Russia is lobbying African leaders to expand its presence in the African oil and gas sector and diversify its global energy influence, this is just as Amb. Gabriel Aduda, Nigeria’s Permanent Secretary of the Ministry of Petroleum Resources has asked Russia and Africa to prioritize technology transfer, capacity building, and knowledge sharing to ensure long-term energy security and strengthen their regional economies.
AMBASSADOR ADUDA ON THE PANEL
The Permanent Secretary made this known as a panelist during a session on “Russia – Africa: Prospects for Energy Cooperation” where he discussed the importance of partnership between Russia and African nations, at the ongoing 2nd Russia-Africa Summit which kicked off on Thursday, in Saint Petersburg, Russia.
According to Aduda, the partnership between Africa and Russia should prioritize technology transfer, capacity building, and knowledge sharing to empower African nations and ensure long-term energy security, and strengthen regional economies.
The Permanent Secretary expressed that view on the sideline of the commitment by Russia to reshape its energy cooperation with African countries following its invasion of Ukraine.
EnergyDay’s review of the statement showed that the partnership between Russia and African countries has strong roots and has always been distinguished by stability, trust, and cooperation.
African countries are emerging as a new center of power, and Russia is looking to intensify its energy cooperation with Nigeria, Algeria and other African nations.
In recent years, Russian companies have been acquiring oil and gas assets in Africa, particularly in Nigeria, Angola, Cameroon, Egypt, the Republic of the Congo, Libya, Algeria, and Ghana.
This move has allowed Russia to strengthen its foothold in the African energy market and diversify its global energy influence.
RUSSIA’S ACQUISITION IN NIGERIA
Russia’s companies, Lukoil and Gazprom, have been operating in Nigeria and have acquired significant oil and gas assets.
Lukoil is operating the Bonga Southwest1 and Nsiko (Ofigbo) fields in Nigeria.
These acquisitions have given Russia a strong presence in Nigeria’s oil and gas sector.
EXPANSION IN OTHER AFRICAN COUNTRIES
Apart from Nigeria, Russia has also made significant investments in Angola, Cameroon, Egypt, the Republic of the Congo, Libya, Algeria, and Ghana. Russian oil and gas companies have control over large oil and gas assets in these countries.
RUSSIA’S TOTAL RECOVERABLE RESERVES IN AFRICA
According to S&P Commodity Insights, Russia’s total recoverable reserves in Africa are estimated to be around 1.77 billion barrels of oil equivalent (boe).
This indicates the significant potential for Russia to further expand its operations in the African continent.
IMPACT OF RUSSIA’S ACTIVITIES ON AFRICAN MARKETS
The influx of Russian oil products into Africa has increased since the invasion of Ukraine, leading to increased competition in the region. Russian oil products have flooded into African markets, undercutting Nigeria’s Bonny light, Dalia, and other African barrels.
This has created challenges for African oil-producing countries, including Nigeria, as they face competition from Russian imports.
EUROPE’S LNG INTAKE
Despite Europe diversifying its liquefied natural gas (LNG) intake from Russia, Russian oil products continue to find their way into African markets.
This highlights the growing influence of Russian companies in the African oil and gas sector.
Russia’s expansion in the African oil and gas sector is driven by the need to find new markets as Europe turns away from Russian fuel.
The country aims to protect its global market share and prevent a decline in oil exports and output.
African countries, particularly those in North Africa, have become significant buyers of Russian oil products, filling the gap left by the European market.
EnergyDay gathered that 49 African delegations and 17 heads of state are participating in the two-day summit and economic forum.
The top issues expected to be discussed are food security and the Wagner military group’s future on the continent.