Luanda – Member Countries of the African Petroleum Producers Organization and partners reflected on Tuesday on the conditions the continent has to produce and process 125 billion barrels of oil from confirmed reserves, without the support of western technology and finance.
Speaking at the Roundtable on “African Local Content: Policy Review and Progress in Implementing Local Content in Africa,” participants reflected on how prepared Africa is to produce, process and trade more than 125 billion barrels of proven oil reserves and more than 500 trillion cubic feet of gas, without Western technology and finance.
The session provided an opportunity to highlight developments and progress in local content, developed in African oil and gas producing countries, especially in light of the global energy transition away from fossil fuels.
Simbi Wabote, Executive Secretary of Nigeria’s Content Development and Monitoring Board, advanced that soon, industry partners may withdraw technologies, refuse to buy African products, thus forcing countries to improve the capacity to keep moving forward.
The Nigerian senior executive, who was moderator of the panel, lamented the fact that 600 million Africans are without access to electricity, which he called a “continent in the dark”.
Based on statistics already published, he also complained about the existence of 800 million Africans without access to cooking gas, especially now that we are talking about energy transition.
Regarding energy transition, he said it is an issue already discussed within Nigerians, but in his view, energy transition is not a new phenomenon, recalling the replacement of the use of wood for coal, and so on.
He explained that because of the situation of the conflict between Russia and Ukraine, some European countries are questioning whether Africa can give more oil and gas, further stressing that mineral resources are imperative for the African continent.
Babafemi Oyewole, CEO of Energy Synergy Partners, said Local Content is a challenge for African countries calling for the need to the develop regional market for oil and gas services.
He added that African countries should take full advantage in the new initiatives of the African Continental Free Trade Area (ACFTA).
Another issue around Local Content, is the access to financing for companies, which Oyewole said he considers fundamental, for the continent needs to get used to the new normal, that is, the new themes on renewable energy, otherwise financing will be difficult.
Therefore, he says he welcomes the setting up of a fund for the creation of an energy bank, an initiative that counts on the commitment of the Afreximbank.
Francisco Monteiro, president and CEO of BRIMONT, an Angolan company, said he believes that the expectations that are created for the post-oil era are safeguarded and a better future is foreseen.
He added that there are good laws, but there is still some deficit in monitoring them.
Another aspect raised by Francisco Monteiro, is related to bank loans, about which he said, banks do not have adequate instruments suiting the reality of the country.
Source: Angola Press News Agency