UK Trade & Investment presented a varied session on petroleum investment opportunities in East and West Africa today, focusing on Kenya, Tanzania, Uganda, Mozambique, and Ghana.
Mrs. Wanjiku Manyara, general manager of the Petroleum Institute of East Africa, headquartered in Nairobi, said that having an industry association has helped to bridge the skills gap in response to industry needs. Training is offered in Kenya and other countries. "These are exciting times" for the E&P industry, East Africa, and governments are committed that “the best deals are sealed” and fast-tracked, she said. East African GDP is growing at 6% annually–higher than the rest of sub-Saharan Africa.
Eric Mwemba, UKTI Nairobi, said Kenya’s Ministry of Energy (MoE) is in the final phase of revising the E&P Act, replacing the original that has been in operation since 1986. IOCs work under production-sharing contracts in Kenya with 25% relinquishment clauses, 2-yr work obligations for onshore licenses, and 3-yr obligations for offshore licenses.
Eric Olanya reported new legislation in Uganda and principal agreement for a new refinery and 1400km crude export pipeline that was announced in a budget speech in June, to connect with the LAPSSET project. Olanya also reported that an memorandum of understanding (MoU) was signed by Uganda, Rwanda, and Kenya for a crude oil pipeline, a white products pipeline, and railways.
Frank Hagan-Brown, UKTI Accra, said Tullow Oil’s Jubilee project began producing in 2010 and has reached 104,000 bo/d. The Tweneboa–Enyenra–Ntomme (TEN) project is estimated to plateau at 80,000 bo/d after it comes online in 2016. Natural gas is on the way from the Western Corridor Gas Infrastructure Development Project, thanks to a loan from China’s development bank. The project will process offshore gas for LPG and fertilizer. Ghana's Oil and Gas Free Port complex is being developed by Lonrho plc, and will be the first visible onshore manifestation of the oil and gas industry in Ghana. The MoU is due to be signed soon, Hagan-Brown said.
Lorenzo Astegiano, UKTI Maputo, discussed the Mozambique market, and clarified that all operations and development are in the north, with Anadarko's and ENI's operations centered in Pemba, while all administrative work is done in Maputo, 2500km to the south.
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