Africa has never been considered an easy destination to do business in relation to many of the other continents globally. Often fraught with terms like ‘nationalisation’, ‘politically risky’, ‘poor infrastructure’, ‘skills scarcity’ and ‘corruption’. Yet Africa is now being thrust onto the global Oil and Gas centre stage, as an untapped resource. The NG Oil & Gas Summit delegates examined the industry and Africa’s ever increasing importance.
Africa has no shortage of challenges when it comes to international companies looking to invest. However, with Africa’s vast untapped reserves and the growing demand from India and China overcoming these challenges is becoming imperative.
The legacy associated with resource extraction has been a significant obstacle to international investment in the oil and gas industries. Despite these vast reserves, Africa remains poor, driving the perception that international oil companies (IOC’s) have profited whilst host countries have suffered.
This has forced IOC’s to assume more social and environmental responsibility in the countries in which they operate, forcing these companies to play the role of de facto government in isolated areas. To further add to this, many countries in Africa remain quite militaristic and are faced with significant unrest, further straining the social and environmental responsibilities placed on IOC’s.
Read more . . . . The oil and gas business in Africa – Drilling for success