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Mitigating Perceived Risk in African Energy Investment

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African Energy

Panelists at the African Energy Chamber’s Invest in African Energy event in Dubai on Thursday discussed how to improve Africa’s image to reduce investor perception of risk and attract overseas investment

JOHANNESBURG, South Africa, March 30, 2023/APO Group/ — 

A high-level panel comprising African public and private sector energy leaders discussed strategies for mitigating project development risk during the African Energy Chamber’s (http://www.EnergyChamber.org) Invest in African Energy reception in Dubai on Thursday, which aimed to connect international financiers with African energy projects. Africa is widely recognized as an attractive investment destination due to abundant natural resources, an above-average drilling success rate, a rapidly expanding domestic market, growing purchasing power and associated needs for power, technology, innovation and industrialization. However, the continent continues to experience a high degree of perceived risk.

Under the theme, “Africa’s Advantage: Countering the Myth of Africa-Specific Risk,” the panel comprised Egbert Faibille Jr., CEO of Ghana’s Petroleum Commission and Elison Karuhanga, Partner of Uganda’s Kampala Associated Advocates, and was moderated by Amena Bakr, Chief OPEC Correspondent and Dubai Deputy Bureau Chief for Energy Intelligence.

With COVID-19, crude oil price volatility and the energy transition triggering reduced investor appetite, heightened transparency has become critical to sustaining foreign direct investment flows and mitigating perceived risk. Recent efforts by several African countries to join the Extractive Industries Transparency Initiative (EITI) – a global standard for the responsible governance of oil, gas and mineral resources – have demonstrated a continent-wide desire to improve transparency.

“Investors need to understand that our projects are safe and responsible,” said Elison Karuhanga, speaking on the ongoing development of the East African Crude Oil Pipeline Project. “There is a lot of misinformation about the pipeline. It is part of a larger upstream project that will be producing around 250,000 barrels per day. The Uganda oil and gas project is expected to produce 13 kilograms of carbon dioxide for every barrel of oil, which is quite competitive globally. The African average is around 30 kilograms per barrel, so it will be one of the lowest carbon-emitting projects. It will be extremely transformational.”

We have several blocks open for direct negotiation and three available for farm-in opportunities

“Africa’s story has not been told. Instead, it has always been told by people who are not from Africa,” echoed Egbert Faibille Jr. “Due process is followed.”

Another means of countering perceived risk is the establishment of public-private partnerships, whereby private sector companies and financiers can better acquire local knowledge and foster relationships on the ground to mitigate unknown, above-ground variables. Geopolitical stability, regulatory and fiscal certainty and government transparency play a weighted role in a country’s ability to attract private capital, particularly in the oil and gas industry, which often requires some degree of partnership or production sharing with the host government.

“We have several blocks open for direct negotiation and three available for farm-in opportunities,” noted Egbert Faibille Jr., speaking on opportunities for upstream investors to enter Ghana. “We have some fields that are in pre-development, so if we are able to get contractors, we should see a surge in production by 2030.”

Because of their scale, midstream, downstream and integrated projects often require a combination of financing, ranging from international and local commercial banks to export credit agencies to development finance institutions. Strengthening existing commercial relationships with international lending institutions would significantly enhance a project’s ability to raise sufficient funds with more favorable terms and conditions. Increasing the capacity of local financial sectors would also help offset the impact of perceived project development risks by lending local regulatory expertise, along with local currency financing solutions for offtake agreements.

Distributed by APO Group on behalf of African Energy Chamber.

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Ministers among hundreds of energy-sector leaders to attend AOW event

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October 4, 2024

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Sinclair

The event kicks off with an invitation-only ministerial symposium focused on the theme of “Fostering innovation, attracting investment, and promoting sustainable growth in the oil, gas, and energy sectors”

CAPE TOWN, South Africa, October 4, 2024/APO Group/ — 

AOW: Investing in African Energy (https://AOWEnergy.com) – Africa’s leading oil, gas and energy event – has confirmed attendance for more than 80 ministers and senior officials, representing African governments, energy departments and regulators at next month’s event.

These influential stakeholders will be among the more than 1 600 senior delegates and industry leaders who will be attending the event to develop policy, share discoveries, secure investment, and shape Africa’s energy future.

The event kicks off with an invitation-only ministerial symposium focused on the theme of “Fostering innovation, attracting investment, and promoting sustainable growth in the oil, gas, and energy sectors.”

Given the recent major oil-and-gas discoveries across Africa, the energy transition and major geopolitical events, it is clear that the energy sector needs positive intervention

Among the officials and government ministers attending will be energy leaders from South Africa, Nigeria, Namibia, Cote d’Ivoire, Mozambique, DRC, Ghana, Kenya, Madagascar, Eswatini, Uganda, CAR, Guinea Conakry, Guinea Bissau, Ethiopia, The Gambia, Gabon, Malawi, Morocco, Zanzibar, Liberia, Senegal, Congo Brazzaville and Sierra Leone.

In addition, the event will feature high-level delegations from numerous national oil companies, as well as multilateral bodies including the African Union, (AU), African Energy Commission (AFREC), African Petroleum Producers’ Organization (APPO) and the Southern African Power Pool (SAPP).

AOW will see these energy leaders networking with C-suite executives and decision-makers from more than 760 top energy companies at daily networking events, to discuss insights, forge new relationships, and negotiate major energy deals.

“We are so excited to see the calibre of delegates at this year’s AOW event,” says Chief Executive Officer of Sankofa Events, Paul Sinclair. “Given the recent major oil-and-gas discoveries across Africa, the energy transition and major geopolitical events, it is clear that the energy sector needs positive intervention. The high-powered attendance proves AOW is a key platform to enable this intervention.”

Key themes to be discussed at this year’s AOW will be sustainable upstream development; expanding gas value chains; renewables and new energies; adoption of best-in-class technologies; and access to finance.

AOW: Investing in African Energy will culminate in a special anniversary party at Groot Constantia Vineyard to celebrate 30 years of the AOW event.

Distributed by APO Group on behalf of AOW: Investing in African Energy.

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Afreximbank approves US$20.8 million for Starlink Global’s cashew factory project in Lagos

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October 4, 2024

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PAPSS

The facility is expected to promote value addition which will guarantee increased earnings to the company while also fostering the creation of about 400 new jobs

CAIRO, Egypt, October 4, 2024/APO Group/ — 

African Export-Import Bank (Afreximbank) (www.Afreximbank.com) has approved a US$20.8 million financing facility for Nigeria-based Starlink Global & Ideal Limited to enable the company construct and operate a 30,000-metric tonne per annum cashew processing factory in Lagos.

We are delighted at this partnership which promises to deliver significant impact on employment in Nigeria

According to the facility agreement signed in on July 22, 2024, Afreximbank will provide the funds in two tranches with the first tranche of US$7.48M going toward capital expenditure for the construction of the factory and the second, totalling US$13.25M to be deployed as working capital for the operations of the factory.

The facility is expected to promote value addition which will guarantee increased earnings to the company while also fostering the creation of about 400 new jobs once the factory becomes operational. It is also expected to support about 40 small and medium-sized enterprises.

Commenting on the transaction, Mrs. Kanayo Awani, Executive Vice President, Intra Africa Trade and Export Development, Afreximbank, said that by supporting Starlink Global to establish a modern processing facility, Afreximbank is making it possible for Africa to add value to its agro-commodities, thereby facilitating exports and subsequent inflow of much-needed foreign exchange into the continent.

“We are delighted at this partnership which promises to deliver significant impact on employment in Nigeria. It will contribute to value creation and to the development of the local community while also improving the lots of smallholder farmers and small business suppliers that will work with Starlink across the value chain,” Mrs. Awani added.

Distributed by APO Group on behalf of Afreximbank.

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Sonangol to Lead Decarbonized Oil & Gas (O&G) Development, Says Angolan National Oil Company (NOC) Head

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October 4, 2024

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Sonangol

Participating in an on-stage interview at Angola Oil & Gas 2024, Sonangol CEO Sebastião Gaspar Martins emphasized that oil and gas remains a core focus for the national oil company

LUANDA, Angola, October 3, 2024/APO Group/ — 

Angola’s national oil company Sonangol reiterated its commitment to driving sustainable hydrocarbon development during the Angola Oil & Gas (AOG) conference this week. Speaking during an “In-Conversation with” session, Sonangol CEO Sebastião Gaspar Martins stated that the company will not abandon oil and gas, but rather advance decarbonized oil and gas development.

We are looking at opportunities in the gas sector and have identified the right partner to develop non-associated gas

By investing in upstream oil and gas production while prioritizing low-carbon projects, Sonangol aims to boost national crude output, while diversifying and decarbonizing the industry. The NOC is focusing efforts on non-associated gas development, as well as alternative energy sources such as solar.

“We are looking at opportunities in the gas sector and have identified the right partner to develop non-associated gas. Gas produced from Angola LNG will be used for the production of fertilizer and we are evaluating the utilization of gas in the south of the country, linking gas with steel industries. We also have a blue carbon project, linked to the reduction of carbon through the plantation of mangroves. We have one area in Luanda and have identified four additional areas for this,” stated Gaspar Martins.

Sonangol has undergone transformation in recent years: following the creation of the National Oil, Gas & Biofuels Agency (ANPG) in 2019, Sonangol transferred its role as national concessionaire and regulator. This transformation has aimed to make Sonangol more competitive and strengthen its capacity as an upstream operator. Concurrently, the government is partially privatizing the NOC, with privatization set to be complete in 2026. This process will enhance financial capacity, allowing Sonangol to drive new upstream projects forward.

“The transformation of Sonangol started several years ago, when we passed the regulatory, concessionaire role to the ANPG. At the time, we transferred almost 600 employees to the ANPG. After that, Sonangol underwent a restructuring program where we created five core business units from 36 different entities – starting with exploration and production. We want to go public, but we want to do it properly. So, we are currently going through all the processes to do this,” stated Gaspar Martins.

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

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