Wale Tinubu, CEO of Oando PLC, said during the 2024 Africa Energy Week in South Africa that leaders in the oil and gas industry should collaborate more effectively to enhance business conditions in the sector.
He spoke about the growing involvement of indigenous players in the continent’s liquefied natural gas (LNG) sector.
He highlighted that local companies would play a more significant role in the LNG industry as Africa’s reserves increase. He pointed out that his company is currently the second-largest supplier of gas to the Nigerian LNG, after Shell, in the present market.
Mr Tinubu expressed confidence that indigenous firms could eventually control up to 40% of Africa’s LNG production. He emphasised that mergers and acquisitions (M&A) would be crucial to achieving this goal.
However, he acknowledged the challenges along the way, citing political and regulatory obstacles, and suggested that a realignment of regulations was already in progress. He noted the substantial shift in the rhetoric of oil and gas ministers over the past few decades, observing that today’s ministers are far more proactive and business-friendly compared to those of 10, 20, or 30 years ago.
According to him, ministers are now focusing on promoting their countries, facilitating business, and cutting down on bureaucratic hurdles. He pointed out that, ultimately, capital has a choice of where to invest, with countries competing for investment by offering more favourable environments and incentives.
