The latest Price Water House Coopers (PWC ) report has revealed a positive outlook for Africa’s oil and gas sector despite difficult operating and economic headwinds.
The report released at the ongoing 25th Africa Oil Week conference, in Cape Town, South Africa says Companies have adopted to a low-cost environment, which promises to be even more beneficial given the current recovering oil price.
“Africa’s oil & gas companies have weathered the downturns and capitalised on the upswings focusing their efforts on new ways of working, reducing costs and utilising new technology,” Chris Bredenhann PwC Africa Oil & Gas Advisory Leader said.
As the oil price is steadily rising towards pre-collapse levels, the outlook for the industry is hopeful.
“It is, however, important for companies to avoid falling into the cost inflation trap that could eat into the profitability gains that should follow from the rising oil price. Keeping up capital discipline and further improving productivity will yield sustained results for the industry,” Bredenhann adds.
The report reveals that despite positive developments, the oil & gas industry still faces numerous and persistent challenges around talent shortages, regulatory uncertainty, political instability, corruption and fraud, and a lack of infrastructure.
PwC’s Africa Oil & Gas Review, 2018 examines what has happened in the last 12 months in the oil & gas industry within the major and emerging markets.
This edition focuses on the expert opinions of a panel of industry players from across the value chain who share their views of oil & gas in Africa.
At the end of 2017 the main oil an gas contributors continue to be Nigeria, Angola, Algeria and Egypt.
Libya also increased its production by 102.9% in 2017, placing it as the fourth-largest oil producer in Africa with an 11% share moving Egypt into fifth position.