Petroleum Africa
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Wednesday, February 20, 2019
It’s been a rough couple of years for Africa’s oil and gas sector, with the oil price volatility taking its toll. Nevertheless, there is renewed hope and the outlook is looking brighter. Led by organizations such as the African Petroleum Producers’ Organization (APPO), the sector is going through significant introspection, and there is noticeably more collaboration and coordination among the oil-producing countries on the continent.
And this bodes well for the future. According to Nyonga Fofang, Managing Director of Bambili Group Investments and Africa Oil & Power advisory board member, “These initiatives will clearly lead to a more pro-active and competitive role on the global energy stage in terms of production and operation. Given oil and gas investors’ search for long-term stable value opportunities, the appetite for African oil and gas exploration is still on an upswing.”
But as PwC’s Africa oil and gas review released in November 2018 notes, it is critical that the sector retains its capital discipline and adopts digital technologies if the hard-earned wins in cost savings are to be retained. The report concludes that there also needs to be progress in addressing corruption and improving corporate governance.
The challenges still facing national oil companies include the energy transition to renewables, policy uncertainty, political risk and insufficient infrastructure. These issues if not timeously addressed will negatively affect qualitative investments into the sector.
All the continent’s major oil, gas and power players will discuss these and other issues at the APPO Cape VII Congress and Exhibition, taking place in Malabo, Equatorial Guinea between 2 and 5 April 2019.
Neil Ferguson
14 Feb 2019
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