The Energy Republic February Edition 2022

THE ENERGY
REPUBLIC
Ofcial Magazine of
Special Edition -
February 2022
TOP STORY
Unlocking New Opportunities
in African Oil & Gas
Value Chain
TRENDING STORIES
3TotalEnergies, CNOOC Reach $10 billion
FID on Lake Albert Development in Uganda
3AEC Releases Q1 2022 Oil and Gas Outlook
3Huawei Unveils New ICT Solutions to Enhance
Operational Excellence in Oil, Gas Sector
3Shell Reiterates Commitment to Lower
CO2 Emissions in Nigeria
SNEPCO INTERVIEW
“Nigeria Remains an Important
Part of Our Deepwater Portfolio”
- Mrs. Elohor Aiboni,
SNEPCO’s Managing
Director
I S S N 2 7 0 5 - 2 0 5 2
GECF LAUNCHES GLOBAL GAS OUTLOOK
2050: GECF, has officilly unveiled its annual
GECF Global Gas Outlook 2050 (Outlook)
APPO ADVOCATES FOR FURTHER ENGAGEMENT
ON GLOBAL ENERGY TRANSITION AGENDA: APPO
has advocated for further engagement to....

THE ENERGY REPUBLIC
CREATING GLOBAL OPPORTUNITIES
Publisher by:
Ndbest Marketing And
Consulting Limited
(MBA, MNSE, MEI)
Editorial Director
Engr. Idowu Babalola
(MBA, MNSE, MEI)
Managing Editor
Ndubuisi Micheal Obineme
Editor
Tobi Owoyimika
Legal Counsel
Barr. Jackson Olagbaju
Correspondents:
Genevieve Aningo
Ifeoma Ofole
Samson Binutiri
The Energy Republic (TER) is published by Ndbest
Marke ng & Consul ng Limited. TER provides an
in-depth analysis about the oil industry, and
opportuni es around clean energy sources such as
Natural Gas, Hydrogen, Ammonia, Solar Energy,
Wind Energy, Hydro Energy, Geothermal Energy,
Biomass Energy, among others.
EDITORIAL CONTENT
TEREPUBLIC TOP STORIES
This article asseses the challenges
and growth opportunities in Sub-
Saharan Africa oil and gas value
chain, with a spotlight on
stakeholders commentaries, while
recommending some key
strategies in unlocking the new
opportunities in the African oil
and gas industry.... PAGE 24
FRANK FANNON INTERVIEW
The African Energy Chamber spoke to
Frank Fannon, former United States
Assistant Secretary of State for Energy
Resources and current Managing Director
of Fannon Global Advisors, about the
significance of Namibia’s oil discovery.
PAGE 38
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THE ENERGY
REPUBLIC
Phone: +2348065187468
Special Edition -
February 2022
Unlocking New Opportunities
in African Oil & Gas
Value Chain
TRENDING STORIES
TOP STORY
3TotalEnergies, CNOOC Reach $10 billion
FID on Lake Albert Development in Uganda
3AEC Releases Q1 2022 Oil and Gas Outlook
3Huawei Unveils New ICT Solutions to Enhance
Operational Excellence in Oil, Gas Sector
3Shell Reiterates Commitment to Lower
CO2 Emissions in Nigeria
Ofcial Magazine of
Page 4: INDUSTRY NEWS
Page 11: NIGERIA OIL AND GAS
Page 19: SNEPCO MD INTERVIEW
Page 22: PHOTO STORIES
Page 24: TOP STORY
Page 34: AFRICAN ENERGY STORIES
SNEPCO INTERVIEW
“Nigeria Remains an Important
Part of Our Deepwater Portfolio”
- Mrs. Elohor Aiboni,
SNEPCO’s Managing
Director
I S S N 2 7 0 5 - 2 0 5 2
GECF LAUNCHES GLOBAL GAS OUTLOOK
2050: GECF, has officilly unveiled its annual
GECF Global Gas Outlook 2050 (Outlook)
APPO ADVOCATES FOR FURTHER ENGAGEMENT
ON GLOBAL ENERGY TRANSITION AGENDA: APPO
has advocated for further engagement to....

INDUSTRY NEWS
Huawei Unveils New ICT Solutions to
Boost Production, Improve Operational
Excellence in Oil, Gas Sector
TotalEnergies Wins Maritime Lease to
Develop a 3 GW+ Offshore Wind Farm in
New York and New Jersey
05 06 07
Shell to Exit Equity Partnerships Held with
Gazprom Entities
GECF Launches Global Gas Outlook 2050
The Gas Exporting Countries Forum
(GECF), the global platform of the
leading gas producing countries, has
officilly unveiled its annual GECF Global Gas
Outlook 2050 (Outlook), a comprehensive
report on the status of natural gas up to
2050.
In this sixth edition, the Outlook finds that
natural gas can become the fuel of choice in
satisfying the growing world energy needs,
addressing climate change and improving
air quality. It predicts the share of natural
gas in the energy mix will increase from
23% today to 27% by 2050.
In his overview of new-edition Outlook, HE
Eng. Mohamed Hamel, Secretary General
of the GECF, highlighted the continued
prominence of natural gas in various energy
outlooks and pathways.
HE Hamel said: “The GECF Global Gas
Outlook 2050 underscores that investment
in natural gas is critical for the stability of
global energy systems. It projects that by
2050, total upstream and midstream
investments will reach a hefty US$ 8.7
trillion.”
“Environmental policies are a key driver of
the projections contained in the Outlook. In
this context, whilst upholding that natural
gas is the cleanest of hydrocarbon fuels, the
Outlook explores the state of technologies
that will make it even cleaner.”
The GECF Global Gas Outlook 2050 is the
flagship publication of the association of 19
countries, who together represent 71% of
the world’s proven gas reserves, 43% of its
marketed production, 52% of pipeline, and
58% of LNG exports in the world.
The Outlook is based on a proprietary GECF
Global Gas Model.
The Gas Exporting Countries Forum (GECF)
is an international intergovernmental
organisation currently comprising of 19
Member Countries: Algeria, Bolivia, Egypt,
Equatorial Guinea, Iran, Libya, Nigeria,
Qatar, Russia, Trinidad and Tobago, and
Venezuela as Member Countries, and
Angola, Azerbaijan, Iraq, Malaysia,
Mozambique, Norway, Peru, and United
Arab Emirates as Observer Members.
Together, the GECF Members represent 71%
of the proven gas reserves, 43% of its
marketed production, 52% of pipeline, and
58% of LNG exports across the globe.
Established in 2008, the GECF pursues the
advancement of natural gas based on a
range of initiatives and deliverables, such as
Gas Research Institute, Global Gas Model,
Global Gas Outlook 2050, Annual Short-
Term Gas Market Report, Monthly Gas
Market Report, Special Envoys on Data and
Statistics, Data Exchange Mechanism, the
Short-, Medium-, and Long-Term Gas
Market Reviews, and Monthly, Quarterly,
and Annual Statistical Bulletins.
The GECF is headquartered in Doha, Qatar.
04
THE ENERGY REPUBLIC I SPECIAL EDITION

INDUSTRY NEWS
Huawei Unveils New ICT Solutions to
Boost Production, Enhance Operational
Excellence in Oil, Gas Sector
connected, intelligent world.
“Huawei is a leading global provider of ICT
infrastructure and smart devices, and we
provides ICT solutions and services for Oil &
Gas industry.”
In order to achieve digital transformation, oil
and gas companies and Huawei should
cooperate with each other, focus on strategic
objectives, deeply explore and optimize
different business scenarios, fully collaborate
to achieve continuous development of oil &
gas digital architectures and platforms.
Wei observed that the Nigerian oil and gas
industry has realized the urgency and value of
digital transformation.
He believes that oil and gas companies are
responsible for digital transformation, and the
success depends on the team that is pursuing it
and whether appropriate methods are found.
Mr. Li Wei, Director of Huawei Nigeria Enterprise Business
Addressing the media at a Press
Conference in the ongoing Nigeria
International Energy Summit
(NIES) 2022, Director of Huawei Nigeria
Enterprise Business, Mr. Li Wei said, the
global economy and oil market are
recovering after a historic slump caused by
the pandemic in 2020. In addition, the
trend of carbon neutrality will trigger
s t r u c t u ra l r e fo r m a n d p ro m o t e
transformation in oil & gas industry.
Facing various challenges, Oil companies
choose to increase oil & gas production
capacity at lower costs and improve
enterprise operational efficiency by
leveraging technologies including cloud
computing, big data, IoT, and AI, etc.
Therefore Digital transformation has
become the consensus in the industry.
He disclosed that based on Nigeria Oil and
Gas industry situation and pain points,
Huawei released three scenario-based ICT
solutions:
Digital Oilfield IoT for Upstream
production: using Huawei’s leading eLTE
technology to realize broadband network
coverage in oilfield areas, helping operator
obtain wellhead production data in real
time, improving O&M efficiency and
increasing single-well yield.
E&P (exploration and production) storage
for Upstream Exploration: The unified highperformance
exploration cloud and storage
platform shortens the exploration data
processing time, to find out oil quicker and
more precisely.
Intelligent Pipe monitoring for midstream:
Huawei-developed fiber vibration intrusion
warning system uses AI to identify intrusion
scenarios accurately. With high identification
precision, accurate positioning, and quick
response, helping to ensure pipeline safety and
reduce theft and vandalism.
In addition, Wei said providing high-quality ICT
solutions and services, Huawei actively
supports the Nigerian government in building a
talent ecosystem. Till now, we has signed ICT
academy agreement with over 110 Universities
and schools, trained more than 1,000
government civil servants and 40,000 young
students in Nigeria. We hopes to build a strong
talent base camp to promote Nigeria’s digital
economy development.
The Huawei Director thanked all the customers,
partners, Media, and analysts who are present
at the Press Conference.
He made it known that Huawei is ready to
collaborate with all industry players to grasp
historical opportunities, drive industry
development through digital transformation.
“We are committed to bringing digital to every
person, home, and organization for a fully
ICT technologies does not solve the direction
and strategy of digital transformation, but can
help implement the strategies effectively.
Therefore, oil & gas customers need to attach
importance to ICT construction, promote ICT
construction into the corporation strategy, set
clear objectives and directions for digital
transformation, make firm investments and
pursue implementation.
Faced with the ongoing volatility of
international oil prices, Huawei believes that
the digital transformation of Nigeria’s
upstream sector is a top priority. In response to
the strategy proposed by the Nigerian
government and oil companies, Huawei
promotes the digital oilfield IoT and E&P
storage solutions, which will help oil & gas
companies to achieve real-time visualized
production, improve production efficiency,
reduce production costs, and optimize
production resource allocation to improve
oilfield production.
In the upstream exploration field, highperformance
network and storage devices are
used to shorten the E&P data processing
period and accelerate oil search. In the
development and production phase, IoT and
AI technologies are used to monitor the
production trend of oilfields in real time,
improve production, and reduce costs while
leveraging IoT and big data technologies to
reduce the probability of theft and damage.
On the company’s success story, Huawei has
delivered multiple ICT projects in Nigeria’s oil
and gas industry, including enterprise
informatization projects such as data centers,
campus networks, and video conferences.
Huawei is also working with two oil & gas
customers to conduct digital oilfield IOT pilot
projects. One of the projects has been
completed and proved the value to the
customer. It is expected to be successfully
replicated across multiple oil and gas
customers in 2022.
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THE ENERGY REPUBLIC I SPECIAL EDITION

INDUSTRY NEWS
TotalEnergies Wins Maritime Lease to Develop a 3 GW+
Offshore Wind Farm in New York and New Jersey
TotalEnergies has successfully been
named a winner of maritime lease
area OCS-A 0538 by the BOEM
(Bureau of Ocean Energy Management) in
the New York Bight auction held end of last
week.
This bid for the development of an offshore
wind farm off the U.S. East Coast was won for
a consideration of US$ 795 million (100%) by
both TotalEnergies and EnBW.
Located up to 47 nautical miles (87
kilometers) from the coast, the lease covers
a 132 square miles (341 square kilometer)
area that could accommodate a generation
capacity of at least 3 GW, enough to provide
power to about one million homes. The
project is expected to come online by 2028.
In addition, EnBW informed TotalEnergies of
its strategic decision to refocus its activity on
Europe. In this context, TotalEnergies and
EnBW have agreed that TotalEnergies will
acquire EnBW's interest in this New York
Bight concession and will welcome within its
own staff the EnBW North America team
who has forged strong relationships with
local communities in the past few years and
will therefore continue to develop this
project. In addition, TotalEnergies will
acquire from EnBW the predevelopment
work undertaken for the upcoming auction
off the coast of Central California (Castle
Wind project).
“This grand entrance into offshore wind in
the U.S. is a major step toward our goal of
reaching 100 GW of renewable electricity
generation capacity worldwide by 2030. This
development adds another dimension to
our renewable business in the U.S., currently
representing 4 GW of solar farms under
development.
This is the largest renewable energy project
TotalEnergies has ever undertaken and we now
have a portfolio of over 10 GW of offshore wind
projects, a technology in which we aim to be a
world leader by leveraging our offshore
expertise." said Patrick Pouyanné, chairman and
CEO of TotalEnergies.
The New York Bight project is part of the U.S.
government's goal to deploy 30 GW of offshore
wind in the U.S. by 2030, in response to the global
climate challenge. Locally, it provides a concrete
answer to the growing demand for clean energy
in New York and New Jersey. Furthermore,
TotalEnergies is committed to developing the
project in a way that creates local jobs and
economic benefits for the local communities.
TotalEnergies is already developing a portfolio of
offshore wind projects with a total capacity of
more than 10 GW, of which 2/3 are bottom-fixed
and 1/3 are floating.
These projects are located in the United Kingdom
(Seagreen project, Outer Dowsing, Erebus,
ScotWind), South Korea (Bada project), Taiwan
(Yunlin project), France (Eolmed project) and the
United States (New York Bight project). The
Company has also been qualified to participate in
competitive tenders in the US, UK and France, and
will also participate in a tender in Norway.
TotalEnergies is a global multi-energy company
that produces and markets energies: oil and
biofuels, natural gas and green gases, renewables
and electricity. Our 105,000 employees are
committed to energy that is ever more
affordable, cleaner, more reliable and accessible
to as many people as possible. Active in more
than 130 countries, TotalEnergies puts
sustainable development in all its dimensions at
the heart of its projects and operations to
contribute to the well-being of people.
According to the International Energy Agency’s
Sustainable Development Scenario, renewable
energies will represent more than 35% of the
world’s energy mix in 2040. To support this
growth, TotalEnergies ambition is to achieve 100
gigawatts of installed renewable power
generation capacity by 2030, through the
development of our solar and wind energy
businesses around the world.
The world’s energy future is being shaped by the
dual challenge of climate change and rising
demand for energy. TotalEnergies ambition is to
get to net-zero emissions for all its businesses by
2050, together with society, means taking these
realities into account by investing heavily in
renewables. TotalEnergies is focusing its efforts
on the fast-growing solar, onshore wind and
offshore wind segments, leveraging the many
advantages that these abundant, clean, flexible,
efficient and competitive sources of energy have
to offer.
Getting to net-zero emissions for all its businesses
by 2050, together with society, requires
developing new industries, new activities and
cutting-edge technologies in renewable energies,
with the aim of expanding their share in our
portfolio. To achieve this, TotalEnergies is
focusing on:
3Development of large solar and onshore wind
plants
3Development of large offshore wind projects
3Distributed power generation solutions
3Stationary energy storage solutions
3Electricity solutions for our customers in
Europe
TotalEnergies goal is to expand its portfolio of
European gas and power customers from 9
million in 2020 to13 million in 2025.
06
THE ENERGY REPUBLIC I SPECIAL EDITION

INDUSTRY NEWS
Shell to Exit Equity Partnerships Held with Gazprom Entities
The Board of Shell plc has announced
its intention to exit its joint ventures
with Gazprom and related entities,
including its 27.5 percent stake in the
Sakhalin-II liquefied natural gas facility, its 50
percent stake in the Salym Petroleum
Development and the Gydan energy venture.
Shell also intends to end its involvement in
the Nord Stream 2 pipeline project.
“We are shocked by the loss of life in Ukraine,
which we deplore, resulting from a senseless
act of military aggression which threatens
European security,” said Shell’s chief
executive officer, Ben van Beurden.
Shell’s staff in Ukraine and other countries
has been working together to manage the
company’s response to the crisis locally. Shell
will also work with aid partners and
humanitarian agencies to help in the relief
effort.
“Our decision to exit is one we take with
conviction,” said van Beurden. “We cannot –
and we will not – stand by. Our immediate
focus is the safety of our people in Ukraine
and supporting our people in Russia. In
discussion with governments around the
world, we will also work through the detailed
business implications, including the
importance of secure energy supplies to
Europe and other markets, in compliance
with relevant sanctions.”
At the end of 2021, Shell had around $3
billion in non-current assets in these
ventures in Russia. We expect that the
decision to start the process of exiting joint
ventures with Gazprom and related entities
will impact the book value of Shell’s Russia
assets and lead to impairments.
Shell’s Powering Progress strategy and
financial framework remain unchanged. We
reiterate our progressive dividend policy and
intent to distribute 20-30 percent of CFFO to
shareholders in the form of dividends and
share buybacks while targeting a strong
balance sheet with long-term AA credit
metrics. We stepped up our distributions by
announcing an $8.5 billion share buyback
programme for the first half of 2022, and we
expect to increase our dividend per share by
4 percent for the first quarter of 2022.
Shell has a 50 percent interest in Salym
Petroleum Development N.V., a joint venture
with Gazprom Neft that is developing the
Salym fields in the Khanty Mansiysk
Autonomous District of western Siberia.
Shell is one of five energy companies which
have each committed to provide financing
and guarantees for up to 10% of the
estimated €9.5 billion total cost of the
project.
Chief Timipre Sylva
Ben van Beurden, Shell’s Chief Execu ve Officer
TotalEnergies Will No Longer Provide
Capital for New Projects In Russia
TotalEnergies has condemned Russia's
military aggression against Ukraine,
which has tragic consequences for the
population and threatens Europe.
TotalEnergies expresses its solidarity with the
Ukrainian people who are suffering the
consequences and with the Russian people who
will also suffer the consequences.
TotalEnergies is mobilized to provide fuel to the
Ukrainian authorities and aid to Ukrainian
refugees in Europe.
TotalEnergies supports the scope and strength
of the sanctions put in place by Europe and will
i m p l e m e n t t h e m re ga rd l e s s o f t h e
consequences (currently being assessed) on its
activities in Russia.
In a statement made know to The Energy
Republic, TotalEnergies will no longer provide
capital for new projects in Russia.
TotalEnergies is a global multi-energy company
that produces and markets energies: oil and
biofuels, natural gas and green gases,
renewables and electricity.
TotalEnergies employees are committed to
energy that is ever more affordable, cleaner,
more reliable and accessible to as many people
as possible.
Active in more than 130 countries,
TotalEnergies puts sustainable development in
all its dimensions at the heart of its projects and
operations to contribute to the well-being of
people.
TotalEnergies have been active in Russia for
more than 25 years. The company operates in
all its business segments. The company also
lead community outreach initiatives in the
country to promote education, sports and
culture.
In Russia, TotalEnergies holds a 19.4% interest
in Novatek. In addition to this, the company
have interests alongside Novatek in the
following three projects:
The Yamal LNG joint venture (20%), which
develops the resources of the South Tambey gas
and condensate field and liquefies gas in the
Yamal LNG plant.
The ZAO Terneftegas joint venture (49%), which
develops the Termokarstovoye onshore gas and
condensate field located in the Yamalo-Nenets
region.
Arctic LNG 2 (21.64%), a vast LNG project on the
Gyda peninsula, opposite the Yamal peninsula,
which will unlock oil and gas resources in the
giant onshore Utrenneye gas and condensate
field.
TotalEnergies have a 20% interest in the
onshore Kharyaga oil field, which is in
production.
The company is active in Russia through its
wholly owned affiliate Saft, which markets its
solutions in the country.
Saft specializes in the design, production and
marketing of high-tech batteries and battery
cells for industry.
07 26 21
THE ENERGY REPUBLIC I SPECIAL EDITION

INDUSTRY NEWS
Equinor to Stop New Investments into Russia, Processing
Termination of JVs Partnership
Equinor's Board of Directors has
decided to stop new investments
into Russia, and to start the process
of exiting Equinor’s Russian Joint Ventures.
“We are all deeply troubled by the invasion
of Ukraine, which represents a terrible
setback for the world, and we are thinking
of all those who are suffering because of
the military action,” says Anders Opedal,
President and CEO of Equinor.
Early this week Equinor will present a
commitment to contribute funding to the
humanitarian effort in the region.
“In the current situation, we regard our
position as untenable. We will now stop
new investments into our Russian
business, and we will start the process of
exiting our joint ventures in a manner that
is consistent with our values.
“Our top priority in this difficult situation is
the safety and security of our people,” says
Opedal.
Equinor has been in Russia for over 30
years and entered a cooperation
Anders Opedal, president and CEO of Equinor.
(Photo: Ole Jørgen Bratland / Equinor ASA)
agreement with Rosneft in 2012.
“We have employees from both Ukraine and
Russia, and we are proud of how our people
from different backgrounds and nationalities
collaborate – with mutual respect, as one team
in Equinor,” says Opedal.
Equinor has operated in compliance with
Norwegian, European Union and United States’
sanctions. Equinor maintains close contact with
the authorities in Norway, the European Union,
the United States, and other countries, and will
continue to comply with any new sanctions relevant
to our operations.
At the end of 2021 Equinor had USD 1.2 billion in
non-current assets in Russia. We expect that the
decision to start the process of exiting Joint
Ventures in Russia will impact the book value of
Equinor’s Russian assets and lead to impairments.
Russia is a major
Evy
oil
Maffini
and gas producer and has a vast
resource potential. Equinor have been present in
Russia for more than 30 years and have developed
close relationships with Russian energy companies
and communities.
Since 1996, Equinor have been a partner in the
Kharyaga oil field development in the Timan-
Pechora basin located in the Nenets Autonomous
District 60 kilometres north of the Arctic Circle.
In 2012 Equinor entered into a strategic
cooperation with Rosneft which forms the basis for
our activities in Russia. This cooperation covers
s e v e r a l p r o j e c t s i n c l u d i n g t h e N o r t h
Komsomolskoye oil field development project in
West Siberia, a pilot exploration programme to
assess the potential for commercial production
from the Domanik limestone formation in the
Samara region, and 12 exploration and production
licences in Eastern Siberia.
BP To Offload Stake In Russia’s Rostneft as CEO Resigns
from Board of Directors
The bp board has officially announced that bp
will exit its shareholding in Rosneft. bp has held
a 19.75% shareholding in Rosneft since 2013.
Additionally, bp chief executive officer Bernard
Looney is resigning from the board of Rosneft
with immediate effect. The other Rosneft
director nominated by bp, former bp group
chief executive Bob Dudley, is similarly
resigning from the board.
The resignations will require bp to change its
accounting treatment of its Rosneft
shareholding and, as a result, it expects to
report a material non-cash charge with its first
quarter 2022 results, to be reported in May.
bp chair Helge Lund said: “Russia’s attack on
Ukraine is an act of aggression which is having
tragic consequences across the region. bp has
operated in Russia for over 30 years, working
with brilliant Russian colleagues. However, this
military action represents a fundamental
change. It has led the bp board to conclude,
after a thorough process, that our involvement
with Rosneft, a state-owned enterprise, simply
cannot continue. We can no longer support bp
representatives holding a role on the Rosneft
bp chief executive officer Bernard Looney
board. The Rosneft holding is no longer aligned
with bp’s business and strategy and it is now the
board’s decision to exit bp’s shareholding in
Rosneft. The bp board believes these decisions
are in the best long-term interests of all our
shareholders.”
bp chief executive officer Bernard Looney
added: “Like so many, I have been deeply
shocked and saddened by the situation
unfolding in Ukraine and my heart goes out to
everyone affected. It has caused us to
fundamentally rethink bp’s position with
Rosneft. I am convinced that the decisions we
have taken as a board are not only the right
thing to do, but are also in the long-term
interests of bp. Our immediate priority is caring
for our great people in the region and we will do
our utmost to support them. We are also
looking at how bp can support the wider
humanitarian effort.”
Bernard Looney has been a director of Rosneft
as one of two bp-nominated directors since
2020. Bob Dudley has been a director of Rosneft
since 2013.
Impact on reporting and finances
As a result of the resignations of bp’s nominated
directors, bp has determined that it no longer
meets the criteria set out under International
Financial Reporting Standards (IFRS) for having
“significant influence” over Rosneft. bp will
therefore no longer equity account for its
interest in Rosneft, treating it now as a financial
asset measured at fair value.
This will result in two material changes to bp’s
financial reporting and finances in the results
for the first quarter of 2022.
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THE ENERGY REPUBLIC I SPECIAL EDITION

INDUSTRY NEWS
First, it is expected to give rise to a non-cash
adjusting item charge at the time of the first
quarter 2022 results, representing the
difference between the fair value of bp’s
Rosneft shareholding at 31 March 2022 and the
carrying value of the asset. At the end of 2021
this carrying value stood at around $14 billion.
Second, in addition, the change is expected to
result in non-cash adjusting item charge,
principally arising from foreign exchange losses
accumulated since 2013 that under IFRS were
previously recorded directly in equity rather
than the income statement. At the end of 2021
these totalled around $11 billion, and this
adjustment will not impact equity.
The change in accounting treatment also means
that bp will no longer recognise a share in
Rosneft’s net income, production and
reserves1. bp will no longer report Rosneft as a
separate segment from the first quarter 2022
results.
As a result of the accounting changes, and
excluding Rosneft from base year and future
periods, bp now expects:
to continue, as before, to deliver a 7-9% EBIDA
per share CAGR between 2H19/1H20 through
2025 at oil prices of $50-60 per barrel (2020
real) based on bp’s planning assumptions;
EBITDA from resilient hydrocarbons and group
to be around $2 billion lower in 2025, at around
$31 billion and $38 billion respectively.
Financial frame and distribution guidance
unchanged
As bp now is exiting its interest in Rosneft, it has
removed Rosneft dividend payments from its
financial frame.
However, bp remains confident in the flexibility
and resilience of its financial frame,
underpinned by an average 2021-25 cash
balance point of around $40 per barrel2.
This includes reaffirming the guidance
regarding its expectations for shareholder
distributions – dividends and buybacks – out to
2025 that was given with its 2021 full year
results in February 2022. This includes:
bp’s first priority within its financial frame is a
resilient dividend. At around $60 per barrel and
subject to the board’s discretion each quarter3,
bp expects to have capacity for an annual
increase in the dividend per ordinary share of
around 4% through 2025.
bp is committed to maintaining a strong
investment grade credit rating and for 2022
intends to allocate 40% of surplus cash flow to
further strengthen its balance sheet.
bp expects a $14-15 billion range for capital
expenditure in 2022, rising to $14-16 billion
between 2023-5.
For 2022, and subject to maintaining a strong
investment grade credit rating, bp is committed
to using 60% of surplus cash flow for share
buybacks. At around $60 per barrel bp expects
to be able to deliver share buybacks of around
$4.0 billion a year on average through 2025.
bp will also exit its other businesses with
Rosneft within Russia.
bp will continue to comply with all relevant
international trade rules and sanctions. It
continues to keep this situation under review.
Siemens, Desert Technologies Launch Solar And Smart
Infrastructure Platform
Siemens and Desert Technologies have
launched a joint venture to develop and
invest in solar and smart infrastructure in
Africa, the Middle East and Asia, as announced
today at Expo 2020 Dubai. The venture, Capton
Energy – which aims to build up a portfolio of
investments in projects with an aggregate capacity
of more than 1 gigawatts (GW) – will support
projects providing clean, reliable, and affordable
energy in areas that need it most.
Capton Energy (“Capton”) has its headquarters in
Dubai, the United Arab Emirates, and is led by Umer
Ahmad, who joined as chief executive and chief
investment officer in January 2022. Ahmad is a
well-known expert in the energy and infrastructure
financing industry, bringing more than 21 years’
experience as an equity investor, lender and
advisor in developed and emerging markets, having
led businesses and teams in a number of highprofile
organizations, such as Barclays, Deloitte,
SNC-Lavalin and Equitix.
Siemens, through its financing arm Siemens
Financial Services (SFS), and Saudi Arabia-based
Desert Technologies are joint shareholders in
Capton. The company will primarily target
investments in existing and greenfield solar power
projects typically in a range of 20 to 100 megawatts
(MW) of electricity generation capacity. Capton will
benefit from the partners’ ability to supply
technology and expertise to facilitate the
development of new solar facilities. The platform
will also offer third party investors the opportunity
to participate in the energy transition journey.
“Solar power plays a critical part in the global
energy transition,” said Steffen Grosse, head of
Equity Finance for SFS. “The launch of Capton sets
the stage to help drive the expansion of more
sustainable and flexible energy systems across the
Middle East, Africa and parts of Asia and we’re
looking forward to jointly building this platform
alongside Desert Technologies.”
Desert Technologies is a solar PV and smart
infrastructure holding company, focused on
manufacturing and sustainable investments.
Based in Jeddah, the company has completed more
than 40 solar projects in 22 countries.
“Solar power enables places without reliable energy
networks to leapfrog the legacy infrastructure
common in developed nations and benefit from
sustainable, clean and affordable power,” said Nour
Mousa, the founder of Desert Technologies.
“We are eager to work with Capton and Siemens to
back projects and drive positive change in line with
our ESG ideals. Such efforts to fully optimize the
potential of the sun and technologies such as
sustainable mini-grids and smart distributed energy
systems will anchor our ideals and embody positive
impact.”
“Smart infrastructure powered by the sun are the
key to sustainable development”, said Khaled
Sharbatly, Group Chief Investment Officer of Desert
Technologies and Capton’s Board Member. “Based
on the integration of renewables, storage and digital
technologies, they have the potential to change for
good every aspect of our life, acting as enablers of
new social and economic paradigms, from energy
equality to clean transportation and electric
mobility”.
Demand for solar energy is surging in the Middle
East, Africa and Asian nations with abundant
sunshine. In the Middle East alone, total installed
capacity for solar power generation more than
quadrupled from 2016 to 2020, according to data
from the International Renewable Energy Agency in
Abu Dhabi.
Efforts to bring sustainable electricity supplies to
rural areas through the use of off-grid and battery
storage systems are helping to spur this growth, as
more countries shift away from fossil fuels that
contribute to global warming.
“Capton Energy is already advanced in assembling a
pipeline of solar-themed investments and is in
progressive discussions to launch the inaugural fund
raising,” said Umer Ahmad, CEO and CIO of Capton
Energy. “With Siemens and Desert Technologies as
strategic partners, and the exceptional team we are
bringing together within Capton, we are confident
that we have the complete toolkit to bring an
optimum blend of development, investment and
technological capabilities, so we can meet the
growing needs for solar energy in our target
markets.”
09 06
22
THE ENERGY REPUBLIC I SPECIAL EDITION

Media Partner
THE ENERGY REPUBLIC
CREATING GLOBAL OPPORTUNITIES

NIGERIA OIL AND GAS
PIA: A New Dawn for Nigeria’s Oil and
Gas Industry - Sylva
Nigerian Content Fund exceeds $500m –
Simbi Wabote
12 13 14
NLNG Commences Plans for Train 8 to
Reduce Carbon Emission
President Buhari: Nigeria Energy Sector Recorded
a Milestone in 2021
Speaking at the opening ceremony of
Africa’s foremost energy industry event,
Nigeria International Energy Summit
(N.I.E.S), President Mohammadu Buhari, disclosed
that the Federal Government through the Ministry
of Petroleum Resources together with all its
Parastatals have done a great job sustaining the
summit since inception in 2018.
“This is quite commendable and something to be
proud of. More importantly, the summit has been
of great value in terms of policy input for
government and business development resource
for the private sector.”
The President said year 2021 was a milestone for
the Nigeria’s energy sector as it witnessed a
number of record-breaking activities. Three of
these activities stand out: first, the successful
conclusion of the Marginal Fields Bid Round;
second, the Petroleum Industry Act (PIA) seeing the
light of the day, and the third is the Decade of Gas
initiative.
He made it known that both the Marginal fields bid
round and the Petroleum Industry Act surmounted
over two-decade challenges in the doldrums before
they saw the light of the day. For the Decade of Gas
initiative, it holds a promise of a prosperous Nigeria
for Nigerians.
“You might ask; why would the successful
conclusion of the Marginal Fields Bid Round be such
a big deal when the world is moving away from
fossil fuels? The answer is simple; awarding the
marginal fields gives Nigeria the opportunity to
speed up its fossil fuel exploitation and make good
use of the resources for the betterment of the
country rather than abandon the huge oil and gas
reserves in the ground.”
He maintained that crude oil prices are on the rise
again after turning negative in April 2020 which is a
great opportunity for the country. With the
Petroleum Industry Act (PIA) in place, there should
be no excuses.
The enabling investment environment which has
been the bane of the industry has been taken care
of by provisions in the PIA. There is now a level of
certainty for the regulatory, administrative and
fiscal framework and the legitimate grievances of
H.E Muhammadu Buhari, President of the Federal Republic of Nigeria
host communities most impacted by activities of
the industry has been addressed by the Act.
According to the President, “to demonstrate our
seriousness, this administration did not waste time
with the implementation of PIA. We moved quickly
and scrapped the existing agencies and replaced
them with new ones. We have inaugurated their
new Chief Executives too.”
He stated further: “We also ensured the
incorporation of the Nigerian National Petroleum
Company Limited (NNPCL) under the Companies
and Allied Matters Act (CAMA). The NNPCL is a
limited liability company now and our target is to
make it the biggest, the most capitalized and the
most profitable company in the whole of Africa.”
The Decade of Gas initiative as a major objective,
remains the transformation of Nigeria into a gasbased
industrialised nation through enhanced and
accelerated gas revolution. The government will
ensure further optimal exploitation and utilization
of the country’s vast Natural Gas resources. Given
the country’s potential of about 600 trillion cubic
feet, Natural Gas has the enormous potential to
diversify and grow Nigeria’s economy.
“We are fully aware that energy transition raises the
bar in terms of environmental, social and
governance demands. We do not have to panic. We
are already building blocks and bricks that will
ensure seamless energy transition as the country
joins in the race for net zero carbon emission.”
Due to the country’s enormous gas potentials, the
President added, that the current administration
declared Natural Gas as the transition fuel for
Nigeria. Without doubt, Natural Gas ticks all the
boxes and Nigeria is prepared to face the challenge
of the rising global demand for cleaner energy
sources.
He urged the summit to develop smart home-grown
goals for the country’s energy transition.
“We are waiting to deliberate on the strategy paper
from this summit and incorporate critical parts of it
into government’s policies where necessary.”
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NIGERIA OIL AND GAS
PIA: A New Dawn for Nigeria’s Oil and Gas Industry - Sylva
The Minister of State for Petroleum
Resources, Chief Timipre Sylva,
pointed out clearly in his Keynote
address, during the 5th Edition of Nigeria
International Energy Summit (N.I.E.S) that
a new dawn has been ushered into
Nigeria’s oil and gas industry, the day
President Muhammadu Buhari signed the
Petroleum Industry Bill (PIB) into law.
According to him, it was a landmark
achievement and victory for all Nigerians.
“Before this landmark Act, Nigeria’s
petroleum industry was governed by the
Petroleum Act of 1969 and other obsolete
legislations.
“The President never concealed his desire
towards creating a more conducive
environment for growth of the sector and
addressing legitimate grievances of
communities most impacted by extractive
industries.”
The Minister added: “Let us not forget that
the PIB was introduced over two decades
ago. Despite the controversies and the
difficulties, the Buhari administration
believed that the concept, objectives and
long-term goals of the bill remained
impeccable as to warrant its efforts to rally
the legislature from different political and
ethnic divide for its passage.”
While the country was waiting for the PIA,
Nigeria’s oil and gas industry lost about $50
billion worth of investments.
H.E Timipre Sylva, Nigeria Minister of State
for Petroleum Resources
In fact, between 2015 and 2019, KPMG states
that “only 4 percent of the $70 billion
investment inflows into Africa’s oil and gas
industry came to Nigeria even though the
country is the continent’s biggest producer and
the largest reserves.”
He maintained that it is no brainer, therefore, to
see that the absence of the legal, governance,
regulatory and fiscal framework for the industry
contributed to the huge loss Nigeria has
witnessed.
However, with the assent of the PIA, President
Buhari has assured multinational oil companies
and global oil industry investment community
of adequate protection for their business
interest in Nigeria.
The nation’s energy industry is no longer
rudderless.
The PIA makes Nigeria competitive relative to other
oil and gas producing countries, especially among
its African peers.
Dissecting the PIA, the session looked at the journey
in the implementation of Act. Some aspects of the
implementation Evy may Maffini need more attention so that
the Act could deliver the expected benefits to all the
stakeholders.
Glacier makes
appointment in
Norway to grow
local business
The Minister submitted that the role of the two new
dual regulators will come under scrutiny while the
issue of the host communities will continue to elicit
frayed nerves and emotions.
“It is commendable that the PIA addressed the
relationship with host communities by creating the
Host Community Development Trust Fund (HCDTF)
to foster sustainable prosperity, provide direct
social and economic benefits from petroleum to
host communities, and enhance peaceful and
harmonious coexistence between licensees or
lessees and host communities. It may not be perfect
yet, but it is much better than where we are coming
from.”
Therefore, it is crucial for all stakeholders as well as
all arms of government to embrace the common
desire to make the PIA and its intended brief of
sanitising the oil industry a reality. It will hopefully
engender the enthronement of transparency and
openness to the sector, revolutionise the nation’s
oil sector and attract more investments to the
sector.
Why Oil Majors are Selling Assets and Leaving Nigeria — Kyari
International oil companies are leaving
Nigeria and shifting their portfolios to
where they can add value to the journey
towards carbon net-zero commitment, the group
managing director, Nigerian National Petroleum
Company (NNPC) Limited, Mele Kyari, has said.
Mr Kyari said this in a speech at the 2022 Nigerian
International Energy Summit (NIES2022) in Abuja
on Monday.
The NNPC group managing director says Nigeria
must have “the most friendly fuel” in place, while
building its ability to use renewables. Last year,
Royal Dutch Shell announced its plan to offload
onshore Nigerian oil assets in a bid to move to
cleaner energy.
It said it was discussing with the federal
government to sell its onshore oil assets in the
country. Also, Seplat Energy last week
announced it has entered into a contract with
Exxon Mobil, to buy Mobil Producing Nigeria
Unlimited’s entire oil assets in Nigeria.
H.E Timipre Sylva, Nigeria Minister of State
for Petroleum Resources
That includes all of Exxon’s entire shallow water
assets in the Niger Delta.
“Companies are divesting. They are leaving our
country. That is the best way to put it,” Mr Kyari
said.
“They are not leaving because opportunities are
not here but because companies are shifting their
portfolios where they can add value and not just
that, but where they can also add to the journey
towards carbon net-zero commitment.”
He said that transition must have sanity, and there
must be justice in the energy transition.
He said the country must have “the most friendly
fuel” in place in the next five to 10 years, while
building its ability to use renewables.
“We can’t do without financing and we also know
that there is a shortage of financing in this
respect,” he added.
“Therefore, for us in NNPC, we are here to serve
you. We are here to facilitate this process. We will
work with our partners, and of course, you are
seeing some of the consequences.
“We understand the necessity for divestment. We
do know that there are issues. We understand
that this must take place but also that it must be
done in such a way that we can deal with issues
around decommissioning and also make sure that
whatever arrangement that is put in place
ensures that we are also aligned along the energy
transition journey that we are going to.”
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THE ENERGY REPUBLIC I SPECIAL EDITION

NIGERIA OIL AND GAS
Nigerian Content Fund exceeds $500m – Wabote
The Nigerian Content Intervention (NCI)
Fund has exceeded half a billion dollars,
the Executive Secretary of the Nigerian
Content Development and Monitoring Board
(NCDMB), Engr. Simbi Wabote has said.
He spoke recently at the Sub-Saharan African
International Petroleum Conference (SAIPEC)
organised in Lagos by the Petroleum Technology
Association of Nigeria (PETAN),
He indicated that the NCI Fund which is
extended as low-cost credit to qualified oil and
gas companies covers asset acquisition, project
financing, manufacturing, working capital, loan
refinancing, women in oil and gas, and research
and development.
The NCI Fund is a component of the Nigerian
Content Development Fund (NCDF) which is
accumulated through one percent deductions
from contracts awarded in the upstream sector
of the oil and gas industry.
Wabote added that the Board is using the NCDF
to catalyse the construction of modular
refineries, gas processing plants, LPG terminals
a n d b o tt l i n g p l a n t s , L P G C y l i n d e rs
manufacturing plants, lube oil blending plants,
base oil production plant, methanol production
plant, and many others.
He canvassed that a similar fund replicated at
the continental level and be utilized to develop
huge mega oil and gas projects, particularly as
world financial institutions were getting
reluctant to finance hydrocarbon-related
projects.
He said: “let me use this opportunity to once
again canvass for the creation of an African Local
Content Fund that could be utilised to set up a
bank or finance institution to provide funding
for the development of oil and gas projects in
Africa. This is especially important against the
backdrop of the reluctance and outright
declaration by some banks and financial
institutions to stop funding of hydrocarbonrelated
projects. I hope the AFRIEXIM Bank,
AFDB, or the AU through the AFCFTA Secretariat
need to institute a form of contribution, no
matter how little, as a fund to support the
continent’s need for funds.”
He explained that “in our own case, the
deduction of one percent of every contract
awarded to any contractor, subcontractor,
alliance partner or any other entity involved in
any project, operation, activity, or transaction in
the upstream sector of the Nigeria oil and gas
industry has resulted in us having a pool of funds
to support various intervention programmes.”
Engr. Simbi Wabote, The Execu ve Secretary of the Nigerian Content Monitory and
Development Board (NCDMB)
Speaking further, the Executive Secretary
described the recent spike in crude oil
prices above $90 a barrel as an excellent
opportunity for African oil producers and
its service providers to develop new
fields, ensure security of supply and
affordability as well as increase revenue
generation.
He noted that the price of crude oil has
increased by 50 percent in 12 months and
African oil producers should use the
opportunity to also make plans towards
energy transition, and lowering the cost
of services.
Dwelling on the topic “Sub-Saharan
Africa Local Content Collaboration
Strategy,” Wabote stated that an enabling
regulatory framework backed with the
a p p ro p r i ate l e g i s l ation i s very
fundamental in Local Content practice
and commended African oil producers for
putting in place investor-friendly laws to
promote the oil and gas industry as well
as ongoing collaboration among the
countries to advance the local content
journey.
He noted that such laws will align with the
goals of the Africa Continental Free Trade
Agreement (AFCFTA) which seeks to
create the world’s largest free trade area
by integrating 1.3 billion people across 54
African countries, with the objective of
tapping into a combined Gross Domestic
Product (GDP) of over $3 trillion.
He described AFCFTA as the practice of
Local Content on the continental level,
noting that it is a huge trading and
collaboration platform for the participating
countries.
The NCDMB boss harped on the need for
African oil producers to utilize existing crossborder
infrastructures to unlock the
development of stranded assets or bring
energy closer to the people.
He mentioned that the existing West Africa
Gas Pipeline (WAGP) and ongoing AKK gas
transmission infrastructure provide a good
opportunity to serve regional markets.
He also pointed out that the SHI-MCI yard in
Lagos which is the only FPSO integration yard
infrastructure in Africa has put Nigeria at a
vantage position to serve the wider African
market.
In his remarks, the Chairman, PETAN, Mr.
Nicholas Odinuwe advocated for regional
collaboration and innovation to enhance the
future of energy sector.
He disclosed that the key enabler for the
continent is to create a collaborative
ecosystem between the local industry
stakeholders alongside the African
Continental Free Trade Area (AfCFTA).
Odinuwe encouraged governments across
Africa to provide necessary incentives to
attract private sector investments across the
entire value chain which would trigger a
massive economic revolution, human capital
development, and deepen local content
across the continent.
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NIGERIA OIL AND GAS
NLNG Commences Plans for Train 8 to Reduce
Carbon Emission
The Managing Director of the Nigeria
Liquefied Natural Gas (NLNG) Phillip
Mshelbila has said that plans are under
way to commence Train-8 which will be
different from the previous ones as the new
Train – 8 will not only address the issue of
increased capacity but will lay emphasis on the
reduction of carbon emissions.
Mshelbila who was represented by NLNG
General Manager, Production, Leye Falade at a
panel session titled ” Strategies for Confronting
Energy Transition” said that the company also
lay emphasis in the value it gets in keeping the
environment clean not only on the huge taxes
and dividend it gives to the government and
shareholders.
According to him when the company started
with providing LPG into the Nigeria Market it
started with 50,000 tons and progressively the
company has moved into the Nigerian market
about 400,000 ton last year and now had the
target to push into the domestic market about
500,000 tons.
These efforts he said is to reduce
deafforestation, reduce emission by providing
cleaner fuel as well as saving lifes.
Meanwhile, Mrs Sophia Horsfall, Manager,
Corporate Communications and Public Affairs,
NLNG, said supply of 100 per cent of its
Liquefied Petroleum Gas production (Propane
and Butane) to the Nigerian market had made a
positive impact.
She said the move, which was approved by the
company’s Board of Directors, had led to the
reduction in the prices of LPG, also known as
cooking gas , across the country.
She spoke while welcoming Chief Timipre Sylva,
Minister of State for Petroleum Resources, to
the company’s exhibition stand at the summit.
The theme of the NIES 2022, summit is
:”Revitalising the Industry: Future Fuels and
Energy Transition.”
Horsfall said prioritising the domestic market
would help to deepen gas utilisation in Nigeria
in line with the Federal Government’s
declaration of year 2021 to 2030 as the Decade
of Gas.
She noted that NLNG was currently the highest
single supplier of LPG into the domestic market,
with an estimated 400,000 metric tonnes
supplied in 2021.
NLNG General Manager, Produc on, Leye Falade
Horsfall said the NLNG Train 7 project
would also deepen gas utilisation in the
country.
She said the Train 7 project was expected
to ramp up NLNG’s production capacity
by 35 per cent from 22 million Tonnes Per
Annum (MTPA) to around 30 MTPA.
Horsfall noted that the project would
form part of the investment of over $10
billion, including the upstream scope of
the LNG value chain, thereby increasing
dividends, and taxes accruing to
government.
She said that the company was also
working on other projects to bring socioeconomic
development to its host
community and the entire nation.
The manager said that the 36km Bonny
Bodo Road Project to connect Bonny
Island and other riverine communities to
mainland Rivers State was about 56 per
cent completed.
She said NLNG had invested in hospital
projects , including the Bonny Malaria
Elimination Programme in partnership
with United States Agency for
International Development.
Horsfall said thousands of young
Nigerians had also benefited from NLNG’s
empowerment and scholarship schemes.
Nigeria’s Minister of State for Petroleum
Resources, Chief Timipre Sylva, while
speaking at the opening ceremony of the
2022 NIES, had described NLNG as a trusted
partner of the Federal Government in its
quest to maximise Nigeria’s abundant gas
resources.
NLNG has delivered over 5,000 LNG cargoes
to buyers around the world by engaging the
best production practices, earning the
company accolades as one of the most
reliable plants in the world.
NLNG is fully committed to its expansion
programme: NLNG Train 7 Project which will
increase the company's production capacity
by 35% from the current 22 Million Tonnes
Per Annum (mtpa) to 30mtpa.
This expansion will ensure that Nigeria, with
its significant gas reserves (202 tcf of proven
gas reserves, the 9th largest in the world)
remains a top, reliable and preferred supplier
of LNG in the ever-expanding energy world.
Nigeria LNG Limited (NLNG) is a major player
in the global LNG business. NLNG was
incorporated as a limited liability company on
May 17, 1989 to harness Nigeria's vast
natural gas resources and produce Liquefied
Natural Gas (LNG) and Natural Gas Liquids.
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NIGERIA OIL AND GAS
and the direction in which the government
intended to steer the industry. He stated that the
Act would aid in attracting more investment to
enable Nigeria’s gas resources develop.
“TotalEnergies is partnering with all our partners
and aligning with the government to make gas
Nigeria’s transition fuel” he said.
TotalEnergies have been active in Nigeria for more
than 60 years in oil and gas exploration and
production, natural gas liquefaction and the
marketing of products and services. The company
lead a number of community outreach initiatives
in the country, with a focus on health, road safety,
education and entrepreneurship.
Victor Bandele
Deputy Managing Director, Deepwater
District, TotalEnergies Nigeria
Our DNA is to Reduce
Carbon Footprints
The Deputy Managing Director,
Deep Water, TotalEnergies EP
Nigeria, Victor Bandele, has said
that before the global energy transition
agenda come on board, TotalEnergies DNA
was to make sure that it reduces its carbon
footprint in Nigeria.
Bandele said that over the years before the
current interest driven by climate change,
Totalenergies as a company had taken
some initiatives to ensure transition to netzero
Carbon emission in it’s operations.
He explained that the company completely
arrested routine flaring on OFON and all
the adjacent fields in 2014 which attracted
World Bank recognition.
“That was followed a couple of years later
with the Northern Option Pipeline (NOPL)
with 300 million scf of gas per day capacity
giving boost to the Alaoji power plant,
feeding the NLNG plant and now
connecting Indorama. He said the most
impressive project Nigeria had witnessed
in recent times, the 200,000 bpd Egina field
was also sanctioned on a zero routine flare
basis.
“When you look at all that, you see that we have
it in our DNA to make sure that we reduce our
carbon footprint,” the Totalenergies boss said.
Bandele gave this perspectives during a panel
session at the just concluded sixth Edition of the
sub-Saharan African International Petroleum
Exhibition and Conference organized by the
Petroleum Technology Association of Nigeria
(PETAN) in Lagos.
He therefore reaffirmed Totalenergies
commitment to attaining carbon neutrality in
its operations by the year 2050. He further
provided an update on the company’s progress
toward cleaner energy targets in the run-up to
the deadline.
According to him, TotalEnergies is investing in
all energy sources in various economies,
including oil, solar, gas, biomass, wind,
electricity, and hydrogen, in keeping with its
new profile as an energy company.
He also noted that the Petroleum Industry Act
(PIA) had clarified the budgetary parameters
TotalEnergies interests in Nigeria comprise 33 oil
mining leases (OMLs), five of which it operate and
one of which is an oil prospecting lease (OPL).
TotalEnergies operate the following OMLs:
3Onshore OML 58 (40%), which includes the
Obagi field, the Ibewa gas field and the Obite gas
processing plant.
3Offshore OML 99 (40%), which includes the
Amenam-Kpono field, and the Ikike field under
development.
3Offshore OML 100 (40%), which includes the
Odudu, Afia, Ime and Edikan fields, as well as the
floating storage and offloading (FSO) vessel Unity,
which receives all oil produced from conventional
offshore sites.
3Offshore OML 102 (40%), which includes the
Ofon field.
3Offshore OML 130 (24%), which contains the
Akpo and Egina fields.
In the field of liquefied natural gas (LNG), we have
a 15% stake in Nigeria LNG, which operates one of
the biggest natural gas liquefaction plants in the
world, located on Bonny Island on the southern tip
of Nigeria.
TotalEnergies is a broad energy company that
produces and markets energies on a global scale:
oil and biofuels, natural gas and green gases,
renewables and electricity. The company is
reinventing and diversifying its energy offering to
promote renewable and decarbonized energies,
as well as sparing, well-considered use of fossil
energies. By moving to new energies, we are also
encouraging our customers to change their
consumption habits, prefer energy efficiency and
turn to low-carbon solutions first.
TotalEnergies is also developing a portfolio of
operations across the electricity value chain to
ensure that electricity accounts for 40% of our
sales mix by 2050.
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NIGERIA OIL AND GAS
and alternative energy sources including solar and
hydrogen.”
Shell plays a key role in helping to meet the world’s
growing energy demand in economically,
environmentally and socially responsible ways.
Shell has a history of over 50 years in Nigeria and
the largest footprint of all the international oil and
gas companies operating in the country.
Shell has been active in Nigeria since 1937. Shell
companies and investments have played a
pioneering role in onshore, shallow and deep
water oil exploration and production. Shell has
also been at the forefront of gas development,
producing and delivering gas to domestic
consumers and export markets for over 40 years.
Osagie Okunbor
Country Chair of Shell Companies in Nigeria
We are Committed to Lower
CO2 Emissions in Nigeria
Nigeria’s leading energy company,
S h e l l , h a s r e i t e r a t e d i t s
commitment to supporting efforts
to help the country meet its lower carbon
emission target.
“Apart from this being the right thing to do,
it is also good for our business in Nigeria,”
Managing Director of Shell Nigeria
Exploration and Production Company
(SNEPCo), Mrs. Eloho Aiboni, said on
Tuesday in Lagos at the opening session of
the 2022 edition of the Sub-Saharan
African International Petroleum Exhibition
and Conference (SAIPEC).
Aiboni said Shell companies in Nigeria have
a clearly defined strategy to support the
country’s net zero emission target which
she said was also in alignment with the
Shell group’s ambition.
She said, “Shell companies in Nigeria are
contributing to meeting this aggressive
target by driving operational excellence of
our existing assets, generating maximum
value to secure and fund our growth and
energy transition activities, and driving
alternative energy solutions through the
Shell-seeded impact investing company,
All-On.”
She said Shell was also expanding its domestic
gas delivery network while building capability
and relevant skills in the upstream towards
energy transition.
Aiboni, who was represented by Shell’s General
Manager Business Relations, Mr. Bashir Bello,
described Shell’s gas infrastructure project in
Aba, Abia State as one of the many
contributions Shell is making to boost
industrialisation through the use of gas while
helping to cut down on carbon emission. “Our
provision of access to cleaner and stable source
of energy, through our gas pipelines, provides
electricity to the popular Ariaria International
Market in Aba which has over 37,000 shops and
an estimated one million traders,”Aiboni said.
She said Shell remained committed to
supporting the Paris Agreement’s aim to limit
global warming to 1.5 degrees Celsius. “We also
are working hard to help those who use our
products to reduce their own emission.”
According to Aiboni, about 80 metric tonnes of
Shell’s global CO2 emission in 2019 for instance,
came from its direct and indirect operations
compared to over 1,500 metric tonnes of CO2
from Shell’s customers’ use of the company’s
products. “The opportunities lie, therefore, in
more environmentally friendly energy products
Shell Companies in Nigeria (SCiN) are major
contributors to the economy, not only through the
energy they produce and the revenues they
generate for the country, but also via their supply
chains, local content and social investment.
Shell business activities in Nigeria
3The Shell Petroleum Development Company of
Nigeria Limited (SPDC) is the largest Shell
company in Nigeria and produced the country’s
first commercial oil exports in 1958.
SPDC is the operator of a joint venture (the SPDC
JV) between the government-owned Nigerian
National Petroleum Corporation – NNPC (55%
share), SPDC (30%), Total E&P Nigeria Ltd (10%)
and the ENI subsidiary Agip Oil Company Limited
(5%). It is focused on onshore and shallow water
oil and gas production in the Niger Delta.
3Shell Nigeria Exploration and Production
Company (SNEPCO) operates the Bonga field,
Nigeria’s first deepwater oil discovery. The Bonga
facility has the capacity to produce more than
200,000 barrels per day of oil and 150 MM
standard cubic feet of gas per day.
3Shell Nigeria Gas (SNG) is the only international
oil and gas company to set up a gas distribution
company in Nigeria to supply industry customers.
Nigeria LNG (NLNG) is a joint venture incorporated
in 1989 to produce LNG and natural gas liquids for
export. It was Nigeria’s first LNG project.
Shell holds a 25.6% share, together with NNPC
(49%), Total (15%) and ENI (10.4%).
Shell has a history of over 50 years in Nigeria and
the largest footprint of all the international oil and
gas companies operating in the country. Its
companies and investments have played a
pioneering role in onshore, shallow and deep
water oil exploration and production.
16
THE ENERGY REPUBLIC I SPECIAL EDITION

NIGERIA AND GAS
NEW APPOINTMENT
Professor Barth Nnaji
Nigeria's former Minister of Power
NLNG Appoints Prof. Nnaji as Science Prize
Board Chair for 2022 Cycle
The Nigeria LNG Limited (NLNG) has
announced the appointment of
Professor Barth Nnaji, a renowned
scientist and former Minister of Power, as
the chairperson of the Advisory Board for
the 2022 cycle of the NLNG Prize for
Science.
Professor Nnaji succeeds Professor
Emeritus Akpoveta Susu, a former science
prize winner who retired from the Board in
2022. Professor Susu was appointed Board
chairman in 2016. The Company also
named Professor Yusuf Abubakar as a
member in the newly reconstituted threeperson
Board, which will serve to
implement wide-sweeping reforms that
will reposition the Prize as one of the top
science prizes in the world.
Professor Abubakar joins Chief Dr Nike
Akande, a two-time minister and former
President of the Lagos Chamber of
Commerce and Industry, who remains on
the Board.
The newly constituted Board has assumed
duties in preparations for the 2022 cycle of
t h e P r i ze . T h e B o a rd a p p ro v e d
“Innovations in Sustainable Food Security”
as the theme for the scientific competition.
Professor Nnaji is a Nigerian scientist and a
professor of Mechanical and Industrial
Engineering. He was a director of the US
National Science Foundation Centre for e-
Design, University of Pittsburgh. He served
in different advisory roles to the President
of the Federal Republic of Nigeria before
being appointed a Minister of Science and
Technology in 1993 and later Minister of
Power in 2011. He is also the founder of the
first independent power transmission
station in Nigeria.
Accepting the appointment, Professor Nnaji
stated that he would support the Prize to create
an oasis of world standard inspiration for basic
science research that will impact the lives of
Nigerians.
Professor Abubakar is a professor of Animal
Breeding and Quantitative Genetics and is the
Coordinator of Agriculture Group, R&D
Standing Committee, at the Tertiary Education
Trust Fund. He is also the President of the
Nigerian Institute of Animal Science (NIAS),
Chair of the Board of Trustees, WorldFish, and
currently a visiting professor at the University of
Abuja. He was a judge in the 2021 cycle of The
Nigeria Prize for Science.
Commenting on the reconstitution of the
Advisory Board, NLNG’s General Manager for
E x ternal Re l ations a n d S u sta i n a b l e
Development, Mr Andy Odeh, expressed
appreciation to Emeritus Professor Susu for his
selfless service to the Prize. He said Professor
Susu assumed leadership at a critical time for
the Prize when it was being restructured,
overseeing the management of change and
charting a new trajectory for competition.
He stated that the changes made to the
Advisory Board would consolidate the
achievements made by the former Board
chairman. He expressed NLNG’s support for the
Board’s mandate of making the Prize stronger
and more prestigious in the world.
The Nigeria Prize for Science awards prize
money is $100,000
The Nigeria Prize for Science celebrates
excellence in scientific breakthroughs and
honours scientists from anywhere in the world
who help find solutions to a local or ‘Nigerian’
problem as defined and advertised by the
Advisory Board for the prize.
The Prize is an annual prize aimed at stimulating
the advancement and application of science
and technology. It is expected that the quest for
a prestigious prize in science will improve
science and technology in Nigeria, resolve
issues that are germane to development of the
country and help improve the standards of
living.
The prize is administered on behalf of Nigeria
LNG Limited by the Advisory Board for Science.
The current Advisory Board is chaired by a
former winner of the prize, recipient of Nigeria
National Merit Award and Fellow of The
Nigerian Academy of Sciences, Professor Alfred
Akpoveta Susu. Other members of the Board
are Professor Barth Nnaji, internationallyacclaimed
professor of robotics, Nigeria’s
former Minister of Science and Technology, and
former Minister of Power; Professor Michael
Adikwu, former winner of the prize and former
Vice-Chancellor, University of Abuja; and Chief
(Dr.) Mrs. Nike Akande, Nigeria’s former
Minister of Industries and Chairman of Lagos
Chamber of Commerce, Industry, Mines and
Agriculture.
When an entry has been found worthy of
winning the Prize, the name of the winner (s) is
announced in October, commemorating the
first export of LNG cargo by NLNG on October 9,
1999.
The overall prize implementation is the
responsibility of the Advisory Board, supported
by the secretariat which is located within NLNG. ​
17
THE ENERGY REPUBLIC I SPECIAL EDITION

SNEPCO INTERVIEW
“Nigeria remains an important part of our Deepwater
portfolio; We will bring additional project Onstream
in 2022” - Eloho Aiboni, SNEPCO’s MD
spread of COVID 19.
To the question on my career. My journey to the
MD of SNEPCo started about 20 years ago when I
joined the oil and gas industry right from school as
a graduate of the University of Benin. I was on the
lookout for opportunities in the industry. Having
lived close to an oil company growing up in Port
Harcourt, I have always wanted to work in the oil
and gas industry.
I applied to Shell, got selected for the company’s
training school as a trainee, after which I started as
a production engineer, straight into the field. I was
eager to learn fast. So, I made myself humble and
worked with everyone in the field. I took on all
types of jobs, even ones that you would think a
female should not take on; and I got the right
support from my colleagues and leaders. They
helped me through my stay in the field.
Later, I moved on to an operations engineer role.
After a couple of years, I felt hungry for more. I
wanted to learn about the business and how
investments were made in projects. So, I began to
look for roles that would provide such exposure.
Elohor Aiboni
Managing Director, Shell Nigeria Exploration and
Production Company (SNEPCo) Limited
Interview by Ndubuisi Micheal Obineme
The Managing Director of Shell Nigeria Explora on and
Produc on Company (SNEPCo) Limited, Mrs. Elohor Aiboni, talks
to The Energy Republic about Shell's latest updates for deepwater
opera ons, and other developments to enhance the company's
business ac vi es in Nigeria.
TER: Welcome back to the Post COVID-19 era. Congrats on your appointment as the Managing
Director of SNEPCo! Please could you shed more light on your career journey in the oil and gas
industry with emphasis on your track records at Shell Nigeria/SNEPCo?
Elohor: Thank you very much. It is, however, important to note that COVID-19 is still very much a
disease with us. We are continuously learning to better understand the controls that we need to
keep ourselves and our families safe. We must all contribute and play our part in eradicating the
I took on the role of Business Adviser to Executive
Vice President for Sub-Saharan Africa which gave
me the exposure and privilege to work with great
leaders in Shell Nigeria, and outside Shell. This role
expanded my horizon, I got opportunities to
deliver through others and interacted more with
other senior leaders.
After the Business Adviser Role, I sought to work
on a major project and my operations background
enabled me to get the opportunity to work on the
Kashagan project in Kazakhstan, in operational
readiness and assurance, as the Senior Projects
Asset Engineer. I should say that this role
kickstarted my journey into the offshore space.
I saw the First Oil come up. Shortly after that, I left
Kazakhstan to come back to Nigeria to work as the
Handover Manager for divested assets. While I
was doing that, the opportunity came to become
the Operations Manager for the Sea Eagle Floating
Production Storage and Offloading (FPSO) vessel.
This FPSO is in the shallow waters. It was a step in
the right direction for me as I had always wanted
to do something in the Deepwater space. I knew
that Deepwater was the future for us in Nigeria.
I took on the role and learned a lot about the FPSO.
My team was awesome! They made sure that I got
as much information as I needed to make
decisions as to the Asset Manager. The operations
manager’s role for the Bonga FPSO soon became
19
THE ENERGY REPUBLIC I SPECIAL EDITION

SNEPCO INTERVIEW
available and that was how I got into the
Deepwater space. I became the first female
Asset Manager for the Floating Production
Storage and Offloading (FPSO) vessels for Shell
in Nigeria – first on Shallow water vessel (which
we call Sea Eagle) and thereafter first on the
Bonga Deepwater FPSO asset.
I am here today as the MD SNEPCo; an exciting
role managing the Deepwater space as we have
Operated and non-operated Assets. The role
provides me with the opportunity to develop
people, which is something I love to do, and to
also grow our Deepwater business in Nigeria.
TER: Before your appointment as SNEPCO’s
Managing Director, you have been the Asset
Manager of Bonga FPSO over the years. What
were your greatest lessons and operational
excellence during that period?
Shell Nigeria Exploration & Production Company Digital Twin FPSO
Elohor: Empowering People: I learned
something early in my career: if you take care of
your people, they will take care of you and that’s
something I imbibed early on. When you
empower people, you would be amazed at how
much they would deliver. Empowering the
Bonga team helped us grow the business, take
out costs, embrace technology. We learned fast
and moved on.
Having a Learner’s Mindset, where everybody
has to be open to learning new things has been a
great asset. If you see anything happening in
other places and it’s better than yours, learn.
Staying open to learning was another great
lesson I imbibed. We grew the business, drove
cost efficiency, took out cost, embraced
multiskilling, digitalization, grew WRFM (that is,
Well, Reservoir and Facilities Management),
and we learned from other Operating Units.
Digitalization and proactive threat monitoring
have enabled us to improve operational
excellence, but we are still on the journey,
working towards being the best in class
TER: As SNEPCo’s first female Managing
Director, what are your plans to grow the
company’s Deepwater operation in Nigeria?
Elohor: Nigeria remains an important part of
our Deepwater portfolio. The Shell-operated
Bonga field has produced more than 900 million
barrels of oil since coming online in 2005.
Through FPSO upgrades and subsea tiebacks to
developments, such as Bonga North West,
capacity has continued to grow.
Last year, we renewed the license and contract
for the OML-118 block, which will unlock the
next phase of development of the significant
remaining block resources. Our current
priorities include to:
I. Maximize the resources from our existing
assets. This we will achieve by increasing
operational excellence, especially in production
availability, reduction of greenhouse gas
emissions, and cost discipline.
ii. Reposition all our activities to be fully
aligned with the new OML-118 production
sharing contract signed last year with the
Nigerian government.
iii. Recommence infill drilling activities, as
well as near field exploration and
appraisal. We need to continue working
with our partners and stakeholders to
mature capital and growth projects to
enable final investment decisions.
iv. Continue focus on developing,
empowering, and caring for our people –
they are the greatest team I have worked
with, and I know that we have not reached
our full potential yet.
TER: What are SNEPCo’s pivotal project
development plans and new investment
focus for the year 2022 and beyond?
Elohor: In 2022, we are resuming infill
drilling and completion activities to bring
additional new oil capacity onstream
before the end of the year. We are also
t a r g e t i n g a n e a r - f i e l d
exploration/appraisal opportunity which
we hope to quickly develop within 12
months.
Having obtained the license renewal for
the OML-118 block, we are working with
o u r p a r t n e r s a n d g o v e r n m e n t
stakeholders to mature some major
projects including Bonga North and Bonga
Southwest to a final investment decision in
the coming years.
TER: In terms of Research and
Development, what are SNEPCo’s latest
R&D plans and innovations to build
capacities in-country?
Elohor: At SNEPCo, we value the culture of
innovation and the potency of digital
technologies in strengthening our strategic
competitiveness - from safety to production
availability, cost leadership, and staff
productivity. We have developed a coherent
approach to take full advantage of the
opportunities in this space. Our approach
focuses on first ensuring that the relevant
aspects of our core processes are amenable
to the application of digitalization and
i n n o v a t i o n ( s i m p l i f i c a t i o n a n d
standardization).
Next, we explore how our digitized core can
enable growth in our key business
performance indicators; and, lastly, we
explore opportunities to generate value from
new business models, based on emerging
external developments.
We are focusing on foundational elements
such as data. We have developed a data
strategy to improve governance, data
ownership, quality, and availability. With data
growing exponentially, coupled with the
significant drop in costs of digital
technologies such as sensors, processing
power, the emergence of cloud computing
and storage over the past few years, gaining
insights from data to deliver business value is
imperative. It’s a huge game-changer.
Data and the application of artificial
intelligence are helping us to advance asset
management excellence by improving
availability and reliability through our
Predictive Maintenance programs. We
believe that about 50% of Unscheduled
Deferment could be prevented by
digitalization.
Shell Companies in Nigeria are in
collaboration with two Nigerian Universities
researching the production of synthetic base
fluids for drilling operations from local raw
materials, thereby substituting imported
fluids and stimulating industrial production
for the Nigerian oil and gas industry with
20
THE ENERGY REPUBLIC I SPECIAL EDITION

SNEPCO INTERVIEW
cross-sectoral linkages. This is still in progress
and approaching completion by the
commissioned universities.
Shell companies in Nigeria have Centres of
Excellence for postgraduate studies at the
University of Benin, for Geoscience and
Petroleum Engineering, and at the Rivers State
University, for Marine and Offshore
Engineering.
There are also Shell-endowed professorial
chairs at the University of Port Harcourt
(Petroleum Engineering); the University of
Nigeria, Nsukka (Environmental Management
and Control); the Obafemi Awolowo University
(Geophysics); and the Ahmadu Bello University,
Zaria (Mechanical Engineering).
We deliberately and strategically established
strong relationships and partnerships with
academia to build and grow sustainable incountry
R&D efforts.
We have also commenced the use of Robots for
internal inspections. These robots allow our
people to work from a safe distance. Images and
data collected can be used to identify potential
leaks or an early assessment of surface
conditions allowing early intervention before
impact occurs.
The deployment of these digital technologies
are opportunities to work safer, efficiently, and
to further build resilient operating models while
optimizing costs. These are critical for business
continuity.
TER: Shell is a major sponsor at the sixth
PETAN’s Sub-Saharan Africa International
Petroleum Exhibition and Conference (SAIPEC)
2022. What should we be expecting from
SNEPCo at this year’s event?
Elohor: We are looking forward to projecting
how SNEPCo is powering progress in Nigeria
through its collaborations with the necessary
industry stakeholders. SNEPCo continues to
support local companies to build in-country
capabilities in various technical disciplines. We
power the educational sector by developing
talents from Secondary school through our
Cradle-to-Career program which has given
opportunities to almost 500 beneficiaries. We
also power people through quality and
affordable health care programs such as our
Health-in-Motion program which has reached
over over18,000 people.
One of the things we are most proud of at
SNEPCo, and as Shell Companies in Nigeria in
general, is the strides being made by All On. As
you know, Shell is very much committed to the
Energy Transition and All On is a deliberate
strategy to ensure that:
1. Nigeria is not left behind and,
Elohor Aiboni
2. The Nigeria strategy is not an
afterthought. As you know, the future is
geared towards the adoption of
renewables, and All On has been leading
the charge for Shell’s operations in Nigeria
since 2017.
All On’s portfolio of investee companies
has grown to over 40 companies with an
accumulated investment portfolio of over
$15M spread across Solar Home Systems,
Minigrids, Solar Assembly plants,
technology providers, and other enablers.
In addition to the numbers, All On
continues to do impactful work in changing
lives through deployments made by its
investees, in providing energy access to
unserved and underserved communities
in Nigeria, and its work with the Social
Solar Initiative, All On’s first CSR activity
that provides solar to social sector
organizations free of charge.
Since the launch of Social Solar in 2021, All
On has provided energy access to social
establishments ranging from the home for
the elderly to a center for the blind and
visually impaired, to community health
centers, schools, etc.
SNEPCo has funded several initiatives with
several others in the pipeline. These are
some of the things SNEPCo is proud to be
associated with and happy to share at this
year’s conference.
TER: What’s SNEPCo’s business model to
reach the low carbon demand?
Elohor: Being an Exploration and
Production Company, SNEPCo is focusing
on three main things to thrive in a lower
carbon future.
Improving Operational Efficiency in Our
Existing Assets by maintaining the
reliability of critical elements of gas
handling systems, including compressors,
fo r exa m p l e , we h ave conducted
obsolescence studies and are now replacing
faulty barriers on Field Gas Compressors to
prevent transmitter failures, which cause
trips and increase flaring.
In Bonga, we optimize the consumption of
power offshore where we reduce the number
of power turbines in operation to minimize
combustion emissions.
We are now deploying an Energy Efficiency
Surveillance Tool, that is, a CO2 & Energy
Management Information System, for
structured target setting, reporting,
performance analysis, and corrective action
for energy variables.
These help to provide near-real-time insights
to improve the efficiency of how we use
energy.
Actively managing our CO2 intensity and
reducing Methane Emissions by using
technology to detect minor gas leaks, and to
repair those leaks.
Our strategy towards reducing methane
emissions reduction is embedded in the Leak,
Detection, and Repair (LDAR) program,
where Forward-Looking Infra-Red, FLIR
cameras are used to visualize/ identify leaks
not seen by the naked eye.
With this approach, SNEPCo supports Shell’s
target methane emission intensity of below
0.2% by 2025. This target covers all oil and gas
assets for which Shell is the operator.
Ensuring that all new project designs are
carbon-proof that is, to achieve with low CO2
intensity.
New Projects like Bonga North and BSWA aim
to reduce our overall CO2 intensity as a
business.
One initiative we’re exploring is to install a
flare gas recovery system that will recover all
the gases going to be flared during normal
operations and re-route back to topsides for
re-compression and export.
For reducing emissions even while
developing our new projects, we are also
looking at possible drilling with LNG-power
rigs instead of diesel-powered rigs.
Finally, we are looking at battery energy
storage systems for small loads.
21
THE ENERGY REPUBLIC I SPECIAL EDITION

PHOTO STORIES
SHELL'S AIBONI WINS WOMEN IN ENERGY AWARD AT ENERGY SUMMIT
Managing Director, Shell Nigeria Explora on and Produc on Company, Mrs. Elohor Aiboni; flanked by the Minister of State for
Petroleum Resources, Chief Timipre Sylva; and the Execu ve Secretary and Chief Execu ve Officer, Nigerian Content Development
and Monitoring Board, Mr. Simbi Wabote, celebra ng the emergence of Aiboni as the 2021 Women in Energy Award winner at the
Gala Dinner and Award Night of the 2022 edi on of the Nigeria Interna onal Energy Summit in Abuja …on Monday.
SHELL IS NIGERIA 2021 UPSTREAM COMPANY OF THE YEAR
L-R: General Manager, Shell Energy Nigeria, Markus Hector; Manager Regulatory Affairs, Morenike Adewunmi; Managing Director, Shell Nigeria Gas,
Ed Ubong; Managing Director, Shell Nigeria Explora on and Produc on Company, Elohor Aiboni; Senior Vice President, Shell Nigeria, Marno de Jong;
and General Manager Commercial, Hans Nijkamp; at the Gala Dinner and Award Night of the 2022 Nigeria Interna onal Energy Summit in Abuja on
Monday where Shell Nigeria emerged the 2021 Upstream Company of the Year and Aiboni won the Women in Energy award for 2021.
22

Mozambique
Gas & Energy Summit & Exhibition
In Partnership With
Developing Partnerships Between International & Mozambican
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2022 Distinguished Speakers Include
Estêvão Pale
Chairman & CEO
ENH
Henrique Cossa
Advisor to the Minister & Coordinator,
Multi-Sectorial Local Content Task Force
Ministry of Mineral Resources & Energy
Carlos Zacarias
President
INP
Dra. Luísa Dias Diogo
Chairwoman
Absa Bank Mozambique
Former Prime Minister
Republic of Mozambique
Roberto Dall´Omo
Managing Director &
General Manager
Eni Rovuma Basin
Natalia Camba
Head of Local Content
INP
Eduardo Chimela
National Director,
Employment Observatory
State Secretariat of Youth & Employment
Edgar Paulo Augusto
National Director - Planning
& Studies Directorate
Ministry of Industry & Commerce
Mozambique Gas & Energy Summit & Exhibition At A Glance
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Please Contact Paul Davis: +44 208 0788 254 | Alex Pople: +44 208 0780 779 | MozambiqueGas@dmgevents.com
MozambiqueEnergySummit.com #MGESummit

Unlocking New Opportunities In
African Oil & Gas Value Chain
Despite the mounting pressure coming from the global energy transition
agenda, oil and gas will continue to be a fast generating asset for
African Continent in the next decades. African countries hold huge
energy, oil, and gas potentials that remain untapped.
Coming out of the pandemic, Africa started the year 2022 on a positive outlook,
with ongoing exploration activities in frontier basins across Africa, including
Shell's new oil and gas discovery in offshore Namibia and other latest updates
such as the $10 billion Lake Albert Development in Uganda which has reached
final investment decision (FID) by TotalEnergies and CNOOC plus other
emerging opportunities that will be highlighted in this article.
According to GlobalData’s latest report on “Sub-Saharan Africa Upstream
Development Outlook 2021–2025”, it indicated that a total of 52 key crude and
natural gas projects are expected to start operations in 19 African countries.
Among these, 16 represent the number of planned projects with identified
development plans (post-FID) and 36 represent the number of early-stage
announced projects that are undergoing conceptual studies and that are yet to
be approved for development (pre-FID).
The report also revealed that Nigeria leads among countries with 5 projects,
followed by Mozambique with 3 projects in terms of the number of planned oil
and gas projects. In terms of announced projects, Nigeria leads with 16,
followed by Angola with 5 projects. Shallow water terrain has the highest
number of projects with 21, followed by onshore with 16, deepwater terrain
with 8, and ultra-deepwater terrain with 6.
This article assesses the Energy Transition Agenda in Africa, Challenges and
Growth Opportunities in the African oil and gas value chain, featuring
stakeholders' commentaries as well as strategies needed to be implemented in
unlocking new opportunities in the African oil and gas industry.
Challenges
In a statement made known to The Energy Republic, Dr. Omar Farouk Ibrahim,
Secretary-General of the African Petroleum Producers Organization (APPO)
disclosed that there are three main challenges facing the African oil and gas
sector. These include; Infrastructure; Technology; Financing.
24
By Ndubuisi Micheal Obineme
Facts about African Continent
Ø Global Population Growth is expected to
occur in Africa.
Ø Africa is the World's Youngest Continent.
Ø West Africa to experience the biggest gasto-power
project by 2025.
Ø Uganda gets local content contracts worth
$600 million
Ø Nigeria’s Gas Reserves reach 206.53 tcf.
Ø South Sudan Launches First-Ever Oil and
Gas Licensing Round.
Ø African Continental Free Trade Agreement
(AFCFTA) commences.
Ø Africa FDI inflows reach $39.8 billion in 2020.
Ø Africa dominates the GECF Agenda on
natural gas .
THE ENERGY REPUBLIC I SPECIAL EDITION

TOP STORY
Farouk said the African government needs to
put in place energy infrastructures that cut
across the continent such as pipelines for oil
and gas, refineries, and petrochemicals to
serve sub-regions or a cluster of countries.
Speaking on technology, he said, "Our oil and
gas industry is unarguably the most dependent
on foreign technology. We have generally
bought into the misleading belief of technology
transfer, that the developed world will transfer
technology to us. While it is possible to have
technology transferred, it is always the archaic
technology that is transferred while the latest
is kept by those who developed it, until a better
one is developed.
“
Africa has some of the
best scientists, technologists,
and innovators in Europe
and the United States.
Dr. Omar Farouk Ibrahim, APPO's Secretary-General
investment decision (FID), declining
production, regulatory risks stands as a major
challenge and contributes to lack of investor’s
confidence in the region.
Given the challenges, he said, innovative
inventions and investments will help translate
Africa’s abundant resources into shared wealth
and sustain its economic development.
They excel when they go there. But when they
are here, they are unable to excel.
"The challenge is to create the enabling
environment for these people to excel in Africa.
We also need to create the enabling
environment for Europeans and Americans to
come and do their innovations here.
"The third challenge is the financing of energy
projects. God has endowed us with natural
resources and human resources. We need to
create an enabling environment that will
support the growth of knowledge, technology,
and investment," Farouk added.
Nicolas Odinuwe, Chairman of Petroleum
Technology Association of Nigeria
Highlighting the challenges hindering the
growth opportunities in Africa’s oil and gas
industry, The Chairman of Petroleum
Technology Association of Nigeria, Nicolas
Odinuwe said that the issues of insecurity,
political instability, aging, insufficient
infrastructure, and know-how, declining
international investment leading to a small
number of new projects, and lack of final
Odinuwe, stated that creating an enabling
environment for the private sector is pivotal in
unlocking new opportunities in the African oil
and gas industry.
He called on governments across Africa,
especially the African oil and gas producing
countries to provide necessary incentives to
attract private-sector investments across the
entire value chain.
He said, "This will trigger a massive economic
revolution, human capital development and
deepen local content across Africa.
“The value chain in the oil, gas and energy
industry is such that if properly harnessed, will
transform the economy of the entire
continent".
Odinuwe pointed out that the key enabler is to
create a collaborative ecosystem between the
local industry stakeholders within the Subregion
alongside the Africa continental free
trade Area (AfCFTA).
PETAN C h airman said that the f u ll
implementation of the AfCFTA will increase
local content development, expand economic
activities across Africa, and enhance crosscontinental
trade in a single market for people,
goods, and services.
However, he noted that the African Continental
Free Trade Area Agreement (AfCFTA) will boost
Africa’s industrialization and productivity in
manufacturing, capacity building.
He explained, “African market presents huge
opportunities in a range of sectors, including
the oil and gas and there are still several
underutilized assets in West Africa.
“Improved financial and ICT services will
increase digitization, productivity, and ease of
transacting business across wider markets,
encouraging the integration of supply chains,
business sustainability, and entrepreneurship.
“It’s a good time to invest in Africa, especially in
our transition fuel, the natural gas, which
reduces emissions and we need to be exploring
strategic collaboration with local and
international companies to help us achieve
more desired results.
“We are glad about some of the discoveries
made over the past decade in Africa and even
more proud that Nigeria is leading in key oil and
natural gas projects in the sub-region despite
the challenges. There are similar scenarios in
Mozambique, Equatorial Guinea, Mauritania,
Tanzania.
"PETAN has positioned itself to lead Africa in
local content development and explore
opportunities under the African Continental
Free Trade Area Agreement.”
According to him,
“
PETAN’s investment
interest in Africa is in
technical training and
human capacity
development.
“We are exploring strategic collaboration with
local and international companies to help us
achieve more desired results.
“We are made up of dedicated and patriotic
entrepreneurs, who reside in a difficult business
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terrain though with the most potential, in the
sub-Sahara African region," he concluded.
African oil-producing countries have not fully
benefited from the exploitation of their
hydrocarbon resources. This is part of the
reason why many of these African countries
have adopted local content policies as a
development strategy aimed at increasing the
benefits from the oil and gas industry.
Nigeria is one of those African countries that is
doing very well in terms of implementing local
content development in its oil and gas industry.
It was after the passage of the Nigerian Oil and
Gas Industry Content Development (NOGICD)
Act that the country built Africa’s first FPSO
integration quay, built and installed six entire
FPSO topside modules on TotalEnergies Egina
FPSO.
Egina is TotalEnergies’ third deep offshore
FPSO project in Nigeria after the successful
delivery of the AKPO project (2009) and USAN
project (2012). These projects have brought a
progressive increase in levels of Nigerian
Content, and Egina, being the first major
project launched after the enactment of the
Nigerian Oil & Gas Industry Content
Development (NOGICD) Act of 2010, has so far
the highest level of local content of any FPSO
project in Nigeria.
As a matter of urgency, experts have said that
African countries should learn from the
Nigerian experience and open up the continent
to free exchange of capacity and trade among
member countries.
On his recommendations, The Executive
Secretary of the Nigerian Content Monitory
and Development Board (NCDMB), Engr. Simbi
Wabote, said that
“
There is an urgent need
for the creation of
African Local Content
Fund to support the
continent’s hydrocarbon
projects
as banks and financial institutions are shifting
focus to funding renewable projects against
fossil projects.
Wabote called on the African Export-Import
Bank, African Development Bank (AfDB), and
the African Union (AU) to deepen collaboration
under the African Continental Free Trade
Agreement (AfCFTA), to support hydrocarbon
development on the continent.
“Let me use this opportunity to once again
canvass for the creation of an African Local
Content Fund that could be utilized to set up a
The Execu ve Secretary of the Nigerian Content Monitory and Development Board (NCDMB)
large financial institution for the funding of the
development of oil and gas projects in Africa.
This is especially important against the
backdrop of the reluctant and outright
declaration by some banks and financial
institutions to stop funding hydrocarbonrelated
projects. I hope the AfreExim bank, the
AfDB, or the AU, through the AfCFTA
secretariat, need to institute a form of
contribution no matter how little as a fund to
support the continent’s needs in developing
hydrocarbon,” he said.
Wabote identified legal framework as a key
collaborative strategy to drive local content
practice, adding that many oil producers in
Africa have made efforts to put in place laws
that are investor-friendly to guide their oil and
gas industry.
“I have said it several times that an enabling
legal framework backed with appropriate
legislation is very fundamental in local content
practice. I have lived it, I have seen it. A law or
even a decree as the case may be, depending on
the political arrangement in a country, sets the
framework and boundaries for all local content
practitioners.
“Many African oil producers have made efforts
to put in place investor-friendly laws to guide
activities in their oil and gas industry,” he said.
With the remarkable success that Nigeria has
recorded in the implementation of local content
law in its oil and gas industry, Wabote said that
the country can serve as a model to other
African countries.
The NCDMB boss also noted the need for
collaboration in the area of building
infrastructure. He defined infrastructure as
fundamental facilities, services, and systems
serving a country, city, or other geographical
areas, for its economy to function effectively.
According to him, infrastructure such as
hydrocarbon processing plants, power plants,
pipelines, ports, jetties, terminals, among
others, help to transform resources from their
natural form into usable forms and deliver them
where they are needed to meet the needs of
people in the society.
“The African oil and gas landscape provides
huge opportunities for cross-border
infrastructure to unlock development for
stranded assets, or bring energy closer to the
people. Such infrastructure also leads to the
lower unit of development cost in the long run,”
he explained.
The price of crude oil in recent weeks has been
hovering above $90 per barrel. However,
Wabote said that “This global trend in crude oil
price presents opportunities and challenges to
African oil producers, and its service providers
in respect to field development, security of
supply, affordability, revenue generation,
energy transition, and cost of service.”
Production Decline: The African continent
is home to five of the top 30 oil-producing
countries in the world.
According to the report, the combined daily oil
production of Africa was more than 7.9 million
barrels per day in 2019, which is about 9.6% of
world output. However, the coronavirus
pandemic and recent OPEC production cuts
have dramatically reduced daily outcomes from
the Continent.
Africa’s production has been on the decline,
representing a major challenge for the
continent. West African crude oil production
dropped to 3.71 million b/d in 2020 from 4.12
million b/d in 2019 and is set to decline further
to 3.39 million b/d, according to the Rystad
Energy report.
Nishant Bhushan, Rystad Energy's Upstream
Analyst said, "Oil production in West Africa was
poised for more investment and activity. Last
year’s low oil prices and the unstable market
conditions have continually changed the
outlook, as major operators opted for capital
discipline and limited investment exposure in
regions including West Africa.
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“While we expect output to tick back up in
2022 and 2023 as jet fuel demand returns,
production is set to fall below 3 million b/d
already from 2025 unless heavyweights Nigeria
and Angola can stage a strong comeback and
shake off the dismal growth trends of the past
decade,”
The region’s production decline in 2021 is
driven by its two biggest oil producers, Nigeria
and Angola, which together are estimated to
have lost 440,000 b/d versus the pre-COVID-19
forecast. Crude oil production has dropped
significantly in Congo, Gabon, and Equatorial
Guinea, which together produced 250,000-
300,000 b/d in 2010, according to Rystad.
Equatorial Guinea has seen a 60% reduction in
oil production and Gabon nearly 35% in the
past 11 years.
Based on our findings, the production declines
vary from each African country due to several
issues and bottlenecks on operational
e x c e l l e n c e . L a c k o f i n v e s t m e n t &
postponement of final investment decisions
(FIDs) on projects, including a lack of
investment in critical infrastructures which
leads to frequent production shut-ins, a lack of
drilling at mature fields, and civil unrest caused
by militia groups has been identified by
stakeholders as the main causes of oil
production decline in Africa, while the COVID-
19 pandemic has also added to these issues
over the last couple of years - which has led to
significant production delays and production
shut-ins in some cases.
Financing: In an exclusive interview conducted
by African Energy Chamber (AEC), Kola Karim,
CEO and Managing Director of Shoreline
Energy International and AEC Advisory Board
Member, said that there is a financing gap for
both local producers and IOCs looking to invest
in new production.
In his words, "Banks are retreating from
lending to Oil and Gas projects, and this creates
an uphill task about the key cornerstone of any
turnaround which is financing.
"We need to create additional financing to fix
supply chains and allow manufacturing and
maintenance inputs to be located nearer to
production facilities on the continent and
“
We need more investment
in opening up additional
reserves to close the
production gap as
consumption returns".
.
Growth Opportunities (Frontier
Exploration)
Following the global energy transition agenda,
frontier exploration activity is reducing globally
Kola Karim, CEO and Managing Director of Shoreline Energy Interna onal
but, Sub-Saharan Africa seems to be different,
as several high-impact frontier wells are being
drilled today in frontier areas.
Africa leads on frontier drilling campaigns as
independents and international oil companies
(IOCs) are even planning to do more in frontier
basins across the region. Sub-Saharan Africa's
rig market which is an important indicator of
upstream activity is improving. According to
Statista analyses, more than 60 oil and gas rigs
are located in Africa. Of the total, 56 were land
rigs, while nine were offshore.
For TotalEnergies, Africa is one of the
company’s core areas of business activities,
with a consistent track record of more than 80
years operational excellence in Africa. The
company has been involved in exploration
activities in Nigeria for almost 60 years. Nigeria
is also crucial to the TotalEnergies Group,
accounting for 12% of its equity production.
TotalEnergies has invested approximately $10
billion US dollars in the country to date.
Through decades of executing development
projects, the company’s activities have
contributed to creating jobs and developing
human capacity in Nigeria.
Despite the challenging environment,
TotalEnergies remains committed to investing
in Africa. Lake Albert Development is among
the company's huge investment focus in Africa.
Having reached a deal with the governments of
Uganda and Tanzania, TotalEnergies and the
China National Offshore Oil Corporation
(CNOOC) have taken the Final Investment
Decision (FID) for the Lake Albert Development
in Uganda. The Lake Albert Development FID
marks a milestone in the development of a
viable East African energy market. With total
production estimated at 230,000 barrels per
day for the Tilenga and Kingfisher projects,
development is on track to start producing in
2025.
The TotalEnergies operated Tilenga project; the
CNOOC operated Kingfisher project; and the
construction of the East African Crude Oil
Pipeline – owned by TotalEnergies (62%), the
Uganda National Oil Company (15%), the
Tanzania Petroleum Development Corporation
(15%) and CNOOC (8%).
Deputy Managing Director, Deep Water District
of TotalEnergies E&P Nigeria, Mr. Victor Bandele
Speaking further on the growth opportunities
in Africa, the Deputy Managing Director, Deep
Water District of TotalEnergies E&P Nigeria, Mr.
Victor Bandele said that the time has come to
expand Nigerian Content to the rest of Africa
through Intra-African Trade.
Bandele pointed out that the African
Continental Free Trade Area is the largest free
trade area in the world – measured by the
number of participating countries.
The AfCFTA was intended to connect 1.3 billion
people across 55 countries with a combined
gross domestic product (GDP) valued at US$3.4
trillion. The agreement was also intended to
promote the movement of capital and people
from one place to another.
Bandele advocated for the oil and gas industry
to take advantage of AfCFTA in fostering intra-
African trade and expand the frontiers of
Nigerian content.
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He explained, "Operators need to explore the
possibilities through collaboration with
relevant government agencies of which the
NCDMB has a critical role.
“
TotalEnergies remains
proudly committed to
Nigerian Content and
we will continue to act
in ways that promote
these ideals.
“But it is now time to venture beyond Nigeria
and foster intra-Africa business relations to
consolidate on the gains of Nigerian Content.
Nigeria can earn foreign exchange through the
exportation of local content capacities,
infrastructure, and competencies within the
continent of Africa".
In another report, the World Economic Forum
(WEF) describes AfCFTA as a “global gamechanger”,
adding that AfCFTA will boost
regional income by 7% or $450 billion, speed
up wage growth for women, and lift 30 million
people out of extreme poverty by 2035.
WEF disclosed that it is estimated that the
AfCFTA will increase Africa’s exports by $560
billion, mostly in manufacturing. Intracontinental
exports would also increase by
81%, while the increase to non-African
countries would be 19%.
According to the WEF forecast, AFCFTA is an
opportunity to promote good governance both
globally and across Africa, through the concept
of “Trade Integrity” to ensure the legitimacy of
the global trading system.
Furthermore, the United Nations Economic
Commission for Africa (UNECA) estimates that
AfCFTA will boost intra-African trade by 52.3%
once import duties and non-tariff barriers are
eliminated. It will diversify intra-African trade
as it would encourage more industrial goods as
opposed to extractive goods and natural
resources. More than 75% of African exports
outside of the continent consisted of extractive
commodities whereas only 40% of intra-
African trade were extractive.
UNECA report reveals that the elimination of
import duties will open up trading activities to
small businesses in the regional markets and
boost industrialization. The AfCFTA is expected
to foster competitive manufacturing, which
means Africa’s manufacturing sector will have
the potential to double in size from $500 billion
in 2015 to $1 trillion in 2025, creating 14 million
stable jobs.
Going forward, IHS Markit has published a list
of eight high-impact wells that are being drilled
28
Mrs. Maggy Shino, Petroleum Commissioner of Namibia's Ministry of Mines and Energy
and expected to continue drilling campaigns in
2022, which are listed below:
3Eni's Baleine 1 discovery in Cote d'Ivoire, in
the Cote d'Ivoire Basin
3TotalEnergies' Ondjaba-1 well in Angola, in
the Congo Fan
3Petronas's Jove Marine-1 well in Gabon
(geologically, an extension of the Lower Congo
Basin deep-water pre-salt play last tested by
Petronas with the Boudji 1 well)
3Shell's Graff-1 well in Namibia, in the frontier
Orange sub-basin
3TotalEnergies's Venus-1 well in South Africa,
in the frontier Orange sub-basin
3AziNam's Gazania-1 in South Africa, in the
frontier Orange sub-basin
3Galp/Shell's Jaca 1 in Sao Tome Principe, in
the Gabon-Douala Deep-Sea Basin
3Eni and Exxon testing in Mozambique, in the
deepwater Zambezi Delta
NAMIBIA
Namibia has been positioned as Southern
Africa’s new exploration frontier following
Shell's discovery of oil and gas at the Graff-1
well offshore Namibia. The country aims to fasttrack
the development of its first oilfield to
commence production by 2026. Shell holds a
45% stake in the offshore Petroleum
Exploration License (PEL 39) with a 45% interest
held by Qatar Petroleum and a 10% held by the
National Petroleum Corporation of Namibia
(NAMCOR).
Interestingly, TotalEnergies has made a
significant discovery of light oil with associated
gas on the Venus prospect, located in block
2913B in the Orange Basin, offshore southern
Namibia.
The company used Maersk Drilling’s Maersk
Voyager drillship in water depths of 3,000
meters, which will potentially revolutionize the
energy industry of the southern African
country. Block 2913B is operated by
TotalEnergies (40%), Impact Oil & Gas (20%),
Qatari state-owned petroleum company, Qatar
Energy (30%), and Namibian state oil company,
Namcor (10%).
Mrs. Maggy Shino, Petroleum Commissioner of
Namibia's Ministry of Mines and Energy
commented, "Namibia is a frontier nation and
hasn't yet entered into an oil and gas
production, adding that the country is focused
on exploration activities.
"It is quite an exciting time for us in Namibia as
we are happy to discover these resources. The
basin is quite large and it covers almost the
entire country from the Eastern side to the
Western side.
"While we are drilling the wells, we will be able
to see the commercial viability of the
discoveries that we have made.
"We will be unlocking the full potential of the
Kavango Basin and generate economic benefits
that will propel the Namibian economy going
forward.
"After we have assessed the commercial
viability of the wells, we will be able to enter
into production.
"Namibia is a very large country that is
underexplored. The country has about six
basins with two onshore basins, which are the
Kavango Basin and Namibe basin.
“
In offshore, we have four
more basins which are
the Luderitz, Owambo,
Walvis basin and Orange
basin.
"We only have 32 wells which have been drilled
in total and 15 of it are exploration wells. 10 of
the wells are undergoing deepsea programs
which are just for technical studies and the 7
wells are part of the wells that are within our
discovery in the Orange basin.
"In total, we have onshore and some number of
wells that have been drilled while others are
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stratigraphic wells.
"We have several legislative instruments for
the petroleum industry. We are running an
open licensing regime".
In 2022, wells to watch include Reconnaissance
Energy Africa’s (ReconAfrica) shift to testing its
Kavango Basin theory, offshore Namibia.
ReconAfrica completed the initial analysis of its
first stratigraphic well and found clear evidence
of a working conventional petroleum system in
the Kavango Basin. The company has drilled
stratigraphic wells and reported hydrocarbon
shows, but the next phase will incorporate
results from the 2D seismic. Drilling is due to
begin in the second half of next year.
ReconAfrica CEO, Scott Evans said the company
is seeking a partner for its Namibian project in
the first quarter of 2022.
Another well in the area is Azinam’s Gazania
plan, over the border in South Africa. This well
is a follow-up to a non-commercial discovery
and is in shallow water. A discovery of 50
million barrels would be commercial,
according to Tobias Tonsing, Africa Energy’s
Principal Geophysicist.
GAMBIA
There is an ongoing drilling activities in
Gambia, including FAR's Bamboo-1X oil field
located offshore Gambia. FAR Limited, an
independent, African oil and gas exploration,
and development company have said that its
targeting three key prospects there: Soloo,
Bambo, and Soloo Deep. Resources are
estimated at a maximum of 1.118 billion
barrels and chances of success range between
7% to 37%. Drilling is executed by Stena
Drillmax Ice.
In case of a discovery, FAR has indicated that
90m barrels would be the set minimum
economic field size. Its successful case planning
relies on the development of 150m barrels of
oil via a 48,000 barrels of oil per day (bopd)
floating, production, storage, and offloading
(FPSO) vessel. Three wells would then support
production, gas, and water injection
operations. FAR is the operator with a 50%
working interest in the A2 and A5 permits with
its joint venture partner, PC Gambia Ltd (50%),
a subsidiary of Petroleum Nasional Berhad
(PETRONAS).
GABON
Petronas has announced that it spudded the
Jove Marine-1X well in block F13 offshore
Gabon in early November 2021. The Malaysian
national oil company hopes to replicate its
2018 success with its nearby Boudji discovery.
Drilling is executed by the Maersk Viking.
Jove-1X is testing a four-way dip closure in the
pre-salt Gamba and Dentale formations in the
distal portion of the Lower Congo Basin. A
discovery there would be welcomed news for
Gabon after disappointing results from BW
Energy’s exploration campaign earlier this year
in the same area.
ANGOLA
In October 2021, exploration activities
commenced at TotalEnergies’ Ondjaba
prospect in Block 48 offshore Angola. The well
was drilled by the Maersk Voyager, which has
since then moved to Namibia where it is
currently drilling the Venus prospect. The
Ondjaba-1 exploratory well was expected to
reach 3,628m, setting a new world record. Block
48 is operated by TotalEnergies (40%) along
with Angola’s national oil company SONANGOL
(30%) and Qatar’s national oil company Qatar
Petroleum (30%).
NIGERIA
Seplat Energy is targeting the 78m barrels Sibiri
prospect on OML 40 in Nigeria.
The Sibiri exploratory well (previously known as
Amobe) is one of the few exploration prospects
being drilled in the country and is expected to
help further increase the resource base on OML
40 where the wells on the Gbetiokun field are
currently producing a peak of 12,000 barrels of
oil per day (bopd).
Preparatory activities for drilling of the highimpact
prospect have been ongoing for a while.
According to Seplat Energy, Sibiri carries a risked
best estimate gross prospective oil resource of
78m barrels. The operator has already
evaluated several options to accelerate the
development of the discovery and achieve first
oil in the event of exploration success.
OML 40 is operated by the Nigerian Petroleum
Development Company (NPDC, 55%) along with
its partner Elcrest Exploration and Production
Company Limited (Elcrest, 45%). Elcrest is itself
a Joint Venture between Eland Oil and Gas
(Nigeria) Limited (45%) and Starcrest Nigeria
Energy Limited (55%). Seplat Energy acquired
Eland Oil and Gas in 2019.
EGYPT
Cairn Energy expects to complete its entry into
Egypt’s Western Desert and will begin drilling.
The company’s Eric Hathon said there was a 10-
well exploration programme planned, with
partner Cheiron spudding the first of these in
the fourth quarter of this year.
Cairn has also recently signed up a block
offshore Mauritania. While the company does
not yet have a firm date for a well, it has begun a
baseline environmental survey for the Dauphin
prospect.
ZIMBABWE
Australia’s Invictus Energy also plans to drill in
2022, testing a major gas prospect onshore in
Zimbabwe.
GUINEA BISSAU AND SENEGAL
Impact, and CNOOC International, will also test
their AGC Profond block in the third or fourth
quarter of 2022. This lies in the shared zone
between Guinea Bissau and Senegal.
GHANA AND COTE D'IVOIRE
While Eni has continued exploratory efforts
with three discoveries in Angola (Cuica), Ghana
(Eban), and Côte d’Ivoire (Baleine), additional
operators have now taken the lead in hopes of
announcing new oil and gas discoveries soon.
Exploration drilling campaigns are part of
Africa's growth opportunities in the oil and gas
sector, while some of the upcoming highimpact
explorations are in frontier basins. The
results from the current drilling activities will
constitute an important signpost as to whether
the trend of drilling frontier wells will continue
in Africa. It also shows that Africa is a continent
that remains heavily untapped and the region
still has the potential for more discoveries.
In its report, IHS Markit said, "Africa hosts many
frontier basins with a significant number of
large untested prospects. And large discoveries
tend to result in the production of barrels with
lower costs per barrel and lower carbon
intensity per barrel.
"Also, since frontier basins are often found in
countries with limited or no upstream industry,
they tend to have fiscal terms that are more
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attractive to investors — as the government
aims to build an upstream sector—than in
countries with a mature upstream industry.
"Such terms ultimately lower the economic
threshold investors must deliver to their
shareholders for a discovery, a benefit which a
large discovery only amplifies".
Africa's Evolution on Gas Development
Africa is blessed with abundant energy
resources and Gas will play a pivotal role in the
Continent's energy mix.
According to the African Energy Chamber
report, Algeria, Egypt, and Nigeria round o ff
the top three natural gas producers in 2022
contributing to just over 80% of the overall
natural gas flow from Africa. Both gas demand
and gas production has consistently grown
over the last decade, representing a trend that
is expected to continue going forward as global
decarbonization efforts intensify.
NJ Auk, Executive Chairman of African Energy
Chamber, said Africa can build a better
economy with Gas.
"I have always said if we are going to discover
oil and gas resources again, I would prefer
Africa discover Gas. What we have seen in the
oil economy hasn't worked in Africa. If we had
focused on Gas development, we could have
done more in terms of industrialization and
monetization.
“
Gas is really important
now as we have climate
change issues. Gas is
the transition fuel
because it is cleaner.
“African countries who have an abundance of
these resources should monetize their gas
resources.
"25 years ago, Africa saw Gas as a disaster.
Today, it is a bonanza. We are seeing
discoveries of Gas in countries like Gabon,
Congo. These explorers are going right back to
drilling because the Gas market is huge.
"The market forces will determine how Gas is
going to be important to drive more
investment to the sector.
"But, we need to be very careful as we are in an
era where we are seeing a shift in investment in
fossil fuels which affects Gas. If we don't have
the right kind of investment and financing
framework to develop the abundant Gas
resources in Africa, we are going to see this
Africa potential bonanza as a miss which we
cannot allow such thing to happen to Africa".
More so, LNG-to-Power has been identified as
new opportunity to unlock energy access for
power generation and other economic
developments. LNG is available for power
generation almost everywhere with access to
the sea or a receiving LNG terminal system.
Compared to liquid fuel, LNG to power solutions
provide 20 % lower CO2 emissions, 90 % lower
NOx emissions, 97 % lower particle emissions,
and a 100 % reduction in SOx emissions.
According to NJ Ayuk, LNG-to-Power is going to
be another new opportunity for Africa. It
requires infrastructural development, and it
creates a different kinds of multiplier effects
around the value chain.
"LNG-to-Power projects are needed right now
in Africa. The Tema LNG project in Ghana, the
first offshore LNG receiving terminal in sub-
Saharan Africa stands as a case study for Africa.
"We need to extend it to Nigeria, Angola,
Mozambique including South Africa. There is
going to be massive LNG development in Africa
but we need to develop the right kind of
infrastructure because it is cleaner, better,
competitive when it comes to pricing and it will
become a long-term power infrastructure that
will power up industries as well as improve the
lives of people," Ayuk said.
Small Scale LNG: Experts have said that the
advancement of Small Scale LNG will become
another growth opportunity in Africa in
bringing energy access and fueling the local
industries in the region where it is needed.
Because LNG burns more cleanly than other
fossil fuels such as petroleum and coal, Small
Scale LNG is likely to gain further traction as
market and regulatory pressures to transition to
lower-carbon energy intensify. As companies
approach the Smal Scale LNG market, Africa
should be prepared to act quickly.
Small-scale liquefaction plants are usually
developed to serve specific markets and have a
production capacity of less than 500,000 tons
NJ Auk, Execu ve Chairman of African Energy Chamber
per year (by contrast, a large industrial-scale
LNG plant like the Gorgon facility has an export
capacity of approximately 16 million tons per
year).
In his words, NJ Ayuk explained that Small Scale
LNG will play a major role in unlocking energy
access in Africa.
He added, "In Africa, we always talk about local
content and opening opportunities for
indigenous companies who cannot raise the
big-ticket items in funding projects. With Small
Scale LNG, these companies would be able to
run LNG programs in badges.
"You don't need something big. With badges,
you can move it from regions where there are
LNG terminals. For example, Equatorial Guinea,
Nigeria, Mozambique, Angola, and other
African countries would become part of the
business.
"Our industries will not work when we don't
have the Small Scale LNG players all around.
Small Scale LNG will become a game-changer
for the African Gas sector.
"Gas is our future and monetizing LNG is going
to be our path to prosperity in Africa.
"Africa should start adopting new technologies
to further explore these opportunities. This is
the time for Africa to take responsibility for
regional collaboration in energy, gas, LNG
development.
"African countries and businesses are already
benefiting from LNG projects in the continent.
African natural gas is plentiful, and also low-cost
to develop if bureaucrats just do their job and
cut red tape and provide the incentives needed.
"African natural gas has an abundant cheap
supply that could easily displace coal and higher
intensity fossil fuels and provide uplift for
African countries and our global partners.
"We have a chance to push greener and
cheaper energy both in Africa and globally,
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assuming we build the needed infrastructure
line pipelines and show the wherewithal to do
it. small scale LNG can be a game changer as we
push to manufacturing, create jobs and defeat
energy poverty.
"I have traveled around Africa such as Senegal,
Mozambique, Congo, Equatorial Guinea,
Nigeria, Ghana, SouthAfrica, Namibia, Gabon,
Algeria and Tanzania, our energy Industry has
learned it needs a new approach that balances
people, planet and profits,"
African Energy Bank
Environmental organizations, financial
institutions, and governments across Europe
and North America have insisted that
developing nations, including those in Africa,
must immediately transition from fossil fuel
production and usage to renewable energy
sources like solar, wind, and hydrogen.
Africa has approximately 130 billion barrels of
proven crude oil reserves and over 15 trillion
standard cubic meters of natural gas which
hasn't been fully utilized.
Meanwhile, some prominent industry leaders
have said that it would be a mistake for Africans
to abandon their abundant petroleum
resources, to pursue expensive, unreliable
renewable energy sources.
The African Energy Chamber has made a strong
case to challenge this energy transition
agenda, noting that Africa still needs its oil and
gas resources to meet the Continent's pressing
needs and alleviate energy poverty.
Addressing energy poverty in Africa is an
urgent matter that must take priority over
abandoning oil and gas. The energy poverty
numbers for Africa are stark, while Africa
produces less than 4% of greenhouse gas. To be
factual, Africa isn't the problem of greenhouse
gases, but they are the victims. Though African
countries are embracing renewable energy
sources; but, the problem comes when the
continent is forced into giving up its fossil fuels
and transitioning to renewable energies.
In response to this ongoing energy transition
agenda, NJ Ayuk has said developing African
energy banks is a way to protect the continent
and harness its oil and gas resources for social
and economic transformation.
Ayuk stated that China might be a credible
partner to Africa in building these unique
financial infrastructures.
In his words, "African governments can set
aside a percentage of their oil and gas revenues
for new project funding. In our report, Africa
Energy Outlook 2021, the African Energy
Chamber projected that African governments’
earnings from royalties, profit oil, and other
taxes in 2021 would reach USD 100 billion. Even
5% of that amount would produce $5 billion
NJ Auk, Executive Chairman of African
Energy Chamber
that could be leveraged for exploration,
development, or infrastructure.
“
We can also raise
capital by investing
African pension funds
in African energy
projects.
According to Capetown-based investment firm
RisCura, local pension funds collectively
manage around USD 350 billion of assets in sub-
Saharan Africa, and they are actively looking for
new places to invest. Why not encourage them
to add oil, gas, and renewables projects to their
list? Investing pensions in the energy sector is
hardly a new practice. Some of America’s
largest pension funds are invested in fossil fuel
producers and pension funds around the globe
are investing in green energy projects. This
would not be a giveaway: Investing in fossil
fuels, especially gas projects and developing
marginal fields, provides a large return on
investment. And millions of Africans would be
participating in our growth and our future".
Other options for raising capital, according to
him, including seeking support from wealthy
Africans who want to invest in a better African
future. As of December 2020, total private
wealth in Africa totaled approximately USD 2
trillion. That’s not even including the African
diaspora.
"Imagine what can be done if we just unite. Not
only do we have pathways for raising capital,
but we also have an example of the kind of
bank(s) Africa needs to finance its energy
projects, one that goes back decades. I’m
talking about the African Export-Import Bank
(Afrieximbank). In 1993, African governments
worked with public and private investors to
create a bank that would finance, promote, and
expand intra-African and extra-African trade.
They succeeded. In 2020, Afrieximbank
received the Africa-America Institute’s (AAI’s)
Institutional Institution of Excellence Award for
its commitment to the creation and
implementation of the African Continental Free
Trade Agreement (AfCFTA) and its ongoing
dedication to investing in education. AAI noted
that between 2015 and 2019 alone,
Afrieximbank disbursed more than $30 billion
in support of African trade, including more than
$15 billion for the financing and promotion of
intra-Africa trade.
"Afrieximbank, by the way, recognizes the
importance of protecting Africa’s oil and gas
industry.
“The way we see it at the bank. I say, let’s build
on Afrieximbank’s model. And not only that,
let’s cultivate a pool of investors who
understand and appreciate the importance of
oil and gas to Africa.
"Capital from foreign countries and companies
will always be welcome — as long as it isn’t
predicated on phasing out fossil fuels on their
timeline. If they’re pushing a rush to
renewables, they’re not going to be part of our
solution.
"With the support of one or more African
energy banks, local oil and gas companies will
have the finances necessary to acquire assets.
They’ll have the financing to build crude and gas
pipelines across Africa and to facilitate the use
of natural gas (including liquid natural gas) to
power Africa, minimizing energy poverty and
driving industrialization.
"And African states and entrepreneurs will be
able to finance the development of renewable
energy operations, particularly blue, green, and
grey hydrogen operations that create additional
opportunities for Africans. Africa already has
emerging green hydrogen operations in Mali,
Namibia, Gambia, Senegal, Mauritania, Niger,
and South Africa, and with the proper funding,
could become a major green hydrogen
exporter.
"The African Energy Chamber will support the
energy bank initiative and work to bring
potential participants together.
“
Creating our institutions
to finance energy projects
will send a clear signal
to the marketplace that
Africans are seeking to
become leaders in scaling
up private capital.
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It will show that we are advancing natural gas
development and infrastructure while
supporting low-carbon investments.
"With the financing in place, not only will
African companies be able to produce oil and
gas, but they also will support local community
development, develop green energy markets,
and create jobs.
"The financing also will allow African
companies to upgrade their refineries, an
urgent need addressed by Anibor Kragha the
Executive Secretary of African Refiners and
Distributors Association during African Energy
Week, so they can produce cleaner fuels.
“
For many African countries,
the oil and gas industry
represents our best shot
at giving millions of Africans
the kind of jobs, living
standards, and stability
that developed countries
have enjoyed for well
over a century.
We must hold fast to those goals and do what it
takes to achieve them," Ayuk concluded.
In conclusion, Africa still has an opportunity to
further entrench the Continent's position as the
world's most attractive investment destination,
which can be achieved through deliberate
actions such as developing a roadmap to drive
more investmment and boost local content
development in the supply chain of its oil and
gas industry going forward..
The transition to clean energy will mean less
dependence on fossil fuels. Africa's share of
global oil consumption is estimated at roughly
9%.
Eni Commences Production from Ndungu Project in Block 15/06,
Deep Offshore Angola
Eni started production from Ndungu
Early Production (EP) development
project, in Block 15/06 of the Angolan
deep offshore, via the Ngoma Floating
Production Storage and Offloading (FPSO)
vessel.
The start-up of Ndungu EP is yet another
example of how Eni Angola, in full cooperation
with Agência Nacional de Petróleo, Gás e
Biocombustíveis (ANPG) and partners, keeps
creating value on Block 15/06 through its
Infrastructure-Led Exploration strategy,
generating a pipeline of fast-track subsea tiebacks,
thus maximizing the utilization of
existing facilities in the area in a sustainable
manner.
Ndungu Early Production project, with an
expected production rate in the range of
20,000 barrels of oil per day (bopd), will sustain
the plateau of the Ngoma, a 100 kbopd zerodischarge
and zero-process flaring FPSO,
upgraded in 2021 to minimize emissions, in line
with Eni’s decarbonisation strategy to achieve
net zero.
A further exploration and delineation campaign
will be performed in the first half of 2022 with
the aim to assess the full potential of the overall
asset of Ndungu.
Ndungu EP is the third start-up achieved by Eni
Angola in Block 15/06 in the last 7 months, after
Cuica Early Production and Cabaca North
Development Project.
Block 15/06 is operated by Eni Angola with a
36.84% share. Sonangol Pesquisa e Produção
(36.84%) and SSI Fifteen Limited (26.32%)
compose the rest of the Joint Venture. Further
to Block 15/06, Eni is the operator of
exploration Blocks Cabinda North, Cabinda
Centro, 1/14 and 28, as well as of the New Gas
Consortium (NGC). In addition, Eni has stakes in
the non-operated Blocks 0 (Cabinda), 3/05,
3/05A, 14, 14 K/A-IMI, 15 and in the Angola
LNG.
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APPO Advocate for Further Engagement
on Global Energy Transition Agenda to
Clarify Africa’s Position
Tanzania $30 Billion LNG Project Making
Good Progress - Shell
35 36 37
African Energy Chamber Releases Q1
2022 Oil and Gas Outlook
SAIPEC Creates Huge Opportunities for Regional
Collaboration, Partnerships – PETAN Chairman
The Chairman of the Petroleum
Technology Association of Nigeria
(PETAN), Mr. Nicolas Odinuwe, has said
that the Sub-Saharan Africa International
Petroleum Exhibition and Conference (SAIPEC)
creates huge opportunities for regional
collaboration and partnerships.
This is because Sub-Sahara Africa is said to be
the last energy frontier and global hub.
Odinuwe, therefore, pointed out that the key
enabler is to create a collaborative ecosystem
between the local industry stakeholders within
the Sub-region alongside the Africa continental
free trade Area (AfCFTA).
The PETAN Chairman in his opening address
welcomed delegates from across over 25
countries of Sub-Saharan Africa who
converged for the 6th edition of SAIPEC holding
at the Eko Hotels and Suites, Lagos, Nigeria.
The 3-day flagship international energy
conference, Odinuwe said is being hosted by
PETAN, an association of leading Nigerian
Indigenous Technical Oilfield service
companies in the upstream, midstream, and
downstream sectors of the Nigerian Oil and gas
industry, with the active support from the
Nigerian Content Development and
Monitoring Board (NCDMB), headed by Engr.
Simbi Kesiye Wabote, it’s Executive Secretary.
Odinuwe said PETAN is the largest and leading
advocacy group representing Nigerian Oil and
Gas service companies with membership
cutting across the entire value chain of the oil
sector which have been delivering quality
services to the industry for over 30 years.
The PETAN Chairman thanked the delegates
made up of continental prominent speakers,
Mr. Nicolas Odinuwe, Chairman of the Petroleum Technology Association of Nigeria (PETAN)
exhibitors, national regulators, International
Oil Companies (IOCs), Nigerian Oil Companies
(NOCs), sponsors, representatives of Nigeria’s
Petroleum Ministry and its relevant agencies,
the media, and other guests from all over Africa
who have come to share their knowledge in the
quest of development.
The PETAN Chairman equally expressed his
association’s delight at the participation of the
delegates in the event.
Highlighting the gains of this year’s SAIPEC
conference, however, Odinuwe stated that the
gains underscore PETAN’s emphasis on the
future of the oil/gas/energy industry through
collaboration, entrepreneurship, and
innovation.
He also pointed out that through topical
discussions, debates, and interactions,
stakeholders and key players at the conference
will have ample opportunities to share ideas
and critical insights into the region’s
hydrocarbon and transition-energies
businesses.
Odinuwe declared that PETAN will continue to
appeal to all Governments, representatives,
policymakers, legislators, captains of industries,
and all industry stakeholders to incorporate the
outcome of the SAIPEC conference into their
plans, programs, and policies for a better
operating environment that will have the
desired positive effect on the respective
economies of African nations.
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AFRICAN ENERGY STORIES
SAIPEC, Odinuwe told the delegates, is the only
oil/gas/energy event that is held in partnership
with the entire sub-Saharan African petroleum
industry stakeholders.
He noted that though the world is yet to
emerge from the throes of the Covid-19
pandemic which he said had spanned over two
years, it has changed the global economy in
unexpected ways. He, however, admitted that
the wave of the pandemic has come with
innovations driven by the digitization of the
global economy. He however assured that
protocols are now in place for measured and
adopted life and economic continuity.
The PETAN Chairman disclosed that “stabilized
and stabilizing markets have all encouraged
innovation in several industries despite supply
chains disruptions”, he stated that “Privatemarket
investors are uniquely positioned to
benefit from the innovation supercycle that is
being driven by the digitization of the global
economy, a decade-long transformation
accelerated by the pandemic.
“The value chain in the oil, gas, and energy
industry is such that if properly harnessed, will
transform the economy of the entire continent.
The challenge has been an enabling
environment to create a private sector-led
industry. Government across Africa, especially
the Oil and gas producing sub-Saharan
countries, should provide necessary incentives
to attract private-sector investments across
the entire value chain. This will trigger a
massive economic revolution, human capital
development and deepen local content across
Africa”, Odinuwe stated.
Stressing on the theme for this year’s SAIPEC
event titled: “Fostering Collaboration to Create
Cross-Boarder Partnerships Across the Oil, Gas,
and Energy Spectrum”, Odinuwe opined that it
is very apt in the sense that “exhibitors,
sponsors, and delegates, especially those who
are joining us for the first time – we believe after
now – will make this a permanent feature of
your annual calendars. We desire to build this
conference to be enviable & innovative with as
much regional spread across Sub-Sahara
Africa”.
He further explained that the sixth edition of
SAIPEC is also “designed to provide
opportunities – as with previous ones – to
renew business relations, make new ones and
strengthen the professional network that binds
us together as one family dedicated to the
advancement of the oil/ gas and energy
industry and the sociopolitical and economic
development of Sub Saharan Africa”.
He however welcomed the delegates, once
again, while thanking the steering committee of
the conference, which is the PETAN Executive
Board and partners, the “GEP for making this
rich gathering worth the time year in, year out.
“I thank you for listening and once again a very
warm welcome to every one of you and on
behalf of PETAN, wish you all a successful
conference. and exhibition”, Odinuwe said.
Dignitaries, some of who were speakers at the
SAIPEC Confab include the Hon. Minister of
State for Petroleum Resources, Chief Timipre
Sylva; the Executive Secretary of the Nigerian
Content Development and Monitoring Board
(NCDMB), Engr. Simbi Kesiye Wabote; the
Group Managing Director/Chief Executive
Officer, Mr. Mele Kolo Kyari; the former Minister
of State for Petroleum, Dr. Ibe Kachikwu.
Others are the Secretary-General of the African
Petroleum Producer’s Organization (APPO), Dr.
Omar Farouk Ibrahim; the former Chief
Executive Officer of the Nigeria Liquefied
Natural Gas (NLNG), Mr. Tony Attah; federal
lawmakers oversight the Nigeria oil industry
and top members of the Board of Trustees and
Executive Board of PETAN; Icons and Captains of
Industry from across Africa and many others.
SAIPEC is hosted by the Petroleum Technology
Association of Nigeria (PETAN), a leading
organisation that represents oilfield services
and technology companies operating across
upstream through to downstream projects.
PETAN is a leader in the promotion of innovative
engineering and creative solutions, that help
advance the petroleum industry both nationally
and regionally.
Year on year, SAIPEC continues to address the
needs of companies seeking to showcase their
innovative solutions and new technologies, and
to support the development of major new
businesses and partnerships to benefit Sub
Saharan Africa’s petroleum economy.
PETAN is an association of leading Nigeria’s
indigenous technical service providers in the
upstream, midstream, and downstream sectors
of the oil industry. PETAN has made significant
progress in many areas in the Nigerian oil and
gas industry including human capital
development, reduction for in-country capital
flight, and other key areas.
APPO Advocate for Further Engagement on Global Energy
Transition Agenda to Clarify Africa’s Position
He pointed out that the developed world agenda on
T
energy transition include a Clean, Reliable, and
Affordable (CRA) energy system, and this is while
Africa’s energy system is different from them.
h e A f r i c a n Pe t ro l e u m P ro d u c e r
Organization (APPO) has advocated for
further engagement on the global energy
transition agenda to clarify Africa’s position in the
transition towards renewable energies.
At a recent international panel session during the
Nigeria International Energy Summit 2022 in Abuja,
APPO’s Secretary-General, Dr. Omar Farouk
Ibrahim, made this known, noting that Africa isn’t
against Energy Transition, but, the transition fuels
wouldn’t be the same in Africa.
He said the Energy Transition Agenda was set by a
group of people who have been using fossil fuels for
over 100 years to develop the economies and wellbeing
of the people.
“Now, we are being told that these fuels that have
changed the lives of people in Europe and America
aren’t good for us.
“In Africa, what we need is a just energy transition
that will allow us to identify our baseload.”
Dr. Omar Farouk Ibrahim, APPO Secretary General
Over the years, he said, African oil-producing
countries have been working on Enhanced Oil
Recovery (EOR) plan aimed at improving fossil fuels
production.
“For us in Africa, our priorities are Affordable,
Reliable, Clean Energy (ARC) system. Without this
energy, you can’t get good health, food, education,
social and economic benefits.
“Africa’s priority for Energy is centralized on
Affordability, Reliability, and Cleanliness.
“We need to discuss further and agree on the
energy transition agenda for the best interest of
everyone.
“Nobody should dictate for Africa on this matter.
Africa cannot be intimidated in accepting an
ideology that isn’t in the best interest of the
continent,” he added.
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TotalEnergies Makes Significant Oil Discovery
Offshore Namibia
TotalEnergies has made a significant
discovery of light oil with associated gas
on the Venus prospect, located in block
2913B in the Orange Basin, offshore southern
Namibia.
The Venus 1-X well encountered approximately
84 meters of net oil pay in a good quality Lower
Cretaceous reservoir.
“This discovery offshore Namibia and the very
promising initial results prove the potential of
this play in the Orange Basin, on which
TotalEnergies owns an important position both
in Namibia and South Africa” said Kevin
McLachlan, Senior Vice President Exploration at
TotalEnergies. “A comprehensive coring and
logging program has been completed. This will
enable the preparation of appraisal operations
designed to assess the commerciality of this
discovery.”
Block 2913B covers approximately 8,215 km² in
deep offshore Namibia. TotalEnergies is the
operator with a 40% working interest, alongside
QatarEnergy (30%), Impact Oil and Gas (20%)
and NAMCOR (10%).
TotalEnergies is a global multi-energy company
that produces and markets energies: oil and
biofuels, natural gas and green gases,
renewables and electricity.
TotalEnergies 105,000 employees are
committed to energy that is ever more
affordable, cleaner, more reliable and
accessible to as many people as possible. Active
in more than 130 countries, TotalEnergies puts
sustainable development in all its dimensions at
the heart of its projects and operations to
contribute to the well-being of people.
Tanzania $30 Billion LNG Project Making Good
Progress - Shell
Shell has made good progress with the
Tanzanian government in recent months to
advance a liquefied natural gas (LNG) project to
tap the East African country's huge gas
resources, a Shell executive said recently,
according to Reuters report.
"We have seen some real quick progress over
the last year compared to what had been a
much slower progress before and we continue
to be hopeful that we can take this project all
the way through to FID (final investment
decision) at some stage," Shell's head of
integrated gas Wael Sawan said.
The Minister of Energy of Tanzania Hon. January
Makamba held talks last week with the
negotiating teams of the $30 Billion LNG project
to be built in the #Lindi Region.
The development of Tanzania's vast offshore
gas resources has been held up for years due to
delays in government licensing agreements, but
Sawan told reporters that some fiscal disputes
"have now been resolved".
Shell operates Block 1 and Block 4 off Tanzania,
which hold 16 trillion cubic feet in estimated
recoverable gas. It aims to develop an LNG
project together with Norway's Equinor
(EQNR.OL).
Equinor also operates Block 2, in which
ExxonMobil (XOM.N) also holds a stake and
which is estimated to hold more than 20 trillion
cubic feet of gas.
Experts Harness Opportunities In PIA At Convening NOG
Energy Conference In Nigeria
The 21st edition of Nigeria’s foremost
energy event, NOG Conference and
Exhibition is set to hold in person at the
International Conference Centre, Abuja from 4 – 7
July 2022.
dmg Nigeria events, the organizers of the event
stated, NOG 2022 will host key stakeholders from
across the global energy value chain to discuss the
strategies that will be employed by the Nigerian
government and private sector leaders to harness
the opportunities created by the historic Petroleum
Industry Act (PIA) which was signed into law by
President Mohammadu Buhari in 2021.
technology innovations for decarbonatization
across the value chain, and other critical topics, that
will help set the nation’s energy agenda for the next
12 months and beyond.
The conversation at this year’s conference is
significant as the industry navigates the growing
global demand for renewable energy and climate
friendly sources of energy in the face of Africa’s
unique energy mix requirements. Many industry
leaders have also dubbed this to be an opportunity
to seek a lasting solution to Africa’s energy poverty
and bring the much-needed socioeconomic
development.
certified NOG Technical Seminar. The Technical
Seminar will host sessions in 5 different streams
covering upstream operation, midstream,
downstream, digitization and project management.
The NOG Conference and Exhibition annually hosts
over 500 delegates, 300 exhibiting companies, 80
industry expert speakers and 40 sessions across 2
conference streams.
2022 Sponsors include: NNPC, Nigeria LNG Limited,
Shell, Chevron, Total Energies, ExxonMobil, NCDMB,
Prime Atlantic, DCPL, Coleman Wires And Cables,
First E & P, ND Westers, Nivafer, Russell Smith, Vurin
Group, MG Vowgas, PE Energy Ltd, WAV and Trexm
Chemicals to date.
The conference will also discuss key issues such as
financing opportunities for energy projects in sub-
Saharan Africa, bridging the infrastructure gap for
the improved domestic gas market, opportunities
for indigenous companies in the PIA era,
As part of its commitment to the development of
the Nigerian energy industry, NOG will also provide
the opportunity to showcase and train industry
stakeholders on best-in-class technology
innovations across the value chain through its CPD
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African Energy Chamber Releases Q1 2022 Oil
and Gas Outlook
The Outlook provides an overview of
anticipated trends within the oil and gas
sector and how factors including past
and future regulatory changes, mergers and
acquisitions, licensing and exploration and
production activities are shaping the market.
The African Energy Chamber (AEC), is proud to
announce the release of the AEC Q1 2022
Outlook, “The State of African Energy” – a
comprehensive report analyzing the trends
shaping both the global and African oil and gas
market in 2022. Providing a detailed view of
both the global and African oil and gas
landscape, the report will be critical for
hydrocarbon stakeholders looking at the
expansion, collaboration, and monetization of
resources in 2022 and beyond.
The report covers global market forecasts and
supply trends focused on oil and gas exploration
activities in Africa through an overview of the
continent’s oil and gas sector including the
impact of COVID-19 variants, their effect on
upstream investment and developments since
Q4 2021; as well as updates on mergers and
acquisitions and Africa’s regulatory landscape.
On the global market front, the report details
price and demand trends, in which key
highlights include how brent benchmark is
rallying towards $80-per barrel as oil and gas
demand and consumption increases to reach
pre-pandemic levels in the next 12 months and
the 5% increase in oil production at global scale
that is anticipated resulting in oil and
condensate output slightly growing over 2021
levels.
At the same time, 2022 supply levels on a
month-on-month basis are expected to be
above 8% of the global crude oil plus
condensate volumes.
Meanwhile, on the African market front, the
outlook provides a detailed understanding of
the continent’s top producers.
Nigeria, Libya, Algeria, Angola and Egypt are
expected to remain Africa’s top five oil
producers with Nigeria dominating, boasting an
annual average production capacity of 1.46
million barrels of crude oil per day (MMbbls/d)
and 1.72 MMbbls/d of crude oil plus
condensate. What’s more, the report
showcases how natural reductions in legacy oil
projects and outages resulting from accidents
and natural disasters in Africa will hinder oil
market growth. Yet, despite this, demand and
supply is expected to surpass 2020 levels.
At the same time, the report investigates
natural gas trends in Africa.
Notably, that Algeria, Egypt and Nigeria
will remain the top three natural gas
producers and provide 80% of the natural
gas flows anticipated across Africa in
2022; a decrease in the number of fields
that supply feedgas for liquefied natural
gas exports and a decline in annual capital
expenditure, which will disrupt growth
within the African gas landscape.
The report also provides insight into
Africa’s exploration market, detailing
how the results of 14 exploration
initiatives conducted are expected and
some nine high-impact wells are set for
drilling in 2022, resulting in an increase in
Africa’s oil and gas production capacity.
“We are delighted to announce the
launch of our State of African Energy Q1
Outlook 2022 which analyzes global and
African oil and gas trends,” state NJ Ayuk,
Executive Chairman of the AEC, adding
that, “The increase in oil and gas demand
provides an opportunity for African
producers to play an important role in
meeting global energy consumption and
to leverage their energy resources for
economic growth whilst addressing
domestic and continental energy woes.”
Meanwhile, the report goes one step
further, providing commentary on
mergers and acquisitions as well as
Africa’s regulatory landscape. With
A f r i c a n g o v e r n m e n t s m a k i n g
considerable efforts to reform their
energy sectors and introducing marketdriven
policies to spur investment, the
report showcases the achievements and
future objectives outlined by African
stakeholders.
Notably, key highlights include majors such as
TotalEnergies, Shell, bp and ExxonMobil
exiting some West African operations due to
the high-cost associated with the operations
of deep-water projects and the high emission
rates of projects.
As majors exit, indigenous entities will take
over portfolios. In addition, the passing of the
Petroleum Industry Bill into the Petroleum
Industry Act in 2021 by the Nigerian
government after 14 years of legislative
standstill is expected to provide clarity for oil
and gas market players wanting to enter or
expand footprint within the country’s
landscape.
“While inadequate funding continues to
refrain market growth, the need for African
countries to adopt innovative business
models and policies that would help them
attract more capital in an ever-increasing
competitive environment has been made
clear.
“This is also when out-of-the-box solutions
such as the proposed African Energy Bank
would come into play in helping African
producers increase energy investments and
reduce reliance on international investors
even for marginal projects. We have to make
energy poverty history while using carbon
capture technologies to reduce GHG
emissions in oil and gas projects,” concludes
Ayuk.
To get your copy of our State of
African Energy Q1 Outlook 2022,
e m a i l A m i n a W i l l i a m s o n
amina.williams@energychamber.org
or visit energychamber.org for more
information.
37
OIL AND GAS REPUBLIC I SPECIAL EDITION

AFRICAN ENERGY STORIES
E XC L U S I V E I N T E R V I E W
Frank Fannon
Managing Director of Fannon
Global Advisors & former US
Assistant Secretary of State
for Energy Resources
The Significance of
Namibia’s Oil Discovery
The African Energy Chamber spoke to Frank Fannon,
former United States Assistant Secretary of State for
Energy Resources and current Managing Director of
Fannon Global Advisors, about the significance of
Namibia’s oil discovery.
What are your thoughts on this discovery
and what will it mean for the country’s
energy sector?
This discovery is a game changer for the
country – Namibia’s first oil discovery.
Namibia has had 40 plus years of
uneconomic or dry holes since the Kudu
gas field discovery in 1974.
Shell’s Graff-1 confirms to the global
industry that Namibia has the resources to
attract the world’s best and brightest.
What advice would you give to Namibia
on how to handle exploration and
production of the discovery?
With a discovery of this potential
significance, there are often political
voices that would like to start spending
money and accelerate timelines or cut
corners to meet political rather than
business cycles.
I would encourage the country to stay on a
disciplined path. To focus on the technical
elements, safety, and environmental
performance, among others.
The world, investors, and the broader
industries are watching how Namibia
manages this discovery. It will be
important that the country and the private
sector execute the plan.
What should be done from a regulatory point
of view to develop an oil and gas bill?
Namibia’s lack of discovery success in the past
has meant that it could watch the rest of the
world test different models.
I would encourage the country to integrate the
best elements and reject the bits that
compromise the country’s values.
We know that Namibia wants to increase
foreign investment. Identify and integrate those
factors into legislation. The country would also
like to ensure a long-term industry.
The regulatory context and fiscal regime should
incentivize those goals rather than short-term
returns. Further, since resource projects – oil,
gas, mining – are long-term investments, all
market participants should expect certainty in
decision-making.
What will the discovery mean for local
content?
It is appropriate to encourage local content
especially where that content can add real value
to the enterprise.
In practice, the best application of local content
is when there is clear alignment between the
local business or workforce and the project. At
the discovery stage, there is likely little
opportunity for local content since there is still
more of a design phase.
However, I would expect that there would be more
opportunity for local content as the onshore
services will be required when the project
advances. I would think that there may be some
initial training opportunities for local businesses
and education to explore what those future winwin
situations may be in the near to mid-term.
How does this discovery work in the face of
energy transition and what is the environmental
impact?
High oil and gas prices have underscored that we
will need oil and natural gas for many years into
the future.
The transition away from oil will take many
decades, and it will be uneven with certain regions
able to transition sooner than others. Yet,
increasing calls to address climate change and
transition away from hydrocarbons are very real.
The market, investors, shareholders, and the
public more broadly, will increasingly demand that
those hydrocarbons be produced safely and
environmentally sustainable.
I suspect that concepts align with most
Namibians, particularly given the importance of
tourism.
It will be important for Namibia or any other
project in the world to demonstrate that it is
operating with the environment in mind and with
the highest standards.
38
THE ENERGY REPUBLIC I SPECIAL EDITION

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