Peter Uzoho
The Sub-Saharan Africa (SSA) region remains an excellent hub for future upstream growth with opportunities and a ready market for diversification into other allied areas such as refining, Liquefied Natural Gas (LNG) and power.
This was the view of the Chairman, Seplat Energy Plc, Dr. ABC Orjiako, at the annual Sub-Saharan Africa Oil/Gas Conference held in Houston Texas.
A statement quoted the Seplat Chairman to have also urged Africans and foreign investors alike to harness the growth potential of African developing countries to boost development and global growth.
Orjiako, the keynote speaker at the event with the theme, “The Future of Upstream, Advancing Digitization and Gas Development Options in Sub-Saharan Africa,” said challenges of SSA present a significant opportunity for those seeking returns.
The chairman of Seplat held the believe that energy corporations must show responsibility in neutralising their respective emission footprints and sign up for climate change policies that will protect the environment, while SSA policy makers should embrace programmes that will strike the needed balance.
“The fastest-growing economies in the world lie in Africa/developing nations and considering Africa’s electricity/power deficit,” he added.
“As the world moves toward energy transition with Climate Change/ESG Advocacy/Policy Changes dominating the energy discussion, Gas will continue to play an increasingly important role. Gas will play a strategic role as a transition fuel, boosting economic growth and development by providing needed energy access.
“While we face headwinds of energy transition and the climate change narrative, we must see these as an opportunity to evolve and be resilient. Oil and Gas will remain part of the energy mix, and as such, we must be creative and environmentally responsible to survive and thrive”, Orjiako told the audience at the conference in Houston Texas.
The African Development Bank (AfDB) Group estimates that over 640 million Africans living in sub–Saharan Africa have no access to energy. This estimate means that the energy access rate for African countries is just under 40percent which is the lowest rate globally.
Africa has 13 per cent of the world’s population, but 48 per cent of the share of the global population without access to electricity.
On the positive side, Africa is rich in natural resources that can change the narrative on energy access in the continent. Sub-Saharan Africa has 63 billion barrels and 222 trillion cubic feet of proved oil and natural gas reserves, respectively. The energy potential in renewables is quite significant yet remains under-utilised mainly.
Hydropower accounts for around a fifth of current capacity, but less than 10 per cent of its potential is being utilised. Similarly, the technical potential of solar, biomass, wind and geothermal energy is significant.
“While we see a substantial push to cleaner energy and focus on climate change, fossil fuels will remain an essential part of the overall energy mix, especially for emerging markets and developing countries. Fossil fuels (especially cleaner natural Gas) remain a crucial game-changer for Africa regarding energy access”, Orjiako further noted.
“We can draw a direct correlation between energy access and GDP growth where countries with low energy access have low GDP growth rates. Only seven countries in Africa – Cameroon, Côte d’Ivoire, Gabon, Ghana, Namibia, Senegal, and South Africa have electricity access rates exceeding 50 percent. The rest of the region has an average grid access rate of just 20percent, ”Seplat chairman noted.
He added, “Seplat Energy Plc is on course with its strategic vision to “provide cleaner Energy Solutions to drive sustainable growth. Seplat is prioritizing Environmental, Social and corporate Governance (ESG) paradigms through its consistent midstream business development which is at the centre of Energy Transition Commitment. Primarily addressing climate change knowing that commercial success will eventually follow drives us.
As a highly responsible and accountable corporate citizen, he said Seplat is demonstrating a commitment to contributing towards the elimination or reduction of the incidence of gas flaring to the barest minimum in its areas of operation by making strategic investments and partnerships in gas infrastructure development.
“We remain aligned to explore beneficial Renewable options which hold enormous promise – Our Energy, The Seplat Way”, Orjiako told the teeming audience, adding that the theme of the conference is the most appropriate as the world grapples with the increasing risk of Climate change caused by CO2/GHG emissions.
“This new way of thinking has led us to our name change from Seplat Petroleum Development Company Plc to Seplat Energy Plc. Our unique business direction reflects our renewed focus on the entire energy value chain while incorporating cleaner and more sustainable forms of energy to power Nigeria / Africa’s present and future demand,” he added.
