New pan-African strategy for oil, gas funding unveiled in Lagos

Olubunmi Martins

Energy stakeholders across the African continent have announced the creation of common fund and facilities to develop as much as 125 million barrels of crude oil reserves , located across the continent. They plan to raise needed financing through independent sources outside of the International Financial Corporation and its allies.

This was one of the major highlights at the maiden edition of the African Local Content Investment Forum (ALCIF) with theme “Evolving A Pan-African Strategy Towards Sustainable Funding of Africa Oil & Gas Projects”, held in Lagos on Monday.

According to the keynote speakers a higher volume of natural gas is also locked up in the bowels of the continent. They revealed that access to funding is constricted for fossil oil development in Africa, with the Word Bank leading other multilateral agencies on a campaign for global switch to renewable energy sources.
Dr. Omar Farouk Ibrahim, Secretary General of the African Petroleum Producers’ Organization disclosed that Africa generates an insignificant 4 percent of global methane emission but, the continent is coerce to sacrifice this huge revenue source at a time when over 600 million people are without access to energy we could unlock”.

He added that, “A new Agenda for Africa’s oil and gas resource development is now a compelling necessity ”
Engr Simbi Wabote, the Executive Secretary of the Nigerian Content Development And Monitoring Board, the agenda, will foster greater cooperation between countries in Africa with proven reserves of hydrocarbon.

Engr. Wabote said the new initiative is not meant to scuttle the global commitment to cleaner energy but rather, to optimize resources as best as we could.

He said, “There are very bright spots in the Oil and Gas business and there is a need for Africa to develop a robust response against the push for Africa to abandon her hydrocarbon resources.

“The new Agenda is rolled out , at the maiden edition of the African Local Content Investment Forum (ALCIF) with theme “Evolving A Pan-African Strategy Towards Sustainable Funding of Africa Oil & Gas Projects”

The consensus of the eighteen member countries with a large number of private sector players is firmly in favor of looking within the continent for funding, technology innovations and coherent engagement with the global business community.

However China and India , both dependent on hydrocarbon resource for their development goals, are major consumers of hydrocarbon and they both maintained a balanced view on gas.

Chief Timipre Sylva, Minister of State for Petroleum Resources, who was represented by Dr. Nasir Gwarzo, explained in his address that the use of natural gas as a cleaner energy resource is central to the success of the new agenda under discussion and will complement the global transition to cleaner energy benefits.

He said, “Africa is more endowed with Natural Gas that will serve as the transition resource to global cleaner energy.”