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Sonjica: 'Oil, gas for the people'

Cape Town - International oil companies should supply oil and gas for the African people's benefit and not just for export, according to Buyelwa Sonjica, South Africa's minister for minerals and energy.

She told delegates to the sub-Saharan oil, gas and petrochemical conference being held here: "Gas is being flared in Africa yet our peoples are still dependent on firewood and other forms of traditional energy carriers. Use of gas for cooking and space heating in households should be promoted on the continent."

Africa is a net exporter of energy, she said, but Africa is a dark continent in the sense that most of the continent is not accessible to affordable modern energy carriers.

"As an energy exporter," she said, giving the opening speech at the conference on Monday, "it is our responsibility to ensure that our resources are used to develop our peoples so that they have a standard of living that befits an energy rich continent."

Domestic benefit

The minister added that many developing countries could benefit domestically and regionally from the development and use of local gas deposits, as well as gas associated with oil production that has been considered un-economical for the export market.

"An international arrangement to assist countries to develop stranded natural gas reserves for local consumption is an option that could provide those nations with much needed energy, as well as economic, statistical and environmental benefits," she said. "This is achievable."

The minister also encouraged all the oil and gas-producing countries on the continent to endeavour to promote locally owned and controlled companies.

"These could be used as service providers. A concept such as one proposed here has been successfully implemented in Norway and Malaysia. This subsequently led to the formation of giant national oil companies, specialised companies, as well as skilled and specialist human capital in the sector," she said. "There is an opportunity for development for all."

Skills?

On the question of skills, she said she wondered if it is completely correct to look at the issue of skills purely in terms of academic qualification.

"As Mr (Jimmy) Manyi of the Black Management Forum says, it is incorrect to do so," she said.

"There are a lot of skills and expertise in those that did not have the necessary paper qualifications but have the experience of being on the job and over a long period of time, and we know that due to some of the political practices of old, we have a lot of people in that category in our country."

Sonjica concluded: "The most lucrative industry to operate in now is the oil and gas industry. The place to exploit these opportunities is Africa. The best investment partner to assist in creating opportunities located in the oil and gas hub of Africa is South Africa. The time to move into this industry is now."

- I-Net Bridge

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