Posted Monday, November 30 2009 at 00:00
African oil output will rise sharply in the coming years if new projects start up as expected and tension continue to ease in heavyweight supplier Nigeria.
The outlook raises the continent’s already high profile on the global market, dangles the prospect of increased development in some of the world’s poorest nations, and promises to intensify a race for control of African reserves.
“Over the medium to long term we’ll see the importance of African oil grow significantly,” said Thomas Pearmain, analyst for IHS Global Insights in London.
“The recent big finds have created a lot of excitement and we’re already seeing majors and national oil companies, including China, compete to lock it up,” he said.
Oil output across the continent is expected to rise 6 per cent by 2011, according to a Reuters poll of analysts, company reports, and government statements, with the bulk coming from sub-Sahara’s top producer Nigeria where a rebel armistice is expected to reduce attacks on infrastructure.
“If the rabbit can be pulled out of the hat in Nigeria, we’ll be looking at a fairly rapid uptick,” said John Marks, director of consultancy Africa Energy in London.
Attacks on the oil industry in Nigeria’s restive Niger Delta, where rebels have complained of unequal distribution of oil wealth, regularly knocked out 700,000 barrels per day of crude production prior to the government’s offer in October of amnesty to fighters who laid down their arms.
Analysts are also looking at ambitious projects in Angola that could add between 0.5 and 1.0 million barrels to the nation’s current 1.8 million barrels of daily output over the next five years.
Source: http://www.businessdailyafrica.com/Company%20Industry/-/539550/814494/-/t6gthhz/-/
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