KEY STRATEGY ISSUES FOR OIL AND GAS COMPANIES IN AFRICA TO CONSIDER AS THEY PLAN FOR THEIR 2025 BUSINESS

Upstream

1. Portfolio optimization: Focus on high-margin assets, divest non-core assets.

2. Exploration and production efficiency: Improve drilling and completion techniques.

3. Local content development: Increase Nigerian participation in oil and gas sector.

4. Security and community engagement: Enhance stakeholder relationships, ensure safe operations.

5. Gas development: Prioritize gas production, infrastructure development.

Midstream

1. Infrastructure investment: Expand pipeline networks, storage facilities, and export terminals.

2. Logistics optimization: Improve supply chain efficiency, reduce transportation costs.

3. Digitalization: Implement predictive maintenance, real-time monitoring.

4. Cybersecurity: Protect critical infrastructure from cyber threats.

5. Decarbonization: Explore alternative fuels, electrification of infrastructure.

Downstream

1. Refining and petrochemical integration: Optimize feedstock, improve yields.

2. Fuel diversification: Invest in low-carbon fuels, alternative energy.

3. Digitalization: Enhance customer experience, optimize operations.

4. Asset optimization: Improve refinery efficiency, reduce maintenance costs.

5. Circular economy: Develop sustainable products, recycling technologies.

Sustainability and Energy Transition

1. Climate change mitigation: Reduce GHG emissions, invest in renewable energy.

2. Energy diversification: Expand into low-carbon energy sources (solar, wind, hydrogen).

3. Carbon pricing: Prepare for emerging carbon pricing mechanisms.

4. Stakeholder engagement: Address societal expectations, ensure license to operate.

5. Workforce transformation: Develop skills for a low-carbon future.

Digital Transformation

1. Data-driven decision-making: Leverage analytics, AI, and machine learning.

2. Cybersecurity: Protect operational technology, information systems.

3. Cloud adoption: Enhance scalability, flexibility, and cost efficiency.

4. IoT and automation: Optimize operations, improve efficiency.

5. Talent acquisition and retention: Attract digital talent, upskill workforce.

Key Performance Indicators (KPIs)

1. Production volume and revenue

2. Reserve replacement ratio

3. Operating cost reduction

4. Local content percentage

5. Safety and environmental incident rates

Best Practices

1. Conduct regular risk assessments

2. Engage with stakeholders (government, communities, suppliers)

3. Invest in employee training and development

4. Implement robust risk management systems

5. Develop contingency plans for high-priority risks

By addressing these strategic issues, oil and gas companies in Africa can navigate the complex landscape and position themselves for success in 2025.