- The supply disruptions caused by Russia’s invasion of Ukraine have led to a sharp rise in crude oil prices, crossing $100 per barrel for the first time since 2014.
- This has opened opportunities for economies of Africa
- Experts have urged African countries to expedite exploration and adopt modern technology to maximize production yields to increase oil and gas reserves.
The supply disruptions caused by Russia’s invasion of Ukraine have led to a sharp rise in crude oil prices, crossing $100 per barrel for the first time since 2014. This opens opportunities for economies of Africa to maximize its oil and gas assets. Experts have urged African countries to expedite exploration and adopt modern technology to maximize production yields to increase oil and gas reserves. Experts have pointed out that a lack of prior investments in the energy sector could limit this opportunity for African countries. During the last 10 years, more so in the last five years, Africa’s hydrocarbon sector has not seen any significant investment,
During the recently held International Energy Summit in the capital of Nigeria, Abuja Nigeria and Equatorial Guinea have signed an agreement by which Nigeria will supply natural gas to Equatorial Guinea. The gas deal signed by Nigeria’s minister of state for petroleum, Timipre Sylva, and his Guinean counterpart, Gabriel Lima, highlights the potential of Africa’s untapped gas market, particularly in the context of the high demand and supply disruptions caused by Russia- Ukraine war.
African energy experts observed that the agreement is a timely development and urged quick implementation of the gas deal. According to the deal, Nigeria will supply gas to Guinea’s processing site in Punta Europa. Minister Sylva stated that the deal would allow Nigeria’s unused gas to access the global market within two years.
Nigeria is one among nine countries with the highest gas reserves globally. But the market remains largely untapped. Experts view the deal as a game changer.
Read More
https://trendsnafrica.com/oil-prices-at-record-level-north-sea-brent-at-us-113/
https://trendsnafrica.com/nigerias-royal-dutch-shells-profit-at-us-201-billion/
