APPO to inject $5bn into African Energy Bank

The African Petroleum Producers Organisation (APPO) has pledged a sum of $5bn for the establishment of the African Energy Bank (AEB), with the aim of advancing oil and gas projects across oil-producing member countries.

Dr Omar Ibrahim, the Secretary-General of APPO, announced this in collaboration with Afreximbank during a press conference held on the sidelines of the 24^th World Petroleum Congress (WPC) in Calgary, Canada, according to the News Agency of Nigeria.

Dr Ibrahim highlighted that the creation of the bank is intended to address the common funding difficulties encountered in oil and gas ventures.

Specifically, the AEB seeks to bridge the financial gap left by the Western financiers who have reduced their support for the industry, especially in Africa, he explained.

According to Dr Ibrahim, the bank will aid investors who believe that Africa must harness all available energy sources to combat widespread poverty on the continent. He further stated that the AEB will explore alternative energy options.

In response to the technology and expertise challenge, Dr Ibrahim revealed that a team from the APPO Secretariat conducted an assessment tour of research, development, innovation, and training institutions for training oil and gas technicians and middle-level personnel.

He also disclosed that for highly specialized sectors. regional centres of excellence will be established within the industry.

His words:

Dr Ibrahim noted that Nigeria is set to host the second Africa Roundtable on Local Content in October, with Angola expressing interest in hosting the event in the first quarter of 2024.

He stated that APPO aims to form partnerships with technologically advanced countries to achieve its objectives, and Canada’s oil and gas industry is considered a potential source of technological support.

Dr Ibrahim mentioned that APPO was currently working on a blueprint for the integration of the African continent through the establishment of cross-border energy infrastructure.

Regrettably, he said that most existing energy infrastructure on the continent was developed to serve external interests, with pipelines typically running from oil fields to seaports for export.

Dr Ibrahim stressed the importance of routing these pipelines to areas within Africa that require energy access. He revealed that APPO’s vision is to provide energy access to the people, not just for lighting homes but also for facilitating cottage industries and driving significant economic growth.

He mentioned that one of APPO’s initial tasks after its reform was to conduct a study on the future of the African oil and gas industry in the context of the global energy transition.

According to him, the study’s findings have significantly influenced APPO’s strategic direction, highlighting four imminent challenges: funding, technology and expertise, markets, and energy infrastructure. the findings of the study have continued to shape APPO’s strategy.