East Africa is creating a stir amongst oil and gas exploration companies and their suppliers, according to DHL Energy Sector President, Steve Harley.
Angola and Nigeria have always been the most notable producers within the Sub-Saharan region, said Harley in a statement. “More recently, significant gas discoveries in Tanzania and Mozambique has led to East Africa now receiving its share of attention from global oil companies and potential investors.”
Oil discoveries in Uganda and Kenya is now attracting major investors, including some of the largest independent and international oil companies, stated Harley. He said these ‘super majors’ are now witnessing the potential in this region. According to Harley, developments in East Africa, both Namibia and South Africa are also on the radar of investors within the sector.
Karoo shale gas
Harley said that South Africa is particularly receiving much attention, mostly because of the potential of shale gas in the Karoo. The country also has a long and largely unexplored coastline, off which many believe large hydrocarbon fields may exist. “As a result of the region’s potential, there are several offshore drilling exploration expeditions currently being planned in South Africa by the major oil companies,” he noted.
Africa’s share of reserves
PwC’s Africa Oil Gas review titled ‘From promise to performance released in June 2013, revealed that Africa currently supplies approximately 12% of the world’s oil and boasts untapped reserves estimated at 8% of the world’s proven reserves’. “With the ever-increasing need for energy in Asia and in particular China, many of these countries are positioning themselves strategically in Africa as they seek to tap into new resources to support their growing energy needs,” stated Harley.