BMI believe that the outlook for Angola’s oil and gas sector is looking positive. The optimism is based on production continuing to recover from the setbacks experienced last year also, Angola is attracting a large wave of investments at the moment due to plans for recent well discoveries.
BMI has said that sub salt discoveries along with the oilsands are improving the Congo’s regulatory framework and a new government programme to get new oil from old fields should raise interest in the industry in the future. The country is still well below its production peak of 310 00 bpd according to BMI, however a 30% leap in production is forecast for next year.
Gas remains a stranded commodity in the country according to BMI. Domestic usage and no formal plans for LNG are available. Gas is primarily used for enhanced oil recovery.
Looking downstream, BMI has said that the sector remains and investment desert. Plans for refineries are constantly announced, however, none are yet to materialise. Due to this the country is falling further in to the importer category for refined products.
BMI has said that the country’s oil output will see small gains over the next two years due to the success of smaller projects. The development of a 22 000 bpd refinery in Mbini was meant to be on track for a financial investment decision in 2012, according to BMI, however, there is still no news regarding the next steps in the project, nearly two years on. The government has however approached Sinopec of China about the construction of the facility. Sinopec would be allowed to take an ownership stake in the facility, once operational, if they agree.
Tanzania’s below ground gas industry looks promising, according to BMI, however, above ground it is a different story. This is because of an uncertain regulatory environment that is putting up hurdles surrounding future financial investment. Also, fears of resource nationalism and heavy taxes are causing major project delays.
Domestic oil and gas consumption is relatively limited, according to BMI, however consumption is expected to grow nation wide as the population expands and the economy develops. Oil consumption is expected to continue to outstrip gas.
Adapted from report briefings by Claira Lloyd.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/15092014/oil-gas-africa-bmi-summary-1263/