Opening address of the President, Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, Major-General Ibrahim Badamasi Babangida, CFR, FSS, MNI, at the Inaugural Meeting of African Petroleum Producers’ Association (APPA)
Sheraton Hotel, Lagos, January 26th, 1987
It is an honour and privilege to meet all of you who are so dedicated towards protecting and promoting the interests of Africa in the area of petroleum. This is a very significant occasion, because it is the first time that oil producing countries of Africa are meeting to form an association which symbolizes our common interest and aspiration. On behalf of the entire people of Nigeria, I warmly welcome you to Lagos. I am particularly happy to be part of such an epoch-marking event since this Association underlines the need for greater cooperation among African nations, especially so, in petroleum matters. I am fully aware that a number of important initiatives have been undertaken by countries here present to ensure that this inauguration becomes a reality. I am indeed aware that such a gathering cannot even hold without adequate prior consultations and carefully worked out plans. I wish to seize this opportunity to thank those individuals and organizations that have worked so hard to ensure the formation of the African Petroleum Producers’ Association (APPA). In particular, I wish to praise the efforts of the Technical Committees which have been responsible for the Draft Statute of the Association.
At this point, I wish to remind you of the objectives of your Association which are:
- Promotion of cooperation among member countries in hydrocarbon exploration, productions, refining, petrochemicals, manpower development, acquisition and adaptation of technology and legal matters;
- Promotion of Technical assistance among member countries in the areas in which individual members have acquired valuable experience;
- Promoting the evaluation of marketing policies and strategies of member countries through exchange of information with the aim of safeguarding their depletable resources and realizing equitable revenue from experts;
- Increasing the understanding of energy situation and policies in member countries through co-operation with a view to meeting domestic energy needs; and
- Studying ways and means of providing assistance to net oil importing African countries to meet their energy requirements.
While all these areas deserve your attention, I would like to emphasize the importance of cooperation in the field of petroleum exploration. This is essential in order to expand our reserve base as well as stretch the life of our oil reserves. You are all aware of the current high production rates which has been a consequence of the rapid decline in oil prices. I am of the view that a cooperation arrangement in oil exploitation could belie the commonly held opinion that no major oil find is possible in the immediate future.
There is also an urgent need for a comprehensive exchange of information and technical expertise going member countries. Such an exchange would not only substantially reduce the average funding costs but it would also enable African nations to penetrate areas which presently appear hostile including offshore. I urge you therefore to pool your scarce manpower and lean financial resources together in order to provide a long term solution to the energy problems of our continent.
The essence of cooperation is to learn from the experience of others to the mutual benefits of all. Some of our countries have already laid a sound basis for petroleum diversification which is worthy of emulation by others. Furthermore, we have come to accept the need to reduce excessive dependence on crude oil exports while at the same time expand the roles of gas and petroleum products as foreign exchange earners. Thus, I would like to appeal to those countries that are about to embark on petrochemicals industry to learn from the experience of others in order to realize maximum returns from their crude oil resources as well as encourage domestic industrial expansion.
The role of information sharing and pooling of facilities should not be limited to operational areas only rather, it should extend to the marketing of crude and petroleum products. While it is not necessary that a uniform approach be adopted at all times, it is essential for every producer to share the perspectives of others about market situation and trends, so that, actions and reactions to the market would appear to be mutually consistent in order to safeguard our overall interests. Furthermore a broad understanding of energy policies in member countries should enable members to locate areas of need as well as area in which they can render assistance within the framework of mutual cooperation. Where information is adequately available about energy production and consumption trends, the cost of energy import is likely to be considerably reduced. Your Association must always be in a position to study, review and effect modalities for energy assistance and distribution among member countries.
As you deliberate on major aspects of petroleum matters, you may need to touch upon mechanism for translating your noble objectives into reality. Permit me to suggest the need for appropriate institutions to bring about better co-operation. I believe that institutions such as Joint Exploration Enterprises and Special Exploration Funds mays adequately serve our present circumstances. Africa is grossly under-explored and our fortunes cannot be left entirely in the hands of multinationals. With such institutions, it should be possible to collate all essential data, reduce cost of exploration contracts as well as streamline petroleum legislations among our countries.
Finally, the inauguration of this Association is to in line with what has happened in other Regions. For example, there is the OAPEC in the Middle East, the SCOPE in South East Asia and indeed, OLADE in Latin America. These are fora in which oil producing States meet, as regional bodies, to co-operate on all matters relating to petroleum. Africa has been rather late in establishing this forum. However, having inaugurated this Association, I believe the task to be fulfilled is quite clear: you must ensure that APPA brings maximum benefits to our continent. The realization of this goal will depend on your level of enthusiasm and commitment. On our part, I pledge that Nigeria will promise the necessary support to make APPA an effective organization. I wish you a successful inaugural meeting.
Thank you.