Oil and gas industry offers major opportunities

SOUTH Africa is ideally positioned, not only
from a geographical but also cost perspective, to
capitalise on the tremendous opportunities that
exist in the mainstream supply chain of goods
and services to Africa’s oil and gas industry, says
Mervyn Cookson, Safcor Panalpina’s Western
Cape regional director for operations.
What is more, South Africa is able to offer
competitive and quality products to the
continent’s oil producing nations.
Pointing to the significant opportunities
for growth that exist, Cookson says: “The
involvement of the company’s oil and gas
division has transcended oil and gas upstream
producers to infrastructural development and
retail support, particularly in West African
countries.”
Africa’s growing importance as a source of
oil for Western economies was underscored in
Cape Town last year by Senator Rodney Ellis, a
commissioner on the US Commission on Energy
Policy (NCEP), who said the USA would ensure
that direct foreign investment into Africa would
continue and translate into revenue.
“The vast influx of wealth and investment
into these countries could potentially transform
into economic growth and political capital for
the region as a whole – providing sustained
growth and strength not only for these nations’
economies but in the opportunities and
possibilities for the people of this region for
generations to come.”
Ellis, alluding to the anticipated increased
world demand for oil – up 50% from 78 million
barrels a day to 120 MBD by 2025 – said
spare capacity was both extremely limited
and concentrated in the Middle East, leaving
world markets extremely vulnerable to shortterm
disruptions, driving prices upwards and
increasing general volatility.
The US plans to replace more than 75% of
its oil imports from the Middle East by 2025,
investing more than US$10 billion a year in oil
activities in Africa and could up its imports from
central Africa from 16% to 25%, by 2015.
Current oil production by African countries,
with total oil reserves estimated at 80 billion
barrels, or 8% of world crude reserves, is as
follows:
● Nigeria – 11th largest producer in the
world – 2.5 MBD and oil reserves of 32.5 billion
barrels.
● Angola – 2nd largest producer in Africa.
Oil production is projected to reach 2 MBDs by
2008.
● Sudan – produced 500 000 barrels per
day in 2005, with reserves of 563 million barrels.
● Equatorial Guinea – has proven oil
reserves of 1.28 billion barrels and produced 371
700 barrels per day in 2004.
● Gabon – has proven reserves of 2.5
billion barrels and produces about 230 000
barrels a day.