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African Countries Must Oppose Measures at COP27 that Prevents Africa from Making Full Use of its Fossil Fuels (By NJ Ayuk)

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COP27

The world’s wealthy nations’ green agenda ignores Africa – or at least, it dismisses our unique needs, priorities and challenges

JOHANNESBURG, South Africa, November 4, 2022/APO Group/ — 

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

I am going to COP27 because I believe if Africa is not on the table it will be on the menu. Let me be clear, those of us who are advocating for African countries to continue using their oil and gas resources are not “ignoring” the world’s green agenda – we’re simply not willing to embrace the world’s timetable for transitioning to renewable fuels at the expense of our own energy security and economic well-being.

The way we see it, the world’s wealthy nations’ green agenda ignores Africa – or at least, it dismisses our unique needs, priorities and challenges.

The green agenda of developed nations further ignores the tremendous role that Africa’s oil and gas industry plays in generating African countries’ revenue. Oil revenues represent at least 20% of GDP in Libya, Algeria, Gabon, Chad, Angola, and The Republic of Congo. In Nigeria, one Africa’s main oil producers, oil represents a more modest percentage of real GDP – about 6% – however, oil and gas account for 95% of foreign exchange income and 80% of government revenues.

The green agenda of wealthy nations ignores those of us who point out that natural gas has the potential to bring life-changing prosperity to the continent in the form of jobs, business opportunities, capacity building and monetization. It ignores the sustainable, logical path we’re proposing, which is  using our resources, natural gas in particular, to help us meet current needs and to generate revenue that can help pay for our transition to renewables.

The wealthy nations’ green agenda does not consider how much Africa needs natural gas to bring electricity to the growing number of Africans living without it. They do not understand that we, as Africans, are focused on growing Africa’s energy mix to include fossil fuels and renewables, instead of insisting on an all or nothing approach to our energy transition.

Around 600 million Africans lacked access to electricity before the pandemic; and it appears that this figure is growing. According to the International Energy Agency, during 2020 some gains in access were reversed, with as many as 30 million people who previously had access to electricity no longer able to afford it. 

Considering that universal access to affordable, reliable electricity is one of the UN’s sustainable development goals – meaning it’s a basic human right – the huge and growing number of Africans without electricity is morally wrong, and it cannot be ignored.

Unfortunately, climate panic and fear mongering are alive and well, and for some reason, Africa is public enemy number one. A continent that emits a negligible amount of carbon dioxide, at most, 3% of the world’s total, is being disproportionately pegged as a threat to the planet by developed nations.

In particular, the West is vilifying Africa’s energy industry because it is based on fossil fuels, even though the proportion of renewables is growing.  There’s no question that much of this anti-African oil and gas sentiment is based in fear of climate change, which is Interwoven with the sheer terror that a fossil fuel boom in Africa could be devastating to the world at large.

Africa is vulnerable to climate change.

There’s no denying that climate change is affecting Africa. One has only to look at the extended drought in the south to see how devastating things can be when customary weather patterns are disrupted.

The thing is, Africa is being affected by a crisis NOT OF ITS OWN MAKING. If contributing just 3% of global emissions could cause issues like what we’re seeing in Somalia, for example, the world’s nations that produce far more greenhouse gases should be dried up, under water, blown away, or burned to a crisp by now.

Consider this: Prominent American climate activist Bill McKibben said that the world can’t fight climate change if Total Energies and Uganda goes through with building the East African Crude Oil Pipeline. Yes, according to McKibben, that one action will derail the entire carbon reduction scheme and offset anything any of the world’s other countries are doing to reach net zero. Seems ridiculous, doesn’t it?

What’s even more perplexing—or perhaps outlandish—is that McKibben has taken aim at a pipeline that will transport just 210,000 barrels of oil per day. That’s roughly equivalent to 1.8% of the total output of the U.S., but he claims it must be stopped, or everything falls apart. What’s the point of any climate effort anywhere if it can be undone by a relatively small pipeline that might actually be a lifeline in one of the world’s most impoverished nations?

But let’s define what truly constitutes a boom in Africa. 

Energy use on the continent is still very low. So low, in fact, that researchers writing in Foreign Policy magazine estimate that if the one billion people living in sub-Saharan Africa tripled electricity using natural gas, the additional emissions would equal just 0.62% of global carbon dioxide.

Energy use on the continent is so low that the average African consumes less electricity per year than an entire American family’s refrigerator.

At the same time, authors Todd Moss and Vijaya Ramachandran, from the Energy for Growth Hub, say the world is greatly overestimating how much natural gas Africa will generate between now and 2030. They cite a study in Nature Energy that claims the forecast for new gas generation in West Africa is five times the region’s new gas potential. Obviously, there’s some mathematical mismatch in the study. 

We have to ask ourselves: Will fossil fuel development in Africa signal an end to all of the world’s good intentions and net zero ambitions?  Or is this an example of ‘green colonialism?’

I find it interesting that a Financial Times’ public poll, on the day it announced I was going to have an Oxford style debate on this issue, suggested that people are not at all convinced that African countries should abandon oil and gas – 70% of the 619 respondents took my position that Africa should make full use of its fossil fuels.

Energy use on the continent is so low that the average African consumes less electricity per year than an entire American family’s refrigerator

How can we build a successful African energy movement?

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 am happy to see African energy stakeholders speaking with  a unified voice about African energy industry goals thanks to African Energy Week. Africa Oil Week did everything to divide our voices and we stood firm and brought the Africa upstream, midstream and downstream together and we signed deals at African Energy Week.

This will be particularly important as we go into COP27 in Egypt. 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.

Western Support to Africa

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. We see it with lawsuits to stop financing of Mozambique LNG or lawsuits to prevent Shell from even carrying out a seismic survey. Actions like these, even as Western leaders have pushed OPEC to produce oil, are not fair, and they’re not helpful. Even as western countries are pushing to increase their own production and escalating coal use.

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.

Africa is already suffering.

The 600 million-plus Africans without electricity are suffering. The 890 million Africans without a means of clean cooking are suffering.

I would argue that if we want to protect Africans from harm and misery, we must embrace our natural gas resources.

Natural gas has a lower environmental impact than other fossil fuels. According to the U.S. Energy Information Administration (EIA), switching thermal power plants from coal to gas was the main reason why the U.S. power-generating sector saw carbon dioxide emissions sink by 32% between 2005 and 2019.

What’s more, natural gas is indispensable in multiple ways. It is part of modern development, used for clean cooking, process heat, transportation, and as a feedstock for fertilizers.

We can’t overlook how important fertilizers are, considering the millions and millions of people who are food insecure across the globe or “teetering on the edge of famine,” as the UN World Food Program puts it.

The rise in food insecurity is often attributed to conflict, and the battles between Russia and Ukraine prove that point. Since the conflict began between the two large producers of wheat and grain, global food prices have skyrocketed. Considering how Russia has shut down natural gas exports, it’s no surprise that fuel and fertilizer prices have also shot up.

In fact, the increase in fertilizer costs is having as much of an effect on food prices as the conflict in Ukraine. When farmers can’t afford fertilizer (which is more often the case in poor countries than rich ones), crop yield diminishes, food prices skyrocket, and more people are left hungry. Right now, the U.N. Global Crisis Response Group says, more than 60 countries are now struggling to afford food imports. It should come as no surprise that many of them are in Africa.

Using African natural gas to fill the fertilizer feedstock gap will go a long way in mitigating those problems and putting food on the table worldwide. If Africa is allowed to develop its resources, there will be plenty of natural gas to go around.

Natural gas helps the world meet its climate targets faster and can help solve the world’s hunger crisis.

And they’re not alone.

Think about Europe, which is scrambling to line up enough oil, gas, and coal for the winter— and are looking to Africa for supplies – or consider the results of a 2022 Pew Research Survey of 10,237 U.S. adults about America’s energy transition. Only 31% believed that the U.S. should phase out oil, gas, and coal completely, while 67% called for cultivating a mix of fossil fuels and renewable energy sources.

So my question is, why should we in Africa give up our fossil fuels – fuels that represent solutions to some of our most pressing needs – when so many others question the wisdom of doing the same?

We shouldn’t. And we shouldn’t be forced to.

Distributed by APO Group on behalf of African Energy Chamber.

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Premier Invest Highlights Milestone Oil & Gas Financing Partnership with Shell at Invest in African Energy Reception in London

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African Energy Reception

As an African-owned investment banking and advisory firm, Premier Invest is aiming to bridge Africa’s oil and gas financing gap through strategic partnerships in the sector

LONDON, The United Kingdom, July 12, 2024/APO Group/ — 

Rene Awambeng, Managing Partner at investment banking and advisory firm Premier Invest, outlined Africa’s current oil and gas financing gap and strategies for unlocking global capital at the Invest in African Energy reception -organized by the African Energy Chamber (www.EnergyChamber.org) – in London on Thursday. Last month, Premier Invest signed a milestone agreement with Shell to enable access to financing for oil and gas projects across the continent.

The agreement to co-finance and originate oil and gas agreements in Africa aims to drive growth in the oil and gas sector across the continent

Under the strategic partnership, the two companies will collaborate to identify and co-finance oil and gas transactions in Africa that have the potential to generate significant returns, while creating value for local communities and economies.

“The agreement to co-finance and originate oil and gas agreements in Africa aims to drive growth in the oil and gas sector across the continent. We will work together to identify and evaluate potential opportunities in the oil and gas market and leverage our respective expertise to fund projects that have the potential for significant returns. This is a significant step forward in our commitment to support the growth of the sector,” said Awambeng.

The partnership serves to address the persistent lack of FDI on the continent – in which Africa receives only five percent of global investment – placing African countries at a disadvantage when it comes to establishing requisite infrastructure to produce refined petroleum products and increase power generation and distribution capacities. According to Awambeng, 50% of oil product consumption in Africa is met through imports, despite Africa being a net crude oil producer.

“To address these finance challenges, we have put together an African-owned and managed investment banking firm to offer a range of financial advisory services supporting clients across industry to invest in small, medium and large-sized projects… The continent lacks funds to finance its oil and gas projects, as well as needs technology to manage its oil and gas industry,” said Awambeng.

Distributed by APO Group on behalf of African Energy Chamber

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Top 5 Reasons to Attend Angola Oil & Gas 2024

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AOG

AOG 2024 serves as Angola’s premier energy event, providing unparalleled opportunities for international investors and stakeholders to gain access to the oil and gas market

LUANDA, Angola, July 12, 2024/APO Group/ — 

Angola’s oil and gas industry is growing rapidly, with a $60 billion investment pipeline planned for the next five years, a 2025 limited tender on the cards and industry reforms offering improved fiscal and contractual terms. The county’s premier industry event Angola Oil & Gas (AOG) connects international stakeholders to the market, serving as a bridge between foreign players and Angolan projects.

AOG is the largest oil and gas event in Angola. Taking place with the full support of the Ministry of Mineral Resources, Oil and Gas; national oil company Sonangol; the National Oil, Gas and Biofuels Agency; the African Energy Chamber; and the Petroleum Derivatives Regulatory Institute, the event is a platform to sign deals and advance Angola’s oil and gas industry. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.

Strong International Focus

In recent months, Angola has been strengthening cooperation with various global partners to support oil and gas development. Recent deals include with Italy, the UAE, South Korea, Ivory Coast and many more. These deals and future collaborations are expected to drive project development and innovation in Angola while supporting global demand through Angolan exports.

The 2024 edition of the conference builds on this to bring new players to the market while promoting projects, partnerships and potential investment opportunities. In addition to local and regional delegates, AOG 2024 will feature the participation of delegations from China, the UK, the UAE, Germany, Portugal, Brazil and many more. International companies are invited to participate in the event and seize new opportunities in Angolan oil and gas.

Access Upcoming Projects

Last month, Angola’s national concessionaire for the oil and gas industry the National Oil, Gas & Biofuels Agency (ANPG) announced a series of measures that aim to support crude oil production in Angola. This comes as the country recently awarded oil and gas companies Etu Energias, Effimax Energy and Grupo Simples Oil a new concession for Block CON 8, stipulating an exploration phase lasting five years from the signing of the contract.

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Angola is enhancing cooperation with global players, including IOCs such as Chevron, TotalEnergies, Azule Energy and ExxonMobil, to bring new projects online and maintain hydrocarbon production above 1.1 million barrels per day through 2027. A key component of AOG 2024 is unparalleled access to upcoming projects. Attendees will be given exclusive access to the latest requests for proposals, tenders, market trends, policies and regulations shaping the sector.

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Drive Real Investment

Each year, AOG cements itself as the platform of choice for partnerships, collaborations and multi-billion-dollar deal signings. In 2023, seven industry-advancing deals were signed, laying the foundation for collaboration, market growth and future prosperity. In 2024, this trend is expected to continue as foreign companies travel to Luanda to engage with Angolan companies. The conference’s multi-track program covers the entire oil and gas value chain, providing insight into investment opportunities and strategic projects.

Participate in Exclusive Networking

The AOG 2024 conference serves as an opportunity for local, regional and international delegates to collaborate and discover new avenues for investment. Delegates can connect with top energy investors and executives – from operators, IOCs, NOCs and independents – as well as government officials, industry innovators and financiers to expand their professional network.

The event offers extensive opportunities to network and build meaningful business relationships, including exclusive networking breaks and lunches, the closing Networking Cocktail as well as the Gala Dinner and Awards which recognizes the companies pioneering the oil and gas industry in Angola.

Help Fuel Development

With the recent commencement of construction at Angola’s first integrated economic zone as well as its first aluminum industrial park, the country is on track to accelerate economic diversification and sustainable development. Apart from oil and gas, AOG 2024 is poised to set the benchmark for development in Angola while facilitating a strategic investment hub for various sectors in the country’s public and private sectors.

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Angola continues to provide great opportunities for international investors to develop energy projects that serve local and international energy demand. AOG 2024 targets key initiatives in the country including a heightened exploration drive, gas monetization, local content development and renewable energy and will clearly show Angola’s ambition and future plans for development.

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

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Liberia Showcases Upstream Investment Opportunities at Invest in African Energy Reception in London

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African Energy Reception

Ahead of a new licensing round, Liberia is offering incentives for early investors, coupled with extensive 2D and 3D seismic data in its Liberia and Harper basins and a working petroleum system previously established by global majors

CAPE TOWN, South Africa, July 12, 2024/APO Group/ — 

Kicking off the Invest in African Energy (IAE) reception in London on Thursday, Marilyn Logan, Director General of the Liberia Petroleum Regulatory Authority (LPRA), showcased Liberia’s available oil and gas blocks and upstream investment opportunities. The reception served to connect major technical and financial partners to Africa’s energy sector ahead of the African Energy Week: Invest in African Energy conference in Cape Town this November, organized by the African Energy Chamber (AEC) (www.EnergyChamber.org).  

Global investors have been clamoring to Africa’s frontier markets in recent months, with countries like Namibia, Mauritania and Mozambique attracting sizable oil and gas CapEx spending, coupled with a renewed exploration focus in West Africa. Liberia represents a proven petroleum system supported by extensive reprocessed 2D and 3D multi-client seismic data in its Liberia and Harper basins.

“Liberia stands out as a new and exciting destination for oil and gas exploration. Positioned strategically on the West Africa Transform Margin, Liberia shares geological similarities with the Jubilee field in Ghana and [discoveries] in Guyana. We are on the verge of a new decade realizing untapped potential in West Africa, and Liberia is ready to play a pivotal role.” 

Our round is expected to attract serious investors, with Liberia offering incentives for early investment and ensuring the yield of substantial returns

“Many years ago, many thought Namibia was an oil man’s graveyard…Today, there are even more prospects in countries like Liberia. The belief coming out of [London] drove exploration in places like Namibia – Liberia could be a replica of that,” added NJ Ayuk, Executive Chairman of the AEC.

Logan highlighted the role of majors ExxonMobil and Chevron in confirming the presence of a working hydrocarbon system, which has been supported by recent seismic surveys and data reprocessing that show promise of significant reserves. In 2021, the country opened a direct negotiation process for 33 offshore blocks in the Harper and Liberia basins, with plans to launch a new round later this year. 

“Liberia’s upcoming 2024 licensing round provides the opportunity to secure prime exploration blocks. Our round is expected to attract serious investors, with Liberia offering incentives for early investment and ensuring the yield of substantial returns,” said Logan.

In addition to its prospective hydrocarbon resources, Liberia offers a competitive fiscal regime, stable governance and a conducive operating environment. According to Logan, the country has established a fee structure that incentivizes and rewards oil and gas investors with appropriate returns, while still ensuring Liberia retains social and economic benefits from oil and gas extraction activities.  

“On the policy side, the Liberian government has implemented a robust oil and gas program to ensure a conducive environment for oil and gas investments, including a streamlined regulatory process and stable and democratic political environment,” she said. 

“We have to keep an enabling environment – when we enable you to put in money and finance projects, then we both win. The idea of resource nationalism has to go, and also the demonization of the energy industry,” stated Ayuk.

Distributed by APO Group on behalf of African Energy Chamber.

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