There have been some significant oil and gas discoveries across East Africa, primarily in Mozambique, Tanzania, Kenya, and Uganda and have propelled East Africa from the minor league to a global leader in hydrocarbon discoveries for the running ten years.
Here are six trends in the East African oil and gas industry worth watching this year and throughout the decade.
Number One: Competitive Regulatory Reforms
With oil prices being low for a while, everyone is competing for investment.
In 2020, you are going to see East African countries are restricting and review their regulatory frameworks to ensure they serve domestic development priorities, remain attractive to investors. And ensure a faster-approved permit in your hand so you keep your rig moving and your project on track.
Number two: Oil and Gas Leadership Skills Gap
Despite all downsizing and cost-cutting, oil and gas companies now place a huge premium on productivity and high performance from its workforce.
The key shortage in East African oil and gas is one of the qualified personnel with skills and expertise to deliver productivity and high performance needed. There are simply not enough oil and gas leadership skills to supply all the demand.
You will not be able to hire skills or quickly enough or insufficient volume to deliver productivity and high performance required.
If you were a young man in Uganda, you know that you have classrooms, you have teachers but you have limited equipment and state-of-the-art facilities such as a seismic laboratory.
So upon graduation, you don’t know how to utilize software being used in the oil and gas industry. You are also unable to use software to do seismic acquisition design. So you become a local champion but you can’t compete on a global scale.
However, with recent low oil prices and following technological advances in the oil and gas developing and training your youth team and experienced workers is the answer.
The theme of enriching local experience and move our “abundant people” from just followers to top performers are not only political sensible but also offers ways to lower operating cost, improve productivity, regain public confidence and feed up the labor working market with top-performing workers for the shifting to industrialization.
Number three: Enhanced regional co-operation
East Africa has realized that collaboration is their future. You have seen what happened in East Africa since 2016. Uganda and Tanzania are planning to build a 1445 kilometer pipeline that will transport crude oil from Hoima in Uganda to Tanga port in Tanzania. A plan to export Tanzanian gas to Kenya is also being explored.
Number four: Growth of East African Content
Following the successful implementation of oil and gas projects, it encouraging to see now, East African operators are moving forward to replicate the success of these projects elsewhere in Africa.
For example, Canada based company Orca exploration which operates the Songo Songo gas field in Tanzania under its subsidiary, Pan African energy Tanzania (PAET) is seeking to expand Company’s Integrated Gas Business elsewhere in Africa. As the East African region strengthen its local content. This trend will accelerate
Number Five: Expect High Gas Demand
East Africa’s gas demand is expected to grow in the coming years. This is driven by increasing industrialization and power demand in the region. In its latest announcement, Canadian company Orca exploration operators of the Songo Songo field in Tanzania, says that it expects the demand of gas from the Songo Songo field to grow. This is driven by the expansion of gas-fired power generation, industrial users and expected start dates for new gas-fired generation. As Mozambique and Tanzania continue to capitalize on newly developed domestic suppliers of natural gas, this
Number Six: Technology Transformation to drive efficiency
Technologies like the internet of things, machine learning artificial intelligence and robots allow the oil and gas industry to address cost and improve productivity. Technology is transforming the entire oil and gas industry. From upstream through transportation and storage to downstream utilization and finance
East Africa’s oil and gas sector is poised for further growth. The region has an explosion in hydrocarbon and then the governance of East Africa is looking to take advantage of this.