Global Energy Leaders Collaborate to Streamline Funding for Africa’s Energy Projects

Published: July 14, 2024

Insights from Africa Oil Corp., Standard Bank, and the Liberia Petroleum Regulatory Authority

LONDON – Global energy companies and financial entities including Africa Oil Corp.,Standard Bank and the Liberia Petroleum Regulatory Authority (LPRA) addressed Africa’s premier energy sector opportunities at the Invest in African Energy reception in London on Thursday, organized by the African Energy Chamber.

The reception affirmed rising interest in Africa’s energy resources, uniting interested investors from the UK, US, Europe and global markets to access and engage with Africa’s energy prospects, as well as unpacking latest project developments across the continent. Moderated by Susan D. Maples, Partner at international law firm Curtis, Mallet-Prevost, Colt & Mosle, a dynamic panel discussion targeted where investors should direct their attention.

“By all metrics, there is an outrageous imbalance between Africa’s reality and potential, and its perception in and outside of the continent,” said ⁠Paul Eardley-Taylor, Oil and Gas Sector Coverage, Standard Bank. “In most African countries [Standard Bank] is present, the market’s banking limit is about $300 million for any given project. This means that – other than South Africa and Nigeria – all large oil and gas projects need funding from multiple sources.” 

Key exploration hotspots were highlighted across the continent, with a focus on southern and West Africa.

High unmet regional energy demand – coupled with untapped hydrocarbon resources, competitive fiscal terms and an enabling environment – have made these markets attractive destinations for global capital, technology and expertise.

“Namibia is a world-class hydrocarbon province – it’s early days, but very encouraging. There’s a fantastic opportunity to build a big economy that’s good for people and develops local content,” said Oliver Quinn, CCO of Canadian oil and gas company Africa Oil Corp., who holds a stake in the Venus discovery in Namibia’s Orange Basin.

“South Africa also has a big chunk of the Orange Basin, which has yet to be drilled, but there are plans to do so in the coming future… Nigeria has introduced a new petroleum act, which reflects what’s required for the energy transition, as well as attractive and stable fiscal terms. It has a very effective sector and a significant resource base left to go,” continued Quinn. 

Contractual stability and sanctity – as well as built-in local content development that stimulates job creation and allocates funds to local businesses and contractors – were also identified as critical factors to Africa’s future energy sector growth.

“[Liberia] is stable, we have a fast-tracked code for corruption, and the time limit to process everything is short – we call it a ‘one-stop shop.’ Now is the time to invest,” said Marilyn T. Logan, LPRA Director General.