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Energy & Training Trade Mission to Mozambique & South Africa
March 24-31 2012
The Africa Business Centre (ABC) will lead a two centre trade mission to Mozambique and South Africa next month for companies to explore new business opportunities and learn about both markets. This will be the first visit to Mozambique and third visit to South Africa’s West Coast region by members of ABC.
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***************************** Mozambique is a country with vast unexplored natural resources, and its economy is one of the fastest growing on the African Continent. It is part of the free trade area of the Southern African Development Community (SADC) with huge business potential. South Africa’s West Coast could also become a future major oil and gas hub for the entire sub-Saharan Africa region.
“Eni group has drilled a giant gas discovery at the first well in Area 4 off northern Mozambique that the company said is the largest operated find in its history” (October 2011)
“U.S. oil and gas company Anadarko Petroleum said it had made another gas strike offshore Mozambique, adding the well was its best so far in the region” (Jan 2012).
Jon Woodwards, International Business Director of ABC, who will be leading the mission, commented ""
ABC's trade missions are renowned for delivering high value to participants with briefings, site visits and networking events. Whether you are looking to strengthen existing links with local organisations or want to find out about what the country has to offer, you will be part of a comprehensive and rewarding business-focused visit.
Country Information
Mozambique
Mozambique, as a frontier emerging market economy, boasts great potential over the coming decade. Following the cessation of hostilities in 1992, the former Portuguese colony successfully embarked on a series of reconstruction and economic reforms initiated by its then president, Joaquim Chissano. The country’s economy is growing fast, mainly thanks to agriculture and investments in so called mega-projects that individually can have a significant effect on economy. In 2010, Mozambique’s economy grew by an estimated 8.1%.
Mozambique is expected to maintain high growth rates in the medium term. Its upstream oil and gas industry is of growing importance in the region. The upstream potential lies in natural gas rather than oil. The critical factor in the future exploitation of the country's gas is the emergence of sound commercial criteria for the establishment of a south-east African gas-gathering network capable of serving markets in the region.
Substantial reserves of natural gas have been established and Mozambique is likely to become a major producer of gas in the medium term. The American company Anadarko Petroleum has set up its operational base in Pemba, northern Mozambique, and is the operator of a 2.6-million-acre offshore area. The company predicts that the fields off the coast of Mozambique may have 15 trillion to 30 trillion cubic feet of recoverable gas. Italy-based Eni has now also established themselves in Mozambique and set up offices in Pemba.
South Africa
South Africa’s West Coast is expected to become a major oil and gas hub for the entire sub-Saharan Africa region, according to Warwick Blyth, executive director of the South African Oil and Gas Alliance (SAOGA)*
The offshore area from Saldanha up to the Orange River Basin is an important area for oil and gas exploration and shows great potential for development. Saldanha Bay has the opportunity to position itself as a hub for regional oil and gas activity.
Licences for the West Coast blocks were recently finalised and exploration and development activities are likely to pick up over the next 18 months with Forest Oil’s Ibhubesi project potentially leading with a large offshore development, pipeline to shore and a gas plant and power station near Hondeklipbaai.
Local experts predict that an even larger opportunity for the West Coast is the provision of support, services and equipment to the oil and gas exploration and production activities in the sub-Saharan Africa region. Apart from oil and gas operations themselves the supply industries serving these projects could be very labour intensive, the marine and rig-repair business in particular have great potential to expand and create employment.
Saldanha Bay, because of its location, deep water port with an established engineering community, has the potential to position itself as a hub for regional oil and gas activity.
*ABC and the South Africa Oil & Gas Alliance enjoy close links to benefit members. Both organisations now provide reciprocal services to its respective membership and ABC members can now obtain information, contacts, guidance and support on oil and gas trade with South Africa from SAOGA. Through links to SAOGA’s website ABC members can now access business opportunities in South Africa and publicise their own project, service and product needs and partnership opportunities.
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