Strategic Geographic position

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Oil and Gas Potential in Sub-Saharan Africa

Africa, particularly southern Africa, will realise significant opportunities across the oil and gas value chain as this industry develops towards its full potential.

Africa's economies are some of the fastest growing economies in the world, and while oil and gas activity will initially focus on exploration, as the industry matures other areas of the value chain will develop and play a greater importance (logistics, refining, wholesale and retail consumption) as domestic markets for oil and gas products develop.

Accordingly, to cater for the surge in activity, SAOGA's activities are focused on the upstream and midstream sectors of the oil and gas value chain.

South Africa as a Hub for Oil and Gas

Due to the established midtream and downstream   activities in South Africa as a result of the mature downstream industry, South Africa developed as a key  location for many local, regional and multinational oil and gas companies active in the value chain.

Recently, the successful exploration in Sub-Saharan Africa has resulted in increased activity in oil and gas in the region, and South Africa is well placed to serve as a permanent hub providing services and expertise for oil and gas in Africa.

Particular expertise and critical mass has been reached in several subsectors of the overall upstream and midstream value chains: Fabrication and Construction; Ship/Rig Repair and Maintenance; Distribution and Logistics; and Exploration and Production Services.

Strategic African Position

South Africa is geographically and politically well-positioned to be a base for supplying sub-Saharan oil and gas projects. Geographically  the country is on the southern tip of the African continent and provides easy access to both east and west Africa by sea and air.  Politically, South Africa is a founding member of the New Partnership for African Development (NEPAD), whose prime objectives are to elevate Africa's opportunities in the global economic arena and to enhance its full and beneficial integration into the global economy. It is also an active member of the African Union (AU), the Southern Africa Development Community (SADC) and the Southern African Customs Union (SACU). Its role as leader and partner in the African community provides South African-based companies with favourable access to opportunities in the region.  In particular, we have observed a growing trend in many of the local content initiatives in the African oil-producing countries preferentially requiring "African content" when local content is not available.  This is a natural outgrowth of the broader African political agenda of trying to foster more cooperation and capability within the continent as a whole.