Exploring Africa’s Energy Future: Insights from the G20 Africa Energy Investment Forum
On November 21, Johannesburg will host the G20 Africa Energy Investment Forum, organized by the African Energy Chamber. This event is set to feature two exclusive fireside chats focused on the evolving landscape of Africa’s oil and gas sectors. With discussions centered around upstream growth, midstream diversification, and the modernization of downstream processes, the forum aims to drive investment across the continent. As African governments and companies shift their strategies toward new explorations and energy transitions, these conversations will emphasize the importance of global partnerships in achieving Africa’s energy and climate objectives.
Oando PLC: A Model for Energy Diversification
Oando PLC stands out as a prime example of how independent oil and gas companies can spearhead energy diversification in Africa. Transitioning from a trading and downstream business to an integrated powerhouse in sub-Saharan Africa, Oando is reshaping investments while tapping into the continent’s oil and gas value chain. Recent moves, such as acquiring Eni’s Nigerian Agip Oil Company in 2024, showcase its ambition to expand its upstream portfolio significantly. Additionally, the launch of Oando Mining, which focuses on lithium and other vital minerals, alongside efforts to bolster its downstream marketing operations, underscores the company’s commitment to a diversified energy portfolio.
During the G20 forum, Oando’s representatives, including CEO Tinubu, will engage in a fireside chat titled Strategy, Growth and Expansion: From Upstream to Energy Diversification. This session aims to provide attendees with valuable insights into the company’s energy strategy, the opportunities available for independent firms across Africa, and the critical need to expand the oil and gas value chain on the continent.
Insights from Industry Leaders
In the words of NJ Ayuk, Executive Chairman of the African Energy Chamber, “Africa’s oil and gas value chain is filled with untapped potential, and companies like Oando are demonstrating what is achievable when African enterprises take the lead. Oando’s growth narrative illustrates that, with the right investments and partnerships, African firms can propel substantial growth across the value chain.” This sentiment highlights the growing confidence in the capabilities of local companies to drive the continent’s energy transformation.
The Role of SANPC in South Africa’s Energy Landscape
Meanwhile, the newly formed South African National Petroleum Company (SANPC) is pivoting toward rapid project development aimed at bolstering supply chains and ensuring fuel security. In addition to investing in upstream initiatives, SANPC is committed to modernizing the midstream sector, focusing on revitalizing critical refining infrastructure. South Africa has long faced challenges due to inadequate investment in its refineries, leading to a heavy reliance on imports. SANPC aims to change this dynamic by undertaking vital projects like the refurbishment of the SAPREF refinery and the re-establishment of the Gas-to-Liquids refinery.
With plans to bring the SAPREF facility, which has a capacity of 180,000 barrels per day and was temporarily closed in 2022, back into operation, SANPC expects that long-term efforts could enhance production to between 400,000 and 600,000 barrels per day. A fireside chat at the G20 Forum will discuss how these initiatives are critical to South Africa’s energy future, featuring insights from SANPC CEO Godfrey Moagi on strategies for reinforcing the nation’s oil and gas supply chain.
Strategic Discussions at the G20 Forum
The conversation will revolve around the theme Repositioning the National Champion: Refinery Modernization and De-Risking South Africa’s Supply Chain, offering investors a unique glimpse into South Africa’s midstream expansion plans. Ayuk also pointed out that “South Africa’s energy security depends heavily on enhancing its downstream infrastructure and refining capabilities to establish a supply chain that is resilient and competitive.” However, realizing this vision hinges on attracting global finance, technology partnerships, and strategic investments aimed at long-term upgrades and fuel security initiatives.
As interest in Africa’s energy markets grows and various nations implement policies to stimulate both upstream and downstream investments, the fireside chats at the G20 Africa Energy Investment Forum are poised to provide vital insights and strategies for investors, national companies, and international financiers eager to extend their influence across the continent.
For those interested in attending the Forum, registration is available on their official website.
Distributed by APO Group on behalf of the African Energy Chamber.
