Tullow Oil CEO details company’s investment plans

Tullow Oil CEO, Rahul Dhir, recently sat down with CNBC Africa to discuss the challenges and opportunities in the African oil and gas sector. Dhir highlighted the shifting global narrative towards Africa, emphasizing the importance of developing African resources for the continent's benefit. He acknowledged the role of oil and gas development in achieving sustainable development goals, pointing to the potential of African resources in future energy supplies amidst the extended timeline of the energy transition. However, Dhir also addressed the challenges facing the industry, particularly the shrinking capital pool and the increasing risk perception in Africa. The recent geopolitical tensions in Gabon were mentioned as an example of the risks that could impact investment sentiments in the region. Dhir stressed the importance of African countries competing for capital in a global market where funding for oil and gas projects has decreased. He underscored the significance of governmental stability and strong governance in attracting investments, citing examples from Nigeria where government initiatives led to a significant inflow of investment pledges from the oil industry. Dhir called for innovative financing solutions as traditional sources of funding, such as Western equity markets and debt markets, have become less viable. He highlighted the emergence of new pools of capital, including African institutions, multilaterals, and non-traditional players. The CEO emphasized the need for companies to adapt to the changing funding landscape and collaborate with governments to minimize risk perceptions. In discussing Tullow Oil's future projects, Dhir outlined the company's focus on mid- to late-life production assets in Africa, aiming to drive the development of mature fields with a commitment to environmental sustainability. With around 30 licenses across eight countries in Africa and South America, Tullow Oil is poised to play a significant role in the region's energy sector. Dhir's insights shed light on the potential for growth in the African oil and gas industry, highlighting the importance of collaboration between industry players and governments to navigate challenges and seize opportunities for sustainable development. As Tullow Oil looks ahead to new projects, the company remains committed to driving value while mitigating its environmental impact, aligning with broader industry trends towards decarbonization. As Africa continues to position itself as a key player in the global energy landscape, the strategies and initiatives outlined by Rahul Dhir reflect a forward-looking approach aimed at driving growth, fostering innovation, and maintaining sustainable practices in the oil and gas sector.