The 18th World Petroleum Congress (WPC) has been a ”resounding success” and a demonstration of the increasing cooperation between African governments, the Minister of Minerals and Energy, Lindiwe Hendricks, said on Thursday.
”This cooperation should be applauded, and it is indicative of the trend towards improved relations among African governments,” she said on the last day of the congress in Johannesburg.
She said dialogue on oil prices and price volatility is critical as it has a significant impact on producer and consumer countries.
Governments have an important role in creating a stable investment environment.
”Of critical importance is that this investment takes place in developing countries, in particular in African economies,” Hendricks said.
Africa is fortunate that more oil is being discovered while technological innovations are making production more effective.
Hendricks said she was pleased to hear the industry had reaffirmed its commitment to create a cleaner and safer environment.
”Countries have also committed to harmonise fuel specifications with the objective of moving towards the consumption of cleaner fuels.”
African national oil companies have expressed interest in helping to ”energise” the continent by providing gas to low-income households, which will alleviate energy poverty.
”Investment in and commercialisation of gas in Africa are being considered as a matter of urgency,” Hendricks said.
Africa’s resources should be used to benefit the continent’s socio-economic growth, and companies need to ensure that they involve local people and enterprises in their projects.
Hendricks said governments need to ensure there is more transparency in the regulation of the industry and the use of revenue generated.
”The industry needs to be equally transparent on the pricing and marketing of oil and gas products.”
One of the congress’s biggest achievements is that it attracted a large contingent of young, enthusiastic professionals who will ensure the growth of the sector.
WPC president Eivald Roren said he was overwhelmed by the success of the congress.
Of particular importance was the involvement of youth and women, which was part of the WPC’s strategy to rejuvenate itself.
”The petroleum industry, as many other industries, has been dominated by men. We all have to think in terms of the next generation,” he said.
Roren said corruption affecting the oil industry is a ”special form of cancer” that absorbs large amounts of money and puts the brakes on investment.
Globally, corruption costs $1-trillion every year, which is 2% of the world’s gross economic product.
”It takes time to change it because it deals with the culture. Unless that is changed, we are wasting a lot of time and effort to get on with societal development,” Roren said.
Companies need to be more transparent and host governments have to take resolute action to address the problem. — Sapa