E&P

Nigeria is joining the IEA. (Image source: IEA)

The International Energy Agency has recognised Nigeria as integral part of global energy governance with its Governing Board unanimously welcoming it as an Association country 

This decision is driven by Nigeria's influence as one of Africa's predominant economic region, including its established stronghold as oil and gas producer as well as its growing renewables potential. For Nigeria, on the other hand, this recognition will bring substantial support to the country of over 240 million people, tackling energy inequality and clean cooking challenges.

“I am thrilled that Nigeria is joining the IEA – it is Africa’s most populous country and a major international energy player. Nigeria becoming part of the world’s energy authority marks a milestone for global energy governance. I am very thankful to President Tinubu and Minister Ekpo for their trust in the IEA,” said IEA executive Director Fatih Birol. “As Nigeria works to strengthen energy security, support economic growth and expand energy access, deeper cooperation with the IEA will bring important benefits for both sides. We look forward to building on our already strong partnership and welcoming Nigeria to the IEA.”

“I am elated with the decision of the IEA Members to officially welcome Nigeria to the IEA Family as an Association country,” said Nigeria’s Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo. “It is an honour for Nigeria to join this leading energy agency and I will take this opportunity to encourage the African continent to embrace the IEA, as we all work together to achieve key development goals including universal energy access and industrialisation.” 

This development follows the growing prominence of Nigeria's refining sector in the international energy markets since market disruption, when increased fuel exports from Nigeria helped strengthen domestic as well as global market resilience.

The IEA Governing Board’s decision builds on a strong history of engagement and collaboration between Nigeria and the IEA since 2014. In September 2025, the IEA, Nigeria’s Minister of Petroleum Resources and the African Energy Commission (AFREC) jointly convened a Regional Roundtable on "Turning Methane Pledges into Action” in Abuja, bringing together energy stakeholders from across the region to advance efforts to reduce methane emissions from the energy sector.

As an Association country, Nigeria and the IEA will work more closely across a wide range of energy issues, including on the Agency’s engagement in sub-Saharan Africa. Created in 2015, the IEA Association programme allows the Agency to deepen ties with its partner countries, bringing together major energy-producing and consuming countries from around the world. Nigeria joins a network of 13 other Association countries that work with the IEA to advance secure, affordable and sustainable energy systems worldwide. As a result of this expansion, the IEA Family’s share of global energy demand has increased from 40% in 2015 to over 80% today.

Dana Gas reports good operational results

Dana Gas PJSC, the Middle East’s regional private sector natural gas company, has announced encouraging results from its Egypt drilling programme, together with the receipt of additional payments totalling AED 79 million (US$21.5 million), marking the full settlement of all overdue receivables in Egypt and the continuation of payments by the Egyptian Government

The progress achieved in Egypt reflects the combination of an improved fiscal framework under the Consolidated Concession Agreement, constructive cooperation with the Egyptian Government, the closure of all overdue receivables, and Dana Gas' continued investment in its asset base. The full settlement of overdue receivables and continued timely payments have strengthened the business’ confidence in further investment in Egypt, alongside the Government’s ongoing efforts to encourage upstream investment, increase domestic gas production and reduce reliance on imported LNG.

Dana Gas has been actively executing its US$100mn investment programme, focused on stabilising production and restoring growth across its Nile Delta portfolio. The company delivered a return to production growth in the first quarter of 2026, with average production increasing 4% year-on-year to 13,060 boepd, marking the first increase in output since 2017.

In 2025, the company successfully drilled four wells and carried out workovers across three additional wells, adding approximately 30 MMscf/d of production and 36 Bcf of reserves.

More recent drilling activity has delivered results significantly above expectations. The latest well has identified an estimated 10 Bcf of gas reserves, significantly exceeding the original prognosis of 3 Bcf. The result opens up additional development and exploration opportunities across the licence area and has the potential to contribute approximately 12 Bcf of future gas resources once developed. Dana Gas plans to drill four further wells before the end of 2026.

Richard Hall, chief executive officer, said, “The Egyptian Government’s settlement of all outstanding receivables and the return to full, timely payments are important developments that give us greater confidence to continue investing in Egypt. Combined with the progress we have made operationally over recent months, this demonstrates the benefits of the investment programme that we continue to execute. 

"We are already seeing tangible operational results. Production returned to growth in the first quarter for the first time since 2017, and our latest well results have exceeded expectations.

"The most recent well has identified significantly more gas resources than originally anticipated, highlighting both the quality of our acreage and the opportunities that remain across our portfolio. The result opens up additional development and exploration potential and further strengthens our confidence in the long-term outlook for the Egypt business."

Hall also acknowledged the support of the Ministry of Petroleum and Mineral Resources, EGPC and EGAS, and their efforts to encourage investors in the energy sector to increase domestic gas production and reduce country’s dependence on gas imports.

These efforts are paying off, with a number of discoveries being made recently. They include the oil and gas discovery by Agiba Petroleum Company, the joint venture between the Egyptian General Petroleum Corporation (EGPC) and Eni, in the Western Desert; a gas discovery made by Eni in the Nile Delta region, following its gas and condensate discovery in the Temsah concession in the Eastern Mediterranean; and a gas discovery by the USA's Apache, in collaboration with EGPC, in the Western Desert.

The US$750mn facility was born out of an innovative capital mobilisation strategy. (Image source: Heirs Energies)

Nigerian company, Heirs Energies Limited's dual-tranche senior secured reserve-based lending (RBL) facility was bestowed with the Best Oil & Gas Deal of the Year title at the EMEA Finance Project Finance Awards 2026

The US$750mn facility was born out of an innovative capital mobilisation strategy to become self sufficient in local resources exploration. Heirs Energies successfully translated this vision into reality with African Export-Import Bank's support as it helped in project execution.

The facility aims to accelerate field development, optimise production, and support Heirs Energies' long-term growth ambitions, while maintaining disciplined capital management.

Commenting on the recognition, Osa Igiehon, chief executive officer of Heirs Energies, said, "This recognition reflects the confidence that African and international financial institutions continue to place in Heirs Energies, our strategy, and our long-term vision. The transaction demonstrates that indigenous African energy companies can successfully structure and execute world-class financing solutions that support investment, growth, and value creation. We are proud to receive this award and grateful to our financing partners, advisers, and stakeholders whose support made it possible."

Haytham ElMaayergi, executive vice president, Global Trade Bank at Afreximbank, said, “We are truly honoured that the US$750 million dual-tranche Senior Secured Reserve-Based Lending facility for Heirs Energies has been recognised as Best Oil & Gas Deal of the Year by the EMEA Finance Project Finance Awards.

"This recognition underscores the importance of well-structured, Africa-focused financing in supporting indigenous energy companies with strong governance, high-quality assets and clear long-term growth plans. Afreximbank was proud to support this landmark transaction, which demonstrates how African financial institutions can help mobilise capital for strategic businesses that advance energy security, production capacity and sustainable value creation across the continent.

"We congratulate Heirs Energies and all the partners involved in the transaction and are pleased to see this important financing recognised on such a respected international platform.”

Samuel Nwanze, executive director and chief financial officer of Heirs Energies, said "This award validates the strength of the transaction and the confidence our financing partners placed in Heirs Energies.
The facility was designed to support our long-term growth strategy, enabling continued investment in field development, production optimisation, and sustainable value creation. We are pleased to see the transaction recognised on such a respected global platform."

The oil price has risen further with the escalation of hostilities between the US and Iran, with Brent crude standing at around US$86/bbl on Tuesday 14 July

Recent days have seen renewed US attacks on Iranian infrastructure, and Iranian attacks on US bases in the region as well as ships and oil tankers, along with President Trump’s announcement of a 20% fee on cargo transiting the Strait and a renewed blockade of Iranian ports.

Brent crude had fallen to around US$70/bbl earlier this month following the announcement of the ceasefire, and the IEA had predicted in its July monthly oil market report that the market could return to surplus by the end of the year. This prediction looks to have been upended by recent events, with the risk to disruption to shipping once again raising the prospect of supply shortages.

“The escalation disrupts global energy supplies, with a near halt in ship navigation in the Strait of Hormuz, and heightens the risk of further escalation, including targeting oil production and refining infrastructure in the region, which could make the damage structural rather than temporary,” noted Samer Hasn, senior market analyst at XS.com. “…we saw widespread targeting of the Iranian mainland and islands and targeting of American bases at several points in the region, in addition to targeting ships and oil tankers, and these events are still recurring until the time of writing. To make matters worse, we saw an unexpected and sudden return of escalation between Saudi Arabia and the Houthis in Yemen.

“With this stormy series of events, we must calmly rearrange our hypotheses. I believe we are now in a round of negotiating under fire, following the failure at the table after the signing of the recent memorandum of understanding. The major obstacle lay in reaching an understanding regarding the implementation of the fifth article of the signed memorandum of understanding, which concerns the management of the Strait of Hormuz.”

“The latest developments have shifted market focus from oversupply concerns to the risk of prolonged disruptions to Gulf energy exports, with the duration of US enforcement measures and the security of Hormuz now likely to determine whether oil prices remain elevated,” commented MUFG Research.

Crispus Nyaga, research analyst at Empire FX, said, “Looking ahead, prices could extend their climb, potentially nearing previous highs, should shipping through the Strait of Hormuz come under severe restrictions and regional security deteriorate further. However, efforts by Gulf oil exporters to circumvent the waterway could help ease the upside pressure to some extent. A return to diplomatic talks and a formal end to military operations could support a recovery in maritime traffic, allowing energy exports to normalise and prices to ease gradually, although this scenario could remain unlikely over the short term.”

Tolls in the Strait now look impossible to avoid, commented deVere Group’s CEO Nigel Green. “Investors keep treating Hormuz disruption as a spike that fades once the fighting stops. This time, for me, looks different,” he said.

“Once a toll exists in practice, taking it away again becomes its own political fight. I would price this as a permanent cost of moving global energy, not a headline that blows over.”