Africa’s largest oil producers do not plan to abandon oil and gas exploration and production and may consider setting up a continent-wide bank to finance new projects when international banks refuse to. finance new developments.
Nigeria, an OPEC member and Africa’s largest oil producer, this week hosted a roundtable on local content in oil and gas projects, attended by Nigerian Petroleum Minister Timipre Sylva, Secretary General from the Organization of African Petroleum Producers (APPO), Omar Ibrahim, and representatives of other African producers where oil and gas represent a significant share of gross domestic product (GDP). Nations present included Angola, Algeria, Egypt, Gabon, Cameroon and Niger.
“As more than 15 African countries produce and export crude oil, a sad reality is that our people have not taken full advantage of this natural resource,” Nigerian Minister Sylva said, reported by a local outlet. This day.
Increasing the share of local content in petroleum services and the industry supply chain is one of the ways to cope with the growing reluctance for financing oil and gas projects and the environmental backlash against fossil fuels, according to Sylva.
Simbi Wabote, executive secretary of the Nigerian Content Development Oversight Board (NCDMB), said Africa may need to create a continental bank to finance oil and gas projects now that major international banks are re-examining their exposure and their commitments to fossil fuels.
“Financial institutions and CIOs, even educational research institutions, which are innovation centers for the industry are closing their oil faculties in order to be seen as conforming to the global paradigm shift,” This Day said citing the secretary general of African Petroleum. Organization of producers, Ibrahim, as said.
“With over 100 billion barrels of oil still in our soil, most economies are still heavily dependent on oil revenues. Is Africa ready to give up producing those 100 billion barrels and classify them as wasted assets? ” Ibrahim added.
By Tsvetana Paraskova for OilUSD
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