SPECIAL FEATURE
Exploration could unlock great value for Africa Gas exploration is leading the way, but oil and mining are attracting international interest. Africa Oil & Gas State of Play (November 2018). Deloitte predicts a 78% increase in exploration expenditure in African oil and gas between 2018 and 2025. This prediction was made before the year of the Coronavirus but there is every reason to suppose that countries and companies will support this trend. With global demand for socalled “battery minerals” on the rise in the era of the electric vehicle, African mining is starting to receive increased levels of exploration funding. There are 170 companies in Africa which are listed on the Australian securities exchange, ASX. The number of African countries where successful exploration for oil and gas has taken place continues to rise. It now stands at 28, with new reserves unearthed in Ghana, Niger, Mozambique, Uganda, Kenya, Senegal, The Deepsea Stavanger drilling rig has made two big Mauritania, South Africa and Tanzania. discoveries off South Africa’s south-eastern coast. Total New finds in the oil and gas sector have E&P South Africa is the lead shareholder in a joint venture significant downstream repercussions. investigating the block. Credit: Anton Swanepoel. Fertiliser plants and refineries become viable, for example. A lack of exploration not only he large differences between inhibits expansion, it also reduces the life Africa’s proven resources and the of an existing mine. The global figure for amount of production presents clear mining exploration in 2019 was around opportunities, both for host countries $9-billion and although this will be reduced and for extractive companies. in 2020, it is almost certain that Africa will Where Angola’s gas resource is 32 792.4-billion attract an increased share. In 2019 Africa was cubic feet (bcf), production is currently below 200 bcf. ranked fourth in the world, with $1.1-billion, Nigeria’s production of 671.59-million barrels of oil is behind Latin America ($2.6-billion), Australia significant, but the resource of 30 079.99-million barrels and Canada. remains vast. These figures are taken from Deloitte’s
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AFRICAN BUSINESS 2021
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