The Energy Republic February - March Edition 2023

AFRICAN ENERGY STORIES
Angola intends to leverage on its future refining capacity to posi on itself as a regional supply hub, with several pipelines in discussions with its
neighbours, including Zambia. Further north, a strategic investment decision is expected in Uganda where the 60,000 bpd Albert Graben
Refinery needs to reach FID if it is to be commissioned on me to process domes c oil in 2025.
Sustainability Ma ers
However, Africa must also put its downstream industry on the path of sustainability and ensure that exis ng and new facili es can meet
increasingly stringent clean fuels requirements. This cannot be done without costly upgrades, many of which are deemed uneconomical by
refiners.
“We es mate that $16bn is required to modernise and upgrade refining facili es in Africa, including Naptha Hydrotreater (NHdT), Diesel
Hydro-desulphurisa on (DHDS), Benzene Extrac on and Sulphur & Hydrogen units,” says Anibor Kragha, Execu ve Secretary at the African
Refiners and Distributors Associa on (ARDA).
The ability of African refineries to restructure their debt and raise fresh capital will dictate their future and their role in the African energy
transi on. In that regard, 2023 will be an important year for some of the con nent’s oldest facili es like Gabon’s SOGARA or Cameroon’s
SONARA that are both in need of restructuring. Meanwhile, other well-established refineries have already embarked on moderniza on plans,
including Côte d'Ivoire’s SIR Refinery, Senegal’s SAR Refinery, and Congo’s CORAF Refinery.
“The sustainability of African refining infrastructure will not only depend on the refineries’ capacity to produce cleaner fuels for consumers, but
also on their overall environmental footprint. In that regard, quick gains can be made with the installa on of solar PV and improvement in water
treatment systems, which we expect to start seeing on the con nent this year,” concluded Souheil Abboud.
Libya To Launch Oil And Gas Licensing Round By 2024
Libya, is preparing to launch oil and
gas licensing round by the year
2 0 2 4 , L i b ya ’s state-run o i l
company chief said at just concluded
CERAWeek 2023 in Houston, Texas, USA.
If Libya successfully manage to hold a
licensing round next year, it would be its
first in nearly two decades, and would
help Libya reach its produc on goal of 2
million barrels per day within the next
three years.
OPEC data showed in its latest Monthly
Oil Market Report that Libya’s crude oil
produc on in January fell to 1.148 million
bpd, a er averaging 1.153 million bpd in
the fourth quarter of last year.
A report by the African Energy Chamber
last month said that Libya's crude oil
produc on capacity could reach a
maximum of 1.8 million bpd by 2024. And
that's even if Libya sees poli cal stability
and dual government clashes come to an
end. S ll, the Libyan Government of
Na onal Unity insists that the country
could produce as much as 3 million bpd
within two to three years.
Libya has made some progress in paving
the way for boos ng gas produc on,
including signing an $8 billion offshore
gas deal with Eni,
Libya's NOC chief Ben Guadara
and Eni's and BP's explora on drilling plans in
the Ghadames and Sirte basins—with offshore
drilling planned for next year.
Libya's NOC chief Ben Guadara is adamant that
the Eni deal is "just the first step in a long way
for more and more investment."
Guadara also spoke of a possible LNG
liquefac on plant and a gas pipeline to Egypt
with e-ins to the Idku facility and Damie a
terminals, Argus said.
Libya’s gas output is currently at 1.3 billion
cubic feet per day, with just 250 million cubic
feet per day of it able to be exported through
the 775 million cubic feet per day Greenstream
pipeline, as much of the gas must go to fulfill
Libya’s own domes c gas needs.
According to Sta sta report, the oil and natural
gas industry is a significant economic contributor
in Libya. The country developed a strong oil
sector a er major oil discoveries in the late
1950s.
In recent years, despite the fluctua ng oil
produc on due to the wars and COVID-19, Libya’s
economy has remained heavily reliant on the oil
industry, which is the main source of income in
the country.
In 2020, oil revenue accounted for over 50
percent of the Libyan GDP, the largest share in
Africa. Although to a lesser extent, Libya’s
economy also profits from the gas sector, as the
country is the fourth natural gas producer on the
African con nent.
In addi on, oil and gas resources largely
contribute to Libya's export trade. Mineral fuels,
including oil and natural gas, were the leading
products exported in 2021, represen ng over 95
percent of the exports.
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OIL AND GAS REPUBLIC I SPECIAL EDITION