The latest issue of Oil Review Africa digital magazine has analysed Africa which has managed to position itself as one of the world’s most competitive hydrocarbon markets, with countries such as Nigeria, Uganda, Kenya and Tanzania leading oil and gas pipeline projects
According to a recent Rystad Energy analysis, when it comes to offshore field sanctioning, there are around 80 projects worth a total of US$85bn in the global approvals pipeline for 2022. Of these, 10 are floating production storage and offloading units (FPSO), 45 involve subsea tiebacks and 35 are grounded platforms. Latin America and Europe are expected to hold around 24% each of the total offshore sanctioning values, with deepwater expansions expected in Guyana, Brazil and Norway following recent tax changes.
As Africa holds a massive base for natural gas, the continent has realised the benefits of infrastructure development to efficiently transport the resources as well as allow the proper utilisation of them across the continent. A number of cross-border pipeline projects are set to come on stream in the next few years, with some being already operational in the region.
Securing adequate funding is one of the main challenges to execute such massive infrastructure development in Africa. However, with ongoing developments in the region and upcoming projects, it will be interesting to see how government initiatives and regional cooperation can play a key role for the practical realisation of the continent’s oil and gas pipeline projects.
To read the full article, click on the latest issue of Oil Review Africa