OMAR Farouk Ibrahim, secretary general of the African Petroleum Producers’ Organization (APPO) is urging its 18 members, which includes South Africa, to contribute their $83-million subscription fees to facilitate the establishment of the $5-billion Africa Energy Bank (AEB).
APPO in collaboration with the African Export-Import Bank, established the AEB to provide private sector financing for oil, gas, and energy development projects across Africa.
The AEB aims to partner with over 700 African banks to create a profitable pathway for the continent’s energy sector.
The new bank is set to be launched in Nigeria in September 2024. Ibrahim will also be a key speaker at the MSGBC Oil, Gas & Power 2024 conference and exhibition in Dakar, which is scheduled for December 3-4.
At the MSGBC Oil, Gas & Power 2024 event, Ibrahim will discuss how the AEB can ensure high returns on investment while boosting economic growth through increased energy access in West Africa.
Traditionally, African energy projects rely on development finance institutions and multilateral development banks, which have recently restricted fossil fuel financing due to climate change concerns.
The AEB’s primary objective is to fill the imminent void that the withdrawal of funding for oil and gas projects in Africa by the traditional financiers could cause to the industry. With over 125-billion barrels of proven crude oil reserves, over 600-trillion cubic feet of proven gas reserves.
While the AEB’s focus shall be funding oil and gas projects, it shall not close its doors to renewable energy projects.
By channeling pension funds into African projects rather than relying on international banks, the AEB can leverage the region’s natural resources, including oil, gas, and green hydrogen projects.
Ibrahim will share his expertise on the latest energy advancements in the region and strategies to advance ongoing projects. In July 2024, Woodside’s Sangomar project achieved its first oil production in Senegal, with plans to increase output to 100,000 barrels per day. On the gas front, Senegal and Mauritania’s Grande Tortue Ahmeyim project, developed by bp and Kosmos Energy, is expected to produce its first gas by the end of 2024. Looking ahead to 2035, Mauritania aims to produce 12.5-million tons of green hydrogen, supported by large-scale projects such as CWP’s 35 MW Aman and Chariot and TotalEnergies’ 10 MW Project Nour.
“APPO has always been at the forefront of championing energy initiatives in Africa by ensuring access to necessary financing and providing its business expertise. Ibrahim’s presence reaffirms the organisation’s commitment to making the MSGBC region the new frontier for oil and gas developments,” said Sandra Jeque, event and project director at Energy Capital & Power.
