In recent years Africa’s Oil & Gas production has progressively developed. There are even areas within Africa that already account for around 7% of the world’s oil production. The new energy resource discoveries in Africa are changing the game and the players participating. Foreign direct investment in infrastructure -exploration and drilling equipment, pipelines, dredging and construction of deep-water ports, liquefied natural gas (LNG) plants and offshore floating platforms, could top $150bn over the next decade. Investment in LNG plants in Mozambique alone could be three or four times the country’s yearly gross domestic product. While new producers are the most enticing existing players still pave the road to success in development. The importance to Africa concerning its Oil & Gas increases with the decline of minerals such as iron ore and copper, which once were economic mainstays. The African Oil & Gas boom comes when energy markets are intensely shifting, making for a more dynamic investment climate.
Oil firms set to develop block
Sonangol, Angola’s state oil company and Cohydro of the neighbouring Democratic Republic of Congo (DRC) would develop a shared oil block off the coast of the two countries. Both of these regions control half of the block, which was in a so-called zone of common interest that overlapped with part of Angola’s block 14 in the Atlantic Ocean. Cohydro of DRC and Sonangol from Angola will come together to decide how the block can be jointly managed in the zone of common interest.
