Energy
Sahara Group Urges Collaboration, Investments In Sustainable Energy In Africa
Africa requires enabling energy policies, effective regulatory frameworks, investments, and collaboration to meet soaring energy needs across the continent, Wale Ajibade, Executive Director, Sahara Group has said.
Addressing top energy operators, regulators, and government functionaries at the 2023 African Refiners and Distributors Association (ARDA) Week in Cape Town, Ajibade said the current level of global investments on renewable energy was inadequate to enable Africa embrace more alternative energy sources.
Ajibade who delivered a paper titled, “Meeting Africa’s Growing Energy Requirements in the Evolving Global Landscape,” said adequate policies were vital for African countries to address foreign investors’ concerns and limit investment risks exposures.
“Over the past two decades, global investment in renewable energy has grown rapidly. Yet less than three per cent of these investments come to Africa. Africa continues to receive only a small portion of the total global investment in renewable energy,” he said.
He said the continent needs to work together to transform inherent risks and inefficiencies in the system into opportunities for ramping up energy supply from multiple sources.
“Our individual differences as countries within this continent only serve to strengthen the brilliant and colorful fabric of our cultures. With boots on ground, in over 24 African countries, we as Sahara Group know more than most that what works in one location may not necessarily be what works in the other. We have always had to overcome our challenges and propel ourselves forward by ourselves and for ourselves as Africans,” he said.
He noted that despite the dearth of investments, Africa could still strive towards meeting the continent’s energy needs through collaboration and prioritizing “the African narrative for Africans by Africans”.
“Africa will meet its growing energy requirement in the evolving global landscape, but we will do it the African way. This will be done drawing on collaborations and best business practices, embracing our diversities in cultures but always steadfast in moving forward and bringing energy to life responsibly,” he said.
He added: “As we gradually transition to renewable energy, the conditions for solar power literally shine as bright as the sun on this continent. The potential for wind energy blows through our continent ceaselessly. Africa has amongst the largest untapped potential for hydropower development and as we all know we have just begun to scratch the surface of natural gas.”
Ajibade noted that some countries on the continent were already promoting several policies and regulations to ramp up capacity for renewables in Africa.
“Case in point – solar power: Nigeria’s photovoltaic power potential makes solar energy very feasible for both investors and consumers. Sahara Group is currently harnessing this potential through the implementation of large-scale and mini-grid solar projects,” he stated.
L-R:
Executive Director, Sahara Group, Wale Ajibade, Global Head, Afrexim Bank, Mr. Rene Awambeng, and Executive Secretary, African Refiners and Distributors Association (ARDA), Mr. Anibor Kragha at the ARDA Week 2023 in Cape Town, South Africa.
On the growing importance of gas as a transition fuel, Ajibade said Africa was already witnessing remarkable progress in this regard.
“There was a time when it was unfathomable that an African company would order and build the first ever African owned LPG vessels as well as lift gas in Africa and supply to counterparts in Africa. I’m proud to say that Sahara’s vessels namely MT Africa Gas, MT Sahara Gas, MT SAPET to name a few have lifted African gas and supplied it within the continent of Africa,” he said.
According to Ajibade, meeting Africa’s growing energy needs will also require a “just transition” fueled by developing and maximizing the potential of African crude oil production in a “more sustainable manner”.
“Oil will continue to be an important source of energy but needs to be cleaner to meet global standards. We must ensure the sustainable development of our hydrocarbon resources while reducing methane emissions and flaring to achieve energy security and sustainability at the same time. The increase in the use of CCUS technology presents an opportunity for the industry to be fully exploited for reliability, environmental sustainability, and Africa’s GDP expansion. If we are to build our own ‘Wakanda’, we’re going to have to do it responsibly,” he concluded.
As a direct implication of the Federal Government’s Foreign Direct Investment drive, the Royal Dutch Shell has completed the final investment decision on the deep offshore Bonga North project in Nigeria.
Biztellers reports that the Bonga North will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility which Shell operates with a 55% interest.
Shell’s Integrated Gas and Upstream Director, Zoë Yujnovich, said, “This is another significant investment, which will help us to maintain stable liquids production from our advantaged Upstream portfolio”.
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It was gathered that the Bonga North project involves drilling, completing, and starting up 16 wells (8 production and 8 water injection wells), modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO.
The company is optimistic that the project will sustain oil and gas production at the Bonga facility.
The Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe) and will reach a peak production of 110,000 barrels of oil a day, with first oil anticipated by the end of the decade.
In addition, the Bonga North will help ensure Shell’s leading Integrated Gas and Upstream business continues to drive cash generation into the next decade.
Chevron Nigeria Limited (CNL), has received an award as “Energy company of the year (2024)” for its Environmental Sustainability and Corporate Responsibility accomplishments.
The award presented by the Nigerian News Direct newspaper, on Friday December 6, 2024, and was received by Manager Communications, Chevron Nigeria and Mid-Africa Business Unit, Victor Anyaegbudike, at a colourful event at the Grand Ballroom of the Oriental Hotel, Lagos.
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The organizers of the award noted that Chevron has implemented the “Protecting People and the Environment” policy, which aims at preventing injuries, illnesses, and environmental incidents. They also referenced that the company has achieved 97% gas flaring reduction in its operations in Nigeria, while implementing waste management and environmental conservation programs.
According to the media organization, Chevron Nigeria has also invested millions of dollars in community development programs, supporting education, health and economic development initiatives that have benefited thousands of people, while ensuring diversity, inclusion, and employee engagement in its business operations.
Receiving the award from the Lagos State Commissioner for Information and Strategy, Gbenga Omotosho, Anyaegbudike thanked the organizers for the honour, and reiterated Chevron’s commitment to continue to develop, affordable, reliable and ever-cleaner energy that enables human progress around the world.
The Shell Companies in Nigeria have restated commitment to supporting Nigerian businesses in the quest to grow local content for the domestic oil and gas industry.
The company made the assertion at the recent Practical Nigerian Content (PNC) forum in Yenagoa, Bayelsa State, and committed to doing this through contract awards and scaling up of expertise.
Biztellers reports that over 700 oil and gas entities participated in the 13th edition of the PNC Forum
The four-day conference with the theme “Deepening the Next Frontier for Nigerian Content Implementation” began today and will see the hosts, Nigerian Content Development and Monitoring Board (NCDMB) and participating companies review progress on the development of Nigerian content pertaining to the implementation of the Nigerian Oil and Gas Industry Development (NOGICD) Act since it was enacted in 2010.
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The Shell companies in Nigeria were the forum with a strong message of support for Nigerian companies, having awarded contracts worth $1.98 billion to the businesses in 2023 in continuing effort to develop Nigerian content in the oil and gas industry.
The contracts, awarded by the Shell Petroleum Development Company of Nigeria Limited (SPDC), Shell Nigeria Exploration and Production Company Limited (SNEPCo), and Shell Nigeria Gas (SNG) present a three percent increase from the 2022 performance of $1.92 billion.
Business Opportunity Manager for SNEPCo’s Bonga South-West Aparo Project, Olaposi Fadahunsi, representing SNEPCo Managing Director, Ron Adams, told participants at the opening of the forum that several benefitting companies had taken advantage of the patronage to expand their operations and improve their expertise and financial strength.
“Shell companies execute a large proportion of their activities through contracts with third parties, and Nigeria-registered companies have been key beneficiaries of this policy aimed at powering Nigeria’s progress,” Fadahunsi said. He commended the Nigeria Content Development and Monitoring Board (NCDMB) for ensuring compliance with the Nigerian Content Act.
In addition to contract awards, Shell companies have implemented projects under the Human Capital Development Fund, including the Niger Delta University learning centre and digital library project and the Federal University of Technology Information Technology Hub. Both projects were inaugurated this year, in collaboration with SPDC Joint Venture partners – Nigeria National Petroleum Company Limited (NNPC), TotalEnergies and Nigeria Agip Oil Company Limited (NAOC).
Other projects include the University of Lagos Geosciences Centre of Excellence, Nigeria Diving School and funding of ongoing research at the University of Ibadan to develop a synthetic-based drilling fluid.
The Shell Companies in Nigeria also continue to develop indigenous manpower through scholarship programmes with over 3,772 undergraduate and 109 Niger Delta post graduate scholarships since 2016.
Fadahunsi added: “As we speak, beneficiaries of the 13th edition of the Niger Delta Post Graduate Scholarship awards are pursuing their studies in the United Kingdom. The employability rate of the scheme is high with over 98% of the graduates who won the awards securing employment in the oil and gas industry, academia and Information Technology, among other sectors, within one year of completing their studies. Nigerian content will continue to be an important part of Shell operations.”
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