You won’t hear a lot about it in the mainstream press. But one place on Earth is quietly becoming a go-to destination for oil and gas developers globally.
A lot of attention of late has focused on the other side of this continent. With observers closely watching high-impact drilling in places like Namibia and Ghana.
But even without the limelight, East Africa’s petroleum potential has been growing steadily.
The rising upside here was underscored by news last week from the government of Mozambique. A nation that’s shaping up as a leader in East Africa’s natural gas sector.
The country’s President, Armando Guebuza, announced last week that natgas reserves here have seen another substantial increase. Noting that projections for total reserves in the key Rovuma Basin have now risen to 200 billion cubic feet (Bcf). Up nearly 20% from the previous estimate of 170 Bcf.
The President delivered the news in a speech to the 2nd Mozambique Geology Congress–the type of industry gathering that is becoming more and more common in this part of the world. In a place that even a few years ago was completely off the radar for petroleum exploration.
That’s changed in a major way of late though. Today, operators in Mozambique include a who’s who of the global oil and gas sector: Anadarko, India’s ONGC, Mitsui, PTTEP, Eni, CNPC and Kogas.
The interesting theme amongst those names is the Asia angle. With firms from around the Indian Ocean sphere seeming to have taken a particular interest in the natgas potential of Mozambique.
That profile has been echoed in nearby Tanzania as well. With big Asian investors like Singapore sovereign wealth fund Temasek recently buying into natural gas projects here.
Quietly, this is shaping up to be a lot of investment. In a region most Western companies still aren’t thinking about.
Probably time to start.
Here’s to going east young man,