Namibia, a nation that has not yet experienced oil or gas production, has garnered significant attention from global firms following discoveries by Shell and TotalEnergies off its southern coast.

“The well did not make a discovery; however, we are encouraged to have found indications of a working petroleum system in this previously untested area of our license,” Shell said in a statement.

The well was plugged and abandoned, and Shell will now analyze the data gathered before deciding on any follow-up activity, it said.

Shell and its partners QatarEnergy and Namibia’s national oil company have made four oil discoveries in the southern African country in recent years, including the Graff and Jonker wells.

Zoë Yujnovich, the Head of Upstream, mentioned on June 14 that the outcomes of the drilling tests conducted thus far have been promising.

The Riyadh Tadawul-listed utility developer released a statement on Wednesday, highlighting that the overall project requires a total investment of $182 million, of which 68% is non-recourse to shareholders.

The limited recourse financing will be for a period of two years.

Financing institutions for this project include the European Bank for Reconstruction and Development (EBRD), the OPEC Fund for International Development (the OPEC Fund), the African Development Bank (AfDB), the AfDB’s Sustainable Energy Fund for Africa (SEFA), the Green Climate Fund (GCF), the Arab Petroleum Investments Corporation (APICORP), and the Arab Bank.

In an April statement, ACWA said the package would comprise loans of up to $36 million from the EBRD, $14.6 million from the OPEC Fund, $14.4 million from the AfDB, $34.5 million from the GCF, $14.8 million from the Arab Bank, and $10 million from the SEFA under the COVID-19 IPP relief program.

Situated within 20 kilometers of Africa’s largest solar park, the 1,465 MW Benban complex—also developed by ACWA Power—the Kom Ombo plant is projected to begin commercial operations in January 2024. When fully operational, this large-scale facility will provide electricity to approximately 130,000 households.

Aligned with Egypt’s ambitions, the government aims to generate 42% of its electricity from renewable sources by 2035.

The signing event took place in Djibouti on August 27, 2023. The PPA was formally executed by Mr. Djama Ali Guelleh, CEO of Electricité de Djibouti (EDD), the national utility company, and Mr. Hussain Al Nowais, Chairman of AMEA Power. This momentous occasion was graced by the presence of H.E. Yonis Ali Guedi, Minister of Energy and Natural Resources.

The project will be the first solar Independent Power Project (IPP) in Djibouti and will be located in Grand Bara, south of Djibouti City. The solar project is being fully developed by AMEA Power under a Build-Own-Operate-Transfer (BOOT) model and will generate 55 GWh of clean energy per year, enough to reach more than 66,500 people. The Sovereign Fund of Djibouti (FSD) will be joining the project before financial close as a minority shareholder. The offtaker for the project will be Electricité de Djibouti.

As part of its strategic plan, the government of Djibouti aims to reduce CO2 emissions by around 40% by 2030.

Hussain Al Nowais, Chairman of AMEA Power, said: “AMEA Power is proud to reach this milestone and to be supporting Djibouti in its energy transition journey. East Africa is an important market for AMEA Power, as it is a region with immense potential for the development of clean, reliable, and affordable energy.”

AMEA Power is rapidly expanding its investments in wind, solar, energy storage, and green hydrogen, demonstrating its long-term commitment to the global energy transition. The company has a clean energy pipeline of over 6 GW across 20 countries.

“In an achievement that occurred within just under two years of the discovery in September 2021 and less than a year and a half after the Final Investment Decision, this milestone is notably significant,” states ENI in a press release. The company asserts, “This project stands as Africa’s pioneering emissions-free (Scope 1 and 2) production endeavor.”

For the initial phase, production takes place through the Baleine FPSO, a refurbished and upgraded floating Production storage and offloading unit capable of handling up to 15,000 barrels of oil per day (BOPD) and around 25 million standard cubic feet of gas per day (MMscf/d) of associated gas.

The start of Phase 2 is expected by the end of 2024 and will increase field production to 50,000 BOPD of oil and approximately 70 MMscf/d of associated gas. The third development phase aims to elevate field production up to 150,000 BOPD of oil and 200 MMscf/d of gas.

“The entire gas production from the Baleine Field in this development phase and the subsequent ones will be delivered onshore through a newly constructed pipeline. This will enable the country to meet its domestic electricity market demands, facilitate energy access, and strengthen its role as a regional energy hub for neighboring countries”, ENI says.

The project leverages the best available technologies to minimize emissions. Residual emissions are offset. through initiatives developed within the country, including supplying and distributing improved stoves to local communities, eliminating the need for wood or coal for cooking. The stove distribution program, initiated in 2022 is expected to reach over one million people in the next six years. Simultaneously, Eni has launched studies. for Nature-Based Solutions projects covering 380,000 hectares of protected forests.

“The first oil from Baleine is a milestone in ENI’s operations”, says Claudio Descalzi, the company’s CEO. “Stemming from an extraordinary exploration success, we have achieved an industry-leading time-to-market of under two years from the declaration of commercial discovery. This outcome expresses the core principles of our strategy, encompassing Africa’s pioneering net-zero project, accelerated development, local gas supply, and the promotion of a just transition.

Ribadu made this assertion during a visit with a presidential delegation to assess oil and gas facilities in Owaza, Abia, Odogwa, and Etche within Rivers State.

He said that the acts of oil thieves and pipeline vandals had harmed the country’s economy and were partly to blame for the country’s rising cost of living.

“It is unfortunate that a few individuals would steal our common resources, causing incredible loss to the nation, communities, and people.”

“Nigeria has the capacity to produce 2 million barrels of crude daily, but we are currently producing less than 1.6 million barrels due to theft and vandalism of pipelines.

“So, we are talking about 400,000 barrels of crude oil going to waste, with a few criminals and economic saboteurs not even getting much out of it,” he said.

According to Ribadu, when artisanal refineries break pipes, they collect a small amount of crude oil while larger volumes of oil pour into the environment.

“The value of 400,000 barrels of oil today is about 4 million dollars, and every day, we lose this amount because of this irresponsible behavior.

“If you multiply 4 million dollars by 365 days (one year), you will see that it is a lot of money running into billions of dollars.

“Currently, the country is in desperate need of money as the naira is continuously losing its value because we earn less money.

“If we earn more money, it will not only help strengthen our currency but also reflect in everything, including the cost of living in the country,” he added.

According to the NSA, the administration of President Bola Tinubu is concerned about the situation and is already taking action to solve it.

He claimed that the government’s massive investments in infrastructure for the common good of all were being destroyed by a few individuals, damaging the environment in the process.

Ribadu urged a united front to combat oil theft and put an end to decades of attacks on the country’s oil and gas infrastructure.

The presidential delegation to the NSA was led by Baduru Abubakar, Minister of Defense, and Gen. Christopher Musa, Chief of Defense Staff (CDS).

Others in attendance included Air Marshal Hassan Abubakar, Chief of Air Staff (CAS), Bello Matawalle, Minister of State for Defense, and Heineken Lokpobiri, Minister of State (Oil), Petroleum Resources.

The crew included the Minister of State (Gas), Petroleum Resources, Ekperipe Ekpo, senior NNPCL management executives, and other top security officers.

The agreement outlines the establishment of a joint venture between the two entities. This collaboration’s core objective is to appraise and produce LNG, with an initial target of delivering 50 MW of gas-equivalent energy. This capacity will subsequently be scaled up to a substantial 500 MW of gas-equivalent energy.

The project includes Block 1 and further blocks. Block 1 involves a 50 MW-equivalent LNG-size operation for the commercial advancement of onshore wells.

Kinetiko said that the upstream and midstream activities for natural gas development in Block 1 could cost about A$138 million ($88.6 million).

In the future phase, additional on-shore natural gas wells are planned to be developed for the balance of gas for 450 MW-equivalent LNG-size operations.

In a press statement, Kinetiko said: “The IDC has been granted the option to participate in the co-development of further 1,000 MW LNG gas equivalent projects, totaling 1.5 GW.”

Kinetiko expects Block 1 to be developed within a span of two to three years, while the second stage will be developed over a period of nine to ten years.

Kinetiko CEO Nick de Blocq said: “This is a step change in the scale of the company’s development and represents a national project to support South Africa’s transition to cleaner, reliable, and affordable energy.

“The project has been registered under the Strategic Infrastructural Projects Management Mechanism that operates from the Office of the President. This is expected to expedite all state and government-related processes in terms of permitting and licensing and minimize red tape.”

Kinetiko said the term sheet supports its goals to unlock more than two trillion cubic feet of gas reserves.

The discovery resulted from exploration well GNN-11 and is currently generating over 2,500 barrels per day, according to a statement released by Cheiron on Tuesday.

Total oil production from the concession has reached 23,000 bpd, compared with 4,000 bpd before the GNN field was developed, the company said.

Cheiron holds a 60 percent working interest in the concession, with Kuwait Foreign Petroleum Exploration Company (Kufpec) holding the remaining 40 percent stake.

“The new Nubia discovery confirms the exploration potential in the northern area of the concession, and Cheiron and Kufpec are planning to drill at least three additional exploration wells in the concession area,” the company said.

“In a broader sense, the discovery also demonstrates that while the Gulf of Suez is a relatively mature hydrocarbon province, it still has significant remaining exploration potential.”

Egypt, the Arab world’s third-largest economy, has been looking to boost its natural gas production to meet rising domestic demand and for exports to Europe.

The value of Egypt’s exports of natural gas reached $8.4 billion in 2022, up 171 percent from a year earlier, as an energy crisis in Europe drove up demand for the fuel.

In December, Egypt discovered a large gasfield off its north-eastern Mediterranean coastline with potential reserves of 3.5 trillion cubic feet of gas.

The find was in Nargis, one of four offshore exploration blocks in which US oil company Chevron holds operating interests along with Egypt’s Tharwa Petroleum.

Egypt’s energy sector expects to attract $8 billion in foreign investment in the coming fiscal year, Tarek El Molla, the country’s petroleum and mineral resources minister, told reporters on the sidelines of an event last month.

The investments will be allocated to developmental and operational activities in the oil and gas sector, he said.

Egypt has offshore exploration plans worth $1.8 billion to drill new gas wells in the Mediterranean Sea and the Nile Delta.

Global liquefied natural gas trade hit a high of $450 billion in 2022 amid a surge in European demand, according to the International Energy Agency.

Despite a rise in demand, LNG supply grew by only 5.5 percent last year, mostly due to maintenance at large export terminals and as Freeport LNG’s Texas-based plant, one of the world’s largest export centers of the supercooled fuel, was shut down after a fire.

Electricidade de Moçambique (EDM) is set to invest three million dollars in the Mphanda Nkuwa hydroelectric dam project. This project, positioned in the country’s central region alongside the Cahora Bassa hydroelectric dam, is expected to become the second-largest hydroelectric facility.

In a recent development, both companies disclosed the signing of a bilateral contract agreement, outlining the details and terms for supplying an amount “slightly above $3 million” (€2.8 million) to the Mphanda Nkuwa Hydroelectric Project Office (GMNK) budget.

“This amount corresponds to EDM’s [Electricity of Mozambique’s] contribution (…) and should be paid by the financial closure of the project,” explains the state company.

EDM and Hidroelétrica de Cahora Bassa, companies mandated by the government to develop and implement the Mphanda Nkuwa Hydroelectric Project, shoulder the project’s development costs. These costs should be treated as advances to the share capital of the special purpose companies set up for its development.

Mphanda Nkuwa will be the second-largest hydroelectric plant in the country, after the Cahora Bassa Hydroelectric Plant (HCB), which has a capacity of 2,070 megawatts. It will have an installed power generation capacity of up to 1,500 megawatts and a 1,300-kilometer high-voltage line from Tete to Maputo.

At an estimated cost of $4.5 billion (€4.2 billion), Mphanda Nkuwa is to be built 61 kilometers downstream from the Cahora Bassa hydroelectric plant on the Zambezi River in Tete province.

“The project will be the lowest cost option for energy production” and should strengthen Mozambique’s position in the energy export area as a “regional energy hub”, the GMNK previously emphasized.

Domestically, it aims to “contribute to universal access and industrialization” in the country, he added.

The European Union (EU) and the European Investment Bank (EIB) announced in June that they “will disburse 500 million euros” for the Mphanda Nkuwa dam hydroelectric project.

A total of €300 million will go towards the high-voltage power line, of which €50 million is a donation, and the remaining €200 million will go towards the hydroelectric power station.

Just days after the Mozambican government’s announcement, a consortium led by Electricity of France (EDF) and including oil company TotalEnergies secured the “preferred bidder” status to execute the project through a concession regime.

Subsequently, the project will progress into the fundraising stage, aiming for financial closure (initially set for August 2024). Once the required funds are in place, the project is slated to proceed and commence operations by 2030.

“The Mphanda Nkuwa project will be fundamental to the process of energy transition and decarbonization in the southern region of the African continent,” the developer’s office said.

The initiative, centered in Walvis Bay and Luderitz, entails creating fresh berths and quay walls to facilitate drilling services. According to Andrew Kanime, the Chief Executive Officer of the Namibian Ports Authority, the project’s commencement is projected for the last quarter of next year and is anticipated to conclude within a maximum of three years.

TotalEnergies SE and Shell Plc are evaluating recent oil finds that could hold an estimated 7 billion barrels of oil equivalent, according to consultant Wood Mackenzie. Activity offshore the country has accounted for 13% of rigs working in African waters, bolstering its status as an exploration hotspot.

Namibia could reach its first crude production as early as 2029, state oil company Namcor said. Neighboring Angola is Africa’s second-biggest oil producer.

The expansion plans also include building a second port in the town of Luderitz as well as other extensions to cater for multiple-platform vessels. Namport will provide land for the development and then invite private companies to establish operations, according to Kanime.

“We’re transitioning to a landlord model as a port authority,” he stated, emphasizing, “Our aim is to attract private firms with strong technical know-how and financial capabilities to invest in this sector.”