Slim Budgets will Target Key Projects

AOP talked to Robert Perkins, EMEA Editor for Oilgram News at Platts, about the challenges for Africa oil and gas markets, as well as the obstacles of limited infrastructure.

For countries like Mozambique and Tanzania with little experience and huge reserves, what strategies would you recommend to make the best use of their gas resources?

Mozambique and Tanzania will need to rely on the experience and budgets of the IOC’s in the countries to bring their huge gas reserves to market. Recent equity position activity with farm-ins marks a positive step but development timelines are likely to remain challenged by regulatory and commercial hurdles and reduced IOC incentives for bringing more LNG to the market amid the current global LNG glut.

East Africa has seen several recent oil and gas discoveries, but has very limited infrastructure. What are the short-term solutions to monetizing these resources, if any? What infrastructure should be prioritized in the coming years?

East Africa’s large oil finds will likely remain challenged by political and tribal hurdles to building key export pipelines. While most industry watchers are confident over the ultimate resource potential in Uganda and Kenya, government hopes of first oil exports from 2020 from the region are seen as optimistic.

What do you see as the challenges and opportunities for Africa oil and gas in the second half of 2017?

Looking ahead, explorers will continue to be more selective with their budgets to balance resource growth with funding constraints amid the ‘lower for longer’ oil price outlook.  Slimmer upstream budgets will likely continue to target projects with short term production horizons.

Robert Perkins, EMEA Editor, Oilgram News, Platts

Robert Perkins is a Senior Writer on S&P Global Platts’ London oil news desk, where he contributes to Platts Global Alert and Platts Oilgram News, Platts’ flagship oil-focused news wire and daily publication. Over the past 18 years, Robert has been involved with the coverage of a broad range of global energy and oil sector issues from oil and gas market fundamentals, corporate news, EU policy, biofuels and refining. His current beat looks at industry news and themes across the EMEA region with a focus on East Africa.

Robert also edits the EMEA section of Platts Oilgram News, commissioning, coordinating and editing news and analytical content from Platts’ regional network of staff and correspondents. Robert has also served as the lead author for analytics coverage of the Platts Top 250 Global Energy Company Rankings since 2013.

Robert began his career in 1994 as a financial/economics reporter at The Daily Journal newspaper in Caracas, Venezuela. He later worked as a financial reporter for Bridge News and Bloomberg in Caracas and Milan, before joining Platts full time in 2000 as an EMEA oil and gas sector reporter. Robert holds a joint honors bachelor’s degree in Spanish and Latin American studies and philosophy from the London Metropolitan University.