Bank One aims to become 'Africa’s preferred gateway'. (Image source: Bank One Limited)

Sub-Saharan Africa and Mauritia-focused Bank One has noted a concentration of deals in the oil and gas, as well as infrastructure sectors, when it comes to the Middle East's investment interests in Africa 

As part of its long-term strategy to expand footprint and position itself as 'Africa’s preferred gateway', Bank One met with the Gulf region's key financial sector players to understand how Mauritius can form a league with financial institutions in the Middle East to fund impactful projects in sub-Saharan Africa. 

The sub-Saharan Africa, especially in the oil and gas area, certainly requires renewed strategies as analytics company GlobalData noted a shift of international oil companies (IOC), in the recent years, from high-risk investments towards lower-carbon interests. 

This comes following a Comprehensive Economic Partnership Agreement that was signed by Mauritius and Dubai in December 2023, as Bank One aimed to explore the full potential of the deal, reaching the right partnerships to understand how such economic cooperation can be realised on the ground.

“At Bank One, we were recently privileged to meet with key players from the Gulf region and explore the financial landscape in the Middle East through an expert eye. This has helped the Bank One leadership team form a nuanced view of what this region means to us, and we are keen to impart insights to other banks or financial institutions who would like to explore this region. Indeed, we view collaboration among various financial sector stakeholders as key to realising the potential of the Mauritius-Middle East partnership,” said Thavin Audit, deputy head of corporate and investment banking at Bank One.

Ready domestic market

The oil and gas sector in Africa has immense potential, with the continent’s gas reserves in 2021 estimated at 625.6 trillion ft which is nearly equivalent to that of the US. Significantly, once a major oil or gas discovery is made, the biggest challenge for African governments and their commercial partners is finding sources of finance to develop projects. There is, however, a ready domestic market for such output, with the Gas Exporting Countries Forum noting that the demand for energy in Africa is expected to rise 82% by 2050 with natural gas making up 30% of their energy mix. 

Counting on robust growth due to huge sector demands, the continent is also anticipating the Africa Energy Bank which is set to be established in Nigeria with an initial capital of US$5bn. 

The huge demand for funding adequate energy infrastructure among other industries is particularly prominent in Africa. Soberingly, when it comes to infrastructure in Africa, bridging the financing gap is a major challenge, with the AfDB estimating between US$130bn and US$170bn required for infrastructure development each year. 

Contract discussions on Block KON 15 are ongoing. (Image source: Adobe Stock)

Afentra plc has been officially awarded the onshore Angola license KON 19 by Presidential Decree, which was signed with the Agência Nacional de Petróleo, Gás e Biocombustíveis (ANPG) 

Afentra now holds a 45% non-operated interest in KON 19 alongside two local Angolan companies ACREP and Enagol. While ACREP is the operator with 45% interests, Afentra and Enagol remains the non operators with 45% and 10% interests respectively. 

Contract discussions on Block KON 15 are ongoing and continue to make progress. 

Blocks KON 19 and KON 15 are parts of Tender 2023 that ANGP launched last year for the concession of 12 onshore oil blocks in Angola’s onshore Lower Congo and Kwanza Basins.

Significant potential

Spread across 25,000 sq km, the onshore Kwanza basin has remained under-exploited even though its discovery dates back to 1955. Both KON15 and KON19 blocks are high-graded by Afentra as they have good signs of a working petroleum system. The blocks are adjacent to both legacy oil fields that are currently being appraised for potential re-development and existing infrastructure allowing rapid commercialisation.

"We are very pleased to have been formally awarded this new license, which further enhances our strategic position in Angola. The license expands Afentra's footprint in this attractive market and further diversifies our portfolio with a low-cost onshore block with significant potential. We look forward to bringing our technical expertise in support of our local Angolan Operator as we collaborate to define the full potential of this license. We will update the market fully on our onshore strategy and work programme upon completion of the onshore award process," said CEO Paul McDade. 

In June, Afentra completed the Azule acquisition offshore Angola with a 12% non-operating interest in Block 3/05, and 16% non-operating interest in Block 3/05A.

The onshore-focused NAOC is also involved in Nigeria's power generation industry. (Image source: Adobe Stock)

Eni has received formal consent from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for the sale of its Nigerian onshore wing Nigerian Agip Oil Company (NAOC) to Oando Plc

Having already obtained all other relevant local and regulatory authorities’ authorisations, this move will allow Eni to proceed to the completion of the transaction for the sale of the onshore-focused NAOC that is also involved in Nigeria's power generation industry, to energy company Oando. 

The transaction is in line with Eni's 2023-2026 Plan, whereby the upstream will supplement the core organically led growth with inorganic high-grading activity, adding resources with incremental value while divesting resources that can offer greater value and opportunities to new owners.

NAOC Ltd participating interest in SPDC JV (Shell Production Development Company Joint Venture - operator Shell 30%, TotalEnergies 10%, NAOC 5%, NNPC 55%) is not included in the perimeter of the transaction and will be retained in Eni’s portfolio. 

Deepwater and LNG focus

Eni will devote its Nigerian focus to deepwater projects and LNG.

According to a GlobalData prediction for 2023-2027, Nigeria will lead Africa in terms of the upcoming capacity in the region with 1,990 ktpa, as the continent might contribute about 18% of the global small-scale LNG liquefaction capacity.

Furthermore, the company is developing plans for economic diversification in the country which include assessing the potential production of agri-feedstock for Enilive biorefineries and various nature- and technology-based projects, such as clean cooking initiatives, to offset emissions.

Eni has been operating in Nigeria since 1962, actively engaging in hydrocarbon exploration and production, as well as power generation. Currently, Eni has a substantial portfolio of assets in exploration and production, with an equity production of approximately 40,000 barrels of oil equivalent per day net of NAOC contribution. Eni also holds a 10.4% interest in Nigeria LNG. 

The acquisition significantly enhances Angola's energy security. (Image source: African Energy Chamber)

PAC Capital Limited has announced the completion of a US$443mn acquisition facility for Etu Energias

The deal involves the acquisition of Galp’s stake in Block 32, Block 14, and Block 14K offshore Angola. This transaction follows the recent completion of a US$3.3bn pre-export facility in Nigeria by PAC Capital. 

This marks Galp's gradual shift from Angola's upstream space, as it continues to remain invested in Namibia, from where it recently reported positive results from Mopane-1X well testing. 

Humphrey Oriakhi, managing director of PAC Capital, said, “This transaction provides the opportunity for another African company to make inroads into these strategic assets, previously dominated by International Oil Companies (IOCs), thereby giving a significant advantage for majority stakes.”

Bolarinwa Sanni, senior director at PAC Capital, said, “This deal is not just a significant milestone for Etu Energias but also a transformative step towards strengthening local ownership and control of key energy assets in Angola. We are proud to have facilitated this landmark transaction.”

The acquisition transaction, which was finalised on the sidelines of the 31st Afreximbank Annual Meetings (AAM) and the third AfriCaribbean Trade and Investment Forum (ACTIF) in Nassau, Bahamas, includes Galp’s 5% non-operating stake in Block 32, 9% non-operating stake in Block 14, and 4.5% non-operating stake in Block 14K.

Etu Energias enters deepwater production

“The close collaboration between the different parties was fundamental to the success of this business, which represents Etu Energias’ entry into deepwater oil production. The conclusion of this transaction demonstrates the resilience of our company and represents a huge step in our strategy to build a profitable and diversified portfolio,” said Edson R. Dos Santos, Etu Energias´s chairman and CEO. “PAC Capital’s expertise and dedication were instrumental in securing this acquisition. Their skilful strategic fund arrangement ensured the successful closure of this complex transaction, positioning us to become a leading player in Angola's oil and gas sector.”

This acquisition significantly enhances Angola's energy security by empowering local companies to own strategic petroleum assets, thereby strengthening the nation’s energy sector. It marks a pivotal moment in the ongoing effort to boost local participation and leadership in the oil and gas industry in Angola. 

The Covid-19 pandemic became a local content enabler for Angola, increasing the involvement of nationals and local petroleum companies since 2020.