African Oil And Gas Sector Poised For Growth Despite Worldwide Difficulties-AEC VP Ayukegba
April 17, 2024
By Samuel Ouma
Senior Vice President of the African Energy Chamber Verner Ayukegba is optimistic that the African oil and gas industry will grow in 2024
Senior Vice President of the African Energy Chamber Verner Ayukegba is optimistic that the African oil and gas industry will grow in 2024 amid global challenges facing the sector.
In an interview with S&P Global Commodity Insights, Ayukegba expressed confidence about Africa's upstream sector, pointing out critical areas of potential growth and addressing financing gaps.
Ayukegba stated that while financing challenges are not unique to Africa, they pose significant barriers throughout the industry. He emphasized the positive developments in Namibia and Angola.
“If we look at Egypt, for instance, there has been notable activity at Egyptian drilling sites in recent months, suggesting a continuation of this trend. Similarly, in Libya, where geopolitical tensions have been easing, we anticipate a substantial uptick in production. Overall, the outlook is mixed, but I anticipate a greater increase compared to last year,” said Ayukegba.
On financing, Ayukegba said the sector is set to benefit from various sources, including African governments, private equity firms, and initiatives such as the African Energy Bank.
He emphasized the importance of African nations working together to leverage resources and attract investment, mainly as international oil companies (IOCs) sell regional assets.
Regarding African influence within the Organization of the Petroleum Exporting Countries (OPEC), the vice President noted that the continent enjoys influence despite the challenges bedevilling the organization.
He underscored the significance of African nations meeting production quotas and increasing their output to enhance their influence within OPEC.
“I believe that OPEC is important to continue ensuring market stability, which everybody literally profits from. However, the Africans who are in there have to as well do their own homework in terms of being able to ensure that production continues to meet and to be able to increase with respect to what it is that is going to allow them to sift that kind of influence,” stated Ayukegba.
Ayukegba further emphasized the importance of African governments prioritizing production growth to establish a strong position at the global energy table.
