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Long-Term Sales Contracts Could Be Key to Senegal’s, Mauritania’s Natural Gas Success (By NJ Ayuk)

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natural gas

The deal calls for Kosmos to provide 2.45 million tonnes per annum (mtpa) of LNG for an initial term of up to 20 years

JOHANNESBURG, South Africa, July 25, 2022/APO Group/ — 

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

In 2020, rich natural gas resources offshore Mauritania and Senegal were the subject of the biggest long-term liquefied natural gas (LNG) contract signed that year.

The agreement between American oil firm Kosmos Energy, its partners, and BP Gas Marketing Limited, was for LNG from Phase 1 of the Greater Tortue Ahmeyim project, offshore Mauritania and Senegal. The deal calls for Kosmos to provide 2.45 million tonnes per annum (mtpa) of LNG for an initial term of up to 20 years. 

The deal was a milestone for the companies and for Senegal and Mauritania.

But frankly, with so many natural gas projects starting up in the two countries, we should be hearing about even more long-term gas sales contracts.

Currently, Kosmos Energy and its partners (BP, Senegal’s state-owned oil company, Petrosen; and Mauritania’s Societe Mauritanienne des Hydrocarbures) have only succeeded in securing sales contracts for Phase 1 volumes of the Greater Tortue Ahmeyim Project. This is despite the fact the project is estimated to have 15 trillion cubic feet of gas production potential, enough for 30 years of production or more.

In another promising BP and Kosmos Energy partnership, the ultra-deepwater Yakaar-Teranga gas field offshore Senegal — holding an estimated 2,739 billion cubic feet of natural gas reserves — only a fraction of Phase 1 volumes have been contracted.

And that’s more than we can say for BP’s BirAllah project in Mauritania, projected to generate 1,642 barrels per day of crude oil and condensate, 277 million cubic feet (Mccfd) per day of natural gas, and 1,304 Mmcfd of liquid natural gas by 2030. As of yet, production from BirAllah remains uncontracted.

I can’t understate the importance of pursuing long-term sales contracts to help set the stage for gas project success. When companies secure decades of LNG purchases, for example, they’re much more likely to line up the investor support they’ll need to produce the natural gas that they’ll eventually be liquifying. Why? Long-term contracts minimize investors’ risks; they know that the revenue that comes in from LNG sales will help cover their investment costs.

Long-term contracts minimize investors’ risks; they know that the revenue that comes in from LNG sales will help cover their investment costs

Natural gas project start-ups are likely to send production levels in Senegal and Mauritania soaring, from practically nothing to 265,000 barrels of oil equivalent per day (boepd) by the end of the 2020s. That momentum is likely to build with production nearly doubling to more than 500,000 boepd by 2035, tripling to 750,000 boepd by 2040, and continuing to rise well into the 2040s.

This represents great promise, both for the oil and gas companies in the region and also for the people of Senegal and Mauritania. The gas these projects generate can create tremendous job and entrepreneurial opportunities. It can meet domestic needs for gas-to-power programs designed to address energy poverty. It can be monetized, and in turn, help fund much-needed infrastructure, from pipelines to ports, with the potential to foster economic growth and diversification. And, it can serve as feedstock for petrochemical and fertilizer plants, which will contribute to industrialization and even more economic growth.

These are all reasons why the African Energy Chamber, in our forthcoming Petroleum Laws – Benchmarking Report for Senegal and Mauritania, urges companies in the region to make securing long-term gas sales contracts a priority. By fostering stable gas project revenues and investor security, long-term agreements will help Senegal and Mauritania fully capitalize on their natural gas resources.

The Time is Right

While Kosmos Energy’s long-term sales agreement with BP Gas Marketing Limited could be called a rarity in 2020 when COVID-19 practically killed demand for oil and gas and forced companies around the globe to put projects on hold, there’s every reason to be optimistic about securing long-term gas sales contracts in 2022. This is particularly true in European markets, which recently made a dramatic shift away from spot transactions (immediate or near-term sales with no guarantee of additional transactions going forward) for LNG.

That transition began within the last year, when Europeans began feeling the impacts of diminishing natural gas supplies, Irina Slav wrote for Oilprice.com.

“A decline in investments in new gas production, long lead times on liquefaction facilities, and growing pressure on emission reduction collided to result in tight gas supply as demand continued to grow globally,” Slav explained. “Europe, the poster child of the energy transition, was horrified to learn it did not have enough wind and solar generation capacity to replace gas consumption — especially amid low wind speeds and during the less sunny seasons.”

Those circumstances sent demand for long-term gas supplies soaring. And then Russia invaded Ukraine.

“The Russian invasion of Ukraine has had a dramatic impact on long-term LNG contracts,” Wood Mackenzie principal analyst Daniel Toleman said in June. “Many traditional LNG buyers will neither procure spot gas or LNG nor renew or sign additional LNG contracts with Russian sellers. Spot prices have also been high and volatile, pushing many buyers towards long-term contracts. Additionally, some buyers are returning to long-term contracting on behalf of governments to protect national energy security.”

All of these factors are converging to create a window of opportunity for securing long-term gas and LNG contracts, and companies in Senegal and Mauritania should be capitalizing upon it.

Government leaders there are doing their part to help: Both Senegal and Mauritania have worked to offer international oil and gas companies favorable economic terms to operate within their borders, meaning companies can pursue projects with lower capital expenditures.

So, my message to oil and gas companies operating in Senegal and Mauritania is, act now to lock in long-term sales agreements for gas and LNG. Europeans could back their words by signing long-term agreements. Our industry need to act now to put ourselves in the optimum position for attracting investments. Do what it takes to achieve a win-win that could be beneficial for you while setting the stage for local communities, businesses, and individuals to realize a more prosperous future.

Distributed by APO Group on behalf of African Energy Chamber.

Business

SLB commissions new fluids systems plant in Pemba to support Mozambique’s offshore energy development

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Mozambique

New facility expands in-country drilling and completion fluids capability, advancing the next phase of SLB’s growth in Mozambique

PEMBA, Mozambique, October 9, 2026/APO Group/ –SLB (NYSE: SLB) (www.SLB.com) announced the opening of a new fluids systems plant in Pemba, Mozambique. The new facility strengthens in-country capacity to prepare, store and deliver drilling and completion fluids for offshore operations, reinforcing the infrastructure needed as Mozambique’s offshore activity grows and its role as a strategic energy hub for East Africa continues to expand.

The commissioning of the plant, also known as a liquid mud plant, coincides with SLB marking 70 years of operations in Mozambique. It reflects the company’s long-term commitment to investing in people, infrastructure and capability that support the country’s long-term offshore energy development plans.

 




  

With an initial storage capacity of 21,000 barrels, the liquid mud plant provides a scalable platform for future growth, supporting multiple customers and rising offshore activity while improving logistics and enhancing operational flexibility.

As SLB marks 70 years in Mozambique, this investment reflects our confidence in the country’s future and our commitment to supporting its energy ambitions

“As SLB marks 70 years in Mozambique, this investment reflects our confidence in the country’s future and our commitment to supporting its energy ambitions,” said Miguel Baptista, Central, East and Southern Africa, Managing Director, SLB. The new liquid mud plant strengthens local energy infrastructure, expands opportunities for local content development, and enhances our ability to support customers as they deliver some of Africa’s most significant offshore energy resources.”

The liquid mud plant project was delivered with strong local participation and that momentum is expected to continue into operations. During project delivery, more than 100 jobs were created in Pemba with nationals representing 80% of the workforce, reflecting a focus on building local capability.

The project was delivered with a strong focus on safety, operational integrity, and quality, achieving more than 67,000 hours worked without a recordable safety incident.

This key infrastructure strengthens SLB’s ability to support consistent service quality and enhance supply chain readiness for increasing offshore activity across Mozambique, supporting customers execute safely and efficiently while developing local skills and expertise.

Key Points:

  • SLB has commissioned a new fluids system plant in Pemba, expanding in-country drilling and completion fluids capability for offshore operations.
  • With an initial storage capacity of 21,000 barrels, the facility provides a scalable platform to support growing offshore activity in Mozambique.
  • The investment marks the next phase of SLB’s growth in Mozambique, strengthening local capability and supporting long-term offshore energy development.

Distributed by APO Group on behalf of SLB.

 

 




 

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South African Energy Storage Association (SAESA) welcomes 4,600 MW battery storage prioritisation and calls for integrated energy planning

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Battery energy storage systems (BESS) are becoming critical system infrastructure, supporting flexibility, reducing avoidable curtailment, shifting energy into periods of demand and strengthening security of supply

JOHANNESBURG, South Africa, October 9, 2026/APO Group/ –The South African Energy Storage Association (SAESA) (www.SAESA.org.za) welcomes the prioritisation of 4,600 MW of battery energy storage under the first Integrated Resource Plan (IRP) 2025 Section 34 determination.

 




  

The timing is significant. Recent Integrated Energy Plan (IEP) modelling and assumptions discussions highlighted a fundamental shift that South Africa’s energy planning now needs to capture: we cannot plan the future power system by counting megawatts of generation alone.

We must plan for when energy is available, where it is available, how it moves through a constrained grid and how it is stored and dispatched when the system needs it most.

The announcement reinforces that shift. Battery energy storage systems (BESS) are becoming critical system infrastructure, supporting flexibility, reducing avoidable curtailment, shifting energy into periods of demand and strengthening security of supply.

For SAESA, the message for the IEP is clear: storage, flexibility and system services must be modelled as integral components of South Africa’s future electricity architecture, with their contribution considered from the outset of generation planning.

“The IEP must plan the power system we are becoming, not simply model the power system we have inherited,” says SAESA.

The IEP must plan the power system we are becoming, not simply model the power system we have inherited

Partnership with C&I Energy + Storage Summit

SAESA is an association partner of the C&I Energy + Storage Summit, created by VUKA Group, taking place on 28–29 October 2026 at The Maslow Hotel, Sandton, Johannesburg.

The summit brings together commercial and industrial energy users, project developers, financiers, regulators and solution providers to explore practical approaches to energy security, procurement and storage deployment.

For businesses assessing how storage can support their operations, the event offers an opportunity to meet SAESA and engage with the wider energy community on the decisions shaping South Africa’s evolving electricity system.

Commercial and industrial energy decision-makers are invited to apply to attend as hosted buyers. Qualifying buyers receive complimentary summit access and curated opportunities to engage with industry partners.

 

Meet SAESA at C&I Energy + Storage Summit: Join the Hosted Buyer Programme

The Hosted Buyer Programme connects commercial and industrial energy decision-makers with solution providers shaping South Africa’s evolving private energy market.

Qualified energy buyers receive complimentary access to the summit and curated engagement with industry partners exploring energy procurement, storage deployment and project development.

Apply for the Hosted Buyer Programme (https://apo-opa.co/4ehLijJ)

Distributed by APO Group on behalf of VUKA Group.

 




 

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Afreximbank welcomes launch of Africa Credit Rating Agency as an important step in strengthening Africa’s financial architecture

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Expanding credible rating coverage can improve the information available to investors and support the development of deeper domestic and regional capital markets

PORT LOUIS, Mauritius, October 8, 2026/APO Group/ –African Export-Import Bank (Afreximbank) (www.Afreximbank.com) welcomes today’s launch of the Africa Credit Rating Agency (AfCRA), an important milestone in strengthening Africa’s financial architecture and expanding the continent’s capacity to generate credible, independent analysis of African credit risk.

 




 
 

Credit ratings play an important role in determining access to capital, influencing investor perceptions and shaping the cost at which governments, institutions and businesses can finance development. It is therefore essential that assessments of African credit risk are independent, rigorous and evidence-based, while reflecting a complete understanding of the structures, institutions and economic realities being assessed.

The establishment of AfCRA adds an important African-led source of credit opinion to the market. Its value will not be measured by whether it produces more favourable ratings, but by the credibility of its analysis, the quality of its data and transparency of its methodology, and its ability to deepen understanding of African sovereigns, sub-sovereigns and corporate credit.

This is particularly important given that many African issuers remain unrated, while local-currency and sub-sovereign markets continue to have limited rating coverage. Expanding credible rating coverage can improve the information available to investors and support the development of deeper domestic and regional capital markets.

AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans

Alongside fellow members of the Alliance of African Multilateral Financial Institutions (AAMFI), Afreximbank has consistently maintained that African Multilateral Financial Institutions should be assessed on the basis of their fundamentals, performance, legal frameworks, mandates and operating models. Ensuring that these institutional characteristics are properly understood is essential to achieving informed, balanced and credible assessments of African risk.

Commenting on the uniqueness of the African market, and need for AfCRA’s rating methodology to reflect this, Mr Denys Denya, Senior Executive Vice President, Afreximbank, said: “The rating methodology AfCRA develops must recognise the uniqueness of our environment and its institutional structures. The Agency must set its own standards and not follow those set elsewhere — it must build a unique identity that conforms to an ‘African best practice.”

Highlighting the need for the autonomy of the Africa Credit Rating agency as it takes off, Mr Denya added: “Most importantly, AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans. We must all use it, and in return expect a complete assessment of where we (Africa) stand: the strengths the market has ignored, and the weaknesses we still need to fix.”

AfCRA should therefore be seen as complementary to existing international and regional rating agencies, broadening the range of credible analysis available to investors and issuers while strengthening competition, transparency and analytical capacity within Africa’s credit markets.

As Africa seeks to mobilise the scale of capital required for industrialisation, trade, infrastructure and economic transformation, credible African institutions that improve information, strengthen market confidence and deepen the continent’s financial markets will become increasingly important.

Afreximbank congratulates the African Union, the African Peer Review Mechanism (APRM) and all those involved in bringing AfCRA from concept to launch, and looks forward to the contribution the Agency will make to deeper, more transparent and more efficient African capital markets.

Distributed by APO Group on behalf of Afreximbank.

 




 

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