African Oil and Gas: Potential and Prospects

Africa has emerged as a major investment hub for oil & gas industry over the past five years. The future prospects of African oil & gas looks promising but there are issues like corruption, theft, stringent regulations and limited infrastructure which are severely inhibiting oil & gas development in Africa. This article focuses on the current scenario and future prospects of African oil & gas industry. Current Scenario: Africa is emerging as the new hub for oil & gas activities and attracted a record FDI in oil & gas worth USD 43 billion in 2013. The investments are expected to increase further in future as more reserves are discovered. More than 500 oil & gas companies have been exploring Africa. The reserves for both crude oil and natural gas are expected to increase with newer discoveries. The continent is also expected to emerge as a global shale player with recent discoveries of shale reserves in Libya, Algeria and South Africa. In 2013, six of the world's top ten discoveries were made in Africa. Author: Rajesh Mohan Rana