Oil & Energy
Stakeholders Seek Home-Grown Solutions To Africa’s Oil, Gas Problems
Key stakeholders and policy makers in Africa’s oil and gas and other related sectors have stressed the need for the continent to look within for solutions to its problems in the face of global economic challenges.
The stakeholders made the call at the Third Edition of the African Local Content Roundtable themed “Fostering Local Content In Africa for Africans”, in Abuja.
The stakeholders unanimously agreed that the concept of local content is not merely a policy, but a catalyst for transformation.
A Statement signed by the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, weekend, noted that one of the greatest challenges bedevilling the African oil and gas industry is local manufacturing of components.
“90 per cent, if not more, of the equipment that we use are imported because we’ve not focused on how to manufacture some of the components in-country”, he said.
While stating that “the importance of developing homegrown cost-effective affordable and scalable solutions to address local challenges cannot be overemphasised”, Wabote identified prioritisation of research and development as well as funding as key to delivering local content goals on the continent.
He called for robust engagements on quality service and equipment manufacturing, cross-border partnerships, intensive out-of-the-box thinking and improvement of funding sources or leveraging additional funding sources to overcome the funding challenges of oil and gas producing countries.
“The time for change is now and it is our collective responsibility to usher in a new era of local content development and implementation in Africa’s oil and gas industry. The NCDMB stands as a key advocate In local content development, not just in Nigeria, but Africa as a whole”, he said.
On his part, the Secretary General of the African Petroleum Producers Organization, Omar Farouk, lamented that Africa has continued to be dependent on foreign oil and gas technologies despite being in the oil prodcuing business for years and making billions from oil and gas projects.
He said, “We have sadly been conditioned to believe that such dependency is normal. More alarming is the fact that the African continent has the highest proportion of its population living in energy poverty with over 600 million Africans living without access to electricity and millions of others living without any access to modern energy, 70% of the oil we produce is exported. 70% of the gas is also exported.
“Africa must be allowed to use its affordable and readily available source of energy mainly oil and gas. Today’s developed countries used it to get to where they are today, we must be allowed to also use it to lift the living conditions of our people and get them out of poverty”.
Also speaking, Minister of State for Petroleum Resources, Heineken Lokpobiri, described the theme of the Roundtable as appropriate, saying “there is need for Africa to evolve from not just supplying raw materials, but developing capacity and capability to explore, produce and process its hydrocarbons resources into petroleum derivatives for its own use”.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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