Page 11 - AfrOil Week 20 2022

AfrOil INVESTMENT AfrOil

It did state, though, that the new institution still lack access to reliable electricity supplies
would operate in a fashion similar to that of and clean cooking fuel, it noted. The oil and gas
Africa Energy Investment Corp. (AEIC), a industry can and should play a key role in elim-
developmental financial institution set up by inating energy poverty, despite environmental
APPO to channel resources into the continent’s activists’ insistence that new generating capacity
energy industry. come from renewable sources, it asserted.
“In addition to ensuring capital is made avail- Ayuk expressed satisfaction with the signing
able for African oil and gas, the bank will serve as of the MoU, saying: “The African Energy Cham-
a vessel for mobilising African-sourced finance,” ber has been pushing for the creation of an Afri-
the chamber said. “Rather than utilising inter- can Energy Bank, one that is African-based and
national banks for pension funds, the bank will Africa-focused, and I am proud to announce
serve as an investment corporation that will that the Afreximbank and APPO have taken the
channel these funds into African projects, thus first steps towards its creation. The bank will be
ensuring high returns of investment as well as critical for Africa’s energy sector, serving as a cat-
the development of Africa’s energy sector.” alyst – not a substitute – for private investment
The statement also stressed that the African in African energy. This is a practical strategy for
Energy Bank would focus on ending energy prosperity and a pragmatic vision that must be
poverty. This phenomenon remains widespread embraced by all who want to make energy pov-
in Africa, where hundreds of millions of people erty history and fight climate change.” ™

TotalEnergies issues sale

document for SPDC stake

NIGERIA TOTALENERGIES (France) has officially
begun the process of selling its 10% stake in the
Shell Petroleum Development Corp. (SPDC)
joint venture and has named Scotiabank (Can-
ada) as its financial advisor for the transaction,
Reuters reported on Tuesday (May 17).
The French major has issued a sale document
tendering for interest in the minority stake,
the news agency said. It also explained that
TotalEnergies was looking to sell only certain
SPDC assets – namely, its stakes in 13 onshore
oilfields and three shallow-water offshore sites,
along with infrastructure including 3,500 km
of pipelines leading to the Bonny and Forcados TotalEnergies intends to retain its stakes in OML 23 and OML 28 (Image: Shell)
export terminals. The company intends to keep
its stakes in two other licence areas assigned to Pouyanné indicated that TotalEnergies’ deci-
SPDC, OML 23 and OML 28, and in the pipeline sion to sell was at least partly motivated by con-
network that pumps associated gas to the Nige- cerns about clashes with host communities in
ria LNG (NLNG) plant, it added. southern Nigeria.
Reuters described the publication of the sale Shell and SPDC’s other shareholders have
document as confirmation of TotalEnergies drawn significant criticism for environmen-
CEO Patrick Pouyanné’s announcement in late tal damage and oil spills resulting from their
April that the company intended to unload its operations. They have also been faulted for not
holdings in the joint venture. However, when spending the time, effort and money needed to
contacted by the news agency for comment, develop successful community projects and rev-
both the French major and Scotiabank declined enue-sharing programmes.
to discuss the matter. The French giant will not be the first SPDC
Pouyanné announced the plans to exist shareholder to leave the joint venture. Shell
SPDC on April 28, during a conference call on (UK), the operator, has already solicited offers
his company’s first-quarter earnings. He did for its 30% stake and said earlier this year that
not say when the sale might go forward or how it was considering bids from four Nigerian
much the French major expected to collect from bidders. SPDC’s other two shareholders, Italy’s
the transaction. Nor did he reveal whether any Eni and Nigerian National Petroleum Corp.
potential investors had expressed interest in the (NNPC), have not yet said whether they intend
stake. to keep their stakes.

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