Although new exploration is expected to bounce back from 2018 levels, the OGUK has cautioned that drilling activity continues to stand at a “record low rate” and supply chain firms remain under significant financial stress.
In 2019, we expect more than 9% in production growth, thanks to the ramp-ups of large projects like Kaombo or Egina plus some start-ups in Brazil, UK and Norway. But we can also expect a volatile Oil & Gas environment! This is why we will maintain financial discipline and pressure on cost reduction to further reduce our break even so as to remain profitable whatever the oil price and be able to invest in the company for the future..
The Canada Assembly & Dinner is the birthplace of the Women’s Energy Council (WEC) and Canada has been more active than anywhere else in the world for this platform.
We can speak most confidently about Nigeria; and here the story has not really changed over the past few years. The prolific nature of the Niger Delta means that it remains a hugely attractive terrain for oil and gas investments. As the majors divest from the Niger Delta to concentrate on the deepwater and in some cases, the gas export business, there are plenty of opportunities to pick up geologically low risk and yet world class assets. Domestic gas utilization is also an area of growth, which is increasingly being taken up by indigenous players such as Seplat. Marginal field opportunities will also grow.
Akshai Fofaria, Partner, Solicitor & Avocat and Regional Chair of the Africa Group, Pinsent Masons LLP
Pinsent Masons has been active in Africa since the early 1990s when we exported the private financing model to South Africa, culminating in the development of the Gautrain. Since then, the firm has provided an entire project lifecycle service, supporting those who have an economic interest in Africa’s major energy, natural resources and infrastructure assets, and are proud to have used our legal expertise to help facilitate the financing and growth of vital energy infrastructure on the continent, and to have provided strategic advice and representation to market participants.
Algeria and Libya are two of the world’s most important petroleum-producing countries. The two countries share a similar economic structure although Algeria has a more diversified G.D.P. composition than Libya has. Algeria has a preponderant role as a natural gas exporter, while Libya has an analogous role in relation to crude oil. However, similarly to many other hydrocarbons producers, Algeria and Libya are having some difficulties in attracting foreign investors at a time when these two countries need state-of-the-art petroleum technology and financial resources to develop their petroleum assets.
In 2017 we saw a continuation of the upturn in upstream M&A which began in late 2016. The oil & gas industry has been through a sustained period of focus on cost cutting but, as the oil price stabilises, many players are now seeing an opportunity to refocus on growth.
Following some exciting world-class discoveries, the oil and gas industry’s eyes were all on the MSGBC Basin. Soaring to the top of the list as Africa’s most exciting new E&P hotspot, the basin was the new “cool kid on the block”. However, this excitement has recently been dampened by some disappointing results…here’s why you might want to hold back that judgement for now, and why the MSGBC Basin should still be on your radar in 2018.
The African oil and gas industry continues to evolve. Our clients are optimising efficiencies across the value chain, strengthening balance sheets and introducing new technologies, whilst continuing to navigate complex regulatory environments, geopolitical risk, disputes and market disruption. Our specialist Africa oil and gas team is helping our clients shape new strategies to continue to grow and deliver value to stakeholders.
North and East Africa will represent the main opportunities for growth within the industry and the continent and Egypt will certainly be at the forefront of this wave of opportunities.
Until we can make it easier for investors and local companies to play a more prominent part of Africa’s development story then the same old challenges and barriers to growth that we see today will exist long after even the natural resources are gone.
The growing environmental concerns about extractive industries like Mining and Oil & Gas industries need to be managed by a key player, who is able to follow its clients anywhere, at anytime with the best international practices in environment protection.
Today we have the luxury of choosing between several direct and indirect viable energy sources. Renewables and gas are two of these, and of course historically coal has been the dominant force. The decisive question we always face is “what is the optimal energy mix”?
When we talk about energy transition, what we are really talking about is a shift from a central energy supply (largely from fossil fuels), to a decentralised distributed model underpinned by technology. We are talking about a shift to digital and smart technologies.
A case study shows how advanced condition- monitoring technologies— plus analytical expertise— can optimize maintenance
of mission-critical equipment in offshore environments, while lowering costs and improving safety.