Shell’s interest in the OML 118 PSC will rise to 67.5%. (Image source; Adobe Stock)

Shell Nigeria Exploration and Production Company (SNEPCo) has acquired TotalEnergies EP Nigeria Limited's 12.5% stake in the OML 118 production sharing contract (OML 118 PSC), an oil mining lease offshore Nigeria that includes the Bonga field

This raises Shell’s interest in the OML 118 PSC from 55% to 67.5%.

As the OML 118 PSC operator, SNEPCo currently produces from the Bonga field via the Bonga Floating Production Storage and Offloading (FPSO) vessel and announced the development of the Bonga North field in December 2024.

“Following our final investment decision on Bonga North last year, this acquisition brings another significant investment in Nigeria deepwater that contributes to sustained liquids production and growth in our Upstream portfolio,” said Peter Costello, Shell’s President, Upstream.

The transaction is likely to be completed before the year-end, given all regulatory approvals and closing conditions are in place. 

Also read: 

SNEPCo reaches FID on Bonga North offshore Nigeria

Africa's oil & gas industry needs policies that effectively attract sustainable investment. (Image source: Adobe Stock)

Interest in Africa’s upstream oil and gas sector continues to grow, with the proviso that effective governance, transparent policies and favourable fiscal terms are developed in-country 

To foster a sustainable investment environment, African governments must strike a delicate balance between attracting foreign capital and ensuring that investments serve the broader interests of their populations.

For Africa to realise its vast potential in the oil and gas sector, good governance is essential. Governments must establish transparent policies that instill confidence in investors. A commitment to political stability and robust regulatory frameworks not only attracts foreign direct investment (FDI) but also fosters an environment where businesses can thrive.

Key to this approach is the development of favourable fiscal terms that align with the interests of both the state and investors. By offering competitive tax regimes and incentives, governments can entice investors while ensuring that local communities benefit from the wealth generated by natural resources. This alignment is crucial in the context of the United Nations Sustainable Development Goals (SDGs), particularly SDG 7, which emphasises the need for access to affordable and sustainable energy for all.

A panel discussion I hosted during Africa Energy Week underscored the need for policies that effectively attract sustainable investment. African nations, rich in oil and gas reserves, face the challenge of translating these resources into tangible benefits for their populations. Investments should not only generate financial returns but also contribute to socio-economic development.

To achieve this, countries must develop comprehensive strategies that encourage local refining and the establishment of a robust petrochemicals industry. This minimises the export of crude oil and maximises the value retained within the continent, creating jobs and stimulating economic growth. Such a multifaceted approach not only enhances the value extracted from the continent's natural resources but also has far-reaching socio-economic benefits.

For instance, exporting crude oil in its raw form means losing a significant portion of its potential economic value. By investing in local refining capabilities, countries can process crude oil into finished products – such as gasoline, diesel, and various petrochemicals – before they are exported. This transformation allows nations to capture more value from their natural resources and reduce dependency on foreign refined products. 

This is the first of a two-part article written by Taona Kokera, director - head of infrastructure finance advisory at Forvis Mazars in South Africa

McLeod will also be the deputy director of the unit. (Image source: Adobe Stock)

Chevron Namibia's former subsidiary staffer, Carlo McLeod, has been appointed the special adviser to the Upstream Petroleum Unit, a new initiative by the Government to advance the country's globally attractive oil and gas sector

He will also be the deputy director of the unit, which is being supervised by Kornelia Shilunga, former Member of Parliament and ex-Deputy Minister of Mines and Energy. 

The Namibian President Netumbo Nandi-Ndaitwah has been implementing administrative upgrades for better regulation and hold over international-scale hydrocarbon projects that have seen a marked rise in the country.

McLeod's administrative as well as industrial expertise gives him an edge in streamlining public and private coordination in Namibia's oil and gas sector, a significant requirement given the growing interests from oil majors. Previously, he has been a practitioner in petroleum law, serving eight years as Deputy Director of petroleum affairs at the Ministry of Mines and Energy. This was followed by his brief stint in Chevron Namibia as deputy general manager. He has also actively addressed the issues of fuel smuggling in the country.

The newly formed Upstream Petroleum Unit has been set in line with the Government's plans to effectively commercialise Namibia's oil and gas resources, and leverage them for local upliftment.

The equipment will enhance the availability and reliability of power supply. (Image source: Wartsila)

Technology group Wartsila has concluded an engineering, procurement, and construction (EPC), along with a five-year-long operation and maintenance (O&M) agreement with Elektron Energy-affiliate Victoria Island Power Ltd for the installation of a power generation equipment for a new 30 MW power plant being set up on Victoria Island in Lagos

The equipment will enhance the availability and reliability of power supply from the natural gas-run power plant.

“Elektron has conceptualised, developed, and funded the IPP and has secured the implementation by engaging  Wartsila to assume single point responsibility for the major construction and operational aspects related to the eventual power generation facility. This pioneering project relies on reciprocating internal combustion engine (RICE) technology that has the efficiency and flexibility to deliver clean and reliable electricity to our customers,” said Deen Solebo, co-CEO and CFO at Elektron Energy.

“ Wartsila’s core competence in the engine power plant and services aspects represents a unique combination of a global company with a local presence that provides developers and financiers the comfort to invest and gives end-customers the confidence to sign up for PPA’s with medium to long-term tenures. The  Wartsila solution is extensively adopted by industrial, utility and IPP customers worldwide and the excellent credentials and track record have been recognised as a great value proposition by lenders, insurance companies, and multi-lateral funding institutions,” said Marc Thiriet, energy business director, Africa at  Wartsila Energy.

“Elektron is especially grateful to the invaluable contributions of its institutional investors and funding partners who have made this project possible including ARM Harith Infrastructure Fund LP, Nigerian Sovereign Investment Authority, InfraCredit, Bank of Industry, FBN Quest, and Stanbic Infrastructure Partners,” Deen added.

The facility will comprise three Wartsila 34SG gas engine-generator sets with related auxiliaries and is configured to accommodate an extension with one additional engine-generator set at a later stage. The Wärtsilä modular power plant design concept enables this in a cost-effective manner with minimal disruption to ongoing operations.