JOHANNESBURG (July 23, 2014)—The challenges facing oil and gas companies operating in Africa continue to be diverse and numerous—fueled by fraud, corruption, theft, poor infrastructure and a lack of skilled resources, among others. Regulatory uncertainty and delays in passing laws are severely inhibiting sector development in many countries around the continent.
“Some key players have delayed or canceled projects until further clarity can be sought in their respective jurisdictions as they cannot move forward with doubts given the long-term nature of the needed investments,” said Chris Bredenhann, PricewaterhouseCoopers (PwC) Africa Oil & Gas Advisory Leader.
“As a result of the number of challenges in the market, meticulous planning is required,” Bredenhann said.
PwC’s “Africa Oil & Gas Review” analyzes the last 12 months in the oil and gas industry within the major African markets. The survey draws upon the valuable experience and views of industry players in Africa, including international oil companies operating on the continent, national oil companies, services companies, independent oil organizations and industry commentators, to provide insight into the latest developments affecting the industry.
The review shows that the oil and gas industry in Africa continues to show substantial growth, with new hydrocarbon provinces developing at a significant pace.
“Large gas finds in Mozambique and Tanzania have caused the world to take note of East Africa as an emerging player in the global industry,” Bredenhann said.
Africa has proven natural gas reserves of 502 trillion cubic feet (Tcf) with 90 percent of the continent’s annual natural gas production of 6.5 Tcf coming from Nigeria, Libya, Algeria and Egypt.