68% of methane emissions stem from upstream facilities. (Image source: Adobe Stock)

The energy sector presents the largest and most cost-effective opportunity for methane emissions reduction, with 68% of methane emissions stemming from upstream facilities, according to Momentick’s 2024 Methane Emissions Report

Momentick, a leading emissions intelligence company, which leverages the power of hyper and multispectral satellites to monitor GHG emissions on a planetary scale, detected emissions at 17% of the sites analysed, measuring a staggering 899 million tons of CO2-equivalent emissions, with 10% of assets accounting for 50% of the emissions detected. The highest concentration of methane leaks was detected in Asia, Africa, and North America, while Europe recorded the fewest leaks.

Methane is a colourless, odourless gas, which requires highly sensitive instruments for detection. Methane leaks can manifest as both diffuse, small emissions and large, concentrated bursts, complicating the consistent identification of leaks. Environmental factors, such as wind, temperature, and terrain, further hinder accurate detection and measurement, as methane plumes disperse quickly, making it difficult to trace emissions back to their sources.

Unlike CO2, methane emission reductions have an almost immediate effect on slowing global warming as methane has a relatively short atmospheric lifespan compared to CO2. By urgently tackling methane emissions, the rate of warming could be slowed by as much as 30% before mid-century, according to Momentick.

The International Energy Agency (IEA) estimates that over 75% of the methane emissions in the oil and gas sector could be reduced today using existing technologies, while research conducted by JP Morgan has found that methane abatement is a cost-effective investment, revealing that up to 70% of the expenses associated with monitoring solutions can be offset by keeping methane in the pipe.

Addressing the issue of poor emissions data

The Momentick report notes that evolving regulations and financial incentives have highlighted the critical need to address the longstanding issue of poor emissions data, with accurate and reliable information needed for decision-makers to implement effective methane abatement strategies. The growing need for accurate and actionable emissions data is driving the expansion of space-based methane monitoring satellites, while advanced algorithmic software solutions are leveraging Earth observation satellites to enhance commercial applications and precise point-source methane detection. By analysing historical data captured by these satellites, researchers and decision-makers can track emission trends over time, gaining deeper insights for regulatory planning and climate action. Additionally, with cutting-edge developments in AI, satellite-based emissions data can now be processed in near real-time, delivering timely and actionable insights.

“2024 was an important year on the path to curbing methane emissions,” said Daniel Kashmir, CEO of Momentick in his Foreword to the report. “Governments committed billions to technological upgrades and research, while oil and gas operators accelerated progress towards their net-zero goals. Collaborating with a wide variety of stakeholders across the energy sector, our team at Momentick encountered a strong commitment to action and eagerness to implement our emissions intelligence technology over the last year.

“We envision satellite-based emissions monitoring becoming central to corporate sustainability strategies during the energy transition. The integration of GHG monitoring and MRV practices will become a standard component of operations across industries. Backed by evolving regulations and growing adoption, these technologies will make net-zero goals truly achievable.”

NAOC acquisition has been a key highlight for the company in 2024. (Image source: Adobe Stock)

The 2024 financial results for Oando Plc has primarily been driven by the Nigerian Agip Oil Company acquisition, recording a 45% revenue growth at N4.1 trillion from N2.9 trillion in 2023

Eni sold its Nigerian onshore wing NAOC ltd in July last year, in line with its 2023-2026 plan with a focus on upstream. 

“2024 was a year of transformation for Oando, the key highlight being our successful acquisition and subsequent integration of NAOC Ltd, which significantly enhanced our production capacity, attaining peak operated production of 103,206boepd and net entitlements of 45,000 boepd.

Despite a challenging operating environment, we achieved a 45% increase in revenue to ₦4.1 trillion, reflecting the strength of our business model, and a 9% rise in profit after tax to ₦65.5 billion, notwithstanding the costs associated with the onboarding of NAOC,” said Group Chief Executive, Oando PLC, Wale Tinubu.

Production in 2024 saw an increase to approximately 23,911 barrels of oil equivalent per day (boepd) from the 23,258 boepd achieved in 2023. 

There was a stark change in capital expenditures from US$52.3mn to US$18.1mn that included the development of oil and gas assets and exploration and evaluation activities.

Boosting production

Looking ahead to 2025, Tinubu said, “In 2025, our priority shall be to drive cost optimisation, operational efficiency, streamline processes, enhance procurement, and leverage technology to improve productivity across our operations. In parallel, we will intensify efforts to boost production through the dual approach of rig-less and workover initiatives while executing an aggressive drilling program across three rig lines.

Simultaneously, in collaboration with other stakeholders, we are proactively tackling above-ground security challenges by implementing a revamped security framework that integrates advanced surveillance technology and intelligence-driven initiatives to curb the perennial, unnecessary, and unjustifiable theft of oil to ensure the long-term integrity of our vast network.

As we look ahead to an exciting and successful 2025, we recognize that achieving our goals requires the unwavering support of our host communities and partners. Through extensive engagement, we will foster a collaborative ecosystem that not only secures our operations but also drives shared prosperity and sustainable development for all.”

Congo's Hydrocarbons Code which puts Congolese nationalists first. (Image source: Adobe Stock)

With an aim to enhance transparency and local integration, the Minister of Hydrocarbons Bruno Jean-Richard Itoua recently launched a registration campaign for subcontracting and service companies in the oil and gas industry

This comes as part of Congo's Hydrocarbons Code which puts Congolese nationalists first. It advances a comprehensive law on local content, with internationl partnerships forged on the basis of knowledge sharing and capacity building. This will allow the region to benefit from its rich natural resources through job ccreation, technology transfer and building local expertise.

In line with its economic goals, the government has established policies to ensure that Congo’s energy sector benefits local businesses and workers.

While the government sets the framework, private sector companies are taking proactive steps to promote local content. Energy supermajor TotalEnergies employs around 600 local staff in Congo compared to just 40 expatriates, showcasing it commitment to workplace integration. The company also invests in training and development programs to equip Congolese employees with the skills needed for higher-level roles. In June 2024, TotalEnergies committed $600 million to expand production at the Moho Nord offshore field, with a focus on involving local subcontractors and training programs.

Similarly, Italian multinational energy company Eni is investing in local workforce development. As part of its efforts to prepare for the launch of LNG production last year, the company trained 40 Congolese employees in liquefaction technologies. This initiative helped to ensure that Congo has the skilled workforce its needs to manage LNG facilities and reduce reliance on foreign specialists.

The new Trump regime might see increased US reach in Africa's oil and gas scene. (Image source: Energy Capital & Power)

As Donald Trump assumes US presidency, it is significant to evaluate how the development is going to impact US-Africa energy relations 

While Trump has mostly harped on advancing domestic energy production, his unabashed support for fossil fuels might influence Africa's oil and gas industry as US investors in the region benefit from his policies. 

Trump's previous administration saw several developments for Africa's oil and gas industry, including ExxonMobil's US$30bn Rovuma LNG development in Mozambique, Chevron's expansion in Angola’s deepwater Block 0, Kosmos Energy's discoveries offshore Senegal and Mauritania, resulting into the Greater Tortue Ahmeyim LNG project, and Marathon Oil's continued expansion in Equatorial Guinea through the multi-phase Gas Mega Hub. A significant part of these were made possible by initiatives such as Prosper Africa, which facilitated improved trade relations between the two nations. 

The new Trump regime might see increased US reach in Africa's oil and gas scene through financing mechanisms like EXIM Bank. The rising global pressure on Africa to embrace energy transition might ease as well under Trump's new energy policies.