He said governments; regulators, companies and service providers have huge roles, which hinge on the actions they take in respecting the sanctity of contracts and consistency of taxation.

Transparency & stability of regulation
Speaking at a panel session at the just ended West Africa International Petroleum Conference and Exhibition (WAIPEC 2019) in Lagos on the topic “how the impact of the oil sector in Sub Saharan Africa plays out over the next five years,” he said there is also the need for transparency, good governance, stability of regulation and speed of decision-making.

The Well Delivery Manager said international oil companies (IOCs), therefore need to operate efficiently and effectively, reduce costs and create stakeholder value through operational excellence supported by innovation and technology

The continent, he said has quality exploration potential evidenced by the existing developments awaiting approval, significant existing production and a highly skilled workforce.

Onshore/offshore
“This makes onshore and offshore production activity very competitive and Africa has taken steps to grow and strengthen structures in its oil and gas sector which makes it more attractive,” he said.

In the areas of current developments and challenges facing the industry, Mr Mawuli said among these encounters is the price of oil, which remains a challenge in an uncertain oil price environment.

“Under these conditions we need to make sure our projects are economically robust and harness positive conditions for a sustainable business and a basis for future growth,” he said.

On global competition, he said the United States shale has and will continue to be a major competitor for funds, saying, “They are the key competitors for conventional oil. And there is major competition between conventional oil provinces where actions by governments … can be the key differentiator.”

Spend and invest
This he said requires making sure that African economies are places where IOCs could spend and invest their funds with confidence and have trust in local institutions, government and laws.

In achieving environmentally sustainable operations, he said IOCs need to work with host countries to focus on fewer emissions, more energy-efficient processes, along with a greater focus on how to manage the energy transition.

At Tullow, he said “we look at shared prosperity, which has been a cornerstone of our business in Africa, ensuring that oil and gas is providing employment, building local supply chains and overall helping national economic development.”

He assured that “In the coming years, we also intend to focus more on the broader sustainability agenda, as we have a responsibility to work with African countries to develop oil and gas with an even greater focus on environmental stewardship.”

Strong and sustained demand
Tullow, he said, holds the view that there is a strong and sustained demand for oil from Africa. “That is why we continue to invest in near field opportunities in Ghana, considering additional exploration opportunities in Ghana and elsewhere, while pushing ahead with our Kenya development.”

This projection, Mr Mawuli said gives IOCs such as Tullow the confidence to develop its projects in Africa such as in Kenya but also continue to explore for new oil.

Collaborating and leveraging on technology and experience within the region he said offer one of the best ways for oil and gas companies to assure the sort of stable operating environments necessary for underdeveloped areas to attract further investment and grow the local economy.

Tech and innovation
“IOCs partnering each other to create an opportunity to apply new technology and innovation, leveraging know-how of other companies allows for better project delivery and good outcomes and long-term sustainability of projects is guaranteed with better collaboration and pooling of resources to bring a project on-stream.

“Our industry is dependent on global and investment capital. Attracting more of that to Africa will deliver many projects that are waiting to be approved and this he said Tullow believes wholeheartedly in Africa’s ability to compete against all other oil & gas producing regions,” he said.