Africa could play a bigger role in ensuring global energy security if explorers increased investment in its "huge" oil and gas potential, an African Union (AU) energy body said today.

Hussein El Hag, director of African Energy Commission, an organ of the 53-nation AU intended to foster energy co-operation on the continent, said as much new investment as possible should come from firms created by Africans themselves.

"Modest means is one of our main problems. Despite huge energy potential, investments are still far from our aspirations," El Hag said in a Reuters interview on the sidelines of an oil, gas, trade and finance conference in Algiers.

He said Africa was pumping an estimated 9.0 million barrels per day (bpd) of oil into the 85 million bpd world market. Africa's proved oil reserves were 101.8 billion barrels or 8.87 per cent of world reserves, according to 2003 statistics.

"This percentage does not reflect the (potential) reality. Several regions have yet to be opened to exploration."

He declined to provide estimates of the spending he thought was needed in Africa, but said the continent was preparing to carry out several plans to promote the industry.

"These projects will contribute to developing the African economy. Africa does not have financial means. It is seeking partnership. We need contributions from big companies," he said.

AdvertisementAdvertisement"We urge international solidarity. It is the only way to ensure energy security and guarantee a permanent development. The contribution of oil firms and financial institutions is needed to achieve shared prosperity," he added.

African oil exporting countries, including Algeria, Nigeria and Libya are members of the Organisation of the Petroleum Exporting Countries, but non-Opec Angola is also playing a significant role in ensuring supply.

The United States, the world's largest consumer, has said it wants to obtain an increasing share of imports from Africa to reduce its reliance on supplies from the political unstable Middle East.

Energy-hungry China and India have also increased their upstream presence on the continent, sparking renewed interest in exploration and development in east and central African regions previously thought uncommercial.

El Hag said lack of foreign investment in African energy pushed African non-producing nations to import some 58 million tonnes of oil, as well as huge quantities of gas, last year.

"Africa has significant gas reserves. We want African gas to be ranked at its deserved position," Sudanese El Hag said.

He stressed the need for African oil and gas companies to be involved in the continent's projects to reduce dependence on Western and Asian firms.

He said he saw Algeria's energy group Sonatrach as a good example of this, pointing to its foreign exploration projects which include ventures in Niger and Libya.

"We urge the creation of African big energy companies to help produce, explore and export oil and gas. Several African countries have yet to realise the importance of energy. Sonatrach has reached a level that allows it to transfer its experience abroad," El Hag said.