by Tina Olivero

    Sub Saharan Africa to see a Surge in Crude & Natural Gas Projects

    According to the research and consulting from GlobalData, we could be looking at as many as 43 crude and natural gas projects in Sub-Saharan Africa by 2025 (31 crude and 12 natural gas). This list is likely to be headed by Nigeria (11 projects) and Angola (8 projects).

    Even though the region has shown a recent downtrend in investment, the projects will come online by midterm, especially in the areas where the investment was made before the downturn in oil and investment started. This will particularly be evident in investments which show breakeven options or prices lower than the current values.

    3 international firms are of particular interest in relation to the investment. They are:

    • Tullow Oil PLC: 5 planned projects
    • Total S.A.: 5 planned projects
    • Chevron Corporation: 3 planned projects

    Out of the 10 projects planned jointly by Tullow Oil PLC and Total SA, 9 are in crude oil and 1 in natural gas.

    It has been reported that the key planned projects in the region would contribute to around 1.1 million barrels of oil on a daily basis (BD) and 7.7 billion cubic feet of gas.

    The Capital Expenditure (Capex) influx in the region is expected to be around USD 153.5 billion, with Mozambique leading the growth spurt with an estimated investment of USD 70.4 billion. Most of this is reserved for the Rovuma Area 1 and the Rovuma Area 4 complex.

    Commenting on the developments in Mozambique, GlobalData’s Upstream Analyst, Jonatham Markham observed, “Progress on the liquefied natural gas (LNG) projects in Mozambique has slowed over the last few years due to financing issues and regulatory uncertainty. The operators are expected to start with relatively small scale developments, such as Eni’s 3.4 million metric tons per annum (mmtpa) floating liquefied natural gas (FLNG) solution”.

    He also noted that the initial build-up would be affected by the initial lower investment, which would likely reach a combined capacity of 30 mmpta by 2025. The Final Investment Decision (FID) for FLNG is expected by the end of 2016, while that of the onshore facility and the LNG exports from Mozambique will likely start off by 2017 and 2021 respectively. In this regard, Eni SpA will have the highest Capex investment (USD 21.3 billion) in the next 10 years.

    A few of the undeveloped regions in the Niger Delta basin include Zabazaba-Etan and Nsiko.

    According to Young Okunna, an Upstream Analyst from GlobalData, “Although Nigeria is expected to add over 510,000 bd of additional oil production capacity by 2025, the likelihood of this happening is dependent on fiscal certainty and relative peace in the Niger Delta region. Almost half of the expected additional capacity still lacks FID, with the field operators expected to make a decision by 2020. This will be greatly influenced by prevailing market conditions and security around the planned projects.”

    GlobalData is a trusted name in the global analytic front with inputs from over 25,000 industry specialists and 700 professionally qualified business analysts every year. For more information contact: globaldata.com.


    Tina Olivero

    Tina Olivero

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      Tina Olivero

      30 years ago, Tina Olivero looked into the future and saw an opportunity to make a difference for her province and people. That difference came in the form of the oil and gas sector. Six years before there was even a drop of oil brought to the shores of Newfoundland, she founded The Oil and Gas Magazine (THE OGM) from a back room in her home on Signal Hill Road, in St. John’s, Newfoundland. A single mother, no financing, no previous journalism or oil and gas experience, she forged ahead, with a creative vision and one heck of a heaping dose of sheer determination. With her pioneering spirit, Ms. Olivero developed a magazine that would educate, inspire, motivate and entertain oil and gas readers around the world — She prides herself in marketing and promoting our province and resources in unprecedented ways. The OGM is a magazine that focuses on our projects, our people, our opportunities and ultimately becomes the bridge to new energy outcomes and a sustainable new energy world. Now diversifying into the communications realms, a natural progression from the Magazine, The OGM now offers an entirely new division - Oil & Gas Media. Today, The Oil and Gas Magazine is a global phenomenon that operates not only in Newfoundland, but also in Calgary and is read by oil and gas enthusiasts in Norway, Aberdeen, across the US and as far reaching as Abu Dhabi, in the Middle East. Believing that Energy is everyone’s business, Ms. Olivero has combined energy + culture to embrace the worlds commitment to a balance of work and home life as well as fostering a foundation for health and well being. In this era of growth and development business and lifestyle are an eloquent mix, there is no beginning or end. Partnering with over 90 oil and gas exhibitions and conferences around the world, Ms. Olivero's role as a Global Visionary is to embrace communication in a way that fosters oil and gas business and industry growth in new and creative ways.

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