Energy

Experts To Discuss Global Opportunities For Nigeria Energy Sector At NOG 2022

Nigerian Petroleum Minister, Chief Timipre Sylva, speaks at NOG 2021 in Abuja. Picture: DMG Events.

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The 21st edition of Nigeria’s foremost energy event, NOG Conference and Exhibition is set to hold in person at the International Conference Centre, Abuja from 4 – 7 July 2022.

dmg Nigeria events, the organisers of the event stated that NOG 2022 will host key stakeholders from across the global energy value chain to discuss unique opportunities for Nigeria’s energy resources in the face of global energy demand.

The conference will also discuss key issues such as financing opportunities for energy projects in sub-Saharan Africa, bridging infrastructure gap for improved domestic gas market, opportunities for indigenous companies in the PIA era, technology innovations for decarbonatization across the value chain, and other critical topics, that will help set the nation’s energy agenda for the next 12 months and beyond.

The conversation at this year’s conference is significant as the industry navigates the growing global demand for renewable energy and climate friendly sources of energy in the face of Africa’s unique energy mix requirements. Many industry leaders have also dubbed this to be an opportunity to seek a lasting solution to Africa’s energy poverty and bring the much-needed socioeconomic development.

As part of its commitment to the development of the Nigerian energy industry, NOG will also provide the opportunity to showcase and train industry stakeholders on best in class technology innovations across the value chain through its CPD certified NOG Technical Seminar. The Technical Seminar will host sessions in 5 different streams covering upstream operation, midstream, downstream, digitization and project management.

The NOG Conference and Exhibition annually hosts over 500 delegates, 300 exhibiting companies, 80 industry expert speakers and 40 sessions across 2 conference streams.

2022 Sponsors include: NNPC, ExxonMobil, Nigeria LNG Limited, Shell, Chevron, Total Energies, Oando, NCDMB, Prime Atlantic, DCPL, Coleman Wires And Cables, UTM FLNG Limited, First E & P, ND Westers, Samsung, Montego, Nivafer, Russell Smith, Vurin Group, MG Vowgas, WAV, Trexm Chemicals, and MicCom, Niger Delta Exploration & Production Plc, Eleva Group and Heritage to date.

Hawilti is a proud Research & Content Partner of the 21st NOG Conference & Exhibition.

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How Africa Oil Corp. made half a billion dollars from Nigeria in less than two years

Investing in Nigeria may not be for the faint-hearted, but the country continues to prove times and again that it can be a highly rewarding market. By securing an indirect interest in some of the country’s largest producing deep-water blocks in 2020, Africa Oil Corp. has shown the benefits that come with betting on Nigeria’s brownfield opportunities. In early 2020, the Canadian junior secured a 50% equity interest in Prime Oil & Gas B.V. (POGBV) for $519.5m. POGBV has an indirect 8% interest in the Chevron-operated OML 127 that contains the producing Agbami field and a 16% indirect interest in the Total-operated OML 130 that contains the producing Akpo and Egina fields. Because these represent some of Nigeria’s biggest producing assets, Africa Oil Corp.’s has relied on an average daily working interest production of 25,000 to 28,000 barrels of oil equivalent per day since 2020. Despite hedging constraining POGBV’s realized oil price to less than $60 in 2021, the company’s dividends to Africa Oil Corp. have been generous. Since January 2020, Prime has distributed eleven dividend payments totaling $500m to AOC, representing over 95% of its original equity investment.   "Performance of the Company’s investment in Prime has continued to exceed expectations with strong cash flows, dividend distributions and very modest investments on the upstream assets, offshore Nigeria." Africa Oil Corp, 13 May 2022 A Brownfield Investment Destination Nigeria offers some of the best proven reserves of oil & gas in the world, existing infrastructure and a large, established energy industry. But because of its above-ground risks, the country has repeatedly deterred foreign investors. However, deals like the one made by AOC in 2020 are proof that opportunities in the market are real. “Above-ground risks are constantly used as a pretext by foreign investors not to put their money in Nigeria. Those perceptions are often short-sighted and reveal a misunderstanding of the country’s environment. Because Nigeria is a brownfield investment destination, a successful investment strategy is one that relies on partnering with local actors who will be taking on the above-ground risks for you,” said Mickael Vogel, Hawilti’s Director & Head of Research. Last year, the country adopted the Petroleum Industry Act in a bid to bring much-needed regulatory certainty to investors. But the transition to the new regime has come with its challenges and is yet to translate into a significant increase in investments. “Recent and successful deals in Nigeria have been made by foreign companies that focus on injecting capital and bringing in technical expertise instead of seeking straightforward operatorship of the assets. In doing so, they let their Nigerian counterpart and operator navigate the country’s business environment while they focus on developing the reserves and cashing in on their investment,” added Vogel.

Wildcat Petroleum granted non-exclusive right over 20 blocks offshore Sierra Leone

LSE-listed Wildcat Petroleum (WCAT) had announced the signing of a Reconnaissance Permit Agreement with the Petroleum Directorate of Sierra Leone (PDSL). The permit grants Wildcat Petroleum non-exclusive rights to conduct reconnaissance operations over 24,000 km2 for a period of six months. The company will notably carry out a desktop study using geophysical and geological data to identify blocks with the highest potential to yield commercially viable oil finds. “If block(s) with the potential of containing commercially viable oil discoveries are identified then WCAT intends to enter negotiations with the PDSL for a Petroleum Exploration and Production Licence(s),” Wildcat Petroleum said in a statement yesterday. The study area notably contains two uncommercial oil discoveries, Mercury and Jupiter, discovered by Anadarko Petroleum, Tullow Oil and Repsol. Based on previous exploration in the country and the presence of hydrocarbon shows in the wells drilled offshore Sierra Leone, Wildcat Petroleum believes there is a working petroleum system there. “In the period since these blocks were relinquish billions of barrels of oil resources have been discovered in the Cretaceous fans beneath the deep waters of the Guyana-Suriname Basin in South America Ð which can be linked tectonically & litho-stratigraphically with the conjugate Sierra Leone Basin,” the company added. Wildcat Petroleum was incorporated in 2020 and was admitted to the London Stock Exchange the same year. In June 2021, the company announced that it would initially focus on securing and developing a proven upstream asset in Angola, with a secondary focus on Namibia for exploration upside.