Participants at the 3rd Edition of the International Energy, Oil & Gas Summit, organized by the African Peace Organization held in Namibia recently noted that many African countries, despite having significant natural resources particularly in hydrocarbons are still lagging in energy access and affordability for their large populations.
As a result, these countries cannot afford to abandon fossil fuel exploitation and exploration, even amid calls for energy transition.
“African nations must look inward and encourage their indigenous private sectors to invest in the development of their substantial oil, gas, and hydrogen reserves. Paradoxically, participants observed that despite Africa’s substantial gas reserves, the continent struggles to fully explore these resources to achieve adequate electricity generation and liquefied petroleum gas (LPG) extraction capacity,” Summit recommendations say.
The participants considered that African Energy, Oil and gas policy makers, practitioners and experts must continue to network and discuss the growth, the challenges, and the future prospects of our Continent in terms of Energy, Oil and Gas since producing countries and companies based in Africa face peculiar challenges in terms of regulatory environment, financing, infrastructure, technology acquisitions and domestication. -It was agreed that by coming together in a forum like this summit, the policy makers and operators can exchange ideas, share knowledge and experiences that will hopefully lighten their burdens going forward as the countries and practitioners continue to provide that critical energy that drives the economy of the various countries, particularly in this era of global Energy Transition discourse.
Further, the Summit agreed that there is an urgent need to accelerate the utilization of all resources from the oil and gas value chain instead of present heavy reliance on crude oil exploration and export, while also ensuring an end to gas flaring and other environmental challenges related to oil exploration
The Summit therefore commended the Nigeria Regulatory framework through the passage of the Petroleum Industry Act 2021, which has prioritized the separation of Midstream and downstream petroleum activities as a means of achieving increased gas utilization and energy security. In this wise, the summit commends Green Energy international ltd, for been the first Nigerian marginal field operator to establish a modular LPG extraction plant, thereby eliminating associated gas flares in Nigerian stranded oil fields. “The Otakikpo field innovative strategy”
Participants, recognizing the vast gas resources and solar energy potential in Africa both regarded as clean energy sources urged all African countries to actively promote gas utilization and solar energy to unlock the continent’s significant energy potential for its people. In this regard, the summit commended the Nigerian midstream and downstream regulator, under the leadership of Engr. Farouk Ahmed, Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), for its proactive approach to developing gas resources in Nigeria. This includes offering generous incentives and providing funding support for investment in the gas sector.
The summit brought together policymakers, regulators, industry representatives from energy, oil, and gas companies, and academics. Keynote addresses and presentations were delivered by industry regulators, operators, experts, and scholars, who addressed the summit’s central themes. Prominent speakers included Engr. Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA); Hon. Justice A. Galadima (Rtd.), Chairman of the African Peace Organization; Prof. Anthony Adegbulugbe, Chairman of Green Energy International Ltd; HRH Sir David Serena Dokubo, Director at Green Energy International Ltd; Prof. Jude Osakwe from the University of Namibia; Mr. Aggrey Ashaba, General Manager at Alliad Uganda; Mr. Wesley Musinga; Eva Asalirwa from Alliad Uganda; Ms. Abimbola Okoya, Founder of Basic Education Africa; Mr. Daniel Tuyoleni, CEO of Mind Space Consult, Namibia; M. Jinot Razafimamonjy – Director of Hydrocarbons, Ministry of Energy and Hydrocarbons, Madagascar, Madagascar; Mr. Cydolain Raveloson, Director General of the Office Malgache des Hydrocarbures (OMH), Madagascar; Olusegun Ilori Esq., Managing Director/CEO of First Otakikpo Midstream Ltd (FOML), Nigeria; Mr. Tarah N. Shaanika, CEO of Namibia Asset Management; His Royal Majesty Makitu III of the Kingdom of Kongo, Angola; Dr. Joseph Tolorunse, Secretary and Legal Adviser for the NMDPRA, among others.
As part of its broader recommendations, the conference resolved that sustained broad based economic growth and poverty reduction are critical to Africa’s economic growth and stability.
It also called on African States and Governments to refocus efforts on infrastructure development, improve power generation, improve agricultural productivity, and expand jobs in rural areas. There should also be greater attention on youth employment through education and entrepreneurship skills training.
Further, the Summit issued a cautionary message, highlighting the diminishing relevance of Africa’s current natural resources in the face of the imperative shift towards renewable energy solutions driven by climate change concerns. It stressed the urgency of embracing the new economic realities of the 21st century that will overshadow the significance of present natural resources.
The Summit also stressed the need for a smooth energy transition while it noted the severe impact of insecurity on Africa’s development and examined the various factors contributing to this challenge. Key observations included the devastating effects of terrorism, non-participation of communities in security efforts, unemployment’s link to unrest and the need for regional cooperation and intelligence sharing.
“All personnel responsible for preventing, controlling, and/or cleaning up oils spills in Africa should do more, they should be trained and to follow the Standard Operating Procedure. Training should be conducted annually. All spills should be documented and maintained. This should involve the host communities, the companies and the government.
“Local content development is fast becoming a strategic management issue for multinational extractive companies in Africa with significant efficiency and profitability implications. As local content statutory regulators aim to increase the average local content value in the Africa’s oil and gas industry. There is an urgent need to embrace the spirit and the letter of the laws in other to achieve the desired results,” the Summit noted.