Growing Africa’s oil industry through balanced investor- friendly policies and optimizing sectors
Africa has been recognized as a continent of great promise for hydrocarbon exploration and production. The continent has a high potential and success rate in discoveries and reservoirs. It has about 11% of the world oil reserves propelled by the new discoveries in Ghana, Uganda, Kenya, Tanzania and Mozambique. Africa’s major reserves and production are in Sub-Saharan Africa. According to Consultants Wood Mackenzie, by 2018 Sub-Saharan Africa could be producing an extra 400,000 bbl/d of oil.
It is envisaged that by 2020 more discoveries will be made in the region and production of oil and gas will soar at a great height. Experts forecast indicate that the region’s GDP will continue growing and gaining momentum annually based on prevailing socio-economic indices and also spurred by the market dynamics in the extractive sector.
The Exploration and production momentum that pervades the region have given birth to avalanche of petroleum policies and changes in existing fiscal terms which have started to perturb international oil companies to some extent. It is apparent that by constructing a win-win petroleum contracts national oil governments will be able to generate enough revenue for their countries and still maintain adequate control over their natural resources. In the same vein, well balanced policies will enhance more investments in the oil and gas industry which gulps billions of dollars and also attract new investors.
In the past five years national producers in Africa have been tinkering with new petroleum policies – prevalently the local content law and also creating and re-shaping the existing fiscal terms to suit their national agenda. The same wind is blowing around the emerging petroleum countries in the continent or new frontiers. Every of these countries where hydrocarbon has been discovered in commercial quantity are interested to position local content as one of their major criteria for doing business with international oil companies.
This is a welcomed development. However, a better understanding in drafting these policies will help to ensure its effectiveness. While nations must maintain their sovereignty in writing their policies, it is apparent that any policy that is not commercial enough to yield significant revenue for the nation and is not-investors friendly will not achieve its objectives. Resource rich nations of Africa need foreign investors and companies in the exploitation and production of their natural resources. Also, international communities are also aware that with the increasing demand of energy in the world, that Africa is an attractive bride to court.
One beautiful thing going for the continent’s national oil companies is that geopolitical risk has been dwindling in the region since the last quarter of 2013. This used to be a major concern for foreign investors. In the opinion of most analysts, the inclusion of local content in the petroleum contracts which helped in the increase of local participation in the industry and democratization processes in most of the African countries tremendously helped in curbing geopolitical turmoil.
Therefore, as growths are expected to continue in the region the need to optimize innovation, increase investments and exploit more opportunities in the downstream, midstream, downstream and service sectors in the region’s oil and gas industry are very essential.
In response to this, Energy & Corporate Africa have the theme of the upcoming 8th Annual Sub-Saharan Africa Oil and Gas conference scheduled to take place at Marriott Westchase, Houston, Texas, USA from Wednesday. 29th April – Thursday, 30th April, 2015 as Optimizing Innovation, Investments and Opportunities in the Upstream, Midstream, Downstream Service Sectors.
The Annual Sub-Saharan Africa Oil & Gas Conference is a unique conference that brings African petroleum ministers, national oil companies, international oil companies, investors, financial institutions and industry top players to meet; share knowledge, exchange ideas, showcase expertise and enhance business relationships.
This upcoming event is no exception and promises more contents, unique activities, top rated speakers, more national, companies and institutional participations.
This conference will focus on exploration and production updates, gas monetization, LNG, oil and gas telecommunications, innovative technologies, investment opportunities, onshore, offshore, deep water activities, external and internal environments impacting the industry, project financing, field economics, Africa’s new frontiers, technologies and cost effective methodologies, advancements in geology and geophysics for field optimization, innovation and trends in reservoir engineering, and local content policy.
This conference involves industry focused presentations, panel discussions and exhibition. It will round off with network receptions/gala
If you want to know what’s going on in the burgeoning Sub-Saharan Africa oil and gas market; about E & P updates, upstream, midstream, downstream, gas monetization plans, new frontier opportunities, marginal oil field and market development, development of offshore and deep, shallow water fields, advancements in technology, reservoir engineering, geology, geophysics, the new players, nascent petroleum laws, upcoming licensing rounds, its geopolitical atmosphere or to plug into the latest business opportunities in the region and network with top government officials, decision makers and industry top players, this conference is for you.