On the continent, oil majors Total, Shell and Eni have shifted their focus over to natural gas developments, but their renewable energy and carbon offset projects still make up a relatively small slice of their business.
This is part 2 of a 4-part series
Big oil companies are applying their energy transition strategy to their African operations, whether the continent’s states like it or not. The problem for the latter does not lie with oil fields currently under production, which will never have trouble finding investors, even if European majors are exiting such investments. In Nigeria, for instance, Shell, Total and Eni recently sold a 45% interest, valued at $1.1bn, in the onshore OML 17 oil field[HC1] to the billionaire entrepreneur Tony Elumelu.
Instead, the risk is that there will be a slowdown in the development of new projects. In late 2020, during Africa Oil Week, BP’s Africa new ventures vice president, Jonathan Evans, said that, in view of carbon reduction requirements, BP would limit its oil extraction projects on the continent going forward.