… say Africa’s potential with 125bn barrels of oil, 620tcf of gas to meet global energy demand by 2040
Oredola Adeola
Energy experts forecast a $58 billion investment influx into Africa’s oil and gas upstream sector in the coming years, with Nigeria, Libya, and Angola playing pivotal roles.
This growth is expected to be driven by Nigeria’s robust exploration and production activities, including the upcoming 2024 licensing bid round, alongside ongoing regulatory reforms and President Bola Tinubu’s executive orders aimed at strengthening the energy business environment.
Energy majors have resumed exploration in Libya and Angola is preparing to launch its next offshore bid round.
This was part of the major highlights discussed at the opening panel of the African Energy Week (AEW) 2024 conference, held in Cape Town, South Africa, from November 4-8, 2024.
The event, themed “Making Energy Poverty History by 2030,” focused on the critical role African energy resources play in driving global energy security.
Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), in his keynote address, emphasized the need for Africa to take charge of its energy development.
He stated, “We are the only ones who can truly harness and direct our resources to solve Africa’s unique energy needs.”
Senator Lokpobiri highlighted Africa’s vast energy potential, noting that the continent holds 12% of the world’s oil reserves and 7% of its natural gas reserves.
However, despite this wealth of resources, the continent faces significant energy poverty, with over 600 million Africans lacking access to electricity and 900 million without clean cooking facilities.
The Minister reiterated the importance of energy security for Africa and stressed the need for collaborative efforts to secure the financing necessary to address these challenges.
He pointed to the establishment of the Africa Energy Bank (AEB) by the African Petroleum Producers’ Organization (APPO) as a crucial step toward securing sustainable funding for the continent’s energy sector.
“Africa must advance at its own pace, rather than be rushed by global pressures,” he said, underscoring the importance of a strategic, self-driven energy transition.
Atul Arya, Senior Vice President and Chief Energy Strategist at S&P Global, explained that Africa’s energy transition will be “multidimensional and multi-fueled,” underscoring the continent’s vast untapped potential.
“Africa’s energy future is bright. In 2019, $58 billion was invested in upstream activities, but the figure fell to $20 billion in 2020. However, we expect it to rebound to $58 billion again,” Arya noted.
Diamantino Pedro Azevedo, Minister of Mineral Resources and Petroleum, explained, “We began by changing the governance model of the sector, introducing two new regulators—one for upstream and one for midstream and downstream.
We’ve also implemented changes in laws and fiscal regimes to enhance production capacity and strengthen export potential.”
These reforms are expected to boost Angola’s position as a key player in regional petroleum trade.
Marcel Abeke, Gabon’s Minister of Petroleum, urged investors to explore the country’s deep offshore reserves, which are expected to become critical for Africa’s gas production.
“The majority of Africa’s gas reserves are in deep waters. We don’t yet have the means to fully utilize these resources, but we’re calling on major investors to come to Africa and help unlock this potential.”
Tom Alweendo, Minister of Mines and Energy, Namibia said, “Emerging producers such as Namibia are focusing on accelerated field development. With offshore discoveries in the Orange Basin since 2023, Namibia plans to begin first oil production by 2029, positioning the country as a significant frontier play in global oil exploration.
“We made great discoveries over the last years, and we continue to have more interest coming in terms of exploration. Now, we are putting more emphasis on local content issues.
“Through local content, we will generate other economic activities within economy. When you have an alignment, whether its projects or local content or regulations, everything is possible,” Alweendo said.
Liz Schwareze, Vice President of Global Exploration at Chevron, emphasized that the company is driving a multi-energy approach to unlock new sources of sustainable energy for Africa.
“Oil and gas will remain part of the future energy mix for much longer.
“Chevron sees tremendous potential in Africa, from geology to a welcoming environment, and we’re focused on delivering energy where it’s most needed, while also reducing the carbon intensity of our operations,” she said.
