As part of the Secretariat’s Member Country visits, one of the latest Countries to join APPO, the Republic of Ghana, played host to a delegation from the APPO Secretariat in mid-September 2023. The delegation was headed by the Secretary-General, Dr. Omar Farouk Ibrahim, comprised the Managing Director of the Africa Energy Investment Corporation, AEICorp, Mr. Zakaria Dosso, the Head of the Secretary General’s Office, Mr. Bakary Traoré, Head of Energy Studies Unit, Mrs. Temilola O. George and Coordinator of Communication and Public Relations, Mr. Dany Danzoumbé Padiré.
The team was primarily in Ghana to onboard officials appointed by Member Country, the Republic of Ghana, to represent it on the various committees and bodies of the Organization. The bodies include the Ministerial Council, where Hon. Dr. Mathew Opoku Prempeh, Minister of Energy represents Ghana as Head of its Delegation. Other organs include the Executive Board of APPO where Hon. William Owuraku Aidoo sits as Executive Board Member for Ghana, the Forum of Chief Executive Officers of APPO National Oil and Gas Companies, where Ghana is represented by the two CEOs from the Ghana National Petroleum Corporation, Engr. Opoku Ahweneeh Danquah and the Ghana Gas Company, Dr. Ben K.D. Asante. Other Committees include the APPO Long Term Strategy Committee, where Ghana is represented by Mr. Kwame Ntow Amoah, the Forum of Legal Focal Officers, with Madam Nana Akua Agyei from the Ghana Petroleum Commission as representative and the Forum of Data Focal Officers with Mr. Kwadwo Kyeremateng also from the Petroleum Commission.
An Audience with the President:
During an audience with HE Nana Akuffo-Addo, President of the Republic, the Head of the APPO Delegation informed the President that negotiations on the establishment of the Africa Energy Bank have been completed and that the documents shall be presented to the next Session of the APPO Ministerial Meeting scheduled to hold in Cotonou on 2nd November 2023 for consideration and approval. The SG informed the President that immediately after the reform of APPA to APPO, the Council of Ministers had directed the Secretariat to conduct a major Study on the Future of the Oil and Gas Industry in Africa in light of the Global Energy Transition. He added that the findings of the study showed that the African oil and gas industry faces three imminent challenges from Energy Transition and that unless Africa is able to address these challenges within a short time, it will be forced to declare the over 125 billion barrels of proven crude oil reserves and over 650 trillion cubic feet of proven natural gas reserves as stranded assets. The identified challenges are funding, technology/expertise and markets/energy infrastructure.
To address these challenges, beginning with the funding challenge, APPO has gone into partnership with the Afreximbank to establish the Africa Energy Bank, whose main objective shall be to fund oil and gas projects on the continent. Member Countries of APPO, their National Oil and Gas Companies, their Sovereign Wealth Funds and other sovereign as well as investors are going to subscribe to the shares of the Bank. Afreximbank shall also subscribe. Other African countries as well NOCs outside of Africa may also subscribe. He emphasized that subscription to the share capital of the Bank shall be open to all investors that share the vision of the Bank.
In his remarks, HE Nana Akuffo Addo welcomed the delegation and stressed that it was high time Africa began to look within for solutions to its challenges. He also welcomed the level of cooperation and collaboration among APPO Member Countries and their institutions in the pursuit of common objectives. President Akuffo Addo recalled that Ghana had expressed interest in hosting the Headquarters of the Africa Energy Bank and directed that the APPO Delegation be taken to inspect a building that Ghana is prepared to give as Headquarters of the AEB.
Regarding the two other critical criteria to be met by aspiring countries before consideration to host the Headquarters, namely the ratification of the Charter of the AEB and the payment of the subscriptions the President directed the relevant officials to ensure that the requirements are met.
Further briefing the President on how APPO is addressing the other imminent challenges, Dr. Farouk said that APPO is working on identifying and designating regional centers of oil and gas excellence across the various regions of the continent. He noted that the financial requirements for establishing world class research, development, innovation and training institutions in the oil and gas industry is enormous and does not make sense for each APPO Member Country to say that it wants to establish one. We are looking at a situation where our Member Countries shall pool resources together to found or upgrade and designate some national institutions as regional centers of excellence in the various sectors of the industry. It is only through collective efforts that Africa can overcome the imminent challenges posed by Energy Transition to the African oil and gas industry, Dr. Farouk added.
Commenting on Ghana’s membership of APPO and the work of the Organization, the Minister of Energy and Head of Ghana’s delegation to APPO, Hon. Dr. Mathew Opoku Prempeh, noted that it took the Government of HE Nana Akuffo-Addo to formalize Ghana’s membership of APPO, saying that as Ghana increases its oil and gas finds and production, the country cannot afford not to be at the table where the fate of the industry in Africa is determined. He assured the delegation of Ghana’s continuous support for the Work Programs of the Secretariat.
The Minister of Finance, Hon. Ken Ofori Atta, commended the foresight of APPO Ministers in initiating negotiations for the establishment of the AEB, and assured the Delegation of a very conducive environment for hosting the Headquarters of the Africa Energy Bank in Accra.
Audiences with other stakeholders:
The Delegation visited the Ghana National Petroleum Corporation, GNPC, where the Managing Director, Engr OA Danquah,briefed the visiting team about the activities of the GNPC. Engr Danquah commended APPO for establishing the Forum of CEOs of APPO Member Countries NOCs. Recalling his experience at the 2nd Meeting of CEOs hosted by the NNPC of Nigeria, Engr Danquah said that it provided an excellent opportunity for experience sharing and peer review. He added that the feedback from the various meetings he had attended since Ghana became a full Member of APPO indicates that a better future lies ahead for the development of NOC activities in Africa. The GNPC team recalled the various Cooperation and Collaboration Agreements they have signed with some APPO NOCs like SNPC of Congo, Sonatrach of Algeria, and Sonangol of Angola. Engr Danquah noted that the greatest beneficiaries of the AEB shall be African NOCs.
The Team also visited the Ghana Gas Company, where the CEO, Dr. Ben Asante Senior management briefed the APPO Delegation on the activities of Ghana Gas. The SG noted that Ghana is one three APPO Member Countries that have two National Petroleum Companies: one for Oil and the other for Gas. The other two countries are Egypt and Equatorial Guinea.
At the Petroleum Commission of Ghana, the CEO Mr. Egbert Faibille Jnr was on hand to receive the APPO Delegation. In his remarks, the SG emphasized the critical role of regulatory institutions to the success of the industry. He argued that the operators can only operate in the environment created by the regulator. Where the environment is conducive for productivity, the industry shall thrive. On the other hand, where the regulator creates obstacles to productivity, the industry suffers.
In his response, Mr. Faibille agreed that the regulatory institution is the backbone of the industry. He added that effective legal and regulatory frameworks sustain the industry. He urged APPO to consider creating a forum for regulatory institutions of Member Countries, noting that it will provide an excellent opportunity for experience sharing as well as peer review among the CEOs.
Commissioning the Jubilee South-East oil field in Takoradi:
The Team also went to Takoradi, in the Western Region of Ghana for the formal commissioning of the Jubilee South East oil field, which is expected to add 30,000 barrels per day to the existing 70,000 barrels per day from the Jubilee fields. The Jubilee is a joint project between GNPC, Tullow Oil, Cosmos Energy, Jubilee Oil Company, and PetroSA.
