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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. 

 



The West African country will be an ideal host to AEB. (Image source: African Energy Chamber)

Following a meticulous review process by the Africa Energy Bank Headquarters Ministerial Selection Committee, Abuja, Nigeria, emerged to be the unanimous choice made during the 45th Extraordinary Session of the African Petroleum Producers’ Organisation Ministerial Council chaired by the Minister of Hydrocarbons of the Republic of the Congo, Bruno Jean Richard Itoua

The strategically rich Nigeria fell perfectly in place with the criteria of judgement that prioritised socio-economic factors, safety, security and accessibility. Honouring the decision, Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources (Oil), assured the Council that the country will provide the necessary facilities for the bank’s timely and effective establishment. 

Nigeria beat Algeria, Benin, Côte d’Ivoire, Ghana and South Africa, that were also competing for the position

Garnering international attention

Nigeria has garnered investment interests not just from international oil majors, but supranational institutions like the World Bank which approved a US$2.25bn package to the country last month as assistance for oil revenue management, fiscal sustainability, economic growth and public services enhancement. Last year, the country successfully weilded a series of strategic engagements with 15 international and national oil and gas companies working in Nigeria – Chevron, TotalEnergies, Shell, NAOC, ExxonMobil, Seplat, Heirs Holdings, Waltersmith, First E&P to name a few. These talks resulted in significant investment opportunities with an estimated US$55.2bn by 2030, of which US$13.5bn is expected to be invested in 2024. 

TotalEnergies, for instance, reached US$550mn final investment decision (FID) with the Nigerian National Petroleum Corporation in June to develop the Ubeta gas field

The West African country will thus be an ideal host to AEB that aims to address Africa's oil and gas funding challenges in the face of global energy transition. A joint venture by APPO and African Export-Import Bank (Afreximbank), AEB will focus on financing both fossil fuels and renewable energy sources across the continent with an initial share capital of US$5bn.

Digitalisation in the African Oil & Gas sector. (Image source: Adobe Stock)

As the world focuses on sustainability, oil and gas operators are finding innovative ways to maximise yield and minimise environmental impact

Digitalisation continues to be one of the most efficient ways to overcome the operational challenges associated with achieving these objectives. From airborne surveys to process automation to digital oilfield technologies, tech providers are presenting an array of choices for operators. 

Our upcoming report on Digitalisation in the African Oil & Gas sector will shed light on some of these ground-breaking efforts in the region.

With an up-close analytical approach, the report will be exploring the following topics: 

Embracing digitalisation: Digitalisation is the key for operators to optimise operations and achieve cost efficiency, while also limiting environmental adversities. 

Sustainable solutions: An in-depth look at how operators in Africa are navigating the global challenges of climate change and meeting energy security needs.

Innovative technologies: From production optimisation to emissions reduction, discover the latest digital advancements and disruptive solutions in the African oil and gas industry

Fill out the form HERE to be a part of this report and secure the significant role of driving Africa's oil and gas innovations. 

ADIPEC has made enabling action to overcome the new global energy trilemma a major focus of its 2024 edition. (Image source: dmg events)

Christopher Hudson, President of dmg events, writes on how ADIPEC is facilitating conversations around the global energy transitions

The energy trilemma of the past has evolved to reflect the challenges of our current moment. While before, global leaders were concerned with the supply of energy that was secure, affordable, and sustainable, today the challenge is to provide the world with energy that is secure, sustainable and equitable. Equitable encapsulates the previous trilemma definition’s energy affordability, as well as accessibility and the socio-economic impacts of energy in a country. This is of particular importance as the development levels and quality of living gaps between the Global South and North close.

While this new trilemma definition encompasses more needs, making it more complex to resolve, the broad solutions are still the same. Major action needs to come from the global energy industry, which must continue to lead efforts to decarbonise and drive efficiencies through Artificial Intelligence (AI) and technology.

Critical to overcoming the current energy trilemma is the introduction of more low and zero-emission energy sources, like liquified natural gas, green hydrogen, solar, wind, and biofuels. These fuels can help provide an increasing number of the low-carbon energy molecules the world needs. Related to this is transitioning industries that previously ran on fossil fuels - like the hard-to-abate sectors of transportation, cement and steel production, and shipping - to running on low or zero-emission electricity.

Supporting a shift from coal-powered electricity to clean energy-powered electricity in Asia alone - which currently accounts for 82% of the world’s coal generation - could have vast benefits. Clean energy-powered industrial activity across Asia could advance the decarbonisation of many of the continent’s heavy industries while significantly reducing global carbon emissions. Achieving such large-scale changes requires supportive policy frameworks, financial incentives and tax breaks, clean energy finance and investment, and technology development.

And while the end goal of the energy transition is an energy system that is effectively zero carbon, it will take time to develop, commercialise, scale, and implement the technologies and systems that can do that. In the interim, we will continue to use energy sources that produce carbon but must do so while reducing their emissions impact. That is why the global energy industry needs to continue its efforts to develop and incorporate Carbon Capture, Sequestration and Utilisation (CCUS) and Direct Air Capture (DAC) technologies, which can help ensure that the hydrocarbons we use do not contribute to climate change. In parallel, government and industry should support the many startups that are working to turn captured carbon into useful products like graphene, polymers, concrete, and even biofuels.
Another key element to solving the energy trilemma is to increase the focus on energy efficiency. The International Energy Agency (IEA) estimates that around two-thirds of the total prime energy of the world goes to waste - primarily through energy leaks and ineffective energy use. This otherwise wasted energy could be considered an untapped energy source that the industry can harness through improved energy efficiency. This can be done through the integration of digitalisation technologies, like machine learning and AI.

The last critical component of the energy trilemma looks to address that third expanded need - energy equity. The pursuit of energy equity is about ensuring that no one is left behind in the global energy transition. Achieving it is not as simple as developing new clean energy technologies or implementing mega projects in places like Europe and North America. In many parts of the Global South, any type of energy supply is lacking, let alone clean energy. The energy industry must prioritise fair access to clean energy, ensuring the benefits of access to secure, clean energy reach vulnerable communities.

This can be achieved through collaborative efforts between the Global North and South to promote equitable distribution of resources and technologies. This collaboration needs to include technology transfer, access to finance and investment, and the development of customised solutions to create energy systems that are ideally suited for each unique market, instead of attempting to shoehorn solutions borrowed from the Global North.

Recognising the importance of bringing together the wider global energy industry to accelerate efforts to resolve these complex issues, the world’s largest energy event ADIPEC has made enabling action to overcome the new global energy trilemma a major focus of its 2024 edition. With our Strategic Conference gathering the world’s decision-makers and innovators, we will facilitate a meeting of minds across diverse sectors and geographies, forging the alliances and collaborations necessary to re-engineer the global energy system.

By platforming visionaries on critical topics, the conference will harvest insights on the latest thinking, trends and solutions around emissions, energy efficiencies and disruptive technology needed to advance global energy transitions. This mission is supported by the introduction of three new dedicated conferences - Digitalisation and Technology, Finance and Investment, and Voices of Tomorrow. These will spotlight industry progress and inspire collaborative and equitable action to fully unlock the opportunities presented by the integration and adoption of Fifth Industrial Revolution technologies.

Through ADIPEC’s timely agenda, the energy trilemma’s needs for decarbonisation, energy efficiency, and Global North-South collaboration will be advanced. ADIPEC’s gathering of the wider energy industry will facilitate the inclusive, meaningful and action-oriented dialogue needed to ensure that clean energy access reaches all corners of the world. 

For registrations, visit:  

Register as a visitor 

Register as a delegate

This article has been originally published on Upstream