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As European methane regulations reshape global energy markets, African oil and gas producers face new compliance challenges that could impact their access to lucrative export markets. Ahead of African Energy Week, we spoke with Jessica Shumlich, CEO of Highwood Emissions Management, about what these rules mean for African producers and how proper preparation can turn regulatory requirements into competitive advantages.

Jessica, many African producers may not be familiar with the EU Methane Regulation. Can you explain what this new rule means for oil and gas companies exporting to Europe?

The EU Methane Regulation, which comes into full effect January 1, 2027, requires importers to demonstrate that their oil and gas products meet strict methane emissions standards. This means producers exporting to Europe will need to provide credible, measurement-based emissions data for their operations. It's not just about having low emissions—it's about proving it with rigorous documentation and reconciliation processes.

How does this regulation connect to voluntary initiatives like OGMP 2.0 that some African producers are already participating in?

OGMP 2.0 Gold Standard reporting has become the global benchmark for methane emissions transparency. The EU regulation essentially makes similar measurement-based reporting mandatory for market access. Companies already participating in OGMP 2.0 are building the exact capabilities they'll need for EU compliance. It's a significant head start.

You mentioned that 70% of assets failed OGMP 2.0 Level 5 reporting in 2023. What is causing these failures, and should African producers be concerned about similar challenges with EU compliance?

The failures aren't due to high emissions—they're due to gaps in the measurement-to-reporting pipeline. Some companies lack foundational data like properly designed sampling plans or haven't converted measurements into inventories with calculated uncertainty. Others have the data but can't reconcile source-level estimates with site-level measurements. They struggle with inconsistent methods, poor documentation, and unclear logic at various stages. Producers should absolutely be concerned because the EU will require the same rigorous standards across this entire process—from measurement planning through final reconciliation.

What does "reconciliation" mean in practical terms? Why is it more complex than companies initially think?

Reconciliation means proving that your bottom-up source estimates align with your top-down site measurements. It sounds simple, but it involves complex data science, engineering calculations, and compliance expertise. You're dealing with different measurement frequencies, varying environmental conditions, and multiple technology platforms. As one operator told me, "Reconciliation is more than just math—it proves you understand where your emissions are coming from."

For a producer who's never done this type of measurement-based reporting before, what are the biggest operational hurdles they should expect?

The biggest challenge is building internal processes for data collection, quality control, and reconciliation. Many companies assume they can handle it with spreadsheets, but that leads to errors and audit failures. You need standardized workflows, clear documentation protocols, and the ability to repeat the process consistently year after year.

Tell us about the Highwood Emissions Intelligence Platform. How did you develop it, and what specific reconciliation challenges does it solve?

We co-developed Highwood EIP with a consortium of Tier-1 operators who were seeking OGMP 2.0 Gold Standard Level 5 recognition. These companies had the measurement data but needed to generate measurement informed inventories (MII) with robust uncertainty and wanted a consistent and efficient reconciliation process. EIP delivers audit-ready methane inventories and automates reconciliation processes that were previously consuming months of manual work. It turns raw measurement data into clear, defensible and actionable intelligence, quickly and at scale. By automating analysis and enabling scenario testing, operators can produce one-click Level 5 reports, which dramatically cuts timelines, costs, and the frustration of manual spreadsheet processes.

Your clients have a 100% success rate with OGMP 2.0 Gold Standard Level 5. What makes the difference between success and failure in reconciliation?

Success comes from getting the reconciliation methodology right from the start—something we've achieved through a combination of methane consulting expertise, our EIP platform, and sometimes both depending on client needs. Having standardized processes, proper documentation, and the ability to identify discrepancies before they become audit failures is crucial. The key is addressing the common pitfalls that cause failures: inconsistent methodologies, unclear documentation, and lack of repeatability.

Beyond meeting EU requirements, what operational and business benefits do producers gain from proper methane reconciliation?

Proper reconciliation reveals where your actual emissions are coming from, which helps optimize mitigation investments. Companies often discover they're focusing resources on the wrong sources. It also builds internal measurement capabilities that support operational excellence beyond compliance. You're not just checking a regulatory box—you're building competitive intelligence about your operations.

How does getting reconciliation right impact market access and investment opportunities for African producers?

Credible emissions reporting is becoming a prerequisite for premium market access and ESG-focused investment capital. But this goes beyond just meeting requirements—it's about African producers establishing themselves as leaders in environmental stewardship on the global stage. Producers who master reconciliation early will differentiate themselves from competitors still struggling with basic compliance, demonstrating that Africa can set the standard for operational sophistication and environmental responsibility. This positions them not just as reliable suppliers to European buyers, but as innovators that international investors want to partner with.

For a company just starting this journey, what's your advice on building internal capabilities versus working with external partners?

Start by understanding the data and processes you’ll need to reconcile and report under the EUMR framework—what measurements are required, what technologies are suitable, and whether you need annualized or instantaneous approaches based on your facility mix. Most companies benefit from external expertise initially to establish proper processes, then build internal capabilities over time. The key is avoiding the trial-and-error approach that leads to audit failures.

You'll be at African Energy Week this month. What should producers expect to learn at your booth, and how can proper reconciliation planning give them a competitive advantage in European markets?

We'll be demonstrating how Highwood EIP handles real reconciliation challenges and highlighting examples of successful OGMP 2.0 Gold Standard submissions. Companies who get their reconciliation processes right now will be ready for EU market requirements while their competitors are still figuring out basic measurement protocols. That's a significant advantage in premium export markets.

Visit Highwood Emissions Management at Booth B13 during African Energy Week, Sep 29 – Oct 3, to learn how the Emissions Intelligence Platform can help your company achieve successful methane reconciliation and maintain access to European markets.