INTO AFRICA May 2018 Edition: Bouncing Back – African Oil and Gas

LAGOS (Capital Markets in Africa) – Welcome to the May 2018 edition of INTO AFRICA, a publication with fresh insight into Africa’s emerging capital markets. This month’s edition, titled: Bouncing Back: African Oil and Gas explores oil and gas laws and regulations across African countries as well financing options for oil and gas projects.

With the oil price pushing through to the US$70 mark, and further confidence that the price will remain more stable in 2018. As a result, 2018 is set to see an increased level of activity in Africa. As well as bringing a greater level of exploration activities by international oil companies (IOCs). The renewed confidence in the market is leading African jurisdictions to actively compete to attract investment from foreign investors, as well as carving out a more active role for National Oil Companies (NOCs). Established jurisdictions (such as Nigeria and Angola) are being joined by new oil jurisdictions (in particular, Senegal, Gambia, Liberia, Kenya, Uganda and Ghana) and one expects to see the establishment of new cross-border exploration/production zones.

In term of availability of finance, there will remain tightened controls from international commercial banks which will make it more difficult to raise finance. Banks will remain active (but cautious) and lending will be relationship driven with priority given to projects in “easier” jurisdictions. Export credit agencies and DFIs remain a key to financing the large-scale oil and gas projects and there is a notable trend of increased availability of Chinese financing for such projects.

We open this edition, with a discourse from DEREK BOULWARE (Senior Manager, PwC Energy Advisory Operations South Africa) where he gives insight into African oil and gas sectors and of the view that the African oil & gas industry continues to play catch-up with the rest of the world. Also, he advised that oil & gas organizations need to rethink the way they embrace change to their benefit.

PLEASE CLICK TO DOWNLOAD – INTO AFRICA PUBLICATION: MAY 2018 EDITION.