The Energy Republic February Edition 2022

AFRICAN ENERGY STORIES
African Energy Chamber Releases Q1 2022 Oil
and Gas Outlook
The Outlook provides an overview of
anticipated trends within the oil and gas
sector and how factors including past
and future regulatory changes, mergers and
acquisitions, licensing and exploration and
production activities are shaping the market.
The African Energy Chamber (AEC), is proud to
announce the release of the AEC Q1 2022
Outlook, “The State of African Energy” – a
comprehensive report analyzing the trends
shaping both the global and African oil and gas
market in 2022. Providing a detailed view of
both the global and African oil and gas
landscape, the report will be critical for
hydrocarbon stakeholders looking at the
expansion, collaboration, and monetization of
resources in 2022 and beyond.
The report covers global market forecasts and
supply trends focused on oil and gas exploration
activities in Africa through an overview of the
continent’s oil and gas sector including the
impact of COVID-19 variants, their effect on
upstream investment and developments since
Q4 2021; as well as updates on mergers and
acquisitions and Africa’s regulatory landscape.
On the global market front, the report details
price and demand trends, in which key
highlights include how brent benchmark is
rallying towards $80-per barrel as oil and gas
demand and consumption increases to reach
pre-pandemic levels in the next 12 months and
the 5% increase in oil production at global scale
that is anticipated resulting in oil and
condensate output slightly growing over 2021
levels.
At the same time, 2022 supply levels on a
month-on-month basis are expected to be
above 8% of the global crude oil plus
condensate volumes.
Meanwhile, on the African market front, the
outlook provides a detailed understanding of
the continent’s top producers.
Nigeria, Libya, Algeria, Angola and Egypt are
expected to remain Africa’s top five oil
producers with Nigeria dominating, boasting an
annual average production capacity of 1.46
million barrels of crude oil per day (MMbbls/d)
and 1.72 MMbbls/d of crude oil plus
condensate. What’s more, the report
showcases how natural reductions in legacy oil
projects and outages resulting from accidents
and natural disasters in Africa will hinder oil
market growth. Yet, despite this, demand and
supply is expected to surpass 2020 levels.
At the same time, the report investigates
natural gas trends in Africa.
Notably, that Algeria, Egypt and Nigeria
will remain the top three natural gas
producers and provide 80% of the natural
gas flows anticipated across Africa in
2022; a decrease in the number of fields
that supply feedgas for liquefied natural
gas exports and a decline in annual capital
expenditure, which will disrupt growth
within the African gas landscape.
The report also provides insight into
Africa’s exploration market, detailing
how the results of 14 exploration
initiatives conducted are expected and
some nine high-impact wells are set for
drilling in 2022, resulting in an increase in
Africa’s oil and gas production capacity.
“We are delighted to announce the
launch of our State of African Energy Q1
Outlook 2022 which analyzes global and
African oil and gas trends,” state NJ Ayuk,
Executive Chairman of the AEC, adding
that, “The increase in oil and gas demand
provides an opportunity for African
producers to play an important role in
meeting global energy consumption and
to leverage their energy resources for
economic growth whilst addressing
domestic and continental energy woes.”
Meanwhile, the report goes one step
further, providing commentary on
mergers and acquisitions as well as
Africa’s regulatory landscape. With
A f r i c a n g o v e r n m e n t s m a k i n g
considerable efforts to reform their
energy sectors and introducing marketdriven
policies to spur investment, the
report showcases the achievements and
future objectives outlined by African
stakeholders.
Notably, key highlights include majors such as
TotalEnergies, Shell, bp and ExxonMobil
exiting some West African operations due to
the high-cost associated with the operations
of deep-water projects and the high emission
rates of projects.
As majors exit, indigenous entities will take
over portfolios. In addition, the passing of the
Petroleum Industry Bill into the Petroleum
Industry Act in 2021 by the Nigerian
government after 14 years of legislative
standstill is expected to provide clarity for oil
and gas market players wanting to enter or
expand footprint within the country’s
landscape.
“While inadequate funding continues to
refrain market growth, the need for African
countries to adopt innovative business
models and policies that would help them
attract more capital in an ever-increasing
competitive environment has been made
clear.
“This is also when out-of-the-box solutions
such as the proposed African Energy Bank
would come into play in helping African
producers increase energy investments and
reduce reliance on international investors
even for marginal projects. We have to make
energy poverty history while using carbon
capture technologies to reduce GHG
emissions in oil and gas projects,” concludes
Ayuk.
To get your copy of our State of
African Energy Q1 Outlook 2022,
e m a i l A m i n a W i l l i a m s o n
amina.williams@energychamber.org
or visit energychamber.org for more
information.
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OIL AND GAS REPUBLIC I SPECIAL EDITION