Capital expenditure by oil majors in sub-Saharan African countries will drop by $100bn over the next five years, analyst firm Wood Mackenzie said at the Africa Oil Week conference in Cape Town on Wednesday. Nigeria and Angola will suffer most because their deepwater projects have the highest breakeven prices. As a result, Sub-Saharan African liquids production will decline to 2.6-million barrels a day by 2030, from 4.8-million barrels a day presently. "Governments in Sub-Saharan Africa need to revive the upstream oil and gas industry by offering attractive fiscal terms rather than look to increase state revenues in the current climate," Femi Oso, senior research manager for Sub-Saharan Africa at Wood Mackenzie, said. "Exploration cuts in the region will also contribute to a longer-term production slump as explorers have shied away from greenfield prospects, in favour of appraising known discoveries. However, the confirmation of the giant Owowo discovery in deepwater Nigeria shows th...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.