Energy Capital & Power (ECP) is Africa’s leading investment platform for the energy sector, uniting the entire energy value chain through events, online content, and investment reports that, combined, facilitate intra-African investment and collaboration. Following a turbulent and unprecedented disruption in the global landscape – brought about by the COVID-19 pandemic – continued exploration activities and developments in 2021 have resulted in the expansion of a more diversified energy mix, serving to alleviate energy poverty, and highlight the sector’s resilience. Fully committed to delivering the latest in African energy news, here is a list of ECP’s top five articles from 2021.
Infographic: South Africa Seeks One Trillion Rand in Investment
In February, South Africa’s President, H.E. Cyril Ramaphosa, announced that South Africa had officially opened for business following widespread travel restrictions and national lockdowns, implemented to slow the spread of COVID-19, which led to the disruption of many industries. Citing numerous clean energy projects, oil and gas exploration activities, and infrastructural investments, H.E. President Ramaphosa claimed that the southern-African country is ripe for investment and energy development while the nation strives towards its post-Covid-19 recovery.
Written by ECP’s Southern and East African Editor, Charné Hundermark, the article announced that the Department of Mineral Resources and Energy had initialized preparations for the fifth bidding window of its Renewable Energy Independent Power Producer Procurement program, which aimed to spur opportunities in solar and wind developments. It was noted that 92 energy projects had been awarded within the first four bidding windows, totaling $12.8 million in investments.
Heirs Oil & Gas to Target 100,000 bpd on OML 17
Following the $1 billion acquisition of OML 17 block by Shell in January, ECP reported in February that Heir Oil & Gas had pledged to boost its production targets to 100,000 barrels of oil per day from the onshore block, an ambitious target expected to restore the block to its peak production levels through the procurement of new and more effective equipment, which had, at the time, fallen by the wayside. Representing one of the largest oil and gas financing ventures in Africa in more than a decade, the deal included the participation of the United Bank of Nigeria, the African Export-Import Bank, and Standard Chartered, making international headlines in February. First reported for ECP by Nzube Nlebedim, the article received nearly 2% of the company website’s traffic throughout the year.
DRC to Launch 19 Blocks for Tender in Q4 2021
February also saw the announcement by the Democratic Republic of the Congo’s (DRC) Minister of Energy and Hydrocarbons, Hon. Rubens Muhima, that the Central African country had plans to launch a public tender for 19 onshore exploration blocks at the end of the year. Representing the first international tender for exploration blocks since the enactment of its new Petroleum Code in 2015, which served to transform the country’s energy sector, the announcement came as part of efforts to boost exploration activities throughout the country and increase associated economic growth. Written by Charne Hundermark, the story has seen no developments since February, with many international operations having been delayed as a result of the effects of the Covid-19 global pandemic and its variants.
Angola’s Oil and Gas Industry can Thrive Alongside its Rich Biodiversity
While Angola prepared to hold a public tender for the assessment of several onshore interior basins within the country, the Minister of Mineral Resources, Petroleum and Gas, H.E. Diamantino Pedro Azevedo, clarified on 21 January, that the government’s stringent environmental legislation would be adhered to; and that the interests of local populations would be considered with regards to oil and gas exploration activities in the country; and that Angola has implemented a balanced approach to global Environmental, Social and Governance (ESG) standards. Angola is sub-Saharan Africa’s second-largest oil producer, and has historically taken some of the most balanced approaches towards ESG standards, with the country’s 2010 constitution explicitly outlining protection for the environment in its Articles 12 and 24. Written by Verner Ayukegba, a Senior Vice-President of the African Energy Chamber and Director of Operations at DMWA Resources, the article served to highlight that Angola’s institutional frameworks for oil and gas exploration ensure environmental considerations, and that operations are executed in a socially responsible manner.
Senegal Positions Itself for Diversified Energy Transition with New Gas Code
Published at the very beginning of the year, on 2 January, ECP featured an article written by the Executive Chairman for the African Energy Chamber and CEO of Centurion Law Group, NJ Ayuk, that explored the adoption of Senegal’s Gas Code in 2020, which facilitated a platform for a diversified and sustainable energy transition in the west-African country, providing clear legislation for all major sources of clean energy, such as renewables and natural gas. Highlighting the economic consequences brought as a result of the COVID-19 pandemic, the article addressed delays in Senegal’s hydrocarbons sector, such as the country’s ambitions to develop its oil and gas resources, a notice sent by BP to delay receipt of the Gimi floating liquefied natural gas facility for the Grand Tortue-Ahmeyim project, and the one-year delay on federal investment decisions (FID) for the Tortue 2 and Tortue 3 gas developments, which were initially expected by mid-2022 and mid-2023, respectively. Ayuk then goes on to laud the implementation of Senegal’s new Hydrocarbon Code, which served to improve the ease of doing business in the country, as well as the implementation of the country’s Plan Senegal Emergent and Gas to Power Strategy, which positioned Senegal to diversify its energy mix. As a leading figure in the African energy sector, Ayuk’s article provides an in-depth look into African entrepreneurship and the local energy sector in Senegal.
Temane Natural Gas Project Reaches $760 Million FID
In an effort to capitalize on its natural gas resources, the Government of Mozambique and Sasol reached a FID in February this year for the joint-development of the $760 million Temane Natural Gas Project, transforming the southern-African country’s domestic energy sector, accelerating industrialization, and spurring economic development. The investment was aimed at developing the Inhassoro and Temane fields and will facilitate the production of 23 million GJ of natural gas per year, the generation of 450 MW, and will enable the production of 4,000 barrels of light oil per day for export. This development is expected to enable Mozambique to reduce its reliance on importing oil and gas, while boosting local liquefied petroleum gas production, thereby contributing to electrification targets and facilitating regional development.