Improving crude oil prices have created a market and appetite for oil and gas projects in Africa.According to Kevin Hutton, general manager of BLT Projects, expectations are high that there will be an increase in exploration for offshore and in-shore drilling on the continent.“BLT Projects is a relatively new player in the oil and gas sector and we are currently building the business in this market,” he told Freight News. “The business has seen a need to have a more focused approach for BLT Projects, and being in Mozambique, the low-hanging fruit was naturally the oil and gas sector. We believe we have the capability and capacity to become serious players in this sector.”He said security continued to be the biggest challenge in the burgeoning Mozambican gas sector. Earlier this year insurgents caused havoc in the north Mozambican town of Palma, resulting in several oil and gas projects grinding to a halt.“Palma is a perfect example of what can go wrong if security is not taken into consideration,” said Hutton.With the insurgency generally under control following the deployment of troops in the town and region, hopes are high that oil and gas companies will return to their projects.“We believe the projects in Palma will start again in the new year,” said Hutton.Total’s LNG project is of particular significance. “This project will be the catalyst for other projects to kick off,” explained Hutton. “Angola, Ghana and Nigeria are good examples of how the oil and gas sector can be managed in Africa. There is further talk of other projects being considered, but most if not all of these have been delayed due to security issues in the north of Mozambique.”According to Hutton, despite these delays, the oil and gas sector is still growing in Africa, with new reserves continually being discovered. “Countries, however, need to find solutions to making these discoveries financially viable for the oil and gas industry,” he said.There was also a lot of opportunity for the logistics sector servicing oil and gas industries. “Currently, the J&J group will be offering a logistics solution link between Johannesburg and Pemba, including a distribution depot and warehouse – and at a later stage local deliveries. We have identified the need for a solution to further support our existing and future clients, both through Mozambique and at final destination in Pemba and Palma .”
