#AfricaOilWeek: Africas offshore oil & gas rebounds
Africas offshore oil and gas industry has seen tough times in recent years, but the offshore industry is becoming more dynamic again.
With the oil price back at levels last seen in late 2014, and oil company coffers swelling, Africas leading hydrocarbons producers are hopeful that they can draw investment back to the continents upstream oil and gas sector after some lean years. Both Nigeria and Angola, Africas largest oil producers were already finding it tough to launch large offshore oil developments before the oil price nose-dived from over $110 a barrel in mid-2014 to below $30/b in early in the following year.
In August 2018, Nigerian crude production averaged around 1.85m barrels a day (b/d), while Angolas averaged 1.38m b/d, according to Opec data. Both countries are producing less than past peaks over 2m b/d for Nigeria and around 1.8m b/d for Angola. Nigerias failure to nail down new legislative and financial frameworks for exploration and production agreements, along with the ever-uncertain security situation in the oil-rich Niger Delta, had already prompted some of the majors to scale down operations in the country.
Meanwhile, Angolas state energy firm Sonangol was finding it hard to stimulate sufficient fresh exploration to replace fast-depleting reserves of existing developments, not least because of the high cost of operating there. Both countries oil sectors were also tainted by a lack of transparency and the impact of oil sector-related corruption scandals. In t....