{"id":11681,"date":"2022-01-24T13:19:34","date_gmt":"2022-01-24T13:19:34","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=11681"},"modified":"2022-01-24T13:19:34","modified_gmt":"2022-01-24T13:19:34","slug":"turning-africas-oil-production-decline-around","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/turning-africas-oil-production-decline-around\/","title":{"rendered":"Turning Africa’s Oil Production Decline Around"},"content":{"rendered":"

Kola Karim, Shoreline Energy CEO and African Energy Chamber Advisory Board Member provides insight into how Africa’s producing nations can revitalize production<\/em><\/p>\n

Despite being blessed with abundant oil and gas resources, Africa\u2019s production has been on the decline, representing a challenge for the continent as moves to initiate a COVID-19 economic recovery and address energy poverty. With exploration restricted due to reduced capital for fossil fuel projects and the transition away from hydrocarbons, the continent needs to act now if it is to reap the benefits of its oil and gas.<\/p>\n

In an exclusive interview with the African Energy Chamber (AEC), Kola Karim, CEO and Managing Director of Shoreline Energy International and AEC Advisory Board Member provides more clarity on the current situation.<\/p>\n

What will this production underperformance in Nigeria and other African countries mean for the continent as a whole?<\/strong><\/p>\n

Underperformance will have a direct effect on the ability of countries to fund budgetary spending. There has been a direct linkage for many years between the oil price and the ability to many African governments to balance the books. The massive slow down with have seen due to covid and the significant economic shocks it has produced coupled with production below capacity will certainly create fiscal pressure. We have seen the oil price rise in the last few quarters to a healthy level, however without the production to take advantage of higher prices, expect to see the usual challenges in funding capital spending. Deficit spending will also therefore depend on the view of the markets on how much damage and for how long countries<\/p>\n

What do you feel are the primary reasons influencing production decline in Africa?<\/strong><\/p>\n

I don\u2019t think we can take a cookie cutter approach to identifying where the problems lie. For instance, our production challenges on onshore Nigeria are very different to challenges in other countries that may be more constrained by limited investment in infrastructure or more straightforward operational bottlenecks. Beyond these more systemic challenges m I think also that covid has had a significant impact which has still to be worked out of the supply chain and we will continue to see the effect of this through 2022. We would typically expect a natural 4-5% decline in production in the industry. However, Covid has seen those rates double to 10% over the last couple of years. The massive disruptions in global supply chains has also meant that equipment and maintenance activities such as part replacement has been severely disrupted across the industry leading to significant production delays and production shut ins in the worst cases.<\/p>\n

What can be done to turn this around?<\/strong><\/p>\n

We are facing some quite significant headwinds. The Systemic and Covid related challenges I alluded to earlier are significantly complicated by the additional variable of de-carbonisation which continues to create a potential financing gap for both local producers and IOC\u2019s looking to invest in new production. Banks are retreating from lending to Oil and Gas projects, and this creates an uphill task with regard to the key cornerstone of any turnaround which is financing. We need to see additional financing to fix supply chains and allow manufacturing and maintenance inputs to be located nearer to production facilities on the continent and we need more investment in opening up additional reserves to close the production gap as consumption returns.<\/p>\n","protected":false},"excerpt":{"rendered":"

Kola Karim, Shoreline Energy CEO and African Energy Chamber Advisory Board Member provides insight into how Africa’s producing nations can revitalize production Despite being blessed with abundant oil and gas … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":9625,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,11],"tags":[63,6986,1835,2082,7505],"class_list":["post-11681","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-top-news","tag-africa","tag-african-energy-chamber","tag-oil-and-gas","tag-production","tag-shoreline-energy","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/01\/ReconAfrica-Rig.jpg?fit=403%2C518&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-32p","jetpack-related-posts":[{"id":8584,"url":"https:\/\/www.oilnewskenya.com\/index.php\/us-africa-energy-advisory-committee-constituted-to-push-energy-dialogue-and-investment\/","url_meta":{"origin":11681,"position":0},"title":"US-Africa Energy Advisory Committee Constituted to Push Energy Dialogue and Investment","author":"","date":"July 14, 2020","format":false,"excerpt":"The African Energy Chamber has appointed a US-Africa Committee to serve on its Advisory Board and support the development of stronger energy cooperation and investment between the United States and Africa. Serving in their personal capacities, the members of the US-Africa Committee gather several decades of experience in government and\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/07\/AEC_vertical_on_white-1024x644-1.png?fit=1024%2C644&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/07\/AEC_vertical_on_white-1024x644-1.png?fit=1024%2C644&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/07\/AEC_vertical_on_white-1024x644-1.png?fit=1024%2C644&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/07\/AEC_vertical_on_white-1024x644-1.png?fit=1024%2C644&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":8182,"url":"https:\/\/www.oilnewskenya.com\/index.php\/energy-lobby-to-host-webinar-on-financing-the-recovery-of-african-oil-and-gas-markets\/","url_meta":{"origin":11681,"position":1},"title":"Energy Lobby to Host Webinar on Financing the Recovery of African Oil and Gas Markets","author":"","date":"May 11, 2020","format":false,"excerpt":"In line with its recently-released Common-sense Energy Agenda that calls for banking and financial support to the oil & gas sector, the African Energy Chamber will be hosting a webinar exploring the role of Private Equity, gas monetization and African marginal oilfield producers in supporting economic recovery. The webinar is\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8604,"url":"https:\/\/www.oilnewskenya.com\/index.php\/energy-chamber-constitutes-local-content-committee-to-push-for-a-more-inclusive-energy-industry\/","url_meta":{"origin":11681,"position":2},"title":"Energy Chamber Constitutes Local Content Committee to Push for a More Inclusive Energy Industry","author":"","date":"July 16, 2020","format":false,"excerpt":"The African Energy Chamber \u00a0has appointed its highest-level advisory committee to serve on local content matters and support capacity building across the continent. Local Content Committee members are part of the Chamber\u2019s Advisory Board and serve in their personal capacities, representing decades of experience working for the leading local and\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2019\/02\/Tullow-Oil.jpg?fit=713%2C476&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":14652,"url":"https:\/\/www.oilnewskenya.com\/index.php\/oil-gas-crucial-for-african-growth-aec-calls-for-industry-support-to-defend-african-market\/","url_meta":{"origin":11681,"position":3},"title":"Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market","author":"","date":"January 29, 2025","format":false,"excerpt":"The African Energy Chamber calls for the industry to stand against growing opposition from western agencies undermining the economic growth potential presented by Africa\u2019s oil and gas industry. Africa\u2019s oil and gas industry \u2013 critical for improving energy access, driving industrialization, spurring economic growth and achieving sustainable development \u2013 faces\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/06\/Senegal-Sangomar.png?fit=742%2C417&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/06\/Senegal-Sangomar.png?fit=742%2C417&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/06\/Senegal-Sangomar.png?fit=742%2C417&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/06\/Senegal-Sangomar.png?fit=742%2C417&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":14482,"url":"https:\/\/www.oilnewskenya.com\/index.php\/african-energy-chamber-aec-endorses-oandos-783m-acquisition-of-nigerian-agip-oil-company\/","url_meta":{"origin":11681,"position":4},"title":"African Energy Chamber (AEC) Endorses Oando\u2019s $783M Acquisition of Nigerian Agip Oil Company","author":"","date":"August 27, 2024","format":false,"excerpt":"Nigerian energy company Oando PLC has successfully completed its acquisition of 100% of the shareholding interest in the Nigerian Agip Oil Company (NAOC) from Italian multinational Eni. As the voice of the African energy sector, the African Energy Chamber (AEC) endorses this groundbreaking acquisition, which underscores the growing role of\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/08\/Afreximbank-Oando.png?fit=942%2C670&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/08\/Afreximbank-Oando.png?fit=942%2C670&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/08\/Afreximbank-Oando.png?fit=942%2C670&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2024\/08\/Afreximbank-Oando.png?fit=942%2C670&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":11951,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-takes-the-lead-in-exploration-production-and-regulation-in-2022\/","url_meta":{"origin":11681,"position":5},"title":"Nigeria Takes the Lead in Exploration, Production and Regulation in 2022","author":"","date":"March 3, 2022","format":false,"excerpt":"Nigeria represents one of Africa\u2019s heavyweights when it comes to hydrocarbon exploration and production. With over 36 billion barrels of oil (bbl) and 200 trillion cubic feet of natural gas, the country has managed to position itself as both an attractive upstream market and competitive producer. In its Q1 2022\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Nigeria-Oil-Rig.jpg?fit=907%2C535&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Nigeria-Oil-Rig.jpg?fit=907%2C535&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Nigeria-Oil-Rig.jpg?fit=907%2C535&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Nigeria-Oil-Rig.jpg?fit=907%2C535&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/11681","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=11681"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/11681\/revisions"}],"predecessor-version":[{"id":11682,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/11681\/revisions\/11682"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/9625"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=11681"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=11681"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=11681"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}