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East Africa’s Energy Future Shines Bright As Investors Watch

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East Africa’s Energy Future Shines Bright As Investors Watch

The eyes of international oil and gas investors are becoming increasingly fixed on Africa as an area of development, and on the East Africa region in particular – with good reason.

“It’s no secret that the East African oil and gas sector has recently benefited from substantial FDI,” says Paul Sinclair, Vice President of Energy at Africa Oil Week (AOW). “These regional investments have reignited global appetite for East Africa, and this is reflected in the rising numbers of delegates applying to attend AOW to meet and do business with East African stakeholders.”I

Indeed a total of eight East African countries – Kenya, Uganda, Ethiopia, Somalia, Rwanda, Djibouti, Eritrea and Burundi – will all have high-level ministerial and NOC representation at AOW in November 2021. This incredible cohort demonstrates the region’s support for AOW’s temporary move to Dubai as a safety precaution. AOW has already committed to being back home in Cape Town, South Africa, from 2022.

The list of regional energy authorities and NOCs attending the event is extensive, and includes AREEN, SIHD, EPRA, EWURA and UNOC. The following ministers have also confirmed their attendance:

· Hon. Yonis Ali Guedi: Minister of Energy and Natural Resources, Djibouti

· Hon. Dr Koang Tutlam: State Minister of Petroleum and Natural Gas, Ethiopia

· Hon. Charles Keter: Cabinet Secretary for Energy, Kenya

· Hon. John Munyes: Cabinet Secretary for Petroleum and Mining, Kenya

· Hon. Francis Gatare: CEO of the Rwanda Mines, Petroleum & Gas Board

· Hon. Abdirashid Mohamed Ahmed: Minister of Petroleum and Mineral Resources, Somalia

· Hon. Ruth Nankabirwa: Minister of Energy and Mineral Development, Uganda

READ ALSO: North African Oil, Gas Producers Mull Fresh Strategies On Energy, Sign Up For Africa Oil Week

“CEOs and board-level executives are also participating from TotalEnergies, PGS, TGS, Tullow, Africa Oil Corp, Equinor, Eni and more,” says Chris Hall, AOW’s Group Event Director. “Their presence makes it clear why important figures such as Dr Estêvão Pale, Chairman and CEO of ENH, are attending AOW to promote oil and gas projects in Mozambique.”

Much of this interest has been spurred by the East African Community’s development of a strategy to facilitate the efficient and reliable delivery of oil products in the region. The strategy recommends developing a new refinery in Uganda; accelerating a planned upgrade of the Mombasa refinery in Kenya; and improving handling, transportation, storage and distribution facilities across the region.

Investors are also observing important discoveries made in Uganda, Kenya and Tanzania, which are expected to enhance East Africa’s potential to achieve energy self-sufficiency. Feasibility studies are under way for the construction of new crude oil pipelines in Uganda, for example, and contractors are being mobilised to extend existing oil product pipelines from Kenya to Uganda and Rwanda.

According to data and analytics firm GlobalData, the recent green light for the East African Oil Pipeline means that Uganda is set to produce its first oil as early as 2025, with production expected to jump in the next five years to 230,000 barrels per day, from zero in 2021.

GlobalData oil and gas analyst Conor Ward says: “The Lake Albert oil development in Uganda will be one of the largest oil developments we have seen in Africa in the last 20 years, expecting to recover almost 1.5 billion barrels of oil. The Tilenga and Kingfisher fields (part of the Lake Albert development) will bring significant value to the government of Uganda, and the two fields alone could generate up to US$8 billion in fiscal revenues.”

READ ALSO: Vast Bank Emerges First U.S. Bank To Offer Crypto Services

These projects will contribute to planned expansions in other East Africa Community partner states, as well as other countries that rely on the region for petroleum imports.

Although East African countries are reliant on oil for their energy needs, the region is also beginning to look towards renewable energy as a viable path. Kenya, for example, is among five countries driving the current African solar energy market. Hydro and wind have also been prioritised.

To maximise these opportunities – as well as those still on the horizon – East African nations must harmonise their respective regulations to make sure the region is seen for the scalable investment destination that it is. Once this is done, the region’s potential will open up even more. All of these issues and more will undoubtedly be discussed at AOW.

 

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Obasanjo Lashes Out At Buhari Over Borrowing

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Obasanjo Lashes Out At Buhari Over Borrowing

Erstwhile President Olusegun Obasanjo has condemned the Federal Government’s plan to take fresh loans amid criticism by Nigerians over incessant borrowing by the current administration.

While speaking to Channels Television in South Africa, Obasanjo described as criminal, the alleged move to accumulate debts for the next generation to pay.

Obasanjo expressed worries that if the existing debts remain unserviced or unpaid by the President Muhammadu Buhari’s administration, it might become a huge problem for successive governments.

The president, a few days ago, requested the approval of the National Assembly to borrow the fresh sums of $4,054,476,863 and €710 million.

READ ALSO: Buhari Orders Incorporation Of NNPC Limited, Names Board Members

Reacting, the former president who believes that borrowing is not a problem, however, stated that the challenge would be the utilization of the borrowed fund and the plan or capacity to pay back.

He said: “But if you are borrowing and accumulating debts for the next generation and the next generation after them, it is criminal. What are you borrowing for?

“If we are borrowing for recurrent expenditure, it is the height of folly. If we are borrowing for development that can pay for itself, that is understandable. Then the payment, how long will it take to pay itself?”

 

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Buhari Orders Incorporation Of NNPC Limited, Names Board Members

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Buhari Orders Incorporation Of NNPC Limited, Names Board Members

President Muhammadu Buhari has ordered the incorporation of the Nigerian National Petroleum Company Limited.

In a statement on Sunday by the Special Adviser to the President (Media and Publicity), Femi Adesina, he said that the president gave the order in his capacity as the Minister of Petroleum.

“This is in consonance with Section 53(1) of the Petroleum Industry Act 2021, which requires the Minister of Petroleum Resources to cause for the incorporation of the NNPC Limited within six months of commencement of the Act in consultation with the Minister of Finance on the nominal shares of the Company,” the statement said.

The statement said the Group Managing Director of the NNPC, Mr Mele Kolo Kyari, had been directed to take necessary steps to ensure that the incorporation of the NNPC Limited is consistent with the provisions of the PIA 2021.

READ ALSO: How Bureaux De Change Finance Terrorism – CBN

President Buhari has also approved the appointment of the Board and Management of the NNPC Limited, with effect from the date of incorporation of the company.

The President named Senator Ifeanyi Ararume aa Chairman of the Board while Mele Kolo Kyari and Umar I. Ajiya were appointed as Chief Executive Officer, and Chief Financial Officer, respectively.

Other Board Members are; Dr Tajudeen Umar (North East), Mrs Lami O. Ahmed (North Central), Mallam Mohammed Lawal (North West), Senator Margaret Chuba Okadigbo (South East), Barrister Constance Harry Marshal (South South), and Chief Pius Akinyelure (South West).

 

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How Bureaux De Change Finance Terrorism – CBN

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How Bureaux De Change Finance Terrorism - CBN

The Central Bank of Nigeria ( CBN) has moved to shut down the operations of Aboki FX, a website providing currency exchange information, which the bank described as an illegal and criminal platform.

CBN Governor Godwin Emefiele who disclosed this while fielding questions after the Monetary Policy Committee’s two-day meeting in Abuja on Friday, noted that the bank also plans to prosecute the owner of the platform, Olusegun Oniwinde.

He said: “I have given instructions to our experts to go after his website and let it be clear that we will go after him because we can’t allow this to continue.”

According to Emefiele, the CBN doesn’t recognize any forex market window besides the Investors and Exporters window.

Naira-dollar exchange rate has soared on the platform in the last couple of days. The platform currently recommends that bureau de change operators buy dollar at N560 and sell at N570.

On ban of forex sales to bureau de change operators, Emefiele said that the bank would not go back on its previous stance.

READ ALSO: CBN Bans Sale Of Dollars To Bureau De Change Operators

According to him, these BDC operators sell foreign exchange to criminals who import weapons to harm Nigerians and promote different forms of terrorism.

The CBN governor said: “It truly beats my imagination that Nigerians continued with this type of practice (selling dollars to BDC) that tended to promote illegal activities who are involved in graft and corrupt practices.

“We won’t support the corrupt tendencies of those who illegally buy dollars from our forex market, carry them in aircraft, buy arms and ammunition and bring them back into the country and conduct crimes. Whether it is Boko Haram, banditry and other nefarious activities.”

“Why will CBN give people our forex to go and buy arms? And that is what people want us to continue to do. We cannot do that. What we are saying is that if you have any legitimate need for forex, take it to the bank and they will sell you FOREX.”

 

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