Equinor Completes Nigeria, Azerbaijan Asset Sales Of Up To $2 Billion
Equinor has closed the planned sale of its assets in Nigeria and Azerbaijan for a total consideration of up to $2 billion, completing exits from the two countries after some 30 years, the Norwegian oil and gas firm said on Monday.
The divestments, first announced in 2023 and completed in recent weeks, will boost cash flow in the fourth quarter and were in line with Equinor’s strategy to optimise its international portfolio, the group said in a statement.
“The exits enable investments to deepen further in countries where Equinor can add the most value and build a more focused and robust international portfolio,” the company said without elaborating.
Equinor has previously said it plans to increase its international output by some 100,000 barrels of oil equivalent per day (boed) by 2030 by bringing on stream new fields in Brazil, Britain and the United States.
In Nigeria, Equinor sold its assets, including a 20.21% stake in the Agbami oil field operated by Chevron , to Chappal Energies for up to $1.2 billion, consisting of $710 million in cash and the remainder in contingent payments.
The company did not say how market prices and other factors could affect contingent payments.
In Azerbaijan it sold a 7.27% stake in the Azeri Chirag Gunashli (ACG) field, a 8.71% stake in the Baku-Tbilisi-Ceyhan (BTC) oil pipeline and a 50% stake in the Karabagh project to Azerbaijan’s SOCAR and India’s ONGC for a total of $745 million.
Equinor’s net production in Azerbaijan and Nigeria averaged 24,600 and 17,700 barrels of oil equivalent per day (boed), respectively, during the first three quarters of 2024.
Source: Reuters.com
South Africa: Electricity Minister Promises To Work With Municipalities Regarding Eskom Debt
South Africa’s Minister for Electricity Minister Kgosientsho Ramokgopa has promised to work with ailing municipalities in the country to deal with their debt to Eskom.
The minister visited Tokologo Local Municipality in Boshof in the Free State to address municipal debt issues.
The municipality owes the power entity R328 million.
The last time the municipality honoured its debt with Eskom was three years ago.
Eskom intended to reduce electricity supply by the end of January next year but that move has since been averted.
Minister Ramokgopa says the municipality and the provincial government will look into how they resolve the issue.
Source: hhtps://energynewsafrica.com
South Africa: High Court Stops New Coal Capacity Plan
South Africa’s High Court has ruled that government plans for new coal-fired power capacity are unlawful as they violate the constitutional right to health.
The Government planned to seek 1.5 gigawatts (GW) of new coal-fired electricity capacity.
However , the plans have been challenged in court by three activists group who argued that new coal plants could lead to damages to public health.
The High Court held that the government plans and decisions to seek the procurement of new coal power are “unlawful and invalid,” Judge C.J. van der Westhuizen wrote in a ruling published on Wednesday and quoted by Bloomberg.
South Africa, one of the world’s largest coal producers and exporters, continues to rely on coal for a large part of its energy mix. Currently, some 85% of South Africa’s electricity is generated via coal-fired power stations.
South Africa could see an additional up to 50,000 deaths due to air pollution and billions of U.S. dollars in health costs if a proposal to delay the decommissioning of coal-fired power plants goes through, a Finland-based Centre for Research on Energy and Clean Air (CREA) said earlier this year.
In a 2023 report, CREA said that if the rate of decommissioning in the 2030s and 2040s is not accelerated from current plans, further delays to the decommissioning of other units would multiply the health impacts of the delay to 32,300 deaths from air pollution and economic costs of $40 billion (721 billion South African rands).
Crippled by an energy crisis for several years, South Africa is struggling to shut down coal plants, while it needs billions of U.S. dollars to boost the share of clean energy sources in its power mix.
South Africa is currently negotiating loan guarantees with its international partners in its $9.3-billion Just Energy Transition Partnership (JETP) program for energy investment.
The lack of loan guarantees has so far withheld the disbursement of much of the funds of the multi-billion-dollar partnership aimed at helping South Africa reduce its reliance on coal and cut carbon emissions.
Source: https://energynewsafrica.com
Nigeria: Port Harcourt Refinery Is Running… Doubters Are Invited For Facility Tour…Says NNPC
The Nigerian National Petroleum Company Limited (NNPC Ltd) has insisted that the old Port Harcourt Refinery is up and running, with loading operations in full swing.
The Group Chief Executive Officer, Mr Mele Kyari, gave the confirmation at the inauguration of the NUPENG Towers in Lagos on Wednesday.
In a goodwill message at the event, Kyari extended invitation to human rights activist and lawyer, Mr Femi Falana, and all those in doubt to join the NNPC Ltd on a tour of the refineries in Port Harcourt, Warri, and Kaduna to verify their status.
He also shed light on the controversy around products blending, stating that blending was not a crime as it is an integral part of the refining process.
“If you don’t blend, you will bring out off-spec products which will destroy your vehicles.
“Every refinery blends because what is on specification in the United States of America will be off-spec in Nigeria and elsewhere. Blending is necessary to bring products to the specification of different countries or regions,” he explained.
Kyari also congratulated NUPENG on the successful completion of the NUPENG Towers and urged the union to continue to prioritise dialogue and co-operation in its relationship with NNPC Ltd and the Federal Government.
He disclosed that the President’s interventions in the oil and gas industry by way of Executive Orders were yielding positive results, with more investments coming in and prospects of more jobs in the industry.
Source: https://energynewsafrica.com
Shell And Equinor To Form UK Oil And Gas Joint Venture
Shell and Norway’s Equinor will merge their British offshore oil and gas assets into an equal joint venture, they announced on Thursday.
The venture, to be based in Aberdeen, Scotland, is expected to produce over 140,000 barrels of oil equivalent per day (boed), with completion of the deal expected by the end of 2025.
“The new company will provide a long-term sustainable future for individual oil and gas fields and platforms, helping extend the life of this crucial sector for the benefit of the UK,” Shell and Equinor said in a statement.
While the new entity would become the British North Sea’s biggest independent producer, there is no intention to conduct an initial public offering, Shell Upstream Director Zoe Yujnovich told reporters.
The ageing British North Sea basin, where production started in the 1970s, has seen a steady exit of oil companies in recent decades as production declined from a peak of 4.4 million boed at the start of the millennium to around 1.3 million boed today.
The British government’s decision to impose a windfall tax on North Sea producers following a surge in energy costs in 2022 has put further pressure on producers to reduce investment and exit the basin.
The North Sea Transition Authority (NSTA) regulator has forecast output will decline to fewer than 200,000 boed by 2050.
Shell UK’s output stands at over 100,000 boed and Equinor currently produces some 38,000 boed per day in Britain, the companies said.
Equinor is currently developing the Rosebank oilfield, one of the last known major oil reservoirs in Britain, while Shell is developing the Jackdaw gas field.
The new company will include Equinor’s stakes in the Mariner, Rosebank and Buzzard fields, and Shell’s holdings in Shearwater, Penguins, Gannet, Nelson, Pierce, Jackdaw, Victory, Clair and Schiehallion, the Norwegian group said.
A range of exploration licences will also be part of the transaction, it added.
Equinor will retain ownership of the Utgard, Barnacle and Statfjord cross-border assets between Norway and Britain, as well as its offshore wind portfolio including Sheringham Shoal, Dudgeon, Hywind Scotland and Dogger Bank, it said.
It will also retain its hydrogen, carbon capture and storage, power generation, battery storage and gas storage assets, it added.
Shell will keep its interests in the Fife NGL plant, St Fergus Gas Terminal and floating wind projects under development, MarramWind and CampionWind.
Shell UK will also continue as the technical developer of Acorn, Scotland’s largest carbon capture and storage project, Equinor said.
Source: Reuters.com
Ghana: ACEP Punches Holes In NPP, NDC 2024 Manifesto Promises On Upstream Petroleum Sector
The Africa Centre for Energy Policy (ACEP), an energy think tank in the Republic of Ghana, has punched holes in the 2024 Manifesto promises of the major political parties on the upstream oil and gas sector barely a few days to a general election in the West African country.
In a document titled 2024 Election Playbook, which focused on power and petroleum-downstream and upstream sectors, and funded by OXFAM, the Africa Centre for Energy Policy took time to analyse all the proposed commitment of political parties, including the recently formed New Force and Movement for Change founded by the former Trade and Industries Minister, Alan Kwadwo Kyeremanteng.
Ghana began commercial oil and gas production from the offshore Tano Basin in 2010. Initial output increased from 24.2 million barrels in 2011 to a peak of 71.44 barrels in 2019. Production from the basin has since dropped after 2019 by about 32% to 48.25 MMbbl in 2023. To date, the offshore Tano Basin remains the only productive hydrocarbon basin in Ghana.
ACEP’s decision to analyse the manifestos of the four political parties is to see which of the manifestos can address the issues in the upstream sector to increase exploration and production of oil and gas.
In the NPP’s 2024 Manifesto, the party has proposed to simplify approval processes for appraisals and production programmes to re-energise upstream activities and fully implement the Infrastructure -Led Exploration (ILX) strategy to unlock the full potential of Ghana’s offshore reserves.
Additionally, the party proposed to partner the private sector to build and maximise gas processing infrastructure for power generation, ammonia for fertilizer and gas to petrochemical liquids.
Furthermore, the party proposed to review and strengthen the Petroleum Revenue Management Act to streamline government allocation of oil funds and address gaps in the law and introduce a dedicated National Ghanaian Content Fund and National Data Acquisition Fund to help Ghanaian enterprises to enhance their competitiveness and effectively participate in the upstream sector.
In its analysis of the NDC’s manifesto promises, ACEP welcomed the attempt by the NPP to improve regulatory processes in the upstream sector.
However, the think tank said an International Oil Company (IOC) would only seek approval for appraisal or production of a favourable environment for licence acquisition and exploration, and the IOC would find evidence of economic reserves of hydrocarbon.
It underscored that efforts to improve the approval processes for appraisal and production should not be at the expense of enhancing licensing and exploration activities.
Touching on the Infrastructure-Led Exploration (ILX), ACEP stated that this strategy has the potential to boost production and cut development costs if applied fairly and transparently.
However, it said the policy must be standardised and amplified to avoid excessive discretionary application, which has recently favoured or disadvantaged certain industry players.
According to ACEP, the promise to involve the private sector in gas processing remains stalled and shrouded in politics and boardroom disputes.
“A transparent, competitive selection with parliamentary oversight is essential to move it forward,” ACEP suggested.
Also, it indicated that NPP’s manifesto lacks specifics on the aspect that reviews the Petroleum Revenue Management Act. It pointed out that past attempts to review it focusing on the use of the Heritage Fund and oil revenue collateralisation were rejected by stakeholders.
“Voters need clarity on the proposed changes to make informed decisions,” it suggested.
On the issue of National Ghanaian Content Fund and National Data Acquisition Fund, ACEP recalled that the government has implemented a Local Content Fund for the past ten years without results and questioned how different would the proposed National Ghanaian Content Fund be from the existing local Content Fund.
Additionally, it said the manifesto does not clarify the funding sources which has been the major problem of the Local Content Fund.
Turning its attention on the NDC’s 2024 manifesto, ACEP said the NDC plans to increase exploration activities to establish new reserves by rebuilding investor confidence through policy and regulatory clarity, consistency, predictability, transparency, and governance and attract world-class investors. It also plans to innovate multi-field development systems that optimise development of infrastructure and allow profitable production of otherwise marginal fields.
Additionally, the NDC plans to fully domesticate non-revenue benefits of the oil and gas industry for Ghanaians by enhancing technology transfer, supporting local businesses, and increasing local content in procurement. This includes re-establishing the National Oil Company (NOC) as a centre of excellence and reviewing laws and policies to align with these goals.
In its analysis of these commitments, ACEP noted that during the previous NDC administration, several oil blocks were awarded to lesser-known oil companies that ultimately failed their mandate.
It said given this history, the proposed shift towards engaging world-class investors is commendable. It, however, said the party must outline a clear strategy for attracting and securing these world-class investors.
ACEP further noted that optimising development infrastructure for profitable production is essential. It, however, stated that this strategy must be standardised and simplified to avoid excessive discretionary application, which has recently favoured or disadvantaged certain industry players.
Concluding on NDC’s commitment, ACEP pointed out that the NDC’s manifesto failed to clarify the gaps in existing laws that require review. It added that is essential for the NDC to clarify the meaning of establishing the National Oil Company as a centre of excellence as it raises pertinent questions about its current mandate and role.
Source: https://energynewsafrica.com
Rahul Dhir To Step Down As Tullow CEO
Africa focused independent oil and gas firm, Tullow Oil Plc.has announced that its Chief Executive Officer, Rahul Dhir will step down and also resign from the Board during 2025 to pursue other business, academic and family interests.
A statement issued by the company said its board has initiated a process to find his successor.
Rahul will stay in his role until a date to be determined to ensure a smooth transition.
Phuthuma Nhleko, Non-Executive Chairman, said “I would like to thank Rahul for his hard work and dedication to Tullow. Since joining in 2020, Rahul has led a comprehensive turn-around and strategic reset of Tullow, focussed on the delivery of operational and financial performance, debt reduction and positioning the company for future growth.”
Rahul Dhir, Chief Executive Officer, said “It’s been a privilege to serve Tullow during these past four and a half years. During this period, we have achieved a step change in our operating performance, cost structure and capital discipline and delivered over $1.1 billion in free cash flow and reduced our net debt from $2.8 billion to c.$1.4 billion.”
He added “I am also very proud of our team’s strong culture of ownership and commitment to business delivery. With a strong pan-African platform, Tullow is well-positioned as a trusted partner and responsible operator to deliver the next phase of growth.”
Rahul Dhir was appointed as Chief Executive Officer and an Executive Director of Tullow in April 2020.
Source: https://energynewsafrica.com
The Gambia: EU Ambassador Visits Ongoing Construction Of Jambur Solar Plant
The European Union (EU) Ambassador and Head of Delegation, Imma Roca i Cortés, has led a delegation to see the ongoing Jambur Solar Plant in The Gambia to assess the progress and impact of this vital renewable energy initiative.
According to a statement issued by the National Water and Electricity Company (NAWEC), the delegation was warmly received by NAWEC’s Deputy Managing Director, Mr Edrissa B. Jarju, and the Project Coordinator of The Gambia Electricity Restoration and Moderniwation Project (GERMP), Mrs Haddy Njie.
This high-level visit underscores the robust partnership between the European Union, the Government of The Gambia and NAWEC in driving sustainable energy development.
The collaboration is pivotal in achieving the country’s ambitious energy goals which include increasing electricity access and transitioning to renewable energy sources.
The Jambur Solar Plant, a flagship initiative under the GERMP, is co-funded by the World Bank, the European Union, the European Investment Bank and other development partners.
It is a cornerstone project aimed at enhancing energy efficiency, reducing dependence on fossil fuels and ensuring reliable electricity for The Gambian communities.
During the visit, Mr Jarju expressed profound gratitude to the European Union and the Government of The Gambia for their unwavering support and reaffirmed NAWEC’s commitment to delivering sustainable energy solutions.
Ambassador Imma Roca Cortés commended the impressive progress achieved and highlighted the importance of continued collaboration among the EU, The Gambian Government and NAWEC to drive transformative energy solutions.
The visit reflects the vital role of strategic partnerships in advancing The Gambia’s energy sector and achieving its sustainable development objectives.
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com China Could Approve 100 New Nuclear Reactors By 2035
China could keep the pace of approving at least 10 new nuclear reactors over the next 10 years, a domestic industry group says, as the country has been accelerating the approval and construction of nuclear power plants over the past few years.
China could commit to a “realistic target” of 10 new approvals each year through 2035, Tian Jiashu, deputy secretary-general of the Chinese Nuclear Society, said at the BloombergNEF Summit in Shanghai this week.
Air pollution from coal-fired power plants is a major impetus for China to expand its nuclear generation fleet.
China is not giving up coal, but it is betting on nuclear, too, to meet its rising power demand with cleaner energy sources.
Over the past decade, China has added more than 34 gigawatts (GW) of nuclear power capacity over the past decade as new installations surged.
Over the past two years, China has approved at least 10 new nuclear reactors for construction.
Earlier this year, China approved the construction of 11 new nuclear reactors, breaking a record and once again demonstrating its all-of-the-above attitude to energy security.
The country is building more nuclear power plants than any other country in the world—just like its coal power plants—and based on those record approvals, it plans to build even more, becoming the world’s biggest nuclear generator by 2030, according to BloombergNEF.
Currently, China has 57 operable reactors with a total capacity of 55.7 GW, as well as 30 reactors under construction with a combined capacity of 32 GW, according to the World Nuclear Association.
Yet, China would need more private investment in nuclear reactors to keep the pace of reactor approvals and construction, Chinese Nuclear Society’s Tian said at the BloombergNEF event.
The United States still has the largest nuclear fleet in the world, with 94 reactors, but it took nearly 40 years to add the same nuclear power capacity as China added in 10 years, the U.S. Energy Information Administration (EIA) said earlier this year.
Source: Oilprice.com
Ghana: NPA CEO’s Great Journey In Perspective
A great journey is indeed coming to an end at the National Petroleum Authority (NPA). A journey of vigour, upliftment, innovation, and growth. That is the journey the NPA Chief Executive, Dr. Mustapha Abdul-Hamid, has embarked upon in the last four years.
It is mostly difficult for academicians and politicians to transition into the technical space or industry but Dr. Abdul-Hamid has belied that notion.
He was appointed NPA Chief Executive in 2021 for a four-year term with a background in academia and political leadership as a Minister.
He transitioned seamlessly into a guru in the country’s downstream petroleum industry.
He is credited for ensuring uninterrupted importation and supply of fuel products in the country in difficult moments when other African countries were experiencing shortages.
His acumen went beyond the borders of Ghana, encouraging downstream petroleum industry players in Africa to elect him as the President of the African Refiners and Distributors Association (ARDA), the first-ever pan-African organization for the downstream oil sector.
In recent interviews with Directors at the NPA and players in the downstream petroleum industry, the unanimity of views is that Dr. Abdul-Hamid has introduced significant policies and brought stability and sanity into the industry.
They all touted his progressive and human-centred leadership style. His impact on the Authority in his four-year journey thus far is enormous. Snippets from the effects can be considered for the sake of brevity.
Relating to innovation and drive, the impact is evident in the implementation of key policy programmes of the Authority. He has implemented the cylinder recirculation model (CRM) policy to cater for the current intricate distribution concept and ensure safety in the distribution chain of LPG.
He has also introduced a tender programme for the importation of LPG. The programme has achieved its intended purpose of eliminating huge jumps in the price of LPG.
It has brought down the cost of LPG premium from about $100 per metric tonne (MT) to about $30 MT, saving the country about $70 MT.
He again supported the implementation of technological systems to ensure fuel integrity, effective monitoring of fuel transportation, and protection of customer interests.
The NPA has witnessed exponential growth in revenue generation for the state and infrastructure development through Dr. Abdul-Hamid’s drive. The collection of levies and margins have shot up from a little over 50 percent to above 90 percent.
The vigour that Dr. Abdul-Hamid introduced to the NPA is visible in the media presence of the Authority. His background as a former Minister of Information might have played a part in how the organization has been receiving the media mileage.
An aspect of Dr. Abdul-Hamid’s vigour is manifest in his ability to crack the whip no matter the supposed political affiliation of the offending party in the industry. With the support of the Board, he revoked the licenses of almost 80 Oil Marketing Companies (OMCs) over the past three years due to their failure to meet regulatory requirements. His strong position has brought sanity to the country’s downstream petroleum industry.
On restructuring the Authority, he also led a process by the Corporate Affairs Directorate to rebrand the Authority regarding the look and feel.
Dr Abdul-Hamid believed there was a need to refresh the brand to reflect the positive direction and vision of the Authority, hence, the launch of a new logo, new color schemes, and typography.
The reception area was redesigned to give an exotic ambiance for receiving visitors. He commissioned a call centre for the Authority to increase efficiency and timeous handling of customer complaints and inquiries. The name of the NPA was broadly mounted at the frontages of the Authority for easy identification.
In terms of upliftment, it is an understatement to say Dr. Abdul-Hamid has put smiles on the faces of the staff of the NPA.
He pushed for general promotions, which have been delayed for years.
He also approved several training programmes for the staff to improve their performance in line with corporate goals.
Another significant upliftment drive initiated by Dr. Abdul-Hamid was his encouragement of young managers to be more visible in the media to explain technical issues. That push prepared the young leaders to take up director positions.
Besides, he promoted religious tolerance and cohesion at NPA; he allowed for morning prayer services for Christians and created an opportunity for Muslims to observe their daily and Friday (Jum’a) prayers at a designated place, which was unprecedented.
His modesty is sublime as he introduced a policy of sitting in common buses with his Deputies, Directors, Heads of Department, and officers for external meetings and sporting activities.
An office annex has been constructed at the Authority’s head office in Accra. The new building has a laboratory for testing fuel quality and offices. No wonder he has won many awards from industry watchers, including the 2021 and 2022 CEO for the Year and 2022 Outstanding Public Sector Leader.
As Dr. Abdul-Hamid prepares to end his four-year tenure as NPA CE, the joy is that he has left his footprints in the sands of NPA and the downstream petroleum industry in Ghana and Africa. It is indeed a strong mark and the industry will be better for it.
Source: NPA
Egypt: AfDB Approves $170 Million For Largest Wind Energy Project
The Board of Directors of the African Development Bank has approved a loan of up to $170 million to support the development of the game-changing 1.1 GW Suez Wind Project, currently Egypt’s largest wind energy initiative.
The project is estimated at $1.1 billion.
The Bank’s financing is in addition to financing expected from a consortium of Development Finance Institutions (DFIs), banks, and financial institutions, a statement issued by AfDB said.
The project has been awarded the Golden License by the Cabinet of Egypt, recognizing it as a strategic initiative for the country. This license provides a set of incentives, including streamlined approvals, to accelerate the project’s implementation and its contribution to Egypt’s renewable energy goals.
Commenting on the project, Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the African Development Bank, said: “The Suez Wind Project is a landmark development that underscores Egypt’s leadership in renewable energy and the Bank’s steadfast commitment to supporting transformative, clean energy projects across the continent. This project not only facilitates the Government of Egypt’s efforts to achieve 42 percent of renewable energy in its energy mix by 2030 but also drives local economic growth and strengthens regional energy security.”
Wale Shonibare, the Bank’s Director of Energy Financial Solutions, Policy, and Regulations added: “As the largest wind energy project in Egypt, this initiative exemplifies the scale of renewable energy potential across Africa.
It demonstrates how strong partnerships and innovative solutions can advance the energy transition and foster sustainable economic development.”
The project involves the design, construction, operation, and maintenance of a greenfield wind farm divided into two sites, each with a capacity of 550 MW, located along the Gulf of Suez. The Egyptian Electricity Transmission Company (EETC) will be the sole off-taker under a 25-year take-or-pay Power Purchase Agreement (PPA).
The wind farm is expected to generate 4,111 GWh annually, supplying clean, reliable, and affordable energy to over one million households.
It will reduce annual CO₂ emissions by approximately 1.71 million tons, contributing significantly to Egypt’s climate commitments under the Paris Agreement.
Aligned with the Bank’s Ten-Year Strategy, the New Deal on Energy for Africa, and its High 5 objective of “Light Up and Power Africa,” the Suez Wind Project reinforces Egypt’s commitment to achieving 42 percent renewable energy in its generation mix by 2030.
It also supports the African Development Bank’s mission to promote sustainable, inclusive, and resilient energy development across Africa.
Source: https://energynewsafrica.com
African Energy Bank To Bridge Africa’s Financing Gap Amid Efforts To Eliminate Energy Poverty
The Africa Energy Bank (AEB) – a supranational institution spearheaded by the African Petroleum Producers Organization (APPO) and the African Export-Import Bank (Afreximbank) – is preparing to open its doors to projects and businesses in 2025.
Aimed at addressing funding gaps within Africa’s energy industry, the institution is poised to play an instrumental role in ensuring Africa’s energy resources are both monetized and maximized for the benefit of the continent.
As the continent tackles with an energy crisis, the AEB will fundamentally change how projects are financed, laying the foundation for a new era of energy security continent-wide.
The AEB was born out of a vital need to introduce new sources of financing for African energy projects – from upstream oil and gas to renewable energy and power infrastructure to green hydrogen and petrochemicals.
Currently, the continent’s energy finance gap is estimated to measure between $31 billion and $50 billion, and the global energy transition has seen financing – specifically for fossil fuel projects – reduced even further.
Concurrently, despite promises of receiving billions in climate financing from the global north, Africa receives less than 3% of global energy investment, highlighting a fundamental challenge given that over 600 million people are living without access to electricity across the continent.
To address this challenge, APPO and Afreximbank introduced the concept of the AEB in 2022, signing the requisite documents for its establishment in June 2024. With an initial share capital of $5 billion, the bank will focus predominantly on financing energy projects.
Nigeria’s capital city of Abuja was selected as the headquarters of the bank in July 2024, with the institution expecting to accept applications from early-2025. The priority beneficiaries of the bank’s services will be the states that have ratified their documents for the establishment of the institution, with ratifications currently in the advanced stage.
APPO and Afreximbank represent the primary contributors to the bank’s financing, with additional financing secured from APPO member states and other financial institutions. Notably, the bank is seeking $83 million from each of APPO’s 18 signatories, amounting to $1.5 billion. Additionally, the AEB is seeking to partner with up to 700 banks in Africa to chart a profitable pathway for the African energy sector.
Representing the first of its kind in Africa, the AEB offers Africa a saving grace as the global energy transition makes financing projects that much more challenging. Despite holding over 125 billion barrels of proven crude reserves and 620 trillion cubic feet of natural gas reserves, Africa struggles with lengthy project approvals, construction delays and red tape, most of which can be accredited to financing.
Through the AEB, African countries and companies stand to accelerate the pace of energy development continent-wide, reduce the reliance on foreign capital while maximizing resource development for the benefit of generations to come.
The AEB could not come at a better time for Africa. While countries such as Angola, Libya, Nigeria and the Republic of Congo have long-been major producers, efforts to address natural production declines have seen a rise in new discoveries.
At the same time, exploration efforts in frontier markets have highlighted a wealth of untapped opportunities, such as Namibia’s prolific Orange Basin; the offshore MSGBC Basin; Zimbabwe’s onshore Cabora Bassa Basin; and South Africa’s onshore Karoo Basin. Drilling activity and rig demand have been on the rise in Africa, with the continent rapidly emerging as one of the world’s most promising deepwater plays.
In the natural gas sector, Africa is well-positioned to become a leading global supplier. The continent represents 13% of global reserves, with LNG exports measuring just over 40 million tons per annum.
The sector is currently undergoing an $800-billion, 20-year upstream capital expenditure program, resulting in several world-class LNG facilities. Additionally, the continent is projected to account for more than half of the world’s FLNG capacity brought online between 2023-2027.
Without these resources, Africa’s efforts to industrialize and electrify its economies will be significantly impacted – highlighting the fundamental role of the AEB in providing project financing for African LNG.
“The value and role of the AEB cannot be overstated. By providing accessible and tailored financing solutions, the AEB ensures that African energy projects – whether in oil, gas, or renewables – receive the support they need to thrive. This institution is not just about financing; it is about empowering Africa to unlock its vast energy potential, drive industrialization and make energy poverty a thing of the past,” stated Omar Farouk Ibrahim, Secretary General of APPO.
Source: Energy Chamber
Ghana: ECG Cautions Customers Against Fake Staff
The Electricity Company of Ghana (ECG) has cautioned its cherished customers and the general public about the illegal activities of individuals falsely posing as ECG staff.
A statement issued by the ECG said these persons are harassing customers and demanding payments through unauthorised channels, including specific MoMo numbers, under threats of disconnection.
“We wish to emphasise that ECG staff are not authorised to harass, threaten, or solicit payments in this manner. Such actions violate our core values and ethical standards”, the statement said.
It said for secure and authorised transactions, the ECG encouraged customers to use the ECG Power App or dial *226# or contact the ECG Contact Center at 0302 611611.
Source: https://energynewsafrica.com
Meta Joins Race For Nuclear Power
Meta, the owner of Facebook, has officially joined the race for nuclear power generation to secure the energy supply for its artificial intelligence ambitions.
In a news release, the company said it was looking to contract developers to build between 1 and 4 GW of nuclear power generation capacity in the United States, to be completed by the early 2030s.
“We are looking to identify developers that can help accelerate the availability of new nuclear generators and create sufficient scale to achieve material cost reductions by deploying multiple units, both to provide for Meta’s future energy needs and to advance broader industry decarbonization,” the company said in the release.
Meta went on to say it would continue investing in wind and solar as well as part of its decarbonization efforts but mentioned that nuclear power facilities have “a longer expected operational life”.
Nuclear is also more reliable than wind and solar, which is why Big Tech is racing to secure new capacity as soon as possible—because nuclear power plants take quite a while to build, unlike wind and solar.
Unfortunately for Big Tech, it’s not just construction times that are making growth in nuclear generation capacity a challenge.
New nuclear also carried a heavy regulatory burden and, as Reuters notes in a report on the Meta news, the U.S. Nuclear Regulatory Commission is “overburdened”.
In additional problems, the country is facing a uranium supply shortage and it is not limited to the U.S., either. Demand for nuclear capacity has shot up so quickly that supply has yet to catch up.
This will be problematic because Kazakhstan, the world’s top producer is suffering the effects of a sulfuring acid shortage, which has affected output.
Separately, the West is trying to replace its source of processed uranium because Russia is the biggest one but alternatives are not exactly abundant.
Source: Oilprice.com