Connect with us

Africa

Investigating Policy and Business Requisites to Boost Hydrocarbon Investment in Africa

Published

on

 A panel discussion organized at the 8th African Petroleum Congress and Exhibition Cape VIII which took place from May 16 19 2022 in Luanda Angola explored how Africa can address the growing investment gap within the industry of hydrocarbons to guarantee the survival of the continent 125 billion barrels of oil and 620 trillion cubic feet hellip
Investigating Policy and Business Requisites to Boost Hydrocarbon Investment in Africa

NNN: A panel discussion organized at the 8th African Petroleum Congress and Exhibition (Cape VIII), which took place from May 16-19, 2022, in Luanda, Angola, explored how Africa can address the growing investment gap within the industry. of hydrocarbons to guarantee the survival of the continent. 125 billion barrels of oil and 620 trillion cubic feet of proven gas resources are fully exploited.

naijanews ng com

naijanews ng com

Moderated by Rene Awambeng, Global Head of Client Relations at Afreximbank and Advisory Council Member of the African Chamber of Energy, under the theme “Facilitating Investment in the African Oil and Gas Industry”, speakers included Matthieu Milandri, Director of Upstream Finance at Trafigura; Taiwo Okwor, Vice President of Natural Resources of Africa Finance Corporation (AFC); Zakaria Dosso, Managing Director of Africa Energy Investment Corporation; and Thembisile Salman, Senior Professional at the New Development Bank.

naijanews ng com

Commenting on where the African oil and gas industry should get funding to accelerate exploration and production, Awambeng stated that “Africa is a $1.5 billion market and as such needs to finance its own infrastructure construction, including railway lines, refineries and oil pipelines. . Currently, we are buying our own oil at a price three times higher than we would have sold the energy due to the lack of infrastructure.”

Milandri added that “the multinational banks and local banks that are replacing international banks in financing hydrocarbon development should stop competing with each other and rather combine their experience. We did a collaboration with the AFC recently in a bid to ensure a combination of our partners and financial models is used to address the growing infrastructure gap.”

Zakaria Dosso emphasized that the private sector is more dynamic and as such will be able to provide the massive investments needed to address the energy transition challenges facing the African oil and gas industry. He added that the partnership between APPO and Afreximbank to develop an African Power Bank will enable greater private sector involvement to unlock the full potential of the continent’s oil and gas industry.

“There is a great need for enhanced cooperation among the 67 development finance institutions (DFIs) in Africa, as well as greater collaboration among African states, to marshal financial resources to accelerate investments throughout the oil and gas value chain. the gas,” Dosso said. .

Expanding on Dosso’s notion, Okwor added that “investment initiatives led by the private sector will ensure a sufficient supply of capital, however, governments must commit to financing banks to finance energy projects. The political will to finance the banks will allow other investors to put their money into the sector. The memorandum of understanding signed by Afreximbank and APPO for the energy bank is a great start and will act as a model for how Africa can collectively work to address the lack of infrastructure, such as refineries and pipelines, that is pushing Africa to become a net exporter of refined oil. despite having huge oil and gas reserves. The AFC seeks to participate in the development of refineries such as the Cabinda refinery in Angola”

Although Africa is developing its own financial solutions, the importance of maintaining partnerships with international financial organizations was also highlighted during the discussion with Salman, who stated that “Africa cannot do it alone, we still need our international partners.”

Finally, the discussion concluded with an investigation into how Africa’s oil and gas industry should respond to global calls to reduce carbon emissions. In this regard, Milandri explained that Africa should not be penalized for emissions for which the continent is not responsible, however, African hydrocarbon projects must prioritize the integration of sustainable technologies and business practices, such as reducing gas flaring and the deployment of carbon capture solutions.

bet9ja com2

NNN is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. We are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and we strive diligently to ascertain the truth in every news report. Contact: editor @ nnn.ng. Disclaimer.