Tullow Oil shows great optimism in Africa, predicting that oil demand will increase in the next 20 years. The oil and gas exploration and production company has been eyeing East and West Africa.
Global Demand for Oil
Tullow Oil believes that the global demand for oil will increase in the next 20 years. This, despite the general shift to clean energy and alternative energy sources.
“The world is transitioning in its energy requirements, but oil demand is going through 100-million barrels,” says Tullow Oil New Ventures GM Robin Sutherland at the Future Energy Africa Oil and Gas conference, in Cape Town. “It’s projected to keep going until 2038. Why should we move out of the oil business when we see so much demand coming our way?” Sutherland states that the company will continue to invest in oil. “There is 40 years left in the oil industry for sure. Anything we recover over the next 15 years will see its life run out fruitfully.”
Sutherland outlines the challenges facing African oil and gas projects. Challenges include:
- access to exploration acreage for credible exploration companies
- unrealistic licence terms
- capacity of governments to supervise large-scale oil and gas projects
- effect of climate change on large-scale investor climate
- Bribery and corruption
- conflicts of interest in the supply chain
- customs and value-added tax regimes
About Tullow Oil
Tullow Oil is a leading independent oil and gas exploration and production company. The group has interests in over 80 exploration and production licences across 16 countries which are managed as three Business Delivery Teams: West Africa, East Africa and New Ventures. The company disposed of its assets in India and Pakistan to shift their focus to Africa and South America. Tullow Oil has reported that the company’s oil wells in West Africa were producing 89 100 bbl/d of oil in 2017, while production for 2018 is targeted at between 82 000 bbl/d and 90 000 bbl/d. they are especially interested in Ghana. Tullow Oil hope to bring their Ghana production up to 180 000 bbl/d by early 2019. They plan to do this by bringing five new wells online in Ghana. There is an estimated 244-million barrels of resources that have not been developed in Ghana, and another 570-million barrels of upside potential.
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[Source: Engineering News]