Tuesday,
August 06 2019 03:22PM / Sahara Group / Header Image Credit: Sahara Group
Current efforts by the Angolan government
to restructure the oil and gas sector offer opportunities for collaborations
between local and international companies along the value chain in the
industry, Wale Ajibade, Executive Director of Sahara Group, has said.
These opportunities exist in local
capacity development, infrastructure development as well as funding, Ajibade
said while discussing African oil and gas market trends with a trade delegation
from Southern Africa.
Angola is the second largest oil
producing country in sub-Saharan Africa and an OPEC member with output of
approximately 1.55 million barrels of oil per day (bpd) and an estimated
17,904.5 million cubic feet of natural gas production. The nation also holds 9
billion barrels of proven oil resources and 11 trillion cubic feet of proven
natural gas reserves, which represent great potential for further economic
development and significant business opportunities.
Commending the Angolan President, HE João
Lourenço whose transformative policies are being driven by the Minister of
Mineral Resources and Petroleum, Dr. Diamantino Pedro Azevedo, Ajibade said the
administration’s reform agenda has thrown up opportunities arising from the
reorganization of Sonangol - the state oil company, a review of Angola’s oil
and gas sector legislation and incentives for investments.
According to
him, the opportunities include partnerships
between International Oil Companies, International Traders, International Banks
(especially African companies), and Local Angolan companies which will enhance
global best practices, knowledge transfer into the local industry and
ultimately increase the participation of private players in the downstream
market.
“These opportunities can be exploited
with the deployment of international and local private capital in partnership
with the Angolan government. With our pedigree, proven expertise and capacity
in Africa’s oil and gas sector, Sahara Group is happy to work with Angola in a
bid to optimise the growth and development of the sector in Angola,” he said.
Ajibade noted that although Angola
remains a leading oil producer in Africa, with many investors focused on
opportunities in exploration and production, more opportunities in the rest of
the value chain, such as the downstream sector could benefit from different
business models and further improve the reliability and security of petroleum
products supply to the Angolan market.
On infrastructure, he argued that “with
the right investments in the necessary infrastructure such as storage and
logistics, Angola can become the Rotterdam of Africa,” acting as the regional
export hub serving Central, Southern and even West Africa.
Ajibade further pointed out that while
Angola is strategically positioned along the coast with several landlocked
neighbours, for the country to develop a regional market, it will need to make
significant investments in import/export facilities, pipelines and storage.
Related News
1.
Sahara
Group Canvasses Intra-Africa Solution for Petroleum Sector Challenges
2.
Sahara
Group Advocates Adoption of Uniform Petroleum Products Standards in Africa
3.
Sahara
Group states position on offshore processing agreement & unfolding events
in the Oil&Gas sect
4. Oil Prices
Rebound After A Difficult Day - OIR 020819
5. Oil Markets On
Edge Ahead Of Big Week - OIR 300719
6. Oil Markets
Struggle For Direction- OIR 260719
7. Oil Markets
Ignore The Tanker War- OIR 230719
8. Oil Capped By
Shaky Demand Outlook - OIR 190719
9. Oil Falls Back
As Iran Risk Factor Fades - OIR 160719
10. Average Prices
of PMS, AGO, HHK and Cooking Gas – June 2019