Permanently storing carbon dioxide generally has better sustainability credentials than utilising CO2. (Image source: Adobe Stock)

While covering all aspects and technologies of the CCUS value chain, a new report by IDTechEx titled 'Carbon Capture, Utilisation, and Storage (CCUS) Markets 2025-2045: Technologies, Market Forecasts, and Players' has interestingly noted how policymakers and key industrial players are focusing more on carbon dioxide storage, increasingly dropping the 'U' (utilisation) from discussions at conferences and expos

The report has found that by 2045, the world will be sequestering 1.6 gigatonnes per annum of CO2 underground, as dedicated geological storage of carbon dioxide will outpace enhanced oil recovery as the end result for CO2 capture. Major oil and gas players such as Shell, Equinor, and Chevron are leveraging decades of subsurface expertise to open-up storage in saline aquifers.

Permanently storing carbon dioxide generally has better sustainability credentials than utilising CO2. This is because permanently sequestering CO2 captured from an industrial process in dedicated underground storage is a net-zero process (or even net-negative for some CO2 sources). In contrast, captured CO2 returns to the atmosphere on short time scales for several CO2 utilisation applications, such as when a fuel synthesised from CO2 is combusted. Storing CO2 is therefore better suited to meeting emission reduction targets.

For industry stakeholders from the African energy market, CCS will be vital in attracting energy investments and eradicating energy poverty from the continent.

Decarbonising oil & gas assets

Fossil fuel infrastructure won’t disappear overnight, but existing assets can be decarbonised. New CCUS enhanced oil recovery projects are still expected in the future because the oil produced by this method has a much lower carbon footprint than typical oil extraction. Alternatively, drop-in replacements to fossil fuels can be made by utilising CO2, such as CO2-derived e-fuels. Such low-carbon fuels are seeing demand from the aviation and maritime sectors, where full electrification remains unfeasible for decarbonisation.

In the Middle East and North Africa (MENA) region, the Habshan Carbon Capture, Utilisation and Storage project is one of the largest carbon capture projects that will have the capacity to capture and permanently store 1.5 mn tonnes per annum (mtpa) of carbon dioxide (CO₂) within geological formations deep underground.

The project could reduce the fleet’s GHG emissions by up to 10%. (Image source: Opsealog)

Offshore data integration and analysis provider, Opsealog, has been awarded a two-year contract with Azule Energy to reduce fuel consumption and greenhouse gas (GHG) emissions from its offshore supply vessel (OSV) fleet

Through enhanced data collection, integration and analysis, the project could reduce the fleet’s GHG emissions by up to 10%, according to initial estimates by Opsealog.

The agreement covers 28 OSVs in the first year, expanding to Azule Energy’s full fleet of 33 vessels in 2025. The main objective is to reduce the fleet’s fuel consumption and greenhouse gas emissions, supporting regulatory compliance and Azule Energy’s own environmental commitments.

Opsealog’s e-reporting system Streamlog will fully digitise onboard reporting and deliver real-time vessel tracking for the fleet, which is operated across three oil blocks in Angola. This data will be integrated and analysed through Opsealog’s Marinsights platform to provide in-depth insights that will help boost operational efficiency, reduce fuel consumption and emissions, and maximise vessel safety and reliability.

By optimising operations, the project will help Azule Energy address challenges such as the frequent need for vessels to move urgently between the different blocks. It will use data-driven insights to develop a cost allocation system per block, tackling the additional costs and emissions associated with vessel scheduling deviations.

Luis Buezas Jiménez, international business manager at Opsealog, said, “This partnership with Azule Energy demonstrates how digitalisation is an essential foundation for progress on a wide range of operational aspects in the offshore sector – including the industry’s chief priorities of safety and sustainability. Through enhanced data collection and integration, teams will be equipped with data-driven insights to immediately improve operational efficiency and reduce harmful emissions. We are proud to embark on this project and support Azule Energy’s ambitions of delivering responsible energy development for the communities of Angola.”

The Olo and Olo West Fields were formerly part of OML 58. (Image source: Adobe Stock)

Aradel Holdings Plc, through its subsidiary, Aradel Energy Limited, has signed a sale and purchase agreement to acquire the 100% interest in the Olo and Olo West Marginal Fields from TotalEnergies EP Nigeria and NNPC Limited

The Olo and Olo West Fields were formerly part of (oil mining license) OML 58.

The acquisition was completed for a consideration of US$16mn, plus US$3.5mn of deferred and conditional payments. The petroleum mining lease (for Olo) and petroleum prospecting license (for Olo West) will be issued after the payment of relevant Ministerial Consent fees and completion of approved field development plans within designated timeframes.

If exercised, the Option Agreement will increase Africa Oil’s Impact shareholding to 39.5%. (Image source: Adobe Stock)

Africa Oil Corp has announced that it has signed a call and put option agreement with three shareholders (selling shareholders) in Impact Oil and Gas Limited to purchase a material 7.0% interest in Impact (option agreement)

If exercised, the Option Agreement will increase Africa Oil’s Impact shareholding to 39.5%.

Africa Oil chief executive officer, Roger Tucker, said, “Through our shareholding in Impact we have exposure to an exciting opportunity set in Namibia’s Orange Basin, including the Venus oil discovery, and a highly prospective exploration and appraisal programme on Blocks 2913B and 2912. This purchase achieves the company’s objective of materially increasing its ownership in Impact, enhancing its rights and influence over a core strategic asset and value driver for Africa Oil.”

Under the Option Agreement, the company has the right to acquire an additional 80,160,198 shares in Impact at an exercise price of GBP 0.57 per share for a period of up to six months (“Option Period”) from the Option Agreement’s signing date of 27 August 2024. The company has purchased the call option feature at a price of GBP 0.08 per underlying Impact share. If Africa Oil has not exercised its call option by the end of the fourth month post the Signing Date, Selling Shareholders have the right to put their Impact shares to Africa Oil at an exercise price of GBP 0.57 until the expiry of the Option Period.

If the Option Agreement is exercised, Africa Oil will hold 449,464,396 shares in Impact representing a 39.5% shareholding position on a fully diluted basis.