Download logoThe African Association of Energy Journalists and Publishers, AJERAP, (www.AJERAP.org), has listed four countries - Nigeria, Gambia, Namibia and Senegal - as top energy investment destinations to watch in the second half (July – December) of 2024.
In its latest report - African Energy Outlook Second Half of 2024 - AJERAP (www.AJERAP.org), noted that with increased activities, especially oil and gas, the four nations have become very strategic for investors interested in investing in the continent.
Nigeria
The report (https://apo-opa.co/46TJHfp), stated: “Nigeria is a major energy destination to watch at this time for some reasons. First, the nation, which made it first oil discovery in 1956, is naturally endowed with more than 37 billion barrels of crude oil reserves and more than 206 trillion cubic feet of proven gas reserves. Second, with over 200 million population, Nigeria presents a single huge market to investors interested in not only oil and gas, but also offering other products and services in the energy value chain.
“Third, the nation has placed about 31 major oil blocks for bidding, thus providing another opportunity for International Oil Companies, IoCs and indigenous companies to venture into business. Communities will attract many benefits from natural resources domiciled in their areas as some nations have already put in place the regulations, structures and systems to make it work.
“However, community agitations will be experienced in some parts of the continent following the disagreement between companies and host communities, thus scuttling production while reducing revenue generation. The stakeholders, including the government at all jurisdictional levels, investors and communities, can manage any conflicts and move on.
“President Bola Ahmed Tinubu and Minister of Petroleum Resources, Nigeria has embarked on a transformative agenda that aligns with the most stringent global standards and commitments. The recent Presidential Executive Orders issued in March this year, aimed at improving the efficiency and attractiveness of Nigeria’s oil and gas sector, were generously targeted to incentivize oil and gas development, introduced measures to balance the implementation of Nigerian Oil and Gas Industry Content Development Act, 2010 to ensure that oil and gas development is not hindered by local content bottlenecks.
“Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Engr. Gbenga Komolafe, said: "Nigeria under President Bola Ahmed Tinubu, as the Minster of Petroleum Resources, has proactively and intuitively vacated barrier to entry for investment in exploration blocks being offered, in both the 2022 deep offshore bid round and the 2024 licensing round, in line with international best practices.
“The Executive Orders also include directives on the reduction of contracting costs and timelines to enhance the global competitiveness of our oil and gas industry and achieve a higher rate of return on oil and gas investments.”
According to the report, “Nigeria is endowed with abundance of Crude Oil and Condensate Reserves and of Natural Gas Reserves representing above 30% and 33% respectively of the entire Oil and Gas reserves in Africa aside abundant mix of other renewable energy resources. In a bid to exploit and optimize these abundant Hydrocarbon resources, Section 7(t) of the Petroleum Industry Act (PIA) empowers the NUPRC, the Industry Regulator to conduct bid rounds for the award of PPLs and PMLs under the Act and applicable Regulations.
“It is on this premise that the Federal Government of Nigeria through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently announced the commencement of the 2024 Licensing Round both in-country and outside the shores of the nation. It would be recalled that we commenced the announcement at the maiden edition of the NEITI Dialogue Session, 2024, where the bid processes were thoroughly interrogated by civil society and the media.
“This was subsequently followed by the announcement of the commencement of the bid round at the 2024 OTC in Houston, the roadshow in Miami organized by Zeste Advisory, African Energies Summit in London organized by Frontier Network and Invest in Africa Energy Summit in Paris organized by Energy Capital Power. The Commission aims to project and attract robust local and foreign investors who will be participating in the bid exercise.
“The NUPRC on behalf of the Federal Republic of Nigeria is committed to conducting the licensing round in a fair, competitive and transparent manner and ensuring a level playing field for both indigenous and international investors. Our approach is underpinned by the robust legal framework of the Petroleum Industry Act 2021(PIA), which ensures compliance with best practices to boost investors’ confidence.”
Gambia
It stated: “The Gambia is an emerging oil and gas province with great promise. Exploration for hydrocarbons in the country dates back to the 1950s, even though the initial efforts were not successful. But the deployment of new technologies, including 3D seismic data gathering has culminated in the making of much impact.
“Further studies are ongoing at various locations, including Block A2-A5 area, located towards the south and along structural trend with the recent discoveries in neighbouring Senegal. The Gambia looks forward to welcoming investors interested in investing in the nation.
“Under the leadership of Mr. Nani Juwara as Minister, the Ministry of Petroleum and Energy, MoPE, has provided policies and incentives targeted at enhancing investment and development of the nation’s oil and gas industry. The MoPE, created in 2016 following the merger of the Ministry of Energy and the Ministry of Petroleum, has the mandate to use mineral resources, petroleum and energy as a stimulus for economic growth; employment and sustainable development of the nation. The Ministry also has the mandate to work towards harnessing hydrocarbon and mineral potentials for the sustainable development of power and other sectors of the economy.
“Similarly, the Petroleum Commission, which has Mr. Jerreh Barrow as Director General, regulates upstream and midstream petroleum activities, including managing petroleum resources, ensuring compliance with laws, policies, and regulations as well as promoting Local content for sustainable national development.
“The Commission coordinates upstream and midstream activities, including the licensing of the nation’s onshore and offshore oil blocks, receiving applications and issuing authorizations for specific petroleum activities as required under petroleum laws and regulations; supporting and facilitating acquisitions of authorizations from relevant institutions; and assess and approve appraisal programs.
“Also, The Gambia National Petroleum Corporation (GNPC) is a state-owned company, established in 2003 under the Companies Act of The Gambia, to conduct petroleum operations on behalf of the Gambian government.
“Specifically, the GNPC, having Baboucarr Njie as Managing Director, handles the upstream oil and gas operations in The Gambia on behalf of the government, including conducting seismic surveys, exploring for hydrocarbon resources, developing discoveries into production, and managing the resulting oil and gas production. Other companies carry out different activities, including Total Gambia Limited, Elton Oil, Castle Oil Limited, Galp Energia, Gam-Petroleum and Jah Oil Company Limited in The Gambia.
“The Gambia’s location on the Atlantic Ocean makes it one of the most strategic business hubs in West Africa. With only about a six-hour flight from Europe, The Gambia is strategically located and suitable for both regional and global exports as well as a good entry point for the ECOWAS 400 million population market.
“In recent years, the government of President Adama Barrow has been focusing investments in road infrastructure, while plans are underway to upgrade and expand the seaport of Banjul and build a deep sea port on the coast, off Sanyang, that would enable deep-sea vessels to take advantage of the country's trading incentives.
“As oil and gas exploration in neighbouring Senegal begins to yield fruits this year, the existing infrastructure there gives opportunity for the Gambia, since Australian firm, FAR Oil and the NNPC Ltd engage in oil and gas exploration offshore The Gambia.”
Namibia
The report noted that “Namibia is another space to watch in the second half of 2024 for at least a reason. The country has already made its major offshore finds by TotalEnergies and Shell (SHELL). James Parr, vice president for new ventures exploration and development at Woodside Energy, has remarked that "It is one of the newest and most attractive areas being explored by the industry and we are very excited by the discoveries so far.
“In recent years, the government of President Adama Barrow has been focusing investments in road infrastructure, while plans are underway to upgrade and expand the seaport of Banjul and build a deep sea port on the coast, off Sanyang, that would enable deep-sea vessels to take advantage of the country's trading incentives.
“As oil and gas exploration in neighbouring Senegal begins to yield fruits this year, the existing infrastructure there gives opportunity for the Gambia, since Australian firm, FAR Oil and the NNPC Ltd engage in oil and gas exploration offshore The Gambia.
"The oil is potentially some of the lowest carbon barrels being found currently so on the spectrum of oil its very attractive. There seems to be abundant gas which is also part of our transition and a big focus for Woodside.
“Besides oil and gas, Namibia has other natural endowments, including wind and solar energy resources for green hydrogen investors. There are also substantial deposits of minerals. The proximity of Namibia to South Africa also grants investors easy access to maritime transport infrastructure for export and import of goods.”
Senegal
The report identified Senegal as another African nation to watch after making its first oil find, adding: “It looks forward to producing 100,000 bpd from the Sangomar deep-water project. President Bassirou Faye has assured the nation that profits from the sale of the country’s oil and gas would be well managed.
It also quoted Thierno Ly, the general manager of the national oil company, Petrosen, as stating: “We have never been so well positioned for opportunities in Senegal for growth, innovation and success in the economic and social development of our nation.”
The report maintained that it will be interesting to watch how events will unfold in the emerging oil and gas province and how wise and forward-looking investors would key into the nation's plans and shared prosperity.
On his part, the Managing Director of IBC Consultancy, Haddison Etchou, said: “Africa’s natural resource endowment presents great opportunities for achieving high levels of growth and development if well managed. In the case of African countries, it is not understandable if resource-rich countries have been able to take their full potential to promote development.”
However, AJERAP cautioned that the Outlook does not constitute a feasibility report, adding that investors, potential investors and others should conduct their feasibility studies before taking further actions.
Distributed by APO Group on behalf of AJERAP.
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