Contracting in Africa: where to watch in 2016
Demand for specialist expertise in a number of African continents is set to increase dramatically over the next few years as the business environment improves across the continent and as better infrastructure is developed.
The burgeoning African oil market, which collectively produced almost 8 million bpd, is expected to vastly increase in the coming years as countries like Ghana respond to rapid growth and the discovery of seven new oil blocks. And it’s the strength of emerging oil-producing nations like Ghana and South Africa that’s likely to contribute to the boost in demand for specialist contractors in 2016.
In the past five years, Ghana has seen over a 17-fold increase in production as the country ramps up its investment in infrastructure and expertise to boost output. With news that Ghana’s oil output could increase from 100 000 to 500 000 bpd between now and 2024, production looks set to soar. This means the oil-rich country could very soon be offering an array of exciting, well-paid job opportunities for contractors.
Other leading African oil producers such as Nigeria, Algeria and Angola continue to offer significant scope for future growth and are likely to remain a strong source of job opportunities. For those people looking at Africa as a potential place to work and live, these five countries are definitely ones to watch.
Leading the way
Looking to Africa’s growing gas markets and it’s clear there are a handful of countries leading the way in the continent’s natural gas production: Algeria, Egypt, Nigeria, Libya and Equatorial Guinea, which between them produced almost 190 billion m3 of gas in 2013, according to the latest data available. In order to digest this staggering figure, I’ll break it down: Algeria hit 78.6 m3 2013, while Egypt produced over 56.6 billion m3. Nigeria produced 33.7 billion m3, Libya produced 12 billion and Equatorial Guinea produced 6.9 billion m3.
However, each of these countries still has huge potential to significantly increase its output. For example, Nigeria currently ranks ninth in the world for proven natural gas reserves despite it being 27th in the global production table – it is the highest ranking African country with more than 5.13 trillion m3 available. Algeria is the second highest – with 4.5 trillion m3 in reserves – and Libya’s natural gas production capabilities put it 37th in the world.
The pipeline of job opportunities for internationally-mobile contractors to help maintain and develop these countries rankings is likely to remain strong as economies will seek to further exploit the plentiful reserves of this natural resource. And rapid advances in other parts of the continent – like Mozambique – will continue to boost demand for specialist contractors from across the globe this year.
Despite not yet featuring in the world’s top 50 gas producing countries, the discovery of extensive natural gas reserves in Mozambique should put it high on the radar of contractors looking for exciting new work opportunities this year. With proven gas reserves of 2.83 trillion m3 in 2014 – up from just 0.13 trillion known reserves the previous year, it is now recognised to have the 14th largest volume of natural gas reserves in the world and the third highest in Africa.
Boom in investment
As the boom in exploration and investment in countries like Mozambique continues, new opportunities can and will quickly gain traction. African governments have already started ramping up investment in infrastructure which will enable them to capitalise on current and imminent discoveries and compete with more mature markets in the Middle East and North Africa.
Neighbouring South Africa and Tanzania also offer prospects for gas industry specialists, with Tanzania set to rapidly increase gas production, and South Africa hoping to expand onshore shale gas development in the Karoo Basin, which covers nearly two-thirds of the country.
With fluctuating oil prices, and some localised political difficulties, Africa’s oil and gas industries are facing some challenges, but there are plenty of opportunities too. Though some of the markets I’ve touched on are more mature than others, each have their own unique selling points that contractors will want to consider before moving away. But with ever-increasing reserves being found and tapped into across the continent, these opportunities aren’t to be passed up in a hurry if you’re both globally mobile and have the relevant skills.
Adapted from an article written by James Alexander, Procorre
For more information please visit:http://www.procorre.com/
Read the article online at: https://www.oilfieldtechnology.com/exploration/14012016/contracting-in-africa-where-to-watch-in-2016/
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