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Ayuk sings Katti’s praises

Written by on April 28, 2024

Controversial businessman and Cameroonian lawyer NJ Ayuk, who leads the African Energy Chamber (AEC), says he is impressed by the Knowledge Katti Foundation’s efforts to involve local communities in oil and gas projects.

This comes after the foundation supported community participation through a recent Sintana Energy deal – a company founded by businessman Knowledge Katti.

Sintana Energy, a Canadian oil and gas company, is partnering with Namibia’s Giraffe Energy.

Through this deal, Sintana will acquire most of Giraffe Energy, at 67%.

A portion (8%) of Giraffe’s ownership will also be placed in a trust managed by the Knowledge Katti Foundation to benefit the local community.

This deal allows Sintana to explore for oil and gas in Namibia’s Orange Basin (PEL79 project), while also giving back to the local community.

In view of this, Ayuk says this is a new and positive way of doing business in the industry, saying the chamber believes this approach would benefit local communities and Namibia’s development as a whole.

“The move by the Knowledge Katti Foundation represents a significant shift in the industry’s landscape, and signals a new approach to community involvement and empowerment.

“By actively engaging with local communities and prioritising their contribution and role in oil and gas projects, individuals such as Knowledge Katti are shaping a new narrative for the oil and gas sector.

“Katti is both an entrepreneur and investor who demonstrates a holistic approach to industry development in Namibia,” the AEC executive chairman says.

In a statement yesterday, the energy chamber says this move by Katti is a critical step towards unlocking the full potential of the country’s deepwater area.

The AEC commended the businessman for his commitment to channelling resources through Sintana Energy into community development initiatives.

This, it says, is an important step towards bolstering local participation in Namibia’s oil and gas industry, and sets a strong example for other energy companies in Namibia.

NJ Ayuk

“The equity contribution has enabled a direct mechanism that unlocks benefits for local communities in Namibia. The contribution represents a first-of-its-kind vehicle and is expected to bolster local participation in the oil and gas industry,” the chamber statement reads.

Meanwhile, other energy entrepreneurs across Africa are embracing shared participation and trust building with local communities to ensure they are not only involved in, but benefit from energy projects.

The Knowledge Katti Foundation’s initiative will initially be available in the Erongo region, expanding to others, such as //Kharas.

Through the initiative, the foundation – and Sintana Energy – are ensuring Namibian people participate in the benefits of the industry, the statement reads.

Katti says Namibia continues to demonstrate that it is the market of choice for frontier exploration and production players.

He says this represents a crucial opportunity for the domestic market to seize partnerships and help drive the industry forward.

“Through the equity contribution, we hope to empower local communities while ensuring they reap the highest rewards of the oil and gas industry.

“This initiative sets a benchmark for other energy companies active in Namibia, and we look forward to a future where Namibia’s oil and gas projects are led by Namibians,” Katti states.

With the transaction, Sintana Energy is deepening its technical, operational and in-country capabilities, while cementing its entry into a high-impact offshore prospect in Namibia.

Sintana Energy has partnered with Quantum Xploration for the acquisition, with both companies set to work closely with the National Petroleum Corporation of Namibia (Namcor) to explore and develop PEL79.

Sintana Energy will acquire a 49% initial purchase of the issued and outstanding shares of Giraffe for a cash consideration of US$2 million.

The company will have the option to increase the share to 67% over the next five years for an additional cash payment of US$1 million.

The equity contribution places community empowerment at the centre of million-dollar transactions such as this.

The post Ayuk sings Katti’s praises appeared first on The Namibian.

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