Opportunities in Africa

The oil and gas industry remains Africa’s most valuable and profitable source of revenue. Now it is Africa’s time to shine! Visionary investors have a unique opportunity to capitalize on their investments like never before, as government efforts are working diligently to improve the business climate, and the oil industries environmental impact in Africa.

Oil and Gas Natural Reserves

Over 50 out of the 61 territories in Africa have oil deposits! This is a staggering fact that will amaze many, and something many investors will celebrate! Research showed Africa had a total of 117.064 billion barrels of oil reserves, as of January 1, 2009. This figure represents approximately 9 percent of the world’s total oil reserves – 1,342.207 billion barrels. Africa’s natural gas reserve is also staggering: 494.078 trillion cubic feet, a figure representing about 7.9 percent of the world total – 6,254.364 trillion cubic feet).

largest proven oil reserves in Africa

Libya, a member of the Organization of Petroleum Exporting Countries (OPEC), holds the largest proven oil reserves in Africa, followed by Nigeria and Algeria.
Insight and analysis of the most salient and topical trends and events in the African oil and gas industry are very essential for prospective investors. Gigantic deposits of oil were reported to have been discovered along the shore of Lake Albert in Uganda. Ms. Sally Kornfeld, a senior analyst in the office of fossil energy was reported to have commented on Uganda’s oil reservoirs in the same sentence as Saudi Arabia. She said, ”You are blessed with amazing reservoirs. Your reservoirs are incredible. I am amazed by what I have seen, you might rival Saudi Arabia.”

Oil deposits are still being discovered in many parts of Ghana. The Ghanaian oil deposits are so large experts are becoming concerned how to manage the anticipated massive revenue from this resource in a progressive and transparent way. This Ghana deposit is peaking the interest of global leaders like President Barack Obama, who made his initial visit to Ghana in 2009.

Synopsis Of Africa’s Oil and Gas Activities

Africa has about 9 percent of the world’s reserves, and many more oil deposits are being discovered everyday. There are five major countries that dictate Africa’s upstream oil production, collectively they are responsible for approximately 85% of the continent’s overall oil production. These countries are, in order of decreasing output, Nigeria, Libya, Algeria, Egypt and Angola. Gabon, Congo, Cameroon, Tunisia, Equatorial Guinea, the Democratic Republic of the Congo, and Cote d’Ivoire are the other oil producing countries on the continent. However, oil exploration activities are on-going in a number of other African countries. These are the countries that either aim to increase their output, or become first time producers. Included in this list are Ghana, Uganda, Chad, Sudan, Namibia, South Africa and Madagascar, while Mozambique and Tanzania are potential gas producers.

Africa’s downstream oil industry consists of about forty-four refineries located in 25 countries, with a total distillation power of 3 million barrels per day – this represents 4% of the world total. The major refining centres are in Egypt, Algeria, South Africa, Nigeria, Libya, Morocco and Kenya in decreasing magnitude of refining capacity. Synthetic fuels production is also one of South Africa’s lines of production. Government owned and indigenous marketing and distributing amenities are available in all the countries. Apart from fuel reserves, Africa is also blessed with a very dynamic lubricants industry, which encompasses base oil refining, lubricant blend, distribution and marketing.

All oil and gas important variables and indices present Africa as a continent that is enormously endowed. This coupled with fantastic African hospitality makes Africa an attractive place for investment, strategic alliances, joint ventures and business development. The international community must rise up to whatever challenges Africa is facing today, because peaceful communities means a peaceful world. There are no separate continents, countries, and people, we are simply one world, and as we see it from this vantage point, opportunities to unite global energy readily arise.

Gargantuan oil deposits are still waiting for discovery in Africa. This is the right time for oil researchers and prospectors to look into Africa, with open minds, powerful solution-oriented innovation, and an extreme will to overcome challenges. Visionary foreign investors will integrate to make Africa a lucrative continent where peace, equil- ibrium in governance, technological advancement, and strong business prosperity is a way of life.