By NJ Ayuk, Executive Chairman, African Energy Chamber (https://EnergyChamber.org).

The Nigerian government needs to step up its game regarding approvals for indigenous companies acquiring in-country foreign energy assets.

The negative consequences of approval delays, ranging from many months to two-plus years, include forfeited revenue from lost royalties and taxes, production shortfalls, investor discouragement, and safety issues that arise while maintenance is put on hold.

The government approval process has stymied several of these potential deals over the past couple of years. These puzzling delays raise questions about why they are happening, as well as how serious officials are about increasing energy production to help Nigeria’s economy and its people.

There is a crying need for a new level of efficiency, timeliness, and openness in the approval process to give a fair shake to domestic energy players. Without it, the country’s economy and its citizens have the most to lose. The government can and must do better than this to keep its oil industry competitive, profitable, and safe.

Chappal Energies: Unlocking Latent Resources

In July 2024 TotalEnergies EP Nigeria sold to Chappal Energies its 10% interest in the SPDC JV licenses in Nigeria for 860 million USD. These assets produce a lot of beautiful low carbon from gas from OML 23, OML 28 and OML 77.

In late 2023, Norway’s state-owned Equinor agreed to sell its Nigerian business, Nigeria Energy Company (ENEC), to Nigerian homegrown firm, Chappal Energies. The sale includes the unitized 20.21% interest Chevron operates in the country’s deepwater Agbami oil field, which has produced over 1 billion barrels of oil for Equinor since 1992.

Equinor has said it expects Chappal Energies will continue development of its long-held assets in Nigeria, to the betterment of the country’s economy. Chappal is optimistic, too, with its managing director, Ufoma Immanuel, expecting positive effects on both the environment and the community.

Chappal has just the sort of attitude and drive Nigeria needs in its indigenous petroleum businesses, having stated that it is intent on “unlocking latent value in Nigeria’s and Africa’s oil and gas resources.”

The sale can only close after specified conditions and all regulatory and contractual approvals are finished. These are still pending.

Oando: Doubling its State Partnership Stake

In the early fall of 2023, in line with the Eni 2023-2026 Plan, Italian supermajor Eni agreed to sell Nigerian Agip Oil Company Ltd (NAOC) to Oando, a Nigerian stock exchange-listed provider of energy solutions.

Eni’s plan includes an effort to divest itself of resources that offer value and opportunity to other owners.

NAOC concentrates on producing onshore Nigerian oil and gas and on generating power. Its Nigerian holdings include interests in four onshore blocks, two power plants, and two onshore exploration leases. Besides these assets in the Niger River Delta, the deal includes an interest in the Brass River oil terminal.

Overall, the agreement means that Oando can double its interest in NAOC JV, the partnership it has with the state, to 40%, and increase its reserves to over 1 billion barrels of oil equivalent (boe).

Oando’s CEO, Wale Tinubu, sees the purchase as being “in alignment” with his company’s strategy of “acquiring, enhancing, appraising, and efficiently developing reserves.”

Closing the sale depends on authorization of all the relevant local and regulatory authorities — a process that is still ongoing nearly a year after the agreement was reached. There has been some talk of a approvals set to happen soon.

Renaissance: Making a Large Onshore Investment

In January 2024, Shell agreed to sell Shell Petroleum Development Co. of Nigeria Limited (SPDC), its Nigerian onshore subsidiary, to Renaissance, an association made up of five Nigerian exploration and production companies (ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, and The Waltersmith Group) plus an international energy group (Petrolin Limited). The firms agreed to a sales price of USD 1.3 billion.

All of SPDC’s operating capabilities and staff are to be maintained in the transaction, including technical expertise, management systems, and processes.

Describing Renaissance as “an experienced, ambitious Nigerian-led consortium,” Shell says the sale is part of its plan to concentrate its own Nigerian investment in deepwater and integrated gas.

With the bulk of Nigeria’s liquefied natural gas (LNG) feed gas coming from SPDC, it is important that Shell has agreed to play a supportive role after the sale so that all goes smoothly.

The sale cannot close until approvals from Nigeria’s federal government and other conditions are met.

Seplat: Securing a Long-Awaited Approval

There is, fortunately, one slow-moving approval story that has recently been resolved. On June 14, 2024, Arise News reported that NNPC has withdrawn its court case objecting to the ExxonMobil/Seplat deal, clearing a path for ExxonMobil to sell its entire interest in Mobil Producing Nigeria Unlimited to Seplat Energy.

Nigerian President Bola Tinubu had met with Liam Mallon, head of ExxonMobil, and members of the Ministers of Petroleum two months earlier, asking that officials remove barriers to approval.

The USD 1.28 billion deal was first greenlighted over two years ago by the parties, but politics and legalities hindered the sale from closing. The deal will turn over the U.S. company’s shallow-water OMLs 67, 68, 70, and 104 to Seplat and allow it to benefit from stakes in the Bonny River and Qua Iboe terminals and natural gas liquids recovery plants.

All of ExxonMobil’s offshore shallow-water operations are included in the agreement — the effect of which is to create a major independent Nigerian energy company. The upshot is that the sale is a very significant opportunity for the country to increase its daily crude production by 700,000 or more barrels.

The approvals process became gridlocked just months after the agreement was made when the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) cited an “overriding national interest,” and state-owned NNPC sued ExxonMobil.

Earlier this year, NUPRC tried to hasten regulatory approval for the sale, when NUPRC’s chief executive, Gbenga Komolafe, revisited a list of conditions that must be met for divestment.

Komolafe invited the parties involved to a May meeting and stated that, hinging on the results of the meeting, approval might be given within two weeks.

A signed settlement agreement resulted, with Komolafe, emphasizing the issues of decommissioning, host community development, and environmental remediation.

The terms of the agreement include increasing NNPC’s interest in the four OMLs from 60% to 70%, decreasing Seplat’s interest from 40% to 30%, while Seplat will gain a 10% interest in UTM Offshore’s floating LNG project.

Komalfe stated his unwillingness that Nigeria carry financial burdens resulting from divesting entities continuing to operate assets in the country.

Other issues that have been raised are:  

While waiting on approvals, divestors naturally don’t want to further invest further in these assets.
Production can decline while approvals are stalled.

Tinubu has asked ExxonMobil for suggestions on improving Nigeria’s oil and gas investment environment.

Step Up Approvals, for Nigeria’s Sake

President Tinubu’s efforts to bring together various parties around the ideas of stability, transparency, and an even playing field hold much promise for the role of Nigerian oil companies in increasing domestic production.

Delays in approvals for these companies’ acquisitions cripple the ability of these Nigerian companies to benefit their country. And that, after all, should be a goal that government regulators and homegrown petroleum firms share.

Distributed by APO Group on behalf of African Energy Chamber.

The Kenyan Marine Commando Unit (KMCU) has taken part in action-packed training exercises delivered by the UK Royal Marines, as part of a visit to Kenya by HMS LANCASTER, a British Royal Navy Frigate. 

After Royal Marines from 42 Commando delivered training and practical demonstrations, Kenyan Marines-in-the-making took on the challenge of completing visit, board, search, and seizure exercises – tactics frequently used to counter piracy, terrorism, and smuggling.

These exercises are in addition to the basic training that the KMCU receive and show the UK and Kenya’s continued commitment to build a strong, capable, and adaptable Kenya Defence Forces as an anchor of regional stability and security. 

The creation of the KMCU is a five-year partnership between the UK and Kenya to establish a self-sustaining training cycle through which the Kenyan Navy will be able to train their own Marine Commandos. 

The KMCU made history in May 2023 when the first-ever cohort of Kenyan Marines completed a rigorous training programme which largely mirrors that undertaken by the Royal Marines. 

The US Military have also played an integral role in the creation of the KCMU by ensuring this specialist and formidable force are equipped to the highest standard. 

British High Commissioner to Kenya, Neil Wigan, said: 

It’s fantastic to see that the UK and Kenya have taken advantage of this opportunity to add serious value to the Kenyan Marines training programme – a great example of how our security partnership is making a real difference to Kenya’s military capacity and capability. Together, we’re going far – making Kenya, the UK, and the region safer and more secure.

Commander Chris Sharp Royal Navy, Commanding Officer HMS Lancaster (Port): 

HMS Lancaster’s visit to Kenya is a fantastic opportunity for Lancaster’s Royal Marines to train and exercise boarding operations with the Kenyan Marine Commando Unit, contributing to the UK and Kenya’s joint commitment to improve regional stability and security.

HMS LANCASTER visited the Port of Mombasa for a short operational break from patrols and as part of Combined Task Force 150, where it has recently conducted drug busts and completed other maritime security serials. It will then return to her long-standing presence in the Gulf region, focussed on promoting peace and stability. Her visit to Mombasa provides an opportunity to demonstrate the close, historic relationship between the UK and Kenyan Armed Forces. 

The UK-Kenya Strategic Partnership is an ambitious five-year agreement delivering mutual benefits for the UK and Kenya and keeping our people safe; it is underpinned by the Defence Cooperation Agreement that provides the framework for this training programme. 

Distributed by APO Group on behalf of British High Commission Nairobi.

Oil and gas company Trident Energy secured agreements in April with multinational energy corporations Chevron and TotalEnergies to acquire stakes in oil fields in the Republic of the Congo. The company will gain a 31.5% operated interest in the Moho-Bilondo, Nkossa and Nsoko II fields and a 15.75% working interest in the Lianzi field. Trident Energy has also acquired an additional 53.5% stake in the Nkossa and Nsoko II fields from TotalEnergies, bringing its stake in the fields to 85%. The acquisitions align with Trident Energy’s commitment to boost production in Africa.  

In an effort to affirm its investment in African energy, Trident Energy has joined the African Energy Week (AEW): Invest in African Energy 2024 conference as a bronze sponsor. Scheduled for November 4-8 in Cape Town, AEW: Invest in African Energy 2024 will bring together investors, developers and industry leaders to discuss and advance opportunities in Africa’s energy sector. Trident Energy’s return to the conference reflects its commitment to developing energy projects in Africa.  

AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event. 

Trident Energy’s entry into the Republic of the Congo’s market is set to enhance the production efficiency of the fields it has acquired and create substantial value from its assets. With proven crude oil reserves reaching 1.8 billion barrels, the Republic of the Congo possesses immense resource potential for economic growth. Trident Energy’s strategic acquisitions and redevelopment efforts are poised to unlock this potential, driving increased production, generating job opportunities and contributing to the country’s economic stability and sustainable development. 

In addition to its operations in the Republic of the Congo, Trident Energy is actively engaged in Equatorial Guinea. Here, the company has partnered with Kosmos Energy on the Ceiba and Okume Complex, in which it currently operates Block G and holds stakes in Blocks S, W, and EG-21. The company has undertaken redevelopment efforts in Equatorial Guinea to optimize production and extend the life of the assets, contributing to the country’s oil output. Trident Energy’s strategic approach includes enhancing production efficiency and leveraging advanced technologies to maximize asset value.  

The company recently welcomed offshore drilling contractor Noble Corporation’s Noble Venturer drillship for a new drilling campaign offshore Equatorial Guinea, which was launched last November and is expected to begin Q3/Q4 2024. This campaign will include two infill wells at the Ceiba and Okume Complex fields in shallow and deepwater, before moving to Block S – operated by Kosmos Energy – for an exploration well. The Akeng Deep ILX well at Block S aims to test a play in the Albian, targeting an estimated gross mean resource of around 180 million barrels of oil near existing infrastructure at Block G. The drilling campaign is estimated to last 150 days.  

“Trident Energy’s approach to revitalizing mature oil and gas fields is exactly what Africa needs to increase production and ensure energy security. By strategically increasing its stakes in key assets, Trident Energy is accelerating production and maximizing the value of these fields. The company’s commitment to sustainable practices is vital for extending the longevity of these assets, ensuring that they contribute to Africa’s energy needs for years to come,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. 

Returning to AEW: Invest in African Energy 2024, Trident Energy will showcase its ongoing and future projects across African markets. The company will also seek to build new connections and explore opportunities for expansion by engaging with key stakeholders and African leaders at the conference. 

Distributed by APO Group on behalf of African Energy Chamber.

Turkish Cooperation and Coordination Agency (TİKA) has renovated and reopened the patient care ward at the Wassila Bourguiba Obstetrics and Gynecology Hospital in Tunisia

Turkish Ambassador to Tunisia, Ahmet Misbah Demircan; Director of Public Health at the Tunisian Ministry of Health, Tarek Ben Nasr; TİKA’s Coordinator in Tunisia, Ali Fuat Cebeci, Tunisian officials and hospital staff attended the opening ceremony at the Wassila Bourguiba Obstetrics and Gynecology Hospital, the country’s first full-fledged maternity hospital in the capital, Tunis.

After the opening ceremony, Ambassador Demircan expressed his pleasure in contributing to a hospital that primarily serves women and children.

Tunisian Director of Public Health Ben Nasr stated that they are happy to be part of a project that will strengthen relations between the two countries in the field of health and that such initiatives will pave the way for further collaborations in healthcare.

Ben Nasr mentioned that TİKA utilized modern medical equipment in the renovation of the patient care ward, and with the reopening of the renovated departments, the hospital will provide services in a healthier and more efficient manner.

Wassila Bourguiba Maternity and Obstetrics Hospital performs 8,000 births annually

Highlighting that the Wassila Bourguiba Gynecology and Obstetrics Hospital is the first and largest maternity hospital in the country, TİKA’s Coordinator in Tunisia Ali Fuat Cebeci mentioned that approximately 20,000 examinations and 8,000 births are performed at the hospital each year.

Cebeci mentioned that TİKA has implemented various projects in Tunisia since 2012 and noted the following:

“A significant part of the hospital’s service rooms, including the ultrasound unit, has been renovated. This project, which increases the hospital’s patient care capacity, will also ensure that hospitalized patients receive comfortable and healthy care.

We have realized many projects in the field of health in Tunisia, and we endeavor to continue our efforts to sustain these projects.”

TİKA started its activities in Tunisia in 2012 and has since implemented nearly 250 development and technical cooperation projects across various sectors such as administrative and civil infrastructure development, education, healthcare, culture and agriculture.

Distributed by APO Group on behalf of Turkish Cooperation and Coordination Agency (TIKA).