Piracy threat dims attraction of oil and gas finds in Africa

Oil and gas finds across Africa continue to draw investors despite some major threats such as piracy off the continent’s coast and political instability. According to Patrick Mair, an analyst specialising in Africa for Control Risks, a global risk consultancy, there are some major opportunities in the oil and gas sector. “In Mozambique there is a major oil and gas exploration programme under way although it is not likely that we will see any new licensing rounds taking place this year. “An area of concern that is being highlighted as risky for investors in Mozambique is the threat of piracy. The Mozambican naval capacity is weak and while South Africa and Tanzania have pledged to help there is unease locally about the presence of other countries’ naval fleets in their waters,” he said.