AI potential to transform energy, oil & gas sectors in Africa

AI has the potential to drive efficiencies across sectors which could make African energy projects more bankable

Artificial intelligence (AI) has the potential to rapidly reshape the energy sector in Africa and modernise electricity systems across the continent, says industry leaders speaking on the technology’s transformative potential.

Also, the pace of technological change is accelerating at such an unprecedented rate in the oil and gas space that if companies operating in this sector on the continent are not careful, they risk being left behind.

This was the stark warning from Benoit Foubert, Vice President of Digital & Integration for Europe and Africa at SLB, to delegates attending the Powering the Intelligence Era panel session at the recently concluded Africa Energy Week conference in Cape Town, South Africa.

AI can modernise systems across Africa

Foubert highlighted three major challenges: infrastructure readiness, outdated regulations and the need for talent development. 

He stressed that electricity access, data centres and cloud availability were critical, alongside regulatory reform to modernise increasingly outdated rules. 

“Regulations written decades ago do not support the data-driven transformation needed today, especially in the oil and gas sector. We must develop modern legal frameworks and build the right talent with appropriate training to reuse intelligence technologies across the continent,” said Foubert.

Opportunity to adopt technology of the now

Foubert pointed to emerging markets like Uganda and Namibia where the oil and gas industries are nascent, presenting an opportunity to leapfrog legacy technology challenges altogether.

Tawanda Chihota, Communications Lead at AIQ, said the company’s first two and a half years were spent co-developing solutions with subject matter experts, focusing on pain points across the energy value chain. 

He emphasised that AI must be integrated into processes to deliver real gains, describing it as “not a nice to have” but a must-have.

“We have identified key pain points where AI delivers significant value, driving impact from upstream operations through to strategic boardroom decisions,” said Chihota. 

Automation could help cut through red-tape waiting periods

Rob Schapiro, Senior Director for Energy Partnerships at Microsoft, said AI could address long permitting delays, particularly in nuclear projects. 

By applying generative AI to regulatory data, he noted permitting times could be cut by 40%, saving both time and millions of dollars. 

“Instead of asking what can AI help with, I’d say what can’t it help with,” he said.

“Using generative AI to analyse historical data and automate report writing can reduce approval times by 40%, saving millions and accelerating energy development.

“AI-driven resiliency, predictive maintenance and grid optimisation will become essential capabilities for energy infrastructure worldwide,” said Schapiro.

He said that AI would have many practical applications in Africa where permitting for energy projects can take up to 12 years.

AI could foster greater investor confidence in Africa projects

Jessica Stang, Head of Investor Relations at Calvert International AG, underlined the importance of efficiency in making African energy projects bankable. 

She said AI could de-risk investments, making projects more attractive to financiers. 

Clear regulation and local skills development were key, with Stang arguing that countries in Africa should control its own energy grids.

“Loss of energy translates directly to lost revenue. AI drives smarter investments and de-risks projects, enhancing returns in this complex sector,” she said.

Stang said that it would require closer collaboration between government, private sector and universities to nurture innovation in Africa’s AI and energy landscape.

Enhancing safety standards

Craig Bebee, Senior Business Development Manager for the Project Management Division at Halliburton, pointed to AI’s role in safety and emissions monitoring. He described solutions combining generative AI and machine learning to address industry challenges such as gas leak detection.

Citing a recent example, he noted a project Halliburton had worked on in the fracturing industry. 

“Through the deployment of sensors on hydraulic fracturing equipment, which is an immense piece of hardware involving high-pressure pumps, these sensors have provided valuable data to the systems, enabling field personnel to detect potential failures in advance.”

This helped identify safety risks before incidents could occur, he said.

The real-time data from drilling rigs also informs operators about unsafe drilling locations, acting like a traffic light system that warns when drilling should be avoided for safety reasons. 

Beebee highlighted this as a significant success in improving safety and operational awareness in the energy sector through AI and sensor technology.

The need to act now

Panellists highlighted the importance of speed in adopting AI and cautioned against tardiness in applying the technology.

Schapiro noted ChatGPT reached 100 million users in just two months, underscoring the pace of change.

Stang reiterated that AI should be seen as a de-risking tool for Africa’s investment climate, while Bebee stressed the need for safe integration.

“AI is going to be a core part of our visions and we’re embracing that now. AI is the new lubricant powering the entire energy value chain. Ignore AI at your peril or embrace it safely and efficiently,” said Bebee. ESI

Cover photo:  Expert panelists weigh in on the impact of AI. Source: ESI Africa