Conducive regulatory environment could trigger more oil and gas exploration
Analysts say the withdrawal of the contested Minerals and Petroleum Resources Development Amendment Bill in August is a good start
Cape Town has hosted two African oil- and gas-related trade fairs in the past four months, and with each it has become clearer that when it comes to this booming industry SA is a mere blip on the radar. But elsewhere on the continent, big things are happening. Though persistently plagued by chronic issues such as corruption and poor infrastructure, African nations such as Gabon, Angola, Tanzania, Congo-Brazzaville, Uganda, Ghana and beyond have promising oil and gas resources that are drawing foreign investors’ eyes. Nigeria, with some 30-billion barrels of estimated oil resources — enough to meet SA’s current oil needs for the next 134 years — continues to draw investment despite an unattractive regulatory environment. Research by Deloitte shows there have been 20 foreign direct investment (FDI) projects in the country since 2010 and $15.5bn in capital investment. In SA’s neighbour to the north, Mozambique, the offshore Rovuma basin is home to the world’s most significant gas disco...