BUUMBA CHIMBULU writes
ENERGY production in Africa is expected to grow around 60 percent by 2014 following the current commodity’s high demand.
According to BP Africa vice president-exploration, Jasper Peijs, energy production in Africa was growing strongly on a daily basis.
Mr Peijs said at the just ended Africa Oil Week Conference in South Africa that the region provided opportunity for growth.
“Demand for energy in Africa is well ahead of the world average, populations are growing, economies are advancing, and the production of energy is growing even more strongly.
“Looking ahead the forecast for energy production in Africa is likely to grow by around 60 percent by 2040, almost twice the global rate,” he said.
Mr Peijs observed that the oil industry in Africa had become much more efficient, disciplined and more selective on invested capital since the price crash in 2014.
This, he said, presented an opportunity for companies to invest in Africa which also had competitive partnerships.
“We are all competing on a global scale but in Africa we have found several countries providing conditions for investments,” Mr Peijs said.
He explains that BP’s current activity and presence was right across the continent of Africa saying “we have a strong multi decade positions in Angola, Egypt and Algeria, where we are currently producing 400,000 barrels a day.”
Since 2016, he said, BP had delivered seven major projects and eight scheduled to come online by the end of the year.
Mr Peijis said these were in Algeria, Angola, and Egypt, and the next tranche of major projects had already been sanctioned with the final investment decisions expected soon.
He, however, said BP and other companies were ready to invest further in the region but were looking for investment opportunities that could offer them assurance in terms of fiscal and political stability.
Africa Exxon Mobil vice president, Pam Darwin, said: “there is no silver bullet, but one thing that is crucial going forwards is access to capital.
“Our industry must continue to strive to meet energy demand for reducing environmental impact. To do that we face competition for capital.
All our efforts take capital and the competition is greater than ever,” he said.