West Africa needs to make her abundant gas resources count

West African growing gas hotspots are becoming increasingly attractive to global investors and exploration companies. Recent trends are indicative of the fact that interest in established and emerging gas regions in Nigeria and Ivory Coast point to an increase possibilities for investors to tap into gas sector.

A cursory look at the West Africa region show that the abundant natural resources have played a central part in the economic development of many of its constituent nations.

Report shows that increased exploration activity in the gas sector has generated a raft of discoveries both offshore and onshore. According to figures from International Energy Agency, a third of all gas discoveries in the last five years were made in sub-Saharan Africa, this is a trend that looks set to continue for the foreseeable future.

Industry watchers observed that this is a reflection of an investment shift in the industry including majors but especially mid-level frontier exploration companies to gradually disengage from mature markets with strict regimes and move towards high-potential emerging resource regions in the hopes of making a big find.

They maintain that the steady rise in foreign investment in African offshore is a reassuring indication that geographical risk on the continent is becoming less of an issue for many investors and exploration companies.

The flurry of gas exploration offshore Mauritania is encouraging news for a country in need of new sources of revenue and employment.

Those who know in the industry observed that challenges and risks still exist in West Africa, especially in the form of regulatory uncertainty as countries, some of which are new entrants to the gas sector, work to establish regimes that will attract foreign money while also spreading a fair share of the economic benefits to people at a local and national level.

According to them “Country by country, examples has emerged that provide insight into what to expect for overseas investors looking for opportunities in West Africa’s gas sector.

Nigeria has long been an energy titan in Africa, especially in West Africa leading the continent in oil production and attracting exploration companies to increasingly move into deepwater blocks.

In the opinion of experts, despite the impressive accomplishments being made offshore in Nigeria, now is a crucial and arguably precarious time for the nation’s gas sector.

Nigeria’s desire to create a more modern, reliable and stringent set of regulations for gas producers are important because a stable regulatory framework can help reduce the uncertainty of potential investors.

To analysts, the PIB could have a decisive influence on Nigeria’s prospects as a gas investment hotspot, especially as onshore and shallow water projects may receive a boost under the Petroleum Industry Bill (PIB).

Nigeria is facing increased gas competition in West Africa, from established and well-developed rivals like Angola and Ghana to offshore wildcards like Mauritania and Sierra Leone, all of which hold significant investment potential.

Ivory Coast is looking to diversify its economy by further exploiting its offshore gas resources. The country’s waters are busy with exploration activities and significant discoveries have been made by companies.

KELECHI EWUZIE