• Latest
  • Trending
  • All
Solar panel

African Oil and Gas Deals: Mergers and Acquisitions Activity on the rise in Africa

April 30, 2022
Mensah Thompson

Mensah Thompson roasted over his disrespectful comments on Ga traditions

May 16, 2022
Gatsi-Bawumia-Ken-BoG

Stop the usual blame game; deal with the high inflation – Gatsi blasts gov’t

May 15, 2022
deborah yakubu

The gruesome murder of Deborah Yakubu; same as Abdullar Umaru in 1999

May 15, 2022
John Gatsi

Enact revenue collateralization law, deal with policy failure issues in the April 2022 inflation figures

May 15, 2022
Akinwumi Adesina

African Development Bank seeks US support for $1.5 billion emergency food plan for Africa

May 15, 2022
John Gatsi

High inflation to affect okro stew consumption in Ghana – Prof. John Gatsi

May 15, 2022
John Dramani Mahama

Let John Mahama go unopposed  

May 15, 2022

Failure Of Business Enterprises To Fulfill CSR Hindered Teshie Development – Dzasetse

May 11, 2022
Nana Akufo-Addo

NHIS faces imminent collapse; only 41.2% of its levy collected paid to the scheme – NDC

May 10, 2022
Goodluck Jonathan

Goodluck Jonathan: Nigeria’s former president rejects APC nomination

May 10, 2022

Party foot soldiers in cassocks

May 10, 2022

Teshie Dzasetse Celebrates 15 Years Jubilee Anniversary

May 9, 2022
Torgbe Sri III

The 36 States of Anlo that pledge allegiance to the Awɔmefia

May 6, 2022
John Gatsi

Repeal of e-levy will ensure principled based taxation – Prof. Gatsi

May 6, 2022

Sempe Akwashongtse Appeals To Muslim Philanthropists to Support their communities

May 5, 2022

Greater Accra Zongo Celebrates Eidul Fitr in Grand Style

May 5, 2022
John Mahama

A few takes from Mahama’s Presentation – Ghana AT A Crossroad

May 2, 2022

Eid-ul-Fitir: Dr Ayariga Sends Goodwill Message To Fellow Muslims

May 2, 2022

Eid-ul Fitir: Akwashongtse wishes Muslims A Happy Eid Kareem

May 2, 2022
John Mahama

How Mahama fought corruption

May 1, 2022

Implementing E-levy Despite Court Case impunity, Disregard For Rule Of Law – Ablakwa Fumes

May 1, 2022
albert aheto

Elect credible executives who can be good opposition members in 2024 – Aheto to NPP

April 30, 2022
Yayra Agbeehia

Meet Yayra Agbeehia, the Afadzato South NPP Women Organizer aspirant

April 26, 2022
IGP Akuffo Dampare

Bawku conflict: IGP raises alarm, cites alleged Burkinabés’ involvement

April 26, 2022
Elon Musk

Elon Musk strikes deal to buy Twitter for $44bn

April 26, 2022
  • All News
  • About Us
  • Advertise
  • AMN Research
  • My Story
  • Vovoli TV
Tuesday, May 17, 2022
  • Login
Awake News
Advertisement
  • News
    • Crime
    • Peace & Security
    • Diaspora
    • Press Release
    • Photos
    • Videos
    • Religion
  • Business
    • Agriculture
    • Finance
    • Energy
    • Telecom
    • Economy
    • Travel
    • Mining
    • Oil & Gas
    • Tourism & Hospitality
    • Real Estate
    • Transport
  • Politics
    • Awake Election Watch
    • NDC News
    • NPP News
    • CPP News
    • Opinion Polls
    • Elections
    • Flagbearers
  • Education
  • Health
  • ShowBiz
    • Celebrities
    • Concert
    • Fashion
    • Music
    • Lifestyle
  • Sports
    • Football
    • African Football
    • European Football
    • Basketball
    • Athletics
    • Boxing
    • Disability Sports
    • Tennis
    • Other Sports
  • Features
    • Opinions
    • Speeches
    • Poem
    • Interviews
    • Inspirations
    • People
    • People & Culture
No Result
View All Result
  • News
    • Crime
    • Peace & Security
    • Diaspora
    • Press Release
    • Photos
    • Videos
    • Religion
  • Business
    • Agriculture
    • Finance
    • Energy
    • Telecom
    • Economy
    • Travel
    • Mining
    • Oil & Gas
    • Tourism & Hospitality
    • Real Estate
    • Transport
  • Politics
    • Awake Election Watch
    • NDC News
    • NPP News
    • CPP News
    • Opinion Polls
    • Elections
    • Flagbearers
  • Education
  • Health
  • ShowBiz
    • Celebrities
    • Concert
    • Fashion
    • Music
    • Lifestyle
  • Sports
    • Football
    • African Football
    • European Football
    • Basketball
    • Athletics
    • Boxing
    • Disability Sports
    • Tennis
    • Other Sports
  • Features
    • Opinions
    • Speeches
    • Poem
    • Interviews
    • Inspirations
    • People
    • People & Culture
No Result
View All Result
Awake News
No Result
View All Result
Home Africa Africa Business

African Oil and Gas Deals: Mergers and Acquisitions Activity on the rise in Africa

Awake News by Awake News
April 30, 2022
in Africa Business
A A
0
Solar panel
57
SHARES
637
VIEWS
ShareShareShareShareShare

JOHANNESBURG, South Africa, April 26, 2022/ — By Paul Sinclair, Vice President of Energy & Director of Government Relations – Green Energy Africa Summit and Africa Oil Week (www.Africa-OilWeek.com)

Senyo Global Solutions Senyo Global Solutions Senyo Global Solutions
ADVERTISEMENT

The events of the past two years have accelerated mergers & acquisitions trends in Africa, and 2022 is already witnessing increased deals activity. The continent has now positioned itself as a driver of oil & gas deals, with several transformational transactions already announced over the past six months. In fact, the proposed acquisition of Mobil Producing Nigeria by Seplat Energy in February remains, so far, the biggest acquisition in the industry globally this year.

RelatedNews & Articles

African Development Bank seeks US support for $1.5 billion emergency food plan for Africa

African Development Bank Chief garners strong global support for Africa

West African Development Bank gets €70m and $24m equity investment

However, and while deal-making is on the rise, acquisition strategies and targets vary from one region to another.

Oil prices rebound drives consolidation around producing assets

Higher oil prices since 2021 have further unlocked the African M&A market, especially for well-established operators and asset owners. However, companies remain highly cautious in their spending given continued market uncertainty and a focus on shareholder returns.

This is translating into consolidation around key producing assets for companies seeking to maximise the value earned from blocks or fields they are already familiar with. Examples include VAALCO Energy’s acquisition of Sasol Gabon’s participation in Etame Marin, or Kosmos Energy, Tullow Oil and PetroSA’s acquisition of Occidental Petroleum’s interests in the Jubilee and TEN fields offshore Ghana. All these assets are producing and witnessing fresh drilling campaigns that will boost output this year, making them ideal targets given current market conditions.

A focus on brownfield assets in West and Central Africa

In the mature petroleum provinces of West and Central Africa, deals are focused on brownfield opportunities. These include both producing fields with strong upside potential, or appraisal and near-producing assets where barrels can be produced and exported in a short timeframe with capex.

Several such transactions have occurred since 2020, including small and mid-sized acquisitions by Perenco in Gabon and the DRC, by Panoro Energy in Gabon and Equatorial Guinea, or by Decklar Resources and San Leon Energy in Nigeria.

Brownfield assets are also the ones attracting the biggest M&As by far. At the end of last year, Savannah Energy announced its acquisition of the entire upstream and midstream asset portfolio of ExxonMobil and PETRONAS in both Chad and Cameroon. The deals were valued at some $626m, making them amongst the biggest in the region.

Earlier this year, Seplat Energy also announced its proposed cash acquisition of Mobil Producing Nigeria for $1.283bn (plus up to $300 million contingent consideration), in what remains so far the biggest deal of the year globally.

Both Savannah Energy and Seplat Energy’s acquisitions are in fact so significant that they constitute Reverse Takeover transactions pursuant to the UK listing rules.

Within the region, Nigeria will continue to drive M&A activity, first because of continued divestments by IOCs but also because of the size of its proven reserves. Shell’s divestment from its entire JV portfolio in the country will be a natural driver, with a 30% interest in 19 oil mining leases (OMLs) onshore and in shallow water up for grab. But beyond IOCs’ assets, Nigeria holds Africa’s most attractive brownfield opportunities with well-established reserves waiting to be developed by investors, providing they are willing to take on the above-the-ground risks.

A Focus on play opening assets in Southern Africa

While risk appetite for new assets in West and Central Africa is relatively low, it is considerably higher in frontier basins in Southern Africa. This is particularly the case in Angola (Namibe and Kwanza Basins), Namibia (Kavango, Walvis Bay, and Orange Basins), and South Africa (Orange Basin), but also in Zimbabwe (Cabora Bassa Basin).

While Angola is one of the oldest-producing markets on the continent, substantive reforms since 2017 have successfully brought back investors into the country’s producing and exploration blocks.

In fact, Angola is one of the very few oil producing markets that is supporting M&A activity in exploration assets. Such deals are notably driven by Sonangol’s partial divestment process, which has already attracted the interests of Afentra in Block 23 (Kwanza Basin) and of the consortium of Angolan independent Somoil and British independent Sirius Petroleum in Block 27 (Namibe Basin).

Further south, Namibia and South Africa have become exploration hotspots and are both driving significant M&A activity now. This is especially the case within the Orange Basin, where both Shell and TotalEnergies have announced world-class discoveries this year.

In January, Eco (Atlantic) Oil & Gas acquired Azinam in a bid to enter Blocks 3B/4B and Block 2B within the Orange Basin offshore South Africa, and to consolidate its interests in its four existing licenses within the Walvis Basin offshore Namibia.

The rise of the independents

2022 will only entrench the rise of established and new independents across the continent as they continue to top the list of buyers.

In Nigeria, established independents who are familiar with the country’s business and risk environment already seek to grow their portfolio and take on some of the IOCs’ assets. While access to capital will be a challenge for many of them, the market has already seen two deals worth over $1bn each in 2021 and 2022. But Nigeria is not just a billion-dollar deals market and holds significant potential for smaller and less risky ventures relying on risk service agreements such as FTSAs or RFTSAs around near-producing assets with existing discovery wells and established infrastructure.

In Central Africa, Perenco has demonstrated a business model that many seek to follow as they take on the region’s mature fields and redevelop them more efficiently. Equatorial Guinea, Cameroon, Gabon, and Congo host a growing series of independents that could increasingly make a difference as these markets seek to encourage exploration around producing hubs and boost output.

Finally, Southern Africa is steadily imposing itself on the table of many buyers as the region offers the right mix of producing assets, exploration blocks in frontier basins, and a supportive business environment. These factors are providing fertile grounds for a new generation of local and international independents set to shape the region’s energy landscape this decade.

Share this:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
  • Click to share on Telegram (Opens in new window)
  • Click to print (Opens in new window)
Tags: Green Energy AfricaPaul Sinclair
Do you have any article or news or story leads? Let Awake News energize that story for you. Send them to editor@awakenewsroom.com or WhatsApp: +233249155003 ========================
Awake News

Awake News

Awake News, a comprehensive and objective media. We in the print media and online. With our principles: if it has not occurred, it must not be reported made our portal a preferred source for accurate information. Contact the Online Editor via awakenewsonline@gmail.com

Related Posts

No Content Available

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  • Trending
  • Comments
  • Latest
Kwaku Agyeman Manu

Honestly, Mahama made arrangements for ambulances services not NPP – Health Minister

November 25, 2020
Nana Addo Dankwa Akufo-Addo

Agyapadie Secret Book: Akufo-Addo, Akyem NPP’s grand scheme to capture Ghana exposed

November 30, 2020
Gatsi-Bawumia-Ken-BoG

Stop the usual blame game; deal with the high inflation – Gatsi blasts gov’t

May 15, 2022
Mensah Thompson

Mensah Thompson roasted over his disrespectful comments on Ga traditions

May 16, 2022
Gatsi-Bawumia-Ken-BoG

Stop the usual blame game; deal with the high inflation – Gatsi blasts gov’t

May 15, 2022
deborah yakubu

The gruesome murder of Deborah Yakubu; same as Abdullar Umaru in 1999

May 15, 2022

RSS Properties for Sale

  • Registered 5acres of land for sale at Kasoa off Kasoa-Bawjiase Road
  • River front farm land for lease at Sogakofe, Volta Region
  • River side land for sale at Sogakofe, Tefle and Sopoe
  • 65 acres of land for sale at Tsopoli near new Airport site
  • 20 acres of service plots of land for sale at Shai Hills

Vovoli TV

ADVERTS

Awake News

News Production & Advertising

Awake News is published by AM Network which seeks to give readers balanced and credible news from across Ghana and the world. We focus on giving our reader the reason to return to our portal for any news and why advertiser must place their ads on our portal...read more

Services

  • My Story
  • Advertise With Us
  • AMN Research
  • Contact Us
  • Vovoli TV
  • Awake Investigates

Partners

  • SenyoMart
  • GoPropertyLink.com
  • Senyo Global Solutions
  • FNN24.com
  • LoudSilenceRadio.com
  • GHface.com
  • myxyzonline.com
  • SenyoHost.com

 


Do you have any article for publication? Are you an eyewitness? Submit your stories and articles now via awakenewsonline@gmail.com or WhatsApp: +233249155003

  • All News
  • About Us
  • Advertise
  • AMN Research
  • My Story
  • Vovoli TV

Copyright © 2012-2020 | Awake News

No Result
View All Result
  • Vovoli TV
  • All Latest News
  • News
  • Politics
  • Education
  • Business
  • Health
  • Sports
  • Opinions
  • Entertainment
  • Press Release
  • My Story

Copyright © 2012-2020 | Awake News

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In