Ian Cogswell, AEI’s Global Head of Natural Resources & Offshore Infrastructure, attended the Africa Oil & Power Conference in Cape Town from 5th to 7th June. The conference gathered ministers and government officials representing 13 countries, including South Africa, South Sudan, Equatorial Guinea, Gambia, São Tomé and Principe, Nigeria, Ghana and Mozambique; senior representatives from leading industrial players active in Africa, including Ophir Energy, Tullow Oil, Kosmos Energy, Erin Energy, Shell, BP, GE Oil & Gas, Schlumberger; over 70 speakers; and over 400 delegates. The Conference provided a platform for a wide-ranging discussion on energy investment and policy in Africa.
In addition to debate and networking, the Conference provided a platform for some important announcements. For example, on Day 1 of the event, The Ministry of Mines and Hydrocarbons of Equatorial Guinea announced that it has shortlisted the offtakers of its massive Fortuna Floating Liquefied Natural Gas (“FLNG”) project. The Government announced that it is in discussions with Shell, Gunvor and Vitol to sell the 2.2-2.5 million tonnes per annum of LNG which are expected to be produced when Fortuna goes online in 2020. The selection of the offtaker is expected to be made before the project reaches final investment decision in 2017.
The conference provided Ian with the opportunity to meet with Oliver Quinn, in charge of Africa & Global New Ventures at Ophir Energy to discuss the potential financing opportunities related to this Project. Other one-to-one meetings were also held with representatives of Kosmos Energy, Vitol, SNC Lavalin, HIS, Burmah Oil, Afrexim Bank and the Energy Cuncil.
Ian also participated as a speaker on the Finance & Investment Panel, along with Intong Eric Monchu of the African Export-Import Bank (Afrexim Bank), Thabo Thobejane of Nedbank and Tawanda Mudimbu of Asoko Insight. The panel discussed implications for the financing of new Projects in Africa, noting that a number of Africa’s hydrocarbons projects were conceived in the high oil price environment of the early 2010s. The reality of a sub $60 barrel has shifted the economics for companies and governments with stakes on the ground. The panel examined the fall-out, looked at examples of successful downturn strategies and attempted to forecast the future for the continent’s energy sector investors.
The panel discussion was preceded by a short video presentation, which can be viewed at
All of the pre-panel videos can be viewed at