TE24 International Desk:
Europe’s thirst for oil and gas is reviving interest in African energy projects to replace guaranteed Russian supplies that were abandoned due to cost and climate change concerns, industry executives and African officials said. Energy companies are considering projects worth a total of $100 billion Continent, according to Reuters calculations based on estimates from government and private companies, Reuters reported.
African countries that currently have little or no oil and gas production could see billions in energy investment in the coming years, including Namibia, South Africa, Uganda, Kenya, Mozambique and Tanzania. Namibia alone can supply about half a million barrels per day Oil production followed promising exploratory wells in recent months, according to undisclosed estimates by two industry consultants.
Based on International Energy Agency (IEA) estimates, Africa as a whole could replace one-fifth of Russian gas exports to Europe by 2030. The Paris-based watchdog said an additional 30 billion cubic meters (bcm) of African gas a year could flow to Europe by then.
“As the world looks to replace Russia’s oil and gas volumes… the industry is currently focusing on the beneficial barrels that Africa must deliver,” said Eco Atlantic Oil & Gas, CEO of Canadian oil exploration firm Eco Atlantic Oil & Gas, which is off the coast of Namibia. Interested in oil licensing covering about 30,000 sq. km Gil Holzman says.
Citing activity in oil basins off Namibia and South Africa, “majors have built a large position … competitive bidding for exploration, development and production,” he emailed Reuters. European sanctions on Russian oil supplies and reduced gas flows have pushed up prices and pushed inflation to 40-year records in some countries.
Brent crude reached a near 15-year high of $139 a barrel in March to ease supply shortages. In the first real global energy crisis, we need to find a solution to cover the loss of Russian oil and gas,” IEA Executive Secretary Fatih Birol told Reuters in a June interview.
The IEA shocked the oil industry last year by saying it would not need to invest in new fossil fuel projects to reach its net zero emissions target by mid-century. Companies and countries looking to invest in oil and gas in Africa recognize that they must act quickly to exploit undeveloped reserves ahead of the global transition to low-carbon technologies. And many fossil fuel projects are unprofitable, executives said. Will increase again.
Last month, Tanzania signed a liquefied natural gas (LNG) framework deal with Norwegian state energy giant Equinor and Dutch oil company Shell, accelerating the development of a $30 billion export terminal. We plan to relaunch $20 billion once LNG becomes safer. This year the project was canceled by militants.
Puane said in May that TotalEnergy would need to ramp up operations in Namibia, a promising oil front, to offset production cuts, approve Russian supplies. “Currently, there is a lot of work going on to move these projects forward,” said Gonzalo Falcan of global law office Mayer Brown, who advises African energy sector companies on multibillion-dollar gas projects in East Africa. I quoted dollars. “Obviously there’s an opportunity to strengthen them.”
