African oil and gas resources have been shunned due to climate change concerns and costs. However, the demand for a replacement for Russian products is increasing in Europe, and the energy industry is rekindling its development motivation.


Reuters estimates that energy companies are considering a total of $ 100 billion in development projects on the African continent, based on estimates by listed and unlisted companies.


Among African countries that currently produce very little oil and gas, Namibia, Southern Africa, Uganda, Kenya, Mozambique, and Tanzania could invest billions of dollars in development over the next few years.


Namibia, considered the most promising country, has seen good results in prospecting wells in recent months, with new oil production of around 500,000 barrels per day in the country alone, according to unpublished estimates by two industry consultants. May be possible.


The International Energy Agency (IEA) estimates that by 2030, Africa as a whole will be able to take over about one-fifth of gas exports from Russia to Europe. By that time, the gas supply from Africa to Europe will increased by 30 billion cubic meters annually.


Jill Holtzmann, CEO of Canadian oil exploration firm Eco Atlantic Oil & Gas, said in an email to Reuters, "The industry is now in need of a replacement for Russian oil and gas around the world. Is paying attention to the abundant energy resources supplied by Africa. " "Oil majors are building larger positions and are bidding for exploration, development, and production sites," he said, referring to the development of offshore oil fields in Namibia and South Africa. Eco Atlantic holds an oil drilling license about 30,000 square kilometers off the coast of Namibia.


In a June report, the IEA noted that Africa's energy investment has not yet recovered since the 2014 oil and gas price plunge, highlighting the potential for the region to help alleviate energy shortages.


In an interview with Reuters in June, IEA Secretary-General Virol said, "We are in the midst of a real global energy crisis and need to find an alternative to Russian oil and gas that has been cut off." Stated.


Companies and countries considering oil and gas investment in Africa will benefit from undeveloped resources before many fossil fuel projects become unprofitable due to the global transition to low-carbon technologies, according to executives and others. I know I need to move quickly to get it in.


In Tanzania, Norwegian state energy giant Equinol and British and Dutch oil giant Shell signed a comprehensive agreement last month to accelerate the development of a $ 30 billion liquefied natural gas (LNG) export terminal.


French oil giant TotalEnergies CEO Puyanne said in January when he visited Maputo, the capital of Mozambique, that if security improved, he would aim to resume the $ 20 billion LNG project, which had been suspended due to armed groups, by the end of the year. Revealed.


In May, TotalEnergies also said it needed to make up for the decline in production and supply from Russia, accelerating activities in the promising but underdeveloped Namibia.


Gonzalo Falcao of law firm Mayer Brown, citing a multi-billion dollar East African gas project, said, "Now there is a lot of work going on to promote such a project. It's clear that it's taken as an opportunity. "


No country has a greater presence than Namibia in Africa's new oil development sector.


Although production has not yet begun, major oil companies have been investigating geographic data and exploring the ocean for decades, and in February this year Shell unearthed a "promising" oil field for light oil. Light oil is used in the production of gasoline and light oil, which are in short supply.


For the first time in the company's 150-year history, Shell performed a "back-to-back" drilling of wells. Although the results of the first well were promising, we are only promoting projects that are resilient and competitive against fluctuations in crude oil prices, with a reliable path to early development from climate change efforts. It is supposed to be.


TotalEnergies completed exploration in the adjacent Venus Block in March. The block is "promising" and plans to drill more advanced evaluation wells in the third quarter.


"We need to determine if we have commercially recoverable reserves, but we still need to invest to meet demand," the company said of Namibia.


Shell executives said the two companies' mining areas would cost about $ 11 billion, subject to anonymity.


According to the forecast of data company IHS Markit and the estimation of natural resource consultant Wood Mackenzie, this discovery will enable oil production of about 500,000 barrels per day. Both companies make preliminary estimates.


Namibia's Ministry of Mines and Energy executives are impatient, saying that the time limit may be approaching as the global transition to clean energy approaches, "Namibia could become the last giant in Africa." No.