Upstream

After its Shell acquisition, Renaissance to become pillar of Nigeria’s local content and gas monetisation strategy

Picture: Shell

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Shell has announced today the sale of its onshore Nigerian subsidiary, the Shell Petroleum Development Company (SPDC), to the Renaissance Africa Energy Company comprised of ND Western, Aradel Energy (former Niger Delta E&P), First E&P, Waltersmith and Petrolin.

The deal is still subject to approvals by the Nigerian government and, if completed, would represent the biggest M&A for the country’s oil & gas sector. While many will see it as yet another exit by a major IOC from the Niger Delta, the transaction is a win for Africa’s local content development.

The Renaissance consortium comprises some of Nigeria’s most respected upstream companies with a demonstrated track record of redeveloping mature assets in the Niger Delta. The group already successfully came together in 2011 to incorporate ND Western and acquire SPDC’s 45% interest in OML 34.

Individually, each of Renaissance’s shareholders have also demonstrated an ability to operate in Nigeria and maximise domestic value creation. Aradel Holdings has grown an integrated oil, gas and refining business around Ogbele that has continued to expand over the years. Waltersmith follows a similar pattern as operator of the producing Ibigwe marginal field and the Ibigwe modular refinery. First E&P successfully commissioned the Anyala-Madu shallow water hub in 2020 and is working with Dangote on achieving first oil at the Kalaekule Field soon.

The transaction also includes continued support from Shell – operationally and financially – through the transition. This is critical to prevent past errors made during divestments in Nigeria with too little attention given to financial resources allocated to assets operations and redevelopment post completion of the deals.  

Last but not least, Renaissance is set to become a critical player in Nigeria’s energy transition journey as it takes over some of the country’s biggest gas upstream and midstream assets. Nigeria is currently faced with a gas supply shortage that must be addressed to meet the objectives of the Decade of Gas which seeks to grow gas penetration and develop a gas-based economy that is more sustainable and spurs industrialization.

As Nigeria seeks to grow gas production, processing, and distribution, Renaissance will become a pillar of the country’s gas monetization strategy and a critical partner to the public and private sector players seeking to expand the country’s gas value-chain. In that regard, the appointment of Tony Attah, former Shell executive and Managing Director/CEO of Nigeria LNG for more than five years, to be Renaissance’s first MD/CEO is not insignificant.

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Programme Unveiled for Eighth SAIPEC 2024

The eighth edition of the Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) returns to the Eko Convention Center in Lagos from 13-15 February 2024. This premier industry event, is hosted by PETAN in strategic partnership with the Nigerian Content Development Monitoring Board (NCDMB), Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and NNPC Limited. Keeping with the theme, “The Next Steps: Accelerating African Content; the conference will highlight billions of dollars of project opportunities across Africa. SAIPEC, with local content at its core, plays a vital role in charting the pathway to developing the continent’s untapped energy, oil, and gas resources and annually represents more than 30 NOCs, IOCs, governments, and regulators. With more than 6,000 attendees from 51 countries, this year’s event promises to be bigger and better than ever. Over five days, the full SAIPEC programme features numerous B2B networking and partnership opportunities. Beginning on 12 February and preceding the main conference discussions start at the 3rd African Content Series seminar, again hosted by NCDMB and PETAN, and attended by a select number of NOCs, IOCs, regulators, governments and private sector representatives. The conference programme features over 100 speakers from across Nigeria, Ghana, Senegal, Mozambique, Cote d’Ivoire, The Gambia, Republic of Congo, Kenya, Tanzania, Namibia, Niger, Guinea, Uganda, South Sudan, Islamic Republic of Mauritania and Senegal. SAIPEC will highlight the future of the energy, oil, and gas industry in Sub- Saharan Africa with special focus sessions on regional collaboration and SAIPEC’s Diversity, Equality and Inclusion and Youth Empowerment programmes. The free-to-attend SAIPEC exhibition runs from 13 – 15 February, featuring a record number of exhibitors that span various companies specialising in services across the industry. Finally, a plethora of networking opportunities underpins the main conference and exhibition proceedings including the SAIPEC Awards, drinks receptions and PETAN’S golf day as the concluding event on 15 February. An overview of the programme is now available to download via the SAIPEC website https://saipec-event.com/programme

Egypt to Host Major Energy Show Focused on Decarbonisation

Egypt is gearing up to host the Egypt Energy Show (EGYPES) 2024, a three-day event that will bring together thousands of energy experts, investors, and policymakers to discuss the challenges and opportunities of the global energy transition. The show, which will run from Feb. 19 to Feb. 21 at the Egypt International Exhibition Center in Cairo, is expected to attract more than 35,000 attendees and 2,200 delegates from across the energy supply and value chains, according to a statement from the organizers. The theme of the show is “Driving Energy Transition, Security, and Decarbonisation,” reflecting the urgent need to cut greenhouse gas emissions and achieve net-zero targets in line with the Paris Agreement on climate change. The show is held under the auspices of Egyptian President Abdel Fattah El Sisi and supported by the Egyptian Ministry of Petroleum and Mineral Resources, which has been leading the country’s efforts to diversify its energy mix and become a regional energy hub. Africa Dialogue Conference A highlight this year is the Africa Dialogue Conference, a forum for influential African stakeholders, including government officials, financiers, economists and energy though leaders. They will tackle thorny issues such as policy, regulation, gas infrastructure and how to harness Africa’s abundant energy resources for a greener and richer future. Egypt’s Minister of Petroleum and Mineral Resources Tarek El Molla said the show has become a cornerstone of the energy ecosystem in Africa and the Mediterranean, spurring business and investment in the regional energy market. “Each year, we witness substantial growth, increased interest, and the formation of invaluable partnerships, thereby accelerating Egypt’s ascendancy as a regional energy hub,” he said in the statement. The show will feature a comprehensive conference programme, with more than 80 sessions and 300 speakers covering topics such as decarbonisation and methane reduction strategies, energy security and affordability, and the role of fossil fuels and renewables in the energy transition. Among the speakers are John Ardill, vice president of ExxonMobil, who said he looks forward to the show as a vital opportunity to engage in constructive discussions regarding energy security, investments in oil and gas, and the transition towards a lower carbon, lower emissions, and sustainable future. Future Energy Zone & Theatre The show will also feature a new Future Energy Zone & Theatre, an immersive platform for showcasing energy innovations. It will cover all aspects of the energy transition, from decarbonisation and hydrogen to digitalisation and alternative energy. It will also host discussions on the regional impact of emerging technologies and the role of different players in shaping the future of energy for Egypt, the region and the world. More than 500 exhibitors from local and international firms will display the latest gadgets, gizmos and solutions in the energy sector. The exhibition will include 12 country pavilions and 26 national and international oil and gas companies. CLIMATECH Challenge Another innovation is the CLIMATECH Challenge, a contest for energy start-ups to pitch their resilient business models and inventions. The aim is to speed up regional adaptations, highlight the importance of climate technology for a low-carbon future and spot undiscovered energy entrepreneurs. Other attractions The show will also host the EGYPES 2024 Sustainability in Energy Conference, where industry leaders will explore the latest developments in clean energy and the strategies required to accelerate net-zero targets by 2050. The EGYPES 2024 Finance and Investment in Energy Conference will bring together energy leaders, sustainable finance experts, and climate professionals to address the economic uncertainties facing global economies and the financial mechanisms and capital market tools to support future energy systems. The EGYPES 2024 Equality in Energy Conference will unite global industry experts, including organisational change management, inclusion, and sustainability leaders, driving discussions on how talent strategy is becoming a paramount priority in shaping a people-centred energy future. In addition to the overarching theme of EGYPES 2024, the EGYPES Energy Awards will take centre stage, honouring trailblazers and energy pioneers making headlines in energy, whose contributions have been instrumental in advancing the global energy landscape towards achieving net-zero emissions and enabling transformational change for people, organisations and economies. To facilitate exclusive networking opportunities, the EGYPES Energy Club (EEC) will continue to elevate EGYPES 2024 as a private membership club lounge, where industry veterans and C-suite leaders can connect and explore critical partnerships for the future. Serving as the destination for all energy stakeholders, the Energy Club will set the stage for signing agreements and MOUs, executive meetings, and media-free networking enabling energy negotiations and decisions of national and global significance. The show comes at a time when the energy sector faces unprecedented challenges and opportunities amid the covid-19 pandemic, geopolitical tensions and climate mandates. The show hopes to foster dialogue, collaboration and action to drive the energy transition and decarbonisation agenda in Africa and the Mediterranean. For more information, including how to plan your EGYPES 2024 experience, visit the show’s website: egypes.com.