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Time for Namibia and Oil Companies to Act on Fiscal Stability and Fast Track Oil Discoveries to Final Investment Decision (FID) (By NJ Ayuk)

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11 months ago

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Namibia

For Namibia, a newcomer to oil and gas deals, adding a fiscal stability clause to petroleum contracts will be key to retaining the energy industry’s intense interest

WINDHOEK, Namibia, April 28, 2025/APO Group/ —By NJ Ayuk, Executive Chairman, African Energy Chamber (https://EnergyChamber.org/). 

The world is watching Namibia. To be more specific, the energy world is watching. This was evident at the recently concluded Namibian Internation Energy Conference.  Ever since oil and gas majors, Rhino Resources, Galp Energia, Shell and TotalEnergies announced massive hydrocarbon discoveries in Namibia’s offshore Orange Basin, interest in additional exploration in the Southern African country has been intense. And so has curiosity about how quickly Rhino Resources, Galp Energia, and TotalEnergies, and their partners will be able to finalize their petroleum contracts with Namibia and move on to final investment decision that leads to production. Will their negotiations stall, as we’re seeing all too often in African nations, or will the process move forward smoothly?

One of the reasons the Orange Basin finds were so exciting — in addition to sheer size, with as much as three billion barrels of oil combined — was the fact that Namibian exploration efforts up to then had been fairly disappointing. Only about 15 wells had been drilled before Rhino Resources Capricornus 1-X, Galp Energia Mopane, Shell’s Graff-1 well and TotalEnergies’ Venus 1-X find, and none of those earlier efforts yielded commercial quantities of oil or gas. That means the Orange Basin discoveries represent Namibia’s first chance to show oil and gas companies what they can expect after announcing discoveries there.

Now is the time for Namibia’s leadership to show it respects the billions of dollars companies spend on oil and gas production. One of the most practical ways for Namibia to do that is to update its petroleum contracts: They need language that protects oil and gas companies’ investments. Namibia’s contracts should include what’s known as a fiscal stability clause, which would clearly state that if Namibia were to make legislative or regulatory changes — such as new tax requirements — the energy companies signing the contract would be protected from negative economic impacts.

Depending on the language of the clause— also known as an “economic rebalancing” or “equalization clause” — contracting companies might be exempt from new tax codes or compensated to make up for legislation that adds to their expenses such as new labor or environmental laws. What matters is, in the end, the companies’ return on investment would not be impacted by changes that occurred after their deal was finalized.

For Namibia, a newcomer to oil and gas deals, adding a fiscal stability clause to petroleum contracts will be key to retaining the energy industry’s intense interest.

This Clause Carries a Lot of Weight

Guaranteeing oil and gas companies’ investments is hardly a new or radical measure. Fiscal stability clauses are common practice and in place in such countries as Guyana, Mozambique, Mexico, and Angola. While I cannot produce a study that proves that these countries have attracted more investment as a result of their clauses, I do know this: When a developing country fails to offer the clauses, they’re giving oil and gas companies reason to limit investments there.

In a recent paper on financial stability clauses, international consulting company Deloitte commented on the clauses’ value.

“Stabilisation clauses enhance certainty and predictability which are key ingredients for the success of long term investment projects,” the report states. “Petroleum exploitation is capital intensive and recouping the investment takes much longer than most sectors. Any subsequent changes in the laws of the host state may significantly alter the economics of the economics of a project.”

For international oil companies (IOCs), investing in a country without a fiscal stability clause is quite a gamble in an already risky industry.

I realize that Namibia has already taken measures to ensure an enabling environment for upstream activity, including making updates to its tax laws, and I applaud those actions. Namibia’s legal framework and oil and gas code, in general, are considered investor-friendly. But guaranteeing companies’ investments is a critical next step.

Time is Precious

Not only does Namibia need to add a fiscal stability clause to its petroleum agreements, it needs to do it now. It must also be done alongside local content legislation. Otherwise, there is a possibility that the issue of financial risk will come up during contract negotiations with BW Kudu, Rhino Resources, Galp Energia, and TotalEnergies, and their partners. And that, in turn, could lead to costly project delays, a topic the African Energy Chamber addresses extensively in its soon-to-be-released “The State of African Energy Report.”

For international oil companies (IOCs), investing in a country without a fiscal stability clause is quite a gamble in an already risky industry

I encourage Namibian authorities to learn from the delays that have taken place in Mozambique’s offshore Rovuma Basin. Natural gas discoveries totaling as much as 17 billion barrels of oil equivalent (boe) were announced in the early to mid-2010s, but Mozambique’s negotiations with operators, including Italian energy major Eni and U.S. firm Anadarko, have dragged on for years. As a result, the only project to be completed so far is the Coral Sul floating liquefied natural gas (FLNG) project, fed by Coral Field. The FLNG saw a final investment decision (FID) in mid-2017, followed by construction getting underway in 2018 and the project shipping its first cargo in November 2022. This is a positive step, but imagine the economic and energy security benefits Mozambique’s natural gas could have yielded without such extensive delays.

Then there’s the example of the massive oil discoveries made by Tullow Oil in Uganda and Ghana, announced about three months apart from one another in 2006 and 2007. Tullow Oil began producing oil from its Jubilee Field discovery in Ghana in 2010. Contrast that with Tullow’s Lake Albert Rift Basin discovery in Uganda. After more than a decade of disputes with the government and no progress, Tullow sold all of its Ugandan assets to Total (now TotalEnergies) in 2020.

In 2021, TotalEnergies concluded final agreements to launch Lake Albert resources development, including the Tilenga and Kingfisher upstream oil projects and the construction of the East African Crude Oil Pipeline (EACOP) in Uganda and Tanzania. TotalEnergies continues to move these projects forward in collaboration with China National Offshore Oil Corporation and Uganda National Oil Company. Unfortunately, climate concerns and net-zero emissions aspirations have made driving oil and gas projects forward considerably more challenging than it was in 2006. TotalEnergies is under heavy pressure from environmental activities to abandon its plans for oil production and the pipeline. They have courageously pushed forward and we must applaud them. Soon Uganda will be an oil producer.

So Much to Gain

Not only will a fiscal stability clause in Namibian petroleum agreements help prevent delays, acting decisively to protect companies’ investments will also position Namibia for more exploration.

The Orange Basin is one of several Namibian locations of interest to IOCs. Eco Atlantic’s Osprey exploration campaign in Block 2012A of the Walvis Basin, for example, was described as one of Africa’s most promising high-impact wells. Meanwhile, Global Petroleum, Namcor, and Aloe Investments are expected to begin exploration in Block 2011A of the Walvis Basin this year. BW Energy is set to drill for more gas on its Petroleum Production License 003 that could lead to developing the Kudu Gas discoveries.

Chevron Namibia Exploration Limited continuous to pursue its prospect portfolio offshore Namibia. There is potential for exploration wells to be drilled in Petroleum Exploration License 82 in the Walvis Basin.

Namibia’s offshore Luderitz Basin and Namib Basin, along with the onshore Owambo and Karoo basins, offer great potential as well.

But, again, interest could dry up quickly if companies begin to perceive Namibia as a risky country for investments. I personally don’t think so and certainly the African Energy Chamber does not think Namibia is a risky place for investment.

Calls for Change

The African Energy Chamber is not the first to urge Namibia to take steps to guarantee oil and gas companies’ investments. This topic came up in 2020, before the large Orange Basin discoveries.

Uaapi Utjavari, then chairperson of the Namibia Petroleum Operators Association (NAMPOA), wrote to Namibian Minister of Mines and Energy Tom Alweendo to describe the role that fiscal guarantee clauses could play in supporting ongoing investment in Namibian’s fledgling oil and gas sector. NAMPOA recommended a legal/fiscal/commercial framework that balanced the needs of the country and investors.

“There is a fundamental need for a stable and sustainable business environment so the country and the investors are able to plan ahead and rely on terms agreed upon,” Utjavari wrote. “An economic rebalancing provision provides appropriate security around economic terms, which are critical for large-scale multi-billion dollars project investment/bankability, while not infringing the host country’s sovereignty and are a common feature in many petroleum contracts globally.”

The recommendations NAMPOA made in 2020 still make sense for Namibia today.

The African Energy Chamber would like to see Namibia reap all of the benefits its natural resources can offer, from increased energy security to industrialization and economic growth. Namibia can do that — if it shows a watching energy industry that the country is committed to helping companies realize a reasonable return on their investments. Adding a fiscal stability clause to its contracts is the right move. I encourage Namibia to act now.

Distributed by APO Group on behalf of African Energy Chamber

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Sierra Leone’s PDSL to Host Strategic Investor Roundtable at Paris Energy Forum

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1 day ago

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March 24, 2026

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Energy Capital

The Petroleum Directorate of Sierra Leone will lead a targeted roundtable at Invest in African Energy 2026, spotlighting upstream potential and cross-regional partnerships

PARIS, France, March 24, 2026/APO Group/ –The Petroleum Directorate of Sierra Leone (PDSL) is set to convene an investor roundtable at Invest in African Energy (IAE) Forum 2026 in Paris, underscoring growing interest in West and North African energy markets and the need for deeper capital engagement across exploration, renewable and offshore services. The session reflects a strategic effort by Sierra Leone to connect its emerging upstream prospects with established operators and project developers as the country moves to unlock the full potential of its emerging oil and gas industry.

 

Sierra Leone is increasingly positioning itself as a frontier oil and gas market with significant offshore potential, and part of the PDSL’s mandate is to catalyze investment interest in its offshore acreage through direct engagement with global capital. Recent data suggest the country holds estimated recoverable resources in the tens of billions of barrels, backed by discoveries and extensive multi‑client seismic datasets that prospective investors are evaluating. The PDSL is actively promoting licensing opportunities and drilling plans, emphasizing fiscal terms and exploration readiness to attract strategic partners.

 

A cornerstone of this strategy is the anticipated launch of the country’s sixth licensing round. Offering a rare early-entry opportunity into a largely untapped deepwater terrain with considerable upside, the upcoming bid round is backed by fresh 3D datasets which de-risk exploration and support new drilling campaigns. Just this month, GeoPartners announced that the final Pre-Stack Time Migration data for its recently acquired 3D multi-client seismic survey in the country was complete and is now available for licensing. The dataset provides a 3D window into the hydrocarbon potential of the underexplored northern Sierra Leone region.

 

Sierra Leone’s licensing drive comes as major operators advance exploration activities. In 2025, Eni signed a Reconnaissance Permit Agreement with the PDSL, securing rights to conduct reconnaissance and technical evaluation activities across offshore blocks G113, G129, G130, G131 and G132. The acreage covers 6,790 square kilometers within Sierra Leone’s territorial waters. Nigeria’s F.A. Oil Limited is pursuing drilling following its award of six offshore blocks through the country’s fifth licensing round in 2023. The company is currently seeking a farm-in partner to advance the project from exploration to production, offering a 40% stake in each of the G Blocks 53, 54, 55, 71, 72 and 73.

 

As these development unfold, the upcoming roundtable at IAE 2026 offers a unique opportunity for operators and policymakers to engage potential investors. The IAE 2026 Forum has become a strategic bridge between African upstream opportunities and global investors, with sessions like the PDSL roundtable designed to foster deeper dialogue and provide clarity on project pipelines and investment prerequisites. Discussions are expected to cover mechanisms for de‑risking exploration activity, optimizing fiscal and contractual frameworks and identifying synergies between hydrocarbon investment and renewable energy commitments.

 

For investors seeking differentiated exposure to African energy markets, the Sierra Leone roundtable represents both a focused exploration of frontier oil potential and a broader conversation about regional infrastructure, partnerships and the evolving demands of energy capital in the years ahead.

 

IAE 2026 (www.Invest-Africa-Energy.com) is an exclusive forum designed to connect African energy markets with global investors, serving as a key platform for deal-making in the lead-up to African Energy Week. Scheduled for April 22–23, 2026, in Paris, the event will provide delegates with two days of in-depth engagement with industry experts, project developers, investors and policymakers. For more information, visit www.Invest-Africa-Energy.com. To sponsor or register as a delegate, please contact sales@energycapitalpower.com

 

Distributed by APO Group on behalf of Energy Capital & Power.

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Cape Town Prepares for African Mining Week 2026 as Draft Program Reveals Continent’s Mineral Drive

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1 day ago

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March 24, 2026

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Energy Capital

African Mining Week returns for its 2026 edition with an expanded three-day program, bringing together African mining leaders and global partners to shape the future of the continent’s mining sector

CAPE TOWN, South Africa, March 24, 2026/APO Group/ –Global economic trends – from record-breaking commodity prices to intensifying geopolitical competition for resources – are reshaping the strategic importance of Africa’s mineral wealth. As global countries race to secure supply chains for energy transition metals – which are expected to triple by 2030 – Africa is positioning its 30% share of the world’s critical minerals as a key pillar of economic growth. African governments are modernizing mining codes, developing industrial corridors and investing in mineral processing facilities to support local beneficiation, job creation, workforce development and regional mineral markets.

 

Against this backdrop, the upcoming African Mining Week (AMW) Conference & Exhibition – Africa’s premier gathering for mining stakeholders – has launched the draft program for its 2026 edition {https://apo-opa.co/3NneKLj}. Scheduled to take place October 14–16 in Cape Town, the event provides a platform where policymakers, global investors, project operators, technology providers, academia and mining service companies examine Africa’s mining opportunities, challenges and long-term strategic direction.

Under the theme ‘Mining the Future: Unearthing Africa’s Full Mineral Value’, the three-day, multi-track agenda reflects the growing urgency among African markets to strengthen value addition across the mining value chain.

Regional Cooperation and Policy Alignment in Focus

A key feature of the agenda is the Ministerial Forum, where African mining ministers will provide updates on regulatory reforms and policy alignment initiatives aimed at unlocking greater value from the continent’s mineral resources. Discussions will examine how harmonized regulatory frameworks and regional cooperation can accelerate investment flows and strengthen Africa’s position in global mineral supply chains.

The inclusion of regional policy integration reflects a growing continental push to leverage frameworks such as the African Continental Free Trade Area (AfCFTA) to enhance cross-border mineral cooperation and trade.

We are acting to enhance regional integration through frameworks such as the African Mining Vision and the Africa Mineral Strategy Group

“Africa’s integration is not only a political objective but a strategic economic vision,” stated Emmanuel Armah-Kofi Buah, Ghana’s Minister of Lands and Natural Resources, in remarks reported by Energy Capital & Power – organizers of AMW – in February 2026. “Our natural resources require coordinated policies. Isolated legal frameworks cannot fully unlock their value. Through integration and initiatives such as the ECOWAS [Economic Community of West African States] Mining Code and the African Mining Vision, we can build a stronger and more competitive mineral economy.”

Nigeria’s Minister of Solid Minerals Development, Henry Alake, echoed this emphasis on regional cooperation and beneficiation.

“We are acting to enhance regional integration through frameworks such as the African Mining Vision and the Africa Mineral Strategy Group,” he stated. “We must develop mineral corridors that connect resources, infrastructure and markets across the continent. Our goal is not to simply export raw materials, but to develop industrial hubs that create jobs and value across borders.”

Connecting Global Investors with African Opportunities

Strategic roundtables and Country Focus sessions form a key part of the AMW 2026 program, connecting African mining jurisdictions with international partners from the U.S, Europe, the Middle East and China. These sessions will provide African stakeholders with a platform to showcase exploration opportunities and project pipelines across the mining value chain.

Meanwhile, technical workshops and the exhibition floor at AMW 2026 will provide a platform for equipment manufacturers, technology providers and engineering firms to showcase innovations designed to enhance operational performance across mining operations.

By combining high-level policy dialogue with technical expertise and investment matchmaking, AMW 2026 positions itself as a critical marketplace where Africa’s mineral potential converges with global capital, technology and strategic partnerships – helping shape the next phase of growth for the continent’s mining sector.

AMW serves as a premier platform for exploring the full spectrum of mining opportunities across Africa. The event is held alongside the African Energy Week: Invest in African Energies 2026 conference from October 12-16 in Cape Town. Sponsors, exhibitors and delegates can learn more by contacting sales@energycapitalpower.com.

Distributed by APO Group on behalf of Energy Capital & Power.

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Tony Elumelu Foundation Selects Seven North African Entrepreneurs in 2026 Cohort

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March 24, 2026

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entrepreneurs

Seven North African entrepreneurs in technology, education, professional services and agriculture selected from 265,000 applications at historic Abuja ceremony

Hope is not just a feeling — it is a system we can build

ABUJA, Nigeria, March 24, 2026/APO Group/ —

  • 7 North African entrepreneurs selected from Morocco, Tunisia and Egypt
  • 51% of the 2026 cohort are women, all selected purely on merit, without any quota in place
  • 3,200 total entrepreneurs selected from 265,000+ applications across 54 African countries
  • USD 5,000 in non-refundable seed capital for each selected entrepreneur
  • Selection conducted independently by Ernst & Young

 

The Tony Elumelu Foundation (TEF) (www.TonyElumeluFoundation.org), the leading philanthropy empowering young African entrepreneurs, announced on Sunday, 22 March 2026 the 12th cohort of the TEF Entrepreneurship Programme at a ceremony held at the Transcorp Hilton, Abuja. The announcement was made by Founder Tony O. Elumelu, C.F.R.

 

Among the 3,200 entrepreneurs selected from 265,000 applications received from all 54 African countries: seven from North Africa. Three from Tunisia, two from Morocco, two from Egypt. Spanning technology, education, professional services and agribusiness, they represent a generation of North African founders building businesses that address the urgent needs of their communities. Their selection, which was conducted independently by Ernst & Young, places them among the most rigorously assessed young entrepreneurs on the continent.

 

This year’s cohort carries a historic signal: 51 percent of the 2026 entrepreneurs are women. They were selected purely on merit, without quota. Across hundreds of thousands of applications, women distinguished themselves through the strength of their ideas, the clarity of their business models and the ambition of their vision.

 

In 2026, the Foundation is empowering a total of 3,200 entrepreneurs across all its entrepreneurship programmes:

 

  • 1,751 entrepreneurs through Heirs Holdings Group: Heirs Energies, Transcorp Power, Transcorp Hotels, and United Capital;
  • 1,049 entrepreneurs in partnership with the European Commission, OACPS, BMZ and GIZ;
  • 100 entrepreneurs in partnership with Sèmè City Development Agency;
  • 100 entrepreneurs in partnership with DEG, the German Development Agency;
  • 100 entrepreneurs in partnership with the IKEA Foundation, UNICEF’s Generation Unlimited and the Dutch Government; and
  • 100 entrepreneurs in partnership with UNDP and the Rwandan Ministry of Youth and Arts.

 

 

Each selected Tony Elumelu Entrepreneur will receive USD 5,000 in non-refundable seed capital, access to world-class business management training on TEFConnect, one-on-one mentorship, and entry into a powerful network of investors, partners and fellow entrepreneurs.

 

In his annual letter (https://apo-opa.co/4uOFepM), “A Story of Hope,” Tony O. Elumelu, C.F.R., Founder of the Tony Elumelu Foundation, shared a powerful message to the new cohort:

 

“For a long time, I believed luck was something that simply happened to you. Then I came to understand: luck can be engineered. Opportunity can be democratised. Hope is not just a feeling — it is a system we can build.” — Tony O. Elumelu, C.F.R., Founder, Tony Elumelu Foundation — 2026 Annual Letter

 

The Tony Elumelu Foundation has empowered over 2.5 million young Africans with access to business management training on TEFConnect (https://TEFConnect.com), and disbursed over USD 100 million in seed capital to more than 24,000 selected entrepreneurs.

 

Collectively, these entrepreneurs have generated USD 4.2 billion in revenue and created more than 1.5 million direct and indirect jobs. Through its support for African entrepreneurs, TEF has lifted 2.1 million Africans above the poverty line and positively impacted more than 4 million African households, with 46% of supported entrepreneurs being African women. Eighty percent of TEF-supported businesses survive and scale, against a global average of ten to twenty percent.

 

 

The announcement ceremony was broadcast live in English (https://apo-opa.co/3PWLiML), French (https://apo-opa.co/3PWLiML), Portuguese (https://apo-opa.co/4t4Y7Da) and Arabic (https://apo-opa.co/4bYHlQl).

 

Distributed by APO Group on behalf of The Tony Elumelu Foundation.

 

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