The Oil & Gas Council hosted our flagship event, World Energy Capital Assembly in London on December 4-5 2017. With over 700 of our members from across the upstream oil and gas industry, financiers and investors, the conversation was flowing at a wide range of networking opportunities culminating in the annual Awards Dinner.
With over 80 speakers taking part in discussions over two streams, the Assembly provided interesting insights into what the future holds for stakeholders across the industry. A number of recurring themes emerged over the two days, with the outlook on the whole generally positive.
At the Oil and Gas Council, our role is to ensure we reflect our membership. It hasn’t escaped our notice that many of our members are undergoing efforts to realign their core business to a broader energy focus. Additionally, our network of financiers and investors are increasingly open to new opportunities that don’t sit in the traditional realms of upstream.
Our network has been built around connectivity, trust, integrity and most important impartiality. This final pillar presents an important distinction to many of the initiatives currently being pursued in the clean energy space.
I suppose a good place to start would be about a year before the oil price fell, in 2013. We noticed at that time that the industry cost structure had become severely inflated. Our ultra deepwater wildcats could cost $250 million gross and the industry was maxed-out in terms of activity and this was stretching global capacity and global capability.
As a consequence, the industry performance as a whole at the top of the last cycle wasn’t that good because of the over-reach and the very high cost structure.
OKEA AS, the oil and gas production and development company on the Norwegian Continental Shelf (“OKEA”), founded by management and Seacrest Capital Group, is pleased to announce it has entered into an agreement with A/S Norske Shell.
The first official Women’s Energy Council Discussion of 2018 took place during Canada Assembly on May 30 in Calgary. For the first time, the Energy Council brought a full female panel together to address equality issues plaguing the energy sector.
According to BP Statistical Review 2007, at the end of 2016 South Sudan had 3.5 billion barrels of proven crude oil reserves, i.e., 0.2% of the world’s proven crude oil reserves. However, South Sudan, which got its independence from Sudan in July 2011, because of several problems, such as the lack of independent export routes, border disputes with Sudan, and since December 2013 an ongoing civil war, has not been able until now to consistently develop its oil industry; on the contrary, its oil production is currently declining.
It is important for governments in Africa to maintain stable and attractive Oil Policies that will foster exploration and international investment. CGG is very active in helping local governments and oil agencies to promote the oil potential of their respective countries through our multi-client programs.
We can speak most confidently about Nigeria; and here the story has not really changed over the past few years. The prolific nature of the Niger Delta means that it remains a hugely attractive terrain for oil and gas investments. As the majors divest from the Niger Delta to concentrate on the deepwater and in some cases, the gas export business, there are plenty of opportunities to pick up geologically low risk and yet world class assets. Domestic gas utilization is also an area of growth, which is increasingly being taken up by indigenous players such as Seplat. Marginal field opportunities will also grow.
Akshai Fofaria, Partner, Solicitor & Avocat and Regional Chair of the Africa Group, Pinsent Masons LLP
Pinsent Masons has been active in Africa since the early 1990s when we exported the private financing model to South Africa, culminating in the development of the Gautrain. Since then, the firm has provided an entire project lifecycle service, supporting those who have an economic interest in Africa’s major energy, natural resources and infrastructure assets, and are proud to have used our legal expertise to help facilitate the financing and growth of vital energy infrastructure on the continent, and to have provided strategic advice and representation to market participants.
Algeria and Libya are two of the world’s most important petroleum-producing countries. The two countries share a similar economic structure although Algeria has a more diversified G.D.P. composition than Libya has. Algeria has a preponderant role as a natural gas exporter, while Libya has an analogous role in relation to crude oil. However, similarly to many other hydrocarbons producers, Algeria and Libya are having some difficulties in attracting foreign investors at a time when these two countries need state-of-the-art petroleum technology and financial resources to develop their petroleum assets.
In 2017 we saw a continuation of the upturn in upstream M&A which began in late 2016. The oil & gas industry has been through a sustained period of focus on cost cutting but, as the oil price stabilises, many players are now seeing an opportunity to refocus on growth.
Following some exciting world-class discoveries, the oil and gas industry’s eyes were all on the MSGBC Basin. Soaring to the top of the list as Africa’s most exciting new E&P hotspot, the basin was the new “cool kid on the block”. However, this excitement has recently been dampened by some disappointing results…here’s why you might want to hold back that judgement for now, and why the MSGBC Basin should still be on your radar in 2018.
The African oil and gas industry continues to evolve. Our clients are optimising efficiencies across the value chain, strengthening balance sheets and introducing new technologies, whilst continuing to navigate complex regulatory environments, geopolitical risk, disputes and market disruption. Our specialist Africa oil and gas team is helping our clients shape new strategies to continue to grow and deliver value to stakeholders.
North and East Africa will represent the main opportunities for growth within the industry and the continent and Egypt will certainly be at the forefront of this wave of opportunities.
William Pollen, Director, Invest in Africa – Senegal’s Oil and Gas Discovery: A New Approach to Maximise Local Content
Until we can make it easier for investors and local companies to play a more prominent part of Africa’s development story then the same old challenges and barriers to growth that we see today will exist long after even the natural resources are gone.