From Nigeria’s licensing reforms and South Africa’s electricity infrastructure to emerging opportunities in Liberia and Libya, TRP International experts highlight why sound contracts, transparent regulations and effective dispute resolution are essential to Africa’s energy investment ambitions.
By Zinhle Geluk
CAPE TOWN, South Africa – As African governments intensify efforts to attract investment into oil, gas, electricity and critical infrastructure, international legal practice TRP International has underscored the importance of investor protection, regulatory transparency and enforceable contracts in unlocking the continent’s vast energy potential.
Against the backdrop of African Energy Week (AEW) 2026, held in Cape Town from October 12–16, TRP International partners Vadim Tkhor and Vladislav Rodionov offered perspectives on some of the most consequential legal and investment developments shaping Africa’s energy landscape, warning that ambitious projects and attractive resources alone cannot guarantee investment success without credible legal safeguards.
Their interventions came as governments, investors, financiers and energy executives gathered in Cape Town to explore opportunities across Africa’s energy value chain, with licensing rounds, infrastructure financing, international partnerships and energy security featuring prominently in discussions.
For TRP International, which specialises in international disputes involving states and represents both governments and investors, the challenge is not simply attracting capital but creating the legal and commercial conditions that allow investments to survive political changes, regulatory uncertainty and unexpected disruptions.
Nigeria’s Licensing Reforms Put Transparency in the Spotlight
Nigeria’s announcement of its 2026 oil and gas licensing round, offering 40 blocks across onshore, shallow-water and deepwater terrains, provided a prominent example of how regulatory reforms can strengthen investor confidence.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced plans for greater transparency in the allocation process, including publication of evaluation methodologies, fuller disclosure of results and identification of beneficial owners behind bidding companies.
Vadim Tkhor, Partner responsible for International Relations & Government and International Disputes at TRP International, welcomed the approach, arguing that transparent licensing procedures can significantly reduce the likelihood of future disputes.
“Nigeria’s decision to publish the full evaluation methodology and disclose the beneficial owners of every bidder deserves attention beyond the transparency debate,” Tkhor observed.
“In our experience, many disputes over licence awards begin with a simple question: why did this bidder win? When the rules are clear and public, that question has a documented answer, and awards become far harder to challenge,” he explained.
Tkhor, who participated in AEW 2026’s panel on Resource Nationalism, ESG and Investor Protection: The New Frontier of Oil & Gas Arbitration in Africa, also stressed that investors must look beyond the attractiveness of geological prospects to the contractual obligations attached to their licences.
He identified realistic work programmes, fiscal stability provisions and clearly defined dispute-resolution procedures as essential considerations, particularly as Nigeria seeks to revive shut-in production and advance offshore projects towards final investment decisions.
“A transparent round that leads to well-drafted licences is the best outcome for both sides: the state gets committed operators, and investors get certainty,” he said.
South Africa’s Transmission Ambitions Face a Critical Legal Test
South Africa’s efforts to attract private capital into electricity transmission infrastructure also featured prominently in TRP International’s assessment.
The country’s Independent Transmission Projects Programme is expected to facilitate approximately 1,164 kilometres of new transmission infrastructure, with seven prequalified bidders involved in its first phase.
Following the government’s decision to move the targeted release of the final Request for Proposals from the third quarter of 2026 to the second quarter of 2027, Tkhor argued that taking additional time to establish a credible contractual framework could ultimately strengthen the programme.
“This is South Africa’s first attempt to bring private capital into the national grid, and the first contracts will become the template for everything that follows,” he explained.
“A delay before signing costs far less than a dispute after it.”
Particular attention was given to the proposed Credit Guarantee Vehicle, developed with the World Bank Group and other partners, which is intended to address financial risks associated with private transmission investments.
According to Tkhor, lenders will closely examine payment guarantees, compensation arrangements, termination provisions and protections against changes in legislation before committing substantial capital.
He emphasised that electricity transmission projects operate over decades, during which governments, tariffs and regulatory priorities may change. Contracts capable of anticipating those developments could help South Africa attract financing at more competitive rates while establishing a model for similar infrastructure investments elsewhere on the continent.
Russian Energy Partnerships Highlight the Importance of Contractual Protection
The participation of Russian companies at AEW 2026 provided another opportunity for TRP International to examine the legal foundations of expanding international energy partnerships.
A business mission led by the Russian Export Center brought companies seeking opportunities in African energy and industrial markets, while the Russia–Africa Energy Investment Forum featured representatives of the Russian Export Center, Gazprom Neft and RDS-Technology alongside African officials and industry stakeholders.
Tkhor observed that Russian commercial engagement with Africa was increasingly moving beyond exploratory visits towards more systematic business relationships, creating fresh opportunities for technology transfers, equipment supply and investment.
However, he cautioned that successful partnerships require careful attention to contractual protections from the outset, particularly in an international environment complicated by financial restrictions, payment challenges and logistical uncertainties.
“In practice, many risks are set at the negotiating table: which law governs the contract, where disputes will be heard, how payments are secured, and whether the investment is covered by an intergovernmental investment protection agreement where one exists,” he said.
He advised companies to address payment arrangements, banking restrictions and logistics before finalising transactions, noting that well-structured agreements offer protection to both international investors and their African partners.
Hormuz Disruption Raises New Risks for African Energy Contracts
Beyond Africa’s domestic regulatory environment, TRP International also examined the implications of disruptions to shipping through the Strait of Hormuz for international oil and gas contracts.
Vladislav Rodionov, Partner at TRP International, warned that prolonged disruptions to energy transportation routes could trigger contractual disputes involving force majeure, price reviews, freight costs and delivery obligations.
With restrictions on shipping through the strategic waterway affecting global energy markets, companies have faced difficult questions about how existing contracts allocate the financial consequences of extraordinary events.
“Seven months into the disruption, the legal question for energy companies has shifted,” Rodionov explained.
“At the start, it was whether force majeure applied. Now it is how long force majeure can last, what happens to obligations that were merely suspended, and who bears the cost of alternative routes, higher freight and insurance.”
Rodionov warned that some long-term supply contracts were not designed to accommodate disruptions of such duration, creating the possibility of renegotiations and international arbitration involving producers, traders and buyers.
For African energy producers, however, the changing commercial environment could also create opportunities as buyers seek alternative supply routes and more diversified energy partnerships.
“For Africa, this is both an opportunity and a test,” Rodionov said, urging companies to document operational disruptions, respect contractual notification deadlines and carefully review force majeure and price-adjustment provisions.
Liberia’s Offshore Licensing Drive Offers Fresh Investment Prospects
Liberia’s efforts to attract international investment into offshore exploration also attracted attention from TRP International.
The Liberia Petroleum Regulatory Authority presented 29 offshore blocks across the Liberia and Harper basins at AEW 2026, using a hybrid direct-negotiation framework intended to accelerate engagement with qualified investors.
Under the approach, companies are assessed on technical expertise, financial strength and offshore experience before negotiating exploration commitments and production-sharing arrangements.
Rodionov acknowledged that direct negotiations can offer advantages over conventional competitive bidding, particularly for frontier exploration markets seeking to attract investors in a competitive global environment.
However, he warned that individually negotiated agreements require strong safeguards to ensure consistency, transparency and confidence that contractual commitments will survive changes in government.
“Investors will want to know that comparable projects are treated in a comparable way, and that the contract they sign will be honoured by future governments,” he observed.
Drawing attention to Liberia’s unsuccessful 2014 licensing round, which was affected by political disagreements, Rodionov stressed the importance of stabilisation provisions, clearly defined exploration obligations and access to international arbitration.
He argued that such protections should not be viewed as concessions that weaken the state’s negotiating position, but as instruments capable of reducing investment risk and potentially improving the commercial terms governments can secure.
If Liberia establishes a credible legal framework, he suggested, the investor interest generated in Cape Town could translate into signed production-sharing contracts and renewed exploration activity.
Libya’s Energy Comeback Depends on Investor Confidence
Libya’s return to competitive oil and gas licensing after a 17-year hiatus provided another important dimension to the discussion.
Following the award of exploration licences to foreign companies in February 2026, Libya’s National Oil Corporation used AEW 2026 to engage international investors and promote further opportunities in the country’s substantial hydrocarbon sector.
Rodionov welcomed the renewed interest but cautioned that the sustainability of Libya’s investment recovery would depend heavily on confidence in contractual enforcement and the country’s ability to manage disputes fairly.
“Libya’s return to competitive licensing is an important signal for the whole region. The resource base is significant, and international companies have shown they are ready to come back,” he said.
“The decisive factor for the next stage will be confidence that contracts will be honoured regardless of political developments.”
Drawing on TRP International’s experience with disputes involving refining assets in North Africa, Rodionov noted that prolonged legal battles between investors and states can impose substantial costs on both parties.
He maintained that transparent procedures, contractual guarantees and trusted arbitration mechanisms could help Libya rebuild investor confidence without compromising national sovereignty.
TRP International Positions Legal Certainty at the Heart of Africa’s Energy Future
The perspectives shared by TRP International at AEW 2026 reflected the growing importance of international legal expertise as Africa seeks to expand energy production, modernise infrastructure and attract more diverse sources of investment.
From established producers such as Nigeria and Libya to emerging exploration markets such as Liberia, the legal questions confronting investors and governments increasingly extend beyond licensing approvals and fiscal incentives to include contract enforcement, regulatory stability and mechanisms for resolving disagreements.
TRP International brings experience in international disputes involving states, representing both investors and governments across energy, oil and gas, mining, banking, transport, shipping, aviation, construction and infrastructure.
Its involvement in discussions surrounding African Energy Week also highlighted the expanding role of legal and advisory institutions in supporting the continent’s energy ambitions, particularly as governments seek to balance national development priorities with the commercial expectations of international investors.
The message emerging from the firm’s commentary was that Africa’s ability to mobilise long-term energy investment will depend not only on the resources available or the attractiveness of individual projects, but also on the confidence investors and governments place in the agreements governing their partnerships.
For African countries competing for increasingly selective international capital, transparent licensing procedures, balanced contractual obligations and credible dispute-resolution systems could make the difference between investment announcements and projects that reach production.
About TRP International
TRP International is an international legal practice specialising in disputes involving states and representing both investors and governments. Its sector expertise includes energy, oil, gas, mining, banking and exchange infrastructure, transport, shipping, aviation, construction and infrastructure.