The Energy Republic February Edition 2022

More documents

Recommendations

Info

Unlocking New Opportunities InAfrican Oil & Gas Value ChainDespite the mounting pressure coming from the global energy transitionagenda, oil and gas will continue to be a fast generating asset forAfrican Continent in the next decades. African countries hold hugeenergy, oil, and gas potentials that remain untapped.Coming out of the pandemic, Africa started the year 2022 on a positive outlook,with ongoing exploration activities in frontier basins across Africa, includingShell's new oil and gas discovery in offshore Namibia and other latest updatessuch as the $10 billion Lake Albert Development in Uganda which has reachedfinal investment decision (FID) by TotalEnergies and CNOOC plus otheremerging opportunities that will be highlighted in this article.According to GlobalData’s latest report on “Sub-Saharan Africa UpstreamDevelopment Outlook 2021–2025”, it indicated that a total of 52 key crude andnatural gas projects are expected to start operations in 19 African countries.Among these, 16 represent the number of planned projects with identifieddevelopment plans (post-FID) and 36 represent the number of early-stageannounced projects that are undergoing conceptual studies and that are yet tobe approved for development (pre-FID).The report also revealed that Nigeria leads among countries with 5 projects,followed by Mozambique with 3 projects in terms of the number of planned oiland gas projects. In terms of announced projects, Nigeria leads with 16,followed by Angola with 5 projects. Shallow water terrain has the highestnumber of projects with 21, followed by onshore with 16, deepwater terrainwith 8, and ultra-deepwater terrain with 6.This article assesses the Energy Transition Agenda in Africa, Challenges andGrowth Opportunities in the African oil and gas value chain, featuringstakeholders' commentaries as well as strategies needed to be implemented inunlocking new opportunities in the African oil and gas industry.ChallengesIn a statement made known to The Energy Republic, Dr. Omar Farouk Ibrahim,Secretary-General of the African Petroleum Producers Organization (APPO)disclosed that there are three main challenges facing the African oil and gassector. These include; Infrastructure; Technology; Financing.24By Ndubuisi Micheal ObinemeFacts about African ContinentØ Global Population Growth is expected tooccur in Africa.Ø Africa is the World's Youngest Continent.Ø West Africa to experience the biggest gasto-powerproject by 2025.Ø Uganda gets local content contracts worth$600 millionØ Nigeria’s Gas Reserves reach 206.53 tcf.Ø South Sudan Launches First-Ever Oil andGas Licensing Round.Ø African Continental Free Trade Agreement(AFCFTA) commences.Ø Africa FDI inflows reach $39.8 billion in 2020.Ø Africa dominates the GECF Agenda onnatural gas .THE ENERGY REPUBLIC I SPECIAL EDITION
TOP STORYFarouk said the African government needs toput in place energy infrastructures that cutacross the continent such as pipelines for oiland gas, refineries, and petrochemicals toserve sub-regions or a cluster of countries.Speaking on technology, he said, "Our oil andgas industry is unarguably the most dependenton foreign technology. We have generallybought into the misleading belief of technologytransfer, that the developed world will transfertechnology to us. While it is possible to havetechnology transferred, it is always the archaictechnology that is transferred while the latestis kept by those who developed it, until a betterone is developed.“Africa has some of thebest scientists, technologists,and innovators in Europeand the United States.Dr. Omar Farouk Ibrahim, APPO's Secretary-Generalinvestment decision (FID), decliningproduction, regulatory risks stands as a majorchallenge and contributes to lack of investor’sconfidence in the region.Given the challenges, he said, innovativeinventions and investments will help translateAfrica’s abundant resources into shared wealthand sustain its economic development.They excel when they go there. But when theyare here, they are unable to excel."The challenge is to create the enablingenvironment for these people to excel in Africa.We also need to create the enablingenvironment for Europeans and Americans tocome and do their innovations here."The third challenge is the financing of energyprojects. God has endowed us with naturalresources and human resources. We need tocreate an enabling environment that willsupport the growth of knowledge, technology,and investment," Farouk added.Nicolas Odinuwe, Chairman of PetroleumTechnology Association of NigeriaHighlighting the challenges hindering thegrowth opportunities in Africa’s oil and gasindustry, The Chairman of PetroleumTechnology Association of Nigeria, NicolasOdinuwe said that the issues of insecurity,political instability, aging, insufficientinfrastructure, and know-how, declininginternational investment leading to a smallnumber of new projects, and lack of finalOdinuwe, stated that creating an enablingenvironment for the private sector is pivotal inunlocking new opportunities in the African oiland gas industry.He called on governments across Africa,especially the African oil and gas producingcountries to provide necessary incentives toattract private-sector investments across theentire value chain.He said, "This will trigger a massive economicrevolution, human capital development anddeepen local content across Africa.“The value chain in the oil, gas and energyindustry is such that if properly harnessed, willtransform the economy of the entirecontinent".Odinuwe pointed out that the key enabler is tocreate a collaborative ecosystem between thelocal industry stakeholders within the Subregionalongside the Africa continental freetrade Area (AfCFTA).PETAN C h airman said that the f u llimplementation of the AfCFTA will increaselocal content development, expand economicactivities across Africa, and enhance crosscontinentaltrade in a single market for people,goods, and services.However, he noted that the African ContinentalFree Trade Area Agreement (AfCFTA) will boostAfrica’s industrialization and productivity inmanufacturing, capacity building.He explained, “African market presents hugeopportunities in a range of sectors, includingthe oil and gas and there are still severalunderutilized assets in West Africa.“Improved financial and ICT services willincrease digitization, productivity, and ease oftransacting business across wider markets,encouraging the integration of supply chains,business sustainability, and entrepreneurship.“It’s a good time to invest in Africa, especially inour transition fuel, the natural gas, whichreduces emissions and we need to be exploringstrategic collaboration with local andinternational companies to help us achievemore desired results.“We are glad about some of the discoveriesmade over the past decade in Africa and evenmore proud that Nigeria is leading in key oil andnatural gas projects in the sub-region despitethe challenges. There are similar scenarios inMozambique, Equatorial Guinea, Mauritania,Tanzania."PETAN has positioned itself to lead Africa inlocal content development and exploreopportunities under the African ContinentalFree Trade Area Agreement.”According to him,“PETAN’s investmentinterest in Africa is intechnical training andhuman capacitydevelopment.“We are exploring strategic collaboration withlocal and international companies to help usachieve more desired results.“We are made up of dedicated and patrioticentrepreneurs, who reside in a difficult business25THE ENERGY REPUBLIC I SPECIAL EDITION
Page 1: THE ENERGYREPUBLICOfcial Magazine o
Page 4 and 5: INDUSTRY NEWSHuawei Unveils New ICT
Page 6 and 7: INDUSTRY NEWSTotalEnergies Wins Mar
Page 8 and 9: INDUSTRY NEWSEquinor to Stop New In
Page 10 and 11: Media PartnerTHE ENERGY REPUBLICCRE
Page 12 and 13: NIGERIA OIL AND GASPIA: A New Dawn
Page 14 and 15: NIGERIA OIL AND GASNLNG Commences P
Page 16 and 17: NIGERIA OIL AND GASand alternative
Page 19 and 20: SNEPCO INTERVIEW“Nigeria remains
Page 21 and 22: SNEPCO INTERVIEWcross-sectoral link
Page 23: MozambiqueGas & Energy Summit & Exh
Page 27 and 28: TOP STORY“While we expect output
Page 29 and 30: TOP STORYstratigraphic wells."We ha
Page 31 and 32: TOP STORYassuming we build the need
Page 34 and 35: AFRICAN ENERGY STORIESAPPO Advocate
Page 36 and 37: AFRICAN ENERGY STORIESTotalEnergies
Page 38: AFRICAN ENERGY STORIESE XC L U S I

The Energy Republic February Edition 2022

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?