The Directors believe an opportunity exists to acquire and invest in the oil and gas sector, energy infrastructure, energy services and energy assets across West Africa, underpinned by favourable structural, regulatory and market dynamics. Initial core target markets are Nigeria and Angola.
The Company’s investment strategy is to ultimately become a fully integrated business, to enhance project execution efficiency, improve asset returns, and reduce execution risk.
Enhance project execution through a fully integrated oil & gas strategy
Acquire assets and create significant value
Regulatory change creates impetus for new oil and gas investment in West Africa
Nigeria holds the #2 and #1 largest oil and gas deposits in Africa
Structural, regulatory and market trends in the Company’s core target markets of Nigeria and Angola support a timely and highly attractive environment for energy investment.
Nigeria and Angola are experiencing economic and demographic fundamentals supportive of sustained growth in domestic demand for oil and gas resources, including GDP growth and electricity supply deficits, while holding significant resources. Furthermore, recent fiscal & regulatory change in Nigeria and Angola provide an attractive impetus for new oil and gas investment.
The opportunity to access material, shallow water assets, therefore makes this a pivotal time to invest in West African oil and gas, via international oil companies and the Nigerian National Petroleum Company Limited (“NNPCL”) divesting assets, historical and upcoming bid rounds and the opportunity to support local operators and licence holders who lack the funding and expertise to bring assets into production.
Angola has the second highest crude oil exports of African nations, with oil and gas accounting for approximately 99% of all Angolan exports. Angola has implemented regulatory, fiscal, and institutional reforms, resulting in greater regulatory independence and the introduction of fiscal incentives.
Nigeria’s oil and gas sector is moving towards a phase of expansion, driven by regulatory reforms and increased focus on gas, with a strategic pivot towards maximising local value from its abundant resources.
Reserves
Holds Africa’s largest proven oil reserves (around 37.5 billion barrels) and gas reserves (over 200 trillion cubic feet).
Production
The federal Governments aims to increase output from ~1.5 million barrels per day to 3 million barrels per day by 2030.
Reforms
The Petroleum Industry Act (2021) aims to attract investment, improve governance, and encourage local participation, with recent licensing rounds showing strong interest.
Gas focus
Nigeria contains one of the largest Gas reserves in the world. Coastal seeks to participate in the realisation of this significant opportunity throughout the Gas/LNG value chain.
Economic environment
Strong macroeconomic backdrop and demographic fundamentals are highly supportive of growing
domestic gas demand and oil consumption. Nigeria, currently faces a ~3x electricity demand deficit, which is expected to expand ~9x by the end of the decade.
Key thematics
Nigeria holds the #2 and #1 largest oil and gas deposits in Africa, respectively. Underpinned by new favourable Federal Government (FG) policy measures and a growing economy, creating a compelling environment for new investment.
Regulatory alignment
Regulatory bodies, including NUPRC are coordinating efforts to reduce overlaps for faster approvals.
Opportunities
Indigenous asset takeovers, and growth in gas infrastructure offer high-potential areas for investors.