From Reserves to Revenue: Technip Energies Sponsored Discussion at MSGBC Conference Explores NOCs E&P Strategies

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African National Oil Companies (NOC) play an instrumental part in advancing the development of untapped oil and gas resources. Partnering with international project developers and investors, NOCs utilize expertise to drive successful developments while working closely with national regulators to ensure compliance with national laws and environmental standards.

As the dynamics of the energy industry in Africa shifts owing to impacts from the global energy transition, a panel discussion during the MSGBC Oil, Gas & Power 2023 conference explored the changing roles these companies are set to play.  

One of the primary themes that emerged was that Africa will continue to rely on oil and gas to sustain its growing economies for years to come. As global shifts to renewable energy sources impact the portfolios of international energy firms, NOCs in Africa have stepped up, taking on a more proactive role in project development.

According to Cany Jobe, Director of Exploration & Production at the Gambia National Petroleum Corporation, “You have seen International Oil Companies transition to become energy companies but very few NOCs have.” She considers this to be important, and that, “NOCs traditionally have not been great riders of change but we have seen a lot of development, with NOCs embracing the energy transition. We are the most suited to explore for and develop new energies. We already have the resource base to move away from fossil fuels and embrace hydrocarbon exploration while looking into carbon capture and storage.”

Shifting dynamics brought about by the energy transition have created unprecedented impacts, particularly for the MSGBC region where many oil and gas projects are yet to come online. In Senegal, the first phase of the Greater Tortue Ahmeyim project and the 100,000 barrel per day Sangomar oilfield development are being finalized, both of which are set to come online in 2024. These projects are expected to kickstart new interest in regional oil and gas opportunities, and the NOC is committed to maintaining this positive development momentum.

Sokhna Thioye Sakhou, Greater Tortue Ahmeyim (GTA) Project Manager, Petrosen E&P, explained that, “We aspire to achieve universal energy access by 2030. As for the power source for future plants, it will be the gas from GTA but also the associated gas from Sangomar, and especially the gas from Yakaar-Teranga. We have also completed the study of the pipeline network by the Senegal Gas Network.”

Meanwhile, Asmae Benachird, Petroleum Exploration Director, at Moroccon NOC ONHYM, provided insights into the strategies NOCs should implement going forward.

“The first is the development of infrastructure. It is important to develop that infrastructure and to invest in it. The second is the implementation of policies that encourage investments. Another aspect is to reinforce the Public Private Partnerships as it brings the capital and expertise to the energy sector. Another aspect is Environment, Social and Governance. These are the main strategies in terms of downstream infrastructure,” she remarked.

In Guinea-Conakry, the government established the SONAP in 2021 to enhance the attractiveness and capacity of the domestic market. SONAP works closely with international companies and is seeking partners to help unlock the potential of offshore oil and gas acreage and is scaling up downstream infrastructure in response to domestic needs.

Amadou Doumbouya, Managing Director at Guinea’s NOC SONAP, explained that, “We know we are short in storage capacity so we started building the facility almost a year ago. Most of those in the region don’t have the storage capacity to last three months. Now, we will have storage capacity of almost 450,000 barrels.”

Additionally, the NOC is committed to expanding the upstream. Doumbouya announced that, “The MSGBC region is the area to come and invest in. In Guinea, we are ready to make those big discoveries.”

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Energy Capital & Power

Energy Capital & Power is the African continent’s leading investment platform for the energy sector. Through a series of events, online content and investment reports, we unite the entire energy value chain – from oil and gas exploration to renewable power – and facilitate global and intra-African investment and collaboration.