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NIAMEY, REPUBLIC OF NIGER.
THURSDAY 19th NOVEMBER 2020
Excellency Mr. BRIGI RAFINI, Prime Minister and Head of Government of the Republic of Niger;
Your Excellencies Ministers and Heads of Delegations of APPO Member Countries participating in the 39th Session of the Council of Ministers in Niamey, as well as those participating online from our Member Countries’ capitals;
Your Excellencies the Ambassadors of APPO Member Countries accredited to the Republic of Niger;
Members of the Executive Board of APPO;
Your Excellency, Secretary General of APPO;
Mr. Director General of the African Energy Investment Corporation, AEICORP;
Dear General Managers of the National Oil Companies present here;
Distinguished Delegates, Ladies and Gentlemen;
I would like to join H.E. BRIGI RAFINI, Prime Minister, in welcoming our distinguished guests to Niamey for the 39th Session of the APPO Ministerial Council, as well as the 6th Meeting of the Executive Board which took place last Tuesday:
I would also like to welcome the Ministers and other delegates who were unable to join us in Niamey for unavoidable reasons, but who are participating in this Meeting by videoconference.
In addition, I would like to welcome to the Council of Ministers of APPO, Messrs. Abdelmajid ATAR and Oumar TORBO DJARMA, respectively the new Ministers of Energy of People’s Republic of Algeria and of Petroleum and Mines of Chad, who are attending, for the first time, the APPO Council of Ministers Session, and to extend our best wishes to their predecessors.
I would also like to extend our congratulations to His Excellency Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of the Republic of Equatorial Guinea for his brilliant and well-deserved reappointment after the dissolution of the Government of his country a few months ago.
The reappointment of H.E. Gabriel Lima is proof of the recognition of his contribution to the transformation of the Energy and Industry Sector in his beloved country, Equatorial Guinea: On behalf of all of us, I wish him a very successful mandate and many more contributions to his country and to our Organization:
Your Excellency Prime Minister, Distinguished Ministers,
So much has changed since our Ordinary Session in Abuja in December 2019. None of us ever imagined what would happen to the oil market in just a few months after that Session. Within three months, oil prices began to fall to levels never seen before. The foundations of our national economies were shaken to their roots and many of our Member Countries had to postpone important projects they had planned.
However, the rapprochement of OPEC and its partners in the Declaration of Cooperation in the second quarter of 2020 helped to save the situation. But we are not there yet. I would like to take this opportunity to congratulate our Member Countries that are also members of OPEC and those of the Cooperation Declaration whose efforts and sacrifices have helped to contain the decline in oil prices:
I would also like to congratulate our Member Countries who are not in OPEC or the Declaration of Cooperation, but who supported our proposal at the height of COVID-19 in April 2020 to send messages of solidarity to OPEC and the Declaration of Cooperation partners during this critical period.
Excellency, the year 2020 has taught us a great lesson, a lesson we will never want to repeat, it has taught us the dangers of over-reliance on external sources for the marketing of our crude oil, for the financing and maintenance of our oil and gas industry and for external technology. Although this is a reality today with all our Member Countries, this situation cannot and should not last forever. We are making efforts to change the situation. But we must do even more, because time is not on our side.
In this regard, I am pleased to note that the Council of Ministers approved a major restructuring and reform of APPO, whose mission was successfully completed last year with the appointment of a new management team to meet the current and future challenges of the oil industry on our Continent.
I am also pleased to note that notwithstanding the initial challenges posed by COVID-19 in 2020, we made progress in consolidating the reform of our Organization.
APPO finally moved to its permanent headquarters in Brazzaville, the Headquarters Agreement between the Republic of Congo and APPO was signed exactly one week ago, and the Organization’s staff is now operating from the BSCA Building pending completion of the 11-story APPO Tower in Brazzaville city Center.
On behalf of all our Member Countries, I would like to express my gratitude to the Government and people of the Republic of Congo for their support. Our special gratitude goes to our colleague Mr. Jean Marc Thystere TCHICAYA, Minister of Hydrocarbons of the Republic of Congo for the support provided to the Secretariat. I would like to ask him to ensure that the headquarters of the Permanent Secretariat is quickly completed so that all approved Secretariat staff can be fully accommodated.
Minister Tchicaya, please convey our deep gratitude to the Government and people of the Republic of Congo.
Allow me also to express our gratitude to the Government and people of the Federal Republic of Nigeria for hosting the Secretariat of the Organization for 30 months, during which time Nigeria has provided almost all the requirements of the Secretariat at no cost to the Organization. We thank you, Minister Sylva, and would like to convey our profound gratitude to the Government and people of the Federal Republic of Nigeria.
Excellencies, we are meeting today to consider the recommendations of the Executive Board which met last Tuesday to review the Secretariat’s activities, in particular its work programme and budget for 2021. I would like to remind you that we only completed the reform and restructuring of APPO last year with a commitment to ensure that our Organization significantly improves its services in order to better serve the interests of the Member Countries.
As we noted since the beginning of the APPA reform, a few years ago, the challenges facing the oil and gas industry in Africa are unique: in addition to the issue of oil market volatility that affects all oil producers, we in Africa have the peculiar challenge of overdependence on foreign oil export revenues, foreign technology and finance, and in some cases, even human resources. These issues were raised at the 38th Extraordinary Session of the Council where we took the decision to commission a Study on the Future of the Oil and Gas Industry in Africa in the light of COVID-19 and COP 21, we look forward to the results and recommendations of this study to help us better plan for the future of the industry on our continent.
Excellencies, with 2020 being the first full year since the completion on the APPA reform and the appointment of a new team to lead the Secretariat, as APPO President, I can say that we are on the right track. The Secretariat is being managed in a very professional manner. The Executive Board is exercising all its responsibilities. I would like to congratulate the Secretariat and the Executive Board for their commitment to professional excellence. On our part, as Ministers, I would like to assure you of our support so that you can continue to excel.
Excellencies, it should also be noted that no organization’s objectives can be realized without resources. While recognizing the difficulties that our Member Countries are going through, it is also important that we commit ourselves to avoid a more serious danger in the future. In this regard, I would like to appeal to those Member Countries with annual contributions in arrears, including those that have not paid their 2020 contributions, to do so as soon as possible.
The new APPO that we want to build cannot succeed without the financial and moral support of all of us. It is worth reminding you that the challenges facing the petroleum industry in Africa are enormous. Excellencies, of the three inter-governmental energy organizations, APPO, International Energy Forum, IEF, OPEC and the GECF, APPO has the least resources. Despite the fact that our membership is more than that of OPEC and the GECF, our annual budget is less than 10% of OPEC’s budget, and about 20% of GECF’s budget. Yet, we want APPO to perform as well as or even better than these organizations.
Your Excellency Prime Minister; Excellencies Heads of Delegations,
In our quest to address the challenges of financing energy projects on the African continent, recognizing that our sources of foreign direct investment are becoming scarcer due to the discriminatory policies put in place against fossil fuels by our traditional financiers, we approved the recommendation to recapitalize the African Energy Investment Corporation, AEICORP, the financial arm of APPO, which objective is to help raise funds for energy projects on the continent:
During our Extraordinary Session in June 2020, the Council approved the grouping of countries for fundraising purposes and our colleagues graciously accepted the responsibilities of helping to mobilize Member Countries to subscribe to the initial offer. During this Session, we will have updates from the Team Leaders on their efforts.
I therefore invite everyone to work to ensure the successful take-off of AEICORP. For our part, The Republic of Niger was the first country to commit to AEICORP and we call on the other Member Countries to follow suit.
Thank you for your kind attention.