Three Questions with Keith Hill
Africa Oil Corp.’s President and CEO Keith Hill tells us about his expectations for the oil and gas industry in East Africa in 2016.
The next big thing: Where do you see the greatest opportunities for the oil and power sectors in Africa?
I think that the East Africa regional oil export pipeline project, designed to transport crude oil from Uganda and Kenya to the coast, will gain a lot of momentum over the next year. The South Lokichar basin and Lake Albert have stimulated interest in East Africa’s onshore resources. The addition of infrastructure will encourage further exploration in these rift basins. I also believe that offshore South Africa is interesting due to large unexplored basins with encouraging oil and gas indications.
Making Africa more attractive for investment: What does it take and what do you want to see?
Given the downturn in the price of oil, host governments will need to be more realistic in their fiscal regimes. They should consider cutting government take or tying it to the oil price. Contract stability is also a key issue, as changes in fiscal terms once investments have been made is toxic to investors. Corruption is always a key issue, but there does seem to be some progress in various jurisdictions on this front.
Your year in oil and power: what do you expect in 2016?
There will be a big recovery in oil prices, but it is not certain whether this will come in 2016 or 2017. This is a great time to acquire assets and large fortunes will be made by those people willing to take risks.