Hydrocarbons

New opportunities are emerging for private capital to participate in the energy sector. A diminished supply of easily accessible oil and gas reserves in certain geographies; ongoing geopolitical tensions in primary markets such as the Middle East and Russia; and new discoveries especially in the Gulf of Guinea make the continent an increasingly attractive destination for private capital.

Several trends are creating new opportunities for locals to invest in energy:

• Local governments inability to finance their share of the joint ventures with international oil companies has meant many proven fields are undeveloped and are now being packaged for smaller players to develop.
• The maturing of onshore oil and gas assets managed by international oil companies is creating a secondary market for newer and typically smaller players. These smaller players can profitably produce the proven fields that international oil companies have overlooked.
• The drive for growth in gas development for domestic use in electricity power generation and for other industries is introducing new players and creating a completely new industry.