Africa likely to experience oil and gas boomAfrica's energy industry could see a major boost in the coming years, a fresh study by PriceWaterhouseCoopers has suggested. Mozambique and Tanzania were highlighted as the countries with the most potential.
Africa's energy industry could see a major boost in the coming years, a fresh study by PriceWaterhouseCoopers has suggested. Mozambique and Tanzania were highlighted as the countries with the most potential.
A study released by PriceWaterhouseCoopers (PwC) on Wednesday concluded that Africa had the potential to experience a major mid-term energy boom.
The survey forecast demand for oil on the continent would "rise significantly" over the next two decades, driven by larger populations, urbanization and the emergence of a wealthier middle class.
PwC noted that six of the top 10 global discoveries in the oil and gas sector in 2013 were actually made in Africa, with more than 500 companies currently exploring deposits there.
The study specifically mentioned large gas finds in Mozambique and Tanzania that could turn East Africa into a force to reckon with in the global energy industry.
But the report's advisory leader, Chris Bredenhann, added that investment opportunities were still often marred by lingering challenges of corruption, lack of infrastructure and regulation.
Nearly nine million barrels of crude oil were produced in Africa daily in 2013, with more than 80 percent of it coming from established players such as Nigeria and Libya. The gas sector was even more concentrated, with nine-tenths of annual production volumes coming from Nigeria, Libya, Algeria and Egypt.