The Chief Financial Officer, Seplat Energy, Mrs. Eleanor Adaralegbe, said this during a panel session at the Africa Oil Week (AOW) Conference & Exhibitions in Cape Town, South Africa.

Eleanor, whilst speaking on the theme ‘ESG Investing: What strategies make African deals attractive in 2024?’, said to ensure compliance and manage ESG-related risks effectively, companies should conduct thorough due diligence, align with international standards, engage with stakeholders, implement robust policies, and maintain transparent reporting.

“Clearly, ESG standards and regulatory frameworks in African countries significantly shape oil and gas investments. So, we need to take the right actions now. These actions not only mitigate risks but also create opportunities for enhanced stakeholder trust, improved financing options, and long-term project success,” the Seplat Energy CFO stressed.

According to her, investors assess potential projects by screening them against ESG benchmarks; of which projects that fail to meet minimum ESG standards are often excluded.

She said: “Comprehensive due diligence is conducted to identify ESG risks, including environmental impact, community relations, and governance practices. Investors may use frameworks like the Equator Principles or International Finance Corporation (IFC) Performance Standards. In this regard, Seplat Energy is ahead, proactively setting up to ensure readiness very much aligned with Strategy.

“Seplat Energy has shown commitment, which is driven from the top- Board, special board committee on ESG matters, and Sustainability management committee chaired by the CEO.”

Eleanor advocated the need for operators in the energy space to building a sustainable business through social development, focusing on environmental care and reporting as well as maximizing returns for shareholders. With a mission to deliver the energy transition in Nigeria through upstream, midstream and new energy pillars, she identified the roles of strong governance and HSE, as is the case with Seplat Energy’s operations in Nigeria.

Investors, she explained, are increasingly pushing for energy transition projects, such as natural gas developments that serve as a bridge to renewable energy; with also a growing interest in carbon offset initiatives linked to oil and gas operations, which could help mitigate climate impacts.

“ESG criteria are integrated into the investment process through rigorous screening, due diligence, and ongoing monitoring, with a focus on environmental impacts, social responsibility, and governance practices. Investors in African oil and gas projects are particularly concerned with climate impact, community relations, regulatory compliance, and transparency,” the Seplat CFO maintained.

She added: “ESG considerations significantly influence the structuring and valuation of oil and gas deals in Africa by affecting perceived risks, financing options, and project attractiveness. Strong ESG performance can lead to favorable financial terms, and key to long term viability of any business while poor ESG practices can result in reduced valuations, higher costs, and a limited pool of potential investors.

“ESG standards and regulatory frameworks in African countries significantly influence investments by shaping the operational requirements, risk profiles, and overall attractiveness of projects. Companies must navigate a complex landscape of varying regulations and expectations related to environmental protection, social development, and governance to ensure compliance while managing ESG-related risks effectively.”

The post ESG, Regulatory Frameworks Driving Energy Investments In Africa – Seplat CFO appeared first on Business Today NG.

These influential stakeholders will be among the more than 1 600 senior delegates and industry leaders who will be attending the event to develop policy, share discoveries, secure investment, and shape Africa’s energy future.

The event kicks off with an invitation-only ministerial symposium focused on the theme of “Fostering innovation, attracting investment, and promoting sustainable growth in the oil, gas, and energy sectors.”

Among the officials and government ministers attending will be energy leaders from South Africa, Nigeria, Namibia, Cote d’Ivoire, Mozambique, DRC, Ghana, Kenya, Madagascar, Eswatini, Uganda, CAR, Guinea Conakry, Guinea Bissau, Ethiopia, The Gambia, Gabon, Malawi, Morocco, Zanzibar, Liberia, Senegal, Congo Brazzaville and Sierra Leone.

In addition, the event will feature high-level delegations from numerous national oil companies, as well as multilateral bodies including the African Union, (AU), African Energy Commission (AFREC), African Petroleum Producers’ Organization (APPO) and the Southern African Power Pool (SAPP).

AOW will see these energy leaders networking with C-suite executives and decision-makers from more than 760 top energy companies at daily networking events, to discuss insights, forge new relationships, and negotiate major energy deals.

“We are so excited to see the calibre of delegates at this year’s AOW event,” says Chief Executive Officer of Sankofa Events, Paul Sinclair. “Given the recent major oil-and-gas discoveries across Africa, the energy transition and major geopolitical events, it is clear that the energy sector needs positive intervention. The high-powered attendance proves AOW is a key platform to enable this intervention.”

Key themes to be discussed at this year’s AOW will be sustainable upstream development; expanding gas value chains; renewables and new energies; adoption of best-in-class technologies; and access to finance.

AOW: Investing in African Energy will culminate in a special anniversary party at Groot Constantia Vineyard to celebrate 30 years of the AOW event.

The post Ministers Among Hundreds Of Energy-sector Leaders To Attend AOW Event appeared first on Business Today NG.