WITH nine of the top 20 new oil discoveries in 2015 to be found in Africa and 19 African countries now afforded the title of “significant producers”, there are ample opportunities throughout the supply chain that should generate excitement within Scotland’s oil and gas industry.
Scotland is of course acknowledged worldwide for its expertise in the oil and gas sector - particularly in subsea, digital offshore, decommissioning and training - but Scottish companies only account for a fraction of the 500 international operations currently participating in Africa’s hydrocarbon development.
Whilst it is an undoubtedly challenging environment, the potential problems are by no means insurmountable with exceptional rewards for those ready to take a risk and engage, as shown by the numerous success stories.
With Africa no different in regards to the current emphasis across the industry on cost reduction, Scottish innovation, technology and training has an opportunity to be at the forefront.
Governments across Africa have recognised that changes in attitudes and perception are vital for attracting the expertise needed to realise the continent’s potential, which is reflected in proven oil reserves having grown 120% in the past few years, from 57billion barrels to 129billion barrels, with at least another 100billion barrels offshore.
With this in mind, a number of governments have rewritten and updated oil codes, streamlined and introduced enhanced transparency to licensing rounds and centrally held contacts, looked to open up and develop talent at National Oil Companies and reassessed the rules and law around tax and repatriation of profits.
In short it is becoming increasingly clear to governments on the continent that if they want to attract new companies to their oil and gas sector in these challenging times they must offer an attractive environment for business which has the potential to make this a golden moment for those willing to look at the potential.
With a view to further exploring and developing opportunities for Scottish firms to Africa, the Scotland-Africa Oil & Gas Forum will be held in Aberdeen on November 24.
This will be the first major event in Scotland to bring African petroleum ministers, NOCs and the CEOs of indigenous and international private sector organisations to Aberdeen, the “oil capital of Europe”.
The forum focuses on opportunities for investment and partnership in developing Africa’s own oil and gas industry, which extend across the sector, from E&P and oilfield services through to the development of associated infrastructure, the monetisation of newly made discoveries (e.g. gas-to-power solutions) and in skills transfer and training.
Scotland Africa Business Exchange (SABE) is delighted to be hosting this inaugural event in partnership with Aberdeen & Grampian Chamber of Commerce.
I hope that many of the Chamber’s members will be able to attend and will benefit from the unprecedented access to decision-makers from across the region that the forum will offer.