By NJ Ayuk, Executive Chairman, African Energy Chamber (www.EnergyChamber.org)
After the dramatic post-COVID slowdown in 2020-21, 2022 is turning out to be a banner year for the African oil and gas industry. The industry is poised to grow in the second half of this year.
That is the forecast presented by the upcoming State of African Energy Q2 2022 report, to be published by the African Energy Chamber this summer. According to the report, increased oil and gas activity and a record number of new discoveries have set the stage for significant industry growth in the second half of 2022.
In Namibia alone, for example, two groundbreaking discoveries, Shell's Graff and Total Energies' Venus-1X, have opened a frontier oil field on land. Industry experts estimate that Venus-1X may contain recoverable resources of about 3 billion barrels of recoverable oil, making it the largest oil discovery in sub-Saharan Africa's history.
Namibia, in fact, has led the way in new oil and gas activity this year and is emerging as an exploration hot spot. In northeastern Namibia and northwestern Botswana, ReconAfrica has authorized operations for the recently discovered 8.5-million-acre Kavango Basin, one of the largest undeveloped land basins in the world.
This is great news for our industry, which was hit especially hard by COVID and has struggled to regain momentum. The energy sector was affected by historically low volumes in 2020 and 2021, creating an even more critical need for new exploration.
And Namibia is just one example of the new discoveries being made across Africa. The Q2 2022 report outlines a number of new developments across the continent.
Eni discovered the Baleine field in the Ivory Coast last year, which contains up to 2 billion barrels of recoverable oil and almost 2 Tcf of gas offshore. This is a big problem for Côte d'Ivoire, which has so far been producing around 34,000 barrels of crude per day in four blocks.
In Angola, TotalEnergies is drilling for the first time since 2018 and has signed a sale and purchase agreement with state-owned Sonangol for two blocks in the offshore Kwanza basin. Other large companies, including ExxonMobil, Chevron, BP and Eni, are also active in Angola.
More than a dozen high-impact wells are forecast in the next 18 months in Libya, Ghana, Mozambique, South Africa, Equatorial Guinea, Morocco, Egypt and others. Egypt alone has awarded eight oil and gas exploration blocks to Eni, BP, Apex International, Energean, United Energy, Enap Sipetrol and INA.
And after long delays due to COVID, licensing rounds are planned, open, or under evaluation in more than a dozen countries, including Angola, Equatorial Guinea, Ghana, Gabon, and Congo. The results are expected to be announced this year.
Increased spending on new facilities is also forecast as more projects get the green light. In Kenya, for example, large investments are expected in the greenfield development of Tullow's South Lokichar Basin in Turkana County. With an estimated 585 billion barrels, this is widely considered to be one of the last large conventional onshore projects in the world.
These discoveries and others referenced in the Chamber's Q2 2022 report are tremendously exciting. And if we manage them properly, we can make significant progress towards our goal of a just energy transition: alleviating energy poverty, stimulating economic growth and improving the lives of Africans every day.
Environmental activists may be up in arms, insisting that we leave oil and gas where it is and ditch all hydrocarbons in favor of renewable energy. Obviously, we recognize the tremendous opportunities that renewable energy represents for African nations, and we are taking decisive action to seize those opportunities. But there are enormous challenges associated with the premature abandonment of fossil fuels. For Africa to grow and diversify its economy, build capacity and establish its rightful place as a global energy hub, we must fully utilize our oil and gas.
This does not mean ignoring renewable energy and making climate change a low priority. It doesn't mean just using fossil fuels. Instead, it means using those resources to pave the way for universal electrification and the gradual introduction of renewable energy over time. It means starting with fossil fuels and looking for ways to strike a balance, creating a new template for the success of the energy transition.
The State of African Energy Q2 2022 report outlines an unprecedented level of new oil and gas discoveries on the African continent. Again, this is exceptionally good news, especially in the post-COVID environment, but only if we take the right steps to harness the potential of these resources.
The simple and staggering fact that more than half of sub-Saharan Africans lack access to electricity means that ending energy poverty must remain our priority. With Africa's population projected to exceed two billion by 2040, our generating capacity will need to double by 2030 and increase fivefold by 2050.
Oil and gas are the lifeblood of Africa and the foundation of our economic development. Our future depends on maintaining the longevity of our industry. And with such large amounts of oil and gas available, we should increase our production accordingly and use those resources to benefit Africans.
The wealth of new oil discoveries in Africa is not only an opportunity to recoup some of the devastating losses we have suffered in the last two years, it represents an opportunity to achieve an energy transition that benefits all Africans. It is our responsibility to make the most of it.
The African Energy Chamber (AEC) participates in the world's largest festival of Afro rhythms, Afro Nation, mobilizing thousands of Africans and the African diaspora to promote a just energy transition and defend Africa's right to use fossil fuels. Representing the voice of the African energy sector, as well as a strong advocate for Africa's socio-economic development, the ACS will travel to Afro Nation, promoting the role that youth play in Africa's energy future.
Representing the fastest growing population, as well as the youngest population in the world, Africa's human capital is second to none. With the continent's energy future largely determined by the ability of its young population to mobilize and drive investment and development in the continent's oil and gas sectors, the ACS will engage with a variety of people at the festival, lobbying for a just transition in Africa. which is driven by the young population. Afro Nation offers a unique opportunity for the ACS to directly discuss the challenges and opportunities facing Africa's energy sector, while promoting the role of youth in defining a future focused on Africa's needs.
The narrative is clear: Africa needs and deserves to develop its oil and gas resources. The youth of Africa are both the future of the continent and of the African energy industry and therefore must drive the development of these resources to make energy poverty history by 2030, leading the continent into a new era of socio-economic success. . During Afro Nation, the AEC delegation, led by CEO NJ Ayuk, will promote tax reduction and support for energy investors, drive project development and support the work done by energy companies including Eni, while investing in the Ivory Coast, Mozambique and Congo. ; TotalEnergies, as they develop gas in Mozambique, Namibia and South Africa, while developing the East African Crude Pipeline; and ExxonMobil, as they explore Africa and continue to produce low-carbon hydrocarbons. Young Africans and the diaspora must push the narrative of Africa in Western countries.
“Young Africans represent the future of Africa, and it is important that we have enabling environments for young people to start and grow businesses in Africa. Energy poverty is real, and the AEC is honored to have the opportunity to champion Africa at the Afro Nation festival. We want many young people to participate in making energy poverty history and in the African Energy Week in Cape Town. We are considering a Just Energy Transition Concert on October 17, 2022 in Cape Town with various African artists,” says Ayuk, adding that, “As far as I am concerned, new oil and gas discoveries are promising developments for African countries. communities, companies, entrepreneurs, the African diaspora and young people who hope to build a bright future for themselves.”
Each of the recent discoveries in Africa can, directly or indirectly, open the way to good-paying jobs, the development of valuable new skills, gas for home gas-to-energy programs and much more. Therefore, it is necessary to stimulate economic development, attract investment and create jobs for young Africans and the diaspora. In this sense, Africa has an advantage on the world stage: a young population. If we empower our youth, they will make energy poverty history, avoid aid, embrace free enterprise, and defeat the xenophobia, sexism, and homophobia that continue to plague our communities. But we must empower them with an education that focuses on the just energy transition.
We will not be successful unless our people are trained and mobilized to get involved. Successful African entrepreneurs can help by serving as mentors, and African businesses can make a difference by offering young people internships where they can cultivate the soft skills needed for business success. The lack of investment in fossil fuels means that many of the young people at the Afro Nation festival will have to leave the oil resources, the riches of our continent, underground, or be branded enemies of the environment. The result? The jobs that should and could be available to young Africans are like dust on a windy day: infinitesimal, scattered and increasingly out of reach.
By Paul Sinclair, Vice President of Energy and Director of Government Relations, Africa Oil Week (www.Africa-OilWeek.com) and Green Energy Summit Africa.
As Africa's energy sector gears up for the upcoming African Petroleum Week, Dr. Omar Farouk Ibrahim, Secretary General of the African Petroleum Producers Organization (APPO), says the continent must balance the pursuit of sustainability with its enormous energy needs and its significant development challenges. . Most importantly, Africa must pursue sustainable energy on its own terms.
African nations will strive to meet the commitments of the Paris Climate Agreement and move the region towards renewable energy. But Africa will do this on its own terms, charting a transition course that prioritizes improving the living conditions of its hundreds of millions of people who currently live in abject energy poverty, especially in rural areas, without access to electricity. or in any modern way. energy for cooking and heating homes.
This is the message from Dr. Omar Farouk Ibrahim, Secretary General of the African Petroleum Producers Organization (APPO). Dr. Ibrahim was speaking in preparation for the African Oil Week (AOW) in Cape Town from October 3-7.
Dr. Ibrahim will be the keynote speaker at Africa Oil Week, the continent's premium energy event, where he says it will be critical for Africa to defend its right to use its own natural resources for the foreseeable future.
“There is a growing consensus across the continent that we cannot make much progress in our quest to effectively eradicate or alleviate poverty without access to an affordable and reliable source of energy. And renewable energy, at least for the foreseeable future, is neither affordable nor reliable. Until renewable energy becomes affordable and reliable, it is safer for Africa to rely on fossil fuels to change the lives of its people, just as today's developed countries did for more than a hundred and fifty until they weaned their countries from energy-dependent economic activities. Dr. Ibrahim said. "Gone are the years when Africa's priorities were determined outside the African continent."
Many of Africa's energy resources remain untapped, both in terms of renewable energy (https://bit.ly/3R3IQQW) and fossil fuels (https://bit.ly/2mqAZCT). Dr. Ibrahim said that Africa had the right to unlock these vast reserves for the benefit of its people, as well as the world at large.
Mid-century is the deadline (https://bit.ly/3a168pF) that most developed countries have set themselves to become carbon neutral.
However, as an emerging region, Africa cannot afford to leave its energy assets "stranded" (https://bit.ly/2mqAZCT), especially when around 500 million Africans still live (https://bit. ly /3a16b4P) below the poverty line of $1.90 per person per day.
“Africa is only responsible for about 3.8% (https://bit.ly/39XTrfr) of global greenhouse gas emissions,” Dr. Ibrahim said. "We are moving towards renewable energy, but it would be injustice if Africa were forced to abandon our natural resources because the developed world has been polluting the planet for more than a century."
He said that African producers must be allowed to responsibly develop their energy assets for economic development and job creation in their own economies.
“The conversation doesn't need to be polarized,” Dr. Ibrahim said. “We agree that each nation must determine its own optimal energy mix in the run-up to 2050. Producers in Africa are not ignorant of global climate pressures, but we all believe that upstream can be developed for the good of Africa without compromising the environment. . The technology exists. And even if it doesn't exist, all that is required is a commitment to develop it. But those with the technology have no interest in making fossil fuels environmentally friendly."
Dr. Ibrahim said that APPO was working to create a policy environment that supports producers by attracting responsible investment at an early stage. “It should be a win-win solution,” he said.
APPO was established in 1987 as a platform for cooperation and harmonization of efforts, collaboration and exchange of knowledge and experience among African oil-producing countries.
“We are all working towards carbon neutrality.” Dr. Ibrahim said. “But until then, we need an affordable and reliable power supply. Renewable energies still do not meet the full energy demands of any nation on earth; hydrocarbons must satisfy those needs”.
“Who will meet those needs of the African people?” asked Dr. Ibrahim “Why shouldn't it be any of the APPO member countries? Why should we stop promising offshore exploration off the coast of Namibia, Mozambique (https://bit.ly/3u4i5ly) or anywhere in Africa when hydrocarbons are still required to fuel Africa's development?
Dr. Ibrahim emphasized that Africa was a region of enormous opportunities, which must be exploited for the good of Africans and the world in general.
“We are really excited about Africa's energy future,” he said. “We are united as an industry, ready to take advantage of the opportunities it offers”
Canada-based oil and gas exploration company Eco Atlantic, through its subsidiary Azinam Limited, has signed a rights grant agreement for the acquisition of an additional 6.25% interest in Block 3B/4B in high seas in South Africa. The $10 million deal, pending approval by the South African government and other relevant parties, will expand Eco Atlantic's interest in Block 3B/4B to 26.25%.
With South Africa, Namibia and the broader African continent focusing on expanding oil and gas exploration and driving investment in energy developments through enhanced partnerships with international independents such as Eco Atlantic, the African Energy Chamber (AEC), as the voice of African energy. sector, strongly supports the farmout deal and marks the deal as a game changer for South Africa. At a time when Africa's untapped resources hold the solution to the global energy crisis, deals like this one will be key to unlocking a new era of exploration and production in Africa.
The deal itself positions Eco Atlantic at the forefront of frontier exploration in Africa. Located between 120 and 250 km off the coast of South Africa in the Orange Basin and covering an area ~17,581 km² wide, Block 3B/4B is in water depths ranging from 300 to 2,500 meters. Due to the basin's proximity to major recent discoveries, such as those made by Shell on Graff-1 and TotalEnergies on Venus in neighboring Namibia in February 2022, the Eco Atlantic deal represents a positive step towards discovering other massive reserves. in the Orange Basin. and it will be critical for South Africa as the country seeks to awaken its own hydrocarbon market.
According to Gil Holzman, co-founder and CEO of Eco Atlantic, who is one of the high-level industry executives taking part in the preliminary discussions during the African Energy Week (AEW) 2022, he stated that "we are seeing a growing interest of the industry throughout the Orange Basin and in particular in Block 3B/4B, and therefore we are very pleased to have managed to increase our WI in the Block We are working closely with our partners to advance the technical work required, which includes reprocessing the 3D seismic we have for the Block to evaluate and identify high-grade leads and drill prospects for a drilling campaign we are contemplating next year We are set for an exciting couple of months, and We look forward to keeping our stakeholders updated as we look to drill the Gazania-1 well in Block 2B, offshore South Africa, in early September 2022.”
Eco Atlantic, along with partners including Africa Oil Corp (20%) and Ricocure (53.75%), are currently reprocessing 3D seismic surveys on the block, which will be used to obtain high-grade leads to identify drilling targets. in preparation for a potential drilling campaign in 2023. With major players such as Shell, Kosmos Energy, TotalEnergies and Anadarko also expanding their footprints in the area, the Eco Atlantic deal marks a new era of increased exploration, cooperation and competition, which is vital and healthy to boost southern Africa. growth of the oil and gas market.
“We are optimistic about Eco Atlantic for its continued commitment to exploring South Africa's sea basins. With deepwater oil and gas projects holding the key to Africa addressing energy poverty, industrialization and boosting production, particularly as legacy projects in producing countries decline, Eco Atlantic is well positioned and committed to support Africa to make energy poverty history through the exploitation of domestic resources”, says NJ Ayuk, CEO of AEC, adding that “we hope to see more agreements like this signed at the continent's main event to the oil and gas industry, an event that positions oil and gas at the center of the revolution of the energy sector in Africa”.
At AEW 2022, Holzman will not only provide updates on the company's progress in Africa, including the acquisition of Block 3B/4B, but also information on Eco Atlantic's future exploration and production plans in the hydrocarbon-rich basins of Namibia and South Africa. AEW 2022 will feature Eco Atlantic in panel discussions and high-level forums to discuss the role of independents in driving upstream activities and investments in Africa's oil and gas market.
New paradigms are being established in the education industry around the world. Technology is always opening up new perspectives and pushing the boundaries of what's possible, remotely. People's mentality is also changing with new times, standards and opportunities. Distance and location are no longer inhibiting factors. Internet, telecommunications and multimedia make the world come closer and learn better.
Eaton Business School (https://bit.ly/3xXL2k2) (EBS) is an online executive education provider with offices in the UK, UAE, India and Singapore. This world-class institution is a pioneer in providing flexible executive education to professionals from more than 81 countries through its Live Interactive virtual classrooms. EBS offers Executive MBA and Diploma programs in the field of management which are becoming quite popular with working professionals. Senior professionals and employers are turning to EBS courses to update their knowledge base, for career advancement and for immigration purposes.
The student profile at Eaton Business School is working executives with an average age of 33 years, with an average work experience of 8 years. More than a quarter of the student population are decision makers who direct the affairs of the organization they work for. The flexibility of the learning platform and peer-to-peer learning opportunities enrich the learning journey for executives. Not only can they collaborate and participate in the scheduled weekly live sessions from the comfort of their homes, but recording each session also helps busy executives in different time zones not miss any of the sessions. Eaton Business School is setting new standards by attracting extraordinarily successful business managers and senior corporate executives to its world-renowned courses. Interactive sessions, case studies, and business case-based assignments make the learning journey engaging and relevant for learners.
EBS Virtual Classrooms are a melting pot of highly successful professionals and business executives from different nationalities and with experiences in various markets who share their perspectives and learnings with the facilitators and their peer group. The result is that everyone learns much more. Globalization has opened the doors of innumerable opportunities but at the same time managers worldwide are perplexed by the fact that there are no formulas that can be applied in different situations and different markets. EBS provides a platform for students to broaden their view of the world and be enriched by diverse possibilities.
The institution offers various specializations such as Human Resources Management (https://bit.ly/3OsJaH5), Supply Chain and Logistics Management (https://bit.ly/39S2y1h), Business Analytics (https://bit. ly/3OIOyFE) ), project management (https://bit.ly/3ykxWi8), and healthcare management and leadership (https://bit.ly/3OsJbuD). EBS programs give students an edge in a highly competitive corporate world.
The Continent of Opportunities
Africa is the continent of opportunities. EBS has been attracting many students from South Africa, Kenya, Ghana, Nigeria, Botswana, Namibia and Zambia. The institution has a team of teachers, administrators, advisors and other support staff who are multicultural by nationalities and spirit. The quality of teaching and support services is fully increased with innovative technology and tools. To begin with, Eaton Business School is formally launching alumni chapters in 5 different cities in Africa in 2022. This will provide a networking platform for students coming out of the business school. The announcement of the alumni chapters is also a statement of EBS's intention to work closely with business organizations in many countries in Africa. Eaton Business School has recently thrown another feather in its cap by launching the Doctor of Business Administration (DBA). This initiative will deepen the academic rigor and research work carried out by its students and teachers. This will allow titles and research results to be more relevant and applicable to the needs of companies on the African continent.
A great place to work
Eaton Business School has recently been certified as a 'Great Place to Work' by Great Place to Work Middle East. This will further strengthen the determination of the EBS team to always work harder and smarter to maintain its leadership in the field of executive education.
Key partner universities and awarding bodies.
(i) Guglielmo Marconi University (GMU), Italy (ii) University of Portsmouth (UoP), UK (iii) Scottish Qualifications Authority (SQA), UK (iv) Cambridge International Qualifications (CIQ), UK (v) Chartered Management Institute (CMI), UK
The institution also proactively supports global sustainability by contributing to the United Nations World Food Program and Sacred Groves which works in the domain of protecting the planet's biodiverse habitats.