Standard Bank, one of the largest banks in Africa with biggest oil and gas assets, has promised long-term permanent financing instruments in support of Africa’s crude oil and gas production, as part of its commitment to unlock the continent’s access to energy.
Kenny Fihla, Chief Executive Officer of Standard’s corporate and investment banking unit, emphasised this in a recent interview with Bloomberg.
According to him, it is not possible for Africa and many of the African countries to ignore the shortage of electricity supply.
He said, “Today’s challenges are not going to be resolved overnight and therefore a much more balanced approach is required.
Dele Kuti, the Bank’s Global Head Oil and Gas , in a recent statement said, “Africa is likely to experience continued oil and gas investment over the next three to five years as the stabilisation of crude prices above $60 per barrel, coupled with the continent’s rapidly expanding population, lure oil producers to one of the last remaining energy investments frontiers.”
EnergyDay gathered that the banker is speaking on the sideline of increased pressure facing major financial institutions all over the world on the need to cut financing for fossil fuel projects.
Despite several petitions and criticism against its fossil fuel exposure, Standard Bank has continued to further provide long-term financial instruments to most African oil and gas companies.
Standard Bank in its website seen by EnergyDay revealed that it has deep specialisation in natural resources, including oil & gas, where we offer extensive financial solutions clients require across the oil and gas value chain.
Further check by EnergyDay showed the Bank has strong presence in Nigeria and other 19 African countries.
It has provided a permanent long-term financing instrument for the acquisition price of an oil mining lease in Nigeria (OML 30) operated by Shoreline Natural Resources. Shoreline holds 45 per cent participating interest in OML 30, formerly managed by Shell Petroleum Development Company of Nigeria Ltd (SPDC), Total E&P Nigeria Ltd (Total) and Nigeria Agip Oil Company (Agip).
The bank’s 2022 climate report showed that the bank’s on- and off-balance sheet exposure to fossil fuels jumped by 22% from 2021 to 2022.
Its total exposure to gas-fired power generation, coal mining, and oil and gas (integrated, trading & retail, exploration and production, and midstream) was $6.5 billion in 2022.
However, its exposure to renewables jumped by a much larger percentage, 84%.