Page 12 - AfrOil Week 10 2022

AfrOil POLICY AfrOil

“With many international banks reducing impact of COVID-19 has further crippled the
investments for oil and gas assets in the region, sector, with licensing rounds in Angola, Equa-
raising funds to acquire or enhance production torial Guinea, Ghana, Gabon and Congo put on
at these portfolios majors are exiting will be a hold.
challenge,” said NJ Ayuk, the AEC’s executive However, 2022 is expected to be a
chairman.“We encourage more partnerships game-changing year for exploration, with oil
between African governments, local exploration majors, independent companies and local firms
and production firms with African and Asian drilling nine high-impact wells in Kenya and
banks who are still interested in the role Africa’s Namibia. Next year, 10 more high impact wells
oil and gas sector can play to ensure energy secu- will be drilled, with most of them located in
rity and to improve the economy.” unexplored basins in East and West Africa.
The licensing rounds delayed because of the
Exploration set to rise pandemic should be finalised and announced
In related news, the AEC also said in its report in 2022. Egypt recently closed a bidding round
that it anticipated a rise in oil and gas explora- and awarded eight exploration blocks to Eni,
tion this year, in a statement based on its recently BP, Apex International, Energean Egypt, United
published ‘State of African Energy’ outlook for Energy, Sipetrol and INA.
the first quarter of 2022. “We anticipate an increase in exploration
According to the chamber, diminishing activities as the year progresses and as produc-
yields from legacy oil and gas fields has led to a ers realise the potential of the region’s oil and gas
decline in hydrocarbon production and created in meeting global energy demand,” said Leoncio
a need to increase exploration activities. Amada Nze, Executive President of the African
Boosting exploration will become critical for Energy Chamber for the CEMAC region.
Africa in order to address energy poverty and “Current trends within the oil and gas
establish itself as a global energy hub, said the industry could lead to the establishment of
report. new centres of geopolitical influence. [This is]
Over the course of 2020-21, discovered vol- a development that could see massive amounts
umes of oil and gas were the lowest in 10 years of investments for exploration heading towards
owing to underinvestment in exploration. The Africa,” Nze added. ™

POLICY
Liberian government warns against panic

buying of fuel after surprise price increase

LIBERIA LIBERIA’S government has responded to
reports of motor fuel hoarding following a price
hike by urging consumers not to engage in panic
buying.
In a statement dated March 5, the govern-
ment warned against the hoarding of fuel, not-
ing that this practice was illegal under Liberian
law. It also declared that the country’s petro-
leum product inventories were sufficient to
cover domestic demand for at least the next few
months.
It also reported that the relevant state agen-
cies, including but not limited to the Ministry of
Commerce and Industry and Liberia Petroleum
Refining Co. (LPRC), were working with fuel
importers to ensure that deliveries of petrol and
diesel would continue despite recent increases in Monrovia says the country has sufficient fuel supplies in storage (Image: Conex)
world crude oil prices.
These talks will ensure that local filling sta- Ukraine, it said.
tions continue to make petrol and diesel avail- “The public is therefore assured that gaso-
able for sale while Liberian authorities hammer line and fuel will be available at the major fill-
out a new pricing structure that reflects new ing stations as the importers lift their products
bullish developments such as the crisis in throughout the weekend,” the statement said.

P12 www. NEWSBASE .com Week 10 09•March•2022