Africa’s energy sector in 2024 has seen the continent maximizing its oil and gas potential while rapidly expanding renewable energy solutions. Aimed at alleviating energy poverty, recent developments include major oil and gas discoveries, developments in renewable energy and rising investment in cross-border and regional oil and gas pipelines.
Oil and Gas Discoveries
On top of a series of major oil discoveries made in Namibia since 2022, Portuguese multinational energy corporation Galp – alongside partners the National Petroleum Corporation of Namibia (NAMCOR) and energy company Custos – made a light oil discovery at the Mopane-1X well in January this year. In April, Galp concluded appraisal activities at the well, uncovering a potential oil reserve of at least 10 billion barrels. The well was spud in October, reaching flow rates up to 14,000 barrels of oil per day (bpd). Meanwhile, global oil major Shell confirmed the presence of oil deposits at the Enigma-1X well offshore Namibia in April, successfully concluding the company’s fifth oil discovery in the country’s Orange Basin.
Serving as the second largest oil discovery following the discovery of the Baleine field in 2021, energy supermajor Eni announced the discovery of light oil, gas and condensates in Block CI-205 offshore Ivory Coast in March 2024. The Calao discovery was made as part of Eni’s Murene 1X exploration well, which involved drilling to a depth of 5,000m in water depths of around 2,200m.
Meanwhile, in May, independent E&P companies BW Energy and Panoro announced the discovery of oil at the DHBSM-2P pilot well offshore Gabon, which boasts an estimated 5-6 million barrels of recoverable oil. In Nigeria, global energy company Chevron made a significant near-field oil discovery in PML 49 in the shallow offshore region of the Western Niger Delta. The Mejji NW-1 well encountered approximately 690 feet of hydrocarbons within Miocene sands and is estimated to have the potential to produce up to 17,000 bpd.
Renewables on the Rise
In February this year, global mining company Anglo American announced that financing had been completed for its jointly owned renewable energy venture with renewable energy companies EDF Renewables and Envusa Energy. The projects include the 140 MW Umsobomvu wind project, the 140 MW Hartebeesthoek wind project and the 240 MWMooi Plaats solar project. The three projects – jointly known as the Koruson 2 cluster – will support Anglo American’s South African mining operations with clean energy, with surplus energy set to be distributed through the country’s national grid through a 20-year offtake agreement with Envusa Energy.
Meanwhile, South Africa’s largest renewable energy wheeling project the Selemela solar park was officially commissioned on July 16, 2024. Consisting of two recently completed solar energy plants, generating 126 MWp and 130 MWp, respectively, the solar park comprises over 390,073 bifacial solar modules, covering a total area of 430 hectares and generating approximately 593,721 MWh of renewable energy annually.
In Egypt, renewable energy company AMEA Power finalized the construction of the 500 MW Abydos solar power plant. Now linked to the country’s national electricity grid, the project is expected to generate an estimated 1,550,000 MWh of electricity, supplying enough clean energy to power 500,000 households in the country. West Africa’s largest solar plant began construction in Mali this year with the support of Russia’s NovaWind. The 200 MW solar plant will span 314 hectares in Sanankoroba and upon completion, is projected to increase the country’s electricity production by 10%.
Interconnectivity Through Oil and Gas Pipelines
Africa’s new and existing oil and gas producers have redirected a focus on improving regional trade as well as international exports, leading to the development of various large-scale, cross-border pipelines. In November this year, the East African Crude Oil Pipeline, which will transport crude oil from Uganda to Tanzania’s Port of Tanga for export, reached 47% completion. Spanning 1,445km, the pipeline is set to play a crucial role in linking Uganda’s Tilenga and Kingfisher oilfields – home to an estimated 6.5 billion barrels of crude oil – to global markets.
In July, Libya’s Mellitah Oil & Gas and Nafusah Oil Operations commissioned a 250-km pipeline linking the North Hamada oil field to the Meillitah Port, boosting production to 10,000 bpd. Underscoring the country’s commitment to upgrading and expanding its pipeline network, Libya’s state-owned National Oil Corporation awarded a $2 billion contract to Oil Invest – a subsidiary of the Libyan Investment Authority – in January to construct a 700km pipeline connecting the Sirte Basin oilfields to the Ras Lanuf and Al-Sidr export terminals.
The Economic Community of West African States validated the Host Government Agreement for the African Atlantic Gas Pipeline project, paving the way for the construction of a 7,000km pipeline. The pipeline will connect Nigeria to Morocco, delivering natural gas to all ECOWAS member states and Mauritania, with plans to eventually extend to Europe. In September this year, the Republic of Congo signed an agreement with Russia to construct a petroleum pipeline connecting the Port of Pointe-Noire to Brazzaville. Under the agreement, the two governments will form a joint venture (JV) for the pipelines construction and implementation, with Russia providing the capital, equipment and personnel and owning 90% of the JV.
