The sudden fall in the OIL PRICE is likely to have an effect on the ANGOLAN ECONOMY. Angola retains an oil price-based “windfall” budget that is used for special projects such as agricultural programmes. These projects are now likely to be curtailed. Much of Angola’s oil is deepwater and the costs of extraction thereof are relatively high. Nevertheless, the Angolan sovereign wealth fund has indicated that it is reserving USD 1,6 billion for infrastructure and hotel projects in SUB-SAHARAN AFRICA.
The INTERNATIONAL FINANCE CORPORATION of the World Bank group has drafted a number of useful guidelines for the formulation of business plans and project proposals. Many environmental agencies are using the environmental guidelines for project development.
TOURISM IN KENYA will be greatly boosted when the country hosts the FIRST WORLD TRADE ORGANISATION (WTO) MINISTERIAL SUMMIT to be held in SUB-SAHARAN AFRICA. It is expected that more than 6 000 delegates from 160 member countries will be attending.
EXXONMOBIL has stated that it will be able to cope with the RECENT FALL IN THE OIL PRICE. However this does raise the question of whether oil independents will be able to maintain themselves.
Progress is being made with regard to exploitation of the ROVUMA BASIN LNG DEPOSITS. MOZAMBIQUE announced its GAS AND PETROLEUM ACT on 25 November 2014. ENI and Anadarko will now submit their development plans. This Act provides for the legal and fiscal framework required by these investors.
In TANZANIA, the government has announced that the 517-kilometre MTWARA-DAR ES SALAAM GAS PIPELINE (built by China Petrol & Technology Development Company) will be feeding gas in January 2015 for the generation of power.
The launch of the ETHIOPIAN EUROBOND has been successful and has generated about USD 1 billion. The funds will be used primarily for power generation, development of the sugar industry and stimulation of the textile sector. Ethiopia is registering an annual growth rate of approximately 9%.
The THAI STATE ENERGY COMPANY, PTT Exploration & Production (“PTTEP) has stated that it will be making substantial investments in MOZAMBIQUE’S LNG SECTOR. PTTEP has a stake of 8,5% in Anadarko’s LNG project in northern Mozambique and will be purchasing liquefied gas from them. This is an example of the increased role of “offtakers” in the realisation of projects that will benefit them. An agreement has also recently been signed in terms of which India will receive future Mozambican LNG.
Africa Project Access is a South African company providing specialist consulting services and information regarding projects in Africa. For more information, contact Paul Runge on +2711 465 6770 or afric.projs@pixie.co.za.
