The Deepsea Bollsta Rig is conducting a $60 million appraisal to confirm the well’s production capacity and commercial viability, following an international arbitration court’s directive for unitising Springfield’s Afina discovery with ENI’s Sankofa field.

The Afina well, which was initially discovered in 2019, has shown prospects of producing more than 600 million barrels of oil per day.

Springfield is upbeat; the appraisal outcome will boost Ghana’s oil output and make it the first Ghanaian-owned oil company to drill in Ghana’s deep-water territory.

Well Test Officer Willem Drogt says the appraisal will be completed within the stipulated timeframe.

“It’s going forward. I can say it’s going forward. We are very happy about how the appraisal is progressing. We are very optimistic of getting the needed data in time. There were some delays due to some unexpected failures and equipment. But it is all rectified, and we expect it to be done in a couple of days,” he assured.

Mr. Drogt was speaking to a group of journalists who took a tour of the rig to familiarize themselves with the progress of work on the WCTP Block 2.

“The objective is to get hydrocarbons at the surface and see how big the reservoir is for Springfield. Hopefully it is economically worth it to proceed in this field,” the Well Test Officer added.

The project has been hailed as a game-changer for Ghana’s energy landscape, and should it be successfully completed for full-scale development, it could set a precedent for increased local participation in the oil and gas industry in Africa.

This strategic initiative is in partnership with GNPC and GNPC Explorco to advance Ghana’s oil production by aiming to finalize the unitization of the Afina-Sankofa fields to ultimately bring significant value to the government of Ghana and all stakeholders involved.

The Deepsea Bollsta Rig from Northern Ocean Limited (NOL) arrived in Ghana on October 18 and started work on Sunday, October 20, 2024.

Local and international blue-chip service companies are actively providing support services for the ongoing operations.

The contract’s scope covers international shipment and customs clearance of the equipment required for the drilling campaign from Houston, Singapore, and Antwerp to Walvis Bay, Namibia.

It also covers logistics base services such as handling and lifting, equipment management, storage and warehousing, waste management, and tank cleaning.

The operations will be supported by its Bourbon Logistics Suite data management system, which enables all logistics operations to be planned, executed, and controlled from end to end.

The logistics base is located in Walvis Bay and will employ almost 50 shore-based staff, almost all of whom are Namibians.

The client was left undisclosed, but there have been several announcements regarding offshore drilling in the country earlier this month.

South Africa’s privately owned oil exploration company, Rhino Resources, will begin its first drilling campaign in Namibia’s Orange Basin by the first quarter of 2025.

This month, TotalEnergies has started drilling activities on an exploration well in the Orange Basin.

Nigeria’s state oil firm, NNPC, is ramping up oil production, reaching 1.8 million barrels per day (bpd) and aiming to hit two million bpd by the end of the year.

OPEC’s latest report estimated Nigeria’s oil production at 1.3 million bpd in October. The country, Africa’s leading crude exporter, frequently includes approximately 250,000 bpd of condensate in its production figures.

The NNPC said the increase was a result of collaborative efforts with its joint venture operators and its partners on production-sharing contracts, alongside security agencies and the government.

“The team has done a great job in driving this project of not just production recovery but also escalating production to expected levels that are, in the short and long terms, acceptable to our shareholders,” NNPC CEO Mele Kyari told a press briefing.

Nigeria has been battling crude theft in its Niger Delta production region, sabotage, and local unrest, which has hampered output growth.

In June, NNPC set up a ‘war room’ to coordinate efforts of oil partners, the government, and private security personnel to stem crude theft. Since then, several vessels used in stealing crude have been destroyed and some illegal refiners arrested.

Kyari credited the recovery to interventions throughout the production chain, reinforced by security agencies’ rigorous pipeline monitoring.

According to Sibeya, the wells are aimed at understanding the continuity of hydrocarbon flow from recent discoveries as well as finding new ones.

The drilling campaigns will be conducted with global oil and gas firms Galp in PEL 83, Chevron in PEL 90, and Rhino Resources, stated Sibeya.

Expanding on prospects within Namibia as well as activities carried out by Namcor to expand the oil and gas industry, Sibeya said the firm is investing in seismic data acquisition and appraisals in the Orange, Walvis, Namibe, and Luderitz Basins.

“We are doing a detailed study on the geology within the Walvis Basin, and we are finalizing a transaction with Chevron for them to enter the Basin,” stated Sibeya.

Sibeya notes that Namcor, in partnership with ExxonMobil, will drill more wells in block 1711 of the Namibe Basin to evaluate reservoir quality and minimize risks linked to a recent gas discovery. He added that exploration is progressing in the Luderitz Basin, where seismic data shows promising hydrocarbon prospects and flow.

The equity bridge loan is currently under a “concept reviewed” status, and December 11 has been set as an approval deadline. If agreed, it will be composed of two tranches.

The project is located in Nagaa Hammadi. The solar plant will be supported by a 200-MWh battery energy storage system (BESS). The solar farm already has a power purchase agreement (PPA) in place with the Egyptian Electricity Transmission Company (EETC).

The Nagaa Hammadi project is one of Egypt’s first utility-scale batteries, and its implementation will pave the way for a wider rollout of storage-integrated renewable projects, according to the press statement.

A new International Solar Alliance (ISA) study—Readiness Assessment of Green Hydrogen in African Countries—is an in-depth analysis of the four African countries “that have strong developing trends and considerable potential to become major green hydrogen hubs.”

“All candidate countries have significant renewable resource potential for green hydrogen production.

“All the countries are also taking initiatives towards increasing the share of renewables in their electricity generation mix,” said the ISA-Denmark Partnership study.

The ISA report said that many countries have announced government-to-government (G2G) partnerships between the EU and other nations for the development of green hydrogen ecosystems, covering functions such as partial project financing, project construction, research and development, skilling, manufacturing, commodity offtake, etc. 

“Countries with substantial mineral reserves can leverage this opportunity to integrate the hydrogen and metal processing sectors, producing ‘green metals’ like green steel. 

“The demand for these green metals is expected to rise in the EU due to stringent emission reduction policies, such as the Carbon Border Adjustment Mechanism (CBAM).”

The study said that, apart from Ethiopia, the other three countries have formulated their hydrogen strategies or roadmaps along with production targets. 

The countries also have international partnerships to promote research, product offtake, financing, and skills development. 

“For example, Morocco aims to strengthen its ‘privileged partnership’ with the European Union (EU) for green hydrogen/green ammonia exports, thereby partially securing commodity offtake. All shortlisted countries are offering significant non-financial enablers to project developers to promote green hydrogen projects.” 

Also, the land auctions in Egypt and Morocco are significant, as these countries are not only providing land near ports to facilitate ammonia exports but have also committed to contributing equity to projects. 

“Additionally, they are providing shared infrastructure such as power evacuation systems, hydrogen storage, and transformers, among other facilities.”

Financing can be challenging for green hydrogen due to the nascent nature of the sector and the paucity of commodity offtakers at current price points. 

However, the countries can consider innovative financial solutions and de-risking mechanisms to promote green hydrogen projects. 

“There are several important examples of various financial instruments—such as tax credits, contracts for difference (CfDs), viability gap funding (VGFs), and demand aggregation—being adopted by some countries such as the US, Japan, and India. 

“Egypt and Morocco have offered some non-financial enablers such as land allocation, shared infrastructure development, equity infusion, etc.” 

The study says that it is preferable to use baseload or high-capacity utilisation factor (CUF) renewable energy for green hydrogen production. 

This enables cost reduction due to downsizing of electrolysers and improvement in their utilisation. 

For example, the hybridisation of PV (photovoltaic) and onshore wind, if possible, can help increase the availability of renewable energy. 

This needs to be accompanied by sufficient transmission strengthening/expansion to enable long-distance transmission of power to green hydrogen plants.

Sources like concentrated solar power (CSP), hydro, offshore wind, and geothermal energy need to be studied in detail, as almost all the countries have one or a combination of such high CUF renewable energy resources. 

“The development of a green hydrogen ecosystem offers a significant opportunity for several African countries to grow their economies in a sustainable and ‘future-proof’ manner. Many of these nations possess substantial renewable energy potential, including solar, wind, hydroelectric, and geothermal resources,” the report says.

Namibia is ideally positioned to advance renewable energy and hydrogen projects, thanks to its strategic geographic location, rich renewable resources, and low population density. With one of Africa’s highest solar irradiance levels, Namibia averages a Global Horizontal Irradiance (GHI) of 6.43 kWh/m² (spanning 5.88 to 6.71 kWh/m²) and a Direct Normal Irradiance (DNI) of 7.6 kWh/m² (ranging from 5.97 to 8.61 kWh/m²). About 85.7% of its land area receives a high DNI of 6.6 kWh/m² or more, making Namibia an excellent candidate for Concentrated Solar Power (CSP) projects.

Morocco is positioned to strengthen renewable integration and green hydrogen within its energy mix, opening new avenues for export revenue. Historically dependent on fossil fuels, Morocco is now pivoting towards renewables. Currently, the country’s main imports include fossil fuels like oil, coal, and natural gas, which power its electricity generation, transportation, and industrial sectors.

Ethiopia is highly suited for green hydrogen production, benefiting from nearly 100% renewable electricity penetration. This strong renewable foundation is ideal for green hydrogen development, with hydropower accounting for approximately 96.7% of total electricity production, backed by an installed capacity of nearly 4.8 GW. Wind energy, with around 0.4 GW of capacity, contributes roughly 3.1% to the power mix. Ethiopia also aims to establish itself as a key electricity supplier to neighboring countries, including Djibouti, Sudan, Kenya, and Tanzania.

Egypt is actively advancing its renewable and green hydrogen ambitions by implementing policies, developing markets, and fostering strategic partnerships. Through the New and Renewable Energy Authority (NREA) under the Ministry of Electricity, Egypt is outlining a roadmap and policy measures to realise its renewable energy targets.

The licensing round will present opportunities across various blocks, including marginal and deepwater assets.

The country currently produces 274,000 barrels per day (bpd) and aims to boost output to 500,000 bpd in the near future.

The bid round aligns with these efforts by enticing new players to invest in the market.

“We are working to hold a big licensing round,” said the country’s Minister of Hydrocarbons Bruno Jean-Richard Itoua last week in Cape Town.

“This licensing round offers exploration and production opportunities, positioning the Republic of Congo on the global market. With significant reserves, we’re highlighting our potential to attract investors and drive growth,” he said. 

Apart from Premium Motor Spirit (PMS), Dangote refinery has begun exporting diesel fuel to some African countries. The exports increased significantly in May, reaching nearly 100,000 barrels per day. Also, there has been an increase in aviation fuel exports from the refinery.

The chairman of the Dangote Group, Aliko Dangote, said at the onset of petrol production in September that the refinery is prepared to supply the local and regional markets with petrol, diesel, and other products like polypropylene.

“This refinery will change Nigeria and Africa’s oil and gas industry dynamics. Meeting the demands of the Sub-Saharan African region. We have good gasoline that guarantees the engines of vehicles last longer as the quality matches global standards,” Dangote noted.

Recently, Ghana announced its intention to buy fuel from the Dangote Refinery. Mustapha Abdul-Hamid, chairman of Ghana’s National Petroleum Authority, shared this information at the OTL Africa Downstream Oil Conference in Lagos, stating that the deal could save Ghana approximately $400 million monthly on fuel imports from Europe.

Currently, Dangote Refinery and the Nigerian petroleum marketers are at odds over pricing disputes, with the latter accusing the refinery of setting excessively high petrol prices.

Moreover, these marketers have shown a preference for importing gasoline rather than sourcing it from Dangote Refinery due to pricing issues.

As the Dangote Refinery reaches full production capacity and focuses on competitive pricing, Nigerian marketers may start opting for local sourcing, provided the refinery offers favorable terms, reliable supply, and efficient distribution.

The company’s Vice President, Global Exploration, Liz Schwarze, said that Chevron was interested in ramping up its activities in the African countries where there had been a decline in production in recent years.

West Africa is “such a hydrocarbon-rich part of the world and relatively under-explored compared to other jurisdictions,” said Schwarze. While some peers are heading for the exit, Chevron is adding multiple blocks.

In Nigeria, where oil production has slipped about half a million barrels a day over the last five years, Chevron acquired a stake in a new exploration block and made a separate discovery last month, Schwarze said.

The company also took on two deep-water licenses in nearby Equatorial Guinea, another declining producer. “The proof is in the action,” Schwarze said in an interview with Bloomberg in Cape Town.

The biggest crude producers on the continent have fallen far below their peak production levels as oil majors have focused their investments elsewhere or departed countries completely after decades of operations.

Frontier exploration remains an important aspect of Chevron’s search for resources on the continent, Schwarze added.

The company started drilling a well in Egypt this month and plans to start an exploration campaign in Namibia in December. In Angola, which quit the Organization of Petroleum Exporting Countries (OPEC) last year following a slump in its crude output, Chevron added deepwater blocks 49 and 50.

Chevron’s recent oil discovery in the Niger Delta also has the potential to produce up to 17,000 barrels per day.

The discovery, termed a “near-field find,” was made with the Meji NW-1 well within Petroleum Mining Lease 49, according to a statement from Chevron released last month.

President Bola Tinubu recently set a target to increase Nigeria’s crude oil production to 4 million barrels per day by 2030, amid the departure of multinational companies from onshore operations.

In the first instance, the country aspires to raise oil production by 1 million barrels per day in the next 24 months, although ENI, AGIP, Shell, and Exxon Mobil are selling off their onshore oil and gas assets in the country.

Nigeria currently produces around 1.35 million barrels of crude oil per day, excluding condensate, which is below its OPEC quota of 1.58 million bpd.

The six high-potential opportunities consist of a mix of exploration, development, and export opportunities and are open to competitive bidding. The round is part of a five-year licensing plan designed to attract global upstream investors and leverage more than 20 opportunities in Algeria.

Following the launch of the licensing round on October 14, access to the tender documents and data packages will open on November 26. The deadline for bid submissions is April 15, 2025, followed by the evaluation and awarding of bids.

The six opportunities span a cumulative perimeter size of 152,000 km2, supported by over 102,000 line km of 2D seismic data and more than 45,000 km2 of 3D seismic data. Potential bidders will have access to Perimeter Conditioned Data Packages and Evergreened Data Packages during the data access period, which runs from November 26, 2024, to April 1, 2025. To submit a bid, participants must prequalify with ALNAFT and acquire the necessary tender documents.

The presentation was followed by a fireside chat featuring ALNAFT and the Hydrocarbon Regulatory Authority (ARH), which highlighted the advantages of investing in Algeria’s oil and gas sector. In addition to being one of the most established markets with strong geological potential, Algeria offers an attractive regulatory framework and various vehicles for partnerships with international oil companies (IOCs).

“We have been working with IOCs for more than 35 years and never had a problem with contract sanctity. In Algeria, a contract is a holy document,” said Mourad Beldjehem, President of ALNAFT. “We previously had one type of contract for partnership, and now we have three: production-sharing, concession, and risk services contracts.”

Algeria is seeking increased upstream investment and capital to drive new exploration activities while prioritizing broader goals such as energy access, infrastructure development, and local content.

“We need more exploration. Today, we have more than 240 discoveries waiting to be developed. We need to make more discoveries to increase our reserves. We are looking for companies who are strong in exploration,” said Beldjehem.

Rachid Nadil, President of ARH, highlighted that Africa’s energy priorities—ensuring universal access, modernizing infrastructure, and building local expertise—are vital for advancing socioeconomic development across the continent.