Stakeholders list ways for oil, gas development in Africa

Participants at the ongoing West African International Petroleum Exhibition and Conference (WAIPEC) have offered the way forward for the future of oil and gas on the African continent amidst new global trends and challenges.

The experts, who noted this yesterday in Lagos, explained that developments in the industry on new frontiers in renewables would affect energy security on the continent.In his keynote address on The Future Of Global Oil And Gas Industry In The Next Decade And The Impact On The African Region, Chief Executive Officer, Seplat Petroleum Development Company, Nigeria, Austin Avuru, said the continent needed to work towards a domestic energy security to avoid crises in the next decade.

He stated that some factors responsible for security include oil prices, advent of electronic vehicles, influence of the Organisation of Oil Exporting Countries (OPEC), changing energy mix and investment in renewable energy by International Oil Companies (IOCs), which would replace fossil fuel in the near future.

He explained that the trend might take Africa about 20 years to adopt considering the fact most countries in the region import petroleum products, which he stated might be tantamount to energy insecurity.

“Africa’s energy consumption has been forecast to hit about 88 per cent in the next 20 years and with this global shift, where would the supply come from to solve our energy problems? He asked.Avuru argued that the same multinationals in the fossil fuel market were moving with the times and investing in renewable energy, adding that the largest source of renewable energy in the world was China, adding: “This is changing the energy mix.”

Meanwhile, Chairman, House of Representatives Committee on local content, Emmanuel Ekon, disclosed that the House would soon commence second reading of the Local Content Diversification Bill, saying several hitches have been resolved.

He stressed that the committee needed to look into international trade laws and treaties to enhance progress in the industry.Ekon, however, expressed the hope the bill would be passed into law with ease, just like the existing local content law in the oil and gas sector.

Acting Head of Local Content Department of Ghana’s Petroleum Commission, Kwadwo Kyei said local content expenditure in Ghana were tracked in relation to the total volume of contracts given out to ensure they are on target.

On fabrications, he said there were a few local companies that have the technical capacity to undertake some fabrications, although there are intentions to build more capacity in the area.Kyei also revealed that about 10,000 Ghanaians are in the off and on shore upstream sector providing services, with about 60 per cent of them contributing to the upstream numbers.