Johannesburg — The African Energy Chamber urges the Organization of the Petroleum Exporting Countries and other key global oil producers, including Russia, to continue with the historic production cuts at the December 6, 2018 OPEC meeting to stabilize the oil price.
Oil prices have dropped by about 20 percent in November, and the month is likely to record the biggest one-month decline in oil prices since the crash of 2014. This is not good for producers in Africa and African economies.
The Chamber urges African producing nations, both those that are OPEC members and Non-OPEC members to speak up with one voice in support of OPEC’s policy on stabilizing the market.
“This new drop in oil prices clearly shows the world that the global supply cut has not been eliminated. The future of the petroleum sector — and indeed the future of global energy security — depends on a continuation of the OPEC-led production cuts,” said NJ Ayuk, chairman of the African Energy Chamber.”
Oil producing nations, many of which are within Africa, are at particular risk of economic hardship if the supply glut continues and prices spiral. Such countries include Nigeria and Angola, two of Sub-Saharan Africa’s largest economies, as well as Equatorial Guinea, Cameroon, Congo, Gabon, South Sudan, Algeria, Libya and Ghana. Other key countries that are investing in upcoming mega projects, like Mozambique, Uganda and Senegal, could face project delays in the face of low oil prices.
The historic Declaration of Cooperation, moderated by OPEC’s Secretary General and Africa’s own son, H.E. Mohammed Sanusi Barkindo which was signed in 2016 by OPEC countries and 10 non-OPEC countries and saw several extensions, is set to expire at the end of 2018.
“The historic Declaration of Cooperation is largely credited with rescuing the oil industry from collapse, and returning economic security to oil-dependent nations, many of which are in Africa. Abandoning this extraordinary deal now would only see production increase and the supply glut worsen — effectively making any progress achieved in the last two years null and void,” stated Ayuk.
“When the oil market is in crisis, the path to dignity and prosperity is closed off to many African families. It leaves many Africans, particularly those without advanced degrees on their own to chart their own course where clear and attainable paths to a meaningful and prosperous life once existed.” Ayuk continued

The opinion of many Africans on OPEC and the energy sector has taken a measurable, positive jump as people acknowledge the strong connection between the oil and gas sector, the African economies and the African entrepreneurial dream.

The Africa Energy Chamber stands by OPEC and Consumers and we will continue work with our members to educate the public of the need for lasting stability in the oil industry.

It is our firm belief that the 2016 Declaration of Cooperation rescued the oil and gas industry and many African economies from imminent collapse. This should be continued next week in Vienna Austria.


 

The AEC welcomes OPEC’s agreement and recognizes the strong participation of Africans states in the OPEC’s 7th International Seminar and the 4th OPEC and non-OPEC Ministerial Meeting

Vienna – June 23rd, 2018: The AEC welcomes the agreement of the Organization of Oil Exporting Countries (OPEC) by which its members, and the members of the Declaration of Cooperation (DOC), will strive to adhere to the overall production adjustment conformity level agreed upon in November 2016, targeting a conformity level of 100% as of July 1st, 2018. As of May 2018, conformity levels were at 152% for OPEC member countries and 147% for the members of the DOC.

The AEC acknowledges the role played by OPEC in bringing back stability to global commodity prices and rebalancing the market, and recognizes that such efforts and engagement by OPEC have been central to improving market conditions and investment sentiment across Africa’s hydrocarbons value chain.

Finally, the AEC also recognizes the strong participation of African states in OPEC’s 7th International Seminar and the 4th OPEC and non-OPEC Ministerial Meeting, which saw the attendance of ministerial delegations and representatives from Nigeria, Algeria, Egypt, Angola, Gabon, Equatorial Guinea, South Africa, Republic of Congo, Uganda, Sudan and Chad.

 

VIENNA – The African Energy Chamber (AEC) would like to congratulate the Republic of Congo on becoming Africa’s 7th country to join the Organisation of Petroleum Exporting Countries (OPEC).

Congo is one of Africa’s mature oil producers, with production first coming online in the 1960s and reserves totaling about three billion barrels. It is also one of very few countries in Africa bucking a trend of declining oil production, with oil output increasing by 25% to reach 350,000 barrels of oil per day in 2018. This makes Congo the third biggest oil producer in sub-Saharan Africa after Nigeria and Angola. New developments in progress are expected to further boost production to 400,000 bopd by 2020.

In addition to oil, Congo also offers tremendous gas valorization and monetization opportunities in areas such as gas-to-power, urea, gas-to-liquids and methanol, with 300 to 400 billion standard cubic meters of gas reserves for the coming 20 years.

The AEC hopes that Congo’s entry into OPEC will allow the central African nation to develop stronger bilateral relations with other hydrocarbons producing nations, and facilitate the flow of investments into Congo as the country implements its new Hydrocarbons Code and is preparing a Gas Code to structure its gas value chain.

 

 The African Energy Chamber (AEC), which has been advocating for upstream producers, service providers, downstream suppliers, and governmental bodies throughout the continent, has been formally established.

Backed by executives from across the continents oil and gas, power, and renewables industries, the AEC is the Continent’s voice for the ongoing change and progression in the African energy industry. From the robust regulatory reforms of Angola and the interest of Congo-Brazzaville in OPEC, to the impressive local content strides taken by South Sudan, the AEC firmly stands with the re-emergence of Africa’s energy industry.

The AEC initiative comes as the advancements in Africa’s energy sector, and its revamped development agenda, are at the center of international investors’ interests. Africa is continuously proving itself to be capable of developing large scale progressive energy initiatives, such as Equatorial Guinea’s recent plan to construct a natural gas mega-hub. Over the past 12 months alone, Mozambique saw a final investment decision on a $7bn LNG development program, Cameroon became the first African country to bring a floating LNG platform on stream, Uganda gave the green light to lay the world’s longest electrically-heated crude oil pipeline, Nigeria is taking significant strides to rebalance its crude refining capabilities, and Burkina Faso commissioned one of the world’s largest hybrid fuel/solar power plant.

“Africa is a fast-growing energy powerhouse,” NJ Ayuk, CEO of the Centurion Law Group, one of the AEC founding members, said. “New oil frontiers are opening up in West Africa, investment in gas infrastructure is picking up in West and East Africa, while landmark reforms are expecting to transform the way natural resources are being exploited in markets such as Nigeria and South Africa. There truly has never been a better time to do business in Africa.”

In promoting such opportunities within a pan- and pro-Africa institution, the AEC advocates for the growth and expansion of indigenous African companies across the continent. From personnel training to community partnerships and relationship building, the AEC is a unique home for African companies to grow and take the lead in the development of their continent. The Energy Chamber equally focuses on promoting sensible local content, pushing for EITI, mutually beneficial joint ventures, transfer of technologies, and advocating for an enabling environment for business growth.

As African nations revise their regulatory frameworks, such as the recent hydrocarbons regulations in Nigeria, Gabon, and Congo, the AEC works to provide access to a unique pool of policy makers and seasoned experts to engage into a meaningful dialogue with industry stakeholders to shape policy. The AEC’s also services international companies seeking to invest or expand in Africa by providing them with inside-track information and contacts to ensure successful partnerships and market penetration and expansion strategies.