Image: thenerveafrica.com

The direct total foreign investment expected in Equatorial Guinea for 2019 is over USD $2.4 billion, with 11 new wells expected to be drilled during the year.

In addition, five platforms have been contracted to carry out drilling operations in the country, according to the technical meetings and evaluations of the work programs and budgets of the country’s operating companies conducted by the Ministry of Mines and Hydrocarbons of Equatorial Guinea.

The ramp up in drilling activity in Equatorial Guinea comes after several years of a downturn following the crash of oil prices in 2014, and during the country’s Year of Energy.

The Year of Energy is led by the Ministry of Mines and Hydrocarbons, and will include the African Petroleum Producers’ Organization Cape VII, April 1-5, 2019 in Malabo and The Gas Exporting Countries Forum 5th Gas Summit, also to be held in Malabo in November.

The government of Equatorial Guinea has designated Africa Oil & Power, the premier energy and investment platform on the continent, as the official organizer of the event programs for the Year of Energy, together with a special organizing committee designated by the Ministry of Mines and Hydrocarbons.

Image: oilandgaspeople.com

Record membership and fundraising for the African Energy Chamber in 2018

Johannesburg – September 24th, 2018 – As the leading and most influential advocacy group for the majority of the companies and workers in the continent’s oil and gas sector, the African Energy Chamber (AEC) has announced that the African oil industry continues to be strong and is rebounding well.

The rebound in global commodity prices has translated in renewed optimism and investment across the continent’s energy value chain, leading to improved policy dialogue and increased international investments across Africa’s energy markets.

The AEC has capitalized on the market’s dynamism to multiply networking activities, advocate for reformed policy frameworks and further encourage investment in the continent’s energy industry.

Having become the most successful energy industry’s advocacy and trade association for Africa, the Chamber notably partnered for the first time with Africa Oil & Power, whose 3rd conference and exhibition was held in Cape Town on September 5-7 2018.

The event attracted over 500 delegates and investors from North America, Europe, Asia, the Middle East and Africa, and saw the participation of leading figures such as OPEC Secretary General Mohammed Barkindo, Minister of Energy in South Africa Jeff Radebe, Minister of Hydrocarbons in Congo Jean-Marc Thystère-Tchicaya, Minister of Mines and Hydrocarbons in Equatorial Guinea Gabriel Mbaga Obiang Lima, Minister of Petroleum in South Sudan Ezekiel Lol Gatkuoth, Minister of Petroleum and Mineral Resources in Somalia Abdirashid Mohamed Ahmed, and former Zambian President Rupiah Banda.

As a relentless advocate of a strong African content, the Chamber has multiplied endeavors towards the development of local content policies and regulations in the continent, especially across its emerging frontiers. To assist Senegal in the development of a business-friendly and robust regulatory framework, the Chamber hosted a local content forum in Dakar on September 13th, during which Senegalese Prime Minister Mahammed Dionne reiterated Senegal’s commitment to both welcome foreign investors and implement a 50% quota of Senegalese content by 2030.

In encouraging investment and improving networking for the sector, the Chamber has also worked on resolving disputes with government and positioned itself as a leading mediator for Africa’s energy stakeholders. It has also multiplied international partnerships, the latest one being with the Houston-based International Association of Geophysical Contractors (IAGC) in order to further promote exploration across Africa’s sedimentary basins.

“The last two months have been record-breaking for the African oil and gas sector and the Energy Chamber,” declared the chamber’s executive chairman NJ Ayuk. “We saw a tremendous uptick in membership registration over the past two months alone from NOCs, IOCs and service companies and raised more than $500,000 over that period. I am personally happy that the majority of our historic fundraising and support comes from African companies. This ensures that we are going to have the resources to share their unique stories and push for more value for them to compete around Africa for deals that they have been traditionally excluded from.”

The African Energy Chamber now intends to focus on the international exposure of Africa’s oil sector by taking its community and network across geographies, notably Russia and China. At the invitation of Alexander Novak, Russian Minister of Energy, and Anton Kobyakov, Advisor to President Vladimir Putin, the African Energy Chamber will be leading a strong delegation of African government and private sector officials to the Russian Energy Week next month to discuss Russian investment in Africa. Another such dialogue is being planned in Beijing in the first half of 2019 so that the chamber’s members benefit from an open discussion with Chinese investors and stakeholders.

 

Dakar, September 14, 2018 – Senegal is determined to become the new frontrunner of Africa’s local content development. This is the conclusion of a local content forum held in Dakar on Thursday, organized by Les Conférences du Quotidien and hosted by the African Energy Chamber and Centurion.

Presided by Prime Minister Mahammed Boun Abdallah Dionne, the forum highlighted the potential for Senegal to redefine African standards for domestic capacity building and governance in the continent’s hydrocarbons sector. “Local content is a necessity,” declared the Senegalese Prime Minister during the event. “Encouraging the development of local SMEs throughout the value chain is of prime importance, as is the formation and training of Senegalese to boost national capacity and employability.”

The history of Senegal’s hydrocarbons sector is that of a toddler stepping into a giant’s shoe. The discovered gas reserves in the Turtle field alone are such that they could propel Senegal into a major LNG hub for Africa and the rest of the world. But for a country which has so far produced only limited gas quantity from onshore fields, taking such a big leap is not without its fears and challenges.

As Senegal expands its oil and gas exploration and development efforts, putting in place the right regulatory and governance frameworks will ensure the sustainability and social responsibility of its nascent hydrocarbons industry. The time to forge these is now, and a local content development framework must be the priority.

The development of robust and transparent regulations, which put local capacity building at the heart of policy-making, would provide Senegal with a very efficient framework to attract investments and boost local socio-economic development. “By being the latest entrant into Africa’s hydrocarbons history, Senegal has the opportunity to learn from the successes and failures of its neighbors,” explained NJ Ayuk, executive chairman of the African Energy Chamber and CEO of Centurion. “Local content is not corporate social responsibility. While the government must create an enabling environment, it is up to Senegalese people and companies to seize the opportunities offered by the country’s nascent oil & gas industry.”


As it embarks on this journey, Senegal has assets and qualities to build on. It has lessons to draw from its neighbors and African peers, and very strong institutions that can increase the chances of avoiding inefficiencies and corruption witnessed in other African jurisdictions. It is also a very stable country, whose economy has posted robust growth rates for years, and currently led by a President who understands the industry and is a former head of the country’s national oil company.

If its economy remains diversified and its oil wealth is used to further develop social infrastructure and support other growing industries, Senegal stands a great chance to be one of Africa’s best oil and gas economies.

 

 

VIENNA – The African Energy Chamber (AEC) would like to congratulate the Republic of Congo on becoming Africa’s 7th country to join the Organisation of Petroleum Exporting Countries (OPEC).

Congo is one of Africa’s mature oil producers, with production first coming online in the 1960s and reserves totaling about three billion barrels. It is also one of very few countries in Africa bucking a trend of declining oil production, with oil output increasing by 25% to reach 350,000 barrels of oil per day in 2018. This makes Congo the third biggest oil producer in sub-Saharan Africa after Nigeria and Angola. New developments in progress are expected to further boost production to 400,000 bopd by 2020.

In addition to oil, Congo also offers tremendous gas valorization and monetization opportunities in areas such as gas-to-power, urea, gas-to-liquids and methanol, with 300 to 400 billion standard cubic meters of gas reserves for the coming 20 years.

The AEC hopes that Congo’s entry into OPEC will allow the central African nation to develop stronger bilateral relations with other hydrocarbons producing nations, and facilitate the flow of investments into Congo as the country implements its new Hydrocarbons Code and is preparing a Gas Code to structure its gas value chain.