African Energy Chamber (AEC) Promotes Attractive African Oil & Gas (O&G) Prospects and Regulations at American Association of Petroleum Geologists (AAPG) Conference

African nations rich in hydrocarbon resources are revamping regulatory frameworks and introducing new licensing rounds, creating a more favorable environment for global oil and gas firms seeking high-return investments. State-owned energy company the Egyptian Natural Gas Holding Company launched an international bid round offering 12 blocks for exploration to boost reserves and hydrocarbon production in August 2024. Similarly, Zanzibar extended the deadline for its first offshore licensing round – offering eight oil and gas blocks – until September 2024 while Nigeria unveiled a licensing round in May 2024, featuring 12 deep offshore and shallow water blocks. 

To showcase the diverse opportunities and regulatory changes advancing the growth of Africa’s energy industry, the African Energy Chamber (AEC) – serving as the voice of the African energy sector – participated in the American Association of Petroleum Geologists (AAPG) annual conference in Houston last week. Led by Verner Ayukegba, Senior Vice President of the AEC, the Chamber delivered a presentation titled Africa Energy Diversity of Opportunity and the Regulatory Attractions for Investors, showcasing burgeoning opportunities within Africa’s upstream sector. 

Licensing Rounds and Growing Prospects 
Several new licensing rounds are scheduled for 2024 and beyond in Africa, all of which aim to significantly increase commercial prospects for American firms operating across Africa. Notably, Libya’s National Oil Corporation (NOC) is set to launch a licensing round offering blocks in the Murzuq, Ghadames and Sirte basins towards the end of 2024 and early 2025. Algeria will also offer between 10 and 12 onshore blocks in its 2024 Bid Round to bolster its gas and LNG production while Angola plans to launch its 2025 Bid Round in the first quarter of 2025, offering 10 offshore blocks in the Kwanza and Benguela basins. With oil and gas projected to comprise over 50% of global energy consumption by 2050 – according to a report distributed by energy major ExxonMobil -, Africa’s vast and largely untapped resources offer a significant opportunity to enhance U.S.-Africa energy cooperation to meet this growing demand. 

Regulatory Revamps and Africa-US Collaboration 
During his presentation, Ayukegba underscored Africa’s improved operating environment and the opportunities emerging for American geologists, explorers and investors in the upstream sector. Nigeria, for example, enacted the Petroleum Industry Act in 2021, leading to the creation of specialized regulators – including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) – as well as greater fiscals that have significantly improved the industry environment for investors. Angola has also embarked on continuous reforms to maintain its competitive edge, creating the National Oil, Gas and Biofuels Agency in 2019 which simplified the process of awarding new licenses through multi-year bid rounds. With Africa’s policy and upstream environments rapidly improving, American geologists and companies stand to play an even greater role in advancing exploration and kickstarting industry-changing projects.  

Beyond seismic firms, U.S.-based E&P companies are making great strides towards maximizing Africa’s oil and gas resources through frontier exploration and incremental production. ExxonMobil, for example, drilled the Likembe-01 research well in Angola’s Block 15 in May 2024, discovering hydrocarbons as part of a broader multi-well program aimed at increasing reserves and production. The company announced that it could invest up to $15 billion in exploration and production in Angola’s Namibe basin through 2030 following commercial success at ongoing drilling campaigns. The find follows another discovery made by the company at the Bavuca Sul-1 exploration well in November 2022. 

Meanwhile, Chevron signed contracts for ultra-deepwater Blocks 49 and 50 in Angola’s Lower Congo basin in June 2024 and entered into production sharing agreements for offshore Blocks EG-06 and EG-11 with Equatorial Guinea’s National Oil Company GEPetrol. In May 2024, Chevron acquired an 80% operating working interest in the PEL 82 exploration license offshore Namibia, aligning with its efforts to expand its presence in the highly prospective Namibian basin. Additionally, Chevron is conducting its first oil and gas exploration well in the Red Sea concession area offshore Egypt as part of a $50 million capital injection this year. In Nigeria, Chevron is engaged in a $1.4 billion exploration campaign with the Nigerian National Petroleum Company, drilling 37 wells in the offshore and onshore Escravos area of the Niger Delta from 2022 through 2026. 

These are just some of the examples of U.S.-based energy companies advancing oil and gas development in Africa. The AECs participation at the AAPG event comes ahead of the African Energy Week (AEW): Invest in African Energy conference – taking place November 4-8 in Cape Town. As African hydrocarbon markets enhance their respective regulatory frameworks, the AEW: Invest in African Energy will connect African energy regulators, industry leaders and American and global investors to facilitate deal signings and strategic partnerships.  

AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit http://www.AECWeek.com for more information about this exciting event. 

Distributed by APO Group on behalf of African Energy Chamber.