As the oil and gas outlook in Africa continues to strengthen with recent developments in exploration across the region, opportunities abound for major players in the sector. The discovery of significant quantities of oil in a number of countries presents a wealth of opportunity.
The recent oil and gas finds in Africa will continue to have a positive impact on local economies, if local African suppliers, service providers and other businesses are geared up to service this growth.
Africa is home to some of the world’s fastest growing economies, many of them buoyed by new oil and gas finds. These include Mozambique, Tanzania, Kenya and Uganda on the east of the continent and Ghana in the west.
Over the past 24 months in particular, the O&G industry in Africa has experienced the best macro environment influences in more than 20 years. Global demand for crude oil and natural gas is high, interest rates and cost inflation are low, and hydrocarbon prices are near historic highs. Many large integrated oil companies and other related sectors are experiencing high cash flow and improved margins and profitability. New oil and gas finds off the coasts of Africa may also accelerate investment in plants, pipelines and ships.