East Africa is a region of great potential for north-east energy companies as the drive for liquefied natural gas (LNG) production intensifies, according to the UK Government’s trade body.
More hydrocarbons have been discovered in the region in the past few years than anywhere else in the world.
Phil Haymes – oil and gas business specialist at UK Trade and Investment – told an audience at Subsea Expo 2014 yesterday that the region was an “exciting” proposition for subsea firms.
“A lot of the hydrocarbons are gas and there is a real aspiration to build LNG capacity and then to export that globally,” he said.
“I think it really is a region of great potential. This could be an interesting one to consider for the future.”
He said the East Africa region, which encompasses Kenya, Mozambique, Uganda and Tanzania, had already attracted interest from majors including Shell, BG and Total.
The main focus at the moment is around Feed (front end, engineering and design) and EPCM (engineering, procurement and construction management) contracts, Mr Haymes said.
The most developed country in the region is Mozambique, with the main offshore oil and gas hub located in the Rovuma Basin, in the north at the Tanzania border.
Mr Haymes said: “The Rovuma Basin could be the biggest gas basin globally.”
Energy firms interested in the region needed to be aware about the lack of skilled staff and oil and gas education, he warned.
“Anything to do with skills and education, and broader local content initiatives, are things that are needed as key enablers for this province,” he added.
“If you are going to market thinking ‘Who will I partner with?’ you will struggle to find an experienced partner because they just don’t exist. Maybe partner with a company who does not have the experience in the area but is one that can be developed.”
He said energy firms also needed to be aware of the social and economic conditions in these countries.
“The countries are poor and they are also in receipt of huge amounts of aid,” Mr Haymes said. “That has generated a mindset of ‘What can you give me?'”