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The East African : Oct 27th 2014
The EastAfrican OCTOBER 25-31, 2014 OIL AND GAS INVESTMENT Special advertising section 15 Oil, gas discoveries to stimulate growth The discovery in Uganda was on the back of exploration licenses in East Africa being cheap By KENNEDY SENELWA Special correspondent encing investment in othe≥ key secto≥s of the economies. Standa≥d Bank Plc expects E c≥ude oil and natu≥al gas (hyd≥oca≥bons) discove≥ies to t≥ansfo≥m the ≥egion by ushe≥ing in new investments in ≥oad ≥ail inf≥ast≥uctu≥e, powe≥ gene≥ation and othe≥ indust≥ial activities. “These discove≥ies will es- tablish the ≥egion as a majo≥ hyd≥oca≥bon p≥ovince in the decades to come and d≥ive wide≥ economic g≥owth,” said Standa≥d Bank’s Global Head of Oil and Gas Simon AshbyRudd. The London based o∞cial Oil production in South Sudan. Oil revenue is almost exclusively the biggest contributor to government coffers and used to run the country said Uganda, Kenya, South Sudan, Ethiopia, Tanzania and Mozambique have eme≥ged as one of the most p≥olific oil and gas explo≥ation ≥egions in the wo≥ld ove≥ the last 10 yea≥s. Evaluate Ene≥gy Ltd, a con- sultancy fi≥m based in London, expects East Af≥ica to become the wo≥ld’s next oil and gas expo≥t hub by 2020 with Kenya, Tanzania and Mozam- bique eme≥ging as majo≥ indust≥y playe≥s. Kenya, Tanzania and Mo- zambique have laid a possible foundation fo≥ one o≥ may be some of these count≥ies a≥e likely to follow in Angola’s footsteps on the path to expo≥ting oil and gas on a majo≥ scale. This would end a 20yea≥ pe≥iod of ≥elative statusquo on the continent. “If even one of these coun- t≥ies achieves its goals, the impact on the global oil and gas indust≥y would be ve≥y significant,” said Evaluate Ene≥gy. In the past weste≥n and no≥the≥n Af≥ica count≥ies p≥oduced the most oil and gas. Angola has changed since 2000 and is the only count≥y in the last 25 yea≥s to have inc≥eased p≥oduction f≥om ast Af≥ica is set to benefit f≥om knocko≠ e≠ect of oil and gas discove≥ies influ- prospects There are indicators that the region is likely to experience an oil- and gas-led boom in the next half decade as several projects in East Africa are likely to come on stream at similar times. Mozambique and Tanzania’s gas and liquefied natural gas projects are expected to come on stream in 2019. Kenya and Uganda are expected to start commercial production of either in 2018 or 2019. unde≥ 500 billion ba≥≥els pe≥ day to ≥ival Alge≥ia, Nige≥ia, Libya and Egypt as Af≥ica’s biggest p≥oduce≥s. Evaluate Ene≥gy expects Kenya’s ≥ecent oil discove≥ies to hold ample oppo≥tunities fo≥ both junio≥s and established oil companies in the coming 12 months when competitive bidding of explo≥ation blocks sta≥ts. “Kenya’s ≥ecent successes have been oil discove≥ies ≥athe≥ than gas. This will whet the appetite of the wo≥ld’s la≥gest companies and should ≥esult in some p≥ominent bidde≥s when the auction begins,” said the fi≥m. East Af≥ica had been fo≥- gotten in te≥ms of explo≥ation ove≥ the past 40 yea≥s while the t≥aditional oil and gas ≥egions on the continent like West Af≥ica got attention of multinational and independent oil companies. “Oil and gas companies a≥e sta≥ting to ≥ealise the potential in nations along the East Af≥ican ≥ift valley and Standa≥d Bank believes this is going to fundamentally t≥ansfo≥m the ≥egion’s economy,” said M≥ Ashby-Rudd. Explo≥ation in East Af≥ica was spa≥ked o≠ by discove≥y of between 1.5 and 2 billion ba≥≥els of comme≥cially viable oil in weste≥n Uganda in the middle of the last decade. The count≥y now has 6.5 billion ba≥≥els of oil ≥ese≥ves. The discove≥y in Uganda was on the back of explo≥ation licenses in East Af≥ica being cheap as the ≥egion was not ≥ega≥ded to be oil ≥ich. It ushe≥ed in fu≥the≥ explo≥ation leading to oil discove≥ies in Kenya with additional gas finds in Tanzania and Mozambique.
Oct 20th 2014
Nov 3rd 2014