Multinational energy corporation Chevron has signed two Risk Service Contracts (RSC) for Block 49 and Block 50, located in the ultra-deep waters of Angola’s Lower Congo Basin. The company – through its Angolan subsidiary Cabinda Gulf Oil Company Limited ­– was initially awarded the concessions by way of Presidential Decree in January 2024. The signing of the RSCs kicks off exploration and lays the foundation for the development of the blocks.

As the voice of the African energy sector, the African Energy Chamber (AEC) commends the recent signing by Chevron in Angola. Chevron’s rich history of exploration and production in the country – covering 70 years – could not have been possible without Angola’s strong regulatory environment and the AEC supports the ongoing efforts by the multinational to expanding Angola’s oil and gas market.

Representing the company’s first operated assets outside of the existing Cabinda concessions, Block 49 and 50 are situated in close proximity to producing concessions such as Block 17 – one of the first deep-offshore blocks to be licensed in Angola. As such, the blocks hold substantial potential for strong returns and further expand Angola’s portfolio of producing ultra-deepwater assets. Earlier this year, Chevron signed an agreement with Angola’s national concessionaire – the National Oil, Gas&Biofuels Agency – to conduct seismic surveys in Blocks 49 and 50. These studies will improve the geological understanding of the concessions and advance the exploration agenda.

The RSCs add to Chevron’s strong asset portfolio in Angola. The company currently has a 26% market share in the country, with interests in Block 0 and 14 – which produce an average of 70,000 barrels of liquids per day and 259 million cubic feet of natural gas per day. Block 0 – whose concession has been extended to 2050 – is comprised of 21 fields, while Block 14 contains nine fields. An agreement signed between Chevron and the government in 2020 combined all of Block 14’s development areas, providing improved fiscal terms while extending the production sharing contract to 2028. Additionally, in 2023, Chevron signed a production sharing agreement to manage operations within the Block 14/23 concession area. The concession is situated in the Zone of Common Interest shared by Angola and the Democratic Republic of the Congo, with the agreement seeing Chevron act as operator with a 31% stake in the block.

Chevron’s operations in Angola transcend oil and gas exploration, with the company holding non-operating interests in the Angola LNG plant – Angola’s inaugural LNG facility. Angola LNG processes gas from offshore concessions, generating critical revenue for the country through LNG exports. In 2023, the facility reached a milestone of delivering its 400th LNG cargo. Going forward, the development of new concessions aims to bolster LNG production at the facility. Specifically, the Chevron-operated Sanha Lean Gas Connection Project – valued at $300 million – comprises the development of a platform that ties into the existing Sanha Condensate complex and features pipelines connecting Block 0 and 14 to the Angola LNG facility. The project reached a final investment decision in 2021 and aims to address a supply gap at Angola LNG.

Beyond exploration and production, Chevron is spearheading low-carbon solutions across Angola’s oil and gas industry. The multinational signed an agreement with the government in October 2023 to explore low-carbon business opportunities, with the goal to utilize nature-based and technological carbon offsets – alongside lower-carbon intensity fuels such as hydrogen – to enhance the country’s production. This will be undertaken in conjunction with oil and gas initiatives and showcases Chevron’s future-oriented approach to energy development in Angola.

“Chevron’s recent signing of two RSCs further underscores the value of implementing a strong regulatory and fiscal environment in Africa. When governments open up the market through attractive fiscal terms, the industry will respond positively. This is clearly evident in Angola where a commitment to creating an enabling environment for doing business has and continues to attract foreign companies. Other countries in Africa should learn from this and adopt proactive measures to attracting foreign capital,” states NJ Ayuk, Executive Chairman of the AEC.

Distributed by APO Group on behalf of African Energy Chamber.

Vantage Capital (www.VantageCapital.co.za), Africa’s largest mezzanine fund manager, has provided $47.5m of mezzanine funding for Two Rivers International&Innovation Centre (TRIFIC SEZ), a first of its kind services-oriented business park in a special economic zone located within the prestigious diplomatic blue zone of Nairobi, Kenya. The promoter of the transaction is Centum Investment Company PLC (Centum), a Nairobi Stock Exchange-listed investment group established in 1967, with interests spanning real estate, energy, industrial operations, technology, media, telecommunications, and financial services. Centum boasts a strong track record of delivering significant real estate projects, including Two Rivers Mall, and has completed over 2,000 residential units in Kenya and Uganda.

TRIFIC SEZ aims to create an integrated business environment, offering world-class infrastructure, advanced technology, and a robust regulatory framework. It is designed to provide businesses with a competitive edge on a global scale, leveraging Kenya’s SEZ tax incentives. Businesses operating within TRIFIC SEZ will benefit from VAT zero-rating, import and stamp duty exemptions, and a reduced corporate tax rate of 10% for the first 10 years of operations.

Vantage’s investment will facilitate the acquisition and renovation of a 14,975 sqm office tower, as well as the development of two Grade A office towers with a combined gross leasable area of 76,800 sqm. A key attraction for TRIFIC SEZ tenants will be direct access to the wider Two Rivers precinct ecosystem, which includes residential developments, dining and lifestyle options, retail offerings, and entertainment venues, all curated by Centum to enhance the work environment for businesses and their employees.

Warren van der Merwe, Managing Partner at Vantage Capital, said “We are proud to partner with Centum on this remarkable project, which will generate hundreds of jobs and attract much-needed foreign direct investment to Kenya.”

Roshal Ramdenee, Associate Partner at Vantage Capital, added “We are excited to partner with Centum on the development of the TRIFIC SEZ. From our interactions with the Centum team, we have been impressed by their deep real estate expertise and commitment to attracting businesses to Kenya by effectively marketing its favourable operating environment. We are confident that TRIFIC SEZ will play a key role in enhancing Kenya’s competitiveness as a premier investment destination on the continent.”

James Mworia, CEO at Centum added “We are very pleased with the partnership and investment by Vantage Capital which will catalyse TRIFIC SEZ and enable it to provide world class facilities to  SEZ enterprises. These SEZ enterprises will in turn create thousands of new jobs for Kenya, attract foreign direct investment and spur significant export revenues to the benefit of our country.”

This transaction represents Vantage Capital’s 37th investment across four generations of funds with its portfolio of investments spread across eleven African countries. 

Werksmans (in South Africa) and Bowmans (in Kenya) acted as legal counsel for Vantage. Other advisors to the transaction included JLL, PWC Kenya, Turner&Townsend, Webber Wentzel, and IBIS Consulting.

Distributed by APO Group on behalf of Vantage Capital Group.

For more information contact:
Warren van der Merwe                                                 
Managing Partner – Vantage Capital                           
warren@vantagecapital.co.za                                                       

Roshal Ramdenee
Associate Partner – Vantage Capital             
roshal@vantagemezzanine.com
Tobi Kasali

Senior Associate – Vantage Capital
tobi@vantagemezzanine.com

About Vantage Capital:
Vantage Capital Group was established in 2001 and is the largest independent pan-African mezzanine debt fund manager on the African continent. It has raised funds of US$ 1.6 billion in seven distinct mezzanine and renewable energy debt funds as well as in a technology fund and has to date made 61 investments across the African continent.

Vantage has an office in Johannesburg, employees based in Cape Town, Nairobi, Lagos, Cairo, London, Dubai and Paris, and targets investment opportunities, with a focus on mezzanine debt, of US$ 10 – 50m across more than a dozen key African markets. Mezzanine debt is an intermediate form of risk capital, which is situated between senior debt, the lowest risk tranche of the capital structure, and equity, the highest risk. It combines elements of both debt and equity thereby providing companies with long-term funding on terms which are less dilutive to shareholders than pure equity.

Vantage recently launched an education investment platform which is targeting the education markets of Poland, Czechia, Romania, and Portugal.

Website: www.VantageCapital.co.za

On June 4, 2024, African Export-Import Bank (Afreximbank or the Bank) (www.Afreximbank.com) entered into a Cooperation Agreement with the Africa Centres for Disease Control and Prevention (Africa CDC) to leverage their strengths in boosting health systems across Africa and improving the livelihoods of African citizens. This milestone agreement underscores the commitment of both institutions to enhance regional vaccine research, development, and sustainable manufacturing capabilities.

The agreement will see Afreximbank and Africa CDC collaborate on various strategic initiatives, including the operationalization of the Africa Pooled Procurement Mechanism (APPM) in close cooperation with UNECA. They will develop and implement priority initiatives to advance Africa’s unique healthcare manufacturing sector and promote innovative financing mechanisms to support health research and development initiatives in African countries. Both institutions aim to leverage gains made in implementing the African Continental Free Trade Agreement (AfCFTA).

Recognizing the critical role of Africa CDC in ensuring African health security, Afreximbank will support Africa CDC in achieving financial sustainability. In line with the African Union’s ambition under the ‘New Public Health Order’ (http://apo-opa.co/3xmkL2I) to produce 60% of the continent’s vaccine needs in Africa by 2040, up from less than 1% today, with interim goals of 10% by 2025 and 30% by 2030; the expanded partnership will also focus on local manufacturing across all aspects, including financing, market shaping, technology transfers, and talent development.

Speaking at the signing ceremony, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, said: “Our collaboration with Africa CDC began with the arrival of the Covid-19 pandemic, and in a short span of time, we have achieved significant progress. Formalizing our collaboration is therefore a natural step to join forces towards the attainment of the socio-economic development of Africa.”

Commenting on the signing of the Agreement, Dr. Jean Kaseya, Director General of Africa CDC, said: “Ensuring Africa’s health security depends on our capacity to produce essential health products within our continent. Pillar 2 of the new public health order—Expanded Manufacturing of Vaccines, Diagnostics, and Therapeutics—emphasizes the importance of democratizing access to vital medicines and equipment.”

Distributed by APO Group on behalf of Afreximbank.

Media Contacts:
For Africa CDC
Margaret Edwin,
Director of Communication&Public Information Division: Africa CDC
Tel: +251 986 632 878
Email: EdwinM@africacdc.org

For Afreximbank
Vincent Musumba
Manager,
Communications and Events (Media Relations)
Email: press@afreximbank.com  

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About Afreximbank: 
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance, facilitate and promote intra and extra-African trade. For over 30 years, the Bank has been deploying innovative instruments to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the AfCFTA, Afreximbank has in partnership with the African Union Commission and AFCFTA Secretariat launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the Free Trade Agreement. The AFCFTA Secretariat and the Bank have created a USD 10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA.
At the end of September 2023, Afreximbank’s total assets and guarantees stood at USD 37 billion, and its shareholder funds amounted to USD 6.5 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, “the Group”).
For more information, visit: www.Afreximbank.com

About Africa CDC: 
About Africa CDC: The Africa Centres for Disease Control and Prevention (Africa CDC) is a continental autonomous public health agency of the African Union that supports member states in their efforts to strengthen health systems and improve surveillance, emergency response, and prevention and control of diseases. Learn more at: http://apo-opa.co/4ewIbTC

Senegal’s Minister of Energy, Petroleum and Mining Birame Soulèye Diop will participate at the African Energy Week (AEW): Invest in African Energy 2024 conference – Africa’s premier event for the energy sector taking place from 4–8 November in Cape Town. Minister Diop is expected to unpack the critical role oil and gas plays across the MSGBC region, providing insight into project developments and future investment opportunities.

Minister Diop’s participation comes as the country celebrates a new milestone in its oil and gas industry, with global energy company Woodside Energy commencing oil production from the Sangomar Field Development – Senegal’s inaugural offshore oil project. Representing a critical step towards bolstering energy security across the MSGBC region, the start of production is poised to usher in a new era of industrialization and economic growth in Senegal. During AEW: Invest in African Energy 2024, Minister Diop will provide insight into the milestone achieved as well as the nation’s upcoming oil and gas project agenda.

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 www.AECweek.com for more information about this exciting event.

Senegal anticipates rapid economic growth in 2024 – potentially reaching 8.3% – driven by first gas production from the Greater Tortue Ahmeyim (GTA) LNG project and first oil production from the Sangomar Field Development. The Sangomar project – featuring a stand-alone FPSO facility with a capacity of 100,000 barrels per day – is developed in partnership with Senegalese national oil company Petrosen and targets 230 million barrels of crude oil reserves. The first phase involves 23 wells – including 11 production wells, 10 water injection wells and 2 gas injection wells. To date, 21 wells have been completed. This achievement not only enhances Senegal’s oil production capabilities but also signals the country’s emergence as a player in the global energy market.

Meanwhile, the GTA LNG project – located on the maritime border between Senegal and Mauritania – has recently achieved a major milestone with the arrival of the FPSO vessel. The vessel, manufactured in China, is now being moored offshore. The GTA development will extract gas from deepwater reservoirs using a subsea system, producing around 2.3 million tons of LNG per year for domestic use and export. The FPSO will process over 500 million standard cubic feet of gas per day (MMscf/d). The project is on track for first production this year.

In conjunction with this, Senegal plans to build a new gas-to-power plant near Saint-Louis, with an initial capacity of 250 MW, expandable to 500 MW. This plant will be supplied with gas from the GTA field as Senegal transitions into a gas-producing nation by late 2024. A 400-km gas pipeline, managed by the state-owned Senegalese Gas Network, will connect GTA to Saint-Louis, Dakar and Mbour. The first phase involves laying a 45-km offshore pipeline and a 40-km onshore segment to link the GTA development to the new gas-to-power plant. The pipeline is expected to be completed by late 2025, with the power plant starting operations in early 2026.

Meanwhile, energy major Kosmos Energy assumed operatorship of the Yakaar-Teranga gas development offshore Senegal in November 2023. The project – targeting 25 trillion cubic feet of gas – represents one of the largest gas discoveries globally, with phase one set to produce 550 MMscf/d. With gas produced for the domestic market, the project is expected to pave the way for increased industrialization and power generation in Senegal.

“Senegal’s achievements in its oil and gas sector – marked by the first oil from the Sangomar Field Development – are a testament to the country’s commitment to harnessing its natural resources for economic growth. This milestone not only boosts Senegal’s economic prospects but also sets a precedent for the MSGBC region, showcasing its potential to become a major player in the global energy market,” states NJ Ayuk Executive Chairman of the African Energy Chamber.

During AEW: Invest in African Energy, Minister Diop will outline these significant developments and discuss future plans aimed at ensuring energy security and driving economic growth in Senegal. Additionally, he will highlight the regulatory frameworks that provide an enabling environment for such investments, further cementing Senegal’s position as a leading energy hub in the MSGBC region. 

Distributed by APO Group on behalf of African Energy Chamber.