The 2021 outlook for the African oil and gas sector appears weak on new project sanctions, but relatively stronger for jobs and drilling markets on the back of ongoing projects initiated before the outbreak of the Covid pandemic.This is according to the latest report by the African Energy Chamber which found Capex spending for 2020-2021 had been significantly reduced in the past few months to only about $60 billion due to project delays and cost-cutting measures. Before Covid-19 this figure was estimated to be about $90 billion.According to NJ Ayuk, African Energy Chamber executive chairman, outside Covid-19, regulatory matters also delayed major projects in Nigeria, Kenya, Uganda and Tanzania.“The African Energy Chamber believes that the short-term outlook can be remedied by applying more competitive fiscal regimes that can help unlock 4.4 billion barrels of liquids and $100 billion of additional investments by 2030,” said Ayuk. “Curbing f laring and monetising gas will help improve the carbon emission profile of African petroleum production which is currently bottom tier among the continents, while developing gas to power infrastructure will increase access to affordable energy to all sectors of the economy.”The Chamber maintains that gas to power is key to unlocking Africa’s industrialisation. “Africa’s gas industry holds enormous potential,” said Ayuk.
