Industry

Collaboration in research and development is of strategic importance. (Image source: NNPC Limited)

NNPC Limited has signed a memorandum of understanding (MoU) with the Algerian National Oil Company, Sonatrach, to advance partnership opportunities in research, development and innovation

The MoU with Sonatrach will be led by NNPC's Research Technology and Innovation (RTI) Division, in collaboration with the Petroleum Technology Development Fund (PTDF). The agreement framework was signed by NNPC's executive vice president - business services, Sophia Mbakwe, and Sonatrach's managing director, Khodjah Mohamed, during the latest African Petroleum Producers' Organisation (APPO) Forum for R&D Directors at the PTDF Tower in Abuja, Nigeria. 

While speaking of the significant players in advancing Africa's hydrocarbons sector, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri explained that the forum originated as a platform for navigating the global energy transition by leveraging funding, technology, and markets, and said, "The R&D forum tackles technology and expertise needs, the African Energy Bank addresses funding constraints, and the Central African Pipeline System supports regional oil and gas market integration."

"Collaboration in research and development is of strategic importance. The cost of innovation might be high, but the cost of obsolescence would be greater," said NNPC's chief financial officer, Adedapo Segun.

The Group chief executive officer of NNPC, Bashir Bayo Ojulari, fosters a vision for a unified strategic framework through which resources could be pooled, data integrated and risks shared across member countries. He also stressed on the rapid adoption of digital technologies, artificial intelligence and advanced engineering to improve upstream, midstream and downstream operations.

The APPO secretary general, Farid Ghezali, urged African petroleum producing countries to ensure research in the oil and gas sector produced solutions that are practical and directly relevant to the continent. "We must ensure that our research delivers solutions that are practical and of direct use to Africa," he said.

The meeting in Abuja was a success build upon the existing strong bilateral energy ties.

The group chief executive officer of the Nigerian National Petroleum Company Limited, Bashir Bayo Ojulari, has paid a visit to the United Arab Emirates (UAE) Ambassador to Nigeria, Salem Saeed Al Shamsi, at the UAE Embassy

The meeting in Abuja was a success as it build upon the existing strong bilateral energy ties between Nigeria and the UAE. The delegates discussed on several topics, ranging from upstream oil and gas investment opportunities, gas development and monetisation to crude oil trading and infrastructure financing. Both parties reaffirmed the sustained relations between the two nations, rooted in mutual respect and a shared commitment to long-term energy cooperation.

Ojulari reemphasised NNPC's role as a commercially driven entity, focused on advancing a solid portfolio of bankable projects across the entire energy value chain. He stressed that the company is welcoming of value-based partnerships with UAE institutions, such as Abu Dhabi National Oil Company (ADNOC), Abu Dhabi Investment Authority (ADIA), and National Petroleum Construction Company (NPCC).

The visit reinforces on previously expressed commitments between President Bola Ahmed Tinubu and President Mohammed Bin Zayed, as both countries are prioritising the translation of intent into concrete, mutually beneficial project outcomes. 

While strengthening its domestic capabilities, Nigeria is looking to build strong global partnerships as well to facilitate its holistic development. During the 2026 International Energy Week (IEW) in London, Ojulari had highlighted the importance of shared infrastructure, policy alignment, coordinated investment frameworks, cross-border knowledge and technology exchange, integrated gas market development, and sustained regional diplomacy among national oil companies (NOCs). 

Earlier in the year, NNPCL had issued bid calls for investors across the world with an aim to seek partners to share stakes with in some of its assets.

These assets besides, the Nigerian operator already shares several assets in the region with international oil companies, including Shell, Chevron, Eni, and TotalEnergies. 

“We are positioning NNPC Limited as a globally competitive energy company capable of delivering sustainable returns while powering the future of Nigeria and Africa,” said Ojulari.

The lifted barrels will be sold over the coming months.

PetroNor E&P ASA's latest lifting figures at 964,593 barrels of entitlement oil from the PNGF Sud field offshore Congo sets the company's record in single-lifting volumes with a significant overlift over 500,000 barrels

This comes even when production efficiency remained at 86% and not at full capacity due to an infrastructure interruption, which had nearly half of the wells to be shut-in for as many as 16 days in February. Once the wells were back in production during the following month after the completion of all repair works, gross daily output capacity at exit Q1 shot past 31,000 bopd (net 5,200 bopd). The five-well infill programme in Tchibouela East played a significant role in the production boost. 

The lifted barrels will be sold over the coming months with entitlement oil of circa 100,000 barrels per month.

The realised price of the sale will be determined according to the current market conditions and the lifting contract with ADNOC. This realisation will be announced at the end of April.

First quarter average net working interest production was 4,721 bopd, compared with 4,564 bopd in the previous quarter and 4,303 bopd in the first quarter of 2025.

Last year, PetroNor's yield saw a 90% improvement over its 2024 average of 86%. Its impressive lifting figures are attributable to a restocking of significant overlift position while building entitlement oil inventory. 

Most African economies are net importers of fuel and fertiliser.

The war involving Iran has moved from a geopolitical story to a supply chain shock -- and fast

At the centre of it all is the Strait of Hormuz. In normal times, roughly a quarter of global seaborne oil flows through that narrow channel. Today, it’s partially blocked, militarised and unpredictable. That matters more than most people realise, especially in Africa.

This is not just an oil story. Yes, oil is the headline. The International Energy Agency is already calling this the largest disruption in oil market history, with up to 30% of global oil flows affected. Prices are responding accordingly. Analysts are openly discussing US$150-US$200 per barrel scenarios if disruption persists into the next four to eight weeks.

But stopping at oil is missing the real risk. Because Hormuz doesn’t just move fuel. It moves, fertiliser, petrochemicals, plastics inputs and liquefied natural gas. And that’s where Africa gets hit hardest.

Across East and southern Africa, dependence on Middle Eastern supply chains is structural, not optional. Countries like Kenya, Tanzania, Ethiopia and Zambia are already implementing emergency measures, including subsidies and reserve releases. In parts of East Africa, over 50% of fertiliser imports come via these routes and globally, up to one-third of fertiliser trade moves through Hormuz.

And prices are moving fast; Urea prices are already up by 50% since the conflict began and fertiliser shortages are expected to impact planting cycles within weeks. That translates directly into higher food prices, lower yields and increased inflation. In economies where food already dominates household spend, that’s not a marginal issue. It’s systemic.

Fuel price shock hits logistics immediately

Diesel is the bloodstream of African logistics. As oil spikes, transport costs rise almost instantly. We can expect higher road freight tariffs, airline and shipping surcharges and margin compression across FMCG and retail

Shipping delays compound the problem

Major shipping lines have already rerouted vessels around the Cape of Good Hope, adding weeks to transit times. That means longer lead times, working capital pressure and more stockouts.

Fertiliser becomes the sleeper crisis

This is the one most executives will underestimate. Miss a planting window, and the impact shows up months later in food inflation, social pressure and currency weakness. 

Secondary shortages begin to emerge and this is where it gets messy:

Plastics (packaging constraints)
Chemicals (manufacturing inputs)
Even pharmaceuticals

The supply chain doesn’t break in one place—it ripples. The brutal reality is that Africa is a price taker. Most African economies are net importers of fuel and fertiliser and are highly exposed to global shipping routes which means there is very little control, only response.

The difference between businesses that weather this disruption and those that don't will not be found in strategy decks. it will be found in the decisions made over the next two to four weeks. Lock in supply now, even at uncomfortable prices, because in volatile markets availability will always beat price.

Selectively build buffer stock across fuel, critical imported inputs, and high-margin SKUs. Working capital will sting, but stockouts will cost more. It is important to reroute early, explore alternative ports, different origin countries, and split shipments before the options narrow.

Reset contractual expectations with both customers and suppliers without delay, because what was considered late last month is fast becoming the new normal. Run at least three disruption scenario -- two weeks, six weeks, three months -- and tie each directly to pricing, inventory policy and customer communications. Finally, watch fertiliser and food input prices closely: even if the business sits outside agriculture, its customers do not, and the ripple effects on patterns are coming regardless. The window to act is open. It will not stay that way.

This is not a distant war -- it is a supply chain event with immediate commercial consequences. Should the Strait of Hormuz remain unstable for another month, Africa will not simply absorb higher prices; it will contend with slower trade, tighter margins, and rising food insecurity. The uncomfortable truth is that the businesses which act early will appear paranoid today -- and exceptionally well-positioned in 30 days.

The article has been written by Ronald Mlalazi, president, Africa Supply Chain Confederation