A recent report by Visiongain has highlighted the growing attractiveness of East Africa for oil and gas investors
The ‘East African Oil & Gas Market 2015-2025’ report stated that new discoveries and increasing reserve estimates meant the region was “fast becoming one of the world's most interesting oil and gas hotspots”, forecasting “tens of billions of dollars of investment over the next decade”.
Only a fraction of East Africa, which the report pointed out is around six times the size of the North Sea, has currently been explored for fossil fuels, with fewer than 600 wells having been drilled there to date.
A flood of outside investment in the region, which witnessed oil and gas capital expenditure (capex) of US$4.19bn in 2015 alone, will therefore drive growth in the sector across East Africa over the next decade, the report claimed.
Ethiopia’s oil capex is expected to rise from US$47mn to US$432mn by 2025, with Kenyan oil and gas capex to hit US$482mn this year.
Mozambique and Tanzania are also both expected to benefit from liquefied natural gas (LNG) exports, particularly given their “proximity to Asian demand centres”.
Visiongain is a UK-based provider of business intelligence for a number of industry verticals, including energy, telecoms and construction.
