The new Force Commander for the African Union Transition Mission in Somalia (ATMIS), Lt. Gen. Sam Kavuma from Uganda, arrived in Mogadishu yesterday to assume his duties.

Lt. Gen. Kavuma takes over from Lt. Gen. Sam Okiding, who left the mission in April following his appointment as Deputy Chief of Uganda People’s Defence Forces (UPDF).

On arrival on Sunday, Lt. Gen. Kavuma was officially welcomed with a guard of honour at the ATMIS Force Headquarters, mounted by the ATMIS Uganda contingent.

He then met with the Head of ATMIS Ambassador Mohamed El-Amine Souef and the Senior leadership team at the Mission Headquarters.

Later, he received a briefing from senior ATMIS military officers led by the Deputy Force Commander in charge of Support and Logistics, Maj. Gen. Peter Muteti. During the meeting, he was briefed on the security situation in Somalia and the progress made in implementing the mission mandate.

“The Federal Government of Somalia (FGS) and international partners have worked collaboratively towards the progress we see today. The achievements made so far are remarkable, and we will continue to support the FGS to ensure Al-Shabaab is degraded, peace prevails, and the Somalis can engage in the development of their country without fear,” said Lt. Gen. Kavuma.

Lt. Gen. Kavuma joined the Uganda People’s Defence Forces (UPDF) in the early 1980s and has held several senior positions leading up to his appointment as ATMIS Force Commander.

At different times in his military career, he has served as Division Commander, Deputy Air Force Commander, and Deputy Commander Land Forces in Uganda.

Prior to his appointment, he was a Parliamentarian representing the military in Uganda’s Parliament and Deputy Chief Coordinator of Uganda’s national wealth-creation programme.

Lt. Gen. Kavuma has extensive experience in peacekeeping operations, having served as commander of the Uganda contingent of the African Union Mission in Somalia (AMISOM) from October 2014 to November 2016.

He also served in the Central African Republic as commander of the African Union-authorised Regional Taskforce deployed to hunt down the Lord’s Resistance Army insurgency group.

Previously, he oversaw operations in South Sudan, the Democratic Republic of Congo, and Uganda.

He has completed several professional training programmes, including military courses. He holds a Bachelor of Arts degree in International Relations and Diplomacy. He has recently completed a Master’s in National Security Studies at Cavendish University in Uganda. He is a committed lecturer who has contributed significantly to military education by teaching in various military colleges and training schools throughout his career.

Distributed by APO Group on behalf of African Union Transition Mission in Somalia (ATMIS).

“Today, I feel like the happiest person in the world,” said a student at Agok Primary School in Kuac East County, expressing the collective joy of more than 2,000 fellow pupils.

Their euphoria was prompted by the recent renovation of their now glorious-looking home of learning, funded by the United Nations Mission in South Sudan (UNMISS) through its Quick Impact Projects Programme.

Among other significant improvements of the building, refurbished in partnership with the local implementing partner Food Insecurity Reduction Organization, pupils and teachers alike now have unlimited access to two newly constructed toilets.

Residents in the area think that the much-upgraded school sends a symbolic signal of support to the wider community.

“We used to believe that we were alone and without any support in our remote location, but not anymore. Now, we feel lucky to be able to provide our children with an education in a decent structure. As women, we also have the chance to pursue learning after finishing our household chores,” said Angela Nyandeng, a women’s representative from the Mathiangdit community.

James Madut, a dedicated schoolteacher, was equally happy about the positive development, but also pointed out that learning takes more than classrooms and a staff office.

“We urgently need more teachers to guarantee that all students receive quality education. As you can see, we are currently severely understaffed,” he explained.

According to Marco Guot, Executive Director of the Food Insecurity Reduction Organization, the school renovation project has also empowered women.

“We are dedicated to allocating funds to hire more women, thus allowing them to become more self-sufficient and reduce the risk of them becoming subject to domestic violence,” he said.

On his part, Adewuyi Adewumi, Acting Head of the UNMISS Field Office in Kuajok, stressed the long-term vision of initiatives supporting education.

“We stand committed to assisting the government and the people of South Sudan in their journey toward lasting peace. By prioritizing schooling for all, we are laying the groundwork for the emergence of future leaders in the country.”

Distributed by APO Group on behalf of United Nations Mission in South Sudan (UNMISS).

Following a string of offshore oil and gas discoveries made between 2022 and 2024, Namibia’s Orange Basin has garnered substantial interest from IOCs and independent exploration and production (E&P) firms. Largely considered one of the world’s hottest frontier oil plays, the country plans to produce first oil by 2030, joining the likes of Angola as a major African oil producer.

Namibia’s Minister of Energy and Mines Tom Alweendo will speak at the Angola Oil&Gas (AOG) conference this October. His participation reflects the country’s commitment to leveraging regional collaboration to boost oil and gas development and aligns closely with Angola and Namibia’s shared goals of Driving Exploration and Development Towards Increased Production – the theme of AOG 2024. During the event, Minister Alweendo will provide an update on exploration endeavors in Namibia while drawing insight into future investment opportunities and areas for collaboration.

AOG is the largest oil and gas event in Angola. Taking place with the full support of the Ministry of Mineral Resources, Oil and Gas; national oil company Sonangol; the National Oil, Gas and Biofuels Agency; the African Energy Chamber; and the Petroleum Derivatives Regulatory Institute, the event is a platform to sign deals and advance Angola’s oil and gas industry. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.

Since play-opening discoveries were made in the Orange Basin in 2022 by energy majors Shell (Graff-1) and TotalEnergies (Venus-1), a number of companies have entered Namibia’s upstream market in the hopes of delivering similar finds. Canadian oil and gas exploration company Sintana Energy secured a stake in two blocks in the Orange Basin in June 2024 through its acquisition of a 49% interest in private Namibian company Giraffe Energy Investments. Petroleum refineries corporation Chevron signed a deal for an 80% operating interest in PEL 82 while Azule Energy – Angola’s largest independent equity producers of oil – farmed-in to Block 2914A in PEL 85. Meanwhile, Shell and oil and natural gas conglomerate ExxonMobil are evaluating bids for a stake in energy corporation Galp’s Mopane oilfield – boasting up to 10 billion barrels of oil equivalent.

These developments follow discoveries made at the Mangetti-1X well in February 2024; the Mopane-1X well in January 2024; the Lesedi-1X well in July 2023; and the Jonker-1X well in March 2023. Shell’s Graff-1X, La Rona and Jonker-1X wells could contain as much as 1.7 billion barrels of oil equivalent while TotalEnergies’ Venus-1X project could contain as much as three billion barrels – making it sub-Saharan Africa’s largest discovery. With these, Namibia is on track to become a major oil and gas producer while demonstrating its commitment to fast-tracking developments, with a focus on offshore projects.

In this sense, Namibia stands to learn a lot from neighboring Angola, which has significant experience in developing deepwater oil and gas projects. Up to 75% of Angola’s crude is produced offshore, primarily from the Cabinda field and deepwater fields in the Lower Congo Basin. Going forward, deep and ultra-deepwater projects will continue to be at the forefront of efforts to maintain production above one million barrels per day. Major projects include the Kaminho development in Block 20/11 – the first large deepwater development in the Kwanza Basin, comprising the Cameia and Golfinho fields – and the Agogo Integrated West Hub Development in Block 15/06. Set to come online in 2028 and 2026, respectively, the projects serve as a benchmark for emerging deepwater developments in Namibia.

Onshore, various companies are making strides towards uncovering commercial deposits in the country. Oil and gas company ReconAfrica spud the Naingopo exploration well at PEL 73 in July 2024, targeting 163 million barrels of oil. The well is the first of a multi-well campaign, with the second to be drilled by Q4 this year. Additionally, in July 2024, exploration company 88 Energy launched a 2D seismic acquisition program for PEL 93 in the Owambo Basin, onshore Namibia, aimed at determining untapped deposits.

During the AOG 2024 conference, Minister Alweendo will participate in a ministerial panel exploring regional trade and integration. His participation is expected to create new pathways for cross-border collaboration and will be instrumental in strengthening cooperation around oil and gas exploration and production in Africa.  

Distributed by APO Group on behalf of Energy Capital&Power.

By NJ Ayuk, Executive Chairman, African Energy Chamber (www.EnergyChamber.org).

Nigeria, a previous bright spot on big oil and gas investors’ radar screens, has dimmed substantially as investor attention is increasingly drawn to new and emerging developments in Namibia, Ivory Coast, Angola, and the Republic of Congo.

With two-thirds or more of its revenue coming from oil, investor flight is a serious problem for Nigeria.

Divestments: The Reasons and the Buyers

Big foreign players, including TotalEnergies and Shell, are exiting or shifting their priorities in Nigeria, rattled by a variety of deleterious forces: an uninviting regulatory environment, lack of transparency, safety issues, vandalism, and theft, among other factors.

For a country whose economy is dependent on fossil fuels, this divestment by majors, totaling around £17 billion since 2006, is catastrophic. Nigeria’s 37 trillion barrels of reserves can do the country no good underground.

Among those looking to pull out of the country, at least in part, is France’s TotalEnergies. The company is seeking to sell its share of Shell Petroleum Development Company of Nigeria, Limited (SPDC), although it will continue to have 18% of its investments in Nigeria.

TotalEnergies CEO Patrick Pouyanne says (https://apo-opa.co/3A2CNbe) his company hasn’t explored for oil in Nigeria for 12 years, explaining, “There is always a new legislature in Nigeria about a new petroleum law. When you have such permanent debates, it’s difficult for investors looking for long-term structure to know what direction to go.”

TotalEnergies’ stance highlights the obvious — investors want predictable environments and simple, trustworthy systems of regulation. A dearth of these factors seems to have trumped the fact that Nigeria yet contains large reserves that could be tapped.

Five global oil companies are still working in the country, but three of those — Shell, Eni, and ExxonMobil — are selling in-country assets valued at £1.8 billion, £4 billion, and £11.9 billion, respectively.

Both Shell and Eni have stated an intent to continue operating in Nigeria’s offshore sector, and ExxonMobil has expressed a commitment to continued investment in Nigeria.

Nigerian companies such as Seplat, Aiteo, and Eroton have moved quickly to buy divested assets. So has the Nigerian government, which has been named top bidder for 57 oilfields and granted licenses to 130 firms for development.

I am pleased to see indigenous companies seizing these opportunities created by divestments. I also urge them to take serious measures to control emissions and limit flaring, as large international firms have. In doing so, they will be taking care of their own families, neighbors, friends, and fellow citizens, while building top-notch reputations.

Large or small companies — Nigeria must never choose one or the other. International oil companies, national oil companies, independents, and indigenous companies all have important roles to play in Nigeria’s economic growth.

Where the Investments Are Going

As I said, Ivory Coast, Namibia, the Republic of Congo, and Angola are drawing investors’ attention away from Nigeria.

Shell is pursuing deepwater blocks in Ivory Coast for exploration, while large Italian firm Eni has just added offshore Block CI-205 to its vast Murene Bailene discovery of 2021. Production from the Baleine discovery has shot Ivory Coast’s production to 30,000 barrels per day (bpd), a number that is expected to rise an astonishing 556% to 200,000 bpd by 2027.

All of this is happening while Ivory Coast is successfully emphasizing carbon-reducing technologies and natural gas as a transition fuel.

Overseas investment has also spurred significant recent discoveries in Namibia, earning the country the nickname, “new Guyana.” (That South American country’s crude oil production soared by a yearly average of 98,000 bpd from 2020 to 2023, making Guyana the third-fastest growing non-OPEC oil-producing country.)

Notable among recent Namibian discoveries is TotalEnergies’ Venus Discovery, for which the French major is seeking approval to move ahead by the close of 2025. Venus is expected to produce up to 180,000 bpd of oil.

TotalEnergies is also looking to invest $600 million in exploration and production in the Republic of Congo’s Moho Nord deep offshore field this year. As I have said before, this kind of investment is evidence that the company is in the Republic of Congo to stay.

Angola, too, has become a major investment site for TotalEnergies. The firm’s CEO has said (https://apo-opa.co/3A2CNbe) it will invest $6 billion in energy in Angola, as “a country with a more stable policy framework.”

Nigerian Reforms and Rules Changes

March 2024 brought some much-needed federal policy reforms to Nigeria’s petroleum industry in the form of presidential executive orders and policy directives. The reforms are aimed at improving the country’s investment environment and reinvigorating growth in its petroleum industry.

The changes include investor tax credits, an investment allowance, simplifying contracting procedures, and easing local content rules.

The tax credits apply to non-associated gas greenfields — that is, new ventures — both onshore and in shallow water and vary according to hydrocarbon liquids (HCL) content. The credit becomes an allowance after 10 years, making it an ongoing investment incentive.

A 25% investment allowance has also been added for qualified capital expenditures (QCEs) on plants and equipment, cutting down on large capital outlays and thus encouraging industry growth and improvement. 

Changes in third-party contracting aim to decrease both contracting costs and the time it takes for companies to get to production. The new rules encompass financial approval thresholds, consent timelines, and contract duration.  The requirements call for only one level of approval at each contract stage and establish time limits for completion of approvals.

Local content requirements have also been modified to take local capacity into account, enabling investors to keep their projects cost competitive.

Overall, the executive orders help clear up the regulatory fog that has been discouraging major investment and will hopefully help the country regain its status among investors.

The Economy and the New Licensing Round

It’s been estimated that Nigeria requires USD 25 billion of investment per year to keep its production at 2 million bpd — a level that will sustain the nation’s economy. Historically, 2014 marked the peak of investment in Nigerian oil at USD 22.1 billion.

The federal government is strategizing for increased oil production to meet this fiscal need in an environment where vandals have attacked pipelines and stolen oil — factors the government has claimed as reasons it has fallen short of its 1.5 million bpd OPEC quota. (Though not by much: for example, production in March 2024 declined from 1.47 million bpd to 1.45 million bpd, according to S&P Global Commodity Insights.)

Looking to improve those figures in the remainder of 2024, the government’s target is 1.78 million bpd. Although recent problems on the Trans Niger Pipeline and maintenance by oil companies have dropped output, President Bola Tinubu expects a return to target levels.

By using every available well to increase production and revenue, the government aspires to increase crude production to 2.6 million bpd by 2027.

In April 2024, Nigeria began a new oil and gas licensing round, with an attached promise to investors that the process would be transparent. The new round is intended to help stem the flow of investments to African competitors like Angola and Namibia by easing the process of acquiring oil blocks.

The new licensing round offers 19 onshore and deepwater oil blocks, plus an additional 17 deep offshore blocks. These were chosen for their attractiveness to foreign investors who have both the necessary finances and technical savvy to develop the areas.

Successful bidders will be held to precise exploration timelines.

Bidding had begun on seven offshore blocks in 2022 but was delayed for the installation of a new government — just the sort of shaky situation large foreign investors like to avoid.

With that experience in mind, Nigeria must work tirelessly to mitigate not only government instability, but other factors that discourage investment, be they regulatory hurdles, lack of transparency, or safety and security issues.

Distributed by APO Group on behalf of African Energy Chamber.