CHAPTER 7 The use of drones was cited by 4% of respondents, indicating that the growth in use of technology highlights its significant potential for the industry where the geology looks promising and where the fiscal terms are most attractive. While we are seeing a reduction in upstream activity across the board, midstream and downstream activities are picking up pace. There are several countries or regions looking at opportunities to develop storage or transport facilities in order to take advantage of market needs. In addition, independent power producers (IPPs) are regularly eyeing African markets for entry opportunities. Many of them offer gas-fired power solutions. This aligns with the expected overall growth agenda for a lower carbon future as gas is expected to be used as a bridging fuel as we move to more renewable alternatives. Despite current market challenges, Africa continues to offer abundant opportunities to explore for hydrocarbons in frontier markets. New hydrocarbon provinces are popping up regularly; Mauritania and Senegal are good examples of countries where hydrocarbons have recently been discovered. PwC recently published its annual Oil
and Gas Review, Learning to Leapfrog. The review factors in the views of oil and gas participants operating in Africa and includes the experiences of international oil companies, national oil companies, oilfield service companies, independent oil companies and other industry stakeholders, to shed light on the key challenges and opportunities facing the sector. In this edition, we consider events that have taken place in the past year within burgeoning and established hydrocarbon provinces throughout the continent. We believe the time is opportune for oil and gas companies to take up and utilise advances in technology and innovation as an enabler in meeting some of the challenges faced. Instead of playing catch up to the rest of the world, the industry should be ‘learning to leapfrog’ so that they are not only ahead of disruption –they actually cause it. The sustained lower price of oil has largely been accepted as the new normal, and companies are putting plans in place to
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