Africa Oil & Gas Review: From Fragile to Agile

Oil & Gas
Proshare - Facebook Proshare - Twitter Proshare - Linked In Proshare - WhatsApp

Tuesday, August 18, 2015 4:40pm / PriceWaterhouseCoopers




This review of developments in the African oil & gas industry is the fifth in a series of reviews of the sector.

This review represents the valued experience and views of industry players across Africa, including international oil companies operating in Africa, national oil companies, oilfield service companies, independent oil companies and industry commentators, who have provided vital insight into the latest developments impacting the industry in this region.

Results from the Survey showed that 88% expect future power utility business models will be transformed by 2030, with a quarter of them saying they will be unrecognisable from those operating today; 94% say there is a medium or high probability that, by 2025, the challenge of finding a market design that can balance investment, affordability and access issues will have been largely solved and 96% say there is a medium or high probability that load shedding will be the exception rather than the norm by 2025.

In this edition, PWC takes a look at what has happened in the last 12 months in the major and emerging African oil & gas markets. As oil prices plunged late in 2014, the industry response has been far-reaching, leading to reductions in headcount and other cost cutting measures. Capital budgets have been cut, and frontier exploration activity has waned.

While response to such a drastic move in commodity price was certainly necessary, we have seen that the most successful organisations are taking time to re-set, re-strategise and plan for the upturn in prices, which will inevitably come. Africa should be no exception as many of the frontier exploration plays lie on this continent. At PwC, we have termed this opportunity as moving from ‘fragile to agile’.

While the oil price has caused activity to drop, it has also served as a wake-up call to many African governments, which are working hard to pass favourable oil & gas legislation in order to attract investment into the sector. One example of this is Mozambique, which recently passed the LNG Decree Law. In addition, other countries such as Kenya, South Africa and Tanzania have been taking a serious look at legislation currently in place with a view to making it more investor-friendly.

Kindly DOWNLOAD Report Here 


Related News