The Organisation of Petroleum Exporting Countries(OPEC), Secretary General, Mohammad Barkindo, has disclosed that African countries have historically assumed strong, proactive leadership roles in organisation.
He made this known in his keynote speech at the opening of African Energy Week that is taking place in Cape Town, South Africa, from 9-12 November 2021, under the theme “Making energy poverty history by 2030.”
Barkindo while highlighting the key contributions made by African OPEC member countries to the success of the organization, said, “African countries have historically assumed strong, proactive leadership roles in OPEC.”
The OPEC SG underscored the critical role that African oil producers are set to play in meeting current and future energy demand.
He said, “The world will continue to rely on Africa’s precious resources in the long term in order to meet the rapidly rising global demand for oil and gas.
“Access to affordable, reliable, sustainable and modern energy is a right for all, not a privilege.
He further disclosed that energy poverty numbers for Africa are stark, adding that this must be reflected in all dialogues, including those on climate change.
He said, “We estimate a total of roughly $1.5tn will be spent by OPEC during the period 2021-2045 on downstream investment. $450bn out of this will be invested in new refinery projects and expansions of existing units.
“Most of these projects will be located in developing countries, including Africa. OPEC is creating the investment-enabling environment in the developing countries based on key conclusion from the World Oil Outlook.
“Cumulative oil-related investment requirements amount to $11.8tn in the 2021-2045 period. Out of this, 80 per cent amounting to $9.2tn, will be pulled into the upstream, with another $1.1tn needed in the midstream.
“This pioneering framework for multilateral energy cooperation continues to contribute greatly to the post-pandemic economic recovery as a vital stabilising force in the global oil industry,” the SG said.
Barkindo, however noted that COVID-19 pandemic has resulted in closure of most refineries across the world, suggesting that more will still shut down operation due to the advent of energy transition.
He however affirmed that between 2021 and 2026, the Middle East, Asia-Pacific and Africa are expected to see around 6.9 million barrels per day of new refining capacity.
The OPEC SG projected that Africa’s potential refining capacity start increasing in 2022 at just below 0.4mb/d, before reaching just above 1mb/d in 2026.