M a r k e t N e w s

Africa: Nigeria, Libya Threatened As More African Countries See Oil Boom

Posted on : Wednesday, 1st October 2014

 Nigeria could face threats of being overtaken by other producers if the World Bank's proposed African Gas Initiative in Angola, Cameroon, Congo, Gabon and Cote d'Ivoire, continues to go forward.

Though the African reserves are currently dominated by Nigeria, Algeria and Libya, which collectively accounted for almost 72 percent of the region's reserves in 2013, large gas finds in particularly Mozambique and Tanzania <http://www.dw.de/tanzanian-natural-gas-comes-ashore/a-17862556> could turn these countries into a force to reckon with in the global energy industry.
A report by EY, a global leader in assurance, tax, transaction and advisory services released recently noted that the fortunes of other players like the Republic of the Congo which faced oil production decline, could change if the World Bank's proposed African Gas Initiative matures.
The study said Central Africa's other major player, Chad, has seen some recent success, led by ExxonMobil and China's CNPC.
The sub-region also includes a number of smaller producers whose oil and gas industry is in its ascendency, with a few recent big successes that may portend well for the future.
Notably, Equatorial Guinea hopes to leverage the Marathon-led discoveries and developments into rapid economic growth, while the Anadarko/Tullow success in Ghana's Jubilee area will transform the country's oil and gas industry.
These successes are also thought to augur well for neighbouring developments in the West African/Atlantic Transform Margin in offshore Sierra Leone, Coted'Ivoire and, potentially, Liberia, the study found.
However, according to a recent study by PriceWaterhouseCoopers investment opportunities in these emerging oil hubs were still often marred by lingering challenges of corruption, lack of infrastructure and regulation.
A huge obstacle to growth in Tanzania and Mozambique is the cost of the infrastructure required, which neither country can afford without help from foreign investors, the PwC study said.
Nearly nine million barrels of crude were produced every day in 2013, more than 80 percent of which came from established players such as Nigeria, Libya, Algeria, Egypt and Angola.
In gas that is even more concentrated, with nine tenths of annual natural gas production of 6.5 trillion cubic feet coming from Nigeria, Libya, Algeria and Egypt.

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