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Libya’s Oil and Gas Outlook Continues to Look Stronger in The State of African Energy Q1 2023 Report (By NJ Ayuk)

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To increase confidence in the country’s oil and gas sector now that production has stabilized, the NOC has created a strategic plan to be carried out by what it is calling the Strategic Programs Office

JOHANNESBURG, South Africa, May 16, 2023/APO Group/ — 

By NJ Ayuk, Executive Chairman, African Energy Chamber (http://www.EnergyChamber.org).

When global oil prices reached a 15-year high in 2022, Libya, which holds 3% of the world’s hydrocarbon reserves and 39% of Africa’s, was unable to take advantage of the windfall.

The reasons were purely political.

Production was shut down for months beginning in April as oil became a pawn in the stalemate between rival leaders: internationally recognized Prime Minister Abdul Hamid Dbeibeh, head of the Government of National Unity (GNU), and Fathi Bashagha, parliament-appointed prime minister of the Government of National Stability (GNS).

Armed militias loyal to Khalifa Haftar, commander of the Bashagha-allied Libyan National Army, waged a campaign to oust Dbeibeh from office by blockading oil fields and ports. Within days, they had managed to close a laundry list of key operations and facilities, including the giant El Feel and El Sharara oil fields (plus several other smaller fields), and the Brega and Zueitina ports. As a result, Libya’s National Oil Company (NOC) was forced to declare force majeure, saying it was unable to fulfill its contractual obligations.

Economic Turmoil

The effect on the NOC was devastating, to say the least. At El Feel and El Sharara alone, lost production equaled 333,000 barrels per day (bpd), costing some USD34.69 million daily. Considering that oil and gas revenues have accounted in recent years for anywhere from 96% to 98% of Tripoli’s income (giving Libya one of the highest nominal GDPs in Africa), Libya’s economy didn’t fare any better.  The rebels’ actions were as much of a blow to the people as they were to Dbeibeh’s government.  

Unfortunately, this wasn’t the only time internal strife has targeted Libyan oil in recent years: A 2020 blockade of export terminals and pipelines resulted in GDP dropping 31% after exports of crude oil and condensates fell from 1.1 million barrels in 2019 to 350,000 barrels per day.

Despite the recent turmoil, things are looking up in Libya’s energy sector this year, at least so far. That’s according to “The State of African Energy Q1 2023 Report,” soon to be released by the African Energy Chamber (AEC). Among other country highlights, the report examines the effect of Libya’s parallel governments on its oil and gas industry and the NOC.

The State of African Energy Q1 2023 Report” predicts that, barring further disruptions, 2023 output should average 1.2 million bpd

Rapid Recovery

Production bottomed out under 600,000 bpd during the first half of 2022 — down 50% from the start of the year. But it rebounded remarkably almost as soon as Dbeibeh replaced the longtime NOC chair in July. The move, which was expected to give the country more control over oil revenues, satisfied the militia, who ended their blockades. In response, the NOC lifted force majeure and resumed full operations. As of the end of February 2023 crude oil production was close to pre-blockade levels at 1.164 million bpd. “The State of African Energy Q1 2023 Report” predicts that, barring further disruptions, 2023 output should average 1.2 million bpd.

That would put the NOC on its way to meeting the medium-term goal of 2 million bpd set last August by Dbeibeh, new NOC Chairman Farhat Bengdara, and other political heads. It’s unclear, however, if that figure can be achieved with the country’s current infrastructure, which is one reason GNU is working to attract additional foreign investment.

Political instability has been a fact of life in Libya for at least two decades, making it more challenging to convince international oil companies (IOCs) that Libya is a safe place to do business. Granted, there are a number of multinationals operating in the country, including France’s TotalEnergies, Italy’s Eni, Britain’s Shell, and America’s ConocoPhillips, some with histories dating back nearly 70 years. However, greenfield projects have been few and far between. When Eni announced in January of this year that it would partner with NOC in the USD8 billion Structures A&E offshore gas development, it marked the first new project in Libya in more than 20 years.

For Catherine Hunter, an analyst with S&P Global, the only way Libya can move forward is by cultivating a “far greater pool of investors to call on.” In an article posted by S&P Global, Hunter said that while there is clearly continued interest in Libya, it depends on the company’s risk tolerance.

To increase confidence in the country’s oil and gas sector now that production has stabilized, the NOC has created a strategic plan to be carried out by what it is calling the Strategic Programs Office. The idea, among other things, is to provide more transparency for IOCs into the NOC’s financials as a first step in what Bengdara called “an ambitious vision to return Libya to the ranks of the main energy-producing countries in the world.”

More Promising Signs

In the meantime, there are promising signs. In addition to Eni’s new venture, TotalEnergies, which holds interests in the Al Jurf, El Sharara, Waha, and Mabruk fields, late last year expanded its interest in Waha, completing a joint acquisition with ConocoPhillips to buy out Hess’ holdings.

In a media release, TotalEnergies said the purchase reflected the company’s “commitment to support Libya’s National Oil Corporation (NOC) in its efforts to restore and increase the country’s oil production, together with reducing gas flaring to increase supply to power plants for additional electricity supply.” The statement also said TotalEnergies and the NOC are studying the development of dedicated solar projects to supply electricity to Waha production sites.

Even more recently, good news came from the NOC itself: On May 1, just five weeks after the Erawin oilfield owned by an NOC subsidiary came online, production had already reached 92,000 bpd. That put it easily within range of its 100,000 bpd annual target.

Fair Winds

While political volatility doesn’t happen every day in hydrocarbon-producing countries, market volatility is far more common — and this time, Libya is prepared to profit from it. With Europe still seeking replacement supplies for Russian energy, it’s not surprising that long-time importers of Libyan energy — Italy, Spain, France, and Germany — would be turning to Tripoli for more oil and gas. Unless the political mayhem of 2022 resurfaces, it looks like Libya will continue to be an important outpost for exports and that the headwinds it has faced have died down.

Distributed by APO Group on behalf of African Energy Chamber.

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RIOT Network and MediaTek collaboration expands digital access in South Africa through innovative, community-driven Wi-Fi solutions

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MediaTek

RIOT Network aims to make fast, unlimited Wi-Fi services accessible for people in townships and underserved communities

JOHANNESBURG, South Africa, November 22, 2024/APO Group/ — 

MediaTek (www.MediaTek.com), a global fabless semiconductor company powering nearly 2 billion connected devices a year, and RIOT Network (https://RIOT.Network), a community mobile broadband provider in South Africa, have announced the successful integration of Mediatek’s Filogic 830 (https://apo-opa.co/3CIbkNl) chipset into RIOT’s second-generation CROWDNet Core Nodes.

The successful deployment of the CROWDNet nodes has enabled RIOT Network to achieve its aim of offering uncapped internet at an affordable price of R99 per month, and to do so profitably. To date, RIOT Network, in partnership with Sonke Telecommunications, has leveraged the nodes to connect more than 800 households and 5000 users in Olievenhoutbosch to uncapped Wi-Fi services.

RIOT Network aims to make fast, unlimited Wi-Fi services accessible for people in townships and underserved communities. Its CROWDNet Nodes, enable an innovative model for deploying user-operated network infrastructure. Community members serve as operators of some of the core network devices to earn a share of the fee from neighbours who use the service.

With each new connection, RIOT Network is highlighting the role of innovative fixed-wireless solutions in extending broadband access and improving digital inclusivity

CROWDNet powered by MediaTek Filogic 830 brings affordable, last-kilometre broadband to communities where it is not commercially viable to deploy towers or fibre. The MediaTek Filogic 830 is a high-performance SoC for routers, repeaters, access points and mesh networking devices. The SoC enables device makers to build-in powerful applications based on an energy-efficient, Wi-Fi 6-ready platform.

“The Mediatek’s Filogic 830 chipset delivers a unique balance of high performance and cost-efficiency, allowing us to keep operational costs low while maximising network reliability and speed,” said Jarryd Bekker, CEO at RIOT Network. “This combination of affordability and sustainable business growth is pivotal to our vision of expanding digital access in underserved communities. Our work in Olievenhoutbosch near Centurion demonstrates the power of reliable, affordable internet, creating new opportunities for economic and social engagement.”

“With each new connection, RIOT Network is highlighting the role of innovative fixed-wireless solutions in extending broadband access and improving digital inclusivity,” said Rami Osman (https://apo-opa.co/4ghZBUn), Director for Business Development, MediaTek Middle East and Africa. “We look forward to supporting RIOT in building a future where high-quality internet is accessible and impactful for all.”

Distributed by APO Group on behalf of MediaTek Inc

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African Energy Chamber (AEC) Endorses Inaugural Congo Energy & Investment Forum, Catalyzing Growth in the Republic of Congo’s Energy Sector

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African Energy Chamber

The African Energy Chamber proudly supports the inaugural Congo Energy & Investment Forum, scheduled for March 25-26, 2025 in Brazzaville

BRAZZAVILLE, Republic of the Congo, November 21, 2024/APO Group/ — 

The African Energy Chamber (AEC), as the voice of Africa’s energy sector, proudly supports the inaugural Congo Energy & Investment Forum (CEIF), set to take place in Brazzaville on March 25-26, 2025. Unveiled during African Energy Week: Invest in African Energies in Cape Town by the Republic of Congo’s Ministry of Hydrocarbons, this milestone event signals the nation’s commitment to strengthening its role as a key energy player on the continent, while showcasing a range of investment opportunities. 

Under the leadership of Hydrocarbons Minister Bruno Jean-Richard Itoua, the Republic of Congo has emerged as sub-Saharan Africa’s fourth-largest oil producer, with anticipated production of 280,000 barrels per day (BPD) by the end of 2024 and ambitions to reach 500,000 BPD within three to five years. Building on this momentum, the CEIF will highlight innovative projects and foster strategic partnerships that enhance investment, drive economic growth and position the Congo as a leader in Africa’s energy expansion.

Meanwhile, Société Nationale des Pétroles du Congo (SNPC), led by CEO Maixent Raoul Ominga, is spearheading the Congo’s energy growth. SNPC holds a majority stake in the Mengo Kundji Bindi II permit, with 2.5 billion barrels of estimated oil potential. The company is developing the site through 13 wells, 3D seismic data acquisition, and the construction of six production platforms. 

We are honored to secure the Chamber’s endorsement for this pivotal forum

With the Chamber’s official support, the CEIF is set to attract government leaders, C-suite executives from major IOCs and energy experts, who will offer critical insights into Congo’s oil, gas and energy sector developments. The country is overhauling its gas sector to unlock 10 trillion cubic feet of resources through a comprehensive Gas Master Plan and new Gas Code that introduces favorable fiscal terms and enables small-scale project development, as well as large-scale, integrated gas megaprojects like Eni’s Congo LNG and Wing Wah’s Bango Kayo. 

“The Congo Energy & Investment Forum marks a major milestone for the country, amplifying its strategic energy initiatives and showing industry stakeholders that it is serious about advancing its energy sector. We look forward to supporting this forum, which promises to connect investors, drive impactful partnerships and elevate the Congo’s position within Africa’s energy sector,” says NJ Ayuk, Executive Chairman of the AEC.  

“We are honored to secure the Chamber’s endorsement for this pivotal forum, which, through its vast network and influence, will help attract key stakeholders and decision-makers to the event. Together, we aim to highlight the immense potential of the Congo’s energy sector, foster strategic partnerships and drive transformative investments that contribute to sustainable growth across the industry,” notes James Chester, CEO of Energy Capital & Power, organizers of the CEIF.   

This premier forum provides a unique platform for connecting local and international investors with high-impact opportunities across a diversified range of energy projects, paving the way for collaborations that drive growth and transformation. The AEC’s endorsement underscores its commitment to fostering strategic partnerships, sustainable investment and regional cooperation, aligning with its broader mission to make energy poverty history across the continent by 2030.  

As the energy industry continues to serve as a critical pillar of the Congolese economy and a catalyst for sustainable development, the AEC remains dedicated to supporting initiatives like CEIF that foster progress, investment and partnerships across the African energy landscape. 

For more information, please visit www.CongoEnergyInvestment.com

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

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Any Successful African Energy Policy at Conference of the Parties (COP) or Anywhere Must Have Oil and Gas at its Core (By NJ Ayuk)

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Conference of the Parties

Africa will need global financial systems, including multilateral development banks, to play a significant role in financing our energy growth which must include fossil fuels

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JOHANNESBURG, South Africa, November 21, 2024/APO Group/ — 

By NJ Ayuk, Executive Chairman of the African Energy Chamber (www.EnergyChamber.org).

I believe the ultimate responsibility for getting there is ours and no one else’s. Yes, we need partners to walk alongside us, but the success of our energy movement rests on African shoulders.

To begin with, I would love to see African energy stakeholders speaking in a unified voice about African energy industry goals.

This will be particularly important in COP29 in Baku. It is imperative that African leaders present a unified voice and strategy for African energy transitions. We must make Africa’s unique needs and circumstances clear and explain the critical role that oil and gas will play in helping Africa achieve net-zero emissions in coming decades.

I would encourage African leaders to talk about the need for financing, as well, to make it possible for us to adopt renewable energy sources and set up the necessary infrastructure. Africa will need global financial systems, including multilateral development banks, to play a significant role in financing our energy growth which must include fossil fuels.

Africa’s governments have a role to play in a successful African energy movement as well.

Because Africa’s energy industry still can benefit greatly from the presence of international oil companies, our government leaders need to approve contracts with oil and gas companies promptly instead of allowing red tape to delay projects after discoveries are made.

And, they need to offer the kinds of fiscal policies that allow oil companies to operate profitably in Africa. In turn, that will help those companies generate revenue, create jobs and business opportunities, and foster capacity building.

I also would encourage governments and civil societies to reward companies that exemplify positive behavior. Let’s incentivize the kind of activities we want, from creating good jobs and training opportunities to sharing knowledge.

I would love to see African energy stakeholders speaking in a unified voice about African energy industry goals

And there’s more.

We in Africa must work together to create more opportunities for women to build careers in the oil and gas industry at all levels. Our energy industry can’t reach its potential to do good when half of our population is left out. Our progress on behalf of women has not been great—We need to do better, and we need to act quickly.

How the world can support

Now, I mean it when I say Africans are responsible for building the future they want. But, I would love to see Western governments, businesses, financial institutions, and organizations support our efforts.

How? They can avoid demonizing the oil and gas industry. We see it constantly, in the media, in policy and investment decisions, and in calls for Africa to leave our fossil fuels in the ground. Actions like these, even as Western leaders have pushed OPEC to produce oil, are not fair, and they’re not helpful.

I also would respectfully ask financial institutions to resume financing for African oil and gas projects and stop attempting to block projects like the East African Crude Oil pipeline or Mozambique’s LNG projects.

Please understand that with the war in Ukraine, the energy crisis in Europe, and the energy poverty facing our continent, our countries, like many others, are simply choosing the paths they believe are most likely to help their people.

You know, people for years have accused me of loving oil and gas companies more than Africa. The opposite is true. In my frequent travels around the continent, I’ve observed far too many young people with little in the way of opportunities.

I know our young people have aspirations for a better future. I know they have big dreams. And, I know that future is nearly within their grasp.

A thriving, strategically managed energy industry can make it possible for many of these young people, whether it leads to good jobs or it fosters the kind of economic growth that creates jobs in other fields. Even if we only get the lights on in their communities, we’ll be giving our young people hope and improving their chances of realizing their goals.

This is what drives me, the idea that with our ongoing efforts and determination, our young people can realize meaningful opportunities. I encourage each of you to work with us at the African Energy Chamber, in a spirit of cooperation and mutual respect. Together, we can build the kind of African energy movement that our continent, our communities, and our young people need and deserve.

Distributed by APO Group on behalf of African Energy Chamber.

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