The Oil and Gas Industry in Africa

oil and gas industry africaMany of our clients sending workers into Africa are investing in the oil and gas industry. This urged us to take a closer look at this industry in Africa today.

Africa is an oil and gas powerhouse

The oil and gas industry in Africa is anything but small. Africa account for nearly 10% of global oil production and 6% of global gas production. Most of this comes from Nigeria, Libya, Egypt, Angola and Algeria.

These percentages are set to become even bigger in future. No less than 11 of the top 20 oil and gas discoveries since 2014 have been drilled in Africa. These discoveries have seen East Africa emerging as a new player in the global oil and gas industry. Most notably, Mozambique and Tanzania.

The industry is not without its challenges

Oil prices have seen a strong decline over the past year. The recovery is predicted to be slow and oil prices are said to remain low over coming years. As a result, the development of emerging economies and markets are hampered.

Then there are the uniquely African challenges. The top three are:

  • Regulatory frame work uncertainties.
  • Corruption.
  • Poor infrastructure.

These have been highlighted as challenges as far back as 2010 and, according to industry experts, have not seen much improvement since then.

Stakeholders are focussing on solutions

At the 22nd Africa Oil Week conference, held from 27 to 30 October 2015, oil and gas stakeholders discussed the potential of the African oil and gas industry. Investment opportunities presented by the industry were also discussed.

At the same time, stakeholders focussed on finding solutions to managing the effects of the lower oil price and resulting repercussions.

How we can help you with employing workers in the oil and gas industry in Africa

Whether it’s now or in the future, remember that Intergate can help with sending workers into Africa. Make an enquiry online or call either:

Cape Town: +27 (0) 21 424 2460

Johannesburg: +27 (0) 11 234 4275

Our agents have successfully assisted hundreds of South African employers and they can do the same for you.