Energy Transitioning: Africa’s Oil & Gas Industry Needs New Model To Survive–APPO

The Secretary General of the African Petroleum Producers Organization (APPO) Umar Farouk Ibrahim, has said that the United States and other first world countries pushing for net zero transition by 2050 do not have the moral right to dictate to Africans on how to use their oil and gas deposits.

The APPO secretary general said this on Monday at the African Local Content Investment Forum organised by
the Nigerian Content Development and Monitoring Board (NCDMB).

Africa is under pressure to put aside crude oil by 2050 as agreed by first world countries including the US, France and UK among others who are the major emitters of greenhouse gas.

But African leaders argued last year at the COP26 held in Glasgow last year that the continent is facing severe energy poverty and inequality and opted for 2060 as a viable date for its transition.

Africa emits only 3.8 per cent of global greenhouse gas.

He said, “Lest we are misunderstood, Africa does not contest the science of climate change. We are not against any action that shall make the world a better place for all.

“What we are saying is that by prioritizing the growth of their national economies and the wellbeing of their people over the health of humankind in the nineteenth century, today’s advanced countries who are the main champion of climate change and the greatest culprits of atmospheric emission have lost their moral right to tell others what their priorities should be in the energy transition agenda.”

Countries like Nigeria are already seeing investor apathy in the oil and gas sector.

Royal Dutch Shell and Exxonmobil are divesting their investment in the Nigerian oil and gas sector, hence leaving the country to scout for new investors.

But the government has said that they are not exiting the country.

Farouk said, “Energy transition is real. The advanced countries are determined to move away from the energy that they do not control. It is a matter of national security and national interest and for this, they are prepared to pay any price.

“They are closing their institutions that for about a century have become global centres of oil and gas technology research. They are ordering their financial institutions that for decades has for decades funded the industry not to fund oil and gas projects aymore. They are investing heavily in alternative sources of energy.

“All these are taking us by surprise and have been held napping. Africa can still rectify its mistakes.

“The oil and gas industry in Africa shall need a new model in order to survive. If it fails to strategise and come out with a new model, it risks losing the 125bn proven crude oil reserves and the hundreds of trillions of proven gas reserves.”

He explained that the model would require the cooperation and collaboration of all oil producers in the continent.

According to the APPO boss, aside from the local content push practiced by producing countries, members need to adopt a continent wide approach to combat capacity and technology development challenges resulting from the energy transition.

Farouk added, “It is high time Africa understood that its salvation lies in its own hands. We cannot continue to look outside for help to save ourselves. We cannot afford to discard what we have in abundance to what we do not have.

“We will not change from one form of dependence to another form of dependence.”