The upcoming African Vitality Week (AEW): Put money into African Vitality convention – Africa’s premier occasion for the vitality sector, happening from 4–8 November in Cape City – will host an OPEC-Africa Roundtable, uniting key stakeholders from OPEC and African oil producers to interact in collaboration and strategic dialogue on finest practices to stabilize the worldwide oil market. The return of the OPEC-Africa Roundtable at this yr’s occasion underscores the strengthening ties between OPEC and Africa and is underpinned by Africa’s rising significance in international market dynamics.
This June, OPEC and its allies, together with African producers such because the Republic of the Congo, Equatorial Guinea, Algeria, Libya, Gabon and Nigeria, agreed to increase oil manufacturing cuts via to September 2025. The manufacturing cuts are designed to keep away from oversupplying the worldwide oil market, stabilize barrel costs, foster funding in each current and new initiatives, and guarantee income era for producing nations. Efforts to maximise the steadiness of the worldwide oil market by leveraging Africa’s 125 billion barrels of crude reserves might be unpacked throughout the roundtable.
AEW: Put money into African Vitality is the platform of alternative for undertaking operators, financiers, know-how suppliers and authorities, and has emerged because the official place to signal offers in African vitality. Go to www.AECWeek.com for extra details about this thrilling occasion.
World oil demand is anticipated to achieve 116 million barrels per day (bpd) by 2045, in line with OPEC. This highlights a strategic alternative for each current and rising producers in Africa, and nations are already driving upstream developments to fulfill rising demand. In April 2024, Nigeria – Africa’s largest oil producer – unveiled its 2024 Licensing Spherical, providing 12 blocks for exploration. The spherical goals to entice new funding into undeveloped blocks, particularly deep offshore belongings. The launch adopted the nation beginning operations on the TotalEnergies-operated Akpo West Area in February 2024, growing every day output by 14,000 bpd.
The continent’s second largest producer is Libya, an OPEC member since 1962, with manufacturing measuring 1.21 million bpd in April 2024. The nation has been rehabilitating 36 oil wells within the Messla and Sarir fields and has commenced a number of exploration campaigns with Spanish vitality agency Repsol, Algerian Nationwide Oil Firm (NOC) Sonatrach and vitality main TotalEnergies. Libya goals to provide two million bpd throughout the subsequent two to 3 years and plans to launch a brand new licensing spherical by the top of 2024 or early 2025.
In the meantime, the Republic of the Congo – which grew to become an OPEC member in 2018 – is endeavor a collection of measures to spice up investments and infrastructure developments throughout its upstream sector. The nation goals to extend output from the present 259,000 bpd to 500,000 bpd. Chinese language vitality firm Wing Wah is creating the Banga Kayo block whereas vitality main Eni is exploring typical and deep offshore areas off the coast of Pointe-Noire. Eni inaugurated the Congo LNG undertaking in 2023. Moreover, earlier this yr, TotalEnergies introduced plans to take a position as much as $600 million to strengthen E&P actions within the nation, together with operations on the Moho Nord area which accounts for roughly half of the nation’s whole manufacturing.
Gabon can be driving upstream initiatives, leveraging its OPEC membership and strategic imaginative and prescient to extend manufacturing to 220,000 bpd. E&P firm BW Vitality kickstarted manufacturing on the DHBSM-1H properly within the Hibiscus South exploration prospect in March, solely 5 months after the invention was made. Impartial oil and gasoline corporations Perenco and VAALCO are implementing a number of drilling campaigns on the Hylia and Etame Marin fields. TotalEnergies is drilling within the Baudroie-Mérou Marine area and the China Nationwide Offshore Oil Firm is exploring Blocks BC-9 and BCD-10.
In Equatorial Guinea, NOC GEPetrol signed a Manufacturing Sharing Contract (PSC) for Block EG-23 with unbiased E&P agency Panoro Vitality, with plans to fast-track infrastructure improvement within the block and make the most of the belongings to drive the nation’s oil market growth. The corporate additionally signed PSCs with Chevron for Blocks EG-11 and EG-06.
“OPEC is dedicated to not solely stabilizing international oil markets however supporting funding and improvement in Africa. For mature producers, the group stays dedicated to strengthening supply-demand dynamics, whereas for rising producers, stands able to help because the trade grows. Going ahead, OPEC will proceed to play an important position in reinforcing Africa’s place in international vitality issues,” said NJ Ayuk, Govt Chairman of the African Vitality Chamber.
The OPEC-Africa Roundtable builds on these developments to foster a collaborative method to addressing trade challenges and seizing new alternatives in African oil. The roundtable will function high-level audio system and key decision-makers, together with OPEC Secretary Normal Haitham Al Ghais, alongside African vitality ministers, prime executives from main oil corporations and main trade specialists. The Secretary Normal is anticipated to focus on funding alternatives within the African oil market whereas delving into methods for balancing supply-demand worldwide.
Distributed by APO Group on behalf of African Vitality Chamber.