UK Oil & Gas Publication Article
When I arrived at the Hilton Hotel in Windhoek to interview the Chief Executive Officer of African International Energy, Aldworth Mbalati, I was expecting to meet a middle aged, greying or balding man.
To my surprise, the Mbalati I met was a youthful man, far younger that the leaders of the Swapo Youth League. Out of politeness, I refrained from asking his age, lest he think I looked down on him.
African International Energy (AIE) Plc recently announced that it had been awarded Block 2715 A and B with its local partner Petrotek to conduct gas explorations.
The company said it has committed US$10 million to the exploration phase. The South African-owned company has offices in the United Kingdom and a listing on the Frankfurt Stock Exchange.
Mbalati sounds very intelligent, wise and well informed for his age. He eloquently tells me that he sees great potential in Namibia with its small population and politically stable environment.
“Namibia is one of those fascinating African countries. It is a country that has a very stable fiscal regime. It is a country that holds great potential in hydrocarbons and hydrocarbons are what we are after.
“African International Energy is a company purely established to serve the African market with its energy needs and we believe that Namibia can be a true addition to our portfolio in terms of allowing us to achieve those objects,” he says.
In South Africa, the company owns the majority exploration rights in the Ibubhesi gas field located in the Orange Basin on the west coast of South Africa. The company also runs an energy project in Ghana.
Mbalati says it makes business sense to get into the Namibian market because the country is desperate for electricity.
“First of all Namibia is looking for electricity. The mines are looking for electricity.”
The company hopes to produce electricity from the Orange Basin in 2016, in a project he says is worth US$2.5 billion. The capital will come from shareholders and project finance. The initial plan is to produce 750 MW but the project could go up to 2000 MW, he says.
“Energy is a very good space right now. Development cannot happen without energy and everyone is keen to see development happen. So we are in a space where resources are prioritised to find this space to make sure that other sectors get a chance to survive, so I am highly optimistic about that.”
His company will sell electricity from the Orange Basin to any willing buyer in Namibia and not necessarily to NamPower.
“In the Namibian oil exploration licences, African Energy owns 63 percent, while a Namibian company, Petrotek, owns 27 percent and the State oil company Namcor owns 10 percent. We are hoping to get licences on other projects.”
I quiz Mbalati about why the company has not listed on its home turf, the Johannesburg Stock Exchange.
“We are a thoroughbred African company, registered in the United Kingdom, we are listed in Frankfurt and it is majority owned by South Africans. So it is an African entity, it is just a matter of corporate structuring that allows us to raise the most amount of capital in the mature markets in order to allow us to do what we want to do.”
But how does a small company, like African International Energy, expect to succeed when oil and gas majors have failed to develop the Kudu Gas project?
Mbalati says African International Energy is confident because it has “achieved critical milestones that other companies have failed to achieve”.
“We have the technical knowhow. We have financial support and the climate in terms of the demand for electricity has changed. We are very confident that we will be able to implement every step of the plans that we have.”
Right now, Mbalati is looking for office space in Windhoek for the Namibian operation; he hopes to open the office on 1 June.
I ask him whether African International will consider buying out Namibian partners. He says that will depend on the preference of the Namibian partners.
“The partnership is based on empowering the local economy; our partners have more equity in the business than other local companies on other projects.” –
chamwe@observer.com.na
African International Energy PLC Announces Listing on Frankfurt Stock Exchange
African International Energy announces it has listed on the first quotation board of the Frankfurt Stock Exchange.
African International Energy Plc, a Johannesburg-based investor in energy projects on the continent, said its shares will start trading at 0.50 euros ($0.72) each on the Frankfurt Stock Exchange by July 8.
Increased Traction in Africa with Two Hydropower Concessions in GhanaAfter extensive negotiations with Ghana’s Ministry of Energy, AIE (African International Energy PLC) has been granted two hydropower field concessions on the Ankobra River, in the Western Region of Ghana, to help relieve an ever-mounting energy crisis in, what is now, the fastest growing economy in the world – with growth of 14% in 2011 alone.
AIE is an international energy player listed on the Frankfurt Stock Exchange and is set to become the largest independent energy producer in Africa. The company has already tied up large gas fields along the Western Coast of South Africa to produce electricity from gas. The company has also made major inroads into Nigeria and more recently, Ghana – thereby increasing its traction to provide clean and renewable energy to Africa, a continent that is steering towards a massive electricity crisis.
The two hydropower plants proposed by AIE in Ghana will produce 50MW and 90MW respectively – a total output of 140MW. These plants will be developed at a cost of approximately $160 million.
AIE is proposing to use Run-of-the-River (ROR) technology for its Ankobra River project, which is more environmentally friendly than traditional hydro-electric plants as it does not require a large impoundment of water – which invariably involves the flooding of large tracts of land, and possible displacement of the population.
It is the Ghanaian government’s policy to include renewable energy in the electricity generation mix, and AIE’s proposed Run-of-the-River hydro-electric plant technology is therefore consistent with this stance. The country’s Renewable Energy Bill, which has a feed-in-tariff component to ensure return on investment for independent power providers, is currently in the advanced stages of being passed into Ghanaian law. AIE expects a minimum of 15% return on the project from supply agreements in place to connect to the existing electricity grid.
As a company, AIE is focused on the under-serviced energy industry market in Africa – a rapidly developing continent whose energy demands are increasing exponentially. Project development is targeted within African economies that have a good supply of clean and renewable energy resources, as well as familiar and favourable independent power producer legislation. Ghana – as the world’s fastest growing economy, and one of the continent’s more robust democracies – is a perfect fit for AIE, according to CEO, Aldworth Mbalati.
Africa’s rapid economic growth (much of it backed by massive investment from China) is under threat from a deepening energy crisis as governments struggle to expand an ageing energy infrastructure and build a power generation foundation for future business and industrial manufacturing. With mounting pressure on countries to reduce carbon emissions in line with global targets, there is a rush to find sustainable, clean and renewable energy. AIE is actively positioning itself to be the central player in this field by working with local governments as an independent power producer focused on clean energy generation and solutions. Current AIE projects include natural gas development, hydropower generation and underground coal gasification, with renewable resources such as wind and solar powered projects also on the radar.
African International Energy PLC (AIE) backs commercial efforts to double existing power generation in South Africa to 80 GW by 2025
