TERepublic November Issue 2021
A Special Edition focused on the opportunities in Uganda oil and gas industry, as the country has moved into Commercialisation, Oil and Gas Production.
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.
13
OIL AND GAS REPUBLIC I SPECIAL EDITION
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
14
OIL AND GAS REPUBLIC I SPECIAL EDITION
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."
15
OIL AND GAS REPUBLIC I SPECIAL EDITION
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.
16
OIL AND GAS REPUBLIC I SPECIAL EDITION
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).
17
OIL AND GAS REPUBLIC I SPECIAL EDITION
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.
18
OIL AND GAS REPUBLIC I SPECIAL EDITION
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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OIL AND GAS REPUBLIC I SPECIAL EDITION
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.
20 22
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AFRICAN ENERGY STORIES
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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AFRICAN ENERGY STORIES
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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OIL AND GAS REPUBLIC I SPECIAL EDITION
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
25
OIL AND GAS REPUBLIC I SPECIAL EDITION
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.
26
OIL AND GAS REPUBLIC I SPECIAL EDITION
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
TOP STORY
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
48
OIL AND GAS REPUBLIC I SPECIAL EDITION
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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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OIL AND GAS REPUBLIC I SPECIAL EDITION
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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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OIL AND GAS REPUBLIC I SPECIAL EDITION
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.
55
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.
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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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