+27 71 448 3496
leon@whyafrica.co.za

China eyes Africa’s oil and gas

Share Article
Oil and gas drilling
China is expanding its global oil and gas interest. Image credit: Ben Wicks from Unsplash

China eyes Africa’s oil and gas

China is expanding its stakes in strategic oil and gas developments across Africa.

As the continent’s largest trading partner, China has played an active role in harnessing Africa’s energy resources and developing critical infrastructure to date. As the country seeks to secure future energy supplies – as well as foster regional diplomacy in the Global South – China has expanded its stakes in strategic, integrated oil and gas developments across the continent.

Together, China’s state-owned oil firms – China National Petroleum Corporation (CNPC), China National Offshore Oil Corporation (CNOOC) and China Petroleum & Chemical Corporation (Sinopec) represent the fourth-largest energy investors in Africa, following European IOCs bp, Shell and Eni.

These companies are leading and financing some of Africa’s most significant oil and gas projects, from deepwater exploration to enhanced oil recovery to regional pipelines that connect new resources to underserved markets.

CNOOC in Africa

In Tanzania, CNOOC is partnering with the Tanzania Petroleum Development Corporation to explore deep-sea Blocks 4/1B and 4/1C – located in close proximity to existing gas discoveries – for offshore oil and gas.

The company launched wildcat drilling in Gabon’s Blocks BC-9 and BCD-10 at the start of 2023, with its Tigre prospect holding up to 1.4 billion barrels of potential recoverable resources.

Last May, CNOOC renewed its production sharing contract with the Nigerian National Petroleum Corporation and TotalEnergies for OML 130 – home to the producing Akpo and Egina fields and Preowei discovery – which could enable a future FID to be made on the new discovery.

In terms of production, South Sudan has been in talks with CNPC to boost output from Blocks 3 and 7 in the Paloch fields in Upper Nile, which the Chinese firm operates in partnership with Malaysia’s Petronas and Sinopec.

Chinese players make their presence felt

In addition to upstream investments, Chinese players are leading the construction of critical midstream infrastructure across the continent. In Mozambique, CNPC holds a 20% stake in the Coral Sul LNG project, which has transformed Mozambique into a global LNG exporter after delivering first cargo in November 2022.

In East Africa, CNOOC holds an 8% stake in the planned East African Crude Oil Pipeline (EACOP), while CNPC subsidiary China Petroleum Pipeline Engineering is responsible for the construction and supply of the project’s line pipes.

Transporting Uganda’s crude oil to the Port of Tanga in Tanzania, EACOP will facilitate crude exports to global markets, as well as stimulate economic activity, new infrastructure and improved logistics in the central trade corridor between the two countries.

In Niger, CNPC is leading the development of the Niger-Benin Export Pipeline, set to increase the country’s oil output from 20,000 barrels per day (bpd) to 130,000 bpd upon completion. Operated by CNPC, the 1,900-km pipeline will connect Niger’s Agadem oil fields to the Port of Sèmè in Benin and represents the largest cross-border pipeline invested by CNPC in Africa.

Source:  Energy Capital & Power

China eyes Africa’s oil and gas

WhyAfrica provides on the ground information and business intelligence about the sustainable utilisation and extraction of natural resources in Africa, and can assist your company through:  

  1. Membership:
  • WhyAfrica’s membership offers great business insights to you, your company, and clients.
  • Amongst many other benefits, we will publish editorial content about you or your company on the WhyAfrica online platform and on all WhyAfrica’s social media pages – the annual fee is R6,500 and you can find out more or subscribe here: https://www.whyafrica.co.za/product/membership/ 
  1. Sponsorship:
  • WhyAfrica’s Road Trip takes place annually in July and August. During our Road Trip we aim to visit more than 30 project sites. Sponsoring the Road Trip, or to be a WhyAfrica member, gives you unparalleled insight into the business environment of the countries that we travel to and the project sites we visit.
  • To be a member or sponsor allows you access to invaluable, on the ground, business intelligence and a great marketing opportunity for all companies doing business in Africa.
  • The main aim of our Road Trips is to promote Africa as an investment destination and to showcase Africa’s greatest companies, and projects to our large global audience, which includes a list of potential investors, venture capitalists and serial entrepreneurs.
  • To view the photos of this year’s Southern Africa Road Trip click on the gallery link or follow our Instagram account at why.africa https://www.whyafrica.co.za/road-trips/whyafrica-road-trips/. 
  1. Advertising:
  • We publish daily online articles on our WhyAfrica platform and post them on social media every day. Our combined online reach is more than 45,000. In-article banner ads are highly successful advertising tools as is advertising space on our website.
  • In addition to our bi-weekly newsletters, we publish two printed- and two interactive digital magazines per year. The printed magazines are distributed at major events and conferences throughout the year, and also on our WhyAfrica Road trips.
  • Digital magazines are e-mailed to all our subscribers and shared on our social media platforms. A copy of the latest edition is automatically attached to all our outgoing e-mails.
  • WhyAfrica magazines provide great marketing opportunities. There are also in-article and on-line advertising opportunities at exceptional rates. Contact me for more information on leon@whyafrica.co.za or give me a call.
  • To subscribe to WhyAfrica’s free newsletters and magazines click on the link and register: https://www.whyafrica.co.za/subscribe/  
  1. 4. Partnerships
  • Maximise your African exposure and link with our large business network through becoming one of only 10 WhyAfrica partners. We have only five prime partnership positions left for 2023, so contact me at leon@whyafrica.co.za to get the best deal.

China eyes Africa’s oil and gas

 

Share Article

Sectors

AgricultureEnvironmental Management & Climate ChangeEnergyESGInfrastructureMiningPolitical EconomyTourism and ConservationWater Management