Praise for Billions at Play “It is an honor to provide the foreword for this book. I agree with the points made—and with Ayuk’s case for the critical role that OPEC will play in helping African oil producers achieve a much-deserved voice in the petroleum industry. Yes, one could argue that Ayuk is a dreamer. However, he has taken the time to develop a detailed roadmap for realizing that dream. It’s up to each of us to take the time to read it and to play a part in making his dream of petroleum-fueled economic growth, stability, and improved quality of life happen for Africa.” — Mohammad Sanusi Barkindo, OPEC Secretary General “In the chapter entitled Abundant, Accessible, Affordable: The ‘Golden Age’ of Natural Gas Shines in Africa, Ayuk correctly identifies the benefits of natural gas, especially as the world looks for ways to lower CO2 emissions.” —Jeff Goodrich, Former CEO of OneLNG “The answer to Africa’s utility woes can be found in Ayuk’s book. For example, not everyone is willing to assert that Africa will never achieve its full potential if it cannot power its industries, services, or households. Ayuk’s chapter isn’t all doom and gloom, [however,] Ayuk calls it like it is.” —Dr. Thabo Kgogo, Former CEO of Efora Energy Limited “NJ Ayuk is right to call upon African governments to do their share in making Africa appealing to American exploration and production companies. I hope American companies will see that Africa still has a lot to offer in terms of economic returns.” —H. Daniel Hogan, CEO and General Manager of Lukoil International Upstream West 352922GAC_BILLIONS_CC2019_PC.indd 1 10/11/2020 17:03:38 “Ayuk sees the irony in oil and gas produced in Africa being sent away to be refined, then returned as finished products that Africans pay a premium for. Africa is exporting raw materials it could be refining and processing, if it only had the capabilities, but not everyone is willing to admit that with the level of candor Ayuk does.” —Bruce Falkenstein, Joint Operations Manager, License Management & Compliance for LUKOIL “NJ Ayuk is a champion of African commerce, and that’s clear in his new book. In chapter 9, he presents an unvarnished view of corrup- tion’s negative effect on Africa’s business environment. His message is something anyone who is doing business there, or wants to, should hear.” —Sergio Pugliese, President for Angola African Energy Chamber “Ayuk sees opportunity all around him, and he realizes that appro- priate development will solve many of the continent’s challenges, including power generation.” —Ann Norman, Pioneer Energy’s General Manager for Sub-Saharan Africa “Ayuk goes beyond acknowledging this cycle of mismanagement and corruption. He also gives us ideas for breaking it. I can see how some of his ideas for oil money revenue will be considered controversial, but I hope, at least, that they trigger productive dialogue. We can’t continue as we are.” — Akere Muna, Former Vice Chairman of Transparency International 352922GAC_BILLIONS_CC2019_PC.indd 2 10/11/2020 17:03:38 Billions at Play The Future of African Energy and Doing Deals NJ Ayuk 352922GAC_BILLIONS_CC2019_PC.indd 3 10/11/2020 17:03:38 Made for Success Publishing P.O. Box 1775 Issaquah, WA 98027 www.MadeForSuccessPublishing.com Copyright © 2020 NJ Ayuk All rights reserved. In accordance with the U.S. Copyright Act of 1976, the scanning, uploading, and electronic sharing of any part of this book without the permission of the publisher constitutes unlawful piracy and theft of the author’s intellectual property. If you would like to use material from the book (other than for review purposes), prior written permission must be obtained by contacting the publisher at [email protected]. Thank you for your support of the author’s rights. Distributed by Made for Success Publishing First Printing Library of Congress Cataloging-in-Publication data Ayuk, NJ Billions at Play: The Future of African Energy and Doing Deals p. cm. LCCN: TBD 978-1-64146-559-5 (hardback) 978-1-64146-560-1 (paperback) 978-1-64146-561-8 9 (ebook) 978-1-64146-562-5 (audiobook) Printed in the USA and the UK For further information contact Made for Success Publishing +14255266480 or email [email protected] 352922GAC_BILLIONS_CC2019_PC.indd 4 10/11/2020 17:03:38 Contents Foreword ............................................................................. 11 By OPEC Secretary General Mohammad Sanusi Barkindo .............................................. 13 Abbreviation Key ................................................................ 15 1 It’s High Time for African Oil and Gas to Fuel a Better Future for Africans ............................................ 17 Capitalizing on Copper in Chile .......................................... 22 Bright Ideas in Botswana ..................................................... 24 Don’t Give up on Oil and Gas ............................................. 26 2 It’s Up to Africans to Fix Africa .................................. 31 Handouts Keep People Down ............................................... 33 Collaboration Is Critical to Africa’s Future ........................... 36 The Role of African Governments ......................................... 37 The Role of African Businesses and Investors .......................... 40 The Role of Pan-African Organizations ................................ 42 3 A Place at the Table: Africa and OPEC ....................... 45 Growing Numbers, Adding Strength..................................... 47 Friends in the Right Places ................................................... 50 If You Want to Go Far, Go Together .................................... 50 The Unknown Effect of NOPEC .......................................... 52 Membership and Its Rewards ............................................... 56 Funding Real Change .......................................................... 57 Who Will Be Next? .............................................................. 59 352922GAC_BILLIONS_CC2019_PC.indd 5 10/11/2020 17:03:38 Toward a Stronger, More Stable Industry ............................. 60 An African at the Helm ....................................................... 61 4 Empowering Women for a Stronger, Healthier Oil and Gas Industry ......................................................... 65 Gender Inequality in Energy and Africa................................ 66 Leading the Way ................................................................. 69 Taking Steps ....................................................................... 71 Education: Long-Term Investments ...................................... 76 Putting Policies in Place....................................................... 77 Non-Government Organizations: Moving in the Right Direction ............................................. 79 WEX Africa: Showing How It’s Done ................................... 81 Setting the Stage .................................................................. 83 5 Abundant, Accessible, Affordable: The “Golden Age” of Natural Gas Shines in Africa ....................................... 85 Sparking Social Change in Africa ......................................... 86 Growing Interest in Gas-Fired Power ................................... 88 Re-Evaluating Priorities ....................................................... 90 Ambitions Rise With More LNG .......................................... 94 What’s Standing in Our Way? ............................................. 97 Banding Together ................................................................ 100 6 Monetizing Natural Resources: Successes, Lessons, and Risks ....................................... 105 Flaring: A Lose-Lose for Africa ............................................. 106 Equatorial Guinea Capitalizes on LNG ............................... 108 Qatar’s Quest for World Domination ................................... 110 Learn From the Master: Trinidad and Tobago ...................... 111 Where’s the Win-Win for Africa? .......................................... 113 We Can’t Slow Down Now ................................................. 115 Exploration Is a Must! ......................................................... 116 Fostering Foreign Investment ................................................ 117 352922GAC_BILLIONS_CC2019_PC.indd 6 10/11/2020 17:03:38 Pushing Production ............................................................. 119 Successful Mergers That Breed Cooperation ........................... 126 7 Job Creation: Making Our Own Multiplier Effect ...... 129 Starting Small (and Medium-Sized) ..................................... 130 More Rules, or Better Conditions? ......................................... 132 Borrower Beware ................................................................. 133 Luck, Location, and Labor ................................................... 134 8 A “Recipe” for Economic Diversification .................... 139 Oil and Gas as the First Step ................................................ 141 Moving Down the Chain: Power Generation ........................ 141 Moving Down the Chain: Fertilizer and Other Possibilities .......................................... 143 The Right Kind of Support ................................................... 145 Onward and Upward .......................................................... 146 Chile: Not Just Copper Now ................................................ 148 9 Calling All Leaders! More on Good Governance ......... 151 Sound