With the recent significant reserves found in Ghana, nearly all the East African countries, and almost every “nook and cranny” of the continent has caused an international interest that is mounting. This is the beginning of something big and those that want to be a part of it are already looking into Africa’s windows of opportunities.

Oil and Gas Deals in Africa

It is a well-known fact that an era of signing deals has come in Africa. Many international companies
are beginning to knot their deals with the continent. In January this year, for instance, an Italian gas and oil giant ENI announced it has signed a cooperation accord with its Chinese peer PetroChina, covering China and international prospects, especially in Africa.

Chevron, ExxonMobil, Total and many other multinational oil companies are not left out in these mega-deals, as the opportunities still seem untapped in many African countries!

Prospects of Renewable Energy in Africa

Sizeable renewable and new energy resources are available in Africa. And, surprisingly, these resources are being underexploited. Only about 10 percent of the continent’s hydro potential has been harnessed.

The Economist Intelligence Unit (EIU) was established in 1946 to give industry, management and country analysis. Its recent studies of 2010 predicted that fifteen out of the twenty fastest-growing economies in the year 2010 would come from the continent of Africa. And that Africa’s energy sector is on the edge to lead the way—with a vigilant eye on renewable energy.

Geothermal power is predominantly concentrated in eastern Africa. However, many fragmented spots of high-intensity geothermal potential have been found across the continent. There is huge potential for geothermal energy in Great Rift Valley—a place with approximately 6,000 kilometers length, spanning several countries in East Africa including Djibouti, Ethiopia, Eritrea, Kenya, Uganda and Zambia.

Existing and Upcoming Renewable Energy Initiatives in Africa

The world’s third biggest fully completed renewable energy project in the year 2010 was in Kenya, Africa. That’s the expansion of the Olkaria II power plant by 35 MW, which increased the plant’s total capacity to 105 MW, now the largest geothermal plant in Africa.

Major wind projects are in Egypt, and others are near completion in countries like Morocco. Many are still under construction in Ethiopia and Kenya.

Hydropower is also a potentially powerful resource for many countries such as those in East Africa; solar continues to make headlines with the Desertec Initiative in North Africa and other projects throughout southern Africa are gaining momentum; and biofuels is on its way to being commercially viable in Ghana, Malawi and Mozambique – just to name a few.

Africa’s Renewable Energy Devlopment Plans

The Energy Commission of Nigeria (ECN) said the country is planning to produce about 15903 MW of electricity from renewable energy sources by 2015. A report by the technical committee set up by Federal Government to evaluate the country’s renewable energy potentials said the nation has about 15 sources from which it can expand its existing power generation capacities. These sources include the wind, biomass, hydroelectricity, tidal, wave, solar, geothermal, compressed natural gas, radiant, wood and so on.

According to the Vanguard Newspaper’s February 5, 2011, report, a Nigerian firm, Quintas Renewable Energy Solutions was named by the Climatology Division of the World Bank as one of the 10 inventors selected across the world for contributing towards reduction in carbon emission through their products in 2010. This further confirms that the continent of Africa is leading the way in renewable energy development.

According to reports from the World Bank, Egypt’s greenhouse gas emissions have been among the fastest growing in the world. By 2020, Egypt hopes to generate 20 percent of energy from renewable sources. It aims to realize a 7200 MW wind-power capacity, to cut vehicle emissions through improved public transportation, and to make industry more energy efficient.

The International Renewable Energy Agency (IRENA), an intergovernmental organization for promoting the adoption of renewable energy worldwide, reports that to date 148 states and the European Union have signed its statute; amongst them are 48 African, 38 European, 35 Asian, 17 American and 10 Australia/Oceania states. This means Africa constitutes more than 32 percent of IRENA’s membership—a further confirmation that the continent has serious plans for renewable energy.

Africa is tremendously endowed with myriad oil and gas and new energy opportunities that can sustain the world. Savvy investors with foresight are tapping into these opportunities. We are excited to witness the realization of energy opportunities in Africa—as this era provided the promise of prosperity, like never before.

Oil and Gas Natural Reserves

Over 50 out of the 61 territories in Africa have oil deposits! This is a staggering fact that will amaze many, and something many investors will celebrate! Research showed Africa had a total of 117.064 billion barrels of oil reserves, as of January 1, 2009. This figure represents approximately 9 percent of the world’s total oil reserves – 1,342.207 billion barrels. Africa’s natural gas reserve is also staggering: 494.078 trillion cubic feet, a figure representing about 7.9 percent of the world total – 6,254.364 trillion cubic feet).

largest proven oil reserves in Africa

Libya, a member of the Organization of Petroleum Exporting Countries (OPEC), holds the largest proven oil reserves in Africa, followed by Nigeria and Algeria.
Insight and analysis of the most salient and topical trends and events in the African oil and gas industry are very essential for prospective investors. Gigantic deposits of oil were reported to have been discovered along the shore of Lake Albert in Uganda. Ms. Sally Kornfeld, a senior analyst in the office of fossil energy was reported to have commented on Uganda’s oil reservoirs in the same sentence as Saudi Arabia. She said, ”You are blessed with amazing reservoirs. Your reservoirs are incredible. I am amazed by what I have seen, you might rival Saudi Arabia.”

Oil deposits are still being discovered in many parts of Ghana. The Ghanaian oil deposits are so large experts are becoming concerned how to manage the anticipated massive revenue from this resource in a progressive and transparent way. This Ghana deposit is peaking the interest of global leaders like President Barack Obama, who made his initial visit to Ghana in 2009.

Synopsis Of Africa’s Oil and Gas Activities

Africa has about 9 percent of the world’s reserves, and many more oil deposits are being discovered everyday. There are five major countries that dictate Africa’s upstream oil production, collectively they are responsible for approximately 85% of the continent’s overall oil production. These countries are, in order of decreasing output, Nigeria, Libya, Algeria, Egypt and Angola. Gabon, Congo, Cameroon, Tunisia, Equatorial Guinea, the Democratic Republic of the Congo, and Cote d’Ivoire are the other oil producing countries on the continent. However, oil exploration activities are on-going in a number of other African countries. These are the countries that either aim to increase their output, or become first time producers. Included in this list are Ghana, Uganda, Chad, Sudan, Namibia, South Africa and Madagascar, while Mozambique and Tanzania are potential gas producers.

Africa’s downstream oil industry consists of about forty-four refineries located in 25 countries, with a total distillation power of 3 million barrels per day – this represents 4% of the world total. The major refining centres are in Egypt, Algeria, South Africa, Nigeria, Libya, Morocco and Kenya in decreasing magnitude of refining capacity. Synthetic fuels production is also one of South Africa’s lines of production. Government owned and indigenous marketing and distributing amenities are available in all the countries. Apart from fuel reserves, Africa is also blessed with a very dynamic lubricants industry, which encompasses base oil refining, lubricant blend, distribution and marketing.

All oil and gas important variables and indices present Africa as a continent that is enormously endowed. This coupled with fantastic African hospitality makes Africa an attractive place for investment, strategic alliances, joint ventures and business development. The international community must rise up to whatever challenges Africa is facing today, because peaceful communities means a peaceful world. There are no separate continents, countries, and people, we are simply one world, and as we see it from this vantage point, opportunities to unite global energy readily arise.

Gargantuan oil deposits are still waiting for discovery in Africa. This is the right time for oil researchers and prospectors to look into Africa, with open minds, powerful solution-oriented innovation, and an extreme will to overcome challenges. Visionary foreign investors will integrate to make Africa a lucrative continent where peace, equil- ibrium in governance, technological advancement, and strong business prosperity is a way of life.