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Published On: Tue, Jan 29th, 2019

Petroleum Producers to mobilise $2bn for critical infrastructure

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By Etuka Sunday

President of the African Petroleum Producers Organisation (APPO) and Nigeria’s Minister of State for Petroleum Resources Dr. Ibe Kachikwu said the organisation is seeking to mobilise about $2bn of resources to fund critical areas of infrastructural collaboration within Africa.
Kachikwu said this on Monday in a speech at the Nigeria International Petroleum Summit (NIPS) holding in Abuja.
He spoke on the theme “Africa on the Global Stage: International Collaboration, Opportunities & the Future.”
APPO made up of 18 member oil producing countries, accounts for nearly 95 per cent of Africa’s oil production and at least 13% of world production.
He said a major reform aimed at repositioning the organisation and make it relevant was recently completed.
Part of the reforms identified by the APPO included an increased synergy that would help mobilize the investment needed to facilitate and deliver the major infrastructure required by the continent, such as trans-border gas and oil pipeline, joint refineries, gas plants and others.
Kachikwu said a presentation to the APPO council of ministers at the weekend was made on all the new changes needed to be done in the organisation.
“The whole idea is to mobilise between $1 billion and $2 billion of resources to fund all the essentials necessary for us to properly collaborate.
“Today, most African countries are silos, everybody does their own thing; you build your own refineries, plants, gas turbines etc. If we could just cross the Rubicon and be able to extend hands of infrastructural relationship across Africa; build joint pipeline, plants and refineries; begin to protect the African market, we would have taken a huge step, not only in the development of Africa, but to the stabilisation of independent countries,” he said.
“We have finished that meeting and signed on to resolutions that endorsed all the changes that we have suggested. We are now going to move on the implementation stages,” he said.
For Nigeria, he said, 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.
“Asides our aggressive effort in domestic gas supply, we are also expanding frontiers in the export market. The FEED contract for NLNG Train 7 was signed in July 2018 and this is expected to be completed in Q1 2019.
“We have also an executed MOU between NNPC and Office National des Hydrocarbures et des Mines (ONHYM) Morocco forcollaboration in the construction of a gas pipeline from Nigeria to Morocco (NGMP). The NGMP Feasibility Study was completed in July 2018 and the FEED Phase 1 scope is expected to be completed by end of Q1, 2019.
“The Nigeria Gas Flare Commercialization program which was recently launched is unique globally and it is in our efforts to drive out flares, benefit the host communities, positively impact the Nigerian economy and presents a private sector led market driven solution to reach our goal.
“It is also important our infrastructures are robust. Hence, our desire to launch an infrastructural rebirth program soon. The goal is to ensure all infrastructures, ranging from refineries to pipelines, are of the best standard. This ensures that the multiplier effect of our resources is reverberated throughout the nation. The successes of other sectors, like the manufacturing and power sector are heavily dependent on the state of our energy infrastructure,” he said.
Also speaking, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, proposed collaboration among African countries in the area of oil and gas infrastructure in order to remain competitive on the global stage.
“We need to collaborate especially in the area of infrastructure. Today, Nigeria and Morocco are collaborating to construct a gas pipeline that will traverse at least 15 West African countries and connect the existing Europe gas pipeline. The feasibility study has been concluded and the pre-FID greenfield optimisation study is currently ongoing.
“This pipeline will help in the industrialisation of these countries. It will also meet the needs of consumers for heating and other uses. We will use gas as a fuel to take Africa to the next level. New gas discoveries have been recorded offshore Senegal, Mauritania, Mozambique and are in various stages of development.
“Nigeria is also targeting to take FID on LNG Train 7 this year. So African countries need to collaborate and trade among each other not only in terms of oil and gas but also in other key sectors so that the multiplier effect is seen across our various economies,” he said.
NIPS 2019 attracted participants from members of African Petroleum Producers Organization (APPO), Gas Exporting Countries Forum (GECF) and Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industries (LCCI), amongst others.

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