Portfolio | Augere Energy

We aim to spearhead the energy transition in West Africa by achieving the highest levels of operational and emissions efficiency. Our approach involves developing a substantial and varied non-operated and operated portfolio of mid-life producing assets, which offers opportunities to enhance production and lower emissions.

Nigeria

We estimate that the top 20 potential opportunities have a total remaining pre-tax valuation of $52bn and a total remaining post-tax valuation of $7.1bn (Wood Mackenzie)

Nigeria stands as Africa’s leading oil producer with a well-established oil and gas industry dating back to the 1950s. In 2020 Nigeria achieved a daily average production of 1.9 million barrels of liquids and 4.6 billion cubic feet (bcf) of sales gas from over 220 fields operated by around 160 entities. Additionally, over 260 companies have upstream interests in the country. However, international oil companies (IOCs) are increasingly shifting their focus towards energy transition, resulting in reduced investment in their Nigerian portfolios.

The recent surge in oil prices and improved capital discipline have significantly enhanced project economics. With world-class reserves of approximately 9.1 billion barrels of oil and 29 trillion cubic feet (tcf) of gas, Nigeria presents compelling brownfield investment opportunities at both the asset and corporate levels, such as project financing and OML farm-ins.

The Nigerian government is dedicated to the development of marginal fields, which are primarily located onshore, in swamp areas, and in shallow waters. According to the Nigerian Government, a marginal field is a discovered resource that has been left undeveloped for over ten years. Many of these fields, previously held by Shell, ExxonMobil, Chevron, and Total, remain untapped, with only a few having been appraised. The total resources available for investment are estimated to be around 800 million barrels (mmbbl) of oil and 4.5 tcf of gas. The 25 largest oilfields alone could attract $9.4 billion in investment within the first five years and generate over $38 billion in revenue throughout their lifespan.

Augere Energy is strategically focused on acquiring high-value, under-invested assets with significant volume potential. Our goal is to build a diverse portfolio of mid-life producing assets that provide substantial opportunities for optimizing production processes and reducing emissions. We are particularly focused on low-risk appraisal and development projects within the prolific West African region, known for its abundant hydrocarbon deposits.

By leveraging these opportunities, Augere Energy aims to enhance production efficiency and support sustainable energy development in Nigeria. Our approach includes the integration of advanced technologies and innovative practices to maximize output while minimizing environmental impact.

Despite the profitability of their Nigeria assets, the IOCs are under increased pressure to accelerate their energy transition and divest non-core assets( Wood Mackenzie)

In addition to optimizing production, we are dedicated to reducing emissions through the adoption of greener technologies and processes. This dual focus on efficiency and sustainability aligns with global energy trends and positions Augere Energy as a leader in the responsible development of Nigeria's vast energy resources.

Our strategy is supported by strong partnerships with key stakeholders, including national oil companies, financial institutions, and technical experts. These collaborations ensure we have the necessary resources and support to achieve our ambitious goals.

Key Drivers of Investor Interest in Nigeria's Upstream Sector

Reduced IOC Investment: IOCs are allocating fewer resources to their Nigerian assets due to increased global competition for investments, leading to under-invested opportunities.
Improved Economics: Rising oil prices and better capital discipline have enhanced project economics, with further potential benefits anticipated post-PIB.
World-Class Resources: Nigeria boasts significant resources, existing infrastructure, and a mature oil and gas industry.
Untapped Gas Potential: The government’s promotion of the ‘decade of gas’ highlights the largely untapped gas reserves.
Attractive Investment Returns: Brownfield projects typically offer better returns and shorter payback periods compared to greenfield developments.

Augere Energy's initiatives are designed to unlock the full potential of Nigeria’s under-invested oil and gas assets, emphasizing production optimization, emission reduction, and sustainable development. Through these efforts, we aim to make a substantial contribution to Nigeria’s energy sector and broader economic growth.

Angola

Globally, secondary recovery methods yield about one-third of the original oil in place (OOIP), leaving approximately 60 to 70% of the oil untapped. With enhanced oil recovery (EOR) techniques, Angola has the potential to recover more than 50% of its OOIP.

Angola's total liquid fuels production has been steadily declining over the past decade. In 2021, production was about 1.2 million barrels per day (b/d), a decrease from 1.8 million b/d in 2012. This decline is largely due to insufficient investment in upstream development. Rapid reservoir depletion and the lack of EOR investments to extend the life of aging fields have also contributed to significant decline rates at some fields.

Equitorial Guinea

Equatorial Guinea's oil and gas production is entirely derived from its offshore fields, making it the smallest producer within OPEC. The nation's oil industry thrived from the mid-1990s to 2005, beginning with the discovery of the Zafiro oil field. ExxonMobil held a 71.25 percent stake in this field, while the state-owned Guinea Equatorial de Petroleos (GEPetrol) and the government owned 23.75 percent and 5 percent, respectively.

Production at the Zafiro field commenced swiftly in 1996, followed by multiple discoveries. Despite reaching a peak of 380,000 barrels per day in 2005, production significantly declined, dropping to early 2000 levels by 2022—nearly a third of its peak. This downturn is primarily due to a lack of new discoveries, with the last one occurring in 2007 at the Aseng field.

Equatorial Guinea's domestic energy consumption is minimal; its population of approximately 1.75 million uses only 4 percent of the country's oil output, leaving a large surplus for export. The country's strategic location, equidistant from markets in Europe, Asia, and North America, further enhances its export potential.

In February 2024, ExxonMobil announced its exit from Equatorial Guinea, ending a nearly 30-year partnership. ExxonMobil was instrumental in developing the nation's oil sector, starting with Mobil Corporation's 1995 discovery of the Zafiro oil field. Following Exxon’s takeover of Mobil in 1999, the Zafiro field transformed Equatorial Guinea into a net oil exporter, contributing significantly to the country's economy by providing more than half of its oil production at its peak.

Due to aging assets, technically challenging small fields, and high exploitation costs, Equatorial Guinea faces significant pressures from the energy transition. Consequently, the government is focused on prolonging the lifespan of its crucial hydrocarbon sector by engaging with not necessarily the largest industry players but the most nimble and adaptable ones.

Gabon

OPEC's data indicates that Gabon holds over 2 billion barrels of proven oil reserves, both offshore and onshore, mainly in the southwest region. This presents a significant opportunity for upstream oil and gas companies to develop these reserves.

With 30 oilfields currently in production, Gabon was the eighth-largest oil producer in Africa. However, many of these fields have been experiencing declines, resulting in a decrease in oil production from 236,000 barrels per day in 2011 to 181,000 barrels per day in 2021. The distribution of the 12th offshore license for deepwater projects, supported by the new hydrocarbon code, has attracted major oil and gas companies in recent years. These companies are expected to make substantial investments during the forecast period.

The combination of substantial proven oil reserves and updated policies is anticipated to drive growth in the upstream sector, helping to achieve the goal of increasing oil production by 50% in the near future.

In December 2021, TotalEnergies completed the sale of its portfolio of mature, non-operated assets located offshore Gabon to Perenco. The production from the divested assets averaged 8,400 barrels of oil equivalent per day during the first three quarters of 2021.