Significant gas discoveries in Tanzania and Mozambique have put East Africa in the global spotlight, according to DHL’s executive
Steve Harley, president of energy sector at DHL, said that while Angola and Nigeria have always been the most notable producers within the sub-Saharan region, oil and gas activities in East Africa are now creating a stir amongst global exploration companies and potential investors.
“Oil discoveries in Uganda and Kenya have also added to the excitement in the sector as new players look to enter these markets, including some of the largest independent and international oil companies, otherwise known as the super majors, who are now also witnessing the potential in this region,” he added.
PwC’s Africa Oil & Gas review titled From promise to performance released in June 2013 reported that Africa currently supplies approximately 12 per cent of the world’s oil and boasts untapped reserves estimated at eight per cent of the world’s proven reserves.
According to the DHL head, in addition to the developments in East Africa, Namibia and South Africa are also on the radar of investors within the sector. “South Africa, in particular, is receiving much attention mostly because of the potential of shale gas in the Karoo Basin, but also because it has a long and largely unexplored coastline, off which many believe large hydrocarbon fields may exist. As a result of the region’s potential, there are several offshore drilling exploration expeditions currently being planned in South Africa by the major oil companies.”
With the ever-increasing need for energy in Asia and in particular China, many of these countries are positioning themselves strategically in Africa as they seek to tap into new resources to support their growing energy needs.
“Despite the significant developments in the renewable energy sector, the world’s dependency on hydrocarbon-fuelled energy resources will continue for many years to come. According to the BP Energy Outlook 2035 report, global energy consumption is expected to rise by 41 per cent from 2012 to 2035, and that 95 per cent of that growth in demand is expected to come from the emerging economies.”
Harley said that across the globe, existing and previously significant oil reserves are being depleted and so the need and desire to explore new geographies and develop new technologies to reach and extract difficult oil and gas reserves becomes ever more apparent.
The president added that DHL is also beginning to witness many exploration companies, as well as the oilfield service companies, outsource non-core functions within their own supply chains.
“This is creating opportunities for small and medium enterprises to provide products and services required to support oil and gas operations locally. The knock-on effect can, therefore, be game-changing for any single country or region in terms of economic development. The importance of this outsourcing and localisation trend cannot be underestimated.”
The company is also witnessing increased levels of collaboration between African countries particularly in East Africa in countries such as Kenya, Uganda, Tanzania and South Sudan.
“At DHL, we work closely with our customers to optimise their complex supply chains and manage logistics costs better, so that companies can focus on their core activities. And, our team applies the same exacting HSSE and compliance standards as the industry itself. We have been operating in Africa since 1978 and our unrivalled footprint is only rivaled by the size of our air network — we are the only logistics company to operate our own aircraft in Africa which currently consists of 14 dedicated aircraft, servicing all corners of the continent. When it comes to the oil and gas sector, it rings true, that ‘Nobody Knows Africa’ like we do,” Harley concluded by saying.
