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Operator-Friendly Policies Have Positioned Senegal and Mauritania Natural Gas Industries for Success (By NJ Ayuk)

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Natural Gas

Senegal and Mauritania are rising fast in the world of natural gas — and this trajectory owes much to their cooperation with each other as well as to the enabling environment they have created for IOCs

JOHANNESBURG, South Africa, June 28, 2022/APO Group/ — 

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

After Mauritania and Senegal signed the inter-governmental cooperation agreement in 2018 that allowed partners Kosmos Energy, BP, and their partners to proceed with the deepwater Tortue natural field project in the Ahmeyim basin, Kosmos Chairman and CEO Andrew Inglis praised both countries’ leaders. It was their ability to cut through red tape, pursue mutually beneficial solutions, and think in the long term, he said, that would enable Mauritania and Senegal to reap the vast rewards of hydrocarbon province, which is expected to deliver approximately 2.5 mmtpa of natural gas in its initial phase.

“Kosmos congratulates Mauritania, Senegal, and their respective ministries and national oil companies for working together so effectively to reach an agreement that enables their shared gas resources to be developed quickly and efficiently for the benefit of both countries,” Inglis said.

Since then, the project has been moving forward, and Phase 1, a floating liquified natural gas vessel (FLNG), is expected to start operations this year. Other natural gas projects are on the horizon for Senegal and Mauritania as well.  BP and Kosmos plan to launch another large project in the ultra-deepwater Yakaar-Teranga gas field offshore Senegal, which holds 2,739 bcf of natural gas reserves. The Senegalese Ministry of Petroleum and Energies said a final investment decision will be made by the end of the year, and first production will take place in 2024. And in Mauritania, BP has begun studies on its BirAllah offshore gas discovery.

Despite a global pandemic, increasing Western hostility toward hydrocarbons, and a USD33 billion decline in capital expenditure in African projects, Senegal and Mauritania are rising fast in the world of natural gas — and this trajectory owes much to their cooperation with each other as well as to the enabling environment they have created for international oil companies (IOCs). In fact, in 2018, Senegal joined the list of the top five most reforming countries in sub-Saharan Africa, meaning they’ve made considerable strides to improve the business climate and increase their attractiveness to investors. Not to be outdone, Mauritania comes in at number 10 on the list of top reformers worldwide. 

Savvy Fiscal Regimes

Among the reforms, Senegal and Mauritania have tackled major threats to foreign investment, including high taxes and cost recovery limits.

Both nations have a unique opportunity to shape these policies in a way that continues to embrace IOCs, keep industries competitive, and continue down a path of energy independence

Unlike Nigeria, whose unclear fiscal policies often constrain its huge reserves’ profitability, the two Sub-Saharan nations have created fairly reasonable policies for projects such as Tortue, Bir Allah, Orca, Cayar, and Yakaar-Teranga. As the African Energy Chamber’s soon-to-be-released Petroleum Laws – Benchmarking Report for Senegal and Mauritania discusses in detail, Senegal offers the largest natural gas reserves for the most reasonable fiscal policies.

Even at first glance, Senegal and Mauritania have offered investor-friendly incentives for recent projects. Tax rates are low, there are no royalties, and the Profit Oil Government Share — that is, the amount of production, after deducting production allocated to costs and expenses, that will be divided between the participating parties and the host government under the production sharing contract — is capped at 42% for Tortue and 58% for Yakaar-Teranga. Equally important, their cost recovery limits make it clear that Senegal and Mauritania want warm relations with IOCs for the long haul, not just the initial stages of foreign investment. With a cost recovery limit of up to 75%, they remove many of the anxieties and uncertainties inherent in foreign investment. Contrast that with the cost recovery limit in Egypt’s giant offshore gas field in Egypt, which declines to 20% 11 years after start-up.

In short, Mauritania and Senegal have some of the most operator-friendly fiscal policies on the continent, and that is bound to attract additional investment. Only Mozambique, South Africa, and Ghana offer better terms currently, but this contrast in no way undermines Senegal’s and Mauritania’s path to success. With other advantages such as more peaceful locations and larger, recently discovered reserves, they’re only beginning to realize their full potential.

Reserves Meet Stability

Political stability is often an investment watchword — and it’s an advantage for both Senegal and Mauritania. While IOCs have often successfully persevered in unstable nations, investments inevitably suffer from political fallout.

In a study of contrasts, Mozambique discovered similar natural gas reserves (100 trillion cubic feet to Senegal’s 120 trillion) in 2010. But despite comparable foreign attention and investment – not to mention a four-year head start – Mozambique’s gas industry lags somewhat behind Senegal’s, due in no small part to ongoing regional violence. While France’s TotalEnergies announced its plans to return to Mozambique in 2022, it doesn’t anticipate production to begin until a full year after Tortue’s own target date – and even that ambition rests on the hope that Mozambique first enhances its security.

Such violence can even hurt nations with huge reserves and longstanding IOC relationships. Shell pulled out of Nigeria partly because of oil theft and pipeline sabotage, even though the nation enjoys twice the oil reserves of Senegal. After decades of tolerating such violent environments for the sake of rich resources, IOCs will inevitably look to Senegal’s potent combination of huge reserves and peaceful environment. Free of that added burden of local instability, foreign investment can only grow to new heights in this emerging nation.

Going Forward

Despite Western talk of renewables, the world can’t deny a continued need for oil and gas — a need only highlighted by uncertainty in the wake of the Ukraine conflict. By offering such a unique combination of political stability, reasonable fiscal policies, and large reserves, Senegal and Mauritania have laid the framework for a bright future in this industry.

Better yet, both nations acknowledge that they still have room to improve and truly expand on their potential. The African Energy Chamber hopes they will take the opportunity to systematically update and clarify their other policies, such as local content laws. While Senegal recently revised their policies, the enforcement mechanisms remain somewhat vague. Mauritania, for its part, has not revisited theirs in almost a decade. Both nations have a unique opportunity to shape these policies in a way that continues to embrace IOCs, keep their industries competitive, and continue down a path of energy independence.

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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