Why the Finance Forum is More Important Than Ever

An update on Africa Oil Week’s 2020 programme for banks, investors and finance experts.

Global oil and gas M&A activity is currently at less than a tenth of the industry’s average quarterly activity over the previous decade, and a wave of bankruptcies caused by a low (and negative!) oil price is beginning to hit the sector. Even in an industry which has been cyclical since its inception, current circumstances are unprecedented, and require innovative thinking from financiers.

As such, Africa Oil Week is continuously perfecting its 2020 Finance Forum Programme to ensure it fits the needs of the industry we serve. Here are the questions currently at the top of our agenda for discussion in Cape Town this November:

In what ways has COVID-19 and the current oil price collapse continue impacted CAPEX and operations in Africa? How will it continue to do so?
Much of Africa is still in the early stages of its journey through COVID-19, though this will likely have changed by November. At AOW 2020 we will dissect how operators have managed and will continue to manage the impacts of the pandemic on their existing and planned operations. There will be a specific focus on countries like Angola, Nigeria, Tanzania and Uganda, where major investment is required to develop oil and gas reserves. We will also deliver updates on projects such as Tilenga & Kingfisher (Uganda) and Rovuma LNG (Mozambique) which currently are still awaiting FID.

What Does a Low Carbon Future Mean for African Investment into the Upstream?
With three supermajors now pledging to go net-zero by 2050, and organisations including the African Development Bank shifting their focus towards supporting renewables projects, we will look at what this means for Africa’s upstream investment landscape. Discussion will focus on the role banks and financiers must play in balancing the delivery of economic transformation and access to power on the continent.
How has the M&A market looked for assets/corporate transactions in Africa over the past year? What will the impact of the collapse in oil prices on M&A activity in the coming 6 to 12 months be?
At AOW 2020, we will take to the Plenary Stage for a look at African M&A activity past, present and future, including through the lens of M&A for decarbonisation. Though activity has been low in the first quarter of the year, certain players, including Australian giant Woodside Petroleum, recently admitted that they are closely watching the supermajors as potential assets could hit the market soon. Though we don’t have a crystal ball (yet!), our speakers will do their best to enlighten you.

Learn more about how to get involved in Finance Forum at Africa Oil Week 2020 – sponsored by Herbert Smith Freehills. Join us!