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AfrOil NEWS IN BRIEF AfrOil

He thanked the Executive Secretary and man- Above-the-ground risks such as fiscal regimes, approval of Impact becoming a ‘Control Person’
agement of Total for making the project a real- contracts’ sanctity or red tape remain the major of the Company and approving the terms of the
ity and appealed to relevant stakeholders for obstacles to investment in Africa and capital Transactions. Impact will be considered a Con-
more projects so that the skills and capabilities inflow is unlikely to pick up even under better trol Person under the policies of the TSX Venture
that were developed during the project can be market conditions, unless something is done Exchange and applicable securities laws as it will
retained.He conveyed the company’s pride to be about it. hold more than 20% of the outstanding voting
associated with the project for the Total/NNPC Similarly, substantial work needs to be done shares of Africa Energy upon completion of the
Joint Venture and the remarkable accomplish- on unlocking domestic capital and local cur- Transactions.
ments that would be attained and assured that it rency financing mechanisms that can fully The Company anticipates completion of the
would be completed in record time to meet the leverage the resources sitting on the continent. Transactions in the coming weeks, subject to sat-
Ikike development project timelines. Committee members agreed that there is a lot of isfaction of all conditions precedent, including
NCDMB, October 16 2020 capital available to finance Africa’s recovery and receipt of final approval of the TSXV. The Com-
fight its energy poverty, from debt to equity, from pany will provide a further update once closing
commercial to institutional money. However, a of the Transactions has taken place or as may
INVESTMENT lack of engagement, too little capacity building otherwise be required in accordance with the
and an overall insufficient knowledge of oppor- policies of the TSXV and applicable law.
African Energy Chamber tunities and funding tools available are still lim- Africa Energy, October 18 2020
iting the ability of African investors to invest in
discusses oil and gas their own continent. FINANCE
A key issue in this regard pertains to the
investment adoption of environmental, social and govern-
ance (ESG) standards. As investors worldwide
Across the world, the COVID-19 pandemic, embrace the energy transition and adopt strong African Energy Chamber
along with its subsequent travel restrictions and ESG scrutiny in their investment decisions, the says BEAC’s forex rules
historic crash in oil prices, is deferring major need for African sponsors, developers and pro-
final investment decisions and billions of dollars jects’ owners to adhere to such standards is dire if hurt local companies
of capital that were expected to flow into Africa’s they want to appeal to credible investors.
energy industry. Or is it really? Finally, the rolling out of the African Con- The African Energy Chamber will file a lawsuit
While the impact of the COVID-19 pan- tinental Free Trade Area (AfCFTA) could be a seeking an injunction to stop the implemen-
demic on the oil market has been unforgiv- major enabler for cross-border investment and tation of the Bank of Central African States
ing, the latest meeting of the African Energy the regionalization of Africa’s energy develop- (BEAC)’s reckless foreign exchange (forex) reg-
Chamber’s Investment & Regulatory Affairs ment. Such opportunities to work on regional ulations that are anti-African, against small busi-
Committees last week tended to downsize the projects, especially on the power and gas side, nesses, and against investors.
responsibility of such external shocks to explain and to leverage on a free trade area to build new International energy companies and local
the lack of investment in Africa. While it is clear business models should not be underestimated. services companies spend a lot of time serving
that 2020 will remain one of the worst years in Once again, stronger dialogues between African people, solving problems, and saving lives with
oil & gas history, the end of the pandemic and nations, regulators and investors could result in the energy and service they provide. The African
the rebalancing of the market will not necessarily strong projects coming off the ground which Energy Chamber’s members create jobs, expand
translate into investments in Africa unless bold would go a long way in supporting future growth economic opportunity for many local commu-
reforms are made. across Africa. nities across Africa and support a prosperous
In a high-level conversation with René African Energy Chamber, October 19 2020 future for all Africans. Despite the COVID-19
Awambeng, Global Head, Client Relations, pandemic, they never stopped working for our
Afreximbank; Chijioke Akwukwuma, Manag- Shareholders approve continent, and continue to inspire us by getting
ing Director / CEO, Ocean Deep Drilling ESV up every day and working harder because they
Nigeria Limited (ODENL); Nicolas Bonnefoy, Africa Energy’s deals to believe in the power of free market as a force
Managing Director, Africa Oil & Gas LTD; Bill for good in our communities, and in our fight
Drennen, President and CEO, WTD Resources boost stake in Block 11B/12B against poverty. At the African Energy Chamber,
LLC and Gontse Moseneke, CEO, GAIA Infra- we get up every day to help them do it. We must
structure Capital, the Chamber’s committee Africa Energy held a special meeting at which fight for the ability of our energy industry to hire,
members stressed the needs to engage in mean- disinterested shareholders were asked to con- invest, grow, and succeed in Africa.
ingful reforms while working harder to unlock sider and, if deemed appropriate, approve As 2020 comes to an end, Africans are living
domestic capital in Africa. matters related to the recently announced trans- in a remarkable moment of uncertainty due to
From a regulatory perspective, most African actions with Impact Oil & Gas and Arostyle the ongoing COVID-19 pandemic. Millions
jurisdictions were already uncompetitive for oil Investments through which the Company will have lost their jobs, and hopes of an economic
& gas investment before the current crisis, and increase its effective interest in Block 11B/12B recovery remains non-existent for a majority
plagued by policy uncertainty and issues around offshore South Africa from 4.9% to 10%, subject of African families. As if that is not enough,
the sanctity of contracts. While some countries to certain consents and approvals. bureaucrats at the Bank of Central African States
have made remarkable efforts in recent years Shareholders overwhelmingly approved, (BEAC) have decided to push through job-kill-
to reform their legislation, and have become with 99.91% of shares represented at the meet- ing and investment-killing regulations that are
much more attractive and business-friendly ing voting in favour of the ordinary resolution already increasing unemployment, and will ulti-
jurisdictions, considerable work remains to as set forth in the management information cir- mately kill any hopes of seeing future investment
be done to promote an enabling environment. cular dated September 18, 2020, relating to the in Central Africa.

P20 www. NEWSBASE .com Week 42 21•October•2020