves the

importance of preparedness and the vital

role that insurance can play in recovery. We

are therefore delighted to be able to extend

support to African nations who have been so

badly affected by the covid-19 pandemic, so

that they can take steps to prepare well to

face the rising challenges of climate change.”

Ibrahima Cheikh Diong, United Nations

Assistant Secretary-General / Director-

General of the African Risk Capacity Group

commented: "We are extremely delighted

about the consistent support of the German

Government to disaster risk reduction and

mitigation in our Member States. The grant is

a clear testimony of the value of smart

partnerships for smart disaster risk

management and financing for early action.

Through this assistance, we are optimistic

that other partners will embrace our pitch for

a Continental Premium Support Facility to

help institutionalize sovereign parametric

insurance culture in the region.”

Christina Bennett, CEO, Start Network noted:

“We are delighted to hear of Germany’s

increase in support to ARC. By funding

premiums for drought and tropical cyclone

insurance in African countries, Germany is

helping to ensure that vulnerable

communities are better protected from the

escalating risks that they face as a result of

the climate crisis.”

(ARC) Group consists of ARC Agency and ARC

Insurance Company Limited (ARC Ltd). ARC

Agency was established in 2012 as a

Specialized Agency of the African Union to

help the Member States improve their

capacities to better plan, prepare and

respond to weather-related disasters. ARC

Ltd is a mutual insurance facility providing

risk transfer services to the Member States

through risk pooling and access to

reinsurance markets.

With the support of the United Kingdom,

Germany, Sweden, Switzerland, Canada,

France, the European Union, the Rockefeller

Foundation, and the United States, ARC

assists the AU Member States in reducing the

risk of loss and damage caused by extreme

weather events affecting Africa’s populations

by providing, through sovereign disaster risk

insurance, targeted responses to natural

disasters in a more timely, cost-effective,

objective, and transparent manner. Since

2014, 62 policies have been signed by the

Member States for cumulative insurance

coverage of US$720 million for the protection

of 72 million vulnerable populations in

participating countries.

KfW is one of the world’s leading promotional

banks. KfW has been committed to improving

economic, social and environmental living

conditions across the globe on behalf of the

Federal Republic of Germany and the federal

states since 1948. To do this, it provided

funds totalling EUR 135.3 billion in 2020

alone. Of this amount, 33% was used for

climate and environmental protection. Its

financing and promotional services are

aligned with the United Nations’ Agenda

2030 and contribute to the achievement of

the 17 Sustainable Development Goals

(SDGs).

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AFRICAN ENERGY STORIES

Africa Requires $2.8trn Investment to Transition to Clean Energy by 2050 - PWC

Energy experts at PricewaterhouseCoopers

(PwC) have said that African countries will

need an estimated $2.8 trillion

investment to transit from its current energy base

and achieve the global net-zero emission target by

2050.

They stated this at the firm’s 2021 Africa Energy

Review, saying that though transition to clean

energy in the continent would result in loss of

more than $15.2 trillion income source from fossil

fuel, but an estimated five million jobs would be

created in the process.

Speaking at the virtual event, Pedro

Omontuemhen, PwC Africa Oil & Gas Industry

Leader, said that investment in low-carbon energy

systems in Africa lags global pace, adding that

despite global climate finance commitments from

developed economies aimed at $100 billion per

annum, the allocation to Africa falls significantly

short of what the continent requires to meet

global targets.

“The fiscal constraints being experienced across

Africa create a challenge for the continent to

move with pace on its net-zero journey. Private

partnerships, public-private partnerships (PPPs)

and blended finance are becoming increasingly

important and will need to be deployed together

with strong public sector governance and

innovative financing instruments to overcome

these challenges,” he said.

James Mackay, PwC Director, Energy Strategy and

Infrastructure, said:“Ensuring a sustainable planet

is not a cost-benefit assessment, that said: Africa

must carefully consider the economic impact of a

transition away from fossil fuels and associated

revenues in context of the affordable pace of

development and growth of the renewable

energy sector. More than a third of African nations

are very dependent on fossil fuel commodities for

state revenue, foreign currency reserves and local

economic activity. An unfunded and rapid

shutdown of this sector would place significant

fiscal strain and hardship on Africa.

“On the other hand, too slow a transition may see

Africa lag global markets and emissions

reductions targets. Developed economies must

play an active role in Africa to ensure a global winwin

outcome”

On job creation, he said: “The adoption of

renewable energy has the potential to boost

employment opportunities on the continent with

the creation of new skills and skills capacity. This

employment creation is not limited to direct

employment and of relevance to Africa is the

potential boost in non-energy jobs through

broader economic activity in rural communities

where improved energy access through mini-grids

and off-grid solutions will impact economic

productivity.

“Overall, the energy transition in Africa has the

potential to result in total renewable energy

employment of around five million jobs by 2030,

which is a substantial increase from the estimate

of 324,000 currently employed.”

Pedro Omontuemhen, PwC Africa Oil & Gas Industry Leader

FG approves Zero Import Duties for

Vessels, Ships Parts

The Director-General of the Nigerian

Maritime Administration and Safety

(NIMASA), Dr. Bashir Jamoh has

formally announced that the Federal

Government of Nigeria is concluding plans to

grant zero import duties on vessels and ship

parts.

Dr. Bashir revealed this while speaking in a

session at the maiden edition of Nigeria

International Maritime Summit (NIMS).

Jamoh noted that the approval is currently

before the Permanent Secretary of the

Ministry of Transportation, Dr. Magdalene

Ajani, even as the NIMASA boss expressed

optimism that the announcement will be

made soon.

The NIMASA Director General said that the

fiscal policy is long overdue, noting that the

government has made similar incentives for

manufacturers, airline operators, among

other sectors.

According to Jamoh, as buttressed by the

Minister of Transportation, Hon. Rotimi

Amaechi a fortnight ago, there is also a dire

need for the Nigerian maritime sector to be

more united in a bid to advocate for issues of

common interest and beneficial to the

nation.

Meanwhile, the immediate-past Chief

Executive Officer (CEO) of South African

Maritime Safety Authority, Commander

Tsietsi Mokhele stressed that Nigeria should

pick an area of specialization within the

maritime sector.

According to him, Asian nations are leading

various aspects of shipping as Phillippines

lead in seafaring, Singapore a hub for

connectivity via ports, while Japan and China

are among the top three ship owning nations.

He stressed that African nations should start by

exploring their most advantageous areas in the

maritime sector before addressing other areas of

high value for their economies, however, he

opined that the change in trade terms for the

export of Nigerian crude oil from Free On Board

(FOB) to Cost Insurance and Freight (CIF) would

change the significance of maritime to the

nation’s economy.

In her welcome speech, the Chairperson of the

NIMS, Barr. (Mrs.) Mfon Usoro stressed the need

to bring all necessary Ministries together in bid to

get them in sync to adopt a holistic maritime

national strategy.

According to her, a whole government approach

to adopt the maritime industry growth is key to

attaining the anticipated goals of the shipping

sector.

“How can we have Nigerians that own vessels but

choose to use the shipping registries of other

nations? This Summit focuses the attention of

policy makers, regulators and the industry

operators on a critical segment that some

consider the substratum for economic growth,

the centerpiece for commerce, security and

indeed livelihood,” she said.

On his part, the Chairman of Starz Group, Engr.

Greg Ogbeifun said that he was delighted with

the development that imported vessels will enjoy

fiscal incentive of zero import duties.

Ogbeifun also encouraged NIMASA to have

frequent meetings with ship owners and other

stakeholders in the shipping sector after the

Registrar of Ships, NIMASA, Mrs. Nneka Obianyor

stated that the last engagement with

stakeholders was in February 2020.

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AFRICAN ENERGY STORIES

Uganda to Amend its Petroleum Policy; Seeks JV Partner

for Oil, Gas Project

By Ndubuisi Micheal Obineme

"In all of this, UNOC plays a key role as the

business arm of government. UNOC's main

mandate in the Petroleum Act (2013) includes;

managing the State's commercial interests in

the petroleum sub-sector; Developing in-depth

expertise in the oil and gas sector.

"Joint Venture (JV) partnership is part of what

UNOC does. We have established a strong

footprint across the entire petroleum value

chain.

"We are a JV partner with TotalEnergies,

CNOOC, with 15% participating interest. We

also have a 15% interest in the EACOP project.

Uganda is working on amending its

petroleum policy to ensure that the

u p s t r e a m - e x p l o r a t i o n ,

development, and production are well

regulated and the midstream - petroleum

refining are also well regulated.

Engr. Irene Pauline Bateebe, Permanent

Secretary of Uganda Ministry of Energy &

Mineral Development disclosed this at the

6th edition of Uganda International Oil and

Gas Summit (UIOGS) 2021.

In her speech, she stated that the Uganda

oil and gas sector is underpinned by the

National Oil and Gas Policy of 2008 which is

10 years old.

"But, we are working on amending it to

address issues around the global energy

transition and other emerging issues in the

country's oil and gas sector.

"We do have an existing downstream

policy under the Petroleum Supply Act,

2003. We have laws that ensure the

efficient management of oil and gas

revenues.

"There is Public Finance Management Act

2015 that handles petroleum revenue

management. We have regulations that

address specific segments such as the

Health, Safety & Environment (HSE),

National Content, Metering among others.

"As the development continues, we

recognize the need to put in place

additional laws that will facilitate project

development.

"Specifically, we are working on enabling

Jessica Kyeyune

the legislation for the EACOP Bill 2021 with the

amendment on Income Tax Act Bill 2021, and

Public Finance Management Act Bill 2021.

"We will be providing the right environment for

the legal and regulatory framework to advance

the project," she added.

She also said that the Uganda Ministry of Energy

and Mineral Development provides policy,

licensing, regulation, commercial frameworks

to ensure projects are promoted efficiently.

According to her, under the National Oil and Gas

Policy, the Government of Uganda established

the Uganda National Oil Company (UNOC)

which is focused on the commercial and

business aspect of the oil and gas industry.

She said, "Another entity that was established is

the Petroleum Authority of Uganda (PAU) who

is responsible to regulate the country's oil and

gas sector.

Speaking on the Joint Venture partnership, Mr.

Gilbert Kamuntu

Chief Commercial Officer of Uganda National

Oil Company (UNOC) stated that the Joint

Venture Partnership Opportunities in Uganda

requires the involvement of government

institutions such as the Ministry of Energy and

Mineral Development, The Ministry of Finance,

Petroleum Authority of Uganda, and Uganda

National Oil Company (UNOC), etc...

Kamuntu said that The Ministry of Finance plays

a key role to design the fiscal regime which

encourages national content and JV

partnership. While Petroleum Authority of

Uganda handles the regulation aspect, as the

commercial aspect is managed by UNOC.

"We have a 40% interest in the Uganda Refinery.

We have various interests across other areas of

business such as Trading - bulk importation of

petroleum products, Kabaale Industrial Park,

and Terminal Facilities.

"We intend to go into JV partnership for the

Kampala Storage Terminal.

"At UNOC, we believe JVs is important and a

good strategy for the development of our

projects.

"UNOC also have the responsibility of new

exploration ventures. It promotes the

development and implementation of National

Content.

"UNOC unbundles contracts of UNOC in UNOC-

Led projects to enable participation of Ugandan

businesses.

"UNOC is involved in the development and

implementation of Procurement and

Contracting Procedures for the benefit of

Uganda Firms.

"UNOC is also involved in Executing Agreements

that offers skills transfer, technical know-how,

and technology from JV partners and their subcontractors

to Ugandan firm through JV

Agreements.

"UNOC is building capacity and skills for

community-based contractors and SMEs to

provide services and materials for the industry.

It also supports training and capacity building

for Ugandans in Oil and Gas," he added.

In her words, Ms. Jessica Kyeyune, National

Content Specialist of Uganda National Oil

Company (UNOC), said that UNOC will be

entering new exploration ventures to get some

blocks.

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AFRICAN ENERGY STORIES

"We are also doing business in storage

terminal where we are looking for Joint

Venture partnership.

"We are also involved in downstream bulk

trading and UNOC has an operator interest

of 100%".

Jessica stressed that UNOC has developed

a National Content Strategy with Six Pillars

which comprises the Recruitment of

U g a n d a n s ; S u p p l i e r C a p a c i t y

D e v e l o p m e n t ; N a t i o n a l S k i l l s

Development; Supplier Selection;

Operation Services Capacity; Operatorship

Capacity.

She explained that UNOC is focused on

recruiting Ugandans which has enabled

the company to employ Ugandans living in

the Diaspora who are working in other

countries in the Middle East, United States,

UK, and Asia.

She confirmed that some of the Ugandans

living in the Diaspora have returned to the

country to support the development of

UNOC.

"Presently, we are 100% Ugandans. But,

we will get more expatriates for gender

diversity and inclusion.

"We have a target of employing 70%

Ugandans and 30% internationals. We

need the internationals as Uganda is a

nascent oil and gas country and we do not

have enough professionals.

"For the second pillar on Supplier Capacity

Development, this is where we are facilitating

growth and capacity building on core financial

and HSE development of national providers.

"We will carry out some supplier development

workshops. We are planning to take some of our

suppliers to Nigeria to gain more experience

and understand the supplier's business

activities.

"We have also entered MOUs with Stanbic Bank

to support suppliers and UNOC is a major player

in that aspect.

"We are entering into various partnerships so

that when the need arises for training, UNOC

will get into that training space.

"We are also working on national skills

development and this is where we are

developing the skills of Ugandans. We do formal

training in oil and gas, as we attend conferences

and other event activities.

"We are going to place our staffs to work with

IOCs operating in Uganda and other players

such as EPC contractors.

"We are benchmarking our operation

internationally to gain the necessary skills.

"For Procurement, we give preference to

Uganda companies. We are also working on

making sure our suppliers aren't just focusing

on the Uganda market but they can be able to

supply internationally".

Speaking about the Operatorship Capacity, she

said UNOC will get some exploration licenses, as it

has identified the blocks and once they have been

able to get it, UNOC will look for Joint Ventures

partners.

Uganda National Oil Company Limited (UNOC) is a

limited liability company wholly owned by the

Government of Uganda. The company's overall

function is to handle the Government of Uganda’s

commercial interests in the petroleum sector and

to ensure that the resource is exploited in a

sustainable manner.

UNOC is also mandated to investigate and propose

new upstream, midstream, and downstream

ventures initially locally and eventually

internationally.

UNOC's mission is to drive sustainable growth of

the oil and gas sector through strategic

p a r t n e rs h i p s a n d c h a m p i o n n a t i o n a l

participation. It goals are organized under three

main strategic themes i.e. Invest in People,

Partner Strategically and Build the Business.

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AfCFTA Secretariat, AfDB Partner to Boost Intra-African Trade

African Development Bank Group

President, Dr. Akinwumi A. Adesina,

has said that the Bank will integrate

the African Continental Free Trade Area

(AfCFTA) into its country and regional

integration strategies.

Receiving AfCTA Secretary-General

Wamkele Mene, in Abidjan on 29 October,

Adesina said “the implementation of the

free trade area will become a key

component of the Bank’s lending program.

We want to have a critical mass of AfCFTAaligned

investments.”

Adesina said the Bank would support the

AfCTA Secretariat in implementing its

various trade and industrial initiatives and

programmes.

“We have a responsibility to ensure that that

the African Continental Free Trade Area is an

industrial hub. The zone should become an

area for manufacturing, not merely for

trading,” Adesina stressed. He said the Bank

would work closely with the AfCTA

Secretariat to ensure that Africa produces at

scale. “We require a large industrial

manufacturing zone that generates income

and competes on a local and global scale,”

the African Development Bank chief said.

Mene said the Secretariat would help

member states remove trade barriers to

boost intra-African trade. “But we cannot do

so without the support of the African

Development Bank,” he said, explaining …

“we would just be a trading hub with no real

output.”

Wamkele Mene said that the African

Continental Free Trade Area provided Africa

with a great opportunity to develop the

necessary infrastructure to support trade and

benefit small and medium enterprises.

He sought the Bank’s continuous support. “We

want the initiative to run as an African initiative

supported by our heads of state and our

development finance institutions,” Mene said.

Adesina assured the AfCTA chief of the Bank’s

long-term support for the continental initiative.

He said it would provide institutional support,

particularly in the areas of industrialization,

finance, infrastructure, and logistics.

The Bank and the Secretariat are to put together

an Africa industrialization forum for more

directed Bank support. “We want to ensure that

industries emerge in a more structured manner in

Africa,” the African Development Bank president

said.

Both leaders agreed to draft a memorandum of

understanding to strengthen their relationship

and facilitate effective collaboration.

The African Development Fund, the Bank group’s

concessional lending arm, provided support for

the establishment of the AfCFTA Secretariat in

Accra, Ghana through a $5 million institutional

grant to the African Union.

Several senior management officials of the Bank

participated in Friday’s meeting, including Senior

Vice President Bajabulile “Swazi” Tshabalala,

Vice-President for Regional Development,

Integration and Business Delivery Khaled Sherif,

Vice President for Private Sector, Infrastructure

and Industrialization Solomon Adegbie-Quaynor,

S p e c i a l A d v i s e r to t h e P re s i d e nt o n

Industrialization Professor Banji Oyelaran-

Oyeyinka, and Director of the Industrial and Trade

Development Department, Abdu Mukhtar.

The African Development Bank’s Strategy for

2013–2022 reflects the aspirations of the entire

African continent. It is firmly rooted in a deep

understanding and experience of how far Africa

has come in the last decade, and where it wishes

to go to in the next.

Africa has embarked on a process of economic

transformation. This process has seen solid and

sustained growth over a decade, but it has been

uneven and without a sufficiently firm

f o u n d a t i o n , a n d i t i s n o t — b y a n y

estimation—complete.

This Strategy is designed to place the Bank at the

center of Africa’s transformation and to improve

the quality of Africa’s growth. It aims to broaden

and deepen that process of transformation,

mainly by ensuring that growth is shared and not

isolated, for all African citizens and countries, not

just for some. It also aims to bring about growth

that is not just environmentally sustainable, but

also economically empowering. When growth is

inclusive as well as “green”, it creates the jobs that

the continent needs now and that it will need in

ever greater numbers as millions more young

people enter the job market, with energies and

aspirations to match.

The Bank’s vision is thus Africa’s vision, and its

future is Africa’s future. The Bank’s many

successes reflect the successes of the continent it

serves—while the gaps in its achievements reflect

the impediments to true transformation across

its regional member countries. The goal of a

regionally integrated and economically diverse

Africa—determined to include young and old,

women and men, rural and urban communities

alike, while being increasingly green—will

establish Africa as the next global emerging

market. The African Development Bank will be its

development voice and its development partner

of choice.

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TA L K I N G P O I N T

Engr. Simbi Kesiye Wabote

Executive Secretary of Nigerian Content

Development and Monitoring Board (NCDMB)

‘Capacity Building,

Funding key

Conditions for Local

Content Growth’

Any nation or sector of the economy

that seeks to implement Local

Content policies successfully must

deploy certain programmes such as Capacity

Building initiatives, Funding and Incentives

and Research and Development, Gap

Analysis, Regulatory Framework and Access

to market. The Executive Secretary of

Nigerian Content Development and

Monitoring Board (NCDMB) Engr. Simbi

Kesiye Wabote identified these conditions

recently in a presentation he delivered to the

6th Ugandan International Oil and Gas

Summit titled “Developing A World Class

Local Content Structure.”

D r a w i n g f r o m t h e s u c c e s s f u l

implementation of the Nigerian Oil and Gas

Industry Content Development (NOGICD)

Act, he underlined that entrenching a

sustainable Local Content practice leads to

development, empowerment, prosperity,

and creation of employment opportunities

for the populace.

Providing details, he explained that an

enabling regulatory framework backed with

the appropriate legislation is fundamental to

effective Local Content practice as it sets the

framework and boundaries for all

practitioners in the sector.

According to him, the second factor is

baseline and periodic gap analyses to

determine gaps that need to be closed in the

areas of skills, facilities and infrastructure.

He added that “the oil and gas industry keeps

evolving and regular reviews and monitoring

of local content goals show where capacities

have been met, current gaps, and where

capacity upgrade is required to guide

deployment of resources and investment

decisions.”

He underscored the need to strike a balance

between aspirational goals and realistic target

setting and to put in place credible action plans

and initiatives to close the gaps and

understanding that all gaps cannot be closed

overnight, hence the need to prioritize areas of

high impact and deploy implementation

measures.

Wabote also stressed the importance of

developing in-country capacities and capabilities,

catalysing local manufacturing and infrastructural

development as well as Human Capacity

Development.

He hinted that implementation of major projects

are important in the development of in-country

capacities and capabilities, while Capacity

Development Initiatives (CDI’s) are important

tools in closing identified capacity gaps. He added

that Project Based trainings are important

element of Human Capacity Development, while

major projects are important to sustain utilization

of established capacities and attract additional

investments for growth.

He pointed out that Funding and Incentives are

important to implementing Local Content

programs, developing infrastructure, attracting

new investments, and keeping existing businesses

afloat where required.

Dwelling on funding, Wabote explained that one

percent of the value of contracts awarded in the

upstream sector of Nigeria’s oil and gas industry is

pooled into the Nigerian Content Development

Fund (NCDF), adding that the NCDMB had

deployed the funds in the launch of the $350

million Nigerian Content Intervention Fund (NCIF)

in partnership with the Bank of Industry and

NEXIM Bank. Other utilizations of the NCDF

include ongoing development of Nigerian Oil and

Gas Parks Scheme as manufacturing hubs,

Construction of the new 17-storey headquarters

building, 1000-seater international conference

center and Partnership with project promoters in

the establishment of modular refineries, LPG

terminals, manufacturing of LPG Cylinders, and

others.

The Executive Secretary underscored the

importance of that Research and Development,

hinting that Local Content thrives where there is

robust R&D guideline to drive development of

home-grown technology. He added that “no nation

can really develop by being a consumer of other

countries technology and intellectual properties.”

He further revealed that NCDMB had focussed on

Research and Development in the oil and gas sector

with the launch of the R&D Roadmap anchored on

eight key pillars and 42 initiatives and launch of a

$50million Nigerian Content Research &

Development Fund to drive basic research,

commercialization of research breakthroughs,

establishment of Centers of Excellence, and to

sponsor University endowments.

He pointed out that Access to Market is also a critical

parameter for developing Local Content because all

policies, laws, capacities and R&D efforts would

become stifled if there was no outlet to receive

reward for growth and sustenance.

He explained that the Board had enabled Access to

Market by ensuring patronage of goods and services

that are developed from established local capacities

using the ‘right of first refusal’ principle. He listed

other tools such as the Nigerian Content Plan, the

Nigerian Content Compliance Certificate, and the

Nigerian Content Equipment Certification.

The NCDMB boss noted that the experience

garnered by the local businesses, and the capacities

developed over the years have positioned them for

the opportunities that would be realized from the

African Continental Free Trade Agreement.

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AFRICAN ENERGY STORIES

AEC Launches ‘The State of African

Energy 2022’ Annual Report

projects are concerned, there are strategic

consensus that have had to be reached. We have to

harness these resources because they are relevant

for our economies,” stated Akinkugbe-Filani.

Finally, the outlook emphasizes that holding

significant resources does not necessarily result in

accelerated socio-economic growth. Rather,

supportive regulation, market-driven policies, and

investment friendly fiscal terms will be critical if the

continent is to realize its energy sector and

economic objectives. With the world competing for

global capital like never before, the AEC’s outlook

emphasized the role that regional cooperation,

harmonized regulations, and attractive business

landscapes will play in 2022 and beyond.

Launched in a webinar led by Executive

Chairman NJ Ayuk, the report outlines

the forces shaping Africa’s energy

sector, providing valuable insight into

actionable solutions, investment trends and

opportunities, as well as key focus areas for

2022 and beyond.

The African Energy Chamber (AEC) has

officially launched its highly anticipated 2022

outlook for the African energy sector. Dubbed

‘The State of African Energy 2022,’ the report

provides a detailed understanding of the

continent’s sector, introducing key insights and

reliable and actionable information through

the exploration of the forces shaping Africa’s

energy industry. Representing the continent’s

premier investment report, the outlook

provides global and African stakeholders with

a detailed understanding of current and

emerging investment trends, offering up databased

solutions to the challenges faced by the

industry.

Launched during a webinar on Monday the

25th of October, the AEC’s outlook is

considered critical for energy stakeholders as

they try to navigate Africa’s energy sector in

the face of the global COVID-19 pandemic and

energy transition-influenced market shift.

Moderated by AEC Executive Chairman NJ

Ayuk, the webinar’s panellists included

Nosizwe Nokwe-Macamo, AEC Advisory Board

Member; Dean Foreman, Chief Economist,

American Petroleum Institute and Advisory

Board Member of the AEC; and Rolake

Akinkugbe-Filani, AEC Advisory Board

Member.

During the webinar, panellists provided insight

into what readers can expect as well as key

takeaways from the 2022 outlook. One of the

primary topics identified was the need for a

balanced, Africa-centric energy transition, one

that incorporates the needs of the African

continent within global climate mitigation

strategies. Specifically, the report offers up an

African perspective to global energy transition

dialogue,

emphasizing how the continent needs to prioritize

making energy poverty history whilst at the same

time ensuring carbon emissions are reduced.

“I want to pose a question as we reflect on the

report, which is a brilliant summary on the state: can

we achieve making energy poverty history by 2030,

whilst simultaneously achieving net zero at all costs

by 2030. Which agenda do we need to prioritize as

far as the African continent is concerned? We know

that over 600 million people have no access to

energy, and that we need to reduce emissions.

Energy poverty is a big priority for the African

continent and if we look at what is happening today

with the impact of the covid pandemic and recovery

growth, addressing poverty should be the topic of

Africa’s agenda,” stated Akinkigbe-Filani.

“Yes, 2020 and 2021 have really been exceptionally

difficult years for the industry from all aspects,

considering crude price, the decrease in capex, force

majeures, the sanctioning of projects and so on.

However, when I looked at the outlook, I am actually

left encouraged for 2022. In certain areas the

prognosis might not be as optimistic as last year, but

by and large, one can see some green shoots which

should be taken advantage of for the good of the

African continent. As the world is moving along the

transition, the pace at which Africa can move should

be taken into consideration. The green shoots are

there, let them be taken advantage of by different

countries,” stated Nokwe-Macamo.

“The need to alleviate energy poverty is one of the

things that absolutely must be addressed when you

consider the energy transition. These are important

considerations where it is easy to get lost in the

global energy transition dialogue,” stated Foreman.

Meanwhile, the webinar discussion provided

valuable insight regarding Africa’s natural gas sector,

with investment trends and regional opportunities

granted a primary focus. As the panellists suggested,

the outlook will be critical in assessing Africa’s

natural gas future, as the report emphasizes

challenges, opportunities, and innovative solutions

to accelerating growth.

“Most large-scale gas projects taking place in Africa

have cross broader dimensions. And as far as these

“How do you secure your financing? By thinking

creatively about deal structures, together with risk

mitigation, thinking about strategic partnerships,

and what it takes to make a sustainable and

attractive fiscal regime. The concept of

loadshedding that the report talks about is not an

emerging market problem. As we contemplate

shifting from fossil resources, the reliance of the grid

is in question. I would encourage governments to

become proactive and use the instruments at their

disposal to mitigate risk. Africa’s greatest resource is

people. With a combination of people, technology,

and banks, and perhaps cooperation, you can take

the lead in lowering your own cost and bringing

more development across the continent,” stated

Foreman.

“Successful energy transition will require the proper

stewardship of the countries natural resources. Now

we have challenges of upstream capex, and we

know there is competition for global capital. Asia we

will see has an appetite for African oil and gas. What

is mean is that on the continent we have to raise our

game. Governance and stewardship is key. We are

running out of time in ensuring we put up the proper

structures in terms of regulations and governance to

make more attractive for investors,” continued

Akinkugbe-Filani.

“You can get better economies of scale when you

regionalize projects and reassess the manner in

which deals are structured. You also have to have

harmonization of regulations so you will start having

cross border collaboration in terms of finance. If we

don’t do it, who will?” continued Nozwe-Macamo.

“Everyone should be very proud of this young and

talented team at the Chamber that has worked day

in and day out to make this happen especially

Verner, Motheo and team. I know it has not been

easy dealing with a tough taskmaster like me. I am

forever grateful” Stated NJ Ayuk, Executive

Chairman of the African Energy Chamber.

“As we prepare for COP26 and an interesting 2022,

with the onslaught that Africa stands to face from a

radical drive on climate change by those who have

emitted the most GHG and refuse to make energy

poverty is priority, Africans must stand strong and

protect their energy industry like a junkyard dog in

the face of a hurricane” Added Ayuk.

“We must be thankful to the energy sector that has

been the backbone of Africa’s recovery. We at the

Energy Chamber must continue to believe in our key

values of free markets, limited government, fiscal

discipline and personal responsibility and urge

governments to refrain from engaging in excessive

regulation or high taxes on the energy sector”

Concluded Ayuk

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KESEENA INTERVIEW

“Energy Pioneers Program Empowers African Youths, Supports

Women in Energy to Explore Different Career Paths in Oil,

Gas Sector” - Keseena Chengadu, AEC's Project Leader

Pioneers Internship program (EPP) today. The

EPP is a great step in mending the future of

Africa’s energy sector. I’d like to believe that

most of us have been interns before, at some

stage in our working careers, which gives us a

better understanding of how challenging it can

be to be in the workplace for the first time.

The EPP was created to give graduates the

opportunity to onboard skills learned in the

workforce and apply themselves in such a way

that gives them the freedom to explore

different career paths and specializations that

suit their interests. Keeping that in mind, my

latest accomplishment has certainly been

leading the EPP internship from conception to

where we are today! Of equal importance, the

Chamber’s pledge towards the Equal by 30

campaign sits very high on our list of

accomplishments. Having committed to

advance the participation of women in the

clean energy transition makes the role of the

Chamber as key signatories more significant

and just to create an enabling environment.

Keseena Chengadu, Project Lead, African Energy Chamber Energy Pioneers Program

TER: How would you rate gender equality at

African Energy Chamber?

Keseena is one of the Project Lead for the

African Energy Chamber Energy Pioneers

Program, and is part of the Investment

Committee at the Chamber.

With over a decade of hands-on

international investments experience,

Keseena is a powerhouse for Africa-bound

investment structuring.

She has advised a cross-section of

institutional, government entities and

private investors on business structuring

within Africa and is a household name in

energy sector investment.

Her deep understanding of the whole

gamut of African financial markets, her

familiarity with the overall corporate

needs of an organizations investing in

Africa with respect to corporate and tax

structuring places her at the pinnacle of

investment relevance.

Keseena sits on the board of a plethora of

local & international companies having a

presence in Africa and comes with over a

decade of experience in advising highworth

investors on the fiscal security of

their organizations.

An “out-of-the box" legal thinker with ability

to devise legal and financial solutions to

unique fact situations, Keseena has a proven

track record of providing accurate and

effective legal and general investment advice;

and of adding value to organisations through

the development of comprehensive attention

to help mitigate risk and enhance the

businesses of our clients. Interview By:

Ndubuisi Micheal Obineme

TER: Please could you share with us some of

the most interesting things about your career

j o u r n e y ; W h a t ’ s y o u r g r e a t e s t

accomplishment in the African energy sector?

Keseena: I would like to call my career and all

the events that have taken place, a blessing in

disguise. Most of my work, leading up to where I

am today, allowed me to work and assist various

energy projects across Africa – by ensuring local

content requirements and social content

compliance are met. In doing so, one of my

greatest accomplishments in the African energy

sector was working in Equatorial Guinea (EG)

and sending EG nationals to study in Canada.

One could say, my focus towards empowering

the youth began very early in my journey and

has stemmed from my role with the Energy

Keseena: The African Energy Chamber has

always promoted gender equality, with a no

prejudice or preference approach. However, we

encourage the employment of women as they

have faced oppression and inequalities in the

workplace for decades and still do today. Our

mandate has always been to create socioeconomic

change by empowering women and

encouraging them to engage in the African

energy industry rather than feel discouraged to

try.

You have vast experience in Africa's financial

markets and also among the Investment

Committee at African Energy Chamber. What

kind of business model should be developed to

increase Women's participation in Africa’s

energy, oil, and gas industry?

Keseena: A business model that promotes

gender equality in the workplace – to increase

women participation you must understand how

women have been previously disadvantaged in

the workplace and what this means is removing

the masculine ego in the workplace, employing

more women, promoting female employees,

and realizing the value of a female perspective.

Having support from our Executive Chairman,

NJ Ayuk, who encourages and promotes

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KESEENA INTERVIEW

women in the industry plays a significant

sentiment. Not only of appreciation but also of

admiration and value. If more influential

individuals and prominent organizations in

Africa’s energy industry share the same

sentiment, women's participation will increase

in the sector.

TER: Interestingly, Africa Energy Chamber has

launched The Energy Pioneers Program (EPP),

which serves as a youth empowerment

program dedicated to Africa. What specific

industry experience will be given to the

candidates interested to explore the

enormous opportunities in Africa's energy,

oil, and gas industry?

Keseena: The experience that interns receive

will depend on what companies and

organizations have to offer as well as where

they require the assistance of juniors and

support staff – the areas in which employees

have the time to educate and the train will also

be taken into consideration.

We hope to expose prospective candidates to

industry experience from administrative tasks

to soft skills and everything in between.

TER: EPP aims to connect African youths to

various career opportunities in the continent

right? How is African Energy Chamber

working closely with both local and

international companies operating in Africa to

make sure these candidates are given the

right skills?

Keseena: Correct, the negotiations that take

place between the AEC and our collaborating

companies are crucial – this is the main

communication phase where the AEC and the

companies will discuss the divisions in the

Keseena Chengadu, Project Lead, African

Energy Chamber Energy Pioneers Program

company in which interns will be placed and

also what skills will be imparted onto them.

The AEC works with companies that share likeminded

ideas and values and we know that our

collaborating companies will understand our

vision and aims with this project. The AEC will

be placing the interns with companies based on

their interests, goals, and aims career-wise to

enable them to gain valuable skills that will

kickstart their career paths.

TER: What are the key opportunities in the EPP

for Women in Energy?

Keseena: The main opportunity here is the

chance to get your foot in the door – that marks

the starting point that female candidates need

to truly be a career in the African energy

industry – it can also be the hardest position to

secure as it is your first one. This is what EPP

wants to help with – opening the door for

women in energy

TER: One of the objectives of the AEC Energy

Pioneer Program is to provide opportunities to

youths through continuous learning and

career development with reputable

companies. Are there initiatives in AEC to

provide support for STEM education in Africa?

Keseena: The AEC Energy Pioneers Program is

the AEC’s initiative that will provide support for

STEM education in Africa – however, our

purpose is to encourage capacity building and

training of the youth – it is education through a

practical method of gaining real practical

experience – it is applying the theory to the reallife

business operations of the energy sector.

From this, further initiatives that provide

support for STEM education in Africa from a

theoretical standpoint may be established – the

Energy Pioneers Program is the starting point

from a practical view point.

TER: In your perspective, how can oil and gas

companies in Africa nurture and empower

young female students in universities for

future career opportunities?

Keseena: Collaborating with the AEC on the

Energy Pioneers Program is one way to start.

In this way, oil and gas companies in Africa can

be hands-on in nurturing and empowering

young female students by providing them with

exposure and practical experience and giving

them a chance to apply their minds. The AEC

Energy Pioneers Program could be the

foundation for a candidate’s career to come.

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AOW POWER LIST 2021

SNEPCO's Elohor

Aiboni Selected

Among AOW Women

Power List 2021

Rita Hausken, Founder & CEO, Shestainability

& Chair, Lean In Energy, Europe & Sub-Saharan

Africa said: "At Lean in Energy, we strongly

believe that representation matters and if you

can see it, you can be it. I would like to send my

heartfelt congratulations to the founding

cohort of the joint AOW and Lean in Energy

2021 Power List: Pan-African Female Leaders

in Energy.

The Managing Director of Shell

Nigeria Exploration and Production

Company (SNEPCO), Elohor Aiboni

has been selected among the Africa Oil

Week (AOW) Women Power List 2021

which is also known as 50 of Africa’s most

inspirational female energy executives.

Carefully curated by Africa Oil Week and

Lean in Energy, the 2021 Power List

features 50 inspiring women - from

Morocco to Cape Town, from Manager to

Minister - all of whom are working and

motivating others across the African

energy sector. There has never been a

more important time to drive diversity and

inclusion awareness into the sector,

ensuring women continue to have a voice

and opinion in shaping this evolving

industry.

Aiboni was the Bonga Asset Manager

responsible for overseeing end-to-end

production delivery for Nigeria’s pioneer

deep-water Floating Production, Storage

and Offloading (FPSO) vessel, Bonga,

which had produced over 900 million

barrels of oil since the beginning of its

operations in 2005.

Elohor now joins over 300 women in senior

leadership positions in the Shell Group,

representing more than 31 percent of the

company’s executive positions. Her 19-

year career in Shell has seen her move

from a field engineer to several roles in

production operations;

Elohor Aiboni

project and asset management; operations

readiness and assurance.

She is passionate about developing talent and

leads a diverse team that strives to simplify

work processes and pursue continuous

improvements.

Her leadership of the Bonga team had seen the

asset receive numerous awards, including the

CEO HSSE Awards, Upstream Impact Award,

and the Asset of the Year Runner up in 2019, in

the Shell Group, among others.

“Over the past three years, we have worked

hard to provide a more equitable platform for

female industry leaders at Africa Oil Week –

from Ministers and Commissioners to SVPs and

managers from the private sector,” said

Catriona McDavid, Senior Content Manager for

AOW.

“I'm thrilled to be working with Lean in Energy

to host the 2021 edition of our evolving

initiative under the new name of AOW

Accelerates: Diversity & Inclusion, where we'll

unite stakeholders to stimulate progressive

dialogue on equity issues across the African

energy value chain.

Lean In Energy is a non-profit organisation and

an offshoot of Lean In Org, which has a very

simple mission built around the philosophy that

behind every woman is a circle of women, and

on the back of that mission, Lean In Org is

designed to help women achieve their

ambitions and create an equal world.

"As the world battles to balance and manage

the competing demands of the energy

trilemma –Security, Equity, Sustainability, it is

important that we think collectively to combat

climate change and drive DEI within our

organizations to enhance the diversity of

options and solutions on the table on the

journey to Net-zero.

"If we are to meaningfully respond to the

environmental crisis and social inequity

mounting across the world, we must urgently

learn to value sustainable and inclusive ways

of thinking, leading, and living.

"DEI is not a value statement or an initiative for

HR, but a reflection of an organization’s

leadership and culture. A culture that evolves to

wholeheartedly value empathy, collaboration,

and creativity. Developing this leadership and

culture requires deliberate action and active

steps to ensure and promote it, whilst walking

the talk.

"Leaders, your time is now, and as the saying

goes “We stand on the shoulders of those who

came before us” so let’s become greater allies

and sponsors to our peers and younger versions

of ourselves knowing what we know now".

Lean In Energy's mission is to empower women

and allies in energy or interested in energy, to

achieve their ambitions through peer-to-peer

mentoring, community, public awareness,

education and advocacy.

It goal is to serve anyone who identifies as a

woman in the energy industry, and while doing

that, LIEN also want to deliver on the United

Nation’s Sustainable Development Goals

(UNSDGs)

27

OIL AND GAS REPUBLIC I SPECIAL EDITION



INDUSTRY NEWS

Shell Unveils New Energy Business Line In Nigeria

Global energy company, Shell, has

announced a new business line in

Nigeria to expand natural gas

marketing and sales to meet the rapidly

growing energy needs of wholesale

customers and provide more and cleaner

energy solutions in the country.

Building on the success of Shell Nigeria

Gas, Shell Energy Nigeria, aims to deliver

competitive and reliable energy for power

generation and industrial users and to

develop gas distribution to serve people in

new regions.

“In line with the Federal Government’s

‘decade of gas’ initiative, Shell Energy

Nigeria will strive to deliver gas-based

energy solutions to a broad range of

businesses across the country to help drive

economic development and deliver

greater value from the country’s natural

resources,” said the General Manager of

Shell Energy Nigeria, Markus Hector.

Mr. Osagie Okunbor Managing Director, The Shell

Petroleum Development Company of Nigeria (SPDC)

and Country Chair of Shell Companies in Nigeria.

Shell Energy Nigeria’s gas solutions are designed to

partner with other sources of energy – including

renewables – to provide competitively priced and

flexible energy, while helping the country to

transition to a lower carbon energy system.

The new business will draw on the capabilities and

experience of Shell Energy, a leading global provider

of reliable, integrated and innovative energy

solutions from a portfolio of natural gas, power and

environmental products. It offers a comprehensive

selection of energy solutions available from a single

supplier and made possible by one of the industry’s

largest trading Evy operations. Maffini

Glacier makes

appointment in

Norway to grow

local business

Country Chair of Shell companies in Nigeria, Osagie

Okunbor, said, “Shell Energy Nigeria demonstrates

our ongoing commitment to powering progress by

providing more and cleaner energy solutions in the

country. It brings to Nigeria Shell’s decades of

marketing and trading experience, a wealth of

market knowledge and its ability to integrate

energy solutions to support economic

development in Nigeria.”

G

QatarEnergy and Shell Join Forces to Pursue Investments

in Hydrogen Solutions

Q

atarEnergy and Royal Dutch Shell have

agreed to join forces to pursue

investments in blue and green hydrogen

projects in the United Kingdom that might be

able to reduce carbon emissions in industrial

clusters and transport sectors, with a focus on

the London metropolitan area, the companies

said in a statement.

The partners will target integrated and scalable

opportunities in key sectors where hydrogen

could help decarbonize, especially around

industrial cluster development and also for the

transport sector, with a focus on the London

metropolitan area. The collaboration will exploit

both companies’ expertise in delivering large and

technically complex energy projects.

The agreement was signed on the sidelines of the

UK Global Investment Summit, hosted by HM The

Queen and the Prime Minister, and attended by

the world’s leading businesses and investors in

the UK.

Commenting on the agreement, His Excellency

Mr. Saad Sherida Al-Kaabi, the Minister of State

for Energy Affairs, the President and CEO of

QatarEnergy said, “This agreement does not only

reinforce the long lasting and strategic

partnership between QatarEnergy and Shell, but

also creates a viable path for innovation and

investments in low carbon fuels and technologies

across the UK’s energy sector, a key area of

investment for QatarEnergy. This agreement also

builds on QatarEnergy’s commitment to provide

reliable access to cleaner energy globally.”

L-R: Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of

QatarEnergy, and Ben Van Beurden, CEO of Royal Dutch Shell plc

Ben Van Beurden, CEO of Royal Dutch Shell plc,

also commented, “I am delighted to deepen an

already strong relationship with QatarEnergy.

Hydrogen will play an important role in helping

society reach net zero and momentum is growing.

QatarEnergy’s expertise, in collaboration with

Shell’s, will support the UK’s energy transition and

help propel this fast-growing sector.”

This is the first agreement on hydrogen between

QatarEnergy and Shell. It establishes an important

framework for collaboration and joint investment

to develop hydrogen solutions in the United

Kingdom.

29

OIL AND GAS REPUBLIC I SPECIAL EDITION


INDUSTRY NEWS

Republic of the Congo: TotalEnergies

Commences Planting Over 1 Million

Trees on Batéké Plateaux

Damen Shipyards delivers

custom electric Fire-

Fighting vessels to Flotte

Hamburg

In a ceremony held in the Port of Hamburg,

Damen handed over twin Fire-Fighting

vessels to Flotte Hamburg, a subsidiary of

the Hamburg Port Authority (HPA) tasked with

implementing low-emission shipping in the city.

With 315 kWh of battery capacity, the state-of-theart,

plug-in hybrid vessels are capable of extended,

fully-electric, emissions-free operations in and

around the Port of Hamburg. Prag will be operated

by Hamburg’s fire service while Dresden will

support the HPA, the fire service and other third

parties.

On the occasion of the National Tree

Planting Day in the Republic of the

Congo, TotalEnergies has launched

the "Batéké Carbon Sink" afforestation

operations. This large-scale project,

conducted in partnership with Forêt

Ressources Management, consists of

40,000 hectares of planted forest on the

Batéké Plateaux. Some 40 million trees will

be planted in total over 10 years and cared

for over 35 years.

During the past eight months, local tree

nurseries have already produced more

than one million plants, which will be

progressively planted from the next rainy

season on the 800 hectares of land that

have been prepared since last summer.

"We are pleased to officially launch the

Batéké Carbon Sink project, which is a

concrete example of TotalEnergies'

commitment to the development of

natural carbon sinks, along with others. We

warmly thank the Republic of the Congo,

whose support for the operation is

essential, for its commitment to the

preservation of forests and the promotion

of afforestation activities," said Nicolas

Terraz, President Exploration & Production

at TotalEnergies. "TotalEnergies' climate

ambition is based on a panel of concrete

actions, aiming first to prevent and then to

reduce our greenhouse gas emissions, and

finally to offset residual emissions. The

planting of a new forest on the Batéké

Plateaux is a concrete illustration of this

approach, complementing all the other

priority measures for preventing and reducing

TotalEnergies’ emissions.”

The 40,000 hectares planted will create a

carbon sink that will sequester an average of

500,000 tons of CO2 per year over twenty years,

equivalent to the annual CO2 emissions of an

average European city of 70,000 inhabitants.

The carbon credits will be certified in

accordance with the Verified Carbon Standard

(VCS).

The project, financed by TotalEnergies, includes

agroforestry practices developed with the local

communities for agricultural production and

sustainable wood energy. It will create

employment opportunities, with a positive

impact on several thousand people. In addition,

a local development fund will support health,

nutritional and educational initiatives to benefit

neighboring villages.

As part of its climate ambition, and in addition

to its priority actions to avoid and reduce

emissions, TotalEnergies works with many local

partners around the world to develop and

conserve natural carbon sinks, while helping to

preserve their biodiversity. These operations

follow a long-term approach of sustainable and

integrated economic development of areas

with local communities. TotalEnergies plans to

spend $100 million per year to build a portfolio

of projects capable of generating at least 5

million metric tons of CO2e of carbon credits

per year by 2030. These carbon credits will be

used after 2030 to offset the Company's scope 1

& 2 emissions.

The vessels, classed as Damen Fire-Fighting Vessels

3508, are completely new designs fitted out to the

latest standards. 35.5 metres in length and with a

maximum speed of 12 knots, they are equipped to

not just fight fires in the port and within the city

itself. Their compact size also enables them to

undertake other activities including water supply,

rescue and recovery, technical assistance and

environmental protection. And with their ability to

lower their wheelhouses and a draught of just 1.5

metres they can also undertake bridge inspections

and maintenance within the city, as well as serve

locations that larger vessels would be unable to

reach.

Additional versatility comes from the ability to

position mission containers on deck for additional

fire-fighting equipment and day accommodation for

up to 16 firefighters. The installed Fi-Fi systems

include remote operation capability, foam pump

and control systems, a pre-wetting system, a water

spray system around the vessels and internal firefighting

capability using a Stat-X aerosol fire

suppression system. The climate-controlled

wheelhouse and dayroom accommodate up to six

crew.

The hulls for the vessels were fabricated at Damen

Shipyards Kozle in Poland and then transported to

Damen Shipyards Hardinxveld in the Netherlands

for completion.

The handover and christening ceremony was hosted

by the Mayor of Hamburg, Dr. Peter Tschentscher,

and HPA managing director Jens Meier. The Prag was

christened by Hana Třeštíková, City Councillor for

Culture of the City of Prague, and the Dresden was

christened by Annekatrin Klepsch, Dresden's

Deputy Mayor for Culture & Tourism. The vessels are

now undergoing final commissioning and training of

the crews and fire-fighters.

“It was good to be working once again with HPA,

having built them a floating pump station in 2016,”

said Jeroen van Woerkum, sales manager at Damen

Shipyards Hardinxveld. “Designed by Robert Allan,

these were already highly complex vessels, and the

hybrid propulsion introduced yet another level of

complexity. However the cooperation with Flotte

Hamburg was very close and when COVID struck, all

the parties worked together to overcome the issues

that arose.”

30

OIL AND GAS REPUBLIC I SPECIAL EDITION


Keppel, Incitec, Temasek Join Forces to Investigate Green

Ammonia Supply from Australia’s Hydrogen Hubs

Keppel Infrastructure Holdings Pte Ltd

(Keppel Infrastructure), Incitec Pivot

Limited (Incitec Pivot) and Temasek

have signed a memorandum of understanding

(MOU) to investigate the feasibility of

producing green ammonia in Queensland and

New South Wales (NSW), Australia for export

to meet the rapidly growing market demand

for carbon-free energy globally, including

Singapore. The green ammonia may be used as

a direct feedstock in green energy generation,

or as a hydrogen carrier to provide green

hydrogen solutions.

T h e M O U w i l l b r i n g t o g e t h e r t h e

complementary strengths and capabilities of

the three international partners:

Keppel Infrastructure has a strong track record

in developing and operating efficient and

reliable energ y a n d env iro n m enta l

infrastructure, such as combined cycle power

plants and waste-to-energy facilities, as well as

in electricity retailing, and is looking to deepen

its involvement in renewables and end-to-end

low-carbon solutions including green

electricity importation, hydrogen and carbon

capture, utilisation, and storage.

Incitec Pivot, an ASX 100 company, is

Australia’s largest supplier of fertiliser on

Australia’s east coast and a global leader in the

resources and agricultural sectors, with assets

capable of blue/green conversion of ammonia.

Incitec Pivot will contribute its world class

expertise in ammonia production, along with

its strategic land at Kooragang Island in the

Port of Newcastle, NSW.

Temasek is a global investment company with a

net portfolio of S$381 billion as at 31 March

2021. Temasek is actively supporting a range of

decarbonisation opportunities, including feasibility

of various renewable energy options. Temasek will

fund part of the feasibility study.

The three parties will work closely with the

Queensland and NSW Governments to explore the

feasibility of essential infrastructure, licences and

approvals to facilitate the production and export of

green ammonia.

In response to growing challenges brought about by

climate change, there is an urgency to develop

alternative sources of low carbon fuel options to

decarbonise the power, industrial, maritime

transportation and the aviation sectors.

Production of green ammonia can produce carbonfree

electricity. It could be a direct fuel, or to

reprocessed to produce green hydrogen for use as a

fuel feedstock, for example to power gas turbines.

In addition, the green ammonia may be used to

replace bunker fuels to decarbonise the global

maritime industry.

Ms Cindy Lim, CEO of Keppel Infrastructure, said,

“Keppel is pleased to partner with Incitec Pivot and

Temasek to explore and identify feasible pathways

to develop secure, scalable and cost competitive

green ammonia supply chains from production,

transportation and storage to distribution and enduses

in the global and regional markets. Availing

green ammonia, as a potential source of clean fuel

to support the demand for sustainable energy, can

meaningfully contribute to deep decarbonisation in

power and hard-to-abate sectors.

“As part of Keppel Group, which offers solutions for

sustainable urbanisation, Keppel Infrastructure

possesses domain knowledge and operating

expertise in the different aspects of the sustainable

energy landscape and is uniquely placed to lead in

this collaboration whilst adopting a whole-ecosystem

approach. This will also catalyse Keppel Infrastructure’s

development efforts in zero-emission solutions and lowcarbon

energy services in line with Keppel’s Vision

2030.”

The MOU also supports Australia's National Hydrogen

Strategy, which has identified seven clean hydrogen

hubs across Australia, which includes Queensland and

NSW, where Incitec Evy Maffini Pivot has existing ammonia asset

and brownfield sites and is well positioned to benefit

from Queensland and NSW Government’s recent

announcements supporting the establishment of

Glacier makes

appointment in

Norway to grow

local business

hydrogen export economy.

Incitec Pivot Managing Director & CEO, Ms Jeanne Johns,

said, “We are delighted to partner with two of

Singapore’s leading companies to investigate new and

exciting opportunities to create Australia’s green

ammonia industry.

INDUSTRY NEWS

“Both our Kooragang Island site and potential greenfield

site in Gladstone have the advantage of being

nominated by the Australian Government as locations

for hydrogen hub development.

“We are looking forward to combining our leading

ammonia manufacturing and handling expertise here in

Australia with Keppel’s large-scale energy and

infrastructure development capabilities, and Temasek’s

experience in sustainable solutions. This is another step

in our commitment to support the development of an

Australian low carbon energy industry of the future.”

Mr Frederick Teo, Managing Director of Sustainable

Solutions at Temasek, stresses the need to seek

alternative clean energy to drive sustainable

development. “Adding a carbon-free fuel to the market

will enable more companies to grow in a sustainable

manner and potentially open new business

opportunities as well.”

Saipem and TechnipFMC Announce SURF Commercial Agreement to

Unlock New Opportunities

S

aipem and TechnipFMC have entered

into a global commercial agreement

that will allow them to identify projects

worldwide that could be jointly executed for

the benefit of clients.

The commercial agreement will pursue specific

Subsea Umbilicals, Risers and Flowlines (SURF)

projects where the combination of the

companies’ complementary world-class

assets, technologies, products and

competencies improves project economics

and de-risks the overall project development

for the benefit of all stakeholders.

The collaboration will have access to a broad

range of SURF products and installation

methods, providing greater operational

flexibility and optimized execution strategies

under EPCI (Engineering, Procurement,

Construction and Installation) and iEPCI

(integrated Engineering, Procurement,

Construction and Installation) project execution

models.

Stefano Porcari, Chief Operating Officer of the

E&C Offshore Division, at Saipem commented:

“The SURF commercial agreement with

TechnipFMC represents an important

milestone to offer a more competitive and

reliable value proposition to our clients. The

a g r e e m e n t w i l l p r o v i d e a p o o l o f

complementary enabling vessels and facilities

and a consolidated Reel laying and J-laying

technology base. Together we will be able to

provide a full service for those challenging .

developments requiring a ample range of

technologies and capabilities. We are very

excited with this commercial agreement and

with the opportunities that will be released to

the benefit of our stakeholders”

Jonathan Landes, President, Subsea, at

TechnipFMC commented: “We are very pleased

to partner with Saipem for the creation of this

alliance. Working together with Saipem, we will

be well-positioned to efficiently utilize

complementary assets and capabilities to

create differentiated technical solutions that

further optimize project execution.

Importantly, the strengthened offering will also

expand the potential market for iEPCI

o p p o r t u n i t i e s w h e n combined w i t h

TechnipFMC`s innovative Subsea 2.0

production systems”.

31

OIL AND GAS REPUBLIC I SPECIAL EDITION


INDUSTRY NEWS

Maersk Drilling Awarded Contract Extension To Drill

World Record Well In Angola

TotalEnergies E&P Angola has exercised

an option for the 7th generation drillship

Maersk Voyager to drill the ultradeepwater

Ondjaba-1 exploration well in

Angola’s Block 48. The contract extension has an

estimated duration of 54 days, which means

that Maersk Voyager is now contracted until

February 2022. The work on Ondjaba-1

commenced in October 2021, after which the

rig is scheduled to move to Namibia to drill the

Venus well. One one-well option remains on the

contract.

The Ondjaba-1 well will be drilled at a new world

record water depth of 3,628 m. The current

world record is 3,400 m, set by Maersk

Voyager’s sister drillship Maersk Venturer when

it drilled the Raya-1 well for TotalEnergies

offshore Uruguay in 2016.

“We’re thrilled to be able to confirm that we

indeed will be drilling for a new world record.

Ondjaba-1 was part of Maersk Voyager’s

original contract in Angola, but the rig’s drilling

programme has undergone several changes due

to the unprecedented circumstances the world

has faced since early 2020. With this contract

option called, we’re now looking forward to

proving that Maersk Drilling and the highly

capable Voyager crew can once again

break existing boundaries in close

collaboration with TotalEnergies,” says

COO Morten Kelstrup of Maersk Drilling.

Maersk Voyager is a high-spec ultradeepwater

drillship which was delivered

in 2014. It is currently operating offshore

Angola for TotalEnergies.

With more than 45 years of experience

operating in the most challenging offshore

environments, Maersk Drilling (CSE:DRLCO)

provides responsible drilling services to

energy companies worldwide. Maersk

Drilling owns and operates a fleet of 20

offshore drilling rigs and specialises in harsh

environment and deepwater operations.

Headquartered in Denmark, Maersk Drilling

employs around 2,400 people.

FG to Support Investors with N250 billion for Autogas Conversion

T

he Federal Government has said that a

sum of N250 billion will be made

available for willing investors in autogas

assembly plants in the country as part of efforts

to ensure that the autogas conversion of

vehicles yielded the desired results,

The Minister of State for Petroleum Resources,

Mr Timipre Sylva, disclosed this in Abuja, at an

Autogas Technicians Training and Certification

Programme. The programme was organised by

the technicians, in collaboration with the

Federal Ministry of Petroleum Resources,

National Gas Expansion Programme, the

Nigerian Institute of Mechanical Engineers,

Automotive and Locomotive Engineering

Institute, amongst others. The minister, who

was represented by the Senior Technical

Adviser on Referendum, Mr Umar Gwandu,

said that the money was already in the coffers

of the Central Bank of Nigeria (CBN) and those

interested in opening conversion centres could

access it.

Sylva explained that the decision to make the

money available was as a result of the huge

amount spent by government on fuel subsidy,

adding that it was in line with President

Muhammadu Buhari’s commitment to adopt

gas as an alternative fuel for the country.

“The amount of money government is spending

on fuel subsidy is high so the President

Muhammadu Buhari-led government, in a bid

to ease the pains of Nigerians, decided to look

inward and evolved ways to reduce the cost.

“If we focus on moving from fossil fuel to

Liquefied Petroleum Gas (LPG) and Compressed

Natural Gas (CNG), it will save us a lot of money

because the benefits are enormous.

“Apart from the fact that autogas is cheaper, we

are also concerned about making the

conversion of cars affordable so that Nigerians

can indeed reap the advantage of this new

policy,” the minister said.

He added that the conversion underscored the

seriousness of the new government initiative

and urged Nigerians to embrace gas-powered

vehicles as they were cheaper and more

environmentally friendly.

While pledging the support of the ministry to

the project, Sylva cautioned autogas

technicians to ensure that converted vehicles

functioned properly and were well-maintained.

Earlier, Mr Robinson Elijah, Chairman, Autogas

Technology Education and Research Advisory

Board, urged Nigerians and other stakeholders

to take advantage of the project.

Elijah reiterated the commitment of the board

to maximise the investment, while relying on

the experience garnered over the years to

ensure that the project was successful.

Mrs Joyce Daser-Adams, Chief Executive Officer

of Auto Lady Engineering Technology, said that

one of the major challenges in converting a

vehicle from fossil fuel to LPG or CNG was the

non- availability of parts.

According to her, the parts are not in Nigeria, we

need to import them that is why we are working

with foreign partners.

Daser-Adams also said the cost of converting a

vehicle was about N200,000 adding that it was

very safe and the risk of an explosion in the

event of a collision was very minimal.

32 23

OIL OIL AND AND GAS GAS REPUBLIC I I SPECIAL EDITION



GECF SPECIAL FEATURES

COP26: “Energy for All” Achievable

with Natural Gas, Says GECF Sec-Gen

Representing the Russian Federation, His

Excellency Mr. Alexey Overchuk, Deputy

Chairman of the Government of the Russian

Federation cited the energy landscape of the

world’s largest country by landmass as an

example for other countries.

Yury Sentyurin, Secretary-General of Gas Exporting Countries Forum (GECF)

HE Sentyurin delivering the GECF Statement at COP26

The Gas Exporting Countries Forum

(GECF), the global platform of the leading

gas producing nations, has urged the

international community gathered in

Glasgow, UK, for UNFCCC COP26 to look for

energy options that achieve the right

balance between the post-COVID-19

economic and social requirements and

climate actions, particularly for the most

vulnerable regions of the world.

HE Yury Sentyurin, Secretary General of

the GECF who led the Forum’s delegation,

said: “Given technology's pivotal role in

transforming the energy industry, we

recommend that the COP26 negotiations

are underpinned by technology transfer to

decarbonise the energy sector, including

the decarbonisation technologies of the

gas industry.”

Gas is the cleanest of all fossil fuels, and its

abundance, flexibility, and affordability

makes it an ideal fuel of choice, particularly

for emerging and developing economies,

many of them in highly populated regions

of Asia and Africa. Latest GECF figures

estimate natural gas to become the most

used source of energy in the world by

2050, upping its share from 23% today to

27%.

“Ensuring access to competitive and

reliable energy sources is of paramount

importance for a sustained economic

recovery,” noted HE Sentyurin, whose

organisation is an Observer to the United

Nations Framework Convention on Climate

Change (UNFCCC), the organiser of the

Conference of the Parties (COP).

The official also outlined the steps being taken

by the GECF Member Countries, from

technology and innovation to research and

development, in order to cement the role of

natural gas as a solution for a balanced energy

transition.

“Our Environmental Knowledge and Solutions

framework has been initiated as a collaborative

platform with designed measures to build

capabilities and exchange expertise, specifically

regarding greenhouse gas (GHG) emissions

mitigation practices.”

“The GECF Member Countries have placed

climate action at the forefront of their

priorities,” he added.

The GECF Member Countries are Algeria,

Bolivia, Egypt, Equatorial Guinea, Iran, Libya,

Nigeria, Qatar, Russia, Trinidad and Tobago, and

Venezuela, whilst Angola, Azerbaijan, Iraq,

Malaysia, Norway, Peru, and the United Arab

Emirates are Observer Members. Together, the

group represents 70% of the proven gas

reserves, 44% of its marketed production, 52%

of pipeline, and 51% of LNG exports across the

globe.

“86 percent of our energy generation is based

on solar, wind, natural gas, nuclear and

hydroelectric power. Russia is already an

example of low GHG emissions,” said HE

Overchuk.

The Russian official also spoke in favour of

ending discrimination against other countries,

so that every state has access to clean

technologies.

Responding to this theme of discrimination, His

Excellency Ali Salajegheh, Vice President and

Head of the Department of Environment of the

Islamic Republic of Iran urged for lifting of

coercive measures on the western Asian

country.

“These coercive measures and sanctions, in

explicit contravention to global sustainable

development agenda and relevant multilateral

agreements, have consequences beyond our

national context, hence, contributing to global

warming.”

Meanwhile, Qatar, another GECF Member and

host of the Headquarters of the GECF, affirmed

its National Environment and Climate Change

Strategy at COP26.

His Excellency Sheikh Faleh bin Nasser Al-Thani,

Minister of Environment and Climate Change of

the State of Qatar told delegates that Qatar's

strategy for environment and climate change is

based on five main pillars: reducing GHG

emissions and air pollutants, enhancing the

abundance of biodiversity, establishing

sustainable water management, improving

waste management, building a circular

economy, and enhancing land use productivity.

Qatar has also promised the first carbonneutral

FIFA World Cup next year.

The GECF has been an active participant of the

Conference of Parties platform, joining COP24,

COP25, and COP26. This year, the COP aimed to

commit countries to net-zero carbon emissions

by 2050.

34

OIL AND GAS REPUBLIC I SPECIAL EDITION


Gas Expor ng

Countries Forum

Member Countries

Observers


“GECF Coopera on with African countries to use gas as the core

source of energy... with the aim to overcome energy poverty, enhance

development and to mi gate Co2 emissions,” - Declara on of Malobo at

5th GECF Summit of Heads of State and Government in

Equatorial Guinea (November 2019).

“Inves ng in cleaner energy such as natural gas would increase

na onal GDPs, jobs and create prosperity in Africa” - HE

Yury Sentyurin, Secretary General, GECF at Nigeria Decade of

Gas Conference (March 2021)

“GECF is really a beacon of hope and light.” - HE Nair Bedoulle,

Assistant Director-General for Natural Science, UNESCO

Signing of MoU between UNESCO and GECF (December 2020).

“Thank you for bringing the natural gas agenda to Africa” -

Mr N.J. Ajuk, Execu ve Chairman, African Energy Chamber at

3rd GECF Annual Workshop on Promo on of Natural Gas

Demand (July 2020).


UKRAINE ENERGY MINISTER INTERVIEW

“Ukraine has enormous potential in the gas sector, and the

UGIC will be a great opportunity to communicate our plans

to stakeholders" - German Galushchenko

At the sideline of The Ukraine Gas Investment Congress that took place from 20-22

October 2021 in Kyiv. Read the exclusive interview with German Galushchenko,

Ukraine's Minister of Energy, to find out more about opportuni es to partner in

the country’s upcoming gas projects.

provide the necessary guarantees for our

investors.

German Galushchenko possesses

extensive managerial experience having

worked in number public authorities of

Ukraine. His track record includes the

Ministry of Foreign Affairs, the Ministry of

Justice, the Presidential Administration of

Ukraine, and the country's leading power

company, NNEGC Energoatom.

In 2014, German Galushchenko, who

holds a degree in law, took an active part

in the process of protecting Ukraine’s

state interests and interests of Ukrainian

companies in international courts. He

worked on bringing Russia to justice for

the expropriation of property of large

Ukrainian public and private companies in

the Autonomous Republic of Crimea, and

on cases heard at the UN International

Court of Justice for violating two

conventions: on financing of terrorism

(Donbass) and racial discrimination

(Crimea).

He was involved in several international

legal proceedings related to energy, in

particular, oil and gas production,

production sharing agreements,

expropriation of energy assets and

others.

German Galushchenko is a member of the

American Society of International Law.

Arbitrator from Ukraine of the

International Centre for Settlement of

Investment Disputes in Washington, D.C. He

also served as an ICC arbitrator.

He has the diplomatic rank of Envoy

Extraordinary and Plenipotentiary; Honoured

Lawyer of Ukraine.

You were appointed Minister of Energy in April

this year, what have been your immediate

main priorities over the last 4 months?

Since taking office, the top priority has been to

strengthen Ukraine's energy security, which

largely affects the energy security of the entire

European continent. In this context, integration

with European energy markets and

synchronisation of our energy system with the

European ENTSO-E power association remain

of the utmost importance.

What is your outlook for Ukraine’s upstream

gas activities in the medium-term and where

do you see immediate opportunity for

international companies looking to invest in

Ukraine?

We have an ongoing dialogue with numerous

companies across the oil and gas value chain

with particular focus and emphasis on

production and supply of oil and gas, and they

are showing great interest in Ukraine. And the

Ministry of Energy, in turn, will do what's in our

power to simplify the operating conditions and

Where do you see opportunity for

international companies looking for potential

partnerships and investment openings within

Ukraine’s hydrogen energy space?

We are currently working on Ukraine's

Hydrogen Strategy with the help of experts

engaged by the World Bank and other

international partners. Europe sees Ukraine as a

priority partner in terms of developing the

emerging hydrogen energy, because we have

significant potential in this area.

This October the first Ukraine Gas Investment

Congress took place in Kyiv. Hosted under the

patronage of the Ministry of Energy, can you

tell us in your opinion, how important is the

Congress going to be in terms of showcasing to

the world Ukraine’s plans for transforming its

energy future?

The first Ukrainian Gas Investment Congress is

going to be a high-level event that will bring

together world leaders in the industry. I am

confident that this will help deepen

cooperation and launch new areas of

opportunity with our international partners.

Ukraine has enormous potential in the gas

sector, and the Congress will be a great

opportunity to communicate our plans and

prospects to stakeholders and the public at

large.

37

OIL AND GAS REPUBLIC I SPECIAL EDITION




NIGERIA OIL AND GAS

Seplat Drives Nigeria's Energy Transition With

Investment Focus on Gas, Renewables

S

eplat is leading Nigeria’s energy

transition with accessible,

affordable, and reliable energy, focusing

on major gas and renewable energy

projects that drive social and economic

prosperity.

In response to the global energy

transition, Seplat has developed a

strategy and taking significant steps to

lead the energy transition drive amongst

its peers locally by making deliberate

strategic choices in the development of

Nigeria’s gas resources to accelerate the

replacement of diesel and biomass with

reliable, low-cost energy to facilitate

social and economic growth.

Speaking in an exclusive interview with

Energy Voice, Seplat CEO Roger Brown

disclosed that the company has

developed a practical model from its

inception and the results have been very

successful, both to Seplat and its host

communities.

Brown noted that the Nigerian

government sees gas as the energy

transition fuel and Seplat is working

towards expanding its gas capability and

supply footprint in the domestic market.

He added, "Seplat is therefore taking

significant strides to lead the energy

transition drive amongst its peers locally

by making deliberate strategic choices in

the development of Nigeria’s gas

resources to accelerate the replacement

of diesel and biomass with reliable, low-

cost energy to facilitate social and economic

growth.

"Through our midstream business, Seplat is

currently evaluating opportunities for 3rd

party gas development across several fields

and capitalizing on this infrastructure

capacity growth (currently c.500MMscfd and

reaching ca.800MMscfd by 2023).

"This involves expansion and development of

gas processing capacity to provide an outlet

for stranded gas in proximal acreages.

"We also plan to integrate along the gas value

chain into LPG/CNG distribution for industries

and NGVs (natural gas vehicles).

"These new gas markets will have the

potential to displace extensive amounts of

biomass used for cooking by most households

and supply gas to power Industrial parks,

large manufacturing plants, universities,

hospitals, etc.

"However, we plan to end routine flaring by

2024 through flares-out projects together

with a focus on maximizing the gas-to-grid for

productive use.

"We will therefore continue to further

evaluate and identify the potential value of

establishing a position in the carbon credits

market."

Going forward, Brown also stated that Seplat

is committed to becoming a major player in

the renewable energy space, harnessing the

abundant renewable energy resources

available across Nigeria.

By Tobi Owoyimika

He continued, "The sun is Nigeria’s most

abundant natural resource and the

advancement in technology is improving its

cost competitiveness and efficiency in power

generation.

"It is noteworthy that Nigeria’s off-grid solar

has an expected market growth capacity

CAGR of 26% (2020-2040) and is projected to

be worth nearly $17 billion by 2040.

"Seplat’s focus is to create an off-grid solar

power distribution business to supply the

commercial and industrial (C&I) sector and

micro-grid which offers solid growth potential

with long-term revenue generation visibility.

"Furthermore, we are currently in the process

of decarbonizing our upstream operations

and investigating the implementation of

alternative renewable sources to displace

diesel-powered generators to ensure optimal

power utilization and efficient energy usage.

"As regards Hydrogen, Seplat currently

considers this as a complex and costly option,

and we are not presently considering it as a

viable source of clean energy for Nigeria.

"Seplat’s strategy currently focuses on

Nigeria, and we are not pursuing

opportunities in other countries".

40

OIL AND GAS REPUBLIC I SPECIAL EDITION


NIGERIA OIL AND GAS

Shell Awarded $800 Million Worth of Contracts to Nigerian

Companies

Shell Companies in Nigeria ((SCIN)

has said that it awarded 100 per

cent of its local contracts worth

$800 million to Nigerian companies in

2020.

Shell Country Chairman in Nigeria Mr.

Osagie Okunbor, said this recently in Lagos

a t t h e A s s o c i a t i o n o f E n e r g y

Correspondents of Nigeria (NAEC) 2021

Strategic International Conference.

According to him loans were also given to

Nigerian vendors to help them improve

their tendering opportunities.

“In 2020, 100 per cent of Shell contracts,

worth $800 million, were awarded to

Nigerian companies,” Mr Okunbor said

during the NAEC conference which has

mythe theme, ‘Petroleum Industry Act:

Energy Transition and the Future of

Nigeria’s Oil and Gas’.

“SCiN has also provided access to nearly

$1.5 billion in loans to 764 Nigerian

vendors under the Shell Contractor

Support Fund since 2012,” he said.

Okunbor who was represented by Ed

Ubong, Managing Director, Shell Nigeria

Gas, said there was a need to build capacity

for local industries to participate in the

supply chain, said “we need to reduce the

industry’s reliance on imports and create

new markets in-country.

“At Shell, we recognise that local content is

key to surviving a post-COVID 19 pandemic

world and Shell will continue to invest in

this space,” he said.

He said Shell, through joint venture

partnership with the government and

communities, was investing in a gas

portfolio that would increase supply for

Nigerian and international customers via

an expanding network of plants, pipelines

and export terminals.

“We remain committed to building

capacity and competence in the country to

enable more Nigerians to participate

directly and indirectly in the gas value

chain and pump more money into the local

economy by supporting Nigerian

companies,” Mr Okunbor said.

He said harnessing Nigeria’s vast gas

resources was key to developing the

country.

“Natural gas gives us the ability to lift

Mr. Osagie Okunbor Managing Director, The Shell

Petroleum Development Company of Nigeria (SPDC)

and Country Chair of Shell Companies in Nigeria.

millions of people out of energy poverty, giving

them the power to improve their physical

health, wellbeing and standard of living. It also

gives us a pathway to economic growth and

development.

“This is not only through direct exploration and

trading of gas resources but by providing

reliable power supply for the manufacturing

and industrial sectors which are the major

growth engines for developing economies,” Mr

Okunbor said.

Shell has a history of over 50 years in Nigeria

and the largest footprint of all the international

oil and gas companies operating in the country.

Shell has been active in Nigeria since 1937.

Shell companies and investments have played a

pioneering role in onshore, shallow and deep

water oil exploration and production. Shell has

also been at the forefront of gas development,

producing and delivering gas to domestic

consumers and export markets for over 40

years.

The Shell Petroleum Development Company of

Nigeria Limited (SPDC) is the largest Shell

company in Nigeria and produced the country’s

first commercial oil exports in 1958. SPDC is the

operator of a joint venture (the SPDC JV)

between the government-owned Nigerian

National Petroleum Corporation – NNPC (55%

share), SPDC (30%), Total E&P Nigeria Ltd (10%)

and the ENI subsidiary Agip Oil Company

Limited (5%). It is focused on onshore and

shallow water oil and gas production in the

Niger Delta.

Shell Nigeria Exploration and Production

Company (SNEPCO) operates the Bonga field,

Nigeria’s first deepwater oil discovery. The

Bonga facility has the capacity to produce more

than 200,000 barrels per day of oil and 150 MM

standard cubic feet of gas per day.

Shell Nigeria Gas (SNG) is the only international

oil and gas company to set up a gas distribution

company in Nigeria to supply industry

customers. Nigeria LNG (NLNG) is a joint

venture incorporated in 1989 to produce LNG

and natural gas liquids for export. It was

Nigeria’s first LNG project. Shell holds a 25.6%

share, together with NNPC (49%), Total (15%)

and ENI (10.4%).

41

OIL AND GAS REPUBLIC I SPECIAL EDITION


NIGERIA OIL AND GAS

NLNG Increasing Volume of LPG into Nigeria Domestic

Market to Push Down Price

Speaking at the 2021 Association of

Energy Correspondent of Nigeria (also

known as NAEC) Strategic International

Annual Conference held in Lagos recently, Dr.

Philip Mshelbila, Managing Director and Chief

Executive Officer of the Nigeria Natural

Liquefied Gas (NLNG), made it known that the

gas company has prioritised domestic supplies

of cooking gas otherwise known as Liquefied

Petroleum Gas (LPG) by reducing its exports of

the commodity.

This is part of the efforts of the company to

meet the needs of the local market.

Mshelbila stated further that the company has

increased its committed volume to the market

by consistently reducing its export LPG volumes

in satisfaction of domestic demand, increasing

domestic provision from 50,000MT in 2007 to

450,000MT from 2021.

The NLNG MD, was represented at the NAEC

conference by Dr. Sophia Horsfall, Manager,

Corporate Communications and Public Affairs,

said: “NLNG provides a dedicated vessel for this

purpose, LPG Vessel, Alfred Temile. NLNG has

taken steps to diversify the supply base of the

product by expanding its delivery point from

the Lagos Terminals to include a Port Harcourt

Terminal to ensure products are not

concentrated in one region by infusing

flexibility in supply base.”

Mshelbila added that the benefits of gas to the

country would increase on the back of the Train

7 project, which would expand NLNG’s capacity

by 35 percent from 22 million metric tonnes per

annum to 30MTPA.

Train 7 project, he said would add immense

value to the country by stimulating inflow of

about $10bn foreign direct investment to

Nigeria as part of the project scope.

“It would create more than12,000 direct jobs

and additional 40,000 indirect construction

jobs, adding, “This will be a massive boost to

Federal Government’s commitment to create

jobs and move the poverty index positively. The

project would further the development of

Nigerian local capacity and businesses through

the 100 percent in-country execution of

construction works, fabrications, and major

procurements.”

The NLNG boss said it would ultimately

increase the company’s volume supply to the

global market and keep the country on the top

suppliers’ chart as world LNG demand grows.

Dr. Philip Mshelbila, Managing Director and

Chief Executive Officer of the Nigeria Natural

Liquefied Gas (NLNG)

“This will mean more revenue, more

dividends, and more taxes to the Federal

Government of Nigeria. I believe that Train 7

will be an inspiration and catalyst for Trains 8,

9, 10, and even to Train 15 in line with the

recent declaration of ‘Decade of Gas’ by Mr.

President.”

He noted that the company announced in June

2021 the signing of sales and purchase

agreements with three Nigerian companies as

counterparts for the domestic supply of LNG.

This is a first for the company, as Total volume

for these agreements is 1.1 million tonnes per

annum. This is enough energy to power over

three million homes. Delivery infrastructure

are to be provided by the domestic

counterparts.

Nigeria LNG Limited (NLNG) is one of the

world’s top 10 suppliers of LNG. NLNG was

established to harness Nigeria's vast natural

gas resources and produce Liquefied Natural

Gas (LNG) and Natural Gas Liquids (NGLs) for

export.

The establishment of NLNG as a company is

backed by the Nigeria LNG Fiscal Incentives,

Guaranties and Assurances Act. Cap N87, Laws

of Federation of Nigeria 2004 which, amongst

other things, provides for the guarantees and

assurances by the Federal Government of

Nigeria to the Company and its Shareholders.

NLNG began its intervention in the supply of

Liquefied Petroleum Gas (LPG), otherwise

known as cooking gas, to the domestic

market in 2007 under the NLNG DLPG

Scheme. The supply has stimulated growth in

the industry, guaranteeing LPG supply,

availability and affordability. This has also

inspired the development of different parts

of the DLPG value chain.

In 2019, NLNG shareholders took the Final

Investment Decision (FID) on its 7th train and

awarded the Engineering, Procurement and

Construction (EPC) contracts for the plant

expansion in 2020. The long-awaited

expansion will increase production capacity

by 35 per cent from 22mtpa to 30mtpa and

enhance NLNG’s competitiveness in the

global market.

The company has a proven track record of

resilient performance (Operational

Excellence, HSE, etc.) and unswerving

profitability.​

Today, NLNG has a total production capacity

of 22 Million Tons Per Annum (mtpa) of LNG

and 5mtpa of Natural Gas Liquids (NGLs) from

its six-train plant complex.

NLNG has, within a short span of time, grown

in status to become a reliable supplier of LNG

in the Atlantic Basin serving the European,

South American, Middle East, and Far East

markets. The company has 16 long-term Sale

and Purchase Agreements (SPAs) with 11

customers and controls about 7% of global

LNG trade.

NLNG's objectives is to market, produce and

deliver Liquefied Natural Gas and Natural Gas

Liquids to buyers safely, reliably and

profitably, growing our company and its

people to their full potential, and being a

trusted partner with all our stakeholders in

the sustainable development of Nigeria’s gas

industry and of NLNG’s host communities.

NLNG has two subsidiaries: Bonny Gas

Transport Limited (BGT) and NLNG Ship

Management Limited (NSML). Bonny Gas

Transport Limited was incorporated in 1989,

following the incorporation of Nigeria LNG

Limited, to provide shipping capacity for

NLNG. BGT owns and operates LNG tankers

that transport NLNG’s products to its buyers.

The company's success has been defined by

tenacity and commitment to its Business

Principles. It begins with its core values which

are pillars of work culture at NLNG.

42

OIL AND GAS REPUBLIC I SPECIAL EDITION


NIGERIA AND GAS

N E W A P P O I N T M E N T

Mr. Victor Anyaegbudike

Communication Manager,

Chevron Nigeria Limited (CNL)

Victor Anyaegbudike

Appointed as CNL’s

Communication Manager

Chevron Nigeria Limited has approved the

appointment of Mr. Victor Anyaegbudike as

its new Communica on Manager.

He succeeds Mr. Sola Adebawo.

Chevron Nigeria Limited (CNL),

operator of the NNPC/CNL Joint

Venture has appointed Mr. Victor

Anyaegbudike as its new Communications

Manager in its Policy, Government and

Public Affairs Department (PGPA).

According to a statement made known to

The Energy Republic by the CNL’s General

Manager, Policy, Government and Public

Affairs, Esimaje Brikinn, until his

appointment, Mr. Anyaegbudike was the

External Communications Coordinator for

CNL.

Victor holds a Bachelors degree in Mass

Communication from Enugu State

University of Science and Technology, and

a Masters degree in Mass Communication

from the University of Nigeria, Nsukka.

He joined Chevron in 2007 as a Field

Communications Representative, and has

held positions of increasing responsibility

in his Chevron career including Senior

C o m m u n i cations Re p re s e ntative,

Communications Coordinator (PGPA Field

Operations) and External Communications

Coordinator.

Mr. Anyaegbudike replaces the former

Communications Manager, Sola Adebawo,

who retired from the company recently.

He is an experienced Communications

professional with extensive experience

working in the energy, oil, and gas industry.

His professional background comprises Crisis

Management, Corporate Social Responsibility,

Government, Crisis Communications, and

Editing.

As CNL's new Communication Manager, Mr.

Anyaegbudike will provide leadership for the

planning and management of Communications

strategies and programs, aimed at sustaining a

partner of choice reputation and enabling

company’s business through Executive and

Employee Communications; Communications

Plan and Deployment, Media engagement, and

R e p u t a t i o n M a n a g e m e n t , C r i s i s

Communications; Events Management and

support for oil and gas production operations

and Corporate Responsibility.

Chevron Nigeria Limited

Chevron is one of the largest oil producers in

Nigeria and one of the country's largest

investors.

In Nigeria, Chevron operate under a jointventure

arrangement with the Nigerian

National Petroleum Corporation (NNPC) for the

onshore and offshore assets in the Niger Delta

region.

Chevron also has extensive interests in multipartner

deepwater operations. The company

operate the Agbami Field, one of Nigeria’s

largest deepwater discoveries. It also have a

nonoperated interest in the Usan Field.

Chevron has interests, ranging from 20 to 100

percent, in three operated and six nonoperated

deepwater blocks in Nigeria.

Through Chevron’s principal subsidiary in Nigeria,

Chevron Nigeria Limited (CNL), the company

operates and holds a 40 percent interest in eight

concessions in the onshore and near-onshore

regions of the Niger Delta under a joint-venture

arrangement with the NNPC. Chevron also does

business through other subsidiaries in Nigeria.

Chevron operates the Agbami Field, which lies 70

miles (113 km) off the coast of the central Niger

Delta region and spans 45,000 acres (182 sq km).

Discovered in 1998, the Agbami Field is at a water

depth of approximately 4,800 feet (1,463 m).

Chevron has a 67.3 percent interest in the field.

The Sonam Field Development Project is designed

to process natural gas through the EGP and deliver

it to the domestic gas market.

Net production at the 40 percent-owned and

operated project averaged 11,000 barrels of

liquids and 89 million cubic feet of natural gas per

day in 2019.

With a 36.7 percent interest, Chevron is the largest

shareholder in the West African Gas Pipeline

Company Limited, which owns and operates the

421-mile (678-km) West African Gas Pipeline.

The pipeline supplies customers in Benin, Ghana

and Togo with Nigerian natural gas for power

generation and industrial applications. It has the

capacity to transport approximately 170 million

cubic feet of natural gas per day.

43 22

OIL AND GAS REPUBLIC I SPECIAL EDITION


NIGERIA AND GAS

N E W A P P O I N T M E N T

Mr. Ewariezi Useh

Chief Operating Officer (COO), Aiteo

Eastern Exploration and Production

Company (AEEPCO)

Ewariezi Useh

Appointed as AITEO’s

AEEPCO Chief Operating

Ofcer

Aiteo Eastern Explora on and Produc on Company

(AEEPCO), has approved the appointment of

Mr. Ewariezi Useh as its Chief Opera ng Officer

(COO).

Aiteo Eastern Exploration and

Production Company (AEEPCO),

operator of the NNPC / Aiteo Joint

Venture on OML 29 on Wednesday

announced the appointment of Mr.

Ewariezi Useh as its Chief Operating Officer

(COO). Ewariezi will provide overall

technical guidance to oil and gas

exploration, production development,

health, safety, security, and environmental

activities of the group’s upstream

business.

Ewariezi Useh assumes this position with a

wealth of expertise spanning over 26 years

from various areas of the Oil & Gas

Industry. His experience ranges from oil

and commodities trading (crude oil,

derivatives & refined products), supply and

distribution, petroleum retailing, shipping,

jetty and terminal operations, depot and

project management, amongst others.

Ewariezi joined Aiteo Group in 2013 and

until this appointment, served as the

Group Managing Director, Aiteo

Downstream overseeing the entire

downstream business of the Group and

responsible for the effective running of the

downstream companies (Aiteo Energy

Resources Limited and Avidor Oil & Gas

Company). Prior to joining the Aiteo

Group, he was General Manager,

Operations, African Petroleum Plc (now

Ardova Plc.) up until 2010, where he

oversaw the operations and growth of the

company nationwide by strategically

enhancing its growth and performance in

the petroleum retail sector.

Ewariezi is a graduate of Chemical Engineering

from the University of Benin. He holds an MBA

from the IESE Business School, University of

Nevarra, Barcelona; Spain. He has trained at the

College of Petroleum Studies, Oxford; IESE

Business School Barcelona, Wharton Business

School, Pennsylvania USA amongst others. He is

an alumnus of the prestigious Lagos Business

School; a member of the Nigerian Society of

Engineers, Nigerian Society of Chemical

Engineers, the Energy Institute, London and

also a registered member of the Council for the

Regulation of Engineering in Nigeria (COREN).

Useh replaces the erstwhile Chief Operations

Officer, Emmanuel Ukegbu, who retired from

the company.

Aiteo is one of Africa's fastest-growing energy

leaders. The company have a clear vision for the

future with the experience and assets

necessary to provide oil and gas on a regional

and global scale. Aiteo discover, produce, store

and deliver energy resources, and bring timely

solutions for clients worldwide.

Aiteo's strategy is to be a major part of the

world's energy solution by developing its core

asset areas in oil, gas, and electrical power – as a

strategically balanced and complementary

portfolio of opportunities. This diversity

enables the company to meet demand and

deliver value through changing commodity

cycles. The company's goal is to do to protect

the health and safety of its employees and

customers, and to preserve and protect the

environment in the communities in which it

operates.

The Aiteo team includes top experts in their fields.

Combining technical skills with strict safety

policies is a top priority for the company.

Aiteo is a great place to work. The employees

appreciate the challenge, the commitment to

growth and the ability to apply their skills and

knowledge. What's more, Aiteo invest in training,

mentoring and leadership development to help its

employees reach their full potential within a safe,

respectful, inclusive and collaborative workplace.

The company also provide the corporate

environment that enables great people to do their

best. As a good corporate citizen, Aiteo is

concerned for and support the communities in

which they do business.

Aiteo behave ethically, safely and responsibly

toward communities and in its dealings with

governmental bodies. Aiteo is not just about

creating jobs for local people, through activities

such as local charitable giving, social investment

p ro j ects, scholarships, and employee

volunteering, Aiteo is a partner in prosperity.

Aiteo encourages a culture of excellence. The

company value and reward the contribution of

high-performing individuals and teams in

achieving the company's objectives.

Aiteo is an iconic African organization that aims to

build pride amongst its employees; a company

that intends to make them proud to be part of an

organization that's making history.

44 22

OIL AND GAS REPUBLIC I SPECIAL EDITION



SHELL PHOTOSTORY

Shell, at the Future of Clean Energy Transition and the

Industrial Development Imperative of the Nigeria

Economic Summit 2021

R-L: Managing Director, Nigeria LNG Limited, Dr. Philip Mshelbila; Managind Director, Shell Nigeria Gas and President, Nigeria Gas

Associa on, Mr. Ed Ubong; Managing Director, Shell Nigeria Explora on and Produc on Company Limited, Mrs. Elohor Aiboni; and Chief

Energising Officer, Consistent Energy Limited, Mr. Segun Adaju, at the panel session on _Future of Clean Energy Transi on and the Industrial

Development Impera ve_ of the just-concluded 27th edi on of the Nigeria Economic Summit in Abuja... on Tuesday.

Minister of Niger Delta, Finance Minister, SNEPCo MD at

opening session of 27th Nigeria Economic Summit 2021

46

R-L: Managing Director, Shell Nigeria Explora on and Produc on Company Limited, Mrs. Elohor Aiboni; Minister of Finance, Budget

and Na onal Planning, Dr. Zainab Ahmed; and Minister of Niger Delta, Sen. Godswill Akpabio, at the opening session of the

27th Nigeria Economic Summit in Abuja… on Monday

OIL AND GAS REPUBLIC I SPECIAL EDITION


UGANDA:

DRIVING THE

FINAL STEPS

IN

COMMERCIALISATION, OIL, GAS PRODUCTION

Uganda has emerged as a formidable oil and gas hub in the African

continent with its 6.5 billion barrels of proven crude oil reserves, 0.5

trillion cubic feet of natural gas, and there are about 21 oil and gas

discoveries. In 2006, when the first commercial oil and gas discovery was made

in Uganda, the risk of exploration was very high. Therefore, attracting

investment in an area with no proven petroleum resources was challenging.

The country, therefore, adopted an open-door policy for licensing whereby

Government would hold one-to-one negotiations with the investors who

expressed interest.

Following the de-risking of Albertine Graben through the discovery of

commercial oil in 2006, the country formulated the National Oil and Gas Policy

in 2008. The Policy recommended a comprehensive legal and regulatory and

institutional framework reform to address the entire petroleum value chain

and one of the objectives of the Policy was the adoption of competitive

licensing.

Consequently, the Government of Uganda conducted a successful First

Licensing round from 2015 to 2017 which resulted in the grant of three

exploration licenses. Oranto Petroleum Limited was awarded two licenses i.e.,

Ngassa shallow play and Ngassa Deep play while Armour Energy Limited was

awarded Kanywataba block. The companies are currently implementing the

agreed work programs as spelled out in the signed Production Sharing

Agreements (PSA).

Based on our findings, Uganda boasts of nine production licenses. Total E&P

Uganda B.V. holds three Production licenses over four fields issued in 2016 and

the company's application for additional three production licenses is under

review by Government. Tullow Uganda Operation Pty holds five Production

licenses over nine fields issued in 2016. While CNOOC Uganda Ltd holds one

Production license over the Kingfisher field issued in 2012.

On the other hand, the country boasts of three exploration licenses. Armour

Energy Ltd holds an exploration license over the Kanywataba block issued in

2017 while Oranto Petroleum Ltd has two stratigraphic licenses over Ngassa

shallow and deep plays. Based on the report, Uganda has recorded an 88%

drilling success rate and there are about 1.4 billion barrels of recoverable

resources.

47

By Ndubuisi Micheal Obineme

Facts about Uganda’s Oil and Gas Industry

Ø Uganda has 6.5 billion barrels of proven crude

oil reserves, 0.5 trillion cubic feet of natural gas.

Ø Uganda boasts of nine production licenses.

Ø Uganda has recorded an 88% drilling success

rate.

Ø Uganda has about 1.4 billion barrels of

recoverable resources.

Ø The licensed areas represent about 10% of the

Albertine Graben while 90% is not licensed.

Ø Uganda stands to become one of Sub-Saharan

Africa's top five oil producers by 2025.

Ø The major oil and gas infrastructure project in

Uganda is the Tilenga, KingFisher project. While

the EACOP and the refinery project represent an

investment of about $10 - $20 billion USD.

Ø Uganda’s Commercialisation Plan comprises the

upstream, refinery, and the East African Crudeoil

Pipeline project which are all progressing.

OIL AND GAS REPUBLIC I SPECIAL EDITION


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The licensed areas represent about 10% of the

Albertine Graben while 90% is not licensed.

The report has shown that Uganda stands to

become one of Sub-Saharan Africa's top five oil

producers by 2025. Albertine Graben is the

principal prospective area for petroleum

exploitation. 40% of Albertine Graben has been

explored; less than 15% is licensed. More so,

various leads and prospects have been

identified in the Albertine Graben. Other

sedimentary basins in the country are under

investigation.

Under the leadership of H.E. President Yoweri

Museveni and the recently inaugurated Hon

Ruth Nankabirwa, Minister of Energy and

Mineral Development working together with

Ernest Rubondo, the Executive Director of the

Petroleum Authority of Uganda, and Proscovia

Nabbanja, the CEO of the Ugandan National Oil

Company (UNOC), Uganda has accelerated

hydrocarbon exploration, large-scale project

developments, and regional synergies, driving

widespread socio-economic growth in the

process.

Uganda has entered a new era of energy

prosperity, with a stabilized government,

numerous tax and financial breaks for

investors, the refinery underway, pipeline

development, and one of the most costeffective

options for oil extraction available,

the Albertine Graben offers a real opportunity

among others. The country has also signed key

petroleum agreements such as the East African

Crudeoil Pipeline (EACOP) project.

The major oil and gas infrastructure project in

Uganda is the Tilenga, King Fisher project.

While the EACOP and the refinery project

represent an investment of about $10 - $20

billion USD.

Interestingly, this article provides a detailed

analysis of the ongoing development in

Uganda's oil and gas industry, featuring the

latest project opportunities including

government and stakeholders commentaries

to drive the country's energy prosperity and

investment opportunities.

On September 28th - 29th 2021, Global Event

Partners organized the 6th edition of the

Uganda International Oil & Gas Summit

(UIOGS) in partnership with the Ministry of

Energy and Mineral Development of Uganda,

Petroleum Authority of Uganda (PAU), Uganda

National Oil Company (UNOC), in a virtual

format, via the energy advance platform.

UIOGS is the official platform for oil and gas

business in Uganda and the must-attend

meeting for all stakeholders and industry

players in the African continent.

Dr. Hon. Ruth Nankabirwa, Uganda's Minister

of Energy and Mineral Development, delivered

the opening address to delegates, followed by

an overview of the latest updates on the Hoima

– Tanga Pipeline Project from Eng. Irene

Dr. Hon. Ruth Nankabirwa, Uganda's Minister of Energy and Mineral Development

Pauline Batebe Okello, Energy Ministry –

Permanent Secretary, Dr. Ernest Rubondo,

Executive Director and Secretary to the Board,

Petroleum Authority of Uganda and Ms.

Proscovia Nabbanja, CEO, Uganda National Oil

Company, amongst others.

In her keynote address, Dr. Nankabirwa said

that the Government of Uganda is working

closely with International Oil Companies (IOCs)

a n d o t h e r i nvestors to e n s u re t h e

Commercialisation plan for the oil and gas

discoveries are implemented.

According to her, the Commercialisation plan

covers the upstream, refinery, and the East

African Crudeoil Pipeline project which are all

progressing.

She noted that there have been the various

signing of agreements on the projects including

the EACOP's Intergovernmental Agreement

between Uganda and Tanzania.

"The Host Government Agreement (HGA), Tariff

Transportation Agreement (TTA), Shareholders

Agreement for the EACOP project have been

signed. The project framework agreement for

the development of refineries, and together

with the launch of the upstream projects are in

progress.

"We have progressed on the EACOP bill. It has

been passed through the cabinet. We are

gazetting it and after that, it will be tabled to the

parliament for the first reading.

"I am engaging with the members of the

committee handling natural resources. I want

to encourage investors to take advantage of the

opportunities in our oil and gas sector.

"It also creates opportunities for international

companies and Uganda companies to partner

through joint ventures which will enhance the

competitiveness of the industry.

"The partnership is also good for the local

companies to gain knowledge and technology

transfer.

“Government is playing its

role to creating an enabling

environment, promoting

opportunities and putting

in place investor-friendly

policies, infrastructure, and

security in Uganda.

"Our National Content is been prioritized as we

have put in place clear policies to guide our oil

and gas industry as well as building the capacity

of Ugandans and Uganda Entreprises through

skills development among others.

"Some private sector players like the Stanbic

Bank have been supporting us. Uganda intends

to use its oil and gas sector as an enabler for the

economy. We are inviting investors to invest in

these sectors.

"Uganda oil and gas sector is indeed in the final

steps of commercialization and production.

I would urge investors to take advantage of the

opportunities and work with the Government,

oil companies, project developers to participate

in the sector."

Upstream Projects Development

Tilenga: The Tilenga Project is operated by

TotalEnergies E&P Uganda (TEPU) and covers

three (03) Production Licenses (PLs) from

Contract Area (CA) -1 and three (03) PLs from

LA-2. The PLs include; Jobi-Rii, Gunya, Ngiri,

Kasamene-Wahrindi, Kigogole-Ngara and

Nsoga. The Tilenga project is expected to attract

over USD 10 billion of investments in Uganda

and Tanzania.

The project includes; Development of a Central

Processing Facility (CPF) with the capacity to

process 190,000 barrels of oil and 700,000

barrels of total liquid per day; Drilling of over

426 wells (200 water injector wells, 196 oil

producer wells, 2 polymer pilot wells and 28

reference wells) which are planned to be drilled

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on 31 well-pads; Over 160 kilometers of flowlines

which will transport crude oil and water

from the wells to the CPF; 95 km 24-inch feeder

pipeline which will transport the processed

crude oil from the CPF in Buliisa to the export

hub and Refinery in Kabaale in Hoima District;

Other supporting infrastructure include;

Victoria Nile Crossing, Temporary and

Permanent Operation Support Base camps and

a Lake Water Abstraction Station.

In June 2021, TotalEnergies, through local

subsidiary Total E&P Uganda, has awarded five

drilling packages reportedly worth almost $600

million for its Tilenga oil project in Uganda,

which is a key step forward for the country's

nascent oil and gas sector.

Engr. Irene Pauline Bateebe, Permanent Secretary of Uganda Ministry of Energy & Mineral Development

Kingfisher: The Kingfisher project involves the

development of an oil field to produce 2.32

million cubic meters per annum in the

Albertine region, Western Uganda. The

Kingfisher development will include a 40,000-

bopd central processing facility. The project is

located near TotalEnergies' planned 190,000-

bopd Tilenga development. Oil from the two

projects will be carried to the port of Tanga in

Tanzania via the planned East African Crude Oil

Pipeline.

The Kingfisher Development Area (KFDA)

covers the Kingfisher field located in Kikuube

District with plans for future tie-in of Mputa-

Nzizi-Waraga fields in Kaiso-Tonya, Hoima

District. The project is operated by CUL and

includes the following facilities; Development

of a Central Processing Facility (CPF) with a

capacity of 40,000 barrels of oil per day; Thirty

one (31) wells (11 injectors and 20 producers)

to be drilled on four (4) well pads; Nineteen

(19) kilometers of flow-lines to connect the

fields to the CPF; A forty-six (46) kilometer 12-

inch feeder pipeline from the CPF in Buhuka to

the export hub and Refinery in Kabaale, Hoima

District; A Lake Water Abstraction station;

Supporting infrastructure such as temporary

and permanent camps, a materials yard, a jetty,

and several access roads, among others.

The work programs implemented by the KFDA

project and monitored by the Authority so far

include subsurface optimization and studies,

the Front-End Engineering and Design (FEED),

Environment and Social Impact Assessment

(ESIA), Land Acquisition, tendering of

Engineering, Procurement and Construction

(EPC) together with Drilling and Completions,

and Geotechnical Surveys.

In November 2021, China's CNOOC has

reached a final investment decision on the

Kingfisher Project, paving the way for the

development of one of Uganda's key oil plays

and its game-changing oil export pipeline.

According to a report, CNOOC has pledged to

spend USD 460 million on contracting Ugandan

companies to develop the project, located in

the Lake Albert Basin, according to Chen

Zhuobiao, president of CNOOC Uganda.

Chinese state-owned oil and gas company

China National Offshore Oil Corporation

(CNOOC) holds a 33.33% stake and is the

operator of the onshore oil project. The other

development partners are Total and Tullow Oil

that holds a 33.33% stake each. The field is

expected to come online in H1 2025.

East Africa Crudeoil Pipeline (EACOP): The

EACOP is a 1,443km, 24-inch diameter heated

and buried crude oil pipeline that will start from

Kabaale, Hoima in Uganda to Chongoleani,

Tanga in Tanzania. The pipeline will have a

manifold in Kabaale, Hoima, six (06) pumping

stations (two (02) of which will be located in

Uganda), 27 heating stations, and two (02)

pressure reduction stations. Planned to supply

up to 216 thousand barrels of crude oil a day

from Uganda to Tanzania, it will be the first of its

kind pipeline in East Africa and the longest

electrically heated crude pipeline in the world.

The pipeline is intended to transport the crude

output of two oil fields namely, Kingfisher and

Tilenga that are being developed on the shores

of Lake Albert by French oil company Total and

China National Offshore Oil Corporation

(CNOOC). These two fields are estimated to

contain up to six billion barrels of recoverable

oil resources.

The EACOP project is being developed by a joint

venture between TotalEnergies (66.7%) and

CNOOC (33.3%). Total agreed to acquire

Tullow's 33.33% interest in the Ugandan oil

assets as well as the oil export pipeline for a

cash consideration of approximately £444

million ($575 million) in April 2020. The

development of this pipeline is being led by the

licensed upstream oil companies in Uganda,

w i t h p a r t i c i p ating i ntere st s by t h e

Governments of Uganda and Tanzania.

The Lake Albert region in Uganda has major oil

and gas resources, estimated at over one billion

barrels. Uganda wanted to develop them under

the projects Tilenga, operated by TotalEnergies,

and Kingfisher by CNOOC.* Production will be

delivered to the Tanzanian port of Tanga by a

cross-border pipeline, built and operated by the

EACOP company (East African Crude Oil

Pipeline).

Engr. Irene Pauline Bateebe, Permanent

Secretary of Uganda Ministry of Energy &

Mineral Development, disclosed that the

Uganda oil and gas sector is underpinned by the

National Oil and Gas Policy of 2008, adding that

the policy is under review as the government is

working towards amending the policy to

address issues in the country's oil and gas sector

and the global energy transition.

Speaking about Uganda's Commercialization

Plans, Engr. Irene noted that there is a number

of reputable companies that are moving into

production.

"For Production Licenses, CNOOC has two

production licenses - Kingfisher Field Mputa

Nzizi-Waraga. TotalEnergies has 7 production

licenses - Jobi-Rii, Ngiri, Gunya, Kasamene-

Wahrindi, Kigogole-Ngara, Nsoga and Ngege.

And the two production licenses are under

review which is; Mpyo and Jobi East.

"For Exploration Licenses, Armour Energy Ltd is

licensed to Kanywataba. While Oranto

Petroleum Ltd is licensed to Ngassa shallow and

deep. The Uganda National Company (UNOC)

holds 15% of each license."

COMMERCIALIZATION PLANS

The Uganda petroleum resources are being

developed in line with the Commercialization

MOU between the Government and the

Upstream Partners (Tullow, CNOOC, and

TotalEnergies) of 2014.

Engr. Irene further explained that through the

MOU signed with the International Oil

Companies (IOCs), the parties have agreed to

focus on the projects that are in line with the

government plans to develop the oil and gas

resources in the country.

"Part of our plan is the Crudeoil Refinery where

we seek to develop 60,000 barrels of oil per day

refinery that will serve Uganda and its

neighbors.

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"We are also concluding the Frontend

Engineering Design (FEED) and consequently

negotiating the long-term agreement leading

to the Final Investment Decision (FID) for the oil

refinery. This is a critical project and the UNOC

holds 40%.

"Other projects we are working on is the crudeto-power.

We have other sources of energy

such as the gas project to support our

operations upstream.

“There is a high demand

for petroleum products

in Uganda.

“It has taken a while for Uganda to reach this

stage. We have done quite a lot of work in

preparing the project for construction. Uganda

is a landlocked country with enormous

potentials.

"By the end of this year, we will have all the

lands ready to support the TILENGA, EACOP

KINGFISHER projects to ensure we move to the

next stage of construction.

"Each of the projects has to undergo a

Frontend Engineering studies, and we are

working on the evaluation, detailed

engineering, and procurement for the project.

"Our target is to see that first oil comes out

from the ground in Uganda by 2025.

"Also, procurement of contractors and

providers of supplies and services is critical for

us to get to the next stage."

The Tilenga and EACOP projects are situated in

a sensitive social and environmental context

and require land acquisition programs with

close attention to the rights of the affected

communities. Environmental and social impact

assessments (ESIAs) have been carried out in

compliance with the exacting standards of the

International Finance Corporation (IFC). Thirdparty

reviews have also been conducted to

ensure that the projects are compliant with the

best social and environmental practices.

The completion of the Tilenga and EACOP

projects will require the implementation of a

land acquisition program covering some 6,400

hectares. For Tilenga and EACOP, this program

means relocating 723 primary residences and

will affect a total of 18,800 stakeholders,

landowners, and land users. Carried out in

compliance with IFC performance standards,

this program will begin with a complete survey

of the land and crops and monetary

compensation and/or compensation in kind.

Each family whose primary residence is being

relocated may choose between a new home

and monetary compensation. An accessible,

transparent, and fair complaints-handling

system will be running throughout the process.

In a report made known to The Energy Republic,

the Tilenga Project Affected Person (PAPS) is

around 5,523 persons and Kingfisher Project

Affected Person (PAPS) is around 727 persons.

While EACOP Project Affected Person (PAPS) is

about 3,792 persons in terms of land allocation.

The Government has acquired the lands in

compliance w i t h U ga n d a L a ws a n d

International Finance Corporation (IFC)

Standards on land acquisition. Based on this,

the affected persons have the right to choose

between primary residences and cash

compensation. The entire process is monitored

by the Petroleum Authority of Uganda (PAU) for

compliance. Also, the Government has put in

place the mechanism to address any grievances

and issues accordingly.

Mr. Chen Zhuobiao President of

CNOOC Uganda

Mr. Chen Zhuobiao President of CNOOC Uganda

said that CNOOC is working closely with its

partners and government to deliver the

projects successfully effectively.

Regarding the land acquisition that is required

for all the infrastructural development for the

projects, Zhuobiao said:

“We are at about 99% to

acquire the land for all the

projects infrastructure.

"We have also compensated the affected

persons. What remains is the rivalry of some

resettlement units for some other affected

person who was physically living on the land

and the construction of the resettlement

houses is currently ongoing.

"In terms of the environmental and social

permit, we have obtained the SIS certificate

from the National Environment Authority in

February 2020 which allowed us to proceed

with the project.

“Currently, we are doing some updates

regarding the management plans to ensure that

the project is developed in a socially and

environmentally and sustainable manner.

“We are working with various entities including

the government, MDAs, local authorities, and

the affected communities to ensure the project

complies with all the relevant legislation and

international best practices.

"In terms of the procurement and contracts, we

have made giant strides on that aspect. For the

drilling (wellhead, integrated services,

Christmas Tree, ESP & accessories, downhole

gauges, pipes) and completion services, the

contracts are ready to be awarded".

Mr. Philippe Groueix, General Manager,

TotalEnergies E&P Uganda

Mr. Philippe Groueix, General Manager,

TotalEnergies E&P Uganda explained that

Tilenga, Kingfisher, and EACOP is an important

project for both Uganda and TotalEnergies to

showcase its commitment to developing local

content with its low carbon ambition in the

most socially, environmentally, and responsible

manner.

"We have made a

commitment to work

with all stakeholders to

ensure that these

projects deliver the

intended benefit to the

local communities,

business sectors, and

the country at large.

"Tilenga and EACOP project is been developed

in compliance with national and international

standards. Specifically, we are working in line

with the International Finance Corporation

(IFC) Performance Standard 128 on

Environment and Social Sustainability including

UN Guiding Principle on Business and Human

Rights.

"For the project, we have been able to acquire

the lands needed for the construction of the

industrial areas and we are now progressing on

the land acquisition.

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“Our focus is to maintain a good alignment

between the upstream and midstream to make

sure the Tilenga, Kingfisher, EACOP projects are

developed simultaneously as we target first oil

by 2025.

"TotalEnergies is focused on the maximization

of Uganda's national content for the benefits of

Ugandan companies. We have an increased

number of Uganda companies providing goods

and services for our projects such as medical,

catering, communication, security services,

civil works, manpower & training services,

social and environmental services, among

others.

"We have about 700 people working directly

and indirectly on our projects. We have also

developed some initiatives on training

programs, workshops, etc.

"Majority of these training and capacity

development will be delivered by Uganda

companies for the benefit of the trainees and

the companies.

"TotalEnergies is fully committed to make sure

we deliver all the expectations on the projects

for the benefit of all the people involved and

the country at large."

For these two projects, and in line with its

biodiversity commitments, TotalEnergies will

also implement action plans that generate a

positive net impact on biodiversity.

These plans will be defined in close

collaboration with the authorities and

stakeholders responsible for nature

conservation in Uganda and Tanzania.

TotalEnergies will contribute to a 50% increase

in the number of Murchison Falls park rangers

and will support a program, conducted in

partnership with the UWA (Uganda Wildlife

Authority), to reintroduce the black rhinoceros

in Uganda.

TotalEnergies is also working closely with IUCN

(International Union for Conservation of

Nature) experts to integrate the best practices

for the protection of chimpanzees, particularly

by promoting the conservation of forest

habitats.

Nicolas Terraz, Vice President

TotalEnergies E&P Africa

Dr. Michael Mugerwa, General Manager of Uganda Refinery Holding Company

Nicolas Terraz, Vice President TotalEnergies

E&P Africa commented:

Tilenga and EACOP are a

concrete example of the

application of TotalEnergies

ambition and commitments

to biodiversity. .

Significant resources have been mobilized to

implement them in an exemplary way. For four

years, the affiliate has been in close contact

with the local people and has been striving to

minimize the projects' impact on the local

community. We are proud to be a part of these

major developments for the Company that

promises to transform their host countries."

Uganda Refinery Project

The Petroleum (Refining, Conversion,

Transmission, and Midstream Storage) Act 2013

was enacted by Parliament during February

2013 and became effective during July 2013

following Presidential assent. This Act provides

for among others, the legal foundation for the

development of a refinery in Uganda and other

midstream infrastructures like pipelines and

storage facilities.

The development of a 60,000 barrel per day

refinery to be located at Kabaale in Buseruka

Sub-county, Hoima District, is now being taken

forward by the Government of Uganda.

The Refinery project will be a private sector-led

project, with Government's share held by the

Uganda National Oil Company (UNOC), through

its subsidiary Uganda Refinery Holding

Company.

East African Community partner states (Kenya

and Rwanda) and TotalEnergies E&P Uganda

have expressed interest in holding shares. The

project will be funded through a debt-to-equity

ratio of about 70:30. The Lead Investor will be

responsible for raising the debt for the project.

The Uganda Refinery project, which includes

the development of a 211-kilometer petroleum

products pipeline from Hoima to North West of

Kampala, is estimated at US$ 3 – 4 billion.

Uganda National Oil Company (UNOC) holds

and manages the Government of Uganda's

business interest in the Refinery project with

40% shareholding interest.

Speaking further, Dr. Michael Mugerwa,

General Manager of Uganda Refinery Holding

Company affirmed that the main refinery

products will include Euro V Gasoline, Diesel,

Jet Fuel, Liquified Petroleum Gas (LPG) & Heavy

Fuel Oil (HFO).

He added, "We are looking at converting the

HFO into Ammonia, Nitrogenous Fertilizers,

Polypropylene plastics, Petrochemical

products.

We are in discussion with

industrial gas suppliers to

supply us with Nitrogen,

Oxygen, Carbon Dioxide,

Hydrogen, Argon, and other

gas that will support

Agro-processing industries. .

“The Front End Engineering Design (FEED) for

the refinery has been submitted to the

Government of Uganda for review, and ESIA is

nearing completion.

"The crude supply agreement is currently under

negotiation with JV Partners (TotalEnergies,

CNOOC & UNOC). While the Commercial

Viability Assessment for the Refinery project is

underway.

“The refinery FID will be

taken by mid-2022.

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“More so, preparation is ongoing for the RAP

and land acquisition for the refinery water

abstraction intake and pipeline and

procurement by UETCL of 240MW (upgraded

to 280MW) HV power sub-station.”

Refinery Macro-Economic Benefits

Stanbic Bank Uganda in collaboration with

UNOC undertook a Macro-Economic Study for

the Refinery project in Uganda. The study

concluded that the Refinery will create a

positive cost-benefit analysis to the Ugandan

economy, adding up to $3.3 billion to the

current USD 27 billion National GDP and USD

8.2 billion to the National Capital Formation.

The Refinery will create 32,000 job

opportunities and the Balance of Payments will

be up to USD591 million and a fiscal impact of

USD 804 million to the Uganda economy.

The key targets on the Uganda Refinery for the

years 2021 and 2022 include; complete the

ESIA for the refinery; concluding crude supply

implementation and shareholder agreements;

Finalising commercial viability assessment for

the refinery; Secure equity and debt funding

for the refinery, among others.

Infrastructure Projects

The Government of Uganda is facilitating major

infrastructural projects in the country, ensuring

the necessary mechanism is put in place. To

date, the government has acquired over 29.57

km to build an oil & gas industrial park which

will ultimately serve as the offtaker from a

number of bye products and specifically from

the refinery. There are immense opportunities

in the industrial park.

Kabaale Industrial Park (KIP): KIP is

approximately 29.57 km2 covering 7,307 acres

of land, located in Kabaale Parish, Hoima

District, approximately 248 kilometers by road

from Kampala.

The Kabaale Industrial Park will accommodate

major infrastructure projects including

Uganda's 2nd International Airport that is

currently under construction which is 66.5%

completion; Crude Oil Export Hub - part of the

EACOP project including the Feeder Pipelines;

Multiproduct pipeline to KST, Mpigi; Fertilizer

and Polymer Industries; Light/Medium

Industry - Oil & Gas Supply Chain

I n p u t s / O u t p u t s ; A g r o - p r o c e s s o r s ;

Warehousing and Logistics; Commercial,

Retail, Health Centre IV and Residential spaces.

Kabaale Industrial Park Outlook

During production, the crude oil will be

pumped from Tilenga and Kingfisher oil fields

to the Crude Export Hub (Pump Station No. 1).

Part of the crude oil will be supplied to the

refinery (60,000 BPD), while the remainder will

be fed into the East African Crudeoil Pipeline

(180,000 BPD) for export to the international

market.

Per day population within the park is expected

to reach 25,000 people and the health facility is

planned for 50 in-patients and 200 in-patients

and will be expanded to 100 in-patients and 300

out-patient in the future.

Kabaale International Airport: The Airport,

also known as Hoima International Airport is an

airport under construction in Uganda. It is part

of the infrastructure projects in the country, as

Uganda prepares to develop its nascent

petroleum industry. When completed, it would

be Uganda's second international airport,

besides Entebbe International Airport.

There will be a portion at the Airport connected

to the Industrial Park, a runway of about 5km

that will support the movement of Staff and

small requirements during construction. The

airport is the most advanced airport in Uganda,

with about 65% completion and expected to be

completed by 2023.

Construction of the airport began on April 18,

2018. It was scheduled to be completed by April

2022 but the contractor was granted a 10-

month extension by the Ministry of Works and

Transport. According to the revised plan,

completion has been scheduled for February

17, 2023.

The Uganda Government is working extremely

hard to make sure the road network in the

country improves as well.

National Content

The Uganda National Content for its oil and gas

industry is developed on five key pillars which

comprise of Capacity Building; Employment of

Ugandan citizens; Enterprise Development; Use

of Locally Produced Goods and Services;

Transfer of Knowledge and Technology.

The National Content aims to achieve incountry

value creation and retention whilst

ensuring competitiveness, efficiency, and

effectiveness. It also addresses human capital

development in oil and gas-related disciplines.

Kabaale International Airport

Uganda's rationale for National Content

ensures is positioned to develop the

competitiveness of Uganda enterprises to

supply the oil and gas sector.

As part of the government efforts to support

Ugandans to build their capacity as well as

establish the necessary structures to

strengthen the country's oil and gas industry,

the Government of Uganda in partnership with

the Ministry of Education provides vocational

and technical training and in-country.

international certifications known as

City&Guilds, OPITO, American Welding Society

(AWS), NEBOSH, International Association of

Drilling Contractors (IDAC), International Well

Control Forum, among others.

There are other capacity building and skill

initiatives such as the Oil and Gas Trainers

Association of Uganda; Uganda Petroleum

Institute Kigumba (UPIK) which is now an

accredited center for City and Guilds, EICTIB,

etc...

With the support of the private sector, close to

4000 technicians have been trained and

certified.

U g a n d a ' s e n e r g y p o t e n t i a l i s w e l l

acknowledged and the country has made

significant progress to expand its oil and gas

industry and capitalize on its resources. As a

result of this, the country has emerged as a

prime frontier market for oil and gas business

and investment opportunities.

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UGANDA OIL AND GAS

Exploring Opportunities in Uganda’s Booming

Energy, Oil and Gas Sector

By Tobi Owoyimika

300 lifting and earth moving equipment, among

others."

GOU Creating an Enabling Environment

to Create Opportunities for Investors —

Bateebe

The Government of Uganda believes

in the role that energy resources play

in the country’s development. Under

the leadership of H.E. President Museveni,

Uganda is redirecting its attention on

accelerated energy sector expansion, with

industry leaders seeking investment

partners to help position the country as a

regional hydrocarbon hub.

With the presence of international oil

companies (IOC) including Tullow Oil,

Heritage Oil Plc, TotalEnergies, and China

National Offshore Oil Corporation, the

country has seen significant progress to

expand its oil and gas industry and capitalize

on its resources. IOCs have been actively

pursuing upstream campaigns in a bid to

open up several key basins in the country,

including the Lake Albert Rift Basin.

Accordingly, the country has emerged as a

prime frontier market for oil and gas

activities.

Engr. Irene Pauline Bateebe, Permanent Secretary

of Uganda Ministry of Energy & Mineral Development

including the 190,000 barrel per day (BPD)

Tilenga Project; the Kabaale Industrial Park; and

the monumental 1,443km, 216,000 BPD East

Africa Crude Oil Pipeline.

Other businesses and investment opportunities

in Uganda include; Geoscientific surveys and

studies for exploration; Drilling and related

services; Investment in emerging infrastructure

like the Refinery, pipelines, and storage facilities;

Development of Petroleum-based Industrial Park

in Hoima; Goods and Service provision and

contracts during Engineering, Procurement,

Supply, Construction and Commissioning of the

required facilities.

Engr. Irene Bateebe urged investors to take

advantage of the opportunities in the country, as

Uganda is open for business.

She added, "In terms of Geological analytics, the

technical data shows that there is a wellestablished

petroleum system in Uganda, and

investors are welcome to invest in the new

exploration areas of Uganda's oil and gas industry.

"There is a high demand for petroleum products

in Uganda. The country has been acclaimed for its

political and economic stability with links to other

global trade blocks and a member of the

Multilateral Investment Guarantee Agency

(MIGA) among others makes it a good base for

doing business.

"The Government of Uganda has done a lot to

ensure the necessary infrastructure is put in place

to support investors and where there are

challenges, the government will assist.

"Uganda has a liberalized banking and finance

system. The country has put in place the

legislative and institutional setup of the oil and

gas sector in line with the best regulatory practice

for efficiency and effectiveness in the

management of the sector.

In addition to the active participation of

IOCs, the attractiveness of Uganda’s energy

sector can be directly attributed to the

success of the country’s national oil

company (NOC), the Uganda National Oil

Company (UNOC). Under the guidance of

the UNOC, Uganda is gradually being

positioned as a regional hydrocarbon

competitor, with the NOC playing a crucial

role in the sector’s advancement.

Notably, the UNOC, representing the

government’s commercial interests in the

petroleum sector, has overseen some of the

country’s biggest project developments

Speaking at the 6th edition of Uganda

International Oil and Gas Summit (UIOGS) 2021,

Engr. Irene Pauline Bateebe, Permanent

Secretary of Uganda Ministry of Energy & Mineral

Development said that opportunities abound for

suppliers in the current project development in

Uganda.

According to her, Tilenga and Kingfisher

equipment and material needed are estimated at

around 7 million tons, as it will require close to

600 trucks per month to transport the materials

to the construction sites.

“East Africa Crude Oil Pipeline (EACOP) and the

refinery project will also require 350 trucks. Over

"The oil and gas sector in Uganda is taking off and

investors are welcomed to participate in the

transformation going on in the country. Uganda is

an attractive investment destination that

provides an environment where investors are

able to make a return on their investment while

the country and its people benefit.

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OIL AND GAS REPUBLIC I SPECIAL EDITION


UGANDA OIL AND GAS

Uganda's JV Partnership Unlocks

New Opportunities for Local and

International Suppliers

Mrs. Peninah Aheebwa, Director – Technical

Support Services, Petroleum Authority

of Uganda (PAU)

Ug a n d a i s u n l o c k i n g n e w

opportunities for local and

international suppliers through

Joint Venture (JV) partnerships in the oil

and gas industry.

At the 6th edition of Uganda International

Oil and Gas Summit (UIOGS) 2021, Mrs.

Peninah Aheebwa, Director – Technical

Support Services, Petroleum Authority of

Uganda (PAU) made a presentation on

U ga n d a ' s S u p p l i e r D e velopment

opportunities which is connected to Joint

Venture partnership to successfully do

business in the country's energy, oil, gas

industry.

Peninah said that the opportunities in

Uganda's oil and gas industry are

enormous, and this is why the idea of a

Joint Venture (JV) partnership comes in, as

Ugandan companies won't be able to

explore the opportunities alone.

She further explained that Uganda has

been involved in various capacity

development initiatives over the years, but

there is still a need for Joint Venture

partnerships.

"In summary, the opportunities are

enormous and there are opportunities for

JV to maximize Uganda National Content.

"In terms of legal frameworks, first of all,

preference is from Ugandans. The goods

and services produced should be rendered

by Ugandan entities".

56

According to her, the JV partnership is required

where goods and services are unavailable in

Uganda. On this note, there is a need for

approval by the Petroleum Authority of Uganda

(PAU) to import foreign goods and services to

Uganda.

"There is also a ring-fencing on certain goods

and services for Ugandans. At least 10%

allocated to National Content in total bid

evaluation.

"For bids with less than 5% score difference

during financial evaluation, the bid containing

the highest level of National Content will be

selected.

"All entities are required to register on the

National Suppliers Database.

"Between 2017 to 2020, the Licensed Oil

Companies spent USD 147 million on

procurement, out of which USD 52 million

(35.75%) was spent on local entities owned by

Ugandans.

"We are looking at JVs as a strategy to maximize

national content. The industry is an avenue

where you can identify partners whether you

are a foreigner or Ugandan".

She said that in the year 2020, there were about

2,000 registered companies and most of these

companies are Ugandans but there is a need to

make use of the Joint Venture opportunities to

identify potential partners in Uganda or foreign

companies.

She added that the JVs can be corporated or

incorporated to make it easier for the business

structures, adding that the JV partnership

stands as an opportunity to get finances as

some of these contracts are really huge - over

$1 million dollars and above.

"It is an opportunity to bring resources and

technical capacities together. It is also an

avenue to share experiences with foreign

companies from around the world.

"At PAU, some of the regulatory requirements

we look at is the scope of the business both

companies will take on. We need to see some

demonstration of capacity building and transfer

knowledge and technology.

"We don't want companies to be like brokers or

middlemen but we want the companies to fully

participate in the business so we can achieve

the objectives of capacity building, technology,

and skills transfer.

"Till date, we just have a few successful JVs and

about six of them are in G&G studies but we are

moving on.

"This year, there are a number of applications

that have come in which is very encouraging.

"At PAU, we have done so much to enable

national content and now, we want to focus on

Joint Venture partnership given the complexity

and capital intensiveness of the projects," she

concluded.

The Petroleum Authority of Uganda, also

known as the Uganda National Petroleum

Authority, is governmental organisation that

regulates the petroleum industry in Uganda.

OIL AND GAS REPUBLIC I SPECIAL EDITION


UGANDA OIL AND GAS

Nigerian Oil Companies En Route to Uganda – Ambassador

Ugandan High Commissioner to

Nigeria, Ambassador Nelson

Ocheger, says six Nigerian

companies have indicated interest to

invest in Uganda oil and gas industry.

Ocheger made this known in an interview

at the ongoing 2021 Lagos International

Trade Fair (LITF) on Tuesday in Lagos. The

fair is holding from November 5th to

November 14th and has as its theme:

“Connecting Businesses, Creating Value.”

Over 200,000 visitors are expected while

about 1,500 exhibitors from 16 countries

are participating in the 35th edition of the

fair. He said Uganda was set to produce its

first oil as early as 2025 and production in

the next five years was expected to jump to

230,000 barrels per day, from zero in 2021.

He said: “We have started exploring our oil

reserves. We hope that by 2025, we will be

able to start selling crude refined in

Uganda.

“We are currently constructing a refinery,

we are building pipelines and an airport to

service that industry in Western Uganda.

“We are expecting to produce and it is very

attractive to investors and six Nigerian

companies have already shown interest.”

Ambassador Nelson Ocheger, Ugandan

High Commissioner to Nigeria

Ocheger said the projects were being executed

using Public Private Partnership model and was

attracting investors.

He noted that Nigeria was the biggest oil

producer in Africa with vast years of experience

in the sector. Ocheger explained that

strengthening of ties between Uganda and

Nigeria was very important for economic

growth and development. The high commissioner

said Uganda’s visa regime was very friendly and

seamless to attract more investors and visitors to

the country.

“We now encourage applicants to do it online and

you are given a code which you can present at any

port of arrival as long as you have met all the

requirements.

“However, we are looking at piloting visa on arrival

for holders of

Evy

diplomatic,

Maffini

official and service

passports.

“Once that succeeds, we hope to roll it to all the

sections of the population who are eligible to visit

Uganda.

“We also have business visa for investors which is

processed on a case by case basis,” he said.

Ocheger said Uganda offers several investment

opportunities in areas such as agro-business,

tourism, value addition for minerals, infrastructure,

energy and information communication

technology. He said the country enjoys a favourable

economic environment, excellent fiscal and

monetary policies, political stability, skilled

workforce and good security.

The high commissioner said Uganda also offers both

local and regional market for investors being a

dominant player in the East African bloc.

Uganda Operates a PSC that Guarantees ROI to Investors - Dozith

Dozith Abeinomugisha, Director

Petroleum Refining, Conversion,

Transmission and Storage of

Petroleum Authority of Uganda (PAU) has

affirmed that Uganda operates a

Production Sharing Contract (PSC) that

guarantees Return of Investment (ROI) to

Investors.

Abeinomugisha noted that the Petroleum

Authority of Uganda is the regulator for the

oil and gas industry in Uganda.

He said PAU was established as a statutory

body under section 9 of the Petroleum

( E x p l o ra t i o n , D e v e l o p m e n t , a n d

Production) Act 2013, and has been in

existence since 2015.

"Our vision is to be leading Petroleum

Regulatory Agency. And, our mission is to

regulate and monitor the petroleum sector

to create lasting value for society and

contribute to Uganda as an investment

destination.

"Our mandate is to monitor and regulate

the exploration, development ad

production, together with the refining, gas

conversion, transportation, and storage of

petroleum in Uganda.

"We manage the licensees on exploration

and production programs, including

development strategies to ensure the

resources are properly managed.

"Uganda operates a production sharing

contract that offers an enabling

environment for investors to invest their

money with the expected ROI.

"We document the natural resources such

as the reserves. We produce these

documents as an annual report which we

usually submit to the minister and

parliament which will enable the people to

access it through the parliament".

Uganda is a very beautiful country with a

fragile ecosystem and biodiversity. PAU

provides the tools for the co-existence of

the environment and biodiversity with the

frameworks.

PAU ensures the safety of human life and

assets as well as social protection. While the

Government of Uganda review and approve

licensees budget; review and approve

procurement processes; ensure the

profitability of projects and secure

Government take; establish sectoral

economic linkages in Agriculture,

M a n u fa c t u r i n g , H e a l t h , To u r i s m ,

Transportation, etc..

PAU manages the National Petroleum Data

of Uganda such as the geoscientific,

engineering costs, national content, among

others.

57

OIL AND GAS REPUBLIC I SPECIAL EDITION


UGANDA OIL AND GAS

Uganda is Positioning as One of Africa's Top Energy

Destinations - NJ Ayuk

NJ Ayuk, CEO of Centurion Law

Group, a pan-African legal and

advisory conglomerate, has said

that Uganda is Positioning as One of

Africa's Top Energy Destinations and has

emerged as a formidable oil and gas

competitor over the years.

Ayuk made this known during an exclusive

i nterview w i t h U ga n d a M o n i tor

publication, said that with the current oil

and gas reserves, enabling regulation and a

proactive national oil company that

prioritises local participation, inclusivity,

and capacity building, the country is

positioning itself as a force to reckon with.

He explained that projects such as the East

African Crude Oil Pipeline (EACOP), and

Joint Ventures partnerships with regional

actors, local companies will be enablers of

driving successful economic growth,

creating investment opportunities in

Uganda's oil and gas industry.

"Uganda's pragmatic, steadfast and

progressive leadership, in conjunction with

its commendable regulatory environment,

has elevated the country to hydrocarbon

success.

"We must remember that energy poverty

isn't a Uganda issue but a continental

reality. Our approach to combating energy

poverty must start by addressing Uganda's

resources, political will, and willingness to

create an active local business sector.

"We must consider the percentage of

people that are without electricity, it only

makes sense to harness Africa's abundant

gas resources to alleviate this problem.

"Natural gas, affordable and abundant in

Africa, has the power to spark significant

job creation and capacity-building

opportunities, economic diversification

and growth.

“Uganda must also bank on all forms of

energy to address its shortfall in energy

production and distribution. The focus

should be on those resources to which they

have easy and affordable access.”

Speaking further, he added, "By promoting

the role of women, local companies, and

enabling regulation, as well as showcasing

the abundant opportunities present in the

sector, Uganda will and can drive

investment and regional collaboration,

further positioning the country as one of

Africa's top energy destinations."

NJ Ayuk, CEO of Centurion Law Group, a pan-African legal and advisory conglomerate

He recalled that The ministry has placed a focus

on domestic capacity building through the

emphasis of women inclusivity, local company

participation, and the transfer of skills from

international oil companies to local companies.

According to him,p rojects such as EACOP

present the unique opportunity for local

companies to actively participate in the

country's oil and gas sector, not just as

commission agents, but as active participants.

NJ Ayuk's experience includes advising major

companies on investment strategies, the

establishment of joint ventures and

cooperation structures, privatisation, licensing

and related tax matters, OHADA - a system of

corporate law and implementing institutions

adopted by 17 West and Central African

nations.

He is active in the structuring, negotiation, and

implementation of petroleum, mining,

Liquefied Natural Gas, and other natural

resource projects for leading private operators

in Equatorial Guinea, South Sudan, Uganda,

Angola, Congo-Brazzaville, Nigeria, and

Senegal.

Mr Ayuk, an influential oil and gas lawyer, has

authored several books about the oil and gas

industry in Africa, including the Amazon and

Wall Street Journal bestselling book "Billions at

Play: The Future of African Energy and Doing

Deals."

Speaking further on the challenges facing the

energy sector in Africa and possible ways to

address these issues, Ayuk noted that there is a

need to develop gas-to-power infrastructure

which will increase access to affordable energy

for all sectors of the economy, offering massive

knock-on benefits and making it easier to do

business.

"Reducing lead times to limit risk premiums put

on long-cycle projects will further bolster the

industry's viability and growth prospects. It will

not be easy, but these reforms are necessary.

"Finally, implementing programmes like local

content, economic diversification that support

natural gas value chains, making fiscal terms

competitive, and reducing red tape and

streamlining regulatory processes must be

priorities for the future.”

He stressed that across Africa, access to power

has been hampered by the lack of access to

competitive funding, the dire state of the

continent's utility infrastructure, and the need

for energy policy and legislation to be adopted

to boost investment in the sector.

He added, "Post Covid-19, new solutions are

urgently needed to address Africa's power crisis

and switch on a continent-wide strategy for its

recovery.

"Such solutions must take into account the

energy transition, the focus on smart power

technologies and cost-effective solutions, and

the global drive towards a decentralized,

decarbonized, and securing energy supply that

addresses climate change and stimulates

economic growth."

58

OIL AND GAS REPUBLIC I SPECIAL EDITION


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