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.

With large-scale projects aimed at producing 12.5 million tons of green hydrogen (https://apo-opa.co/3WHhjte) annually by 2035, Mauritania is positioning itself to capture up to 1.5% of the global green hydrogen market by 2050. Last year, business management consultant Conjuncta, in partnership with renewable energy producer Infinity Power, signed an agreement (https://apo-opa.co/3YmDvdh) with Mauritania’s Ministry of Petroleum, Mines and Energy to produce up to eight million tons of green hydrogen per year for international markets. 

As the company progresses with large-scale green hydrogen developments in Mauritania, Conjuncta CEO Prof. Stefan Liebing’s participation as a speaker during this year’s MSGBC Oil, Gas&Power 2024 conference and exhibition (https://apo-opa.co/4dksKwn) – taking place in Dakar from December 3-4 – is poised to shine a light on the country’s burgeoning green hydrogen market. During the conference, Liebing is expected to outline ongoing projects while sharing insight into the strategic potential of the country’s green hydrogen market. 

Explore opportunities, foster partnerships and stay at the forefront of the MSGBC region’s oil, gas and power sector. Visit www.MSGBCOilGasandPower.com to secure your participation at the MSGBC Oil, Gas&Power conference. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com. 

In its first phase, Conjuncta’s $34-billion green hydrogen project will have an electrolysis capacity of 400 MW and is expected to start operations by 2028. The plant, which will be situated near Nouakchott, will feature an electrolyzer capacity of up to 10 GW and will convert clean energy into green hydrogen, ammonia and other fuels for export to international markets. Overall, the project will provide jobs to nearly 3,000 workers during the construction phase and up to 1,000 workers when operational. 

Determined to play a significant role in improving energy access across Africa while boosting socioeconomic development and creating much-needed jobs, Conjuncta was established in 2004 and has been a major project development and investment firm on the continent. Prof. Liebing has held various management positions from companies in the oil and gas sector throughout his career and currently serves as the Chairman of foreign trade association the German-African Business Association. 

“Conjuncta’s unparalleled dedication to green hydrogen development in Mauritania is set to drive energy diversification, environmental sustainability and economic development while creating long-term prosperity for the country. Green hydrogen production is important for Mauritania as it aligns with the country’s goals and we look forward to Professor Liebing’s discussions on fast-tracking its development during this year’s conference,” said Energy Capital&Power Event and Project Director Sandra Jeque. 

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

Angola – a major oil and gas producer for several decades – has a strong oil and gas infrastructure foundation comprising logistics bases, fabrication yards, maritime terminals, refining facilities, pipelines and more. This foundation has not only positioned the country as one of Africa’s biggest producers – with output measuring 1.1 million barrels per day (bpd) – but will in turn support the development of new concessions as Angola promotes exploration across both on- and offshore acreage.

During the Angola Oil&Gas (AOG) pre-conference technical program – taking place ahead of the main event on October 1 – market intelligence firm S&P Global Commodity Insights will unpack infrastructure-led exploration in Angola. Justin Cochrane, the company’s Head of African Upstream Regional Research Team, will lead a workshop entitled Driving Infrastructure-Led Exploration: How to Ensure Every Drop is Recovered.

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.

While oil is the mainstay of the Angolan economy, production has been declining at a rate of 15% per year due to mature oilfields and reduced investment. To address this, the government has implemented a series of regulatory measures to entice new players to join the upstream market, including the introduction of a six-year licensing round which offers a total of 55 blocks for exploration. To date, 26 blocks have been awarded and a strong slate of E&P firms have entered the country. At present, 11 blocks are available on permanent offer, five marginal fields are open while four onshore blocks are ready for investment. The country’s 2025 limited tender will make ten blocks available, set to be launched in Q1 next year.

Beyond new concessions, Angola’s efforts to bring on additional reserves is underpinned by an incremental production initiative. Through new incentives and fiscal policies, the initiative aims to expand enhanced recovery at producing blocks, and progress is already being made. In May 2024, energy major ExxonMobil made a discovery at the Likembe-01 research well located in the Kizomba B development area in Block 15. The well fell within the scope of preliminary agreements under the incremental production initiative. Following the signing into law, the initiative is expected to further bolster output across the country’s producing blocks.

In line with the AOG 2024 theme – Driving Exploration and Development Towards Increased Production in Angola – the S&P Global Commodity Insights workshop will provide vital insights into infrastructure-led exploration – a key strategy for maximizing resource recovery and extending the viability of existing developments. The workshop will support IOCs, regulators, independent E&P firms and more as they drive exploration across the country.

Attendees will walk away with a comprehensive understanding of why infrastructure-led exploration is important, how it can add value to a development and the factors that would encourage infrastructure-led exploration. Additionally, the workshop will help attendees identify common misconceptions related to the deployment of infrastructure-led exploration, potential limitations and growth opportunities. 

Don’t miss this opportunity to gain strategic insights from industry expert Justin Cochrane and explore the potential of Infrastructure Led Exploration. To register for the workshop and the AOG conference, visit https://apo-opa.co/46nba8I or contact us at sales@energycapitalpower.com. Access the pre-conference technical program here https://apo-opa.co/3A1O4bP.

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