However, it remains a frontier market, and challenges will. East africa oil and gas market growth overview 20172022. East africa regional cooperation in oil and gas 1 east african community, 2000, the treaty for the establishment of the east african community, pp. We offer peerless perspectives and insights on policy issues and technical innovation in the african oil and gas industry. Mar 29, 2016 the oil and gas investors interviewed by the 2015 global petroleum survey rated ghana as the secondbest oil and gas market in africa. Why the discovery of oil and gas will not change east africas fortunes photo. Major oil and gas operators are investing heavily in exploration and production in south and east africa. Ive selected a few to show you here, but you can see them in. Area reportsinternational africa and the middle east. East africas great rift includes four rift systems that promise to hold significant deposits of oil. Banks and financial institutions are expected to arrange 70% of the costs, while the remainder will be financed by the stakeholders, including the governments of uganda and tanzania and the jv partners. East africa gas oxford institute for energy studies. Bg groups assets in tanzania give shell another chance at east africas huge gas opportunity. The project is not included in the banks lending programme.
East africa is widely touted as one of the emerging hydrocarbon provinces of the 21st century. Wholesale gas price survey 2019 edition types of price formation mechanisms oil price escalation ope the price is linked, usually through a base price and an escalation clause, to competing fuels, typically crude oil, gas oil andor fuel oil. A flaring test at a well in hoima, western uganda, following oil finds. Area reportsinternationalafrica and the middle east. The latest round of petroleum exploration in east africa has seen major oil discoveries onshore uganda and kenya and giant gas accumulations offshore tanzania and mozambique. Tot has acquired oil and gas installations in east africa for an undisclosed amount, covering assets in kenya, uganda and tanzania. Sep 18, 2014 mozambiques gas investment in particular will be dependent on what future gas prices will be and this is changing quickly due to the oil and gas revolution. However, uganda is not alone in seeking to profit from. Introduction the oil and gas industry in eastern africa is quite a new sector. Crude oil pipeline project, east africa hydrocarbons. Brownfield most likely began in the latest jurassic or earliest cretaceous, and it continues today in the offshore parts of the assessment unit. The deloitte guide to oil and gas in east africa uniquely. Oil and gas africa gide is a leading international law. Take a look to get insight the kind of exploration, construction activity, and dealmaking taking place on a continental scale to see how the future of africas energy industries.
The position of oil companies toward east africa has changed considerably since. Tanzania, offshore exploration has become flavor of the moment and industry confidence was boosted in 2012 by. The deloitte guide to oil and gas in east africa uniquely structured 3 welcome to the 2014 edition of the deloitte guide to oil and gas in east africa. It will be launched by both infield systems and saoga at high profile regional oil and gas events in africa. Finance the advisory board finance committee will gather to shape compelling. Offshore south and east africa oil and gas map to 2020. Between large discoveries, an attractive regulatory structure and the ease of doing business, ghana represents a great bet for new investors in african hydrocarbons.
Offshore west africa oil and gas activity map to 2022 shows current and future oil and gas field developments offshore west africa, including. This, the last part of a series on oil and gas explores the development implications of these resources for east african countries. Key countries and opportunities in africas oil and gas industry. The oil and gas industry in kenya is governed by the petroleum exploration and production. Business intelligence this committee explores the latest reforms and policy changes that will determine which countries develop the most enabling environments for future growth. Potential impact on international investment in south africa. East market area africa oil corporation africa oil corp. Key countries and opportunities in africas oil and gas.
Each report includes sections on government policies and programs, environmental issues, trade and production data, industry structure and. Such skills and services are now used around the globe, delivered from a hub in north east scotland. This assessment is for conventional oil and gas resources only. The larger area that eia considers as east africa see africa by region map includes 21. East african gasoil limited eagol is an upcoming oil marketing company omc headquartered in mombasa. The east african rift basin system is one of the last of the great rift basins to be explored. Africa oil holds extensive exploration acreage in this exciting new worldclass exploration play fairway. Mar 10, 2010 early data compiled by industry consultants also suggest the presence of massive offshore oil deposits.
The offshore south and east africa oil and gas activity map to 2022 is supported by our media partner saoga south african oil and gas alliance and is scheduled for publication in october 2016. Total acquires major oil and gas assets across east africa. On february 20, the africa growth initiative at brookings and oxfam america live webcasted a multipanel discussion on the east african oil and gas boom. The inconsistency and pragmatic rule of jacob zuma of south africa and john. The eacop is a 1,445km crude oil export pipeline that will transport ugandas crude oil from kabaale hoima in uganda to the chongoleani peninsula near tanga port in tanzania pipeline construction land will be required to construct the east. Mozambique, tanzania, uganda, kenya, and madagascar. Those finds have spurred oil explorers to start dropping more wells in east africa, a region they say is an oil and gas bonanza just waiting to be tapped, one of the last great frontiers in the hunt for hydrocarbons. Adapted from a presentation given at the east africa petroleum province of the 21st century conference, the geological society, burlington house, london, 2426 october 2012. This report recaps the east africa regional forum on oil and gas management for inclusive and sustainable development in africa held on january 2324, 20, and jointly organized by the economic.
East africa has enormous potential as a market for oil and gas investment. Companies have largely adapted to a lowcost environment, which promises to be even more beneficial given the currently recovering oil price. In the world of upstream oil and gas, the emergence of a major new prospective area always creates a frisson of excitement. With just four years under our belt, we have branches in major towns in the country including nairobi, nakuru, kisumu and eldoret. Africa oil corporation has been exploring and drilling here, and prepared a report that includes a number of excellent maps and graphics of seismic data. American and african oil and gas players propose regulatory measures to ensure sustainability in response to covid19 and beyond. Oil production in the east africa rift valley faced nearly a decade of delays due to. East african oil maps and prospects crossed crocodiles. Finally, the oil products that are utilized 11% of primary energy, are. The downstream sector is relatively more developed as the networks for marketing and distribution of petroleum products has been built over time. It is projected to reach a volume of xx million by 2021, at an increase of xx percent since 2015. This essay analyzes the development of the oil industry in uganda and kenya and the natural gas sector in tanzania.
No commitment was therefore made to any party to fund the east african crude oil pipeline project. Large oil discoveries around ugandas lake albert in 2006 and subsequent gas discoveries offshore. Mar 07, 20 this report recaps the east africa regional forum on oil and gas management for inclusive and sustainable development in africa held on january 2324, 20, and jointly organized by the economic. Oxford energy forum, november 2012, page 12 mozambiques gas sector. East african gasoil ltd k ltd energizing east africa. At the start of production, uganda will take between 60 per cent and 65 per cent of the profit oil, but that is expected to reach 70 per cent as production progresses. Oil exploration in west africa inn investing news network. Explorations in east africa also started in the 1950s, but the discoveries in the 1970s by chevron. Oil and gas management for inclusive and sustainable.
Principles and procedures of development of east african standards september 2nd edition, 2012 eas catalogue 2009 pdf, 3. The scope, scale and spread of current and future oil and gas infrastructure development projects in east africa is positioning the region as a hotbed of oil and gas exploration, investment and development. This new regional analysis covers emerging developments in the oil and gas sectors in five east african countries. As a professional services firm with a long history of working with the oil and gas industry both private sector players and governments, deloitte is committed to making oil and gas a success story for this region.
The arrival of the international oil and gas industry offers hope of a better life for millions. Oil and gas in east africa introduction after decades operating in the shadow of north and west africa, east africa is finally emerging as one of the most significant players in the continents oil and gas industry. The sector is experiencing significant growth, with east africa emerging. Assessment of undiscovered oil and gas resources of the. As the local economy in aberdeen, scotland has grown since oil was discovered in the north sea, so industrial activities.
The middle east africa oil and gas supply demand outlook to 2025 offshore deepwater exploration key for production growth report has been added to research and markets offering. Though some exploration took place earlier on, with companies such a shell, involved in kenya in the 1960s or in uganda in the 1980s 1, a new frontier opened up during the last 10 years. Africa oil week is the leading oil and gas event for the continent, with over 1,800 key executives attending from around the world to. Africas premier report on the oil, gas and energy landscape. In some cases, coal prices can be used as can electricity prices. Oil discoveries onshore in uganda and kenya, coupled with worldclass gas discoveries offshore in tanzania and mozambique, mean that every potential.
Why oil and gas will not change east africas fortunes. Oil and gas in east africa upstream investors, and there is increasing focus on vital supporting infrastructure, including pipelines, refineries, port facilities and transport links. Deloitte east africa oil and gas deloitte energy and. Act, chapter 308 of the laws of kenya pepa and the petroleum. Geopolitics and is the editorinchief of the newsletter africa energy. Uganda revises oil and gas output date the east african. In the twelve months since our first edition, east africa has continued to hit the industry headlines and it seems safe to predict that this will continue for the rest of 2014. The state of oil and gas in east africa f or african oil and gas markets, the last few years have been turbulent.
East africa continues to develop as important gas hub. We deal with the import, export, distribution and retail of petroleum products. The new offshore south and east africa oil and gas map will present current and future oil and gas fields and their associated infrastructure. Since the first discoveries of crude oil and gas in africa in 1957 and 1958 in gabon, nigeria, and algeria, petrol companies have almost exclusively focused on the maghreb and the states that comprise the gulf of guinea.
Gas success along the margin of east africa, but where is. The west african offshore oil and gas industry has a history of exploration of more than 50 years, with international majors and smaller firms having held, and relinquished, licences all along the. Oil and gas in eastern africa policy center for the new south. The nepad infrastructure project preparation facility nepadippf has not provided financing to any private sector company for upstream oil or gas pipeline projects in east africa. According to eni east africa, the projects initiator and main operator, 5bn cubic metres of lng will be harvested here every year. Introduction a s sustainability has moved up the agenda across the globe, politicians, investors, corporates, and multinational funding bodies have taken note. The deloitte guide to oil and gas in east africa where. In the public sector, governments and intergovernmental organisations have drawn out long. The deloitte guide to oil and gas in east africa download the guide. Analysts at standard bank say kenya, uganda, south sudan, ethiopia, tanzania and. Offshore south and east africa oil and gas activity map, produced with support from media partner, saoga south african oil and gas alliance, was launched at the 21st africa oil week in cape town. Wholesale gas price survey 2019 edition types of price formation mechanisms oil price escalation ope the price is linked, usually through a base price and an escalation clause, to competing fuels, typically crude oil, gas oil and or fuel oil. Describing the situation of discoveries, reserves and actors in this vast zone in east africa is an exercise demanding constant revisions and updating given the rapid acceleration of explorations following the first discoveries that were commercially consideredprofitable. Membership of the africa oil week advisory board can be broken down into the following subcommittees.
East african petroleum fuels standards eac quality. Tanzaniaproject,carriedoutbytheeuropean union energy initiative partnership dialogue facility euei pdf 6. The independent tanzania president john magufuli and uganda president yoweri museveni file. Magufuli of tanzania demonstrate that political coercion still remains in some of the.
Though its main focus is ugandadrc and kenya, the case of oil producing south. The east african region is emerging as one of the most prolific oil and gas exploration sites in the world. Offshore west africa oil and gas map provides information about fields and reserves onstream offshore west africa by. Assessment of undiscovered oil and gas resources of the morondava province, east africa by michael e. Offshore south and east africa oil and gas activity map to. Satellite map showing east africa, where the usgs estimate that coastal areas of mozambique and tanzania could hold more than 250 tcf of gas and 14. Offshore south and east africa oil and gas activity map to 2022. For the companys kenya operations, pwc provides tax compliance services and advisory services including preparation of tax computations and filing of tax returns.
With africa oil week returning to cape town for its 17th edition in october 2017, weve put together this guide to 5 of africas biggest oil and gas projects. Natural gas in africa the frontiers of the golden age. Tullow, total and cnooc would prefer to construct an oil export pipeline to the east coast in the first instance, with export income used to finance any domestic projects. Most generated hydrocarbons migrated into cretaceous and paleogene reservoirs and traps. World petroleum resources project an estimate of undiscovered. East africa is the emerging hydrocarbon province of the 21st century but it is worth remembering that this success comes after six decades of unsuccessful exploration. Oil and gas boom in east africa countries promises riches.
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