British multinational oil and gas company bp has long-represented an important partner for African countries. Considered to be one of the world’s ‘supermajors,’ the multinational has operated in the continent for more than 100 years, spearheading activities across the entire energy value chain including oil and gas exploration, crude oil production and refining, and distribution and storage. Having established itself as a major player in the African oil and gas industry, the company is broadening its energy portfolio under efforts to decarbonize operations, grow low carbon sectors and reimagine energy for people and the planet.
The company’s South African subsidiary has been at the forefront of the country’s energy development, spearheading projects and progress across the exploration, production and retail industries. As bp South Africa and the larger group usher in a new era of energy expansion in Africa, the African Energy Week (AEW) conference – taking place from October 16-20 in Cape Town – serves to support this agenda, providing a platform for deals to be signed that will consolidate bp’s role and contribution towards Africa’s energy future.
bp South Africa is making its return to AEW as a Platinum Sponsor, thereby taking on a central role in the event. The company’s high-level sponsorship speaks to caliber of the event as well as to its role in facilitating investment and driving development across the African energy sector. Following a successful 2022 edition whereby bp also participated as a platinum sponsor at AEW as well as scooped the Environmental, Social and Governance Leader of the Year Award, bp’s participation at AEW 2023 is a testament to the company’s commitment to driving growth across Africa’s energy market while advancing local content development, infrastructure rollout and a just and inclusive energy transition.
bp’s South African subsidiary has positioned itself as one of the largest oil companies in the country. The company has over 500 fuel stations across the country and holds a 50% share in South Africa’s largest refinery: SAPREF – which is responsible for 35% of the country’s refining capacity. The company also has six storage terminals and through partnerships across the marine, aviation and industry sectors, bp South Africa represents a major supplier of fuel products. In addition to supplying critical fuel products for the country, bp South Africa places sustainability at the center of all of its operations. The company was one of the first in the petroleum industry to conclude a Broad-Based Black Empowerment transaction in 2001 and also actively contributes to the development of local logistic supply chains; prioritizes skills and technology transfer through training workshops and programs; and employs over 1,000 South Africans. On the environmental side, the company aims to become net zero by 2050 or sooner and actively invests in low carbon solutions.
The subsidiary’s success in the retail segment is made possible through the bp group’s experience across every other segment of the energy value chain, and across the continent this success has been replicated both downstream and across the upstream sector. Regarding exploration and production, the energy major has emerged as the partner of choice for many African governments, national oil companies and independents, driving a series of successful project developments that are poised to transform the continent’s economic landscape.
In Mauritania and Senegal, bp is spearheading the development of the Greater Tortue Ahmeyim (GTA) project alongside energy major Kosmos Energy. The project’s first phase, set to come online at the end of 2023, will produce up to 2.5 million tons per annum (mtpa) of liquefied natural gas (LNG), bringing fuel supplies to a region in high-need of reliable energy. The company is also working with the government and Kosmos Energy to advance Phase 2 of the GTA development, which will increase production to 5 mtpa, generating both energy and revenue for the MSGBC region. bp also operates the C8 and BirAllah blocks in Mauritania and is spearheading the Raven Infills Project in Egypt. These exploration assets are poised to transform the regional energy sector, and showcase bp’s ongoing drive to advance energy security on the back of upstream investments. In Mozambique, bp has a long-term offtake agreement in place for the Coral Sul Floating LNG facility, with the company delivering first-cargo last year. With a capacity to produce 3.4 mtpa, bp will facilitate the export of Mozambican LNG to global markets.
In addition to oil and gas, bp is making great strides in investing in sustainable energy. The company has redirected capital and expertise to the development of renewable energy projects, partnering with investors and governments to advance electrification and reduce emissions. The group inked an agreement with Mauritania to assess the feasibility and commercial viability of green hydrogen in the country in 2022 while a similar deal was struck with Egypt this year. During AEW 2023, bp will not only provide insight into the company’s upstream oil and gas success but will provide a progress report on the its sustainable investments.
“bp represents a strong partner for Africa and will continue to play a significant role in expanding energy markets, bringing new supplies online while facilitating long-term and sustainable growth on the back of energy investments,” states NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC). “The energy major continues to demonstrate its commitment to tackling energy poverty through large-scale project developments ranging from upstream oil and gas to downstream distribution to sustainable projects and partnerships. The company’s South African subsidiary’s sponsorship is a testament to the role the event plays in facilitating new deals between bp and African countries, and we are looking forward to witnessing agreements being signed and seeing the bp South Africa delegation engage with a suite of African and global players.”
In 2023, with many African countries working towards accelerating the development, exploitation and monetization of hydrocarbon resources to alleviate energy poverty, bp’s contribution to the sector has become increasingly impactful. During AEW 2023 and as a Platinum sponsor, bp South Africa will spearhead panel discussions, engage in networking forums and showcase current projects and progress across the African sector.
AEW is the AEC’s annual conference, exhibition and networking event uniting African energy policymakers and stakeholders with global investors to discuss the opportunities across the continent’s energy industry. For more information about AEW 2023, visit https://AECWeek.com
Distributed by APO Group on behalf of African Energy Chamber.