Africa's oil and gas wealth will go to waste unless countries and companies stop sitting on blocks and invest in the production of future energy supplies

Africa represents one of the final frontiers for hydrocarbon exploration worldwide. At a time when demand for oil and gas is skyrocketing globally and African nations are making great strides towards industrializing their economies, developing untapped oil and gas resources will be instrumental. Yet, the continent continues to see a trend whereby companies acquire blocks and hold onto the asset until someone else makes the investment and carries it to success.

While this may have worked decades ago, this is not the way to invest in Africa. Holding onto assets without making the financial commitment will not alleviate energy poverty: it simply brings to light ineffective partners and uncommitted companies. The industry is changing, and independents, major E&P firms and investors need to commit or get out and let others take the reins.

With over 600 million people currently without access to electricity and over 900 million without access to clean cooking solutions, Africa requires a collaborative approach to bringing new supplies on the market. Efforts to industrialize have brought to attention current trends of block inactivity, unexploited acreage and potential markets. Governments want to see movement, to see investment, and to see companies fulfilling their financial and exploration commitments. The time is over where companies take an asset without taking the exploration risk. For Africa to unlock the full potential of its resources, companies with intentions to commit need to be connected to blocks, and this is where the African Farmout Forum steps in.

During this year's edition of the African Energy Week (AEW) conference and Exhibition – scheduled for October 16-20 in Cape Town – an African Farmout Forum will connect new investors to blocks, foster partnerships to stimulate exploration and kickstart a new era of oil and gas development on the back of block acquisition. The African Farmout Forum is spearheaded by financial services company Moyes & Co; global acquisition and divestment advisor Envoi; and oil and gas deal listing platform FarmoutAngel, alongside the African Energy Chamber (AEC), and represents a not-to-be-missed event for global upstream players.

For E&P firms, the African Farmout Forum presents a strategic opportunity to tap into untapped acreage in Africa. The forum hosts policymakers and governments from across the entire African continent, with major plays on show including Angola, the Democratic Republic of the Congo (DRC), Sierra Leone, Kenya and many more. National delegations will provide presentations on upcoming licensing rounds, current merger & acquisition activity and future projections for ongoing exploration initiatives. Meanwhile, for countries with unexploited hydrocarbon potential, the forum allows for direct discussions with independents and major players, fostering engagement that allows for new deals to be signed.

The continent's proven oil and gas resources currently measure 125 billion barrels of oil and 620 trillion cubic feet (tcf) of gas. However, many markets are yet to reveal the full extent of their hydrocarbon deposits. Nigeria, for example, with proven gas reserves of 200 tcf, likely holds more than 600 tcf in recoverable resources while South Africa likely holds up to 209 tcf of onshore gas. Additionally, countries such as the DRC, Zimbabwe, Sierra Leone, Sudan, Kenya and many more have not fully identified resource quantities, paving the way for fresh discoveries and developments.

At the same time, many proven oil-rich basins have blocks that are currently not being developed. Companies are either being slow to invest or countries are being relaxed with procedures and timing. If Africa is going to alleviate its energy crisis, spurring long-term economic growth and industrialization on the back of oil and gas, these blocks need to be developed in an urgent manner.

The African Farmout Forum will introduce companies with oil blocks, permits or licenses to investors and publicly traded companies through interactive executive management presentations. The forum will feature live presentations from company executives and industry experts, with opportunities to engage in Q&A sessions with presenters. This enables collaboration and direct negotiation, eliminating barriers such as lack of clarity. Additionally, the forum offers the chance for stakeholders to schedule one-on-one meetings with company management, further enhancing opportunities for engagement.

"For small and independent companies seeking liquidity, and large companies looking for a balance of individual and institutional investment, the forum offers attendees the ability to engage with a large number of investors from across the globe. Africa needs to stop this trend of sitting on untapped blocks. If the continent wants to make any progress to industrialize and make energy poverty history, independents, major energy firms, state-owned companies and governments need to proactively develop both on- and offshore acreage," stated NJ Ayuk, Executive Chairman of the AEC.

The African Farmout Forum provides companies from across the private and public sectors the unique opportunity to meet, connect and sign deals. Spearheaded by industry experts and featuring numerous upstream market presentations, the forum introduces investors to untapped acreage. Join the African Farmout Forum today and be part of the next wave of upstream success in Africa.

AEW is the AEC's annual conference, exhibition and networking event. AEW 2023 will unite African energy policymakers and stakeholders with global investors to discuss and maximize opportunities within the continent's entire energy industry. For more information about AEW 2023, visit https://aecweek.com.

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