The African Energy Chamber (AEC), the voice of the energy sector in Africa, in partnership with public and private sector organizations, regulatory authorities, investors and energy market players, will host a forum ahead of Africa Energy Week (AEW) (AECWeek.com), Africa’s premier event for the oil and gas sector – taking place October 18-21, 2022 in Cape Town – to discuss the challenges of the continent’s upstream sector and offer solutions to boost the market.
While Africa is home to more than 600 million people without access to electricity and 900 million people without access to clean cooking, increased investment in the upstream sector will enable the exploitation of the 125.3 billion barrels of crude oil and the continent’s 620 trillion cubic feet of gas reserves, essential resources for alleviating energy poverty by 2030. The forum ahead of AEW 2022 will provide a platform for stakeholders from the industry to discuss how major African producers such as Nigeria, Niger, Egypt, Algeria and Angola can improve regulatory landscapes to scale up exploration and production. as infrastructure development.
In its outlook for the first quarter of 2022, the State of Energy in Africa, the African Energy Chamber (AEC) states that global energy transition policies coupled with the impacts of COVID-19 have resulted in lower energy expenditure. investment in the African oil and gas sector from the peak in 2014. from $60 billion to $22.5 billion in 2020. Lower spending and exploration led to the recording in 2020 of the second lowest volume of oil and gas discoveries on the continent over the past decade. A further 30% drop in discoveries has been seen in 2021, further worsening Africa’s energy outlook, which is already crippled by current declines in oil and gas production in old fields in producing countries such as the Nigeria, Algeria, Egypt, Angola and Sudan.
Moreover, as global majors seek to reduce spending in upstream activities in line with carbon reduction strategies, another challenge has also arisen for African producing countries seeking to increase the participation of international companies. to stimulate the exploration and exploitation of hydrocarbons.
“Pardon my French, we need big talk to translate into real action on energy projects and we need to push for a fierce sense of urgency on energy. We must train Africans and welcome expatriates to develop our gas projects. We will continue to push African governments to streamline licensing and approval processes, provide certainty, and allow oil and gas projects to be developed safely and quickly. We have strongly supported and are supporting African energy banks such as the African Export-Import Bank (Afreximbank) and the Africa Finance Corporation because we need long-term and sustainable sources of finance and a innovative approach to financing energy projects. We must conclude these agreements before or during the Africa Energy Week in Cape Town”. Said NJ Ayuk, Executive Chairman of the AEC.
In this regard, the AEW 2022 Upstream Forum will highlight measures such as regulatory and tax reforms put in place by African producers to increase exploration and investment in the upstream sector. Notably, the forum will highlight developments such as Nigeria implementing the Petroleum Industry Bill, Gabon introducing its Hydrocarbons Code, Senegal its 2019 Petroleum Code and Somalia its 2020 Petroleum Law. At the same time, the forum ahead of AEW 2022 will also favor emerging hydrocarbon markets such as Mali, Somalia, Democratic Republic of Congo, Namibia and Mauritania which prioritize improving the cooperation with majors and investors to boost upstream activities to unlock their energy potential.
With 14 exploration license rounds and nine high-impact wells set to be announced and drilled in 2022, and another ten wells set to be drilled in rich and unexplored basins in East and West Africa in 2023 , Africa is well placed to expand its energy portfolio. The forum ahead of AEW 2022 will promote ongoing and upcoming exploration licensing rounds in African countries such as Ivory Coast, Liberia, Kenya, South Sudan, Uganda and Angola, as well as the promotion of rich basins that remain untapped.
“The growth potential of Africa’s upstream segment has already been demonstrated by the presence of international majors BP, Chevron, Eni, ExxonMobil, Equinor, Shell and TotalEnergies in mature markets and their interest in increasing investment and to expand their footprint in emerging markets such as Mauritania, Mozambique, Ivory Coast, Tanzania and Namibia For Africa to end energy poverty by 2030, we need to introduce more licensing rounds, drill more wells and increase capital for exploration while reducing the time spent bringing discoveries online Government must act and act quickly It often takes longer to obtain government approval for oil and gas projects than it takes to bring gas to market.These are some of the issues that industry stakeholders and government officials will address at the AEW 2022 Pre-Forum Forum,” Mr. Ayuk concluded.
Under the theme “Exploring and Investing in Africa’s Energy Future while Creating an Enabling Environment”, the forum ahead of AEW 2022 will host panel discussions and high-level meetings to discuss how the Africa can boost its upstream segment as well as the exploitation of hydrocarbons. eliminate fuel poverty by 2030.
Distributed by APO Group for African Energy Week (AEW).
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About AEW 2022:
AEW 2022 is the AEC’s annual conference, expo and networking event. AEW 2022 brings together African energy players with international investors and partners to drive industry growth and development and promote Africa as an energy investment destination. Key organizations such as the African Petroleum Producers Organization, as well as African heavyweights including Equatorial Guinea and Nigeria, have partnered with AEW, furthering the role the event will play in the future. energy of Africa.
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