Gas discovery in the offshore Outeniqua Basin speaks to South Africa’s hidden oil & gas potential
Gives an opportunity for a meaningful dialogue on attractive legislation and local content development
Johannesburg, 7 February 2019 – The African Energy Chamber (AEC) welcomes the recent gas condensate discovery by Total in Block 11B/12B, 175km off the southern coast of South Africa. This is a great first step for the country which still relies on imports of oil and gas despite the great reserves believed to be in its soil and waters.
The discovery, which will help open a new hydrocarbons province in South Africa, could prove the presence of billions of barrels of oil equivalent in South African waters, which will undoubtedly change the course of the country’s economy and help reduce dependency on imports.
“The oil industry hopes this will be a catalyst and encouragement for all policy makers to work on an enabling business environment for exploration and drilling activities in South Africa,” declared NJ Ayuk, Executive Chairman at the Chamber.
“We believe South Africa holds the potential for many more such discoveries, and the time has come to have a meaningful conversation on local content development so the development of the industry benefits all South African workers and contractors across the value-chain and creates jobs for the communities.”
The gas discovery is a timely one as the South African government is currently working on a new legislation separating oil and gas from traditional minerals, and has released last year a new Integrated Resource Plan (IRP 2018) which ambitions to install an additional 8,100MW of gas-to-power capacity in South Africa by 2030.
It further echoes increased engagement of the South African government with the African and global oil industry. Since being appointed Energy Minister in 2018, Jeff Radebe has been leading a strong South African outreach to oil markets in Africa like Nigeria, Equatorial Guinea, Angola, South Sudan, many middle eastern producers and attending meetings of the Organization of Petroleum Exporting Countries (OPEC) in Vienna and seeking deals for state-owned South African companies such as the Central Energy Fund and PetroSA.
“Oil companies want to see leadership and sound governance wherever they invest,” added NJ Ayuk. “With South Africa demonstrating a commitment to reforms and the creation of an enabling environment for business, the oil industry is confident that the country can attract the the investment needed.”
• Calls for a pragmatic common-sense approach towards local content.
• Improved business climate will attract more investment and create sustainable jobs for Africans.
Johannesburg – February 4, 2019: The African Energy Chamber is proud to endorse the APPO Cape VII Congress and Exhibition to be held in Malabo on April 2-5, 2019.
Hosted by the African Petroleum Producers Organization under the Auspices of President Obiang Nguema Mbasogo, the summit will include a first-level meeting of oil ministers from the four corners of the continent, at a time when Africa is trying to boost its energy cooperation and promote infrastructural collaboration. Current APPO President, Nigerian Petroleum Minister Dr. Emmanuel Ibe Kachikwu, announced last month that the organization would mobilize up to $2bn to promote such collaboration across African oil markets.
“The oil industry is proud to support African oil nations as we desperately need to speed up our collaboration efforts and develop joint projects to maximize efficiency across the value-chain. From transnational pipelines to shared gas development infrastructure, collaboration can play a considerable role in boosting hydrocarbons developments,” declared the Chamber’s Executive Chairman NJ Ayuk. “We must do everything to improve the business climate by embracing better governance, limited government’s role in business activity, low taxes, and regulatory efficiency.”
The Congress will also be central in promoting, and advocating for, a stronger African content throughout the value chain. APPO plans to achieve a 30 percent share of local content services provided to the African hydrocarbons industry by 2030, which requires harmonizing local content laws and regulations across oil jurisdictions.
“Local content is at the core of Africa’s energy industry future. Without increased dialogue between the oil industry and governments, the regulatory frameworks needed to build local capacities cannot be properly implemented,” added NJ Ayuk. “We congratulate APPO on making such strong commitment to the African content. The oil industry is ready to share with APPO members best practices that have worked and delivered results and opportunities that improved the quality of life of everyday Africans through jobs.”
The APPO Cape VII Congress & Exhibition is organized by Africa Oil & Power and is part of Equatorial Guinea’s Year of Energy 2019, which will also see the organization of the Gas Exporting Countries Forum’s 5th Gas Summit in Malabo next November. The African Energy Chamber is a strategic partner of the APPO Cape VII.
The Chamber will mobilize capacity building initiatives,
It will work on reforms to boost an enabling environment for oil investors,
It will invest in energy access initiatives.
Juba – January 30, 2019: The African Energy Chamber has entered into a technical assistance cooperation agreement with the Ministry of Petroleum of the Republic of South Sudan to strengthen the country’s capacity to manage its hydrocarbons sector and wealth.
South Sudan has over the past year demonstrated a commitment to peace, which gives the country an opportunity to build long-lasting economic development and strengthen its engagement with the regional and international investment community.
The energy sector is the pillar of the country’s economic growth. As oil and gas exploration and production activity continues to picks up steam in South Sudan, there is growing need to increase the evel of local expertise required to manage the petroleum sector sustainably, push for rural energy access, and create long-lasting economic empowerment and sustainable development projects.
As a leading advocate of the African energy industry with institutional and corporate partners that have significant experience in Africa’s oil & gas sector, the Chamber will mobilize the oil and gas community to provide technical assistance to the South Sudanese government.
“We continue to do a remarkable job when it comes to oil field resumption. We are seeing an increase in production. However, capacity building programs are needed to have our citizens work and manage our oil resources properly. We welcome the support of the oil sector through the African Energy Chamber in its collaboration with our country,” declared Hon. Ezekiel Lol Gatkuoth, Minister of Petroleum in South Sudan. “This partnership with the African Energy Chamber once again proves the high level of trust and genuine cooperation that is needed to develop our country. Guaranteeing energy access is important for every South Sudanese in our march towards economic growth.”
This technical assistance will support South Sudan in building an enabling environment for business and a world-class oil industry for the benefits of all citizens and investors. Under the agreement, the Chamber will be conducting an immediate needs assessment of South Sudan’s oil and gas sector, detailing the key institutional and policy reforms required to strengthen capacity across the country’s value-chain. The Chamber will also work on key energy access initiatives and mobilize financing for South Sudan.
South Sudan is East Africa’s only mature oil producer so the interest of oil companies to invest in the market as it puts back damaged field into production is increasing,” declared NJ Ayuk, Executive Chairman at the African Energy Chamber.
“Now is the time for the oil industry to rally around South Sudan’s efforts to build a sustainable hydrocarbons sector whose revenues equitably benefit all South Sudanese. The strengthening of South Sudan’s oil sector is a priority as it will provide a pillar for the development of East Africa’s entire energy value-chain.”
Global oil and gas industry leaders and geoscience professionals will be gathering at the International Association of Geophysical Contractors’ (IAGC), 48th Annual Conference themed Accelerating Exploration, Expanding Energy Possibilities, on Wednesday, 20th of February 2019 in Houston.
The IAGC has announced the first-ever Africa-focused panel for the continent to be promoting its various investment opportunities within its acreages. Up to six bidding rounds are ongoing or about to be launched in sub-Saharan Africa this year, confirming the continent’s place as the hottest global exploration frontier.
The Africa panel will be featuring SE Aziz Rabbah – the Minister of Energy, Mines and Sustainable Development in Morocco, Mr Mustafa Sanalla – the Chairman of the National Oil Corp in Libya, HE Gabriel Mbaga Obiang Lima – the Minister of Mines and Hydrocarbons in Equatorial Guinea, HE Dr Mohammed Amin Adam – Ghana’s Deputy Minister of Energy-Petroleum Sector, HE Dr Arikana Chihombori Quao – the African Union Ambassador to the United States, and Atty. Saifuah-Mai Gray – President and CEO of the National Oil Company of Liberia.
Other industry leaders confirmed to speak at the conference include John Gibson, the Chairman at the Energy Technology, Tudor Pickering and Holt whose main address is Clarity for Accelerating Exploration: Market and Technology Drivers. Diego Mesa, the Colombian Energy Vice Minister will give the Americans Energy Policy Update.
On the Exploration panel, you can look forward to hearing from Niall McCormack, the Vice President Exploration at BHP,Richard Lunam – the President Exploration at CanocoPhillips, Martin Stauble – the Vice President Exploration North America and Brazil at Shell, and Joseba Murillas – the Executive Director Global Exploration at Repsol.
Moderated by Julie Wilson the Research Director for Global Exploration at WoodMackenzie and discussed under Clarity for Acceleration Exploration: Where are clients headed? on the Technology Panel will be Emeka Emembolu -the VP Reservoir Development: Gulf of Mexico, at BP, Tolu Ewherido VP Technical: Exploration at ExxonMobil, Tom Ridsdill Smith – VP Geoscience: Woodside Energy, Pascal Desagaulx, Manager: Global Upstream Geophysics at Total, Davide Calcagni – VP G&G Operations and Services: Eni and Jan Helgesen the VP for Geophysical Operations, Equinor.
For more information and to register, visit the IAGC website.
African Energy Chamber, January 20th, 2019 – After a year of rebound and recovery, Africa’s old and new hydrocarbons markets have an opportunity to further entrench the continent’s position as the world’s hottest oil and gas frontier in 2019. However, the new year also brings a new set of dynamics and challenges set to influence the future of the industry, from presidential elections to megaprojects developments, amidst intensifying international competition.
New African frontiers opening up
Independents are leading the way in exploring and opening up new frontiers across Africa. This year will be key for the advancement of new exploration and production development projects from West to East Africa. Developments to watch notably include Senegal’s SNE field development, where FEED works are ongoing and a final investment decision (FID) is expected by Woodside Energy and Cairn Energy this year; Niger’s Amdigh oilfield development, where Savannah Petroleum’s $5m early production scheme is set to start anytime soon; and the opening up of Kenya’s South Lokichar Basin by Tullow Oil, where FID is also expected before year end amidst rising tensions with the Turkana local community.
A year to confirm Africa as a global exploration hotspot
Ongoing bidding rounds in key existing and new African hydrocarbons markets will tell if Africa further confirms its position as the world’s new exploration hotspot and manages to attract necessary investment in its oil and gas acreages.
Amongst well-established African producers, OPEC members Gabon and Congo-Brazzaville each have ongoing bidding rounds. Gabon’s 12th shallow and deep-water licensing round is set to close in April 2019 and Congo-Brazzaville’s License round phase II in June 2019. With both countries struggling to implement their new Hydrocarbons Codes, the success of these rounds will tell if investors have been convinced by policy reforms developed over the past two years.
Two bigger African producers and also OPEC members, Nigeria and Angola, are set to launch landmark and out-of-the-ordinary bidding rounds this year. Nigeria will auction its gas flare sites under the Nigerian Gas Flare Commercialisation Programme, likely to happen after the February general election, and Angola will hold its Marginal Fields Bidding Round, result of a new May 2018 policy enacted by President Lourenço, and to be launched at the Africa Oil & Power conference in Luanda in June 2019. With the Nigerian Petroleum Industry Bill yet to be signed and the ink still fresh on Angola’s new policy regime, both rounds will also be key in assessing investors’ interest for both countries’ business environments.
Also attracting interest is the newest and arguably one of the upcoming entrants – Ghana – holding its 1st formal licensing round set to close in May 2019 which has reportedly got the attention of 16 oil companies, including majors ExxonMobil, BP, Total and ENI. As a hopeful new East African offshore frontier, Madagascar is also putting 44 concessions on offer until May 2019, none of which has ever been tendered or explored before. For a country without any major oil discovery to date, the ongoing license round is a wager test.
Africa’s struggling FLNG industry
After the start of commercial operations at Golar LNG’s Hilli Episeyo FLNG vessel in Cameroon in June 2018, hopes were high that Equatorial Guinea would soon move forward with its own Fortuna FLNG project, set to be Africa’s first deep-water FLNG development. While Fortuna was to be game changing for the gas industry of Equatorial Guinea and the rest of the continent, the development of the $2bn project has stalled due to a lack of financing. And the clock has been ticking since. The lack of progress on this plan has been so slow that operator Ophir Energy has been denied the extension of its license to operate block R (as of January this year), which contains the giant Fortuna gas discovery. While Equatorial Guinea’s FLNG aspirations look more uncertain than ever, 2019 will tell if the country can find the right partners to put the project back on Africa’s FLNG map.
Meanwhile, new entrants in Africa’s hydrocarbons stage are making remarkable advances towards the development of their own FLNG industry. On December 21st last year, BP finally announced its FID for phase 1 of the cross-border Greater Tortue Ahmeyim development between Senegal and Mauritania, which involves the installation of a 2.5MTPA FLNG facility. It became the third African FLNG project to reach FID after Cameroon’s 2.4MTPA Hilli Episeyo and Mozambique’s 3.4MTPA Coral South FLNG.
Mega projects on the move
Africa’s come back on the global oil and gas map is not only due to the vast natural resources found in its soil and waters, but also to the continent being home to mega energy projects set to transform the future of the industry.
On the upstream side, the recent inter-governmental cooperation agreement between Senegal and Mauritania, and BP’s FID on its cross-border Greater Tortue Ahmeyim development, bodes well for the future of West Africa’s hydrocarbons industry. The project aims at extracting the 15Tcf of gas estimated to be held in the Tortue gas field, located at a depth of 2,850 metres. However, the ability of both Senegal and Mauritania to work out their differences to ensure a more sustainable development of their offshore reserves and facilities around the MSGBC Basin is a factor to watch out for.
African mega gas projects are not the sole property of the continent’s West coast, with Mozambique moving forward with two landmark projects putting the Southern African nation on the global LNG map. Following the launch of the Coral South FLNG project by ENI in June 2017, a FID is now expected in the coming months for the Anardarko-led Mozambique LNG project, an onshore LNG development initially consisting of two LNG trains totaling 12.88MTPA to export the gas extracted from the offshore Area 1, estimated to contain a whooping 75Tcf.
Sub-Saharan Africa’s biggest petroleum producers, Nigeria, is also moving forward with massive oil development projects in 2019. Last year already saw the launch of Total’s $3.3bn Egina FPSO in Nigeria, where production officially started in the first days of 2019 and is set to peak at 200,000 bopd. FID is now expected on Shell’s Bonga Southwest offshore field in Nigeria early this year, a multi billion-dollars development whose production is expected to reach 180,000 bopd.
International contenders and pretenders
As Africa strengthens its position at the centre of global transformations, it is increasingly becoming the playground for international actors willing to benefit from the continent’s vast resources.
While China has asserted its position of a contender in the continent, will new continental dynamics lead the Asian giant to change its investment strategy or portfolio? With Russia’s intentions on the continent becoming clearer and clearer, will the first Russia-Africa Summit this year translate into more concrete Russian deals across the continent? At the same time, will the US’ “Prosper Africa” initiative launched in December 2018 be able to counter both rising international competition and declining US influence on the continent?
A complex energy diplomacy dilemma for OPEC in Africa
With a majority of its members made up of African nations since the joining of the Republic of Congo in June 2018, OPEC’s evolving relationship with the continent as it strives to manage the global supply glut will be requiring skillful diplomatic ingenuity.
On one side, Africa’s biggest producers and OPEC members Algeria, Libya, Nigeria, Angola and Congo-Brazzaville, are striving to boost their domestic output, which makes it harder and harder for the Organisation to negotiate its production cuts.
On the other side, the continent is also home to a flurry of upcoming petroleum producers like Senegal, Kenya or Uganda, or old players making a comeback like South Sudan, some of them part of OPEC’s Declaration of Cooperation, whose upcoming or increasing output adds another layer of complexity to the formulation of OPEC’s global oil prices management strategy.
An increasing African output from OPEC and non-OPEC member countries only complicates OPEC’s maneuver capabilities and increases its dilemma of both providing a stable pricing environment conducive to investments, while avoiding a worsening of the supply glut that would push prices further down.
Africa’s biggest petroleum producers casts their ballots
Amongst the series of elections happening in the continent this year, from Senegal to Mozambique, none will be more important for the African oil sector than that of Nigeria this February. The Nigerian presidential election is set to shape the future of the industry, not only because Nigeria is Africa’s biggest oil & gas producer, but because what happens in Nigeria impacts the rest of the subcontinent one way or the other. While both Muhammadu Buhari, seeking re-election, and his ally turned rival Atiku Abubakar have committed to the signing of the Nigerian Petroleum Industry Bill, the ability of the future President to get his office in order and get the bill passed quickly will heavily influence investments within Nigeria’s hydrocarbons sector for years to come.
North, Algeria and Libya are also entering an election year, with the 2019 Libyan general election set for the first half of the year, and Algeria’s for April. Both countries are on a transformation path. Libyan authorities plan to more than double the country’s output to 2.1 million bopd by 2021, providing politics doesn’t tamper hydrocarbons governance and the work of the National Oil Company. With Muammar Gaddafi’s son Saif al-Islam Gaddafi set to stand for election and the country still divided between West and East, maintaining the stability required by investors will prove challenging.
In Algeria, where a wave of reform is shaking the entire hydrocarbons sector, elections are expected to maintain a relative status-quo, at least politically speaking. The country’s national oil company, Sonatrach, has launched an ambitious transformation strategy that will see it investing $56bn over the next four years and internationalizing its operations across major global energy markets. 2019 could even see the state-owned giant and Africa’s biggest company further expand south of the Sahara.
Angola’s steady road to reforms
Since taking office in the summer of 2017, Angolan President João Lourenço has been implementing a bullish reformist agenda which is drastically transforming the governance of the country’s oil & gas sector. Angola is reforming fast, but will market forces allow changes to happen at that pace and yield the results that the government is looking for?
While international investors seem to think so, with Total and BP signing major agreements to boost their Angolan operations over the past few months, 2019 will tell if the international oil industry is being convinced of Angola’s return as a competitive African frontier or not.
To showcase the work being done by Sonangol and the Angolan government to generate more investment in the country’s oil & gas industry, Angola is backing up an international conference being organized by Africa Oil & Power in Luanda on June 4-6, 2019, where it will be launching the Angolan Marginal Field Bidding Round. This will be the first official investment roadshow organized in Angola under the current administration, and one that is set to unveil a new set of reforms and investment commitments.
South Sudan’s march to peace
The major progression in South Sudan, and one on which the entire economy relies, is that of the peace accords. The Sudanese and South Sudanese authorities have time and again demonstrated their commitment to the peace process, which has remained peaceful for the most part. However, will peace deals translate into investment promises and money being invested into the South Sudanese economy this year? Some signals point to that direction, with South Africa’s Central Energy Fund committing $1bn to South Sudan late last year, but markets are still skeptics and observers will remain pragmatics and wait to see how the peaceful transition is managed and how oil production resumes before making any concrete moves.
A year to improve market access for East African producers
With Uganda set to join the club of African petroleum producers by the early 2020s, efforts are on the way to develop adequate infrastructure for the evacuation of oil that will be produced from the Lake Albert Basin. The project seemed to be positively moving forward when Uganda and Tanzania exchanged the inter-governmental agreement for the 1,443km East African Crude Oil Pipeline in May 2017. However, the partners in the pipeline’s construction, French major Total, China’s CNOOC and Tullow Oil, are yet to make a final investment decision on the project. Meanwhile, the Host Government Agreements are to be signed this January, but delays in concluding the pipeline’s financial deal have already pushed back Uganda’s oil production ambitions from 2020 to 2021. The pipeline is crucial for the further integration of the East African community and to set a positive record of joint planning, financing and implementation of landmark energy projects in the region.
Johannesburg – January 14, 2019: The African Energy Chamber welcomes the improvement of Equatorial Guinea’s business environment via the establishment of a one-stop shop for setting up businesses in the country.
“The implementation of Equatorial Guinea’s one-stop shop allows companies to set up a business in Equatorial Guinea in only one week, putting the country at par with global standards, said NJ Ayuk, the Chamber’s Executive Chairman. For the African Energy Chamber and the oil industry, it is important to encourage men and women who find opportunities, have ideas of innovative services and unavailable products, those who have the courage to deploy capital, accept risk, and make it happen.”
While Equatorial Guinea benefits from a reasonably good infrastructure, investors have traditionally been timid to set up shop in the country given its excessive bureaucracy and regulations sometimes seen as unfavorable to business.
The government does recognize it has an enormous task of fostering an environment where investors and small and medium enterprises can succeed. The government continuous move to implement sound and efficient business regulations will be critical for entrepreneurship and a thriving private sector.
President Obiang Nguema Mbasogo had been personally advocating for stronger reforms to the country’s business environment over the past few years, especially under the National Economic Development Plan: Horizon 2020.
The Chamber sends its heartfelt congratulations to Equatorial Guinea’s Ministry of Finance, Economy and Planning, on taking positive steps towards reforming its business environment as it enters into its Year of Energy, which will see a series of global roadshows and international summits being hosted by Malabo, and excepted to attract billions of investments into the country. In addition, the 3rd National Economic Conference is also set to be held this year in Equatorial Guinea.
Under the Year of Energy programme, Equatorial Guinea will be hosting the APPO Cape VII Congress & Exhibition between April 1-5, organised by Africa Oil & Power, and the Gas Exporting Countries Forum 5th Gas Summit in November, the first to be held on the African continent.
Johannesburg – December 11th, 2018: The African Energy Chamber proudly endorses the Nigeria International Petroleum Summit (NIPS), to be held in Abuja’s International Conference Centre on January 27-30, 2019.
Our members, which include the majority of the international oil companies (IOCs), services companies and many African players will be in Nigeria to participate in the summit. The attending investor groups among the chamber’s members represent billions of dollar worth of inbound investments to the Nigerian oil & gas sector.
Our members want to invest and NIPS is one of the best platforms to expand the intra-Africa energy cooperation, promote investments and generate new joint-venture and cooperation opportunities in Africa’s biggest oil producing market.
“Foreign investment into Nigeria’s oil & gas sector is a game changer for Nigerian and African businesses and the economy. We continue to be excited by this opportunity because many investors will gain a better understanding of today’s most critical issues, challenges and opportunities facing the Nigerian oil & gas sector at this industry-driven conference. While there is a focus on oil, Nigeria is more of a gas economy and stands to do more with gas” declared Executive Chairman of the Chamber NJ Ayuk. “Nigeria has come out of its recession stronger and with a continuous push towards reforming its business environment and remains Africa’s biggest hydrocarbons market. Its ongoing reforms have strengthened its position as Africa’s prime oil & gas investment destination, and the NIPS will be the perfect platform to advance the country and its investors’ business agenda,” he added.
“The NIPS 2019 is designed to be Africa’s largest and most important industry platform,” said Nigeria’s Minister of State for Petroleum Resources Dr. Emmanuel Ibe Kachikwu in a message addressed to all participants. “It will provide linkage to the world for engineering and technological breakthroughs, major contract sign offs and side events.”
With an upcoming gas flare commercialization bid round, the Chamber notably invites stakeholders within the gas value chain to actively participate in the summit and seek opportunities within Nigeria’s untapped gas value chain. From exploration & production to gas infrastructure, commercialization and distribution, Nigeria is the next gas frontier in Africa and offers tremendous potential for investment.
Further details on the event can be obtained from the event’s website, www.nigeriapetroleumsummit.com or by contact the event organizer Brevity Anderson at info@brevityanderson.com.
Johannesburg — The African Energy Chamber urges the Organization of the Petroleum Exporting Countries and other key global oil producers, including Russia, to continue with the historic production cuts at the December 6, 2018 OPEC meeting to stabilize the oil price.
Oil prices have dropped by about 20 percent in November, and the month is likely to record the biggest one-month decline in oil prices since the crash of 2014. This is not good for producers in Africa and African economies.
The Chamber urges African producing nations, both those that are OPEC members and Non-OPEC members to speak up with one voice in support of OPEC’s policy on stabilizing the market.
“This new drop in oil prices clearly shows the world that the global supply cut has not been eliminated. The future of the petroleum sector — and indeed the future of global energy security — depends on a continuation of the OPEC-led production cuts,” said NJ Ayuk, chairman of the African Energy Chamber.”
Oil producing nations, many of which are within Africa, are at particular risk of economic hardship if the supply glut continues and prices spiral. Such countries include Nigeria and Angola, two of Sub-Saharan Africa’s largest economies, as well as Equatorial Guinea, Cameroon, Congo, Gabon, South Sudan, Algeria, Libya and Ghana. Other key countries that are investing in upcoming mega projects, like Mozambique, Uganda and Senegal, could face project delays in the face of low oil prices.
The historic Declaration of Cooperation, moderated by OPEC’s Secretary General and Africa’s own son, H.E. Mohammed Sanusi Barkindo which was signed in 2016 by OPEC countries and 10 non-OPEC countries and saw several extensions, is set to expire at the end of 2018.
“The historic Declaration of Cooperation is largely credited with rescuing the oil industry from collapse, and returning economic security to oil-dependent nations, many of which are in Africa. Abandoning this extraordinary deal now would only see production increase and the supply glut worsen — effectively making any progress achieved in the last two years null and void,” stated Ayuk.
“When the oil market is in crisis, the path to dignity and prosperity is closed off to many African families. It leaves many Africans, particularly those without advanced degrees on their own to chart their own course where clear and attainable paths to a meaningful and prosperous life once existed.” Ayuk continued
The opinion of many Africans on OPEC and the energy sector has taken a measurable, positive jump as people acknowledge the strong connection between the oil and gas sector, the African economies and the African entrepreneurial dream.
The Africa Energy Chamber stands by OPEC and Consumers and we will continue work with our members to educate the public of the need for lasting stability in the oil industry.
It is our firm belief that the 2016 Declaration of Cooperation rescued the oil and gas industry and many African economies from imminent collapse. This should be continued next week in Vienna Austria.
Juba, November 22nd, 2018 – The African Energy Chamber is encouraged by the progress made in South Sudan’s oil sector after the peace agreement. The success of the South Sudan Oil & Power 2018 conference, which was attended by over 750 participants representing upstream, midstream and downstream sectors of the oil sector from Africa, Europe, North America and the Middle East is a step in the right direction.
We are also encouraged by the Ministerial delegations from many countries like Equatorial Guinea, Sudan, Somalia, Saudi Arabia, Nigeria, Russia, Uganda, etc. The success is an indication of South Sudan’s increased attractiveness for African and international investors, as the East African nation works to ensure a stable peace and has doubled efforts to ramp up production and drill more wells.
“The presence of several international oil companies in Juba this week is very encouraging and shows that South Sudan is doing its best to restore the trust of the international investment community and should be encouraged by all parties,” declared Executive Chairman NJ Ayuk form Juba.
The Chamber supported South Sudan’s efforts to build a lasting peace, which resulted in a new peace agreement signed last month between rival factions. “The local and international oil community has an obligation to support both peace talks and the South Sudanese leadership to promote peace and reconciliation. We also call on the government to continue its efforts in encouraging an enabling environment, promoting local content and prioritizing the role of women in the oil sector” said NJ Ayuk.
We commend H.E. President Salva Kiir for meeting with H.E. Azhari Abdel-Gadir Abdalla, Minister of Petroleum and Minerals of the Republic of Sudan; H.E. Gabriel Obiang Lima, Minister of Mines and Hydrocarbons of the Republic of Equatorial Guinea; Hon. Lokeris Peter, Minister of State for Energy and Minerals Development, Republic of Uganda; and H.E. Mahaman Gaya, Secretary General of the African Petroleum Producers’ Organization (APPO) to encourage collaboration on oil and gas matters.
H.E. President Kiir and the Minister of Petroleum of South Sudan, H.E. Ezekiel Lol Gatkuoth’s continuous efforts to work with other Africans, OPEC and Non-OPEC nations in balancing and stabilizing the oil market is very encouraging to our members as we all work to prevent another supply glut in the oil sector. The Chamber continues to support all efforts to do balance the oil markets including trimming supplies as it is good for African producers, its citizens and the investors.
South Sudan remains under-explored, despite being East Africa’s oldest and biggest oil producing nation. Although, production is being ramped up, South Sudan’s latest oil & gas entrant, Oranto Petroleum, started exploration on Block B3 a year ago.
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.
