The Organisation of the Petroleum Exporting Countries, (OPEC) has reaffirmed its commitment to unlocking Africa’s full oil potential, emphasising that that is remains the organisation’s top priority
This is as the Independent Petroleum Producers Group (IPPG) lauded the federal government on the conclusion of the divestment deals by International Oil Companies (IOCs) in Nigeria, stating that it has led to a boost in activities of indigenous companies, which now contribute about 50 per cent to total oil production in the country.
OPEC secretary general, Haitham Al-Ghais, who gave this commitment, emphasised the significant oil reserves Africa holds, with proven reserves amounting to approximately 120 billion barrels.
Speaking at the ongoing 8th Nigeria International Energy Summit (NIES) in Abuja on Tuesday, at the 8th edition of the Al-Ghais noted that the vast and plentiful resources at our disposal should not be disregarded or neglected merely to accommodate the energy transition agenda pushed by Western nations.
He said, “I would like to congratulate the organizers for selecting such an important theme, one that aligns closely with OPEC’s objectives.
“Unlocking the full potential of this great continent is an utmost priority for OPEC, and we will continue to work closely with the Nigerian government and our other African members to achieve this goal.
Al-Ghais highlighted the strong and enduring relationship between OPEC and Africa, noting that half of OPEC’s member countries are from the continent, including Nigeria, the most populous African nation, and Algeria, the largest in geographical size.
Other African OPEC members include Congo, Gabon, Equatorial Guinea, and Libya.
Al-Ghais also pointed to Africa’s youthful and dynamic population, which presents a strong workforce for the oil sector. “It’s crucial to discuss how we can unlock the potential that this great continent holds, and how to create an investment-enabling environment that attracts the capital necessary to fully realize that potential,” he said.
“The investment needs of the oil industry are substantial, with cumulative requirements amounting to $17.4 trillion by 2050. This is why stability in the oil market is essential for investors to plan effectively,” he added.
Meanwhile, Chairman of IPPG, Abdulrazaq Isa, noted that the wave of IOC divestments demonstrated indigenous players’ capacity to perform at the highest level, adding that the transferred assets are in safe hands.
He said, “With the conclusion of the IOC divestments, IPPG members now have a national responsibility and will be at the forefront of the nation’s quest for industrialization by significantly investing across the industry value chain in order to stimulate a wide array of strategic sectors, from petrochemicals to agriculture, power to manufacturing, construction to transportation, and so many more sectors.
“The divestment also means indigenous E&P’s contribution to national oil and gas production is now about 50 per cent and expected to increase over time. This marks a defining moment for our members, and we shall be the catalyst of this economic transformation, a critical pathway to creating a trillion-dollar economy within a decade.
“It is for this reason IPPG applauds and fully supports the domestic crude oil supply obligation this year, being promoted by the NUPRC, and is actively engaging the government on its successful execution, given its relevance to achieving our shared goals of energy security and value creation.”
He stressed that as the global energy landscape is constantly evolving, Africa, led by Nigeria, must seize the opportunity to take charge of its energy future on its own terms in order to address the widespread chronic energy challenges it faces.
He noted that the various policies being introduced by the Tinubu-led administration have continued to bring a steady turnaround in the sector, with the intended outcomes beginning to manifest.
He explained that diligent implementation of the Decade of Gas Initiative has unlocked critical gas development projects supporting LNG production, gas-to-power initiatives and cheaper fuel switching initiatives notably the Presidential CNG Initiative.
“Specifically in the following, steady growth in our crude oil production, enabling us to now meet our OPEC quota of 1.5 million barrels of oil a day, significant improvement in the security situation in the Niger Delta, creating a conducive operating environment for our operations to thrive.
“Announcement of FIDs in the tune of $5.5 billion on two major projects, the NNPC and Total Energy’s Ubeta field development and Shell Bonga North in direct response to the Presidential Executive Orders issued in March 2024.
“The initiative has also led to the settlement of outstanding legacy gas debts, thereby boosting investor confidence. Announcement of annual bid rounds by NUPRC for the exploitation, appraisal and development of acreages, signaling an intention for sustainable production and reserve growth.
