According to PricewaterhouseCoopers (PwC) to The Oil & Gas industry in Africa is dignified with significant growth in spite of governing and political limitations.
The evident strains of a challenging economic and political environment within the African Oil & Gas Industry which was powered by poor physical infrastructure‚ corruption‚ an uncertain regulatory framework and a lack of skills, is a thing of the past. The challenges faced by numerous Oil & Gas corporations functioning in Africa are certainly diverse and numerous.
PwC conducted a valuable survey regarding the happenings over the last year within the Oil & Gas Industry in key African markets. The survey was concerned with the valuable experience and views of industry players in Africa‚ including international oil corporations operating on the continent‚ national oil corporations‚ service businesses‚ independent oil associations and industry analysts‚ as a means to provide insight into the latest developments that influence the industry. The review shows that due to the latest and large gas discoveries in several East African countries such as Mozambique, Tanzania, Uganda and Kenya, vast increases of exploration activity has sparked and the continent is poised for momentous growth.Africa supplies approximately 12% of the world’s oil‚ boasting significant untouched reserves projected at 8% of the world’s established reserves. Africa has natural gas reserves amounting to 513-trillion cubic feet with 91% of the yearly gas production of 7.1-trillion cubic feet coming from Nigeria‚ Libya‚ Algeria and Egypt.
The major challenges recognised by several Oil & Gas businesses have continued largely unchanged with the top 4 issues in 2010 continuing to remain the biggest and trickiest challenges in 2012. The top 2 challenges that the industry faces within Africa are:
- Poor infrastructure
- Uncertain regulatory framewor
Governments across Africa are revising or evolving their energy regulations. Various countries are investigating changes in the government take‚ taxation regulations and state participation.