As the Invest in African Energy (IAE) forum returns to Paris for its second edition this May, collaboration between European and African public and private sector companies will take center stage. According to the African Energy Chamber’s State of African Energy report (2022), over 70% of Africa’s oil and gas production results from strategic partnerships and joint ventures. These alliances provide a vehicle for pooling capital, sharing risks and transferring critical knowledge, technology and best practices within the industry. Below are five notable joint ventures between African and European energy companies that are currently shaping Africa’s energy landscape and serve as a model for future collaboration.
Solenova
Through its joint venture, Solenova, Italian multinational Eni and Angola’s national oil company Sonangol completed the first 25 MW phase of the Caraculo solar photovoltaic power plant in Namibe Province last June. The project serves to reduce diesel consumption for electricity generation and aligns with the Angola Energy 2025 long-term plan, which aims to improve basic energy services and achieve stated renewable energy targets. The project is being developed in two phases, with a total installed capacity of 50 MW, and will eliminate 50 kt of CO₂ equivalent annually, contributing to UN Sustainable Development Goal 7 and promoting clean and affordable energy access. By uniting local capacity with the latest renewable technologies, Solenova has uniquely positioned itself to advance Angola’s clean energy goals.
NNPC-SPDC-Total Energies-NAOC
The NNPC-SPDC-Total Energies-NAOC joint venture is composed of the Nigerian National Petroleum Corporation (NNPC) (55%), Shell Petroleum Development Company (SPDC) (30%), TotalEnergies (10%) and Nigerian Agip Oil Company Limited (NAOC) (5%). Created in 2015, the venture supplies 10% of Nigeria’s domestic natural gas and is currently focusing on four critical gas development projects. The joint venture has invested significantly in community development, allocating $106.3 million to projects promoting sustainable development and improving the quality of life in the Niger Delta region. The JV, leveraging both public and private sector expertise, plays a pivotal role in not only advancing Nigeria’s gas output, but also fostering sustainable development and enhancing community well-being.
Sonadrill
Deepwater drilling contractor Seadrill formed a 50/50 joint venture – Sonadrill – with Sonangol’s Empresa de Serviços e Sondagens de Angola in 2019 to operate drillships in Angola’s deepwater basin for five years. Under the partnership, Sonangol provided two newbuild seventh-generation high-spec ultra deepwater drillships, the Libongos and Quenguela. In 2022, the venture successfully secured a ten-well drilling contract for the ultra-deepwater drillship West Gemini in Angola, with options for up to eight additional wells. Amid renewed interest in Angola’s upstream industry, Sonadrill has provided Seadrill with the opportunity for incremental market access and fleet expansion.
Petrobel
Carrying out exploration and production activities, Petrobel – a 50/50 joint venture between the Egyptian General Petroleum Corporation and Eni, has played a crucial role in developing Egypt’s oil and gas sector. The company’s recent plans include a $1.2-billion investment in the Zohr gas field, which will accelerate development activities, enable the drilling of new wells and enhance facility efficiency. Petrobel began drilling the Orion X1 well last October and expects first gas in 2026. This partnership has not only propelled Egypt’s oil and gas sector forward, but also transferred valuable technical and operational skills to the country’s local workforce.
Structures A&E
In 2024, Eni and Libya’s National Oil Corporation (NOC) will jointly develop the Structures A&E gas project, marking Libya’s first major project since the early 2000s following the creation of a joint venture between the two companies in January 2023. The eight-billion-dollar investment involves the development of two gas fields and two main platforms at the Mellitah Complex, as well as a carbon capture and storage facility. First gas is expected in 2026, with a combined plateau production of 750 million cubic feet per day. Eni holds an 80% share of Libya’s national gas production, ensuring gas supplies to the domestic market and exports to Europe, as well as contributing to local job creation and economic growth. The substantial budget allocated to the Structures A&E project is revitalizing Libya’s oil and gas sector and setting a precedent for future public-private partnerships.
Invest in African Energy (IAE) 2024 is an exclusive forum designed to foster collaboration between European investors and African energy markets. Taking place May 14-15, 2024 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit www.invest-africa-energy.com.
