In this exclusive interview, Valuechain’s William Emmanuel Ukpoju shares his encounter with NJ Ayuk, the Executive Chairman of the African Energy Chamber, to discuss his recognition in the Who’s Who Legal: Energy 2024 report and his tireless advocacy for African energy development. With a decade of consecutive recognition as a leading practitioner in Energy Law, Ayuk shares his vision for an energy-independent Africa, his initiatives to promote investment and growth in the sector, and his insights on the evolving energy landscape. He also emphasizes the importance of balancing energy needs with environmental and social responsibilities and offers advice to young professionals looking to make a career in the energy industry. As a renowned expert in energy law and a passionate advocate for African energy development, Ayuk’s perspectives offer valuable insights into the opportunities and challenges shaping the continent’s energy future. Mr. Ayuk dwelt particularly on the structuring, local content, documentation and negotiation of oil, gas and petrochemical transactions including, acquisitions, divestitures, joint ventures, project development and financing.
His practice focuses on upstream, midstream and downstream transactions in the domestic and international energy sectors. His clients include oil and gas producers, operators, petrochemical manufacturers, oil field services companies and financing parties in the energy industry.
He has played a key role in negotiating and documenting the purchase and sale of upstream and midstream oil and gas assets, farm-ins, farm-outs, volumetric production payments and other drilling fund and development dollar investment arrangements, as well as petrochemical project development, asset acquisition and divestiture and joint venture investments. Mr. Ayuk brings his understanding of energy issues to the table and helps clients to evaluate risks and opportunities in a transaction while pursuing their objectives. He continuously advises the government on judicial modernization, rule of law issues, training of judges, prosecutors and lawyers. He regularly participates in industry-specific conferences and seminars as speaker and moderator.
Congratulations on your recognition in the Who’s Who Legal: Energy 2024 report. How does it feel to be acknowledged as a leading practitioner in Energy law?
Thank you very much. This recognition marks the tenth consecutive year, and I am grateful to my team at the African Energy Chamber, CLG, and the entire energy and legal practices community for their dedication and support. I am truly honoured to be recognized by my peers in the legal community. This acknowledgment affirms that our hard work is making a positive impact on African communities, economies, the business sector and sustainable development. It motivates me to continue striving for excellence in the field of energy law.
You have been a strong advocate for African energy development. What drives your passion for this cause?
Africa is rich in natural resources, including oil, gas, coal, and critical minerals, yet it remains one of the poorest regions in terms of GDP growth, industrialization, and sustainable development. With over 600 million people living in energy poverty and 900 million lacking access to clean cooking, it is crucial to maximize and fast-track the exploitation of the continent’s estimated 125.3 billion barrels of crude oil and 620 trillion cubic feet of gas. I envision an energy-independent and secure Africa where energy poverty is eradicated by 2030. Many African countries, such as Mozambique, Angola, Equatorial Guinea, Libya, Nigeria, and Gabon, rely heavily on oil revenue to sustain their economies, with new producers like Namibia, Uganda, Senegal, and Mauritania emerging. The rhetoric from Western countries that Africa should abandon its oil and gas resources in the name of climate change will only drive the continent further into poverty. Revenue from hydrocarbons is vital for the growth of African economies and should be optimized to support other sectors, including health, education, and infrastructure, while we also adopt renewables to diversify the energy mix.
As Executive Chairman of the African Energy Chamber, what initiatives are you implementing to promote investment and growth in the African energy sector?
The AEC continues to unite African governments and energy stakeholders with their global counterparts on capacity building, infrastructure and local content development, market integration, and sustainable energy initiatives. We have hosted several “Invest in African Energies” roadshows in London, Nigeria, and Paris during the first half of 2024, with more planned for Dubai and Frankfurt later this year. These roadshows highlight lucrative investment opportunities for global stakeholders in both well-established and emerging energy markets, including Liberia, Sierra Leone, Nigeria, the Republic of Congo, and Uganda. Additionally, this year’s Invest in African Energy: African Energy Week conference, taking place from November 4-8 in Cape Town under the theme “Invest in African Energies; Energy Growth Through an Enabling Environment,” will showcase prospects across Africa’s entire energy value chain, including oil, gas, renewables, and power.
How do you see the energy landscape in Africa evolving in the next five years?
Oil and gas will continue to play a crucial role in stabilizing Africa’s energy supply. Both global and African energy players recognize the importance of Africa’s hydrocarbons for energy security and will increase investments across the entire value chain. We will see more exploration activities in countries like Namibia, the Republic of Congo, Libya, Algeria, Egypt, and Angola. New projects are expected to come online in 2024 and beyond. For instance, Senegal achieved its first oil in the Sangomar project in June and anticipates its first gas production at the Greater Tortue Ahmeyim later this year. The Dangote Refinery, commissioned in 2023 in Nigeria, is a game changer for West Africa’s energy supply. Refinery developments in Angola will intensify, with funding secured for the Lobito and Cabinda projects. The development of the East African Crude Oil Pipeline in Uganda and the Trans-Sahara Gas Pipeline, which will run through Niger, Nigeria, and Morocco to Europe, will also gain momentum. The new Africa Energy Bank, operated by the African Export-Import Bank and the African Petroleum Producers Association, will facilitate large-scale investments to unlock the continent’s full energy potential. We also expect increased penetration of renewables.
What role do you believe renewable energy will play in Africa’s energy mix, and should governments and private sector players work together to accelerate its adoption?
Africa needs to harness its entire energy base, including wind, solar, and green hydrogen, for sustainable growth. While hydrocarbons will provide baseload power in most African countries, renewables will help maximize the diversification of the energy mix. Countries like Mozambique, Ethiopia, and Zambia rely on hydropower to drive their economies and export revenues. Upcoming renewable energy markets, such as Mauritania, Algeria, Egypt, and Namibia, are seeking to exploit their green hydrogen and solar energy potential to boost export revenues and local and regional energy security. Cooperation between governments and the private sector is crucial to unlocking this potential.
You have extensive experience in energy law and have worked on various projects across Africa. What lessons have you learned, and how do you apply them in your work?
Each country and region has unique legal frameworks, economic growth aspirations, and resources to drive its sustainable growth agenda. A one-size-fits-all approach, often advocated by Western countries, does not work for Africa. While Europe is focused on decarbonization, Africa needs to industrialize by leveraging its entire energy resources. We work with various African governments, energy stakeholders, and international partners to tailor strategies and regulatory solutions that align with local contexts. Africa’s high rate of energy poverty means it cannot afford to rely solely on renewables, leaving its oil and gas resources untapped. Securing financing for oil and gas projects from international players has become complex, making engagement with local private sector entities increasingly vital. We optimize cooperation between project developers and regional financiers, such as Afreximbank and International Finance Corporation, as well as willing international financiers like the OPEC Fund, to advance Africa’s energy market growth.
How can African countries balance their energy needs with environmental and social responsibilities?
Africa accounts for a small share of global greenhouse gas emissions, at 3.8%, and is a champion in environmental sustainability. Countries like Kenya, Gabon, Malawi, Mozambique, Togo, Nigeria, Burundi, Rwanda, and the Democratic Republic of Congo are advancing Africa’s carbon sinks through carbon credit market development. For example, the Republic of Congo’s National Oil Company SNPC is planting 1,000 hectares of trees to offset its carbon footprint, while Canadian Oil Company Africa Oil plans to implement two carbon offset projects in Kenya. Developing the continent’s oil and gas resources presents an opportunity for Africa to raise the funds needed to finance its decarbonization initiatives, including the rapid deployment of renewables.
What advice would you give to young professionals looking to make a career in the energy industry?
Africa will play a crucial role in shaping the global workforce for decades to come. With increasing global energy demand and evolving energy market business solutions, African youth have a vital role to play. An entrepreneurial mindset and a willingness to learn and connect with innovative brands and communities will enable today’s youth to contribute significantly to economic transformation and a better future.
How do you stay up-to-date with the latest developments and trends in the energy sector?
The African Energy Chamber collaborates with African governments and global consortia of petroleum producers, including APPO, the Gas Exporting Countries Forum, and OPEC, to identify, address, and unlock African challenges and prospects. We also work with global energy market intelligence firms, such as Rystad Energy, S&P Global Insights, and Wood Mackenzie, to produce webinars and reports exploring trends within the African and global energy markets.
What’s next for NJ Ayuk and the African Energy Chamber? Any exciting projects or initiatives on the horizon?
Our primary focus is to end energy poverty in Africa by 2030. We are exploring various avenues to attract fresh investments in African energy to make this mandate a reality. This year’s edition of Invest in African Energy: African Energy Week aims to enhance the flow of investments into African markets.