Investments by IOCs to drive Africa’s oilfiled activities in 2024
Sopuruchi Onwuka
Investment pledges by the leading international oil companies (IOCs) are showing positive business propositions for service providers, drilling contractors that play in the African petroleum terrains.
Some of the IOCs including TotalEnergies, Shell and Chevron have all confirmed upcoming multi-million-dollar investment projects, from driving frontier exploration to delivering gas from mature markets.
Organizers of the upcoming Invest in African Energy (IAE) Forum scheduled for Paris in May declare that now is the time for investors to capitalize on a renewed pledge toward developing Africa’s oil and gas resources.
As one of Africa’s most historic producers, TotalEnergies is continuing to prioritize integrated energy projects that span the entire value chain, with an emphasis on improved connectivity and distribution to local and regional markets. While TotalEnergies has historically been most active in the Gulf of Guinea – namely, Nigeria, Angola and the Republic of Congo – the company is expanding its focus to emerging frontiers like Mozambique, South Africa and Namibia.
Last December, TotalEnergies announced plans to restart its $20-billion Mozambique LNG project in Q1 2024, as well as take an FID on a new LNG import terminal at the Port of Matola, which could enable first LNG exports to South Africa upon its completion.
In Namibia – where TotalEnergies invested half of its 2023 exploration budget – the company is currently appraising its Venus-1 discovery and made another small hydrocarbon discovery at its Mangetti-1X well earlier this month.
Managing Director and Chief Executive of TotalEnergies Upstream Companies in Nigeria, Mr Mathieu Bouyer, stated that: “there is volatility in the oil and gas business, this has never stopped TotalEnergies deploying, and developing resources and technology to enhance optimal utilization of the resources for the benefit of the countries, the people, and the company itself.”
British multinational Shell is also focusing on frontier markets like Namibia, following four consecutive discoveries in the offshore Orange Basin. And it has plans to drill two more wells, with appraisal work currently underway.
In more mature markets like Nigeria, the company is targeting its gas and deepwater assets, as well as exploring new technologies to reduce operational costs and enhance its competitiveness. Specifically, Shell Nigeria is deploying the Bonga Main Life Extension Project to extend the life of its Bonga FPSO, as well as mature several projects to deliver gas from offshore fields.
Managing Director of Shell Nigeria Exploration and Production Company (SNEPCO), Elohor Aiboni, stated: “It has continued to be challenging doing business, but we will continue to look for innovative ways that could help to reduce cost, and also drive efficiency in our business, so it is highly competitive and we stay very relevant in the oil and gas business today to help us survive and still stand tall in spite all the challenges.”
American multinational, Chevron, is seeking to forge mutually beneficial partnerships with African stakeholders to facilitate knowledge and technology exchange, develop resources more expeditiously and empower local service providers.
Chevron has also activated its portfolio of large-scale projects, from launching a $1.4-billion infill drilling program in Nigeria, to delivering first LNG cargo in Equatorial Guinea, to starting production at its Lifua-A project in Angola.
The company is also a key shareholder in the West African Gas Pipeline, which delivers Nigerian gas to Benin, Togo and Ghana and plays a critical role in driving energy security in the region.
Director at Chevron Nigeria Limited, Michelle Pflueger, stated: “We believe that energy is a fundamental building block of the economies and this is important to the economic life of a country. As we continue to develop our partnership within Africa, we can support the people and the governments to improve their GDPs.”
Organized by Energy Capital & Power, IAE 2024 is an exclusive forum designed to facilitate investment between African energy markets and global investors. The event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers.
