VENTURES AFRICA – Norway’s DNV GL, one of the world’s largest certification, inspection and advisory firms for maritime and oil and gas says Africa and Brazil are better for oil and gas exploration than the Arctic where exploration firms hindered by climate, spend 15 to 20 years to tap reserves.
Although it is estimated that the Arctic contains 20 percent of the world’s yet to be discovered hydrocarbon resources, opportunities have been limited for oil and gas firms in the region. Melting ice as a result of global warming has however changed this.
Regardless of the ease brought about by global warming, high costs and risks at a time several oil companies are cutting cost makes Africa a better exploration site.
More so, “any significant production will be 15 to 20 years away except for the Yamal (Peninsula), but that is onshore,” Henrik Madsen, DNV GL Group’s president and chief executive told Reuters.
He advised oil majors to invest in Africa as opportunities abound on the continent.
Africa has in recent times become a goldmine for oil and gas companies, with improved seismic survey techniques and better business environment, encouraging oil companies to explore opportunities on the continent.
This has brought about countries who can now boast of profitable oilfields, with Ghana, Niger, Uganda and Kenya presently armed with the ability to produce more than 100,000 barrels daily. Tanzania and Mozambique were recently trying to start exportation of gas from east Africa, according to Madsen. This signifies the myriad of opportunities available in the oil and gas industry in Africa.
Kenya will soon start producing oil after Tullow Plc and Africa Oil Corp. recently discovered commercial quantities in the East African country. The partners are working with the government on a plan to start field development and export pipeline construction in 2015 and expect to start pumping by 2016.
Uganda has also discovered up to 3.5 million barrels of oil, finding oil in 70 out of 77 drilled oil wells, a 90.9 percent success rate. The country also boasts of 500 billion cubic feet of proven natural gas reserves and plans to start crude oil production within the next five years.
Although some regions in Africa have more developed oil and gas industries, East Africa’s emerging industry presents a viable opportunity for oil majors as it offers reduced risks and reasonable costs. The attendant economic growth for the region is one thing Africa would be eager to behold.