Connect with us

Business

Addressing Delays in the Name of Progress: The State of Play of African Oil and Gas (By Gawie Kanjemba)

Published

3 years ago

on

African oil

At a time when African oil and gas holds the key to a secure energy future, the trend of project delays needs to be addressed

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

By Gawie Kanjemba, International Energy Fellow, African Energy Chamber (www.EnergyChamber.org)

Historically, oil and gas projects are known to experience delays ranging from 5% to 20% of the project duration owing to project complexity, significant capital requirements and the multi-faceted nature of developments. In 2023, oil and gas projects across Africa are experiencing even further delays, a trend which is detailed in the African Energy Chamber’s (AEC) recent market-focused report, The State of African Energy Q1, 2023 Outlook. The report paints a telling picture of the challenges facing the industry and the impacts these delays could have.

Procrastination: The Foe of Progress

According to the report, delays from discovery to final investment decision (FID) to development kick-off have increased, leading to revenue losses due to deferred production, increased costs for contractors, and essentially lack of progress. This trend mimics Parkinson’s Law of Delay, an observation that work will expand to fill the time allocated to it. In this scenario, procrastination is the ultimate foe of progress and productivity, and unless delays are addressed, Africa will not be able to unlock the full potential of its oil and gas. 

Despite their significance, a number of large-scale projects are experiencing a lull. These include the Mozambique liquefied natural gas project which has experienced multiple delays due to security concerns. Developed by TotalEnergies, the project was originally scheduled to start production in 2024 (FID was secured in 2019) but the start-up is now delayed to the late-2020s due to the declaration of force majeure by TotalEnergies. Additionally, the East African Crude Oil Pipeline – which will transport crude oil from Uganda to Tanzania for export – has been delayed due to financing challenges and environmental opposition. The project, which is being developed by TotalEnergies and other partners, was initially expected to start operating in 2020 but is now expected to come online in 2025. In Nigeria, several offshore oil projects have experienced delays due to security concerns, regulatory issues, and technical challenges. For example, the TotalEnergies-developed Egina oil field, saw a 12-month halt due to issues related to local content requirements and delays in the delivery of key components. Meanwhile, sizeable natural gas volumes discovered in Ethiopia in the 1970–1980s are yet to see FID, with project delays extending decades.

However, there are several successful stories such as the Jubilee field off the coast of Ghana, which has been in production since 2010 and has had a significant positive impact on the country’s economy. Another example is Egypt’s Zohr gas field, which has been in production since 2017, and Angola’s Kaombo, which has been producing since 2018. These countries have experienced relatively few delays in their projects and are now enjoying the benefits of their successful development. Unless other O&G projects are developed with the same urgency, Africa’s production forecast will see a downturn.

According to the AEC’s report, the currently producing fields, both liquids and gas, are in terminal decline due to depleting reservoirs

Start-ups Critical for Long-Term Output

According to the AEC’s report, the currently producing fields, both liquids and gas, are in terminal decline due to depleting reservoirs. Infill drilling or redevelopment programs on these fields, which involve brownfield spending, may only temporarily stabilize the decline in production. Liquids output from these fields is expected to decline from 7.66 MMbbls/d in 2023 to 6.85 MMbbls/d in 2025 and 4.7 MMbbls/d in 2030. The average annual production decline rate is 8% through 2025-2030 and a higher 10% through 2031-2040. Any further delays or shelving of future start-ups can be catastrophic to Africa’s hydrocarbon output. Although short-term (2023-2025) start-ups are expected to have little impact on the forecast, the medium-term (2026-2030) and long-term (2030+) start-ups are expected to drive a revival in Africa’s liquids output. The good news is that the overall impact of delayed start-ups is short-lived, and the total liquids output from Africa is expected to ramp up to about 8.4 MMbbls/d in 2036.

Similarly, regarding gas production, the decline in producing fields, though terminal, is not as steep as liquids-producing fields. The short-term start-ups are estimated to account for 10% of the total output by 2025, but the share from the currently producing fields is expected to drop to 50% by 2031 and further to about a quarter of the total output by 2040. The long-term start-ups are estimated to add up to a third of the total output by 2035 and half of the total output by 2037-2038, and this share is only expected to increase going forward.

Capital Flows to Africa’s Deepwaters

Governments are already considering project delays and the issues caused, both economically for the countries dependent on hydrocarbon exports and domestically for countries looking to diversify the energy sector. Efforts have been made to address these issues, such as Nigeria passing the Petroleum Industry Act resulting in new production-sharing contracts signed with supermajors. As such, investment is seeing a gradual surge, and Africa’s deepwater prospects are gaining attention.

Due to the fact that most of the untapped O&G are currently located in deep waters off the coast of Africa, the majority of future investment is expected to be directed towards the deep offshore. By 2025, it is projected that 45% of the estimated $24 billion greenfield spending will be in deepwater projects, and by 2030, it is estimated to increase to over 50%. This trend is expected to continue, with over 55% of the estimated $64.5 billion total spending in 2035 projected to be spent on deepwater projects. Of the estimated $775 billion total greenfield spending between 2023 and 2040, approximately 48% is expected to be spent on deepwater projects.

Some notable deepwater projects in Africa include the Greater Tortue Ahmeyim (GTA), Yakaar–Teranga, Bir Allah, and Orca projects offshore Senegal-Mauritania as well as the Pecan project offshore Ghana; the Brulpadda and Luiperd gas fields offshore South Africa; and the recently discovered Graff, Venus and Jonker finds offshore Namibia. These deepwater projects are significant in terms of reserves and cost, making them major drivers of O&G spending. Given the importance of these projects for Africa’s production forecast, both governments and operators must prioritize securing funding for their development.

The AEC’s State of African Energy Q1, 2023 Outlook provides a comprehensive overview of the state of play of Africa’s O&G projects, highlighting the urgent need to advance collaboration, investment and development. Time is of the essence, and missing this opportunity could result in a significant development gap between Africa and the rest of the world. However, with accelerated projects, it is still possible for Africa to utilize its resources while adhering to global climate targets. In this context, AEC Executive Chairman NJ Ayuk’s slogan, “Drill baby Drill!” holds a palatable meaning. Let us work together to prevent project delays and drive environmentally-sound developments so that Africa benefits from its O&G resources. 

Distributed by APO Group on behalf of African Energy Chamber.

Related Topics:
Continue Reading
Advertisement

Business

Enlit Africa seeks contributions that move the conversation from strategy to execution: ensuring a Future Fit Africa

Published

1 day ago

on

September 25, 2026

By

Share your expertise with Africa’s power, energy and water community, connect with decision makers from across the value chain and contribute to the conversations shaping the continent’s next generation of infrastructure and investment

CAPE TOWN, South Africa, September 25, 2026/APO Group/ –Speaker submissions are open for Enlit Africa, created by VUKA Group (www.WeAreVuka.com), as it returns to the CTICC, Cape Town from 11–13 May 2027.

Do you have a project, lesson, strategy or innovation that Africa’s energy sector should hear about?

 




  

We invite utilities, project owners, developers, IPPs, commercial and industrial energy users, municipalities, policymakers, regulators, financiers, researchers and industry practitioners to submit abstracts sharing practical experience, case studies, research, projects and lessons from across Africa’s changing energy and water sectors.

What are we looking for?

We particularly encourage non-vendor speakers to submit contributions across:

  1. Enlit Africa Main Stage – From Strategy to Execution
    Policy, market reform, investment, leadership and the decisions required to turn Africa’s energy ambitions into implementation.
  2. Generation
    New capacity, generation technologies, energy security, operating performance and Africa’s evolving energy mix.
  3. Transmission & Distribution
    Grid expansion, modernisation, open access, system operation, cross-border interconnection, digitalisation and infrastructure investment.
  4. Municipal Forum:Municipal management, with an emphasis on electricity and water – with a strong emphasis on service delivery.
  5. Power Hub:Technical advancements in power generation, transmission, distribution and more. Technical presentations encouraged.
  6. Water Hub:Technical insights into water management and solutions.
  7. Water Security Hub: Strategy, finance, management and technology application for water security.
  8. Project & Investment Hub: Project developments, country roundtables, project briefings, finance, and innovative financing models (including M300).
  9. Renewable Energy & Storage:Covering both technical and strategic applications of renewables and storage.

What makes a strong submission?

We want to hear about what is happening on the ground.

Tell us about:

  • A project being implemented or developed
  • A challenge your organisation has solved – or is still trying to solve
  • Lessons from implementation
  • New research or industry findings
  • Innovative financing or commercial models
  • Technologies being deployed in real operating environments
  • Policy or regulatory changes and what they mean in practice
  • Approaches that could be replicated elsewhere in Africa

Preference will be given to submissions that provide practical insights, measurable outcomes and lessons that the wider industry can apply.

Why present at Enlit Africa?

Africa does not need another conversation about what should happen. Help us explore how we make it happen and how we ensure Africa is future fit.

Share your expertise with Africa’s power, energy and water community, connect with decision makers from across the value chain and contribute to the conversations shaping the continent’s next generation of infrastructure and investment.

Submission details

Abstract length: 300–500 words
Submission deadline: 29 January 2027
Speaker feedback: 7 December 2026 – 5 February 2027

Visit the Enlit Africa website to submit your speaker abstract: https://apo-opa.co/4d2TTq2

Distributed by APO Group on behalf of VUKA Group.

 




 

Continue Reading

Business

CEM Africa Awards 2026 set to recognise Africa’s leading Customer Experience (CX) talent and innovation

Published

1 day ago

on

September 25, 2026

By

The 2025 awards attracted more than 80 entries and 31 finalists, culminating in eight award winners

The calibre of organisations and individuals recognised through the CEM Africa Awards demonstrates just how much extraordinary CX work is being done across the continent

 




 
JOHANNESBURG, South Africa, September 25, 2026/APO Group/ –Customer experience professionals, teams and organisations across Africa have just days remaining to enter the 2026 CEM Africa Awards, with free applications closing on 30 September 2026.

 

Taking place on 10 November 2026 at the NH Hotel in Sandton, Johannesburg, the Customer Experience Africa Awards form part of the CEM Africa platform and recognise the individuals, teams, technologies and initiatives raising the standard of customer experience across the continent.

For organisations considering whether to enter, the company they could be keeping provides a compelling indication of the calibre of the awards.

A growing roll call of African CX leaders

The 2025 awards attracted more than 80 entries and 31 finalists, culminating in eight award winners. Finalists represented organisations spanning financial services, technology, telecommunications, retail, insurance, public services and social impact.

Among them were Absa, Capitec Bank, Santam, Telesure Investment Holdings, Equity Bank, Takealot.com, NTT DATA, Frogfoot, Telviva, Harambee Youth Employment Accelerator, the University of Pretoria and South Africa’s Department of Social Development.

The 2025 winners included Serisha Iyer of Absa Corporate and Investment Banking, named Rising Star in CX; Alma Angela Olela of Jubilee Health Insurance, named CX Leader of the Year; and Franco Cotumaccio of Shadow Global, winner of Breaking Barriers in CX.

Corporate winners included Telesure Investment Holdings for Best Overall CX Solution, Krisp for Best Use of AI, Telviva for Best Enterprise Contact Centre Platform, Harambee Youth Employment Accelerator for Best Customer Experience Team of the Year and the University of Pretoria for Best Citizen Experience Initiative.

That follows a 2024 edition in which winners included NCBA Bank, MultiChoice, Digital Solutions Group, Absa Bank and Telviva, alongside individual CX leaders from across the continent.

More than a trophy

For entrants, recognition through the CEM Africa Awards puts their work in front of a wider African CX community and an independent judging panel drawn from across the industry.

The 2026 judging panel includes global CX specialist Ian Golding; Andrew (Dré) Enebeli, Head of CX & Engagement at Access Bank; Dr Oliver Museka, President and Founder of IRDM College Eswatini; Jonathan Daniels, Managing Director of CX Centric; Joven Pillay, Partner and Head of Customer Consulting at KPMG; and Qaalfa Dibeehi, Managing Partner at Human2Outcome.

This year’s awards recognise excellence across four broad pillars – People, Innovation, Transformation and Government – covering categories including CX Leader of the Year, Rising Star in CX, Breaking Barriers in CX, Best Overall CX Solution, Best Use of AI, Best Enterprise Contact Centre Platform, Best Customer Experience Team of the Year, Best Digital Transformation in Public Services and Best Citizen Experience Initiative.

“The calibre of organisations and individuals recognised through the CEM Africa Awards demonstrates just how much extraordinary CX work is being done across the continent. These awards give that work a platform. Whether it is a major transformation programme, an innovative use of technology or an individual changing how their organisation thinks about the customer, we want to make sure Africa’s best work is being seen and recognised.”

  • Briteny Price, Event Manager and CEM Africa Awards Director

Final opportunity to enter

Applications for the 2026 CEM Africa Awards are free and remain open until 30 September 2026. Finalists will be announced in October, ahead of the awards ceremony on 10 November at the NH Hotel, Sandton.

Organisations, teams and individuals working to improve customer and citizen experience across Africa are encouraged to submit their entries before the deadline.

Apply for the CEM Africa Awards 2026 by 30 September 2026

Submit your application (https://apo-opa.co/4hdcimx)

Explore the CEM Africa Awards

Visit the CEM Africa Awards website (https://apo-opa.co/4iNXzzM)

Distributed by APO Group on behalf of VUKA Group.

 




  

Continue Reading

Business

Emirates to bring the A350 to Nairobi, introducing next-generation cabin experiences

Published

1 day ago

on

September 25, 2026

By

The introduction of the A350 also marks the first time Emirates’ highly acclaimed Premium Economy cabin will be available to customers flying to and from Kenya, complementing the airline’s enhanced Business and Economy offerings

NAIROBI, Kenya, September 25, 2026/APO Group/ —

  • From 25 October, Nairobi becomes the 32nd destination to be served by the Emirates A350
  • Latest-generation aircraft introduces Emirates’ acclaimed Premium Economy cabin to Kenya for the first time, along with enhanced Business and Economy Class cabins
  • Deployment reinforces Emirates’ continued investment in Kenya and commitment to delivering an exceptional customer experience across its Africa network

 




  

Emirates (www.Emirates.com), the world’s largest international airline, will soon serve Nairobi with its newest aircraft type, the Airbus A350 (https://apo-opa.co/47hy1nv). From 25 October 2026, the A350 will operate on EK717 and EK718, bringing Emirates’ latest-generation cabin experience to customers travelling between Dubai and Nairobi. The Emirates A350 is defined by spacious, bright cabins, enhanced technology, connectivity, and the airline’s signature hospitality across all three cabins.

 

The introduction of the A350 also marks the first time Emirates’ highly acclaimed Premium Economy cabin will be available to customers flying to and from Kenya, complementing the airline’s enhanced Business and Economy offerings.

 

Christophe Leloup, Emirates Country Manager in Kenya said, “The arrival of the A350 in Nairobi marks an exciting new chapter for Emirates in Kenya. We’re delighted to bring our latest aircraft and onboard experience to our customers in market, with more comfort, choice and thoughtful touches in every cabin. Combined with our growing flight schedule, the A350 gives customers travelling on the Dubai-Nairobi route something new to discover, while building on the experience they know and love from Emirates.”

 

 

What passengers can expect from the A350

The newest aircraft type to join Emirates’ all widebody fleet, the A350 accommodates 298 passengers in three spacious cabins – Business, Premium Economy and Economy. The bright and airy cabins have been thoughtfully designed to provide more space and comfort in every cabin, whilst cutting-edge technology and enhanced entertainment options elevate every journey.

 

Making its debut in Kenya, Emirates’ Premium Economy cabin offers elevated comfort, comparable to a Business Class experience on many airlines. The cabin is spacious with leather reclining seats that feature a generous pitch, adjustable headrests and more legroom. Customers can enjoy in-seat charging points, a wood-finished side cocktail table, a 13.3-inch TV screen, a generously sized pillow and blanket, complimentary amenity kits on select flights – including the Dubai-Nairobi route – and a globally exclusive sparkling wine, Chandon Vintage Brut 2017.

We’re delighted to bring our latest aircraft and onboard experience to our customers in market, with more comfort, choice and thoughtful touches in every cabin

 

Business Class is configured in a 1-2-1 layout ensuring every passenger has direct aisle access and a spacious, private environment for both work and relaxation. The fully lie-flat seat is wrapped in soft cream leather and features a personal minibar and wireless charging for comfort and convenience. At the back of the cabin is a snack display area allowing passengers to help themselves to refreshments throughout the flight.

 

Economy Class features an all new, airy colour palette of sky blue, bronze and cream, complemented by lighter-toned wood finishings. Each seat features the airline’s upgraded ice inflight entertainment system on a 13.3inch 4K adjustable touchscreen, while generous seat pitch and leather headrests provide support, comfort and extra legroom.

 

 

Continuing to raise the bar in Kenya

The deployment of the A350 follows a series of enhancements to the Emirates customer proposition in Kenya, including the introduction of the third daily flight between Dubai and Nairobi in July. With 21 flights per week, customers have greater flexibility and connections between Kenya and key markets across Europe and the US, via Dubai.

 

Nairobi is also home to Africa’s first Emirates World (https://apo-opa.co/4yeI34C) store, which opened in 2024, offering customers a more immersive way to discover Emirates’ products, while offering more convenience and personalised service.

 

Earlier this year, Emirates introduced further flexibility for customers in Kenya through a partnership with Cellulant, launching a split-payment solution (https://apo-opa.co/4xLYG6R) that allows travellers to combine multiple payment methods across 24-hour instalments when purchasing airfares.

Tickets can be booked now on Emirates.com, the Emirates App, or via both online and offline travel agents as well as Emirates World Store (https://apo-opa.co/46Kglkc) in Nairobi. Emirates continues to offer flexible booking policies for added peace of mind while travelling. Every ticket booked after 10th August 2026 comes with free unlimited dates changes to Dubai and one complimentary date change to anywhere else in the world, in addition to significantly reduced refund fees across all cabins and fare types, allowing passengers to adjust their travel plans with minimal penalties.

Distributed by APO Group on behalf of The Emirates Group.

 




 

Continue Reading

Trending

Exit mobile version