South Africa is well positioned to take advantage of the project opportunities leveraged off its strategic geographic position, its well established industrial base and growing track record of oil & gas suppliers and service providers.
Oil and Gas Overview
Strategic Geographic Position
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.
Established Upstream and Midstream Activity
Two catalysts spurred the development of South Africa's upstream supplier base. Firstly, the development of the South Coast offshore infrastructure starting in the late 1980s led to the establishment of significant South African capacity to fabricate and provide a variety of technical services to the industry. Many of the global service companies also established South African operations to service these developments.
Overview of Oil & Gas in the Sub-Saharan Africa Region
Sub-Saharan Africa is a vast region of approximately 24.3 million square kilometers. Geographically, it is the area on the continent of Africa that lies south of the Sahara Desert. Politically, it comprises of 49 African countries that are fully or partially located south of the Sahara (excluding Sudan).
Sub-Saharan Africa - The next 20 years
Over the next 20 years Sub-Saharan Africa will see significant changes in the upstream and midstream sectors of the oil and gas value chain. Included in this section is an examination of current Oil & Gas activity and an assessment of proposed future Oil & Gas activity over the next 20 years.
Upstream Oil & Gas in South Africa
Oil & Gas Statistics
At present, South Africa does not have significant proven oil and gas reserves and produces oil and gas from coal and imported crude oil. The relative under-utilisation of gas is as a result of the abundant coal resources in the country that allowed South Africa to produce petroleum and by-products as well as electricity cheaply from coal.
Major Projects in Sub-Saharan Africa
These projects underscore substantial investments and advancements in Sub-Saharan Africa’s oil and gas sector, demonstrating the region’s potential to meet local and global energy demands.