The South African National Petroleum Company hosted the first stop of its global investor roadshow at African Energy Week: Invest in African Energies, presenting plans to strengthen South Africa’s energy security, prioritize fossil fuel development and enhance refining capacity

CAPE TOWN, South Africa, November 10, 2024/APO Group/ — 

The newly-sanctioned South African National Petroleum Company (SANPC) kicked off its global investor roadshow at African Energy Week: Invest in African Energies on Thursday, inviting investors and governments to engage with South Africa’s oil and gas prospects, while showcasing strategic plans for the new entity.

Speaking on the rationale behind the creation of the SANPC, South Africa’s Minister of Mineral and Petroleum Resources, Gwede Mantashe, emphasized the need to rationalize and consolidate the country’s many state-owned enterprises. The aim is to maximize efficiencies, streamline the sector, reduce costs and prioritize petroleum development as a catalyst for economic growth.

“The focus is to drive economic growth and development. We want it to grow – we want to get into fossil fuels. We must do it. [We want to] improve operational efficiencies, scale of market and market share,” said Minister Mantashe.

The SANPC operates under a broad mandate to acquire, generate, manufacture, market and distribute all forms of energy, including crude oil, natural gas, coal, renewable energy and biofuels. South Africa’s extensive coal bed methane and shale gas resources were highlighted, including the gas-rich Karoo Basin and the Saldanha Bay gas-to-power project. The country also benefits from deep-sea ports, robust infrastructure and a favorable regulatory framework, with the potential to create synergies with nearby oil and gas producers such as Mozambique and Angola.

“We need to start thinking as a region instead of as countries,” said Godfrey Moagi, CEO of SANPC.

We need to start thinking as a region instead of as countries

South Africa’s refining capabilities were also emphasized as a critical priority, with enhancing the country’s liquid fuels security identified as a matter of national security and strategic interest. The SANPC stated that in 2024, South Africa is expected to import 70% of its manufactured liquid fuel needs.

“This has put the country at risk, and we are dealing with issues of security of supply. We need to prioritize commercial sustainability for the entire CEF Group to drive economic recovery,” said Moagi. “In South Africa, we import $2.5 billion of crude oil and products. The SANPC is going to change this, so that South Africa looks differently.”

“[Reviving] refining capacity reduces the risk on petroleum supply. We must cushion it with our own refining capacity,” said Minister Mantashe.

Following its formation in 2024, the SANPC will enter its second phase of operationalization in 2025, which includes forming strategic partnerships and alliances, operationalizing its assets, and optimizing its business and service model. Starting in 2026, the company plans to enter its growth phase, deploying an integrated “New Energy” growth strategy, developing and optimizing assets, expanding its portfolio, diversifying revenue streams and advancing its technology and innovation strategy.

The SANPC will host a series of upcoming roadshows spanning Africa, Europe and the Middle East, organized by Energy Capital & Power.

Distributed by APO Group on behalf of African Energy Chamber.

Algeria’s National Agency for the Valorization of Hydrocarbon Resources showcased six high-potential onshore licensing opportunities and extensive data packages at African Energy Week: Invest in African Energies

CAPE TOWN, South Africa, November 10, 2024/APO Group/ — 

Algeria’s National Agency for the Valorization of Hydrocarbon Resources (ALNAFT) presented six onshore conventional licensing opportunities at African Energy Week: Invest in African Energies on Thursday. 

The six high-potential opportunities consist of a mix of exploration, development and export opportunities and are open to competitive bidding. The round is part of a five-year licensing plan designed to attract global upstream investors and leverage more than 20 opportunities in Algeria.

Following the launch of the licensing round on October 14, access to the tender documents and data packages will open on November 26. The deadline for bid submissions is April 15, 2025, followed by the evaluation and awarding of bids.

The six opportunities span a cumulative perimeter size of 152,000 km², supported by over 102,000-line km of 2D seismic data and more than 45,000 km² of 3D seismic data. Potential bidders will have access to Perimeter Conditioned Data Packages and Evergreened Data Packages during the data access period, which runs from November 26, 2024, to April 1, 2025. To submit a bid, participants must prequalify with ALNAFT and acquire the necessary tender documents.

Today, we have more than 240 discoveries waiting to be developed

The presentation was followed by a Fireside Chat featuring ALNAFT and the Hydrocarbon Regulatory Authority (ARH), which highlighted the advantages of investing in Algeria’s oil and gas sector. In addition to being one of the most established markets with strong geological potential, Algeria offers an attractive regulatory framework and various vehicles for partnerships with international oil companies (IOCs).

“We have been working with IOCs for more than 35 years and never had a problem with contract sanctity. In Algeria, a contract is a holy document,” said Mourad Beldjehem, President of ALNAFT. “We previously had one type of contract for partnership, and now we have three: production-sharing, concession and risk services contracts.”

Algeria is seeking increased upstream investment and capital to drive new exploration activities, while prioritizing broader goals such as energy access, infrastructure development and local content.

“We need more exploration. Today, we have more than 240 discoveries waiting to be developed. We need to make more discoveries to increase our reserves. We are looking for companies who are strong in exploration,” said Beldjehem.

“Africa’s energy priorities are essential to stimulate socioeconomic development – universal access to energy, modernizing existing infrastructure and local capacity building and training to sustain African projects,” said Rachid Nadil, President of ARH.

Distributed by APO Group on behalf of African Energy Chamber.

Cross-continental and regional collaboration is essential to mitigate supply chain disruptions impacting Africa’s trade routes, as highlighted by industry leaders during an Africa Global Logistics sponsored session at AEW: Invest in African Energies 2024

CAPE TOWN, South Africa, November 10, 2024/APO Group/ — 

Most of Africa’s trade is carried out via sea routes. Geopolitical conflicts, however, including the war in Ukraine and attacks on commercial shipping vessels in the red sea, have caused detours and delays, impacting on maritime trade to and from Africa.

This new wave of disruption follows the unprecedented global logistics crunch caused by the COVID-19 pandemic. According to United Nations Trade and Development (UNCTAD), this compounds the challenges caused by reduced ship transits in the Panama Canals where water levels have been impacted by drought.

During a panel discussion at African Energy Week (AEW): Invest in African Energies 2024, sponsored by logistics and port operations company Africa Global Logistics (AGL), valuable insights were shared on how to mitigate some of the impacts of supply-chain disruptions and how to proactively navigate the evolving logistics landscape in Africa.

Ashutosh Singh, Head of Energy Transition at S&P Global Commodity Insights, set the tone of the discussion as the panel moderator. Panelists included Thomas Bonnetain, Oil & Gas Director at AGL; Dennis Malkoc, Business Development Manager at global shipping company Universal Africa Lines Netherlands B.V; Leonid Shlyakhturov, Executive Director of “FESCO Integrated Transport”, Rosatom; and Björn Larsson, Senior Project Manager at international subsea services company DOF Subsea.

Unpacking some of the more recent supply chain disruptions being experienced, Bonnetain noted a surge in the cost of international transport to bring material into Africa and much longer lead times to bring equipment to project sites. Disruption of the Suez Canal has led to the rerouting of vessels around the African continent, causing delays at African ports due to a rise in demand for port services. This results in increased project costs and causes project delays in Africa, said Bonnetain.

Active in 47 African countries, AGL operates in energy, mining, and power generation sectors across the continent. Bonnetain said Africa is in desperate need for investment to modernize its logistics network and build capacity at ports, on road and via rail. To assist the modernization of Africa’s logistics infrastructure, AGL has an over $500 million investment plan each year, and is a primary player in public-private partnerships in Africa to help the continent’s much needed transformation, Bonnetain said.

We are at the heart of African transformation

AGL has also invested in the Port of Lobito – the second largest port in Angola – to increase the attractiveness of the terminal and to contribute to the economic and social development of the region. “We are at the heart of African transformation,” Bonnetain said.

Speaking on some of the challenges faced at African ports, Malkoc said that commercial ports owned and operated by local port authorities “are a big concern for us”, citing delays and quay congestion resulting in higher cargo costs. This is due to a lack of investment and organisation at the port, he believes.

Offering a practical example of how Africa could reduce supply chain disruptions and make trade more efficient, Shlyakhturov used China and Russia’s cross-continental collaboration as a model that Africa could adopt to improve both regional trade as well as cross-continental trade. He said trade between China and Moscow is supported by five diversified routes between the countries including road, sea, and rail trade routes.

Elaborating on how to streamline trade with Africa, Larsson said the harmonization of regulatory frameworks along shipping routes, specifically for the movement of equipment, personnel, oil and gas and energy products via sea, would go a long way.

The panel discussion formed part of AEW: Invest in African Energies’ ‘Energy Transition Summit’. The summit aims to address African countries’ diverse challenges and opportunities, by highlighting the critical pathways to achieve a balanced and equitable energy future in Africa.

AGL is a Diamond Sponsor of the AEW: Invest in African Energies 2024 conference, which is being held in Cape Town this week.

Distributed by APO Group on behalf of African Energy Chamber.