The double crisis of the COVID-19 pandemic and the collapse in oil prices is taking a toll on African economies and the African energy industry. An unstable and precarious oil prices environment has resulted in substantial cuts in state budgets and public spending, in losses of contracts and hundreds of thousands of jobs put at risk. Because bouncing back from this historic crisis will require strict and bold government action, the African Energy Chamber has released today its Call to Action, detailing 10 measures that form a commonsense energy agenda for Africa, which is now accessible to download for free at www.EnergyChamber.org. The impacts of the current crisis are wide and affecting both Africa’s most promising exploration prospects, but also its multi-billion-dollar landmark projects such as BP and Kosmos Energy’s Greater Tortue Ahmeyim (GTA) LNG project in Mauritania and Senegal or ExxonMobil and Eni’s $30bn Rovuma LNG project in Mozambique. Oil projects are suffering even more. In Ghana, the development of the Pecan Field has been thrown into very uncertain waters. Aker Energy cancelled its letter of intent sent to Yinson Holding this year to charter, operate and maintain the Pecan FPSO, set to be Ghana’s next big oil offshore development. Woodside Energy’s Sangomar Offshore Oil Project, Senegal’s very first oil venture that was sanctioned early this year, will be facing financing delays. FID on Shell’s Bonga South West Aparo project in Nigeria, for which the invitation to tender was released to contractors early last year, could also not see FID this year. Delays in the execution or sanctioning of these projects will severely impact African economies whose local goods and services were set to benefit from billions of dollars of subcontracting opportunities.
NJ Ayuk, Executive Chairman at the African Energy Chamber
“Our commonsense approach advocates for measures that will support the continuity of business operations and future sector growth. The oil and gas industry will only work for Africans when we set fair policies and treat oil and gas companies as partners who drive our progress,” declared NJ Ayuk, Executive Chairman at the African Energy Chamber. “As the voice of the energy industry, we will continue to work with the public and the private sector and other stakeholders to revitalize the African oil and sector by putting Africans back to work,” added Ayuk.
While the immediate impact on the continent’s biggest oil & gas project is already being felt, a much bigger one will result from the deferral or canceling of drilling plans. Across oil & gas basins, drilling projects are being put back on the shelves or terminated. It is the case of Valaris’ drilling activities for Chevron in Angola, of BW Energy’s drilling operations on the Marin Dussafu Permit in Gabon, of the much-awaited exploratory drilling by FAR in The Gambia, of early termination of drilling works of Maersk in Ghana’s Jubilee and TEN Fields, or of Tower Resources’ force majeure on the Thali PSC in Cameroon. No country is sparred, and such delays will further defer discoveries of new fields, and development drilling to ramp up Africa’s daily output.
Since the beginning of the COVID-19 pandemic and its subsequent effect on oil demand and prices, the African Energy Chamber has been leading the dialogue between the public and the private sector on advocating for measures to support our industry and its jobs. While the Chamber believes that market forces need to determine the industry’s future and advocate for limited government across the industry, the time calls for urgent actions. We cannot let our companies and industry collapse for the fear of losing jobs and investments that would sustain our economies for decades to come. It is worth bearing in mind, that activity in and income from Africa’s energy sector generates a significant amount of demand and services from other non-oil and gas sectors of the economy.
Key measures amongst the Africa’s Commonsense Energy Agenda released today are the extension of PSCs and work program adjustments to boost exploration and ensure the resumption of drilling activities. While exploration is a major part of our Call to Action, the Chamber also strongly advocates for tax relief on services companies, reforms of upstream fiscal regimes, banking and financial support, regional content development, incentives to infrastructure projects, and bold actions on removing fuel subsidies. The African Energy Chamber will continue to call on governments, regulators and private companies to work together on finding the right solutions that work for their country and operations. We have the tools in our hands to quickly open new markets for our oil and gas businesses and create new jobs for our continent
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
It isn’t breaking news that the world is currently on “lock-down mode.” Around the globe, the COVID-19 pandemic has made conditions dire and triggered global economic shutdowns. For the oil and gas market, it has been an especially trying time. As our global society battles the virus, demand for oil and gas has plummeted. In fact, April 2020 could see a drop in oil demand by more than 30 million barrels a day. To put that into perspective, that represents a third of the world’s daily use.
NJ Ayuk, Executive Chairman of the African Energy Chamber, CEO of pan-African corporate law conglomerate Centurion Law Group
Now add an oil price war that has had Saudi Arabia and Russia increasing oil production and battling for market share since March 8, and you have a perfect storm. In March, the benchmark WTI and Brent each fell more than 50 percent. In the first quarter overall, WTI fell 66 percent and Brent dropped 65 percent.
The once-prolific shale operations across the U.S. are now seeing abandoned projects that have little to do with social distancing. Generally speaking, the hydraulic fracturing (“fracking”) process that has become the industry standard in shale production is expensive—meaning the ultralow oil prices make the process cost-prohibitive at the moment. Whiting Petroleum in North Dakota’s Bakken is today’s poster child for the current state of that segment: After topping $150 a share just a few years ago, the producer’s stocks took a nosedive to close at 67 cents on March 31. The following day, the former shale giant filed for bankruptcy.
I won’t deny that this situation is grim, but it is not a reason to panic. The oil and gas industry is cyclical by nature, and downturns come with the territory. While the situation we find ourselves in now is unusual, there certainly is precedent for recovery.
Already, we are seeing reasons to be hopeful: The oil price war appears to be drawing to a close. Russia and Saudi Arabia reached a tentative deal on production cuts during an April 9 OPEC meeting, and other producers may soon follow suit with cuts of their own. The situation is still fluid, but it looks promising. As for the lack of demand caused by COVID-19 lockdowns, no one can say how long it will last. But it won’t last forever.
For now, I have some advice for the U.S. drillers striving to get through this challenging period: This could be a good time to take a fresh look at Africa. When I wrote my book, Billions at Play: The Future of African Energy and Doing Deals, I explained how the American shale boom affected the presence of American oil and gas companies in Africa. By that time, 2019, many U.S. companies had exited or reduced their footprint in Africa to focus on U.S. shale production. It could be that the factors that made shale a more profitable option than production in Africa no longer exist.
I realize overseas operations may sound counter-intuitive to companies that are slashing their budgets, but there are sound business reasons behind my recommendation. In particular, the low cost of production should be considered: Deepwater wells have been drilled for less than $50 million in Angola. Plus, Africa’s rich resources still represent opportunity, including a wealth of natural gas waiting to be discovered.
Lower Profit Price Point
Oil produced in the U.S. needs to sell for at least $30 to $50 to be profitable. In contrast, I believe that it’s possible to make a profit selling African oil for $25 to $30. Quite simply, it’s cheaper to obtain assets like oil and gas mineral rights and oil field licenses in Africa. What’s more, the revenue that can be obtained from the assets is higher. The cost of production is typically much cheaper. As I noted in my book, the past few years have seen significant drops in E&P costs in Africa: Rig rates have come down, and the efficiency of drilling has improved. Plus, drilling is being conducted in more favorable conditions: Drillers are avoiding high pressure, high temperature, and ultra-deepwater plays.
Less red tape
U.S. Independent producers doing exploration and production activities have fewer regulations in Africa, which potentially could make operations less costly. Plus, one positive “side effect” of our current economic challenges is a renewed dedication on the part of several African petroleum and energy ministers to strengthen cooperation, promoting synergies, intra-African trading, and knowledge exchange. This could spell significant ease for multinational efforts in Africa.
Possibly the best case for encouraging activity among African fields is all this untapped potential. The continent is truly one of the last promising regions for both offshore and onshore oil production. Four years ago, the U.S. Geological Survey estimated that were 41 bbo and 319 tcf of gas waiting to be discovered in sub-Saharan Africa. It’s still waiting!
Even during times of economic difficulty, including the Great Recession, natural gas consumption has increased. Natural gas prices are down at the moment, but that could change. Social distancing and shutdowns won’t necessarily impact demand for natural gas long term, since it is widely used to generate electricity; for heating, cooling and cooking; waste treatment and incineration; and as feedstock for a wide range of chemicals and products from butane and propane to fertilizers and pharmaceutical products.
What’s more, the current low prices might actually foster its demand in a post-virus market where we see power generation switching increasingly from coal to natural gas or where natural gas is used as feedstock for hydrogen generation. These near-term fuel-switching opportunities are expected to be followed by robust LNG market growth in the medium-to-long term.
Consider a Closer Look
My book has in-depth and very honest information, about the risks of operating in Africa and the opportunities for significant returns. Before dismissing my suggestions, I encourage drillers to utilize this resource. In short, it would be a mistake for international oil companies to ignore Africa. Many of Africa’s oil and gas fields were discovered and/or established by U.S. companies, from Kosmos Energy’s discoveries in Ghana and offshore Senegal to VAALCO Energy’s success offshore Gabon. They took a chance in these frontier markets—and their investments have really paid off.
NJ Ayuk is Executive Chairman of the African Energy Chamber, CEO of pan-African corporate law conglomerate Centurion Law Group
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
It is difficult to come to terms with the United States’ decision to include Nigeria in the extension he made a few weeks ago to the infamous “Muslim Travel Ban”, which already restricted movements of people from Iran, Libya, North Korea, Syria and Yemen. Alongside Nigeria, Tanzania, Myanmar, Eritrea, Sudan and Kyrgyzstan were also added to the list of countries with entry restrictions. Effectively, with the struck of a pen, or a whim, President Trump barred a quarter of the 1.2 billion people living in Africa from applying for residence in the United States.
NJ Ayuk, Executive Chairman of the African Energy Chamber, CEO, pan-African corporate law conglomerate Centurion Law Group
Officially, the extension made to these nations is based on security concerns. Tanzania and Nigeria, particularly, are named by Washington as having failed to meet U.S. security and information sharing standards. Further, Nigeria is singled out for fears that the country harbors terrorists that could pose risks if they entered the U.S.
Much and more of this is difficult to reconcile with the U.S.-Nigeria long-standing allied relations and particularly with recent programs designed to bring the two nations closer together, but before we go there, let’s look at what the reality shows.
Since 1975, not a single incidence of a Nigerian, or for that case Tanzanian or Eritrean, being involved in a terrorist attack on American soil has been recorded. Boko Haram, the extremist group that has terrorized parts of the North of Nigeria (a region from which few migrants come from) in recent years, has never shown any signs of wanting to expand its territory, much less to open remote branches in North America. In fact, the American and Nigerian forces have worked closely together to address that and other challenges, and the Trump administration itself has recognized Nigeria as an “important strategic partner in the global fight against terrorism.”
Further, while Tanzanians and Eritreans have been excluded from what is known as the green card lottery system, Nigerians have been barred from applying for permanent residence visas in the United States. In 2018, 14 thousand such visas were issued to Nigerians, making it by far the most affected by the ban from all the new entrants to the list.
Beyond the sheer pain that fact must cause to the thousands of Nigerian families that have been waiting for years to be reunited in the U.S., from a security point of view, the decision makes no sense. Only permanent visas have been suspended. Tourist and work visas remain as usual. How does barring access to the most strict and difficult to obtain visas but maintaining the less restrictive short-term ones prevent terrorists from entering the U.S.? It is nonsensical. Even the fact that the announcement of the extension was made by the media before these countries’ authorities were even notified is telling of how lacking in protocol the process seems.
The whole thing is perplexing, but beyond the issues of principle, this decision has the potential to hurt the relations between these countries and the U.S., and when it comes to Nigeria, that risks hurting the U.S. too. Afterall, Nigeria, Africa’s biggest economy, is the U.S.’s second biggest trade partner in sub-Saharan Africa, is Nigeria’s second biggest export destination and is its the biggest source of foreign direct investment. American companies have extensive investments particularly in the energy and mining sectors in Nigeria, which risk being affected by a breakdown in bilateral relations. Some companies, like ExxonMobil, have been operating in the country for nearly 70 years, since even before the country became independent from colonial rule, and Chevron has also been an active and central participant in the country’s oil industry for over forty years. Both these companies are partners in Nigeria’s mid and long-term strategies to curb gas flaring, develop a gas economy, expand oil production, improve its infrastructure network, raise its people out of poverty, etc.
Nigeria and the U.S., under a bilateral trade and investment framework agreement, sustain an annual two-way trade of nearly USD$9 billion. When the president of the U.S. makes a decision like this, it can affect the relations the country and these companies uphold with Nigeria. Further, it directly clashes with the U.S.’s strategy to counter Russia’s and China’s growing influence in Africa by expanding its relations with the continent.
How does closing the door to Africa’s biggest powerhouse accomplish that?
The policy established under the 2019 Prosper Africa initiative that was designed to double two-way trade between the U.S. and Africa seems difficult to reconcile with this latest decision. Over the last couple of years, president Trump has made several statements, at varying levels of political correctness, about how he would like to restrict immigration to the U.S. to highly-skilled highly educated-workers. If that is one of the reasons behind the inclusion of Nigeria, again, it fails completely.
Nigerians represent the biggest African community in the U.S., numbering around 350 thousand, and one of the communities with the highest level of education in the US globally. According to the American Migration Policy Institute, 59% of Nigerian immigrants have at least a bachelor’s degree. That is higher than the South Korean community (56%), the Chinese community (51%), the British community (50%) or the German community (38%), and it is tremendously higher than the average for American born citizens (33%).
More than 50% of Nigerians working in the U.S. hold white color management positions, meaning they have access to considerable amounts of disposable income and contribute greatly to the American economy. Those are the immigrants the U.S. wants, the ones that built the American dream! Which only makes this decision ever harder to grasp, unless of course, if we consider that this might have nothing to do with security concerns, and all to do with a populist decision designed to please the president’s most conservative support base as we approach the presidential campaign. If that is the case, then American foreign policy has truly reached a dark age.
From his side, President Buhari’s government has done what is possible to appease the situation, setting up a committee to address the security concerns with U.S. officials and INTERPOL, and restating its commitment to “maintaining productive relations with the United States and its international allies especially on matters of global security”, Femi Adesina the Spokesman for the Nigerian Presidency said.
Last week, the Nigerian government requested the U.S. administration to remove the country from the travel ban, and also announced a reduction in visa application fees for visiting Americans from $180 to $160, in a symbolic gesture meant to reinforce relations between the two nations.
In the meantime, Nigeria’s and other economies risk suffering from this unexplainable decision, and immigrant Nigerians in the U.S. that had been waiting so patiently for the dream of being reunited with their families in the “land of the free” await a resolution for a problem they did not know existed until a month ago.
NJ Ayuk is Executive Chairman of the African Energy Chamber, CEO of pan-African corporate law conglomerate Centurion Law Group.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
As Africa’s population and economies surge, greater opportunities for development are presented, societies change, and the aspirations of everyday Africans are increasingly requiring urgent attention.
On the other hand, Germany’s energy transition anticipates a vastly more efficient and interconnected energy system in the future, one that I believe, young African technology entrepreneurs can certainly learn from and accelerate the growth of the energy sector.
Chancellor Angela Merkel
With technology start-ups with the intention to build sustainable power solutions emerging across the continent particularly in the power sector, Germany can look to this market on how it can invest in Africa while providing energy and technology solutions and African entrepreneurs can embrace German products in reshaping and restructuring African energy economies.
While the economies of some countries on our continent have grown considerably in recent years, particularly as a result of energy sector developments, economic diversification and sustained foreign investments, there is still no denying that Africa still has a long way to go.
With this comes the question of how will Africa achieve prosperity? The answer – not with monetary aid.
In my book, Billions at Play: The Future of African Energy and Doing Deals, I examine the topic of foreign aid as a solution to Africa’s problems in great detail because for too long, well-meaning foreign entities have stepped in to provide us aid, and in doing so have inadvertently stepped on our toes. This, considering that donor nations and foreign institutions do not sufficiently understand what we need and how we operate.
Africa needs long-established support. We need skills development, key infrastructure, sustainable and enabling environments that drive results and, we need to build vibrant energy economies that will bring long-lasting change that is beneficial to the everyday African woman and man.
Determined to promote cooperation with Africa, increase investment on the continent and help improve standards of living, the 2019 G20 Compact with Africa Summit kicked off in Berlin this week. I believe this initiative led by Chancellor Angela Merkel can work and can be beneficial to both Africa and Germany. However, Germany (and other foreign countries looking at the continent) need to understand that Africa is a true partner for development and in addition to relationship-building with governments, African businesses also need to be engaged. They are also key in driving development.
As Africa emerges and takes its place on the global stage, it not only stands to benefit from its relationship with Germany but can contribute to Western Europe’s objectives, as presented by the Compact with Africa Summit.
With the continent having nearly 600 million people without access to electricity, Africa’s challenges seem insurmountable – especially given the amount of opportunities and fast-tracked development access to electricity can unlock. But there is hope. With a number of African nations developing and launching large scale renewable energy projects, countries such as Equatorial Guinea, Senegal and Mozambique championing gas developments and launching world-class projects, the continent is resolute on transforming and diversifying its energy mix, proving that it is a worthy partner, particularly for Germany.
Earlier this year, the Germany Africa Business Forum (GABF) announced its multi-million Euro funding commitment to invest in Germany energy start-ups that focus on Africa. This commitment pledged funds to German start-ups with exposure to African energy projects. The role that such German companies from the private sector can play for Africa is increasingly coming to light. German companies ESC Engineers and Noordtec for instance collaborated with Equatorial Guinea’s Elite Construcciones on the Akonikien project – the region’s first liquefied natural gas (LNG) storage and regasification plant.
Forming part of the government-led LNG2Africa initiative, the project advanced the nation’s efforts to monetize gas resources through the creation of domestic gas-to-power infrastructure, a sector which presents major opportunities for the private sector all across Africa. This is a true example of German’s expertise serving Africa’s best interests.
On Tuesday, Chancellor Angela Merkel said she saw the investment in Africa’s growth and development as a “win-win” and encouraged that instead of talking about Africa, “we should do everything we can to cooperate with Africa.”
I agree with this view, the continent has a lot to offer and collaboration is critical for Africa’s future. We do not need quick fixes, we need capital and technology that are supported by hard work, due diligence and solid execution in order to have an impact. We can only achieve this through recognition and collaboration, not with the same old strategies of proving aid that has not been very useful.
NJ Ayuk is the CEO of Centurion Law Group and the Executive Chairman of the African Energy Chamber.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
If you follow news about Africa, it’s easy to find disheartening headlines about the continent’s struggles. But those stories do not paint a complete picture. Every day, I read encouraging news about African entrepreneurs and business leaders who are making a positive impact.
A few examples: Kola Karim’s Shoreline Natural Resources has grown its upstream business through the acquisition of OML 30 a world class asset from Shell in 2010. OML 30 is onshore Nigeria, located less than 50 kilometers east of Warri. The lease covers 1,097 square kilometers with eight producing fields. OML 30 has 2P reserves of 1.2billion barrels of oil and 2tcf of gas reserves. Current production averages 70,00 bopd with potential to significantly increase to c. 300,000 bopd in the long term.
Benedict Peters, chairman and CEO of energy conglomerate AITEO Group
Nigerian oil tycoon Arthur Eze of Atlas Oranto Petroleum recently closed, alongside Noble Energy and Glencore, a $350 million deal on pooling supply from stranded gas fields in Equatorial Guinea and the Gulf of Guinea to replace declining output from the Alba field.
Benedict Peters, chairman and CEO of energy conglomerate AITEO Group will serve on the Board of Advisors for the U.S.-Africa Business Center. There he will be able to provide relevant insights that lead to valuable economic opportunities for Americans and Africans.
The Nigerian Natural Gas Association, which just celebrated its 20th anniversary, is thriving under the leadership of President Audrey Joe-Ezigbo, the association’s first female president.
Sahara Group, an energy and infrastructure conglomerate, has teamed up with the United Nations Development Programme to create the Africa Renewable Energy Forum. Sahara Group, which is under the leadership of Executive Director Temitope Shenube, says the forum’s objective is to provide access to sustainable energy for 10 million African households through alternative energy initiatives and interventions.
The point is, exciting things are taking place in Africa.
When I wrote Billions at Play: The Future of African Energy and Doing Deals, my goal was to help readers envision a new future for Africa, a future they could help shape. I want people to see that Africa doesn’t have to be subject to a resource curse, and with the right strategies and policies, Africa can reap the full benefits of its oil and gas resources.
But that’s only part of the story. I also want people to understand that Africa has more than petroleum resources going for it: the continent also is rich in people who refuse to give up on Africa, people who are working to guide the continent toward a more stable and prosperous future. We have energetic entrepreneurs and government leaders committed to the African dream of stability and prosperity; increasing numbers of female professionals and leaders bringing their talents to the table, and successful petroleum sector leaders who want to channel their expertise and resources into Africa’s future.
When you combine the people working for a better African future with the steady flow of opportunities we’re seeing in oil and gas — including several major discoveries in the last few months alone — great things can happen.
Committed to Africa
Long before Nyonga Fofang took the helm of private equity firm Bambili Group in South Africa, the Harvard-educated financier made a name for himself on Wall Street. I quoted him in my book to help make a case for the importance of foreign investment in Africa. But in addition to being a source of valuable finance insights, Fofang is an example of Africans who are sharing the benefits of their Western educations and career experiences with their home continent. These Africans are harnessing the insights and ingenuity they have gained abroad and putting them to work for the good of Africans.
Another excellent example of that dynamic is Gabriel Mbaga Obiang Lima, the Minister of Mines and Hydrocarbons of the Republic of Equatorial Guinea. Lima earned his bachelor’s degree in International Trade from Alma College in Michigan before going on to build a successful career in Equatorial Guinea. Today, this highly respected OPEC Minister is known for his effective leadership in Equatorial Guinea and around the world, where he plays a critical role in the country’s increased petroleum exploration and production activity.
Fofang and Lima are not isolated cases: a recent survey by pan-African equity firm Jacana Partners found that 70 percent of African MBA students at the top schools in American and Europe planned to return home after graduation. And in a survey by the Association of Commonwealth Universities, 400 doctoral students from Africa said they intended to return to their home country after completing educations abroad. Many Africans are committing to playing a role in their continent’s success, and that bodes very well for the continent’s future.
I would like to add, though, that Africa also benefits from people who have left the continent, but continue to find ways to support their home communities and countries. The African diaspora, comprising more than 30 million people around the globe, can make significant contributions to Africa’s socioeconomic well-being. That can take the form of knowledge and technology sharing, investments, and participation in civil society and advocacy efforts. We do see that happening now, and I hope to see an even more engaged Africa diaspora going forward.
Fully Capitalizing on Africa’s Talent
As I wrote in Billions at Play, female leaders excel at what they do. When women are given the opportunity to lead, we see the businesses, governments, and organizations under their guidance reap the rewards. That’s why we all should be excited when we hear about woman rising to positions of power and influence in Africa.
One of the women featured in my book, for example, has been transforming Africa’s tech sector. Rebecca Enonchong is an innovator who not only thinks outside of the box, she is developing better boxes altogether. Enonchong is the founder and CEO of AppsTech, which provides solutions for businesses and organizations around the globe, and of the I/O Spaces incubator for members of the African diaspora in the U.S. She also is the chair of ActiSpaces (the African Center for Technology Innovation and Ventures) and of AfriLabs, a network organization of more than 80 innovation centers across 27 African countries. And she is a founding member of the African Business Angel Network. Earlier this year, she was among the tech trailblazers featured in the augmented reality art experience “Nyota,” in Lagos, which was created to honor those who have contributed significantly to the growth of innovation and the technology ecosystem in Africa. Enonchong continues to innovate, to lead, and to create meaningful economic opportunities for Africans.
And she is one of many examples I have written about. Another is Catherine Uju Ifejika, Chairman/Chief Executive Officer of Nigerian energy services company, Brittania-U Group. Under her effective leadership, Brittania-U Group creates business opportunities for other indigenous companies, along with training and full-time jobs.
Another African leader to follow is Audrey Joe-Ezigbo, whom I mentioned earlier in this piece. In addition to her role with the Nigerian Natural Gas Association, she is the co-founder of Falcon Corporation Limited, an indigenous midstream and downstream gas outfit. She also is an author; on the Executive Council of Women in Management, Business & Public Service; is the founder of The Barnabas Widows Support Foundation; and provides business and relationship-building training to couples that are in business together.
Lets not forget, Elizabeth Rogo – Founder & Chief Executive Officer Tsavo Oilfield Services. Elizabeth’s trailblazing path includes being the first woman to lead American oilfield service company Weatherford’s Sub-Sahara division to hold country and regional management roles when she was appointed Country Manager (Kenya) then East Africa Area Manager (Kenya, Uganda, Tanzania, Mozambique and Ethiopia) from 2015 until 2017 before starting her own oilfield Services company – another first for a woman in the region.
I am not saying women have more to offer Africa than men, both have a great deal to offer Africa. Why shouldn’t our continent benefit from all of its talent? I am excited to see more women contributing to economic development and innovation in Africa, and I know the continent will continue to benefit as more determined business leaders, male and female, join their efforts.
Movers and Shakers
Arthur Eze is another powerful example of African business leaders working for a better African future. Eze, usually referred to as Prince Arthur Eze because he is descended from tribal royalty, is the founder of Atlas Petroleum International and Oranto Petroleum. He is known not only for his business successes, but also for his philanthropy. Last year, Oranto started building two primary schools in South Sudan, where the company has an exploration license for Block B3. Oranto also has committed to a five-year teacher training program in South Sudan.
Petroleum industry leader Benedict Peters has a strong track record of impactful business and charitable activities as well. He has been recognized for helping Nigeria develop its energy industry, and for transforming Aiteo Group from a small downstream operation to an integrated energy conglomerate. Aiteo is a regular support of organizations like FACE Africa, which provides clean water to sub-Saharan Africans. Peters’ organization, the Joseph Agro Foundation, addresses unemployment and water shortages by creating job opportunities for farmers.
Then there is Sahara Group. Under the leadership of Executive Director and co-founder Temitope Shenube, the Nigerian energy and infrastructure conglomerate empowers the communities where it works. The company’s charitable arm, Sahara Foundation, supports health, education and capacity building, environment, and sustainable development initiatives.
What we are seeing in Africa is a pattern of African petroleum-sector leaders taking meaningful steps to make life better in Africa.
Endless Energy Opportunities
Africa has no shortage of people determined to improve its future, and it has what it needs to fuel their efforts: enormous stores of oil and gas resources. The last 12 months have been an exceptionally exciting time in terms of discoveries.
In offshore Mauritania, Kosmos Energy recently announced a massive natural gas discovery that could yield as much as 50 trillion cubic feet of gas. Total discovered what could amount to 1 billion barrels of oil equivalent offshore South Africa’s Brulpadda field. BP and Kosmos Energy announced a discovery in the Yakaar-2 appraisal well, offshore of Senegal.
We are also seeing tremendously promising activity in Mozambique. Earlier this fall, ExxonMobil announced a $33 billion enlargement of Mozambique’s Rovuma liquid natural gas (LNG) complex. Total, meanwhile, says it will expand its Mozambique LNG project it recently acquired from Anadarko. Both projects are likely to create tens of thousands of jobs, bolster the economy, and raise everyday people’s standard of living.
And these are only a few examples of Africa’s many petroleum-related opportunities. Of course, we need to act thoughtfully and decisively to capitalize on them and make sure that everyday Africans benefit from them. African countries need to monetize their natural resources and use the resulting revenue to build much-needed infrastructure and diversify economies. We must insist on governance that encourages exploration and production, effective local content policies, and an end to corruption. We need to be making better deals and developing new models for managing oil revenue.
Instead of looking to foreign aid, we need to develop strategic partnerships with foreign companies willing to share knowledge. And while we are capitalizing on petroleum resources, we also need to embrace sustainable energy sources and plan now for Africa’s energy transition. I cover all of these topics in great detail in my book.
The African Dream is Within Our Reach
Africa is home to infectious optimism and tenacity. We’re seeing it in Africans who’ve achieved success and now work to help other Africans do the same. We are seeing it in women who are overcoming gender stereotypes and obstacles to take their rightful place as industry leaders. And, we are seeing it among petroleum executives who are offering meaningful support and opportunities to African communities.
Africa is an exciting place in an era of huge potential. That’s why the time is right to join the fight for its future. Whether you are an African entrepreneur, a member of the diaspora, or a foreign investor, your efforts today have more potential than ever to make a positive impact.
NJ Ayuk is the CEO of Centurion Law Group and the Executive Chairman of the African Energy Chamber. His experience negotiating oil and gas deals has given him an expert’s grasp of Africa’s energy landscape. He is the author of “Billions at Play: The Future of African Energy and doing deals.”
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
In order to strengthen cooperation amongst African companies, encourage the development of strong African content and promote joint-venture opportunities, Malabo will be hosting the Oil & Gas Meeting Day on October 1-2, 2019. The summit is part of Equatorial Guinea’s Year of Energy and will focus on exploring opportunities and deals amongst services companies, which are central to the development of strong African capabilities across the oil & gas value chain.
The African Energy Chamber (EnergyChamber.org) strongly supports the National Alliance of Hydrocarbons Service Companies (NAHSCO) in the organization of this upcoming Oil & Gas Meeting Day. We invite all our partners, especially national oil companies and public and private services companies, to come to Malabo in October. This will be a key platform for dialogue and deals with international, technology and services companies.
“The development of a strong African oil services industry is crucial if we want to get value out of our natural resources and create jobs. The way to build African capacities is to work together and create jobs, and we are happy Malabo is bringing everyone together.”
The Oil & Gas Meeting Day will offer opportunities for African services companies to make deals with regional and international partners and drive global transformations within the oil services industry.
More importantly, it will provide a platform to share experiences on local content and advocate for regionalization of local content development within African oil markets. “With this meeting, African services companies and national oil companies have the chance to not only be part of the game but change it to their benefits,” added Nj Ayuk.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
