Africa’s Global Oil Exports To Grow By 15% In 2020 – Kachikwu
The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said that hydrocarbon-rich African countries including Nigeria, would by 2020 see their oil production and net export to the world grow by 15 per cent.
Kachikwu, also said that in the last five years, nearly 30 per cent of oil and gas discoveries made across the world were from Sub-Saharan African countries.
According to him, by 2050, the continent’s oil and gas deposit would rise by 74 per cent, thus indicating that African oil producers would need to review their policy in the sector to make the most of the upcoming opportunities.
Speaking at the second edition of the Nigerian International Petroleum Summit (NIPS) in Abuja recently, Kachikwu, explained that Nigeria on its part had begun to initiate reforms to revamp its oil industry. He also called for a robust cooperation between African oil producers ahead of the projected changes.
The minister equally called Africa’s oil producers to make their oil and gas resources work for the development of their economies and not just as revenue earners.
“Africa today has enormous potential in hydrocarbon resources. Africa is home to several major petroleum producers which include Nigeria Angola, Libya and these are being joined by emerging producers, such as Mozambique and Tanzania. The region’s existing energy resources are more than sufficient to meet its overall needs. “Africa offers tremendous potential for exploration, production and utilisation of natural gas reserves. The continent is set to be a hub for natural gas production and export with market potential in Asia-Pacific and Europe.
“Africa’s place as a significant producer and net exporter of oil in the world is forecast to grow by 15 per cent by 2020 due to new discoveries in some SubSahara countries. In the last five years nearly 30 per cent of the world’s oil and gas discoveries were in Sub-Saharan Africa,” said Kachikwu.
He further explained: “It is estimated that Africa oil and gas will increase by 74 per cent by 2050. We need the right policies, the right partnerships and the right investments. And now is the only time. “The type of partnership needed is one that will create wealth and value in our continent. The oil and gas industry needs to become an enabler for Africa economic growth and not just a revenue earner. An economy is powered by adequate energy and moved by infrastructure.”
Referring to Nigeria, he stated that the country’s petroleum industry was still critical to her economic development, adding that the government was taking up reforms which cut across every facet of the industry, particularly to enshrine transparency and removes barriers to the participation of new small and big players through clear rules of engagement.
“The benefits are clear to see, our new JV cash call arrangements and repayment plans has been successful and sustained enabling increased investment by operators. For the first time in a long time, all payments were made as agreed and as scheduled and all backlog payments are being repaid in accordance with agreed plans. “Part of our efforts for harnessing the currently 202 trillion cubic feet proven reserves is to boost gas supply to meet the extraordinary gas demand for power and commercial usage,” he noted.
