Burundi’s largest electricity substation, a 160 megavolts facility in Rubirizi, financed by the African Development Bank Group (www.AfDB.org) and the European Union, will increase the country’s electricity-connected population by 7 percent when completed.

A delegation from the government of Burundi and the African Development Bank visited the site on 9 August 2024, as part of a tour of electrification projects funded or co-funded by the Bank Group in Rubirizi and Kabezi, in Bujumbura Rural Province.

The delegation included the Burundian Minister of Finance, Budget and Economic Planning, Audace Niyonzima, the Minister of Water, Energy and Mines, Ibrahim Uwizeye, Director General of the state-owned water and electricity production and distribution company, Lieutenant Colonel Jean Albert Manigomba, alongside the Bank’s Country Manager for Burundi, Pascal Yembiline, Raymond Kitandala Luhana, a consultant on the Bank’s energy projects in Burundi, and the project coordinator, Ezechiel Bagayayutunze.

The Rubirizi substation is being constructed as part of the Kamanyola-Bujumbura Interconnection Project, for which the Bank and the European Union are providing joint funding of USD 37 million. Scheduled for completion in December 2024, the substation will be the injection point for energy produced by the Ruzizi III regional hydroelectric power station, which is also receiving funding from the Bank.

The substation will strengthen the reliability and stability of the electricity network in Bujumbura, the country’s economic capital, and will improve its flexibility of use. It will be connected to existing lines to distribute the energy produced by national power stations until the completion of the Ruzizi III station.

In Kabezi, the delegation toured electrification works comprising phase 1 of the Access to Energy Project (https://apo-opa.co/4cpjqGU), which covers 36 locations in 11 provinces in Burundi. This project – funded by the Bank and the Burundian government, at a total cost of USD 26 million – will connect 25,000 households in the beneficiary towns and villages. The first connections for new customers are scheduled for the first quarter of 2025.

The delegation commended the quality of cooperation between Burundi and the Bank in developing critical infrastructure. It also noted the challenges to be tackled, including implementation delays, and the need to speed up the payment of fair compensation to affected persons.

The African Development Bank is a key partner for Burundi’s development of its electrical infrastructure. As at 31 July 2024, the Bank Group’s commitment to the energy sector amounted to USD 147 million, to fund five projects: two national projects (the hydroelectric power station projects in Jiji and Mulembwe, and Phase 1 of the Access to Energy Project) and three regional projects (the Kamanyola-Bujumbura Interconnection Project, Kigoma-Gitega Interconnection Project, and the Ruzizi III Regional Hydroelectric Power Station Project).

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media contact:
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media@afdb.org

By NJ Ayuk, Executive Chairman, African Energy Chamber (www.EnergyChamber.org).

French oil and gas supermajor TotalEnergies announced in May that the company intends to invest $600 million in the Republic of Congo (ROC) before 2024 is out. The funding will support exploration and improve production in the deep offshore Moho Nord field, which currently produces at a rate of 140,000 barrels per day (bpd), accounting for roughly half of all Congolese oil production. With their added capital, TotalEnergies expects to increase this rate by 40,000 bpd — a welcome boost that will undoubtedly help the ROC get closer to its goal of doubling its total daily rate to 500,000 bpd.

In addition to their operations in the Moho Nord field, TotalEnergies also holds the ROC’s Marine XX permit. The site recently welcomed the arrival of two drilling rigs that TotalEnergies is confident will facilitate new discoveries, which the company also anticipates before the end of the year.

TotalEnergies, of course, has a significant presence on the continent, with a diverse portfolio built over 80 years. Still, this new commitment in Moho Nord is but one of many developments that reflect international confidence in the Congolese hydrocarbon sector and offer justification for the ROC to serve as a model for other African nations to follow.

Getting Out Ahead

The ROC’s burgeoning oil and gas success story stems from a recognition of and a willingness to act on multi-faceted opportunities.

A nation with proven reserves of 1.8 billion barrels (bbl) of oil and 284 billion cubic meters (bcm) of natural gas, the ROC has not fallen victim to the stagnation of red tape and endless deliberation that have plagued other African nations. Instead, the ROC set out to create an enabling business environment within its borders that would attract and retain foreign investment.

Helmed by Bruno Jean-Richard Itoua, the Congolese minister of hydrocarbons, the ROC’s efforts to reinvigorate its hydrocarbon sector have been open and inclusive, incorporating numerous global partnerships and multiple focal points across the industry spectrum.

During remarks at the Invest in African Energy 2024 forum in Paris, Itoua confirmed the ROC’s formation of a gas master plan and a comprehensive gas code. The government will also establish a national gas company in the third quarter of 2024. 

Itoua explained how, going forward, the ROC will steer gas, liquefied natural gas (LNG), and liquefied petroleum gas (LPG) primarily toward their local market with any excess reserved for export to the sub-region to tend to Africa’s energy needs first rather than Europe’s.

He also addressed the importance of public-private cooperation in relation to achieving his ministry’s goals of increasing production by 60% in the next two years while working toward alleviating energy poverty and funding the energy transition.

“Maybe 95% of investment in the oil sector in the Congo comes from the IOCs (international oil companies),” Itoua said. “Our responsibility [as the government] is to create the best business environment, best legal network, and best facilities to attract investors and partners interested in building solutions with us.”

Itoua’s outlook, which reflects his government’s approach to revitalizing the ROC’s hydrocarbon sector, is key to understanding how this small nation is writing its own very big energy success story.

During the leadup to Itoua’s announcement of a new gas master plan, thanks to the existing enabling environment in the ROC, both investor confidence and exploration and production activities were already on the rise.

Upstream and Downstream Projects

As a component of the ROC’s initiative to double its total hydrocarbon output, Pointe-Noire-based oil and gas service Trident OGX Congo commenced its seven-year project to increase production through hydraulic fracturing in the Mengo-Kundji-Bindi II oil fields. With $300 million in financing from the African Export-Import Bank (Afreximbank) kickstarting the program, operators expect the facility to eventually attract $1.5 billion in investments, create new jobs, provide an economic boost to the region, and increase the ROC’s total oil production level by 30%.

Anglo-French oil and gas company Perenco has been active offshore, acquiring 3D seismic data ahead of its exploration schedule planned for the Tchibouela II, Tchendo II, Marine XXVIII, and Emeraude permits the company holds.

Also a testament to the ease of doing business under current ROC leadership, Trident Energy — the London-based international oil and gas company committed to redeveloping mid-life assets — announced in April of this year that it had inked deals with both Chevron and TotalEnergies to acquire interest in ROC fields. Upon final approval, which is expected before the close of Q4 2024, the arrangements will see Trident Energy with an 85% working interest in the Nkossa and Nsoko II fields, a 15.75% working interest in the Lianzi field, and operational control of all three. Trident Energy will also have a 21.5% working interest in the ultra-deepwater Moho–Bilondo field which TotalEnergies will continue to operate.

Commenting on the agreement, Trident Energy Chief Executive Officer Jean-Michel Jacoulot said, “The transaction aligns with our strategy to acquire and operate high quality assets in a safe, efficient and responsible manner.

“Building on our continued successes in Equatorial Guinea and Brazil, we are excited to unlock further value and create opportunities for our partners in the Republic of Congo, host communities and all our stakeholders.”

The ROC also has sought to enhance its refining capabilities, offering potential investors the opportunity to support upgrades to its Congolaise de Raffinage refinery, which currently operates at a rate of 600,000 tons per year.

Construction of an additional refinery, the Atlantique Pétrochimie in Fouta just south of Pointe-Noire, is expected to begin in 2024. With financial backing from the Chinese company Beijing Fortune Dingheng Investment, the refinery will process 2.5 million tons of hydrocarbon products per year, including gasoline and diesel, as well as LPG, kerosene and fuel oil, and raw materials like propylene, propane, hydrogen naphtha, and sulfuric acid.

Turning Up the Gas

With existing natural gas production either stable or in decline over the past decade, another primary drive for the ROC in 2024 is to expand and monetize production with sights on becoming a global LNG exporter in short order.

The ROC sent its first export of LNG to Italy in February 2024 from the first of the two Tango floating liquefied natural gas (FLNG) facilities located 3 kilometers offshore at the Marine XII concession. The Tango FLNG operation is a partnership with Italian multinational energy company Eni with an expected capacity of 4.5 bcm per year once construction of the second FLNG facility wraps up in 2025.

On May 21, 2024, in Brazzaville, Itoua and Algerian Minister of Energy and Mines Mohamed Arkab signed a memorandum of understanding between the two countries covering future cooperation between Algeria’s state-owned oil company, Sonatrach, and Congolese national oil company Société Nationale des Pétroles du Congo (SNPC). Though the memorandum concerns the ROC’s entire hydrocarbon sector, it highlights knowledge-sharing for industry development in LNG, LPG, and petrochemicals as well as carbon footprint reduction.

An associated gas production project at the onshore Banga Kayo block seeks to harness previously flared gas resources for LNG, butane, and propane production for domestic use and regional export in contribution to the ROC’s gas monetization goals.

The conventional oilfield at Banga Kayo, operated by China’s Wing Wah Oil Company, consists of approximately 250 wells currently producing 45,000 bpd with an expected peak of 80,000 bpd. The April 2024 signing of an amended production sharing contract (PSC) between Wing Wah and SNPC that will govern the project marked the start of development for its first phase which aims for a production capacity of one million cubic meters per day (mcm/d). Two subsequent phases slated for March and December of 2025 will up the site’s production to five mcm/d.

The Banga Kayo project design incorporates power generation and environmentally friendly water treatment for each unit of the facility, with provisions of excess power and clean water sources for the surrounding communities. The workforce at the site, currently over 3,000 members strong, is also majority Congolese. By promoting efficiency, scalability, reduced emissions, and local benefits, the Banga Kayo project exemplifies the best approach for maximizing production and progress in the ROC and elsewhere in Africa.

With the assurance of a concrete gas master plan and gas code nearing finalization, promising developments like these are certain to multiply and increase in frequency and substance in the days ahead.

Betting on a Winner

By seeking and securing mutually beneficial relationships with international oil companies of varying sizes, both in and out of Africa, and by working towards defined goals, the ROC will ensure that it remains engaged in sustainable development and on a path toward economic growth.

The ROC’s enabling hydrocarbon policies attract sizeable foreign investment and offer a profitable working environment for operators of any size that is free from the paralyzing delays they often encounter in other countries.

By continuing in this fashion, in the years to come, the ROC will likely enjoy economic benefits widespread throughout its population, and it will surely find itself where it wants to be — in its rightful place alongside the other major energy exporters of the future.

The process by which it got there will also likely serve as a valuable template for other nations seeking to convert their natural wealth into long-term prosperity.

Distributed by APO Group on behalf of African Energy Chamber.

Following Galp’s hydrocarbon discoveries in the Mopane Structure in the offshore Orange Basin earlier this year – estimated to hold at least 10 billion barrels of oil and gas equivalent – Namibia has cemented its reputation as Africa’s premier exploration hotspot. Maggy Shino, Petroleum Commissioner of Namibia’s Ministry of Mines and Energy, will lead discussions on the country’s evolution into a hydrocarbon producer and the status of existing high-profile discoveries by Shell and TotalEnergies at African Energy Week (AEW): Invest in African Energy 2024, scheduled for November 4-8 in Cape Town.

As a frontier market with a world-class proven petroleum system, Namibia has garnered the attention of major explorers and anticipates first oil from its deepwater Orange Basin by 2030. While TotalEnergies and Shell carry out appraisal of their respective discoveries – with TotalEnergies’ Venus-1 discovery estimated to hold over 5 billion barrels alone – Chevron is set to drill its first exploration well in PEL 90 by the close of 2024. Onshore, ReconAfrica recently spud the Naingopo-1 well as part of a multi-well exploration campaign in the Kavango Basin in PEL 73. Home to the highly prospective Damara Fold Belt, the area is estimated to contain over 22 trillion cubic feet of undiscovered gas.

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.

Reflecting dynamic interest in Namibia’s offshore acreage, the country has seen a series of farm-in deals in recent months. Last month, BW Energy farmed-in into PEL 73, contributing up to $141 million in working capital and stipulating the company’s participation in two Damara Fold Belt exploration wells and a 3D seismic program. Azule Energy acquired a 42.5% interest in Block 2914A in the Orange Basin from Rhino Resources Namibia in May 2024, while Eco Atlantic announced a farm-in into Block 1 in the Orange Basin from Tosaco Energy in June 2024. Global Petroleum is currently in early commercial discussions over a potential farm-in agreement for its PEL 94 in the offshore Walvis Basin.

Commissioner Shino is also expected to speak on Namibia’s long-term gas development plans. The country is targeting FID for the Kudu Conventional Gas Development this year, with production expected in 2026. The highly-anticipated project – currently in the Front-End Engineering and Design phase – will deliver gas to an 885 MW combined cycle gas turbine, boosting domestic power generation capacity and creating opportunities for diversified industries and economic growth.

To support its long-term production goals, the Ministry of Mines and Energy is advancing petroleum revenue management legislation, along with dedicated local content policies ahead of first production. These measures are designed to optimize the benefits of Namibia’s extractive sectors by ensuring effective revenue management and generating opportunities for the local workforce and value-added activities. During AEW: Invest in African Energy, Namibia’s industry milestones and future plans will be unveiled, affirming the role of private-public partnerships, local content policy formulation and sustained foreign investment in fast-tracking development of the country’s hydrocarbon resources.  

“Ongoing discoveries in the Orange Basin underscore Namibia’s potential to stimulate broad economic growth and attain energy security not just for the country, but also the wider SADC region. The Ministry’s proactive approach in advancing oil and gas exploration and appraisal activities, as well as local content policies, will be crucial in realizing these goals and establishing a model for other emerging producers to follow,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.

At AEW: Invest in African Energy 2024, Commissioner Shino and the Namibian delegation will present ongoing projects, discuss new exploration opportunities and engage with global industry leaders and stakeholders to further Namibia’s oil and gas ambitions. The event promises to be a pivotal platform for showcasing Namibia’s potential and attracting new investments to its burgeoning upstream sector. 

Distributed by APO Group on behalf of African Energy Chamber.

Angola’s national concessionaire and regulator the National Oil, Gas and Biofuels Agency (ANPG) is preparing to launch a 2025 licensing round – offering ten blocks for exploration in the Kwanza and Benguela basins – in Q1 of next year. The country has also opened its first-ever marginal fields for exploration, aiming to minimize risks for exploration companies while maximizing output across producing licenses. In tandem with a permanent offer program which offers up to 11 blocks, these investment opportunities stand to accelerate exploration across the Angolan market.

On the back of these newfound investment opportunities, the ANPG has joined Africa’s premier energy event – the African Energy Week (AEW): Invest in African Energy 2024 conference, taking place from November 4-8 in Cape Town – as a diamond sponsor. AEW: Invest in African Energy serves as a platform for the ANPG to showcase recent regulatory reforms and investment prospects, while also attracting and engaging potential investors interested in Angola’s offshore, onshore and marginal field opportunities.

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.

The agency’s six-year licensing strategy – launched in 2019 – has attracted a strong slate of global investment while revitalizing upstream oil and gas activity in Angola. This approach has not only boosted production but also fostered a competitive and transparent environment for international and local companies alike​. In 2024, the ANPG concluded its 2023 bid round, featuring 12 blocks in the Lower Congo and Kwanza Basins. Sonangol, Angola’s state oil company, qualified as the operator for Block KON 15 with a 40% interest, while oil and gas company Afentra secured a 45% non-operating interest. Last month, the ANPG signed production sharing contracts for Blocks CON 2, CON 8 and KON 19. These contracts are crucial for operationalizing these blocks and boosting Angola’s oil production capabilities. Angolan oil company Etu Energias will operate Blocks CON 2 and CON 8 with Effimax, Simples Oil and Enagol as partners, while Angolan upstream company ACREP will operate Block KON 19 alongside Afentra and Enagol​. These developments signify a step forward for Angola as it enhances its oil production potential.

Meanwhile, the agency is adopting a series of measures throughout 2024 that aim to support crude oil production in Angola, assisting in the country’s efforts to maintain production above one million barrel per day beyond 2027. Specifically, the ANPG is preparing to propose a regulatory agenda in 2024 to enhance monitoring across the crude oil upstream, midstream, downstream and biofuels sectors. Key initiatives include signing an incremental production decree to boost output at producing assets as well as improving oil infrastructure and promoting local content. The ANPG will also develop a plan for resource sharing, assess facility integrity and review abandoned wells for potential reactivation. Additionally, the agency aims to complete a skills management project, create a local content fund, support carbon capture and storage projects and design Environmental, Social and Governance studies to facilitate renewable energy projects and the country’s transition to cleaner energy.

“The ANPG’s strategic initiatives and licensing rounds are setting a high standard for oil and gas growth in Africa. The company’s proactive measures are revitalizing Angola’s oil and gas sector, boosting both onshore and offshore exploration. By enhancing licensing strategies and regulatory frameworks, the ANPG is solidifying Angola’s role in the global energy market and driving sustainable development and investment,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.

During AEW: Invest in African Energy 2024, ANPG representatives will engage in various panel sessions including the Invest in Angola Energies country spotlight, Angola’s 2025 licensing round presentation and the Oil&Gas Policy&Investment session. This participation provides potential investors with the chance to not only gain crucial insight into the upcoming bid round and existing block opportunities but join one of Africa’s biggest oil and gas markets.

Distributed by APO Group on behalf of African Energy Chamber.