KEY POINTS
- Oando wants governments, regulators, operators and host communities to work more closely to boost upstream investment.
- Industry leaders say regulatory stability, faster processes, ease of doing business and competitive fiscal terms are crucial to attracting capital.
- Oando says host communities must be treated as active stakeholders in the sustainable development of Africa’s oil and gas resources.
Oando Energy Resources, the upstream subsidiary of Oando PLC, has called for stronger collaboration among governments, regulators, oil and gas companies and host communities to unlock investment and accelerate sustainable development across Africa’s upstream petroleum sector.
The company made the call at AOW: Energy in Accra, Ghana, where industry leaders and policymakers discussed the challenges confronting upstream development and explored ways to create a more attractive environment for investment in Africa’s oil and gas industry.
Kofo Olagunju, General Manager, Security, Government & External Relations at Oando Energy Resources, said stronger alignment between the public and private sectors was necessary to provide investors with the certainty required to commit capital to Africa’s energy industry over the long term.
Speaking during a panel session titled, “Building Dialogue, Leadership: Exploring the Challenges of Both Government and Private Sector Frameworks for Upstream Development,” Olagunju stressed that cooperation between regulators and operators must go beyond conventional regulatory oversight.
Oando Advocates Constructive Government-Industry Relationship
According to Olagunju, regulators and oil companies ultimately share a common objective: developing Africa’s natural resources in a manner that attracts investment while delivering wider economic and social benefits.
He argued that achieving this objective would require regulators to have a better understanding of the operational realities facing energy companies, while operators must equally recognise the developmental priorities and regulatory responsibilities of governments.
“What we have seen in recent years is a growing recognition by both operators and regulators that we are ultimately working towards a shared objective,” Olagunju said.
He added that meaningful progress would depend on genuine partnerships built around mutual understanding and shared responsibility.
Such cooperation, he suggested, could help reduce uncertainty, improve decision-making and create the conditions necessary for companies to undertake major upstream investments that often require significant capital and long-term planning.
The discussion also focused heavily on the conditions required to attract and retain international and domestic investment in Africa’s petroleum industry.
Joe Kofi Mensah, Senior Vice President and Head of Ghana Business Unit at Kosmos Energy, identified regulatory stability, speed, ease of doing business and competitive fiscal terms as key considerations for investors.
Mensah said these factors must work together to provide companies with sufficient certainty before committing substantial capital to exploration, development and production projects.
