African Energy Commission

1. NOT AN OFFICIAL UNCTAD RECORD African Energy Commission AFREC Presentation: African Oil Producing and Importing Countries (AfrOPIC, OPIC) African Energy Commission Commission Africaine de l'Energie Comissao Africana de Energia AFREC

2. Energy Security for Africa through Energy Integration in Africa 2 Energy Security for Africa THROUGH Energy Integration in Africa

3. Background • Rate of discovery of new oil reserves in Africa has been the fastest in the world in the past decade. • Africa produced over 9 million barrels per day (bbl/d) of oil in 2004, • Total African oil consumption in 2004 was little than 3 million bbl/d, • 15 countries produce oil and prospects are high in at least another 5 countries, • In the 5 Energy Regions in Africa, there is at least one oil producing and exporting country. 3 Energy Security for Africa THROUGH Energy Integration in Africa

4. Map of Africa Showing Oil Producing and Prospecting Countries Oil Producing Countries Oil Producing Countries Oil Prospecting Countries 4

5. Growing Global Interest in Africa’s Oil Resources • The United States imports about 18 % of its oil needs from sub-Saharan Africa, and would rise to 25 % by 2010. • China, Malaysia and India are acquiring production rights of most of Sudan’s current oil reserve and actively pursuing ventures in several regions around the continent. • Europe and mediterranean Rim countries actively pursuing energy interconnections with North African countries. Strategic plans for gas, oil and electricity interconnections are set to complete by year 2010. 5 Energy Security for Africa THROUGH Energy Integration in Africa

6. African Oil Producing andImportingCountries(AfrOPIC, or OPIC) 6 Energy Security for Africa THROUGH Energy Integration in Africa

7. Definition • The proposed Organization of the « African OIL Producing and Importing Countries » (AfrOPIC) is a continental inter-governmental petroleum organization comprises all African States and concerns with establishing and operating a giant market for trading crude oil and petroleum products among all African oil producing countries and all African oil importing in order to achieve energy security through an integrated oil industry, self-sufficiency and self-reliance in oil supply for welfare of the African continent. 7 Energy Security for Africa THROUGH Energy Integration in Africa

8. Contrast with other International and RegionalPetroleum Organizations • Unlike OPEC which concerns with interests of a cartel of 13 members in regard to marketing crude oil worldwide. • Unlike OAPEC which coorinates activities among 10 Arab Oil Producing and Exporting Countries. • Most importantly, and i stress on this point, it is not meant to replace APPA but rather to re-enforce it. To make bigger, to make it better and to make it more effective. 8 Energy Security for Africa THROUGH Energy Integration in Africa

9. Objectives • Establish a continental oil market among African countries ; • Co-ordinate activities of African petroleum producing countries ; • Secure fair supply and stable prices for African countries ; • Guarantee regular oil supply through efficient delivery systems ; • Create means for fair return on capital for investors ; • Establish effective mechanisms for transparent marketing ; • Plan for strategically located refineries and oil depots ; • Sponsor joint ventures and integrated oil industry and • Play a buffer against oil shocks for energy security in Africa. Energy Security for Africa THROUGH Energy Integration in Africa 9

10. Regional Map of Africa Showing Oil Producing and Prospecting Countries Oil Producing Countries Oil Prospecting Countries Oil Prospecting Countries Oil Producing Countries Oil Pro 10

11. Africa Gas Market Agreement (AGMA, or AfriGas) 11

12. Regional Map of Africa Showing Gas Producing and Prospecting Countries Naturel Gas Producing Countries. 12 Naturel Gas ProspectingCountries

13. End of Presentation Thank you for your Kind attention 13