Oil Giants Boost Africa’s Growth with Multimillion-Dollar Investments

TotalEnergies, Shell, Chevron Pledge Renewed Focus on African Energy

by Adenike Adeodun

The reaffirmation of investment by leading International Oil Companies (IOCs) in African oil and gas signals a burgeoning era of growth and opportunity for the continent’s energy sector. In recent statements made in Nigeria, executives from TotalEnergies, Shell, and Chevron outlined ambitious multi-million-dollar projects aimed at both exploring new frontiers and optimizing production in established markets. This surge of investment comes at a pivotal time, with the Invest in African Energy (IAE) forum in Paris on the horizon this May, presenting a prime opportunity for investors to engage with Africa’s evolving oil and gas landscape.

TotalEnergies, a longstanding contributor to Africa’s energy industry, is spearheading integrated projects across the value chain, emphasizing enhanced connectivity and distribution to meet the needs of local and regional markets. Traditionally focused on the Gulf of Guinea, TotalEnergies is broadening its horizons to include burgeoning markets like Mozambique, South Africa, and Namibia. Notably, the company has announced the revival of its $20-billion Mozambique LNG project set for early 2024, alongside plans for a new LNG import terminal in the Port of Matola, promising to facilitate South Africa’s first LNG exports. In Namibia, TotalEnergies is actively appraising the Venus-1 discovery and has recently made another find at the Mangetti-1X well, demonstrating its commitment to exploring and developing the continent’s energy resources.

Shell, another major player, is making significant strides in both new and established markets. Following a series of discoveries in Namibia’s offshore Orange Basin, Shell is gearing up to drill additional wells and conduct further appraisal work. In Nigeria, the focus is on gas and deepwater assets, with initiatives like the Bonga Main Life Extension Project aimed at enhancing the longevity of its operations and adopting new technologies to boost efficiency and competitiveness.

Chevron, with its extensive investment portfolio in Africa, emphasizes the importance of fostering partnerships to facilitate technological exchange, accelerate resource development, and empower local service providers. The company’s projects range from a $ 1.4 billion infill drilling program in Nigeria to initiating production at the Lifua-A project in Angola. Chevron’s involvement in the West African Gas Pipeline underscores its role in enhancing energy security across the region, delivering Nigerian gas to neighboring countries.

These developments underscore a collective vision among IOCs to leverage Africa’s vast resources and human capital, driving economic growth and improving the quality of life across the continent. Through strategic investments and partnerships, these companies aim to not only advance their own objectives but also contribute significantly to the development of Africa’s oil and gas sector. The upcoming IAE forum presents a timely platform for stakeholders to collaborate and discuss strategies for harnessing Africa’s energy potential, marking a critical juncture in the continent’s journey towards becoming a global energy powerhouse.

Source: Energy Capital & Power

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