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Tag: Shell

  • Feature: Oil Companies Still Have Vital Role to Play in African Energy

    Feature: Oil Companies Still Have Vital Role to Play in African Energy

    …These companies are validating the African Energy Chamber’s (AEC’s) long-held assertion that the African continent represents the next frontier for energy exploration and production

    By NJ Ayuk

    Behind every discovery, final investment decision (FID), and first oil announcement in our continent are companies of all sizes, advancing our energy industry and bringing Africans closer to realizing the energy security and prosperity that their petroleum resources represent. 

    Collectively, these companies are validating the African Energy Chamber’s (AEC’s) long-held assertion that the African continent represents the next frontier for energy exploration and production. 

    Despite concerns over corporate divestment from the African oil and gas sector in recent years — moves made largely in an effort to conform to expanding global ESG expectations — international oil companies (IOCs) and African national oil companies (NOCs) continue to be the key driving forces behind Africa’ short-term supplies, hydrocarbon potential, medium-term production, and spending. 

    As detailed in the African Energy Chamber’s (AEC) newly released report, “The State of African Energy 2024 Outlook,” NOCs collectively hold the continent’s largest working interest share of African hydrocarbon potential and supplies due to their involvement in upstream operations while IOCs hold the second largest share from their legacy operations in both North and sub-Saharan Africa. 

    But we are also seeing increased activity by international NOCs (INOCs) and independent companies in Africa. These entities are also contributing to the overall success of Africa’s fossil fuel industry. 

    National Oil Companies in Leading Roles
    As our new outlook report explains, we expect African NOC flow rates to reach approximately 2.63 million barrels per day (bpd) of liquids and 13.55 billion cubic feet per day (Bcf/d) of gas in 2023. In 2024, while we expect NOCs’ total liquid product to drop to 2.57 bpd of liquids, we are forecasting a significant increase in their natural gas production: to 14.17 Bcf/d. 

    Of all the NOCs operating across Africa, the efforts of just four amount to the lion’s share of the total supply. Estimates predict that, together, Sonatrach of Algeria, Angola’s Sonangol, Libya’s National Oil Corporation, and the Nigerian National Petroleum Corporation (NNPC) will be responsible for 85% of liquids and 88% of natural gas produced by African NOCs between 2023 and 2024. 

    The prominence of oil and gas production in the nations that these NOCs represent is due in part to an open and cooperative approach to development and a commitment to progress shared between them. 

    In September 2023, having failed to meet its OPEC quota and contending with a decline in production, the NNPC announced a substantial reduction of its standard contract negotiation period from three years to just six months. Formalizing the new terms in an agreement signed with oil majors Shell, Chevron, Eni, ExxonMobil, and TotalEnergies, the NNPC hopes they will help expedite foreign investment in Nigeria’s hydrocarbon sector. With $13.5 billion secured at present, Nigeria aims to reach a production level of 2.1 million bpd by December of next year.

    Amidst the Angolan oil and gas industry’s return to a more prosperous position, which this year saw the nation outpace Nigeria, taking the top spot among Africa’s largest oil producers, Sonangol brokered a deal with the China National Chemical Engineering Company (CNCEC) outlining the development of a refinery in Lobito. With a projected production rate of 200,000 bpd and a slated completion date in 2026, the refinery should eventually reduce Angola’s reliance on imports for gasoline and diesel.

    In Algeria, Sonatrach has been working with Italian multinational energy company Eni on natural gas production and the export of liquefied natural gas (LNG) to Europe. Since signing a Memoranda of Intent in January of this year outlining future joint projects, including upstream decarbonization and energy transition initiatives, the two companies have made progress on these efforts, meeting in Algiers as recently as October 2023 to discuss fugitive gas emission detection and flaring-down options at Sonatrach’s natural gas fields. 

    Other recent developments include the Memorandum of Understanding established between Norway’s largest oil and gas producer, Equinor, and Libya’s NOC. The agreement includes plans to evaluate Libya’s maritime region in the Mediterranean for its oil and gas potential and extend oil and gas sector training to local personnel. 

    Oil Majors Advancing Exploration
    In March of this year, in partnership with Shell and QatarEnergy, Namibia’s national petroleum corporation, Namcor, publicized a third oil discovery in the Jonker 1-X well in the Orange Basin off Namibia’s southern shore, adding to the sizeable discoveries made by Shell and France’s TotalEnergies in the Graff-1X and Venus-1X wells in 2022. Namibia expects to see first oil from these finds by 2030. 

    At the Angola Oil and Gas 2023 conference and exhibition in September, Melissa Bond, Managing Director for ExxonMobil Angola reported 18 new discoveries in Block 15 and plans for further drilling in the Namib Basin next year.

    Numerous oil and natural gas discoveries in West Africa continue to show great promise as well. Considering just the BP-Kosmos Yakaar-Teranga discovery in Senegal, BP and Kosmos’ Orca discovery in Mauritania, and Eni’s Bailene discovery off the Ivory Coast amount to 3.6 billion barrels of oil equivalent, with additional sites in Ghana, Gabon, and Angola, this region is an exploration hot spot.

    As exploration is crucial to sustainability for Africa’s oil and gas industry, the AEC is pleased to report active exploratory drilling schedules over the next two years, with oil majors operating in Algeria, Egypt, Nigeria, and Namibia as the main drivers behind these efforts.

    Filling Voids and Capitalizing on Opportunities
    Where international corporate divestment from Africa’s oil industry is occurring, smaller players are taking up the slack. 

    Whether under public pressure to decrease emissions and focus on sustainable development goals or stakeholder pressure to sell off mature fields in pursuit of higher returns, as oil and gas majors pull away from portions of their operations, INOCs and wholly independent entities remain eager to take over where they left off. 

    By taking on ventures like the re-development of declining wells to boost production, these smaller companies are helping to satisfy the increasing global demand for fossil fuels while offering continued support to host communities facing the perils of abandonment otherwise, and their cumulative efforts add up to a significant percentage of Africa’s energy economy. 

    As documented in our 2024 outlook report, the 24-month period of 2023-2024 will see INOCs like Equinor, PetroChina, the China National Petroleum Corporation (CNPC), and several more responsible for three-quarters of all INOC liquids output in Africa. In the same time frame, we project that independents like the APA Corporation, Marathon Oil, Wintershall DEA, Perenco, Seplat Energy, Tullow, and ConocoPhillips will collectively produce the third-highest natural gas output. 

    As the AEC continues to advocate for a thriving African energy industry and encourage investment in our continent — just as we encourage every hydrocarbon-bearing African nation to engage in uncomplicated, mutually beneficial trade negotiations — our own optimism grows. 

    For the AEC, each outlook report we publish indicates that the African oil and gas industry is secure, strengthening with time, and well on its way to becoming an invaluable asset to the global energy market. 

    NJ Ayuk is the Executive Chairman of African Energy Chamber 

  • Africa Energy Week 2022: Nigerian Energy Accelerator partners Moneda Invest Africa and National Oil Company of Namibia [Namcor] on Local Content Development and Energy Financing

    Africa Energy Week 2022: Nigerian Energy Accelerator partners Moneda Invest Africa and National Oil Company of Namibia [Namcor] on Local Content Development and Energy Financing

    “Moneda (https://MonedaInvest.com/) is proud to be part of an elite list of companies bringing African solutions to African problems. Working with partners like the African Energy Chamber, the markets can be assured that there will be more to come” said Ejike Egbuagu.

    This Year’s Africa Energy Week where Moneda Invest featured as the Platinum Sponsor for African Content, was held at the V&A Waterfront South Africa, and just concluded with a signed agreement between Moneda Invest Africa and National Oil Company of Namibia [Namcor]. The two major energy investment organisations have agreed to this partnership to exchange

    expertise and accelerate knowledge-sharing and skills development, while exposing the Namibia oil and gas industry to massive investment, and it was signed in the presence of NJ Ayuk, the Executive Chairman of the African Energy Chamber [AEC].

    Moneda Invest Africa is a Nigerian Financial Institution with profound experience in local content and competitive markets development and financing in Africa, with arguably an unmatched portfolio working with major energy juggernauts like TotalEnergies, Shell, Chevron and Nigerian Petroleum Development Company Limited, and will, in this partnership, be providing at least 10 local companies (selected by Namcor) access to capital with the sole objective of augmenting various oil and gas segments in Namibia. These include Petroleum products supply, drilling and well services, health safety, marine logistics, reservoir engineering, land and offshore seismic surveys, training and several others.

    As Namibia seeks to accelerate the development of its vast hydrocarbon reserves, it is believed that her partnering with Moneda Invest Africa will be pivotal to securing needed funding to augment upstream, midstream and downstream activities. Namcor will in turn deliver regulatory and administrative support in order to ensure a seamless operation for Moneda Invest Africa across Namibia’s oil and gas industry. The three-year partnership is projected to be an impetus for activating the full potential of the country’s oil and gas industry. 

    Undisputedly, the African Energy Chamber is in support of collaborations such as this geared towards the growth of the African Energy Industry and we at Moneda Invest Africa strongly believe that this partnership is just the beginning of a complete evolution of the continent’s energy industry and we look forward to signing more deals in the future that will position Africa to be the leading continent for energy industry innovations.

  • Collective Responsibility can end HIV Transmission – Wigwe

    Collective Responsibility can end HIV Transmission – Wigwe

    Dr. Herbert Wigwe, Group Managing Director, Access Bank Plc says ending HIV in Nigeria is possible when Nigerians take responsibility collectively.

    Wigwe said this at the launch of 100 million dollars HIV Trust Fund of Nigeria in Abuja.

    He urged the private sector to rise up to the occasion by working in collaboration with the government in area of ownership in sustaining the HIV response.

    “However, the original emergency Plan to fight AIDS must transform into a Sustained Response that prevents new infections and ensures those on treatment stay on treatment.

    “The era of sustainability demands that Africans take responsibility and ownership for the end of AIDS in Africa,” he said.

    Wigwe who said that Nigeria currently had the third largest HIV epidemic statistics worldwide, said over 80 per cent of the funding had been mainly from international donors.

    According to him, the Nigerian private sector currently contributes about 2% of total funds allocated to HIV.

    He urged the private sector to collectively join hands in the ownership of the funding to eradicate HIV in Nigeria, asserting the readiness of Access bank to support an improved health system.

    “Access Bank is not known for complacency. We are known for our drive for financial and economic growth, for leadership in national health issues.

    “Particularly the national response to COVID, and we are known for our commitment to sustainability, especially relating to strengthening our national health system.

    “With less than half of people living with HIV having access to treatment or adequate care, Access Bank partnered with other private sector organizations here from the Nigerian Business Coalition Against AIDS (NiBUCAA)

    “To educate our staff, raise public awareness, and support individuals living with HIV/AIDS.”

    Wigwe explained that the bank had also conceived of this national HIV Trustfund, as a N50 billion private sector-led mechanism to pool our resources to provide significant sustainable inputs required to scale up the impact of the AIDS response in Nigeria.

    He expressed the commitment of Access bank and other private sectors to ensuring that mothers were tested and drugs provided to end mother-to-child transmission.

    Alhaji Aliko Dangote, Chairman, Dangote Group said that it was a collective responsibility of all to bring the number of persons living with HIV to zero.

    Dangote said that the money to be realised in the launch would be channeled to getting all pregnant tested and treated.

    He called on the private sector to work with the public sector at equal frequency in to end HIV in Nigeria.

    Mr Osagie Okunbor, Managing Director, Shell pledged commitment of Shell to the funding to ending HIV in Nigeria. (NAN)

  • Ogilvy Africa announces a new leadership team in Zambia

    Ogilvy Africa announces a new leadership team in Zambia

    Ogilvy Africa has announced a new leadership team for its agency in Lusaka, Zambia. The move aims to further its network by strengthening its market leadership and operations in Zambia.

    The new line-up includes the appointment of country business and creative leads. Ethel Kandiwo joins as Deputy Managing Partner to run the office, while Ibrahim Musoke has been appointed Creative Director. Both Ethel and Ibrahim will work closely with Ogilvy’s Africa leadership team to deliver world-class competencies in the country.

    Speaking on the appointments, Ogilvy Africa CEO, Vikas Mehta said “Zambia is one of our smallest operations in Africa, but one of our fastest-growing. We’re making a step-change in our approach to Zambia as a priority market, and the new leadership team represents just that. Under Ethel and Ibrahim’s leadership, we look forward to bringing the best of Ogilvy to the market in communication, content, experience, PR & Influence, and media to our clients.”

    Ethel is a Marketing expert with over 14 years’ experience in the media and advertising industry. She has a strong record of creating and delivering effective, high-impact content and communications programs for some of Zambia’s most renowned brands in sectors such as Telecommunications, Insurance, Banking & Finance, Mining, Agriculture, FMCG as well as the Not for Profit sector. She brings in nearly a decade-and-a-half in experience having worked across industry verticals and brands with companies such as Black Dot and Giraffe Creatives.

    “I am very excited about my new role and very eager to roll up my sleeves as I take up more responsibilities. I am very passionate about what I do and I look forward to great teamwork and support from my colleagues” Said Ethel.

    In her new role, Ethel will be responsible for leading the agency’s teams across disciplines and growing the network’s presence in the market by partnering existing and new clients.

    As Creative Director, Ibrahim Musoke will have creative oversight of all the creative work from conception, implementation, and development of strategies for the various clients across the agency in Zambia.

    “My life has always emulated art, I value quality and I hope to inspire my colleagues through my leadership. I believe anything is possible if you put your mind to it. I look forward to developing great campaigns that will inspire many and work with the team to grow the Ogilvy Africa brand in Zambia”

    Ibrahim has worked for a decade in art, advertising, photography, multimedia design and animation. Over the years, he’s worked on several brands for companies including Airtel, Barclays, Coca-Cola, Diageo, Equity Bank, RwandAir, Shell and Sheraton. Through his experience, he has honed his skills, learned from his peers and role models and has grown from an Artist to Designer to Creative Director. He is passionate about teamwork and takes every challenge as an opportunity to exceed expectations.